Constellation Energy is nearing a roughly $30 billion deal to acquire power producer Calpine that could be announced as early as Jan. 13, according to people familiar with the matter.

The deliberations are ongoing, the source said, cautioning that while the talks are advanced, a deal is not guaranteed.

If the talks are successful, a takeover of Calpine would rank as the biggest in the U.S. power industry since TXU Corp's $45 billion leveraged buyout in 2007.

Shares of Constellation Energy, which owns and operates nuclear power plants as well as other generation assets, have more than doubled over the past year, giving the company a market value of about $76 billion. Its stock was trading down over 4% on Jan. 8 on the news of its talks with Calpine.

Reuters was first to report in May that the private equity owners of Calpine were considering various options, including a sale of the company, at a valuation of about $30 billion, including debt.

Calpine is an independent power producer and, unlike regulated utilities, it can sell power at market prices, allowing it to profit more when demand rises. The arrangement also exposes it to more power-market risk, however, because Calpine does not have a dedicated customer base as regulated utilities do. Its customers include businesses, industrial sites, as well as residential homes. The company runs 78 facilities across 22 U.S. states and Canada, according to its website.

Calpine was taken private in 2017 by Energy Capital Partners, Canadian Pension Plan Investments and Access Industries for a total of $17 billion, including debt.

The news comes as data centers powering artificial intelligence as well as extreme weather events driven by climate change spur electricity demand in some of Calpine's key markets, including Texas, where it operates 12 power plants.

Constellation and Calpine did not immediately respond to requests for comment.

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