SAN ANTONIO – San Antonio-based CPS Energy plans to expand its portfolio with the $1.3 billion acquisition of four power facilities in Southeast Texas.
The public utility intends to acquire four natural gas power generation facilities from the energy transition company PROENERGY, which have a combined electric capacity of 1,632 megawatts. The natural gas plants were recently built in Harris, Brazoria and Galveston Counties.
A CPS Energy spokesperson said the transaction is expected to close in the third quarter of this year.
The acquisition of these additional plants is part of the utility’s larger strategy to purchase facilities at a lower cost and a lower supply chain risk rather than build new facilities.
“By acquiring recently constructed, currently operating modern power plants that utilize proven technology already in use by CPS Energy, we avoid higher construction costs, inflationary risk and long timelines associated with building new facilities — while also enhancing the reliability and affordability of the CPS Energy generation portfolio,” said Rudy Garza, president and CEO of CPS Energy, in a prepared statement.
The four plants are also capable of transitioning to provide a hydrogen fuel blend that would reduce carbon emissions. The facilities are located in the Electric Reliability Council of Texas (ERCOT) market.
PROENERGY plans to continue to staff and operate the plants, with 25 employees, through operations and maintenance and total care services agreements with CPS Energy.
Read more of this story at the San Antonio Business Journal website.
Editor’s note: This story was published through a partnership between KSAT and the San Antonio Business Journal.