CPS Energy to Buy $1.4 Billion Natural Gas Power Portfolio in Southeast Texas
CPS Energy will acquire four natural gas power plants in Southeast Texas from PROENERGY for $1.4 billion, adding 1,632 MW of capacity to meet San Antonio’s growing energy needs while leaving room for future hydrogen integration.
SAN ANTONIO (P&GJ) — CPS Energy has agreed to acquire four natural gas power generation facilities in Southeast Texas from PROENERGY for $1.387 billion, the companies said Sept. 15.
The 1,632-megawatt portfolio includes recently built peaking plants in Harris, Brazoria, and Galveston counties, located within the Electric Reliability Council of Texas (ERCOT) market. The units are dual-fuel capable and can be adapted to use a hydrogen blend in the future to lower carbon emissions.
Under the agreement, PROENERGY will continue to operate and maintain the plants through separate operations and maintenance contracts.
“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,” said Rudy D. Garza, President and CEO of CPS Energy. “This acquisition secures reliable capacity today, at a lower cost, and is a win for the customers of CPS Energy, the city of San Antonio and all the communities we serve.”
The transaction, expected to close in the third quarter of 2025, supports CPS Energy’s long-term plan to expand capacity while balancing natural gas, solar, wind, and storage resources.
J.P. Morgan advised CPS Energy, while CIBC Capital Markets represented PROENERGY.