CPS Energy Completes Major Acquisition of 1,632 Megawatt Power Generation Portfolio in Southeast Texas
CPS Energy has officially finalized its acquisition of a substantial power generation portfolio, which includes four cutting-edge natural gas power plants located in Harris, Brazoria, and Galveston counties. With an overall capacity of approximately 1,632 megawatts (MW), this acquisition is valued at around $1.387 billion, a move designed to boost CPS Energy’s capabilities while addressing future energy needs. The confirmation of this deal was made on September 24, 2025, following the initial announcement on September 16, 2025.
The power plants in question are part of the Electric Reliability Council of Texas (ERCOT) market and feature advanced technology designed for efficient operation. With PROENERGY continuing to manage these facilities post-acquisition, CPS Energy ensures that these plants remain optimally staffed and maintained, which is critical for reliable energy production. This strategic move not only eliminates the expenses associated with building new facilities, especially in a climate of rising construction costs and supply chain challenges, but also positions CPS Energy to transition to cleaner energy sources over time.
A significant feature of the acquired plants is their dual-fuel capability, which allows for an upgrade to a hydrogen fuel blend in the future. This capability aligns with CPS Energy’s long-term goal to reduce carbon emissions while still maintaining efficient power generation.
CPS Energy's President and CEO, Rudy D. Garza, emphasized that this acquisition enhances both the reliability and affordability of their energy offerings. He expressed the conviction that such investments will not only serve current customer needs but also bolster the company's long-term energy strategy, which prioritizes clean energy commitments.
The acquisition process saw robust financial consultation, with J.P. Morgan acting as the exclusive advisor for CPS Energy, while CIBC Capital Markets provided similar services for PROENERGY. Legal guidance for the transaction was provided by Dykema Gossett PLLC for CPS Energy and Latham & Watkins LLP for PROENERGY.
CPS Energy, established in 1860, stands as the largest public power entity in the United States, serving over 950,000 electric customers and 389,000 natural gas customers across San Antonio and nearby regions. The organization is revered for its competitive pricing, with energy costs ranking among the lowest for the country's major cities. For an impressive 80 years, the service has generated substantial revenue for the City of San Antonio, affirming its role as a vital community partner focused on job creation and economic development.
As a leader in renewable energy procurement, CPS Energy is recognized as one of the top buyers of wind energy in the nation and the leading entity in Texas for solar generation. This latest acquisition marks a crucial step in their journey toward a sustainable future, emphasizing a blend of innovative energy solutions and commitment to community welfare. As the demand for reliable, clean energy continues to rise, CPS Energy remains steadfast in its mission to deliver safe, reliable, and surprisingly affordable energy solutions to residents and businesses alike.
The power plants in question are part of the Electric Reliability Council of Texas (ERCOT) market and feature advanced technology designed for efficient operation. With PROENERGY continuing to manage these facilities post-acquisition, CPS Energy ensures that these plants remain optimally staffed and maintained, which is critical for reliable energy production. This strategic move not only eliminates the expenses associated with building new facilities, especially in a climate of rising construction costs and supply chain challenges, but also positions CPS Energy to transition to cleaner energy sources over time.
A significant feature of the acquired plants is their dual-fuel capability, which allows for an upgrade to a hydrogen fuel blend in the future. This capability aligns with CPS Energy’s long-term goal to reduce carbon emissions while still maintaining efficient power generation.
CPS Energy's President and CEO, Rudy D. Garza, emphasized that this acquisition enhances both the reliability and affordability of their energy offerings. He expressed the conviction that such investments will not only serve current customer needs but also bolster the company's long-term energy strategy, which prioritizes clean energy commitments.
The acquisition process saw robust financial consultation, with J.P. Morgan acting as the exclusive advisor for CPS Energy, while CIBC Capital Markets provided similar services for PROENERGY. Legal guidance for the transaction was provided by Dykema Gossett PLLC for CPS Energy and Latham & Watkins LLP for PROENERGY.
CPS Energy, established in 1860, stands as the largest public power entity in the United States, serving over 950,000 electric customers and 389,000 natural gas customers across San Antonio and nearby regions. The organization is revered for its competitive pricing, with energy costs ranking among the lowest for the country's major cities. For an impressive 80 years, the service has generated substantial revenue for the City of San Antonio, affirming its role as a vital community partner focused on job creation and economic development.
As a leader in renewable energy procurement, CPS Energy is recognized as one of the top buyers of wind energy in the nation and the leading entity in Texas for solar generation. This latest acquisition marks a crucial step in their journey toward a sustainable future, emphasizing a blend of innovative energy solutions and commitment to community welfare. As the demand for reliable, clean energy continues to rise, CPS Energy remains steadfast in its mission to deliver safe, reliable, and surprisingly affordable energy solutions to residents and businesses alike.
Topics Energy）
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