CPS Energy agreed to acquire four natural gas powered electricity generation facilities in Texas for nearly $1.4 billion from PROENERGY.
Dykema Gossett is the legal advisor to CPS Energy on the deal announced Sept. 16, and Latham & Watkins is advising PROENERGY.
CPS Energy said the recently constructed facilities in Harris, Brazoria, and Galveston Counties have a total capacity of 1,632-megawatts and are dual-fuel capable, providing the San Antonio utility the ability to transition to a hydrogen fuel blend that would enable reduced carbon emissions, according to the company.
Missouri-based PROENERGY will continue to staff, operate, and maintain the power plants after the deal closes.
CPS Energy President and CEO Rudy Garza said the acquisition of existing generation facilities enables the company to “avoid higher construction costs, inflationary risk, and long timelines associated with building new facilities, while also enhancing the reliability and affordability” of its generation portfolio.
“We are getting the best of both worlds by securing new infrastructure without delay while also strengthening the power supply for our community,” Garza said. “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 by meeting their long-term energy needs.”
CPS Energy has more than 950,000 electric and 389,000 natural gas customers in San Antonio and seven adjoining counties. J.P. Morgan is the exclusive financial advisor to the utility for this acquisition, and PROENERGY used CIBC Capital Markets as its exclusive financial advisor.