CPS Energy has signed an agreement to acquire four natural gas power plants operated by ProEnergy in the ERCOT area for $1.387 billion.
The facilities have an aggregate capacity of 1.632 gigawatts, according to a joint statement.
“Located in the Electric Reliability Council of Texas (ERCOT) market, the acquired assets include state-of-the-art, recently constructed peaking natural gas plants in Harris, Brazoria and Galveston Counties”, the companies said.
“The acquired assets are dual-fuel capable, providing CPS Energy future optionality to transition to a hydrogen fuel blend that would enable reduced carbon emissions”.
San Antonio, Texas-based CPS Energy has a prior agreement with Modern Hydrogen, announced July 22, to use the latter’s technology to convert natural gas into hydrogen.
CPS Energy president and chief executive Rudy D. Garza said of the agreement with ProEnergy, “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”.
“As we add resources to meet the needs of our fast-growing communities, we will continue to look to a diverse balance of energy sources that complement our portfolio, including natural gas, solar, wind and storage, keeping our community powered and growing”, Garza added.
CPS Energy earlier issued a request for proposals (RFP) to secure up to 400 MW of wind generation capacity through one or more PPAs (power purchase agreements).
“The RFP marks the first time in over a decade that CPS Energy has specifically sought proposals for wind projects. CPS Energy’s target to contract up to 400 MW of wind capacity would bring the utility’s total wind generation to 1,467 MW”, it said in a press release July 31.
“The utility’s RFP supports CPS Energy’s Vision 2027 plan, which contemplates the retirement of 2,541 MW of older generation capacity before 2030”, CPS Energy said.
“As part of this future generation plan, since 2023, CPS Energy has added 1,735 MW of natural gas, 113 MW of wind capacity, 480 MW of solar and 50 MW of energy storage. It has another 254 MW of solar and 470 MW of energy storage under contract”.
On April 17 CPS Energy said it has expanded its PPA with Iberdrola SA’s United States unit to 320 MW. The new PPA adds 159.2 MW from Avangrid Inc’s 401-MW Peñascal wind farm in Kenedy County, Texas.
CPS Energy says it is the U.S.’ biggest public power, natural gas and electric company, serving over 950,000 electric and 389,000 gas customers in San Antonio and parts of seven adjoining counties.
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