CPS ENERGY CLOSES ON PREVIOUSLY ANNOUNCED ACQUISITION OF 1,632 MEGAWATT POWER GENERATION PORTFOLIO IN SOUTHEAST TEXAS
SAN ANTONIO, Sept. 24, 2025 /PRNewswire/ -- Today, CPS Energy announced the closing on its acquisition of PROENERGY's four natural gas power generation facilities with an aggregate electric capacity of approximately 1,632 megawatts ("MW") for $1.387 billion, subject to customary net working capital adjustments. CPS Energy and PROENERGY previously announced the transaction on Sept. 16, 2025.
The assets acquired include state-of-the-art, recently constructed peaking natural gas plants in Harris, Brazoria, and Galveston counties in the Electric Reliability Council of Texas ("ERCOT") market. Under the terms of agreements between the parties, PROENERGY will continue to staff, operate, and maintain the acquired units, enabling safe and reliable operation and maintenance of the power plants.
The acquired assets are dual-fuel capable, providing CPS Energy future optionality to transition to a hydrogen fuel blend with favorable carbon emissions. By acquiring recently constructed, currently operating modern power plants that utilize proven technology already in use by CPS Energy, the company avoids higher construction costs, inflationary risk, and supply chain risks associated with building new facilities.
"The closing of this strategic acquisition marks yet another major step in strengthening the reliability and affordability of our generation portfolio," said Rudy D. Garza, President and CEO of CPS Energy. "This investment benefits our customers today while supporting our long-term energy plan and clean energy commitments."
J.P. Morgan acted as exclusive financial advisor and Dykema Gossett PLLC acted as legal advisor to CPS Energy with respect to the transaction. CIBC Capital Markets served as exclusive financial advisor and Latham & Watkins LLP served as legal advisor to PROENERGY.
About CPS Energy
Established in 1860, CPS Energy is the nation's largest public power, natural gas, and electric company, providing safe, reliable, and competitively-priced service to more than 950,000 electric and 389,000 natural gas customers in San Antonio and portions of seven adjoining counties. Our customers' combined energy bills rank among the lowest of the nation's 20 largest cities – while generating $9.6 billion in revenue for the City of San Antonio for 80 years. As a trusted and strong community partner, we continuously focus on job creation, economic development, and educational investment. We are powered by our skilled workforce, whose commitment to the community is demonstrated through our employees' volunteerism in giving back to our city and programs aimed at bringing value to our customers. CPS Energy is among the top public power wind energy buyers in the nation and number one in Texas for solar generation.
About PROENERGY
PROENERGY is an engineering, R&D, and manufacturing powerhouse. The company addresses every need for fast-start power generation: turbine and package manufacturing, turnkey project execution, power purchase agreements, and asset lifecycle care for turbines and plants. Where others see impossible energy challenges, PROENERGY provides innovative aeroderivative solutions.
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SOURCE CPS Energy