CPS Energy announced the closing on the previously announced $785 million acquisition of Talen Energy Corporation’s approximately 1,710-MW natural gas portfolio located in the South Zone of the Electric Reliability Council of Texas (ERCOT) market.

Through the deal, CPS Energy has acquired all assets associated with the 897 MW Barney Davis and 635 MW Nueces Bay natural gas-fired generation facilities, both located in Corpus Christi, Texas, as well as its 178 MW natural gas-fired generation facility in Laredo, Texas.

“This step marks CPS Energy’s growing role as a regional energy utility, providing additional resiliency and reliability for our customers,” said Rudy D. Garza, President and CEO of CPS Energy. “This acquisition adds critical capacity to our generation portfolio to continue to reliably serve one of the fastest-growing regions in the nation. Our customers will benefit from these investments for decades to come.”

This action supports CPS Energy’s generation plan, approved in 2023 by its Board of Trustees, which includes the retirement of older coal and gas units and the addition of a blend of more efficient gas generation along with solar, wind, and energy storage.

“We are pleased to have completed our strategic transaction with CPS Energy,” Talen President and Chief Executive Officer Mac McFarland said. “This transaction demonstrates our continued commitment to unlocking significant value for Talen, while also taking care of our people. We are pleased that these assets will support CPS Energy’s efforts to provide reliable and cost-effective power generation through its diverse portfolio to its growing community.”

CPS Energy’s Vision 2027 plan includes its generation plan that contemplates the retirement of 2,249 MW of older dispatchable generation capacity before 2030. CPS Energy has added 730 MW of solar energy and 50 MW of energy storage to date as part of its generation plan, with an additional 500 MW energy storage RFP in the works.

The plants in Corpus Christi and Laredo are expected to be operational for the next 25 years. There are a combined total of 66 operations employees at these sites, and they all have retained employment with CPS Energy.  

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