US-based utility CPS Energy has completed the acquisition of three natural gas plants in Texas from Talen Energy for $785m.
The move was first announced at the end of March 2024 and enhances the company’s generation portfolio in the south zone of the Electric Reliability Council of Texas (ERCOT).
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The acquisition totals 1.7GW and comprises the 897MW Barney Davis and the 635MW Nueces Bay natural gas-fired generation facilities in Corpus Christi, and a 178MW facility in Laredo.
The plants will remain operational until 2048. The 66 employees at these sites will also continue their jobs with CPS Energy.
CPS Energy president and CEO Rudy Garza stated: “This step marks CPS Energy’s growing role as a regional energy utility, providing additional resiliency and reliability for our customers.
“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.”
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By GlobalDataTalen president and CEO Mac McFarland stated: “We are pleased to have completed our strategic transaction with CPS Energy. 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.”
The addition of these facilities is in line with CPS Energy’s generation plan, which was approved by its board of trustees in 2023.
The plan includes retiring older coal and gas units and integrating a mix of more efficient gas generation, solar, wind and energy storage technologies.
As part of its Vision 2027 plan, CPS Energy aims to retire 2.25GW of older and less efficient dispatchable generation capacity before 2030.
The company has so far incorporated 730MW of solar energy and 50MW of energy storage, with plans to add 500MW of energy storage to its generation mix.
