Wedoany.com Report-Sept. 18, CPS Energy has signed an agreement to acquire four natural gas power plants from ProEnergy in the ERCOT area for $1.387 billion. The facilities have a combined capacity of 1.632 gigawatts and include modern peaking natural gas plants located in Harris, Brazoria, and Galveston Counties.

CPS Energy signed an agreement to acquire four natural gas power plants operated by ProEnergy in the ERCOT area for $1.387 billion.

“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,” the companies said. CPS Energy has a prior agreement with Modern Hydrogen to use its technology to convert natural gas into hydrogen.

CPS Energy President and CEO Rudy D. Garza commented: “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.”

He added: “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.”

Earlier, CPS Energy issued a request for proposals (RFP) to secure up to 400 MW of wind generation capacity through one or more power purchase agreements (PPAs). The RFP marks the first time in over a decade the utility has sought proposals specifically for wind projects. The 400 MW addition would bring total wind capacity to 1,467 MW, supporting CPS Energy’s Vision 2027 plan, which includes retiring 2,541 MW of older generation capacity before 2030.

Since 2023, CPS Energy has added 1,735 MW of natural gas, 113 MW of wind, 480 MW of solar, and 50 MW of energy storage. Another 254 MW of solar and 470 MW of energy storage are under contract. Additionally, the utility expanded a PPA with Iberdrola SA’s US unit to 320 MW, which includes 159.2 MW from Avangrid Inc’s 401-MW Peñascal wind farm in Kenedy County, Texas.

CPS Energy is the largest public power, natural gas, and electric company in the U.S., serving over 950,000 electric and 389,000 gas customers in San Antonio and parts of seven neighboring counties.

The acquisition and ongoing investments aim to strengthen the reliability and affordability of CPS Energy’s generation portfolio while accelerating its transition toward a diversified energy mix, including low-carbon and renewable options. The company highlights that modern, dual-fuel facilities, coupled with planned wind and solar additions, position CPS Energy to meet growing demand and reduce environmental impact while supporting long-term community energy needs.