CPS Energy to Acquire Four Natural Gas Plants in ERCOT for 1,632 MW Capacity

CPS Energy has reached an agreement to acquire four natural gas power generation facilities from PROENERGY, totaling 1,632 megawatts of capacity, for $1.387 billion, subject to standard net working capital adjustments. The transaction is expected to close in the third quarter of 2025.

The acquired plants are located in Harris, Brazoria, and Galveston Counties within the Electric Reliability Council of Texas (ERCOT) market. The recently constructed peaking facilities are dual-fuel capable, allowing for potential future use of a hydrogen blend to reduce carbon emissions.

Under the agreement, PROENERGY will continue to operate and maintain the plants through existing Operations and Maintenance (O&M) and Total Care Services Agreements (TCSA), ensuring safe and reliable operations.

The acquisition aligns with CPS Energy’s board-approved generation and resource plan, offering a lower-cost alternative to building new facilities while supporting long-term goals of reliability, affordability, and cleaner energy. The utility plans to continue balancing its portfolio with natural gas, solar, wind, and storage resources to meet the needs of a growing customer base.

Financial and legal advisory roles for the transaction are being handled by J.P. Morgan and Dykema Gossett PLLC for CPS Energy, and CIBC Capital Markets and Latham & Watkins LLP for PROENERGY.