CPS has acquired all assets related to the 897MW Barney Davis and 635MW Nueces Bay natural gas-fired generation facilities, both located in Corpus Christi, Texas and a 178MW natural gas-fired generation facility in Laredo, Texas
CPS completes acquisition of Talen’s Texas power plants. (Credit: Daniel Gimbel on Unsplash)
US-based electric utility CPS Energy has completed the acquisition of Talen Energy’s around 1,710MW generation portfolio in Corpus Christi and Laredo, Texas, for $785m.
The assets include natural gas plants, which are located in the South Zone of the Electric Reliability Council of Texas (ERCOT) market.
CPS Energy and Talen previously announced the transaction on 27 March 2024.
Under the terms of the agreement, CPS has acquired all assets related to the 897MW Barney Davis and 635MW Nueces Bay natural gas-fired generation facilities in Corpus Christi, Texas.
The company also acquired a 178MW natural gas-fired generation facility in Laredo, Texas.
Talen president and CEO Mac McFarland said: “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.”
CPS said that the acquisition is in line with its generation plan, approved in 2023, to power the greater San Antonio community by securing an additional 1,710MW capacity immediately.
The generation plan also includes the retirement of 2,249MW of older coal and gas units before 2030 and the addition of a blend of gas generation along with solar, wind, and energy storage.
CPS Energy has added 730MW of solar energy and 50MW of energy storage to date as part of its generation plan, with an additional 500MW energy storage RFP in the works.
The facilities in Corpus Christi and Laredo are planned to be operational for the next 25 years.
JP Morgan served as the exclusive financial advisor and Dykema Gossett as the legal advisor to CPS Energy, on the transaction.
RBC Capital Markets served as the exclusive financial advisor and Kirkland & Ellis as the legal advisor to Talen.
CPS Energy president and CEO Rudy Garza said: “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.”