CPS ENERGY ENTERS INTO AGREEMENT FOR ADDITIONAL OWNERSHIP OF THE SOUTH TEXAS NUCLEAR PROJECT AND ADDS 200 MEGAWATTS OF CAPACITY FOR GROWING SAN ANTONIO COMMUNITY

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May 06, 2024, 08:00 ET

SAN ANTONIO, May 6, 2024 /PRNewswire/ -- CPS Energy has entered into an agreement to acquire an additional 2% ownership of the South Texas Nuclear Project (STP) from Constellation. When the transaction closes, it will bring CPS Energy's ownership of STP to 42%, Constellation's to 42%, and Austin Energy's ownership will remain at 16%. Additionally, CPS Energy entered into a long-term Purchase Power Agreement (PPA) with Constellation for an additional 200 megawatts (MW) of firm capacity that will be available for CPS Energy customers in time for this summer.

On May 2, 2024, CPS Energy, Austin Energy, NRG, and Constellation resolved their disputes regarding the proposed sale of an interest in the South Texas Nuclear Project (STP) by NRG to Constellation South Texas LLC and the related rights of first refusal of CPS Energy and Austin Energy. As part of this resolution, CPS Energy and Austin Energy will dismiss their pending litigation against NRG and Constellation and will withdraw their objections previously filed with the Nuclear Regulatory Commission.

"The addition of these megawatts to our system supports reliability for our customers as we enter another summer season," said Rudy D. Garza, President and CEO of CPS Energy. "CPS Energy continues to stay focused on our Vision 2027 plan and will continue our focus on reliability for our growing community."

The additional 2% ownership of STP for CPS Energy will equate to an additional 52 MW of carbon free dispatchable generation to the portfolio and supports CPS Energy's Vision 2027 plan that contemplates the retirement of 2,249 MW of older generation capacity before 2030. To date, CPS Energy has added 1,710 MW of natural gas, 730 MW of solar energy and 50 MW of energy storage as part of its generation plan, with an additional 500 MW energy storage RFP in the works. These efforts also align with CPS Energy's commitment to the City of San Antonio's Climate Action & Adaptation Plan (CAAP), which includes a Board of Trustees resolution to support the CAAP's goal to become carbon neutral by 2050, and the interim goals of reducing greenhouse gas emissions by 41% from 2016 levels and 71% by 2040.

About CPS Energy  
Established in 1860, CPS Energy is the nation's largest public power, natural gas, and electric company, providing safe, reliable, and competitively priced service to more than 930,114 electric and 381,379 natural gas customers in San Antonio and portions of seven adjoining counties. Our customers' combined energy bills rank among the lowest of the nation's 20 largest cities – while generating $9 billion in revenue for the City of San Antonio for 80 years. As a trusted and strong community partner, we continuously focus on job creation, economic development, and educational investment. We are powered by our skilled workforce, whose commitment to the community is demonstrated through our employees' volunteerism in giving back to our city and programs aimed at bringing value to our customers. CPS Energy is among the top public power wind energy buyers in the nation and San Antonio is number one in Texas for solar generation. 

SOURCE CPS Energy