CPS Energy announced Sept. 16 that it entered into an agreement with Missouri-based PROENERGY to acquire four natural gas power plants in the greater Houston area. The plants are located in Brazoria, Galveston and Harris counties and can hold around 1,632 megawatts (MW) of energy. By rough estimates, that amount can power at minimum 325,000 homes annually.
The deal is going down for $1.387 billion, per CPS Energy, and is expected to close in the third quarter of 2025. All four plans are located within the grid area of Texas managed by the Electric Reliability Council of Texas, or ERCOT.
Officials with CPS Energy touted the plants’ ability to transition from natural gas to lower-carbon hydrogen blend fuel.
“This acquisition secures reliable capacity today—at a lower cost—and is a win for the customers of CPS Energy, the city of San Antonio and all the communities we serve by meeting their long-term energy needs,” CPS Energy President and CEO Rudy D. Garza said in a statement. “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.”
CPS Energy serves more than 1.3 million combined electric and natural gas customers in the San Antonio area. Per CPS Energy’s Vision 2027 Generation Plan, the company looks to have a portfolio that’s 63 percent renewables by 2040, as opposed to the current portfolio of 22 percent renewables.
That plan is aligned with the city of San Antonio’s goal to reach carbon neutrality by 2050. San Antonio is currently overseeing a $30 million project that aims to install solar systems at 42 city facilities.