CPS Energy announced the closing on its acquisition of PROENERGY’s four natural gas power generation facilities with an aggregate electric capacity of approximately 1,632 megawatts for $1.387 billion, subject to customary net working capital adjustments.
CPS Energy, the public power utility serving San Antonio, Texas, and PROENERGY previously announced the transaction on Sept. 16, 2025.
The assets acquired include state-of-the-art, recently constructed peaking natural gas plants in Harris, Brazoria, and Galveston counties in the Electric Reliability Council of Texas market.
Under the terms of agreements between the parties, PROENERGY will continue to staff, operate, and maintain the acquired units, enabling safe and reliable operation and maintenance of the power plants.
The acquired assets are dual-fuel capable, providing CPS Energy future optionality to transition to a hydrogen fuel blend with favorable carbon emissions. By acquiring recently constructed, currently operating modern power plants that utilize proven technology already in use by CPS Energy, the company avoids higher construction costs, inflationary risk, and supply chain risks associated with building new facilities.
“The closing of this strategic acquisition marks yet another major step in strengthening the reliability and affordability of our generation portfolio,” said Rudy Garza, President and CEO of CPS Energy. “This investment benefits our customers today while supporting our long-term energy plan and clean energy commitments.”
J.P. Morgan acted as exclusive financial advisor and Dykema Gossett PLLC acted as legal advisor to CPS Energy with respect to the transaction.
CIBC Capital Markets served as exclusive financial advisor and Latham & Watkins LLP served as legal advisor to PROENERGY.
