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CPS Energy to Acquire Additional Nuclear Plant Stake, Enters 200-MW PPA

Texas public power utility CPS Energy on May 6 said it has entered into an agreement to acquire an additional 2% ownership of the South Texas Nuclear Project 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 with Constellation for an additional 200 megawatts of firm capacity that will be available for CPS Energy customers in time for this summer.

The South Texas Project Electric Generating Station’s two units produce 2,700 megawatts of electricity.

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 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 additional 2% ownership of STP for CPS Energy will equate to an additional 52 MW of 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, 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.

CPS Energy on May 1 announced the closing on the acquisition of Talen Energy Corporation’s approximately 1,710-megawatt generation portfolio located in the South Zone of the Electric Reliability Council of Texas market for $785 million, subject to customary net working capital adjustments.

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