CPS Energy has finalized its acquisition of four natural gas power generation facilities from PROENERGY, adding approximately 1,632 megawatts of electric capacity to its portfolio. The purchase price was $1.387 billion, subject to customary net working capital adjustments. The transaction was initially announced on September 16, 2025.
The acquired assets consist of recently built peaking natural gas plants located in Harris, Brazoria, and Galveston counties within the Electric Reliability Council of Texas (ERCOT) market. Under the agreement terms, PROENERGY will continue to staff, operate, and maintain these units to ensure their safe and reliable operation.
These power plants are capable of operating on dual fuels, which provides CPS Energy with future flexibility to transition to a hydrogen fuel blend that could result in lower carbon emissions. By acquiring modern facilities that use proven technology already familiar to CPS Energy, the company aims to avoid higher construction costs as well as inflationary and supply chain risks associated with building new infrastructure.
Rudy D. Garza, President and CEO of CPS Energy, said: “The closing of this strategic acquisition marks yet another major step in strengthening the reliability and affordability of our generation portfolio. This investment benefits our customers today while supporting our long-term energy plan and clean energy commitments.”
J.P. Morgan served as exclusive financial advisor and Dykema Gossett PLLC acted as legal advisor for CPS Energy during the transaction process. CIBC Capital Markets provided exclusive financial advisory services for PROENERGY, with Latham & Watkins LLP acting as legal advisor.
CPS Energy is recognized as the largest public power, natural gas, and electric company in the United States. It serves more than 970,000 electric customers and 390,000 natural gas customers across San Antonio and seven neighboring counties. Over eight decades, it has generated $10.1 billion in revenue for the City of San Antonio.
PROENERGY is an engineering firm specializing in fast-start power generation solutions including turbine manufacturing and project execution.
