Nuclear

CPS Energy increases stake in Texas nuclear plant

CPS Energy and Constellation Energy will each own 42% of the South Texas Nuclear Project.
CPS Energy increases stake in Texas nuclear plant
(Source: U.S. NRC.)

CPS Energy has entered into an agreement to acquire an additional 2% ownership of the South Texas Nuclear Project (STP) from Constellation, bringing CPS Energy’s ownership of STP to 42% when the transaction closes.

Constellation’s ownership will shift to 42%, and Austin Energy’s ownership will remain at 16% following the transaction. Additionally, CPS Energy entered into a long-term Purchase Power Agreement (PPA) with Constellation for an additional 200 MW of firm capacity that will be available for CPS Energy customers by the summer.

The additional 2% ownership of STP for CPS Energy will equate to an additional 52 MW of dispatchable generation to the portfolio and will help support 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.

CPS Energy says these efforts also align with its 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.

CPS Energy, Austin Energy, NRG, and Constellation say they resolved their disputes regarding the proposed sale of an interest in 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.”

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