CPS Energy, San Antonio-based utility, closed on its acquisition of Talen Energy Corp.’s approximately 1,710-megawatt (MW) generation portfolio for $785 million, CPS announced May 1.

The transaction, previously announced March 27, includes natural gas plants in Corpus Christi and Laredo, Texas, which CPS expects to be operational for the next 25 years.

CPS acquired all assets associated with the 897-MW Barney Davis and 635-MW Nueces Bay natural gas plants in Corpus Christi and the 178-MW natural gas plant in Laredo.

The deal supports CPS’ plan to power San Antonio, Texas, by retiring older coal and gas units and adding “efficient” gas generation along with solar, wind and energy storage, CPS said.

CPS said it also plans to retire 2,249 MW of older and inefficient dispatchable generation capacity before 2030. 

"This step marks CPS Energy's growing role as a regional energy utility, providing additional resiliency and reliability for our customers," said Rudy D. Garza, president and CEO of CPS Energy. "This acquisition adds critical capacity to our generation portfolio to continue to reliably serve one of the fastest-growing regions in the nation. Our customers will benefit from these investments for decades to come."

J.P. Morgan acted as financial adviser and Dykema Gossett PLLC acted as legal adviser to CPS. RBC Capital Markets served as financial adviser and Kirkland and Ellis served as legal adviser for Talen.

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