1. CPS Energy will acquire Talen Energy’s 1.7-GW portfolio of three natural gas-fired power plants in Texas for $785 million.
2. The acquisition will support CPS Energy’s Vision 2027 plan to reach carbon neutrality by 2050 by retiring old coal and gas units and adding renewables and energy storage.
3. Talen Energy will exit the ERCOT market and focus on PJM and the Western Electricity Coordinating Council after selling its Texas assets.
CPS Energy has agreed to acquire Talen Energy’s 1.7-GW portfolio of three natural gas-fired power plants in Texas for $785 million. This acquisition, expected to close in the second quarter of 2024, includes facilities in Corpus Christi and Laredo, Texas, located in the South Zone of ERCOT.
The move is part of CPS Energy’s proactive strategy to enhance equity, operational efficiency, and energy security under its Vision 2027 plan. The utility aims to address reliability vulnerabilities exposed by Winter Storm Uri and achieve carbon neutrality by 2050 by phasing out coal and older natural gas steam units while increasing renewables.
The addition of Talen’s portfolio aligns with CPS Energy’s approved generation plan that includes retiring older units and incorporating a mix of gas, solar, wind, and energy storage. With these new facilities, CPS Energy expects to meet emissions reduction commitments and add more renewable energy and storage capacity as needed.
Talen’s exit from ERCOT follows its recent financial success and strategic transactions to reduce debt and strengthen its balance sheet. The sale of its Texas assets will allow Talen to focus on operating in other regions and continue delivering reliable and cost-effective power generation.