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This addition will bring the utility’s total battery energy storage to 400 MW under contract

August 28, 2024 (SAN ANTONIO) – CPS Energy, the largest municipally owned electric and natural gas utility in the United States, has entered into two storage capacity agreements (SCAs) with Eolian L.P. (Eolian) for a total of 350 megawatts (MW) of battery energy storage, adding to a 50 MW SCA signed with Eolian in 2023, as the utility continues the execution of its Vision 2027 generation plan.

The battery energy storage projects, called “Ferdinand” and “Padua 2”, have a storage capacity of 200 MW and 150 MW, respectively.  Both projects are located in South Bexar County, Texas and will be newly constructed and expected to be online in the first half of 2026.  Having storage resources strategically located in CPS Energy’s service territory contributes to overall grid resiliency and benefits customers.

Not including the 10 MW operational in the current portfolio, the signing of these SCAs brings CPS Energy’s total battery storage capacity under contract to 400 MW combined.

Dykema Gossett PLLC served as external legal advisor to CPS Energy in connection with the negotiation of the SCAs. 

 “I am proud of the work CPS Energy has done to secure another 350 MW of generation for our growing community,” said Rudy D. Garza, President & CEO of CPS Energy. “This is another step in executing on our Vision 2027 generation plan and we are excited about the benefits it will provide to our community through both reliability and economic development.”

“Following on to the 50 MW Padua 1 project already under construction for CPS Energy, this additional 350 MW of  four-hour duration battery energy storage will provide new dispatchable capacity to the San Antonio area by mid-2026, representing the single largest buildout of standalone battery energy storage in ERCOT to date and proving that deployment of fast and flexible energy storage resources at critical grid locations can bridge the many years until new transmission can be constructed to further support load growth and alleviate systemwide congestion,” added Aaron Zubaty, CEO of Eolian. “These project locations were carefully chosen years ago to actually reduce the burden on the transmission system and enhance overall market operations by providing resiliency and reliability within load pockets and adjacent to retiring thermal generating units while reducing congestion on key transmission pathways.”

The projects are expected to help serve the energy needs of the San Antonio community for a 20-year period. As part of a related community benefits agreement, the project entities will contribute at least $175,000 each year to CPS Energy sponsored activities and scholarships within the Greater San Antonio area for a five-year period once the projects are operational.

In January 2023, the CPS Energy Board of Trustees approved a generation plan as part of the utility’s Vision 2027 plan to power the community into the future. CPS Energy has since added 1,710 MW of owned natural gas generation, 500 MW of natural gas firming capacity, an additional 84 MW of wind capacity, and contracted 730 MW of solar energy and 50 MW of storage. 

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About CPS Energy

Established in 1860, CPS Energy is the nation’s largest community-owned provider of electric and natural gas services.  We provide safe, reliable, and competitively priced services to 907,526 electric and 373,998 natural gas customers in San Antonio and portions of seven adjoining counties. Our customers’ combined energy bills rank among the lowest of the nation’s 20 largest cities while generating $9 billion in revenue for the City of San Antonio over the last 80 years. Our Vision 2027 strategic plan is designed to guide CPS Energy through rapid transformational change in our city.  As a trusted and reliable community partner, we continuously focus on job creation, economic development, and educational investment.  We are powered by our skilled workforce, whose commitment to the community is demonstrated through our employees’ volunteerism, our community engagement efforts and programs aimed at bringing value and assistance to our customers.

About Eolian, L.P.

Eolian, L.P. (“Eolian”) operates a growing portfolio of battery energy storage projects and develops and invests in renewable energy and clean molecule projects across the US. For over 20 years, Eolian’s founding management has worked together to build the assets at the core of the company, creating unique and proprietary structures that have directly funded the development of 26 GW of successfully operating energy storage, solar, and wind-generating capacity across the country. Eolian is owned by its employees and funds are managed by Global Infrastructure Partners (GIP), a leading infrastructure investor. For more information, follow Eolian on LinkedIn or visit www.eolianenergy.com.

REAP’s maximum benefit more than doubles; CPS Energy provides an additional $6 million towards the program.

August 26, 2024 (SAN ANTONIO) — The Board of the Residential Energy Assistance Partnership (REAP) voted unanimously to approve the expansion of the assistance program to offer more support to a greater number of CPS Energy customers to cover their bills.  The REAP maximum benefit for Bexar County residents outside San Antonio will increase from $400 to up to $1,200. Additionally, the income qualification criteria for the Federal Poverty Level (FPL) will change from 125% to 150%. This revised income qualifier will enable more customers to qualify and aligns with the change in qualifying FPL criteria made to CPS Energy’s Affordability Discount Program (ADP) earlier this year.

As part of this expansion and to increase the operation of the program, the utility will make a one-time $6 million contribution from the utility’s summer 2023 wholesale revenues.

The expansion was voted on during a special board meeting held on August 14, 2024. Bexar County and CPS Energy staff worked collaboratively to present the approved proposal to REAP board members which includes REAP Board President, Bexar County Judge Peter Sakai, President & CEO Rudy D. Garza who serves as REAP’s vice president and City of San Antonio (CoSA) Mayor Ron Nirenberg who serves as secretary/treasurer.  

“Bexar County proposed changes to expand access to utility assistance. I want to thank CPS Energy and the City of San Antonio for collaborating to make this happen. We will work to ensure our most vulnerable neighbors take advantage of this program,” said Bexar County Judge and REAP’s Board President Peter Sakai.

“As part of Vision 2027, CPS Energy’s strategic plan, we are committed to supporting our community and being a good partner.  By increasing support of REAP, in partnership with the City and the County, we are providing additional resources to those most in need,” said Rudy D. Garza.

“The expansion strengthens our community’s safety net by ensuring that more CPS Energy customers have access to assistance with their utility bills,” said Mayor Ron Nirenberg. “REAP helps customers in unstable economic situations make ends meet, easing financial pressures and reducing the risk of crisis. These clearly merited changes will boost the entire community.”     

REAP is a non-profit established in 2002 through a partnership between CPS Energy, the City of San Antonio, and Bexar County. CPS Energy contributes $1 million annually directly to the REAP fund and works throughout the year to raise additional funds for the program. CPS Energy handles the program’s marketing, fundraising, and back-office administrative requirements. The City of San Antonio and Bexar County manage the application process. This program is one of CPS Energy’s commitments to provide help to pay energy bills for customers who qualify for assistance. Through REAP, qualified customers receive a credit on their CPS Energy bill and receive information about weatherization, low-cost to no-cost energy efficiency programs, senior citizen aid, and critical care assistance.

For more information about REAP and how to apply, visit here.

SAN ANTONIO, Texas, May 6, 2024 – CPS Energy has entered into an agreement to acquire an additional 2% ownership of the South Texas Nuclear Project (STP) 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 (PPA) with Constellation for an additional 200 megawatts (MW) of firm capacity that will be available for CPS Energy customers in time for this summer.

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 (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.”

The additional 2% ownership of STP for CPS Energy will equate to an additional 52 MW of carbon free 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 (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.