A flare burns excess natural gas in Texas in a file photo dated Nov. 23, 2019.ANGUS MORDANT/Reuters
Utility firm CPS Energy said on Wednesday it would buy natural gas plants in Corpus Christi and Laredo in Texas from Talen Energy for $785-million.
Talen Energy Supply, a unit of Talen Energy Corp that holds several of its power plants, in 2022 had received court permission to begin soliciting creditor votes on a bankruptcy restructuring plan.
Last year, it completed the restructuring.
The acquisition adds 1,710-megawatt (MW) generation portfolio, located in the south zone of the Electric Reliability Council of Texas (ERCOT), to CPS’s capacity.
It also aligns with the company’s plan to retire older units and add a blend of gas, solar, wind, and energy storage.
The assets include Talen’s 897 MW Barney Davis and 635 MW Nueces Bay natural gas-fired generation facilities in Corpus Christi and 178 MW facility in Laredo.
The transaction is expected to close in the second quarter.
CPS Energy is a community-owned provider of electric and natural gas services and services about 907,526 electric and 373,988 natural gas customers in San Antonio and portions of seven adjoining counties.