CPS Energy has entered into an agreement to acquire an additional 2% ownership of the South Texas Nuclear Project (STP) from US Constellation, bringing CPS Energy’s ownership of STP to 42%. Constellation’s ownership will be reduced to 42%, and Austin Energy’s ownership will remain at 16% following the transaction. CPS Energy also 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.
Earlier in May, CPS Energy, Austin Energy, NRG, and Constellation resolved a series of disputes regarding the proposed sale of an interest in STP by NRG to Constellation South Texas and the related rights of first refusal of CPS Energy and Austin Energy.
Constellation agreed in June 2023 to purchase NRG’s 44%stake in the plant – for $1.75bn. However, CPS and Austin Energy jointly filed a motion with the Nuclear Regulatory Commission (NRC) seeking to dismiss or place on hold the licence transfer pending the outcome of a lawsuit CPS brought against NRG. CPS claimed a “right of first refusal” over the sale.
CPS Energy and Austin Energy have now agreed to dismiss their pending litigation against NRG and Constellation and will withdraw their objections previously filed with NRC. “The addition of these megawatts to our system supports reliability for our customers as we enter another summer season,” said Rudy D Garza, President & CEO of CPS Energy.
The additional 2% ownership of STP for CPS Energy equates to an additional 52 MWe of dispatchable generation to the portfolio and supports CPS Energy’s Vision 2027 plan that envisages the retirement of 2,249 MWe of older generation capacity before 2030. To date, CPS Energy has added 1,710 MWe of natural gas, 730 MWe of solar energy and 50 MWe of energy storage as part of its generation plan.
The South Texas Project Electric Generating Station, southwest of Bay City, Texas and140 km southwest of Houston, comprises two 1280 MWe Westinghouse pressurised water reactors that began operation in 1988 and 1989.
