07 May 2024
CPS Energy has agreed to acquire an additional 2% ownership of the South Texas Project (STP) from Constellation and has entered a long-term power purchase agreement for 200 MWe of capacity following the resolution of disputes over Constellation’s 2023 acquisition of NRG Energy’s share of the two-unit nuclear power plant.
STP (Image: STPNOC)
The transaction will see San Antonio-based CPS Energy and Constellation each owning 42% of STP, with Austin Energy’s ownership share remaining unchanged at 16%.
“On 2 May, 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,” CPS said. “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.”
Baltimore-based Constellation operates 14 nuclear power plants in the USA with a combined generating capacity of more than 19,000 MWe. It acquired NRG Energy Inc’s 44% share in the STP plant last year. The sale marked NRG’s exit from nuclear generation.
“The addition of these megawatts to our system supports reliability for our customers as we enter another summer season,” CPS Energy President and CEO Rudy Garza said.
The additional 2% ownership of STP for CPS Energy will equate to an additional 52 MWe of carbon free dispatchable generation to its portfolio and supports its Vision 2027 plan that contemplates the retirement of 2249 MWe of older generation capacity before 2030, the company said.
The 2645 MWe STP is located about 90 miles (145 km) south-west of Houston and is operated by the South Texas Project Nuclear Operating Company (STPNOC).
