CPS ENERGY CLOSES ON PREVIOUSLY ANNOUNCED ACQUISITION OF TALEN ENERGY GAS PLANTS IN CORPUS CHRISTI AND LAREDO
CPS Energy has closed the acquisition of Talen Energy's 1,710 MW generation portfolio in Texas for $785 million, strengthening its generation plan for the greater San Antonio community. The acquisition includes natural gas plants in Corpus Christi and Laredo, aligning with CPS Energy's shift towards more efficient gas generation, solar, wind, and energy storage.
CPS Energy's acquisition of Talen Energy's generation portfolio enhances its capacity to serve the growing San Antonio community, providing additional resiliency and reliability for customers.
The addition of 1,710 MW of power from the acquired assets supports CPS Energy's long-term generation plan, which includes retiring older coal and gas units and transitioning to more efficient and sustainable energy sources.
The acquisition of natural gas plants in Corpus Christi and Laredo will help CPS Energy meet its environmental emissions reduction commitments, while also enabling the addition of more renewable energy and energy storage to its portfolio.
The retirement of 2,249 MW of older and inefficient dispatchable generation capacity before 2030 as part of CPS Energy's Vision 2027 plan may lead to potential operational challenges during the transition period.
The $785 million acquisition cost, subject to customary net working capital adjustments, represents a significant financial investment for CPS Energy, which could impact short-term financial performance.
Under the terms of the agreement CPS Energy has acquired all assets associated with the 897 MW Barney Davis and 635 MW Nueces Bay natural gas-fired generation facilities, both located in
This action supports CPS Energy's generation plan, approved in 2023 by its Board of Trustees, to power the greater
"This step marks CPS Energy's growing role as a regional energy utility, providing additional resiliency and reliability for our customers," said Rudy D.
Talen President and Chief Executive Officer Mac McFarland said, "We are pleased to have completed our strategic transaction with CPS Energy. This transaction demonstrates our continued commitment to unlocking significant value for Talen, while also taking care of our people. We are pleased that these assets will support CPS Energy's efforts to provide reliable and cost-effective power generation through its diverse portfolio to its growing community."
CPS Energy's Vision 2027 plan includes its generation plan that contemplates the retirement of 2,249 MW of older and inefficient dispatchable generation capacity before 2030. CPS Energy has added 730 MW of solar energy and 50 MW of energy storage to date as part of its generation plan, with an additional 500 MW energy storage RFP in the works. With the addition of these facilities, environmental emissions will stay on track to meet the
The plants in
J.P. Morgan acted as exclusive financial advisor and Dykema Gossett PLLC acted as legal advisor to CPS Energy with respect to the Transaction. RBC Capital Markets, LLC served as exclusive financial advisor and Kirkland & Ellis LLP served as legal advisor for Talen.
About CPS Energy
Established in 1860, CPS Energy is the nation's largest public power, natural gas, and electric company, providing safe, reliable, and competitively priced service to more than 930,114 electric and 381,379 natural gas customers in
CPS Energy:
Melissa C. Sorola
Vice President, Corporate Communications & Marketing
msorola@cpsenergy.com
About Talen
Talen owns and operates approximately 10.7 gigawatts of power infrastructure in
Talen trades on the OTCQX® Best Market under the ticker "TLNE." OTCQX companies meet high financial standards, follow best practice corporate governance, demonstrate compliance with
Additional Information
For additional information and updates about Talen, please visit our Investor Relations webpage at talenenergy.investorroom.com, or contact:
Investor Relations:
Ellen Liu
Senior Director, Investor Relations
InvestorRelations@talenenergy.com
Media:
Taryne Williams
Director, Corporate Communications
Taryne.Williams@talenenergy.com
Forward Looking Statements
This communication contains forward-looking statements within the meaning of the federal securities laws, which statements are subject to substantial risks and uncertainties. These forward-looking statements are intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact included in this communication, or incorporated by reference into this communication, are forward-looking statements. Throughout this communication, we have attempted to identify forward-looking statements by using words such as "anticipate," "believe," "continue," "could," "estimate," "expect," "forecasts," "goal," "intend," "may," "plan," "potential," "predict," "project," "seek," "should," "will," or other forms of these words or similar words or expressions or the negative thereof, although not all forward-looking statements contain these terms. Forward-looking statements address future events and conditions concerning, among other things capital expenditures, earnings, litigation, regulatory matters, hedging, liquidity and capital resources and accounting matters. Forward-looking statements are subject to substantial risks and uncertainties that could cause our future business, financial condition, results of operations or performance to differ materially from our historical results or those expressed or implied in any forward-looking statement contained in this communication. All of our forward-looking statements include assumptions underlying or relating to such statements that may cause actual results to differ materially from expectations, and are subject to numerous factors that present considerable risks and uncertainties.
View original content:https://www.prnewswire.com/news-releases/cps-energy-closes-on-previously-announced-acquisition-of-talen-energy-gas-plants-in-corpus-christi-and-laredo-302132806.html
SOURCE Talen Energy Corporation
FAQ
What did CPS Energy acquire from Talen Energy ?
CPS Energy acquired Talen Energy 's 1,710 MW generation portfolio, including natural gas plants in Corpus Christi and Laredo, Texas.
How much did CPS Energy pay for the acquisition of Talen Energy's assets?
CPS Energy paid $785 million for the acquisition of Talen Energy's generation portfolio, subject to customary net working capital adjustments.
What is CPS Energy's generation plan for the acquired assets?
CPS Energy's generation plan involves retiring older coal and gas units and transitioning to more efficient gas generation, along with solar, wind, and energy storage, to meet the growing energy demands of the San Antonio community.
How does the acquisition of Talen Energy's assets support CPS Energy's environmental commitments?
The acquisition enables CPS Energy to meet its environmental emissions reduction commitments and provides the flexibility to add more renewable energy and energy storage to its portfolio.
