Dykema Advises CPS Energy in Closing of $1.387 Billion Acquisition of Four Natural Gas Power Generation Facilities

Dykema, a leading national law firm, served as legal advisor to CPS Energy in connection with the closing of its $1.387 billion acquisition of four natural gas power generation facilities from PROENERGY. The portfolio, with an aggregate capacity of approximately 1,632 megawatts (“MW”), includes recently constructed, dual-fuel capable peaking plants located in Harris, Brazoria, and Galveston Counties within the Electric Reliability Council of Texas (“ERCOT”) market.

This strategic acquisition provides CPS Energy with modern, operating generation assets that avoid the costs and risks associated with new construction. The acquired facilities offer future flexibility, with dual-fuel capability enabling a potential transition to hydrogen fuel blends with favorable carbon emissions.

Consistent with the previously announced transaction terms, CPS Energy and PROENERGY entered into Operations and Maintenance (O&M) and Total Care Services Agreements under which PROENERGY will continue to staff, operate, and maintain the plants to ensure safe and reliable performance.

The Dykema team advising on the transaction was led by Will Liebmann and included Rodrigo Figueroa, Emily Reed, John Stewart, Asel Lindsey, Howard Iwrey, Andrew Sherwood, Samantha Chaiken, Melissa Hjalmquist, Maggi Robert, Falak Momin, Alexander Brozak, Nathan Jin, Sabrina Salazar, and Lisa Murphy.

To learn more about the details of this transaction, please see CPS Energy’s official press release.