Dykema Advises CPS Energy in its Acquisition of Four Natural Gas Power Generation Facilities

Dykema, a leading national law firm, acted as legal advisor to CPS Energy in its $1.387 billion acquisition of four natural gas power generation facilities from PROENERGY. The 1,632-megawatt (“MW”) portfolio includes recently constructed, state-of-the-art, dual-fuel capable peaking plants located in Harris, Brazoria, and Galveston Counties within the Electric Reliability Council of Texas (“ERCOT”) market. The transaction, subject to standard net working capital adjustments, is expected to close in the third quarter of 2025.

The acquisition aligns with CPS Energy’s community-led and board-approved generation and resource plan. Purchasing these modern, operating assets provides a lower-cost, lower-risk alternative to new construction and supports CPS Energy’s goal of providing reliable, affordable, and cleaner energy to its customers.

In addition to the purchase agreement, CPS Energy and PROENERGY entered into Operations and Maintenance (O&M) and Total Care Services Agreements, under which PROENERGY will continue staffing, operating, and maintaining the plants to ensure safe and reliable operations.

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 this press release.