CPS ENERGY INCREASES ENERGY GENERATION: ADDING 84 MW OF RENEWABLE ENERGY FROM TEXAS WIND FARM

CPS Energy’s expanded contract with Avangrid will help power approximately 41,000 Texas homes on a hot summer day

June 4, 2024- (SAN ANTONIO) —CPS Energy announced an extension and expansion of its previous 15-year power purchase agreement (PPA) that will more than double its stake in Avangrid’s Peñascal wind farm in Kenedy County, Texas, south of Baffin Bay. The amended PPA will increase the Peñascal-based utility’s wind energy intake from 77 megawatts (MW) to 161 MW, enough energy to power about 41,000 Texas homes on a hot summer day. Nearly 40% of the total energy generated at the Peñascal wind farm is currently supplied to CPS Energy. CPS Energy is the No. 2 wind energy producer in the state of Texas.

“The development of our diversified energy portfolio continues to move us closer to achieving our Vision 2027 goals,” said Rudy D. Garza, president and CEO of CPS Energy. “This wind development and expansion reinforces our long-standing commitment to renewable energy and is well aligned with our approved power generation plan.”

“This is another great example of Avangrid working closely with our partners to continue to deliver clean and reliable energy to customers,” said Pedro Azagra, CEO of Avangrid. “In this case, we are strengthening our already strong relationship with CPS Energy to support their growing customer base with locally sourced energy, while managing commercial risk at one of our existing wind farms. These types of partnerships are critical to supporting the clean energy transition in Texas and beyond.”

The additional 84 MW of wind power further adds generation to the portfolio and supports CPS Energy’s Vision 2027 plan, which envisions retiring 2,249 MW of legacy generating capacity before 2030. To date, CPS Energy has added 1,710 MW of natural gas and contracted 730 MW of solar and 50 MW of energy storage as part of the generation plan, with work ongoing on an additional request for proposals for 500 MW energy storage. These efforts are also consistent with CPS Energy’s commitment to the City of San Antonio’s Climate Action and Adaptation Plan (CAAP), which includes a Board of Supervisors resolution supporting CAAP’s goal of becoming carbon neutral by 2050 and interim goals on reducing greenhouse gas emissions by 41% compared to 2016 levels and by 71% by 2040.

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About CPS Energy

Founded in 1860, CPS Energy is the nation’s largest community-owned electric and natural gas service provider. We provide safe, reliable and competitively priced service to 907,526 electric customers and 373,998 natural gas customers in San Antonio and parts of seven adjacent counties. Our customers’ combined energy bills are among the lowest of the nation’s 20 largest cities, while generating $9 billion in revenue for the city of San Antonio over the past 80 years. Our Vision 2027 strategic plan aims to lead CPS Energy through rapid transformational change in our city. As a trusted and reliable social partner, we continually focus on job creation, economic development and educational investments. Our strength is our skilled workforce, whose commitment to the community is demonstrated through our employee volunteerism, community engagement efforts, and programs designed to provide value and support to our customers.