Avangrid and CPS Energy Expand Relationship to Provide Energy for Another 40,000 San Antonio Residents

Press Releases

04/17/2025

Avangrid and CPS Energy Expand Relationship to Provide Energy for Another 40,000 San Antonio Residents

Avangrid and CPS Energy Expand Relationship to Provide Energy for Another 40,000 San Antonio Residents

SAN ANTONIO, Texas - April 17, 2025 - Avangrid, Inc., a leading energy company and member of the Iberdrola Group, today announced that it has expanded an existing Power Purchase Agreement (PPA) with CPS Energy, the nation's largest municipally-owned provider of electric and natural gas services, by adding another 159.2 Megawatts (MW) of capacity from its Peñascal power generation project. As a result, the utility has doubled its offtake from Avangrid, rising from 160.8 MW to 320 MW. The additional energy capacity connected to the utility's generation system on April 1 and will help power approximately 40,000 more homes just in time for the hot summer months.

"Avangrid's relationship with CPS Energy grows even stronger with this expanded power contract," said Pedro Azagra, Avangrid CEO. "Demand for electricity is growing from coast to coast, and we are glad to see this project serving communities in and around San Antonio. Projects like Peñascal are helping ensure we meet the growing demand for energy in Texas and support the reliability of the local electrical grid while bolstering the state's reputation as a leader in American power production."

Peñascal consists of two phases with a combined capacity of 401 MW and is located just south of Baffin Bay in Kenedy County. The project can produce enough electricity to power about 100,000 homes without using any water. CPS Energy will now receive about 80 percent of energy produced at Peñascal.

"CPS Energy's expanded relationship with Avangrid is a testament to our Vision 2027 Plan, a comprehensive and diverse generation portfolio that enhances our capacity to serve a growing community," said Rudy D. Garza, President & CEO of CPS Energy. "This additional investment in wind power allows us to continue to provide reliable and sustainable energy at an affordable price for our customers."

Peñascal I became commercially operational in 2009, followed by Peñascal II in 2010. The project supports 32 permanent employees for ongoing operations and maintenance of the energy plant. Additionally, Peñascal has paid about $50 million in property taxes since it was built, which help pay for a variety of public services, especially education.

Avangrid owns and operates seven energy projects in Texas, including the recently completed True North Solar project in Falls County. These facilities have a combined operating capacity of almost 1.6 Gigawatts (GW), capable of powering about 400,000 homes, and have paid over $115 million in property taxes throughout their lifetime.