CPS Energy officials tell council committee they have added capacity, seek $1.5 billion capital program for generation and transmission

CPS Energy officials told a San Antonio City Council committee that the utility has added generation capacity and is seeking authority to carry out a roughly $1.5 billion capital program to fund generation, transmission and technology investments.

The presentation, given to the committee by CPS Energy staff, outlined progress on a generation plan first approved in January 2023 and described recent purchases and projects that together brought the utility well beyond its near-term target. CPS Energy staff said the utility now has more than 2,500 megawatts of capacity on its system, compared with an 830-megawatt target the plan had set for the prior year.

The presentation described a mix of near-term and longer-term resources: purchases of natural-gas-fired capacity, additional solar and wind procurement, community solar development, storage and a 2% stake in the South Texas Nuclear Project. Staff said the utility is pursuing equipment purchases and site work for future plants and that investments will also focus on transmission and on technology such as an Enterprise Resource Planning upgrade.

Why it matters: the planned investments are intended to replace retiring units, improve reliability and limit customers' exposure to inflation and fuel-price volatility. Councilmembers pressed staff on whether the capital program would raise customer rates and on risks from supply-chain delays.

Details of the plan and budget - Staff described a roughly $1.5 billion capital program and said roughly 40% of capital spending will go to infrastructure that serves customers, including nearly $300 million earmarked for transmission. Staff also cited roughly $136 million for other capital needs and about $70 million for enterprise systems discussed during the presentation. - CPS Energy staff said recent market purchases of gas-fired capacity came at prices below earlier expectations and that those buys reduced forecasted exposure to inflation. - The presentation identified supply-chain risks that could affect the schedule, citing long lead times for key equipment such as transformers. Staff said some specialized equipment can take years to procure and that these constraints affect construction timelines.

Council questions and staff responses Councilmembers asked how the plan would affect rates in the short term and whether the utility's new resource mix increases emissions. CPS Energy representatives responded that the utility expects to monitor conditions through the summer before making final rate recommendations for fiscal 2026 and that the plan emphasizes a diversified mix of resources, including renewables and storage, to lower future fuel risk.

Staff also discussed workforce and operations: they said the utility is engaging with industry partners, exploring advanced technologies including modular nuclear concepts for longer-term options, and continuing to expand community-solar offerings. An identified staff member with CPS Energy said the utility is evaluating an ERP procurement and expects new community-solar offers to expand the program.

No formal vote was taken. Staff said they would continue executing the generation plan and return to the council with additional details and recommendations as needed.

Provenance: The discussion began with a CPS Energy presentation and Q&A with councilmembers and concluded when the committee closed item 3 and moved to item 4.