CPS Energy and ERCOT are fighting over the closure of three gas-fired power plants in San Antonio

A dispute is brewing between CPS Energy and the operator of the Texas power grid over the future of three gas-fired power plants in San Antonio.

CPS Energy, the municipal utility that provides electricity to residents of the San Antonio area, notified the Electric Reliability Council of Texas (ERCOT) in March 2024 that it plans to close the Braunig facilities by March 31, 2025.

The stations are located west of Elmendorf and have been in operation since 1966, 1968 and 1970.

CPS Energy claims the plants are old and cost more to operate than to shut down. Together, all three plants generate 859 megawatts of electricity, according to a presentation by CPS executives at an ERCOT meeting in Austin on Tuesday.

While CPS Energy wants to close the power plants, ERCOT argues that the facilities are vital to the state’s power grid. ERCOT is urging CPS Energy to keep them running so the state’s power grid can run smoothly.

But CPS Energy says extensive repairs are needed to keep the Braunig power plants running, and these alone would cost millions.

“CPS Energy has not prepared to conduct additional equipment and system inspections (and repairs) necessary for continued safe and reliable plant operations,” said Richard J. Urrutia Jr., vice president-generation operations at CPS Energy, in a statement to the PUC on August 9.

The following table lists some of these costs, which can be found on page 11 of the Public Utility Commission of Texas (PUC) registration confirmation:

The big question: who would bear these costs?

CPS Energy has notified ERCOT that planned outages, inspections and maintenance are required to enable Braunig Resources to commence operations after the proposed suspension date of March 31, 2025. The estimated duration of each outage is 60 days.

CPS Energy stated that these measures were necessary to address safety and operational concerns that would arise from using the units beyond the previously completed life extension.

ERCOT says the Braunig resources are critical to the reliability of the ERCOT system in and around San Antonio and South Texas. The report says ERCOT staff will continue to work with CPS Energy on the costs and who will pay for them.

ERCOT will provide another update at the PUC public meeting on August 29.