CPS Energy, ERCOT Contend Over Closure of 3 Gas-Powered Plants in San Antonio

CPS Energy, ERCOT Contend Over Closure of 3 Gas-Powered Plants in San Antonio

The battle lines have been drawn, with CPS Energy and Electric Reliability Council of Texas (ERCOT) on opposing sides. It’s a tug-of-war over the future of three fossil-fueled power plants in San Antonio. CPS Energy, a community-owned utility serving the residents of San Antonio and surrounding areas, has plans to close the Braunig units by the end of March 2025. The decision, however, is not well-received by ERCOT, who claim the units are pivotal for the stability of the state’s power grid.

Background of the Braunig Units

Located to the west of Elmendorf, the Braunig units have been serving the area since 1966, 1968, and 1970. CPS Energy argues that these units are ancient and their continued operation is less cost-effective compared to their closure. Together, these plants generate 859 megawatts of power—and despite this significant contribution, CPS intends to bring down the shutters due to their high maintenance costs and diminished efficiency.

The Tug-of-War

While the utility seeks to decommission the units, ERCOT puts forward a strong dissent, insisting on their necessity for the smooth functioning of the power grid in Texas. According to the grid operator, the potential closure of these plants would diminish the state’s grid reliability.

However, the decision to keep these facilities operative comes with a hefty price tag. In addition to millions of dollars needed for their preservation, CPS Energy has identified the need for extensive repairs and equipment inspections. These activities, they argue, would ensure a safe and continuously reliable operation.

Estimated Costs

According to Richard J. Urrutia Jr., the Vice-President of Generation Operations at CPS Energy, the following are some of the cost breakdowns for these units:

Braunig Unit	Estimated Pre-RMR Outage Cost	Estimated Pre-RMR Life Extension Cost	Estimated Pre-RMR Lost Opportunity Cost
Unit 1	$9,695,000	$4,515,000	$3,105,111
Unit 2	$9,065,000	$6,574,000	$2,400,007
Unit 3	$10,950,000	$4,515,000	$6,533,392
Total Unit Costs	$29,710,000	$15,604,000	$12,038,510

The concern arises around who would bear these steep expenses?

Looking Forward

Despite their differences, both ERCOT and CPS Energy are engaged in extensive discussions regarding the impending costs and possible resolutions. ERCOT maintains that keeping the Braunig plants operational is crucial for the region’s power stability. Future discussions are slated to wearily tread on the debate of cost-bearing, with another public update expected in the next power grid meeting on August 29.