CPS Energy and the operator of the Texas’ power grid are at odds over the future of three gas-powered plants in San Antonio.
CPS Energy, the city-owned utility that provides power to San Antonio-area residents, notified the Electric Reliability Council of Texas (ERCOT) in March 2024 that it plans to close the Braunig units by March 31, 2025.
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The stations are located west of Elmendorf and have been in operation since 1966, 1968 and 1970.
“The retirement of the Braunig units is part of our Board approved generation plan. These power plants are nearing their operational end of life. CPS Energy formally notified ERCOT of its intention to retire Braunig 1, 2 and 3 in March 2025, which was approximately one year before their planned suspension, well in advance of ERCOT’s 150-day notice,” a statement from the utility reads. “We will continue to have collaborative discussions with ERCOT during their review process.”
CPS Energy claims the units are old and are costing more to run than they would to shut down. Collectively, all three units produce 859 megawatts of power, according to a presentation given by CPS leaders at an ERCOT meeting in Austin on Tuesday.
While CPS Energy wants to shut the plants down, ERCOT argues that the units are vital to the state’s power grid. ERCOT is asking CPS Energy to keep them running to help the state power grid run smoothly.
But CPS Energy says that major repairs need to be done to keep the Braunig plants running, and those alone will cost millions.
“CPS Energy has not prepared to conduct additional equipment and system inspections (and repairs) that are required for extended safe and reliable unit operation,” said Richard J. Urrutia Jr., Vice President-Generation Operations at CPS Energy, in a statement to the PUC on Aug. 9.
The following table breaks down some of those costs and can be found on page 11 of the Filing Receipt from the Public Utility Commission of Texas (PUC):
| Braunig Unit | Estimated Pre-RMR Outage Cost | Estimated Pre-RMR Life Extension Cost | Estimated Pre-RMR Lost Opportunity Cost |
|---|---|---|---|
| Unit 1 | $9,695,00 | $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 big question: who would pay for these costs?
CPS Energy informed ERCOT that planned outages, inspections and maintenance are needed for Braunig Resources to operate after the proposed suspension date of March 31, 2025. The estimated time for each is 60 days.
CPS Energy said these are needed to address safety and operational concerns that would stem from using the units past the life extension previously done.
ERCOT says the Braunig Resources are critical to ERCOT System reliability in and around the San Antonio & South Texas region. ERCOT staff will continue to work with CPS Energy on the cost and who pays, according to the report.
ERCOT will provide another update to the PUC’s Aug. 29 open meeting.