As a result of this expanded agreement, the utility’s power capacity from Avangrid will nearly double, rising from 160.8 MW to 320 MW. This increase is enough to power approximately 40,000 homes on a hot summer day.
“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.”
“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.”
The Peñascal wind farm has a total capacity of 401 MW. With this expanded agreement, Avangrid will allocate 80% of the total wind energy produced at this facility to CPS Energy’s customers.
CPS Energy currently has approximately 908 MW of wind capacity in its generation portfolio. With the addition of the 159.2 MW from Avangrid, the utility will have a total of 1,067 MW of this renewable resource—maintaining CPS Energy’s position as the second-largest buyer of wind energy in the state. This additional wind energy connected to CPS Energy’s power system on April 1, 2025, and is already online to support the energy demand during this summer season.
This latest PPA expansion supports CPS Energy’s Vision 2027 plan which contemplates the retirement of 2,541 MW of older generation capacity before 2030. As part of this future generation plan, in 2024 CPS Energy added 1,735 MW of natural gas, 113 MW of wind capacity, 480 MW of solar and 520 MW of energy storage under contract. CPS Energy also contracted an additional 52 MW of nuclear.
These efforts also align with CPS Energy’s commitment to the City of San Antonio’s Climate Action & Adaptation Plan (CAAP), which includes a Board of Trustees resolution to support the CAAP’s goal to become carbon neutral by 2050 with interim goals of reducing greenhouse gas 71% by 2040.
