CPS Energy officials said they will ask the San Antonio City Council next week to approve the sale of $400 million of revenue bonds to finance the municipal utility’s portion of a nuclear power plant in South Texas.
The utility said it needed the approval this month so it can sell the bonds before the market slows down after the Thanksgiving holiday.
CPS Energy has spent $276 million on planning and engineering for the expansion project. Utility officials said proceeds from the new $400 million issue would provide the funds for the recently approved engineering work.
Total costs are estimated at $13 billion. The utility is working with NRG Energy on a project to add two nuclear reactors at the South Texas Project near Bay City. Each partner currently owns 50% of the project, but a third partner is being sought to buy 20%.
San Antonio Mayor Julián Castro said CPS has agreed to reduce its stake in the two-reactor expansion project to 20% or 25% rather than the earlier plans for a 40% share if it can find an investor. CPS Energy earlier said it would be more economical to keep a 40% share of the plant and sell surplus power to other municipalities and electric cooperatives.
San Antonio’s electric and gas revenue bonds are rated AA by Standard & Poor’s and Fitch Ratings, and Aa1 by Moody’s Investors Service.
