San Antonio’s municipal utility CPS Energy is expected to ask the City Council next month for $400 million of revenue bonds to finance its participation in an expansion of the nuclear South Texas Project.
The utility and NRG Energy, its partner in the nuclear power plant near Bay City, want to build two new reactors at the power-generating facility.
CPS Energy already has spent $276 million on the expansion project and voted last week to spend another $100 million. Utility officials said bond proceeds would provide the funds for the newly approved engineering work.
Total cost of the expansion is estimated by the utility at $13 billion, but opponents said the eventual cost could be more than $22 million. The two participants expect a third party to join the venture by the end of the year.
The utility’s electric and gas revenue bonds are rated AA by Standard & Poor’s and Fitch Ratings and Aa1 by Moody’s Investors Service.