As CPS Energy prepares to go to trial with New Jersey-based electricity wholesaler NRG Energy, the community-owned utility remains focused squarely on the customers of Greater San Antonio. CPS Energy legal counsel was successful in defeating a contrived procedural attempt to further delay the trial set to begin on Jan. 25 by moving it to federal court.

“We are preparing to be heard in Texas district court next Monday. The federal court system is congested, and moving the trial would have resulted in further delays to this case. It is important to CPS Energy that we resolve these issues as quickly as possible for our customers,” said CPS Energy General Council Carolyn Shellman.  “Federal Court proceedings could take months, which would be more costly, and our foremost priority is to be good stewards for our customers and get this resolved quickly.”

Shellman continued to say that CPS Energy still hopes to reach an out-of-court solution with NRG Energy and Nuclear Innovation North America (NINA) over the proposed expansion of the STP in Matagorda County. CPS Energy still believes a business solution is still the best course of action.

On Dec. 6, CPS Energy filed a petition in Bexar County district court to clarify the roles and obligations of CPS Energy and NINA, a limited liability company comprised of NRG Energy and Toshiba. NINA and CPS Energy jointly own the expansion project known as STP Units 3 and 4, and the petition seeks to define the liability of both parties should either decide to withdraw from the project.

NRG Energy escalated the litigation when it sued CPS Energy and claimed the utility should forfeit more than $370 million invested to date and lose all value in the project’s land and water rights. CPS Energy amended its petition Dec. 23 and raised significant issues concerning misconduct by NRG Energy and NINA. The utility specified actual and exemplary damages of $32 billion.

“We will continue to honor our contractual obligations through this process, however we will not be pushed into legal corners where we are forced to forfeit the investment we have in the project so far, nor give up our rights to the valuable site,” said CPS Energy spokesperson Theresa Brown Cortez. 

CPS Energy continues to evaluate the updated cost estimates on the expansion project and until staff reports its findings CPS Energy cannot make a decision whether to proceed or withdraw from the project, Cortez continued.