October 10, 2025

Energy Southeast Completes $799 Million Prepaid Energy Transaction with CPS Energy

Energy Southeast Completes $799 Million Prepaid Energy Transaction with CPS Energy

Energy Southeast, a Cooperative District, has completed a $798.985 million prepaid energy transaction with CPS Energy, the municipally owned electric and gas utility serving San Antonio, Texas. The transaction marks another significant step in Energy Southeast’s efforts to provide public power utilities with access to long-term energy savings through tax-exempt prepayment structures.

Through the transaction, Energy Southeast issued its 2025 Series B Energy Supply Revenue Bonds to finance the prepayment of a 30-year supply of energy. Energy deliveries are scheduled to begin December 1, 2025, and continue through November 30, 2055, with approximately 20.2 million megawatt-hours expected to be delivered over the life of the agreement.

Energy Southeast will sell the energy to CPS Energy under a long-term Power Supply Contract. The structure is designed to provide CPS Energy with electricity at a discount from the prices it would otherwise pay, generating savings that support the utility’s ability to provide reliable and economical electric service to its customers.

Morgan Stanley Capital Group Inc. serves as the energy manager for the transaction, while American National Insurance Company serves as the funding agreement provider.

The transaction further demonstrates Energy Southeast’s ability to bring the benefits of energy prepayment transactions to public power utilities across the country.

To learn more about energy prepayment and Energy Southeast, A Cooperative District, please visit energysoutheast.org.

Energy Southeast, A Cooperative District, is Public Power’s Partner in Energy Prepayment.