CPS Energy to tend Texas military complex for half-century

Municipally owned CPS Energy of San Antonio, Texas recently earned a $248 million, 50-year contract with the U.S. Defense Logistics Agency to manage natural gas and electric services at Joint Base San Antonio (JBSA).

Acing a competitive bidding process, the utility business now stands poised to operate and support the entire military installation’s energy infrastructure, the company said.

"This is a win for the community, as it will ensure that CPS Energy is the owner and operator of JBSA's gas infrastructure and electric grid," Paula Gold-Williams, CPS Energy's president and CEO, said. She added that JBSA chose to invest in CPS Energy based on the company’s track record of quality and value, commending the high level of employee service. 

"Equally important is that it is a tremendous vote of confidence in the more than 3,000 employees of CPS Energy,” Gold-Williams said.

The military campuses comprise acreage at Randolph Air Force Base, Lackland Air Force Base and the Lackland Training Annex, home to almost 134,000 civilians, military service members and contractors. With the contract will come a period of transition for purposes of inventory, evaluation and price adjustments. The contract runs through Dec. 31, 2068 and is funded by U.S. Air Force budgets.

“While we provided a very competitive bid to JBSA, we also ensured that our other customers did not have to take on any cost risk," Gold-Williams said. “Instead, this allows our other customers to benefit from cost and operational efficiencies we will achieve through winning this large contract."