CPS Energy Wins 50-Year Natural Gas, Electric Distribution System Contract at Joint Air Force Base

CPS Energy has been awarded a $248 million, 50 year contract by the Defense Logistics Agency for the ownership, operation and maintenance of the natural gas and electric distribution system at Joint Base San Antonio (JBSA). The company was awarded the contract through a competitive bidding process that, evaluated experience, quality of service and value to the customer.

The contract calls for economic price adjustments, which will ensure appropriate compensation to CPS Energy and minimize risks to any of the utility’s other customers as costs rise over the contract period, which ends Dec. 31, 2068 and is funded with appropriations from Air Force operations and maintenance budgets.

CPS Energy will begin transitioning activities, including inventory and assessment of the natural gas and electric JBSA infrastructure at Randolph Air Force Base, Lackland Air Force Base and the Lackland Training Annex. The properties are situated on 11,160 acres of land and are home to nearly 134,000 civilians, military personnel and contractors. After the transition period, CPS Energy will own, operate and maintain the infrastructure at JBSA for the next 50 years. The transition process is expected to take between 12 and 15 months to complete. As part of the contract, CPS Energy will be reimbursed up to $4.5 million for the survey process of the electric and gas infrastructure.