U.S. Congressman Charlie Gonzalez, as well as State, City and County officials, joined CPS Energy staff today as they marked the dedication of a state-of-the-art power plant with a plaque unveiling and tours of the facility.

"Providing affordable and reliable energy to San Antonians is not only a smart investment but a necessary one," said Congressman Gonzalez. "With the addition of the new state-of-the-art Spruce 2 system, CPS Energy is adding to its diverse portfolio of cleaner technologies to provide energy to San Antonio in a responsible and efficient way."

From May through the end of August, operation of Spruce 2 saved CPS Energy customers $45 million, compared to power that could have been purchased from the state grid.

The new plant at Calaveras Power Station is named after J.K. "Jack" Spruce, who led CPS Energy as general manager from 1976 through 1988. Spruce and San Antonio Mayor Emeritus Lila Cockrell unveiled the dedication plaque.

"It was always envisioned that there would be a second unit at the site. It just took a while to happen," said retired General Manager Jack Spruce. "I am proud and very honored that [CPS Energy] chose to recognize me again."

Spruce Unit 2 joins the original Spruce unit (also coal-fired), J.T. Deely (two coal-fired plants) and O.W. Sommers (two natural gas-fired plants) at the southeast San Antonio site. The 750-megawatt plant, the largest and most efficient of the six units, powers almost 200,000 homes. Following the four-year construction process, CPS Energy began temporary operation of Spruce 2 in preparation for final acceptance of the plant.

"More than $250 million of the best available emissions-control equipment was incorporated into Unit 2 of J.K. Spruce and we have invested another $250 million to upgrade emissions controls on existing coal units," said outgoing CEO Milton Lee. "This company began its 150-year history making energy innovations for San Antonio. I am proud to have played a role in our continual drive toward cleaner energy sources, along with developing our renewable energy portfolio."

Spruce 2 is a key element of CPS Energy’s Strategic Energy Plan adopted by the Board of Trustees in June 2003. The plan sought to: provide low-cost, competitively priced electricity; meet environmental commitments; promote energy conservation; and expand renewable energy resources such as wind and solar.

"This plant will continue to allow CPS Energy to offer dependable low-cost energy while adhering to, and even exceeding, environmental standards and regulations," said Derrick Howard Vice-Chairman, CPS Energy Board of Trustees.

Calaveras Power Partners (CPP), a team led by Zachry Holdings of San Antonio, began construction of the plant in 2006. At the project’s peak, CPP led a workforce of nearly 1,800 people.

"Spruce 2 will help CPS Energy keep pace with Greater San Antonio’s growth and help keep customers’ utility bills affordable. Since May of this year CPS Energy customers have realized a $3.80 savings each month, for the average residential bill," said Mike Kotara, CPS Energy’s Senior Vice-President of Fossil Fuels Generation. "The utility is using cheaper fuels such as nuclear and low-sulfur coal from Wyoming for electrical production to maintain its position as the lowest-cost provider of electricity and natural gas among the nation’s largest cities."