Texas public power utility CPS Energy has invested more than $1 billion in goods and services to serve its customers in fiscal year 2024, with local businesses benefitting from these investments, it said on March 6.
CPS Energy said that the types of contracts that have benefited from these local investments include:
- Engineering firms designing or installing new infrastructure.
- Assisting in the pruning of trees and vegetation surrounding 1,000 miles of overhead lines to limit weather-related outages.
- Excavation to install underground lines.
- The repair and upkeep of gas lines.
“At CPS Energy, we depend on a variety of goods and services to serve our community,” said Maria Stanton, Vice President of Supply Chain at CPS Energy. “We are a municipally owned utility and are dedicated to keeping infrastructure dollars here in our growing region.”
This year’s focus on local vendor spend -- those with offices in San Antonio’s Metropolitan Statistical Area -- is the most to date, CPS Energy said.
Since 2022, the utility has doubled procurement outreach events and carved out more than 70% of the annual spending in fiscal year 2024 for local suppliers.
To assist more local entrepreneurs in having a chance to win bids, CPS Energy de-bundled 73 large projects into smaller contracts. This resulted in more than double the number of benefited suppliers to 193 with $856 million in contracts awarded, it noted.
With more suppliers, CPS Energy has increased its outreach efforts.
This year alone, CPS Energy has hosted close to 180 events to assist prospective contractors.
CPS Energy noted it is partnering with local Chambers of Commerce and business organizations focused on increasing the amount of local spending in the community to co-host outreach events for additional contracting opportunities.
“By providing contract opportunities that resulted in over $1 billion in local spend, CPS Energy is a major contributor to the economic development of our regional economy. It’s estimated that every dollar that CPS Energy spends locally generates a $2 to $4 return on investment for the local business community,” the utility said.
