
The build-out of CPS Energy’s new headquarters at McCullough Avenue and Avenue B is on schedule for mid-2020, the utility said recently.
The overall project will cost $210 million, which includes the purchase of the property, the design, construction, furniture, etc., said Bill Badger, CPS Energy’s manager of facility and capital construction. It’s being funded via the utility’s cash reserves and from proceeds from the sale of its six downtown properties, which the CPS Energy board declared as surplus in September.
“We are not borrowing money, and this has no impact on our rates,” Badger said.
Instead of building anew, CPS Energy gutted two office towers, which it purchased in 2016, that once served as office space for AT&T, as well as Valero Energy Corporation’s headquarters.
The utility is essentially increasing the collective size of the two buildings from 433,000 square feet to 494,000 square feet. Both buildings are being expanded east; the walls are being extended out. The reason, Badger said, was because the building simply no longer met code. This included the stairwells and restrooms that were not large enough to be ADA accessible.
“We’re adding some steel to make those floor plates a little bigger so we can push the stairwells where we need them,” Badger said.

Among the upgrades is a parking area in the 11-story tower closest to the river, which is being converted into an auditorium for public gatherings and meetings. The other tower, closest to Avenue B, is 14 stories.
In an interview in mid-December, Badger said the piers for a six-level, 1,200-plus-space parking garage would be drilled in a matter of days. The garage will face Avenue B.
The overall project is expected to be completed May 2020, with about 1,300 CPS Energy employees moving in around September or October.
Badger said the utility has no plans to lease unused office space.
He said any unforeseen work beyond the $210 million will be covered by contractor Sundt, unless CPS Energy makes the change.
“As long as we don’t change the scope of the project, they have to deliver at that number,” Badger said.
The utility will use proceeds from the sale of seven properties—including its current headquarters and garage building on Navarro Street, Villita Assembly Building, and the former Jones Avenue Service Center, among others—to offset the cost of the new headquarters. He said contractor CBRE Group, which is marketing the properties, had not put them on the market.

Previously published
» CPS Energy selling five downtown properties
Setting it straight: The original version of this article gave the wrong title for Bill Badger, who is CPS Energy’s manager of facility and capital construction.
Editor’s note: Bill Badger is a monthly supporter of the Heron. Click here for a complete list of supporters and sponsors.
Contact Ben Olivo: 210-421-3932 | ben@saheron.com | @rbolivo on Twitter
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