A private desalination company's proposal to use the Barney Davis Power Plant site may be facing a significant obstacle after Corpus Christi's city manager said CPS Energy wants to negotiate exclusively with the city.
The Barney Davis Power Plant, located along the Laguna Madre in Flour Bluff, has been discussed as a potential desalination site for decades. City Council voted unanimously in March to explore desalination options at the location. However, the city must work with CPS Energy, which owns the property.
AXE H2O, a private desalination company, submitted a business proposal that identified Barney Davis as its preferred location.
Dr. John Olson, chairman of AXE H2O, said the company had narrowed its focus to that site.
"We've downselected... specifically after a meeting with CPS Energy's CEO, Rudy Garza, on the 28th of May."
When the city received AXE H2O's business proposal, its response was that if the company has no agreement with CPS Energy to use the Barney Davis location, it cannot proceed.
The issue came into sharper focus during Friday's weekly water briefing, led by Corpus Christi Water's Nick Winkelmann. When asked whether the city holds exclusive negotiating rights with CPS Energy for the Barney Davis site — or whether a private entity like AXE H2O could independently negotiate for space on the property — Winkelmann said the city does not hold exclusivity.
City Manager Peter Zanoni then stepped to the microphone to clarify.
"Nick may not have been in San Antonio when we went up recently. CPS has indicated to us, their CEO, Rudy Garza that they being CPS Energy wants to deal exclusively with the city... not with anyone else," Zanoni said.
Two competing accounts now exist: AXE H2O says it met directly with CPS Energy's CEO, while the city says CPS Energy is dealing with it exclusively. CPS Energy did not respond to requests for comment by deadline.
For the latest local news updates, click here, or download the KRIS 6 News App.
Catch all the KRIS 6 News stories and more on our YouTube page. Subscribe today!
