PSEG to sell 6.75GW fossil fuel power plants to ArcLight Capital for $1.9bn
Public Service Enterprise Group (PSEG), an American electric utility, has agreed to divest its 6.75GW fossil fuel power plants to energy infrastructure firm ArcLight Capital Partners for around $1.92 billion.
ArcLight Capital Partners will acquire the fossil generating portfolio through Parkway Generation and Generation Bridge II, the newly formed subsidiaries of ArcLight Energy Partners Fund VII.
The sale includes 13 fossil generation units that include recently constructed, natural gas-fired resources located in New Jersey, Maryland, Connecticut, and New York.
Ralph Izzo — PSEG Chairman, President, and CEO said: “A year ago, we announced the strategic review of PSEG’s non-nuclear generating assets in line with our long-term focus on regulated utility growth, improving our business mix and enhancing an already compelling environmental, social and governance profile.
“With today’s agreement, which is the result of a robust sale process, PSEG is on track to realize a more predictable earnings profile. Further, this transaction continues our evolution toward a clean energy infrastructure-focused company that will enable our increasingly low-carbon economy.”
The deal, which is subject to regulatory approvals and customary closing conditions, is anticipated to close late in Q4 2021 or Q1 2022.
In June 2021, PSEG had wrapped up the sale of a 467MW portfolio comprising 25 solar power plants in 14 US states to Quattro Solar, an affiliate of LS Power.