PSEG to sell 6.75GW fossil fuel power plants to ArcLight Capital for $1.9bn

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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.

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The sale includes 13 fossil generation units that include recently constructed, natural gas-fired resources located in New Jersey, Maryland, Connecticut, and New York.

PSEG to sell 6.75GW fossil fuel power plants to ArcLight Capital for $1.9bn

PSEG to sell 6.75GW fossil fuel power plants to ArcLight Capital for $1.9bn. Photo courtesy of Jim.henderson/Wikimedia.org.

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.

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“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.

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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.

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