PSEG closes on sale of solar portfolio to Quattro Solar
The Public Service Enterprise Group (PSEG) closed on the sale of its PSEG Solar Source portfolio to Quattro Solar, LLC.
The sale includes the 467-megawatt portfolio of 25 solar facilities located in 14 states, as well as related assets and liabilities. The sale of this non-core generation portfolio is part of PSEG’s Strategic Alternatives process to explore options for PSEG Power’s non-nuclear generating fleet, which also includes more than 6,750 megawatts of fossil generation in New Jersey, Connecticut, New York, and Maryland.
“This sale marks a key milestone in our Strategic Alternatives process as we continue our transformation into a primarily regulated utility,” PSEG Chairman, President and CEO Ralph Izzo said. “PSEG remains committed to clean energy, which includes ongoing efforts to preserve our existing carbon-free nuclear fleet and to seek growth opportunities in regional offshore wind projects.”
Izzo said that the separation of the non-nuclear assets would reduce overall business risk and earnings volatility, improve the company’s credit profile and enhance its ESG (environmental, social, governance) position due to pending clean energy investments, methane reduction, and zero-carbon generation.
“We recognize the shift in investor preference toward owning regulated utility businesses without commodity exposure to merchant generation and related earnings volatility. We believe PSE&G is among the best utilities in the country and that our valuation should align with that profile,” Izzo said.
Goldman Sachs is serving as financial adviser while Wachtell, Lipton, Rosen & Katz are the legal counsel on the deal. Quattro Solar is an affiliate of LS Power.
