PSEG sells fossil fuel generating portfolio to ArcLight Capital
Public Service Enterprise Group (PSEG) will sell its 6,750-megawatt fossil generating portfolio to ArcLight Capital Partners.
Specifically, the portfolio will be sold to newly formed subsidiaries of ArcLight Energy Partners Fund VII for approximately $1.92 billion. The deal is expected to be completed late in the fourth quarter of 2021 or the first quarter of 2022.
“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,” PSEG Chairman, President and CEO Ralph Izzo said. “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.”
Along with the sale of its Solar Source assets in June, New Jersey-based PSEG expects to receive approximately $2.15 billion of net proceeds. The sale of PSEG Fossil comprises 13 generation units in New Jersey, Connecticut, Maryland, and New York. The transactions are subject to the expiration or early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as well as reviews by the Federal Energy Regulatory Commission and other regulatory bodies.
PSEG is continuing to build a company focused on clean energy infrastructure. PSEG’s Powering Progress vision sees a future in which people use less energy and that energy is cleaner and delivered more reliably than ever. PSEG recently announced it had accelerated its net-zero climate vision by two decades – from 2050 to 2030. Also, it incorporated scope 1 and scope 2 emissions from the operations of both utility transmission and distribution, as well as power generation.
“This sale is another in a series of accomplishments that position PSEG for the future – leading the energy sector and serving our customers by enhancing our clean energy and climate-centered profile,” Izzo said.
Goldman Sachs is serving as financial adviser on the deal, while Wachtell, Lipton, Rosen & Katz is serving as legal counsel.
