PSEG Agrees to Sell 6.8-GW Fossil Fleet to ArcLight Capital
The post PSEG Agrees to Sell 6.8-GW Fossil Fleet to ArcLight Capital appeared first on POWER Magazine.
Public Service Enterprise Group (PSEG) has agreed to sell its 6.8-MW portfolio of non-nuclear generating assets—a fleet of 13 gas plants—to a fund controlled by ArcLight Capital Partners LLC for about $ 1.92 billion. The sale, which effectively sets up its exit from the competitive generation business, is expected to be completed late in the fourth quarter of 2021 or the first quarter of 2022.
The divestiture revealed on Aug. 12 follows PSEG’s announcement in August 2020 that it would shed part of its merchant generation fleet to reduce overall business risk and earnings volatility; improve its corporate credit profile; and enhance its environmental, social, and governance (ESG) position. “Our intent is to accelerate the transformation of PSEG into a primarily regulated electric and gas utility—a plan we have been executing successfully for over a decade,” Ralph Izzo, PSEG chairman, president, and CEO, said in a statement at the time.
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