Public Service Enterprise Group (PSEG) on Friday completed the sale of its fossil-fuel plants in New Jersey and Maryland to ArcLight Capital Partners as part of PSEG’s push to decarbonize its operations through greater reliance on nuclear and offshore wind power.
Completion of the sale of the New Jersey and Maryland assets concludes one of the two transactions that together comprise the sale of PSEG Fossil’s 6,750-megawatt portfolio of 13 fossil generation units in New Jersey, Connecticut, Maryland and New York. PSEG first announced a $1.92 billion agreement to sell the plants last summer.
“This sale marks a key milestone in the Strategic Alternatives process we initiated in July 2020 and positions us to continue to grow our regulated utility, PSE&G, complemented with more predictable carbon-free generation and infrastructure,” PSEG Chairman, President and CEO Ralph Izzo said.
“PSEG is focused on clean energy and infrastructure investments to drive regulated utility growth, with a vision toward powering a future where people use less energy, and it’s cleaner, safer and delivered more reliably than ever,” Izzo said. “PSEG’s improved business mix, on track to achieve 90% regulated, further enhances an already compelling environmental, social and governance profile.”
PSEG’s Strategic Alternatives process reduces overall business risk and earnings volatility and highlights its investments and opportunities in regional offshore wind and the preservation of its existing nuclear fleet. PSEG also has decarbonization goals, including participation in the U.N.-backed Race to Zero campaign.
Furthermore, subject to the satisfaction of required closing conditions, including applicable regulatory approvals, PSEG anticipates completing the sale of PSEG Fossil’s New York and Connecticut generating assets within the first quarter of 2022.