PSEG looking into exit from 7 GW fossil fuel, solar assets

Power plant. Author: Jonathan Kershaw. License: Creative Commons, Attribution 2.0 Generic.

August 4 (Renewables Now) - New Jersey-based energy company Public Service Enterprise Group Inc (NYSE:PEG), or PSEG, is exploring strategic alternatives for more than 6,750 MW of fossil fuel plants and a 467-MW solar power portfolio.

More specifically, the company has hired Goldman Sachs and Wachtell, Lipton, Rosen & Katz as advisors in the above-mentioned process, which concerns the Solar Source portfolio and the rest of the non-nuclear generating assets under subsidiary PSEG Power. The fossil fuel plants in question are located in New Jersey, Connecticut, New York and Maryland.

PSEG’s chairman, president and CEO Ralph Izzo commented that the company plans to speed up its transformation into a primarily regulated electric and gas utility.

"A separation of the non-nuclear assets would reduce overall business risk and earnings volatility, improve our credit profile, and enhance an already compelling ESG position driven by pending clean energy investments, methane reduction, and zero-carbon generation," Izzo added.

The evaluation is in the preliminary stage. PSEG anticipates launching a sale process in the final quarter of the year and have the transaction closed in 2021.

The company will, meanwhile, continue to consider investing in offshore wind power. In particular, it expects to make a decision later this year on whether to take part in Ørsted’s (CPH:ORSTED)'s Ocean Wind project. PSEG said in October 2019 that it was discussing the acquisition of a 25% stake in the 1,100-MW project off Atlantic City.

Moreover, PSEG is now evaluating taking part in upcoming offshore wind solicitations in New Jersey and other Mid-Atlantic states.

The company said it will keep its existing nuclear fleet because it considers it necessary for New Jersey to meet its long-term carbon reduction objectives.

More stories to explore
Share this story
About the author
Browse all articles from Ivan Shumkov

Ivan is the mergers and acquisitions expert in Renewables Now with a passion for big deals and ambitious capacity plans.

More articles by the author
5 / 5 free articles left this month
Get 5 more for free Sign up for Basic subscription
Get full access Sign up for Premium subscription