Public Service Enterprise Group (PSEG) sold off its fossil generating assets in New York and Connecticut to ArcLight Capital Partners through its ArcLight Energy Partners Fund VII.
Newark, NJ-based PSEG has now completed the sale of its 6,750-megawatt PSEG Fossil portfolio, including 13 fossil generation units in New Jersey, Connecticut, Maryland, and New York.
“This sale successfully concludes the Strategic Alternatives process and ultimately enables PSEG to enhance its commitment to working toward a carbon-free economy that benefits our customers and our communities,” 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. This improved business mix, now 90% regulated, also reinforces our commitment to principles of environmental stewardship, social responsibility and ethical governance (ESG).”
PSEG’s Strategic Alternatives highlights investments in carbon-free generation and clean energy infrastructure and has reduced the company’s overall business risk and earnings volatility. The company has net-zero and decarbonization goals across its business, including for its regulated utility operations. It is participating in the UN-backed Race to Zero campaign.
PSEG continues to maintain its carbon-free nuclear generation fleet, totaling more than 3,700 megawatts, while also exploring investments in regional offshore wind.
Goldman Sachs is serving as financial adviser, and Wachtell, Lipton, Rosen, & Katz is serving as legal counsel in connection with these transactions.