ArcLight Capital Partners LLC, through a subsidiary of its ArcLight Energy Partners Fund VII LP, has acquired Public Service Enterprise Group‘s fossil generating assets in New Jersey and Maryland.
The deal is one of two transactions that in total comprise PSEG’s 6,750 MW portfolio of 13 generation units across New Jersey, Connecticut, Maryland and New York. PSEG’s strategic alternative process works to reduce business risk and earnings volatility while maintaining decarbonization goals.
“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,” commented PSEG chairman, president and CEO Ralph Izzo. “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.”
Goldman Sachs & Co. is serving as financial adviser, and Wachtell, Lipton, Rosen & Katz is serving as legal counsel to PSEG in connection with the PSEG Fossil transaction.