{"id":527341,"date":"2021-08-12T08:58:18","date_gmt":"2021-08-12T12:58:18","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/pseg-agrees-to-sell-pseg-fossil-generating-portfolio-to-arclight-capital\/"},"modified":"2021-08-12T08:58:18","modified_gmt":"2021-08-12T12:58:18","slug":"pseg-agrees-to-sell-pseg-fossil-generating-portfolio-to-arclight-capital","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/pseg-agrees-to-sell-pseg-fossil-generating-portfolio-to-arclight-capital\/","title":{"rendered":"PSEG Agrees to Sell PSEG Fossil Generating Portfolio to ArcLight Capital"},"content":{"rendered":"
\n

Transaction Furthers PSEG’s Transition to a Clean Energy Company<\/h2>\n

PSEG Updates Full-Year 2021 Operating Earnings Guidance to $3.50 – $3.65 per Share<\/h2>\n

PR Newswire<\/p>\n<\/p><\/div>\n

\n

\n NEWARK, N.J.<\/span>, Aug. 12, 2021<\/span> \/PRNewswire\/ —\u00a0Public Service Enterprise Group (PSEG) has entered into an agreement to sell its 6,750-megawatt fossil generating portfolio to newly formed subsidiaries of ArcLight Energy Partners Fund VII, L.P., a fund controlled by ArcLight Capital Partners, LLC for aggregate consideration of approximately $1<\/span>.92\u00a0billion, subject to customary adjustments, and is expected to be completed late in the fourth quarter of 2021 or the first quarter of 2022. <\/p>\n

\n

\n
\n \"Public
\n <\/a>\n <\/p>\n<\/p><\/div>\n

“A year ago, we announced the strategic review of PSEG’s non-nuclear generating assets in line with our long-term focus on regulated utility growth, improving our business mix and enhancing an already compelling environmental, social and governance profile,” PSEG Chairman, President and CEO Ralph Izzo<\/span> said. “With today’s agreement, which is the result of a robust sale process, PSEG is on track to realize a more predictable earnings profile. Further, this transaction continues our evolution toward a clean energy infrastructure-focused company that will enable our increasingly low-carbon economy.”<\/p>\n

Together with the sale of its Solar Source assets in June, PSEG is anticipating to receive approximately $2.15 billion<\/span> of after-tax net proceeds. The sale of PSEG Fossil, part of PSEG’s Strategic Alternatives process announced in July 2020<\/span>,<\/a> comprises 13 generation units in New Jersey<\/span>, Connecticut<\/span>, Maryland<\/span> and New York<\/span>. The transactions are subject to the expiration or early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (as amended); approval by the Federal Energy Regulatory Commission and certain state regulatory bodies; and other customary closing conditions. <\/p>\n

In connection with the transaction, beginning in the third quarter of 2021, the assets and liabilities of PSEG Fossil will be classified as assets held for sale. As a result, PSEG expects to record a pre-tax impairment charge of approximately $2<\/span>,150\u00a0million to $2<\/span>,225\u00a0million, employee severance and retention costs up to $25 million<\/span>, debt redemption costs including a make-whole premium of approximately $280 million<\/span> – $340 million<\/span>, and potential impacts on employee pension and other post retirement plans, environmental remediation costs and other items.<\/p>\n

Also today, PSEG is updating its full-year 2021 non-GAAP operating earnings guidance to $3<\/span>.50\u00a0to $3.65<\/span> per share, from $3.40<\/span> to $3.55<\/span> per share, reflecting the cessation of depreciation expense and lower interest expense related to the sale of the PSEG Fossil assets and repayment of PSEG Power’s outstanding debt. All other assumptions related to full-year 2021 guidance are unchanged, including the assumption of normal weather and plant operations, and that the portfolio is expected to continue to contribute to consolidated full-year 2021 financial results through the end of the year. <\/p>\n

\n PSEG Built for the Future<\/b>\n <\/p>\n

PSEG is continuing to build a clean energy infrastructure-focused company, powered by its diverse, dedicated and highly skilled workforce. As the Strategic Alternatives process concludes, PSEG’s Powering Progress<\/a> vision continues to be for a future in which people use less energy, and that energy is cleaner and delivered more reliably than ever. Today’s announcement builds on recent achievements and PSEG’s established and compelling ESG profile:<\/p>\n