New Jersey-based utility and energy company Public Service Enterprise Group (PSEG) announced an agreement to sell PSEG Fossil, its 6,750-megawatt portfolio of fossil-based power generation assets to an energy-focused fund of private equity investor ArcLight Capital for $1.9 billion.

PSEG’s fossil generating portfolio consists of a series of gas plants across several states, including New Jersey, New Jersey, New York, Connecticut, Maryland, and Hawaii.

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According to PSEG Chairman, President, and CEO Ralph Izzo, the transaction forms part of the company’s evolution toward a clean energy infrastructure-focused company helping enable a low-carbon economy.

Izzo said:

“This sale is another in a series of accomplishments that position PSEG for the future – leading the energy sector and serving our customers by enhancing our clean energy and climate-centered profile.”

The sale follows PSEG’s announcement in July 2020 that it would begin exploring strategic options for its non-nuclear generating fleet, as the company aimed to transform to a primarily regulated electric and gas utility, in order to reduce business risk, improve its credit profile, and enhance its ESG position with clean energy investments and zero-carbon power generation. Since that time, PSEG has become 100% coal free, following the recent retirement of its last coal unit at Bridgeport Harbor Station, and the company acquired a 25% equity interest in a 1,100-megawatt Ocean Wind project, New Jersey’s first offshore wind farm.

In June, PSEG announced a significant acceleration in its climate goals, aiming for 100% greenhouse gas-free power generation by 2030, along with net zero emissions for the company’s operations.

Izzo, said:

“This is an important day for PSEG. We are proud of the tremendous work our employees have delivered in making this strategic goal a reality, which will place us squarely on the path to net-zero emissions and our clean energy goals.”