New Jersey-based investor-owned utility Public Service Enterprise Group on July 31 said it is exploring strategic alternatives for PSEG Power’s non-nuclear generating fleet, which includes more than 6,750 megawatts of fossil generation located in New Jersey, Connecticut, New York and Maryland, as well as the 467-MW solar source portfolio located in various states.
While the company is in the preliminary stage of this evaluation, the marketing of a potential transaction in one or a series of steps, anticipated to launch in the fourth quarter, is expected to be completed sometime in 2021.
An exit from the fossil generation business would accelerate PSEG’s transition to a primarily regulated and contracted business, with a zero-carbon generation platform, it said.
Any decision regarding the non-nuclear assets will not impact PSE&G or PSEG Long Island customers, operations or tariffs and would be subject to customary regulatory approvals, PSEG said.
PSEG intends to retain ownership of PSEG Power’s existing nuclear fleet. “The nuclear fleet is necessary for New Jersey to meet its long-term carbon reduction goals, and helps satisfy the state’s capacity obligations for resource adequacy with a cost-effective source of zero-carbon electricity,” it said.
Meanwhile, PSEG said it continues to evaluate potential investments in offshore wind and expects to make a decision regarding the opportunity to invest in Orsted’s Ocean Wind project later this year.
In addition, the company is evaluating participation in upcoming offshore wind solicitations in New Jersey and other Mid-Atlantic states.