PSEG Power has agreed to sell two 1,000MW natural gas-fired combined-cycle power generating units in the US state of Texas for a combined equity value of $687m.

PSEG Power is a subsidiary of Public Service Enterprise Group (PSEG).

MinnTex Power Holdings, managed by Wayzata Investment Partners, will purchase the 1,000MW Guadalupe plant located near San Antonio. PSEG said that the deal is not subject to financing contingencies.

Municipal utility High Plains Diversified Energy (HPDEC) will also acquire PSEG’s 1,000-MW Odessa facility in West Texas. The sale is subject to a sale of municipal bonds.

Reuters quoted PSEG chief financial officer Caroline Dorsa as saying: "These units are efficient, well-run assets, and there was substantial interest." The machines generated 7.3 terrawatt-hours of power in 2010.

The PSEG plants sold for an average of $343 for each kilowatt. The company said that the sales are expected to close during the first half of the year with proceeds to be used for general corporate purposes.

PSEG and its partner, a unit of Teco Energy, built the two combined-cycle gas plants in Texas in the early 2000s. However, PSEG bought out Teco’s 50% stake in the plants in 2004.