PSEG Power to sell interest in Keystone and Conemaugh coal plants in US

25 June 2019 (Last Updated June 25th, 2019 16:45)

US-based energy company PSEG Power has entered into an agreement to divest its 776MW interest in the Keystone and Conemaugh stations in western Pennsylvania.

US-based energy company PSEG Power has entered into an agreement to divest its interest in the Keystone and Conemaugh stations in western Pennsylvania.

The deal, which also includes related assets and the assumption of related liabilities, is being sold to an unnamed company for an undisclosed fee. The deal is expected to close during the second half of 2019 and is dependent on customary closing conditions and receipt of regulatory approvals.

The Keystone plant is located in Shelocta, and Conemaugh in New Florence, Pennsylvania. PSEG’s share in Conemaugh and Keystone generation facilities is 385MW and 391MW respectively. The ownership interest sale of the two coal power plants is part of PSEG Power’s long-term strategy.

As part of its strategy, the company will sell non-core assets and move away from coal-fired facilities. With this sale, the energy firm is nearing the completion of its coal exit strategy.

PSEG Power’s remaining coal generating assets are either sold or scheduled for early retirement.

The company announced the early retirement of the 620MW Hudson 2 plant in 2016, as well as the 632MW Mercer coal unit in 2017. Additionally, the company’s 383MW coal unit in Bridgeport, Connecticut, will be retired in 2021.

By the end of 2021 the company will have retired or sold 2.4GW of coal-fired energy generation.