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.

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.”