PSEG Power, a subsidiary of Public Service Enterprise Group (PSEG), has agreed to sell two 1,000MW gas-fired combined-cycle power generating units in Texas, US.
The Odessa facility in west Texas will be sold, pursuant to an asset purchase agreement, to High Plains Diversified Energy (HPDEC), a Texas-based municipal utility group.
MinnTex Power, an entity managed by Wayzata Investment Partners, has agreed to acquire the Guadalupe facility in south Texas.
The transactions have a combined equity value of $687m, or $343 per kW.
The sales are expected to close during the first half of 2011 and are subject to customary regulatory approvals.
As per the terms of the definitive sales agreement for the Odessa facility, HPDEC will pursue financing to complete the transaction through the sale of municipal bonds.
The sale of the Guadalupe facility to MinnTex is not subject to any financing contingencies.