The transaction is subject to customary closing conditions and regulatory approvals, and PSEG Power intends to close the transaction in the second half of 2019
Image: The Conemaugh Generating Station is a 1.87GW baseload coal-powered plant. Photo: Courtesy of Dj245/Wikipedia.
The Public Service Enterprise Group (PSEG)’s PSEG Power has announced its plans to sell its stakes in the Keystone and Conemaugh generation facilities in western Pennsylvania and related assets, totalling 776MW, including the assumption of related liabilities.
The Keystone Generating Station is a 1.71GW coal power plant, located on an approximately 1,500 acres site in Plumcreek Township, southeastern Armstrong County, near Crooked Creek, Pennsylvania, US.
The Keystone plant, constructed in 1967 and expanded in 1968, has witnessed a number of improvements to reduce the environmental pollution levels, especially to cut down acidic emissions of nitrogen and sulphur oxides.
The Conemaugh Generating Station is a 1.87GW baseload coal-powered plant located on a site covering 1,750 acres, across the Conemaugh River from New Florence in Western Pennsylvania.
Partially owned by PSEG Power, the facility is equipped with two steam turbines, which started commercial operation in 1970 and 1971, and two cooling towers.
PSEG Power said that the transaction is subject to customary closing conditions and regulatory approvals, and it intends to close the transaction in the second half of 2019.
The sale eliminates a non-core asset of PSEG Power
The divestment of interests would eliminate non-core asset of PSEG Power and helps it to complete its coal exit strategy, with the remainder of the coal generating assets either sold or scheduled for early retirement.
The long-term strategy of PSEG Power includes eliminating non-core assets and moving away from coal-fired generation and the agreement to sell Keystone and Conemaugh marks the latest step in its strategy.
Previously, PSEG Power announced the retirements of its Hudson and Mercer coal-fired generating stations comprising 1,252MW in October 2016, in addition to the early retirement of its 383MW coal unit in Bridgeport, Connecticut, in 2021.
The company said in a statement: “Over the past few years and leading up to 2021, PSEG will have retired or exited through sales over 2,400 MW of coal-fired generation.”