PSEG Enters Agreement to Sell Its Solar Source Portfolio to Affiliate of LS Power

Rhea-AI Summary

PSEG announced an agreement to sell its PSEG Solar Source portfolio to Quattro Solar, an LS Power affiliate. This 467-megawatt-dc portfolio comprises 25 solar facilities across multiple states. The sale is part of PSEG's Strategic Alternatives process to streamline operations, enhancing its focus on regulated utility services. The transaction, expected to close in Q2 or Q3 of 2021, values the solar assets at approximately $500 million. PSEG aims to invest in clean energy projects, supporting New Jersey's carbon reduction goals.

Positive

• PSEG is divesting non-core assets, focusing on regulated utility operations and clean energy projects.
• The sale aligns with PSEG's goal of enhancing its portfolio with low-carbon energy investments.
• PSEG has committed nearly $2 billion to Clean Energy Future projects, supporting state energy goals.

Negative

• None.

NEWARK, N.J., May 5, 2021 /PRNewswire/ -- Public Service Enterprise Group Inc. (PSEG) today announced that it has entered into an agreement to sell its PSEG Solar Source LLC portfolio to Quattro Solar, LLC, an affiliate of LS Power. The sale includes the 467-megawatt-dc Solar Source portfolio of 25 solar facilities located in various states and related assets and liabilities. The sale of this non-core generation portfolio is part of PSEG's Strategic Alternatives process to explore options for PSEG Power's non-nuclear generating fleet which, in addition to Solar Source, includes more than 6,750 megawatts of fossil generation.

"This sale marks a key milestone in our Strategic Alternatives process as we continue our transformation into a primarily regulated utility. We also intend to continue our efforts to preserve our existing carbon-free nuclear fleet and to seek regional growth opportunities in offshore wind projects that fit with PSEG's Powering Progress strategy," PSEG Chairman, President and CEO Ralph Izzo said. "PSEG is committed to clean energy and the pursuit of a sustainable business model."

The Strategic Alternatives process is an important part of PSEG's transformation, strengthening the focus on PSE&G, which already comprises approximately 80% of PSEG's Operating Earnings mix. The utility has allocated the majority of its capital spend to meet the needs and expectations for clean energy investments, including nearly $2 billion of Clean Energy Future projects recently approved to help New Jersey achieve the goals of the 2018 Clean Energy Act. Further, PSEG continues to evaluate potential additional investments in offshore wind and is pleased to have obtained an extension of support for its New Jersey nuclear fleet, which is necessary for the state to meet its long-term carbon reduction goals. These activities reflect PSEG's commitment to clean energy and contribute to the company's longstanding ESG leadership profile.

The PSEG Solar Source transaction is expected to close in the second or third quarter of 2021, subject to customary regulatory and other closing conditions. As a result of today's announcement, the assets and liabilities of Solar Source will be classified as Assets Held for Sale beginning in the second quarter of 2021. The net carrying value of the assets and liabilities to be sold is approximately $500 million as of March 31, 2021.

Goldman Sachs & Co. is serving as financial adviser, and Wachtell, Lipton, Rosen & Katz is serving as legal counsel, to PSEG in connection with the transaction.

About PSEG
Public Service Enterprise Group Inc. (PSEG) (NYSE: PEG) is a publicly traded diversified energy company with approximately 13,000 employees. Headquartered in Newark, N.J., PSEG's principal operating subsidiaries are: Public Service Electric and Gas Co. (PSE&G), PSEG Power and PSEG Long Island. PSEG is a Fortune 500 company included in the S&P 500 Index and has been named to the Dow Jones Sustainability Index for North America for 13 consecutive years (https://corporate.pseg.com).

Forward-Looking Statement
The statements contained in this press release that are not purely historical are "forward-looking statements" within the meaning of The Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from those anticipated. Such statements are based on management's beliefs as well as assumptions made by and information currently available to management. Factors that may cause actual results to differ materially from those contemplated in any forward-looking statements made by us herein are discussed in our Annual Report on Form 10-K and subsequent reports on Form 10-Q and Form 8-K filed with the Securities and Exchange Commission (SEC), and available on our website: https://investor.pseg.com. All of the forward-looking statements made in this press release are qualified by these cautionary statements and we cannot assure you that the results or developments anticipated by management will be realized or even if realized, will have the expected consequences to, or effects on, us or our business, prospects, financial condition, results of operations or cash flows. Readers are cautioned not to place undue reliance on these forward-looking statements in making any investment decision. Forward-looking statements made in this press release apply only as of the date hereof. While we may elect to update forward-looking statements from time to time, we specifically disclaim any obligation to do so, even in light of new information or future events, unless otherwise required by applicable securities laws. 

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From time to time, PSEG, PSE&G and PSEG Power release important information via postings on their corporate Investor Relations website at https://investor.pseg.com. Investors and other interested parties are encouraged to visit the Investor Relations website to review new postings. You can sign up for automatic email alerts regarding new postings at the bottom of the webpage at https://investor.pseg.com.

CONTACTS:
Investor Relations	Media Relations
Carlotta Chan	Marijke Shugrue
973-430-6565	908-531-4253
Carlotta.Chan@pseg.com	Marijke.Shugrue@pseg.com

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SOURCE PSEG

FAQ

What is the significance of PSEG's sale of its Solar Source portfolio?

The sale indicates PSEG's strategic shift towards regulated utility services, enhancing focus on core operations.

How much is PSEG's Solar Source portfolio being sold for?

The net carrying value of the solar assets is approximately $500 million.

When is the expected closing date for the PSEG Solar Source transaction?

The transaction is expected to close in the second or third quarter of 2021.

How does the Solar Source sale impact PSEG's financial strategy?

The sale allows PSEG to prioritize investments in clean energy and a regulated utility model.

What are PSEG's future energy plans after the sale?

PSEG plans to invest in its carbon-free nuclear fleet and seek opportunities in offshore wind projects.