Coal

PSEG on track to shed fossil generation plants, keep nuclear & deploy $16B capital

Public Service Enterprise Group (PSEG) will become a coal-free generating utility when it closes its last remaining coal-fired unit this summer in Connecticut.

PSEG Power will shut down the Bridgeport Harbor Unit 3 in June, the company noted in its 2020 financial earnings report released Friday. The retirement is not a new revelation, but an ongoing part of the New Jersey-based utility company’s desire to focus on its carbon-free, non-fossil generation portfolio.

In August 2020, PSEG announced plans to sell its non-nuclear fleet, including gas, coal and solar assets.

This portfolio includes more than 6.75 GW of fossil-fired generation in New Jersey, Connecticut, New York and Maryland. PSEG also is looking to sell its 467-MW Solar Source assets in several states.

The Friday earnings report indicated those planned sales were on track. PSEG has engaged Goldman Sachs and Wachtell, Lipton, Rosen & Katz as advisors for this strategic evaluation of the assets.

“PSEG is making steady progress on several business priorities and on our strategy to become primarily a regulated utility with contracted generation, comprised of our zero carbon nuclear fleet and recent announcement regarding New Jersey offshore wind through our partnership with Orsted North America,” PSEG CEO Ralph Izzo said.

PSEG plans to spend between $14 billion-$16 billion on capital projects over the next five years. Some ninety percent of that will directed toward the Public Service Electric & Gas utility serving New Jersey.

The PSEG Salem and Hope Creek nuclear generating stations produce nearly half of New Jersey’s electricity and more than 90 percent of the state’s air pollution-free generation.

In addition to Bridgeport Harbor, PSEG’s other fossil power plants include Bergen, Bethlehem, Burlington, Essex, Linden, New Haven, Kearny, Keys Energy Center and Sewaren.