“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.