PSEG Power has agreed to sell its 776-megawatt (MW) interest in the Keystone and Conemaugh generation facilities in western Pennsylvania and related assets, including the assumption of related liabilities.

Specifically, on June 20, 2019, PSEG Fossil LLC (“Fossil”) and PSEG Power Fuels LLC (“Power Fuels” and together with Fossil, the “Sellers”), direct wholly owned subsidiaries of PSEG Power LLC (“Power”), entered into a Purchase Agreement (the “Purchase Agreement”) with Chief Conemaugh II, LLC and Chief Keystone II, LLC (collectively, the “Buyers”) relating to the sale by the Sellers of their ownership interests in the Keystone and Conemaugh generation facilities and related assets, including the assumption by the Buyers of related liabilities. The transaction is targeted to close during the second half of 2019, subject to customary closing conditions and regulatory approvals.

In the second quarter of 2019, Public Service Enterprise Group Incorporated (“PSEG”) and Power expect to recognize a one-time pre-tax impairment charge of $375 million to $415 million as the anticipated sale price is less than the current book value.

The transaction is expected to close during the second half of 2019, subject to customary closing conditions and regulatory approvals.

"With this announcement, PSEG Power eliminates a non-core asset and is one step closer to completing its coal exit strategy, with the remainder of the company's coal generating assets either sold or scheduled for early retirement," PSEG Power said

"The agreement to sell Keystone and Conemaugh is the latest step in PSEG Power's long-term strategy, which includes eliminating non-core assets and moving away from coal-fired generation. In October 2016, PSEG Power announced the retirements of its Hudson and Mercer coal-fired generating stations comprising 1,252 MW. PSEG Power has also announced the early retirement of its 383 MW coal unit in Bridgeport, Connecticut, in 2021. 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," PSEG Power said

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