Public Service Enterprise Group Inc. agreed to sell its indirect interests in the 1,711.2-MW (summer rating) Keystone and 1,711.2-MW (summer rating) Conemaugh coal-fired power plants in Pennsylvania at less than their current book value.
The buyers, Chief Conemaugh II LLC and Chief Keystone II LLC, are ArcLight Capital Partners LLC affiliates. They will assume related liabilities as part of the deal.
At deal closing, Chief Conemaugh II will own a 22.51% interest, or 385 MW, in the Conemaugh plant and Chief Keystone II will own a 22.84% interest, or 391 MW, in the Keystone plant, according to filings with the Federal Energy Regulatory Commission. Through other affiliates, ArcLight Capital Partners currently owns a 44.5% stake in Keystone and 35.11% in Conemaugh, according to S&P Global Market Intelligence data.
PSEG expects to recognize a one-time impairment charge of $375 million to $415 million in the second quarter related to the sale.
The sale is expected to close in the second half of 2019, subject to customary closing conditions and regulatory approvals.