Newark, New Jersey-headquartered Public Service Enterprise Group (PSEG) has confirmed that it is "exploring strategic alternatives" for its non-nuclear generating fleet, including offshore wind
The company would like to replace more than 6.75 GW of fossil generation in New Jersey, Connecticut, New York and Maryland.
PSEG chairman, president and chief executive Ralph Izzo said, “Our intent is to accelerate the transformation of PSEG into a primarily regulated electric and gas utility.
“A separation of the non-nuclear assets would reduce overall business risk and earnings volatility, improve our credit profile, and enhance an already compelling ESG position driven by pending clean energy investments, methane reduction, and zero-carbon generation.”
PSEG continues to evaluate potential investments in offshore wind and expects to make a decision regarding the opportunity to invest in Ørsted’s Ocean Wind project later in 2020.
In addition, the company is evaluating participation in upcoming offshore wind solicitations in New Jersey and other mid-Atlantic states.
PSEG intends to retain ownership of PSEG Power’s existing nuclear fleet, which it said is necessary for New Jersey to meet its long-term carbon reduction goals and helps satisfy the state’s capacity obligations for resource adequacy with a cost-effective source of zero-carbon electricity.
In July 2020, the New Jersey Board of Public Utilities issued a draft solicitation guidance document for its second offshore wind solicitation.
Its first offshore wind solicitation was for 1.1 GW, but the second will move the state closer to meeting Governor Phil Murphy’s goal of 7.5 GW of offshore wind by 2035 by considering a larger range, of 1.2 to 2.4 GW.
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