PSEG Power’s wholly-owned subsidiary PSEG Fossil has acquired a Maryland power plant project from Genesis Power LLC.PSEG Fossil acquired the Prince George’s County-based Key’s Energy Center project, an energy-focused private equity fund managed by Ares EIF Management LLC.
The facility, according to PSEG Power, will be renamed PSEG Keys Energy Center. The investment on the property is estimated to be between $825 and $875 million.
Construction on the plant is expected to begin in 2015 and be completed in 2018. During construction, PSEG Power estimates the plant will generate approximately 700 jobs.
PSEG Fossil will oversee the plants construction, it will also operate and maintain it. SNC – Lavalin Constructors Inc. is the engineering, procurement and construction contractor. The plant has two gas-fired turbines and one steam turbine.
“The new plant offers a strong operational and financial fit for PSEG Power’s balanced generation portfolio and will expand our footprint in our core PJM market,” Bill Levis, PSEG Power president and COO, said in a prepared statement. “This is an opportunity to add to the reliability of the energy grid, provide clean energy to Maryland and create new jobs and economic activity locally and within the region.”
“We have extensive experience in developing and running combined-cycle plants,” Richard P. Lopriore, president of PSEG Fossil, said in a prepared statement. “PSEG Power is committed to working with local government and community organizations to provide employment opportunities for as many qualified workers as possible from the local area.”
PSEG Power is a subsidiary of Pubic Service Enterprise Group. Financial terms of the deal were not disclosed.
ALSO ON NJBIZ:
Who are New Jersey’s highest-paid CEOs?
Amy Mansue becomes N.J. Chamber of Commerce chair
Incentives to build: Breaking down the ways the EDA spurs work in urban areas