ArcLight Closes Acquisition of 4.8 GW Power Generation Portfolio from PSEG
BOSTON, Feb. 18, 2022 /PRNewswire/ — On February 18th, Parkway Generation, LLC, a wholly owned subsidiary of ArcLight Energy Partners Fund VII, L.P., closed the previously announced acquisition of a 4.8 GW power generating portfolio from Public Service Enterprise Group (“PSEG”) for $1.37 billion.
Parkway Generation consists of nine modern and highly efficient natural gas-fired power generation facilities that provide critical capacity, energy and ancillary services resources to New Jersey and Maryland in close proximity to large, densely-populated load centers. The portfolio represents a highly competitive fleet and one of the nation’s largest natural gas-fired power portfolios.
The efficient, fast-ramping output provided by the Parkway Generation portfolio will allow the integration of intermittent renewable resources in the Maryland and New Jersey electricity markets over the coming decades. Importantly, the portfolio is well-positioned to support the energy transition via battery storage projects and by providing critical interconnection sites for offshore wind projects under development. Parkway Generation’s acquisition was financed with $1.14 billion of senior secured credit facilities in the institutional term loan market.
Commenting on the transaction, Dan Revers, Managing Partner and Founder of ArcLight Capital Partners, LLC (“ArcLight”) said, “Parkway Generation complements the ongoing energy transition by providing critical infrastructure to a densely populated load center, while providing reliable and fast-ramping power to the PJM market, and will serve as a key platform for the development of additional renewable energy resources. ArcLight remains highly focused on investments supporting the ongoing energy transition, including through its substantial experience in renewable energy, battery storage, and critical natural gas infrastructure.”
Following this acquisition, ArcLight and its affiliates will collectively manage ownership interests in power generation representing over 25 GW of electric capacity.
Latham & Watkins LLP served as primary legal counsel to ArcLight. Morgan Stanley served as exclusive financial advisor.
Founded in 2001, ArcLight is one of North America’s leading energy infrastructure firms, helping pioneer an asset-based approach to investing in the energy sector. ArcLight has invested over $25 billion in 117 transactions since inception. Based in Boston, the firm’s investment team employs a hands-on value creation strategy utilizing its in-house technical, operational, and commercial specialists, as well as the firm’s approximately 1,500-person asset management affiliate. ArcLight has a deep track record of investing in businesses and assets that contribute to a decarbonized future, closing its first renewable power deal in 2003 with over $4 billion invested in renewable power transactions since then. ArcLight believes its two decades of power and renewables experience, along with its deep track record across the energy value chain, provide differentiated insights that will help the firm and its partners contribute to a net zero future. More information about ArcLight and a complete list of ArcLight’s portfolio companies can be found at https://www.arclight.com/.
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SOURCE ArcLight Capital Partners
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