PSEG Power Announces Closing on Sale of Gas Fired Facility

Mar 04, 2011, 08:45 ET from Public Service Enterprise Group (PSEG)

NEWARK, N.J., March 4, 2011 /PRNewswire/ -- PSEG Power LLC, a subsidiary of Public Service Enterprise Group Incorporated (NYSE: PEG), today announced that it has closed on the sale of its Guadalupe power plant to MinnTex Power Holdings LLC (MinnTex) and MinnTex GP LLC, entities managed by Wayzata Investment Partners LLC, for approximately $351 million.

Guadalupe is one of two 1,000 MW gas-fired power plants that PSEG Power announced it has agreed to sell earlier in the year.  The sale of the Odessa facility, in West Texas, to High Plains Diversified Energy Corporation (HPDEC) is expected to close in the first half of 2011, as previously announced.  The two transactions have a combined equity value of $687 million.


Readers are cautioned that statements contained in this presentation about our and our subsidiaries' future performance, including future revenues, earnings, strategies, prospects, consequences and all other statements that are not purely historical, are forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995.  When used herein, the words "anticipate," "intend," "estimate," "believe," "expect," "plan," "should," "hypothetical," "potential," "forecast," "project," variations of such words and similar expressions are intended to identify forward-looking statements.  Although we believe that our expectations are based on reasonable assumptions, they are subject to risks and uncertainties and we can give no assurance they will be achieved.  The results or developments projected or predicted in these statements may differ materially from what may actually occur.  Factors which could cause results or events to differ from current expectations include, but are not limited to:

  • Adverse changes in energy industry law, policies and regulation, including market structures, transmission planning and cost allocation rules, including rules regarding who is permitted to build transmission going forward, and reliability standards.
  • Any inability of our transmission and distribution businesses to obtain adequate and timely rate relief and regulatory approvals from federal and state regulators.
  • Changes in federal and state environmental regulations that could increase our costs or limit operations of our generating units.
  • Changes in nuclear regulation and/or developments in the nuclear power industry generally that could limit operations of our nuclear generating units.
  • Actions or activities at one of our nuclear units located on a multi-unit site that might adversely affect our ability to continue to operate that unit or other units located at the same site.
  • Any inability to balance our energy obligations, available supply and trading risks.
  • Any deterioration in our credit quality.
  • Availability of capital and credit at commercially reasonable terms and conditions and our ability to meet cash needs.
  • Any inability to realize anticipated tax benefits or retain tax credits.
  • Changes in the cost of, or interruption in the supply of, fuel and other commodities necessary to the operation of our generating units.
  • Delays in receipt of necessary permits and approvals for our construction and development activities.
  • Delays or unforeseen cost escalations in our construction and development activities.
  • Adverse changes in the demand for or price of the capacity and energy that we sell into wholesale electricity markets.
  • Increase in competition in energy markets in which we compete.
  • Adverse performance of our decommissioning and defined benefit plan trust fund investments and changes in discount rates and funding requirements.
  • Changes in technology and customer usage patterns.

For further information, please refer to our Annual Report on Form 10-K, including Item 1A. Risk Factors, and subsequent reports on Form 10-Q and Form 8-K filed with the Securities and Exchange Commission.  These documents address in further detail our business, industry issues and other factors that could cause actual results to differ materially from those indicated in this presentation.  In addition, any  forward-looking statements included herein represent our estimates only as of today and should not be relied upon as representing our estimates as of any subsequent date.  While we may elect to update forward-looking statements from time to time, we specifically disclaim any obligation to do so, even if our internal estimates change, unless otherwise required by applicable securities laws.

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SOURCE Public Service Enterprise Group (PSEG)