PSEG Power Enters Into Agreement to Sell Assets in Texas

PSEG Power, a subsidiary of Public Service Enterprise Group PEG, today announced that it has agreed to the sale of its Texas generating assets. The assets consist of two 1,000 megawatt gas-fired combined cycle generating units that will be sold in two separate transactions. The Odessa facility in west Texas will be sold, pursuant to an asset purchase agreement, to High Plains Diversified Energy Corporation, a municipal utility group based in West Texas. MinnTex Power Holdings LLC, an entity managed by Wayzata Investment Partners LLC, has agreed to acquire 100% of the equity interests in the limited partnership that owns the Guadalupe facility in south Texas. The transactions have a combined equity value of $687 million, or $343 per Kw. There is no debt attached to the assets. "These units are efficient, well-run assets, and there was substantial interest," said Caroline Dorsa, Executive Vice President and Chief Financial Officer of PSEG. Cash received from the sale will be used for general corporate purposes.