PSEG Power LLC - Costs Associated with Exit Or Disposal Activities

Source Press Release
Company ArcLight Capital Partners, LLCPublic Service Enterprise Group 
Tags Asset Deals, Deals, Renewable Energy, Power
Date June 21, 2019

Item 2.05 Costs Associated with Exit or Disposal Activities

On June 20, 2019, PSEG Fossil LLC (“Fossil”) and PSEG Power Fuels LLC (“Power Fuels” and together with Fossil, the “Sellers”), direct wholly owned subsidiaries of PSEG Power LLC (“Power”), entered into a Purchase Agreement (the “Purchase Agreement”) with Chief Conemaugh II, LLC and Chief Keystone II, LLC (collectively, the “Buyers”) relating to the sale by the Sellers of their ownership interests in the Keystone and Conemaugh generation facilities and related assets, including the assumption by the Buyers of related liabilities. The transaction is targeted to close during the second half of 2019, subject to customary closing conditions and regulatory approvals.

As a result of the transaction, the Seller’s ownership interests in the Keystone and Conemaugh generation facilities and related assets will no longer be classified as held for use in accordance with accounting principles generally accepted in the United States. In the second quarter of 2019, Public Service Enterprise Group Incorporated (“PSEG”) and Power expect to recognize a one-time pre-tax impairment charge of $375 million to $415 million as the anticipated sale price is less than the current book value.

To the extent required by applicable rules, PSEG and Power will file one or more amendments to this Current Report on Form 8-K as details of any additional costs and charges are finalized.

Certain of the matters discussed in this Current Report on Form 8-K that are not purely historical constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from those anticipated. Such statements are based on management’s beliefs as well as assumptions made by and information currently available to management. Factors that may cause actual results to differ materially from those contemplated in any forwardlooking statements made by us herein are discussed in filings we make with the United States Securities and Exchange Commission, including our Annual Report on Form 10-K and subsequent reports on Form 10-Q and Form 8-K.

Item 2.06 Material Impairments

The information contained in Item 2.05 is incorporated into this Item 2.06 by reference.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. The e signature of the undersigned company shall be deemed to relate only to matters having reference to such company and any subsidiaries thereof.

PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED

(Registrant)

By: /s/ Rose M. Chernick

ROSE M. CHERNICK

Vice President and Controller

(Principal Accounting Officer)

Date: June 21, 2019

Source: EvaluateEnergy® ©2019 EvaluateEnergy Ltd