PSEG Power LLC, a unit of Public Service Enterprise Group (NYSE: PEG) agreed to sell its 1,000 MW gas-fired Odessa generating facility in West Texas to Odessa Power LLC, a unit of Energy Capital Partners II LP. The purchase price is $335 million and no debt is attached to the asset.
In early June, PSEG Power ended a $335 million purchase and sale agreement with High Plains Diversified Energy Corp. for the 1,000 MW facility. That earlier deal hinged on High Plains completing the transaction through the sale of municipal bonds.
The sale Odessa Power LLC is expected to close during the third quarter of 2011 subject to regulatory approvals. Unlike the High Plains agreement, this deal is not subject to financing contingencies. The sale will mark PSEG's exit from the Texas power generation market.
Goldman Sachs acted as exclusive financial advisor to PSEG Power in connection with the transaction.
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