PSEG Power, through its wholly-owned subsidiary PSEG Fossil, has acquired the 755-MW Keys Energy Center project from Genesis Power, LLC and an energy-focused private equity fund managed by Ares EIF Management, LLC. PSEG Power plans to rename the facility the PSEG Keys Energy Center (KEC).
Public Service Enterprise Group (PEG) is a publicly traded diversified energy company with annual revenues of approximately $11 billion.
PSEG Power – an independent power producer and subsidiary of PSEG – expects to begin construction of the natural gas-fired, combined-cycle plant in 2015. The plant, which represents an investment of $825 - $875 million, is targeted to be completed and supplying needed capacity and energy to the state of Maryland and region in 2018. The project was bid into and cleared the PJM capacity auction in May 2014.
PSEG Fossil will oversee construction, operate and maintain the combined-cycle plant. SNC - Lavalin Constructors Inc. is the designated engineering, procurement and construction contractor. The combined-cycle plant will use state-of-the-art generating technology, including a full complement of emissions controls and run on clean, efficient natural gas. The plant will generate approximately 700 jobs during the two-year construction phase. More than 20 permanent jobs will be created to run the new plant once it becomes operational.
"The new plant offers a strong operational and financial fit for PSEG Power's balanced generation portfolio and will expand our footprint in our core PJM market," said Bill Levis, PSEG Power president and COO. "This is an opportunity to add to the reliability of the energy grid, provide clean energy to Maryland and create new jobs and economic activity locally and within the region."
"We have extensive experience in developing and running combined-cycle plants," said Richard P. Lopriore, president of PSEG Fossil. "PSEG Power is committed to working with local government and community organizations to provide employment opportunities for as many qualified workers as possible from the local area."
Located in Prince George's County, Maryland, the PSEG Keys Energy Center will feature two gas-fired turbines and one steam turbine. The project is located north of North Keys Road and about 1.25 miles east of Brandywine, Maryland.
The plant will connect to the Potomac Electric Power Company (PEPCO)/PJM 500 kV transmission line adjacent to the property; no new transmission lines are required. Fuel to run the plant is also readily available; a major interstate natural gas pipeline is within close proximity of the site.