PSEG Power buys Maryland natural gas combined-cycle power plant project
The project was bid into and cleared the PJM capacity auction in May 2014
PSEG Power, through its unit PSEG Fossil, has acquired the 755 MW Keys Energy Center project from Genesis Power and an energy-focused private equity fund managed by Ares EIF Management. PSEG Power plans to rename the facility the PSEG Keys Energy Center.
PSEG Power, an independent power producer and unit 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 about 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.
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 Co. (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.
PSEG Power is an independent power producer that generates and sells electricity in the wholesale market, with a fleet totaling more than 13,000 MWs of electric generating capacity. With the addition of the PSEG Keys Energy Center, the combined-cycle gas turbine fleet would grow to represent in excess of 4,000 MWs, or approximately one third of the fleet. PSEG Power is a nationally recognized industry leader on environmental issues. PSEG Fossil is a subsidiary of PSEG Power, and operates the company's portfolio of natural gas, coal and oil-fired electric generating units.
PSEG Power is a unit of Public Service Enterprise Group Incorporated (PSEG) (PEG), a publicly traded diversified energy company with annual revenues of about $11 billion.