PSEG Power acquires natural gas combined-cycle plant in Maryland

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.

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 and unit of PSEG. It is likely 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 include a full complement of emissions controls and run on clean, efficient natural gas and is likely to generate about 700 jobs during the two-year construction phase.