Ares About Ares News Ares EIF Sells Keys Energy Center To PSEG Power

Ares EIF Sells Keys Energy Center To PSEG Power

Fully-Approved 755-MW Site to Provide Clean Energy to Maryland and Other Mid-Atlantic States

Jun302015

Los Angeles—June 30, 2015 – Ares Management, L.P. (NYSE:ARES) announced today that a fund managed by the Ares EIF Group and developer Genesis Power, LLC has sold the 755-MW Keys Energy Center project located in Prince George’s County, Maryland to PSEG Power, a subsidiary of PSEG (NYSE:PSEG), an independent power producer that generates and sells electricity in the wholesale market.  Terms of the transaction were not announced.

 

The Keys Energy Center project has a complete set of approved construction plans and is fully-permitted.  PSEG Power anticipates beginning construction of the approximately $825 - $875 million natural gas-fired, combined-cycle plant in the fall of 2015, with targeted completion in 2018. PSEG Power plans to rename the facility the PSEG Keys Energy Center. The facility will help to meet the growing need for capacity and clean energy in Maryland and other nearby states.

 

“The Keys project demonstrates the strength of our platform, beginning with identifying sites in attractive markets all the way through permitting a state-of-the-art generating facility that, when completed, will meet the growing need for efficient, clean natural gas-fired power generation,” said Mark Voccola, Partner of Ares EIF Group.  “We have a long history of investing in the development and construction of power generation assets, and in this case, we elected to monetize our investment in advance of construction and turn over the project to one of the finest and largest power plant owners in the U.S. in PSEG.  They bought a terrific asset.” 

 

“We are pleased that after more than four years of development that Keys Energy Center is going into construction as part of the PSEG fleet of plants,” said Bob Place, President of Genesis Power.  “Ares EIF has been a great development partner and we have appreciated their involvement and hard work to reach this stage.”

 

“This was an opportunity to acquire a ready-to-build asset that will provide clean energy to Maryland and nearby states as well as create new jobs and economic activity locally and within the region. It fits well with our balanced generation portfolio and will expand our footprint in our core PJM market,” said Bill Levis, PSEG Power president and COO.

 

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.  It will be connected 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, and a major interstate natural gas pipeline is within close proximity of the site.

 

About Ares Management, L.P.


Ares Management, L.P. (NYSE: ARES) is a leading global alternative asset manager with approximately $87 billion of assets under management and more than 15 offices in the United States, Europe and Asia as of March 31, 2015. Since its inception in 1997, Ares has adhered to a disciplined investment philosophy that focuses on delivering strong risk-adjusted investment returns throughout market cycles. Ares believes each of its four distinct but complementary investment groups in Tradable Credit, Direct Lending, Private Equity and Real Estate is a market leader based on assets under management and investment performance. Ares was built upon the fundamental principle that each group benefits from being part of the greater whole.

 

The Ares EIF Group, formerly known as Energy Investors Funds (EIF), was acquired by Ares in January 2015. Founded in 1987, Ares EIF has a 28-year track record and is one of the first managers focused on the independent power and electric utility industry.  Ares EIF’s investment strategy is to create geographically and technologically diversified portfolios of energy infrastructure investments via acquisitions as well as development and construction across the power generation, transmission and midstream sectors.

 

About PSEG Power


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 subsidiary of Public Service Enterprise Group Incorporated (PSEG) (NYSE:PEG), a publicly traded diversified energy company with annual revenues of approximately $11 billion.

 

Visit PSEG at:
www.pseg.com
PSEG on Facebook
PSEG on Twitter
PSEG on LinkedIn

 

About Genesis Power


Genesis Power, LLC develops, constructs, owns and operates independent power generating facilities.  Genesis Power was formed in 1989 and has been involved in the successful development of over 3,550 MW of independent power generating facilities.  The company has teamed with over 15 different utility companies, independent power companies, equipment suppliers and private equity firms in constructing over $4.2billion in generation assets.  Besides the Keys Energy Center, these projects include the 543 MW combined-cycle plant in Westbrook, Maine, the conversion of a 50 MW coal-fired unit into a biomass unit at the Schiller Station in Portsmouth, New Hampshire and the construction of the 695 MW Longview advanced supercritical coal-fired power plant outside Morgantown, West Virginia. In addition to the Keys Energy Center project, Genesis has several other facilities in development in the PJM footprint.

 

CONTACTS:


Ares Management:
Investor Relations
Carl Drake
800-340-6597
[email protected]

 

Media:
Bill Mendel
212-397-1030
[email protected]

 

Genesis Power:
Valerie Zona
[email protected]