MetLife Investment Management (MIM) was the sole lender for approximately $200 million in financing to support the decommissioning of the last two coal-fired plants in New Jersey.
The financing will allow Starwood Energy Group, the majority owner of the two plants, and Atlantic City Electric (ACE), a regulated electric transmission and distribution utility serving approximately 600,000 customers in New Jersey, to move forward with proposals to retire ongoing power-sales agreements between ACE and the coal-fired plants. Both plants are expected to cease generating coal energy at the end of May 2022, nearly 30 months ahead of schedule.
The financing will be used to pay for decommissioning costs, including payments to suppliers and operators, and repayment of existing outstanding debt. It is expected that the agreement by both plants to cease producing coal-fired electricity will lead to redevelopment and transition to other forms of electric generation.
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