Wisconsin Energy Corp. has received final approval to sell two Connecticut power plants to a New Jersey utility, although it has yet to close the sale.
The Federal Energy Regulatory Commission issued the approval Monday, clearing the way for Public Service Enterprise Group, owner of New Jersey’s largest utility, to buy the two plants for $220 million.
Located in Bridgeport and New Haven, Conn., the plants have a combined generating capacity of about 1,000 megawatts.
The deal is part of Wisconsin Energy’s plan to sell off selected businesses to raise its stock price, boost earnings and pay off debts.
Wisconsin Energy spokeswoman Megan McCarthy said Tuesday she expects the deal will be closed by the end of the fourth quarter.
Wisconsin Energy is making the sale through its Wisvest subsidiary. Public Service’s generating unit, PSEG Power, expects to finance the plants with cash, debt and equity.
Wisconsin Energy bought the plants in 1999 for $272 million. But the economic downturn and trends in the utility industry caused a decline in the values of power plants in recent months.