Talen Energy to sell power plants for $1.51 billion

• 8 years ago (2015-10-09)

Africa 306 Asia 860 Australasia 51 Biomass 8 Climate change 20 Coal 282 Cogeneration 1 Concentrating solar 5 Cyber security 8 Decarbonisation 1 Decentralised energy 5 Demand side management 2 Demand side response 2 Digitalisation 10 Distributed energy 10 Distribution 113 Electric vehicles EVs 4 Emissions 61 Energy management 1 Equipment 2 Europe 1069 Gas 379 Gas engine plant 62 Gas fuel 2 Horizon 2 Hydroelectric 17 Hydrogen 56 Hydropower 116 Latin America 77 Maintenance 3 Marine 1 Metering 2 microgrid 5 Middle East 317 North America 1004 Nuclear 643 Offshore wind 119 Oil 18 Operations 4 Policy 8 Regulations 3 Renewables 758 smart grid 2 Solar 250 Storage 41 substation 8 Tepco 2 Tidal 2 Toshiba 4 Transmission 181 US Senate Washington 4 Wind 241

---

The company has been forced to divest assets by Federal Energy Regulatory Commission (FERC) regulations. The company will see a natural gas-fired power plant to TransCanada Corporation for $654 million and two hydroelectric projects to Brookfield Renewable Energy Partners LP for $860 million.

George Lewis, Talen’s corporate communications director, said: “We were ordered to divest between 1300-1400 MW of generation in PJM … [and] this is 1000 MW of that’. Lewis also said that additional divestments are set to be announced by the end of the current quarter.

The application of FERC regulations stems from Talen’s formation, in June 2014, after Pennsylvania power company PPL Corporation’s merchant generation business merged with the generation assets of Riverstone Holding LLC, a private equity firm.

The three power plants have a combined generating capacity of 996 MW, and an expected net income for 2016 of $56 million.

The transactions are expected to close in the first quarter of 2016.