Talen Energy to sell power plants for $1.51 billion

• 8 years ago (2015-10-09)

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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.