NorthWestern Energy (NYSE: NEW) submitted a formal request to the Montana Public Service Commission to purchase 11 hydroelectric generating facilities and related assets from PPL Montana, a subsidiary of PPL Corp. (NYSE: PPL).
As part of the agreement, PPL Montana will receive $900 million in cash, subject to certain adjustments. The filing outlines the various long-term customer benefits and confirms commitments to proceed with the transfer of Kerr Dam to the Confederated Salish and Kootenai Tribes.
If approved, the addition of the 633 MW of hydroelectric generation will increase residential electric bills by 4.22 percent. The deal is subject to regulatory approvals, and is scheduled for closing in the third quarter of 2014.
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