PPL Corporation (NYSE: PPL) and Riverstone Holdings LLC have entered into an agreement to merge their merchant power generation businesses into a publicly traded Independent Power Producer (IPP), called Talen Energy Corp.
The new company will own and operate a diverse mix of 15,320-MW of generating capacity, including 5,325-MW from Riverstone at 15 sites in Maryland, New Jersey, Texas and Massachusetts; and 9,995-MW from PPL Generation at 12 sites in Pennsylvania and Montana. The company's portfolio will include 40 percent natural gas, 40 percent coal and 15 percent nuclear. Based on current data, Talen Energy will be the third-largest investor-owned IPP in the nation.
When finalized, PPL's shareowners will own 65 percent of Talen Energy and Riverstone will own 35 percent. In addition, Talen Energy is expected to be listed on the New York Stock Exchange.
"Talen Energy will be a very significant player in the U.S. competitive generation market, bringing together the best of two robust businesses with a very strong presence in the PJM region, as well as nearly 2,000-MW of generating capacity in the fast growing ERCOT market in Texas," said William H. Spence, PPL Chairman, President and Chief Executive Officer.
Upon closing, Paul A. Farr, PPL's current executive vice president and Chief Financial Officer (CFO), will serve as Talen Energy's President, Chief Executive Officer, and director.
The transaction is subject to approval by the Nuclear Regulatory Commission, the Federal Energy Regulatory Commission, the Pennsylvania Public Utility Commission, and other customary closing conditions.
The transaction is expected to close in nine to 12 months.
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