PPL completes sale of 11 hydroelectric facilities

Source:PPL Corp.

Sale includes 11 hydroelectric power plants with a total generating capacity of more than 630 megawatts, as well as the Hebgen Lake reservoir (Image: Kerr Dam on the Flathead River in Montana.)

PPL Montana (NYSE: PPL) announced this week that it has completed the sale of its hydroelectric facilities to NorthWestern Energy (NYSE: NWE).

The sale includes 11 hydroelectric power plants with a total generating capacity of more than 630 megawatts, as well as the Hebgen Lake reservoir. PPL Corporation's net proceeds of the sale are approximately $890 million.

Included in the sale are the Thompson Falls Dam on the Clark Fork River; Kerr Dam on the Flathead River; Madison Dam on the Madison River; Mystic Lake Dam on West Rosebud Creek; and Hauser, Holter, Black Eagle, Rainbow, Cochrane, Ryan and Morony dams on the Missouri River. The sale does not include PPL Montana's interest in the Colstrip and J.E. Corette power plants, or the Butte-based energy marketing and trading operations of PPL Montana's affiliate, PPL EnergyPlus, LLC.

Already the largest provider of renewable energy in Montana and responsible for the majority of energy efficiency investments in the state, more than half of NorthWestern Energy's owned and contracted electric supply in Montana now comes from wind and water.

"Our electricity supply is now much greener, we are nearly 40% better than the EPA's proposed target for the entire state of Montana," said John Hines, Vice President – Energy Supply. "With this acquisition, we believe our customers are well positioned given the uncertainty of what's to come from potentially tougher regulations."

NorthWestern previously announced the issuance of equity and debt securities to finance the acquisition from PPL Montana. Also as previously announced, NorthWestern expects that the 194‑megawatt Kerr project acquired as part of this transaction will be transferred to the Confederated Salish and Kootenai Tribes of the Flathead Reservation in September 2015, in accordance with the Kerr project's federal license.

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