State regulators on Wednesday approved applications related to PPL Corp.’s plans to spin off its competitive energy supply business and combine it with generation assets owned by Riverstone Holdings to form a new company, Talen Energy.
PPL sought approval by the Pennsylvania Public Utility Commission for two reasons, according to a company news release. PPL Electric Utilities, which is regulated by the PUC, sought review and approval of certain changes in property rights and contracts. In addition, PPL Interstate Energy Corp., which operates a Pennsylvania pipeline that transports oil or natural gas to the two power plants in Lower Mount Bethel Township, requested approval of a change in its ownership under the proposed transaction. The PUC has regulatory authority over the IEC pipeline.
PPL Electric Utilities, which provides electric distribution service to approximately 1.4 million customers in Pennsylvania, is not affected by Wednesday’s news.
The spinoff transaction involving PPL and RJS Power Holdings, an affiliate of Riverstone Holdings, was previously approved by the Federal Energy Regulatory Commission when the parties accepted FERC’s market power mitigation requirements in January.
The transaction also requires approval by the Nuclear Regulatory Commission and the U.S. Department of Justice. The transaction is expected to close in the second quarter of 2015.
—Anthony Salamone
