Pennsylvania, United States PPL Corporation announced it has reached agreement to sell interests in certain non-core generating stations, including shares in one hydropower asset, to LS Power Equity Advisors, an affiliate of LS Power.
The transaction will include the 244-MW PPL Wallingford Energy plant, a natural gas-fired facility located in Wallingford, Conn.; the 585-MW PPL University Park plant, a natural gas-fired facility located in University Park, Ill.; and PPL’s one-third share in Safe Harbor Water Power Corporation, owner of the 421-MW Safe Harbor Hydroelectric Station on the Susquehanna River in Conestoga, Pa.
The transaction, for approximately $381 million in cash, is expected to close in the fourth quarter of 2010, pending receipt of necessary regulatory approvals and third- party consents. The transaction is expected to result in an after-tax special item charge against PPL’s third-quarter earnings of $65 million to $80 million.
Following the closing of the sale, PPL will continue to operate a diverse mix of competitive-market generating plants in Pennsylvania and Montana, with a combined capacity of nearly 11,000 MW.
Credit Suisse and BofA Merrill Lynch served as PPL’s financial advisors in this transaction.