US-based Talen Energy Corp. has signed an agreement to sell two hydroelectric power plants with 299 megawatts of combined capacity to Brookfield Renewable Energy Partners for US$860 million.
The Holtwood and Lake Wallenpaupack hydroelectric projects are part of a requirement to divest certain assets in specific regions of the PJM Interconnection, which include portions of eastern Pennsylvania, New Jersey and Maryland, to comply with a December 2014 Federal Energy Regulatory Commission order approving the transactions that formed Talen Energy.
“We have made substantial improvements during our ownership of Ironwood, and appreciate the efforts of the dedicated employees who have operated and maintained the plant very well. We are pleased that we will be conveying ownership to TransCanada, a large and diversified energy company with extensive plant operating experience,” said Paul Farr, Talen Energy President and Chief Executive Officer.
“Brookfield Renewable Energy Partners is an experienced owner and operator of hydroelectric projects and has extensive operations across North America, including the Safe Harbor hydroelectric project on the Susquehanna River just upstream from Holtwood. We recognize and appreciate the dedicated employees who operate, maintain and support the hydro plants. They have done an outstanding job, and their skill and experience will prove invaluable to Brookfield in continuing the legacy of operating excellence and citizenship at both facilities.”
The deal is expected to close in the first quarter of 2016, following the receipt of necessary regulatory approvals and other customary closing conditions. RBC Capital Markets served as financial advisor to Talen Energy and Simpson Thacher & Bartlett LLP was transaction counsel.