Allentown, Pa., September 9, 2010 – PPL Corp. has reached agreement to sell interests in certain non-core generating stations 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 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 Corp., owner of the 421-MW Safe Harbor Hydroelectric Station on the Susquehanna River in Conestoga, Pa.
The transaction, for about $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.
PPL Corp., headquartered in Allentown, Pa., owns or controls generating capacity in the U.S., sells energy in key U.S. markets and delivers electricity to about 4 million customers in Pennsylvania and the United Kingdom.