FERC Approves Talen Energy's Modified Mitigation Proposal

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Dec 07, 2015, 04:30 ET

Talen Energy debuts as one of largest U.S. independent power producers

ALLENTOWN, Pa., Dec. 7, 2015 /PRNewswire/ -- The Federal Energy Regulatory Commission has approved a request by Talen Energy (NYSE: TLN) to modify required mitigation measures intended to address potential competition issues in connection with the creation of the company.

FERC ruled that Talen Energy's alternative option is in the public interest and addresses competition concerns in a manner that is comparable to the company's two previously approved proposals. As a result of the decision, Talen Energy would satisfy FERC's requirement upon completion of previously announced power plant sales that are expected to close in the first quarter of 2016.

Background

In a December 2014 ruling that approved the transaction to establish Talen Energy, FERC ordered the company to sell some power plants in a sub-market of the PJM Interconnection that includes eastern Pennsylvania, New Jersey and Maryland by divesting some generation.

FERC accepted two divestiture options initially proposed by Talen Energy, each representing 1,300 to 1,400 megawatts. In September, Talen Energy asked FERC to consider a third option that has a different mix of assets but the same amount of generating capacity because of an issue that could affect the ability to sell one of the power plants identified in both of the first two options.

The Nov. 30 FERC order means that after the announced sales of the Ironwood, Holtwood, Lake Wallenpaupack and C.P. Crane plants are completed, Talen Energy would not be required to sell other plants, mainly natural gas-fired plants in New Jersey, to meet the mitigation requirement.

About Talen Energy

Talen Energy is one of the largest competitive energy and power generation companies in the United States. Our diverse generating fleet operates in well-developed, structured power markets. To learn more about us, visit www.talenenergy.com.