PPL's Talen spinoff on track with final approval

PPL Corp. of Allentown has received the final regulatory decision it needs to complete the spinoff of Talen Energy Corp.

PPL is partnering with Riverstone Holdings LLC of Texas to create the competitive energy generation business.

The U.S. Department of Justice has closed its review under the Hart-Scott-Rodino Antitrust Improvements Act. This leaves PPL and Riverstone on track to close the transaction on schedule during the second quarter this year.

The transaction, when closed, will form Talen Energy Corp., which will be an independent, publicly traded company listed on the New York Stock Exchange operating the combined competitive power-generation businesses of PPL Energy Supply and RJS Power Holdings. RJS is a subsidiary of Riverstone Holdings.

The companies already received approvals from the Federal Energy Regulatory Commission, Pennsylvania Public Utility Commission and Nuclear Regulatory Commission.

"Now that we have these four approvals in hand, we can proceed to closing," said PPL Spokesman George Lewis. "There are a few procedural matters that need to be taken care of, but they will be wrapped up in the second quarter."

One question that remains is where Talen will be based.

PPL Energy Supply is in PPL Plaza in the heart of the Neighborhood Improvement Zone in downtown Allentown.

While PPL officials have previously said their intent is to keep Talen in the Lehigh Valley, the headquarters could be in a different building or different city.

Bethlehem and Phillipsburg, N.J., have been rumored to be alternate locations for the new company’s headquarters. But, Lewis said no decision has been made.

"We're still evaluating our options," Lewis said. "There's nothing driving the decision to be made now."

In fact, a decision could be a few years away. Lewis noted that PPL has a lease at PPL Plaza that runs through 2018.

Source: LVB.com