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8-K - FORM 8-K - PPL Corp | form8k.htm |
Exhibit
99.1
Contact:
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For
news media – George E. Biechler, 610-774-5997
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For
financial analysts – Joseph P. Bergstein, 610-774-5609
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Two
N. Ninth St.
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Allentown,
PA 18101
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ALLENTOWN, Pa. (Nov. 2, 2009) -- PPL Corporation (NYSE: PPL) announced Monday (11/2)
that its PPL Maine subsidiary has completed the sale of the majority of PPL
Maine’s hydroelectric generation business to Black Bear Hydro Partners, LLC, an
affiliate of ArcLight Capital Partners, LLC, for approximately $81
million.
The sale
to the ArcLight affiliate involves five hydroelectric generating facilities in
Maine that produce a total of 23 megawatts of electricity and are 100 percent
owned by PPL; and PPL’s 50 percent ownership interest in a separate 13-megawatt
hydroelectric project, of which the other 50 percent is already owned by another
ArcLight affiliate.
The $81
million excludes certain contingent consideration that will be realized upon
completion of PPL’s previously announced potential sale of three other
hydroelectric facilities to the Penobscot River Restoration Trust.
That
transaction originated in June 2004, when PPL partnered with a coalition of
environmental groups, government agencies and the Penobscot Indian Nation on a
settlement agreement to provide the Trust with the option to buy these three
facilities. The Trust exercised this option in June 2008, and the completion of
that sale is pending the receipt of certain state and federal regulatory
approvals.
“PPL
believes strongly in this important project and remains fully committed to
obtaining all approvals necessary to transfer these three facilities to the
Trust,” said William H. Spence, PPL’s executive vice president and chief
operating officer.
PPL
expects to record a special after-tax gain of approximately $0.06 per share,
excluding the contingent consideration, in the fourth quarter of 2009 as a
result of the ArcLight transaction. PPL would record another special after-tax
gain of approximately $0.02 per share upon receipt of the contingent
consideration from ArcLight.
Both the
initial and the contingent consideration from ArcLight’s affiliate would enhance
PPL’s cash flow position and be modestly accretive to the company’s earnings.
PPL is not changing its current 2009 forecast of earnings from ongoing
operations as a result of the sale.
“As is
the case with the pending sale of our Long Island generation business, these
have been good assets for us in Maine but are not core to our concentrated
generation positions in the PJM Interconnection and in the Northwest,” Spence
said.
PPL
Corporation, headquartered in Allentown, Pa., controls or owns more than 12,000
megawatts of generating capacity in the United States, sells energy in key U.S.
markets and delivers electricity to about 4 million customers in Pennsylvania
and the United Kingdom. More information is available at www.pplweb.com.
ArcLight
Capital Partners, LLC, is one of the world’s leading energy investment firms
with more than $6.8 billion under management. ArcLight’s investment team has
extensive energy investing experience, industry relationships and asset level
knowledge. ArcLight is headquartered in Boston with offices in New York City,
London and Luxembourg. More information about ArcLight can be found at http://www.arclightcapital.com.
# # #
Note
to Editors: Visit our media Web site at www.pplnewsroom.com for additional news
and background about PPL Corporation.