The Federal Energy Regulatory Commission on Oct. 22 approved the sale by Talen Energy (NYSE: TLN) of several small renewable energy plants.
On Aug. 4, Talen Energy Marketing LLC, Talen Renewable Energy LLC, Talen New Jersey Biogas LLC and Talen New Jersey Solar LLC applied for approval of a merger of Talen Renewable with EPP Renewable Energy LLC (EPP), a direct wholly owned subsidiary of Energy Power Investment Co. LLC (EPIC) and the subsequent dissolution of Talen Renewable.
Talen Energy Marketing is a direct wholly owned subsidiary of Talen Energy Supply LLC and an indirect wholly owned subsidiary of Talen Energy. Talen Renewable is an indirect wholly owned subsidiary of Talen Energy Marketing.
Talen Renewable has two indirect wholly owned subsidiaries: Talen New Jersey Biogas and Talen New Jersey Solar. Talen Renewable, Talen New Jersey Biogas, and Talen New Jersey Solar are exempt wholesale generators (EWG) with market-based rate authority.
Talen Renewable owns seven projects located in the PJM Interconnection market totaling 20.5 MW and owns two projects located in the ISO New England (ISO-NE) market totaling 4 MW. Talen New Jersey Biogas owns one project within the PJM market totaling 4.8 MW.
EPIC intends to engage in power marketing activities, including managing wholesale power sales contracts. EPIC is owned 90.52% by North American Sustainable Energy Fund LP (NASEF) and 9.48% by Energy Power Partners Fund I LP (EPPFI). The general partner of NASEF is North America Sustainable Energy GP LLC (NASEF GP).
Talen Renewable will be merged with EPP and EPP will survive the merger. Talen Energy Marketing is assigning certain wholesale contracts to the buying companies.
Talen Energy had on June 26 announced that it had reached an agreement to sell Talen Renewable Energy to funds managed by California-based Energy Power Partners. The sale will include 25 projects in four states with a total of 65 MW of nameplate generating capacity. The portfolio includes landfill gas-to-energy, solar, wind and cogeneration projects. Subject to regulatory approvals, the agreement is expected to close by the end of the year.
Talen Energy was formed earlier this year when the competitive power generation business of PPL Corp. (NYSE: PPL) was spun off and combined with the competitive generation business owned by private equity firm Riverstone Holdings LLC. Talen Energy is one of the largest competitive energy and power generation companies in the United States, with a diverse generating fleet that operates in well-developed, structured wholesale power markets.