FERC okays Talen Energy sale of two Pennsylvania hydroelectric facilities

The Federal Energy Regulatory Commission on Feb. 17 approved the sale by Talen Energy (NYSE: TLN) of the Wallenpaupack and Holtwood hydroelectric facilities in Pennsylvania.

On Nov. 6, 2015, Holtwood LLC and BIF III Holtwood LLC requested commission authorization for a transaction whereby BIF III Holtwood will purchase from Holtwood the physical assets (and real property interests located within the FERC designated boundaries) associated with the Wallenpaupack Hydroelectric Project and the Holtwood Project.

  • The Wallenpaupack Project is a 44-MW hydroelectric station located within the Delaware River Basin on Wallenpaupack Creek and the Lackawaxen River in Pike and Wayne counties, Pennsylvania.
  • The Holtwood Project is a 249-MW hydroelectric station located on the Susquehanna River in Martic Township, Lancaster County, Pennsylvania.

Both projects are interconnected to the transmission system of PPL Electric Utilities Corp.

BIF III Holtwood is affiliated with several companies regulated as public utilities, companies owning qualifying facilities, transmission facilities and an intrastate natural gas storage company. BIF III Holtwood is affiliated with the Safe Harbor Water Power Corp., an EWG that owns and operates the Safe Harbor Project, a 417.5 MW hydroelectric facility located within the AP South and 5004/5005 sub-markets of PJM Interconnection. BIF III Holtwood is also affiliated with approximately 148 MW of generation capacity in PJM that is not located in any recognized sub-market, and approximately 1,389 MW of capacity in first-tier markets to PJM.

BIF III Holtwood is controlled by its ultimate parent company, Brookfield Asset Management Inc. (BAM), an Ontario corporation with its principal place of business in Toronto, Ontario, Canada. BAM is a publicly traded global alternative asset manager focused on property, renewable power, infrastructure assets, and private equity.

Brookfield Renewable Energy Partners (TSX: BEP.UN) (NYSE: BEP) in October 2015 had announced an agreement to acquire this hydroelectric portfolio from Talen Energy for $860 million.

About Barry Cassell 20414 Articles
Barry Cassell is Chief Analyst for GenerationHub covering coal and emission controls issues, projects and policy. He has covered the coal and power generation industry for more than 24 years, beginning in November 2011 at GenerationHub and prior to that as editor of SNL Energy’s Coal Report. He was formerly with Coal Outlook for 15 years as the publication’s editor and contributing writer, and prior to that he was editor of Coal & Synfuels Technology and associate editor of The Energy Report. He has a bachelor’s degree from Central Michigan University.