Electricity producer PPL Corp. (PPL), Wednesday said its PPL Maine subsidiary signed a definitive agreement to sell majority of its hydroelectric generation business to Black Bear Hydro Partners, LLC, an affiliate of ArcLight Capital Partners, LLC, for about $95 million. Additionally, PPL said there would be no change to its fiscal year 2009 earnings forecast for ongoing operations as a result of this sale.
The Allentown, Pennsylvania-based company said it expects the sale to result in a special after-tax gain in the range of $0.07 to $0.09 per share, including contingent consideration. A part of the gain would be recorded upon completion of the sale to the ArcLight affiliate later this year, while the remaining portion would be recorded when PPL concludes the sale of three other hydroelectric facilities to the Penobscot River Restoration Trust.
The total purchase price includes certain contingent consideration that would be realized upon completion of PPL's previously announced sale, which is currently pending the receipt of certain state and federal regulatory approvals.
The sale to the ArcLight affiliate includes five 100% PPL-owned hydroelectric generating facilities in Maine, namely Ellsworth, Medway, Milford, Orono and Stillwater hydroelectric plants that produce a total of 23 megawatts of electricity, and PPL's 50% ownership interest in the West Enfield project.
The sale, which is expected to close later this year, following necessary regulatory approvals and consents, is anticipated to augment PPL's cash flow position and add modestly to its earnings.
Boston headquartered ArcLight Capital Partners is an energy investment firm with more than $6.8 billion under management with offices in New York City, London and Luxembourg.
PPL closed Wednesday's regular trading at $33.69, up $0.73 or 2.21%, on a volume of 1.38 million shares on the NYSE.
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