Talen Energy to sale its IEC gas pipeline to New Jersey resources
THE WOODLANDS, Texas — Talen Energy Corporation and New Jersey Resources Corporation (NJR) announced the execution of a definitive agreement for the sale of 100% of the equity interests in Talen Energy's Interstate Energy Company LLC (IEC) pipeline subsidiary to Adelphia Gateway, LLC (Adelphia), a subsidiary of NJR. Talen Energy's IEC subsidiary currently owns and operates an 84-mi pipeline that interconnects the producing region of southeastern Pennsylvania to the Philadelphia gas market.
Aggregate consideration for the sale is $189 MM payable in cash, of which up to $23 MM is contingent cash consideration based on certain specified conditions. The sale is expected to close in approximately 12 mos, following receipt of all necessary permits and regulatory actions, including those from the Federal Energy Regulatory Commission and the Pennsylvania Public Utility Commission.
As part of the agreement, Talen Energy subsidiaries will enter into contracts with Adelphia, whereby the northern portion of the pipeline will continue to supply natural gas to Talen Energy's Martins Creek and Lower Mount Bethel generating stations. The southern 50-mi portion of the pipeline will be repurposed by Adelphia to flow natural gas to the greater Philadelphia region and provide customers with a new source of clean, safe and low-cost natural gas supply.
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