THE WOODLANDS, Texas, Jan. 13, 2020 /PRNewswire/ -- Talen Energy Corporation ("Talen Energy" or "the Company") announced today the completion of the previously-announced sale of its indirect, wholly owned subsidiary Interstate Energy Company LLC ("IEC") to Adelphia Gateway, LLC ("Adelphia"), a subsidiary of New Jersey Resources Corporation. Upon closing of the transaction, Talen Energy received proceeds in the amount of $155 million, which was in addition to $10 million received upon announcement of the transaction in October 2017. The closing proceeds are expected to be used for recourse debt reduction.
"The sale of IEC marks the last in a series of planned sales of non-core assets which were announced shortly following Talen Energy's take-private transaction in December 2016. These sales allowed the Company to monetize underutilized assets to generate incremental cash flow, and drive greater efficiencies," said Chairman and Chief Executive Officer Ralph Alexander. "We appreciate the efforts of those on both sides of this transaction and look forward to working with Adelphia to ensure a smooth transition for all involved."
The IEC pipeline consisted of an 84-mile pipeline between Marcus Hook and Martins Creek, Pennsylvania. As part of the agreement, Talen Energy subsidiaries have entered 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-mile portion of the pipeline will be repurposed by Adelphia to flow natural gas to the greater Philadelphia region.
About Talen Energy
Talen Energy is one of the largest competitive energy and power generation companies in North America. The Company owns or controls approximately 15,000 megawatts of generating capacity in well-developed, structured wholesale power markets, principally in the Northeast, Mid-Atlantic and Southwest regions of the United States. For more information, visit talenenergy.com
Senior Manager, Investor Relations and FP&A
Media & Community Relations Manager
SOURCE Talen Energy