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Related Companies ArcLight Capital Partners LLC PPL Corp. (PPL) PPL Maine LLC

Related Documents Merger Press Release (MR) PPL Corp. 11/2/2009, filed on 11/2/2009

Related Articles 7/1/2009 PPL to sell Maine hydro units for $95 million 5/29/2009 PPL selling Long Island generation facilities to J-Power for $135 million 8/22/2008 Penobscot River Restoration Trust raises enough money to buy 3 PPL-owned dams

Related Deals Penobscot River Restoration Trust/Veazie, Great Falls, Howland dams J-Power USA Generation, L. P./Long Island generation business ArcLight Capital Partners LLC/Maine's hydroelectric generation business

PPL Corp. on Nov. 2 said its PPL Maine LLC subsidiary completed the sale of the majority of its hydroelectric generation business to Black Bear Hydro Partners LLC, an affiliate of ArcLight Capital Partners LLC, for about $81 million.

The sale involves five hydroelectric generating facilities in Maine, which produce a total of 23 MW of electricity and are fully owned by PPL, as well as PPL's 50% ownership interest in a separate 13-MW hydroelectric project. Another ArcLight affiliate owns the other 50% of that project.

The company said the $81 million excludes certain contingent consideration that will be realized upon completion of its previously announced potential sale of three other hydroelectric facilities to the Penobscot River Restoration Trust. The sale is pending approval from state and federal agencies.

PPL said it expects to record a special after-tax gain of about 6 cents per share, excluding the contingent consideration, in the fourth quarter as a result of the ArcLight transaction. The company would record another special after-tax gain of about 2 cents per share upon receipt of the contingent consideration from ArcLight.

PPL said both the initial and the contingent consideration from ArcLight's affiliate would enhance PPL's cash flow position and be modestly accretive to the company's earnings. PPL is not changing its current 2009 forecast of earnings from ongoing operations as a result of the sale.

"As is the case with the pending sale of our Long Island generation business, these have been good assets for us in Maine but are not core to our concentrated generation positions in the PJM Interconnection and in the Northwest," PPL Executive Vice President and COO William Spence said.