The new company, which will be known as Talen Energy, will own and operate a mix of 15,320MW of generating capacity in important US competitive energy markets.
Under the deal, PPL will spin off PPL Energy Supply, the parent company of PPL Generation, and PPL EnergyPlus, to its shareowners.
The company will then merge the business with Riverstone’s generation business to form Talen Energy.
After completion of the transaction, PPL’s shareowners will hold 65% interest of Talen Energy and Riverstone will own 35% stake.
PPL, which will have no continuing ownership stake in Talen Energy, said the spinoff will not effect on common stock ownership and there will be no change in the number of company’s common stock outstanding shares.
PPL chairman, president and chief executive officer William Spence said, "Talen Energy will be a very significant player in the U.S. competitive generation market, bringing together the best of two robust businesses with a very strong presence in the PJM region, as well as nearly 2,000 megawatts of generating capacity in the fast growing ERCOT market in Texas."
