PPL Corp. has asked for more time to comply with conditions federal regulators placed on its proposal to spin off its PPL Energy Supply division, combining it with select assets of Riverstone Partners to form a new stand-alone entity called Talen Energy.
On Dec. 18 the Federal Energy Regulatory Commission approved the spinoff under the condition that PPL respond with a plan to alleviate concerns that the deal would hurt competition in certain limited power markets.
PPL and Talen had proposed addressing those concerns with two options. Both involved selling off power plants to one or more third parties.
Among the plants that could be sold: PPL’s Holtwood and Ironwood facilities and Riverstone's York plant.
In December, FERC said the companies would have to sell all the plants in both options to meet its concerns, or combine one of the plans with price controls.
FERC also allowed PPL and Riverstone the option of coming up with another alternative.
In the request, filed by PPL and Riverstone on Wednesday, PPL said it is unable to choose by the Jan. 20 filing deadline.
"Consideration of such options requires extensive analysis of the implications of each alternative on the business of Talen Energy," the company wrote in its request.
Assessing the alternatives has taken longer than expected, the company wrote, and was slowed by the "holiday season."
PPL asked for an extension until Jan. 30. The extension won't delay the spin-off plan, the company said.
"We're still on track for close in the first or second quarter," said PPL spokesman George Lewis. "We've asked FERC for a 10-day extension so we can more fully evaluate the implications on Talen Energy's business of the three mitigation options that FERC presented in its Dec. 18 order. The reply was due on Jan. 20. We've asked FERC to extend the due date until Jan. 30 so we can complete a thorough business analysis of the FERC options."
-- Information from the Allentown Morning Call (TCS)
(Correction: An earlier version of this story erroneously said Brunner Island was among the power plants that could be sold. It is not.)