Dec 22, 2023
ALLENTOWN, Pa., Dec. 22, 2023 /PRNewswire/ -- PPL Corporation (NYSE: PPL) today announced that it has entered into a settlement agreement with Talen Energy Corporation and certain affiliates ("Talen") to resolve all claims made by Talen arising out of the June 2015 spinoff of PPL Energy Supply, which was renamed Talen.
Under the terms of the agreement, PPL will pay Talen $115 million, resolving all claims between the parties. For PPL, the settlement avoids the continued cost and uncertainty of litigation that began in two courts in Montana more than five years ago, with Talen initially seeking more than $900 million tied to proceeds from PPL's 2014 sale of PPL Montana's hydroelectric assets. PPL Montana is now Talen Montana.
"Since this litigation was initiated by Talen, we have maintained our position that PPL acted appropriately with regard to the sale of the Montana hydro assets and that the separation agreement governing the spinoff of PPL Energy Supply entitled PPL to retain the proceeds from the transaction," said PPL President and Chief Executive Officer Vincent Sorgi. "Nonetheless, we recognize there is risk inherent to any litigation defense. Moreover, Talen's bankruptcy filing in May 2022 ended any meaningful opportunity for PPL to recover financially on its various counterclaims.
"With the likelihood of multiple additional years of litigation and appeals before us, we have concluded that it is in the best interest of PPL and our shareowners to bring a certain end to this litigation," said Sorgi. "Looking forward, our focus and our energy will continue to remain squarely on creating the utilities of the future to advance a responsible clean energy transition and drive long-term value for our customers and shareowners."
PPL Corporation (NYSE: PPL), headquartered in Allentown, Pennsylvania, is a leading U.S. energy company focused on providing electricity and natural gas safely, reliably and affordably to more than 3.5 million customers in the U.S. PPL's high-performing, award-winning utilities are addressing energy challenges head-on by building smarter, more resilient and more dynamic power grids and advancing sustainable energy solutions. For more information, visit www.pplweb.com.
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SOURCE PPL Corporation