Allentown-based PPL Corporation is spinning its power plants into a separate independent company, officials said, but may see some layoffs.
PPL officials said Tuesday it plans to combine its competitive energy business with the generation portfolio of Riverstone Holdings LLC, a leading energy and power investment firm.
The new publicly traded company will be called Talen Energy Corporation and officials said it will be one of the nation's largest independent power producers.
According to a PPL news release, many current employees of PPL Energy Supply and the employees of PPL Services Corporation who provide support for that business are expected to transfer to Talen Energy at closing. However, the combination of operations will likely result in the elimination of a number of positions.
The number of positions affected will be determined during the transition process, Spence said, noting that the company is confident in its forecast of synergies.
Talen will own and operate more than 15,000 megawatts of generating capacity through power plants in Pennsylvania, Texas, Maryland and New Jersey.
When the transaction is complete, PPL Corporation shareholders will own 65 percent of Talen Energy, and Riverstone will own 35 percent.
According to PPL officials, the transaction will not affect PPL Electric Utilities customers.