Talen Energy Corporation announced Monday that it completed the previously announced sale of its indirect, wholly owned subsidiary Interstate Energy Company LLC (IEC) to Adelphia Gateway, LLC (Adelphia), a subsidiary of New Jersey Resources Corporation.
The IEC pipeline is an 84-mile pipeline between Marcus Hook and Martins Creek, Pa. Talen Energy subsidiaries have entered into contracts as part of the agreement under which the northern section of the pipeline will continue to supply natural gas to Talen Energy’s Martins Creek and Lower Mount Bethel generating stations. Adelphia will repurpose the southern portion of the pipeline to flow natural gas to the greater Philadelphia region.
Talen Energy received proceeds of $155 million at the close of the transaction, in addition to the $10 million received at the announcement of the transaction in October 2017. It is anticipated that the closing proceeds will be used for recourse debt reduction.
“The sale of IEC marks the last in a series of planned sales of non-core assets which were announced shortly following Talen Energy’s take-private transaction in December 2016,” Talen Energy Chairman and CEO Ralph Alexander said. “These sales allowed the Company to monetize underutilized assets to generate incremental cash flow, and drive greater efficiencies. We appreciate the efforts of those on both sides of this transaction and look forward to working with Adelphia to ensure a smooth transition for all involved.”