PPL to sell two Long Island power plants
NEW YORK, NEW YORK - Allentown-based PPL Corp. said it will sell two power plants on New York's Long Island to the U.S. subsidiary of a Japanese power company.
The price is about $135 million plus working capital, which means the buyer will take over financial commitments related to facility improvements, said PPL spokesman George Biechler. The buyer is the U.S. unit of a Tokyo-based firm known as J-Power.
In a written statement, PPL said it expects the sale to result in an after-tax charge of 9 to 12 cents per share in the second quarter. That's because the value of the plants on PPL's books was higher than the sale price, Biechler said. The deal will benefit earnings after closing, which is expected later this year, PPL said. The plants were profitable but PPL will earn a higher return by using the money elsewhere, Biechler said.
The plants are not part of PPL's core business because they are outside the company's geographic focus and the output is committed to the Long Island Power Authority, Biechler said.
PPL generates and delivers electricity in central Pennsylvania.
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