Talen Energy announces settlement agreement with PPL Corp.

Talen Energy (TLNE) reported that the company and certain subsidiaries have reached a settlement of litigation with PPL Corporation (PPL) related to a distribution of proceeds from the 2014 sale of hydroelectric facilities in Montana. Under the terms of the settlement agreement, which has been approved by each company’s Board of Directors, PPL will pay Talen Montana $115M in cash on or before December 31, 2023, in exchange for a full release of all claims. $9.5M of the proceeds are expected to be paid to the General Unsecured Creditors Trust, established as part of Talen’s chapter 11 plan of reorganization, to satisfy outstanding claims that remain following Talen’s emergence from restructuring in May 2023. The remaining proceeds will be used by Talen Montana to secure environmental and other obligations, and for general corporate purposes. “We are pleased to have reached a settlement with PPL. Importantly, as part of the agreement, Talen and PPL have agreed to reset our relationship. PPL can be a key stakeholder for Talen on some of our most critical lines of business, and we look forward to working constructively together going forward,” said President and Chief Executive Officer Mac McFarland.