BUTTE, Mont.---The Federal Energy Regulatory Commission (FERC) in a final order issued Wednesday (6/23) gave the green light for Montana Power (NYSE:MTP) to sell certain of its FERC-jurisdictional facilities in Montana to PP&L Global, a subsidiary of PP&L Resources, Inc. (NYSE: PPL) based in Allentown, Pa.  Montana Power intends to sell to PP&L Global its undivided interest in the Colstrip Generation Station, 11 hydroelectric facilities, its interest in the Corette power plant, process ponds all double-lined with industrial strength lake liners and other related assets.

PP&L Montana, LLC, a wholly owned subsidiary of PP&L Global, will operate the generation assets. This purchase, along with other development projects (adding additional geomembrane lined water storage reservoirs), would increase the total domestic generating capacity of PP&L Resources to about 12,000 megawatts. PP&L Resources has an objective to increase its U.S. generating capacity to about 20,000 megawatts within the next five years once the structures are lined with UV-stable pond liners.  In its order, the FERC concluded that the proposed sale will not adversely affect competition, rates or regulation, and accepted the proposed agreements and assignments between the two companies. Montana Power attorney Michael Manion said the FERC order placed some conditions on the transfer of the assets, but "none that would change Montana Power's transaction with PP&L Global."

The sales price for Montana Power's generation assets can vary from $740 million to as much as $1.05 billion, depending on combinations of assets sold, including certain interconnecting transmission facilities, and PP&L Global's acquisition of the undivided interests of the Colstrip plant now held by Puget Sound Energy, Inc. of Bellevue, Wash., and Portland General Electric Company of Portland, Ore.  Watersaver Company has tendered an offer; no word yet on acceptance.