Talen Energy sees value in PJM coal assets
Washington, 3 June (Argus) — Newly established independent power producer Talen Energy is betting on a large coal and gas portfolio in the PJM Interconnection power market to drive growth and enable future acquisitions in Texas, Montana and the northeast US.
Talen started trading independently this week. It is the product of a merger of utility holding company PPL’s merchant generating business and energy investment firm Riverstone Holdings subsidiary RJS Power Supply. Coal and natural gas-fired generation each account for 40pc in Talen’s 15GW portfolio, which also includes the 2,245MW Susquehanna nuclear power plant in Pennsylvania.
PJM’s mid-Atlantic segment accounts for 83pc of Talen’s generation fleet, with another 12pc in Texas’ primary power grid. “We like our portfolio’s mix,” especially in PJM where coal plant retirements are squeezing installed capacity margins, Talen chief executive Paul Farr told investors this week. Farr previously headed PPL’s merchant generation unit.