By Suzanne Herel and Michael Brooks

Talen Energy last week announced plans to sell the Charles P. Crane generating station, a 399-MW coal-fired plant in Baltimore, to an affiliate of Avenue Capital Group, a global alternative investment firm.

Talen did not disclose the terms of the deal, saying only that “proceeds of the sale are not material.” The announcement comes two weeks after Talen announced it was selling three Pennsylvania power plants for $1.5 billion as part of a strategy to satisfy FERC, which ordered it to divest certain assets when the company spun out of PPL and Riverstone Holdings last year.

Announced sales of the assets, located in the PJM region, total 1,395 MW, including the Crane plant, Talen said.

“Talen Energy continues to review and evaluate options for the remaining identified mitigation assets,” the company said.

The Crane sale is expected to close in the first quarter of 2016.

Deals Approved

Also last week, FERC approved Talen’s $1.175 billion acquisition of MACH Gen and its three combined-cycle power plants, significantly boosting Talen’s presence in the New York and New England markets (EC15-187).

Included in the deal are the 1,138-MW New Athens plant in New York and the 335-MW Millennium plant in Massachusetts. As a result, Talen will own or control 3.2% of the available capacity in NYISO and 1.7% in ISO-NE.

Also part of the transaction is the 1,020-MW New Harquahala plant in Arizona. Taking on this plant was most likely a condition for acquiring the others; New Harquahala is losing money, and Talen has said it might move it or sell it for parts. (See Talen Entering NYISO in $1.2B Deal.)

Forbes reported Friday that Talen had cancelled a $400 million loan it was seeking to support the acquisition. The company cited its “strong liquidity position” and high interest rates as why the loan was no longer “an attractive piece of capital.”

FERC also approved the sale of Talen’s renewable energy subsidiary to California-based Energy Power Partners (EC15-182). The sale includes 25 wind, solar and biofuel facilities totaling 65 MW. While most of these are behind-the-meter facilities, EPP will gain 25 MW in PJM and 4 MW in ISO-NE.

In Pennsylvania, Talen is selling the 704-MW combined-cycle Ironwood plant to a subsidiary of Calgary-based TransCanada for $654 million. The Holtwood and Lake Wallenpaupack hydroelectric projects, with a combined generating capacity of 292 MW, are being purchased by a subsidiary of Quebec-based Brookfield Renewable Energy Partners for $860 million. (See Talen Energy to Sell 3 Pa. Generators for $1.5 Billion.)

At the time those deals were announced, Talen spokesman George Lewis said the company was evaluating offers for six former Riverstone generators in New Jersey.