Talen Energy announced that it had agreed to be acquired by Riverstone Holdings, which is offering $14/share in cash for the company’s outstanding shares.

FERC granted Talen Energy’s request to sell four generators totaling 1,351 MW to satisfy divestiture conditions.

PPL and Riverstone have agreed to satisfy market power concerns over the spinoff of their generation into Talen Energy by making only cost-based offers for the more than 650 MW that they will keep in eastern PJM.

FERC said PPL’s plan to combine its generation with Riverstone Holdings to form Talen Energy could get its OK if it beefed up its market mitigation.

PPL’s plan to spin off its generation into Talen Energy needs additional mitigation to address local market power concerns, PJM’s market monitor told FERC.

PPL and Riverstone Holdings have offered to divest about 1,300 MW of generation from their 15,000-MW combined fleet to avoid market power concerns over their planned spinoff, Talen Energy.

It’s too early to say whether PPL shareholders be better off now that the company has decided to spin off its generation unit. But there’s no doubt the deal with Riverstone Holdings will shuffle the generator rankings.