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Talen Energy Supply and Puget Sound Energy Announce Strategic Transaction of Colstrip, Montana Assets

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Talen Energy and Pattern Energy Announce 600 MW Silverthorn Wind Project Development

Colstrip to Provide Grid Resiliency, Jobs, and Clean Energy to the Western U.S. Power Grid and Montana

HOUSTON, Sept. 12, 2022 /PRNewswire/ -- Talen Energy Supply, LLC ("Talen" or "TES") and Puget Sound Energy ("PSE") announced today that they have executed a strategic transaction which will help advance TES' long-term vision for Colstrip, Montana. The transaction seeks to leverage the plant's existing electric infrastructure for utility scale renewables project development, while preserving grid resiliency for the Western Interconnect and providing energy security, jobs and significant investments in Montana.

Under the terms of the transaction agreement, TES affiliate, Talen Montana, LLC ("TM"), which currently owns a 30% share (approximately 222 megawatts) of Colstrip Unit 3 and serves as the plant operator, will assume PSE's 25% ownership share in Units 3 and 4 (approximately 370 megawatts) on December 31, 2025. PSE will retain its share of environmental remediation and other asset retirement obligations, decommissioning costs and other appropriate costs associated with Units 3 and 4 that accrue through December 31, 2025.

Talen's Colstrip energy transition plan centers on the development of the 600-megawatt (MW) Silverthorn Wind ("Silverthorn") project located in Rosebud and Treasure Counties, which is expected to interconnect at the Colstrip substation. The Silverthorn project is part of a joint venture between TES affiliate Cumulus Renewables and Pattern Energy Group LP ("Pattern Energy") and, pending approvals, is expected to be commercially available beginning in 2026. When complete, Silverthorn will complement TM's share of Colstrip Units 3 and 4 by reducing the overall carbon intensity of TES' Montana electric generation while also ensuring grid resiliency and providing the reliable energy that Montana needs to power its economy. Pattern Energy and Talen are expected to invest up to $1.0 billion in this energy transition plan and the Silverthorn project to serve customers.

TES Chief Executive Officer Alejandro "Alex" Hernandez, said, "I am pleased to complete this strategic transaction with Mary Kipp and Puget Sound Energy, which allows Talen to begin implementing its energy transition vision for Colstrip while also helping to preserve energy security and jobs in Montana. I would also like to thank Governor Greg Gianforte for his continuing support of Colstrip and for working with the Colstrip co-owners as an advocate that Colstrip operate for its full, useful life." He continued, "This strategic transaction is a tangible example of energy transition, balancing the interests of our various stakeholders and communities, while creating an attractive renewable energy investment opportunity for infrastructure capital partners."

Mary Kipp, Chief Executive Officer of PSE, commented, "PSE customers want clean energy and we are committed to providing it as we plan for our future in accordance with Washington laws and our aspirational Beyond Net Zero Carbon goal."

Mike Garland, Chief Executive Officer of Pattern Energy, said, "Our partnership with Talen Energy to facilitate the energy transition of Colstrip with our Silverthorn Wind project will make Colstrip one of the most important energy centers in the United States, serving the rapidly growing energy needs of the West. The Silverthorn project is of similar scale to our recent Western Spirit Wind facility with 1,050 megawatts of capacity, the largest wind power project ever constructed as a single phase in the Americas. As we embark on Silverthorn, we commend Talen for driving this energy transition plan."

Consistent with the terms of the Ownership and Operating Agreement of Colstrip Units 3 and 4, the transaction is subject to a 90-day review period which allows other Colstrip co-owners to exercise their right of first refusal ("ROFR") to join the transaction and acquire an interest in the ownership share being transferred. The transaction is subject to approval by the U.S. Bankruptcy Court for the Southern District of Texas which is currently presiding over TES' strategic recapitalization.

About Talen Energy Supply

TES, a subsidiary of Talen Energy Corporation ("TEC"), is one of the largest competitive power generation and infrastructure companies in North America. TES owns and/or controls approximately 12,500 megawatts of generating capacity in wholesale U.S. power markets, principally in the Mid-Atlantic, Texas and Montana.

TES and TEC subsidiary, Cumulus Growth, are developing a large-scale portfolio of renewable energy, battery storage, and digital infrastructure assets across TES' expansive footprint.  For more information visit, https://www.talenenergy.com/esg-efforts/.

Additional Information

On May 9, 2022, TES and certain of its affiliates filed for chapter 11 protection in the Bankruptcy Court. The cases are pending before the Honorable Marvin Isgur and are jointly administered under Case No. 22-90054. Talen Energy Corporation ("TEC"), Cumulus Growth subsidiaries, LMBE-MC Holdco II LLC and its subsidiaries, and Talen Receivables Funding (TRF) are not part of the filing.

Court documents and other information are available on a website hosted by TES's claims agent, Kroll, at https://cases.ra.kroll.com/talenenergy. TES has also established a call center for questions at 844-721-3899 if calling from within the United States or Canada or 347-292-4080 if calling from outside these areas. Creditor inquiries can also be directed to talenenergyinfo@ra.kroll.com.

Media Contact 
Taryne Williams 
Director Corporate Communications 
610-601-0327 
Taryne.Williams@talenenergy.com

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SOURCE Talen Energy Supply, LLC