Montana Public Service Commission (PSC) has granted final approval to PPL Montana for the sale of its hydroelectric facilities to NorthWestern Energy, a power utility company in the US.
According to the agreement, NorthWestern Energy will own PPL Montana's 11 hydroelectric power plants - all of which have a combined generating capacity of more than 630MW - and the Hebgen Lake reservoir.
The purchase price of these facilities is $900m in cash.
PPL estimates net cash proceeds of the sale to be $880m.
The deal includes PPL Montana's Thompson Falls Dam on the Clark Fork River; Kerr Dam on the Flathead River; Madison Dam on the Madison River; Mystic Lake Dam on West Rosebud Creek; and Hauser, Holter, Black Eagle, Rainbow, Cochrane, Ryan and Morony dams along the Missouri River.
The agreement has already received prior approvals and clearances from the US Federal Energy Regulatory Commission (FERC) and antitrust enforcement agencies in the state for the transfer.
FERC is yet to review the financing transactions, which is expected to be completed in one to two months after NorthWestern files the details.
Transfer of the power stations and hydroelectric operating licenses will be done for NorthWestern after the transaction is closed.
PPL Montana will, however, retain its stake in the Colstrip coal-fired facility and JE Corette coal-fired facility located near Billings.
PPL Montana plans to mothball the 153MW Corette plant in April 2015.