Talen Energy Corporation (NYSE:TLN) Q1 2016 Earnings Conference Call - Final Transcript
May 10, 2016 • 08:00 am ET
Welcome to the Talen Energy first quarter results conference call.
All participants will be in listen-only mode. (Operator Instructions) Please note this event is being recorded.
I would now like to turn the conference over to Andrew Ludwig. Mr. Ludwig, please go ahead.
Thanks, Kate and good morning, everyone. Thank you for joining the Talen Energy Corporation conference call to discuss first quarter 2016 results.
Today's presentation is being webcast, and we are providing slides of the presentation on our website at talenenergy.com.
(Forward-Looking Cautionary Statements)
This presentation also will contain references to non-GAAP financial information that we use to measure our business. You can find the reconciliation between the non-GAAP financial measures we use, and the most directly comparable GAAP measures in the schedules to our earnings release and the presentation that we posted on our website.
With that, I'll now turn the call over to Paul Farr, Talen Energy President and CEO.
Thanks, Andy and thank you all for joining us on our first quarter earnings call.
Joining me on the call today are Jeremy McGuire, our CFO; Joe Hopf, who leads our commercial team and our non-nuclear generation, as well as Tim Rausch, our Chief Nuclear Officer. After my prepared remarks, Jeremy will take you through a more detailed review of the financial performance and our forecast, and we'll then take questions.
We're about three weeks shy of the anniversary of the spin and the acquisition of the RJS portfolio, and I'm extremely proud of the efforts and accomplishments of our entire team over the past two years of planning and execution. We'll touch on a number of initiatives that we have underway to grow value for stockholders in our prepared remarks. So I'll move right into slide 4.
The April 1 sale of the Eastern Hydro assets for $860 million marked the end of the FERC mitigation asset sales, all of which were executed at great values and competitive processes. Our Brunner Island coal-fired project remains on schedule, which should permit us to burn gas in Unit 3 by August, and the smaller two units by the end of the year. We've made significant progress on the Montour Project Evaluation as well, and expect to have a final decision on that in the next few weeks. That project is expected be executed a little differently than Brunner Island, in that we are working with a midstream company to finance, construct, and operate the lateral pipeline.
Since the Brunner Island Project has a much smaller lateral, we are initially financing and constructing the gas line ourselves. Once the Brunner Project is completed, we plan to assess the value of selling the line to a midstream company to free up the capital we invested in that portion of the project.
At Susquehanna, we safely and successfully completed our Unit 1 refueling outage, which included normal refueling and maintenance activities, as well as major work to replace the original feed water heaters, and the installation of shortened blades on the