BUTTE, Mont.---The Federal Energy Regulatory Commission (FERC) in a final order issued Wednesday (6/23) gave the green light for Montana Power (NYSE:MTP) to sell certain of its FERC-jurisdictional facilities in Montana to PP&L Global, a subsidiary of PP&L Resources, Inc. (NYSE: PPL) based in Allentown, Pa.

Montana Power intends to sell to PP&L Global its undivided interest in the Colstrip Generation Station, 11 hydroelectric facilities, its interest in the Corette power plant and other related assets.

PP&L Montana, LLC, a wholly owned subsidiary of PP&L Global, will operate the generation assets. This purchase, along with other development projects, would increase the total domestic generating capacity of PP&L Resources to about 12,000 megawatts. PP&L Resources has an objective to increase its U.S. generating capacity to about 20,000 megawatts within the next five years.

In its order, the FERC concluded that the proposed sale will not adversely affect competition, rates or regulation, and accepted the proposed agreements and assignments between the two companies. Montana Power attorney Michael Manion said the FERC order placed some conditions on the transfer of the assets, but "none that would change Montana Power's transaction with PP&L Global."

The sales price for Montana Power's generation assets can vary from $740 million to as much as $1.05 billion, depending on combinations of assets sold, including certain interconnecting transmission facilities, and PP&L Global's acquisition of the undivided interests of the Colstrip plant now held by Puget Sound Energy, Inc. of Bellevue, Wash., and Portland General Electric Company of Portland, Ore.

"If other FERC regulatory approvals are completed in a timely manner, the acquisition of these Montana Power generation assets by PP&L Global could be closed as early as September," said Paul Champagne, PP&L Global president. Those approvals, among other things, include the transfer of hydroelectric licenses from Montana Power to PP&L Global, and PP&L Montana's ability to become an Exempt Wholesale Generator (EWG) under federal law.

Earlier this month, PP&L EnergyPlus Co., a subsidiary of PP&L Resources, Inc., announced that it was acquiring Montana Power's energy marketing and trading operations.

The Montana Power Company was formed in 1912 through the merger of four small regional electric companies. Through its diversified enterprises, the company now operates or invests in businesses worldwide, supplying energy - electricity, natural gas, oil and coal - and providing energy and telecommunications services. The company has assets of $2.9 billion, consolidated revenues for the 12 months ending Dec. 31, 1998, of about $1.25 billion, net income of $162 million, and 2,900 employees. For more information, visit The Montana Power Company's Web site at www.mtpower.com.