PPL was sued Monday for nearly $1 billion in Montana state court. PPL is being sued by a company they created that says their actions have been misleading and fraudulent.
It all began in 1999, when PPL bought Montana Power Company, which was renamed PPL Montana.
In 2014, PPL Montana sold 12 hydroelectric dams to the tune of $733 million and those profits were paid out to PPL stockholders.
Then, in 2015, PPL spun off a division of the company, the power generation side of it, into a newly-formed company.
That company, now called Talen Montana, filed two suits in Montana State Court against PPL, one alleging fraudulent conveyance, which is legal speak for avoiding debt by transferring it to another person or company.
Talen Montana says by transferring those proceeds, PPL left it unable to effectively operate its coal plant, which includes things like a pension fund and environmental remediation.
69 News reached out to PPL Monday afternoon for comment.
The company released a statement Tuesday morning:
PPL believes that the referenced 2014 distribution of proceeds was made in compliance with all applicable laws and that PPL Montana was solvent upon the 2014 distribution. Additionally, in the agreements entered into with respect to the spinoff, affiliates of Talen Energy and Riverstone definitively agreed that PPL was entitled to retain the proceeds from the November 2014 sale of PPL Montana’s hydroelectric generating facilities. PPL believes that it has good and meritorious defenses to these claims and fully plans to vigorously defend against these actions.