Talen Energy, operator of Colstrip plant, files for bankruptcy
The operator and part-owner of the coal-fired power plant in Colstrip filed for chapter 11 bankruptcy this week.
In a statement Tuesday, representatives with the Texas-based Talen Energy say the company’s choice to file for reorganization bankruptcy will allow it to pay off more than $3 billion dollars in debt.
Chapter 11 bankruptcy differs from other bankruptcy filings in that it helps a corporation to secure financing to pay off its debts rather than liquidize its assets.
Talen representatives say they don’t expect restructuring to affect operations at the Colstrip coal-fired power plant, which the company owns a 30% share in. Majority owners Avista Corporation, Pacificorp, Portland General Electric and Puget Sound Energy are based in the Pacific Northwest and are transitioning away from coal-fired generation over the next few years.
A lawyer with Talen is scheduled to speak to Montana lawmakers on the state Energy and Telecommunications Interim Committee next week.