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Bracewell Represents PPL Corporation in Acquisition of Pennsylvania Power Plant

February 28, 2012

Bracewell & Giuliani LLP is representing PPL Corporation and its competitive generation subsidiary, PPL Generation, LLC, in the $304 million acquisition of AES Ironwood, LLC and AES Prescott, LLC from a subsidiary of the AES Corporation. Together, AES Ironwood and AES Prescott own and operate a 705-megawatt AES Ironwood combined-cycle natural gas-fired power plant in Lebanon, PA.

The power plant began operation in 2001, and for the past four years PPL EnergyPlus, LLC – the marketing and trading subsidiary of PPL – has supplied natural gas for the operation of the plant in return for securing its full output under a tolling agreement that expires in 2021.

The transaction consists of a cash purchase price of $87 million, which includes $4.8 million in expected working capital, and approximately $217 million of net project indebtedness of AES Ironwood. This transaction closed on April 13, 2012.