Colstrip ownership plan unravels on bankruptcy problems. [Video]

A key transfer of Colstrip shares, considered critical to extending the life of one of the West’s largest coal-fired power plants, is no more.

Colstrip Power Plant co-owner and operator Talen Energy has informed shareholders its agreement to acquire 370 megawatts of Colstrip generation from Puget Sound Energy has fallen through.

The agreement hinged on Talen getting approval from the judge overseeing its 2022 bankruptcy.

“In February 2024, Puget Sound informed Talen Montana that it was in breach of the agreement for failing to obtain Bankruptcy Court approval and that the agreement is unenforceable,” Talen said in its annual report to investors. “Talen Montana has agreed that the agreement is unenforceable and disputed that it breached the agreement.”

Talen, a Texas-based energy company that sells its 15% share of Colstrip power to wholesale buyers, indicated that it continues to look for ways to acquire Puget’s shares.

The agreement would have …