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PPL Cutting 450 Jobs Ahead Of Plant Spinoff

ALLENTOWN, Pa. (AP) — A Pennsylvania utility says it's eliminating 450 jobs as part of cost-cutting stemming from a planned spinoff of its competitive generation business.

Allentown-based PPL Corporation on Tuesday said severance packages and existing vacancies will keep the number of layoffs under 200.

PPL disclosed the planned job reduction in a third-quarter earnings report.

The company reported third-quarter earnings of $497 million, or 74 cents per share, an increase from $410 million, or 62 cents per share, a year ago.

PPL and Riverstone Holdings are combining their competitive generation businesses to form Pennsylvania-based, publicly traded Talen Energy.

PPL owns 12 generating plants with a generating capacity of nearly 10,000 megawatts. Riverstone's 15 facilities produce 5,325 megawatts.

PPL says it expects the spinoff to close in the first half of next year.

(Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

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