The assets have a combined generating capacity of 996MW and they include the Ironwood combined-cycle, natural gas-fired plant as well as the Holtwood and Wallenpaupack hydroelectric projects.
Talen Energy said that the sale is a part of its effort to divest certain assets in specific regions of the PJM Interconnection, which include portions of eastern Pennsylvania, New Jersey and Maryland, in order to comply with the rules of Federal Energy Regulatory Commission (FERC).
The FERC imposed this condition in 2014 when it approved the creation of Talen Energy, a spinoff of the power generation assets of PPL Energy Supply and investment firm Riverstone affiliate RJS Power.
TransCanada agreed to purchase the 704MW Ironwood plant for $654m as part of a deal signed with Talen Energy.
Under the terms of the agreement, Talen Energy will repay approximately $42m of indebtedness as well as a customary pre-payment premium, associated with the facility.
Additionally, Brookfield Renewable Energy Partners has signed an agreement with Talen Energy to acquire 252MW Holtwood station on the Susquehanna River and the 40MW Wallenpaupack station on Lake Wallenpaupack in the Pocono Mountains, for $860m.
The two facilities are estimated to have a combined average power generation capacity of approximately 1.1 million megawatt hours annually.
The Holtwood hydro facility has long-term FERC operating license through 2030 while Wallenpaupack has operating license until 2045.
The transactions proceeds will be used by Talen Energy to retire pre-payable and maturing debt.
Brookfield Renewable expects the considered assets to complement its 417MW Safe Harbor facility located eight miles upstream from Holtwood.
Brookfield Renewable CEO Sachin Shah said: "These high-quality assets provide a unique opportunity to leverage our operating platform and hydroelectric expertise in a market facing significant coal retirements and increasing reliance on renewable."
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