UPDATE 1-PPL to sell Long Island plants to Japan's J-Power

* PPL to sell two Long Island, N.Y., power plants

* Japan's J-Power to pay $135 mln plus working capital

NEW YORK, May 29 (Reuters) - U.S. power company PPL Corp (PPL.N) said on Friday it agreed to sell its power generation business on New York's Long Island to J-Power USA for about $135 million plus working capital.

J-Power USA is a unit of Japan's Electric Power Development Co (9513.T), also known as J-Power.

PPL said the business consists of a 79.9-megawatt natural gas-fired plant in Brentwood and a 79.9-megawatt oil-fired plant in Brookhaven. The power from both plants is fully contracted to the Long Island Power Authority, its said.

PPL expects the sale of the noncore assets to result in a charge of 9 to 12 cents per share in the second quarter.

One megawatt powers about 800 homes in New York. (Reporting by Michael Erman, editing by Gerald E. McCormick)