Dynegy Inc., owner of power plants in 12 U.S. states, said it agreed to exchange with NRG Energy Inc. (NRG:US) a 50 percent stake in two power-generating facilities, as it focuses on the U.S. Midwest.
Dynegy will buy NRG's 50 percent stake to take complete ownership of Rocky Road, located near Chicago, and will sell its 50 percent stake in West Coast Power, in Southern California, to NRG, Houston-based Dynegy said today in a statement. Dynegy will get $160 million in cash from NRG.
``The Midwest is one of our most important regions in terms of earnings and growth potential,'' Dynegy spokesman John Sousa said in a telephone interview. The transaction, which is expected to close in the first quarter of 2006, is ``consistent with our operational focus.''
NRG, based in Princeton, New Jersey, will gain complete ownership of the California plant, NRG said in a separate statement. NRG expects to benefit from energy reforms in California, spokesman Jay Mandel said in a telephone interview.
Dynegy shares, up 6.3 percent this year, fell 16 cents to $4.91 in New York Stock Exchange composite trading today. NRG shares fell 45 cents to $45.77 in New York trading today. The stock has climbed 27 percent this year.
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