Bloomberg News

Dynegy Says It May Dispose of Three Power Plants

February 06, 2007

Dynegy Inc. (DYN:US), which has agreed to purchase generation facilities from LS Power Group, is looking to sell three power plants in the southern part of the U.S.

The Lyondell cogeneration facility in Texas, the Bluegrass facility in Kentucky and the Heard County plant in Georgia could be sold by the end of 2007, Holli Nichols, chief financial officer for Houston-based Dynegy, said today at a Credit Suisse conference in Colorado. Dynegy said last year that proceeds could top $500 million from the sale of non-core assets in 2007.

The 576-megawatt Bluegrass plant and the 539-megawatt Heard County plant are fueled by natural gas and are so-called peaking units, which go into service only during times of maximum demand. The Lyondell facility has a capacity of 614 megawatts.

The facilities may be packaged in an auction process, Nichols said.

Entergy Corp., based in New Orleans, said Feb. 1 that it had agreed to buy the 351-megawatt Calcasieu plant in Louisiana from Dynegy for $57 million.

The acquisition of LS Power assets will expand Dynegy's generating capacity by 71 percent to about 20,000 megawatts, or enough to supply 16 million U.S. homes.

Shares of Dynegy rose 4 cents to $7.10 in New York Stock Exchange composite trading.

To contact the reporter on this story: Edward Klump in Houston at eklump@bloomberg.net.

To contact the editor responsible for this story: Robert Dieterich at rdieterich@bloomberg.net.


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Companies Mentioned

  • DYN
    (Dynegy Inc)
    • $30.75 USD
    • -0.21
    • -0.68%
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