Dynegy Acquiring 12.3 GW of Generation from Duke and ECP

Dynegy Inc.—the Houston-based power company with operations in the Midwestern, Northeastern, and Western U.S.—has signed two separate agreements to acquire generation assets from Duke Energy and Energy Capital Partners (ECP).

The acquisition includes a total of 12,313 MW of coal and gas generation, which will increase the company’s total portfolio to nearly 26 GW. Dynegy says that of the total, 5,053 MW are modern combined cycle natural gas plants and 3,793 MW are environmentally compliant coal generation plants.

“The addition of these portfolios transforms Dynegy by adding considerable scale in the PJM and New England markets,” said Dynegy President and CEO Robert C. Flexon.

The acquisition will include Duke’s non-regulated Midwest Commercial Generation Business for $2.8 billion in cash, which includes ownership interests in 11 power plants—with a capacity of approximately 6,100 MW—and Duke Energy Retail Sales, the company’s competitive retail business in Ohio.

“This transaction is an important milestone in our strategy to exit the merchant generation business,” said Marc Manly, president of Duke Energy’s Commercial Businesses.

The assets being acquired from ECP are its Milford, Lake Road, Dighton, Masspower, Liberty, Elwood, Richland, Stryker, Kincaid, and Brayton Point facilities for a purchase price of $3.45 billion. The total capacity of the ECP plants is reported to be 6,213 MW. Dynegy says it intends to honor the agreement ECP reached to retire the Brayton Point facility on May 31, 2017, and complete decommissioning of the plant following retirement.

All of the plants being acquired are located in one of the following states: Connecticut, Illinois, Massachusetts, Ohio, or Pennsylvania. Both of the transactions are expected to close by the end of the first quarter 2015.

Aaron Larson, associate editor (@AaronL_Power, @POWERmagazine)

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