Dynegy completes acquisition of $6.25 billion assets

Dynegy Inc. has completed two transactions to acquire the ownership interests in certain Midwest generation assets from Duke Energy and EquiPower Resources Corp and Brayton Point Holdings, LLC from Energy Capital Partners (ECP).

The ECP assets include these generating facilities: Milford, Lake Road, Dighton, Masspower, Liberty, Elwood, Richland, Stryker, Kincaid and Brayton Point. The assets are capable of generating 6.3 gigawatts of electricity into the New England and PJM power markets.

The acquisition price was US$3.45 billion including US$3.25 billion of cash and US$200 million of common stock, issued to ECP at closing.

The Duke portfolio includes its retail business and ownership interests in 11 plant including: Killen, Stuart, Conesville, Miami Fort, Zimmer, Hanging Rock, Washington, Fayette, Lee and Dicks Creek. The Duke assets include a seven million megawatt-hour (MWhr) retail portfolio and 11 generating stations, capable of generating 6.1 gigawatts of electricity into the PJM power market.

The acquisition price was US$2.8 billion in cash at closing.

Dynegy President and Chief Executive Officer Robert C. Flexon added:

“The EquiPower and Duke acquisitions are transformational for Dynegy, ushering in a new era of substantial scale, and geographic and fuel diversity. We now have a meaningful presence in three of the best markets in the country and substantial fuel diversity across our portfolio. Additionally, our PJM retail business is now fully backed by generation, providing a platform for growth.”

In mid October 2014 we reported that Dynegy issued US$5.1 billion unsecured bonds to finance the acquisitions.With these transactions, Dynegy now owns nearly 26,000 megawatts of generating capacity in eight states, enough to supply nearly 21 million homes. The company also provides retail electricity to 830,000 residential customers and 23,000 commercial, industrial and municipal customers in Illinois, Ohio and Pennsylvania.