Dynegy Sells 50% Stake in Illinois Power Plant, Announces Uprates, New Brand

Dynegy in announcing earnings disclosed that it has reached an agreement to sell its 50% stake in an Illinois power plant, and has also debuted a new brand

Dynegy announced that it has signed a definitive agreement to sell its 50% equity interest in the Elwood Energy Facility in Elwood, IL to its partner, J-Power USA Development Co. Ltd. for $172.5 million in cash.

At closing, approximately $35 million in previously posted collateral will be returned to Dynegy, and the non-recourse asset level financing currently in place will remain with the new owner. Dynegy intends to use the proceeds of the sale, which is expected to close in the fourth quarter, to satisfy a portion of its buyout obligation to Energy Capital Partners.

Dynegy further announced that it has completed 197 MW of advanced gas path (AGP) uprates at five plants during the second quarter as follows:

Facility    Uprate   Market   Total Plant MW
            Amount            post-uprate
Ontelaunee   40 MW    PJM       640
Fayette      44 MW    PJM       726
Washington   47 MW    PJM       711
Independence 30 MW    NYISO   1,156
Kendall      36 MW    PJM     1,288

Dynegy also announced that it received approval for 500 MW of incremental MISO capacity from Hennepin and Joppa to be pseudo tied to PJM beginning June 1, 2017. Dynegy will continue to explore similar paths for its remaining plants in MISO while pursuing legislation in Illinois to move Ameren Illinois to PJM

On May 3, 2016, Dynegy announced plans to shut down units one and three at the Baldwin Power Station in Baldwin, IL and unit two at the Newton Power Station in Newton, IL after they failed to clear the recent MISO capacity auction. Dynegy said that MISO has approved the shutdown of Newton unit two by September 15, 2016 and the shutdown of Baldwin unit one by October 17, 2016. Dynegy plans to file the shutdown notice for Baldwin unit three in the third quarter. Dynegy’s Wood River Power Station retired on June 1, 2016.

Dynegy also unveiled a new brand, which the company said, "features a bird on a soaring trajectory under a boundless sky, [and] is also a D monogram that represents the Company’s strength and reliability you can count on when needed."

See the new logo below: