FERC Subjects Dynegy Purchase of GDF Suez Plants To Mitigation

FERC issued an order finding that a transaction under which Dynegy would acquire 8,731 megawatts of generation capacity from Engie (f/k/a GDF Suez) raises competitive concerns in certain capacity market local deliverability areas, and conditioned approval of the acquisition on mitigation

See background here on what was originally the acquisition of the Engie plants by a Dynegy-Energy Capital Partners (Atlas) JV here. Dynegy since entered into a transaction to acquire Energy Capital Partners' interest in Atlas (details here)

"[B]ased on Applicants’ representations and Commission analyses, we find that Applicants have not demonstrated that the Proposed Transactions will not adversely affect competition in the PJM and ISO-NE capacity markets. Specifically, Applicants have not demonstrated that the GSENA Transaction will not adversely affect competition both within the COMED LDA in the PJM capacity market and within the SENE capacity zone in the ISO-NE capacity market," FERC said.

With respect to the COMED LDA, FERC's finding was specifically made due to the impact from the retirements of Quad Cities Generating Station and Unit 4 of the Will County Generating Station

"[W]e conditionally authorize the GSENA Transaction subject to Applicants proposing mitigation that addresses the competition concerns," FERC said

FERC noted that such mitigation could include divestitures or other mitigation measures

Applicants were directed to propose mitigation within 30 days