Retail Supplier Parent Reaches Agreement to Sell Three Power Generating Assets

Dynegy Inc. has reached agreements to sell three of its generating plants for approximately $300 million.

Specifically, Dynegy reached an agreement to sell its Lee Energy Facility, a 625 MW (summer capacity rating) gas-fueled peaking asset in the PJM ComEd region to an affiliate of Rockland Capital.

Dynegy will receive $180 million in cash and avoid the incremental capital investment necessary to convert the plant to dual fuel status in order to meet PJM capacity performance obligations. "The sale allows the Company to crystallize value in the ComEd region and generate additional cash proceeds for debt repayment," Dynegy said

Dynegy has also signed a purchase and sales agreement with Starwood Energy Group Global for two assets totaling $119 million. The combined 310 MW (summer rating) of assets to be sold include two intermediate gas-fueled plants located in Dighton and Milford, Massachusetts. Dynegy anticipates allocating the cash proceeds to debt reduction.

The agreement fulfills the mitigation plan approved by the Federal Energy Regulatory Commission (FERC) regarding Dynegy's purchase of ENGIE’s US-based asset portfolio.

Combined with a previously announced sale of certain plants to LS Power, a total of approximately $780 million in aggregate sales proceeds will be used primarily for debt reduction.

Dynegy also announced that it finalized the sale of the dual-fueled peaking Armstrong and Troy Energy facilities, located in Pennsylvania and Ohio, respectively, to LS Power for $480 million in cash.