Texas PUC Approves Vistra-Dynegy Merger Without Requiring Divestitures

During today's open meeting, the Texas PUC approved the merger of Vistra and Dynegy, and, in doing so, found that the combined firm, without any divestitures, will not exceed the 20% market share limit.

The PUC calculated that the combined firm's market share will be less than 20% by excluding from the calculation the import capability (about 820 MW) from the DC ties, consistent with the position outlined in a memo from Commissioner Arthur C. D'Andrea (see prior story for discussion of the memo)

The PUC also excluded from the market share calculation certain capacity (915 MW) which the PUC found qualified for a statutory exemption related to restructuring legislation

This exemption, under PURA § 39.154(e), provides that, in determining the percentage shares of installed generation capacity owned and controlled by a power generation company under this section and Section 39.156, the commission shall, for purposes of calculating the numerator, reduce the installed generation capacity owned and controlled by that power generation company by the installed generation capacity of any "grandfathered facility" within an ozone nonattainment area as of September 1, 1999, for which that power generation company has commenced complying or made a binding commitment to comply with Section 39.264.