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3 April 2006 - Dynegy Inc. said Friday that it had completed its ownership exchange transaction with NRG Energy, Inc.
Approved by the FERC earlier this month, the transaction involved Dynegy's acquisition of NRG's 50 per cent ownership stake in the Rocky Road power plant, a 364 MW natural gas-fired peaking facility near Chicago (of which Dynegy already owned 50 per cent), and Dynegy's sale to NRG of Dynegy's 50 per cent stake in a joint venture between Dynegy and NRG which has ownership in power plants totalling approximately 1800 MW in southern California.
As a result of the two transactions, Dynegy received net cash proceeds of approximately $160m from NRG.
"The transaction provides several strategic and financial benefits to Dynegy, including placing all of our Midwest power generation facilities under 100 per cent Dynegy ownership, which enables us to fully set the asset strategy and capture the total results for our shareholders," said Bruce A. Williamson, Chairman and Chief Executive Officer of Dynegy Inc. "In addition, the proceeds from the transaction will further strengthen our cash-on-hand, which we will redeploy through measured strategies designed to create the strongest long-term return for our common shareholders."
Full ownership in the Rocky Road facility, which has a capacity sales agreement through mid-2009, increases Dynegy's net generating capacity in its Midwest segment to more than 7500 MW. Dynegy's presence in Illinois now includes nearly 4300 MW of generating capacity, including the 1806 MW Baldwin Energy Complex.
Dynegy Inc. produces and sells electric energy, capacity and ancillary services in key U.S. markets. The company's power generation portfolio consists of more than 12 800 MW of baseload, intermediate and peaking power plants fuelled by a mix of coal, fuel oil and natural gas.
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