Dynegy is selling two gas-fired projects it recently acquired from Engie  to LS Power. Separately, the independent power producer is also reconfiguring its ownership stakes in two Ohio coal-fired assets.

Following its acquisition of a roughly 9 GW portfolio of mostly gas-fired assets from Engie, which closed earlier this month ( PFR, 2/8), Houston-based Dynegy is in the process of exploring asset sales in several markets.

As part of that process, it has agreed to sell two peakers it just acquired from Engie—the Armstrong facility in Shelocta, Pa., and the Troy facility in Luckey, Ohio—for $480 million, according to its fourth quarter earnings report.

Dynegy said the two projects totalled 1,269 MW in the earnings report—without breaking down the capacity between the two projects—suggesting that the transaction valued them collectively at $378/kW.

However, in paperwork filed with the U.S. Federal Energy Regulatory Commission in March of last year to request permission for Dynegy's acquisition of the assets from Engie, the Armstrong and Troy facilities were described as being approximately 842 MW each in size. Dynegy's website, which was updated after the Engie acquisition closed, puts its net interest in the projects at 753 MW and 770 MW, respectively. Dynegy did not respond to a request for comment on the discrepancy.

The proceeds of the sale will be used to pay down debt, according to the earnings report.

AEP ASSET SWAP

Meanwhile, Dynegy has also entered into an agreement with American Electric Power to swap a stake in a coal-fired plant the two companies co-own for a stake in another project.

Under the agreement, Dynegy will transfer its 40% interest in the 780 MW Unit 4 of the Conesville project in Conesville, Ohio, to AEP. In return, it will obtain AEP's 25.4% interest in the 1,350 MW Zimmer project in Moscow, Ohio, increasing its stake in the project to 71.9%

The swap will increase AEP's ownership stake in Conseville Unit 4 to 84%. AEP has mandated Citi  and Goldman Sachs to market its interest in the project ( PFR, 1/31 PFR, 5/2).

AES Corp., which owns a 16.5% interest in Conesville Unit 4, is also seeking to offload the asset.

Dynegy is looking to sell its 2.7 GW California portfolio, three gas-fired projects in PJM Interconnection and a gas-fired project in Connecticut ( PFR, 2/15).

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