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
Following its acquisition of a roughly 9 GW portfolio of
mostly gas-fired assets from Engie, which closed earlier this
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
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
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
and Goldman Sachs to market its
interest in the project (
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 (