Dynegy sells plant for $470m

today announced that it has reached an agreement to sell the CoGen Lyondell Power Generation Facility in

, to EnergyCo for approximately $470m in cash. Dynegy's sale of the facility is expected to result in a collateral reduction of approximately $20m in letters of credit and a return of working capital.

The sale, which is subject to various regulatory approvals and closing conditions, is expected to close in the third quarter 2007. The CoGen Lyondell facility, with 534 megawatt summer capacity rating, is a natural gas-fired, combined-cycle plant that began commercial operation in 1985. The purchase price equates to approximately $880 per kilowatt-hour based on the plant's summer capacity rating.

According to a statement, the sale of the CoGen Lyondell facility is consistent with the company's previously announced plans to rationalise its asset portfolio. In January 2007, the company announced an agreement to sell its Calcasieu Power Generation Facility, a peaking plant in Sulphur, Louisiana, to Entergy Gulf States for approximately $57m in cash. That sale remains subject to regulatory approval and is expected to close in early 2008.