Dynegy sells plant for $57m

Dynegy has reached an agreement to sell the company’s Calcasieu Power Generation Facility, a peaking plant in Sulphur, Louisiana, to Entergy Gulf States for approximately $57m.


Dynegy has reached an agreement to sell the company’s Calcasieu Power Generation Facility, a peaking plant in Sulphur, Louisiana, to EntergyGulf States for approximately $57m in cash.



The sale, which is subject to approval by various federal, state and other agencies, is expected to close in early 2008.



The sale of the Calcasieu facility (351-megawatt winter capacity rating/322-megawatt summer capacity rating) is consistent with the company’s previously announced plans to evaluate its generation fleet to focus on regions and markets where the company will have a significant asset position.



That evaluation is continuing and could result in sales of additional assets that are not considered strategic fits within the company’s fleet. As previously disclosed, a pre-tax impairment charge of approximately $40m will be recorded in the fourth quarter 2006 related to the Calcasieu facility.



On September 15, 2006, Dynegy announced a proposed combination with LS Power that is expected to result in a combined entity with approximately 20,000 megawatts of generation capacity and a strong presence in the Midwest, the Northeast and the West Coast. The transaction, which remains subject to shareholder approval, is targeted for completion in early 2007.