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Dynegy, Energy Capital to buy Engie's U.S. power plants

Staff writer |
Dynegy of U.S. said it had partnered with private equity firm Energy Capital Partners to buy French utility Engie's U.S. power plants worth $3.3 billion to expand in regulated power markets.

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The deal will give Dynegy presence in the Texas market, which is currently controlled by grid operator Electric Reliability Council of Texas (ERCOT).

Dynegy said the acquisition would also boost its presence in New England, managed by grid operator ISO New England, and in the mid-Atlantic and parts of the Midwest, run by PJM Interconnection.

Dynegy, which will own 65 percent of the joint venture, said the acquisition would add about 8,731 megawatts (MW) to its generation capacity, taking the total to 35,000 MW across PJM, ISO New England, ERCOT and other regulated power markets.

Dynegy will invest about $770 million and Energy Capital will invest about $415 million in the joint venture, expected to generate about $90 million in annual synergies.

The partnership has secured financing with $2.25 billion in committed debt facilities and $1.19 billion in equity commitments.

Energy Capital will also buy $150 million of Dynegy stock at $10.94 per share, which will raise its holding in the company to about 15 percent.

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