Business & Finance
Business and Finance
Business and Finance
Thu, February 26, 2009
Wed, February 25, 2009 Dynegy Announces Agreement to Sell Heard County Power Generation Facility to Oglethorpe Power
HOUSTON--([ BUSINESS WIRE ])--Dynegy Inc. (NYSE:DYN) today announced that a subsidiary has reached an agreement to sell the Heard County Power Generation Facility in Georgia to Oglethorpe Power Corporation for $105 million in cash. The sale of the facility is subject to approval by various federal, state and permitting agencies, and is expected to close in the second quarter 2009.
"The sale of the Heard County facility is consistent with our strategy of selling non-core assets for a value that we believe is greater than what we could earn by holding and operating the asset ourselves," said Bruce A. Williamson, Chairman, President and Chief Executive Officer of Dynegy Inc. "In addition, this is consistent with previous divestitures of assets that were located outside of our key operating and commercial regions of the Midwest, West and Northeast. We believe our current portfolio is strategically positioned to benefit from tightening supply and demand in the future given the reduction of development initiatives."
The Heard County plant (539-megawatt winter capacity rating) is a natural gas-fired peaking facility that began commercial operation in 2001. Dynegy recorded an impairment of approximately $50 million in the fourth quarter 2008 as a result of the company's plans to sell the facility.
Through its subsidiaries, Dynegy Inc. produces and sells electric energy, capacity and ancillary services in key U.S. markets. The power generation portfolio consists of more than 18,000 megawatts of baseload, intermediate and peaking power plants fueled by a mix of natural gas, coal and fuel oil. DYNC
Certain statements included in this news release are intended as "forward-looking statements." These statements include assumptions, expectations, predictions, intentions or beliefs about future events, particularly the statements related to: the likelihood that a proposed asset sale will be fully executed; the timing if such a sale is ultimately completed; the pricing of the sale should it be completed; and any and all impairment charges related to the sale. Dynegy cautions that actual future results may vary materially from those expressed or implied in any forward-looking statements. Specifically: Dynegy cautions that sales of assets of this kind can result in intense regulatory scrutiny; the sale could be blocked by state or federal regulatory agencies; the sale may not prove to be a strategically beneficial one for Dynegy; and the sale price may change prior to closing, possibly with adverse consequences for Dynegy. More information about the risks and uncertainties relating to these forward-looking statements are found in Dynegy's SEC filings, including its Annual Report on Form 10-K for the year ended December 31, 2007 and its Forms 10-Q for the quarters ended March 31, 2008, as amended; June 30, 2008; and September 30, 2008; all of which are available free of charge on the SEC's web site at [ www.sec.gov ] or on Dynegy's website in the Investor Relations section at [ www.dynegy.com ].
