Dynegy Inc., through its wholly owned subsidiary, has finalized its acquisition of Duke Energy’s (NYSE: DUK) commercial generation assets and retail business in the Midwest. The Duke assets include a seven million megawatt-hour (MWhr) retail portfolio and 11 generating stations, capable of generating 6.1 gigawatts of electricity into the PJM power market. The acquisition price was $2.8 billion in cash at closing.
The company completed its acquisition of EquiPower Resources Corp. and Brayton Point Holdings, LLC from Energy Capital Partners April 1. With these transactions, Dynegy now owns nearly 26,000 megawatts (MW) of generating capacity in eight states—enough to supply nearly 21 million homes. The company also provides retail electricity to 830,000 residential customers and 23,000 commercial, industrial and municipal customers in Illinois, Ohio and Pennsylvania.
“The EquiPower and Duke acquisitions are transformational for Dynegy, ushering in a new era of substantial scale, and geographic and fuel diversity,” said Dynegy President and Chief Executive Officer Robert C. Flexon. “We now have a meaningful presence in three of the best markets in the country and substantial fuel diversity across our portfolio. Additionally, our PJM retail business is now fully backed by generation, providing a platform for growth.”
Yesterday the Company raised its projection for synergies from $40 million to $100 million and announced it was allocating $100 million of capital to reduce the equity that would have been issued under the original Energy Capital Partners transaction terms.