Dynegy Adds to SE Power Portfolio
Dynegy is making a reality of its promise to increase its power
asset portfolio in the Southeast by announcing construction plans
for two separate 500 MW facilities in the past seven days. Last
week, Dynegy announced a local commission approved plans to
construct a plant in Heard County, GA. Yesterday, the company said
it gained approval from a local court to build the Bluegrass
Generation facility in Oldham County, KY. With the Kentucky
facility, Dynegy will own or have interest in five power plants in
Both plants will cost an estimated $100 million each. The power
generated from the facilities will be marketed to investor-owned
utilities, electric cooperatives and municipalities. Although both
facilities have gained approval from local authorities, each still
needs state and regulatory approval before construction can start.
"Current capacity shortfalls, transmission constraints that are
not being addressed because of uncertainty associated with
independent system operators and forecasts showing that demand will
be greater than capacity over the next five years make the
[Southeast] region attractive to new market entrants," said Chuck
Watson, CEO of Dynegy.
The Heard County plant is scheduled to commence operations in
the second quarter of 2001. It will include three 167-MW
simple-cycle combustion turbines and the 90 MMcf/d of gas needed to
power the plant will be delivered through the Transco Pipeline.
The Bluegrass facility will start in the summer of 2001. At
maximum capacity, it's three simple cycle gas turbines will need
120 MMcf/d to run. Gas will be delivered through the Texas Gas
In addition to these two plants, Dynegy is also planning to
construct a 600 MW peaking facility in Rockingham County, NC.
Overall, Dynegy's 32 generation assets that are currently operating
or in final development have a combined capacity of 7,300 MW.
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