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Dynegy Adds to SE Power Portfolio

Dynegy Adds to SE Power Portfolio

Dynegy recently announced construction plans for two separate 500 MW facilities in the Southeast, making a reality of its promise to increase its power asset portfolio in the area. With these facilities, one located in Heard County, GA and the other located in Oldham County, KY, Dynegy will increase its Southeast energy assets from three to five.

"The Southeast is one of the fastest growing markets in the country for power sales. Dynegy will meet the growing wholesale demands by increasing its owned and controlled generation capacity in this region by several thousand MW in the next three years." said Chuck Watson, CEO of Dynegy.

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," Watson said.

On March 10, Dynegy announced a local commission approved plans to construct the Heard County plant. It 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.

Last week, the company said it gained approval from a local court to build the Bluegrass Generation facility in Oldham County, KY. 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 Transmission Pipeline.

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.

John Norris

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