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
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
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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