Two years after the company suffered from a near-death experience, Dynegy Inc. is now readying “bolt-on” projects to improve its current fleet of generators and natural gas midstream assets, CEO Bruce Williamson said Thursday.

After it improves its facilities, Williamson also hinted that the company wants to expand its services into contract management for other power plants and make “modest acquisitions down the road.”

Williamson highlighted the company’s progress and plans going forward at the Lehman Brothers CEO Energy/Power Conference. He stressed that “growth opportunities” are high on Dynegy management’s list, beginning with improving its current portfolio of facilities. The company plans to spend about $100 million on the expansion and upgrading projects, he said.

“These bolt-ons give us a fast return,” said Williamson. “We are basically high grading and upgrading our own fleet of assets…which are totally within our control.” He called them “more bite size,” enabling Dynegy to manage the timing and cost controls.

Dynegy, he said, is going through several phases toward recovering its power market. The first phase came from gains in weather-induced demand, which were followed by cost-advantaged price increases. The third phase will be a shift toward rebuilding, and finally, investments in growth.

“After less than two years, we are now able to discuss investments in growth,” he said. Although there was no defined timetable, Williamson predicted that recovering companies will look toward consolidation.

“Some would like us to throw up the finish line and say that we’re completed, and we’re close to complete” with restructuring. “The sale of Illinois Power is a big milestone for us. Suffice to say, our ‘to do’ list is getting very, very close” to being completed. The sale of IP to Ameren Corp., announced in February, has already received most of the major approvals. Williamson said the sale could close “as early as the end of this month,” or the end of October. “It’s not out of the question to resolve it in the next few weeks. Both sides are prepared for an immediate closing.”

Refocusing the company has been ongoing since Williamson took over two years ago (see NGI, Oct. 28, 2002). “The rebuilding continues today. We are rebuilding a lot of credibility…and trust. Now we are starting to rebuild growth with instrumental capital investments. Results are what investors are looking for.”

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