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Dynegy Adds to SE Power Portfolio

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 the Southeast.

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 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.

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