Dynegy is making a reality of its promise to increase its powerasset portfolio in the Southeast by announcing construction plansfor two separate 500 MW facilities in the past seven days. Lastweek, Dynegy announced a local commission approved plans toconstruct a plant in Heard County, GA. Yesterday, the company saidit gained approval from a local court to build the BluegrassGeneration facility in Oldham County, KY. With the Kentuckyfacility, Dynegy will own or have interest in five power plants inthe Southeast.

Both plants will cost an estimated $100 million each. The powergenerated from the facilities will be marketed to investor-ownedutilities, electric cooperatives and municipalities. Although bothfacilities have gained approval from local authorities, each stillneeds state and regulatory approval before construction can start.

“Current capacity shortfalls, transmission constraints that arenot being addressed because of uncertainty associated withindependent system operators and forecasts showing that demand willbe greater than capacity over the next five years make the[Southeast] region attractive to new market entrants,” said ChuckWatson, CEO of Dynegy.

The Heard County plant is scheduled to commence operations inthe second quarter of 2001. It will include three 167-MWsimple-cycle combustion turbines and the 90 MMcf/d of gas needed topower the plant will be delivered through the Transco Pipeline.

The Bluegrass facility will start in the summer of 2001. Atmaximum capacity, it’s three simple cycle gas turbines will need120 MMcf/d to run. Gas will be delivered through the Texas GasTransmission Pipeline.

In addition to these two plants, Dynegy is also planning toconstruct a 600 MW peaking facility in Rockingham County, NC.Overall, Dynegy’s 32 generation assets that are currently operatingor in final development have a combined capacity of 7,300 MW.

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