Dynegy CEO Bruce A. Williamson said at the company’s annual meeting Thursday that while it has spent the last couple of years putting assets on the auction block, it may spend the next couple on the lookout for merger and acquisition opportunities, particularly in the power generation business.

He said the company reduced debt and other obligations by more than $1.5 billion last year, cut collateral by $550 million compared to end-of-year 2002 levels and extended debt maturities. Williamson said his company has sharpened its long term focus on the unregulated power generation and natural gas liquids businesses by selling off assets in other areas.

“The capabilities and scalability of our power generation business provide an opportunity for us to capture growth and consolidation opportunities that will result from U.S. economic and power market recoveries,” Williamson said.

Williamson said he expects the field of 12 or more energy merchants to be cut in half in three years through a consolidation period that will begin by the end of 2004. He expects Dynegy to be one of the acquirers, noting that it was one of the only companies showing a profit in the first quarter.

Another way of growing would be through equity partnerships, like the one the company extended on Wednesday to market extra electricity from Gregory Power Partners LLC’s 400 MW Texas power plant.

During the annual meeting, Dynegy shareholders approved the election of 13 director nominees to serve through 2005. All of the current directors were elected, except for Daniel L. Dienstbier, Dynegy’s former non-executive chairman, who previously announced his retirement. George L. Mazanec, the sole nominee who was not previously a Dynegy director, was elected to the board.

Dynegy owns more than 12,700 MW of net generating capacity, gas processing plants that process 1.8 Bcf/d of gas and nearly 38,000 miles of electric transmission and distribution lines.

©Copyright 2004 Intelligence Press Inc. All rights reserved. The preceding news report may not be republished or redistributed, in whole or in part, in any form, without prior written consent of Intelligence Press, Inc.