Dynegy Inc., which has teamed up with NRG Energy in westernstate power generation projects, has added a new connection,selling NRG a 50% interest in its Rocky Road Power Plant, a 250 MWnatural gas-fired, simple-cycle peaking facility in East Dundee,IL.

For NRG Energy, a subsidiary of Northern States Power, it offers”entry into the Chicago market and excellent transmission accessacross Mid-America,” according to Craig Mataczynski, president ofNRG North America. Terms of the deal were not disclosed.

And for Dynegy it frees up funds to pursue other megawattventures. The sale to NRG Energy “reflects the strength of our twocompanies’ ongoing business relationship. NRG Energy recognized thestrategic value of the plant and Dynegy’s ability to maximize thevalue of its capacity,” said Steve Bergstrom, Dynegy president.”Dynegy’s initial 100% ownership facilitated timely construction ofthe plant, which went into service before last summer’s coolingseason. By selling down our ownership in this facility to a powerpartner, we will be able to re-deploy the capital to expand ourgeneration portfolio in other strategic locations.” Dynegy’s goalis to own, control or manage 70,000 megawatts across the country.

The Rocky Road Power Plant began commercial operations on June30, 1999. Dynegy already has proposed and received approval for theinstallation of an additional 100 MW natural gas combustion turbineto increase generating capacity to a nominal 350 MW. The expansionwill be in service before the start of the peak summer 2000 season.

This is the fifth asset alliance between the two companies.Dynegy and NRG jointly acquired 1,218 MW of power generationfacilities in California in late 1998. In August 1999, Dynegy, NRGEnergy and Salt River Project (SRP) established Oasis Energy, apartnership to develop an 825 MW gas-fired generation facility nearPhoenix, AZ.

©Copyright 2000 Intelligence Press, Inc. All rightsreserved. The preceding news report may not be republished orredistributed in whole or in part without prior written consent ofIntelligence Press, Inc.