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Dynegy picks up Ameren coal-fired plants

TEXAS utility Dynegy, fresh out of bankruptcy protection in October, says it will double its gene...

Donna Schmidt

The deal will involve no cash because Ameren will spend about $133 million to buy back three natural gas-fueled plants from the subsidiary Dynegy is divesting.

Under the deal, Dynegy will get $825 million in non-recourse debt as well as Ameren’s retail and marketing assets in Illinois.

Including the Ameren plants, the Houston company will have more than 8000 megawatts of generating capacity in Illinois and about 14,000Mw across the US.

“We expect that this transaction will reduce business risk and improve the predictability of our future earnings and cash flows, which is expected to strengthen Ameren’s credit profile and support Ameren’s dividend,” Ameren chairman and chief executive officer Thomas Voss said.

The transaction will be Ameren’s official exit from the merchant generation business, making good on a December announcement that it would sell off its unit to focus on regulated operations in Illinois as well as Missouri.

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