Dynegy to buy out DP&L, AES Ohio stakes in two struggling Ohio coal plants

Dive Brief:

  • Dynegy has signed agreements to purchase a greater share of two coal-fired plants from AES Ohio and Dayton Power & Light Co., according to a Form 8-K filed with the U.S. Securities and Exchange Commission.
  • The company is purchasing a 28.1% undivided interest in the Zimmer coal-fired station in Moscow, Ohio, and a 36% undivided interest in Units 7 and 8 of the coal-fired Miami Fort Station in North Bend, Ohio.
  • The total summer capacity is about 740 MW, with a purchase price of $50 million. According to Energy Choice Matters, the deal would give Dynegy full ownership of both plants.

Dive Insight:

It appears the units Dayton Power & Light is selling were among those it sought support for last year. Columbus Business First reported in November that Dynegy was interested in purchasing the plants.

DP&L currently co-owns the Miami Fort Station with Dynegy Miami Fort and co-owns the Zimmer Station with Dynegy Zimmer and a third party, American Electric Power.

Older, less-efficient power plants in Ohio have been struggling for some time, and utilities had sought permission to have customers subsidize the plants. When the supports were blocked a year ago, some of those struggling plants have been put up for sale.

AEP had signaled that it would not sell the plants to Dynegy, after the company opposed the subsidies needed to keep the facilities operating. Energy Choice Matters reported the companies reached an agreement in February, however, for Dynegy to purchase its share.

The Federal Energy Regulatory Commission must approve the deals.

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Filed Under: Generation