- Dynegy announced it has completed the acquisition of Engie's U.S.-based power plants for $3.3 billion, just six days after federal regulators signed off on the transaction.
- The portfolio of generation consists of 9,017 MW, of which more than 90% is gas-powered. The plants are located in the ERCOT, PJM and ISO-New England markets.
- Dynegy now owns more than 31,000 MW of generating capacity. The company has tripled its capacity since 2013, now controlling sufficient generation to power 25 million homes.
Less than a week after the Federal Energy Regulatory Commission approved the deal, Dynegy completed the acquisition of 17 power plants, increasing gas-fired generation to two-thirds of the company's total portfolio.
Dynegy President and CEO Robert Flexon said in a statement that the deal adds "strategic assets in key markets and leverages our low-cost scalable operating platform, furthering our position as the low-cost operator among our peers.”
Dynegy said there are significant operating, maintenance and procurement synergies in the acquisition, and it will move quickly to leverage these. Integration of an initial $90 million synergy target is expedited to be achieved within the first 30 days of closing, the company said. An updated and increased synergy target will be announced in the near future. The synergies are primarily derived from operations and maintenance, procurement and the elimination of redundant corporate platform costs.
As previously announced, pursuant to the closing of the transaction, Dynegy acquired ECP’s 35% interest in the joint venture, and owns 100% of the acquired business. Dynegy has assumed ECP’s share of the upfront equity funding at closing, and paid ECP the revised discounted floor price of $375 million post-closing. This step allows Dynegy to reduce the cost of the acquisition and accelerate the full integration of the ENGIE portfolio into the Company’s existing business.
Dynegy has also assumed Energy Capital Partners share of the upfront equity funding at closing, and paid ECP the revised discounted floor price of $375 million post-closing.
Dynegy and ECP formed a joint venture, Atlas Power in 2016 to purchase 8,731 MW in the deal, but Dynegy subsequently bought ECP out. This step allowed Dynegy to reduce the cost of the acquisition and accelerate the full integration of the ENGIE portfolio into the Company’s existing business.