OR WAIT null SECS
U.S. electric power company Dynegy Inc. recently said it had partnered with private equity firm Energy Capital Partners to buy French utility Engie SA's power plants worth $3.3 billion. The deal includes plants producing 8,731 MW, almost all powered by natural gas, and is likely to give Dynegy presence in the Texas market, which is currently controlled by grid operator Electric Reliability Council of Texas (ERCOT).
In the deal, the lone Ohio plant is the former Troy Energy gas-fired plant in Wood County, a 725-MW plant south of Toledo. The deal is expected to boost Dynegy's power plant portfolio to more than 35,000 MW.
The new joint venture is called Atlas Power and Dynegy owns 65 percent. New Jersey-based Energy Capital can leave the venture after four years. Dynegy said the acquisition would take its total generation capacity to 35,000 MW across PJM, ISO New England, ERCOT and other regulated power markets.
Falling demand for electricity in the United States due to increased energy efficiency has led to a spate of mergers. Dynegy will invest about $770 million and Energy Capital will invest about $415 million in the joint venture, expected to generate about $90 million in annual synergies.