Dynegy Inc. (NYSE:DYN) Closes Sale Of Lee Facility In Illinois


Dynegy Inc. (NYSE:DYN) has completed the sale of its Lee Energy Facility to an associate of Rockland Capital. As previously reported, the proceeds from the sale of $180 million will go toward debt payment. The deal has received the required permissions from the Federal Energy Regulatory Commission.

The highlights

In unrelated news, Dynegy reported that it supports the Illinois MPS proposal that the Illinois EPA has submitted with the Illinois Pollution Control Board for its approval and consideration. The rule change, which aims only the firm’s eight MPS-impacted coal-fueled generating services in downstate Illinois, would substitute two sets of yearly emission rate limits with a single set of certain yearly tonnage limits.

The amount of annual emissions permitted would be lower than under the present rule, including a 20% decline in sulfur dioxide emissions from the fleet. All other state and federal air quality regulations, counting health-based standards, will remain unaltered and in place.

Dean Ellis, the EVP of Regulatory Affairs at Dynegy, expressed that even though this proposal puts new fixed limits on permissible emissions from their plants, they support it because it will offer regulatory clarity and establish a single MPS operating group. This will help company in the future to better fulfill changing electricity demand and sustain jobs, while maintaining extremely low levels of emissions.

Ellis added that these plants have been retrofitted in emission control technology with around $2 billion that lowered sulfur dioxide emissions by as much as 90% since 1998, with considerable reductions of nitrogen oxides and other emissions as well. The MPS proposal will limit yearly emissions at levels lower than seen by the original MPS rule.

In the last trading session, the stock price of Dynegy declined more than 1% to close the day at $9.09. The decline came at a share volume of 4.04 million compared to average share volume of 2.62 million.