Dynegy Inc. and Illinova Corp. boards of directors unanimously approved a merger plan for the two companies. The combined company will be named Dynegy and will be a $7.5 billion full service energy provider.
Chevron U.S.A., which has a 29 percent interest in Dynegy, voted its shares in favor of the merger and elected to take all stock. Chevron is also investing $200 million of new equity in the combined company.
The merged company will own more than 15,000 MW of domestic generating capacity.
The merger is conditioned upon the completion of the pending sale of Illinova’s Clinton Power Station, plus assorted regulatory approvals. The merger is expected to close by the end of the first quarter of 2000.
Dynegy began construction on the 800 MW, simple-cycle Rockingham Power Plant in North Carolina in July. Dynegy’s Rocky Road Power Plant, a 250 MW natural gas-fired peaking facility near Chicago began commercial operation in June.