Dynegy ends power plant venture with LS Power

2 January 2009 – Power company Dynegy Inc. will end its power plant development joint venture with LS Power Associates because of the tough credit markets and regulatory hurdles in building new plants, the company said.

Under the agreement to end the two-year-old venture, Dynegy will pay LS Power $19 million in cash in the first quarter and keep the rights to expand its existing portfolio of assets.

LS Power will acquire ownership and development rights for potential greenfield projects in Arkansas, Georgia, Iowa, Michigan and Nevada and other projects not related to Dynegy’s operating assets.

Dynegy said it continued to re-evaluate plans to build its Plum Point plant in Arkansas and Sandy Creek plant in Texas.