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Exhibit 99.2
Aug. 8, 2000
Media: John Sousa
(713) 507-3936
Analyst: Margaret Nollen
(713) 767-8707
DYNEGY EXPANDS POWER PRESENCE INTO NORTHEAST
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Accretive New York Generation Acquisition Provides
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Access to Key Markets, Multiple Fuel Capabilities
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HOUSTON (Aug. 8, 2000) - Dynegy Inc. (NYSE: DYN) today announced a major
expansion of its energy convergence business into the Northeast with the
execution of a definitive agreement to acquire 1,700 megawatts (MW) of power
generation facilities for $903 million. The facilities include the Danskammer
Power Plant, a multi-fueled 500-MW power generating station owned by Central
Hudson Gas & Electric Corp., and the Roseton Power Plant, a combination fuel
oil- and natural gas-fired 1,200-MW power generating station jointly owned by
Central Hudson (35 percent ownership), Consolidated Edison Company of New York,
Inc. (40 percent) and Niagara Mohawk Power Corp. (25 percent). Both facilities
are located in Newburgh, N.Y., approximately 50 miles north of New York City.
The transaction is subject to approvals from the Federal Trade Commission,
the Federal Energy Regulatory Commission and the New York Public Service
Commission. It is expected to close during the first quarter of 2001.
"This purchase clearly aligns with and advances our long-term energy
convergence strategy to expand our energy portfolio in geographically diverse
regions of the country through the acquisition of clean, safe and affordable
unregulated generation assets," said Chuck Watson,
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DYNEGY EXPANDS POWER PRESENCE INTO NORTHEAST
2-2-2-2-2
chairman and chief executive officer of Dynegy Inc. "In addition, the
acquisition will be accretive to 2001 earnings and beyond."
The power plants are a combination of baseload and intermediate generation
facilities with multiple fuel source capabilities. The Danskammer Power Plant
uses natural gas, fuel oil or coal, while the Roseton Power Plant is capable of
using fuel oil and natural gas, either as a single fuel source or
simultaneously. The 380-acre site where the two facilities are located has
several fuel access points, including four interstate gas transmission systems,
rail and barge delivery for coal and terminal delivery for fuel oil.
According to Steve Bergstrom, president and chief operating officer of
Dynegy Inc., "The power plants are on the preferred eastern side of the New York
Central transmission system, a factor that will enable us to deliver power to
wholesale customers in both the PJM and NEPOOL markets. The multiple fuel
sources will give us the ability to utilize our marketing, trading and arbitrage
capabilities to create additional value from the cross-commodity opportunities."
In conjunction with the transaction, Dynegy will enter into a transition
power agreement through which it will supply a portion of the power generated at
the facilities to Central Hudson for more than three years.
It is expected that Dynegy will finance the transaction with a combination
of project and corporate debt. Banc of America Securities LLC acted as
financial advisor to Dynegy.
Dynegy Inc. is one of the country's leading energy merchants. Through its
leadership position in energy marketing, power generation, transportation,
gathering and processing, the company provides energy solutions to its customers
primarily in North America, the United Kingdom and Europe.
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For more information about Dynegy please visit its web site at www.dynegy.com.
