August 1, 2008
Dynegy Announces Completion of Sale of Rolling Hills Peaking Plant
Dynegy Inc. (NYSE:DYN) today announced that one of its subsidiaries has completed the sale of the Rolling Hills Power Generation Facility, a peaking plant located in Wilkesville, Ohio, to a company managed by Tenaska Capital Management, LLC for $368 million in cash. The sale equates to more than $450 per kilowatt based on the plant's summer capacity rating. Dynegy expects to record a gain on the sale of Rolling Hills of approximately $50 million, subject to adjustments for working capital and other items, in the third quarter 2008.
The Rolling Hills plant (815-megawatt summer capacity rating) is a natural gas-fired peaking facility that began commercial operation in 2003.
Certain statements included in this news release are intended as "forward-looking statements." These statements include assumptions, expectations, predictions, intentions or beliefs about future events, particularly the statements related to: the timing of this action or the recording of any gains. Dynegy cautions that actual future results may vary materially from those expressed or implied in any forward-looking statements. Specifically, Dynegy cautions that the transaction may not prove to be financially advantageous to Dynegy as a result of unknown market conditions, when the gains may actually be recorded and in what amounts. More information about the risks and uncertainties relating to these forward-looking statements are found in Dynegy's SEC filings, including its Annual Report on Form 10-K for the year ended December 31, 2007 and its quarterly report on Form 10-Q, as amended, for the quarter ended March 31, 2008, both of which are available free of charge on the SEC's web site at www.sec.gov.