By Timothy Cama - 08/22/14 03:25 PM EDT
Dynegy Inc. announced Friday it would spend $6.25 billion to nearly double its electricity generating capacity through power plant deals with Duke Energy Corp. and Energy Capital Partners.
Dynegy will buy 11 power plants and a retail business from Duke for $2.8 billion in cash, Bloomberg News reported. It will also spend $3.45 billion in cash and stock for units from Energy Capital, a private equity firm.
“The combined portfolio will now have approximately 60 percent of total megawatts located in these two markets as compared with Dynegy’s 18 percent today,” Robert Flexon, Dynegy’s chief executive officer, told reporters in a conference call, Bloomberg reported.
Dynegy will own about 26,000 megawatts of generating capacity after the deals, moving it near the second-largest owner of power plants in the country, Calpine Corp.