The sale is subject to approval by various federal, state and permitting agencies, and is expected to close in the third quarter 2008. The Rolling Hills plant, with a 815MW summer capacity rating, is a natural gas-fired peaking facility that began commercial operation in 2003.
Bruce Williamson, chairman and CEO of Dynegy, said: The sale of the Rolling Hills peaker is another example of opportunistic execution to capture a strong net present value for our stockholders from assets which are not earning high returns today.
With a purchase price that equates to over $450 per kW for a simple cycle peaking asset, this transaction also underscores the underlying value of our diverse operating portfolio of baseload, intermediate and peaking assets across the fuel spectrum.
