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Dynegy says merger with LS Power now complete

Dynegy says merger with LS Power now complete

Power provider Dynegy Inc. said Monday it has completed its $4.1 billion (euro3.07 billion) acquisition of rival LS Power Group's generating capacity.
The announcement came four days after shareholders approved the deal.
"The LS Power transaction establishes Dynegy as a leader in the independent power producer sector and serves as a launching point for the pursuit of future growth initiatives," said Bruce A. Williamson, Dynegy chairman and chief executive officer.
Dynegy said it now has 31 facilities totaling nearly 20,000 megawatts of generating capacity primarily in the Midwest, West Coast and Northeast regions.
Williamson has said the deal will give Dynegy more stability in the volatile industry by providing greater diversity in both geography and the fuels used to generate electricity. He has said the combination will increase Dynegy's assets by 70 percent while boosting costs only 14 percent.
Some environmentalists, however, say the venture adds to global warming risks and to the urgency of Congress' consideration of climate policy to regulate carbon emissions from power plants and other sources.
In a report issued last week, investment research firm Innovest Strategic Value Advisors said if Dynegy moves forward with plans to develop eight coal-fired power plants, the entity would become the nation's largest developer of new coal generating capacity. The report, commissioned by the nonprofit National Environmental Trust, said the venture fundamentally changes Dynegy's fuel mix, which has relied heavily on natural gas.
The addition of eight coal plants would increase Dynegy's coal capacity by 26 percent and annual CO2 emissions by 200 percent.
But Dynegy spokesman David Byford has said plans for the eight plants are not complete, and the company also is considering clean-coal technology and alternative fuels.