Tuesday February 1, 2005

Sithe Independence Station Changes Hands Again

Dynegy invests over $1 billion in acquisition of Sithe Energies
By Chris Motola

    Sithe Independence Station is changing hands again, this time to Houston-based energy company Dynegy Inc.

    Dynegy wrapped up three months of negotiations with Excelon Corporation and governmental regulators Tuesday to purchase all capital stock of ExRes SHC, the parent company of Sithe Energies, Inc. and Sithe Independence, L.P. The financial terms of the agreement include the payment by Dynegy of $135 million in cash and the consolidation of $919 million in project debt that will be funded largely through 2014 by a capacity sales contract with New York City-region utility Con Edison.

    While Dynegy has acquired the entire Sithe generation fleet, Dynegy Power Generation President Alec Dreyer said the 1,021-megawatt Independence Station near Scriba was one of the most attractive generation facilities his company gained from the purchase. ?It?s one of the premier plants in the United States,? he said, lauding the facility?s efficiency and management.

    Dreyer said Dynegy had no plans to make ?any material changes? at the plant or to alter the size of its 44-employee work force. Bill Fernandez will retain his position as General Manager of the facility. The Sithe name will also be retained.

    Dreyer did allude, however, to the possibility of growth at the facility, referencing the rapid growth of and investment in the company?s other recent acquisitions.

    Dreyer explained the strategic importance of his company?s strengthening presence in New York?s deregulated energy market, in which energy producers sell electricity to the New York Independent System Operator (NYISO) which in turn sells the power to regional utilities like Niagara Mohawk and Con Edison. Since New York has seen a relatively small level of growth in its number of power generation facilities, Dynegy estimates the power reserve margins in the state will reach what it considers a favorable balance of production to consumption within three to five years. By comparison the Southeast, which has experienced far more rapid growth, is not expected to reach those levels for a decade or more.

    Dynegy owns 30 generation plants in 12 states. Collectively the plants have a capacity of 13,000 megawatts.

Oswego County Business Magazine
Issue 164

Issue 164
October/November 2019

Cover Story

  • Cruse Control
  • Jeff Cruse takes over as top leader for Novelis’ Oswego Works

Profiles

Linda Eagan

On The Job

What type of marketing do you find most effective?

Success Stories

The Child Advocacy Center of Oswego County

My Turn

Why President Trump Won’t Admit Mistakes

Newsmakers

News Briefs on Local Businesses & Business People

Economic Trends

Oswego County IDA Recapitalizes Popular Loan Program

Last Page

Rodmon King