HOUSTON--(BUSINESS WIRE)--
Dynegy Inc. (DYN) today reported its results from the PJM capacity
auction for planning year 2018/19 and the transition auction for the
2016/17 delivery year. The 2018/2019 PJM capacity auction cleared the
Capacity Performance product (CP) at $165 per megawatt-day in the RTO
(unconstrained region), $215 per megawatt-day for the ComEd region, and
$225 per megawatt-day in the EMAAC region. The RTO base capacity product
cleared at $150 per megawatt-day.
Dynegy cleared 9,891 megawatts (MW), which includes 835 MW that will be
imported into PJM from the Company’s IPH segment assets located in MISO.
Capacity revenues associated with these clearing prices totals $653
million for planning year 2018/19. The below table lists Dynegy’s
cleared capacity for the 2018/2019 capacity auction by zones:
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Zone
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Megawatts
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RTO CP
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4,607
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COMED CP
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3,017
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EMAAC CP
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533
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RTO Base
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1,734
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TOTAL
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9,891
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The 2016/2017 transition auction cleared at $134 per megawatt-day.
Dynegy cleared and converted 6,542 MW from the existing base product to
the CP product. This includes 730 MW to be imported into PJM from the
Company’s IPH segment assets located in MISO. Based on this clearing
price and the remaining base capacity product, PJM Capacity revenues for
planning year 2016/17 total $434 million representing an increase of
$176 million over the previously cleared volumes. Results for the
2017/18 transition auction will be announced later this week. The
Company sells PJM capacity through its Retail business, and is
evaluating the potential impact the transition auctions may have on
existing Retail contracts, if any.
On August 6, 2015, the Company announced a $250 million open market
share repurchase program targeting completion in 2016. During August
2015, the Company acquired approximately five million shares at a
weighted average price of $25.36 for a total cost of $126 million under
this program.
ABOUT DYNEGY
We are committed to leadership in the electricity sector. With nearly
26,000 megawatts of power generation capacity and two retail electricity
companies, Dynegy is capable of supplying 21 million homes with safe,
reliable and economic energy. Homefield Energy and Dynegy Energy
Services are retail electricity providers serving businesses and
residents in Illinois, Ohio, and Pennsylvania.
FORWARD LOOKING STATEMENTS
This press release contains statements reflecting assumptions,
expectations, projections, intentions or beliefs about future events
that are intended as “forward-looking statements” particularly those
statements concerning the importing of MWs from the Company’s IPH
segment assets into PJM and the timing of announcement of the 2017/18
transition auction results. These statements are based on the current
expectations of Dynegy’s management discussion of risks and
uncertainties that could cause actual results to differ materially from
current projections, forecasts, estimates and expectations of Dynegy is
contained in Dynegy’s filings with the Securities and Exchange
Commission (the “SEC”). Specifically, Dynegy makes reference to, and
incorporates herein by reference, the section entitled “Risk Factors” in
its 2014 Form 10-K and subsequent Form 10-Qs. In addition to the risks
and uncertainties set forth in Dynegy’s SEC filings, the forward-looking
statements described in this press release could be affected by the
following, among other things, (i) Dynegy’s ability to import the
expected number of MWs into PJM; (ii) impact of Capacity Performance
product on Retail business; (iii) the industry may be subject to future
regulatory or legislative actions, including environmental, that could
adversely affect Dynegy; and (iv) Dynegy may be adversely affected by
other economic, business, and/or competitive factors. Any or all of
Dynegy’s forward-looking statements may turn out to be wrong. They can
be affected by inaccurate assumptions or by known or unknown risks,
uncertainties and other factors, many of which are beyond Dynegy’s
control.
View source version on businesswire.com: http://www.businesswire.com/news/home/20150908005822/en/