Dynergy officials were optimistic, citing “capital allocation flexibility” as part of the equation. “The acquisition of AER is expected to create significant value for Dynegy by building upon our existing scale in one of our key markets,” said Dynergy CEO Robert C. Flexon. “AEM also brings to Dynegy an established retail business with significant scale that complements both portfolios.”
AEM has established marketing and retail businesses providing 15 million Mw annually to municipalities and commercial and industrial customers. Homefield Energy retail, meanwhile, serves 500,000 homes and small businesses in Illinois.
Dynegy’s power generation consists of approximately 6,771 Mw of natural gas-fired intermediate and peaking power generation facilities and 2,980 MW of largely coal-fired baseload power plants.