New York Poised to Close Last Coal-fire Power Plant

LCG, December 4, 2019--The last operating coal-fired power plant in New York is moving toward closure shortly. Last month, Somerset Operating Company, a subsidiary of Riesling Power LLC, submitted a request to the New York State Public Service Commission (NYSPSC) to waive the state's required, 180-day notice to close the Somerset Station, allowing the facility to be retired on February 15, 2020. Closure is contingent on approvals by both NYSPSC and the New York Independent System Operator (NYISO), which will evaluate if it will cause an adverse effect on grid reliability.

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Construction Commences on Enel’s Aurora Wind Farm in North Dakota

Enel Green Power North America, Inc. (“EGPNA”), the US renewable energy company of the Enel Group, has started construction of the 299-MW Aurora Wind Farm in North Dakota.

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Industry News

Dynegy to Buy Enron; No Job for Lay

LCG, Nov. 12, 2001--Enron Corp. agreed on Friday to be bought out by the much smaller Dynegy Inc. for about $9 billion in stock, and that fire sale price of around $10.41 a share reflects a fat premium over Enron's Friday closing price of $8.63 on the New York Stock Exchange.

ChevronTexaco Corp., which owns a 27 percent interest in Dynegy, will provide $2.5 billion in new equity in Dynegy to back the deal, the companies said.

Enron chief executive Kenneth Lay said the move was agreed to reluctantly. He had hoped his company, which he helped build from a mid-level natural gas pipeline into a corporate powerhouse, could find its own way out of its problems, but said the daily doses of negative news proved too much.

"It has been a fairly consistent barrage of really negative articles and it's been very tough to beat those back," said Lay, who will not have a role in management of the combined companies.

Enron's reported revenues of $100 billion for the year 2000 dwarf Dynegy's reported $29 billion, but the smaller company may be using money with more substance, and Enron's figures could more accurately reflect trading volume and not sales of something it owned.

Enron earned only $1 billion in 2000 -- a paltry one cent on the dollar of what it reported as revenues. Dynegy earned a half-billion, a return of 1.7 percent.

Chuck Watson, chairman and chief executive of Dynegy, said Enron was subjected to the most searching scrutiny before the offer was made. "We looked under the hood and guess what? It's just as strong as we thought it was," he said.

Enron was riding high earlier in the year, with its stock trading in the low $80s, but revelations about mysterious partnerships and "off-balance-sheet" transactions sent it into a power dive from which it never recovered.

"Off-balance-sheet financing is a nice, gentlemanly label given to misrepresentation," said Shyam Sunder, a Yale University accounting professor.

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