New York PSC Approves Ravenswood Energy Storage Project

LCG, October 18, 2019--The New York State Public Service Commission (PSC) yesterday approved construction of the largest battery storage facility in New York State history. The 316-MW Ravenswood Energy Storage Project will be built in Long Island City, Queens, New York and scheduled to be partially operational by March 2021.

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Xcel Energy, EVRAZ North America and Lightsource BP Announce 250-MW Solar Project in Colorado

LCG, October 1, 2019--Xcel Energy, EVRAZ North America and Lightsource BP announced Friday that they have reached a long-term agreement to develop a 240-MW solar facility in Colorado. Lightsource BP will finance, build, own and operate the Bighorn Solar project and sell all the electricity it generates to Xcel Energy under a long-term power purchase agreement (PPA). The project will be built on EVRAZ Rocky Mountain Steel property in Pueblo, making it the largest on-site solar facility dedicated to a single customer in the country.

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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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