Full Description

Dynegy Inc. (Dynegy), incorporated in 2007, is a holding company and conducts all of its business operations, through its subsidiaries. Dynegy is engaged in the production and sale of electric energy, capacity and ancillary services from its fleet of 27 operating power plants in 13 states totaling nearly 18,000 megawatt of generating capacity. Dynegy Holdings Inc. (DHI) is the Company’s wholly owned subsidiary. The segments of the Company include the Midwest segment (GEN-MW), the West segment (GEN-WE) and the Northeast segment (GEN-NE). Dynegy sells electric energy, capacity and ancillary services on a wholesale basis from its power generation facilities.

Midwest Segment

The Midwest fleet is comprised of 14 facilities located in Illinois (10), Michigan (one), Pennsylvania (one) and Kentucky (two), with a total capacity of 8,265 megawatt. As of December 31, 2008, its Midwest fleet operates within either the Midwest ISO (MISO) or the Pennsylvania-New Jersey-Maryland Interconnection (PJM). The MISO market includes all of Wisconsin and Michigan and portions of Ohio, Kentucky, Indiana, Illinois, Nebraska, Kansas, Missouri, Iowa, Minnesota, North Dakota, Montana and Manitoba, Canada. During the year ended December 31, 2008, the Company owned nine power generating facilities located in Illinois (eight) and Michigan (one), with an aggregate net generating capacity of 4,619 megawatt within MISO. The PJM market includes all or parts of Delaware, Illinois, Indiana, Kentucky, Maryland, Michigan, New Jersey, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia, and the District of Columbia. In 2008, Dynegy owned four generating facilities located in Illinois (two), Pennsylvania (one) and Kentucky (one) with an aggregate net generating capacity of 3,070 megawatt. The majority of power generated by these facilities is sold to wholesale customers in the PJM market.

West Segment

The West fleet consists of seven natural gas-fired power generation facilities, located in California (three), Arizona (two), Georgia (one) and Nevada (one), and one fuel oil-fired power generation facility, located in California, totaling 5,775 megawatt of electric generating capacity. In 2008, the Company owned four generating facilities in California with an aggregate net generating capacity of 4,050 megawatt within California Independent System Operator. In 2008, Dynegy owned two combined cycle generating facilities with an aggregate net generating capacity of 1,143 megawatt located within the Southwest region. In 2008, the Company owned one natural gas-fired peaking generation facilitiy in Georgia with an aggregate net generating capacity of 539 megawatt located in the Southeastern Electric Reliability Council (SERC) area.

Northeast Segment

The Northeast fleet consists of five facilities located in New York (three), Connecticut (one) and Maine (one), with a total capacity of 3,809 megawatt. Dynegy owns and operates the Independence, Bridgeport, Casco Bay and Danskammer Units 1 and 2 power generating facilities, and operates the Roseton and Danskammer Units 3 and 4 power generating facilities under long-term lease arrangements. In 2008, the Company operated three facilities with an aggregate net generating capacity of 2,742 megawatt within the New York Independent System Operator (NYISO) area. The Company also owned and operated two power generating facilities with an aggregate net generating capacity of 1,067 megawatt located within the ISO-NE area.