Combined Vistra-Dynegy must sell 1,281 MW, Texas PUC staff says

|About: Dynegy Inc. (DYN)|By:, SA News Editor

Vistra Energy (VST +2.2%) says it has a "pathway" to comply with demands by Texas regulators to divest at least 1,281 MW of generation to stay under a state-mandated cap of 20% of Electric Reliability Council of Texas installed capacity.

The Texas Public Utilities Commission staff's final recommendation filed Monday concludes that VST in a merger with Dynegy (DYN +2.4%) would own and control more than 20% of installed capacity deliverable in ERCOT, partly because DYN owns 820 MW of generation in the Eastern Interconnection "that are capable of delivering electricity to ERCOT," and "that capacity must be included in Luminant's market share calculation."

A VST spokesperson says the PUC staff recommendation "was an expected and required part of the process."

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