Article: United States: Dynegy to Unwind Power Plant Venture.

Byline: prashant03

Closely held power-generation company LS Power Associates L.P. is expected to announce Monday it will buy nine U.S. power plants from one-time development partner Dynegy Inc.

LS Power will pay about $1 billion and return nearly $500 million in shares to Houston-based Dynegy, people familiar with the matter said.

The deal effectively unwinds a 2006 joint venture that was supposed to create the country's largest new developer of coal-fired power plants.

Over the past year, the recession has shrunk both the country's power-generating needs and developers' financial wherewithal to build plants. Dynegy, a wholesale power ...

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