PSEG Subsidiaries File Suit Against Dynegy

Roseton OL, LLC and Danskammer OL, LLC, indirect subsidiaries of Public Service Enterprise Group PEG, have filed suit against Dynegy Holdings Inc. in the Delaware Court of Chancery to halt DHI's proposed transfer of certain of its coal and natural gas power assets to new "bankruptcy remote" subsidiaries. The PSEG entities are owner-lessors of the Danskammer and Roseton electric generating facilities. The lessees are indirect subsidiaries of Dynegy, Inc. and Dynegy Holdings, LLC. DHI has guaranteed to the PSEG entities the obligations of the lessees under the leases. As of March 31, 2011, the PSEG Entities had a gross equity investment at risk in the Roseton and Danskammer leases of $270 million.