AP NEWS
Related topics

Dynegy Inc. Fires 6, Disciplines 7

October 18, 2002

%mlink(STRY:; PHOTO:; AUDIO:%)

HOUSTON (AP) _ Dynegy Inc. fired six employees Friday and said it would discipline seven others for previously announced violations of company policies regarding its natural gas trading business.

The punishment stemmed from the company’s Sept. 24 revelation that some workers in its marketing and trading business provided inaccurate trading information to publications that compile and report index prices.

Company spokesman John Sousa said Dynegy would not identify the workers or provide specifics on discipline that will be meted out.

In a release issued after the end of trading on the New York Stock Exchange Friday, Dynegy said the moves came as a result of a continuing investigation by the audit committee of Dynegy’s board of directors and independent counsel.

``It is our practice to investigate any possible violation fully and take the appropriate corrective actions to maintain the integrity of our workplace,″ said Dan Dienstbier, Dynegy’s chairman and interim chief executive officer.

Dynegy’s internal review of its trading activities is being conducted as part of a Commodity Futures Trading Commission probe. Dynegy previously has fired a corporate compliance officer because of information gleaned from the investigations.

Now, Dynegy’s chief risk officer verifies all price information to industry publications.

Dynegy recently announced it plans to exit the energy marketing and trading business, though officials clarified Friday that it would continue trading its own physical assets. It simply no longer will act as a middleman.

Dynegy shares fell a penny to close at 78 cents Friday.