Dynegy to Build Network in L.A., Elsewhere

Dynegy Inc.’s telecommunications unit and closely held Telseon Inc. agreed to develop an 18-city fiber-optic network to carry data, telephone and Internet traffic within and among the largest U.S. cities. The companies plan to install the system immediately in Los Angeles, San Francisco, New York, Washington, Chicago, Dallas, Atlanta, Denver, Seattle and Miami. Dynegy’s investment in the project will be less than $75 million over two years, with not more than $40 million invested in the first year, spokeswoman Jennifer Rosser said. Investment the second year depends on demand levels, she said. The agreement will provide Dynegy with access to equipment that connects it with 85 other communication networks, the Houston-based company said. Dynegy, known more as a power generator and energy trader, buys and sells space on fiber-optic lines through its Dynegy Global Communications unit, which will develop and run the network with Telseon. Dynegy shares fell 90 cents to close at $54.99 on the NYSE.