Dynegy pulls out of coal-fired power plant partnership
Today Dynegy announced the dissolution of its partnership with LS Energy, formed in 2006. The goal of the partnership was the construction of up to eight new coal-fired power plants — as part of its dissolution, Dynegy has abandoned plans for six of the eight.
Here’s the key bit from the release:
"The development landscape has changed significantly since we agreed to enter into the development joint venture with LS Power in the fall of 2006," said Bruce A. Williamson, Chairman, President and Chief Executive Officer of Dynegy Inc. "Today, the development of new generation is increasingly marked by barriers to entry including external credit and regulatory factors that make development much more uncertain. In light of these market circumstances, Dynegy has elected to focus development activities and investments around our own portfolio where we control the option to develop and can manage the costs being incurred more closely."
One of those "factors" that has made the development of new (coal) generation "uncertain" is called grassroots organizing. Along with its nonprofit partners, the Sierra Club organized a campaign targeting Dynegy, with protests and rallies that drew unwelcome attention to its plans.
Another little piece of good news in the anti-coal fight.