Clean Energy News

Atlanta, Ga. – The first news of 2009 for coal plants sounded like a death knell, and that was music to the ears of many organizations working for new, clean, smart energy. On January 2, Dynegy, Inc., one of the nation’s main merchant coal energy producers, announced that it was pulling out of its agreement with New Jersey-based LS Power to build four coal-fired power plants. Dynegy says it will still try to build the two plants it has under construction in Arizona and Texas.

“This is good news for Georgia’s air and good news for the health of our children and grandchildren,” said Rebecca Watts Hull, program manger of Mothers & Others for Clean Air. “We will continue working to ensure that no more coal-fired power plants are built in Georgia.” An 850 megawatt coal plant is being proposed in Washington County, which would further deteriorate air quality in downwind areas that include Augusta, where air pollution levels have exceeded health-based air quality standards for particle pollution.

“This decision comes after years of hard work. Long hours put in by volunteers here in Early County and around the state show how bad this plant would be for our air and water,” said Bobby McLendon, President of Friends of the Chattahoochee. “We are deeply excited about this victory, and are hopeful that LS Power will also see the bad business decision that the plant represents. The financial risks and health repercussions from pollution are so great from the proposed Longleaf Plant, that it is not wise to build it.”

According to the Dynegy press release, “LS Power will receive approximately $19 million in cash during the first quarter 2009 to reflect the relative value of assets exchanged.” Moreover“[t]he 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."

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