Follow the (energy) Money

Dynegy, Inc., the Houston-based company that produces and sells power in the form of coal, natural gas and fuel oil to utilities and other energy companies in 13 states, announced it’s ending the joint partnership to develop coal powered plants with LS Power Associates. The reason? Increased “barriers …, including external credit and regulatory factors.”
Their ownership rights to potential new coal projects will be acquired by US Power, including projects in Arkansas, Georgia, Iowa, Michigan and Nevada.

These coal-fired projects have received increasing pressure from environmental groups regarding carbon emissions, coal producing significantly higher CO2 emissions than other fossil fuels.

Dynegy retains minority ownership of 2 coal projects in their joint venture that are still under construction – the Plum Point plant in Arkansas and Sandy Creek plant in Texas. Dynegy says they’ll reevaluate their ownership status.

US Power, based in New York, holds approximately 40 percent of Dynegy shares.

Appealing the invalidation of the co-venture’s permit in Georgia to build the 1,200 MW coal-fired Longleaf plant, US Power plans to move ahead with this and other coal related ventures, despite losing Dynegy’s partnership.

Perhaps tougher regulations and a difficult economy will do what growing popular sentiment hasn’t been able to – dry up the funding and score another one for the environment.

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