Dynegy to shutdown power plants in US after failure to recover costs

5 May 2016 (Last Updated May 5th, 2016 18:30)

US electric utility company Dynegy has planned to close more than 1,800MW at three of its coal-fuelled units in Illinois.

US electric utility company Dynegy has planned to close more than 1,800MW at three of its coal-fuelled units in Illinois.

The company aims to shutdown units one and three at Baldwin Power Station, as well as unit two at Dynegy's Newton Power Station.

Decisions were made by the electric utility company after the facilities failed to recover basic operating costs at the recent Midwestern US power grid's (MISO) capacity auction.

The economic impact study by Development Strategies in 2014 revealed that Newton and Baldwin had together generated around 4,000 direct and indirect jobs, as well as $1bn per annum in economic activity for the region.

"Decisions were made by the electric utility company after the facilities failed to recover basic operating costs."

Newton is responsible for $5m in property taxes, while Baldwin pays $4.8m every year.

Dynegy chief executive officer Robert C. Flexon said: "This is a difficult decision, and we don't take it lightly.

"For 40 years, the employees of the Baldwin and Newton Power Stations have generated reliable and affordable power for the people of Illinois.

"The men and women of these stations, just like the Wood River employees, have proudly and professionally served and safely operated these facilities for decades while contributing greatly to their communities."

Operations are expected to be shutdown at Newton unit two in September this year, while Baldwin's unit one will be closed in October and unit three in March next year.