A coal giant rethinks coal(Read article summary)
Battered by the financial crisis and under pressure from environmental groups, the Houston-based energy giant Dynegy announced that it is abandoning plans to construct six coal-fired power plants.
Battered by the financial crisis and under pressure from the Sierra Club and other environmental groups, the Houston-based energy giant Dynegy announced that it is abandoning plans to construct six coal-fired power plants.
The company announced that it would be dissolving the 50-50 joint venture with LS Power, a New York-based energy company. That venture, launched in 2007, sought to build coal-fired plants in Arkansas, Georgia, Iowa, Michigan, Nevada, and Texas.
But now it's not going to happen. Here's what Dynegy's CEO said in a press 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."