6 Planned Coal Power Plants Canceled- Stock Rose 19%

coal%20plant_small.jpgDynegy (NYSE:DYN), a large operator of natural gas and coal power plants canceled its joint development agreement with LS Power to build a fleet of new coal power plants. LS Power does maintain the right to build these plants on their own, but this is unlikely without involvement from Dynegy.
Dynegy also says it is “re-evaluating greenfield development options, as well as two projects under construction – Plum Point in Arkansas and Sandy Creek in Texas.” These projects are expected to be operational in 2010 and 2012.
“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.”

Dynegy stock values responded positively to the news, with a 19% gain on January 2, the day the announcement was made. Stock has gained another 10% in the last week.
The Sierra Club initiated a campaign to Clean Up Dynegy last February, which resulted in thousands of phone calls to the company. Investors attending Dynegy’s shareholder meeting last May were met by a sea of protesters from numerous organizations, including the Sierra Club, RAN, and Green America (formerly Co-op America). Inside the meeting, concerns were raised about the cost of carbon regulations to the company.
dirty-coal-hand_h200.jpg“Wall Street’s leading banks already understand that backing coal is becoming an increasingly expensive and risky proposition,” said Rebecca Tarbotton, director of Rainforest Action Network’s Global Finance Campaign. “Companies around the world are realizing that going green can be a boon both to the environment as well as their own bottom line. Dynegy needs to open its eyes and help move America toward a clean energy future.”
The business environment for the coal industry has changed tremendously from two years ago, when these plants were first planned. Additionally, several environmental organizations were very effective at pointing this out and making a compelling business case against continuing with construction of these plants. What originally looked like a huge year for Dynegy for expansion has proven otherwise.
“Dynegy — the company that was being called ‘the next King Coal’ for its extensive new power plant plans — has all but given up pursuit of that throne,” said Yochi Zakai of Green America. “2009 promises to be a landmark growth year for clean energy and with this development coal-fired power is one step closer to being mothballed once and for all in the U.S.”

Sarah Lozanova is a green copywriter and communications professional specializing in renewable energy and clean technology. She is a consultant for Sustainable Solutions Group and a regular contributor to environmental and energy publications and websites, including Mother Earth Living, Home Power, Earth911, and Green Builder. Her experience includes work with small-scale solar energy installations and utility-scale wind farms. She earned an MBA in sustainable management from the Presidio Graduate School and she resides in Belfast Cohousing & Ecovillage in Midcoast Maine.

7 responses

  1. We should be phasing out of the use of dirty coal power plants. Instead we should be focusing on Nuclear power–
    the only real clean energy source. Wind and solar at best could
    only supply a small fraction of our energy needs.

  2. We lived in the areas near Braidwood & Dresden. Friends of ours live in Braceville and the children out there are suffering too. Their teeth and jaws are separating and have to be wired shut by the 4th & 5th grades; it’s from radiation exposure. Not acceptable!

    We witnessed huge air releases from the Dresden plant and nobody seems interested in responding to these alarming issues in addition to all the serious potential homeland security threats from Route 6 to both I-55 and I-80. There is no routine policing for these areas and the trucking and rail industry doesn’t own up to any responsibility or accountability with regard to these life-altering-threatening and ending issues.

    We witnessed the radioactive gypsum piles finally being removed by Waste Management from the Olin property in Joliet. Had a state rep with me who yelled “get me out of here now” then said the debris is going into our air and water in and around the surrounding areas. He then told us that the people living in the Smiley subdivision and surrounding areas are “THE Canaries in the Coal Mines”. None of the clean up or the original mining did anything to provide protection for the employees, their families or the communities.

    Illinois wants to pursue the Olympics with the air quality numbers being near to that of Beijing? In the Will & Grundy County, areas: Joliet, Channahon, Elwood, Braidwood, Dresden, and Morris etc. it is extremly toxic. We’ve got scars on our skin from repeated toxic releases and rashes from the air and water. Kids and families are sick and dying and it’s the excuse of local officials that they can’t or won’t police any of these issues. Yet they pose for every photo op they get while taking money from these nuclear facilities.

    Those from the nuclear industry never seem to have issues promoting their interests but ask any of the CEOs, higher ups or even the regulators if they live near these plants and the answer is NO. Those who do work for these facilities such as the drivers who drive spent fuel it from location to location. only to have it refused and sent on their way; will or are and have been suffering and are dying tragically riddled with cancer.

    The nuclear industries reputation for skirting the law or stating “there aren’t any laws” pertaining to trillium releases etc. is a drop in the bucket of more bad ideas to come.

    For heads of this nuclear industry repeatedly taking time to raise money for cancer treatment centers and hosting fishing tournaments is an oxymoron. It would be funny if people weren’t suffering and dying. They pose for photo ops with politicians, it’ll never add up to enough to cover the cost of the loved ones lost trying to make a decent living.

    Bringing Olympics to this unsecured area with the ideas that it’s safe is asking for more trouble than what it’s worth. Any mistake either by human or otherwise can never be taken back. Talk about health-care issues? There should be a study preformed as to why all these families are sick and dying in and around these communities. Don’t’ throw any more of our hard earned money and dignity away. Would you want it in your back yard? How can our elected officials work so hard keep it out of the hands of other countries? Stop pushing our people to look at it as a serious economic answer, when the outcome is all risks and potential disasters. Too many lives have already been lost.

    Thank You for taking the time to look into these very real & true facts. Until everyone in the path of these nuclear notions are guaranteed a safe healthy outcome with no threats or ramifications of annihilation to: surrounding communities, employees and their families’ health, accidental-human error or terrible acts perpetuated in our country; stop wasting our money, time and lives. Prove that made in America means something to be proud of.

  3. Dynegy is proposing to build more coal-fired power plants than any other power company in the United States. Known in some regions of the U.S. as 'LS Power', Dynegy is currently proposing to build six new coal plants in the United States”.acnee

  4. I think we should use the coal we find underground with precaution because using plants for that we will end up at some point where we won't be able to turn back and that will be one of the things that I think we don't want.


  5. I think we should use the coal we find underground with precaution because using plants for that we will end up at some point where we won't be able to turn back and that will be one of the things that I think we don't want.


  6. Pingback: Loss of Rebecca Tarbotton Ripples Far Beyond Rainforest Action Network

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