The proposal for a new coal power plant in Early County Coal appears to be dead. Dynegy Inc., the Texas-based energy company that proposed what would’ve been Georgia’s first new coal power plant in 20 years, announced today that it has pulled out of the project.
From a company press release:
Dynegy Inc. (NYSE:DYN) today announced that it has entered into an agreement with LS Power Associates, L.P. to dissolve the two companies’ development joint venture. Under the terms of the dissolution, Dynegy will acquire exclusive rights, ownership and developmental control of all repowering or expansion opportunities related to its existing portfolio of operating assets. LS Power will acquire full ownership and developmental rights associated with various “greenfield” projects under consideration in Arkansas, Georgia, Iowa, Michigan and Nevada, as well as other power generation and transmission development projects not related to Dynegy’s existing operating portfolio of assets.
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.
Litigation over the proposed coal plant generated national headlines and new law when a Fulton County Superior Court Judge concluded Carbon Dioxide was regulated by the Clean Air Act. That decision remains on appeal before the Georgia Court of Appeals. It is unclear how the abandonment of the coal plant proposal will impact the pending litigation.