Dynegy Inc. (NYSE:DYN) has announced that it is in support of a newly proposed legislation that seeks to make sure that the downstate electricity market in Illinois has adequate electricity supply.
The Downstate Illinois area is mainly served by Ameren. The Downstate Illinois Competitive Generation Procurement and Reliability Security Act was passed by legislators after Midcontinent Independent System Operator, Inc. made a request for the electricity reliability and stable prices to be addressed. Dynegy has announced that it will support the legislation which aims at developing a functioning capacity market in the area. This will be made possible through a fuel-neutral competitive power auction that is free of subsidy.
The power auction will be handled by the Illinois Power Agency in line with the MISO tariff which has already received approval from Federal Energy Regulatory Commission. The electricity market uses capacity payments in many places in the U.S to make sure that power generators are on standby in case the power demand by customers goes up. Roughly 20 percent of the power generation in Downstate Illinois has been shut down over the past two years as a result of the unavailability of a functioning capacity market.
“Illinois legislators have a great opportunity to ensure that downstate residents and businesses have competitively priced, reliable electricity,” stated Dynegy’s president and CEO, Robert C. Flexon.
Flexon stated that the currently existing plans are currently under a threat despite fully complying with environmental regulations. This also means that a lot of jobs, as well as support functions, are also in danger. His company believes that the new legislation will work towards protecting the downstate plants sans subsidies. This will also encourage investments in all power supply sources.
IBEW Local 51’s Financial Secretary and Business Manager John Johnson stated that the new legislation will foster a level playing field for all the power generating plants located in Illinois as well as the Midwest. This will give the members of the IBEW Local 51 a chance to compete fairly while stimulating investment when required.
Dynegy stock closed the latest trading session on Thursday at $11.18 after a 3.71 percent gain.