Dynegy Inc. (NYSE:DYN) recently notified the Illinois Pollution Control Board (IPCB) of its plans to end the dual variance relating to sulfur dioxide annual emission rate limits. Of the company’s various power stations, Newton Power Station unit 2 will be the most heavily affected by the move.

Dynegy said that its intention is to retire Newton 2 no later than September 2, adding that doing so would enable it to continue complying with sulfur dioxide limits as spelled out in the Illinois Multi-Pollutant Standard (MPS). By coming into compliance with sulfur dioxide limits in MPS, the company says it will no longer need the variance.

Scrubber construction

As Dynegy retires sulfur dioxide, it has also decided to terminate its scrubber construction project at Newton. The original variance hinged on allowing conditions in the energy market to improve to a level that requires building a scrubber. However, the company says that it won’t be possible to recover basic operating costs relating to the Newton facility.

Keep in mind that the variance in question was initially granted in November 2013 and it related to the purchase of a number of power stations by Dynegy’s subsidiary IPH, LLC. The power stations are at Edward, Joppa, Duck Creek, Coffeen and Newton.

Dynegy says IPH has complied with conditions of the variance and those include the retirement of Edwards unit 1. The facility was retired on January 1, 2016. Additionally, it turns out that IPH has continued to operate within the sulfur dioxide limit as set out in MPS during 2016.

Dynegy’s IPH says it feels grateful for the support of its employees, union members, business owners, citizens and local officials because they enabled it to obtain the variance. The subsidiary acknowledged that the support has enabled it to play a major role in providing a positive economic impact to communities in Illinois.