In response to the exorbitant and counter-productive subsidies currently
under consideration for FirstEnergy and American Electric Power (AEP),
Dynegy (NYSE:DYN) announces two counter-proposals that it believes will
save Ohio consumers billions of dollars over the next eight years,
promote and protect Ohio jobs, aid in Ohio’s compliance with the Clean
Power Plan, and encourage consumer and business growth.
Dynegy’s first proposal saves Ohio consumers and businesses $5 billion
by providing the same amount of power promised under the FirstEnergy and
AEP power purchase agreements (PPAs) at lower prices, $2.5 billion each
in the FirstEnergy and AEP territories, over the 8-year term of the
proposed PPAs. The power provided by Dynegy will be generated by
Ohioans, at Ohio plants, for Ohioans. Dynegy owns approximately 5,400 MW
at 10 different sites in Ohio, more than FirstEnergy’s 5,300 MW, employs
hundreds of Ohio workers, and is the third largest retail electric
provider in the state. Furthermore, Dynegy’s power plants use the
region’s vast fuel supplies, including its abundant and clean natural
gas, providing further benefits to the state.
Alternatively, if the Public Utilities Commission of Ohio (PUCO) agrees
on paying the out of market rates as requested by FirstEnergy and AEP,
Dynegy believes that Ohioans should get something for their money. At
the proposed rates, Dynegy could replace the plants being subsidized
under the FirstEnergy and AEP PPAs by building 6,300 MW of new, clean
natural gas powered generation in Ohio, bringing new jobs to the state,
increasing economic activity and development, and providing reliability
and resource adequacy for decades. This new generation could power four
million Ohio homes and would use natural gas from Ohio’s plentiful
supply to meet the state’s electricity needs. Further, this investment
would help Ohio meet its obligations under the Clean Power Plan and
improve reliability rather than relying on assets staying around longer
than their useful life.
“If the PUCO and other elected officials in the state are interested in
protecting consumers’ and business’ long-term interests while ensuring
long-term reliability and price stability, then in lieu of accepting
FirstEnergy’s and AEP’s proposals for long term power purchase
agreements, the PUCO should adopt one of the alternate, superior
proposals Dynegy is putting forth,” said Robert C. Flexon, President and
CEO, Dynegy Inc. “The PUCO could also institute a request for proposal
process containing the same arrangements in the AEP and FirstEnergy PPA
proposals. Exelon’s recent proposal is also thoughtful, and Dynegy
agrees with Exelon that this process should be competitive.”
“We believe the counter-proposals are uniformly better for Ohio
consumers and businesses than the AEP and FirstEnergy PPAs, keeping and
creating jobs in the state that stimulate economic growth and
development rather than weakening Ohio’s competitive position. We ask
for serious consideration from the PUCO and Ohio elected and state
officials for our proposals,” added Flexon.
About Dynegy
We are committed to leadership in the electricity sector. With nearly
26,000 megawatts of power generation capacity and two retail electricity
companies, Dynegy is capable of supplying 21 million homes with safe,
reliable and economic energy. Homefield Energy and Dynegy Energy
Services are retail electricity providers serving businesses and
residents in Illinois, Ohio and Pennsylvania.
Forward Looking Statements
This press release contains statements reflecting assumptions,
expectations, projections, intentions or beliefs about future events
that are intended as “forward-looking statements” particularly those
statements concerning Dynegy’s beliefs and assumptions relating to the
currently considered subsidies for FirstEnergy and AEP; anticipated
future benefits and expectations of Dynegy’s counter-proposals; Dynegy’s
beliefs and assumptions about the PUCO and Ohio elected officials’
relationship with Ohio consumers and businesses; Dynegy’s proposed
investment in new, clean natural gas powered generation and benefits to
Ohio obligations under the Clean Power Plan; and Dynegy’s beliefs about
the PUCO’s proposal process. These statements are based on the
current expectations of Dynegy’s management discussion of risks and
uncertainties that could cause actual results to differ materially from
current projections, forecasts, estimates and expectations of Dynegy is
contained in Dynegy’s filings with the Securities and Exchange
Commission (the “SEC”). Specifically, Dynegy makes reference to, and
incorporates herein by reference, the section entitled “Risk Factors” in
its 2014 Form 10-K and subsequent Form 10-Qs. In addition to the risks
and uncertainties set forth in Dynegy’s SEC filings, the forward-looking
statements described in this press release could be affected by the
following, among other things, (i) the timing and anticipated benefits
of Dynegy’s counter-proposals; (ii) the industry may be subject to
future regulatory or legislative actions, including environmental, that
could adversely affect Dynegy; and (iii) Dynegy may be adversely
affected by other economic, business, and/or competitive factors. Any or
all of Dynegy’s forward-looking statements may turn out to be wrong.
They can be affected by inaccurate assumptions or by known or unknown
risks, uncertainties and other factors, many of which are beyond
Dynegy’s control.
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