HOUSTON--(BUSINESS WIRE)--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.
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.