SPRINGFIELD, Illinois--(BUSINESS WIRE)--A bipartisan group of legislators from the Illinois General Assembly introduced a proposal to ensure the long-term adequate supply of electricity for Illinois’ downstate electricity market, which is the area primarily served by Ameren. The Downstate Illinois Competitive Generation Procurement and Reliability Security Act is in response to a request for assistance from the Midcontinent Independent System Operator, Inc. (MISO) to address electric reliability and price stability in the region.
Dynegy Inc. (NYSE:DYN) announced its support for the measure that will create a functioning capacity market in the service area through a subsidy-free, fuel-neutral competitive power auction run by the Illinois Power Agency, consistent with the MISO tariff that has been approved by the Federal Energy Regulatory Commission. Capacity payments are used in many parts of the U.S. to ensure that power generators are ready to run when needed to meet customer demand.
In downstate Illinois, approximately 20% of power generation has shut down in the past two years, with more at risk due to the lack of a functioning capacity market. Failing to act in a prompt manner could have further negative ramifications for downstate Illinois and its customers, including:
- Ongoing power plant closures, including up to another 30% percent of the total downstate resources over the next three years, due to an inability to cover operating costs; and
- Higher electricity bills – estimated increase of $23 per month as a result of plant closures and related shortage pricing.
“Illinois legislators have a great opportunity to ensure that downstate residents and businesses have competitively priced, reliable electricity,” said Robert C. Flexon, Dynegy President & Chief Executive Officer. “Under the status quo, the viability of existing plants that are fully environmentally compliant is threatened, as are thousands of local jobs and support functions. This legislative proposal would help safeguard our downstate plants without the use of subsidies, while encouraging investment in all sources of power supply – including conventional generation, demand response and renewables.”
John Johnson, Business Manager and Financial Secretary for IBEW Local 51, added, “The bill will level the playing field for the generating plants across Illinois and the Midwest, allowing our members the chance to compete. It will also stimulate investment when needed, and protect consumers from the high scarcity pricing that will result if otherwise cost-effective generators shut down. The IBEW stands ready to work with the General Assembly, Dynegy, and other stakeholders on this solution to protect downstate generation, jobs, consumers and reliability.”
In the Illinois Senate, SB2250 was co-sponsored by Senate Majority Leader James F. Clayborne, Jr. (D-Belleville) and Senator Sue Rezin (R-Morris). In the Illinois House, HB4141 was co-sponsored by Representative Linda Chapa LaVia (D-Aurora), Representative Avery Bourne (R-Raymond) and Representative Elgie Sims (D-Chicago). Committee hearings are expected on the legislation in the coming months.
At Dynegy, we generate more than just power for our customers. We are committed to being a leader in the electricity sector. Throughout the Northeast, Mid-Atlantic, Midwest and Texas, Dynegy operates power generating facilities capable of producing 27,000 megawatts of electricity – or enough energy to power nearly 22 million American homes. We’re proud of what we do, but it’s about much more than just output. We’re always striving to generate power safely and responsibly for our wholesale and retail electricity customers who depend on that energy to grow and thrive.
In Illinois, Dynegy employs more than 1,200 people. The Company adds to the Illinois economy through an annual payroll of more than $600 million, $20 million in annual property taxes and supports 8,000 indirect jobs across the state from work done at the plants.
This news 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 expectations and beliefs regarding the proposed legislation, including safeguarding of downstate plants without use of subsidies and encouraging investments in all sources of power supply; beliefs and assumptions about the downstate Illinois power generation markets, including ramifications for its customers, existing plants and local jobs and support functions; and Dynegy’s anticipated responses from Illinois legislators and labor leaders. 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 (SEC). Specifically, Dynegy makes reference to, and incorporates herein by reference, the section entitled “Risk Factors” in its 2016 Form 10-K and subsequent Form 10-Qs. 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.