Thursday, January 8

The Plant is Dead, Long Live the Coal-Fired Power Plant?

The coal-fired power plant planned for Waterloo, IA has been put on hold, but is it a permanent hold or just until the economic climate gets better? Thanks to the efforts of activist groups like Sierra Club and local grassroots efforts, Dynergy and LS Power have called off their joint venture which would have included the Waterloo plant. Bruce Williamson, chairman, president and chief executive officer of Dynegy Inc., said in a statement on 1/2/09 “Today, the development of new generation is increasingly marked by barriers to entry including external credit and regulatory factors that make development much more uncertain."

This climate may not change in the near future, however, the Houston Business Journal reports that "LS Power will acquire full ownership and developmental rights associated with various “greenfield” projects under consideration in Arkansas, Georgia, Iowa, Michigan and Nevada, as well as other power generation and transmission development projects not related to Dynegy’s existing operating portfolio of assets. It will also receive about $19 million in cash during the first quarter for assets exchanged." While it appears for the forseeable future that the plant is off-line, it may be too soon to call the project entirely D.O.A. and meanwhile, there is still the matter of the plant in Marshalltown.

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