Dynegy Offers Alternatives to FirstEnergy, AEP Ohio PPAs

 Dynegy Offers Alternatives to FirstEnergy, AEP Ohio PPAs

Dynegy (NYSE: DYN) says it can save Ohio residents billions in the coming years with an alternative to the power purchase agreements (PPAs) proposed by American Electric Power (NYSE: AEP) and FirstEnergy (NYSE: FE).

The Houston-based company says it can provide the same amount of power promised under the PPAs throughout the proposed eight-year term for about $5 billion less.

Dynegy says the power it provides will be generated by Ohioans at Ohio plants.  The company employs hundreds of workers at its 10 Ohio sites, which boast a total capacity of about 5,400 MW.

The Public Utilities Commission of Ohio (PUCO) is currently weighing proposals by FirstEnergy and AEP, which would have their Ohio utilities purchasing output from the companies' aging nuclear and coal-fired power plants, including Davis-Besse nuclear plant, W.H. Sammis coal plant and Conesville coal plant, and selling the capacity on the competitive market, resulting in a “slight increase in power prices” for ratepayers.

If PUCO agrees to the rate increase, Dynegy says it still has a better alternative to FirstEnergy and AEP.  It would replace those coal-fired units with 6,300 MW of new natural gas-fired generation, bringing in new jobs, increasing economic development and providing grid reliability.

Dynegy says the new gas-fired generation would also help Ohio meet its Clean Power Plan obligations.

“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,” said Robert Flexon, president and CEO of Dynegy.  “We ask for serious consideration from the PUCO and Ohio elected and state officials for our proposals."

PUCO is expected to vote on the proposals in early 2016.

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