Source: Dynegy Inc.
Dynegy’s (NYSE: DYN) gas-fired Morro Bay power plant continues to provide Californians with safe, reliable and environmentally compliant electricity. Until recently, output from the facility was under contract to a local utility. That contract was cancelled in mid-May and the cancellation will likely result in a shift of earnings and cash flows between periods.
Dynegy is actively seeking other commercial arrangements for the power plant and has been offering the facility’s output in the day-ahead market administered by the California Independent System Operator since May 19, 2012. Dynegy will continue to respond to requests for offers from California utilities seeking to procure electric capacity needed to serve their customers.
While Dynegy has been successful in winning contracts through this resource adequacy process in the past, Dynegy believes that a more forward-looking, transparent, market-based solution to securing electric supply would benefit consumers, utilities and independent generators. Dynegy has no plans to retire the facility at this time, and as long as the plant is economically viable, Dynegy will continue to operate it.
Morro Bay is a 650-megawatt natural gas-fired peaking power plant located in Morro Bay, California.