Dive Brief:
- Dynegy sees an attractive market for coal generation in PJM Interconnection, and would like to expand its fleet in Ohio where abundant shale supplies also create opportunities.
- CEO Bob Flexon recently said the company is looking to exit the California market, where the renewables-heavy state does not appear to value coal.
- Columbus Business First reports that Dynegy would like to expand its holdings in the Buckeye State, and would be interested in purchasing AEP's plants if they were on the market.
Dive Insight:
Bloomberg reported earlier this week that Dynegy plans to exit the California market, saying that "it’s not worth putting money into" the state. But while the company has no firm exit strategy, it seems to have a better idea of where it would shift its focus to next.
CEO Flexon told Columbus Business First the PJM Market effectively prices coal generation, and Ohio would be a good target for expanding its fleet. Should AEP's power plants be put on the market — which CBF reoprts is likely — then Dynegy could be a likely buyer.
Earlier this year Dynegy officials were lobbying against AEP's proposal to guarantee profits for its generation fleet in the state.
The company is certainly strong on PJM. It purchased Duke's generation fleet this year for $2.8 billion, including 11 midwest plants most of which were in Ohio. And last month Flexon also said the Midcontinent ISO does not value its coal fleet, which faces pressure in Illinois.
"Under the current [market] construct, we do not belong there [MISO]. It does not value coal generation," Dynegy CEO Robert Flexon told stakeholders last month.
