Proposed coal plant hits snag

By Jim Cook

Published: January 5, 2009

Dynegy Inc. of Houston said Monday that it is pulling out of a development partnership with LS Power Associates of New Jersey, a venture that included a proposed coal-fired power plant in nearby Early County, Ga.

According to Dynegy, under the terms of the dissolution, Dynegy will acquire exclusive rights, ownership and developmental control of all repowering or expansion opportunities related to its existing portfolio of operating assets. LS Power will acquire full ownership and developmental rights associated with various “greenfield” projects under consideration in Arkansas, Georgia, Iowa, Michigan and Nevada—which includes the proposed plant in Early County, Ga.—as well as other power generation and transmission development projects not related to Dynegy’s existing operating portfolio of assets.

LS Power is currently locked in a court battle with the Sierra Club regarding the proposed coal plant. The company is appealing a decision by a Fulton County Superior Court judge that overturned the state environmental permit issued for the proposed plant. The case is now in the Georgia Court of Appeals.

Check the Eagle’s Web site Tuesday for more information, including comments from LS Power representatives.