Dynegy Inc. (NYSE: DYN) said June 9 that it has executed agreements with PJM Interconnection and the Midcontinent Independent System Operator (MISO) to move the vast majority of Dynegy’s Hennepin Power Station energy and capacity to the PJM market from MISO.
The five-year transmission service agreements – which require no upfront investment, only modest annual fees associated with transporting power into PJM – may be extended indefinitely at Dynegy’s request and are a result of three years of effort to procure transmission service out of MISO. Per the agreement, 260 MW of Hennepin’s 290-MW capacity will be available for sale into PJM effective June 1, 2017.
The pathway to PJM is consistent with Dynegy’s overall objective of moving all of the company’s Illinois generating assets from MISO to PJM. PJM, which northern Illinois is already part of, is designed for competitive generating assets and not a regulated utility framework as is MISO, the company explained. Last month, Dynegy proposed legislation to position all of Illinois into the PJM market. Dynegy will continue to explore similar paths for its remaining plants in MISO while it waits for any action on its proposed legislation.
With nearly 26,000 MW of power generation capacity and two retail electricity companies, Dynegy is capable of supplying 21 million homes with safe, reliable and economic energy.