Dynegy has deal to put part of Hennepin coal plant output into PJM market

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.

About Barry Cassell 20414 Articles
Barry Cassell is Chief Analyst for GenerationHub covering coal and emission controls issues, projects and policy. He has covered the coal and power generation industry for more than 24 years, beginning in November 2011 at GenerationHub and prior to that as editor of SNL Energy’s Coal Report. He was formerly with Coal Outlook for 15 years as the publication’s editor and contributing writer, and prior to that he was editor of Coal & Synfuels Technology and associate editor of The Energy Report. He has a bachelor’s degree from Central Michigan University.