Monday, January 05, 2009

Financial Support for Waterloo Coal Plant Fizzles

Over the weekend, desmoinesdem at Bleeding Heartland posted that a financial partner backed out on the proposed coal-fired power plant in Waterloo.

From the Waterloo-Cedar Falls Courier...

The future of a proposed coal-fired power plant near Waterloo became a little cloudier Friday when Texas-based Dynegy Inc. announced that it and New Jersey-based LS Power Associates were dissolving their joint venture to develop that plant and others in several states.

The move transfers to LS Power full ownership and developmental rights associated with various "greenfield" projects in several states, including the 750-megawatt Elk Run Energy Station proposed for construction northeast of Waterloo.


Separation from Dynegy puts the Elk Run plans in doubt, said Don Shatzer, a member of Community Energy Solutions, which opposes the Elk Run Energy project.

"LS Power has no experience developing/operating coal plants and so is unlikely to proceed (without) a new partner," Shatzer said in an e-mail note.

According to Bleeding Heartland, Dynegy's stock shot up 19 percent in one day after they pulled out of the joint venture with LS Power.

I am not sure exactly sure about the plans for the proposed coal-fired power plant in Marshalltown. The DNR was supposed to hear public comments about coal plant in September, but that hasn't happened yet. I have heard that the flooding over the summer might have something to do with that, but I also heard Alliant's investors aren't exactly in a hurry to continue the permit process.

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