Dynegy to Shut Down Oakwood Power Generation Facility
Energy company Dynegy will be closing its Vermilion Power facility near Oakwood by the end of March.
Company spokesman David Byford said mothballing the more than 50-year old facility largely comes down to economics.
"We have higher fuel costs at Vermilion because the plant is not located on a rail line," Byford said. "And that would be coupled with market conditions that would include reduced power demand and lower power prices that don't favor continued operations."
During a year-long review, Byford said company heads looked at options for the plant, including alternative fuel supply arrangements. But he said the price of fuel for supplying the plant with its coal also proved to be too much.
"We took a year exploring numerous options for the plant that included looking at alternative fuel supply arrangements," Byford said. "But in the end, we're still faced with poor plant economics."
Byford said the plant is no longer being used all the time, and he said a regional power grid ensures a reliable power supply to the area. The precise closure date for the plant is not known, but it is expected near the end of the first quarter of 2011. The company said the next step is for Dynegy to develop plans for suspending operations in a safe and reliable manner. The plant has about 50 employees, and Byford said it is not yet known whether they will be offered jobs elsewhere in the company.