Eastern Railroad Discussion > OT: Ohio energy plants are swapping owners

American Electric Power and Dynegy are simplifying ownership of several jointly owned coal fired electric plants, according to SeekingAlpha. This comes as the utility confirms Killen Plant and Stuart Plant in southern Ohio are likely to close in 2018. AEP will become the owner of Conesville Plant, while Dynegy becomes the owner of Zimmer. Each company company currently operates their plant, with the other as a minority owner. I believe Conesville is rail-served, don't know about Zimmer.

The traditional arrangement had one utility owning 25% or 35% and managing the plant. Another utility would buy another 25%, and agree to share electricity and expenses. A third, fourth, fifth utility would own remaining pieces. This allows the risk of a massive failure to be spread among several strong holders, and allows each utility to carry a share of the bond risk.

 

I suppose that ownership simplification like this also stremlines the shutdown process, if that is to take place in the future.

march_hare Wrote:
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> I suppose that ownership simplification like this
> also stremlines the shutdown process, if that is
> to take place in the future.

I believe AEP and Dynegy also swap bond, etc obligations attributable to each plant, settle up post retirement and pension accruals, etc. That would indeed simplify a subsequent shut down, or sale to a third party. 

Conesville served by the Ohio Central...

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So now, who do the readers blame this on? Obama's enviornmental concerns, Trump because he is in office now, or the fact that the facilities (at least Conesville) are small and at the end of their useful economic life? Please let the miners in WV know, who think Trump can bring back the Appalacian coal consumption. They are only 100-200 rail miles away. 

Seems you are the only reader that felt this has any political undertones...


JLinDE Wrote:
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> So now, who do the readers blame this on? Obama's
> enviornmental concerns, Trump because he is in
> office now, or the fact that the facilities (at
> least Conesville) are small and at the end of
> their useful economic life? Please let the miners
> in WV know, who think Trump can bring back the
> Appalacian coal consumption. They are only 100-200
> rail miles away.