Three years ago Dynegy launched plans to partner with LS Power and become the largest new developer of coal-fired power plants.
Yesterday Dynegy officially terminated those plans, including selling its shares in a coal-fired power plant currently under construction.
Coal is again proving to be a bad investment. Dynegy announced yesterday that the company is essentially going to lose $100 million as it sells its portion of the Texas Sandy Creek coal plant back to LS Power. But they decided a $100 million loss was better than continuing to be involved in the expensive and risky project.
Dynegy is still trying to sell their stake in the Arkansas Plum Point coal plant, also under construction. There have been no takers so far, which most likely means more losses to come.
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