AEP and FirstEnergy want state regulators to approve plans that allow them to hike their customers’ bills to ensure energy production and guarantee income for their struggling coal plants. But a new energy player wants to crash the party.
Dynegy just bought several coal and natural gas plants from Duke Energy. Now the independent energy producer says it can counter plans from AEP and FirstEnergy by offering the same amount of energy for $5 billion less.
Their proposal relies on cost-efficient coal plants, existing natural gas plants and -- possibly -- newly built natural gas plants.
Exelon, another energy provider, has also offered a cheaper plan. Dynegy Vice President Dean Ellis says these companies are sending a clear message to regulators that other options are out there.
“These offers are far superior in so many different ways beginning with the cost-savings that they would deliver to consumers over the long term,” said Ellis.
But AEP says Dynegy’s relying on “inflated assumptions” and that there’s no basis for their claims of cost savings.