Dynegy Closing Unit Two at Newton Power Station

Dynegy Inc. has announced plans to shut down multiple Illinois coal-fueled power units, including Unit Two at the Newton Power Station.

Unit Two at Newton and two units at the Baldwin Power Station are expected to shut down operations over the next year. 

Dynegy officials say the decision to shut down operations was made after they once again failed to recover their basic operating costs in the most recent capacity auction.

Earlier this year, Dynegy announced the Wood River Power Station would retire in June for similar reasons.

Dynegy's release about the shutdowns shares that in a 2014 economic impact study, the Newton and Baldwin stations combined have supported nearly 4,000 direct and indirect jobs and $1 billion annually in economic activity for the region. Newton is responsible for $5 million in property taxes..

Dynegy officials say out of state utilities offer their capacity into the annual auction at little to no cost, putting Illinois generators at a competitive disadvantage.

State Representative David Reis, who lives in Jasper County, said the decision by Dynegy "to mothball part of the Newton facility within the next year is extremely disappointing. We stand to lose 47 very good-paying jobs in the Jasper County area and more indirect jobs, which will be very difficult to replace." Reis said the shutdown takes 30% of downstate Illinois' generation capacity out of the market.