Dynegy CEO On Zone 4 Capacity: "MISO Is Not Going To Fix Their Market"

Asked by an analyst during an earnings call this morning when Dynegy should stop waiting for, in the analyst's words, "the MISO magical regulatory fix," and instead accelerate a rationalization of Dynegy's generating assets in Midcontinent ISO Zone 4, Dynegy CEO Robert Flexon answered, "I certainly turned the corner a while ago on betting on MISO to fix it. MISO is not going to fix their market."

"Zone 4 should be in PJM, period," Flexon said

"The only outside help for Zone 4 is if the state of Illinois gets involved, and they start procuring capacity for their POLR load, or similar to what the Illinois Power Authority [sic] does today," Flexon said

EnergyChoiceMatters.com notes that, to the extent Illinois or the IPA were to start procuring capacity in a different manner from the current process (which has varied from bilateral purchases to reliance on the MISO auction), and such procurement were solely for POLR load, it would implicate the retail market dynamics and price to compare