The Wood River Power Station, which employs about 90 people in Alton, is being retired, according to parent company Dynegy.
Dynegy said in a news release closing the 465-megawattt facility is due to “its uneconomic operation stemming from a poorly designed wholesale capacity market in Central and Southern Illinois that does not allow competitive generators to recover costs.”
Being located in Illinois, which has a deregulated energy market, Wood River has to compete in capacity auctions against power plants in other states with regulated markets and higher guaranteed compensation, Dynegy said.
If the closure is approved by the Midcontinent Independent System Operator, which runs the electricity capacity auctions, the closure of the plant would take place in mid-2016, Dynegy said.
Dynegy said it will develop plans “to minimize the impact on the approximately 90 employees at Wood River where possible.”
“I would like to thank the men and women who have proudly and professionally served and safely operated the Wood River facility for decades,” said Robert C. Flexon, president and CEO of Dynegy. “Wood River has been an important part of the local community for many years providing safe, reliable, and cost-effective power while also being a responsible corporate citizen.”