Air Pollution Control Equipment Services, Emissions

Settlement reached in Illinois’ Clean Air Act case

8 March 2005 – Dynegy has reached a settlement that will resolve the environmental litigation brought against it by the US Environmental Protection Agency (EPA), the US Department of Justice (DOJ), the state of Illinois and several citizens groups.

A legal case was brought against Dynegy after it was alleged that it violated the Clean Air Act at the Baldwin Power Station in, Illinois.

With $321m to be invested in emissions control projects between now and 2010 and a further $224m of investments scheduled from 2011 to 2012, the settlement will result in significant emissions reductions at the company’s coal fired facilities.

Much of the investment will be at the Baldwin and Havana plants. Planned projects include year round operation of SCRs to reduce NOx emissions, starting in 2005 and the installation of scrubbers and baghouses from 2010 to 2012 in order to reduce SO2 and particulate matter.

Bruce A. Williamson, chairman, president and chief executive officer of Dynegy, said: “These power plant modifications are expected to meet or exceed anticipated federal environmental requirements under the Administration’s proposed Clean Air Interstate Rule, as well as proposed legislation before congress.”

Dynegy will also pay the EPA a $9m fine and undertake several environmental projects in the Midwest region.

The EPA and the DOJ are expected to officially accept the settlement mid 2005.