Independent energy provider Dynegy's entrance into the the crowded Ohio energy market could affect competitors plans to raise rates.
AEP and First Energy have asked state regulators to allow them to hike customers' bills to ensure energy production and guarantee income for their struggling coal plants through 2030.
Texas-based Dynegy recently bought several coal and natural gas plants from Duke Energy. Now, the company 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.
