H-MORRO BAY

Nov 8, 2013 2:07 PM by Katherine Worsham, KSBY News

Morro Bay Power Plant to shut down

In a letter to Governor Jerry Brown on Thursday, the CEO of Dynegy announced plans to close the Morro Bay Power Plant.

According to the letter, the plant would close in 2014. It's unclear what will happen to the facility.

Katy Sullivan, the Director for Public Relations and Internal Communications for Dynegy said the plan was meeting all of its requirements, but has decided to cancel its contract. Dynegy will not say why. Sullivan said the company's focus right now is on future uses for the site.

"Dynegy is working with a group called Starwood Energy. And, we are looking at alternatives for the Morro Bay Power Plant site, including developing renewable energy technologies at that site. We haven't determined any specific technologies just yet, we're at the beginning of the evaluation process. But, that is the next step for the site," said Sullivan.

Dynegy said there are no immediate plans to demolish the existing plant. The three smoke stacks have become an iconic site to many in Morro Bay.

Dynegy said it employs about 30-40 people. The letter states the company will take steps to offer employees severance packages or potential employment at other Dynegy facilities.

Morro Bay Mayor Jamie Irons said actually resigned from working at the power plant this past July. He said he's thinking of his former co-workers' future at this time. Irons said the number one concern is the financial impact the shut down will have on the city.

He said the city has received about $750,000 a year from the plant, but have slowly weened themselves from the dependency of that money, so they are prepared for the closure.

Dynegy says it expects the plant to be closed by the end of February 2014.

Click here to read the complete letter.

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