Washington (Platts)--19Feb2008

The Sierra Club on Tuesday said it will launch a major campaign
challenging plans by merchant generators Dynegy and LS Power to build
coal-fired power plants in Texas, Arkansas, Georgia, Iowa, Mississippi and
Nevada.

The environmental group said the campaign, which will start Wednesday,
will target Dynegy/LS Power as "Coal-fired Power Polluter Number 1."

The Sierra Club said in a statement that the Dynegy/LS Power joint
venture "is proposing to construct more new coal-fired power plants than any
other power company in the nation."

Dynegy spokesman David Byford said the concerns raised by the
environmental group "are part of a larger national debate about how to meet
our future energy needs" in a manner that is both environmentally and
economically sound. "Our own approach in our 50-50 joint venture with LS Power
includes natural gas proposals, coal-fired options, and renewables such as
wind and solar," he said. Byford added that Dynegy and LS Power are planning
to build more gas-fired capacity than coal-fired capacity.

He added that two of the six coal projects targeted by the Sierra
Club -- the Sandy Creek plant in Texas and the Plum Point plant in
Arkansas -- already have secured all needed permits and are under
construction.