Dynegy Head Warns of Plant Shutdowns

Dynegy Inc. President Steve Bergstrom said a drop in U.S. electricity prices would force producers to shut power plants in the next few months, when milder weather reduces demand.

“You’re going to see companies take a real long look at taking capacity off the market,” Bergstrom said at an energy conference in New York. “Price signals are saying that marginal capacity should be shut off.”

Dynegy and rival power producers, such as Calpine Corp. and Mirant Corp., are under pressure to preserve cash and reduce debt after prices fell and lenders tightened credit.