WATERLOO - The future of a proposed coal-fired power plant near Waterloo became a little cloudier Friday when Texas-based Dynegy Inc. announced that it and New Jersey-based LS Power Associates were dissolving their joint venture to develop that plant and others in several states.

The move transfers to LS Power full ownership and developmental rights associated with various "greenfield" projects in several states, including the 750-megawatt Elk Run Energy Station proposed for construction northeast of Waterloo.

The $1.3 billion project is still awaiting regulatory approval before construction can begin on property along Newell Road east of John Deere's plant.

The company has said it plans to have the plant operational in 2013.

Separation from Dynegy puts the Elk Run plans in doubt, said Don Shatzer, a member of Community Energy Solutions, which opposes the Elk Run Energy project.

"LS Power has no experience developing/operating coal plants and so is unlikely to proceed (without) a new partner," Shatzer said in an e-mail note.

Attempts to contact officials with LS Power at their offices in St. Louis were unsuccessful.

Dynegy chairman, president and chief executive officer Bruce Williamson said the "development landscape had changed since his company had formed the joint venture with LS Power in 2006.

"Today, the development of new generation is increasingly marked by barriers to entry, including external credit and regulatory factors that make development much more uncertain," Williamson said in a news release.

"In light of these market circumstances, Dynegy has elected to focus development activities and investments around our own portfolio where we control the option to develop and can manage the costs being incurred more closely."

Contact Jim Offner at (319) 291-1598 or jim.offner@wcfcourier.com.