The company has decided to close the coal-fueled units as they failed to recover their basic operating costs at the Midcontinent Independent System Operator’s (MISO) recent capacity auction.
Dynegy will shut down unit one and three at the Baldwin power station, as well as unit two at the Newton power station.
The firm intends to close around 1,835MW of generating capacity at the coal-fired units of both power plants.
The plans are also underway to shut down an additional 500MW of generating capacity, which is expected to be finalized later this year.
Around 2,800MW of generation capacity is being halted in Illinois, of which 30% of the power generation capacity is from the Southern Illinois.
At the starting of this year, the company announced that it will shut down the 465MW Wood River power station in June.
Dynegy CEO Robert Flexon said: "This is a difficult decision, and we don’t take it lightly. For 40 years, the employees of the Baldwin and Newton Power Stations have generated reliable and affordable power for the people of Illinois.
"The men and women of these stations, just like the Wood River employees, have proudly and professionally served and safely operated these facilities for decades while contributing greatly to their communities."
As per 2014 economic impact study by Development Strategies, the Newton and Baldwin stations have historically supported around 4,000 direct and indirect jobs and $1bn annually in economic activity for the region.
