Dominion (NYSE: D) has signed a purchase and sale agreement for three merchant generation power stations to a subsidiary of funds controlled by Energy Capital Partners. The deal is expected to close in the second quarter of 2013.
The power plants are:
- The 1,528 MW Brayton Point Power Station in Massachusetts. The plant has three coal-fired units and one that burns natural gas or oil. Dominion has owned it since 2005.
- The 1,158 MW Kincaid Power Station in Illinois. The plant uses two 579 MW coal-fired units, and Dominion has owned it since 1998.
- The 1,424 MW Elwood Power Station outside of Chicago, which uses nine natural gas-fired combustion turbines. Dominion owns a 50 percent interest, or 712 MW, in and operated the plant since 1999.
The sale requires the approval of the Federal Energy Regulatory Commission and clearance of the Hart-Scott-Rodino antitrust process. Dominion said in September 2012 that it was getting out of the merchant coal-fired generation business as it reviews its assets to ensure that they support objectives to improve on returns of invested capital and shareholder value.
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