US-based power utility Dominion Energy has agreed to divest its entire stakes in two US gas-fired CCGT power plants to the US energy infrastructure company Starwood Energy Group for a total consideration of US$1.32bn. The sold assets include its 100% interests in the 1,240 MW Fairless CCGT power plant located in Fairless Hills, Pennsylvania and in the 468 MW Manchester Street CCGT located in Providence, Rhode Island. Fairless was commissioned in 2004, while Manchester Street came online in 1995. The transaction is subject to the approval of the Federal Energy Regulatory Commission (FERC) and the Hart-Scott-Rodino antitrust clearance.
Under a separate agreement, Dominion Energy also sold its 25% interest in the Catalyst Old River hydropower plant in Louisiana for a cash consideration of nearly US$90m.
The two transactions are expected to be completed before the end of 2018. Dominion Energy considers the plants as non-core assets and the divestment is consistent with its strategy of buying and building core infrastructure assets in locations closer to customer demand.