Dominion has signed a purchase and sale agreement for three merchant generation power stations with a subsidiary of funds controlled by Energy Capital Partners. The sale is expected to close in the second quarter of 2013.
The power stations are Brayton Point, a 1,528 MW power station in Somerset, Massachusetts, with three coal-fired units and one unit fired by oil or natural gas. Dominion has owned it since 2005; Kincaid Power Station, a 1,158 MW power plant in Kincaid, Illinois, with two 579 MW coal-fired units. Dominion has owned Kincaid since 1998. Also included in the sale is the Elwood Power plant, a 1,350 MW power station outside Chicago, with nine natural gas-fired combustion turbines. Dominion has owned a 50% interest in and operated the station since Elwood became operational in 1999.
The sale will require the approval of the Federal Energy Regulatory Commission (FERC) and Hart-Scott-Rodino antitrust clearance. The sale is expected to result in after-tax proceeds of approximately US$650m, which includes cash tax benefits generated from the sale.
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