SOMERSET – Energy producer and transporter Dominion closed on the sale of three of its coal-fired power stations at 12 a.m., Friday, including the 1,528-megawatt Brayton Point Power Station in Somerset, which it purchased in 2005. The stations were bought by Energy Capital Partners, a private equity firm that invests in North American energy.
The sale also included the Kincaid Power Station near Springfield, Ill., and Dominion’s 50 percent ownership in Elwood Power Station near Chicago.
Energy Capital Partners builds and acquires investments in multiple energy sub-sectors, including: power generation, midstream oil and gas, electric transmission, energy equipment and services, environmental infrastructure and other related assets.
A purchase and sale agreement was signed between the two companies in March after the sale was announced by Dominion last fall, along with the news that merchant coal-fired generation was no longer a part of its strategic plan.
“Our strategy for the past several years has been to reduce risk associated with merchant power stations and focus more on the regulated side of business, and this was consistent with this strategy,” said Dan Genest, media relations/generation at Dominion.
The sale price for all three stations is $472 million, which is subject to customary closing adjustments. Dominion expects the sale to result in after-tax proceeds totaling $650 million – including cash tax benefits generated from the sale. The company plans to invest the proceeds in its regulated businesses and reduce debt needs.
Brayton Point Power Station is located on 306 acres of land at the head of Narragansett Bay in Somerset. The station, one of New England’s largest fossil-fueled generating facilities, consists of four generating units that produce enough electricity to power about 1.5 million homes, using low-sulfur coal, natural gas and fuel oil as its fuel.