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By PBN Staff
RICHMOND, Va. – Power company Dominion Resources Inc. has signed a purchase and sale agreement for three merchant generator power stations to Energy Capital Partners.
Brayton Point Power Station, located in Somerset, is the largest fossil-fuel power plant in New England. The 1,528-megawatt power station has three coal-fired units and one unit fired by oil or natural gas. Dominion has owned the facility since 2005.
In addition to Brayton, Dominon will sell Kincaid Power Station and Elwood Power Station, located in Kincaid, Ill., and Chicago, respectively.
Energy Capital Partners is a private equity firm with offices in Short Hills, N.J., and San Diego. The sale is expected to close in the second quarter of 2013, according to a release.
The sale is expected to result in after-tax proceeds of roughly $650 million, including cash tax benefits generated from the sale. The sale requires the approval of the Federal Energy Regulatory Commission and Hart-Scott-Rodino antitrust clearance.
Dominion, which announced in September that it had plans to exit the merchant coal-fired generation business as part of its continued objective to improve return on invested capital and shareholder value, plans to use the funds to invest in the company’s regulated businesses and reduce debt needs.