The deal for Dominion Resources (NYSE: D) to sell the coal-fired Brayton Point plant in Massachusetts, the coal-fired Kincaid power plant in Illinois and half of the gas-fired Elwood power plant in Illinois, closed on Aug. 29.
Dominion filed on Aug. 30 a brief notice about the closing of the deal at the Federal Energy Regulatory Commission, which had approved the transaction. Dominion Resources has larely moved to reduce its presence in the independent power market in favor of focusing on its Virginia Electric and Power regulated operations based in Virginia.
FERC on Aug. 20 signed off on the sale of this coal-, oil- and gas-fired capacity in Illinois and Massachusetts by Dominion Resources to Energy Capital Partners II LLC. Applicants had requested authorization for a transaction in which indirect subsidiaries of Energy Capital Partners II would purchase from Dominion Energy direct and/or indirect ownership interests in the following:
- Brayton Point, which operates in the ISO New England (ISO-NE) market. Brayton Point owns and operates an approximately 1,544 MW facility consisting of three coal-fired units, one gas/oil-fired steam unit and four small diesel-fired units located in Somerset, Mass.;
- Kincaid, which operates in the PJM Interconnection market. Kincaid owns an approximately 1,158 MW facility, consisting of two coal-fired units located in Kincaid, Ill.; and
- Elwood, which operates in the PJM market. Elwood, where Dominion had controlled a 50% stake, owns an approximately 1,424 MW facility consisting of nine natural gas-fired turbine units in Elwood, Ill. The output of four of the nine units, about 600 MW, is fully committed to Constellation Energy Commodities Group under two long-term power purchase agreements (PPAs). The first long-term PPA for Units 5 and 6 at Elwood expires in 2016, and the second PPA for Units 7 and 8 expires in 2017.