Virginia-based Dominion Resources (NYSE: D) has apparently heeded the call to go West, since it has acquired this year several solar projects in California and Utah.
In June, Dominion noted in its Aug. 6 Form 10-Q statement that it acquired 50% of the units in Four Brothers from SunEdison for approximately $64 million of consideration, consisting of $2 million in cash and a $62 million payable. Four Brothers’ purpose is to develop and operate four solar projects located in Utah, which will produce and sell electricity and renewable energy credits. The projects are expected to cost approximately $730 million to construct, including the initial acquisition cost. Dominion is obligated to contribute $445 million of capital to fund the construction of the projects. The facilities are expected to begin commercial operations in the third quarter of 2016, generating approximately 320 MW. Long-term power purchase, interconnection and operation and maintenance agreements have been executed for each of the projects.
Dominion said it expects to claim 99% of the federal investment tax credits on the Four Brothers projects. Dominion owns 50% of the voting interests in Four Brothers and has a controlling financial interest over the entity through its rights to control operations.
Four Brothers has entered into agreements with SunEdison to provide administrative and support services in connection with the construction of the project, operation and maintenance of the facilities, and administrative and technical management services of the solar facilities. In addition, Dominion has entered into a contract with SunEdison to provide services related to construction project management and oversight.
Other solar projects that Dominion has acquired this year are:
- Deal closed in April 2015, from EC&R NA Solar PV LLC, one project (Alamo), California, commercial operation date (COD) in May 2015, 20 MW;
- April 2015, EDF Renewable Development Inc., three projects (City of Corcoran, Goose Lake and Marin Carport), California, COD in May 2015, 24 MW;
- June 2015, EDF Renewable Development, one project (Catalina 2), California, COD in July 2015, 18 MW; and
- July 2015, SunPeak Solar LLC, one project (Imperial Valley 2), California, COD in third quarter 2015, 20 MW.
In June 2015, Dominion entered into an agreement to acquire 100% of the equity interests in the Maricopa West solar project in California from EC&R NA Solar PV for approximately $65 million in cash. The project is expected to close in the fourth quarter of 2015 and cost approximately $66 million once constructed, including the initial acquisition cost. Upon completion, the facility is expected to generate approximately 20 MW.
These various facilities have been put under the Dominion Generation unit of Dominion.