Dominion (NYSE:D) announced that it intends to pursue the sale of three fossil-fuel fired merchant power stations.
As quoted in the press release:
The power stations are:
- Brayton Point Power Station, a 1,536-megawatt power station in Somerset, Mass., 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-megawatt power station in Kincaid, Ill., with two 579-megawatt coal-fired units. Dominion has owned Kincaid since 1998. And
- Elwood Power Station, a 1,424-megawatt power station outside Chicago, with nine 158-megawatt natural gas-fired combustion turbines. Dominion has owned a 50 percent interest in and operated the station since Elwood became operational in 1999.
Thomas F. Farrell II, Chairman, President and CEO of Dominion, commented:
These are excellent, well-operating and well-maintained facilities. State-of-the-art emissions controls have been or are in the process of being installed at the stations’ coal-fired units, which are fully compliant with stringent, new federal air regulations.
However, as we have said for some time, Dominion continually reviews its assets to ensure they still fit strategically and support our objectives to improve return on invested capital and shareholder value. We believe the sale of these assets and the redeployment of capital to our regulated businesses is the best path forward for shareholders.