Dominion, a Virginia-based energy company, said Monday it plans to sell three power stations, including Brayton Point Power Station in Somerset, as part of its strategy to divest coal-fired power plants.
Dominion said it will sell Brayton and two other power plants to Energy Capital Partners, a private equity firm with offices in New Jersey and California, to generate a combined $650 million in after-tax proceeds. Dominion would not disclose the sale price of Brayton alone.
“Brayton Point has been a great asset for us, and we believe it will be a great asset for the new owners,” said Dominion spokesman Jim Norvelle. “But we’re selling it because it doesn’t fit in what we want to do going forward.”
Last year, Dominion said it was leaving the merchant coal-fired generation business. Last summer, Dominion sold another Massachusetts plant, the coal- and oil-fired Salem Harbor Power Station in Salem, to Footprint Power LLC of New Jersey.
In the last few years, Salem Harbor’s age, and tightening clean air regulations, made running the power station less and less economical, according to Dominion. It was scheduled to close in 2014. Footprint said it plans to convert the plant to cleaner burning natural gas.
Dominion has owned the 1,528-megawatt Brayton power station since 2005. Norvelle said Brayton Point meets state and federal clean air rules. “We invested more than a billion dollars in environmental controls at that station to make sure we could continue to operate,” said Norvelle.
Energy Capital Partners could not be reached for comment. The proposed transaction will require antitrust clearance and the approval of the Federal Energy Regulatory Commission.Alyssa Edes can be reached at firstname.lastname@example.org. Follow her on Twitter @alyssaedes.