Dominion Energy sells stakes in gas-fired and hydropower assets

Dominion Energy has announced that it has executed definitive agreements to divest its interests in three merchant electric generation assets located in the USA for total proceeds of US$1.32 billion. The interests being sold in two separate transactions include:

• 100% interest in the Fairless Power Station, a 1,240 MW combined-cycle gas turbine located in Pennsylvania;
• 100% interest in the Manchester Street Power Station, a 468 MW combined-cycle gas turbine located in Rhode Island; and
• 25% interest in the Catalyst Old River Hydroelectric Limited Partnership, which owns a 192 MW hydroelectric generating station in Louisiana.

Fairless and Manchester are being sold to an affiliate of Starwood Energy for cash consideration of approximately US$1.23 billion, which includes no working capital.  The sale will require the approval of the Federal Energy Regulatory Commission and Hart-Scott-Rodino antitrust clearance. 

The partial interest in Catalyst Old River Hydroelectric is being sold for cash consideration of approximately US$90 million.

Both transactions are expected to close by year-end 2018. Citi and J.P. Morgan are serving as financial advisers to Dominion Energy in regard to the transaction with Starwood Energy. McGuireWoods LLP is serving as the company's legal counsel for both transactions.