Dominion to pursue sale of three coal- and gas-fired power plants

Dominion (NYSE: D) has said it intends to pursue the sale of three fossil fuel-fired merchant power stations, one in Massachusetts and two in Illinois.

One of the stations, Brayton Point Power Station, is a 1,536 MW 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.

Dominion also intends to sell the Kincaid Power Station, a 1,158 MW power station in Kincaid, Ill., with two 579 MW coal-fired units. Dominion has owned Kincaid since 1998.

The third plant is the Elwood Power Station, a 1,424 MW power station outside of Chicago, with nine 158 MW natural gas-fired combustion turbines. Dominion has owned a 50 percent interest in and operated the station since Elwood became operational in 1999.

"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,” said Thomas F. Farrell II, chairman, president and chief executive officer. "However, 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."

The sales are expected to be completed in the first half of 2013. The company plans to invest the proceeds in growth of the company's regulated businesses and reduce debt needs.

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