RICHMOND, Va. -- Dominion (NYSE: D), one of the nation's largest energy providers, announced today that it has reached an agreement to sell three natural gas-fired generation facilities to a subsidiary of Tenaska Power Fund, L.P., and an affiliate of Warburg Pincus LLC. Terms were not disclosed. Sales proceeds will be used to reduce debt.
The facilities are:
- Pleasants, a 313-megawatt facility in St. Mary's, West Va.
- Armstrong, a 625-megawatt facility in Shelocta, Pa.
- Troy, a 600-megawatt facility in Luckey, Ohio.
The sale is expected to close in the first quarter of 2007 pending regulatory approval by the Federal Energy Regulatory Commission and the Federal Trade Commission. No state regulatory approvals are required.
Dominion offered the units for sale in a process initiated in early August resulting from an asset review. The review is being conducted to determine how specific assets are contributing to the company's objective to improve its return on invested capital and shareholder value. The transaction will result in an impairment charge to be recorded in 2006 and is expected to provide future potential tax-loss benefits.
The three stations together employ 16 people.
Dominion has not reached a decision on the possible sale of a fourth facility in its merchant fleet, State Line, a 515-megawatt coal-fired facility in Hammond, Ind.
Credit Suisse Securities (USA) LLC advised Dominion on the transaction.
Dominion is one of the nation's largest producers of energy, with a portfolio of about 28,000 megawatts of generation, about 6.6 trillion cubic feet equivalent of proved natural gas reserves and 7,800 miles of natural gas transmission pipeline. Dominion also operates one of the nation's largest underground natural gas storage systems with about 950 billion cubic feet of storage capacity and serves retail energy customers in 11 states. For more information about Dominion, visit the company's Web site at http://www.dom.com.