Finance

Dominion Energy sells share in 192-MW hydroelectric station

Calling it a “non-core asset,” Dominion Energy has sold its 25% share in a company that owns a 192-MW hydroelectric station in Louisiana.
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Calling it a “non-core asset,” Dominion Energy has sold its 25% share in a company that owns a 192-MW hydroelectric station in Louisiana.

Other assets sold under definitive agreements include 100% of the 1,240-MW Fairless Power Station, a combined-cycle gas turbine in Pennsylvania, and 100% interest in the 468-MW Manchester Street Power Station, a combined-cycle gas turbine in Rhode Island.

Total proceeds from these sales with be $1.32 billion, and Dominion Energy says they will be used to reduce parent-level debt.

Dominion Energy says the partial interest in Catalyst Old River Hydroelectric Limited Partnership, which owns the hydro plant, is being sold for cash consideration of about $90 million and this transaction is expected to close by the end of 2018.

“These actions demonstrate our commitment to the company’s credit profile and represent the successful completion of the credit improvement initiatives that we announced in March,” said Thomas F. Farrell, II, chairman, president and chief executive officer.

Dominion Energy did not provide the name of the company purchasing the hydro share nor the name of the hydro plant involved.

Hydro is a relatively small portion of Dominion Energy’s energy mix, which is 33.8% nuclear, 33.6% natural gas, 26.5% coal, and 5.6% renewable. It owns the 3,003-MW Bath County Pumped Storage plant in Virginia and the Gaston and Roanoke Rapids hydro plants in North Carolina.

Additionally, earlier this year, we reported that Dominion Energy was studying a proposed pumped storage hydro plant to be built in Virginia.