 |
December 21, 2006
Dominion Agrees To Sale Of Three Facilities
In West Virginia, Pennsylvania And Ohio
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.
###
|
|
