(Updates with expected proceeds in second paragraph.)
March 11 (Bloomberg) -- Dominion Resources Inc. agreed to sell three power plants to funds controlled by private-equity firm Energy Capital Partners. Terms of the deal weren’t disclosed.
Dominion will sell the 1,528-megawatt Brayton Point plant in Somerset, Massachusetts; the 1,158-megawatt Kincaid plant in Illinois; and its 50 percent stake in the 1,424-megawatt Elwood plant outside Chicago, the Richmond, Virginia-based company said in a statement today. The company expects to get proceeds of about $650 million from the sale, including cash tax benefits.
The plants burn coal, natural gas or oil, and the sale is expected to close in the second quarter, Dominion said. The sale is part of Dominion’s stated intention to exit the merchant coal-fired generation business. It will use the money to invest in regulated units and reduce debt.
--Editors: Jessica Resnick-Ault, Will Wade