PROVIDENCE – Dominion Energy has entered an agreement to sell the Manchester Street Power Station in Providence as part of a $1.2 billion sale to Starwood Energy Group Global LLC, based in Connecticut, the companies announced Tuesday.
The plant, which has the capability of generating 468 megawatts of electricity, was included in a joint sale with the Fairless Power Station, a 1,240-megawatt facility in Fairless Hills, Pa.
Dominion says the Providence-based combined-cycle natural gas plant powers 360,000 homes. It began operations in 1995.
Dominion also announced it would sell Starwood Energy a partial interest stake in a hydroelectric plant in Louisiana for $90 million.
The company said the capital from the sales would be used to improve the company’s credit profile.
The transaction is subject to regulatory approval.
Dominion Energy previously sold the now-decommissioned Brayton Point Power Station in 2013 along with two other coal-powered plants for a combined $472 million.
“We are pleased with these results from our non-core asset sales,” stated Thomas F. Farrell II, Dominion Energy chairman, president and CEO. “The total proceeds exceed the midpoint of our previously issued guidance range of $1 [billion] to $1.5 billion. 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. We appreciate the opportunity to have worked with Starwood Energy and know that it will benefit greatly from the continued efforts of the plant employees who have delivered best-in-class performance at Fairless and Manchester Street.”
Starwood Energy CEO Himanshu Sexena said of the company’s purchase agreement, “The acquisition of the Fairless and Manchester facilities is consistent with our strategy of buying or building core infrastructure assets in attractive locations close to customer demand. We welcome the plant employees and look forward to working with local communities as we own and operate these high-quality assets.”
Among other properties, Starwood is the owner and operator of Dighton Power, a 177-megawatt combined-cycle, natural-gas-fired facility located in Dighton, Mass. – the energy company acquired it from Dynegy in 2017. The company also has another 163-megawatt combined-cycle plant in Milford, Mass. It reportedly bought both plants for a combined $119 million.
Starwood Energy said its equity investments typically range from $50 million to $200 million or more, the “middle market” that it believes affords more-diverse opportunities, negotiated transactions and attractive values.
The company says it has more than $7 billion in enterprise value, with more than 20 power station investments across the country.
Chris Bergenheim is the PBN web editor. Email him at Bergenheim@PBN.com.