UPDATE 1-Dominion Resources to sell three merchant power plants

Thu Sep 6, 2012 10:01am EDT

* Selling one plant in Mass, two in Illinois
    * Proceeds to go to regulated business
    * Stock rises 1.5 percent


    Sept 6 (Reuters) - Power company Dominion said on
Thursday it will sell three  merchant power stations that sell
electricity on the open market and use the proceeds for its
regulated business.
    The company, which serves customers in Virginia and other
states, said the 1,536-megawatt Brayton Point Power Station in
Somerset, Massachusetts will be put up for sale.
    Also, it intends to sell the 1,158-MW Kincaid Power Station
in Kincaid, Illinois and the 1,424-MW Elwood Power Station, 
outside Chicago.
    Thomas Farrell II, Dominion's chairman, president and chief
executive officer, said the three facilities had emissions
controls either installed or in the process of being installed
in their coal-fired units.
    "We believe the sale of these assets and the redeployment of
capital to our regulated businesses is the best path forward for
shareholders," he said.
    The sales are expected to be completed in the first half of
2013 and Dominion said it plans to invest the proceeds in growth
of the regulated businesses and reduce debt needs. It did not
give an asking price for the plants.
    Dominion stock was 1.5 percent higher at $53.29 in morning
trading on the New York Stock Exchange.
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