Dominion said Monday that it has agreed to sell three power stations, including Brayton Point Power Station in Somerset.
The buyer is a subsidiary of funds controlled by Energy Capital Partners, a private equity firm with offices in New Jersey and California.
The transaction, which also includes two power plants in Illinois, is expected to close in the second quarter, Virginia-based Dominion said in a press release.
Dominion announced last year that it planned to exit the merchant coal-fired generation business. Last year, Dominion sold Salem Harbor Power Station in Massachusetts to Footprint Power LLC.
In a Monday press release, Dominion said that the proposed transaction that includes the Brayton Point Power Station will require the approval of the Federal Energy Regulatory Commission and Hart-Scott-Rodino antitrust clearance.
The sale is expected to result in after-tax proceeds of approximately $650 million, which includes cash tax benefits generated from the sale, said Dominion, which added that it plans to invest the proceeds in the company’s regulated businesses and in reducing its debt needs.
Dominion’s press release described Brayton Point Power Station as a 1,528-megawatt power station with three coal-fired units and one unit fired by oil or natural gas. Dominion has owned it since 2005.