RICHMOND, Va., Sept. 8, 2015 /PRNewswire/ -- Dominion (NYSE: D)
announced today that it has agreed to enter into a partnership with
SunEdison, Inc. (NYSE: SUNE), in which it would sell 33 percent of
its ownership in 425 megawatts of solar generating capacity for
approximately $300 million, subject
to working capital and certain other adjustments. Under the terms
of the agreement, SunEdison has a future option to buy all or a
portion of Dominion's remaining 67 percent ownership.
Included in the agreement are 24 projects in California, Connecticut, Georgia, Indiana, Tennessee and Utah. Fifteen of the projects entered service
in 2013 and 2014. The remaining projects either have been completed
or have expected in-service dates in 2015. All have long-term
power purchase agreements with local electricity providers.
Dominion expects to pay down debt with the cash proceeds. The
transaction will require approval by the Federal Energy Regulatory
Commission.
Thomas F. Farrell II, chairman,
president and chief executive officer, said:
"We began acquiring and developing long-term contracted solar
projects in 2013 to build the knowledge and expertise in
constructing, owning and operating utility-scale solar power before
bringing that technology to Virginia. Meanwhile, during the past decade
Dominion has worked to reduce risk and divest non-core assets and
businesses. Our focus is shifting from constructing contracted
solar to constructing utility solar in Virginia, where we expect to develop 400
megawatts of generating capacity by 2020."
Dominion also announced that it has agreed to enter into a joint
venture with SunEdison to develop the 210-megawatt Three Cedars
Solar project in Utah. Dominion
and SunEdison each will have a 50 percent interest in Three
Cedars.
SunEdison will oversee construction of the projects and
day-to-day operation of the facility once it has come online, which
is expected in 2016. Three Cedars is expected to qualify for the
federal Investment Tax Credit. Dominion will receive the majority
of the federal tax benefits from the projects for the first several
years, including the investment tax credit.
Three Cedars consists of three sites located in Iron County, Utah. The project has secured
20-year power purchase agreements, interconnection agreements and
engineering, procurement and construction contracts.
About Dominion
Dominion is one of the nation's largest
producers and transporters of energy, with a portfolio of
approximately 24,600 megawatts of generation, 12,200 miles of
natural gas transmission, gathering and storage pipeline, and 6,455
miles of electric transmission lines. Dominion operates one
of the nation's largest natural gas storage systems with 928
billion cubic feet of storage capacity and serves utility and
retail energy customers in 13 states. For more information about
Dominion, visit the company's website at www.dom.com.
About SunEdison
SunEdison is the largest global
renewable energy development company and is transforming the way
energy is generated, distributed, and owned around the world. The
company develops, finances, installs, owns and operates renewable
power plants, delivering predictably priced electricity to its
residential, commercial, government and utility customers.
SunEdison is one of the world's largest renewable energy asset
managers and provides customers with asset management, operations
and maintenance, monitoring and reporting services. Corporate
headquarters are in the United
States with additional offices and technology manufacturing
around the world. SunEdison's common stock is listed on the New
York Stock Exchange under the symbol "SUNE." To learn more
visit www.sunedison.com.
This news release includes certain forward-looking
information that is subject to various risks and uncertainties.
Words such as "expect," "target," "would," "will," "anticipate,"
"believe," "estimate," "intend," "may," "plan," "predict,"
"project," "should" and similar terms and phrases are used to
identify forward-looking statements. A number of factors that could
cause actual results to differ from those in the forward-looking
statements are identified in Dominion's filings with the U.S.
Securities and Exchange Commission. You are referred to those
discussions for further information. These statements are not
guarantees of future performance and involve certain risks,
uncertainties and assumptions that are difficult to
predict. Any forward-looking statement speaks only as of the
date on which it is made, and the company undertakes no obligation
to update any forward-looking statement to reflect events or
circumstances after the date on which it is made.
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SOURCE Dominion