-Company is also partnering with SunEdison on 210-megawatt Utah solar project expected to come online in 2016
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.
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.
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.
For further information: Media (Dominion): Ryan Frazier, (804) 819-2521 or C.Ryan.Frazier@dom.com; Financial analysts: Kristy Babcock, (804) 819-2492 or Kristy.R.Babcock@dom.com