Blue Mass Group

Reality-based commentary on politics.

  • Shop
  • Subscribe to BMG
  • Contact
  • Log In
  • Front Page
  • All Posts
  • About
  • Rules
  • Events
  • Register on BMG

Dominion Dumps Brayton Point Coal Plant

March 11, 2013 By thegreenmiles

Cooling Towers, Brayton Point Power Station

Brayton Point Power Station, Somerset (Flickr’s JPenney)

Big news today as Dominion announced it’s selling 3 power plants including Somerset’s controverisal Brayton Point – and the price-tag is eye-popping:

The power stations are:

  • Brayton Point Power Station, a 1,528-megawatt power station in Somerset, Mass., with three coal-fired units and one unit fired by oil or natural gas. Dominion has owned it since 2005.
  • Kincaid Power Station, a 1,158-megawatt power station in Kincaid, Ill., with two 579-megawatt coal-fired units. Dominion has owned Kincaid since 1998.
  • Elwood Power Station, a 1,424-megawatt power station outside Chicago, with nine natural gas-fired combustion turbines. Dominion has owned a 50 percent interest (712 megawatts) in and operated the station since Elwood became operational in 1999.

The sale will require the approval of the Federal Energy Regulatory Commission (FERC) and Hart-Scott-Rodino antitrust clearance.

Dominion announced last September that it was exiting the merchant coal-fired generation business as part of the company’s continual review of its assets to ensure they fit strategically and support its objectives to improve return on invested capital and shareholder value. The sale is expected to result in after-tax proceeds of approximately $650 million, which includes cash tax benefits generated from the sale. The company plans to invest the proceeds in the company’s regulated businesses and reduce debt needs.

“Merchant power” is basically when you own a station and sell the electricity to a utility. It’s always a risky business and at a time when America’s electricity use is falling overall and the price of electricity from natural gas is falling, now’s looking like a good time to bail on these old, dirty coal-fired power plants for whatever Dominion can get.

But look at that low sale value – and that includes tax write-offs! Considering Dominion had spent $1 billion on upgrades at Brayton Point alone in recent years, including two enormous cooling towers, Dominion must be taking an absolute bath. But especially as new Clean Air Act limits on industrial carbon pollution loom, Dominion’s happy to get rid of them at just about any price.

Speaking of limits on industrial carbon pollution, now would be a good time to tell President Obama you support the strongest limits possible.

Please share widely!
fb-share-icon
Tweet
0
0

Filed Under: User Tagged With: Brayton-Point, coal, energy, Somerset

Recommended Posts

  • No posts liked yet.

Recent User Posts

Predictions Open Thread

December 22, 2022 By jconway

This is why I love Joe Biden

December 21, 2022 By fredrichlariccia

Garland’s Word

December 19, 2022 By terrymcginty

Some Parting Thoughts

December 19, 2022 By jconway

Beware the latest grift

December 16, 2022 By fredrichlariccia

Thank you, Blue Mass Group!

December 15, 2022 By methuenprogressive

Recent Comments

  • blueeyes on Beware the latest griftSo where to, then??
  • Christopher on Some Parting ThoughtsI've enjoyed our discussions as well (but we have yet to…
  • Christopher on Beware the latest griftI can't imagine anyone of our ilk not already on Twitter…
  • blueeyes on Beware the latest griftI will miss this site. Where are people going? Twitter?…
  • chrismatth on A valedictoryI joined BMG late - 13 years ago next month and three da…
  • SomervilleTom on Geopolitics of FusionEVERY un-designed, un-built, and un-tested technology is…
  • Charley on the MTA on A valedictoryThat’s a great idea, and I’ll be there on Sunday. It’s a…

Archive

@bluemassgroup on Twitter

Twitter feed is not available at the moment.

From our sponsors




Google Calendar







Search

Archives

  • Facebook
  • RSS
  • Twitter




Copyright © 2025 Owned and operated by BMG Media Empire LLC. Read the terms of use. Some rights reserved.