Dominion buys 310MW plant from Dynegy and NRG

Dominion Virginia Power, the power utility subsidiary of Dominion, today completed the purchase of the 310-megawatt Commonwealth power plant in Chesapeake, Virginia. The move is consistent with its aim of reducing the cost of long-term power purchase contracts with non-utility generators, said the company.

Dominion bought the gas-fired facility from Chickahominy River Energy Corp, a subsidiary of NRG Energy, and James River Energy Corp, a subsidiary of Houston-based Dynegy. Dynegy said it received $15 million in proceeds.

Before this deal, Dominion Virginia Power bought power from the Commonwealth plant under a 25-year power purchase contract. Dominion’s purchase results in an estimated after-tax charge of around $35 million to $45 million and reduces Dominion’s pre-tax capacity payments to