[Note this story has been updated for clarity.]
Dominion Energy has reached an agreement to sell the Manchester Street Power Station to Starwood Energy Group, a private investment firm based in Greenwich, Connecticut that “specializes in energy infrastructure investments.”
As part of that deal, Dominion has agreed to sell Starwood the 1,240 MW Fairless Power Station located 25 miles outside of Philadelphia in Fairless Hills, Pennsylvania as well.
The combined deal will cost Starwood $1.23 billion in cash.
The 468 megawatt Manchester Street Power Station is an iconic building in Providence. The plant burns natural gas to generate power.
Robert Walton, writing for Utility Dive, wrote that though the company is looking to sell some assets, “it is working to construct other gas-fired plants, along with renewables, in its regulated markets. In an integrated resource plan filed with Virginia regulators this year, the company indicated it wants to build eight new gas-fired plants capable of generating 3.66 GW by 2033.”
“The acquisition of the Fairless and Manchester facilities is consistent with our strategy of buying or building core infrastructure assets in attractive locations close to customer demand,” said Himanshu Saxena, CEO of Starwood Energy. “We welcome the plant employees and look forward to working with local communities as we own and operate these high-quality assets.”
It is unknown what effect the sale will have on a recently negotiated tax stabilization agreement between the City of Providence and Dominion that would reward Dominion with a $150,000 tax rebate and exclusive control of Collier Park.
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