Dominion Resources, Inc.
) further enhanced its existing green power generation capacity
by acquiring a solar project in Somers, Ct. Dominion acquired
this project from
) in a deal that closed on Oct. 22, 2013. This project will add 5
megawatt (MW) of green power to Dominion's existing generation
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Utilities responsible for aggravating environmental pollution are
under the scanner for some time now. However, the recent climate
action plan from President Obama, followed by the U.S.
Environmental Protection Agency's (EPA) proposal for granting
permission for setting up new power plants, has put immense
pressure on power producing units.
These new proposals and regulations along with the existing
enforceable renewable portfolio standards or other renewable
generation policies in thirty-five U.S. states and the District
of Columbia are prompting electricity producers to generate more
power from clean sources.
The decision of Dominion to add more green power is a positive
step towards meeting the renewable energy standards in the state
of Connecticut. Connecticut aims to generate 27% of its
electricity through renewable sources by 2020.
The acquired solar power unit is expected to start commercial
operation from Dec 1, 2013 and will generate enough electricity
to provide power to 1,400 households. Dominion will sell the
entire output to Connecticut Light & Power Co. ("CL&P"),
) company under a 20-year purchase power deal.
In February, Dominion had also acquired a 7.7 MW Azalea Solar
Power Facility, near Augusta in east-central Georgia. In
July, Dominion acquired three solar projects near Indianapolis,
Ind. - Indy I, II and III - that will generate 28.6 MW of
Though the positive steps undertaken by Dominion to increase its
renewable generation portfolio did help, those were not enough to
surpass our earnings expectation in the last two quarters.
In the second quarter, Dominion's earnings were adversely
impacted by lower-than-expected sales and lesser contributions
from Producer Services.
Dominion has a Zacks Rank #4 (Sell). In the sector, we presently
NRG Yield, Inc.
) with a Zacks Rank #1 (Strong Buy).