Electric and natural gas supplier
Dominion Resources Inc.
) enhanced its green power generation portfolio by acquiring
three solar-power development projects near Indianapolis, Ind.,
from Sunrise Energy Ventures. However, the parties did not
disclose the purchase consideration.
The three projects comprise Indy Solar I, Indy Solar II and Indy
Solar III. These projects will have a peak combined generation
capability of 28.6 megawatts of electricity. This will lower the
dependence on fossil fuel and reduce the emission of green house
These projects already have a 15-year power purchase agreement
with Indianapolis Power and Light Company. This will provide
Dominion with a steady stream of revenues.
The increasing awareness of the pitfalls of fossil fuel for
electricity generation has prompted 30 U.S. States and the
District of Columbia to fix Renewable portfolio standards.
Indiana aims to generate 4% of its electricity from renewable
sources within the 2013 to 2018 period.
The state's long-term goal is to generate 10% of its
electricity from renewable sources by 2025. Dominion's move to
acquire the solar units will help it to meet the renewable
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Last week, the company successfully converted the Altavista Power
Station from coal to renewable biomass as its fuel source.
Dominion will also convert two similar coal-fired stations in
Hopewell and Southampton County to renewable biomass units. The
company will make an investment of $165 million for the
conversion of the units.
Dominion is also investing heavily to improve its infrastructure
and generation profile. The company has invested $2.5 billion in
its growth projects in 2012 and has plans to invest $10 billion
from 2013 through 2017.
Dominion Resources currently carries a Zacks Rank #3 (Hold).
Other utilities like
DTE Energy Co.
) are performing well and currently have a Zacks Rank #2