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Dominion Resources Files for 3 Solar Facilities in Virginia

A regulated electric transmission and distribution franchise of Dominion Resources, Inc.D , Dominion Virginia Power, filed for certificates of public convenience and necessity with the Virginia State Corporation Commission ("SCC") for three solar projects in Virginia counties.

The large-scale solar facilities with a combined capacity of 56 megawatt ("MW") will be located in Powhatan, Louisa and Isle of Wight counties. The solar facilities, namely, Scott Solar, Whitehouse Solar and Woodland Solar will be constructed on a land area of 165 acres, 250 acres and 200 acres, respectively.

Upon timely approval, the facilities would commence construction in the next spring and could start generating energy from Dec 2016. These power plants will produce 14 MW of electricity over a period of one year, equivalent to power 3,500 homes

The construction work is expected to create roughly 960 jobs over the next two years while at the same time produce economic benefits of about $74.2 million to the state.

Excluding financing costs, the combined project cost is estimated to be approximately $129.5 million. Dominion Resources is requesting to recover the investments through a rider or rate adjustment whereby the average residential electric bill of $113.24 would be increased by 7 cents. Subject to approval, new rates would come into effect from Dec 1, 2016.

Lately, Dominion Resources has emerged as a big name for having a large-scale renewable generation portfolio. The company is looking to heavily bolster its green assets in the next few years. Dominion is expecting to build 76 MW of solar in 2016 and a total of 400 MW of large-scale solar by 2020.

Beginning 2017, the solar tax credit will come down to 10% from the current level of 30%. Hence, the utility space will likely see many companies taking advantage of the 30% investment tax credit ("ITC"), and build large-scale solar farms up to the end of 2016. Once the ITC drops to 10%, these companies can also utilize a higher rate of depreciation to protect their profits.

Other utility giants investing heavily in solar and clean energy assets are NextEra Energy, Inc. NEE , NRG Energy, Inc. NRG and Duke Energy Corporation DUK .

Dominion Resources currently has a Zacks Rank #3 (Hold).

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NEXTERA ENERGY (NEE): Free Stock Analysis Report

DUKE ENERGY CP (DUK): Free Stock Analysis Report

DOMINION RES VA (D): Free Stock Analysis Report

NRG ENERGY INC (NRG): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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