Dominion seeking utility deals to save Millstone plant as deadline looms

|About: Avangrid, Inc. (AGR)|By:, SA News Editor

Dominion Energy (D +0.3%) says it is working to complete negotiations with Connecticut utilities to purchase electricity from its Millstone nuclear power plant before a March 15 deadline.

After three years of working with politicians and regulators on a plan to keep the plant in service, the state in December selected Millstone for a contract to purchase slightly more than half of the plant's output for 10 years, but the price of the contract was not firm, so Dominion is negotiating with the state and two local utilities, units of Eversource Energy (NYSE:ES) and Avangrid (NYSE:AGR).

Dominion says the price for the first three years of the contract is roughly equal to the wholesale power price in New England, which is at historic lows due to increasing use of generators fired with cheap natural gas from shale formations and renewables such as wind and solar.

The company says Millstone representatives and utilities are meeting this week but closing the plant is possible "if we can't get a price that sustains our operations."

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