Dominion Virginia Power wants to sell stock

Dominion Virginia Power and its parent company, Dominion Resources Inc., have asked the State Corporation Commission for permission to sell up to $1.5 billion of the power company’s common stock to Dominion Resources.

The electric utility, which originally sought approval to sell up to $3 billion in stock, said it would use the money to retire short-term debt and pay for capital investments.

The commission staff recommended that the SCC authorize the sale of $1 billion in common stock this year and another $500 million in 2010. Virginia Power agreed with the staff recommendation to scale back its request, but would like more flexibility with the timing.

Dominion Virginia Power can come back to the commission later for permission to issue additional stock, said Lawrence T. Oliver, assistant director of the SCC’s division of economics and finance.

Virginia Power does not issue common stock directly to the open market.

The commission should decide on the request by next week.

— Peter Bacqué