Capital Power, Midland, Consumers Energy sign contract

Executive Summary

• Capital Power Corp. executed a new long-term Power Purchase Agreement (PPA) with Consumers Energy for the Midland Cogeneration Venture (MCV), extending the contract term to 2040.
• The agreement provides 10 years of incremental contracted revenue and secures payments for 1,240 megawatts (approximately 75% of MCV's capacity) starting in June 2030.
• The new terms represent an 85% increase over current contract pricing, expected to generate a gross increase in full-year adjusted EBITDA of approximately $100 million (U.S.) annually for the facility.

Key Details

• Counterparty: Consumers Energy.
• Asset: Midland Cogeneration Venture (MCV), described as the largest natural-gas-fired combined electric and steam generation facility in the United States.
• Contract Duration: Extended to 2040.
• Revenue Term: Provides 10 years of incremental contracted revenue.
• Capacity Covered: Payments for 1,240 megawatts, representing approximately 75% of the facility's total capacity.
• Start Date: Payments begin in June 2030.
• Financial Impact: Expected gross increase in full-year adjusted EBITDA of approximately $100 million (U.S.) annually.
• Pricing Change: Represents an 85% increase over current contract pricing.
• Strategic Context: Reinforces Capital Power's strategy of investing in assets with stable cash flows and long-term contract extensions with creditworthy counterparties.

Notable Quotes

• Avik Dey, President and CEO, Capital Power: "We are proud to continue our partnership with Consumers Energy, one of America's most respected utilities... This contract is an important milestone for Capital Power as it reinforces the critical role efficient natural gas assets like MCV play in maintaining grid reliability as energy demand grows."
• Recep Kendircioglu, Global Head of Infrastructure, Manulife Investment Management: "This agreement underscores that MCV is vital to the MISO market, and we are pleased to own the facility alongside a terrific partner in Capital Power."
• Sri Maddipati, President of Electric Supply, Consumers Energy: "The Midland Cogeneration Venture has been a reliable source of energy for our customers for decades, and this agreement ensures continued reliability and affordability as we transition to a sustainable energy future."