Capital Power, Midland, Consumers Energy sign contract

Mr. Avik Dey reports CAPITAL POWER EXECUTES NEW CONTRACT FOR MIDLAND COGENERATION VENTURE WITH CONSUMERS ENERGY Capital Power Corp. has executed a new long-term contract with improved economic terms for Midland Cogeneration Venture with Consumers Energy, extending to 2040 and providing 10 years of incremental contracted revenue. MCV is the largest natural-gas-fired combined electric and steam generation facility in the United States and a cornerstone of reliable power generation in Michigan. MCV will receive payments for 1,240 megawatts, approximately 75 per cent of the facility's capacity, starting in June, 2030, under the new power purchase agreement, creating long-term revenue stability throughout the contract term. The contract is expected to generate a gross increase in full-year adjusted earnings before interest, taxes, depreciation and amortization for the facility of approximately $100-million (U.S.) annually (representing an 85-per-cent increase over current contract pricing). "We are proud to continue our partnership with Consumers Energy, one of America's most respected utilities," said Avik Dey, president and chief executive officer of Capital Power. "Michigan is an attractive and growing market for electricity. 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." "Investing in assets that seek stable cash flows with the ability to enhance that profile through long-term contract extensions with creditworthy counterparties is a key principle of our strategy," said 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." "We're pleased to continue our long-standing relationship with Capital Power through this new PPA," said 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." The MCV facility is a key part of Michigan's energy infrastructure, delivering an exceptional record for reliability and operating performance. As North America's fifth-largest natural gas independent power producer, Capital Power is forging strategic partnerships to help shape the future of energy across the continent. About Capital Power Corp. Capital Power is a growth-oriented power producer with approximately 12 gigawatts of power generation at 32 facilities across North America. It prioritizes safely delivering reliable and affordable power communities can depend on, building lower-carbon power systems, and creating balanced solutions for the energy future. We seek Safe Harbor.