Energy company Capital Power signs a new deal with Consumers Energy for the Midland Cogeneration Venture project.
Capital Power Secures Long-Term Contract with Improved Economic Terms for Midland Cogeneration Venture (MCV)
Capital Power, a growth-oriented power producer with approximately 12 GW of power generation at 32 facilities across North America, has announced a significant development in its partnership with Consumers Energy. The company has secured a new long-term contract with improved economic terms for MCV, a key part of Michigan's energy infrastructure.
The MCV facility, jointly owned with 50% working interest with Manulife Investment Management, is the largest natural gas-fired combined electric and steam generation facility in the United States. Under the new Power Purchase Agreement (PPA), MCV will receive payments for 1,240 MW, approximately 75% of the facility's capacity, starting from June 2030. This contract is expected to generate a gross increase in full year adjusted EBITDA for the facility of approximately US$100 million annually, representing an 85% increase over current contract pricing.
Capital Power uses adjusted EBITDA to exclude results not related to facility operations. This non-GAAP financial measure is used to measure the operating performance of the company's underlying operations, excluding items such as impairments, foreign exchange gains or losses, unrealized changes in fair value of commodity derivatives and emission credits, acquisition and integration costs, and other items that are not reflective of the long-term performance.
It is important to note that the forward-looking information in this news release, including expectations regarding the increase to the full year adjusted EBITDA for the facility, is subject to a number of known and unknown risks and uncertainties. Capital Power disclaims any intent or obligation to publicly update or revise any forward-looking information.
Capital Power's head office is located within the traditional and contemporary home of many Indigenous Peoples of the Treaty 6 Territory and Métis Nation of Alberta Region 4. The company is forging strategic partnerships to help shape the future of energy across the continent.
For more information, please contact Capital Power's media relations or investor relations team, whose contact information is provided at the end of the news release.
Capital Power encourages readers to review its "Risks and Risk Management" and "NON-GAAP FINANCIAL MEASURES AND RATIOS" sections in its Integrated Annual Report and Management's Discussion and Analysis for a better understanding of the material risk factors, assumptions, and uncertainties which could cause actual results to differ from the anticipated results. Adjusted EBITDA, as a non-GAAP financial measure, is not a defined financial measure according to GAAP and does not have a standardized meaning prescribed by GAAP.
