Capital Power Corp. (TSX: CPX) announced a new long-term power purchase agreement with Consumers Energy for the Midland Cogeneration Venture (MCV), extending operations through 2040, boosting earnings by an estimated US$100 million annually. The agreement covers 1,240 megawatts, 75% of the facility’s capacity, beginning in June 2030.

MCV, jointly owned by Capital Power and Manulife Investment Management, is the largest natural gas-fired combined heat and power facility in the U.S., critical to the Midcontinent Independent System Operator (MISO) region. Consumers Energy has relied on MCV for decades as part of its baseload supply.

The deal emphasizes the facility’s importance in maintaining grid reliability amid renewable growth and coal retirements. Natural gas-fired plants like MCV are crucial for balancing variable wind and solar output while meeting rising demand in the Midwest.

Consumers Energy highlighted the reliability benefits for customers, ensuring continued reliability and affordability during the transition to a sustainable energy future. Capital Power secures long-term cash flow and strengthens its portfolio in Michigan’s energy transition.

Manulife Investment Management sees the contract as vital to MCV’s role in the MISO market, supporting its strategy of targeting infrastructure assets with stable, long-term cash flows. Capital Power’s President and CEO emphasized the critical role of efficient natural gas assets like MCV in maintaining grid reliability.

Capital Power, one of North America’s largest independent natural gas power producers, has been pursuing contract extensions to lock in revenue stability in a shifting energy landscape. The MCV extension secures long-term cash flow and positions the company as a key partner in Michigan’s energy transition.

Read more at Yahoo Finance: Capital Power Extends Midland Cogen Contract With Consumers Energy to 2040