Capital Power Extends Midland Cogen Contract With Consumers Energy to 2040

Capital Power Corp. (TSX: CPX) announced a new long-term power purchase agreement (PPA) with Consumers Energy for the Midland Cogeneration Venture (MCV), extending contracted operations through 2040 and boosting annual earnings from the facility by an estimated US$100 million.

The agreement covers 1,240 megawatts—about 75% of the facility’s capacity—beginning in June 2030. Under the new terms, Capital Power expects full-year adjusted EBITDA at MCV to increase by roughly 85% compared to current contract pricing, providing a decade of incremental contracted revenue.

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. and plays a critical role in the Midcontinent Independent System Operator (MISO) region. Consumers Energy, one of Michigan’s largest utilities, has relied on MCV for decades as part of its baseload supply.

“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,” said Avik Dey, Capital Power’s President and CEO.

The deal underscores the facility’s importance at a time when grid reliability concerns are mounting across the Midwest amid growing renewable penetration and coal retirements. Natural gas-fired plants like MCV are seen as crucial to balancing variable wind and solar output while meeting rising demand.

For Manulife Investment Management, which co-owns MCV, the contract supports its strategy of targeting infrastructure assets with stable, long-term cash flows. “This agreement underscores that MCV is vital to the MISO market,” said Recep Kendircioglu, Global Head of Infrastructure.

Consumers Energy emphasized the reliability benefits for its customers, highlighting the facility’s track record of dependable generation. “This agreement ensures continued reliability and affordability as we transition to a sustainable energy future,” said Sri Maddipati, President of Electric Supply at Consumers Energy.

Capital Power, one of North America’s largest independent natural gas power producers, has been pursuing contract extensions to lock in revenue stability and strengthen its portfolio amid a shifting energy landscape. The MCV extension not only secures long-term cash flow but also positions the company as a key partner in Michigan’s energy transition.

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