Edmonton, Alberta-based Capital Power Corporation and Toronto-based Manulife Investment Management have partnered to purchase Midland Cogeneration Venture Holding Company for $894 million, including the assumption of $521 million of debt.
The companies acquired 100 percent of the interests in the company. The natural gas combined-cycle cogeneration facility is being acquired from OMERS Infrastructure Management Inc. and its co-investors.
Manulife and Capital Power will each contribute $186 million. Capital Power will will receive an annual management fee and assume plant operations and maintenance.
“(Midland Cogen) is the largest gas-fired cogeneration facility in the United States and combined with its excellent reliability history and operating flexibility, Midland Cogen is a critical asset to support grid reliability during the transition to renewables and is extremely well-positioned for recontracting beyond 2030," said Brian Vaasjo, President and CEO of Capital Power.
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