Capital Power and Manulife Investment Management buying Midland Cogen

EDMONTON – Capital Power Corp. and Manulife Investment Management have signed a deal to buy MCV Holding Co., which owns Midland Cogeneration Venture, for US$894 million, including the assumption of US$521 million of project level debt.

The 1,633-megawatt natural gas combined-cycle cogeneration facility is being acquired from OMERS Infrastructure Management Inc. and its co-investors.

The facility is located in Midland, Mich., and began commercial operations in 1990.

Capital Power will be responsible for operations and maintenance and asset management for which it will receive an annual management fee.

It says it will finance the transaction using cash on hand and its credit facilities.

The transaction is expected to close in the third quarter of this year, subject to regulatory approvals and other customary closing conditions.

This report by The Canadian Press was first published July 12, 2022.

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