Capital Power and Manulife Investment Management buying Midland Cogen

Capital Power and Manulife Investment Management have signed a deal to buy MCV Holding, 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.