Capital Power extends its Arlington Valley tolling agreement to 2038 and increases its summer capacity by 35 MWs, enhancing reliability and long-term value

Core Viewpoint - Capital Power has extended its summer tolling agreement for the Arlington facility with an investment-grade utility, increasing the contract duration to 2038, which is expected to enhance revenue and growth opportunities in the U.S. southwest [1][9]. Group 1: Agreement Details - The summer tolling agreement has been extended by 7 years, now running through October 2038, providing a total of 13 years of contracted revenue [9]. - The facility will undergo a 35 MW capacity uprate, with 10 MW added in 2026 and an additional 25 MW in 2027, to support Arizona's peak demand [4][3]. Group 2: Financial Impact - The facility is projected to achieve an adjusted EBITDA uplift of approximately US$70 million annually by 2032, which includes the impact of the uprate [2][9]. - The uprate is expected to contribute around US$8 million per year to adjusted EBITDA starting in 2027 [2]. Group 3: Strategic Importance - The Arlington facility, a 600 MW natural gas-fired combined cycle plant, plays a crucial role in Arizona's energy landscape, ensuring reliable power and operational performance [3][6]. - The toll structure allows for flexibility during non-summer periods, enabling the facility to capture incremental energy value and capacity value in CAISO and the Desert Southwest starting in 2027 [5]. Group 4: Company Overview - Capital Power is recognized as North America's fifth-largest natural gas Independent Power Producer (IPP), emphasizing its commitment to reliable energy solutions across the continent [6]. - The company operates approximately 12 GW of power generation across 32 facilities, focusing on delivering reliable and affordable power while building lower-carbon power systems [18].