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JACKSON, Mich., Nov 21 /PRNewswire-FirstCall/
-- Consumers Energy, the principal subsidiary
of CMS Energy, closed today the sale of its
interests in the 1,500-megawatt Midland Cogeneration
Venture to funds managed by GSO Capital Partners
and Rockland Capital Energy Investments for
$60.5 million.
Net proceeds from the sale will be used to reduce
debt at the utility.
Consumers Energy owned 49 percent of the MCV
Partnership, which leases and operates the facility
near Midland, Michigan. Consumers Energy also
indirectly owned 35 percent of the facility
and along with the other owners leased the facility
to the MCV Partnership. GSO and Rockland purchased
all of Consumers Energy's interests.
Consumers Energy is the main customer for the
MCV's electricity output. The utility's contract
to purchase power from the plant and the associated
customer rates aren't affected by the sale.
The natural gas-fired MCV facility can produce
up to 1,500 megawatts of power and up to 1.35
million pounds of industrial steam per hour.
It began commercial operation in 1990.
Sustained high natural gas prices led the MCV
Partnership to reevaluate the economics of the
facility last year, and also led Consumers Energy
to examine several long-term alternatives for
its MCV interests.
Consumers Energy, the principal subsidiary of
CMS Energy (NYSE: CMS - News), provides natural
gas and electricity to nearly 6.5 million of
Michigan's 10 million residents in all 68 Lower
Peninsula counties.
For more information about Consumers Energy,
visit our Website at
http://www.consumersenergy.com
Source: Consumers Energy
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