Michigan Public Service Commission Approves Settlement Agreement Between Midland Cogeneration Venture and Consumers Energy
MIDLAND, MI – June 10, 2008 — Today Rockland Capital Energy Investments (“Rockland”) announced that the Michigan Public Service Commission (“MPSC”) approved a settlement agreement in Case No. U-15320 relating to the Midland Cogeneration Venture (“MCV”). Case No. U-15320 was initiated by a petition filed by the MCV to eliminate availability caps applicable to its Power Purchase Agreement (“PPA”) with Consumers Energy Company (“Consumers”).
MCV leases and operates a gas-fired, combined-cycle cogeneration facility in Midland, Michigan. The plant is capable of producing approximately 1,500 megawatts of electricity and up to 1.35 million pounds per hour of process steam for industrial use. Rockland and its partners, including GSO Capital, own 92.5% of the MCV partnership.
Under the terms of the settlement, the PPA originally dated July 17, 1986 will be amended and restated in its entirety. The restated PPA will take effect later this year and run through March 15, 2025. The restated PPA provides the terms under which Consumers will purchase 1,240 megawatts of capacity and associated energy from the MCV Facility during that time period.
“The restructuring of the MCV PPA is a further demonstration of Rockland’s strategy of removing economic inefficiencies and enhancing the long-term viability of power projects. The restated PPA will provide significant benefit to Consumers Energy and its customers by allowing MCV to continue to provide reliable and competitively priced electric power and much needed capacity to the Michigan market,” said Dave Yeager, Managing Director of Rockland Capital.
About Rockland Capital
Rockland Capital, a private equity firm founded in 2003, is focused on the acquisition, optimization and development of companies and projects in the North American power sector. The firm manages Rockland Power Partners and Rockland Capital Energy Investments and has offices in Houston and New York.