Capital Power -President and CEO, Brian Vaasjo
President and CEO, Brian Vaasjo
Source: Globe and Mail
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  • Capital Power Corporation (CPX) is executing a six-year tolling agreement extension for its Arlington Valley facility with the current counterparty
  • Arlington is a 600-megawatt natural gas-fired combined cycle facility located west of Phoenix, Arizona
  • Under the extension, the tolling agreement will cover six months of the year starting in 2026
  • An adjusted EBITDA will increase to an average of US$47 million per year and US$34 million of AFFO per year for the six-year period from 2026 to 2031
  • Capital Power Corporation (CPX) is down 0.33 per cent and is trading at $39.33 per share as of 1:40 p.m. EST

Capital Power Corporation (CPX) is executing a six-year tolling agreement extension for its Arlington Valley facility with the current counterparty.

Arlington is a 600-megawatt natural gas-fired combined-cycle facility located west of Phoenix, Arizona.

Brian Vaasjo, President and CEO of Capital Power, stated

“Arlington Valley is our second natural gas facility at which we have executed a long-term extension after the facility was acquired.”

Arlington currently sells capacity and electricity to an investment-grade load-serving utility under a tolling agreement during the summer months through 2025.

For the non-summer months, Arlington produces power to support a Heat Rate Call Option (HRCO) with another investment grade counterparty when called upon.

Under the extension, the tolling agreement will cover six months of the year starting in 2026.

An adjusted EBITDA will move towards the low end of the original guidance range for 2024 and 2025.

This is before increasing to an average of US$47 million per year and US$34 million of AFFO per year for the six-year period from 2026 to 2031.

“Arlington operates in the attractive Desert Southwest power market where there is a significant need for reliable, dispatchable gas-fired generation to address reductions in baseload coal capacity, meet growing demand, and help with the integration of renewables,” said Vaasjo.

Capital Power Corporation (CPX) is down 0.33 per cent and is trading at $39.33 per share as of 1:40 p.m. EST.

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