Power Group Online Article |  | |
25 July 2006 -- Consumers Energy, the principal subsidiary of CMS Energy, has reached an agreement to sell the utility's interests in the 1,500-MW Midland Cogeneration Venture to GSO Capital Partners and Rockland Capital Energy Investments for $60.5 million, the companies announced today.
Consumers Energy owns 49 percent of the MCV Partnership, which leases and operates the facility near Midland, Michigan. Consumers Energy also indirectly owns 35 percent of the facility and along with the other owners leases the facility to the MCV Partnership.
The sales agreement calls for GSO and Rockland to purchase all of the Michigan utility's interests. GSO and Rockland also will provide Consumers Energy a financial guarantee to back certain contingent obligations.
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, are not affected by the sale.
The sale is the result of a competitive process. Proceeds from the sale will be used to reduce debt at the utility, following a review by the Michigan Public Service Commission.
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