EDMONTON, Alberta — January 7, 2026 — Leads & Copy — Capital Power (TSX: CPX) announced today that it has extended its summer tolling agreement for the Arlington facility with its current counterparty, an investment-grade utility. The agreement extends the existing 2031 agreement through October 2038, providing 13 years of contracted revenue.
The 6-month contract structure allows the facility to capture increasing merchant value during the winter months, while retaining the stability of contracted summer revenues. The facility is expected to realize a full year adjusted EBITDA uplift of approximately US$70 million annually by 2032, inclusive of the uprate. The uprate is expected to contribute approximately US$8M per year adjusted EBITDA over the life of the asset, starting in 2027.
Avik Dey, President and CEO of Capital Power, stated that the agreement highlights Arlington’s essential role as a vital pillar of grid reliability for the region. He added that the company is committed to securing long-term value from its assets and investing in the U.S. southwest.
The Arlington facility is a 600 MW natural gas-fired combined cycle facility located west of Phoenix, Arizona. Capital Power acquired it in 2018. As part of the agreement, the facility will undergo a 35 MW capacity uprate to summer capacity, with 10 MWs added in 2026 and an additional 25 MW in 2027. This investment will strengthen Arlington’s ability to provide reliable power during Arizona’s peak summer demand.
The Arlington toll structure offers strategic benefits by maintaining flexibility during non-summer periods. It provides opportunities for incremental energy and, starting in 2027, capacity value in CAISO and the Desert Southwest through trading and commercial optimization.
Capital Power is North America’s fifth-largest natural gas IPP, and continues to build on established relationships, reinforcing its long-term commitment to reliable energy solutions across the continent.
Contact:
Media Relations:
Katherine Perron
(780) 392-5335
kperron@capitalpower.com
Investor Relations:
Noreen Farrell
(403) 461-5236
investor@capitalpower.com
Source: Capital Power
