News Summary

Capital Power Corp., an Edmonton-based power generator, is making strategic moves to expand its foothold in the U.S. power market with a $3-billion acquisition of the Hummel and Rolling Hills natural gas power stations in Pennsylvania and Ohio, respectively. These acquisitions, from LS Power Equity Advisers LLC, will mark Capital Power’s entry into the Pennsylvania-New Jersey-Maryland Interconnection market, touted as North America’s largest and most attractive. CEO Avik Dey emphasized that the focus for the year is to close the transaction and integrate these new assets. Despite a decline in first-quarter profits and revenue, the company remains bullish on the growth potential of natural gas power, driven by increasing demand from sectors like artificial intelligence data centers. Capital Power has also upgraded its Genesee Generating Station in Alberta to run entirely on natural gas, boosting its capacity and reducing emissions, and is actively seeking data center partnerships.