Capital Power Corporation announced the execution of a 6-year tolling agreement extension through October 2031 for its Arlington Valley (Arlington) facility with the current counterparty. Arlington is a 600-megawatt natural gas-fired combined cycle facility located west of Phoenix, Arizona that began commercial operations in 2002 and was acquired by Capital Power in late 2018. Arlington currently sells capacity and electricity to an investment grade load serving utility (credit ratings of A3/BBB+ from Moody's and S&P, respectively) under a tolling agreement during the summer months through 2025.

For the non-summer months through 2025, Arlington produces power to support a Heat Rate Call Option (HRCO) with another investment grade counterparty when called upon. When not called to support the HRCO, Arlington may sell energy into the DSW or the California Independent System Operator (CAISO) wholesale markets. Under the extension, the tolling agreement will cover six months of the year starting in 2026 compared to the four summer months currently.