Midland Cogeneration Venture

1 What Is The MCV The Midland Cogeneration Venture (MCV) operates one of the largest combined-cycle cogeneration power plants in the .

MCV was formed as a limited partnership to convert an incomplete nuclear power plant into a gas-fired, combined-cycle cogeneration facility. The converted plant commenced operations in 1990.

In 2009, MCV was acquired by EQT INFRASTRUCTURE, a leading global private equity fund and FORTISTAR, a company who owns and manages over 60 power projects in North America with total generation capacity of 3,000 MW. 2 What Is Combined Cycle Cogeneration

Cogeneration means that two kinds of energy are produced from one fuel source. In MCV’s case, process steam and electricity are produced from clean-burning natural gas.

Combined Cycle plants generate electricity by burning natural gas in a gas turbine and use the residual heat to produce steam to generate additional electricity in a steam turbine.

MCV is over 45% efficient in converting the energy in natural gas to steam and electricity.

3 Where Does MCV get its Natural Gas Supply MCV is the largest single-site user of natural gas in , expected to burn in excess of 50 Bcf this year.

MCV’s natural gas supply originates primarily from the Gulf Coast and Mid-continent regions of the United States but a portion consists of Canadian and Michigan production as well.

In the past, virtually all of MCV’s gas supply was delivered from Consumers Energy’s gas pipeline. Recently Consumers has notified MCV that their distribution system is no longer capable of supplying MCV’s total fuel requirements due to system constraints.

MCV will rely more heavily on Canadian gas deliveries from the Great Lakes Pipeline. 4 Who Are MCV’s Customers

MCV has a generating capacity of more than 1,600 MW and up to 1.5 million pounds per hour of process steam for industrial use.

1240 MW of MCV capacity and electric energy is sold to Consumers Energy under a long-term Power Purchase Agreement (PPA).

MCV also sells electricity and process steam to The and process steam to Dow Corning Corporation.

Excess capacity and electric energy is offered and sold into the energy market operated by the Midwest ISO (MISO).

5 What Regulations Impact MCV

MCV is a Qualifying Facility (QF) pursuant to federal law and is exempt from many of the FERC’s regulations as well as state regulations imposed on public utilities.

FERC has granted MCV a Market Based Rate (MBR) tariff allowing MCV to sell capacity, electric energy, and ancillary services under the PPA and in the MISO energy market. MCV’s MBR imposes certain federal regulations on MCV.

6 What Is MCV’s Impact on Michigan Now and in the Future

MCV has the capacity to provide power to as many as one million homes in Michigan.

MCV has produced in excess of 160 billion kilowatt hours of electricity since commercial operations began in 1990.

MCV has produced over 108 billion pounds of industrial steam since 1990.

MCV’s availability under the PPA is over 99% for the life of the facility, making MCV one of the most reliable sources of energy in Michigan.

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MCV’s Record of Continuous Improvement

MCV has increased plant capacity over the years from 1382 MW to 1600 MW by continually investing in the latest turbine technologies.

MCV’s extraordinarily high PPA availability is the result of a long-term strategy to invest in plant infrastructure and to initiate policies that maximize reliability.

8 MCV’s Future

MCV continually engages with existing and potential future customers to seek ways to help meet the future energy needs of Michigan.

MCV has available infrastructure to increase generation capability at this site (land, easements, water, transmission interconnect, gas pipeline, rail access, experienced personnel, etc.) and we are currently engaged in preliminary work to support a plant expansion.

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