Meanwhile Hunter-Reay managed to reclaim several positions after his spin to finish a respectable P8, ahead of four-time champion Scott Dixon.
Newgarden quickly built up a gap over Power, and the 2014 Verizon IndyCar Series champion was never able to close on him from there. The worst result was 22nd previous year.
"I know we started on the pole and finished second, and that could be viewed as coming up short in some way, but it was a very good finish for the Verizon Chevrolet", he said on www.indycar.com.
"We were two or three seconds a lap off to the whole field". I didn't want to wait until the pits.
"I think something was broken", Dixon told Autoweek.
Dixon battled handling problems in the middle of the race and endured a slow final pit stop. He worked his way up to ninth, but couldn't contend with the quickest cars.
"I'm surprised that we didn't get in (the Firestone Fast Six) because it felt like a good lap and I put everything I had in it", Pagenaud said.
"That's as sideways as I've been in a long time", he said.
"It was just one of those days where everything that could go wrong did go wrong". It's frustrating, but that's how it goes sometimes. We still have an opportunity. Oliver Askew (Cape Motorsports) finished fourth and saw his points lead dwindle to 13 over VeeKay with one race remaining at Watkins Glen International on September 3.
Graham Rahal was third while championship contenders Simon Pagenaud and Castroneves finished fourth and seventh respectively.
Rahal was the other driver to win consecutive races this season, sweeping both ends of the Chevrolet Detroit Grand Prix presented by Lear doubleheader weekend.
"Obviously, congratulations to Josef", Dixon said of Newgarden, who celebrated his third victory of the season and second in a row.
"I really wasn't 100 percent happy after we tested here last week and in qualifying".
Team Penske appears poised to control Mid-Ohio again. "I wouldn't expect anything less". The mindset this time of year, with four races remaining, is that it's time to make a move.
"We'll overcome that. There's always the race tomorrow", Kanaan said. "Right now, we've just got to do the best that we can". Disappointed, at the same time we showed we've got the pace. You have to take each race as it comes and get the most out of it that you can.
The series shifts to oval racing for the next two events.
The 500-mile race airs live at 2 p.m. ET on NBCSN and the Advance Auto Parts INDYCAR Radio Network.
After a September 3 stop in Watkins Glen, New York, for the INDYCAR Grand Prix at The Glen (1 p.m. ET, NBCSN and Advance Auto Parts INDYCAR Radio Network), the points will be double for the season-ending GoPro Grand Prix of Sonoma on September 17 (6:30 p.m. ET, NBCSN and Advance Auto Parts INDYCAR Radio Network).
"We haven't won here", he said.