Ms. Katherine Perron reports

CAPITAL POWER PROVIDES NOTICE OF PREFERRED SHARES (SERIES 5) CONVERSION PRIVILEGE AND DIVIDEND RATE NOTICE

Capital Power Corp. has notified registered shareholders of its cumulative rate reset preference shares, Series 5, of the conversion privilege and dividend rate notice.

Subject to certain conditions, beginning on May 31, 2023, and ending at 5 p.m. (Toronto time) on June 15, 2023, each registered holder of Series 5 shares will have the right to elect to convert any or all of their Series 5 shares into an equal number of cumulative floating rate preference shares, Series 6, by delivering an election notice to the corporation.

If Capital Power does not receive an election notice from a holder of Series 5 shares during the time fixed therefor, then the Series 5 shares shall be deemed not to have been converted (except in the case of an automatic conversion, see below). Holders of the Series 5 shares and the Series 6 shares will have the opportunity to convert their shares again on June 30, 2028, and every five years thereafter as long as the shares remain outstanding.

Effective June 30, 2023, on May 31, 2023, the annual fixed dividend rate for the Series 5 shares was set for the next five-year period at 6.63100 per cent. Effective June 30, 2023, on May 31, 2023, the floating quarterly dividend rate for the Series 6 shares was set for the first quarterly floating rate period (being the period from and including June 30, 2023, to but excluding Sept. 30, 2023) at 1.94410 per cent. The floating quarterly dividend rate will be reset every quarter.

The Series 5 shares are issued in book-entry-only form and, as such, the sole registered holder of the Series 5 shares is CDS Clearing and Depository Services Inc. All rights of beneficial holders of Series 5 shares must be exercised through CDS or the CDS participant through which the Series 5 shares are held. The deadline for the registered shareholder to provide notice of exercise of the right to convert Series 5 shares into Series 6 shares is 3 p.m. (MT)/5 p.m. (ET) on June 15, 2023. Any election notices received after this deadline will not be valid. As such, beneficial holders of Series 5 shares who wish to exercise their rights to convert their shares should contact their broker or other intermediary for more information and it is recommended that this be done well in advance of the deadline in order to provide the broker or other intermediary with time to complete the necessary steps.

After June 15, 2023: (i) if Capital Power determines that there would remain outstanding on June 30, 2023, less than one million Series 5 shares, all remaining Series 5 shares will be automatically converted into Series 6 shares on a one-for-one basis, effective June 30, 2023 (an automatic conversion); or (ii) if Capital Power determines that there would remain outstanding after June 30, 2023, less than one million Series 6 shares, no Series 5 shares will be permitted to be converted into Series 6 shares, effective June 30, 2023. There are currently eight million Series 5 shares outstanding.

The Toronto Stock Exchange (TSX) has conditionally approved the listing of the Series 6 shares, effective upon conversion. Listing of the Series 6 shares is subject to Capital Power fulfilling all the listing requirements of the TSX and upon approval, the Series 6 shares will be listed on the TSX under the trading symbol CPX.PR.F.

Territorial acknowledgment

In the spirit of reconciliation, Capital Power respectfully acknowledges that it operates within the ancestral homelands, traditional and treaty territories of the indigenous peoples of Turtle Island, or North America. Capital Power's head office is located within the traditional and contemporary home of many indigenous peoples of the Treaty 6 territory and Metis Nation of Alberta Region 4. The company acknowledges the diverse indigenous communities that are located in these areas and whose presence continues to enrich the community.

About Capital Power Corp.

Capital Power is a growth-oriented North American wholesale power producer with a strategic focus on sustainable energy headquartered in Edmonton, Alta. It builds, owns and operates high-quality, utility-scale generation facilities that include renewables and thermal. The company has also made significant investments in carbon capture and utilization to reduce carbon impacts. Capital Power owns approximately 7,500 megawatts of power generation capacity at 29 facilities across North America. Projects in advanced development include approximately 151 MW of owned renewable generation capacity in Alberta and 512 MW of incremental natural gas combined cycle capacity, from the repowering of Genesee 1 and 2 in Alberta.