Ms. Katherine Perron reports

CAPITAL POWER ANNOUNCES CLOSING OF $400 MILLION SUBSCRIPTION RECEIPTS OFFERINGS

Capital Power Corp. has completed its previously announced public and private placement offerings of subscription receipts. The public offering consisted of the issuance of 8,231,000 subscription receipts (the "Public Subscription Receipts"), on a bought deal basis, at an issue price of $36.45 per Public Subscription Receipt (the "Offering Price"), for total gross proceeds of approximately $300 million (the "Public Offering") pursuant to an underwriting agreement with a syndicate of underwriters (the "Underwriters") led by TD Securities Inc. and National Bank Financial Inc. The Company has granted the Underwriters an over-allotment option to purchase, in whole or part, up to an additional 1,234,650 Public Subscription Receipts at the Offering Price to cover over-allotments, if any, exercisable at any time and from time to time until the date that is 30 days following the closing of the Public Offering. If the over-allotment option is exercised in full, gross proceeds from the Public Offering will be approximately $345 million.

Concurrently, the Company issued 2,745,000 subscription receipts (together with the Public Subscription Receipts, the "Subscription Receipts") at the Offering Price to Alberta Investment Management Corporation ("AIMCo") on a private placement basis for gross proceeds of approximately $100 million (the "Private Placement"). TD Securities Inc. acted as the sole agent and bookrunner for the Private Placement.

Each Subscription Receipt will entitle the holder thereof to receive, without payment of additional consideration or further action, upon the first to close of the Acquisitions (as defined below), one common share of Capital Power.

The net proceeds from the Offerings will be used to partially finance the previously announced acquisitions of (i) 100% of the equity interests in CXA La Paloma, LLC, which owns the 1,062 MW La Paloma natural gas generation facility in California, and (ii) 50% of the equity interests in New Harquahala Generation Company, LLC, which owns the 1,092 MW Harquahala natural gas generation facility in Arizona (collectively, the "Acquisitions") from CSG Investments, Inc., a subsidiary of Beal Financial Corporation, which are expected to close in the first quarter of 2024, subject to the receipt of regulatory approvals and the satisfaction of other customary closing conditions. Details of the Acquisitions and the Offerings were announced on November 20, 2023.

The gross proceeds from the sale of the Subscription Receipts less one-half of the Underwriters' fee for the Public Offering and the capital commitment fee for the Private Placement (the "Escrowed Funds") will be held in escrow by Computershare Trust Company of Canada, as subscription receipt agent for the Offerings (the "Subscription Receipt Agent"), and invested in interest-bearing deposits with banks and other financial institutions with issuer credit ratings with S&P Global Ratings, Inc. of at least A (as contemplated by, or specified in, the subscription receipt agreements for the Offerings) or other approved investments as set forth in the subscription receipt agreements for the Offerings, provided that Dividend Equivalent Payments may be made from the Escrowed Funds and the interest credited or received thereon from time to time, as described above.

The Public Subscription Receipts will begin trading on the Toronto Stock Exchange under the symbol CPX.R.

Territorial Acknowledgment

In the spirit of reconciliation, Capital Power respectfully acknowledges that we operate 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. We acknowledge the diverse Indigenous communities that are located in these areas and whose presence continues to enrich the community.

About Capital Power

Capital Power is a growth-oriented power producer committed to net zero by 2045. Our balanced approach to the energy transition prioritizes reliable, affordable and decarbonized power that communities across North America can depend on.

Capital Power owns approximately 7,500 megawatts (MW) of power generation capacity at 29 facilities across North America. Projects in advanced development include approximately 213 MW of renewable generation capacity in Alberta and North Carolina, 512 MW of incremental natural gas combined cycle capacity from the repowering of Genesee 1 and 2 in Alberta, and approximately 350 MW of natural gas and battery energy storage systems in Ontario.