Ms. Katherine Perron reports

CAPITAL POWER COMPLETES ACQUISITION OF 50.15% INTEREST IN THE FREDERICKSON 1 GENERATING STATION

Capital Power Corp. has successfully completed the acquisition of a 50.15-per-cent interest in the Frederickson 1 generating station, a 265-megawatt (MW) natural gas-fired combined-cycle generation facility in Pierce county, Washington. The acquisition was previously announced on Oct. 10, 2023.

The facility was acquired from Atlantic Power & Utilities for $97.5-million (U.S.), subject to working capital adjustments. Capital Power financed the transaction using cash on hand and its credit facilities. The other 49.85-per-cent interest in the facility is owned by Puget Sound Energy (PSE). As part of the ownership agreement with PSE, Capital Power will operate and maintain the facility and will receive an annual management fee under the operating arrangement with PSE.

Located southeast of Tacoma in the Puget Sound region load centre, Frederickson 1 is a flexible generation asset that is well positioned to support long-term energy security and reliability for the pacific northwest. The facility is supported by long-term contracts out to October, 2030, with creditworthy counterparties and is well positioned for recontracting as a key dispatchable, baseload asset in the region. Additionally, the Frederickson 1 site and adjacent lands provide ample room and infrastructure for future non-emitting, flexible generation developments.

The acquisition is immediately accretive to near-term cash flows and, for Capital Power's portion of the facility, provides an expected average contracted adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of $15-million (U.S.) per year during the five-year period of 2024 to 2029.

About Capital Power Corp.

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

Capital Power owns approximately 7,600 MW (megawatts) of power-generation capacity at 30 facilities across North America. Projects under construction include approximately 140 MW of renewable generation capacity and 512 MW of incremental natural gas combined cycle capacity from the repowering of Genesee 1 and 2 in Alberta, as well as approximately 350 MW of natural gas and battery energy storage systems in Ontario and approximately 70 MW of solar capacity in North Carolina in advanced development.

We seek Safe Harbor.