Mr. Roy Arthur reports

CAPITAL POWER COMPLETES ACQUISITION OF THE LA PALOMA FACILITY, ANTICIPATES CLOSING THE HARQUAHALA FACILITY ACQUISITION MID-FEBRUARY AND EXCHANGES SUBSCRIPTION RECEIPTS INTO COMMON SHARES

Capital Power Corp. has closed the acquisition of 100 per cent of the equity interests in CXA La Paloma LLC, owner of the 1,062-megawatt (MW) La Paloma natural-gas-fired generation facility in Kern county, Calif.

In addition, Federal Energy Regulatory Commission (FERC) approval for the acquisition by a 50/50 partnership between Capital Power Investments LLC and an affiliate of a fund managed by BlackRock's Diversified Infrastructure business of 100 per cent of the equity interests in New Harquahala Generation Company LLC has been received, and the closing of that acquisition is expected shortly, subject to normal closing conditions. Harquahala owns the 1,092 MW Harquahala natural-gas-fired generation facility in Maricopa county, Arizona. The Harquahala closing is anticipated in conjunction with the closing of approximately $442-million (U.S.) of combined term loans, letter of credit loans and revolving loans.

The acquisitions were previously announced on Nov. 20, 2023. The net purchase price for the acquisitions attributable to Capital Power is $1.1-billion (U.S.), subject to working capital adjustments. Capital Power partially financed the acquisitions with the net proceeds of an offering of subscription receipts for approximately $400-million, which closed on Nov. 28, 2023, and consisted of a $300-million bought public offering and a $100-million private placement with Alberta Investment Management Corp. (AIMCo). Capital Power also financed the acquisitions with the net proceeds from a public offering of $850-million principal amount of unsecured medium-term notes in Canada, which closed on Dec. 15, 2023. Capital Power will be responsible for the operation, maintenance and asset management of the facilities relating to the acquisitions, and will receive an annual management fee for the Harquahala facility.

With the closing of the La Paloma acquisition having occurred, each subscription receipt will be automatically exchanged in accordance with their terms, without payment of additional consideration and without further action on the part of the holders thereof, for one common share of Capital Power. Trading in the subscription receipts is expected to be halted and the subscription receipts will be delisted from the Toronto Stock Exchange at the close of trading today.

Facilities overview

Located in the United States WECC (Western Electricity Coordinating Council) region, the acquisitions are strategically positioned within their markets and create additional growth opportunities for both the company's gas-fired and renewable generation businesses. Capital Power intends to leverage its deep knowledge and experience in plant operations to commercially optimize these assets and help drive long-term value as part of its broader fleet. Capital Power's fleet of flexible and reliable gas-fired generation assets is the fifth largest in North America, with the addition of the acquisitions and the recently closed Frederickson 1 generating station acquisition.

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 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 8,800 megawatts of power generation capacity at 31 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.