Ms. Katherine Perron reports

CAPITAL POWER ANNOUNCES SUCCESSFUL COMPLETION OF CONSENT SOLICITATION PROCESS FOR ITS 7.95% FIXED-TO-FIXED RATE SUBORDINATED NOTES, SERIES 1

Capital Power Corp. has completed a previously announced solicitation of consents (the consent solicitation) from holders of its $350-million 7.95-per-cent fixed-to-fixed rate subordinated notes, Series 1, due Sept. 9, 2082. Based on the report of the tabulation agent for the consent solicitation, the consent solicitation received strong support and was approved by holders, significantly exceeding the required threshold of at least 66.67 per cent of the aggregate outstanding principal amount of the Series 1 notes.

As a result, the extraordinary resolution authorizing certain proposed amendments to the indenture governing the Series 1 notes has been approved. The proposed amendments will be effected by a supplemental indenture dated Aug. 15, 2024, to the indenture governing the Series 1 notes and will provide for the exchange of all outstanding principal amount of Series 1 notes for an equal principal amount of a new series of notes referred to as the 7.95-per-cent fixed-to-fixed rate subordinated notes, Series 3, due Sept. 9, 2082, issued under a supplemental indenture dated Aug. 15, 2024, to the trust indenture dated as of June 5, 2024 (the Series 3 supplemental indenture), all as more fully described in the consent solicitation Statement dated July 29, 2024. The Series 3 notes have the same economic terms, including but not limited to the interest rate, interest payment dates, maturity date and redemption provisions as the Series 1 notes (but excluding provisions of the Series 1 notes regarding delivery of preferred shares upon the occurrence of certain bankruptcy and related events), including an entitlement under the Series 3 notes for an amount equal to the interest accrued on the Series 1 notes that are exchanged. The note exchange is expected to commence today, Aug. 15, 2024, upon execution of the Series 1 supplemental indenture and the Series 3 supplemental indenture. The removal of the provisions for delivery of preferred shares upon the occurrence of certain bankruptcy and related events from Series 3 notes ensures the Series 3 notes will rank equally in right of payment with the $450-million 8.125-per-cent fixed-to-fixed subordinated notes, Series 2, due June 5, 2054, in all cases.

Following the completion of the note exchange, S&P Global Ratings and Morningstar DBRS are expected to assign and confirm the instrument rating of the Series 3 notes at BB and BB with a stable trend, respectively.

RBC Capital Markets and Scotiabank acted as the solicitation agents for the consent solicitation. Computershare Trust Company of Canada acted as the tabulation agent with respect to the consent solicitation.

Territorial acknowledgement

In the spirit of reconciliation, Capital Power respectfully acknowledges that the company 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 (TSX: CPX) is a growth-oriented power producer with approximately 9,300 megawatts of power generation at 32 facilities across North America. The company prioritizes safely delivering reliable and affordable power communities can depend on today, building clean power systems needed for tomorrow and creating balanced solutions for our energy future.

We seek Safe Harbor.