Mr. Brian Vaasjo reports

CAPITAL POWER EXECUTES 20-YEAR CONTRACTS FOR THREE SOLAR DEVELOPMENT PROJECTS IN NORTH CAROLINA TOTALING 160 MEGAWATTS

Capital Power Corp. has executed 20-year power purchase agreements with Duke Energy Carolinas for three solar development projects located in North Carolina totalling 160 megawatts (MW). The solar projects consist of Hornet Solar (75 MW), Hunter's Cove Solar (50 MW) and Bear Branch Solar (35 MW). Construction of the solar projects is expected to begin in late 2021 or early 2022 with commercial operations expected in the fourth quarter of 2022.

"We are delighted to provide additional renewable energy to the people of North Carolina," said Brian Vaasjo, president and chief executive officer of Capital Power. "With the Whitla Wind 2 and 3 and Strathmore Solar projects in advanced development in Alberta, we will be adding an additional 350 megawatts in renewable capacity to our fleet by the end of 2022, representing another step toward our goal of being net carbon neutral on or before 2050. We continue to enhance our expertise in solar development and construction while building our competitiveness for future solar growth opportunities."

Palladium Energy LLC and Renewable Energy Services LLC assisted Capital Power on the project while the company continues to optimize project design, build cost and tax equity financing. The initial build assumption includes $260-million ($198-million (U.S.)) to construct the solar projects. Capital Power expects to finance the solar projects using debt and tax equity.

With their 20-year contract terms, the North Carolina solar projects will strengthen the company's contracted cash flows while increasing the average remaining contract life of its contracted assets. The investment is expected to meet Capital Power's after-tax hurdle rate with the average accretion expected to be neutral to adjusted funds from operations (AFFO) in the first five years. The solar projects are expected to generate approximately $23-million ($17-million (U.S.)) of adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) and $5-million ($4-million (U.S.)) of adjusted funds from operations (AFFO) annually on average in the first five years.

About Capital Power Corp.

Capital Power is a growth-oriented North American power producer headquartered in Edmonton, Alta. The company develops, acquires, owns and operates power generation facilities using a variety of energy sources. Capital Power owns approximately 6,500 megawatts (MW) of power generation capacity at 28 facilities across North America. Approximately 350 MW of owned generation capacity is in advanced development in Alberta and North Carolina.

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