---

EDMONTON, Alberta – The Toronto Stock Exchange (TSX) has approved Capital Power Corporation’s (“Capital Power” or “the Company”) (TSX: CPX) normal course issuer bid (“NCIB”) to purchase and cancel up to 10,661,112 of its outstanding common shares during the one-year period from February 26, 2021 to February 25, 2022.

As of February 12, 2021, Capital Power had 106,970,793 common shares issued and outstanding and 106,611,123 common shares issued and outstanding after excluding common shares beneficially owned by directors and executive officers of Capital Power and persons who beneficially own or exercise control or direction over more than 10% of the issued and outstanding common shares of Capital Power (the “Public Float”). The 10,661,112 common shares under the NCIB represent approximately 10% of the Public Float and will be purchased only when and if the Company considers it advisable.

Pursuant to TSX rules, the maximum number of common shares that may be repurchased during the same trading day on the TSX is 87,397 common shares (being 25% of the average daily trading volume of Capital Power common shares for the six months preceding the date of TSX acceptance of the NCIB, which was equal to 349,589 common shares), subject to certain exceptions for block repurchases.

Capital Power repurchased and cancelled 461,832 shares on the open market through the facilities of the TSX and/or alternative Canadian trading platforms at a cost of $10,474,065 or an average of $22.67 per share under its prior NCIB approved by the TSX on February 24, 2020 for the period from February 26, 2020 to February 25, 2021.

Purchases will be made on behalf of the Company by a registered broker through facilities of the TSX at prevailing market prices pursuant to the rules of the TSX governing normal course issuer bids and/or through alternative Canadian trading platforms or as otherwise may be permitted by applicable securities regulatory authorities.

Capital Power believes that the market price of its common shares may, from time to time, not reflect the inherent value of the Company, and that purchases of common shares pursuant to the bid may represent an appropriate and desirable use of the Company’s funds. Therefore, Capital Power believes that it is in the best interest of the Company to proceed with the NCIB.

Forward-looking Information

Certain information in this news release relating to Capital Power is forward-looking information and related to anticipated events and strategies. When used in this context, words such as “will”, “anticipate”, “believe”, “plan”, “intend”, “target” and “expect” or similar words suggest future outcomes. Information with respect to the NCIB and Capital Power’s intentions to acquire common shares pursuant to the NCIB constitutes material forward-looking information. All forward-looking information or statements reflect Capital Power’s assumptions and analyses made by Capital Power in light of its experience and perception of historical trends, current conditions and expected future developments, and other factors it believes are appropriate. Whether actual results, performance or achievements will conform to the Company’s expectations and predictions is subject to a number of known and unknown risks and uncertainties which could cause actual results and experience to differ materially from the Company’s expectations. Readers are cautioned not to place undue reliance on this forward-looking information. Capital Power undertakes no obligation to update or revise any forward-looking information except as required by law.

About Capital Power

Capital Power is a growth-oriented North American wholesale power producer with a strategic focus on sustainable energy headquartered in Edmonton, Alberta. We build, own and operate high-quality, utility-scale generation facilities that include renewables and thermal. We have also made significant investments in carbon capture and utilization to reduce carbon impacts and are committed to be off coal in 2023. Capital Power owns over 6,500 megawatts (MW) of power generation capacity at 28 facilities across North America with approximately 425 MW of owned renewable generation capacity and 560 MW of incremental natural gas combined cycle capacity, from the repowering of Genesee 1 and 2, in advanced development in Alberta and North Carolina.