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EDMONTON, Alberta – Capital Power Corporation (“Capital Power” or “the Company”) (TSX: CPX) has released its inaugural Green Financing Framework (“Framework”) under which the Company will issue green bonds and green loans (“Green Financing”). The Framework reflects the Company’s commitment to allocate capital towards wind, solar and storage projects that align with the Company’s sustainability targets and support its strategy to be net-carbon neutral by 2050.

“Establishing a Green Financing Framework exemplifies Capital Power’s commitment to powering a sustainable future for people and planet. The development of wind, solar and storage projects is a key pillar of our growth and decarbonization strategy,” said Sandra Haskins, Senior Vice President, Finance and Chief Financial Officer. “The Framework provides transparency to our stakeholders as we execute on our strategy.”

The Framework sets out the guidelines for Capital Power’s Green Financing in accordance with the Green Bond Principles 2021 issued by the International Capital Markets Association (“ICMA”) and the Green Loan Principles 2021 issued by the Loan Market Association and Loan Syndications and Trading Association. The Framework has also been designed to align with the practices, actions, and disclosures recommended in the ICMA’s Climate Transition Finance Handbook 2020.

Under the Framework, the net proceeds from a Green Financing will be allocated or used to finance or re-finance, in part or in full, new and/or existing green investments and expenditures made by the Company that meet the Renewable Energy category, as defined in the Framework, and are aligned with the United Nations Sustainable Development Goals: affordable and clean energy; industry, innovation and infrastructure; and climate action.

Until the Green Financing issued under this Framework is fully allocated, Capital Power will report publicly on the use of the proceeds within one year of issuance and annually thereafter. Both the Allocation and Impact Reports will be posted on the Company’s website. An external verification of the Allocation Report will be provided by an independent external auditor on an annual basis until the complete allocation of proceeds.

Sustainalytics reviewed the Framework and provided a second-party opinion confirming that the Framework is credible and impactful and aligns with the Green Bond Principles 2021 and Green Loan Principles 2021. BMO Capital Markets advised Capital Power on the development of the Framework as lead structuring agent.

The Green Financing Framework and the second-party opinion from Sustainalytics can be found on the Company’s website.

Forward-looking Information

Certain information in this news release is forward-looking within the meaning of Canadian securities law as it relates to anticipated financial and operating performance, events or strategies. The forward-looking information or statements are provided to inform the Company’s shareholders and potential investors about management’s assessment of Capital Power’s future plans and operations. This information may not be appropriate for other purposes. The forward-looking information in this press release is generally identified by words such as will, anticipate, believe, plan, intend, target, and expect or similar words that suggest future outcomes.

Material forward-looking information in this press release includes expectations regarding: (i) the Company’s intention to complete Green Financings, (ii) the use of proceeds of Green Financings and the allocation of such proceeds in accordance with the Framework, (iii) the impact of Green Financing expenditures on the achievement of the Company’s decarbonization objectives, and (iv) Allocation and Impact Reports and the external verification of Allocation Reports.

These statements are based on certain assumptions and analyses made by the Company in light of its experience and perception of historical trends, current conditions, expected future developments, and other factors it believes are appropriate, including its review of purchased businesses and assets. The material factors and assumptions used to develop these forward-looking statements relate to: (i) electricity and other energy prices, (ii) performance, (iii) business prospects (including potential re-contracting of facilities) and opportunities including expected growth and capital projects, (iv) status of and impact of policy, legislation and regulations, (v) effective tax rates, (vi) availability and sources of capital, and (vii) the ability to obtain required regulatory approvals.

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. Such material risks and uncertainties are: (i) changes in electricity, natural gas and carbon prices in markets in which the Company operates and the use of derivatives, (ii) regulatory and political environments including changes to environmental, financial reporting, market structure and tax legislation as well as the receipt and timing thereof of required regulatory approvals, (iii) generation facility availability and performance including maintenance of equipment, (iv) ability to fund current and future capital and working capital needs, (v) acquisitions and developments including timing and costs of regulatory approvals and construction, (vi) changes in market prices and availability of fuel, (vii) the ability to realize the anticipated benefits of acquisitions, (vii) limitations inherent in the Company’s review of acquired assets, (viii) changes in general economic and competitive conditions including fluctuations in interest and exchange rates, and (ix) changes in the performance and cost of technologies and the development of new technologies, new energy efficient products, services and programs. See “Risks and Risk Management” in the Company’s 2021 Management’s Discussion and Analysis for further discussion of these and other risks.

Readers are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the specified approval date. The Company does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in the Company’s expectations or any change in events, conditions or circumstances on which any such statement is based, except as required by law.

About Capital Power

Capital Power (TSX: CPX) 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 approximately 6,600 MW of power generation capacity at 27 facilities across North America. Projects in advanced development include approximately 385 MW of owned renewable generation capacity in North Carolina and Alberta and 512 MW of incremental natural gas combined cycle capacity, from the repowering of Genesee 1 and 2 in Alberta.