Operational discipline is our competitive edge 

In today’s rapidly evolving power landscape, one truth stands out – owning generation assets is no longer enough. The companies that will lead in this era of rapidly increasing power demand are those that can operate with discipline – delivering consistently, optimizing with precision, and executing with intent.

At Capital Power, operational discipline is not just how we run our business; it is a core competitive advantage that’s built into our DNA.

We don’t just own assets – we transform them

From day one, Capital Power has taken a deliberate approach to building a fleet that can outperform. But what truly sets us apart is what happens after an asset becomes part of our portfolio.

We believe the greatest value in power generation is created after acquisition – through safe operation, targeted investment, and relentless optimization across the asset lifecycle. We apply a systematic model that delivers:

• Best-in-class operations: rooted in deep technical expertise and a culture of proactive maintenance to ensure safety and reliability
• Commercial sophistication: translating reliability into long‑term value through disciplined market insight, flexible contracting, and customer‑focused solutions
• Asset longevity and enhancement: upgrading, extending life, and adding megawatts (MW)

This approach is repeatable, scalable, and embedded across our organization.

Optimization isn’t a one-time initiative – it’s a continuous discipline and a core driver of value creation at Capital Power.

Since 2019, we’ve added nearly 900 MW of brownfield capacity across our thermal fleet through upgrades and expansions, all at well below the cost of new entry. Beyond upgrading equipment, we’ve strengthened how our assets operate day-to-day. We’ve reduced major maintenance capital costs by 23%, added more efficient megawatt capacity and lowered our carbon intensity by 37%². Together, these improvements are creating a lower-carbon, more cost-effective fleet, as demonstrated with:

• Upgrades at our Decatur Energy Center, York Energy Centre, and Goreway Power Station that improved heat rates and added a total of 180 MW.
• The transformational repowering of the Genesee Generating Station from coal to natural gas – this industry-leading project increased the overall capacity at the Genesee Generating Station by 512 megawatts (MW) and reduces CO₂ emissions by 3.4 million tonnes annually – representing a ~60% increase in capacity while reducing emissions by ~40%³ – making Genesee one of the most efficient natural gas facilities in Canada⁴.
• 170 MW of battery energy storage at Goreway and York enhance flexibility and responsiveness for the local grid.
• Life extension programs (upgrading existing technology to extend operational life, improve efficiency, and reduce emissions), including one currently underway at Midland Cogeneration Venture.

This approach of optimization converts existing assets into higher value, longer life generators, delivering reliable megawatts at lower cost, with lower emissions, and creating durable value well beyond the initial investment.

Looking forward, our existing assets alone offer up to 3 GW of additional optimization potential, from uprates to new turbines to repowering projects.

^¹ Source: Capital Power, 2025 Investor Day Presentation, slide 32.
² Source: Capital Power, 2025 Investor Day Presentation, slide 35.
³Anticipated annual GHG emission reductions from Genesee Repowering project and transition off coal compared to 2019 facility emissions.
⁴Repowered Units 1 and 2 at Genesee Generating Station use Mitsubishi M501JAC turbines and Vogt heat recovery steam generators in combined cycle mode and are the most efficient combined cycle units currently operating in Canada.