Creating the Power Company of Tomorrow
At Capital Power we are working to deliver Responsible Energy for Tomorrow by optimizing our generation portfolio to meet the power needs of today, as well as establishing a pipeline of responsible development opportunities to dynamically position our company to meet the power needs and sustainability expectations of generations to come.
From a Corporate Development and Commercial Services perspective, we are focused on developing a dynamic growth strategy to ensure Capital Power’s business model is future-focused, agile and ready to:
- Adapt to changing regulatory environments so we can produce reliable power for the jurisdictions we operate in,
- Meet the economic demands driven by our markets and customers for reasonably priced power,
- Exceed the expectations placed on power generators by society to operate responsibly and deliver sustainable power, and
- Continue to deliver shareholder value and provide an attractive investment opportunity.
An industry in flux
Power generation isn’t a new industry – for the past 150 years companies have been generating electricity to meet demand. Historically, the main driver of change in our industry has been the rate at which demand for power has increased as our society and economy have become more and more reliant on electricity. But, over the last 10 years there has been a phenomenal amount of change in our industry – driven not only by increasing demand for power but by evolving expectations from society for how that power should be generated.
Today, electricity has permeated our way of life and become an indispensable part of modern society. From hospitals to the phone in your pocket, our society has become increasingly reliant on electricity to power our lives. As society requires more electricity, they are also evaluating how it is generated and setting expectations for the type of product they receive and how it is sourced. Consumers, governments and customers are increasingly seeking lower-carbon energy options, including renewables to be a larger part of the generation mix to meet their power needs. Power generators that embrace this change, address the needs of all stakeholders and position themselves as future-forward will be economically viable, and ultimately the power companies of tomorrow in our industry. Capital Power is responsibly evolving our strategy to meet these expectations and deliver Responsible Energy for Tomorrow.
Adapting our strategy
Governments require us to deliver reliable power. Consumers want affordable power. Society, including our shareholders, expects responsible, sustainable power. This evolution, and increased complexity, of the demand for power must be addressed to ensure the longevity of our business.
Building on our fundamentals as a responsible and reliable operator of power generation assets, we’ve focused our growth strategy on adding natural gas and renewables generation. As a generator with baseload, mid-merit and peaking assets across North America, we recognize the role of natural gas, in conjunction with emissions reduction technologies like carbon capture and utilization (CCU), as a key part of the fuel mix of the future to ensure reliable power in tandem with renewables. With battery and storage technology still in growing stages of development, supplementary baseload and peaking power sourced from responsible natural gas generation will be necessary when the wind isn’t blowing and the sun isn’t shining to power these intermittent, non-dispatchable renewable options.
1) Based on Adjusted EBITDA excluding G&A expenses and including off-coal compensation and finance lease principal payments.
2) Adjusted EBITDA and AFFO per share are non-GAAP financial measures.
3) Based on midpoint of the $485M – $535M guidance range.
Our strategy has also focused on increasing our contracted capacity, diversifying our geographic footprint, and increasing our cash flow. Ultimately, we’ve delivered a stable and growing dividend backed by contracted assets, as well as invested our time, expertise and money to improve efficiency, lower emissions and develop lower-carbon generation. Today, our high-quality portfolio of assets and experienced team have enabled us to achieve competitive advantages across the whole power generation value chain in Alberta, and we are actively implementing our experience and expertise across our assets in multiple jurisdictions in Canada and the United States. We’ve positioned ourselves as a lower-carbon generator capable of delivering the power required today and expected for tomorrow.
Building a stronger future
Looking to the future, Capital Power will continue to optimize our business model to successfully meet the power needs and expectations of society. We will continue to invest in contracted assets, expand our natural gas and renewables generation capacity, diversify geographically and deliver value for our shareholders.
With our focus on delivering Responsible Energy for Tomorrow driving our corporate strategy, Capital Power is well-positioned to be the power company of tomorrow – providing sustainable electricity solutions for generations to come.