Capital Power executes new contract for Midland Cogeneration Venture with Consumers Energy

Capital Power (TSX: CPX,OTC:CPXWF) is pleased to announce the successful execution of a new long-term contract with improved economic terms for Midland Cogeneration Venture ("MCV") with Consumers Energy, extending to 2040 and providing 10 years of incremental contracted revenue.

MCV ¹ is the largest natural gas-fired combined electric and steam generation facility in the United States, and a cornerstone of reliable power generation in Michigan. MCV will receive payments for 1,240 MW, approximately 75% of the facility's capacity starting in June 2030 under the new PPA, creating long-term revenue stability throughout the contract term. The contract is expected to generate a gross increase in full year adjusted EBITDA ² for the facility of approximately US$100 million ¹ annually (representing an 85% increase over current contract pricing ³ ).

"We are proud to continue our partnership with Consumers Energy, one of America's most respected utilities," said Avik Dey, President and CEO of Capital Power. "Michigan is an attractive and growing market for electricity. This contract is an important milestone for Capital Power as it reinforces the critical role efficient natural gas assets like MCV play in maintaining grid reliability as energy demand grows."

"Investing in assets that seek stable cash flows with the ability to enhance that profile through long-term contract extensions with creditworthy counterparties is a key principle of our strategy," said Recep Kendircioglu, Global Head of Infrastructure, Manulife Investment Management. "This Agreement underscores that MCV is vital to the MISO market, and we are pleased to own the facility alongside a terrific partner in Capital Power."

"We're pleased to continue our long-standing relationship with Capital Power through this new PPA," said Sri Maddipati, President of Electric Supply, Consumers Energy. "The Midland Cogeneration Venture has been a reliable source of energy for our customers for decades, and this agreement ensures continued reliability and affordability as we transition to a sustainable energy future."

The MCV facility is a key part of Michigan's energy infrastructure, delivering an exceptional track record for reliability and operating performance. As North America's fifth-largest natural gas IPP, Capital Power is forging strategic partnerships to help shape the future of energy across the continent.

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¹ Jointly owned with 50% working interest with Manulife Investment Management.
² Adjusted EBITDA is a non-GAAP financial measure. See Non-GAAP Financial Measures and Ratios.
³ Based on 2030 contract pricing.

Forward-looking Information
This news release contains forward-looking information and forward-looking statements (collectively referred to as "forward-looking information") within the meaning of applicable securities laws. Such forward-looking information is provided to inform Capital Power's shareholders and potential investors about management's current expectations and plans relating to the future. Readers are cautioned that reliance on such information may not be appropriate for other purposes. Although Capital Power believes that the expectations represented by such forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. Any such forward-looking information may be identified by words such as "anticipate", "proposed", "estimated", "estimates", "would", "expects", "intends", "plans", "may", "will", or similar expressions, although not all forward-looking information contain these identifying words.

More particularly and without limitation, the forward-looking information in this news release includes expectations regarding the increase to the full year adjusted EBITDA for the facility. Such forward-looking information is based on certain assumptions and analyses made by Capital Power concerning its experience and perception of historical trends, current conditions, expected future developments, and other factors it believes are appropriate, including its review of the anticipated benefits of the Agreement. The material factors and assumptions used to develop these forward-looking statements relate to: electricity and other energy (including natural gas) and carbon prices; Capital Power's performance; business prospects and opportunities including expected growth and capital projects; the energy needs of certain jurisdictions; the approval of the Michigan Public Services Commission of the Agreement; the status and impact of policy, legislation and regulations; effective tax rates; and the development and performance of technology.

Whether actual results, performance or achievements will conform to Capital Power's expectations and predictions are subject to a number of known and unknown risks and uncertainties which could cause actual results and experience to differ materially from Capital Power's expectations and the forward-looking information contained in this news release. Such material risks and uncertainties are: changes in electricity, natural gas and carbon prices in markets in which Capital Power operates and the use of derivatives; regulatory and political environments, including changes to environmental, climate, financial reporting, market structure and tax legislation; disruptions, or price volatility within Capital Power's supply chains; generation facility availability, wind capacity factor and performance including maintenance expenditures; ability to fund current and future capital and working capital needs; developments including timing and costs of regulatory approvals; changes in market prices and the availability of fuel; changes in general economic and competitive conditions, including inflation; and 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 Capital Power's Integrated Annual Report for the year ended December 31, 2024, prepared as of February 25, 2025, and other documents filed by Capital Power with Canadian securities regulators.

The forward-looking information in this news release reflects Capital Power's current expectations, assumptions and/or beliefs based on information currently available to Capital Power. Any forward-looking information speaks only as of the date hereof and, except as may be required by applicable securities laws, Capital Power disclaims any intent or obligation to publicly update or revise any forward-looking information, whether as a result of new information, future events or results or otherwise. Readers are cautioned that the foregoing lists are not exhaustive and are made as at the date hereof. Events or circumstances could cause actual results to differ materially from those estimated or projected and expressed in, or implied by, the forward-looking information. For additional information regarding Capital Power's material risk factors, the assumptions made and the risks and uncertainties which could cause actual results to differ from the anticipated results, refer to "Risks and Risk Management" in Capital Power's Integrated Annual Report for the year ended December 31, 2024, prepared as of February 25, 2025 and to the risk factors, assumptions and uncertainties described in other documents Capital Power files with Canadian securities regulators which are available on SEDAR + at sedarplus.ca.

Non-GAAP Financial Measures and Ratios
Capital Power uses earnings before income tax expense, depreciation and amortization, net finance expense, foreign exchange gains or losses, gains or losses on disposals and other transactions, unrealized changes in fair value of commodity derivatives and emission credits, other expenses from our joint venture interests, acquisition and integration costs, and other items that are not reflective of the Company's facility operating performance (adjusted EBITDA) as a non-GAAP financial measure.

This term is not a defined financial measure according to GAAP and does not have a standardized meaning prescribed by GAAP and, therefore, it is unlikely to be comparable to similar measures used by other enterprises. This measure should not be considered an alternative to net income, net income attributable to shareholders of Capital Power, or other measures of financial performance calculated in accordance with GAAP.

Capital Power uses adjusted EBITDA to measure the operating performance of facilities and categories of facilities from period to period. Management believes that a measure of facility operating performance is more meaningful if results not related to facility operations are excluded from the adjusted EBITDA measure such as impairments, foreign exchange gains or losses, gains or losses on disposals and other transactions, unrealized changes in fair value of commodity derivatives and emission credits, acquisition and integration costs, and other items that are not reflective of the long-term performance of the company's underlying operations.

For more information regarding the non-GAAP financial measure used by Capital Power, including the composition of the measure and, where applicable, a reconciliation of the Capital Power's historical non-GAAP financial measure to the most directly comparable measure calculated in accordance with GAAP for the applicable period then ended, please see "NON-GAAP FINANCIAL MEASURES AND RATIOS" in Capital Power's management's discussion and analysis for the year ended December 31, 2024 prepared as of February 25, 2025, which is available under Capital Power's profile on SEDAR+ at www.sedarplus.ca and incorporated by reference herein.

Territorial Acknowledgement
In the spirit of reconciliation, Capital Power respectfully acknowledges that we operate within the ancestral homelands, traditional and treaty territories of the Indigenous Peoples of Turtle Island, or North America. Capital Power's head office is located within the traditional and contemporary home of many Indigenous Peoples of the Treaty 6 Territory and Métis Nation of Alberta Region 4. We acknowledge the diverse Indigenous communities located in these areas and whose presence continues to enrich the community.

About Capital Power
Capital Power (TSX: CPX,OTC:CPXWF) is a growth-oriented power producer with approximately 12 GW of power generation at 32 facilities across North America. We prioritize safely delivering reliable and affordable power communities can depend on, building lower-carbon power systems, and creating balanced solutions for our energy future. We are Powering Change by Changing Power™.

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