March 28, 2017

Capital Power enters into a cost savings agreement related to the Genesee Mine

New casino games– Capital Power Corporation (Capital Power or the Company) (TSX: CPX) announced today that it has entered into an agreement (the Amending Agreement) to amend its Genesee Mine Joint Venture Agreement with Prairie Mines & Royalty ULC (PMRU), a subsidiary of Westmoreland Coal Company (Westmoreland), to accelerate the repayment of amounts it would otherwise have owed to PMRU during the term of the agreement and eliminate all future payments to PMRU relating to existing capital assets at the Genesee Mine. Capital Power will continue to pay PMRU contracted mining fees for PMRU’s ongoing operation of the mine.

By accelerating the $70 million repayment of capital expenditures to PMRU, the transaction will reduce Capital Power’s cost of coal for the Genesee Generating Station, and enhance the Company’s net income, adjusted EBITDA, net cash flows from operating activities and adjusted funds from operations (AFFO). These cost reductions were anticipated to take place and have been included in the AFFO guidance that was provided as part of the Company’s year-end disclosure on February 17, 2017. As a result of the transaction, net cash flows from operating activities are expected to increase by $14 million for 2017. The operations of the Mine and the Management Committee of the Mine are unchanged as a result new online casino no deposit bonusof the Amending Agreement and the Company will continue to control the Mine and treat it as a subsidiary.

Coal for the Genesee Generating Station is supplied by the adjacent Genesee Mine under a long-term, cost of service supply agreement. Prior to the Amending Agreement, Capital Power paid PMRU a fee to cover PMRU’s depreciation expense and certain other costs, as well as provide a variable rate of return to PMRU. These fees paid to PMRU were included as part of Capital Power’s cost of coal for operating the Genesee Generating Station, and will be eliminated with the Amending Agreement.

The cost savings for Capital Power will be magnified through 2030 with the phase-out of coal units under the Alberta Climate Leadership Plan, which would accelerate the amounts in respect of depreciation that would have been paid to PMRU due to the shortened asset lives.

Non-GAAP Financial Measures

The Company uses (i) adjusted EBITDA and (ii) adjusted funds from operations (AFFO) commencing in 2017 as financial performance measures. These terms are not defined financial measures according to GAAP and do not have standardized meaning prescribed by GAAP, and therefore, are New casino sitesunlikely to be comparable to similar measures used by other enterprises. These measures should not be considered alternatives to net income, net income attributable to shareholders of the Company, net cash flows from operating activities or other measures of financial performance calculated in accordance with GAAP. Rather, these measures are provided to complement the nearest GAAP measures in the analysis of the Company’s results of operations from management’s perspective. Through 2016, the Company used funds from operations (FFO) as a financial performance measure. Reconciliations of adjusted EBITDA to net income and FFO to net cash flows from operating activities are contained in the Company’s Management’s Discussion and Analysis, prepared as of February 17, 2017 for the year ended December 31, 2016 which is available under the Company’s profile on SEDAR at The AFFO performance measure is FFO reduced by sustaining capital expenditures and preferred share dividends and adjusted to include cash from coal compensation that will be received annually.

Forward-looking Information

Certain information in this news release is forward-looking within the meaning of New casino gamesCanadian 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 reductions in coal costs and the associated enhancements to various financial measures. These statements are based on contractual savings to be realized and are not developed using material assumptions. The realization of these contractual savings is not subject to material risks and uncertainties.

About Capital Power

Capital Power (TSX: CPX) is a growth-oriented North American power producer headquartered in Edmonton, Alberta. The company develops, acquires, operates and optimizes power generation New online casinosfrom a variety of energy sources. Capital Power owns more than 3,200 megawatts of power generation capacity at 18 facilities across North America. More than 700 megawatts of owned generation capacity are in advanced development in Alberta and under construction in Kansas.