FINANCIAL  STRENGTH AND  DISCIPLINE • Commitment to  maintaining investment  grade credit rating • Well spread out debt  maturities • Current debt to  capitalization lower than  our target of 40%-50% OPERATIONS AND GROWTH FOCUSED ON:  NATURAL GAS, COAL, WIND AND SOLAR • Increased operating effi ciencies, including  refined operating and maintenance practices • Greater economies of scale s Gas s Coal and solid fuels s Wind 50% 41% 9% 2012  1 16 facilities (3,628 MW) 54% 37% 9% Year-end 2015E  2 18 facilities (4,073 MW) } 0% 10% 20% 30% 40% 50% 2010 2012 2011 DEBT TO TOTAL CAPITALIZATION  3 Long-term target 40% - 50% 36% 36% 38% CAPITAL POWER  2012 ANNUAL REPORT 7 1  Based on megawatts (MW) owned capacity; excludes the acquired Sundance PPA (371 MW). 2  Based on existing plants plus committed development projects. 3  Debt to total capitalization as of December 31 for each respective year. Capital Power Income L.P.  accounted for on an equity basis in 2010. 30% 28% 25% 13 % 4% 2012  1 42% capacity contracted Year-end 2015E  2 47% capacity contracted 27% 26% 28% 16 % 3% } • AB commercial  • US Northeast commercial • AB contracted ON/BC contracted  Mid-Atlantic contracted BALANCED PORTFOLIO OF MERCHANT  AND CONTRACTED GENERATION • Long-term contracts help stabilize cash fl ows,  support dividend and improve access to capital • Cash flow from merchant assets help fi nance  growth and provide upside