Enhancing shareholders’ value Performance measure 2012 target Status at December 31, 2012 Halkirk wind project Continue on budget of $357 million and on time with commercial operation date in the fourth quarter of 2012 Achieved commercial operation date on December 1, 2012 with actual capital costs forecast to be from $325 to $335 million Quality Wind project Continue on budget of $455 million and on time with commercial operation date in the fourth quarter of 2012 Achieved commercial operation date on November 6, 2012 with actual capital costs forecast to be from $405 to $415 million Port Dover & Nanticoke and K2 wind projects Full notice to proceed in 2012 Limited notice to proceed received for Port Dover & Nanticoke Full notice to proceed for K2 revised to late 2013 or early 2014 The growth projects of Halkirk and Quality Wind were completed on time and under budget in the fourth quarter of 2012. During the year, the Company revised its expectation for the timing of full notice to proceed on the K2 wind project from 2012 to late 2013 or early 2014. Total project costs for Quality Wind were approximately 10% lower than budget. This decrease was attributed primarily to strong project management including the impact of up-front planning and project execution steps such as value engineering, constructability improvements and supply chain optimization. Total final forecast project costs for Halkirk are approximately 8% lower than budget due to similar reasons as for the Quality Wind project. The previously expected commissioning timing for K2 in 2014 was revised to early 2015 as a result of delays in the anticipated timing of delivery of the turbines. Its total project costs remain unchanged. Environmental approvals for K2 are expected to be received in 2013 but full notice to proceed may be delayed until 2014. The Port Dover & Nanticoke wind project received its Renewable Energy Approval (REA) from the Government of Ontario on July 17, 2012 and construction has commenced. In January 2013, the Environmental Review Tribunal (ERT) dismissed appeals to the REA which had been filed by two groups. In its decision, the ERT made a number of non-binding recommendations that Capital Power will consider implementing. The impact of implementing any or all of the recommendations is not considered significant. The following table provides the Company’s performance measure targets for 2013: (1) Normalized earnings per share, funds from operations, and cash flow per share are non-GAAP measures. See Non-GAAP Financial Measures. Performance measure 2013 target Operational Plant availability average 93% or greater Capital expenditures for plant maintenance, Genesee mine extension, and other $105 million or lower Maintenance and operating expenses $225 million to $245 million Financial Normalized earnings per share (1) $1.20 to $1.40 Funds from operations (1) $385 million to $415 million Cash flow per share (1) $3.80 to $4.20 Construction / Development Port Dover & Nanticoke wind project Continue on budget of $340 million and on time with commercial operation date in the fourth quarter of 2013 K2 wind project Environmental approvals received in 2013 Shepard Energy Centre Continue on budget of $860 million Targets for 2013 Capital Power Corporation Management’s Discussion and Analysis 2012 16