Annual Information Form Capital Power Corporation For the year ended December 31, 2019 24 February 2020 TABLE OF CONTENTS PRESENTATION OF INFORMATION .......................................................................................................... 4 FORWARD-LOOKING INFORMATION ........................................................................................................ 4 DEFINITIONS OF CERTAIN TERMS ........................................................................................................... 6 CORPORATE STRUCTURE ...................................................................................................................... 13 Capital Power Corporation ...................................................................................................................... 13 Capital Power L.P. ................................................................................................................................... 13 Inter-Corporate Relationships ................................................................................................................. 13 GENERAL DEVELOPMENT OF THE BUSINESS ..................................................................................... 14 Overview .................................................................................................................................................. 14 Company History ..................................................................................................................................... 14 BUSINESS OF CAPITAL POWER ............................................................................................................. 21 Overview .................................................................................................................................................. 21 Generation Facility Summary .................................................................................................................. 22 Revenue and Volume .............................................................................................................................. 24 Alberta Commercial Facilities .................................................................................................................. 25 Alberta Contracted Facilities ................................................................................................................... 27 Ontario and BC Contracted Facilities ...................................................................................................... 28 US Contracted Facilities .......................................................................................................................... 30 Projects Under Construction or in Advanced Stages of Development .................................................... 33 Portfolio Optimization .............................................................................................................................. 34 Competitive Environment ........................................................................................................................ 35 Environmental Regulation ....................................................................................................................... 35 Health, Safety and Environment .............................................................................................................. 41 Personnel ................................................................................................................................................ 44 REGULATORY OVERVIEW ....................................................................................................................... 44 Alberta ..................................................................................................................................................... 44 BC ............................................................................................................................................................ 46 Ontario ..................................................................................................................................................... 47 United States ........................................................................................................................................... 48 North Carolina ......................................................................................................................................... 48 New Mexico ............................................................................................................................................. 49 RISK FACTORS .......................................................................................................................................... 50 COMMON AND PREFERRED DIVIDENDS ............................................................................................... 50 Common Dividends ................................................................................................................................. 50 Preferred Dividends ................................................................................................................................. 51 Dividend Reinvestment Plan ................................................................................................................... 56 CAPITAL STRUCTURE .............................................................................................................................. 56 Common Shares ...................................................................................................................................... 56 Preference Shares ................................................................................................................................... 57 Special Limited Voting Share .................................................................................................................. 59 Debt Issuance .......................................................................................................................................... 60 Ratings .................................................................................................................................................... 63 MARKET FOR SECURITIES ...................................................................................................................... 65 Trading Price and Volume ....................................................................................................................... 65 DIRECTORS AND OFFICERS ................................................................................................................... 72 Board of Directors .................................................................................................................................... 72 Executive Officers .................................................................................................................................... 74 Corporate Cease Trade Orders, Bankruptcies, Penalties or Sanctions .................................................. 76 Conflicts of Interest .................................................................................................................................. 76 LEGAL PROCEEDINGS AND REGULATORY ACTIONS ......................................................................... 77 Milner Power Inc. (Milner) Loss Factor Complaint .................................................................................. 77 TRANSFER AGENT AND REGISTRAR ..................................................................................................... 78 INTERESTS OF MANAGEMENT AND OTHERS IN MATERIAL TRANSACTIONS ................................. 78 MATERIAL CONTRACTS ........................................................................................................................... 78 INTERESTS OF EXPERTS ........................................................................................................................ 81 AUDIT COMMITTEE ................................................................................................................................... 81 Audit Committee Mandate ....................................................................................................................... 81 Composition of the Audit Committee ....................................................................................................... 81 Policies and Procedures for the Engagement of Audit and Non-audit Services ..................................... 83 Auditor's Fees .......................................................................................................................................... 84 Other Committees ................................................................................................................................... 85 ADDITIONAL INFORMATION .................................................................................................................... 86 APPENDIX A – AUDIT COMMITTEE – TERMS OF REFEFENCE ..........................................................A-1 Remainder of page intentionally left blank PRESENTATION OF INFORMATION Unless otherwise noted, the information contained in this Annual Information Form (AIF) is given at or for the period ended December 31, 2019. Amounts are expressed in Canadian dollars unless otherwise indicated. All financial information presented