Capital Power (CPX) Barclays 38th Annual CEO Energy-Power Conference summary

Market outlook and industry trends

• North American power demand is shifting from flat/declining to secular growth, driven by data centers, industrial reshoring, electrification, and GDP growth.

• U.S. power generation demand is expected to double by 2050, with firm power supply now lagging behind demand.

• Data centers' share of U.S. electricity consumption projected to rise from 2.5% to up to 7.5% by 2030, accelerating firm power demand.

• Data center expansion, especially for GenAI, is a major driver, with Alberta emerging as a prime location due to favorable market and regulatory conditions.

• Renewable energy's share in the supply mix is forecasted to increase significantly through 2050, but reliable gas-fired generation remains essential for grid stability.

Strategic positioning and business strategy

• Aims to be the leading power producer in North America, focusing on reliable, affordable, and clean energy.

• Holds a top-five position among gas independent power producers, with a 40% reduction in emission intensity over the past decade.

• Operates 9,300 MW of capacity, with 80% gas-fired and a significant presence in both Canada and the U.S.

• Operates a balanced portfolio across Canada and the U.S., with equal capacity in both regions and a mix of wind, solar, gas, and storage assets.

• Three core businesses: flexible generation (mainly gas), renewables (1.5 GW operating, 2 GW pipeline), and trading/origination, enabling value creation and risk management.

Operations and growth strategy

• Focus on balanced energy solutions for large commercial customers, integrating flexible generation, renewables, and trading.

• Strategy centers on optimizing the current fleet, expanding firm and renewable capacity, and delivering commercial solutions to wholesale customers.

• Focuses on markets with strong fundamentals, targeting growth in Alberta, Ontario, MISO, PJM, and ERCOT.

• Maintains high operational standards, with 93% average availability and a history of successful asset repowering and efficiency improvements.

• In-house engineering and maintenance capabilities provide operational advantages.