Message from the President and CEO, Brian Vaasjo

A team committed to responsible citizenship and sustainability

In July, we celebrated our fifth-year anniversary as Capital Power. Achieving this milestone takes sustained commitment, deliberate action, and teamwork across the entire corporation. Over the years, we have stayed true to our values and vision of being one North America’s most respected, reliable, and competitive power producers through our passion for our business, by working as a team with integrity, by putting safety first, and by enhancing shareholder value.

On behalf of all of us at Capital Power, thank you for taking the time to view our 2013 corporate responsibility report.

This report reflects the actions we take and the way we behave, every day - in our community, in our facilities, in our offices, and on our construction sites.

Our 2013 corporate responsibility report shares stories and information on how we:

• Work, grow, and develop as a team
• Keep safety top of mind - everywhere, every day
• Engage our stakeholders and partners
• Manage our environment and emissions, and
• Execute on plans that are driven by shared values and ethical standards.

We aim to report our results in a balanced way that presents a holistic view of our business and shows the linkages between our business strategy and our corporate responsibility program.

Sustained commitment

We are always conscious of our promise to be transparent and accountable.

Safety is everything

We launched our “Zero means everything” internal safety campaign, stressing the importance of life-long safety and accountability at work and at home. Zero lost-time injuries is our goal by 2015. We surpassed our company-wide safety target in 2013 and almost met our stretch target. This report provides details of our health and safety commitment and record.

Renewable energy and state-of-the-art power generation

We manage our environmental footprint and invest in state-of-the-art technology and renewable sources of energy. Since November 2012, Capital Power has invested over $1 billion in three wind projects, which has substantially increased our renewable wind energy capacity. Another 90 megawatts of owned wind generation is under construction in Ontario.

We plan to build and operate Genesee 4 & 5 in a joint venture with ENMAX. This proposed facility will use the latest state-of-the-art high-efficiency gas turbine technology and will have a generation capacity of up to 1,050 megawatts. Capital Power will lead the construction of the project and will be the operator of the facility, which is expected to be completed between 2018 and 2020.

Working effectively and efficiently

Responsibility includes leading with accountability and spending conscientiously. Our employee learning and career development activities for 2013 are detailed in this report, with a focus on leadership, ethics, and accountability at all levels of the organization. Capital Power was named as Alberta’s Best Workplace for Training and Development by Alberta Venture in 2014.

We share the story of how we implemented our Oracle Enterprise Resource Planning (ERP) system to streamline and integrate the company’s core business processes. The ERP project, along with other cost savings initiatives, resulted in an annual reduction in general and administrative expenses of approximately $22 million.

Being a responsible, sustainable, and ethical neighbour

At each of our operations, we focus on being a good neighbour and employer by protecting the places where we live and work. The numbers and narratives that explain our ongoing involvement in the communities where our people live and work show the many different ways in which Capital Power is contributing to the quality of life in cities and towns across North America.

Thanks to the dedication of our employees and their strong performance, Capital Power was named one of the “Best 50 Corporate Citizens in Canada” by Corporate Knights magazine for a fourth straight year.

How are we doing?

Our business touches many different stakeholders, and we are open to feedback from all. We encourage you to let us know how you think we’re doing and to provide your thoughts on how we can improve not just this report, but our business operations overall.

Thank you for your interest in Capital Power. We look forward to hearing from you.

Brian Vaasjo
President and CEO