Capital Power

What Capital Power does

Capital Power Corporation (TSX: CPX) is a North American independent power producer headquartered in Edmonton, Alberta, operating approximately 12 GW of generation capacity across 35 facilities in Canada and the United States. Its fleet spans natural gas combined cycle, simple cycle gas turbines, cogeneration, wind, solar, and battery energy storage assets, with strategic positions in the PJM Interconnection (entered in June 2025 via the US$2.2 billion Hummel Station and Rolling Hills acquisition), WECC, Alberta, and Ontario markets. As of mid-2025, U.S. capacity represents roughly 60% of the portfolio. The company traces its origins to the 1891 Edmonton Electric Lighting and Power Company and has been publicly traded since its 2009 spin-off from EPCOR Utilities.

Capital Power generates revenue through three primary streams: long-term contracted power under PPAs and tolling agreements with utilities, industrial customers, and government entities (e.g., 15- to 23-year agreements with Public Services and Procurement Canada, Labatt, Saputo, Dow Chemical, and Consumers Energy); merchant power sales into deregulated wholesale markets including PJM, WECC, Alberta, and Ontario; and energy marketing and origination services. The customer base spans large industrial (chemicals, food and beverage, telecommunications), government and institutional, utilities, and an emerging data center / hyperscale segment formalized through a 250 MW supply agreement with an Alberta data center developer starting in 2028.

Capital Power's strategy centers on three pillars: geographic and market diversification (with the 2025 PJM entry and US$3B Apollo Global Management partnership for further U.S. natural gas acquisitions), a balanced generation portfolio providing dispatchable reliability as renewable penetration increases, and participation in the data center / AI power demand wave. The Genesee Generating Station (1,857+ MW across 26,000+ acres in Alberta) is the flagship facility, recently repowered from coal to natural gas as Canada's most efficient combined cycle plant. The company is also exploring small modular reactors with Ontario Power Generation and carbon capture with California Resources Corporation. FY2025 adjusted EBITDA was CAD $1.58 billion (+18% YoY) on the back of major U.S. acquisitions, with 2026 EBITDA guided at CAD $1.565-1.765 billion.

Name

Capital Power

Legal name

Capital Power Corporation

Website

https://capitalpower.com

Company type

Public

Founded year

2009

Operating status

Operating

Headcount range

501–1,000 employees

Short description

Capital Power (TSX: CPX) is a North American independent power producer with approximately 12 GW of generation capacity across 35 facilities, supplying natural gas, renewable, and battery storage power to utilities, large industrial customers, government entities, and data center operators in Canada and the United States.

Ownership category

akta.pro rank

Headquarters

HQ city

Edmonton

HQ country

Canada

HQ region

North America

Offices2 records

Markets served

GTM type

B2B

Offering type

Services

Cost components

Operations, Supply Chain, Infrastructure, Personnel, Technology or R&D, Marketing or Sales, Others

Revenue model

1. Power Generation and Sale: Capital Power generates electricity through its fleet of natural gas, wind, solar, and battery storage facilities and sells power under long-term contracts, tolling agreements, and into merchant markets. Revenue is derived from capacity payments, energy sales, and ancillary services across regulated and deregulated power markets.
2. Contracted Capacity: Long-term power purchase agreements (PPAs) and tolling agreements with utilities, industrial customers, and data center operators provide contracted revenue streams. The company has extended contracts at Arlington Valley through 2038 and MCV through 2040.
3. Merchant Power Sales: Uncontracted generation capacity sold into wholesale power markets, particularly in PJM, WECC, and Alberta, capturing spot market prices for electricity and capacity.

Go-to-market motion1 record

Distribution channels4 records

Marketing channels6 records

Core offering

Capital Power is a North American independent power producer that operates a diversified fleet of approximately 12 GW across 35 facilities, generating electricity from natural gas combined cycle, cogeneration, wind, solar, and battery energy storage systems. The company sells power under long-term power purchase agreements, tolling agreements, and merchant market sales to utilities, large industrial customers, data center operators, and government institutions in Canada and the United States.

Product overview

Capital Power operates as a North American independent power producer offering an integrated portfolio of power generation solutions. The company's product architecture comprises five core offerings: Natural Gas Power Generation (flexible, dispatchable capacity across combined cycle, cogeneration, and simple cycle facilities), Renewable Energy (wind and solar projects with long-term power purchase agreements), Battery Energy Storage Solutions (grid-stabilizing BESS projects), Data Centre Power Solutions (dedicated electricity supply for AI and digital infrastructure), and Energy Marketing and Origination (customized electricity procurement and risk management for commercial customers). Key facilities include the Genesee Generating Station (Canada's most efficient natural gas combined cycle facility), the Midland Cogeneration Venture (largest gas-fired cogeneration plant in the U.S.), PJM market assets (Hummel Station and Rolling Hills), and WECC region assets (La Paloma, Harquahala, Frederickson 1). The portfolio spans approximately 12 GW of capacity across 35 facilities in Canada and the United States.

Differentiator

Problem solved

Functional benefit

Products and services

• Natural Gas Combined Cycle Generation Power generated from natural gas combined cycle (NGCC) and cogeneration facilities, supplied to utilities, large industrials, data centers and government institutions across Canada and the U.S.
• Wind Power Generation Electricity produced from utility-scale wind generation facilities across North America, sold under long-term offtake arrangements.
• Solar Power Generation Electricity produced from utility-scale solar generation facilities, integrated into the company's renewable energy portfolio.
• Battery Energy Storage Solutions Grid-scale battery energy storage systems (BESS) co-located with generation assets to provide capacity, ancillary services and grid reliability products.
• Data Centre Power Solutions Tailored behind-the-meter and grid-connected power supply arrangements designed to serve large data centre operators with reliable, around-the-clock electricity.
• Energy Marketing and Origination Wholesale energy marketing, origination and trading activities across North American ISO/RTO markets including PJM, ERCOT and Alberta.
• Genesee Repowering Project Repowering of the Genesee generating facility in Alberta to add ~1.6 GW of combined-cycle natural gas generation and associated battery storage to support long-term contracts.

Quantifiable outcome

• Reduced annual emissions by 3.4 million tonnes through Genesee Repowering
• +4 more outcomes

Named customers8 records

Segments4 records

Ideal customer profiles4 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature3 records

Partnerships

Four partnerships are on record, tiered core and minor.

• Ontario Power GenerationcoreStrategic or Co-development Partner · 11 December 2025Capital Power and Ontario Power Generation partnered to assess feasibility of small modular reactors (SMRs) for grid-scale deployment in Alberta. The collaboration involves working with X-energy on Xe-100 SMR technology for industrial applications. This positions Capital Power to participate in Canada's emerging nuclear power sector.
• California Resources CorporationminorStrategic or Co-development Partner · 4 November 2025Capital Power and California Resources Corporation signed an MOU to explore carbon capture and sequestration solutions at Capital Power's La Paloma facility in California. The collaboration aims to evaluate transporting and storing up to 3 million metric tons of CO2 annually, supporting California's decarbonization goals.
• Canadian Football League (CFL)minorGTM or Marketing Partner · 18 September 2025Capital Power partnered with the CFL to honour the National Day for Truth and Reconciliation and support Indigenous youth through sport. The partnership includes fan engagement, merchandise sales with proceeds supporting Indigenous Youth Roots, and brand visibility through sports marketing.
• LS Power Equity Advisers LLCcoreOthers · 14 April 2025Capital Power acquired two natural gas power plants - Hummel Station in Pennsylvania and Rolling Hills in Ohio - from subsidiaries of LS Power Equity Advisers LLC for approximately US$2.2 billion. This acquisition established Capital Power's entry into the PJM Interconnection market.

Scale indicators11 records

Recent moves6 records

Expansion highlights7 records

Direct peers

• Constellation Energy: Largest U.S. operator of nuclear and natural gas generation serving PJM and other competitive markets. Highly comparable as a publicly traded IPP focused on dispatchable clean power, with significant data center customer agreements.
• NRG Energy: U.S. competitive power generator and retail electricity provider with significant Texas (ERCOT) and Northeast exposure. Closely comparable as a publicly traded IPP selling into deregulated wholesale markets and pursuing data center load growth.
• Talen Energy Corporation: Independent power producer with a sizeable nuclear and gas fleet concentrated in PJM. Directly comparable on geographic overlap (PJM), merchant exposure, and active pursuit of data center co-location deals.
• TransAlta Corporation: Canadian-headquartered IPP with a wind, hydro, gas, and battery storage portfolio across Canada, the U.S., and Australia. Closely comparable to Capital Power given shared Alberta heritage, similar generation mix, and shared focus on the energy transition.
• Vistra Corp: One of the largest U.S. independent power producers with a gas, nuclear, and renewable portfolio spanning PJM, ERCOT, and other competitive markets. Directly comparable to Capital Power's IPP model, focus on merchant and contracted gas generation, and similar data center growth strategy.

Regional players

• Algonquin Power & Utilities: North American renewable and regulated utility operator with wind, solar, and hydro assets across the U.S. and Canada. Comparable in renewable IPP focus and North American footprint, though more weighted to regulated utility assets.

Broad incumbents

• NextEra Energy: Largest renewable energy generator in North America and owner of Florida Power & Light. Comparable as a large-scale North American power producer with a strong renewables growth pipeline, though significantly larger and more diversified than Capital Power.
• AES Corporation: Global IPP with significant renewable and gas generation across the U.S., Latin America, and Asia. Comparable on business model (utility-scale IPP with renewables pivot) and data center growth focus, though with broader geographic and technology mix.

Market position

Strengths4 records

Weaknesses4 records

Competitive moat6 records

Key risks6 records

Customer concentration

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Revenue estimate

Valuation estimate

Number of profiles

Profiles23 records

Subsidiaries8 records

Funding overview

Funding rounds8 records

Investors1 record

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A1 record

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Capital Power