Capstone Infrastructure Corporation

MANAGEMENT’S 
DISCUSSION AND ANALYSIS 
FINANCIAL HIGHLIGHTS
As at and for the year ended December 31,
2024
2023
2022
Revenue
 
219,275  
239,015  
255,022 
EBITDA
 
133,033  
110,066  
186,125 
Net income (loss) (1)
 
(4,896)  
(29,744)  
25,108 
Preferred dividends
 
2,776  
2,776  
2,776 
Total assets
 
1,656,274  
1,648,829  
1,550,435 
Total long-term liabilities
 
1,150,096  
1,062,172  
977,502 
(1)
Net income (loss) attributable to the common shareholders of Capstone, which excludes non-controlling interests.
INSIDE THIS SECTION
Financial highlights
1
Financial position review
7
Legal notice
2
Derivative financial instruments
11
Introduction
3
Risks and uncertainties
11
Basis of presentation
3
Environmental, health and safety regulation
14
Supplemental GAAP performance measures
3
Related party transactions
15
Changes in the business
3
Summary of quarterly results
16
Results of operations
5
Fourth quarter highlights
17
Accounting policies and internal controls
17
CAPSTONE INFRASTRUCTURE CORPORATION 
Page 1

LEGAL NOTICE
This document is not an offer or invitation for the subscription or purchase of or a recommendation of securities. It does not take into account the 
investment objectives, financial situation and particular needs of any investors. Before making an investment in Capstone Infrastructure 
Corporation (the "Corporation"), an investor or prospective investor should consider whether such an investment is appropriate to their particular 
investment needs, objectives and financial circumstances and consult an investment adviser if necessary.
CAUTION REGARDING FORWARD-LOOKING STATEMENTS
Certain of the statements contained within this document are forward-looking and reflect management’s expectations regarding the future growth, 
results of operations, performance and business of the Corporation based on information currently available to the Corporation. Forward-looking 
statements are provided for the purpose of presenting information about management’s current expectations and plans relating to the future and 
readers are cautioned that such statements may not be appropriate for other purposes. These statements use forward-looking words, such as 
“anticipate”, “continue”, “could”, “expect”, “may”, “will”, “intend”, “estimate”, “plan”, “believe”, or other similar words, and include, among other 
things, statements found in “Results of Operations” and "Financial Position Review". These statements are subject to known and unknown risks 
and uncertainties that may cause actual results or events to differ materially from those expressed or implied by such statements and, 
accordingly, should not be read as guarantees of future performance or results. The forward-looking statements within this document are based 
on information currently available and what the Corporation currently believes are reasonable assumptions, including the material assumptions 
set out in the management’s discussion and analysis of the results of operations and the financial condition of the Corporation (“MD&A”) for the 
year ended December 31, 2024 under the headings "Changes in the Business", “Results of Operations” and "Financial Position Review", as 
updated in subsequently filed MD&A of the Corporation (such documents are available under the Corporation’s SEDAR+ profile at 
www.sedarplus.ca).
Other potential material factors or assumptions that were applied in formulating the forward-looking statements contained herein include or relate 
to the following: that the business and economic conditions affecting the Corporation’s operations will continue substantially in their current state, 
including, with respect to industry conditions, general levels of economic activity, regulations, weather, taxes, inflation, and interest rates; that the 
preferred shares will remain outstanding and that dividends will continue to be paid on the preferred shares; that there will be no material delays 
in the Corporation’s development projects achieving commercial operation; that the Corporation’s power facilities will experience normal wind, 
hydrological and solar irradiation conditions, and ambient temperature and humidity levels; that there will be no further material changes to the 
Corporation’s facilities, equipment or contractual arrangements; that there will be no material changes in the legislative, regulatory, and operating 
framework for the Corporation’s businesses; that there will be no material delays in obtaining required approvals for the Corporation’s power 
facilities; that there will be no material changes in environmental regulations for the power facilities; that there will be no significant event 
occurring outside the ordinary course of the Corporation’s businesses; the refinancing on similar terms of the Corporation’s and its subsidiaries’ 
various outstanding credit facilities and debt instruments which mature during the period in which the forward-looking statements relate; market 
prices for electricity in Ontario and the amount of hours that the Cardinal Facility is dispatched; the price that the Buffalo Atlee 1 Wind Facility, the 
Buffalo Atlee 3 Wind Facility, the Claresholm Solar Facility, the Kneehill Solar Facility, or the Whitecourt Biomass Facility will receive for its 
electricity production considering the market price for electricity in Alberta; and the price that the Whitecourt Biomass Facility will receive for its 
electricity production considering the Whitecourt Biomass Facility’s agreement with Millar Western, which includes sharing mechanisms regarding 
the price received for electricity sold by the facility.
Although the Corporation believes that it has a reasonable basis for the expectations reflected in these forward-looking statements, actual results 
may differ from those suggested by the forward-looking statements for various reasons, including: risks related to the Corporation’s securities 
(controlling shareholder; dividends on common shares and preferred shares are not guaranteed; volatile market price for the Corporation's 
securities); risks related to the Corporation and its businesses (availability of debt and equity financing; default under credit agreements and debt 
instruments; geographic concentration; acquisitions, development and integration; environmental, health and safety; changes in legislation and 
administrative policy; changes to tax laws or challenges to tax positions; foreign exchange fluctuations; reliance on key personnel); and risks 
related to the Corporation’s power facilities (completion of the Corporation’s development projects; power purchase agreements; operational 
performance; market price for electricity; contract performance and reliance on suppliers; land tenure and related rights; climate change; global 
conflicts; environmental; insurance coverage; cybersecurity and reliance on information technology; regulatory environment; environmental 
attributes; US jurisdiction).
For a comprehensive description of these risk factors, please refer to the "Risk Factors" section of the Corporation’s Annual Information Form 
dated March 21, 2024, as supplemented by disclosure of risk factors contained in any subsequent annual information form, material change 
reports (except confidential material change reports), business acquisition reports, interim financial statements, interim management's discussion 
and analysis and information circulars filed by the Corporation with the securities commissions or similar authorities in Canada (which are 
available under the Corporation's SEDAR+ profile at www.sedarplus.ca).
The assumptions, risks and uncertainties described above are not exhaustive and other events and risk factors could cause actual results to 
differ materially from the results and events discussed in the forward-looking statements. The forward-looking statements within this document 
reflect current expectations of the Corporation as at the date of this document and speak only as at the date of this document. Except as may be 
required by applicable law, the Corporation does not undertake any obligation to publicly update or revise any forward-looking statements.
CAPSTONE INFRASTRUCTURE CORPORATION 
Page 2

INTRODUCTION
Management’s discussion and analysis ("MD&A") summarizes Capstone Infrastructure Corporation's (the "Corporation" or 
"Capstone") consolidated financial position, operating results and cash flows as at and for the years ended December 31, 2024 
and 2023.
This MD&A should be read in conjunction with the accompanying audited consolidated financial statements of the Corporation 
and notes thereto as at and for the years ended December 31, 2024 and 2023. Additional information about the Corporation, 
including its Annual Information Form ("AIF") for the year ended December 31, 2023, quarterly financial reports and other public 
filings of the Corporation are available under the Corporation’s profile on the Canadian Securities Administrators' System for 
Electronic Document Analysis and Retrieval ("SEDAR+") website at www.sedarplus.ca.
This MD&A is dated March 5, 2025, the date on which this MD&A was approved by the Corporation's Board of Directors.
BASIS OF PRESENTATION
Financial information in this MD&A is prepared in accordance with International Financial Reporting Standards as issued by the 
International Accounting Standards Board (“IFRS Accounting Standards”) and amounts are in Canadian thousands of dollars or 
thousands of share amounts unless otherwise indicated.
Amounts included in the financial statements of each consolidated entity within the Corporation are measured using the currency 
of the primary economic environment in which the entity operates (the “functional currency”). The consolidated financial 
statements are presented in Canadian dollars (the “presentation currency”), which is Capstone's functional currency. The 
exchange rates used in the translation to the presentation currency are as follows: 
USD ($)
As at and for the year ended
Average
Spot
Dec 31, 2024
1.37
1.44
Dec 31, 2023
1.35
1.32
SUPPLEMENTAL GAAP PERFORMANCE MEASURES DEFINITIONS 
This MD&A also contains EBITDA, a performance measure not defined by IFRS Accounting Standards. EBITDA is a 
supplemental GAAP performance measure and does not have a standardized meaning prescribed by IFRS Accounting 
Standards and may not be comparable to similar measures presented by other issuers. The Corporation believes that this 
indicator is useful since it provides additional information about the Corporation's earnings performance and facilitates 
comparison of results over different periods. EBITDA is defined as earnings (loss) before financing costs, income tax expense, 
depreciation, and amortization. EBITDA includes earnings (loss) related to the non-controlling interest ("NCI"), impairment 
charges, equity accounted investments, interest income, other gains and losses (net), and foreign exchange gains and losses. 
EBITDA represents Capstone's capacity to generate income from operations before taking into account management's financing 
decisions and costs of consuming tangible capital assets and intangible assets, which vary according to their age, technology, 
and management's estimate of their useful life. EBITDA is presented on the consolidated statement of income.
CHANGES IN THE BUSINESS
In 2024, Capstone continued to execute on its strategic objectives by achieving commercial operation ("COD") at Buffalo Atlee 
on June 28, 2024, advancing its development projects, and successfully managing financing activities providing funding for 
continued growth.
Project Development Activities
Capstone continues to pursue projects at various stages of development, and to build a development pipeline across several 
jurisdictions. The following table lists the significant development projects:
Name of project
Status
Gross MW
Jurisdiction
Technology
Buffalo Atlee (1), (2)
COD
61
Alberta
Wind
MW added to operating portfolio
61
Wild Rose 2
In Construction
192
Alberta
Wind
Early and mid-stage development projects
Development
>2,750
Canada
Wind/Solar/Storage
MW capacity in Canada
>2,900
Early and mid-stage development projects
Development
>1,100
United States
Wind/Solar/Storage
MW capacity in the United States ("US")
>1,100
(1)
Electricity and associated emissions offset credits generated are sold under the terms of power purchase agreement ("PPA") expiring in 2039 for 26MW of the 
projects. The PPA includes an embedded derivative where the market price is swapped for a fixed price. Refer to "Accounting standards, estimates, and internal 
controls" in this MD&A.
(2)
Electricity is sold at market rates to the Alberta Power Pool and associated emissions offset credits generated are sold to third parties for 35MW of the projects.
CAPSTONE INFRASTRUCTURE CORPORATION 
Page 3

Capstone expects to fund these projects from a combination of sources including equity from existing corporate liquidity, 
government funding, and third party project financing.
Sechelt Creek Facility EPA
On October 30, 2022, Capstone entered into an extension to the Sechelt Creek hydro facility Electricity Purchase Agreement 
("EPA") with British Columbia Hydro and Power Authority ("BC Hydro") until January 31, 2023. Following this, on February 1, 
2023, Capstone entered into a new 20 year EPA for the Sechelt Creek facility with BC Hydro. British Columbia Utilities 
Commission ("BCUC") approval was obtained for the EPA on February 27, 2024.
Alberta Reviews Electricity Sector Regulations
In August 2023, the Government of Alberta directed the AUC to conduct a broad inquiry into the development of electricity 
generation in Alberta. On February 28, 2024, the Government of Alberta announced that it will be issuing new policy guidance 
and regulatory changes. As a result, Capstone recorded an asset impairment charge related to costs that had previously been 
capitalized for early stage development projects in Alberta, refer to note 11 Projects Under Development in the consolidated 
financial statements. Capstone continues to monitor any other potential impacts to our Alberta projects. 
Change to Board of Directors
On May 9, 2024, Julia Perrier was appointed to the board of Capstone.
BC Hydro Call for Power EPAs
On December 24, 2024, Capstone, alongside our Indigenous partners, entered into three 30-year EPA's with BC Hydro for the 
development of three wind facilities, after successfully being selected in the 2024 Call for Power. These projects will have an 
aggregate nameplate capacity of 537MW. The EPAs remain subject to BCUC approval.
Financing Activities
During the year, Capstone refinanced the corporate credit facility, executed financings for Wild Rose 2 and Buffalo Atlee, 
increased the US LC facility and extended its term to support ongoing growth through additional capacity and flexibility, and 
provided a return of capital to the Class A shareholder.
CPC Revolver refinancing 
On March 27, 2024, the CPC revolving credit facility was amended and restated, to increase its revolver capacity to $275,000 
and to extend its maturity date to March 27, 2027.
Class A shareholder return of capital
In the second quarter of 2024, Capstone paid a return of capital of $75,000 in cash to its Class A common shareholder.
US LC facility extension
On September 11, 2024, the US LC facility was increased to a capacity of $100,723 and now expires on December 23, 2025.
Wild Rose 2 financings
On May 30, 2024, Wild Rose 2 entered into a non-revolving loan which provided $70,707 of variable rate debt and which was 
repaid on November 8, 2024.
On November 8, 2024, Wild Rose 2 entered into a credit agreement which provided $270,498 of variable rate debt for the 
construction of the wind facility. The debt consists of a construction and term loan facility, letter of credit facility, an investment tax 
credit bridge loan facility, and limited capital contribution requirements for Capstone. To mitigate the interest rate risk, swap 
contracts were executed to convert the floating interest rate obligations to a fixed rate.
Buffalo Atlee project financing 
On November 14, 2024, the Buffalo Atlee construction credit facilities converted to term loans, which provides variable rate debt 
amortizing over 20 years and matures in January 2028. To mitigate the interest rate risk, swap contracts were executed to 
convert the floating interest rate obligations to a fixed rate.
CAPSTONE INFRASTRUCTURE CORPORATION 
Page 4

RESULTS OF OPERATIONS
Overview
In 2024, Capstone's EBITDA and net income were higher than in 2023. Higher EBITDA reflects:
•
Higher unrealized gains on fair value changes on derivative financial instruments; partially offset by
•
Lower revenue from lower Alberta Power Pool prices, lower emissions offset credits sales and lower production at 
Whitecourt, partially offset by higher resource at the wind, solar and hydro facilities, more runs at Cardinal, and revenue 
earned from the addition of Buffalo Atlee; and
•
Higher expenses due to adding operating expenses relating to the Buffalo Atlee projects, investment in project development 
costs, and more runs at Cardinal, partially offset by lower operating expense at Whitecourt.
For the year ended
Dec 31, 2024
Dec 31, 2023
Change
 Revenue
 
219,275  
239,015  
(19,740) 
 Expenses
 
(94,341)  
(91,455)  
(2,886) 
Other income (expenses)
 
8,099  
(37,494)  
45,593 
EBITDA
 
133,033  
110,066  
22,967 
Interest expense
 
(49,062)  
(48,752)  
(310) 
Depreciation and amortization
 
(97,529)  
(97,672)  
143 
Income tax recovery (expense)
 
7,522  
7,166  
356 
Net income (loss)
 
(6,036)  
(29,192)  
23,156 
The remaining significant changes in net income (loss) were:
•
Higher income tax recovery in 2024 is primarily attributable to the difference in accounting and tax amortization claimed 
during the year and an increase in the tax losses carried forward, partially offset by the non-deductible fair value adjustments 
on financial instruments for the year.
Results by Segment
Capstone's MD&A discusses the results of the power segment, as well as corporate activities. The power segment consists of 
operating and development activities. The operating facilities produce electricity from wind, solar, biomass, natural gas, and 
hydrological resources, and are located in Ontario, Alberta, Nova Scotia, Québec, British Columbia, and Saskatchewan. 
Corporate activities are primarily comprised of growth initiatives, capital structure expenses not specifically attributed to the 
facilities, and costs to manage, oversee, and report on the facilities.
Revenue
Capstone's revenue is generated through long-term power contracts, sales directly into the Alberta Power Pool, and under 
various contracts for electricity and the associated emissions offset credits, which vary in nature as disaggregated below.
Revenue
For the year ended
Dec 31, 2024
Dec 31, 2023
Change
Wind (1), (2)
 
129,605  
117,129  
12,476 
Solar (2)
 
37,858  
51,970  
(14,112) 
Gas (3)
 
28,666  
25,881  
2,785 
Hydro
 
12,481  
11,156  
1,325 
Biomass (2)
 
10,665  
32,879  
(22,214) 
Total Revenue 
 
219,275  
239,015  
(19,740) 
(1)
Wind includes revenue earned during project commissioning at Buffalo Atlee.
(2)
Wind, solar, and biomass facilities include revenue from the generation and sale of electricity at market rates and the sale of emissions offset credits.
(3)
Gas revenue at Cardinal consists of fixed payments for providing capacity and availability based on its PPA and other contracts; the remaining revenue is 
variable based on production.
CAPSTONE INFRASTRUCTURE CORPORATION 
Page 5

Power generated (GWh)
For the year ended
Dec 31, 2024
Dec 31, 2023
Change
Wind
 
1,147.7  
995.5  
152.2 
Solar
 
374.5  
371.5  
3.0 
Gas
 
80.1  
45.6  
34.5 
Hydro
 
146.6  
132.7  
13.9 
Biomass (1)
 
148.5  
192.7  
(44.2) 
Total Power
 
1,897.4  
1,738.0  
159.4 
(1)
Whitecourt began a temporary shutdown to progress its refurbishment project in the second quarter, resulting in lower production, and resumed operations in 
the third quarter.
Capstone's power segment earns revenue from:
•
The wind facilities, in Ontario, Nova Scotia, Québec, Saskatchewan, by selling electricity in accordance with their PPAs 
and the Buffalo Atlee projects in Alberta, which sell electricity and the associated emissions offset credits under a PPA, 
and electricity into the Alberta Power Pool. On a megawatt ("MW") weighted-average-basis, there are 9 years remaining 
on the current PPAs.
•
The solar facilities, consisting of:
▪
Amherstburg in Ontario, selling its electricity under a long-term PPA expiring in 2031;
▪
Projects in Alberta, which sell electricity and the associated emissions offset credits under various
                   contracts including PPAs, into the Alberta Power Pool, and to third parties. On a MW weighted-average-basis,
                     there are 7 years remaining on the current PPAs, with the earliest expiry in 2029.
•
Whitecourt, a biomass facility in Alberta, by selling electricity at market rates to the Alberta Power Pool. Whitecourt also 
earns a portion of its revenue from the sale of emissions offset credits. These are supplemented or offset by a revenue 
sharing agreement with one of Whitecourt's fuel suppliers, where contractual settlements are included in other gains and 
losses in the consolidated statement of income.
•
Cardinal, a natural gas peaking facility in Ontario, from fixed payments for providing capacity and availability to the IESO 
with a 2034 power contract expiry and by supplying electricity to the Ontario grid when it is profitable to do so. In addition, 
Cardinal receives a fixed amount (subject to escalation) to provide operational and maintenance services to Ingredion's 
15MW facility.
•
The hydro facilities, in Ontario and British Columbia, by selling electricity under long-term PPAs. On a MW weighted-
average-basis, there are 18 years remaining on the current PPAs, with the earliest expiry in 2040.
Historically, Capstone has benefited from offsetting resource patterns across geographically disparate jurisdictions. The 2023 
year was a historically low wind and hydro resource year across jurisdictions, which yields the result below.
In 2024, Capstone generated approximately 206,500 units of tCO2e emissions offset credits, which are associated with 
electricity sold at market rates into the Alberta Power Pool, with 56,500 units sold at Claresholm and the remaining reserved at 
Buffalo Atlee, Whitecourt, and Kneehill. Emissions offsets can be sold in future periods once they have been serialized, but are 
not recognized until they are contracted to be sold.
The following table shows the significant changes in revenue from 2023:
Change Explanations
 (16,464) Lower revenue from Whitecourt due to planned refurbishment shutdown and lower Alberta Power Pool prices.
 (12,918) Lower revenue from the solar facilities due to lower Alberta Power Pool prices and lower emissions offset prices, partially offset by 
higher production.
 
(6,944) Emissions offset credits not sold at Whitecourt and Kneehill in 2024.
 
2,785 Higher revenue at Cardinal due to more market runs.
 
4,562 Revenue from adding Buffalo Atlee which achieved commercial operation in June 2024.
 
9,239 Higher revenue from the wind and hydro facilities, due to higher resource.
 (19,740) Change in revenue. 
Seasonality
Overall, the results for Capstone’s power segment fluctuate during the year because of seasonal factors that affect quarterly 
production of each facility. These factors include scheduled maintenance and environmental factors such as water flows, solar 
irradiance, wind speeds, air density, ambient temperature, and humidity, which affect the amount of electricity generated. In 
aggregate, these factors have historically resulted in higher electricity production during the first and fourth quarters.
CAPSTONE INFRASTRUCTURE CORPORATION 
Page 6

Expenses
Expenses consist of expenditures within the power segment relating to operating expenses and costs to develop new projects, 
as well as corporate business development and administrative expenses.
Expenses
For the year ended
Dec 31, 2024
Dec 31, 2023
Change
Wind
 
(29,402)  
(26,219)  
(3,183) 
Solar
 
(9,163)  
(9,515)  
352 
Gas
 
(14,887)  
(13,292)  
(1,595) 
Hydro
 
(4,334)  
(4,327)  
(7) 
Biomass
 
(13,009)  
(15,177)  
2,168 
Power operating expenses
 
(70,795)  
(68,530)  
(2,265) 
Project development costs
 
(11,576)  
(11,594)  
18 
Administrative expenses
 
(11,970)  
(11,331)  
(639) 
Total Expenses
 
(94,341)  
(91,455)  
(2,886) 
Expenses for the operation and maintenance ("O&M") of the power facilities mainly consist of wages and benefits and payments 
to third party providers. Capstone's wind facilities are operated by Capstone's in-house operations and maintenance teams, 
except for Glen Dhu, Goulais, SkyGen, Saint-Philémon, Glace Bay, Riverhurst, and Buffalo Atlee, which are maintained under 
service agreements, typically with the original equipment manufacturers. The hydro facilities are operated and maintained under 
an O&M agreement. In addition, Cardinal, Whitecourt, Claresholm, Amherstburg, Michichi, and Kneehill rely on the internal 
capabilities and experience of Capstone's staff. Other significant costs include fuel, transportation, insurance, utilities, land 
leases, raw materials, chemicals, supplies, and property taxes.
Project development costs consist of direct staff costs, professional fees, and other costs to pursue greenfield opportunities, as 
well as costs to explore and execute transactions. Administrative expenses are comprised of staff costs, professional fees for 
legal, audit, and tax, as well as certain office administration and premises costs.
The following table shows the significant changes in expenses from 2023: 
Change Explanations
 
(4,538) Higher expenses from adding Michichi and Kneehill, and Buffalo Atlee which achieved commercial operation in March 2023 
and June 2024, respectively.
 
(1,595) Higher expenses at Cardinal due to more market runs in 2024.
 
1,950 Lower operating costs at the solar facilities, mainly due to lower variable operating costs at the Alberta solar facilities.
 
2,168 Lower operating expenses at Whitecourt primarily due to a planned refurbishment shutdown.
 
(871) Various other changes.
 
(2,886) Change in expenses.
FINANCIAL POSITION REVIEW
Overview
As at December 31, 2024, Capstone's working capital was a $21,931 deficit, compared with a surplus of $13,137 as at 
December 31, 2023. The decrease results from additions to current debt at SkyGen and Skyway 8 of $17,876, and decreases in 
cash and cash equivalents, accounts receivable, and current portion of derivative contract assets.
Capstone has adequate financial flexibility to meet liquidity needs and support further growth, including $46,742 of unrestricted 
cash and cash equivalents, and credit facility capacity of $196,110 available.
Capstone and its subsidiaries continue to comply with all debt covenants, except as noted in note 16b "Long-term Debt" in the 
consolidated financial statements as at and for the year ended December 31, 2024.
Liquidity
Working capital
As at
Dec 31, 2024
Dec 31, 2023
Power
 
(19,466)  
14,857 
Corporate
 
(2,465)  
(1,720) 
Working capital (equals current assets, less current liabilities)
 
(21,931)  
13,137 
Capstone's working capital was $35,068 lower than December 31, 2023, mainly due to a decrease at the power segment. The 
power segment decrease was mainly driven by $16,587 lower cash due to more construction and development activities, lower 
accounts receivable of $11,241 due to timing differences in the receipt of payments and by an increase of $17,876 in current 
CAPSTONE INFRASTRUCTURE CORPORATION 
Page 7

debt at SkyGen and Skyway 8 which are all due within one year. These were partially offset by a decrease in accounts payable 
driven by the payment of construction invoices associated with achievement of commercial operation at Buffalo Atlee. 
Cash and cash equivalents
As at
Dec 31, 2024
Dec 31, 2023
Power
 
45,986  
62,573 
Corporate
 
756  
872 
Unrestricted cash and cash equivalents
 
46,742  
63,445 
These funds are available for operating activities, capital expenditures, and future acquisitions. The $16,703 decrease consists of 
a decrease of $16,587 at power and a decrease of $116 at corporate, reflecting increased spending for construction and 
development activities.
Cash at the power segment is comprised of $6,577 at CPC and $39,409 at the projects, which is only periodically accessible by 
corporate through distributions. The power segment's cash and cash equivalents are accessible through distributions under the 
terms of the CPC credit facility, which allows for distributions, subject to certain conditions. In turn, CPC receives distributions 
from its subsidiary power assets, which are subject to the terms of their project-specific credit agreements.
In addition to these funds, the CPC revolving facility has $17,450 of available capacity to be drawn as at December 31, 2024.
Cash flow
Capstone’s consolidated cash and cash equivalents decreased by $16,703 in 2024 compared with a decrease of $61,452 in 
2023. The components of the change in cash, as presented in the consolidated statement of cash flows, are summarized as 
follows:
For the year ended
Dec 31, 2024
Dec 31, 2023
Operating activities
 
72,927  
111,658 
Investing activities
 
(160,501)  
(322,489) 
Financing activities (excluding dividends to shareholders)
 
73,647  
152,155 
Dividends paid to shareholders
 
(2,776)  
(2,776) 
Change in cash and cash equivalents
 
(16,703)  
(61,452) 
Cash flow from operating activities was $38,731 lower in 2024 due to a $36,140 decrease from the power segment and a 
$2,591 decrease from corporate. The decrease reflects reduced contributions as noted in the revenue and expense sections.
Cash flow used in investing activities was $161,988 lower in 2024, from decreased spend in projects under development 
("PUD") and capital assets. In 2024, $119,597 was used for PUD, mainly to build Buffalo Atlee and Wild Rose 2. Additionally, 
$32,411 was used for capital assets, mainly at the hydro facilities, Claresholm, Kneehill, Michichi, Erie Shores, and Whitecourt in 
2024.
Cash flow from financing activities was $78,508 lower in 2024, driven by a return of capital to the Class A shareholder of 
$75,000 and $36,404 higher proceeds from long-term debt, mainly due to the CPC refinancing of the revolving credit facility and 
the Wild Rose 2 project financing. In addition, there was $124,859 lower debt repayments, $27,644 lower government funding 
received in 2024, and $70,000 lower proceeds received from shareholder contributions.
Long-term Debt
Continuity of Capstone's long-term debt for the year ended was:
Dec 31, 2023
Additions
Repayments
Other
Dec 31, 2024
Long-term debt (1), (2) and (3) 
 
984,313  
311,084  
(174,472)  
(60)  
1,120,865 
Deferred financing fees (4)
 
(16,744)  
(15,780)  
—  
4,283  
(28,241) 
 
967,569  
295,304  
(174,472)  
4,223  
1,092,624 
Less: current portion of long-term debt (5)
 
(69,596)  
—  
—  
(22,060)  
(91,656) 
 
897,973  
295,304  
(174,472)  
(17,837)  
1,000,968 
(1)
The power segment has drawn $107,394 for letters of credit, along with $22,762 supported by Capstone's common shareholder. 
(2)
Additions of $311,084 consist of CPC revolving credit facility draws of $61,500 and Wild Rose 2 project financing of $249,584. See the "Changes in the 
Business" section in this MD&A for detail.
(3)
Repayments of $174,472 include $31,000 on the CPC revolving credit facility, $70,707 on the Wild Rose 2 non-revolving loan and scheduled repayments on the 
various project debt facilities. 
(4)
Additions consist of deferred transaction costs on the Wild Rose 2 project financing and Buffalo Atlee term conversion. See the "Changes in the Business" 
section in this MD&A for detail.
(5)
Change to current portion of $22,060 reflects an increase of $20,315 from the SkyGen and Skyway 8 project debts maturing in 2025.
As at December 31, 2024, Capstone's long-term debt consisted of $1,012,865 of project debt and $108,000 for the CPC credit 
facilities. The current portion of long-term debt was $91,656, consisting of scheduled debt amortization of $71,341 and upcoming 
2025 maturities of Skyway 8 and SkyGen of $12,709 and $7,606, respectively. Capstone expects to repay the scheduled 
amortization from income generated by the power assets and is evaluating readily available options to refinance or extend the 
project debt maturing in the next twelve months.
CAPSTONE INFRASTRUCTURE CORPORATION 
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CPC is subject to customary covenants, including specific limitations on leverage and interest coverage ratios. All of the power 
segment's project debt is non-recourse to Capstone, except for certain limited recourse guarantees provided to the lenders of the 
various facilities. In 2024, the CPC revolving credit facility was amended and restated, to increase its revolver capacity to 
$275,000 and to extend its maturity date to March 27, 2027.
Equity
Shareholders’ equity comprised:
As at
Dec 31, 2024
Dec 31, 2023
Common shares (1)
 
137,270  
212,270 
Preferred shares (2)
 
72,020  
72,020 
Share capital
 
209,290  
284,290 
Accumulated other comprehensive income (loss)
 
744  
— 
Retained earnings
 
55,723  
63,476 
Equity attributable to Capstone shareholders
 
265,757  
347,766 
Non-controlling interests
 
91,391  
96,856 
Total shareholders’ equity
 
357,148  
444,622 
(1)
Includes $75,000 paid as a return of capital to the Class A common shareholder in 2024 (2023 - cash capital contributions of $70,000).
(2)
Capstone has 3,000 publicly listed Series A preferred shares on the Toronto Stock Exchange.
Contractual Obligations
As at December 31, 2024, Capstone had outstanding contractual obligations with amounts due as follows:
Within one year
One year to five years
 Beyond five years
 Total
Long-term debt (1)
 
123,688  
663,016  
554,614  
1,341,318 
Leases
 
6,638  
24,068  
64,456  
95,162 
Asset retirement obligations
 
—  
—  
22,362  
22,362 
Purchase obligations
 
66,379  
37,384  
130,072  
233,835 
Total contractual obligations
 
196,705  
724,468  
771,504  
1,692,677 
(1)
Long-term debt includes principal and interest payments.
Long-term debt
•
Long-term debt is discussed in the "Long-term Debt" section of this MD&A.
Leases
The following leases have been included in the table based on known minimum lease payments:
•
Capstone's operating wind facilities and wind development projects have entered into agreements to use, or the option to 
use, land in connection with the operation of existing and future wind facilities. Payment under these agreements is typically 
a minimum amount with additional payments dependent on the amount of power generated by the wind facility. The 
agreements can be renewed and extended as far as 2061.
•
Cardinal leases the site on which it is located from Ingredion. Under the lease, Cardinal pays monthly rent. The lease 
extends through 2034 and expires concurrently with the Energy Savings Agreement between Ingredion and Cardinal. 
•
Capstone's operating solar facilities have entered into agreements to use land in connection with their operation with terms 
extending as far as 2067.
•
The Corporation has two leases for its corporate offices expiring in 2026 and 2028.
Capstone's operating leases with no minimum payments required are:
•
Agreements with the Provinces of Ontario and British Columbia for the lease of certain lands and water rights necessary for 
the operation of its hydro power facilities. The payments under these agreements vary based on actual power production. 
The terms of the lease agreements expire in 2025 and 2042. 
Asset retirement obligations
Commitments associated with asset retirement obligations for Capstone's power facilities are projected to occur principally over 
the next 25 years. Some asset retirement obligations could be incurred as early as 2026, but the average asset retirement date 
is expected to be 2037.
Purchase obligations
Capstone enters into contractual commitments in the normal course of business, either directly or through its subsidiaries. These 
contracts include capital commitments and operations and maintenance ("O&M") agreements:
Capital commitments
•
As at December 31, 2024, Capstone had capital purchase obligations of $51,582 for the construction of the Wild Rose 2 
wind development project.
CAPSTONE INFRASTRUCTURE CORPORATION 
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O&M agreements
•
Cardinal has a maintenance contract with Siemens Energy Canada Limited covering the gas turbine at Ingredion's 15MW 
facility.
•
Capstone has several service and maintenance agreements covering the turbines in operation on various wind facilities. 
The agreements provide for scheduled and unscheduled maintenance and require annual minimum payments, subject to 
inflationary increases, as applicable.
•
Capstone has an O&M agreement with Regional Power OPCO Inc. ("Regional") to operate and maintain the hydro power 
facilities. Regional is paid a monthly management fee and is eligible for an annual incentive fee.
•
As at December 31, 2024, Capstone has aggregate purchase commitments of $175,306 for the operation and 
maintenance of various operating facilities and the Wild Rose 2 project.
Other commitments
In addition to the commitments included in the table above, Capstone has the following other commitments with no fixed 
minimum payments:
Power Purchase Agreements
A significant portion of the Corporation's electricity revenue is earned through long-term PPAs. The majority of these contracts 
include terms and conditions customary to the industry. For Cardinal's contract, the nature of commitments is based on the 
contract capacity of the facility. The remaining power facilities are registered as electricity market participants where they 
deliver as generated electricity to the grid for a price specified in the PPA; however, in certain circumstances, if the facility fails 
to meet specific performance requirements, the facility may have financial penalties or the PPA may be terminated after a 
specified period of time. For certain wind projects in development, commitments include availability targets subsequent to 
achieving COD, and security in the form of letters of credit during development.
Management services agreements
Capstone has management services agreements with all the partially owned operating wind and solar facilities. These 
agreements are primarily for the provision of management and administration services and are based on an agreed 
percentage of revenue.
Wood waste supply agreement
One of the Whitecourt fuel supply agreements for wood waste includes sharing mechanisms regarding the price received for 
electricity and emissions offset credits sold by Whitecourt.
Energy savings agreement ("ESA")
Cardinal has an ESA with Ingredion which expires in 2034. Under the terms of the ESA, Cardinal is required to provide O&M 
services in respect of Ingredion's 15MW facility, and supply steam and compressed air to Ingredion for the use of its 
manufacturing facility. Cardinal entered into a maintenance contract with Siemens Energy Canada Limited in connection with 
the operation and maintenance of the 15MW plant in order to support Cardinal's satisfaction of the O&M terms of the ESA.
Guarantees
Capstone has provided certain guarantees relating to the government funding received, as well as limited recourse guarantees 
on the project debt of certain wind and solar projects totaling $66,366 as at December 31, 2024. 
There have been no other significant changes to the specified contractual obligations that are outside the ordinary course of 
business. Capstone is not engaged in any off-balance sheet financing transactions. Due to the nature of their operations, the 
power facilities are not expected to incur material contingent liabilities upon the retirement of assets.
Capital Expenditure Program
Capstone's power segment invested $131,939 in capital expenditures during 2024. This consisted of $123,006 of capitalized 
PUD, less $16,203 of government funding, plus $25,136 of capital asset additions.
Amounts capitalized to PUD in 2024 were primarily for costs for the construction of the Wild Rose 2 wind project ($86,007) and 
the Buffalo Atlee wind projects prior to COD ($13,770).
The government funding relates to the Wild Rose 2, Buffalo Atlee, Michichi, and Kneehill projects which have agreements with 
the Government of Canada, and are eligible for funding for a portion of the capital expenditures, subject to certain conditions.
Income Taxes
In 2024, the current income tax expense of $620 (2023 - recovery of $781) primarily relates to the US tax expense from the sale 
of equipment, partially offset by the reversal of Canadian Renewable and Conservation Expense ("CRCE") reserve as the claim 
periods have expired.
Deferred income tax assets and liabilities are recognized on Capstone's consolidated statement of financial position based on 
temporary differences between the accounting and tax bases of existing assets and liabilities. Deferred income tax assets and 
liabilities are calculated on a net basis where there is a legally enforceable right of offset within the same tax jurisdictions.
CAPSTONE INFRASTRUCTURE CORPORATION 
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Capstone’s net deferred income tax liability decreased by $9,170 primarily due to the difference between accounting and tax 
amortization claimed during the year, non-deductible fair value adjustments on financial instruments, and an increase in tax 
losses for the year. Capstone's total deferred income tax assets of $5,257 (2023 - $8,874) primarily relate to unused tax losses 
carried forward. Deferred income tax liabilities of $80,515 (2023 - $93,302) primarily relate to the differences between 
amortization of intangible and capital assets for tax and accounting purposes and non-deductible fair value adjustments on 
financial instruments.
DERIVATIVE FINANCIAL INSTRUMENTS
Capstone has exposure to market, credit and liquidity risks from its use of financial instruments as described in note 7 "Financial 
Instruments" and note 8 "Financial Risk Management" in the consolidated financial statements as at and for the year ended 
December 31, 2024. These notes contain further details on the implicit risks and valuation methodology employed for Capstone’s 
financial instruments.
To manage certain financial risks inherent in the business, Capstone enters into derivative contracts primarily to mitigate the 
economic impact of the fluctuations in interest rates, or electricity market prices. The fair values of these contracts included in the 
consolidated statement of financial position, were:
As at
Dec 31, 2024
Dec 31, 2023
Derivative contract assets
 
27,083  
24,957 
Derivative contract liabilities
 
(6,693)  
(21,381) 
Net derivative contract assets
 
20,390  
3,576 
Net derivative contract assets increased by $16,814 from December 31, 2023, due to gains of $17,950 in the statement of 
income and contractual settlements of $1,136 received.
Fair value changes of derivatives in the consolidated statements of income and comprehensive income comprised:
For the year ended
Dec 31, 2024
Dec 31, 2023
Interest rate swap contracts (1)
 
(4,686)  
(26,655) 
Embedded derivatives (2)
 
22,636  
(9,136) 
Gain (losses) on derivatives in comprehensive income
 
17,950  
(35,791) 
(1)
As of June 28, 2024, the Canadian Overnight Repo Rate Average (“CORRA”) is the successor rate for the Canadian Dollar Offered Rate (“CDOR”), and all of 
Capstone's loans referencing CDOR transitioned to CORRA. The transitions have not had a material financial impact to the Corporation.
(2)
The embedded derivatives relate to fuel supply and PPA contracts. Refer to "Accounting policies, estimates, and internal controls" in this MD&A.
The gain reflects generally lower forecasted Alberta Power Pool prices, partially offset by losses from lower forecasted interest 
rates since December 31, 2023.
RISKS AND UNCERTAINTIES
Introduction
Risk is an inevitable aspect of operating any business. Decisions that balance risk exposure with intended financial rewards 
within risk tolerances are the responsibility of the Corporation's management under the supervision of the Board of Directors. 
When a risk exposure exceeds the Corporation's risk tolerance, the Corporation will, to the extent possible, take steps to 
eliminate, avoid, reduce or transfer such risk.
The Corporation recognizes the importance and benefits of timely identification, assessment and management of risks that may 
impact the Corporation's ability to achieve its strategic and financial objectives. In this respect, the Corporation is committed to 
prudent risk management practices within the context of an enterprise risk management ("ERM") framework. The Corporation 
maintains a registry of risks that is reviewed by management and the Board of Directors at least quarterly. The Corporation also 
undertakes an annual comprehensive review of its ERM framework and practices to continuously improve its risk management 
practices.
What follows is a description of the Corporation's key risk governance and risk processes to support achievement of strategic 
and financial performance objectives.
CAPSTONE INFRASTRUCTURE CORPORATION 
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Risk Management Principles and Governance
The Corporation's ERM framework is based on five core principles which establish the culture and tone that guide risk 
management decisions. Risk management is everyone's responsibility, about decision-making, embedded within existing 
management routines, about people and culture, and specific to each business unit. The Corporation's interpretation of the ERM 
framework includes the following hierarchy of responsibilities:
•  Board of Directors and Audit Committee have overall governance responsibility for 
setting and overseeing management's implementation of the risk management policy.
•  Internal Audit reports to the Audit Committee and is responsible for reviewing 
management's practices to manage risks in specific areas agreed from time to time 
between management and the Audit Committee.
•  Senior Management is responsible for ensuring the implementation of the ERM 
framework to all applicable activities and reporting to the Audit Committee and the Board 
of Directors.
•  Business Units are responsible for ensuring the application of a risk management 
framework to identify, monitor and report risk.
•  Risk Owners are responsible for the identification and day-to-day management and 
oversight of risks in their assigned area.
Risk Management Processes
The Corporation's framework relies on the following six key ERM processes to integrate risk management activities with strategic 
and operational planning, decision-making and day-to-day oversight of business activities.
• Risk identification is the process of identifying and categorizing risks that could impact the Corporation's objectives.
• Risk assessment is the process of determining the likelihood and impact of the risk. The Corporation uses a five-point 
rating scale for likelihood and impact.
• Risk prioritization is the process of ranking risks as high, medium or low based on the net risk rating as described in the 
diagram below.
• Risk management responses are measures taken to optimize the Corporation's net risk exposure within overall tolerance to 
achieve the desired balance between risk and reward.
• Monitoring and reporting are the processes of assessing the effectiveness of risk management responses.
• Training and support ensure that personnel tasked with risk management responsibilities have sufficient knowledge and 
experience to complete their risk management obligations.
The Corporation's risk management approach is comprehensive. It combines the 
experience and specialized knowledge of individual business segments and 
corporate oversight functions as well as various analytic tools and methodologies, 
including a risk matrix (see chart to the right), to assist the Corporation in regularly 
assessing and updating the net exposure (including mitigants) of each known 
material risk facing the Corporation in the following four risk categories: 
operational; strategic; financial; and legal and regulatory. The Corporation's 
assessment process prioritizes risks.
Managing Risk
The Corporation requires that risk assessments (which encompass operational, strategic, financial and legal and regulatory risks) 
be performed for the power facilities and at the corporate level. 
In addition to these risks, there are numerous other risk factors, many of which are beyond the Corporation's control and the 
effects of which can be difficult to predict, that could be material to investors or cause the Corporation's results to differ 
significantly from its plans, objectives and estimates. For a more comprehensive list and description of the risks affecting the 
Corporation refer to the "Risk Factor" section of the Corporation's most recently filed Annual Information Form, as supplemented 
by risk factors contained in any of the following documents filed by the Corporation with securities commissions or similar 
authorities in Canada after the date of this annual MD&A, which are available on SEDAR+ at www.sedarplus.ca: material change 
reports; business acquisition reports; interim financial statements; and interim management's discussion and analysis.
Risks Related to the Corporation and its Businesses
Risks that have materially affected the Corporation's financial statements, or that have a reasonable likelihood of affecting them 
materially in the future, are presented in the table below. 
CAPSTONE INFRASTRUCTURE CORPORATION 
Page 12

The Corporation continues to monitor developments and develop mitigation measures to manage impacts on its businesses and 
development projects. Risks specific to Capstone's power segment, as well as at the corporate-level, are included.
Development and capital expenditure 
risks concern the construction of new 
Canadian or US power generation  
facilities in line with the requirements of 
awarded PPAs and regulatory 
requirements and planned maintenance 
capital expenditures required on existing 
facilities to maintain operations.
Delays and cost overruns in the 
construction of new facilities, failure to 
meet regulatory standards or in 
performing planned maintenance or 
refurbishments could lead to lower cash 
flows, and where PPA requirements are 
not met, cancellation of the PPA resulting 
in lost revenue and impairment of any 
capitalized costs for the facility.
Capstone has professional project management 
processes and uses experienced contractors and 
advisors. Capstone contracts include a combination of 
incentives, liquidated damages, or fixed-pricing to align 
suppliers interests to project results.
Production risk concerns the 
dependence of power production on 
adequate resources such as wind, 
sunlight and water flow as well as fuel 
supply and the availability of each of the 
sites.
Low availability, inadequate wind, sunlight, 
water flow, wood waste, or gas leads to 
lower power production which results in 
lower revenues.
Capstone maintains facilities in quality condition to 
maximize availability for power generation when 
renewable resources are available and strongest.
Capstone also seeks to diversify its portfolio of 
businesses to mitigate the dependency on a single 
resource or geography.
Merchant risk concerns the power 
generation facilities with ties, directly or 
indirectly, to the wholesale market price 
for electricity in Ontario and Alberta.
Volatility and uncertainty in the energy 
market and market prices for electricity 
could cause Capstone to fall short of its 
financial forecasts due to revenue short-
falls.
Capstone mitigates by obtaining third party forecasts of 
market prices for electricity and pursuing PPA or off-
take contracts with reputable counterparties.
PPA renewal risk concerns the ability to 
recontract expiring PPAs on economically 
feasible terms and failing to align with the 
useful lives of the power facilities.
If Capstone is unsuccessful or delayed in 
recontracting its expiring PPAs, it would 
cause Capstone to fall short of its financial 
forecasts, as revenue short-falls could 
result from operating in merchant or other 
markets.
Capstone mitigates by starting negotiations with 
counterparty(ies) well before contract expiry, 
considering impacts of other stakeholders and working 
to ensure the broader benefits of the facility are 
considered in the process. In addition, company-wide 
mitigation is provided by maintaining a diversified 
portfolio to reduce the impact of any one facility to the 
overall consolidated financial results.
Information technology ("IT") and data 
security risk concerns the ability to 
develop, maintain and manage complex 
information technology systems which are 
used to operate and monitor its facilities 
and other business systems.
Cyber attacks or unauthorized access to 
information technology systems may lead 
to production disruptions and system 
failures that, amongst other things, may 
result in lower production and revenues.
Capstone follows a recognized IT framework which 
includes security and recovery plans.
In addition, certain sites are compliant with North 
American Electric Reliability Corporation standards.
Succession and human resources 
retention risks concern the ability to 
replace senior management and attract, 
retain and motivate key staff.
Inability to retain or replace key staff or 
senior management could prevent or 
delay Capstone from executing its 
business strategy, thereby causing 
Capstone to fall short of its financial 
forecasts.
Capstone maintains a succession plan and provides 
career and development opportunities to its employees.
Strategic Risks
Competition risk concerns the ability to 
source and complete attractive investment 
opportunities that support Capstone's 
growth initiatives within the power 
segment.
Inability to source and execute attractive 
growth opportunities may lead to lower 
long-term cash flow as businesses 
operating under finite term contracts 
experience uncertainty about their longer 
term cash flow potential.
Management periodically reviews and updates strategy 
according to market conditions and developments.
Financial Risks
Expense management risk concerns 
unexpected non-recoverable increases in 
operating and administrative costs. 
Unanticipated increases in costs could 
result in lower earnings and cash flow.
Capstone monitors costs against budgets and 
considers asset lifecycle costs in decision making.
Forecasting risk concerns the accuracy 
of projections for results from operations 
due to error or unpredictable economic, 
market and specific business factors.
Volatility of financial forecasts increases 
liquidity reserve requirements to pay 
expenses, reducing cash flows.
Capstone targets businesses which have inherently 
predictable financial results from operations.
Capstone maintains adequate levels of liquidity to 
manage during periods of uncertainty.
Taxation risk concerns higher income 
and other taxes attributable to adverse 
legislation changes, both in the US and 
domestic, including tax rate increases, or 
interpretations by tax authorities on audit.
Higher taxation results in both lower 
income and cash flow available.
Capstone minimizes exposures to adverse tax rulings 
by choosing structures that adhere to taxation 
regulations, are commonly used in practice and 
wherever practical supported by opinions of external 
advisers.
In addition, Capstone monitors the trends and policies 
of taxation authorities in the jurisdictions where its 
businesses operate.
Risk and Description
Impact
Monitoring and Mitigation
Operational Risks
CAPSTONE INFRASTRUCTURE CORPORATION 
Page 13

Financing risk concerns the ability to 
access timely and cost effective debt or 
equity to support the development and 
construction of power facilities, business 
acquisitions and replace maturing debt.
Inability to access cost-effective debt or 
equity could result in higher interest costs, 
lower cash flow or liquidity difficulties.
For an acquisition, this could also prevent 
Capstone from realizing a growth 
opportunity.
Capstone maintains relationships with multiple financial 
institutions that have the resources to provide some or 
all financing requirements. In addition, most existing 
project debt amortizes over the term of the PPAs to 
minimize refinancing requirements and debt maturities 
are staggered.
Foreign exchange fluctuations risk 
concerns volatility of the Canadian dollar 
relative to foreign currencies.
Volatility in exchange rates could 
negatively impact cash flows, value of 
investments and operating results, which 
are denominated in Canadian dollars.
Capstone minimizes exposure to foreign exchange 
fluctuations through hedging instruments where 
economically feasible. 
Legal and Regulatory Risks
Regulatory change risk concerns the  
adverse affects to Capstone's business 
from changes in federal, provincial, state 
or municipal laws or regulations most 
notably, changes to the Clean Technology 
Investment Tax Credit and Technology 
Innovation and Emissions Reduction 
regulations. 
Changes in laws or regulations could 
impact Capstone's current business and 
limit opportunities for growth in the future. 
Capstone remains informed on relevant legislation, 
regulations, standards, and codes, engaging external 
consultants where applicable.
Risk and Description
Impact
Monitoring and Mitigation
Operational Risks
ENVIRONMENTAL, HEALTH AND SAFETY REGULATION
Capstone's power facilities (collectively the "Facilities") hold all material permits and approvals required for their operation and 
maintenance. All assets are managed to comply with health, safety and environmental ("HSE") laws in addition to Capstone's 
corporate and facility-specific HSE policies. 
The Facilities are subject to robust and stringent environmental, health and safety regulatory regimes, which focus on:
•
Commitment to identify, eliminate, mitigate and manage health and safety issues for all workers, visitors, nearby landowners 
and other personnel at each of the Facilities;
•
Regulatory compliance of emissions and discharges related to air, noise, water, and sewage;
•
Proper storage, handling, use, transportation and distribution of dangerous goods and hazardous and residual materials 
including the prevention of releases of these materials to the environment; 
•
Management of construction and operation related permits to ensure compliance with all HSE regulations; and
•
Protection of the natural and built environment.
Climate Change, Greenhouse Gas Emissions and Policy Initiatives
Due to the emission of greenhouse gases ("GHGs"), such as carbon dioxide ("CO2") and nitrous oxides ("NOx"), some of the 
Facilities, specifically the Cardinal and Whitecourt facilities, have an ongoing operational impact on the environment. All Facilities 
comply in all material respects with the applicable Canadian and provincial legislation and guidelines regarding GHGs and other 
emissions. Capstone monitors the potential impact of future changes to environmental legislation and guidelines by remaining 
diligent in the operation of the Facilities, including implementing stringent policies and procedures to prevent the contravention of 
permits and approvals. 
The Canadian federal government ratified the Paris Accord, negotiated under the United Nations Framework Convention on 
Climate Change, in the fall of 2016. Pursuant to the Paris Accord, the parties committed, in a non-binding manner, to accelerate 
actions and investments needed to limit global average temperatures to below 2°C above pre-industrial levels and to pursue 
efforts to limit the increase to 1.5°C. In late 2016, Canada and the majority of its provinces agreed to the Pan-Canadian 
Framework on Clean Growth and Climate Change ("Framework"). Pursuant to the Framework, provincial jurisdictions have the 
flexibility to implement a variety of carbon regimes ranging from price-based regimes involving a carbon tax, to performance-
based emissions regimes involving emissions intensity and cap and trade. As a regulatory backstop, the federal government has 
also enacted the Greenhouse Gas Pollution Pricing Act ("GGPPA"), which implements a carbon pricing regime in those provinces 
that fail to implement adequate provincial measures. Pursuant to the GGPPA, the minimum price for carbon for large emitters 
was $80/tonne in 2024 and is $95/tonne in 2025. As set out in Schedule 4 of the GGPPA, the carbon price will increase by $15/
tonne per year over the next several years, resulting in a carbon price of $170/tonne in 2030. The Corporation continues to 
monitor the federal government's assessment of alternative carbon pricing systems for compliance with the GGPPA.
In Alberta, the Technology Innovation and Emissions Reduction ("TIER") Regulation applies to regulated facilities that emit 
100,000 tonnes or more of GHGs per year. TIER has been accepted by the federal government as an alternative to the federal 
backstop for large emitters. If a large emitter cannot meet its provincial GHG emissions thresholds through operational 
improvements, it can purchase emission offsets from qualified offset facilities, purchase emission performance credits from other 
large emitters, or contribute to the Alberta TIER fund. To ensure consistency with the provisions of the GGPPA, the Alberta 
government has announced the TIER fund price will increase in a manner consistent with the GGPPA for the years 2023 to 2030. 
In 2025, the price of the Alberta TIER fund is $95/tonne. Capstone's operating Alberta-based wind and solar development 
CAPSTONE INFRASTRUCTURE CORPORATION 
Page 14

projects are all eligible to produce valid emission offsets under TIER, including Claresholm, Whitecourt, Michichi, Kneehill, and 
Buffalo Atlee, which produced emission offsets in the current year.
Ontario has introduced an Emissions Performance Standards ("EPS") program which applies to GHG emissions from large 
industrial emitters. The EPS program has also been accepted by the federal government as an alternative to the federal 
backstop. Although Ontario previously indicated it intended to develop an offset trading program, in April of 2024 it confirmed 
nothing would be developed in the short term and it remains unclear if and when Ontario will develop an offset trading system as 
part of its EPS program.
Cardinal
The Cardinal facility uses natural gas to generate electricity and, therefore, produces GHG emissions. The facility is required to 
report its GHG emissions under various federal and provincial regulations. Federal and provincial environmental regulations also 
require for, among other things, the reporting of NOx emissions and other particulate matter pollutants as conditions of the 
facility's operating permits. The Cardinal facility is in compliance with all federal and provincial GHG and environmental 
monitoring and reporting requirements.
Whitecourt
The Whitecourt facility uses biomass combustion technology to convert the energy content in wood waste into electricity. 
Biomass is generally considered to be carbon-neutral as the amount of CO2 arising from combustion is equal to what would be 
emitted if the biomass were to decompose naturally. Although electricity generated from biomass is regarded as an 
environmentally friendly form of power generation, the facility is still required to report its GHG emissions under various federal 
and provincial regulations and programs. Federal and provincial environmental regulations also require for, among other things, 
the reporting of NOx emissions, CO2 emissions, and other particulate matter pollutants as conditions of the facility's operating 
permits. The Whitecourt facility is in compliance with all federal and provincial GHG and environmental monitoring and reporting 
requirements.
Hydro Facilities
Capstone's hydro facilities do not produce GHGs through electricity generation. However, ancillary operations and maintenance 
activities do produce immaterial amounts of GHG emissions, which are well below the federal and provincial threshold for 
verification and reporting. The facilities are also governed by water management plans and/or water licenses, which specify the 
hydrological conditions during which production may occur. 
Wind and Solar Facilities
Capstone's wind and solar facilities do not generate GHGs through electricity generation. However, ancillary operations and 
maintenance activities do produce immaterial amounts of GHG emissions, which are well below the federal and provincial 
threshold for verification and reporting.
Further Information
Further information regarding Environmental, Safety and Health Regulations matters is contained in the Corporation's Annual 
Information Form (which is available under the Corporation's profile on www.sedarplus.ca).
RELATED PARTY TRANSACTIONS
Capstone's 2024 related party transactions and balances are comprised of transactions with iCON Infrastructure LLP and 
subsidiaries ("iCON") and compensation to key management.
Shared Service Arrangement with iCON
The shared services agreement with iCON Infrastructure North America Inc. ("iCON NA"), a subsidiary of iCON, was terminated 
in 2024, thus Capstone did not earn any fees from iCON NA (2023 - $139). Prior to the termination, fees earned from iCON NA 
under such shared service arrangement were reported in the consolidated statements of income as an administrative expense 
recovery.
Contributions and Credit Support from iCON
In the second quarter of 2024, Capstone paid a return of capital of $75,000 in cash to its Class A common shareholder. No cash 
contributions were made by Capstone's Class A common shareholder in 2024 (2023 - $70,000).
The Class A common shareholder provides letters of credit issued to the benefit of Capstone under a financing and 
reimbursement agreement. Capstone reimburses the common shareholder for payments made on its behalf, including fees and 
draws on the letters of credit. For the year ended December 31, 2024, Capstone reimbursed normal course fees of $1,055 (2023 
- $801). As at December 31, 2024, the balance of outstanding letters of credit is $22,762 to support various operating facilities.
Compensation of Key Management
Key management includes the Corporation's directors, Chief Executive Officer ("CEO"), Chief Financial Officer ("CFO"), and 
Chief Operating Officer ("COO"). Compensation awarded to key management consists of salaries, directors' fees, short-term 
employee benefits and long-term incentive plans. Key management compensation is described in note 25 "Related Party 
Transactions" in the consolidated financial statements for the year ended December 31, 2024.
CAPSTONE INFRASTRUCTURE CORPORATION 
Page 15

Linking Management Compensation to Performance
Compensation plays an important role in achieving short- and long-term business objectives that ultimately drive the 
Corporation’s business success in alignment with long-term shareholder goals. The objectives of the Corporation's compensation 
program are to:
• 
Attract and retain highly qualified employees with a history of proven success;
• 
Align the interests of employees with shareholders’ interests and with the execution of the Corporation’s business strategy;
• 
Establish performance goals that, if met, are expected to improve long-term shareholder value; and
• 
Tie compensation to those goals and provide meaningful rewards for achieving them.
Corporate performance targets are set each year to provide management with an incentive to exceed annual budgeted financial 
results and other business performance measures and are therefore aligned with shareholder interests.
The following table summarizes the link between the Corporation's executive and senior officer forms of compensation and 
performance:
Salary
Short-term incentive plan ("STIP")
Share appreciation rights ("SAR") plan
Description
Salary is a fixed component of 
compensation that provides income 
certainty by establishing a base level of 
compensation for executives fulfilling 
their roles and responsibilities. 
The STIP provides the possibility of an 
additional annual cash award based on 
the achievement of corporate and 
individual goals.
Capstone has a share appreciation rights 
("SAR") plan, which is tied to long-term 
growth to motivate and retain executives on 
a long-term basis. The awards will be paid 
in cash after meeting certain vesting 
conditions.
Purpose
To attract and retain qualified 
executives.
To motivate, attract and retain qualified 
executives.
To reward long-term performance and align 
interests of executives with security 
holders.
Link to 
performance
No direct link.
A significant portion of this award is 
based on actual business performance 
against Capstone's internal 
performance measures.
The SAR is directly linked to the long-term 
increase in the Corporation's value upon a 
sale transaction.
For a comprehensive understanding of Capstone's compensation program refer to the "Compensation Discussion and Analysis" 
section of the Corporation's most recently filed AIF.
SUMMARY OF QUARTERLY RESULTS
The following table provides a summary of the previous eight quarters of Capstone’s financial performance.
2024
2023
Q4
Q3
Q2
Q1
Q4
Q3
Q2
Q1
Revenue
 
61,224  
45,825  
53,989  
58,237  
64,611  
53,618  
62,407  
58,379 
EBITDA
 
21,977  
(2,547)  
35,013  
78,590  
(29,640)  
68,163  
63,749  
7,794 
Net income (loss) (1)
 
(13,583)  
(26,881)  
(902)  
36,470  
(44,663)  
20,483  
13,249  
(18,813) 
Preferred dividends
 
694  
694  
694  
694  
694  
694  
694  
694 
(1)
Net income (loss) attributable to the common shareholders of Capstone, which excludes non-controlling interests.
CAPSTONE INFRASTRUCTURE CORPORATION 
Page 16

FOURTH QUARTER HIGHLIGHTS
Three months ended
Dec 31, 2024
Dec 31, 2023
Revenue
 
61,224  
64,611 
Operating expenses
 
(18,786)  
(17,639) 
Administrative expenses
 
(2,995)  
(3,740) 
Project development costs
 
(4,015)  
(2,576) 
Equity accounted income (loss)
 
(1,298)  
(644) 
Interest income
 
836  
1,986 
Other gains and (losses), net
 
(13,296)  
(71,411) 
Foreign exchange gains and (losses)
 
307  
(227) 
Earnings before interest, taxes, depreciation and amortization
 
21,977  
(29,640) 
Interest expense
 
(12,940)  
(10,628) 
Depreciation of capital assets
 
(21,891)  
(21,338) 
Amortization of intangible assets
 
(3,833)  
(3,398) 
Earnings (loss) before income taxes
 
(16,687)  
(65,004) 
Income tax recovery (expense)
Current
 
(339)  
318 
Deferred
 
3,348  
13,094 
Total income tax recovery (expense)
 
3,009  
13,412 
Net income (loss)
 
(13,678)  
(51,592) 
Net income (loss) attributable to:
Shareholders of Capstone
 
(13,583)  
(44,663) 
Non-controlling interest
 
(95)  
(6,929) 
 
(13,678)  
(51,592) 
In the fourth quarter of 2024, Capstone's EBITDA and net income were higher than in 2023. Higher quarterly net income reflects:
•
Lower unrealized losses primarily due to lower forecasted Alberta Power Pool Prices offset by lower future interest rates on 
financial instruments; partially offset by
•
Lower revenue due to lower Alberta Power Pool prices at Whitecourt, Claresholm, and Kneehill, lower emissions offset 
credits sales, and lower resource at the solar facilities. This is partially offset by wind production from higher resource, the 
addition of the Buffalo Atlee wind projects, which achieved COD in June 2024 and more runs at Cardinal; and 
•
Lower deferred income tax recovery is primarily attributable to non-deductible fair value adjustments on financial instruments 
and the difference in accounting and tax amortization claimed, partially offset by the increase in tax losses.
ACCOUNTING STANDARDS, ESTIMATES AND INTERNAL CONTROLS
Significant Changes in Accounting Standards
The consolidated financial statements have been prepared in accordance with IFRS Accounting Standards and are consistent 
with policies for the year ended December 31, 2023, except for the narrow-scope amendments to IAS 1. The IAS 1 amendments 
clarify how liabilities are disclosed and classified based on the conditions with which an entity must comply within twelve months 
after the reporting period. Capstone adopted the amendments as required for annual reporting periods beginning on or after 
January 1, 2024. This change did not have a material impact on the Corporation. Refer to note 16b "Long-term Debt" in the 
consolidated financial statements for the year ended December 31, 2024.
Refer to note 2 "Summary of Material Accounting Policies" in the consolidated financial statements for the year ended 
December 31, 2024. 
Future Accounting Changes
The International Accounting Standards Board ("IASB") has not issued any significant accounting standard changes that impact 
the Corporation. The IASB issued IFRS 18, Presentation and Disclosure in Financial Statements, which replaces IAS 1, 
Presentation of Financial Statements, to enhance the reporting of financial performance, while retaining many of its 
requirements. This new standard will be effective for annual reporting periods starting on or after January 1, 2027, with earlier 
adoption permitted. Capstone is evaluating the impact that the adoption will have on disclosure in the consolidated financial 
statements. 
CAPSTONE INFRASTRUCTURE CORPORATION 
Page 17

The IASB issued amendments to IFRS 9 Financial Instruments and IFRS 7 Financial Instruments: Disclosures to enhance the 
accounting for contracts referencing nature-dependent electricity, such as those involving renewable energy sources. These 
amendments aim to provide clearer guidance on the 'own-use' exemption for net-purchasers of energy and the application of 
hedge accounting for such contracts. Key aspects of the amendments include clarifying the application of the 'own-use' 
requirements, modifying and increasing flexibility in the effectiveness requirements for qualifying hedges, and adding new 
disclosure requirements to enable investors to understand the effect of these contracts on a company’s financial performance 
and cash flows. The amendments will be effective for annual reporting periods starting on or after January 1, 2026, with earlier 
application permitted. Capstone is evaluating the impact that the adoption will have to the consolidated financial statements.
Capstone continues to monitor changes to IFRS Accounting Standards and has implemented applicable IASB changes to 
standards, new interpretations, and annual improvements.
Accounting Estimates
The consolidated financial statements are prepared in accordance with IFRS Accounting Standards, which require the use of 
estimates and judgment in reporting assets, liabilities, revenues, expenses and contingencies. 
The following accounting estimates included in the preparation of the consolidated financial statements are based on significant 
estimates and judgments, which are summarized as follows:
Area of Significance
Critical Estimates and Judgments
Capital assets, projects under development and intangible assets:
•      Purchase price allocations.
•     Initial fair value of net assets.
•      Depreciation on capital assets.
•     Estimated useful lives and residual value.
•      Amortization on intangible assets.
•     Estimated useful lives.
•      Asset retirement obligations.
•     Expected settlement date, amount and discount rate.
•      Impairment assessments of capital assets, projects under 
development and intangible assets.
•     Future cash flows and discount rate.
Deferred income taxes
•     Timing of reversal of temporary differences, tax rates and current and future taxable income.
Financial instruments and fair value measurements
•    Future cash flows, discount rates, realizable forward Alberta Power Pool prices, volatility, 
credit spreads, and production projections.
Management’s estimates are based on historical experience, trends and various other assumptions that are believed to be 
reasonable under the circumstances. Actual results could materially differ from those estimates.
Internal Controls over Financial Reporting and Disclosure Controls and Procedures
Capstone's CEO and CFO are required by the various provincial securities regulators to certify annually that they have designed, 
or caused to be designed, Capstone's disclosure controls and procedures ("DC&P"), as defined in the Canadian Securities 
Administrators' National Instrument 52-109 ("NI 52-109"), and that they have evaluated the effectiveness of the presence and 
function of these controls and procedures in the applicable period. Disclosure controls are those controls and other procedures 
that are designed to provide reasonable assurance that the relevant information that Capstone is required to disclose is 
recorded, processed and reported within the time frame specified by such securities regulators.
Capstone's management, under the supervision of and with the participation of the CEO and CFO, has designed internal controls 
over financial reporting ("ICFR"), as defined in NI 52-109. The purpose of ICFR is to provide reasonable assurance regarding the 
reliability of Capstone's financial reporting, in accordance with IFRS Accounting Standards, focusing in particular on controls over 
information contained in the audited annual and unaudited interim consolidated financial statements. The internal controls are not 
expected to prevent and detect all misstatements due to error or fraud. Consistent with the prior year, Capstone uses the 2013 
version of Committee of Sponsoring Organizations ("COSO") internal control framework.
The CEO and CFO have concluded that Capstone's DC&P were effective as at December 31, 2024 to ensure that information 
required to be disclosed in reports that Capstone files or submits under Canadian securities legislation is recorded, processed, 
summarized and reported within applicable time periods.
As at December 31, 2024, Capstone's management had assessed the effectiveness of Capstone's internal control over financial 
reporting using the criteria set forth by COSO of the Treadway Commission in Internal Control – Integrated Framework (2013). 
Based on this assessment, management has determined that Capstone's internal control over financial reporting was effective as 
at December 31, 2024.
CAPSTONE INFRASTRUCTURE CORPORATION 
Page 18

MANAGEMENT’S 
RESPONSIBILITY FOR 
FINANCIAL REPORTING
The consolidated financial statements and other financial information contained in this annual report have been prepared by 
management. It is management's responsibility to ensure that sound judgment, appropriate accounting policies and reasonable 
estimates have been used to prepare this information and that the consolidated financial statements are in accordance with 
International Financial Reporting Standards.
Management is also responsible for designing, maintaining and testing a system of internal controls over the financial reporting 
processes. Internal controls have been designed to provide reasonable assurance that the financial records are reliable, 
accurate and form a proper basis for the preparation of the consolidated financial statements. As of December 31, 2024, 
management reviewed and tested the internal controls over financial reporting and concluded that they were effective to provide 
reasonable assurance over the consolidated financial statements.
The Audit Committee of the Board of Directors is responsible for reviewing the consolidated financial statements with 
management and the external auditors and reporting to the Board of Directors. The Audit Committee is responsible for retaining 
the services of the independent auditor and for renewing the auditor's mandate, which is subject to Board of Directors' review 
and shareholders' approval. 
The independent auditor, PricewaterhouseCoopers LLP, is responsible for conducting an examination in accordance with 
Canadian generally accepted auditing standards to express an opinion on whether the consolidated financial statements have 
been prepared in accordance with International Financial Reporting Standards as issued by the International Accounting 
Standards Board (“IFRS Accounting Standards”). The report of PricewaterhouseCoopers LLP, which outlines the scope of its 
examination and its opinion on the consolidated financial statements, appears on the following pages.
                          
                          
David Eva 
Andrew Kennedy
Chief Executive Officer 
Chief Financial Officer
Toronto, Canada
March 5, 2025 
CAPSTONE INFRASTRUCTURE CORPORATION 
Page 19

 
 
 
PricewaterhouseCoopers LLP 
PwC Tower, 18 York Street, Suite 2500, Toronto, Ontario, Canada  M5J 0B2 
T.: +1 416 863 1133, F.: +1 416 365 8215, Fax to mail: ca_toronto_18_york_fax@pwc.com 
 
“PwC” refers to PricewaterhouseCoopers LLP, an Ontario limited liability partnership. 
 
Independent auditor’s report 
To the Shareholders of Capstone Infrastructure Corporation 
Our opinion 
In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the financial position of Capstone 
Infrastructure Corporation and its subsidiaries (together, the Corporation) as at December 31, 2024 and 2023, and its financial performance 
and its cash flows for the years then ended in accordance with International Financial Reporting Standards as issued by the International 
Accounting Standards Board (IFRS Accounting Standards). 
What we have audited 
The Corporation’s consolidated financial statements comprise: 
 
the consolidated statements of financial position as at December 31, 2024 and 2023; 
 
the consolidated statements of changes in shareholders’ equity for the years then ended; 
 
the consolidated statements of income for the years then ended; 
 
the consolidated statements of comprehensive income for the years then ended; 
 
the consolidated statements of cash flows for the years then ended; and 
 
the notes to the consolidated financial statements, comprising material accounting policy information and other explanatory information. 
Basis for opinion 
We conducted our audit in accordance with Canadian generally accepted auditing standards. Our responsibilities under those standards are 
further described in the Auditor’s responsibilities for the audit of the consolidated financial statements section of our report. 
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. 
Independence 
We are independent of the Corporation in accordance with the ethical requirements that are relevant to our audit of the consolidated financial 
statements in Canada. We have fulfilled our other ethical responsibilities in accordance with these requirements. 
Key audit matters 
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial 
statements for the year ended December 31, 2024. These matters were addressed in the context of our audit of the consolidated financial 
statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. 
Key audit matter 
How our audit addressed the key audit matter 
Fair value measurement of Whitecourt Power Limited 
Partnership’s (Whitecourt) embedded derivative 
Refer to note 2 – Summary of Material Accounting Policies and 
note 7 – Financial Instruments to the consolidated financial 
statements. 
The Company has entered into a fuel supply agreement which 
includes power price support and revenue sharing mechanisms 
that reduce Whitecourt’s, a subsidiary of the Company, exposure to 
Our approach to addressing the matter included the following 
procedures, among others:  
 
With the assistance of professionals with specialized skill and 
knowledge in the field of valuation: 
– 
Developed an independent point estimate of the fair 
value of the embedded derivative based on assumptions 
applied by management; and  

 
Key audit matter 
How our audit addressed the key audit matter 
merchant price risk in Alberta. The price support and revenue 
sharing mechanisms are an embedded derivative that is measured 
at fair value.  
The determination of the fair value of the embedded derivative 
requires the use of option pricing models involving significant 
judgment based on management’s estimates and assumptions, 
including the realizable forward Alberta Power Pool prices, 
volatility, credit spreads and production projections. 
We considered this a key audit matter due to the significant 
judgments made by management when determining the fair value 
of the Whitecourt embedded derivative and the high degree of 
complexity in assessing audit evidence related to the estimates and 
assumptions used by management. In addition, the audit effort 
involved the use of professionals with specialized skill and 
knowledge in the field of valuation. 
– 
Developed independent calculations of the credit spread 
and volatility based on external data. 
 
Evaluated the reasonableness of significant assumptions, 
which included the following: 
– 
Compared the realizable forward Alberta Power Pool 
prices to third party reports; and 
– 
Compared production projections to past performance of 
Whitecourt. 
 
Tested the underlying data used in developing the 
independent point estimate. 
 
Compared the independent point estimate to management’s 
estimate to evaluate the reasonableness of management’s fair 
value of the embedded derivative. 
 
Other information 
Management is responsible for the other information. The other information comprises the Management’s Discussion and Analysis and the 
information, other than the consolidated financial statements and our auditor’s report thereon, included in the annual report. 
Our opinion on the consolidated financial statements does not cover the other information and we do not express any form of assurance 
conclusion thereon. 
In connection with our audit of the consolidated financial statements, our responsibility is to read the other information identified above and, in 
doing so, consider whether the other information is materially inconsistent with the consolidated financial statements or our knowledge 
obtained in the audit, or otherwise appears to be materially misstated. 
If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to 
report that fact. We have nothing to report in this regard. 
Responsibilities of management and those charged with governance for the consolidated financial 
statements 
Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with IFRS 
Accounting Standards, and for such internal control as management determines is necessary to enable the preparation of consolidated 
financial statements that are free from material misstatement, whether due to fraud or error. 
In preparing the consolidated financial statements, management is responsible for assessing the Corporation’s ability to continue as a going 
concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management 
either intends to liquidate the Corporation or to cease operations, or has no realistic alternative but to do so. 
Those charged with governance are responsible for overseeing the Corporation’s financial reporting process. 
Auditor’s responsibilities for the audit of the consolidated financial statements 
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material 
misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level 
of assurance, but is not a guarantee that an audit conducted in accordance with Canadian generally accepted auditing standards will always 
detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the 
aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial 
statements. 

 
As part of an audit in accordance with Canadian generally accepted auditing standards, we exercise professional judgment and maintain 
professional skepticism throughout the audit. We also: 
 
Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and 
perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our 
opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may 
involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. 
 
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the 
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Corporation’s internal control. 
 
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures 
made by management. 
 
Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence 
obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Corporation’s ability 
to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report 
to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our 
conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may 
cause the Corporation to cease to continue as a going concern. 
 
Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether 
the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation. 
 
Plan and perform the group audit to obtain sufficient appropriate audit evidence regarding the financial information of the entities or 
business units within the Corporation as a basis for forming an opinion on the consolidated financial statements. We are responsible for 
the direction, supervision and review of the audit work performed for purposes of the group audit. We remain solely responsible for our 
audit opinion. 
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and 
significant audit findings, including any significant deficiencies in internal control that we identify during our audit. 
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding 
independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our 
independence, and where applicable, related safeguards. 
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit 
of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our 
auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine 
that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to 
outweigh the public interest benefits of such communication. 
The engagement partner on the audit resulting in this independent auditor’s report is Philip Hagel. 
 
 
 
 
 
Chartered Professional Accountants, Licensed Public Accountants 
Toronto, Ontario 
March 5, 2025 

CONSOLIDATED
FINANCIAL STATEMENTS
 
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
As at
Notes
Dec 31, 2024
Dec 31, 2023
Current assets
Cash and cash equivalents
3
 
46,742  
63,445 
Restricted cash
3
 
32,094  
26,507 
Accounts receivable
4
 
38,332  
49,646 
Other assets
5
 
5,949  
4,892 
Current portion of derivative contract assets
7
 
3,982  
10,682 
 
127,099  
155,172 
Non-current assets
Loans receivable
6
 
21,791  
21,435 
Derivative contract assets
7
 
23,101  
14,275 
Equity accounted investments
9
 
7,018  
4,121 
Capital assets
10
 
980,802  
947,406 
Projects under development
11
 
380,632  
373,053 
Intangible assets
12
 
110,574  
124,493 
Deferred income tax assets
13
 
5,257  
8,874 
Total assets
 
1,656,274  
1,648,829 
Current liabilities
Accounts payable and other liabilities
14
 
54,189  
61,130 
Current portion of derivative contract liabilities
7
 
1,474  
10,100 
Current portion of lease liabilities
15
 
1,711  
1,209 
Current portion of long-term debt
16
 
91,656  
69,596 
 
149,030  
142,035 
Long-term liabilities
Derivative contract liabilities
7
 
5,219  
11,281 
Deferred income tax liabilities
13
 
80,515  
93,302 
Lease liabilities
15
 
47,689  
45,599 
Long-term debt
16
 
1,000,968  
897,973 
Liability for asset retirement obligation
17
 
15,705  
14,017 
Total liabilities
 
1,299,126  
1,204,207 
Equity attributable to shareholders' of Capstone
 
265,757  
347,766 
Non-controlling interest
19
 
91,391  
96,856 
Total liabilities and shareholders’ equity
 
1,656,274  
1,648,829 
Commitments and contingencies
24
See accompanying notes to these consolidated financial statements
CAPSTONE INFRASTRUCTURE CORPORATION 
Page 23

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY
Equity attributable to shareholders of 
Capstone
Notes
Share
Capital
AOCI (1)
Retained 
Earnings 
(Deficit)
NCI (2)
Total Equity
Balance, December 31, 2022
 
214,290  
—  
95,984  
97,473  
407,747 
Capital contribution (3)
 
70,000  
—  
—  
—  
70,000 
Net income (loss) for the period
 
—  
—  
(29,744)  
552  
(29,192) 
Dividends declared to preferred shareholders of 
Capstone (4)
18
 
—  
—  
(2,764)  
—  
(2,764) 
Dividends declared to NCI 
19
 
—  
—  
—  
(13,326)  
(13,326) 
Net contributions from NCI
19
 
—  
—  
—  
12,157  
12,157 
Balance, December 31, 2023
 
284,290  
—  
63,476  
96,856  
444,622 
Return of Capital (3)
 
(75,000)  
—  
—  
—  
(75,000) 
Other comprehensive income (loss)
 
—  
744  
—  
—  
744 
Net income (loss) for the period
 
—  
—  
(4,896)  
(1,140)  
(6,036) 
Dividends declared to preferred shareholders of 
Capstone (4)
18
 
—  
—  
(2,857)  
—  
(2,857) 
Dividends declared to NCI
19
 
—  
—  
—  
(4,790)  
(4,790) 
Net contributions from NCI
19
 
—  
—  
—  
465  
465 
Balance, December 31, 2024
 
209,290  
744  
55,723  
91,391  
357,148 
(1)
Accumulated other comprehensive income (loss) ("AOCI").
(2)
Non-controlling interest ("NCI"). 
(3)
Includes $75,000 paid as a return of capital to the Class A common shareholder in 2024 (2023 - cash capital contributions of $70,000).
(4)
Dividends declared to preferred shareholders of Capstone include current and deferred income taxes expense of $81 (2023 - recovery of $12).
See accompanying notes to these consolidated financial statements
CAPSTONE INFRASTRUCTURE CORPORATION 
Page 24

CONSOLIDATED STATEMENTS OF INCOME
For the year ended
Notes
Dec 31, 2024
Dec 31, 2023
Revenue
21
 
219,275  
239,015 
Operating expenses
22
 
(70,795)  
(68,530) 
Administrative expenses
22
 
(11,970)  
(11,331) 
Project development costs
22
 
(11,576)  
(11,594) 
Asset impairment charges
11
 
(3,046)  
— 
Equity accounted income (loss)
9
 
(6,015)  
(1,712) 
Interest income
7
 
4,595  
6,889 
Other gains and (losses), net
23
 
12,003  
(42,656) 
Foreign exchange gain (loss)
7
 
562  
(15) 
Earnings before interest expense, taxes, depreciation and amortization
 
133,033  
110,066 
Interest expense
7
 
(49,062)  
(48,752) 
Depreciation of capital assets
10
 
(83,599)  
(84,298) 
Amortization of intangible assets
12
 
(13,930)  
(13,374) 
Earnings before income taxes
 
(13,558)  
(36,358) 
Income tax recovery (expense)
Current
 
(620)  
781 
Deferred
 
8,142  
6,385 
Total income tax recovery (expense)
13
 
7,522  
7,166 
Net income (loss)
 
(6,036)  
(29,192) 
Attributable to:
Shareholders of Capstone
 
(4,896)  
(29,744) 
Non-controlling interest
19
 
(1,140)  
552 
 
(6,036)  
(29,192) 
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
For the year ended
Notes
Dec 31, 2024
Dec 31, 2023
Cumulative differences on translation of foreign operations
2
 
744  
— 
Other comprehensive income (loss)
 
744  
— 
Net income (loss) 
 
(6,036)  
(29,192) 
Total comprehensive income (loss)
 
(5,292)  
(29,192) 
Comprehensive income (loss) attributable to:
Shareholders of Capstone
 
(4,152)  
(29,744) 
Non-controlling interest
19
 
(1,140)  
552 
 
(5,292)  
(29,192) 
See accompanying notes to these consolidated financial statements
CAPSTONE INFRASTRUCTURE CORPORATION 
Page 25

CONSOLIDATED STATEMENTS OF CASH FLOWS
For the year ended
Notes
Dec 31, 2024
Dec 31, 2023
Operating activities:
Net income (loss)
 
(6,036)  
(29,192) 
Deferred income tax expense
13
 
(8,142)  
(6,385) 
Depreciation and amortization
 
97,529  
97,672 
Asset impairment charges
11
 
3,046  
— 
Non-cash other (gains) and losses, net
 
(10,867)  
38,796 
Transaction costs on debt
 
(17,027)  
(2,393) 
Amortization of deferred financing costs and non-cash financing costs
 
5,097  
3,540 
Equity accounted (income) loss
 
6,015  
1,712 
Change in non-cash working capital and foreign exchange
 
3,312  
7,908 
Total cash flows from operating activities
 
72,927  
111,658 
Investing activities:
Investment in projects under development
11
 
(119,597)  
(293,469) 
Investment in capital assets
10
 
(32,411)  
(31,787) 
Contributions to equity accounted investments
9
 
(8,913)  
(1,488) 
Decrease (increase) in restricted cash
 
(5,587)  
2,108 
Proceeds from disposal of capital assets and projects under development
 
6,007  
— 
Distribution from equity accounted investments
9
 
—  
2,147 
Total cash flows used in investing activities
 
(160,501)  
(322,489) 
Financing activities:
Proceeds from issuance of long-term debt
16
 
311,084  
347,488 
Proceeds from government funding
 
20,740  
48,384 
Repayment of long-term debt
 
(174,472)  
(299,331) 
Return of capital to Class A common shareholder
 
(75,000)  
— 
Dividends paid to non-controlling interests
19
 
(4,790)  
(11,387) 
Dividends paid to preferred shareholders
 
(2,776)  
(2,776) 
Settlement of hedging instruments
 
(1,969)  
— 
Lease principal payments
 
(1,210)  
(1,553) 
Advances on loans receivable to partner
6
 
(736)  
(1,446) 
Proceeds from Class A common shareholder capital contribution
 
—  
70,000 
Total cash flows from financing activities
 
70,871  
149,379 
Increase (decrease) in cash and cash equivalents
 
(16,703)  
(61,452) 
Cash and cash equivalents, beginning of year
 
63,445  
124,897 
Cash and cash equivalents, end of year
 
46,742  
63,445 
Supplemental information:
Interest paid
 
45,885  
47,919 
Taxes paid
 
1,949  
993 
See accompanying notes to these consolidated financial statements
CAPSTONE INFRASTRUCTURE CORPORATION 
Page 26

NOTES TO THE CONSOLIDATED 
FINANCIAL STATEMENTS
 
Note
Description
Page
Note
Description
Page
1
Corporate Information
27
14
Accounts Payable and Other Liabilities
44
2
Summary of Material Accounting Policies
27
15
Lease Liabilities
44
3
Cash and Cash Equivalents and Restricted Cash
34
16
Long-term Debt
45
4
Accounts Receivable
35
17
Liability for Asset Retirement Obligation
48
5
Other Assets
35
18
Shareholders' Equity
49
6
Loans Receivable
35
19
Non-Controlling Interests
49
7
Financial Instruments
35
20
Share-based Compensation
51
8
Financial Risk Management
37
21
Revenue by Nature
52
9
Equity Accounted Investments
40
22
Expenses by Nature
52
10
Capital Assets
41
23
Other Gains and Losses
52
11
Projects Under Development
42
24
Commitments and Contingencies
53
12
Intangible Assets
42
25
Related Party Transactions
53
13
Income Taxes
43
26
Segmented Information
54
NOTE 1.  CORPORATE INFORMATION
Capstone is incorporated in British Columbia, domiciled in Canada, and located at 155 Wellington Street West, Suite 2930, 
Toronto, Ontario, M5V 3H1. All of Capstone's Class A common shares are owned by Irving Infrastructure Corp. ("Irving"), a 
subsidiary of iCON Infrastructure Partners III, LP ("iCON III"), the ultimate parent and a fund advised by London, UK-based iCON 
Infrastructure LLP ("iCON"). Capstone Infrastructure Corporation and its subsidiaries' (together, the "Corporation" or "Capstone") 
mission is to drive the energy transition forward through creative thinking, strong partnerships, and a commitment to quality and 
integrity in how it does business. As at December 31, 2024, Capstone develops, owns, and operates clean and renewable 
energy projects across North America with an approximate net installed capacity of 885 megawatts across 35 facilities in 
Canada, including wind, solar, biomass, hydro, and natural gas power plants.
All amounts are in Canadian thousands of dollars or thousands of share amounts unless otherwise indicated.
NOTE 2.  SUMMARY OF MATERIAL ACCOUNTING POLICIES 
The following material accounting policies are used in the preparation of these consolidated financial statements. 
Basis of Preparation
Statement of compliance
The consolidated financial statements of Capstone have been prepared in accordance with International Financial Reporting 
Standards as issued by the International Accounting Standards Board ("IFRS Accounting Standards").
The consolidated financial statements were authorized for issue by the Board of Directors on March 5, 2025.
Basis of measurement
The consolidated financial statements have been prepared under the historical cost basis, except for the revaluation of certain 
financial instruments, which are measured at fair value as explained in the accounting policies set out below and on a going 
concern basis of accounting. Historical cost is generally based on the fair value of the consideration given in exchange for 
assets.
Consolidation
These consolidated financial statements are primarily made up of the assets, liabilities, and results of operations of the 
Corporation's subsidiaries. Subsidiaries are all entities over which Capstone has control. Capstone controls an entity when it is 
exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through 
its power over the entity.
CAPSTONE INFRASTRUCTURE CORPORATION 
Page 27

The following table lists the significant subsidiaries of the Corporation which are accounted for on a consolidated basis:
Principal place 
of business and 
country of 
incorporation
Ownership at 
December 31,
Name of entity
2024
2023
Principal activity
Buffalo Atlee 1 Wind LP, Buffalo Atlee 2 Wind LP, Buffalo Atlee 3 Wind LP, 
Buffalo Atlee 4 Wind LP (collectively, "Buffalo Atlee")
Canada
75%
75%
Power generation
Capstone Power Corp. ("CPC")
Canada
100%
100%
Power
holding company
Cardinal Power of Canada, L.P. ("Cardinal")
Canada
100%
100%
Power generation
Chi-Wiikwedong Holdings LP
Canada
100%
100%
Power 
holding company
Chi-Wiikwedong LP ("Goulais")
Canada
51%
51%
Power generation
Claresholm Solar LP ("Claresholm")
Canada
51%
51%
Power generation
Erie Shores Wind Farm Limited Partnership ("Erie Shores")
Canada
100%
100%
Power generation
Glace Bay Lingan Wind Power Ltd. ("Glace Bay") 
Canada
100%
100%
Power generation
Glen Dhu Wind Energy LP ("Glen Dhu")
Canada
100%
100%
Power generation
Grey Highlands Clean Energy Development LP ("Grey Highlands Clean")
Canada
100%
100%
Power generation
Helios Solar Star A-1 Partnership ("Amherstburg")
Canada
100%
100%
Power generation
Kneehill Solar LP ("Kneehill")
Canada
75%
75%
Power generation
Michichi Solar LP ("Michichi")
Canada
75%
75%
Power generation
MPT Hydro LP ("Hydro")
Canada
100%
100%
Power generation
Parc Éolien Saint-Philémon S.E.C. ("Saint-Philémon")
Canada
51%
51%
Power generation
Riverhurst Wind Farm LP ("Riverhurst")
Canada
100%
100%
Power generation
Sky Generation L.P. ("SkyGen")
Canada
100%
100%
Power generation
SLGR Wind LP ("SLGR")
Canada
51%
51%
Power generation
SP Amherst Wind Power LP ("Amherst")
Canada
51%
51%
Power generation
SWNS Wind LP ("SWNS")
Canada
100%
100%
Power generation
Watford Wind LP ("Watford")
Canada
100%
100%
Power generation
Whitecourt Power Limited Partnership ("Whitecourt") 
Canada
100%
100%
Power generation
Wild Rose 2 Wind Inc. ("Wild Rose 2") (1)
Canada
100%
100%
Development
Capstone Power United States, LLC
United States
100%
100%
Development  
holding company
Obra Maestra Renewables, LLC ("Obra Maestra")
United States
50%
50%
Development  
holding company
(1)
On July 29, 2024, Wild Rose 2 Wind LP was reorganized to Wild Rose 2 Wind Inc. All assets and liabilities of the LP were transferred at their book value to Wild 
Rose 2 Wind Inc.
The Corporation accounts for its controlled investments using the consolidation method of accounting from the date that control 
is obtained and deconsolidates from the date that control ceases. All intercompany balances and transactions have been 
eliminated on consolidation.
Non-controlling interests represent equity interests in subsidiaries owned by outside parties. The share of net assets of 
subsidiaries attributable to non-controlling interests is presented as a component of equity. Their share of net income and 
comprehensive income is recognized directly in equity. Changes in the Corporation's interest in subsidiaries that do not result in 
a loss of control are accounted for as equity transactions.
Equity Accounted Investments
Companies in which the Corporation has the ability to exercise significant influence, but not control, or has the ability to exercise 
joint control over financial and operating policy decisions, are accounted for using the equity method. Significant influence is 
presumed to exist when the Corporation holds between 20% and 50% of the voting power of another entity. 
Business Combinations
The acquisitions of businesses are accounted for using the acquisition method. The consideration for each acquisition is 
measured at the aggregate of the fair values, at the date of exchange, of assets transferred, liabilities incurred or assumed, and 
equity instruments issued by the Corporation in exchange for control of the acquired business. The acquired identifiable assets, 
liabilities and contingent liabilities that meet the conditions for recognition under IFRS 3, Business Combinations ("IFRS 3") are 
recognized at their fair value at the acquisition date.
The Corporation recognizes any non-controlling interest in the acquiree at the non-controlling interest's proportionate share of the 
recognized amounts of acquiree's identifiable net assets. Acquisition-related costs are expensed as incurred.
CAPSTONE INFRASTRUCTURE CORPORATION 
Page 28

Foreign Currency Translation
Functional and presentation currency
Amounts included in the financial statements of each consolidated entity within the Corporation are measured using the currency 
of the primary economic environment in which the entity operates (the “functional currency”). The consolidated financial 
statements are presented in Canadian dollars (the “presentation currency”), which is Capstone's functional currency. The 
exchange rates used in the translation to the presentation currency are as follows: 
USD ($)
As at and for the year ended
Average
Spot
Dec 31, 2024
1.37
1.44
Dec 31, 2023
1.35
1.32
The financial statements of entities that have a functional currency different from that of the Corporation are translated into 
Canadian dollars as follows: assets and liabilities – at closing rate at the date of the statement of financial position, and income 
and expenses – at the average rate of the period (as this is considered a reasonable approximation of the actual rates prevailing 
at the transaction dates). Resulting changes are recognized in the statement of income except for changes in the net investment 
which is recognized in other comprehensive income as cumulative translation adjustments.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of 
transactions. Foreign exchange gains and losses resulting from the settlement of foreign currency transactions and from the 
translation at exchange rates of monetary assets and liabilities denominated in currencies other than an entity's functional 
currency are recognized in the consolidated statement of income in "foreign exchange gain (loss)".
Cash and Cash Equivalents and Restricted Cash
Cash and cash equivalents are composed of highly liquid investments with original maturities of 90 days or less at the date of 
acquisition and are recorded at fair value. Restricted cash comprises amounts primarily restricted by credit agreements for 
specific uses including amounts funded against future maintenance, debt service, and construction costs at certain subsidiaries.
Loans Receivable 
The Corporation has financial assets that consist of interest-bearing and non interest-bearing loans receivable. Loans are carried 
at either amortized cost or fair value through profit or loss, according to the conditions met under IFRS 9.
Capitalized Interest 
The Corporation capitalizes interest and borrowing costs when activities that are necessary to prepare the asset for its intended 
use are in progress, and expenditures for the asset have been used or borrowed to fund the construction or development. The 
capitalization of interest and borrowing costs ceases when the asset is ready for its intended use. Capitalized interest is included 
in the statement of financial position as part of capital assets and projects under development.
Grants and Contributions 
Capstone follows Accounting for Government Grants and disclosure of Government Assistance (IAS 20) with respect to certain 
power contracts with provincial jurisdictions. Grants are recognized at their fair value when there is reasonable assurance that 
the grant will be received and all attaching conditions will be complied with. Grants and contributions related to charges to net 
income are netted against such expenditures as received.
Capital Assets
Capital assets are stated at cost less accumulated depreciation and accumulated impairment losses. Cost includes expenditures 
that are directly attributable to the acquisition of the asset, excluding variable payments contingent on future events, and assets 
related to the provision for the future retirement obligations. Subsequent costs are included in the asset's carrying amount or 
recognized as a separate asset only when it is probable that future economic benefits associated with the item will flow to the 
Corporation and the cost can be measured reliably. The carrying value of an asset is derecognized when retired or replaced. 
Right-of-use ("ROU") assets are primarily land leases, measured at cost comprising of the amount of the initial measurement of 
the lease liability, any lease payments made at or before the commencement date and any initial direct costs.
Major maintenance costs are capitalized in the carrying value of the assets as incurred, and depreciated over their useful lives. 
Other repairs and maintenance costs are charged to the consolidated statement of income during the period incurred.
Gains or losses on disposals are determined by comparing the proceeds of sale with the carrying amount and are recognized 
within the consolidated statement of income.
The Corporation allocates the amount initially recognized in respect of an item of capital assets to its significant parts and 
depreciates separately each such part. Residual values, methods of amortization, and useful lives of the assets are reviewed 
annually and adjusted if appropriate. The major categories of capital assets are depreciated using the straight-line method as 
follows:
CAPSTONE INFRASTRUCTURE CORPORATION 
Page 29

Power
Equipment and vehicles:
   Computer hardware
3 to 5 years
   Communications, meters and telemetry equipment
3 to 25 years
   Vehicles
3 to 10 years
Property and plant:
   Operational structures
3 to 40 years
   Operational properties
4 to 40 years
ROU assets
5 to 45 years
Leases
ROU assets and equal lease liabilities arising from a lease are initially measured on a present value basis, using a single 
discount rate for a portfolio of leases with reasonably similar characteristics.
Leased (ROU) Assets
At the inception of a contract, the Corporation assesses whether the contract is, or contains, a lease that conveys to the 
Corporation the right to control the use of an underlying asset in return for payment. Assets financed through leasing agreements 
that meet the criteria are capitalized as an ROU asset on the date on which they are available for use and depreciated over the 
shorter of their estimated useful lives and the lease term. The capital element of the lease rental is deducted from the obligation 
to the lessor as paid. The interest element of lease rentals and the depreciation of the relevant assets are charged to the 
consolidated statement of income. 
Lease Liabilities
Lease liabilities are measured at the net present value of fixed payments, variable lease payments that are based on an index or 
a rate, amounts expected to be payable by the lessee under residual value guarantees, the exercise price of a purchase option if 
the lessee is virtually certain to exercise that option, and payments of penalties for terminating the lease if the lease term reflects 
the lessee exercising that option. Capital lease payments are discounted using Capstone’s incremental borrowing rate when the 
rate implicit in the lease is not readily determinable. The variable portion of lease payments not included in the lease liability will 
remain in operating expenses in the statement of income.
Projects Under Development ("PUD")
Capitalized costs related to an asset under development include all eligible expenditures incurred in connection with the 
development and construction of the power generating asset until it is available for its intended use. The Corporation capitalizes 
all direct project costs related to the development of the Corporation's electricity generation or storage projects. Capitalization 
commences when the costs are measurable and it is probable the benefits will flow to Capstone.
Development cost capitalization criteria include the following and are dependent on the type of clearly identified project:
•
The technical feasibility has been established or interconnection permit secured;
•
Management has indicated its intention to construct, operate, and maintain the project or land option(s) established; 
•
An offtake market is identified or a power purchase agreement ("PPA") awarded; and 
•
Adequate resources exist or are expected to be available to complete the project.
Upon a project becoming commercially operational, the capitalized costs, including capitalized borrowing costs, if any, are 
transferred to capital assets and are amortized (on a straight-line basis or using the effective interest rate method) over the 
estimated useful lives of the various components.
The recovery of project development costs is dependent upon successful commercialization of project sites for the profitable sale 
of electricity.
Intangible Assets
Identifiable intangible assets
The Corporation separately identifies acquired intangible assets, including computer software, electricity supply contracts, gas 
purchase contracts, water rights and licenses, and records each at their fair value at the date of acquisition. Intangible assets 
acquired separately are measured on initial recognition at cost. The initial value is amortized over their estimated useful lives 
using the straight-line method as follows:
Power
Computer software
3 to 7 years
Electricity supply, gas purchase and other contracts
9 to 25 years
Water rights
35 years
The expected useful lives of intangible assets are reviewed on an annual basis and adjusted prospectively.
CAPSTONE INFRASTRUCTURE CORPORATION 
Page 30

Impairment of Non-financial Assets
The capital assets, projects under development and intangible assets with finite lives are tested for impairment when events or 
changes in circumstances indicate that the carrying value may not be recoverable. For the purpose of measuring recoverable 
amounts, assets are grouped at the lowest levels for which there are separately identifiable cash inflows. The recoverable 
amount is the higher of an asset's fair value less costs to sell the assets and the value in use (being the present value of the 
expected future cash flows of the relevant assets or Cash Generating Unit ("CGU")). An impairment loss is recognized for the 
amount by which the asset's carrying value exceeds its recoverable amount. The Corporation evaluates impairment losses, for 
potential reversals when events or circumstances warrant such consideration.
Provisions
Provisions are recognized when the Corporation has a present legal or constructive obligation as a result of past events, it is 
more likely than not that an outflow of resources will be required to settle the obligation, and the amount can be reliably 
estimated. Provisions are measured using management's best estimate of the expenditure required to settle the obligation at the 
end of the reporting period, and are discounted to present value where the effect is material. The Corporation performs 
evaluations to identify onerous contracts and, where applicable, records provisions for such contracts.
Asset Retirement Obligations
The Corporation recognizes a provision for the future retirement obligations associated with its operating plants. These 
obligations are initially measured at the present value, which is the discounted future cost of the liability. A reassessment of the 
expected costs associated with these liabilities is performed annually with changes in the estimates of timing or amount of cash 
flows added or deducted from the cost of the related asset. The liability grows until the date of expected settlement of the 
retirement obligations.
Share Capital
Common and Class A shares are classified as equity. Capital contributions and returns of capital with the Class A common 
shareholder are recognized as an increase and reduction in equity, respectively. Incremental costs directly attributable to the 
issuance of shares are recognized as a reduction in equity.
Preferred Shares
The Corporation classifies its series A preferred shares as equity for reporting purposes given that the preferred shares may be 
converted into a fixed number of the Corporation's own equity instruments and there is no settlement required at a future date. 
Incremental costs directly attributable to the issuance of shares are recognized as a reduction in equity.
Dividends
Dividends on series A preferred shares are recognized in the Corporation's consolidated financial statements in the period in 
which the dividends are declared by the Board of Directors of the Corporation.
Revenue Recognition
Revenue from Contracts with Customers
Revenue derived from the sale of electricity and steam is recognized upon delivery to the customer and priced in accordance 
with the provisions of the applicable electricity and steam sales agreements. Revenue derived from the sale of emissions offset 
credits is recognized upon execution of a contract for sale. In addition, capacity and availability payments to Cardinal are 
recognized in accordance with the non-utility generator contract. Certain power purchase arrangements provide for an electricity 
rate adjustment, which is updated periodically both for the current and prior periods. Capstone accounts for such adjustments 
when a reliable estimate of the adjustment can be determined. Whitecourt, Claresholm, Kneehill, Buffalo Atlee 1, and Buffalo 
Atlee 3 derive revenue from the generation and sale of electricity at market rates and the sale of emissions offset credits. 
Revenue from electricity sales to the Alberta Power Pool are recorded at the hourly weighted average power pool rate, and 
revenue from the sale of emissions offset credits is recorded at the contracted price.
The Corporation enters certain power purchase agreements ("PPA") from time to time whereby the Corporation receives a fixed 
price per MWh of electricity and the associated emissions offset credits generated and pays the prevailing Alberta Power Pool 
price per MWh. Such PPAs may include embedded derivatives for the electricity component according to conditions met under 
IFRS 9. The PPA embedded derivatives are classified as fair value through profit and loss ("FVTPL").
When projects earn revenue during the pre-commissioning stage, the corporation recognizes proceeds from electricity sales 
generated by an asset before its intended use in income.
The customer invoices and provides payments on a systematic basis based on fixed billing cycles. There are no significant 
financing components inherent in Capstone’s contracts with customers. Capstone does not make significant judgments that 
affect the determination of the amount and timing of revenue from contracts with customers.
Interest Income Recognition
Interest income is earned with the passage of time and is recorded on an accrual basis.
CAPSTONE INFRASTRUCTURE CORPORATION 
Page 31

Expense Recognition
Costs related to the purchases of fuel are recorded upon delivery. All other costs are recorded as incurred.
Project development costs are recorded as incurred. These costs include the activities to pursue and develop greenfield projects 
and acquisition-related business development expenses incurred at both the power segment and corporate.
Interest expense is incurred with the passage of time and is recorded on an accrual basis.
Long-term Incentive Plans
The Corporation accounts for grants under its share appreciation rights ("SAR") plan in accordance with IFRS 2 Share-Based 
Payments.
Income Taxes
Current and deferred income taxes are recognized in the consolidated statement of income except to the extent that they relate 
to items recognized directly in equity or in other comprehensive income, in which case the income tax is also recognized directly 
in equity or in other comprehensive income.
Current income tax is the amount recoverable or expensed based on the current year's taxable income using tax rates enacted, 
or substantively enacted, at the reporting period, and any adjustments to income tax payable or recoveries in respect of previous 
years.
The Corporation follows the liability method of accounting for deferred income tax whereby deferred income tax is recognized in 
respect of temporary differences arising between the tax bases of assets and liabilities and their carrying values in the 
consolidated financial statements. Deferred income tax assets and liabilities are determined using income tax rates that are both 
expected to apply when the deferred income tax asset or liability will be settled and that have been enacted or substantively 
enacted as at the date of the consolidated statement of financial position. Deferred income tax assets are recognized to the 
extent that it is probable that the asset can be recovered. Deferred income tax assets and liabilities are presented as non-
current.
Comprehensive Income
Other comprehensive income ("OCI") represents changes in shareholders' equity during a period arising from transactions and 
other events, including unrealized gains and losses on translation of the net investment in foreign operations, and, when 
Capstone has designated cash flow hedges, the effective portion of the change in fair value less any amounts reclassified to 
interest and other expenses, net, in the period the underlying hedged item is also recorded in interest expense, net. Accumulated 
other comprehensive income ("AOCI") is included as a component in the consolidated statement of shareholders' equity.
Financial Instruments
Financial assets and financial liabilities are recognized on the consolidated statement of financial position when the Corporation 
becomes a party to the contractual provisions of the financial instrument. 
Classification and Measurement
Financial instruments are required to be measured at fair value on initial recognition plus transaction costs in the case of financial 
instruments measured at amortized cost. Transaction costs that are directly attributable to the acquisition or issue of financial 
instruments classified as fair value through profit and loss ("FVTPL") are expensed as incurred. Measurement in subsequent 
periods depends on the classification of the financial instrument.
The Corporation has designated each of its significant categories of financial instruments outstanding as follows:
IFRS 9 Classification
Significant Categories
Measurement
Amortized cost assets
•   Cash and cash equivalents
•   Restricted cash
•   Accounts receivable
•   Loans receivable at amortized cost
•   At amortized cost using the effective interest method
Financial assets and 
liabilities at fair value 
through profit and loss
•   Derivative contract assets
•   Derivative contract liabilities
•   At fair value with changes in fair value recognized in the 
consolidated statement of income
Other liabilities
•   Accounts payable and other liabilities
•   Long-term debt
•   At amortized cost using the effective interest method
The classification of financial assets depends on Capstone’s business objectives for managing the assets and whether 
contractual terms of the cash flows are considered solely payments of principal and interest. For assets measured at FVTPL, 
gains and losses will be recorded in the statement of income as incurred.
CAPSTONE INFRASTRUCTURE CORPORATION 
Page 32

The Corporation determines the fair value of its financial instruments based on the following hierarchy:
Level 1 – Unadjusted quoted prices in active markets for identical assets or liabilities;
Level 2 – Inputs other than quoted prices that are observable for the asset or liability either directly or indirectly; and
Level 3 – Inputs that are not based on observable market data.
Derivative Financial Instruments
The Corporation's derivatives are carried at fair value and are reported as assets when they have a positive fair value and as 
liabilities when they have a negative fair value. The Corporation's derivatives typically include embedded derivatives related to 
fuel supply and PPA contracts, interest rate swaps, and foreign currency contracts.
Changes in the fair values of derivative financial instruments are reported in the consolidated statement of income, except for 
cash flow hedges that meet the conditions for hedge accounting. Historically, Capstone has designated its foreign currency 
contracts as hedges of foreign exchange risk associated with the cash flows of highly probable forecasted capital expenditure 
transactions. The portion of the gain or loss on the hedging instruments that are determined to be an effective hedge are 
recognized directly in other comprehensive income, and the ineffective portion in the consolidated statement of income. Gains or 
losses recognized in other comprehensive income are subsequently recognized in the statement of income in the same period in 
which the hedged underlying transaction or firm commitment is recognized in the statement of income.
In order to qualify for hedge accounting, the Corporation is required to document in advance the relationship between the item 
being hedged and the hedging instrument. The Corporation is also required to document and demonstrate an assessment of the 
relationship between the hedged item and the hedging instrument, which shows that the hedge will be highly effective on an 
ongoing basis. This effectiveness testing is performed at the end of each reporting period to ensure that the hedge remains 
highly effective.
Derivatives embedded in other financial instruments or contracts are separated from their host contracts and accounted for at fair 
value when their economic characteristics and risks are not closely related to those of the host contract.
Impairment of Financial Assets
For financial assets measured at amortized cost, Capstone applies the simplified expected credit loss ("ECL") approach as 
permitted by IFRS 9. ECLs are estimated based on historical information, third-party accreditations such as credit ratings, and 
forward looking information regarding historical customer default rates. Capstone does not expect this to affect any measurement 
of financial assets and liabilities as its customer base is predominantly investment grade counterparties.
If impairment exists on the financial asset, the Corporation recognizes an impairment loss in the consolidated statement of 
income. The loss is measured as the difference between the carrying and the present value of the expected future cash flows. 
Impairment losses on financial assets carried at amortized cost are reversed in subsequent periods if the amount of the loss 
decreases and the decrease can be related objectively to an event occurring after the impairment was recognized.
Impairment of cash and cash equivalents and restricted cash are evaluated by reference to the credit quality of the underlying 
financial institution. 
Segment Reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-
maker. The chief operating decision-maker is responsible for allocating resources and assessing performance of the operating 
segments.
Earnings Before Interest Expense, Taxes, Depreciation and Amortization ("EBITDA")
EBITDA is a supplemental GAAP performance measure defined as earnings (loss) before financing costs, income tax expense, 
depreciation and amortization. EBITDA includes earnings (loss) related to the non-controlling interest ("NCI"), equity accounted 
investments, interest income, other gains and losses (net), asset impairment charges, and foreign exchange gains and losses. 
EBITDA represents Capstone’s capacity to generate income from operations before taking into account management’s financing 
decisions and costs of consuming tangible capital assets and intangible assets, which vary according to their age, technology, 
and management’s estimate of their useful life. EBITDA is presented on the consolidated statement of income.
Significant Changes in Accounting Standards
Capstone's accounting policies are consistent with those disclosed in the notes to the December 31, 2023 consolidated financial 
statements, except for the narrow-scope amendments to IAS 1. The IAS 1 amendments clarify how liabilities are disclosed and 
classified based on the conditions with which an entity must comply within twelve months after the reporting period. Capstone 
adopted the amendments as required for annual reporting periods beginning on or after January 1, 2024, in note 16b. This 
change did not have a material impact on the Corporation.
CAPSTONE INFRASTRUCTURE CORPORATION 
Page 33

Future Accounting Changes
The International Accounting Standards Board ("IASB") has not issued any significant accounting changes that impact the 
Corporation. The IASB issued IFRS 18, Presentation and Disclosure in Financial Statements, which replaces IAS 1, Presentation 
of Financial Statements, to enhance the reporting of financial performance while retaining many of its requirements. This new 
standard will be effective for annual reporting periods starting on or after January 1, 2027, with earlier adoption permitted. 
Capstone is evaluating the impact that the adoption will have on disclosure in the consolidated financial statements.
The IASB issued amendments to IFRS 9 Financial Instruments and IFRS 7 Financial Instruments: Disclosures, to enhance the 
accounting for contracts referencing nature-dependent electricity, such as those involving renewable energy sources. These 
amendments aim to provide clearer guidance on the 'own-use' exemption for net-purchasers of energy and the application of 
hedge accounting for such contracts. Key aspects of the amendments include clarifying the application of the 'own-use' 
requirements, modifying and increasing flexibility in the effectiveness requirements for qualifying hedges, and adding new 
disclosure requirements to enable investors to understand the effect of these contracts on a company’s financial performance 
and cash flows. The amendments will be effective for annual reporting periods starting on or after January 1, 2026, with earlier 
application permitted. Capstone is evaluating the impact that the adoption will have to the consolidated financial statements.
Capstone continues to monitor changes to IFRS Accounting Standards and has implemented applicable IASB changes to 
standards, new interpretations and annual improvements.
Critical Accounting Estimates and Judgments
The Corporation makes estimates and assumptions concerning the future that will, by definition, seldom equal actual results. The 
following are the estimates and judgments applied by management that most significantly affect the Corporation's financial 
statements. These estimates and judgments have a risk of causing a material adjustment to the carrying values of financial 
assets and financial liabilities within the next financial year.
Capital assets, projects under development and 
intangible assets – carrying values
Fair value estimates are required in the 
determination of the net assets acquired in a 
business combination and in the impairment 
assessment for our capital assets and the 
assignment of amounts to the asset retirement 
obligations, as well as assessing capitalization 
criteria for project development costs.
•   Estimates are based on assumptions that are sensitive to change, 
which may have a significant impact on the valuations performed.
•   Impairment reviews of the carrying value of capital and other long-
lived assets along with the asset retirement obligations require 
management to estimate fair value based on future cash flows, 
discount rates and business performance.
•   Initial fair value of net assets
•   Estimated useful lives and residual 
value
•   Expected settlement date, amount 
and discount rate
•   Future cash flows and discount 
rate
Deferred income taxes
Estimates in the determination of deferred income 
taxes affect asset and liability balances.
•   The determination of the deferred income tax balances of the 
Corporation requires management to make estimates of the reversal 
of existing temporary differences between the accounting and tax 
bases of assets and liabilities in future periods.
•   Timing of reversal of temporary 
differences
•   Tax rates
•   Current and future taxable income
Financial instrument fair value measurements
When observable prices are not available, fair 
values are determined by using valuation 
techniques that refer to observable market data. 
This is specifically related to Capstone's financial 
instruments.
•   Management's valuation techniques include comparisons with similar 
instruments where market observable prices exist, discounted cash 
flow analysis, option pricing models and other valuation techniques 
commonly used by market participants. 
•   For embedded derivatives, fair values are determined from valuation 
techniques using non-observable market data or transaction 
processes. 
•   A number of factors such as bid-offer spread, credit profile and model 
uncertainty are taken into account, as appropriate.
•   Estimates of realizable forward 
Alberta Power Pool prices, 
discount rates, volatility, credit 
spreads and production 
projections
Area of Significance
Critical Estimate
Critical Judgments & Key 
Assumptions
NOTE 3.  CASH AND CASH EQUIVALENTS AND RESTRICTED CASH
Dec 31, 2024
Dec 31, 2023
Debt service and maintenance reserves
 
23,200  
21,806 
Construction holdbacks
 
—  
1,226 
Construction escrow
 
5,589  
— 
Other reserves
 
3,305  
3,475 
Restricted cash
 
32,094  
26,507 
Unrestricted cash and cash equivalents
 
46,742  
63,445 
 
78,836  
89,952 
Restricted cash is primarily cash that is held by the Corporation's subsidiaries in support of segregated bank accounts to support 
debt service reserves, operating and maintenance reserves in support of specific long-term debt and/or proceeds from 
construction facilities used for specific project costs. Capstone has also provided letters of credit to back other reserve 
requirements (refer to note 16), and the Class A common shareholder provided letters of credit issued to the benefit of Capstone 
(refer to note 25).
CAPSTONE INFRASTRUCTURE CORPORATION 
Page 34

NOTE 4.  ACCOUNTS RECEIVABLE
Dec 31, 2024
Dec 31, 2023
Power (1)
 
38,321  
49,562 
Corporate 
 
11  
84 
 
38,332  
49,646 
(1)
Power accounts receivable balance includes government funding receivable of $8,879 (2023 - $13,295) held back subject to conditions.
For both periods presented, accounts receivable did not require a provision for impairment. Substantially all of the accounts 
receivable are with government authorities or investment grade counterparties and none are past due. Refer to note 8b and 8c 
for further detail of credit risk and economic dependence.
NOTE 5.  OTHER ASSETS
Dec 31, 2024
Dec 31, 2023
Prepaid expenses
 
3,496  
2,605 
Inventory of spare parts and consumable supplies, net (1)
 
2,242  
2,076 
Other
 
211  
211 
 
5,949  
4,892 
(1)
No inventory obsolescence provision is required as at December 31, 2024 (2023 - nil).
The cost of inventories recognized in operating expenses for the year ended December 31, 2024 was $1,100 (2023 - $744).
NOTE 6.  LOANS RECEIVABLE
Dec 31, 2024
Dec 31, 2023
Loans to partners (1)
 
21,791  
21,435 
(1)
Capstone's demand loans to partners, presented net of amortization. This loan receivable is recorded at amortized cost. 
NOTE 7.  FINANCIAL INSTRUMENTS
Financial instruments consist of amortized cost assets, other liabilities and financial instruments at fair value through profit and 
loss.
Amortized Cost Assets
Cash and cash equivalents, 
restricted cash
Balances are invested in financial instruments of highly rated financial institutions and government securities with original 
maturities of 90 days or less. As at December 31, 2024, the carrying values of cash and cash equivalents and restricted 
cash are considered to approximate their fair values due to their short-term nature.
Accounts receivable
Trade receivables with carrying values that approximate their fair values.
Loans receivable at amortized cost
According to the conditions met under IFRS 9, loans carried at amortized cost are measured using the effective interest rate 
method. The fair value of the Corporation's loans receivable may differ from the carrying value due to changes in interest 
rates and the underlying risk associated with the debtor. 
Other Liabilities
Accounts payable and other 
liabilities
Short-term liabilities with carrying values that approximate their fair values. 
Long-term debt
Balances are recorded at amortized cost using the effective interest rate method. The fair value of the Corporation's long-
term debt is determined using level 2 inputs as follows:
•      Floating rate debt approximates its carrying value.
•      Fixed-rate debt is determined through the use of a discounted cash flow analysis using relevant risk-free bond rates 
plus an estimated margin.
Financial Instruments at Fair Value through Profit and Loss ("FVTPL")
Embedded derivatives
Fuel Supply embedded derivative
Whitecourt has a fuel supply agreement for 15 years from inception that includes power price support and revenue sharing 
mechanisms that reduces Whitecourt's exposure to merchant price risk in Alberta.
The price support and revenue sharing mechanisms comprise an embedded derivative that is measured at fair value and results 
in an asset during periods when the projected merchant power price is forecast to be lower than the price support and a liability 
during periods when the merchant power price is forecast to be higher.
Virtual Power Purchase Agreements ("VPPA") embedded derivatives
Some of the Corporation's Alberta facilities have VPPAs to reduce their exposure to merchant price risk. Under the contracts, the 
facilities receive a fixed price per MWh from the counterparties for the electricity and the associated emissions offset credits 
CAPSTONE INFRASTRUCTURE CORPORATION 
Page 35

generated. In return the respective facilities pays the prevailing Alberta Power Pool price per MWh. The VPPA agreements 
comprise embedded derivatives that are measured at fair value and result in either an asset during periods when the projected 
Alberta power price is forecasted to be lower than the contracted price, or a liability during periods when the Alberta power pool 
price is forecasted to be higher. 
During 2024, there were four VPPA contracts at the Corporation's Alberta facilities, which range from 15-20 years from COD, and 
have fixed prices, with some variable or escalating components.
Interest rate swaps
These contracts effectively fix the interest cost on long-term debt with variable rates, refer to note 8a.
Fair value determination
The Corporation has determined the fair values of derivative financial instruments as follows:
Embedded derivatives
The determination of the fair values of the embedded derivatives requires the use of option pricing models or discounted cash flow 
models involving significant judgment based on management's estimates and assumptions, including discount rates, the realizable 
forward Alberta Power Pool prices, volatility, credit spreads and production projections.
Interest rate swaps
Fair value fluctuates with changes in market interest rates.
A discounted cash flow valuation based on a forward interest rate curve was used to determine their fair value.
Foreign currency contracts
Fair value fluctuates with changes in the US dollar to the Canadian dollar.
A discounted cash flow valuation based on a forward USD/CAD exchange rate curve was used to determine their fair value.
Due to the lack of observable market quotes on the embedded derivatives, the contracts have been classified as level 3 financial 
instruments.
Capstone, with the assistance of third-party experts, is responsible for performing the valuation of financial instruments, including 
level 3 fair values. The valuation processes and results are reviewed and approved each reporting period.
The following table illustrates the classification of the Corporation's financial instruments, that have been recorded at fair value:
Recurring measurements:
Level 1 
Quoted prices in 
active markets for 
identical assets
Level 2
Significant other 
observable inputs
Level 3
Significant 
unobservable 
inputs
Dec 31, 2024
Dec 31, 2023
Derivative contract assets:
   Embedded derivatives (1)
 
—  
—  
12,404  
12,404  
— 
   Interest rate swap contracts (2)
 
—  
14,679  
—  
14,679  
24,957 
   Less: current portion
 
—  
(3,037)  
(945)  
(3,982)  
(10,682) 
 
—  
11,642  
11,459  
23,101  
14,275 
Derivative contract liabilities:
   Embedded derivatives (2)
 
—  
—  
—  
—  
9,096 
   Interest rate swap contracts
 
—  
6,693  
—  
6,693  
12,285 
   Less: current portion
 
—  
(1,474)  
—  
(1,474)  
(10,100) 
 
—  
5,219  
—  
5,219  
11,281 
(1)
The embedded derivatives relate to fuel supply and PPA contracts. Refer to note 2.
(2)
As of June 28, 2024, the Canadian Overnight Repo Rate Average (“CORRA”) is the successor rate for the Canadian Dollar Offered Rate (“CDOR”), and all of 
Capstone's loans referencing CDOR transitioned to CORRA. The transitions have not had a material financial impact to the Corporation.
Fair value continuity for Level 3 inputs
2024
2023
Opening balance, January 1,
 
(9,096)  
(3,819) 
Change in value of the VPPA embedded derivatives included in other gains and (losses) in net income
 
19,180  
(8,500) 
Change in value of the Whitecourt embedded derivative included in other gains and (losses) in net income
 
3,103  
6,730 
Whitecourt derivative settlements during the period
 
(1,136)  
(3,860) 
Amortization of Whitecourt derivative inception value included in other gains and (losses) in net income
 
353  
353 
Closing balance, December 31,
 
12,404  
(9,096) 
CAPSTONE INFRASTRUCTURE CORPORATION 
Page 36

Income and Expenses from Financial Instruments
Dec 31, 2024
Dec 31, 2023
Amortized cost assets:
   Interest income on cash and cash equivalents, restricted cash
 
3,763  
5,021 
   Interest income on loans receivable
 
832  
1,868 
 
4,595  
6,889 
Other liabilities:
   Interest expense on long-term debt (1)
 
(49,062)  
(48,752) 
Financial instruments at FVTPL (refer to note 23):
   Embedded derivatives
 
22,636  
(9,136) 
   Interest rate swap contracts
 
(4,686)  
(26,655) 
Changes in derivative financial instruments fair value
 
17,950  
(35,791) 
(1)
Interest expense on the long-term debt for 2024 of $49,062 includes amortization of deferred financing fees, interest expense on lease liabilities and accretion 
on liability for asset retirement obligations of $4,283, $2,759 and $815, respectively (2023 - $2,843, $2,537 and $698).
NOTE 8.  FINANCIAL RISK MANAGEMENT
The Corporation's normal operating, investing and financing activities expose it to a variety of financial risks, including market 
risk, credit risk, economic dependence and liquidity risk. The Corporation's overall risk management process is designed to 
identify, manage and mitigate business risk, which includes, among others, financial risk. 
(A) 
Market Risk
Market risk is the risk or uncertainty arising from possible price movements and their impact on the future performance of the 
business. The Corporation is exposed to commodity price risk (electricity revenue), interest rate and inflation risk, foreign 
currency exchange risk, and other indices that could adversely affect the value of the Corporation's financial assets, liabilities or 
expected future cash flows.
Commodity price risk
Capstone manages commodity price risk by (i) entering into PPAs whereby the Corporation receives a fixed price per MWh of 
electricity; and (ii) entering into VPPAs that reduce exposure to merchant price risk.
In 2024, the following projects revenues were exposed to price risk as follows:
(i)
Cardinal earns a portion of its revenue by supplying electricity to the Ontario grid only when profitable to do so.
(ii)
Whitecourt sells all electricity generated into the Alberta Power Pool. Whitecourt's fuel supply agreement includes sharing 
mechanisms regarding the price received for electricity sold by Whitecourt.
(iii) Claresholm sells a portion of electricity generated into the Alberta Power Pool. 
(iv) Kneehill and Buffalo Atlee 1 and 3 sell all electricity generated into the Alberta Power Pool.
Interest rate and inflation risk
Interest rate risk arises as changes in market interest rates affect the Corporation's future payments on debt obligations. The 
Corporation is exposed to interest rate risk on its floating rate debt. Currently, the Corporation has interest rate swap contracts to 
mitigate some of the risks associated with its long-term debt.
CAPSTONE INFRASTRUCTURE CORPORATION 
Page 37

The terms of the interest rate swap contracts are:
Entity
Maturity Date
Notional Amount
Swap Fixed Rate
Credit Margin
Effective 
Interest Rate
Wild Rose 2
Mar 31, 2050
180,793
 3.20 %
 2.82 %
 6.01 %
Wild Rose 2
Dec 31, 2026
125,862
 3.02 %
2.69 % - 2.82 %
5.71 % - 5.83 %
SLGR
Dec 31, 2036
105,129
 2.93 %
 1.55 %
 4.48 %
SWNS
Dec 31, 2036
71,394
 1.09 %
 1.68 %
 2.77 %
Buffalo Atlee
Dec 31, 2043
66,415
3.26 % - 4.10 %
 1.82 %
5.08 % - 5.92 %
Cardinal
Jun 30, 2034
57,620
2.12 % - 2.49 %
 1.57 %
3.69 % - 4.06 %
GHC
Sep 30, 2036
53,015
 1.09 %
 1.68 %
 2.77 %
Riverhurst
Dec 10, 2041
44,754
 3.10 %
 1.68 %
 4.78 %
Claresholm Solar LP
Sep 27, 2030
38,840
 0.73 %
 3.07 %
 3.81 %
Claresholm Solar LP
Sep 29, 2032
4,494
 2.84 %
 3.07 %
 5.91 %
Kneehill
Mar 31, 2043
22,385
 3.35 %
 1.82 %
 5.17 %
Michichi
Mar 31, 2043
15,904
 3.35 %
 1.82 %
 5.17 %
(1)
Interest rate swap settlement receipts of $11,036 (2023 - $11,678) have been included within interest expense on the consolidated statement of income.
Foreign currency exchange risk
The Corporation's exposure to foreign currency exchange risk is primarily related to the investment in US development activity. 
The power segment also has expenses and capital commitments exposed to foreign currency exchange risk.
Changes in the Canadian dollar and US dollar currency rates impact the carrying value of assets, liabilities, and components of 
the consolidated statement of income. The US entities have a foreign functional currency requiring movements in the US dollar 
to be reflected by the Corporation on consolidation.
As at December 31, 2024, Capstone did not hold any foreign exchange contracts to hedge this risk (December 31, 2023 - none).
Capstone's power assets have expenses or capital commitments in currencies other than the Canadian dollar; as new projects 
are built, expected additional purchases will be made in foreign currencies. To mitigate these risks Capstone monitors the risk 
associated with foreign exchange rate fluctuations and, from time to time, may enter into forward foreign exchange contracts or 
employ other hedging strategies.
(B) 
Credit Risk
Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to honour a 
financial obligation.
Financial instruments that potentially subject the Corporation to concentrations of credit risk consist of cash and cash 
equivalents, restricted cash, accounts receivable, loan receivable and derivative contracts.
The Corporation deposits its cash with reputable financial institutions and limits the exposure by counterparty; management 
therefore believes the risk of loss to be remote.
Credit risk concentration with respect to power trade receivables is limited due to the Corporation's customer base being 
predominantly investment grade counterparties. The table below summarizes power trade receivables from the sale of electricity 
and government incentive programs by credit quality:
Dec 31, 2024
Dec 31, 2023
As at
$
%
$
%
Investment grade (1)
 
36,474 
 95 %  
48,387 
 97 %
Other
 
1,858 
 5 %  
1,259 
 3 %
 
38,332 
 100 %  
49,646 
 100 %
(1)
Investment grade is defined as a credit rating of BBB or higher as defined by both S&P and DBRS.
There are no accounts receivable that are past due. Since the corporation uses external credit ratings to assess the credit quality 
of all counterparties, and counterparties are regularly monitored for credit worthiness, management considers credit risk to be 
minimal.
The Corporation's derivative agreements expose Capstone to losses under certain circumstances, such as the counterparty 
defaulting on its obligations under the swap agreements or if the swap agreements provide an imperfect hedge. Counterparties 
to the Corporation's interest rate derivative contracts are major financial institutions that have been accorded investment-grade 
ratings. Consequently, management believes there to be minimal credit risk associated with its interest rate derivative contracts.
(C) 
Economic Dependence
Economic dependence arises when an enterprise relies on a significant volume of business with another party that cannot be 
easily transferred at similar terms and conditions, or is abnormal relative to expectations of similar entities. Revenue from 
transactions with a single external customer that amount to 10% or more of total revenue include revenue earned by Capstone’s 
CAPSTONE INFRASTRUCTURE CORPORATION 
Page 38

power facilities in Ontario (59% or $128,769), Capstone’s power facilities in Nova Scotia (12% or $26,256), and Capstone's 
power facilities in Alberta (11% or $23,312). The table below summarizes revenue from the sale of electricity by credit quality for 
the power segment:
Dec 31, 2024
Dec 31, 2023
For the year ended
$
%
$
%
Investment grade (1)
 
219,179 
 100 %  
238,703 
 100 %
Other
 
96 
 — %  
312 
 — %
 
219,275 
 100 %  
239,015 
 100 %
(1)
Investment grade is defined as a credit rating of BBB or higher as defined by both S&P and DBRS.
(D) 
Liquidity Risk
Liquidity risk is the risk that the Corporation may have insufficient cash or other resources to meet obligations as they come due. 
Capstone manages liquidity risk by (i) maintaining prudent levels of cash balances, capacity under credit facilities and access to 
capital to manage during periods of uncertainty; and (ii) implementing fixed revenue and financing structures that minimize the 
risk of material fluctuations in cash flows.
Compliance with debt covenants
The Corporation has financial liabilities in its power operating segments and at corporate. Refer to notes 14 and 16 for further 
details on financial liabilities. These financial liabilities contain a number of standard financial and other covenants.
Failure to comply with terms and covenants of the Corporation's credit agreements could result in a default, which, if not cured or 
waived, could result in accelerated repayment or the suspension of preferred dividends.
In the event of default, there can be no assurance that the Corporation could:
(i)
Generate sufficient cash flow from operations in amounts sufficient to pay outstanding indebtedness, or to fund any other 
liquidity needs; or 
(ii)
Pay future preferred dividends; or
(iii) Refinance these credit agreements or obtain additional financing on commercially reasonable terms, if at all. The credit 
agreements, and future borrowings may be at variable rates of interest, which exposes the Corporation to the risk of 
increased interest rates.
Contractual maturities
The contractual undiscounted maturities of the Corporation's financial liabilities as at December 31, 2024 were as follows:
Financial Liabilities
Within one year
One year to five years
Beyond five years
Total
Accounts payable and other liabilities
 
54,189  
—  
—  
54,189 
Lease liabilities (1)
 
3,584  
17,986  
101,412  
122,982 
Long-term debt
   Principal payments
 
91,656  
563,326  
465,883  
1,120,865 
   Interest payments
 
32,032  
99,690  
88,731  
220,453 
 
123,688  
663,016  
554,614  
1,341,318 
(1)
Includes the fixed portion of minimum lease payments.
(E) 
Sensitivity Analysis
The sensitivity analysis provided below discloses the effect on net income for the year ended December 31, 2024, assuming that 
a reasonably possible change in the relevant risk variable has occurred during the year, and has been applied to the risk 
exposures in existence at that date to show the effects of reasonably possible changes. The changes in market variables used in 
the sensitivity analysis were determined based on implied volatilities, where available, or historical data.
The sensitivity analysis has been prepared based on December 31, 2024 balances and on the basis that the balances, the ratio 
of fixed to floating rates of debt and derivatives, and the energy contracts that are financial instruments in place at December 31, 
2024 are all constant. Excluded from this analysis are all non-financial assets and liabilities that are not classified as financial 
instruments under IFRS 9.
The sensitivity analysis provided is hypothetical and should be used with caution because the impacts provided are not 
necessarily indicative of the actual impacts that would be experienced, as the Corporation's actual exposure to market rates is 
constantly changing as the Corporation's portfolio of commodity, debt, foreign currency, and equity contracts changes. Changes 
in fair values or cash flows based on a variation in a market variable cannot be extrapolated because the relationship between 
the change in the market variable and the change in fair value or cash flows may not be linear. In addition, the effect of a change 
in a particular market variable on fair values or cash flows is calculated without considering interrelationships between the 
various market rates, hedging strategies employed by the Corporation or other mitigating actions that would be taken by the 
Corporation.
CAPSTONE INFRASTRUCTURE CORPORATION 
Page 39

The table summarizes the impact on fair value of changes in the embedded derivative's level 3 unobservable inputs:
Dec 31, 2024 Unobservable inputs
Estimated input
Relationship of input to fair value
$12,404
Realizable forward 
Alberta Power Pool 
prices
From $16/MWh to $105/
MWh over the contract 
terms.
A reasonably possible increase in estimated realizable forward Alberta 
Power Pool prices of 5% or a decrease of 5%, would cause fair value to 
decrease by $11,835 and increase by $11,833, respectively.
Changes in these estimates may have a significant impact on the fair value of the embedded derivative given the length of 
contract involved. As new information becomes available, management may choose to revise these estimates where there is an 
absence of reliable observable market data.
The table summarizes the impact on fair value of changes in level 2 observable inputs:
Carrying
Interest Rate Risk
Dec 31, 2024
Amount
(0.5)%
0.5%
Financial assets and (liabilities) (1):
   Interest rate swap assets (liabilities), net
 
7,986  
(17,650)  
30,001 
(1)
Financial liabilities in long-term debt are not included as all long-term debt is either fixed-rate debt or variable rate debt that is covered by a swap contract for 
fixed-rate debt. The outstanding balance on the CPC revolving credit facility was $108,000.
NOTE 9. 
EQUITY ACCOUNTED INVESTMENTS
(A) 
Equity Accounted Investments
As at
Dec 31, 2024
Dec 31, 2023
Ownership %
Carrying Value
Carrying Value
Obra Maestra
50%
7,018
4,121
 
7,018  
4,121 
Capstone's December 31, 2024 consolidated financial statements include its 50% interest as an equity accounted investment 
adjusted by contributions, distributions and share of net income (loss), subsequent to the initial contribution on June 7, 2022.
The change in Capstone's equity accounted investment for the period ended December 31, 2024 was:
For the year ended
Opening balance
Contributions
Distributions
Equity accounted 
income (loss)
Ending balance
December 31, 2024
 
4,121  
8,913  
—  
(6,016)  
7,018 
December 31, 2023
 
6,492  
1,488  
(2,147)  
(1,712)  
4,121 
(B) 
Summarized Information for Equity Accounted Investments
The Corporation has summarized its equity accounted investments using their gross values as follows:
As at
Dec 31, 2024
Dec 31, 2023
Summarized Statements of Financial Position
Obra Maestra
Obra Maestra
Assets
Current
 
3,130 
 
4,417 
Non-current
 
12,186 
 
3,702 
Liabilities
Current
 
(2,381) 
 
(980) 
Equity before fair value increments on purchase and NCI
 
12,935 
 
7,139 
Fair value increments
 
1,101 
 
1,103 
Equity including fair value increments on purchase
 
14,036 
 
8,242 
Capstone's interest
 50 %
 50 %
Carrying value of investment
 
7,018 
 
4,121 
For the year ended
Dec 31, 2024
Dec 31, 2023
Summarized Statements of Income
Obra Maestra
Obra Maestra
Revenue
 
— 
 
— 
Net income (loss)
 
(12,031) 
 
(3,423) 
Capstone's interest 
 50 %
 50 %
Net income (loss) to Capstone
 
(6,016) 
 
(1,712) 
CAPSTONE INFRASTRUCTURE CORPORATION 
Page 40

NOTE 10.  CAPITAL ASSETS
(A) 
Continuity
Jan 1, 2024
Additions
Disposals (1)
Transfers (2)
Dec 31, 2024
Cost
Land
 
1,411  
—  
—  
—  
1,411 
 ROU assets
 
52,219  
3,862  
(79)  
—  
56,002 
Equipment and vehicles
 
14,605  
526  
(1,000)  
—  
14,131 
Property and plant
 
1,652,913  
24,550  
(7,962)  
92,983  
1,762,484 
 
1,721,148  
28,938  
(9,041)  
92,983  
1,834,028 
Accumulated depreciation
ROU assets
 
(9,694)  
(2,142)  
34  
—  
(11,802) 
Equipment and vehicles
 
(8,933)  
(384)  
88  
—  
(9,229) 
Property and plant
 
(755,115)  
(81,073)  
3,993  
—  
(832,195) 
 
(773,742)  
(83,599)  
4,115  
—  
(853,226) 
Net carrying value
 
947,406  
(54,661)  
(4,926)  
92,983  
980,802 
(1)
Disposals of $4,926 were offset by proceeds of $994, resulting in a $3,932 loss (refer to note 23).
(2)
Transfers of $92,983 on COD of Buffalo Atlee from projects under development (refer to note 11).
Jan 1, 2023
Additions
Disposals (1)
Transfers (2)
Dec 31, 2023
Cost
Land
 
1,411  
—  
—  
—  
1,411 
 ROU assets
 
40,547  
11,672  
—  
—  
52,219 
Equipment and vehicles
 
13,519  
1,282  
(196)  
—  
14,605 
Property and plant
 
1,590,967  
14,050  
(2,913)  
50,809  
1,652,913 
 
1,646,444  
27,004  
(3,109)  
50,809  
1,721,148 
Accumulated depreciation
 ROU assets
 
(7,513)  
(2,181)  
—  
—  
(9,694) 
Equipment and vehicles
 
(8,751)  
(378)  
196  
—  
(8,933) 
Property and plant
 
(675,258)  
(81,739)  
1,882  
—  
(755,115) 
 
(691,522)  
(84,298)  
2,078  
—  
(773,742) 
Net carrying value
 
954,922  
(57,294)  
(1,031)  
50,809  
947,406 
(1)
Disposals of $1,031 were offset by proceeds of $110, resulting in a $921 loss (refer to note 23).
(2)
Transfers of $50,809 on COD of Michichi and Kneehill from projects under development (refer to note 11).
(B) 
Reconciliation to Cash Additions for the Cash Flow Statement
For the year ended
Dec 31, 2024
Dec 31, 2023
Additions
 
28,938  
27,004 
Adjustment for non-cash ROU asset additions
 
(3,802)  
(11,672) 
Adjustment for change in capital asset additions included in accounts payable and accrued liabilities
 
7,275  
16,455 
Cash additions
 
32,411  
31,787 
CAPSTONE INFRASTRUCTURE CORPORATION 
Page 41

NOTE 11.  PROJECTS UNDER DEVELOPMENT
(A) 
Continuity
2024
2023
As at January 1
 
373,053  
162,018 
Capitalized costs during the period
 
123,006  
315,604 
Asset impairment charge (1)
 
(3,046)  
— 
Transferred to capital assets (2)
 
(92,983)  
(50,809) 
Disposals
 
(3,195)  
— 
Government funding
 
(16,203)  
(53,760) 
As at December 31 (3), (4)
 
380,632  
373,053 
(1)
The asset impairment charge of $3,046 relates to a write-off of early stage development projects in Alberta. 
(2)
Amounts were transferred on achievement of COD of Buffalo Atlee (refer to note 10).
(3)
Includes $10,340 and $3,746 of capitalized borrowing costs during the development of Wild Rose 2 and Buffalo Atlee, respectively.
(4)
The balance primarily includes costs to develop the Wild Rose 2 project ($299,882), early and mid-stage US development projects ($9,432), and other early and mid-
stage development projects ($13,385). 
(B) 
Reconciliation to Cash Additions for the Cash Flow Statement
For the year ended
Dec 31, 2024
Dec 31, 2023
Additions
 
123,006  
315,604 
Adjustment for change in additions to PUD included in accounts payable and accrued liabilities
 
(3,409)  
(22,135) 
Cash additions
 
119,597  
293,469 
NOTE 12.  INTANGIBLE ASSETS
 
Jan 1, 2024
Additions
Disposals
Dec 31, 2024
Assets
Computer software 
 
661  
11  
—  
672 
Electricity supply and other contracts
 
203,628  
—  
—  
203,628 
Water rights
 
73,018  
—  
—  
73,018 
 
277,307  
11  
—  
277,318 
Accumulated amortization
Computer software
 
(467)  
(82)  
—  
(549) 
Electricity supply and other contracts
 
(117,396)  
(11,732)  
—  
(129,128) 
Water rights
 
(34,951)  
(2,116)  
—  
(37,067) 
 
(152,814)  
(13,930)  
—  
(166,744) 
Net carrying value
 
124,493  
(13,919)  
—  
110,574 
Jan 1, 2023
Additions
Disposals 
Dec 31, 2023
Assets
Computer software
 
668  
56  
(63)  
661 
Electricity supply and other contracts 
 
203,628  
—  
—  
203,628 
Water rights
 
73,018  
—  
—  
73,018 
 
277,314  
56  
(63)  
277,307 
Accumulated amortization
Computer software
 
(393)  
(137)  
63  
(467) 
Electricity supply and other contracts
 
(106,275)  
(11,121)  
—  
(117,396) 
Water rights
 
(32,835)  
(2,116)  
—  
(34,951) 
 
(139,503)  
(13,374)  
63  
(152,814) 
Net carrying value
 
137,811  
(13,318)  
—  
124,493 
CAPSTONE INFRASTRUCTURE CORPORATION 
Page 42

NOTE 13.  INCOME TAXES
(A)
Deferred Income Tax
As at
Dec 31, 2024
Dec 31, 2023
Deferred income tax assets
 
5,257  
8,874 
Deferred income tax liabilities
 
(80,515)  
(93,302) 
Net deferred income tax liability
 
(75,258)  
(84,428) 
The net deferred income tax liability, without taking into consideration the offsetting of balances within the same jurisdiction, are 
detailed as follows:
As at
Dec 31, 2024
Dec 31, 2023
Non-capital loss carry forwards
 
39,469  
33,956 
Asset retirement obligations
 
3,720  
3,297 
Financial Instruments
 
—  
1,158 
Other
 
8,967  
6,441 
Deferred income tax assets
 
52,156  
44,852 
Capital assets
 
(94,887)  
(99,332) 
Intangible assets
 
(25,366)  
(28,281) 
Financial instruments
 
(5,711)  
— 
Loan premium and deferred financing costs
 
(1,450)  
(1,667) 
Deferred income tax liabilities
 
(127,414)  
(129,280) 
Net deferred income tax liability
 
(75,258)  
(84,428) 
A continuity of the net deferred income tax liability follows:
2024
2023
Net deferred income tax liability as at January 1
 
(84,428)  
(91,807) 
Recorded in earnings
 
8,142  
6,385 
Recorded in equity
 
1,029  
989 
Other
 
(1)  
5 
Net deferred income tax liability as at December 31
 
(75,258)  
(84,428) 
(B) 
 Timing of Deferred Income Tax Reversal
The timing of deferred income tax reversal is summarized as follows:
As at
Dec 31, 2024
Dec 31, 2023
Within 12 months
 
16,890  
7,159 
After more than 12 months
 
(92,148)  
(91,587) 
Net deferred income tax liability
 
(75,258)  
(84,428) 
(C) 
Tax Loss Carry Forwards
Capstone's tax loss carry forwards and the portion recognized in deferred income tax assets were as follows:
Expiry
Recognized
Unrecognized
Dec 31, 2024
Dec 31, 2023
Canadian – non-capital losses
2026 – 2043
 
113,670  
79,064  
192,734  
226,853 
Canadian – other losses
No expiry
 
42,728  
—  
42,728  
5,727 
US – non-capital losses
2025 – 2029
 
—  
28,431  
28,431  
28,002 
The Corporation also has $13,645 of unrecognized deferred tax assets, which have not been recognized as at December 31, 
2024 (2023 - $11,185).
CAPSTONE INFRASTRUCTURE CORPORATION 
Page 43

(D) 
Rate Reconciliation
The following table reconciles the expected income tax expense using the statutory tax rate to the expense:
For the year ended
Dec 31, 2024
Dec 31, 2023
Income (loss) before income taxes
 
(13,558) 
 
(36,358) 
Statutory income tax rate
 25.44 %
 25.06 %
Income tax expense based on statutory income tax rate 
 
(3,449) 
 
(9,111) 
Permanent differences 
 
(138) 
 
(739) 
Tax rate differentials 
 
405 
 
271 
Change in unrecognized deferred tax assets
 
(3,195) 
 
3,435 
Other 
 
(1,145) 
 
(1,022) 
Total income tax expense (recovery)
 
(7,522) 
 
(7,166) 
The statutory income tax rate of 25.44% (2023 - 25.06%) changes in response to Capstone's allocation of taxable income to 
different tax jurisdictions.
(E) 
Current Income Taxes
Current income taxes payable of $193 are included in accounts payable and other liabilities on the statement of financial position 
(refer to note 14) (2023 - $414).
NOTE 14.  ACCOUNTS PAYABLE AND OTHER LIABILITIES
Dec 31, 2024
Dec 31, 2023
Dividends payable
 
463  
463 
Income taxes payable
 
193  
414 
Other accounts payable and accrued liabilities
 
53,533  
60,253 
 
54,189  
61,130 
Income taxes payable 
Dec 31, 2024
Dec 31, 2023
Taxes payable on preferred share dividends
 
185  
29 
Current income taxes payable
 
8  
56 
Canadian Renewable and Conservation Expense ("CRCE") penalties
 
—  
329 
 
193  
414 
NOTE 15.  LEASE LIABILITIES
2024
2023
As at January 1
 
46,808  
36,689 
Interest expense
 
2,759  
2,537 
Additions (1) 
 
3,802  
11,672 
Lease payments
 
(3,969)  
(4,090) 
Lease liabilities
 
49,400  
46,808 
Less: current portion
 
(1,711)  
(1,209) 
As at December 31
 
47,689  
45,599 
(1)
Includes $3,773 for the revision of estimates of various leases and $89 of additions for Buffalo Atlee subsequent to COD (2023 - $9,058 for Michichi and 
Kneehill, and $2,614 at Corporate).
Capstone has the following known lease payments:
•
Capstone's operating wind facilities and wind development projects have entered into agreements to use, or the option to 
use, land in connection with the operation of existing and future wind facilities. Payment under these agreements is typically 
a minimum amount with additional payments dependent on the amount of power generated by the wind facility. The 
agreements can be renewed and extended as far as 2061.
•
Cardinal leases the site on which it is located from Ingredion Canada Corporation ("Ingredion"). Under the lease, Cardinal 
pays monthly rent. The lease extends through 2034 and expires concurrently with the Energy Savings Agreement between 
Ingredion and Cardinal. 
•
Capstone's operating solar facilities have entered into agreements to use land in connection with their operation with terms 
extending as far as 2067.
•
The Corporation has two leases for its corporate offices expiring in 2026 and 2028.
CAPSTONE INFRASTRUCTURE CORPORATION 
Page 44

Capstone's leases with no minimum payments required were:
•
Agreements with the Provinces of Ontario and British Columbia for the lease of certain lands and water rights necessary for 
the operation of its hydro power facilities. The payments under these agreements vary based on actual power production. 
The terms of the lease agreements expire in 2025 and 2042.
NOTE 16.  LONG-TERM DEBT
(A) 
Power
As at
Dec 31, 2024
Dec 31, 2023
Fair Value
Carrying 
Value
Fair Value
Carrying 
Value
CPC credit facilities 
 
108,000  
108,000  
77,500  
77,500 
Project debt
Wind
 
704,884  
708,219  
581,745  
577,452 
Solar
 
187,091  
185,453  
202,684  
203,132 
Hydros
 
62,029  
62,784  
62,557  
64,814 
Gas 
 
56,409  
56,409  
61,355  
61,355 
Other
 
—  
—  
60  
60 
Power 
 
1,118,413  
1,120,865  
985,901  
984,313 
Less: deferred financing costs 
 
(28,241) 
 
(16,744) 
Long-term debt
 
1,092,624 
 
967,569 
Less: current portion
 
(91,656) 
 
(69,596) 
 
1,000,968 
 
897,973 
The power segment has drawn $107,394 for letters of credit, as well as $22,762 which are supported by the common 
shareholder. Refer to note 25.
The project debts within the power segment have regular principal and interest payments over the term to maturity and are 
secured only by the assets of their respective projects, with no recourse to the Corporation's other assets, except as noted. Refer 
to note 24 for description of limited recourse guarantees.
In addition, the individual project debt agreements require the respective projects to maintain certain restrictive covenants 
including a minimum debt service coverage ratio to allow distributions to Capstone.
(i) 
CPC Credit Facilities
Interest Rate
Maturity
Dec 31, 2024
Dec 31, 2023
Available credit
Revolving credit facility (1)
Mar 27, 2027
 
275,000  
220,000 
US LC facility (2)
Dec 23, 2025
 
100,723  
52,904 
Total available credit - all facilities
 
375,723  
272,904 
Amount drawn
   Revolving loan
6.94%
 
108,000  
77,500 
   Letters of credit - revolving credit facility (3)
2.33%
 
42,015  
23,227 
Letters of credit - US LC facility
1.88%
 
29,598  
39,997 
Remaining available credit
 
196,110  
132,180 
(1)
In 2024, the CPC revolving credit facility was amended and restated, to increase its revolver capacity to $275,000 and to extend its maturity date to March 27, 
2027. The new revolving credit facility supports Capstone's ongoing operating, development, and construction needs. The effective rate on the revolving credit 
facility was 6.94% in 2024 (2023 - 6.74%) based on a variable rate plus an applicable margin.
(2)
In 2024, the US LC facility was increased and extended to December 23, 2025. The US LC Facility has $29,598 of letters of credit to support the development 
and construction facilities.
(3)
As at December 31, 2024, Capstone had 22 letters of credit authorized under the revolving credit facility.
Under the CPC credit facilities, CPC is subject to customary covenants, including specific limitations on leverage and interest 
coverage ratios. The collateral for the CPC credit facilities is provided by Capstone, CPC, and its material subsidiaries. CPC and 
its material subsidiary guarantors (with the exception of certain subsidiaries, including previously encumbered project financed 
subsidiaries) provided demand debentures granting a first ranking security interest in all present and future property, a floating 
charge over real property and first ranking securities pledge agreements (subject to certain permitted liens). Capstone provided a 
limited recourse guarantee, a securities pledge agreement, and an assignment of indebtedness owed to Capstone by CPC.
CAPSTONE INFRASTRUCTURE CORPORATION 
Page 45

(ii) 
Wind
Project debt
Dec 31, 2024
Dec 31, 2023
Wild Rose 2
 
178,877  
— 
SWNS and Grey Highlands Clean
 
121,137  
131,017 
SLGR
 
102,853  
109,776 
Buffalo Atlee 
 
68,086  
69,811 
Goulais
 
48,696  
52,415 
Glen Dhu
 
46,063  
52,959 
Riverhurst
 
44,335  
45,469 
Saint-Philémon
 
37,288  
39,883 
Amherst
 
21,055  
23,661 
Erie Shores
 
14,638  
23,693 
Skyway 8
 
12,709  
13,602 
SkyGen 
 
7,606  
9,281 
Glace Bay
 
4,876  
5,885 
 
708,219  
577,452 
Wild Rose 2 
Interest Rate (2)
Maturity
Dec 31, 2024
Dec 31, 2023
Construction facility
5.27%
Feb 1, 2026
 
93,581  
— 
ITC bridge loan facility
4.59%
Mar 31, 2027
 
85,296  
— 
 
178,877  
— 
(1)
On November 8, 2024 Wild Rose 2 entered into a credit agreement which provided $270,498 of variable rate debt for the construction of the wind facility. Upon 
achieving commercial operation, the debt converts to a term loan, amortizing over twenty-five years. Interest during construction is capitalized to projects under 
development, which included $10,340 as at December 31, 2024.
(2)
As at December 31, 2024, Wild Rose 2 had swap contracts to convert interest to a fixed rate (see note 8a).
SWNS and Grey Highlands Clean (1)
Interest Rate (4)
Maturity
Dec 31, 2024
Dec 31, 2023
SWNS - Term Loan
2.77%
Dec 31, 2036
 
69,472  
75,409 
Grey Highlands Clean - Term Loan
2.77%
Dec 31, 2036
 
51,665  
55,608 
 
121,137  
131,017 
(1)
SWNS and Grey Highlands Clean are financed together under a co-borrowing agreement.
(2)
SWNS and Grey Highlands Clean are required to set aside $5,200 and $3,500, respectively, as letters of credit to cover the debt service reserve.
(3)
SWNS and Grey Highlands Clean are required to set aside $375 and $743, respectively, as restricted cash to fund the operating and maintenance reserves 
(see note 3).
(4)
As at December 31, 2024, SWNS and Grey Highlands Clean had swap contracts to convert interest to a fixed rate (see note 8a).
SLGR
Interest Rate (3)
Maturity
Dec 31, 2024
Dec 31, 2023
Term loan
4.48%
Dec 31, 2036
 
102,853  
109,776 
(1)
SLGR is required to set aside $7,300 as letters of credit to cover the debt service reserve.
(2)
SLGR is required to set aside $831 as restricted cash to fund the operating and maintenance reserve (see note 3).
(3)
As at December 31, 2024, SLGR had swap contracts to convert interest to a fixed rate (see note 8a).
Buffalo Atlee
Interest Rate (4)
Maturity
Dec 31, 2024
Dec 31, 2023
Term Loan
5.33%
Jan 27, 2028
 
68,086  
69,811 
(1)
On November 14, 2024, the construction credit facility of Buffalo Atlee converted to term loan, amortizing over 20 years and maturing on January 27, 2028.
(2)
Buffalo Atlee has a $60,366 limited recourse guarantee provided to the lender of the Buffalo Atlee project debt.
(3)
Interest during construction is capitalized to projects under development, which included $3,746 as at December 31, 2024.
(4)
As at December 31, 2024, Buffalo Atlee had swap contracts to convert interest to a fixed rate (see note 8a).
Goulais
Interest Rate
Maturity
Dec 31, 2024
Dec 31, 2023
Term loan
5.16%
Sep 30, 2034
 
48,696  
52,415 
(1)
Goulais is required to set aside $3,453 as restricted cash to cover the debt service reserve (see note 3).
(2)
Goulais is required to set aside $461 as letters of credit against the borrowing capacity of the CPC revolving credit facility to cover the operating and 
maintenance reserve.
Glen Dhu
Interest Rate
Maturity
Dec 31, 2024
Dec 31, 2023
Term loan
5.33%
Dec 31, 2030
 
46,063  
52,959 
(1)
Glen Dhu is required to set aside $5,039 as letters of credit supported by the common shareholder to cover the debt service reserve.
Riverhurst
Interest Rate (2)
Maturity
Dec 31, 2024
Dec 31, 2023
Term loan
4.78%
Dec 31, 2041
 
44,335  
45,469 
(1)
Riverhurst is required to set aside $2,500 as letters of credit to cover the debt service reserve.
(2)
As at December 31, 2024, Riverhurst had swap contracts to convert interest to a fixed rate (see note 8a).
CAPSTONE INFRASTRUCTURE CORPORATION 
Page 46

Saint-Philémon
Interest Rate
Maturity
Dec 31, 2024
Dec 31, 2023
Term loan
5.49%
May 31, 2034
 
37,288  
39,883 
(1)
Saint-Philémon is required to set aside $1,224 as letters of credit against the borrowing capacity of the CPC revolving credit facility to cover the debt service 
reserve.
Amherst
Interest Rate
Maturity
Dec 31, 2024
Dec 31, 2023
Term loan
6.20%
Apr 30, 2032
 
21,055  
23,661 
(1)
Amherst's project debt has a $1,000 limited recourse guarantee provided by CPC to the lenders of the Amherst project debt.
(2)
Amherst is required to set aside $1,842 as letters of credit against the borrowing capacity of the CPC revolving credit facility to cover the debt service and 
maintenance reserves.
Erie Shores (3)
Interest Rate
Maturity
Dec 31, 2024
Dec 31, 2023
Tranche A
5.96%
Apr 1, 2026
 
8,805  
14,257 
Tranche C
6.15%
Apr 1, 2026
 
5,833  
9,436 
 
14,638  
23,693 
(1)
Erie Shores project debt has a $5,000 limited recourse guarantee provided by CPC to the lenders of the Erie Shores project debt.
(2)
Erie Shores is required to set aside $5,156 as restricted cash and $550 as letters of credit against the borrowing capacity of the CPC revolving credit facility to  
cover the debt service and maintenance reserves (see note 3).
(3)
Tranche B matured on April 1, 2016.
Skyway 8
Interest Rate
Maturity 
Dec 31, 2024
Dec 31, 2023
Term loan
7.00%
Mar 17, 2025
 
12,709  
13,602 
(1)
Skyway 8 is required to set aside $766 as restricted cash to cover the debt service reserve (see note 3).
SkyGen
Interest Rate
Maturity 
Dec 31, 2024
Dec 31, 2023
Term loans
7.00%
Mar 23, 2025
 
7,606  
9,281 
(1)
SkyGen is required to set aside $1,334 as restricted cash to cover the debt service reserve (see note 3).
Term loan
5.99%
Mar 15, 2027
 
2,087  
2,875 
Term loan
4.72%
Oct 1, 2032
 
2,789  
3,010 
 
4,876  
5,885 
Glace Bay
Interest Rate
Maturity
Dec 31, 2024
Dec 31, 2023
(1)
Glace Bay is required to set aside $2,169 as restricted cash to cover the debt service and operating and maintenance reserves (see note 3).
(iii) 
Solar
Project debt
Dec 31, 2024
Dec 31, 2023
Claresholm
 
85,881  
93,627 
Amherstburg
 
59,726  
68,005 
Michichi and Kneehill
 
39,846  
41,500 
 
185,453  
203,132 
Claresholm
Interest Rate (2)
Maturity 
Dec 31, 2024
Dec 31, 2023
Term loan - variable
3.81%
Mar 24, 2026
 
44,807  
48,849 
Term loan - fixed
5.70%
Mar 24, 2033
 
41,074  
44,778 
 
85,881  
93,627 
(1)
Claresholm is required to set aside $5,034 and $2,612 as letters of credit to cover the debt service reserve and operating and maintenance reserve, 
respectively.
(2)
As at December 31, 2024, Claresholm had swap contracts to convert floating interest to a fixed rate (see note 8a).
Amherstburg
Interest Rate
Maturity
Dec 31, 2024
Dec 31, 2023
Senior term loan
3.49%
Dec 31, 2030
 
40,489  
46,729 
Subordinated term loan
3.78%
Jun 30, 2031
 
19,237  
21,276 
 
59,726  
68,005 
(1)
Amherstburg is required to set aside $6,626 as letters of credit supported by the common shareholder to cover the debt service and maintenance reserves.
Michichi and Kneehill
Interest Rate (2)
Maturity
Dec 31, 2024
Dec 31, 2023
Kneehill - Term loan
5.17%
Dec 22, 2027
 
23,295  
24,262 
Michichi - Term loan
5.17%
Dec 22, 2027
 
16,551  
17,238 
 
39,846  
41,500 
(1)
As at December 31, 2024, Michichi and Kneehill had swap contracts to convert interest for Kneehill and Michichi to a fixed rate (see note 8a).
CAPSTONE INFRASTRUCTURE CORPORATION 
Page 47

(iv) 
Gas
Interest Rate (2)
Maturity
Dec 31, 2024
Dec 31, 2023
Term loan
3.69%
Apr 1, 2026
 
39,204  
42,620 
Term loan
4.02%
Apr 1, 2026
 
17,205  
18,735 
 
56,409  
61,355 
(1)
Cardinal is required to set aside $2,211 as restricted cash to cover the operating and maintenance reserves and $4,000 as letters of credit to cover the debt 
service reserve (see note 3).
(2)
As at December 31, 2024, Cardinal had swap contracts to convert interest to a fixed rate (see note 8a).
(v) 
Hydros
Interest Rate
Maturity
Dec 31, 2024
Dec 31, 2023
Senior secured bonds
4.56%
Jun 30, 2040
 
45,597  
47,256 
Subordinated secured bonds
7.00%
Jun 30, 2041
 
17,187  
17,558 
 
62,784  
64,814 
(1)
The hydro facilities are required to set aside $11,097 as letters of credit supported by the common shareholder to cover the debt service and maintenance 
reserves.
(B) 
Long-term Debt Covenants
The Corporation and its subsidiaries have financial liabilities containing a number of covenants. Failure to comply with the terms 
and covenants of these agreements could result in a default which, if not cured or waived, could lead to accelerated repayment. 
As at December 31, 2024, Capstone and its subsidiaries continue to comply with all debt covenants, except as noted below.
Some of Capstone's credit facilities have debt covenants which could cause the debt to become repayable within twelve months 
of the reporting period if the project fails to meet them. Capstone maintains a forecasting process for the upcoming twelve 
months to ensure an understanding of the covenant compliance on a forward-looking basis, subject to a number of significant 
assumptions which could change materially from those assumed in their respective forecasts.
As at December 31, 2024, the following summarizes the covenant forecasts:
•
The CPC credit facilities include leverage ratio and interest coverage ratio covenants on a quarterly basis.
•
Some project debt facilities are required to comply with operating income to debt service ratio covenants on a quarterly 
or annual basis ($76,724 of debt). The debt could become repayable if the covenants are breached, and the default is 
not cured within the required time period.
•
Glace Bay's project debt of $4,876 currently has a waiver of a debt covenant in place until January 31, 2025. This 
project has consistently paid the outstanding debt balances and received waivers of the debt covenant from lenders.
(C) 
Long-term Debt Repayments
The following table summarizes total principal payments required under each of the Corporation's facilities in the next five years 
and thereafter:
Year of Repayment
Within one year
One year to five years
Beyond five years
Total
Power
 
91,656  
563,326  
465,883  
1,120,865 
NOTE 17.  LIABILITY FOR ASSET RETIREMENT OBLIGATION
The carrying value of these obligations is based on estimated cash flows required to settle these obligations in present day costs. 
The costs relate to site restoration and decommissioning of the gas, wind and hydro power facilities.
The following table provides the underlying assumptions and reconciles the Corporation's total asset retirement obligation 
activity:
Dec 31, 2024
Dec 31, 2023
Assumptions:
Expected settlement date
2026-2062
2026-2062
Inflation rate
 2.0 %
 2.0 %
Credit adjusted discount rate
4.75% - 8.00%
4.75% - 7.75%
Balance, beginning of year
 
14,017 
 
12,682 
Revision of estimates
 
(309) 
 
(9) 
Liabilities incurred (1)
 
1,182 
 
646 
Accretion expense
 
815 
 
698 
Balance, end of year
 
15,705 
 
14,017 
(1)
Liabilities incurred related to Wild Rose 2 were recorded as at December 31, 2024 as construction had progressed significantly by the end of the year.
CAPSTONE INFRASTRUCTURE CORPORATION 
Page 48

NOTE 18.  SHAREHOLDERS’ EQUITY
The following table summarizes the Corporation's share capital:
As at
Dec 31, 2024
Dec 31, 2023
Common and Class A shares (1)
 
137,270  
212,270 
Preferred shares
 
72,020  
72,020 
 
209,290  
284,290 
(1)
Includes $75,000 paid as a return of capital to the Class A common shareholder in 2024 (2023- cash capital contributions of $70,000).
(A) 
Common and Class A Shares
Capstone is authorized to issue an unlimited number of common and Class A shares, all of which have the same rights and 
attributes. As at December 31, 2024 and 2023, there were 304,609 common and Class A shares issued and outstanding.
(B) 
Preferred Shares
Capstone is authorized to issue preferred shares equal to 50% of the outstanding common shares. As at December 31, 2024 
and 2023, there were 3,000 series A preferred shares issued and outstanding. 
The series A preferred shares have a cumulative discretionary dividend, which has a rate reset on each 5-year anniversary; the 
next anniversary date is July 31, 2026. The shares are non-voting and redeemable at the Corporation's discretion. 
In accordance with the terms and conditions of the share agreement, all Class A preferred shares accrue dividends at a fixed rate 
of 3.702% per annum and preferred dividends are paid quarterly.
(C) 
Dividends
No dividends were declared in 2024 or 2023 in respect of the Corporation's common shareholders.
For the year ended
Dec 31, 2024
Dec 31, 2023
Preferred shares declared (1), (2)
 
2,857  
2,764 
(1) 
Includes $81 of deferred income taxes expenses for the year ended December 31, 2024 (2023 - recovery of $12).
(2) 
Capstone has included $463 of accrued preferred dividends as declared on November 14, 2024 (2023 - $463).
(D) 
Capital Management
The Corporation manages its capital to achieve the following objectives:
• 
Maintain a capital structure that provides financial flexibility to the Corporation to ensure access to debt on commercially 
reasonable terms, without exceeding its debt capacity; 
• 
Maintain financial flexibility in order to preserve its ability to meet financial obligations, including debt servicing payments and 
distribution payments; and
• 
Deploy capital to provide an appropriate investment return to its security holders.
The Corporation's financial strategy is designed to maintain a capital structure consistent with the objectives stated above and to 
respond to changes in economic conditions. In doing so, the Corporation may receive capital contributions from its common 
shareholder, issue additional shares, issue additional debt, issue debt to replace existing debt with similar or different 
characteristics, or adjust the amount of dividends paid to shareholders.
The Corporation's financing and refinancing decisions are made on a specific transaction basis and depend on such things as 
the Corporation's needs and economic conditions at the time of the transaction. 
The Corporation is not subject to any external capital requirements and is in compliance with all debt covenants, except as 
described in note 16b.
NOTE 19.  NON-CONTROLLING INTERESTS
(A) 
Non-controlling Interests
Non-controlling interests represent ownership interests by third parties in businesses consolidated by Capstone. Capstone's 
entities with non-controlling interests and Capstone's partners as at December 31, 2024 were:
Partner(s)
Obton A/S 
("Obton")
Sawridge First 
Nation ("SFN")
Batchewana 
First Nation 
("BFN")
One West 
Holdings Ltd. 
("Concord")
Firelight 
Infrastructure 
Partners LP 
("Firelight")
Municipal 
interests
Project(s) and 
Ownership
Claresholm
49%
SFN Projects 
25% (1)
Goulais
49%
SLGR
49%
Amherst
49%
Saint-Philémon
49% (2)
(1)
The SFN Projects are comprised of Buffalo Atlee, Michichi, and Kneehill.
(2)
Saint-Philémon is 48.9% owned by Municipalité Régionale de Comté de Bellechasse and 0.1% owned by Municipalité de Saint-Philémon.
CAPSTONE INFRASTRUCTURE CORPORATION 
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Capstone has agreements with each partner that govern distributions from these investments. In addition, distributions must also 
comply with the respective debt agreements.
The balances and changes in non-controlling interests are:
Obton's 
interest in 
Claresholm
Sawridge's 
interest in 
SFN 
Projects(1)
BFN's 
interest in 
Goulais (2)
Concord's 
interest in 
SLGR
Firelight's 
interest in 
Amherst
Municipal 
interest in 
Saint-
Philémon
Total
January 1, 2023
 
57,927  
(117)  
17,700  
15,314  
8,752  
(2,103)  
97,473 
NCI portion of net income
 
894  
(1,065)  
1,226  
(1,030)  
454  
73  
552 
Dividends declared
 
(2,575)  
(7,339)  
(1,265)  
(723)  
(490)  
(934)  
(13,326) 
Net contributions from NCI
 
—  
12,034  
—  
—  
123  
—  
12,157 
As at December 31, 2023
 
56,246  
3,513  
17,661  
13,561  
8,839  
(2,964)  
96,856 
NCI portion of net income
 
(2,417)  
(115)  
552  
(52)  
645  
247  
(1,140) 
Dividends declared
 
(490)  
(1,269)  
(1,265)  
(756)  
(441)  
(569)  
(4,790) 
Net contributions from NCI
 
—  
465  
—  
— 
 
—  
465 
As at December 31, 2024
 
53,339  
2,594  
16,948  
12,753  
9,043  
(3,286)  
91,391 
(1)
The SFN Projects are comprised of Buffalo Atlee, Michichi, and Kneehill. Refer to note 2.
(2)
Net income is allocated based on pro-rata share of distributions.
(B) 
Summarized Information for Material Partly Owned Subsidiaries
As at
December 31, 2024
Summarized Statements of Financial 
Position
Claresholm
SFN Projects
Goulais
SLGR
Amherst
Saint-
Philémon
Assets
Current
 
6,012  
29,158  
2,649  
29,092  
2,023  
1,711 
Non-current
 
198,708  
144,586  
—  
98,662  
41,025  
34,746 
Liabilities
Current
 
(9,991)  
(4,451)  
(493)  
1,382  
(2,806)  
(3,095) 
Non-current
 
(85,859)  
(105,785)  
(3,649)  
(94,837)  
(19,448)  
(36,013) 
Total equity
 
108,870  
63,508  
(1,493)  
34,299  
20,794  
(2,651) 
Attributable to:
Shareholders of Capstone
 
55,531  
60,914  
(18,441)  
21,546  
11,751  
635 
NCI
 
53,339  
2,594  
16,948  
12,753  
9,043  
(3,286) 
 
108,870  
63,508  
(1,493)  
34,299  
20,794  
(2,651) 
As at
December 31, 2023
Summarized Statements of Financial 
Position
Claresholm
SFN Projects
Goulais
SLGR
Amherst
Saint-
Philémon
Assets
Current
 
12,106  
62,135  
2,147  
26,889  
1,918  
1,241 
Non-current
 
207,059  
128,674  
—  
106,722  
43,512  
38,143 
Liabilities
Current
 
(11,521)  
(15,824)  
(601)  
3,588  
(3,126)  
(2,830) 
Non-current
 
(93,171)  
(112,854)  
(2,833)  
(101,259)  
(21,926)  
(38,677) 
Total equity
 
114,473  
62,131  
(1,287)  
35,940  
20,378  
(2,123) 
Attributable to:
Shareholders of Capstone
 
58,227  
58,618  
(18,948)  
22,379  
11,539  
841 
NCI
 
56,246  
3,513  
17,661  
13,561  
8,839  
(2,964) 
 
114,473  
62,131  
(1,287)  
35,940  
20,378  
(2,123) 
CAPSTONE INFRASTRUCTURE CORPORATION 
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For the year ended
December 31, 2024
Summarized Statements of Income
Claresholm
SFN Projects
Goulais
SLGR
Amherst
Saint-
Philémon
Revenue
 
15,748  
10,654  
3,892  
18,974  
8,133  
8,230 
Net income (loss)
 
(4,932)  
1,100  
1,057  
(106)  
1,316  
503 
Attributable to:
Shareholders of Capstone
 
(2,515)  
1,215  
505  
(54)  
671  
256 
NCI
 
(2,417)  
(115)  
552  
(52)  
645  
247 
 
(4,932)  
1,100  
1,057  
(106)  
1,316  
503 
For the year ended
December 31, 2023
Summarized Statements of Income
Claresholm
SFN Projects
Goulais
SLGR
Amherst
Saint-
Philémon
Revenue
 
24,372  
12,151  
3,072  
17,446  
6,939  
8,023 
Net income (loss)
 
1,496  
3,788  
364  
(2,103)  
925  
149 
Attributable to:
Shareholders of Capstone
 
602  
4,853  
(862)  
(1,073)  
471  
76 
NCI
 
894  
(1,065)  
1,226  
(1,030)  
454  
73 
 
1,496  
3,788  
364  
(2,103)  
925  
149 
For the year ended
December 31, 2024
Summarized Statements of Cash Flows
Claresholm
SFN Projects
Goulais
SLGR
Amherst
Saint-
Philémon
Operating
 
5,976  
6,850  
4,091  
10,783  
4,744  
4,154 
Investing
 
238  
(24,012)  
—  
(932)  
(981)  
(31) 
Financing
 
(8,746)  
(2,677)  
(3,700)  
(8,423)  
(3,414)  
(3,625) 
Net increase / (decrease) in cash and 
equivalents
 
(2,532)  
(19,839)  
391  
1,428  
349  
498 
For the year ended
December 31, 2023
Summarized Statements of Cash Flows
Claresholm
SFN Projects
Goulais
SLGR
Amherst
Saint-
Philémon
Operating
 
11,181  
4,687  
2,617  
9,923  
4,101  
3,738 
Investing
 
(1,382)  
(85,666)  
—  
(225)  
(1,182)  
(13) 
Financing
 
(13,446)  
61,638  
(2,700)  
(9,571)  
(2,969)  
(4,185) 
Net increase / (decrease) in cash and 
equivalents
 
(3,647)  
(19,341)  
(83)  
127  
(50)  
(460) 
NOTE 20.  SHARE-BASED COMPENSATION
Share Appreciation Rights Plan
On April 1, 2017, a share appreciation rights ("SAR") plan was approved by the board. The SAR plan allows up to 15,230,457 
SAR units, or 5% of the number of shares issued, to be granted. At the beginning of 2024 and as at December 31, 2024, there 
were 15,230,457 units outstanding. A SAR unit entitles the holder to the appreciation in value of one unit over a period of time. 
The SAR units have a maximum life of 13 years and vest upon a sale transaction, defined as more than 50% of the equity 
securities of Capstone being sold to a third party. The sale price will determine the ultimate fair value of the SAR units on the 
vesting date. The SAR units will be settled in cash for individuals who meet the vesting conditions on the vesting date. No liability 
has been recorded as a sale transaction is not currently probable.
CAPSTONE INFRASTRUCTURE CORPORATION 
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NOTE 21.  REVENUE BY NATURE
Capstone's power segment generates revenue through long-term power contracts which vary in nature as disaggregated below. 
The corporate activities do not generate revenue.
For the year ended
Dec 31, 2024
Dec 31, 2023
Wind (1), (2)
 
129,605  
117,129 
Solar (2)
 
37,858  
51,970 
Gas (3)
 
28,666  
25,881 
Hydro
 
12,481  
11,156 
Biomass (2)
 
10,665  
32,879 
Total Revenue 
 
219,275  
239,015 
(1)
Wind includes revenue earned during project commissioning at Buffalo Atlee.
(2)
Wind, solar, and biomass facilities include revenue from the generation and sale of electricity at market rates and the sale of emissions offset credits.
(3)
Gas revenue at Cardinal consists of fixed payments for providing capacity and availability based on its PPA and other contracts; the remaining revenue is 
variable based on production.
As at December 31, 2024, Capstone has trade receivable balances of $24,131 (2023 - $33,698).
NOTE 22.  EXPENSES BY NATURE
For the year ended
Dec 31, 2024
Dec 31, 2023
Operating
Admin.
Project 
Development 
Costs
Total
Operating
Admin.
Project 
Development 
Costs
Total
Wages and benefits (1)
 
17,132  
9,161  
3,528  
29,821  
16,209  
7,753  
2,424  
26,386 
Maintenance & supplies
 
23,376  
—  
—  
23,376  
24,177  
—  
—  
24,177 
Property expenses (2)
 
10,226  
472  
517  
11,215  
8,317  
606  
294  
9,217 
Professional fees (3)
 
2,418  
491  
6,568  
9,477  
2,237  
1,131  
4,447  
7,815 
Fuel and transportation
 
8,106  
—  
—  
8,106  
8,809  
—  
—  
8,809 
Insurance
 
4,737  
164  
—  
4,901  
4,295  
156  
—  
4,451 
Power facility administration
 
2,779  
—  
—  
2,779  
2,476  
—  
—  
2,476 
Contract termination costs
 
—  
—  
—  
—  
—  
—  
2,873  
2,873 
Other
 
2,021  
1,682  
963  
4,666  
2,010  
1,685  
1,556  
5,251 
Total
 
70,795  
11,970  
11,576  
94,341  
68,530  
11,331  
11,594  
91,455 
(1)
Wages and benefits include project development direct staff costs. 
(2)
Property expenses include leases, utilities, and property taxes.
(3)
Professional fees include legal, audit, tax and other advisory services. 
NOTE 23.  OTHER GAINS AND LOSSES
For the year ended
Dec 31, 2024
Dec 31, 2023
Changes in derivative financial instruments fair value (1)
 
17,950  
(35,791) 
Losses on debt modification or extinguishment (2)
 
(3,726)  
(4,512) 
Gains (losses) on disposal of capital assets
 
(3,932)  
(921) 
Gain on disposal of PUD
 
2,813  
— 
Other 
 
(1,102)  
(1,432) 
Other gains and (losses), net 
 
12,003  
(42,656) 
(1)
The gain of $17,950 on derivatives includes an increase in the embedded derivatives, which consist of the fuel supply and PPA contracts, partially offset by 
losses from the interest rate swap contracts. Refer to note 7.
(2)
Relates to the CPC revolver financing, which was recorded as a debt extinguishment, and the Wild Rose 2 non-revolving loan. Refer to note 16.
CAPSTONE INFRASTRUCTURE CORPORATION 
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NOTE 24.  COMMITMENTS AND CONTINGENCIES
The Corporation, either directly or indirectly through its subsidiaries, has entered into various contracts and commitments in 
addition to the commitments described in notes 7, 8, 16, and 17 as at December 31, 2024, as follows:
(A) 
Capital Commitments
Capstone enters into capital commitments in the normal course of operations. As part of Capstone's power development 
operations, Capstone enters into various construction and purchase agreements. As at December 31, 2024, Capstone has 
capital purchase obligations of $51,582 for the construction of the Wild Rose 2 wind development project.
(B) 
Power Purchase Agreements
A significant portion of the Corporation's electricity revenue is earned through long-term PPAs. The majority of these contracts 
include terms and conditions customary to the industry. For Cardinal's contract, the nature of commitments is based on the 
contract capacity of the facility. The remaining power facilities are registered as electricity market participants where they deliver 
as generated electricity to the grid for a price specified in the PPA; however, in certain circumstances, if the facility fails to meet 
specific performance requirements, the facility may have financial penalties or the PPA may be terminated after a specified 
period of time. For certain wind projects in development, commitments include availability targets subsequent to achieving COD, 
and security in the form of letters of credit during development.
(C) 
Management Services Agreements
Capstone has agreements with all the partially owned operating wind and solar facilities. These agreements are primarily for the 
provision of management and administration services and are based on an agreed percentage of revenue.
(D) 
Wood Waste Supply Agreement
One of the Whitecourt fuel supply agreements for wood waste includes sharing mechanisms regarding the price received for 
electricity and emissions offset credits sold by Whitecourt.
(E) 
Operations and Maintenance ("O&M") Agreements
Cardinal has a maintenance contract with Siemens Energy Canada Limited covering the gas turbine at Ingredion's 15MW facility.
Capstone has several service and maintenance agreements covering the turbines in operation on various wind facilities. The 
agreements provide for scheduled and unscheduled maintenance and require annual minimum payments, subject to inflationary 
increases, as applicable.
Capstone has an O&M agreement with Regional Power OPCO Inc. ("Regional") to operate and maintain the hydro power 
facilities. Regional is paid a monthly management fee and is eligible for an annual incentive fee.
As at December 31, 2024, Capstone has aggregate purchase commitments of $175,306 for the operation and maintenance of 
various operating facilities and the Wild Rose 2 project.
(F) 
Energy Savings Agreement ("ESA")
Cardinal has an ESA with Ingredion which expires in 2034. Under the terms of the ESA, Cardinal is required to provide O&M 
services in respect of the 15MW plant, and supply steam and compressed air to Ingredion for the use of its manufacturing facility. 
Cardinal entered into a maintenance contract with Siemens Energy Canada Limited in connection with the operation and 
maintenance of the 15MW plant in order to support Cardinal's satisfaction of the O&M terms of the ESA.
(G) 
Guarantees
Capstone has provided certain guarantees relating to the government funding received, as well as limited recourse guarantees 
on the project debt of certain wind and solar projects totaling $66,366 as at December 31, 2024. 
There have been no other significant changes to the specified contractual obligations that are outside the ordinary course of 
business. Capstone is not engaged in any off-balance sheet financing transactions. Due to the nature of their operations, the 
power facilities are not expected to incur material contingent liabilities upon the retirement of assets.
NOTE 25.  RELATED PARTY TRANSACTIONS
(A) 
Shared Service Arrangement with iCON Infrastructure LLP and subsidiaries ("iCON")
 The shared services agreement with iCON Infrastructure North America Inc. ("iCON NA"), a subsidiary of iCON, was terminated 
in 2024, thus Capstone did not earn any fees from iCON NA (2023 - $139). Prior to the termination, fees earned from iCON NA 
under such shared service arrangement were reported in the consolidated statements of income as an administrative expense 
recovery. As at December 31, 2024, accounts receivable due from iCON NA was nil.
(B) 
Contributions and Credit Support from iCON
In the second quarter of 2024, Capstone paid a return of capital of $75,000 in cash to its Class A common shareholder. No cash 
contributions were made by Capstone's Class A common shareholder in 2024 (2023 - $70,000).
CAPSTONE INFRASTRUCTURE CORPORATION 
Page 53

The Class A common shareholder provides letters of credit issued to the benefit of Capstone under a financing and 
reimbursement agreement. Capstone reimburses the common shareholder for payments made on its behalf, including fees and 
draws on the letters of credit. For the year ended December 31, 2024, Capstone reimbursed normal course fees of $1,055 (2023 
- $801). As at December 31, 2024, the balance of outstanding letters of credit is $22,762 to support various operating facilities.
(C) 
Compensation of Key Management
Key management includes the Corporation's directors, Chief Executive Officer ("CEO"), Chief Financial Officer ("CFO"), and 
Chief Operating Officer ("COO"). Compensation awarded to key management consists of salaries, directors' fees, short-term 
employee benefits and long-term incentive plan payments.
Key Management Compensation for the year ended
Dec 31, 2024
Dec 31, 2023
Salaries, directors' fees and short-term employee benefits (1)
 
2,416  
2,324 
 
2,416  
2,324 
(1)
The short-term incentive plan component is based on amounts paid during the year.
NOTE 26.  SEGMENTED INFORMATION
The Corporation’s business has one reportable segment containing the power operations, in order to assess performance and 
allocate capital, as well as the remaining corporate activities. The power operations and corporate activities are all located in 
Canada and the US. Management evaluates performance primarily on revenue, expenses and EBITDA. Projects within the 
power segment have similar economic characteristics based on the nature of the products or services they provide, the 
customers they serve, the method of distributing those products or services and the prevailing regulatory environments.
For the year ended
Dec 31, 2024
Dec 31, 2023
Power
Corporate
Total
Power
Corporate
Total
Revenue
 
219,275  
—  
219,275  
239,015  
—  
239,015 
Expenses
 
(79,337)  
(15,004)  
(94,341)  
(78,367)  
(13,088)  
(91,455) 
EBITDA
 
147,316  
(14,283)  
133,033  
121,423  
(11,357)  
110,066 
Interest expense
 
(49,062)  
—  
(49,062)  
(48,752)  
—  
(48,752) 
Income tax recovery (expense)
 
5,369  
2,153  
7,522  
5,350  
1,816  
7,166 
Net income (loss)
 
6,364  
(12,400)  
(6,036)  
(19,291)  
(9,901)  
(29,192) 
Additions to capital assets, net
 
28,938  
—  
28,938  
24,366  
2,638  
27,004 
Additions to PUD (1)
 
123,006  
—  
123,006  
315,604  
—  
315,604 
(1)
Refer to note 11.
CAPSTONE INFRASTRUCTURE CORPORATION 
Page 54

INVESTOR INFORMATION
Quick Facts
Preferred shares outstanding
 
3,000,000 
Securities exchange and symbols
Toronto Stock Exchange: CSE.PR.A
CONTACT INFORMATION
Address: 
155 Wellington Street West, Suite 2930
Toronto, ON M5V 3H1
www.capstoneinfrastructure.com
Email: info@capstoneinfra.com
Contact:
Megan Hunter
Senior Manager, Communications
Tel: 416-649-1325
Email: mhunter@capstoneinfra.com
CAPSTONE INFRASTRUCTURE CORPORATION 
Page 55