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## OUR PLATFORMS AND PERFORMANCE DRIVERS 

## Power 

Our power platform includes gas cogeneration, wind, hydro, biomass and solar power generation facilities in Canada, totalling approximately 439 net megawatts of installed capacity. We are also developing a pipeline of wind power projects totalling an expected 79 net megawatts of capacity. The operating facilities and development projects have power purchase agreements with creditworthy customers. See Figure 1. 

The key performance drivers for the power platform in 2014 are to: 

• Achieve consistently high availability to help maximize production. See Figure 2. 

• Maintain or improve the quality of each facility by focusing on routine and preventive maintenance and implementing technological and operational enhancements. See Figure 3. 

• Efficiently manage operating costs at each facility. 

• Complete the Skyway 8 and Saint-Philémon wind power development projects on time and on budget and advance the balance of the project pipeline. 

• Operate facilities safely with a goal of zero lost-time injuries. 

## Figure 1: Counterparty Credit Ratings 

<img src='content_image/259533.jpg'>

## Utilities 

## Figure 2: Consistently High Availability 

<img src='content_image/259532.jpg'>

(1) Includes Erie Shores and the operating wind power facilities acquired from ReD on October 1, 2013. 

(2) Amherstburg commenced operations in June 2011. 

## Figure 3: Enhancing Cash Flow at Erie Shores 

<img src='content_image/259534.jpg'>

In 2013, Erie Shores installed WindBOOST, a turbine control system that helps to increase annual energy output, thereby increasing revenue. 

Capstone’s utilities platform currently includes interests in a regulated water utility and a district heating business. 

## Water 

We hold a 50% equity interest in Bristol Water, a regulated business in the United Kingdom that earns a return on its regulated capital value (“RCV”), or asset base. Bristol Water is the sole water supplier in the Bristol region, serving a population of more than 1.1 million people. 

Bristol Water is currently executing a significant capital program aimed at maintaining and improving Bristol Water’s infrastructure and operations while continuing to meet water quality requirements and support growth arising from an increasing population and expanded business activity in the region. This program will drive growth in Bristol Water’s RCV, which over time will increase the cash flow we receive from this investment and its overall value for Capstone’s shareholders. 

The key performance drivers for Bristol Water in 2014 are to: 

• Provide safe, reliable drinking water that is cost-effective for customers. 

• Operate in compliance with all regulatory and environmental requirements. See Figure 3. 

• Operate efficiently to manage costs. 

• Execute the company’s approximately $520 million regulator-approved capital expenditure program for the current regulatory period, resulting in RCV growth. 

In addition, a key focus for 2014 is working with Bristol Water's management to bring the Price Review 14 (“PR14”) process to a satisfactory regulatory conclusion. The PR14 outcome will establish the company’s business plan for the next five-year regulatory period (“AMP6”). 

