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## Adjusted EBITDA 

Capital Power uses adjusted EBITDA to measure the operating performance of plants and categories of plants from period to period. For previously reported periods prior to the three months ended December 31, 2011, the Company defined EBITDA as earnings before finance expense, income tax expense and depreciation and amortization. Commencing with the Company’s December 31, 2011 year-end, adjusted EBITDA was defined to also exclude impairments, foreign exchange losses and gains on disposals. Management believes that EBITDA, as a measure of plant operating performance, is more meaningful if results not related to plant operations such as impairments, foreign exchange losses and gains on disposals are excluded from the adjusted EBITDA measure. All comparative EBITDA amounts for quarters prior to those ended on December 31, 2011 were revised to reflect this change. A reconciliation of adjusted EBITDA to net income is as follows: 

<img src='content_image/262070.jpg'>

