Capstone Infrastructure Corporation Provides 2015 Outlook - Seite 2

Capstone's operating portfolio along with its strong liquidity will support the $0.30 per share dividend. The Corporation has no plans to change its dividend policy. Management's expectation is that Capstone will achieve its target Adjusted Funds from Operations ("AFFO")² payout ratio of 80% with the development of the Corporation's medium-term wind projects, and other initiatives that impact AFFO, in 2017 or before.

The assumptions underlying the Corporation's 2015 outlook include but are not limited to:

• Cardinal operates as a dispatchable facility under the incoming 20-year contract with the Ontario Power Authority;
• That existing water rates at Bristol Water will remain in place for the first quarter, until the AMP6 final determination takes effect on April 1, 2015, reducing rates by 14% (real) for the remainder of the year;
• Full year of contributions from the newly completed Skyway 8 Wind Farm;
• Contribution from the Saint-Philémon and Goulais wind projects, expected to reach commercial operations in January and April of 2015 respectively;
• Whitecourt generates $3 million in Adjusted EBITDA based on projected Alberta power pool prices and successfully working with stakeholders;
• That the Swedish krona to Canadian dollar and British pound to Canadian dollar exchange rates remain consistent with recent rates.

Bristol Water

The Corporation also provided an overview of the final determination for the AMP6 period, issued on December 12, 2014 by Ofwat. The Corporation holds a 50% interest in Bristol Water.

Highlights of the differences between the final determination for AMP6, which commences on April 1, 2015 and concludes on March 31, 2020, and Bristol Water's proposed plan include:

• Total expenditure of £409 million, compared with Bristol Water's proposal of ~£500 million (excluding new reservoir);
• A phased-in 21% real reduction in customer rates, compared with Bristol Water's proposed 4.5% real reduction;
• Weighted average cost of capital of 3.6%, in contrast to Bristol Water's proposal of 4.4%.

"The final determination is not the outcome Bristol Water had sought in the extensively vetted and diligently prepared business plan it submitted, which was developed in consultation with its customers, 92% of whom viewed the plan as favourable," said Mr. Bernstein. "The decision of whether to reject Ofwat's final determination and have the matter referred to the CMA for a binding review will be reached among the Board of Directors of Bristol Water, the management team and the owners, including Capstone. However, our view is that the final determination is based on a methodology that did not factor in Bristol Water's unique attributes, lacked consistency with previous decisions and analysis, and did not adequately reflect the wishes of Bristol Water's customers. Regardless of the final determination, Bristol Water remains a well-run company, delivering high quality drinking water to more than a million customers, while providing good service for good value."