July 22, 2011

Capital Power announces closing of exercise of over-allotment option

New casino games – Capital Power Corporation (TSX: CPX) (“Capital Power”) announced today that it has closed the issuance of an additional 1,200,000 common shares at a price of $25.10 pursuant to the exercise of the over-allotment option granted to a syndicate of underwriters led by TD Securities Inc. and RBC Capital Markets. The closing of the exercise of the over-allotment options brings the total number of common shares of Capital Power purchased by the underwriters to 9,200,000 for total gross proceeds of approximately $231 million.

With the additional common shares from the exercise of the over-allotment option, Capital Power’s total New online casinosnumber of common shares, on a fully diluted basis, is 97,061,213 in which EPCOR Utilities Inc. has a 48.9% indirect ownership.

The common shares have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from registration requirements. This news release does not constitute an offer to sell or the solicitation New casino sitesof an offer to buy any security, and shall not constitute an offer, solicitation or sale of the securities in any state in which such offer, solicitation or sale would be unlawful.

About Capital Power Corporation
Capital Power is a growth-oriented North American independent power producer, building on more than a century of innovation and reliable performance. Capital Power’s vision is to be recognized as one of North America’s most respected, reliable and competitive power generators. Headquartered in Edmonton, Alberta, Capital Power has interests in 34 facilities in Canada and the U.S. totaling nearly 4,900 megawatts of generation capacity. Capital Power and its subsidiaries develop, acquire and optimize power generation from a wide range of energy sources.