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EDMONTON, Alberta – July 17, 2009 – The Board of Directors for Capital Power Corporation (TSX: CPX) (Capital Power) declared a dividend of $0.315 per share on the outstanding common shares for the quarter ending September 30, 2009. This dividend declaration follows the completion of Capital Power’s $500 million initial public offering on July 9, 2009.

“I’m pleased to announce the declaration of Capital Power’s first dividend,” said Brian Vaasjo, President and CEO of Capital Power. “The dividend reaffirms Management’s and the Board’s confidence in the cash flow and value of Capital Power.  By maintaining our strong investment grade credit ratings and having good access to the capital markets, we expect to execute on our vision of becoming one of the most respected, reliable and competitive power generation companies in North America.”

The dividend is payable on October 30, 2009 to shareholders of record at the close of business on September 30, 2009.

About Capital Power

Capital Power is a growth-oriented North American independent power producer, building on more than a century of innovation and reliable performance. The company’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 31 facilities in Canada and the U.S. totaling approximately 3,300 megawatts of generation capacity. Capital Power and its subsidiaries develop, acquire and optimize power generation from a wide range of energy sources. The company’s web site can be accessed at www.capitalpower.com.