---

EDMONTON, Alberta – December 3, 2009 – Capital Power Corporation (TSX: CPX) (Capital Power) will be hosting its first annual Investor Day event in Toronto at the TMX Broadcast Centre starting at 9:00 am Eastern Time today, where its executive leadership team will provide investors with a comprehensive review of its operations, strategy, and outlook. The event can be accessed through a webcast that will be available on the company’s website.

“Capital Power is moving ahead with its strategy of growing its business through a mix of long-term contracted and merchant assets,” said Brian Vaasjo, President and CEO of Capital Power. “We have a strong pipeline of ongoing development projects that are being executed by experienced and successful teams. In addition, with our strong balance sheet, we’re well positioned to respond to emerging opportunities in North America’s power markets.”

Corporate Updates

Capital Power is announcing progress on new power generation projects in Canada, including advances on 243 megawatts (MW) of gas fired power and over 500 MWs of proposed wind generation. These projects include:

• The final 100 MW unit at the Clover Bar Energy Centre is currently in commissioning, which is expected to bring the 243 MW facility to full capacity in December 2009. Months ahead of schedule and $5 million lower than earlier estimates. The facility includes a 43.3 MW General Electric LM 6000 turbine (COD, March 2008) and two 100 MW LMS 100 turbines (COD, September 2009 and December 2009).
• Up to 380 MWs of wind power has been bid into the Ontario Power Authority’s Feed-in-Tariff (FIT) program from two proposed projects: the 270 MW Kingsbridge 2 Wind Power Project in the Township of Ashfield-Colborne-Wawanosh, and the 100 to 110 MW Port Dover and Nanticoke Wind Project (PDN). Capital Power acquired the PDN wind project from Tribute Resources Inc (TSX-V: TRB) in late November.
• The 142 MW Quality Wind Project has advanced to the next stage of the BC Hydro Clean Power Call. BC Hydro announced that 47 proposals are continuing in the process and may qualify for an electricity purchase agreement.
• Capital Power continues to assess business opportunities in the both the United States and Canada.

Outlook for 2010

Earnings per share (EPS) in 2010 is expected to be roughly in line with 2009 (annualized) EPS excluding mark-to-market gains or losses and the gain from the sale of Battle River power purchase arrangement (PPA). The significant items expected to impact 2010 results compared to 2009 include:

• Sale of remaining 15 per cent interest of Battle River PPA in January, 2010
• Two scheduled maintenance outages for Genesee 2 and 3 facilities versus one scheduled outage for Genesee 1 in 2009
• No significant transition costs in 2010 for reorganization
• Over 90 per cent of Alberta commercial portfolio hedged in 2010
• Full year contributions from commissioning of Clover Bar units 2 and 3 in September and December, 2009

At the end of September 2009, Capital Power had approximately $750 million invested in ongoing construction projects, representing over 25 per cent of its enterprise value. Significant cash flow upside is expected in 2011 when the Keephills 3 facility comes on line. The Company also has capacity on its balance sheet to fund developments and moderate sized acquisitions. Currently, the company’s debt-to-total capitalization ratio is 35 per cent, which is amongst the lowest in its peer group.

Mr. Vaasjo added, “Looking ahead, as the economy begins to recover, Alberta power prices are expected to be amongst the first to recover in North America, based on the supply/demand balance. As the most highly levered company to Alberta power prices, we expect to benefit materially. The addition of the Clover Bar and Keephills 3 facilities will also provide significant upside as Alberta power prices recover.”

Webcast

The general public are invited to listen to the live audio webcast of the investor day event. The webcast and presentation slides for the investor day event will be accessible on the company’s website at https://www.capitalpower.com/.

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. 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 3,400 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 https://www.capitalpower.com/.

Forward-looking Information

Certain information in this press release is forward-looking within the meaning of Canadian securities laws as it relates to anticipated financial performance, events or strategies. When used in this context, words such as will, anticipate, believe, plan, intend, target, and expect or similar words suggest future outcomes.

Forward-looking information in this press release includes, among other things, information relating to: (i) expectations regarding total project costs of Clover Bar Energy Centre Unit 3; (ii) expectations regarding the electricity market in Alberta; (iii) expectation regarding the timing of the sale of Battle River PPA and its impact on the Company; (iv) expectations regarding the availability of growth development and acquisition opportunities and their financing, (v) the strategy of growing the company’s business through a mix of long-term contracted and merchant assets; (vi) the expected impact of Clover Bar and Keephills 3 coming on line; (vii) expectation regarding the hedge position of the Alberta commercial portfolio; (viii) expectation regarding the impact on the Company of changes in power prices; (ix) expectation that there will be two maintenance outages in 2010 at the Genesee site and that they will reduce operating margin; and (x) the expectation of significant cash flow in 2011 when Keephills 3 comes on line; (xi) the expectation that earnings per share in 2010 will be roughly in line with 2009 (annualized) earnings per share excluding mark-to-market gains/losses and Battle River PPA gain.

These statements are based on certain assumptions and analyses made by the Company in light of its experience and perception of historical trends, current conditions and expected future developments and other factors it believes are appropriate. The material factors and assumptions used to develop these forwardlooking statements include, but are not limited to: (i) the operation of the Company’s facilities; (ii) power plant availability, including those subject to acquired PPAs; (iii) the Company’s financial position and credit facilities; (iv) the Company’s assessment of commodity and power markets; (v) the Company’s assessment of the markets and regulatory environments in which it operates; (vi) weather; (vii) availability and cost of labour and management resources; (viii) performance of contractors and suppliers; (ix) availability and cost of financing; (x) foreign exchange rates; (xi) management’s analysis of applicable tax legislation; (xii) that currently applicable and proposed tax laws will not change and will be implemented; (xiii) currently applicable and proposed environmental regulations will be implemented; (xiv) counterparties will perform their obligations; (xv) renewal and terms of PPAs; (xvi) ability to successfully integrate and realize benefits of its acquisitions; (xvii) ability to implement strategic initiatives which will yield the expected benefits; and (xviii) the Company’s assessment of capital markets and ability to complete future share offerings.

Whether actual results, performance or achievements will conform to the Company’s expectations and predictions is subject to a number of known and unknown risks and uncertainties which could cause actual results and experience to differ materially from the Company’s expectations. Such risks and uncertainties include, but are not limited to risks relating to: (i) operation of the Company’s facilities; (ii) power plant availability and performance; (iii) unanticipated maintenance and other expenditures; (iv) availability and price of energy commodities; (v) electricity load settlement; (vi) regulatory and government decisions including changes to environmental, financial reporting and tax legislation; (vii) weather and economic conditions; (viii) competitive pressures; (ix) construction; (x) availability and cost of financing; (xi) foreign exchange; (xii) availability and cost of labour, equipment and management resources; (xiii) performance of counterparties, partners, contractors and suppliers in fulfilling their obligations to the Company; (xiv) developments in the North American capital markets; (xv) compliance with financial covenants; (xvi) ability to identify and successfully realize the benefits of acquisitions and investments; (xvii) the tax attributes of and implications of any acquisitions; and (xviii) other factors and assumptions discussed in the section entitled Risk Factors in other documents filed with provincial securities commissions in Canada. If any such risks actually occur, they could materially adversely affect the Company’s business, financial condition or results of operations. In that case the trading price of the Company’s common shares could decline, perhaps materially.

Readers are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the date made. Forward-looking statements are provided for the purpose of providing information about management’s current expectations, and plans relating to the future. Readers are cautioned that such information may not be appropriate for other purposes. The Company does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in the Company’s expectations or any change in events, conditions or circumstances on which any such statement is based, except as required by law.