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NOT FOR DISSEMINATION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

EDMONTON, Alberta – Capital Power Corporation (TSX: CPX) (“Capital Power”) and EPCOR Utilities Inc. (“EPCOR”) announced today that the underwriters of the recent offering by EPCOR of common shares of Capital Power have exercised their over-allotment option and acquired an additional 875,000 common shares of Capital Power at a price of $24.00 per common share.  The over-allotment option relates to the offering by EPCOR of 8,334,000 common shares of Capital Power which was completed on December 14, 2010.  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 9,209,000 for total gross proceeds of approximately $221 million.

EPCOR currently indirectly owns approximately 60.5% of the common shares of Capital Power, on a fully diluted basis, which it intends to sell as its demands for capital require and market conditions permit.

Forward-Looking Information
Certain information in this news release relating to EPCOR is forward-looking and related to anticipated events and strategies. When used in this context, words such as “will”, “anticipate”, “believe”, “plan”, “intend”, “target” and “expect” or similar words suggest future outcomes. By their nature, such statements are subject to significant risks and uncertainties, which include, but are not limited to, regulatory and government decisions, economic conditions, and availability and cost of financing.

Readers are cautioned not to place undue reliance on forward-looking statements as actual results could differ materially from the plans, expectations, estimates or intentions expressed in the forward-looking statements. Except as required by law, EPCOR disclaims any intention and assumes no obligation to update any forward-looking statement even if new information becomes available, as a result of future events or for any other reason.

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 one of North America’s most respected, reliable and competitive power generators. Headquartered in Edmonton, Alberta, Capital Power has interests in 32 facilities in Canada and the U.S. totalling nearly 3,800 megawatts of generation capacity. Capital Power and its subsidiaries develop, acquire and optimize power generation from a wide range of energy sources.

About EPCOR Utilities Inc.
EPCOR’s wholly owned subsidiaries build, own and operate electrical transmission and
distribution networks, water and wastewater treatment facilities and infrastructure. EPCOR, headquartered in Edmonton, Alberta, is an Alberta Top 50 employer.