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EDMONTON, Alberta – Capital Power Corporation (“Capital Power”) (TSX:CPX) is pleased to announce that as a result of strong investor demand for its previously announced offering of 6,000,000 Cumulative Rate Reset Preference Shares, Series 5 (the “Series 5 Shares”), the underwriters have exercised their option to purchase an additional 2,000,000 Series 5 Shares at a price of $25.00 per share. Capital Power will receive additional gross proceeds of $50,000,000 from the exercise of the option, increasing the total size of the offering to $200,000,000. The anticipated closing date of March 14, 2013 for the offering, including the issuance of the additional 2,000,000 Series 5 Shares, remains unchanged.

The 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 of 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.

All forward-looking information or statements reflect Capital Power’s 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. Readers are cautioned not to place undue reliance on this forward-looking information. Capital Power undertakes no obligation to update or revise any forward-looking information except as required by law. For additional information on the assumptions made, and the risks and uncertainties which could cause actual results to differ from the anticipated results, refer to Capital Power’s Management’s Discussion and Analysis dated and filed March 1, 2013 under Capital Power’s profile on SEDAR at www.sedar.com and other reports filed by Capital Power with Canadian securities regulators.