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EDMONTON, Alberta – March 8, 2011 – The Board of Directors for Capital Power Corporation (TSX: CPX) (Capital Power) announced today the declaration for the initial quarterly dividend of $0.3308 per share on its Cumulative Rate Reset Preference Shares (Series 1) (TSX:CPX.PR.A).

The dividend is to be paid on March 31, 2011 to shareholders of record at the close of business on March 18, 2011. This initial quarterly dividend represents the time period from when the initial share offering closed on December 16, 2010 to March 31, 2011.  Future quarterly dividends, if declared, will be $0.2875 per quarter or $1.15 per annum for the initial five-year period ending December 31, 2015.

The dividends are 100 per cent eligible dividends as defined by the Income Tax Act. Under this legislation, individuals resident in Canada may be entitled to enhanced dividend tax credits that reduce the income tax otherwise payable on these dividends.

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 32 facilities in Canada and the U.S. totaling 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. The company’s web site can be accessed at www.capitalpower.com.