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​EDMONTON, Alberta – Capital Power Corporation (TSX: CPX) (“Capital Power” or “the Company”) announced today that it has completed the second tranche payment of approximately $325 million to ENMAX Corporation (“ENMAX”) for the remaining 25% ownership interest in the Shepard Energy Centre (“Shepard”) and now holds a 50% ownership interest in Shepard. Capital Power initially paid $237 million for the first tranche payment in February 2013 when it acquired a 25% interest in the Shepard facility.

“By using our existing credit facilities to finance the second tranche payment ahead of its due date in the first quarter of 2014, we will realize interest cost savings on the Shepard project,” said Stuart Lee, Senior Vice-President and Chief Financial Officer for Capital Power. “The interest rate on our credit facilities is lower than the interest rate stipulated in the contract during the construction phase.”

“Last month, we announced an agreement with Emera Inc. on the sale of our New England assets for US$541 million. We plan on repaying the amount drawn on the credit facility from the proceeds of the asset sale transaction, which is expected to close in the fourth quarter of 2013,” said Mr. Lee.

Capital Power and ENMAX have a joint venture agreement to build, own and operate the 800 megawatt Shepard facility, which is currently under construction and expected to begin commercial operations in early 2015.  Shepard will be a natural gas combined cycle facility located on the southeast edge of Calgary, Alberta.

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 material risks and uncertainties are: (i) changes in electricity prices in markets in which the Company operates, (ii) changes in commodity prices in markets in which the Company operates and use of derivatives, (iii) regulatory and political environments including changes to environmental, financial reporting and tax legislation, (iv) power plant availability and performance including maintenance expenditures, (v) ability to fund current and future capital and working capital needs, (vi) acquisitions and developments including timing and costs of regulatory approvals and construction, (vii) changes in market prices and availability of fuel, and (viii) changes in general economic and competitive conditions. See “Risks and Risk Management” in the Company’s December 31, 2012 annual Management’s Discussion and Analysis for further discussion of these and other risks.