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EDMONTON, Alberta – The Board of Directors for Capital Power Corporation (TSX: CPX) (Capital Power) has declared two cash dividends, an “eligible” and an “ineligible dividend”, totalling $0.315 per share on the outstanding common shares for the quarter ending December 31, 2011. The one-time payment of the ineligible dividend is a result of the sale of the entity that held Capital Power’s investment in Capital Power Income L.P. (TSX: CPA.UN), that was sold to Atlantic Power Corporation on November 5, 2011. Future dividend payments are expected to be eligible dividends.

The dividends are payable on January 31, 2012 to shareholders of record at the close of business on December 31, 2011. The amount of the eligible dividend will be posted on the Company’s website in January, 2012.

About Capital Power
Capital Power (CPX:TSX) is a growth-oriented North American power producer headquartered in Edmonton, Alberta. The company develops, acquires, operates and optimizes power generation from a variety of energy sources.  Capital Power owns more than 3,300 megawatts of power generation capacity at 16 facilities across North America. An additional 487 megawatts of owned wind generation capacity is under construction or in advanced development in British Columbia, Alberta, and Ontario.

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. By their nature, such statements are subject to significant risk, assumptions and uncertainties, which could cause Capital Power’s actual results and experience to be materially different than the anticipated results.

Forward-looking information in this press release includes, among other things, information relating to: (i) future dividend payments are expected to be eligible dividends.

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 forward-looking statements include, but are not limited to: (i) management’s analysis of applicable tax legislation; (ii) currently applicable and proposed tax laws will not change and will be implemented; (iii) ability to successfully integrate and realize benefits of its acquisitions, investments and divestitures; (iv) the Company’s assessment of capital markets, common share ownership distribution, forms of future share and debt offerings, organization of its corporate structure, and changes to any of the foregoing.

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) regulatory and government decisions including changes to tax legislation; (ii) availability and forms of financing; (iii) developments in the North American capital markets; (iv) ability to successfully realize the benefits of acquisitions, investments and divestitures; (v) the tax attributes of and implications of any acquisitions; and (vi) changes with respect to the Company’s common share ownership distribution or organization of its corporate structure (. 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.