June 15, 2011

Capital Power L.P. completes US$295 million private placement of senior notes

EDMONTON, Alberta – June 15, 2011 – Capital Power L.P., the legal entity that directly and indirectly holds substantially all of Capital Power Corporation’s assets (TSX: CPX) announced today that its indirect subsidiary, Capital Power U.S. Financing LP (“the Issuer”), has closed a US$295 million private placement of senior notes. The net proceeds from the transaction will primarily be used to fund growth initiatives including the recent acquisitions of three New England facilities and for general corporate purposes.

The senior notes consist of two notes with 10 and 15-year terms. The 10-year senior note has a principal amount of US$230 million that matures in May 2021 with a coupon rate of 5.21%. The 15-year senior note has a US$65 million principal amount and matures in May 2026 with a coupon rate of 5.61%.

“This US dollar private placement supports our long-term debt financing for our recent New England acquisitions,” said Stuart Lee, Senior Vice President & CFO. “The transaction improves the company’s financial flexibility and further extends the debt maturity profile. In addition, the US dollar-denominated debt will act as a natural foreign exchange hedge to the US dollar cash flows generated from these facilities.”

Bank of America Merrill Lynch was the sole financial institution that led the private placement.

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. Capital Power is headquartered in Edmonton, Alberta. Following the close of its recently announced New England acquisitions, Capital Power will have interests in 34 facilities in Canada and the U.S. totaling nearly 4,900 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.