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UNITED STATES

SECURITIES AND
EXCHANGE COMMISSION

Washington, DC 20549

FORM 10-QSB



QUARTERLY REPORT UNDER
SECTION 13 OR 15(f) OF THE SECURITIES EXCHANGE ACT

OF 1934 FOR THE
QUARTERLY PERIOD ENDED SEPTEMBER 30, 2005



Commission file number
333-62588



First National Power
Corporation

#219, 227 Bellevue Way
NE

Bellevue, WA 98004

416-918-6987



IRS TAX ID #
66-0349372

State of
Incorporation: Delaware

Check whether the issuer (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such
shorter period that the registrant was required to file such reports), and (2)
has been subject to such filing requirements for the past 90 days. Yes [X] No [
]

Indicate by check mark whether the registrant is a shell company (as defined
in Rule 12b-2 of the Exchange Act) Yes [X] No [ ]

As of September 30, 2005, there were 75,810,227 shares issued and outstanding
of the issuer's common stock.

PART I: FINANCIAL INFORMATION

Item 1. Financial Statements:

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FIRST NATIONAL POWER
CORPORATION





INTERIM FINANCIAL STATEMENTS

September 30, 2005

(Amounts expressed in US Dollars)

(Unaudited)

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FIRST NATIONAL POWER
CORPORATION



TABLE OF CONTENTS

Interim Balance Sheets as of September 30,
2005 and December 31, 2004                                        
1

Interim Statements of Operations for the nine
month period endedSeptember 30, 2005 and September 30, 2004                                                                                  
2

Interim Statements of Operations
for the three month period endedSeptember 30, 2005 and September 30,
2004                                                                                  
3

Interim Statements of Cash Flows
for the nine month period endedSeptember 30, 2005 and September 30,
2004                                                                                  
4

Interim Statements of Changes
in Stockholders' Deficiency for thenine month period ended September
30, 2005 and the year ended December 31, 2004                        
5

Condensed Notes to Interim
Financial Statements                                                                            
6

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FIRST NATIONAL POWER
CORPORATION



|                                                  | September 30, 2005 |  | December 31, 2004
|------------------------------------------------- | ------------------ |  | -----------------
|                                                  | $                  |  | $                
|ASSETS                                            |                    |  |                  
|CURRENT ASSETS                                    |                    |  |                  
|                                                  |                    |  |                  
|Cash                                              | 56                 |  | 8,645            
|Prepaid expenses and deposits                     |                    |  | 1,500            
|                                                  | 56                 |  | 10,145           
|LIABILITIES                                       |                    | 
|CURRENT LIABILITIES                               |                    |  |                  
|Accounts payable and accrued liabilities          | 13,046             |  | 19,821           
|Loans from shareholders                           | 27,505             |  | 20,581           
|                                                  | 40,551             |  | 40,402           
|                                                  |                    |  |                  
|                                                  |                    |  |                  
|STOCKHOLDERS' DEFICIENCY                          |                    |  |                  
|CAPITAL STOCK                                     | 75,968             |  | 75,448           
|CAPITAL STOCK SUBSCRIBED                          | 146                |  | 146              
|ADDITIONAL PAID-IN-CAPITAL                        | 297,446            |  | 127,777          
|DEFICIT, ACCUMULATED DURING THE DEVELOPMENT STAGE | (414,055)          |  | (233,628)        
|                                                  | (40,495)           |  | (30,257)         
|                                                  | 56                 |  | 10,145           

See condensed notes to the interim financial statements.

|APPROVED ON BEHALF OF THE BOARD |         
|------------------------------- | --------
|                                | Director
|                                | Director

1

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FIRST NATIONAL POWER
CORPORATION

(Formerly Capstone International Corporation)
(A Development Stage Company)Interim Statements of Operations
For the nine month periods ended September 30, 2005 and September 30, 2004
(Amounts expressed in US Dollars)
(Unaudited)



|                                           | Nine months  |  | Nine months 
|------------------------------------------ | ------------ |  | ------------
|                                           | ended        |  | ended       
|                                           | September 30 |  | September 30
|                                           | 2005         |  | 2004        
|                                           | $            |  | $           
|OPERATING EXPENSES                         |              |  |             
|                                           |              |  |             
|General and administrative expenses        | 52,522       |  | 51,563      
|Project development costs                  | 128,000      |  | 36,000      
|Interest                                   | (95)         |  | 589         
|                                           | 180,427      |  | 88,152      
|                                           |              |  |             
|NET LOSS                                   | (180,427)    |  | (88,152)    
|                                           |              |  |             
|Net loss per share, basic and diluted      | $ (0.00)     |  | $ (0.00)    
|                                           |              |  |             
|Weighted average common shares outstanding | 75,810,227   |  | 75,396,424  





See condensed notes to the interim financial statements.

2

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FIRST NATIONAL POWER
CORPORATION



(A Development Stage Company)

Interim
Statements of Operations

For the three month periods ended September 30, 2005
and September 30, 2004

(Amounts expressed in US Dollars)

(Unaudited)



|Cumulative                                        |  | Three Mont | hs        | Three Mont | hs      
|------------------------------------------------- |  | ---------- | --------- | ---------- | --------
|Since                                             |  |            | ended     |            | ended   
|Inception                                         |  | September  | 30, 2005  | September  | 30, 2004
|$                                                 |  |            | $         |            |         
|OPERATING EXPENSES                                |  |            |           |            |         
|Forgiveness of accounts payable and loans         |  |            | (47,394)  |            |         
|General and
    administrative expenses           |  | 279,130    |           |            | 5,620   
|Project
    Development Costs                     |  | 179,351    |           |            | -       
|Interest                                          |  |            | 2,968     |            |         
|                                                  |  |            | 414,055   |            |         
|                                                  |  |            |           |            |         
|NET LOSS                                          |  |            | (414,055) |            |         
|                                                  |  |            |           |            |         
|Net loss per share, basic and
    diluted         |  |            |           | $          |         
|                                                  |  |            |           |            |         
|Weighted Average of Common shares
    outstanding |  |            |           | 75,947,260 |         

See condensed notes to the interim financial statements.

3

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FIRST NATIONAL POWER
CORPORATION



(A Development Stage Company)

Interim
Statements of Cash Flows

For the nine month periods ended September 30, 2005
and September 30, 2004

(Amounts expressed in US Dollars)

(Unaudited)



|Cumulative                                |           | Nine Months        |           | Nine Months       
|----------------------------------------- | --------- | ------------------ | --------- | ------------------
|Since                                     |           | ended              |           | ended             
|Inception                                 |           | September 30, 2005 |           | September 30, 2004
|$                                         |           | $                  |           | $                 
|CASH FLOWS FROM OPERATING ACTIVITIES      |           |                    |           |                   
|                                          |           |                    |           |                   
|Net loss                                  | (414,055) |                    | (180,427) |                   
|Adjustments for items not affecting cash  |           |                    |           |                   
|Shares issued for services rendered       | 276,089   |                    | 170,189   |                   
|Forgiveness of accounts payable and loans | (47,394)  |                    |           |                   
|Decrease (Increase) in prepaid expenses   | -         |                    | 1,500     |                   
|Increase (decrease) in accounts payable   |           |                    |           |                   
|and accrued liabilities                   | 17,046    |                    | (6,775)   |                   
|Net cash used in operating activities     | (168,314) |                    | (15,513)  |                   
|CASH
    FLOWS FROM FINANCING ACTIVITIES  |           |                    |           |                   
|                                          |           |                    |           |                   
|Loans from Shareholders                   | 70,899    |                    | 6,924     |                   
|Proceeds from sale of capital stock       | 26,954    |                    | -         |                   
|Proceeds from capital stock subscriptions | 70,517    |                    |           |                   
|                                          |           |                    |           |                   
|Net cash provided by financing activities | 168,370   |                    | 6,924     |                   
|                                          |           |                    |           |                   
|NET
    INCREASE IN CASH                  | 56        |                    | (8,589)   |                   
|                                          |           |                    |           |                   
|Cash, beginning of period                 | -         |                    | 8,645     |                   
|                                          |           |                    |           |                   
|CASH, END OF
    PERIOD                   | 56        |                    | 56        |                   
|                                          |           |                    |           |                   
|INCOME TAXES
    PAID                     | -         |                    | -         |                   
|                                          |           |                    |           |                   
|INTEREST PAID                             | 3,063     |                    | -         |                   

See condensed notes to the interim financial statements.

4

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FIRST NATIONAL POWER
CORPORATION

(Formerly Capstone
International Corporation)

(A Development Stage
Company)

Interim Statements of
Changes in Stockholders'
Deficiency

For the nine month
period ended September 30, 2005 and the year ended December 31, 2004

(Amounts expressed in
US Dollars)

(Unaudited)



|                                                      |         |  |                 |  |            |  |             |  | Deficit    
|----------------------------------------------------- | ------- |  | --------------- |  | ---------- |  | ----------- |  | -----------
|                                                      |         |  | Common          |  |            |  | Additional  |  | accumulated
|                                                      | Common  |  | Stock           |  | Common     |  | Paid-In     |  | during the 
|                                                      | Stock   |  | Number of       |  | Stock      |  | Capital     |  | development
|                                                      | Amount  |  | Shares          |  | Subscribed |  | (Discount)  |  | stage      
|                                                      | $       |  |                 |  | $          |  | $           |  | $          
|Balance
    at November 16, 2000                      |         |  |                 |  |            |  |             | 
|Issuance of common stock for cash                     | 100     |  | 100,000         |  |            |  | 900         |  |            
|Net Loss for the Period                               |         |  |                 |  |            |  |             |  | (968)      
|                                                      |         |  |                 |  |            |  |             |  |            
|Balance as of December 31, 2000                       | 100     |  | 100,000         |  | -          |  | 900         |  | (968)      
|                                                      |         |  |                 |  |            |  |             |  |            
|Issuance of stock for cash                            | 400     |  | 400,000         |  |            |  | 3,600       |  |            
|Issuance of stock for cash Issuance of stock for cash | 700 850 |  | 700,000 850,000 |  |            |  | 6,300 7,650 |  |            
|Currency Translation                                  |         |  |                 |  |            |  | 100         |  |            
|Net Loss for the Year                                 |         |  |                 |  |            |  |             |  | (23,954)   
|                                                      |         |  |                 |  |            |  |             |  |            
|Balance as of
    December 31, 2001                   | 2,050   |  | 2,050,000       |  | -          |  | 18,550      |  | (24,922)   
|                                                      |         |  |                 |  |            |  |             |  |            
|Expiration of recission offer for                     |         |  |                 |  |            |  |             |  |            
|sale of stock                                         | 64      |  | 63,536          |  |            |  | 6,290       |  |            
|Net Loss for the Year                                 |         |  |                 |  |            |  |             |  | (26,047)   
|                                                      |         |  |                 |  |            |  |             |  |            
|Balance as of
    December 31, 2002                   | 2,114   |  | 2,113,536       |  | -          |  | 24,840      |  | (50,969)   
|                                                      |         |  |                 |  |            |  |             |  |            
|Stock split 5:1                                       | 8,454   |  | 8,454,144       |  |            |  | (8,454)     |  |            
|Shares issued for services rendered                   | 200     |  | 200,000         |  |            |  | 79,800      |  |            
|Net Loss for the Year                                 |         |  |                 |  |            |  |             |  | (107,245)  
|                                                      |         |  |                 |  |            |  |             |  |            
|Balance as of
    December 31, 2003                   | 10,768  |  | 10,767,680      |  | -          |  | 96,186      |  | (158,214)  
|                                                      |         |  |                 |  |            |  |             |  |            
|Stock split 7:1                                       | 64,606  |  | 64,606,080      |  |            |  | (64,606)    |  |            
|Shares issued for services rendered                   | 30      |  | 30,000          |  |            |  | 15,870      |  |            
|Shares subscribed                                     |         |  |                 |  | 146        |  | 70,371      |  |            
|Shares issued for services rendered                   | 44      |  | 43,500          |  |            |  | 9,956       |  |            
|Net Loss for the Year                                 |         |  |                 |  |            |  |             |  | (75,414)   
|                                                      |         |  |                 |  |            |  |             |  |            
|Balance as of
    December 31, 2004                   | 75,448  |  | 75,447,260      |  | 146        |  | 127,777     |  | (233,628)  
|                                                      |         |  |                 |  |            |  |             |  |            
|Shares issued for services rendered                   | 490     |  | 490,000         |  |            |  | 165,510     |  |            
|Net Loss for the period                               |         |  |                 |  |            |  |             |  | (162,406)  
|                                                      |         |  |                 |  |            |  |             |  |            
|Balance as of
    March 31, 2005                      | 75,938  |  | 75,937,260      |  | 146        |  | 293,287     |  | (396,034)  
|                                                      |         |  |                 |  |            |  |             |  |            
|Net Loss for the period                               |         |  |                 |  |            |  |             |  | (12,697)   
|                                                      |         |  |                 |  |            |  |             |  |            
|Balance as of
    June 30, 2005                       | 75,938  |  | 75,937,260      |  | 146        |  | 293,287     |  | (408,731)  
|                                                      |         |  |                 |  |            |  |             |  |            
|Shares issued for services rendered                   | 30      |  | 30,000          |  |            |  | 4,159       |  |            
|Net Loss for the period                               |         |  |                 |  |            |  |             |  | (5,324)    
|                                                      |         |  |                 |  |            |  |             |  |            
|Balance as of
    September 30, 2005                  | 75,968  |  | 75,967,260      |  | 146        |  | 297,446     |  | (414,055)  

5

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FIRST NATIONAL POWER
CORPORATION



1 NOTES TO INTERIM FINANCIAL STATEMENTS

The accompanying unaudited interim financial statements
    have been prepared in accordance with the instructions to Form 10-Q and do
    not include all the information and footnotes required by generally accepted
    accounting principles for complete financial statements. In the opinion of
    management, all adjustments (consisting of all recurring accruals)
    considered necessary for fair presentation) have been included. Operating
    results for the interim periods are not necessarily indicative of the
    results that may be expected for the year ended December 31, 2005. Interim
    financial statements should be read in conjunction with the Company's annual
    audited financial statements.

> 2 GENERAL

The Company was incorporated on November 16, 2000 under
    the laws of the State of Delaware. The business purpose of the Company was
    to acquire funeral facilities and the selling of prepaid funeral programs.
    In January of 2004 the Company changed its business purpose to provision of
    wind-driven solutions to power generation requirements.

On January 19, 2003 the Company changed its name to First
    National Power Corporation.

> 3 GOING CONCERN

The Company's financial statements are prepared using
    accounting principles generally accepted in the United States of America and
    applicable to a going concern, which contemplates the realization of assets
    and liquidation of liabilities in the normal course of business. However,
    the Company has not generated any revenues from its planned principal
    operations through September 30, 2005. Without realization of additional
    capital, it would be unlikely for the Company to continue as a going
    concern.

> 4 SALES CONTRACT SIGNED BUT NOT RECOGNIZED AS REVENUE

On March 28, 2005, the Company did sign with a customer,
    a sales agreement wherein they would sell a Green Oasis micro-utility unit.
    The contract required that the client put up an initial deposit as well as
    make regular interim payments. The Company was committed to getting the
    client certain information and in meeting certain milestones on the
    development of the project. To accomplish the meeting of the Company's
    commitments, they have engaged a consultant to tend to the project and at
    this time, the gathering of the required information is ongoing. The Company
    expects to shortly be releasing the information to the client that will
    trigger the initial payment. Until that initial payment is made, the Company
    is not recognizing that revenue.

> 5 Employee Share Incentive Program

On February 15, 2005, the Board of Directors approved the
    FNPR 2005 Employee Share Incentive Program ("ESIP"), allocating 3 million
    shares to the ESIP. These shares are meant to be used by the Board and the
    officers to compensate employees and consultants for services. As the
    company is not intending to raise further cash, yet has projects that need
    to be moved forward, it was deemed that using shares in lieu of cash was the
    best alternative. From the ESIP, the company has issued 400,000 shares to
    compensate the CFO and another 220,000 shares to various consultants.

6

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Item 2: Management's Discussion and Analysis:

The company continues to work with partners such as Alvin Snaper and Chas
Haba to bring to the market, new and innovative green power generation projects.
However, as the company discussed in earlier releases, their focus has turned
more from being a marketing arm or operator of such power generation projects,
to a more passive role as investor in such projects.

During the past quarter, the company put a lot of effort into aligning
themselves with a group in the Northeast US who have a product that is a natural
adjunct to existing wind power facilities. With very little additional capital
expenditure, this firm's product would enable wind farms to significantly
increase their power output. Those discussions are ongoing and once definitive
arrangements are agreed upon, more news will be released.

The company did gain membership into the Durham Strategic Energy Alliance, a
group of power related suppliers and major users in the Durham Region. This area
is east of Toronto Ontario and has the world's distinction of being the only
region with 2 nuclear power generation plants located inside their borders. The
DSEA is a group that was formed to encourage new power generation ideas through
incubation and by allowing these new suppliers to test their products at an
Energy Park located beside one of the nuclear plants. More information on the
association and on the energy park can be found at

Item 3. Effectiveness of the registrant's disclosure controls and procedures

As of September 30, 2005, the Company carried out an evaluation of the
effectiveness of the Company's disclosure controls and procedures (as defined by
Rule 13a-14(c) under the Securities Exchange Act of 1934) under the supervision
and with the participation of the Company's chief executive officer and chief
financial officer. Based on and as of the date of such evaluation, the
aforementioned officers have concluded that the Company's disclosure controls
and procedures were effective.

The Company also maintains a system of internal accounting controls that is
designed to provide assurance that assets are safeguarded and that transactions
are executed in accordance with management's authorization and properly
recorded. This system is continually reviewed and is augmented by written
policies and procedures, the careful selection and training of qualified
personnel and an internal audit program to monitor its effectiveness. During the
third quarter of fiscal year 2005, there were no significant changes to this
system of internal controls or in other factors that could significantly affect
those controls.

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PART II - OTHER INFORMATION

Item 6. Exhibits and Reports on Form 8-K

Exhibits:

|Exhibit No. | Document                                  | Location        
|----------- | ----------------------------------------- | ----------------
|3.1         | Articles of
    Incorporation             | Previously Filed
|3.2         | Bylaws                                    | Previously Filed
|31          | Rule
    13a-41(a)/15d-14(a) Certificates | Included        
|32          | Section 1350
    Certifications           | Included        

Reports on Form 8-K

None.



SIGNATURES



In accordance with the requirements of the Exchange Act, the registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.

FIRST NATIONAL POWER CORPORATION

DATE: November 4, 2005





/s/ Peter Wanner

Peter Wanner

Chief Financial Officer



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