In this paper, the impact of power interruption on capacity utilization is considered and investigated at Kality Food Share Company. Interview was conducted to different line managers of the company and officials of Ethiopian electric Power Corporation. The result reveals that power interruption was the prominent problem of the company for the last three years. During these three years EEPCo was using power rationing scheme extensively. The company''s production cost and profit level were highly influenced by power interruption. To alleviate the problem and to reduce the possible costs of power interruption the management of KFSC has taken different measures.