Web service mining focuses on the discovery of useful and interesting web services suitable for web service composition. This paper enhances Ontology Web Language - Semantics (OWL-S) service capability specification for automated and effective mining of web services. The annotated capability specifications are designed with the help of environment ontology and constructed based on the relationship between environment entities. The web service mining framework utilizes annotated capability specification as a key feature for classification, indexing and ranking. The authors enrich capability specification using ontological annotation to improve web service mining and automated discovery of services effectively. Ontological annotation recommends set of related environment entities to enhance the capabilities and semantics of the services.