Calpine Power Income Fund

Calpine Power Income Fund

January 25, 2007 16:54 ET

Calpine Canada Court Deadline Extended

CALGARY, ALBERTA--(CCNMatthews - Jan. 25, 2007) - The Board of Trustees of Calpine Commercial Trust, on behalf of Calpine Power Income Fund (TSX:CF.UN), today announced that the Honourable Madam Justice B.E.C. Romaine of the Court of Queen's Bench of Alberta in Calgary granted a short extension of the deadline for the submission of bids in the court-ordered auction process for a 30% subordinated ownership interest (also known as the "B" units") in Calpine Power, L.P. a limited partnership in which the Fund has a 70% priority ownership interest, and for the management agreements of the Fund. The "B" units are currently owned by Calpine Canada Power Ltd., which is also the manager of the Fund.

Previously, the Court had ordered that bids must be submitted by noon Calgary time today, that a monitor's report be issued tomorrow that compares the bids, and that a court hearing would be held next Tuesday, January 30th, to consider any bids. The short extension followed the adjournment until 9:00 am MST tomorrow, Friday, January 26, 2007 of an application by a unit of Harbinger Capital Partners for an extension of the deadline until Wednesday January 31, 2007. The Fund consented to the extension. If the deadline is not extended further, the Monitor's Report will be due at noon on Saturday, January 27, 2007. The Debtor and the Monitor have indicated to the Court that they will be opposing any further extension.

The Board of Trustees continues to unanimously recommend that unitholders reject the inadequate Harbinger takeover bid for the Fund at $12.25 per unit.

About Calpine Power Income Fund

Calpine Power Income Fund is an unincorporated open-ended trust that invests in electrical power assets. The Fund indirectly owns interests in power generating facilities in British Columbia, Alberta and California. In addition, the Fund owns a participating loan interest in a power plant in Ontario and has made a loan to Calpine Canada Power Ltd. The Fund is managed by Calpine Canada Power Ltd., which is headquartered in Calgary, Alberta. The Fund has 61,742,288 Trust Units outstanding.

The Calpine Power Income Fund units are listed on the Toronto Stock Exchange under the symbol CF.UN.

Calpine Power, L.P. owns the 300-megawatt Calgary Energy Centre in Alberta and the 240-megawatt Island Cogeneration Facility in British Columbia.

For further information on the Fund, please visit its website at

Forward-Looking Information Disclaimer

This news release may contain forward-looking information as defined under applicable Canadian securities laws. This information involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information. Such forward-looking information is based on the Fund's current internal expectations, estimates, projections, assumptions and beliefs and the Fund believes the expectations reflected in such forward-looking information are reasonable. However, no assurance can be given that these expectations will prove to be correct and the forward-looking information included in this news release should not be unduly relied upon. Such forward-looking information speaks only as of the date of this news release and none of the Fund, the Trustees or the Manager undertakes any obligation to publicly update or revise any forward looking information contained in this news release, except as required by applicable laws.

In particular, among other forward-looking information, this news release may contain forward-looking information pertaining to the following:

- future cash flows generated by the Fund and its subsidiaries from their contracts and other assets and operations and the related amount of future cash distributions made by the Fund to unitholders of the Fund ("Unitholders");

- the value of the claims that the Fund and its subsidiaries have against Calpine Corporation and its affiliates in connection with Calpine Corporation's insolvency and reorganization proceedings and the amount that the Fund and its subsidiaries may collect under such claims or the sale of such claims;

- the future trading prices of the trust units of the Fund ("Trust Units");

- potential alternative transactions involving the Fund and/or its subsidiaries that may produce superior value to Unitholders;

- future levels of power production capacity, availability and utilization of such capacity and actual production by the Fund's indirectly owned facilities and assets; and

- the continued operation and performance by counterparties under the means the power and steam off-take agreements or tolling agreements for the Fund's indirectly-owned power generation facilities ("PPAs") and the creditworthiness of such counterparties.

The actual results and outcomes of such matters could differ materially from those anticipated in the forward-looking information contained in this news release as a result of both known and unknown risks, including the risk factors set forth below:

- volatility in market prices for electricity, power and natural gas;

- changes or fluctuations in power production capacity, availability and utilization of such capacity and actual production levels;

- changes in capital and other expenditure requirements and debt service requirements;

- breach or non-performance by the counterparties to the PPAs relating to the business of the Fund's subsidiaries;

- changes in financial markets, foreign currency exchange rates and interest rates and changes in general economic, market and business conditions in Canada, North America and worldwide;

- the timing of the resolution, and the actual outcome, of the insolvency and reorganization proceedings involving Calpine Corporation, including the amount of funds ultimately available to satisfy the claims of the Fund and its subsidiaries against Calpine Corporation;

- the inability of the Fund to negotiate and conclude an alternative transaction to the Harbinger Offer that provides superior value to Unitholders; and

- actions by governmental or regulatory authorities including changes in income tax laws (including those relating to mutual fund trusts or investment eligibility).

Additional risk factors regarding the forward-looking information set forth above, the business and affairs of the Fund and its subsidiaries and an investment in the Trust Units are contained in the Fund's annual information form dated April 19, 2006, the Fund's management's discussion and analysis for both the year ended December 31, 2005 and the fiscal quarters ended March 31, 2006, June 30, 2006 and September 30, 2006, and the material change report of the Fund dated November 14, 2006, copies of which are available through the internet on the Fund's SEDAR profile at Readers are also referred to the risk factors contained in other documents the Fund files from time to time with securities regulatory authorities, copies of which are also available through the internet on the Fund's SEDAR profile at

The forward-looking information contained herein is expressly qualified in its entirety by this cautionary statement.

Contact Information

  • Longview Communications Inc.
    Alan Bayless
    (604) 694-6035
    Longview Communications Inc.
    David Ryan
    (604) 694-6031
    Toll free: 1-866-568-7438