Calpine Power Income Fund
TSX : CF.UN

Calpine Power Income Fund

March 26, 2007 19:27 ET

Calpine Power Income Fund Announces Canadian Tax Information for 2006 Cash Distributions to Unitholders

CALGARY, ALBERTA--(CCNMatthews - March 26, 2007) - Calpine Power Income Fund (TSX:CF.UN) today announced that the distributions received by unitholders in 2006 are determined to be 25.27% taxable and 74.73% will be treated as a Return of Capital ("ROC").

Unitholders are required to reduce the Adjusted Cost Base ("ACB") of their trust units by an amount equal to the cumulative distributions received during 2006 minus the cumulative taxable amounts reported as "Other Income" on the T3 slip. The Adjusted Cost Base is used in calculating capital gains or losses on the disposition of trust units if the trust units are held as capital property by the owner.

Unitholders holding their investment in a Registered Retirement Savings Plan, Registered Retirement Income Fund or Deferred Profit Savings Plan should not report any income related to distributions on their 2006 income tax return. Unitholders holding their units outside such plans should receive a T3 Supplementary Information slip from their broker on or before March 31, 2007, and are required to report the taxable portion of distributions received as "Other Income" on their 2006 income tax return.



The following table summarizes tax information for Canadian residents:

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Taxable
Amount
Total (Box 26 - ACB
Distribution "Other Reduction
(Cdn$) Income") ("ROC")
Record Date Payment Date 100% 25.27% 74.73%
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December 31, 2005 January 20, 2006 $ 0.0818 $ 0.02067 $ 0.06113
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January 31, 2006 February 20, 2006 $ 0.0818 $ 0.02067 $ 0.06113
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February 28, 2006 March 20, 2006 $ 0.0818 $ 0.02067 $ 0.06113
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March 31, 2006 April 20, 2006 $ 0.0818 $ 0.02067 $ 0.06113
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April 28, 2006 May 19, 2006 $ 0.0818 $ 0.02067 $ 0.06113
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May 31, 2006 June 20, 2006 $ 0.0818 $ 0.02067 $ 0.06113
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June 30, 2006 July 20, 2006 $ 0.0818 $ 0.02067 $ 0.06113
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July 31, 2006 August 18, 2006 $ 0.0818 $ 0.02067 $ 0.06113
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August 31, 2006 September 20, 2006 $ 0.0818 $ 0.02067 $ 0.06113
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September 29, 2006 October 20, 2006 $ 0.0818 $ 0.02067 $ 0.06113
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October 31, 2006 November 20, 2006 $ 0.0818 $ 0.02067 $ 0.06113
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November 30, 2006 December 20, 2006 $ 0.0818 $ 0.02067 $ 0.06113
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The December 2006 distribution, paid on January 19, 2007, will be accounted for in the 2007 distribution amount. A separate determination with respect to any distributions made or received in 2007 will be made by Calpine Power Income Fund in 2008.

Unitholders who reside in jurisdictions other than Canada should consult their tax advisors with respect to the tax implications of the cash distributions received in 2006.

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