Calpine Power Income Fund

Calpine Power Income Fund

February 06, 2006 02:01 ET

Calpine Power Income Fund Announces Court Sanctioned Re-Tolling Protocol

CALGARY, ALBERTA--(CCNMatthews - Feb. 6, 2006) - Calpine Power Income Fund (the "Fund") (TSX:CF.UN) announces that a proposed protocol addressing the short term and long term approach to marketing the tolling capacity of the Fund's Calgary Energy Centre (the "Protocol") was verbally approved in court subject to finalization of a formal order.

The Protocol was heard as part of the proceedings involving Calpine Canada Power Ltd. (the "Manager") and certain of its affiliates under the Canadian Companies' Creditors Arrangement Act.

While a formal order has not been signed, the verbal decision of the court approved a Protocol providing for, among other things, the following. Effective immediately, the Manager shall have the authority to negotiate a short term tolling arrangement for the Calgary Energy Centre with supervision by Ernst & Young, Inc. as monitor (the "Monitor"). Any short term tolling agreement will be subject to approval by the Independent Trustees and the board of directors of the general partner of Calpine Power, L.P. (the "General Partner"). In addition, effective immediately, the Manager will proceed with an auction of the long term tolling capacity of the Calgary Energy Centre. The auction process as well as any proposed long term tolling arrangement negotiated by the Manager, will be subject to the supervision by the Monitor and approval by the Independent Trustees and the board of directors of the General Partner. If approval of the Independent Trustees and the board of directors of the General Partner cannot be obtained on any of the above, the matter is to be referred back to court.

The Protocol further provides that any process seeking to dispose of the contractual management rights and subordinated ownership interests held by the Manager in respect of the Fund will be subject to a further order of the court. Finally, the Protocol provides that the board of directors of the General Partner shall have carriage of any claim against the Manager's affiliate that repudiated the tolling agreement in respect of the Calgary Energy Centre.

Calpine Power Income Fund is an unincorporated open-ended trust that invests in electrical power assets. Calpine Power Income Fund indirectly owns interests in power generating facilities in British Columbia, Alberta and California, as well as a participating loan interest in a power plant in Ontario and a promissory note issued by the Manager.

The Calpine Power Income Fund units are listed on the Toronto Stock Exchange under the symbol CF.UN. For further information on the Fund please visit our website at

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