Calpine Power Income Fund

Calpine Power Income Fund

March 02, 2005 16:06 ET

Calpine Power Income Fund Announces Tax Information for 2004 Cash Distributions to Unitholders


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: CALPINE POWER INCOME FUND

TSX SYMBOL: CF.UN

MARCH 2, 2005 - 16:06 ET

Calpine Power Income Fund Announces Tax Information
for 2004 Cash Distributions to Unitholders

CALGARY, ALBERTA--(CCNMatthews - March 2, 2005) - Calpine Power Income
Fund (TSX:CF.UN) today announced that the distributions received by
unitholders in 2004 are determined to be 20% taxable and 80% 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 2004 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 2004
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, 2005, and are required to report the taxable portion
of distributions received as "Other Income" on their 2004 income tax
return.



The following table summarizes tax information for Canadian residents:

---------------------------------------------------------------------
Taxable
Amount
(Box 26 - ACB
Total "Other Reduction
Distribution Income") ("ROC")
Record Date Payment Date (Cdn$) 100% 20% 80%
---------------------------------------------------------------------
December 31, 2003 January 20, 2004 $0.0785 $0.0157 $0.0628
January 31, 2004 February 20, 2004 $ 0.079 $0.0158 $0.0632
February 29, 2004 March 19, 2004 $ 0.079 $0.0158 $0.0632
March 31, 2004 April 20, 2004 $ 0.079 $0.0158 $0.0632
April 30, 2004 May 20, 2004 $ 0.079 $0.0158 $0.0632
May 31, 2004 June 18, 2004 $ 0.079 $0.0158 $0.0632
June 30, 2004 July 20, 2004 $ 0.081 $0.0162 $0.0648
July 31, 2004 August 20, 2004 $ 0.081 $0.0162 $0.0648
August 31, 2004 September 20, 2004 $ 0.081 $0.0162 $0.0648
September 30, 2004 October 20, 2004 $ 0.081 $0.0162 $0.0648
October 31, 2004 November 19, 2004 $ 0.081 $0.0162 $0.0648
November 30, 2004 December 20, 2004 $ 0.081 $0.0162 $0.0648
---------------------------------------------------------------------


The December 2004 distribution, paid on January 20, 2005, will be
accounted for in the 2005 distribution amount.

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 2004.

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

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Calpine Power Income Fund
    Safak Ayaokur
    Senior Financial Analyst / Investor Relations
    (403) 750-3309
    Email: ir@calpinecanada.com
    or
    Calpine Power Income Fund
    Carol Mallabone
    Vice President and Chief Financial Officer
    (403) 781-5826
    Website: www.calpineif.com