Calpine Power Income Fund

Calpine Power Income Fund

November 14, 2005 19:34 ET

Calpine Power Income Fund Comments on S&P Re-Rating

CALGARY, ALBERTA--(CCNMatthews - Nov. 14, 2005) - Commenting on the recent announcement by Standard & Poors to reduce the stability rating of the Calpine Power Income Fund (TSX:CF.UN) (the "Fund") to an SR-3 (stable outlook), the Fund confirms that it expects to be able to meet its 2005 expected cash distributions to unitholders and end the year on a strengthened financial footing with increased cash reserves.

"We want to assure our investors that we remain on track to meet our 2005 expectations. All of our off-take contract counterparties, including Calpine Corporation, have met all of their obligations, without issue," says Toby Austin, President and CEO of Calpine Canada Power Ltd, Manager of the Fund. "The Fund anticipates meeting all expected unitholder cash distribution targets for this year.

"The Fund continues to perform well financially due to the high availability of its generating facilities reflecting strong plant performance and few unplanned outages. Cash from operations continues to grow, reflecting the contribution from the Fund's 120 MW King City cogeneration facility acquisition in May 2004 and increased capacity at its Island cogeneration plant by almost 10%. This increased capacity has resulted in increased sales of power to British Columbia Hydro and Power Authority and improved efficiency in operations.

"The Fund maintains its focus on optimizing its asset base, strengthening its sources of revenue and cash reserves, and looking for accretive acquisition opportunities, in order to continue delivering a consistent stream of cash distributions to our unitholders. Our strategic focus is to further diversify our power generation portfolio and cash flow stream with potential acquisitions in the near - to mid term, and to diversify our sources of revenue. The Fund has maintained an appropriate level of financial flexibility, supported by a conservative balance sheet and available cash reserves to meet our obligations."

Certain information in this press release is forward-looking and subject to risks and uncertainties. The results or events predicted in this information may differ from actual results or events. Factors which could cause actual results or events to differ materially from current expectations include, among other things, the ability of the Fund and the Partnership to successfully implement the Fund's strategic initiatives and whether such strategic initiatives will yield the expected benefits, the availability and price of energy commodities, regulatory decisions, competitive factors in the power industry, and the prevailing economic conditions in North America. The Fund and the Partnership each disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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

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