NEW YORK (Standard&Poor's) Aug. 29, 2003--Standard&Poor's Ratings Services concludes that Calpine Corp.'s (B/Negative/--) plan to sell Canadian gas and oil reserves of about 83 billion cubic feet of equivalent natural gas somewhat boosts liquidity. Calpine expects to receive about $125 million in net proceeds from the sale, will retain a 25% ownership in the trust, and retain an option to purchase up to 100% of the gas from the trust at market prices. The sale was envisioned during the recent $3.8 billion secured financing. The lending agreements allow Calpine to use the proceeds to pay down debt, purchase other gas assets or invest in Calpine's capital program. The trust unit sale does not further subordinate Calpine
