Cleco Corp.: Cleco transfers Coughlin Power Station to regulated utility from
PINEVILLE, LA., March 17, 2014 - Cleco Corporation (NYSE:CNL) today announced
the transfer of Coughlin Power Station to its regulated utility, Cleco Power
LLC, from its unregulated subsidiary, Cleco Midstream LLC. Cleco Power assumed
ownership of the natural gas-fired unit Saturday, March 15.
"This transaction significantly strengthens the position of our utility as we
look for future growth opportunities," said Bruce Williamson, president and
CEO of Cleco Corporation. "The unit adds value to our regulated generating
facilities by further diversifying the fuels we use to operate our plants. The
Coughlin plant produces clean, reliable power that will be attractive to
business and economic development and allows Cleco Power to serve wholesale
needs within the region."
This transaction will add 775-megawatts of nameplate capacity to Cleco Power's
regulated fleet. As part of the utility's generation units, the Coughlin
facility is a key component of providing capacity, energy and services to
Dixie Electric Membership Corporation (DEMCO). This contract is to begin on
April 1, 2014, and will grow the utility's total customer load by more than 20
percent. DEMCO serves the growing suburban Baton Rouge market and is one of
the largest cooperatives in Louisiana.
In April 2013, Cleco Power filed for Louisiana Public Service Commission
(LPSC) approval of its selection of Coughlin as the winning resource in its
2012 Long-Term Request for Proposals and for approval to transfer Coughlin
from Cleco Midstream. Staff and consultants from the LPSC along with an
Independent Monitor oversaw the proposal since an affiliate bid into the
process. The utility received state regulatory approval for the transfer in
December 2013 and Federal Energy Regulatory Commission approval earlier in
Cleco Power expects to finalize the rate treatment of Coughlin as part of its
formula rate plan extension, which is expected to be complete in the second
quarter of 2014.
Please note: This news release contains forward-looking statements about
future results and circumstances. There are many risks and uncertainties with
respect to such forward-looking statements, including the weather and other
natural phenomena, state and federal legislative and regulatory initiatives,
the timing and extent of changes in commodity prices and interest rates, the
operating performance of Cleco Power's facilities, the impact of the global
economic environment, and other risks and uncertainties more fully described
in the company's latest Annual Report on Form 10-K. Actual results may differ
materially from those indicated in such forward-looking statements.
Cleco Corporation is a regional energy company headquartered in Pineville,
La.Cleco owns a regulated electric utility company, Cleco Power LLC, which
owns 11 generating units with a total nameplate capacity of 3,340 megawatts.
The utility serves approximately 284,000 customers in Louisiana through its
retail business and supplies wholesale power in Louisiana and Mississippi. For
more information about Cleco, visit www.cleco.com.
This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf
of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for
the content, accuracy and originality of the information contained therein.
Source: Cleco Corp. via Globenewswire
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