Cleco Corp.: Cleco begins serving Dixie Electric Membership Electric
Contract increases utility's load by approximately 20 percent
PINEVILLE, LA., April 1, 2014 - Cleco Power LLC, the regulated utility
subsidiary of Cleco Corporation (NYSE:CNL), today announced that it is now
serving wholesale power to Dixie Electric Membership Corporation (DEMCO). The
10-year full-requirements contract provides DEMCO with capacity, energy and
services, and ensures the cooperative has reliable power at a competitive
price to serve its growing customer base. The addition of this agreement will
increase Cleco Power's load by approximately 20 percent.
"We are happy to begin serving DEMCO and its suburban Baton Rouge customers,"
said Bruce Williamson, president and CEO of Cleco Corporation. "Our generation
fleet, fueled by multiple fuel types, will insulate DEMCO from risks related
to generation tied to a single fuel source or individual power plant. Our
entire fleet is well-positioned to support DEMCO's growing power needs, and we
look forward to a productive relationship as we work together to expand and
strengthen both of our companies."
In addition to the power services agreement, Cleco and DEMCO will work
together on economic development efforts and other aspects of a utility's core
The DEMCO agreement received state regulatory approval October 2012 and was
associated with Cleco Power's resource plan that was a catalyst for the
utility's 2012 long-term request for proposal seeking generation supply. In
December 2013, Cleco Corporation received state regulatory approval to
transfer Coughlin Power Station (Coughlin), the winner of the proposal, to its
regulated utility from its unregulated subsidiary, Cleco Midstream. Coughlin
is a combined-cycle natural gas-fired generator located in St. Landry.
"We recently strengthened our plants' diversity when we transferred Coughlin
to our regulated fleet, providing further protection to DEMCO as well as our
traditional retail customers from commodity price swings and environmental
regulations," said Williamson. "The plant also supports our utility's future
retail and wholesale expansion with its attractive heat rate that provides
efficient operation and economical power."
DEMCO services approximately 103,000 customers in a seven-parish area and
currently has a peak load of approximately 600 megawatts.
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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