Central Louisiana Electric expresses interest in purchasing Washington-St. Tammany Electric Cooperative.

PINEVILLE, La.--(BUSINESS WIRE)--Dec. 16, 1994--Central Louisiana Electric Co. Inc. (NYSE:CNL) has expressed interest in purchasing Washington-St. Tammany Electric Cooperative Inc.

The announcement was made by CLECO officials at a meeting called by Louisiana Public Service Commissioner John F. Schwegmann in Covington, La. last evening.

Gregory L. Nesbitt, president and chief executive officer of CLECO, said the acquisition would benefit the cooperative's customers and the economy of the area because CLECO's electric rates are among the lowest in Louisiana and the region. He said the cooperative's residential electric rates average more than 30% higher than CLECO's. The cooperative is presently in bankruptcy proceedings.

Nesbitt said that CLECO's customers and shareholders would benefit by the additional business represented by the cooperative's system, which is located in one of the fastest-growing areas in the state. The cooperative's service area is situated north of New Orleans across Lake Pontchartrain in Washington and St. Tammany Parishes (counties). Nesbitt said the service area is adjacent to and very similar to CLECO's, and that the two utilities' electric systems are interconnected.

Nesbitt said that based on available 1993 information, the acquisition would increase CLECO's customer base by 14% with the addition of the cooperative's approximately 30,600 customers; CLECO's peak demand would grow by 9.7%; electric kilowatt-hour sales from regular customers would rise by 8.4%; and operating revenues from regular customers would increase by 12.6%.

"We feel this acquisition would benefit all concerned," Nesbitt said. He noted that CLECO is already in the process of negotiating with Teche Electric Cooperative for the purchase of that system, which has some 8,600 customers in three parishes in southern Louisiana. He said that Teche's customers are in favor of those purchase negotiations because of CLECO's low rates and good service.

Central Louisiana Electric Co. Inc. operates solely in Louisiana as an electric utility serving approximately 216,000 customers in 23 of the state's parishes.

CONTACT: CLECO, Pineville

             David M. Eppler, 318/484-7400
             or Michael P. Prudhomme, 318/484-7400
             or Rodney J. Hamilton, 318/484-7400