Cleco, FERC Announce Settlement Resolving Cleco Trading Issues.

Business Editors

PINEVILLE, La.--(BUSINESS WIRE)--July 25, 2003

Cleco Corp. (NYSE:CNL)(PCX:CNL) and the Federal Energy Regulatory Commission (FERC) have reached a settlement resolving all FERC-related trading issues Cleco first disclosed in November 2002.

"Today's approval by the FERC of the settlement between its Staff and Cleco ends much of the uncertainty surrounding our energy trading operations," Cleco President and CEO David Eppler said. "We were already exiting that business, and settling this matter quickly allows us to continue focusing all of our energies on carrying out Cleco's strategy - strengthening our core electric utility and our wholesale generation business. The prompt resolution of this issue is in the best interests of our customers and our shareholders."

Eppler added, "We have been forthright in our cooperation with the FERC Staff in its non-public investigation since we publicly disclosed our own initial review last fall."

The settlement lists the Staff's conclusions and the remedial actions to which Cleco has agreed, including:

-- Revocation of market-based rate authority for Cleco Marketing

& Trading LLC (CMT), with the provision CMT can close out its

existing contracts by year-end 2003. The settlement does not

interfere with the power marketer authorizations of Cleco

Power or any of its other affiliates.

-- Refunds of $2.0 million by CMT and $126,469 by Cleco

Evangeline LLC to Cleco Power for profits obtained through

various affiliate transactions between 1999 and 2002. (Cleco

Power will refund approximately $1.2 million to customers

through fuel cost adjustments over the next 12 months. Cleco

will work with the Louisiana Public Service Commission (LPSC)

in the coming months to determine the appropriate regulatory

treatment for the remaining funds.)

-- Payment of a $750,000 civil penalty.

-- Revising FERC power marketer tariffs with strengthened codes

of conduct for affiliate transactions, and implementing a

compliance plan supervised by Cleco's new internal director of

regulatory compliance. Additionally, no Cleco entity can

provide agency services for another in wholesale power sales

or transmission services without prior FERC approval.

Cleco's 2003 earnings will be reduced by an estimated $0.02 per share, which is the amount over and above the reserves established last fall in anticipation of possible regulatory action.

Eppler said, "We already have in place internal controls and mandatory ethics and regulatory compliance training for all employees. However, this settlement provides for changes that will further strengthen our controls and our training programs."

The LPSC is reviewing Cleco's trading issues as part of its periodic fuel audit, which could be completed by early 2004.

Cleco Corp. is an energy services company headquartered in Pineville, La. It operates a regulated electric utility that serves nearly 260,000 customers across Louisiana and a wholesale energy business that has approximately 2,100 megawatts of generating capacity. For more information about Cleco, visit www.cleco.com.