Cleco Corporation Approves Change In Tolling Agreements At Acadia Plant.

Business Editors

PINEVILLE, La.--(BUSINESS WIRE)--May 13, 2003

Cleco Corp. (NYSE:CNL)(PCX:CNL) announced today it has approved the termination of a 20-year tolling agreement between a subsidiary of Aquila Inc. and Acadia Power Partners LLC. The agreement with Aquila will be replaced by a 20-year tolling agreement with Calpine Energy Services, L.P. The tolling contract is for 580 megawatts, half of the Acadia Power Project's output.

The 1,160-megawatt plant near Eunice, La., is owned by Acadia Power Partners LLC, a 50/50 joint venture between Cleco and Calpine.

Calpine Energy Services already has an existing 20-year tolling agreement for 580 megawatts from the combined-cycle plant. By entering into the new agreement, Calpine Energy Services will supply all of the natural gas-fired plant's fuel and market the plant's entire 1,160-MW output. The facility began commercial operations during the summer of 2002.

Cleco President and CEO David Eppler said, "This transaction means greater certainty of cash flow from the Acadia project for Cleco as well as a higher level of credit support under the tolling agreements."

Eppler added, "We expect Cleco's cash flow and earnings from the plant to be unchanged by this transaction as long as Calpine performs under the tolling agreements; however, a priority cash distribution mechanism within the new agreements will mean stronger cash distributions to Cleco in the event of a tolling agreement default."

Cleco will have more credit support available in the event Calpine Energy Services does not fulfill its obligations under either tolling agreement. Cleco was entitled to collect $22.5 million if Aquila defaulted on its agreement. Now, Calpine has to post letters of credit totaling $28 million, increasing to $40 million by the end of 2003, payable to Cleco in the event Calpine Energy Services defaults on either of the tolling agreements.

In addition, as a result of the Aquila contract termination, Cleco was able to eliminate a $12.5 million parental guarantee it had posted to Aquila under its tolling agreement, further improving Cleco's liquidity position.

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

Please note: This news release contains forward-looking statements about future results and circumstances with respect to which there are many risks and uncertainties, 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 and Midstream's facilities, the financial condition of the Company's tolling agreement counterparties, the performance of the tolling agreements by such counterparties, and the other risks and uncertainties more fully described in the Company's latest Annual Report on Form 10-K and Quarterly Report on Form 10-Q. Actual results may differ materially from those indicated in such forward-looking statements.