Cleco Obtains Approval For Rate Plan Through Unit Construction.

PINEVILLE, La. -- The Louisiana Public Service Commission today approved a rate plan extension for Cleco Power LLC, a subsidiary of Cleco Corp. (NYSE:CNL), that will begin Oct. 1, 2006, and continue through commercial operation of the company's new Rodemacher unit.

The approved plan sets the company's return on equity at 11.25 percent. Cleco customers will receive a refund of 60 percent of all earnings between 11.25 percent and 12.25 percent. Any earnings above 12.25 percent would be refunded completely to customers. This plan allows for an effective maximum regulated return on equity of 11.65 percent.

"We are pleased to have our rate stabilization plan extension approved," said Dilek Samil, president and COO of Cleco Power LLC. "Cleco and its customers now have rate certainty during the construction period of our new unit."

The utility is currently operating under an extension of its existing rate plan that provides a regulated return on equity of 12.25 percent. The existing plan expires at the end of September 2006.

"Construction of our Rodemacher unit is progressing well," said Samil. "Our schedule is currently set for the unit to be operational late 2009."

The company will be required to file a rate case about one year prior to the commercial operation date of the unit to determine the rates that can be charged after the unit is complete.

Cleco Corp. is a regional energy company headquartered in Pineville, La. It operates a regulated electric utility company that serves about 267,000 customers across Louisiana. Cleco also operates a wholesale energy business with approximately 1,350 megawatts of generating capacity. For more information about Cleco, visit www.cleco.com.