Cleco Power Files to Issue RFP for Power Supply.

Business Editors

PINEVILLE, La.--(BUSINESS WIRE)--April 16, 2004

Cleco Power LLC, a subsidiary of Cleco Corp. (NYSE:CNL) (PCX:CNL), is looking for proposals to supply its customers with up to 1,000 megawatts of long-term, intermediate and peaking capacity starting Jan. 1, 2006, to replace contracts expiring in 2005 and to fill needs through 2020.

In addition to the long-term capacity to replace existing contracts and accommodate load growth, the company is seeking as much as 800 MW of capacity with stable fuel prices to replace older natural gas-fired units. These power supply initiatives are the subject of an informational filing made yesterday by Cleco Power with the Louisiana Public Service Commission (LPSC). The filing notified the Commission of the company's intent to issue a request for proposals (RFP) for either firm electric capacity and energy contracts or the purchase of generation facilities. To investigate all opportunities to lower overall customer costs, Cleco also will test a number of self-build options against the market.

Significant additions, conversions, or replacements of capacity will require the prior authorization of the LPSC pursuant to a certificate of public convenience and necessity. Also, the Federal Energy Regulatory Commission would have authority to review agreements for certain asset purchases.

"Our top priority in this process is securing low cost and reliable power for our customers," said Mike Madison, president and chief operating officer of Cleco Power. Cleco Power owns 1,360 MW of generation and currently supplements its power needs through 760 MW of power purchase agreements, the majority of which will expire at the end of 2004. In February, Cleco Power signed a letter of intent with Calpine Energy Services to purchase 500 MW for a one-year term starting Jan. 1, 2005.

"Our intention is to leave no stone unturned," Madison said. "We will work to meet our capacity needs and to diversify our fuel mix through a true integrated resource planning process. We are looking at transmission, existing generation and the market to find the best opportunity for securing reliable and low cost power for our customers."

Cleco Corp. is an energy services company headquartered in Pineville, La. It operates a regulated electric utility that serves 264,000 customers across Louisiana. Cleco also operates a wholesale energy business that has approximately 2,100 megawatts of generating capacity, including the Perryville plant, a 718-megawatt plant whose sale to a subsidiary of Entergy is pending. For more information about Cleco, visit www.cleco.com.