Cleco Power LLC Closes Out 2003 RFP With Short-Term Power Contract; Utility plans to file notice of intent for new RFP.

Business Editors

PINEVILLE, La.--(BUSINESS WIRE)--Feb. 4, 2004

Cleco Corp. (NYSE, PCX: CNL) today announced its regulated utility, Cleco Power LLC, has agreed to terms on a one-year contract to purchase up to 500 megawatts from Calpine Energy Services, the energy marketing arm of Calpine Corp., starting in January 2005.

"Our agreement with Calpine Energy Services effectively ends our 2003 request for proposals (RFP)," Cleco Power President and COO Michael Madison said.

The 2003 RFP was for up to 750 megawatts. The power is needed to replace contracts expiring at the end of 2004 and 2005. The 500 megawatts supplied by Calpine Energy Services will fill the shortfall left by contracts expiring at the end of 2004. The agreement is subject to the approval of the Louisiana Public Service Commission (LPSC).

Calpine Energy Services will supply the power from the 1,160-megawatt Acadia power plant, located just south of Eunice, La. The facility is interconnected to Cleco Power's transmission system and control area.

"The pricing of products offered through the 2003 RFP was not what we expected. Given transmission congestion in our area, the still developing wholesale market, and a change in view regarding the cost of natural gas over the long term, we decided we needed to take another look at broader solutions," Madison said.

"This short-term power contract gives us time to complete our long-range integrated resource plan, solicit new proposals from market participants, and evaluate the best options to aggregate a highly efficient generation portfolio. Our goal is to provide customers a long-term supply of power at more stable, competitive prices," Madison said.

Cleco Power will be filing a notice of intent to issue a new RFP with the LPSC. The timeline for issuing the new RFP will follow guidelines set by the LPSC in its RFP general order.

"We'll be working within the LPSC's new requirements for conducting RFPs, which closely model the process Cleco Power and regulators have already informally implemented," Madison said.

"We've also begun working with the LPSC staff on Cleco Power's rate stabilization plan, which expires at the end of September. We'd like to see it extended while we work through the 2004 RFP process," Madison said.

Cleco Corp. is an energy services company headquartered in Pineville, La. It operates a regulated electric utility that serves 260,000 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.

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, the completion of the pending sale of the Perryville plant, the resolution of damage claims against Mirant Corp. and certain of its subsidiaries, and the other risks and uncertainties more fully described in the Company's latest Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Actual results may differ materially from those indicated in such forward-looking statements.