Cleco Power Rate Stabilization Plan Extended One Year.
The plan was extended under the same terms and conditions as the existing agreement, which was set to expire Sept. 30, 2005.
The extension is part of Cleco Power's overall strategy to secure lower, more stable fuel costs for its customers. A primary facet of that strategy is the proposed construction of a 600-megawatt, solid-fuel unit. It is currently scheduled to be operational in 2009. The LPSC currently is reviewing Cleco's application requesting approval of that construction project.
"The extension gives Cleco and the LPSC the ability to consider our rate structure as part of our request to construct a new plant," said Cleco President and CEO Michael Madison. "Our goal is to obtain regulatory approval of our self-build proposal during the first half of 2006."
The extended rate plan sets an effective maximum regulatory return on equity of 12.625 percent. Under the tiered plan, Cleco is allowed to keep 100 percent of any regulatory return on equity up to 12.25 percent, and it equally shares with customers any return between 12.25 percent and 13 percent. Returns above 13 percent are refunded fully to customers.
In addition to the proposed solid-fuel unit, Cleco Power is seeking regulatory approval of two power-purchase agreements. Those contracts, a five-year, 500-MW agreement with Williams Power Co. and a one-year, 200-MW agreement with Calpine Energy Services, are needed to replace existing contracts expiring at the end of this year.
Cleco Corp. is an energy services company headquartered in Pineville, La. It operates a regulated electric utility that serves approximately 265,000 customers across Louisiana. Cleco also operates a wholesale energy business with nearly 1,400 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. Actual results may differ materially from those indicated in such forward-looking statements.
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|Date:||Sep 14, 2005|
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