Cleco reaches 20-year agreement with City of Alexandria
PINEVILLE, La. - Cleco Power LLC, a subsidiary of Cleco Corporation (NYSE: CNL), and the City of Alexandria reached a 20-year agreement approving Cleco to provide capacity, energy and market participant services to the city. Pending final approval from the Alexandria City Council, the new agreement will go into effect upon expiration of the current contract that ends in the summer of 2015.
"We are pleased to reach an agreement with the City of Alexandria for capacity, energy and services, and look forward to continuing our long-term relationship," said Darren Olagues, president of Cleco Power. "This contract follows the wholesale model we have designed for our utility's growth strategy, and also provides a platform for the city's long-term planning for future power needs."
The contract includes a tiered structure along with tiered pricing beginning at a 30-megawatt capacity minimum. In addition, the contract contains growth-based elements that align Cleco and Alexandria to attract and serve new industrial load in the Alexandria market.