Cleco gains state regulatory approval for Coughlin transfer
PINEVILLE, La. - Cleco Power LLC (Cleco), the regulated utility subsidiary of Cleco Corporation (NYSE:CNL), today received approval from the Louisiana Public Service Commission (LPSC) to acquire Coughlin Power Station from its wholesale affiliate, Cleco Midstream LLC.
"Coughlin is an efficient natural gas power producer that will add value to our diverse generation fleet," said Darren Olagues, president of Cleco Power. "The facility will strengthen our competitive position as we seek additional opportunities with retail load expansion, cooperatives and municipalities, and it will generate economical, reliable power for customers for years to come."
Coughlin will provide capacity to support Cleco's upcoming contract with Dixie Electric Membership Corporation in April 2014. It also adds a low-cost generator to Cleco's regulated fleet as natural gas prices continue to remain competitively priced. In addition, as Cleco is poised to enter into a regional transmission organization on Dec. 19, the unit provides the utility another resource to dispatch into the Midcontinent Independent System Operator, Inc.
In April, Cleco filed a request with the LPSC to transfer Coughlin and for approval of its selection of Coughlin as the winning resource in its 2012 request for proposals (RFP). The LPSC staff and consultants and an independent monitor oversaw the RFP as an affiliate bid into the process.
This is the final regulatory approval needed for the transfer of Coughlin as Cleco received approval on Aug. 26 from the Federal Energy Regulatory Commission. Cleco's formula rate plan extension, which contains the rate treatment of the transfer into the utility, is currently under LPSC review with a decision expected in the second quarter of 2014.