Contact Information: Investor Contacts: Cleco Corporation: Ryan Gunter (318) 484-7724 Shareholder Services: Rodney Hamilton (318) 484-7593 Analyst Inquiries: Dresner Corporate Services Kristine Walczak (312) 780-7205 Media Contact: Cleco Corporation Susan Broussard (318) 484-7773
Cleco Corp. Reaches Settlement With Federal Energy Regulatory Commission
| Source: Cleco Corp.
PINEVILLE, LA--(Marketwire - June 12, 2007) - Cleco Corp. (NYSE : CNL ) announced today it
has reached an agreement with the Federal Energy Regulatory Commission over
its investigation of the company's compliance with provisions put in place
for Cleco in 2003.
Cleco will pay a civil penalty of $2 million and will adhere to a one-year
compliance plan.
"Cleco customers will not pay any of these costs," Cleco President and CEO
Michael Madison said.
"This agreement puts to rest our last outstanding issues with FERC. The
allegations surround actions that largely involved our organizational
structure and are technical in nature. FERC clearly finds in the agreement
that neither our customers nor the power markets were affected," Madison
said.
"We've hired a new chief compliance officer with extensive experience in
the energy industry," Madison said. "This officer will oversee updated
training for designated employees to help ensure we don't have these types
of issues in the future."
In addition to internal safeguards, Cleco is working with industry partners
to clarify further the rules currently imposed on the industry. "The rules
have been unclear and continuously evolving. We're working through the
Edison Electric Institute to hopefully clarify regulatory codes for all
energy companies," Madison said.
The financial impact has been fully accrued as of the end of the first
quarter.
Cleco Corp. is a regional energy company headquartered in Pineville, La.
It operates a regulated electric utility company that serves 268,000
customers across Louisiana. Cleco also operates a wholesale energy
business with approximately 1,350 megawatts of generating capacity. For
more information about Cleco, visit www.cleco.com.