Louisiana PSC approves Cleco acquisition of South Central Generating
Cleco Corporate Holdings will soon be the new owners of NRG South Central Generating LLC, as a result of approval from the Louisiana Public Service Commission (LPSC) — the last regulatory approval needed to finalize the transaction.
The agreement concerns $1 billion and the acquisition of eight generating assets amounting to 3,555 MW, along with the associated transmission operations and contracts throughout Arkansas, Louisiana and Texas. An investor-owned utility will also be acquired. Ownership will be given to Cleco Cajun LLC, which is and shall remain a separate business from its parent company, Cleco, presumably sometime in February 2019.
“We appreciate the confidence the LPSC and other regulatory entities have given this transaction through their thorough review and approval process,” Bill Fontenot, Cleco president and CEO, said. “Their support confirms our belief that this transaction is the best path for Cleco, our customers, Louisiana cooperatives, communities and the state of Louisiana.”
With the latest approval, Cleco’s Louisiana generating capacity more than doubles and, and its end-user customer base increased by 77 percent. There will be no rate impacts for Cleco customers.
The agreement was previously approved by the Federal Energy Regulatory Commission (FERC), Texas Public Utility Commission (PUCT), and Federal Trade Commission. South Central had been a subsidiary of NRG Energy, Inc.
