Louisiana PSC approves Cleco Corp. sale
On Monday, Cleco Corporation, doing business as Cleco Power LLC, announced that the Louisiana Public Service Commission had approved the sale of the corporation to a group of North American infrastructure investors.
Among the investors were Macquarie Infrastructure and Real Assets (MIRA), the British Columbia Investment Management Corp. (bcIMC), John Hancock Financial and other infrastructure investors. The transaction is expected to close in April.
“We are pleased with the outcome of the vote and thank the LPSC and Staff for their hard work and confidence in our future,” Cleco Power President Darren Olagues said. “We also recognize the work of all parties who participated in the regulatory process. This process produced a transaction that is unprecedented in its protections and commitments to all of those who depend on us each day. We look forward to pursuing upcoming opportunities with our new owners.”
The investor group expressed commitments to keep Cleco operations as a locally based utility in the Louisiana area. The regulated electric company will still operate under the jurisdiction of the LPSC and all local management and existing talent will retain employment. The establishment will remain headquartered in Pineville, Louisiana, and will keep its current formula rate plan effective for at least an additional two years.
Additionally, customers will receive approximately $500 on average in rate credits as a result of the sale, while Cleco will extend its current formula rate plan and base rates for and additional two years.
