New York Poised to Close Last Coal-fire Power Plant

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Construction Commences on Enel’s Aurora Wind Farm in North Dakota

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Industry News

Cleco Poised to Begin Construction of Coal-fired Generator at Rodemacher Power Station

LCG, March 23, 2006--Cleco Corp. yesterday announced that its board of directors approved plans by Cleco Power LLC, the electric utility subsidiary of Cleco Corp., to construct a new, solid-fuel unit at the Rodemacher Power Station near Boyce, Louisiana. The new facilities are estimated to cost approximately $1 billion and include circulating fluidized-bed (CFB) boilers that are designed to burn a wide range of solid fuels.

On February 22, the Louisiana Public Service Commission (LPSC) unanimously approved the project. The LPSC also approved a staff recommendation to allow Cleco to collect - during the construction period - approximately seventy-five percent of the carrying costs of capital during construction.

According to Cleco, all environmental permits necessary for construction have been issued, and construction can start in April. Commercial operations are scheduled to commence in late 2009.

The new generating facility will include two, 330-MW CFB boilers designed to deliver steam to a single, reheat turbine with a generator that will produce a nominal 600 MW.The primary fuel is expected to be petroleum coke, which is a waste byproduct of crude oil refinement and readily available from sources in the Gulf Coast region. The CFB boilers could alternatively be fueled by western coal from the Powder River Basin or lignite from the state of Louisiana. The fuel flexibility is part of Cleco's strategy to reduce reliance on natural gas, which is currently the fuel used by Cleco to produce about seventy percent of its electricity generated.

The existing Rodemacher Power Station includes two units with a total capacity of 963 MW. Unit 1, with a capacity of 440 MW, is owned by Cleco Power and is fueled by natural gas and low-sulfur fuel oil. The initial start-up of Unit 1 was in 1975. Unit 2, completed in 1982, is jointly owned by Cleco Power, Louisiana Electric Power Association and Lafayette Utilities System. Unit 2 has a capacity of 523 MW and is fueled primarily by coal from the Powder River Basin
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