PINEVILLE, La., April 22, 2003 — Cleco Corp. announced it is in discussions to sell its 725-megawatt power plant in Perryville, La.
The company said negotiations are progressing on an agreement to sell the natural gas-fired plant owned by Perryville Energy Partners LLC (PEP), a wholly owned subsidiary of Cleco, and related assets. The plant consists of a combined-cycle unit and a simple-cycle unit.
“We’re pleased with the status of discussions. We still have quite a few hurdles to clear, but we’re optimistic the transaction will be completed before the end of the year,” Cleco President and CEO David Eppler said.
The sale is contingent upon execution of a satisfactory letter of intent as well as a definitive purchase agreement, obtaining necessary approvals from state and federal regulators, completion of a due diligence review by the purchaser, and the settlement of various project-related contracts, including but not limited to termination of a 20-year tolling agreement between PEP and an energy marketer.
“If the sale is successfully closed, we intend to use the proceeds to eliminate all debt associated with the Perryville project. In addition, we’ll further strengthen our balance sheet by paying down some of our other outstanding indebtedness. The amount of debt we’ll be able to pay down will depend upon the terms of the definitive agreement and the closing date of the sale. Once it’s done, we will have reduced our exposure to the potential risks posed by our wholesale energy business,” Eppler said.
Cleco Corporation is an energy services company headquartered in Pineville, La. It operates a regulated electric utility that serves more than 260,000 customers across Louisiana. Cleco also operates a nonregulated midstream energy business that has approximately 2,100 megawatts of generating capacity. For more information about Cleco, visit www.cleco.com.