Mike Madison, president and CEO of Cleco, said: “The sale of Acadia unit 2 continues progress toward our goal of maximizing the value of our Cleco Midstream assets. The successful execution of this transaction will further reduce our merchant market risk and bring value to our shareholders.”
The Acadia power station, which began commercial operation in 2002, consists of two Siemens-Westinghouse combined-cycle gas-fired generating units, nominally rated at 580MW each. APP proposes to sell 100% of Acadia unit 2 and 50% of the facility’s common assets.
In a separate transaction earlier this year, Cleco Power is acquiring Acadia unit 1 and the other 50% of the facility’s common assets pending regulatory approval. Upon closing the transaction, Cleco Power will serve as operator for the entire facility.
Entergy Louisiana’s purchase is contingent upon, among other things, obtaining necessary approvals, including full cost recovery from federal and state regulatory and permitting agencies and the filing of notification under the Hart-Scott-Rodino antitrust law.
Closing is expected to occur in late 2010 or early 2011. Energy Louisiana and APP also have entered into a power purchase agreement for 100% of the output of Acadia unit 2 that will commence on May 1, 2010, and is set to expire at the closing of the acquisition transaction.
