The transaction is expected to add 775MW of nameplate capacity to Cleco Power’s regulated fleet, and will serve as a key component of providing capacity, energy and services to Dixie Electric Membership Corporation (DEMCO).
The contract is to commence in April 2014, and will grow the utility’s total customer load by more than 20%.
Cleco president and CEO Bruce Williamson said the unit adds value to the company’s regulated generating facilities by further diversifying the fuels it uses to operate plants.
"The Coughlin plant produces clean, reliable power that will be attractive to business and economic development and allows Cleco Power to serve wholesale needs within the region," Williamson added.
Cleco Power had filed for Louisiana Public Service Commission (LPSC) approval of its selection of Coughlin as the winning resource in its 2012 long-term request for proposals and for approval to transfer Coughlin from Cleco Midstream in April 2013.
The utility received state regulatory approval for the transfer in December 2013 and Federal Energy Regulatory Commission approval earlier that year.
Cleco Power now expects to finalize the rate treatment of Coughlin as part of its formula rate plan extension, which is expected to complete in the second quarter of 2014.
