CNL Cleco Corp.

Cleco Corp. (NYSE:CNL) today announced its board of directors has given approval to build a $1 billion solid-fuel unit at the company's Rodemacher Power Station near Boyce. The board's March 17 vote clears the way for construction to start in April on the 600-megawatt unit. The project is expected to be completed in late 2009. "We want to start construction as soon as possible because this project holds such great potential for our customers and for central Louisiana," Cleco President and CEO Michael Madison said. "The unit will help stabilize and lower the cost of power for our customers by limiting our dependence on expensive natural gas and diversifying our fuel mix. We expect customers will save as much as $4 billion over the 30-year life of the unit. "Not only will customers benefit in the long run, but the short-term economic impact will be tremendous. We estimate 1,200 people will be working on the unit at the peak of construction," Madison said. "Economists tell us construction will generate an additional $18 million in state taxes and $12 million in local sales tax revenue. Also, estimates are the unit will add $157 million in local property taxes over 30 years." The Louisiana Public Service Commission approved the project on Feb. 22, and all of the necessary environmental permits to begin construction have been issued. The latest permit received was a water permit from the Louisiana Department of Environmental Quality. The unit will use circulating fluidized-bed (CFB) technology. The design calls for two 330-megawatt CFB boilers and a single generator that will produce a nominal 600 megawatts of power. The boilers can burn a variety of fuels, although the primary fuel of choice is petroleum coke (petcoke). Petcoke is a byproduct of the oil-refining process and produced in abundant quantities in Louisiana and the Gulf Coast region. Cleco Corp. is a regional energy provider headquartered in Pineville, La. It operates a regulated electric utility company that serves about 267,000 customers across Louisiana. Cleco also operates a wholesale energy business that has approximately 1,350 megawatts of generating capacity. For more information about Cleco, visit www.cleco.com. Please note: This news release contains forward-looking statements about future results and circumstances with respect to which there are many risks and uncertainties, including weather and other natural phenomena, state and federal legislative and regulatory initiatives, the timing and extent of changes in commodity prices and interest rates, the timing of completion of the construction of and operational startup of the new unit, and the other risks and uncertainties more fully described in the company's latest Annual Report on Form 10-K. Actual results may differ materially from those indicated in such forward-looking statements.