In 2007, Cleco Power solicited bids for up to 600MW of intermediate and/or peaking capacity and selected unit 1, or half of the Acadia plant, as the lowest bid in its request for proposal (RFP) for long-term capacity beginning in 2010.
APP, the owner of the Acadia plant, is a 50/50 partnership between a subsidiary of Cleco Midstream Resources and Cajun Gas Energy (Cajun). This month, Cleco Corp entered into a $150m aggregate principal amount one-year bank term loan that matures in 2011. The proceeds were used in part to satisfy obligations to affiliates of Cajun.
An independent monitor appointed by the LPSC supervised the entire RFP selection process. The transaction remained under the supervision of the independent monitor, reporting to the LPSC, until it closed.
Acadia power station began commercial operation in 2002. It consists of two 580MW generating units and is located near Eunice, Louisiana.
In a separate transaction announced in October 2009, Entergy Louisiana, a subsidiary of Entergy Corp, agreed to purchase unit 2 and 50% of the plant’s common assets. This transaction is expected to close in late 2010 or early 2011, pending approvals from the LPSC and the FERC. Cleco Power will take over plant operations for the entire facility, operating unit 2 on behalf of APP.
