Cleco closes $304 million purchase of Acadia Unit 1
Cleco Power LLC, a subsidiary of Cleco Corp., has completed purchase of Acadia Power Station Unit 1, valued at about $304 million.
Acadia Power Station began commercial operation in 2002. It consists of two, 580-megawatt generating units and is located on La. 13 South of Eunice.
Acadia Power Partners, LLC owns the Acadia plant. APP is a 50/50 partnership between a subsidiary of Cleco Midstream Resources LLC, which is a subsidiary of Cleco Corp., and Cajun Gas Energy, L.L.C. (Cajun).
In a separate transaction last October 2009, Entergy Louisiana, LLC, a subsidiary of Entergy Corp., agreed to purchase Unit 2 and 50 percent of the plant’s common assets. This transaction is expected to close in late 2010 or early 2011.
Cleco Power will take over plant operations for the entire facility, operating Unit 2 on behalf of APP.
Cleco’s acquisition of the 580-megawatt natural gas generating unit and 50 percent of the plant’s common assets closed on Tuesday, after being authorized by the Louisiana Public Service Commission (LPSC) and the Federal Energy Regulatory Commission (FERC).
“Acadia is a state-of-the-art power plant that will be around to meet our customers’ power needs for decades,” said Mike Madison, president and chief executive officer of Cleco Corp.
“With Rodemacher Unit 3, our 600-megawatt solid-fuel unit in service, and this acquisition, Cleco Power’s generating fleet has the level of diversity and efficiency we’ve been working to achieve for the past several years,” Madison said.