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Oct 15, 2009 2:40 PM by sleonard

Cleco bills expected to shrink by year's end services

BATON ROUGE, La. (AP) - Electricity customers with Cleco Power LLC are expected to see their utility bills drop by the end of the year.

The Rodemacher 3 plant, a petroleum coke-fired generator in central Louisiana

That's when the company's Rodemacher 3 power plant goes on line, a petroleum coke-fired generator in central Louisiana that will offer a cheaper form of power to customers.
State utility regulators on Wednesday agreed to a rate increase to cover the costs of building the $1 billion solid fuel unit, which is expected to be operational by year's end. The Public Service Commission unanimously approved the rate hike.
But the rate increase is expected to be more than offset by Cleco getting a cheaper fuel source to generate power, leaving customers with a net decrease in their utility bills.

(Copyright 2009 by The Associated Press. All Rights Reserved.)

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BATON ROUGE, La. (AP) - The more than 276,000 Louisiana electricity customers with Cleco Power LLC should see their utility bills drop by the end of the year, if the company's new solid fuel power plant goes online as scheduled.
The Rodemacher 3 plant, a petroleum coke-fired generator in central Louisiana, will offer a cheaper form of power to customers and shrink Cleco's reliance on more costly natural gas to make
electricity.
State utility regulators on Wednesday agreed to a base rate increase to cover the costs of building the $1 billion Rodemacher unit. The Public Service Commission unanimously approved the rate hike to take effect when the plant is operational, expected to be at year's end.
But the base rate increase - its first change since 1986 - is expected to be more than offset by Pineville-based Cleco getting a cheaper fuel source to generate power. That will lower the fuel
rate charged to customers and leave them with a net decrease in their utility bills, said Dilek Samil, president and chief operating officer of Cleco Power.
"The bill for fuel customers is going to go down," she said.
Cleco estimates that its customers on average will see about a 5 percent reduction in their annual bill, Samil said.
The PSC agreed to boost Cleco's base rate by $173 million a year. The fuel savings with the new power plant, combined with tax credits, is expected to generate $213 million in annual savings,
Samil said. The actual savings could fluctuate based on the costs of the fuel used by the plants.
Cleco has customers in 23 parishes across Louisiana, with its largest service area in the central part of the state.
(Copyright 2009 by The Associated Press. All Rights Reserved.)

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