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Acadia Power Partners, Calpine Energy Services Reach Agreement

Posted on: Thursday, 11 August 2005, 18:00 CDT

Acadia Power Partners LLC, a joint venture between subsidiaries of Cleco Corp. (NYSE:CNL) and Calpine Corp. (NYSE:CPN), today announced a settlement with Calpine Energy Services, L.P. that ends a dispute over transmission issues at the Acadia Power Partners generating plant.

Calpine Energy Services (CES) and Acadia Power Partners (APP) are parties to tolling agreements for the entire output of the 1,160-MW, natural gas-fired APP plant, located just outside Eunice.

"The settlement benefits all parties and should strengthen the working relationship between our companies in the years ahead," Cleco President and CEO Michael Madison said.

CES President Paul Posoli said, "Calpine Energy Services is pleased to have these matters resolved on mutually agreeable terms. We believe our ability to negotiate a settlement without resulting in arbitration reflects the positive relationship we hope to continue to build with Cleco. We also look forward to continuing our productive relationship with Acadia Power Partners."

Under the terms of the settlement, a Cleco subsidiary will receive scheduled cash payments from CES through 2022 that are guaranteed by a Calpine subsidiary and APP which enhance cash payments to Cleco in the event of a tolling agreement default by CES. In exchange, the settlement calls for CES to receive a price reduction under the 2001 tolling agreement, and it reduces the level of credit support CES is required to provide. For details of the agreement, see Cleco's latest SEC filing on Form 8-K.

Cleco Corp. is a regional energy services provider headquartered in Pineville, La. It operates a regulated electric utility company that serves approximately 265,000 customers across Louisiana. Cleco also operates a wholesale energy business with nearly 1,400 megawatts of generating capacity. For more information, visit www.cleco.com.

A major power company, Calpine Corporation supplies customers and communities with electricity from clean, efficient, natural gas-fired and geothermal power plants. Calpine owns, leases and operates integrated systems of plants in 21 U.S. states, three Canadian provinces and in the United Kingdom. For more information, visit http://www.calpine.com.

Source: Business Wire

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