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Pricing Supplement No. 2                        Filed Pursuant to Rule 424(b)(3)
(To Prospectus dated December 12, 1996)         Registration No. 333-02895

CENTRAL LOUISIANA ELECTRIC COMPANY, INC.

UP TO $200,000,000

MEDIUM-TERM NOTES

DUE MORE THAN ONE YEAR FROM DATE OF ISSUE



                                                                                            
Principal Amount........................      $15,000,000       Initial Redemption Date..............Not Applicable
                                        ----------------------                                       --------------

Original Issue Date.....................      April 8, 1997     Initial Redemption %.................Not Applicable
                                        -----------------------                                      --------------

Maturity Date...........................      April 9, 2007     Annual Redemption % Reduction........Not Applicable
                                        -----------------------                                      --------------

Price (as a % of Principal Amount)......            100%         Limitation Date.....................Not Applicable
                                        ------------------------                                     --------------

Interest Rate...........................           7.50%        Refunding Rate.......................Not Applicable
                                        ------------------------                                     --------------

Agents' Commission
(as a % of  Principal Amount)...........            .625%       Form.................................|X| Book Entry
                                        ------------------------

Optional Repayment Date.................   Not Applicable


Including the Medium-Term Notes issued pursuant to this Pricing Supplement,
Central Louisiana Electric Company, Inc. (the "Company") has issued to date
$35,000,000 aggregate principal amount of Medium-Term Notes under the Prospectus
to which this Pricing Supplement relates (the "Notes") at interest rates then in
effect.

If an Initial Redemption Date has been specified above, the Notes will be
redeemable as a whole or in part, in increments of $1,000 (provided that any
remaining principal amount of any such Note shall be at least $1,000), on the
Initial Redemption Date or on any date subsequent thereto, at the option of the
Company upon not more than 60 nor less than 30 days prior notice, at the
applicable redemption price set forth above, with accrued interest to the date
of redemption; provided, however, that if a Limitation Date has been specified
above, no Notes shall be redeemed prior to the Limitation Date specified above
as a part of, or in anticipation of, any refunding operation by the application,
directly or indirectly, of monies borrowed having an interest cost to the
Company (calculated in accordance with generally accepted financial practice) of
less than the Refunding Rate specified above. The redemption price shall
initially be the Initial Redemption Percentage specified above of the principal
amount of the Notes to be redeemed and shall decline at each anniversary of the
Initial Redemption Date by the Annual Redemption Percentage Reduction specified
above of the principal amount to be redeemed until the redemption price is 100%
of such principal amount.

If an Optional Repayment Date has been specified above, the Notes will be
repayable by the Company at the option of the registered owner ("Holder")
thereof on the Optional Repayment Date in whole or in part in increments of
$1,000 (provided that any remaining principal amount of any such Note shall be
at least $1,000) at 100% of the principal amount of the Note to be repaid
together with interest thereon payable to the date of repayment. To elect the
repayment option, the depositary in whose name the Notes are registered (the
"Depositary"), the Depositary's nominee or an authorized participant of the
Depositary must provide written notice of such election in a form acceptable to
The Bank of New (Continued on Page 2)

SALOMON BROTHERS INC
                 FIRST CHICAGO CAPITAL MARKETS, INC.
                                     MERRILL LYNCH & CO.
                                                        SMITH BARNEY INC.

The date of this Pricing Supplement is April 7, 1997              Page 1 of  2



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Pricing Supplement No. 2                       Filed Pursuant to Rule 424(b)(3)
(To Prospectus dated December 12, 1996)        Registration No. 333-02895


York or its successor (the "Trustee"), which notice must be received by the
Trustee at its corporate trust office (or such other address of which the
Company shall from time to time notify the Holders) not more than 60 nor less
than 30 days prior to the Optional Repayment Date. Notices of elections from
participants on behalf of beneficial owners of the Notes to exercise their
option to have the Notes repaid must be received by the Trustee by 5:00 p.m.,
New York City time, on the last day for giving such notice. In order to ensure
that a notice is received by the Trustee on a particular day, the beneficial
owner of Notes must so direct the applicable participant through which it holds
an interest in such Note before such participant's deadline for accepting
instructions for that day. Different firms may have different deadlines for
accepting instructions from their customers. Accordingly, beneficial owners of
Notes should consult the participants through which they own their interest in
the Notes for the respective deadlines for such participants. In the event of
repayment of the Notes in part only, new Notes for the unpaid portion thereof
shall be issued in the name of the Holder thereof. Any exercise of such
repayment option will be irrevocable.

First Chicago Capital Markets, Inc., Merrill Lynch & Co. and Smith Barney Inc.
(each an "Agent") each purchased $5,000,000 aggregate principal amount of the
Notes offered hereby at a price of 99.375% of the principal amount thereof, for
resale to investors or other purchasers at varying prices related to prevailing
market prices at the time of resale as determined by such Agent. Each Agent has
advised the Company that it may sell all or a part of the Notes to one or more
dealers at varying prices related to prevailing market prices at the time of
such sale, as determined by such Agent, less a concession to be agreed upon
between such Agent and any such dealer.

















The date of this Pricing Supplement is April 7, 1997               Page 2 of  2