Subsequent Event

6 Months Ended

Jun. 30, 2011

Note 16 — Subsequent Event

New Markets Tax Credits

In July 2011, the operating agreement of the U.S. Bank New Markets Tax Credit Fund 2008-1 LLC (the fund) was amended to facilitate investments in Section 1603 grant qualifying renewable energy projects and to adjust the guaranteed performance targets that the fund is obligated to provide to Cleco.

The tax benefits received from the fund reduce the federal income tax obligations of Cleco. In total, Cleco will make $286.3 million of equity contributions to the fund and will receive at least $304.6 million of net tax benefits and cash from the inception of the investment in 2008 over the life of the investment, which ends in 2018. The following table reflects remaining future equity contributions.

(THOUSANDS)	CONTRIBUTION
Six months ending December 31, 2011	$	25,442
Years ending December 31,
2012		76,629
2013		36,225
2014		22,927
2015		21,904
Thereafter		20,808
Total	$	203,935

Of the $203.9 million, $62.5 million is due to be paid within the next twelve months. Due to the right of offset, the investment and associated debt are presented on Cleco Corporation’s Condensed Consolidated Balance Sheet in the line item titled tax credit fund investment, net. The amount of tax benefits delivered in excess of capital contributions as of June 30, 2011 is $71.8 million. The amount of tax benefits received but not utilized as of June 30, 2011 is $62.6 million and is reflected as a deferred tax asset.