EX-99.2 3 exhibit992.htm EXHIBIT 99.2 - SLIDE PRESENTATION exhibit992.htm
CLECO CORPORATION
December 6-9, 2011
Exhibit 99.2
 
 
 
Forward-Looking Statements
2
This presentation contains forward-looking statements about future
results and circumstances, including, without limitation, statements
regarding future earnings, capital expenditures, project completion
dates, future dividends and total shareholder return, with respect to
which there are many risks and uncertainties. Although the company
believes that expectations reflected in such forward-looking
statements are based on reasonable assumptions, we can give no
assurances that these expectations will prove to be correct or that
other benefits anticipated in the forward-looking statements will be
achieved. For a discussion of risk factors and other factors that may
cause the company’s actual results to differ materially from those
contemplated in its forward-looking statements, please refer to the
company’s filings with the Securities and Exchange Commission,
including its 2010 Annual Report on Form 10-K and 2011 Quarterly
Reports on Form 10-Q.
 
 
 
Who is Cleco?
Corporate structure/location
3
SERVICE TERRITORY
REGULATED
GENERATION
WHOLESALE
GENERATION
Dolet Hills
Brame Energy Center
Nesbitt Unit 1
Rodemacher Unit 2
Madison Unit 3
Coughlin
Units 6 & 7
Acadia
Unit 1
Teche
Units 1 - 4
Retail Formula Rate Plan
 Effective 2010 -2014
 Target ROE of 10.7%; 51% Equity
  Up to 11.3% ROE before customer sharing
  11.7% maximum for retail
 Riders to include large projects in rate base and rates
* Operational earnings
guidance as of 12/6/11.
 
 
 
Who is Cleco?
Proven Management Team
4
Bruce Williamson - President & Chief Executive Officer
 30 years in the energy/utility business, ½ year with Cleco
George Bausewine - Chief Operating Officer of Cleco Power
 26 years with Cleco
Darren Olagues - Senior VP & Chief Financial Officer
 17 years in the energy/utility business, 4 years with Cleco
Russell Davis - Senior VP of External Relations & Information Technology
 29 years in the utility business, 12 years with Cleco
Jeff Hall - Senior VP of Governmental Affairs & Chief Diversity Officer
 31 years with Cleco
Wade Hoefling - Senior VP and General Counsel
 30 years in the energy/utility business, 5 years with Cleco
Judy Miller - Senior VP of Corporate Services & Internal Audit
 27 years with Cleco
 
 
 
5
Who is Cleco?
Generation fleet: much of the hard work is behind us
Plant
MW
Original COD
Fuel
Madison 3
600
2010
Petcoke, Illinois basin coal, biomass capable
Acadia 1
580
2002
Natural Gas
Dolet Hills
650*
1986
Lignite
Rodemacher 2
523**
1982
Powder River Basin coal
Nesbitt 1
440
1975
Natural Gas
Teche 1/2/3/4
463
1953/56/71/2011
Natural Gas
* Cleco owns 325 MW or
50% of the 650-MW unit
** Cleco owns 157 MW or
30% of the 523-MW unit
Plant
MW
Heat Rate
COD
Fuel
Coughlin Unit 6
264
7360
2000
Natural Gas
Coughlin Unit 7
511
7400
2000
Natural Gas
Madison Unit 3
600-MW solid fuel circulating fluidized-bed unit
Placed in service Feb 2010 at cost of $1 billion
State-of-the-art environmental controls
Acadia Unit 1
580-MW CCGT
Acquired in Feb 2010
$304 million cost/$526 kW
• Last merchant combined-cycle plant in La.
• Ready to serve the growing needs of
 regulated utilities, municipalities and
 cooperatives
 
 
 
RFP for 3 or 5 years
beginning May 2012
Up to 750 MWs
Long-Term RFP
Closely coordinated with winning
resources from
Phase I RFP
Up to 750 MWs
• RFP issued: Oct. 21, 2011
• Bids due: Nov. 17, 2011
• Anticipated winner notification: Dec. 21, 2011
• Anticipate issuing RFP in early 2012
• Bids will be compared to full
 environmental retrofits at existing facilities
6
Phase I 
Phase II
Who is Cleco?
Unique position in the face of changing environmental compliance
Plans to address short- and long-term environmental
compliance needs up to 750 MW through RFPs
Coughlin -
 • Coming off toll at 1/1/12 coincident with CSAPR effective date
 • Increasing value as environmental regulations tighten
 
 
 
Value Driver
Ongoing reliability/cost containment investments
7
Acadiana Load Pocket Transmission Project
• Relieves constraints in south Louisiana service territory
• 90 miles of new transmission infrastructure
• Allows for more efficient dispatch of generation
• Estimated total cost of $250 million (Cleco estimate $125 million)
• Cleco has expended approximately $86 million through Sep 30, 2011
• Included in rate base and rates through the Formula Rate Plan
• 81% complete; final expected in service 2012
Advanced Metering Infrastructure Project
• Replaces all existing meters with electronic meters
• Provides better information for customers and company
• Enhanced outage detection and operational gains
• $73 million total estimated costs less $20 million D.O.E. grant
• Expected project completion - 2013
 
 
 
8
Value Driver
Commitment to shareholder value
Feb 24,
2011
Aug 3, 2011
Nov 2, 2011
May 2010
May 2011
Nov 2011
• Dividend has increased 38.9% since Feb 2010
• Commitment to produce total shareholder return of 8%-10% annually through 2014
• Long-term dividend payout target of 50%-60% of sustainable earnings
Earnings
Dividends
* Operational earnings guidance as of 12/6/11.
Dec 6, 2011
 
 
 
9
Value Driver
2012 - Earnings Guidance
* Operational earnings guidance as of 12/6/11.
Initial 2011 guidance (assuming normal weather) was $2.25 - $2.35; Approx $0.14 of
revenue EPS, related to favorable weather, in 2011 earnings through Sep 30, 2011
2011
2012
Original Earnings Guidance Assumption
 
 
Normal weather
 
 
No earnings contribution from Midstream
NA
 
No impact included for Cleco Power intermediate-term RFP; results will be made public in late January 2012
 
 
Excludes adjustments related to life insurance policies
31.4%
29.9%
Effective tax rate
Initial guidance
for 2012 is on
average 4%
higher than
initial guidance
for 2011
 
 
 
Value Driver
2012 - Capital Expenditures (excluding AFUDC)
10
($ millions)
2012
2012 - 2016
Routine/Maintenance
117.5
502.1
Rate Base Expansion
 
 
 Discretionary
 
 
 Acadiana Load Pocket
25.6
25.6
 Automated Metering Infrastructure
34.1
45.4
 Acadia Pipeline
8.1
8.1
Total Discretionary
67.8
79.1
 Environmental
 
 
 Utility MACT Rule Compliance
21.5
105.9
 CSAPR Compliance
9.4
9.4
 Total Environmental
30.9
115.3
Total Rate Base Expansion
98.7
194.4
Cleco Power Total
216.2
696.5
Midstream
5.2
24.2
Cleco Consolidated Total
221.4
720.7
• Routine CAPEX runs approx $100 million per
year
 
• Acadiana Load Pocket transmission project is in
its final year of construction in 2012
 
• AMI project is approx $53 million net of the
DOE grant of $20 million
• Acadia Pipeline will interconnect the Acadia
Power Station with the Pine Prairie gas storage
site - approx $2 million will be expended in 2011
• Utility MACT Rule Compliance expenditures
will be over a three-year period of 2012 - 2014
• CSAPR Compliance will have approx $5.2
million expended in 2011
 
 
 
Value Driver
Financial strength
11
2013
2012
•All debt at the holding company retired in 2011
• Revolving credit facilities increased $50 million to $550 million
 • Interest rate lowered
 • Term increased to 5 years
• Liquidity of $658 million at Sep 30, 2011 - Ability to fund
growth initiatives
• Free Cash Flow1 = approx $70 million - $100 million after
payment of dividends
2011 - 14
1 Free Cash Flow defined as Operating Cash Flow less Routine/Maintenance CAPEX less Dividends
Major CAPEX Rate Base Additions