Storm Restoration

9 Months Ended

Sep. 30, 2012

Note 14 — Storm Restoration

On August 28, 2012, Hurricane Isaac made landfall in south Louisiana as a Category 1 hurricane, causing power outages to approximately 95,000, or 34%, of Cleco Power’s electric customers and affecting Cleco Power’s entire service territory. By September 2, 2012, power was restored to 100% of customers who could receive power.

The current estimate of the cost of restoration for Hurricane Isaac is approximately $21.4 million. The damage to equipment from the storm required replacement, as well as repair of existing assets. Therefore, the balance sheets of Cleco and Cleco Power reflect the capitalization of approximately 61.8% of the restoration costs recorded at September 30, 2012, or approximately $13.2 million. The remaining cost was offset against Cleco Power’s existing storm damage reserve.