Cleco Corporate Holdings LLC's $1 billion acquisition of NRG power plants and facilities that serve nine power cooperatives throughout Louisiana received approval from the Louisiana Public Service Commission.
The agency authorized Pineville-based Cleco's acquisition of NRG South Central Generating LLC, a subsidiary of NRG Energy Inc. on Wednesday. It was the last regulatory approval needed to finalize the transaction, expected to be completed in February. The deal was announced in February 2018.
Cleco Cajun LLC, an unregulated subsidiary of Cleco, will acquire eight generating assets totaling 3,555 megawatts of power, transmission operations and contracts to provide wholesale power to nine Louisiana cooperatives and five municipalities across Arkansas, Louisiana and Texas, and one investor-owned utility. Seven of the generation assets will be managed by Cleco while the Cottonwood plant in Texas will be temporarily leased back to NRG for operation. The power facilities also include Big Cajun in Jarreau, Big Cajun II in New Roads, Bayou Cove in Jennings and Sterlington in Sterlington.
The nine Louisiana electric cooperatives receiving power from Cleco are Northeast Louisiana Power; Claiborne Electric Co-op; Concordia Electric Cooperative; Pointe Coupee Electric Membership; Jeff Davis Electric Co-op; Southwest Louisiana Electric Membership Corp.; Washington-St. Tammany Electric; Beauregard Electric Cooperative; and South Louisiana Electric Cooperative Association. New Roads is the lone Louisiana municipal power company. An electric cooperative is a nonprofit corporation that is jointly owned by all of its members.