Cleco customers to get $475 bill credit starting in July

PINEVILLE, La. (AP) - Cleco customers will get a one-time $475 credit on their energy bills starting in July as part of the electric utility’s sale.

The credit will cover several months of free electricity for the average customer.

An investor group led by New York-based Macquarie Infrastructure and Real Assets bought Pineville-based Cleco Corp. in April. The state Public Service Commission approved the $4.7 billion sale in March.

NOLA.com/The Times-Picayune (https://bit.ly/1r3dtc2 ) reports the final agreement includes an array of sweeteners, including $136 million in electricity bill credits for customers and $7 million in grants to be administered by the state economic developers in Cleco’s service territory.

About 286,000 customers will receive a one-time credit averaging about $475. The credit will be applied to a customer’s monthly bills starting in July until it runs out.

The average Cleco customer using about 1,000 kilowatt hours of electricity pays about $117 a month, according to figures provided by the utility. That means the average customer with a $475 credit would get four months of free electricity. The $7 left over would be credited to the following month’s bill.

Advocates with the Alliance for Affordable Energy argue consumers are getting a raw deal no matter how the math shakes out.

The cash-debt deal saddles Cleco with $2.8 billion in debt for assets valued at $2.9 billion total, an imbalance the group says is too risky and will hurt consumers down the line. The millions of dollars in bill credits and other sweeteners added in March increase that risk, the group said.

The Alliance wanted the PSC to request credit ratings agencies Moody’s and Standard & Poor’s re-assess Cleco’s long-term outlook. The Cleco purchase closed April 13. The commission rejected the Alliance’s request Thursday.

In a statement, Skrmetta criticized the group’s “aggressive attempt to derail” the transaction. On top of bill credits, he said Cleco’s buyers have committed to keep employee headcount, benefits and salaries in Louisiana at current levels for the next decade.

“Job levels at Cleco have been stabilized, the company will invest more money in Louisiana than ever before, and rates will remain stable,” Skrmetta said. “This was a big win for consumers and Louisiana.”

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Information from: The Times-Picayune, https://www.nola.com