NEW YORK (Standard&Poor's) Aug. 12, 2005--Standard&Poor's Ratings Services said today that Cleco Corp.'s (BBB/Negative/--) announcement that it had reached a settlement with a subsidiary of Calpine Corp. (B-/Negative/--) regarding the two companies' joint venture, Acadia Power Partners LLC, would not affect the rating on Cleco. The agreement, which resolves a dispute over possible transmission capacity constraints at the 1,160 MW Acadia plant, results in an only marginal reduction in cash flow to Cleco from the Acadia tolling arrangement. The resolution of the dispute is generally favorable for Cleco's credit quality, though the possibility remains that Calpine could pursue other means to renegotiate the Acadia contract in the future. The negative outlook on Cleco is in part
