Regulatory environment allows for reasonable ROE of 12.3% through base rates and full and timely pass-through of fuel costs; Regulated utility generates 70% of projected cash flow, with low operational risk and cost structure; and Little prospect for competitive pressure in the service territory. Failed merchant power strategy resulted in large write-offs, debt at the holding company level, and continued exposure to weak counterparties; Utility owns less than half of power requirements, with the balance met with short-term, purchased-power agreements; and Lack of clarity on the company's strategic direction. The recent ratings affirmation for Cleco Corp. and subsidiary Cleco Power LLC follows the announcement that Cleco intends to issue 1.75 million shares of common stock. Cleco, based in Pineville, La.,
