Regulatory environment allows for reasonable ROE of 11.25% through base rates, full and timely pass-through of fuel costs, and rate certainty through the construction phase of the 600 MW Rodemacher Unit 3 plant, Regulated utility operations provide more than 70% of cash flow, with moderate operational risk and a favorable cost structure, and Lack of competitive pressures in the service territory. Unsuccessful merchant power strategy resulted in large write-off, debt at the holding company level, and exposure to weak to market prices, Utility service territory has average to below average demographic characteristics, Utility-owned generation represents only 65% of peak power requirements, necessitating short-term power purchases, and Although Cleco is building a 600 MW power facility to address its generation shortfall,
