The ratings for Cleco Corp. reflect the nonregulated business' generation of cash flows and risk-management efforts associated with power development projects. These factors have begun to offset the pressure that was placed on credit protection measures in the recent past. Cleco Power, a relatively low-cost, midsize regulated electric utility serving parts of Louisiana, provides stable cash flows to the parent company. Although the utility currently accounts for 84% of Cleco's consolidated earnings, over the next several years, Cleco expects its nonregulated businesses to contribute about 30% of total earnings by 2004. These nonregulated businesses include generating projects, cogeneration, energy trading and marketing, and engineering services. Cleco's initial nonregulated generation project, Evangeline, a 750 MW repowering project, entered commercial service in
