The ratings for Cleco Corp. reflect the nonregulated business' generation of cash flows and risk-management efforts associated with power development projects. Cleco Power LLC, 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 87% of Cleco's consolidated earnings (as of yearend 2001), over the next several years, Cleco expects its nonregulated businesses to contribute about 41% of total earnings by 2003. These nonregulated businesses include generating projects, cogeneration, energy trading and marketing, and engineering services. Cleco's initial nonregulated generation project, Evangeline, a 775 MW repowering project, entered commercial service in July 2000 under a 20-year tolling agreement, designed to off-load price and commodity risk
