Cleco begins sale process, promises no rate hike for 300K customers

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LOUISIANA, USA — A representative for the utility company Cleco, which operates in 24 parishes and serves almost 300,000 customers, has confirmed it has been put up for sale.

“We will do this in a thorough, fair way to ensure that we get the best person to run this utility company,” said Davante Lewis, the state’s Public Service Commissioner for District 3.

The Times-Picayune/New Orleans Advocate first reported that Cleco had notified the Commission’s five members it would be seeking a buyer.

Monday, Lewis told WWL Louisiana that the bidding process could take five to six months. Then, it could take the Commission as much as a year beyond that to approve the chosen buyer.

In the meantime, he said rates will not go up.

“Part of the procedures would be they would have to keep the rates stable until it is time for their rate case, or their rate renewal, that they will file with the Commission,” he said.

Cleco just raised its rates in 2024. Lewis said that means it could be up to 3 years before the new owner files to change them again.

“It could even be a rate reduction,” he said, “depending on what the new ownership does.”

The Commission will also consider Cleco’s 1,200 employees. Its headquarters are in Pineville, but it operates several offices in Southeast Louisiana, including three on the Northshore.

This year, state lawmakers passed a resolution urging the Commission to preserve those jobs regardless of who may end up purchasing Cleco.

“I strongly do not see the Commission in any form or fashion approving a plan from a new owner that does not have guarantees and protections for the current and existing employees,” said Lewis.

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