Major Power Company in Louisiana Is For Sale

(Lafayette, Louisiana) - They say that everything is for sale, and now that includes one Louisiana power company that services over 300,000 customers.

According to WWL-TV, a representative from Cleco has confirmed that the company is in the early stages of a sale.

Cleco, which services homes and businesses in 24 parishes, is reportedly seeking a buyer; however, this sale is not expected to happen overnight.

The New Orleans television station reports that the company's commission could take over a year to approve a sale. Good news for customers is that there are no plans to raise rates while the company looks for a potential buyer.

Once a sale is complete, the new owners will not be able to raise the rate for an additional three years.

Protecting their current employees during the transition appears to be the commission's primary mission, as they aim to ensure that cuts are not made once the transaction is complete.

Cleco released this statement to WWL confirming the owners of the company have "initiated a process to sell the company.”

How Much is Cleco Worth?

While we don't have an exact amount, in 2016, Cleco reported that it was sold to a group of North American infrastructure investors for approximately $4.7 billion, which includes roughly $1.3 billion of assumed debt.

To learn more about what Cleco requires for a sale to be considered complete, visit WWL.

We will continue to follow this developing story in the months ahead and provide additional information on the potential sale here and on this station's mobile app.