Attached files
| file | filename |
|---|---|
| EX-99.1 - EXHIBIT 99.1 - PRESS RELEASE - CLECO POWER LLC | exhibit991.htm |
| 8-K - CLECO CORPORATION SEC FORM 8-K - CLECO POWER LLC | clecocorp8k_120611.htm |
CLECO CORPORATION
December 6-9, 2011
Exhibit 99.2
Forward-Looking Statements
2
This presentation contains forward-looking statements about future
results and circumstances, including, without limitation, statements
regarding future earnings, capital expenditures, project completion
dates, future dividends and total shareholder return, with respect to
which there are many risks and uncertainties. Although the company
believes that expectations reflected in such forward-looking
statements are based on reasonable assumptions, we can give no
assurances that these expectations will prove to be correct or that
other benefits anticipated in the forward-looking statements will be
achieved. For a discussion of risk factors and other factors that may
cause the company’s actual results to differ materially from those
contemplated in its forward-looking statements, please refer to the
company’s filings with the Securities and Exchange Commission,
including its 2010 Annual Report on Form 10-K and 2011 Quarterly
Reports on Form 10-Q.
results and circumstances, including, without limitation, statements
regarding future earnings, capital expenditures, project completion
dates, future dividends and total shareholder return, with respect to
which there are many risks and uncertainties. Although the company
believes that expectations reflected in such forward-looking
statements are based on reasonable assumptions, we can give no
assurances that these expectations will prove to be correct or that
other benefits anticipated in the forward-looking statements will be
achieved. For a discussion of risk factors and other factors that may
cause the company’s actual results to differ materially from those
contemplated in its forward-looking statements, please refer to the
company’s filings with the Securities and Exchange Commission,
including its 2010 Annual Report on Form 10-K and 2011 Quarterly
Reports on Form 10-Q.
Who is Cleco?
Corporate structure/location
Corporate structure/location
3
SERVICE TERRITORY
REGULATED
GENERATION
GENERATION
WHOLESALE
GENERATION
GENERATION
Dolet Hills
Brame Energy Center
Nesbitt Unit 1
Rodemacher Unit 2
Madison Unit 3
Coughlin
Units 6 & 7
Acadia
Unit 1
Teche
Units 1 - 4
Retail Formula Rate Plan
Effective 2010 -2014
Target ROE of 10.7%; 51% Equity
Up to 11.3% ROE before customer sharing
11.7% maximum for retail
Riders to include large projects in rate base and rates
* Operational earnings
guidance as of 12/6/11.
guidance as of 12/6/11.
Who is Cleco?
Proven Management Team
Proven Management Team
4
Bruce Williamson - President & Chief Executive Officer
30 years in the energy/utility business, ½ year with Cleco
George Bausewine - Chief Operating Officer of Cleco Power
26 years with Cleco
Darren Olagues - Senior VP & Chief Financial Officer
17 years in the energy/utility business, 4 years with Cleco
Russell Davis - Senior VP of External Relations & Information Technology
29 years in the utility business, 12 years with Cleco
Jeff Hall - Senior VP of Governmental Affairs & Chief Diversity Officer
31 years with Cleco
Wade Hoefling - Senior VP and General Counsel
30 years in the energy/utility business, 5 years with Cleco
Judy Miller - Senior VP of Corporate Services & Internal Audit
27 years with Cleco
5
Who is Cleco?
Generation fleet: much of the hard work is behind us
Generation fleet: much of the hard work is behind us
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Plant
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MW
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Original COD
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Fuel
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Madison 3
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600
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2010
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Petcoke, Illinois basin coal, biomass capable
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|
Acadia 1
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580
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2002
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Natural Gas
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Dolet Hills
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650*
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1986
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Lignite
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Rodemacher 2
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523**
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1982
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Powder River Basin coal
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Nesbitt 1
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440
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1975
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Natural Gas
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Teche 1/2/3/4
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463
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1953/56/71/2011
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Natural Gas
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* Cleco owns 325 MW or
50% of the 650-MW unit
50% of the 650-MW unit
** Cleco owns 157 MW or
30% of the 523-MW unit
30% of the 523-MW unit
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Plant
|
MW
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Heat Rate
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COD
|
Fuel
|
|
Coughlin Unit 6
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264
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7360
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2000
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Natural Gas
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Coughlin Unit 7
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511
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7400
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2000
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Natural Gas
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Madison Unit 3
600-MW solid fuel circulating fluidized-bed unit
Placed in service Feb 2010 at cost of $1 billion
State-of-the-art environmental controls
Acadia Unit 1
580-MW CCGT
Acquired in Feb 2010
$304 million cost/$526 kW
• Last merchant combined-cycle plant in La.
• Ready to serve the growing needs of
regulated utilities, municipalities and
cooperatives
regulated utilities, municipalities and
cooperatives
RFP for 3 or 5 years
beginning May 2012
Up to 750 MWs
Long-Term RFP
Closely coordinated with winning
resources from
Phase I RFP
resources from
Phase I RFP
Up to 750 MWs
• RFP issued: Oct. 21, 2011
• Bids due: Nov. 17, 2011
• Anticipated winner notification: Dec. 21, 2011
• Anticipate issuing RFP in early 2012
• Bids will be compared to full
environmental retrofits at existing facilities
environmental retrofits at existing facilities
6
Phase I
Phase II
Who is Cleco?
Unique position in the face of changing environmental compliance
Unique position in the face of changing environmental compliance
Plans to address short- and long-term environmental
compliance needs up to 750 MW through RFPs
compliance needs up to 750 MW through RFPs
Coughlin -
• Coming off toll at 1/1/12 coincident with CSAPR effective date
• Increasing value as environmental regulations tighten
Value Driver
Ongoing reliability/cost containment investments
Ongoing reliability/cost containment investments
7
Acadiana Load Pocket Transmission Project
• Relieves constraints in south Louisiana service territory
• 90 miles of new transmission infrastructure
• Allows for more efficient dispatch of generation
• Estimated total cost of $250 million (Cleco estimate $125 million)
• Cleco has expended approximately $86 million through Sep 30, 2011
• Included in rate base and rates through the Formula Rate Plan
• 81% complete; final expected in service 2012
Advanced Metering Infrastructure Project
• Replaces all existing meters with electronic meters
• Provides better information for customers and company
• Enhanced outage detection and operational gains
• $73 million total estimated costs less $20 million D.O.E. grant
• Expected project completion - 2013
8
Value Driver
Commitment to shareholder value
Commitment to shareholder value
Feb 24,
2011
2011
Aug 3, 2011
Nov 2, 2011
May 2010
May 2011
Nov 2011
• Dividend has increased 38.9% since Feb 2010
• Commitment to produce total shareholder return of 8%-10% annually through 2014
• Long-term dividend payout target of 50%-60% of sustainable earnings
Earnings
Dividends
* Operational earnings guidance as of 12/6/11.
Dec 6, 2011
9
Value Driver
2012 - Earnings Guidance
2012 - Earnings Guidance
* Operational earnings guidance as of 12/6/11.
Initial 2011 guidance (assuming normal weather) was $2.25 - $2.35; Approx $0.14 of
revenue EPS, related to favorable weather, in 2011 earnings through Sep 30, 2011
revenue EPS, related to favorable weather, in 2011 earnings through Sep 30, 2011
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2011
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2012
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Original Earnings Guidance Assumption
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|
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Normal weather
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|
|
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No earnings contribution from Midstream
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NA
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No impact included for Cleco Power intermediate-term RFP; results will be made public in late January 2012
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Excludes adjustments related to life insurance policies
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31.4%
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29.9%
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Effective tax rate
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Initial guidance
for 2012 is on
average 4%
higher than
initial guidance
for 2011
for 2012 is on
average 4%
higher than
initial guidance
for 2011
Value Driver
2012 - Capital Expenditures (excluding AFUDC)
2012 - Capital Expenditures (excluding AFUDC)
10
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($ millions)
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2012
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2012 - 2016
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Routine/Maintenance
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117.5
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502.1
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Rate Base Expansion
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|
|
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Discretionary
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|
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Acadiana Load Pocket
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25.6
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25.6
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Automated Metering Infrastructure
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34.1
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45.4
|
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Acadia Pipeline
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8.1
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8.1
|
|
Total Discretionary
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67.8
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79.1
|
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Environmental
|
|
|
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Utility MACT Rule Compliance
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21.5
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105.9
|
|
CSAPR Compliance
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9.4
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9.4
|
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Total Environmental
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30.9
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115.3
|
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Total Rate Base Expansion
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98.7
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194.4
|
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Cleco Power Total
|
216.2
|
696.5
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Midstream
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5.2
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24.2
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Cleco Consolidated Total
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221.4
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720.7
|
• Routine CAPEX runs approx $100 million per
year
year
• Acadiana Load Pocket transmission project is in
its final year of construction in 2012
its final year of construction in 2012
• AMI project is approx $53 million net of the
DOE grant of $20 million
DOE grant of $20 million
• Acadia Pipeline will interconnect the Acadia
Power Station with the Pine Prairie gas storage
site - approx $2 million will be expended in 2011
Power Station with the Pine Prairie gas storage
site - approx $2 million will be expended in 2011
• Utility MACT Rule Compliance expenditures
will be over a three-year period of 2012 - 2014
will be over a three-year period of 2012 - 2014
• CSAPR Compliance will have approx $5.2
million expended in 2011
million expended in 2011
Value Driver
Financial strength
Financial strength
11
2013
2012
•All debt at the holding company retired in 2011
• Revolving credit facilities increased $50 million to $550 million
• Interest rate lowered
• Term increased to 5 years
• Liquidity of $658 million at Sep 30, 2011 - Ability to fund
growth initiatives
growth initiatives
• Free Cash Flow1 = approx $70 million - $100 million after
payment of dividends
payment of dividends
2011 - 14
1 Free Cash Flow defined as Operating Cash Flow less Routine/Maintenance CAPEX less Dividends
Major CAPEX Rate Base Additions