Cleco and Calpine Reach Settlement

A settlement has been reached between utility owner Cleco Corp. and energy company Calpine Corp over a 1,160MW power plant co-owned by the two companies under the banner of Arcadia Power Partners LLC.

Cleco’s Acadia Power Holdings will now receive $85m in allowed unsecured claims against Calpine Energy Services L.P. and Calpine, relating to two long-term tolling agreements Calpine Energy Services.

Under the terms of the deal, Acadia Power Holdings will pay $60m for Calpine's 50% ownership interest in Acadia Power Partners.

The offer will serve as a bid in the auction of Calpine's interest in Acadia Power Partners, Cleco said. The auction process will begin in May with a bankruptcy auction in July.

If Acadia Power Holdings does not win the auction, it will keep its 50% ownership in the partnership and receive payments of $85m from the winning bidder.