Boston, MA 04/29/2014 (wallstreetpr) – Cleco Power (NYSE:CNL), is one of the leading energy service companies which is known for its service quality in all over the world. Cleco Power has decided to enter into a ten years contract with Dixie Electric Membership Corp. (NYSE:DEMCO). Under this contract, company will be bound to provide wholesale power service to DEMCO.
According to the CEO and President of Cleco Power (NYSE:CNL) Bruce Williamson,”We are extremely happy to begin rendering our services to DEMCO and its customers, both from sub-urban and Baton Rouge area.” Dixie Electric Membership Corp has peak load of 600 MW and serves more than 103000 users spread across Baton Rouge area. According to the sources, the contract between Dixie Electric Membership Corp and Cleco Power received the approval of state regulatory authority way back in year 2012, but due to Cleco’s high price demand, this contract could not be executed. Now as the need of power has increased amazingly, the DEMCO officials describe this contract as an ideal 10 years contract which will serve the mutual objective in the most efficient manner.
According to DEMCO officials, this contract with Cleco Power (NYSE:CNL) is the best option available in the given market conditions to keep the electricity cost per user of DEMCO down to a significant level and to fulfill all the electricity related requirements on time. As the company enters into a contract with DEMCO which already has more than 1 lac customers, the overall power load on Cleco will increase by 20% in months to come.
This is a long term contract, so company will have to find out the best possible solution for this increased load and at the same time to fulfill all the revenue related problems. Previous quarter was a decent one for company, now as the power load has increased, Cleco Power (NYSE:CNL) will have to find out newer sources for revenue.
