Cleco Corp. Reports Full-Year 2006 Earnings

Market Wire, February, 2007

Cleco Corp. (NYSE: CNL) today reported 2006 net income applicable to common stock of $72.9 million. Excluding $108.0 million of 2005 Perryville-related net income, 2006 net income was essentially equivalent to net income recorded in 2005.

On an earnings per share (EPS) basis, Cleco recorded earnings of $1.36 per diluted share, down $0.06 per share from the $1.42 per share recorded in 2005, excluding Perryville-related results of $2.11 per diluted share.

Earnings for 2006 were diluted $0.07 per share by the August issuance of 6.9 million shares of common stock, the net proceeds of which will be used to fund a portion of Rodemacher Unit 3 construction costs.

Excluding 2005 Perryville-related results, 2006 net income improved both at Cleco Power LLC (Cleco Power) and corporate but was partially offset by lower net income at Cleco Midstream Resources LLC (Cleco Midstream).

For the quarter, Cleco recorded net income of $10.8 million, up $9.1 million compared to the fourth quarter of 2005. Earnings for the fourth quarter of 2006 were $0.19 per diluted share, up $0.16 compared to $0.03 per diluted share recorded in the fourth quarter of 2005. The change was driven in part by increased earnings at Cleco Power, as well as higher corporate results.

"We are pleased with the progress thus far on our strategy to diversify our fuel mix and create a foundation for the long-term growth of the company. We are headed into the second year of construction on our $1 billion solid-fuel unit at Rodemacher Power Station, and while it is still early, we are on schedule to have the unit operational in late 2009," Cleco President and CEO Michael Madison said.

Consolidated Diluted Earnings Per Share Allocated to Subsidiaries


                                    Diluted EPS
                          -------------------------------
                            Three Months Ended Dec. 31
                          -------------------------------
Subsidiary                     2006            2005
                          --------------- ---------------
Cleco Power LLC                   $ 0.22          $ 0.14
Cleco Midstream Resources
 LLC (excluding
 Perryville for 2005)              (0.14)          (0.11)
Corporate and Other(1)              0.11              --
                                  ------          ------
  Earnings excluding
   Perryville                     $ 0.19          $ 0.03
Earnings from 2005
 Perryville reconsolidation           --              --
                                  ------          ------
  Earnings applicable to
   common stock                   $ 0.19          $ 0.03
                                  ======          ======


                                    Diluted EPS
                          -------------------------------
                             Twelve Months Ended Dec. 31
                          -------------------------------
Subsidiary                     2006            2005
                          --------------- ---------------
Cleco Power LLC                   $ 1.21          $ 1.15
Cleco Midstream Resources
 LLC (excluding
 Perryville for 2005)              (0.04)           0.28
Corporate and Other(1)              0.19           (0.01)
                                  ------          ------
  Earnings excluding
   Perryville                     $ 1.36          $ 1.42
Earnings from 2005
 Perryville reconsolidation           --            2.11
                                  ------          ------
  Earnings applicable to
   common stock                   $ 1.36          $ 3.53
                                  ======          ======

(1)Includes dividends on preferred stock



Results for Fourth Quarter 2006:

Major Reconciling Items for Fourth-Quarter EPS 2006 vs. 2005:


  $0.03                      2005 Fourth-Quarter Diluted EPS

   0.05                      Higher Cleco Power nonfuel revenue
  (0.01)                     Energy hedging, net
   0.07                      Lower Cleco Power nonfuel expenses
  (0.03)                     Effect of increased number of outstanding
shares
  (0.03)                     Lower Cleco Midstream contribution
   0.11                      Higher corporate results
  -----

  $0.19                      2006 Fourth-Quarter Diluted EPS

Cleco Power LLC

Cleco Power's 2006 fourth-quarter earnings were $0.08 per share higher than in the fourth quarter of 2005.

Overall, nonfuel revenue increased $0.05 per share in the quarter-to-quarter comparison with 2005.

--  The collection of a storm cost recovery surcharge contributed $0.06
    per share to fourth quarter 2006 results.  The collection began in May 2006
    after the Louisiana Public Service Commission approved an interim storm
    cost recovery plan.

--  Lower kilowatt-hour sales resulted in a $0.01 per share decrease.
    Fourth quarter 2006 kilowatt-hour sales were down 1.8 percent from the same
    period a year ago largely due to milder weather affecting residential,
    other retail, and wholesale customers but was partially offset by stronger
    kilowatt-hour sales to commercial and industrial customers, as well as a
    wholesale contract that began in January 2006.  Cooling degree-days were
    approximately 4 percent above normal, but fell 22 percent below 2005 fourth
    quarter levels.  Heating degree-days for the quarter were about 5 percent
    below normal and 9 percent below 2005 fourth quarter levels.