Lee Ziesche, lee.ziesche@sierraclub.org
Baton Rouge, LA - The Louisiana Public Service Commission (PSC) approved a rate case settlement for Cleco Power that will require the monopoly utility to run two of its fossil units at the Brame Energy Center in Central Louisiana less when it is uneconomic to do so.
The rising cost of fossil fuels has turned Cleco’s Madison 3 unit, which burns coal and petroleum coke, and its coal-burning Rodemacher 2 into money pits. According to a Sierra Club analysis of public data, in 2023, Madison 3 and Rodemacher 2 lost $41.2 million dollars and $10.2 million, respectively. Both units are part of the company’s Brame Energy Center.
Sierra Club intervened in Cleco’s recent rate case and advocated for the utility to commit to “economic dispatch” practices, which require it not to run its coal plants when more affordable energy sources are available.
“Cleco running its expensive and polluting fossil fuel units less will save ratepayers money and improve air quality,” said Emma Hopkins, Sierra Club Beyond Coal Campaign Organizer. “The commitment we won through the settlement can serve as an important model for other utilities across the state, but it is only as good as its enforcement. The Public Service Commission must protect this win for Louisianans and maintain rigorous oversight of Cleco’s dispatch practices.”
The utility’s controversial proposal to build a staggering $1.4 billion carbon capture facility at the Brame Energy Center, which would allow it to continue to burn fossil fuels, was not included in the rate case settlement. Sierra Club opposes the project because it will result in more pollution and could cost ratepayers billions of dollars.
“Cleco’s proposed Project Diamond Vault is a huge, expensive gamble,” said Hopkins. “The PSC must be vigilant and not allow Cleco to backslide into costly false solutions pushed by greedy fossil fuel executives. After decades of fossil-fueled hurricanes and extreme heat, the only path forward for Louisiana is affordable, clean energy.”
Other victories secured by Sierra Club in the settlement include:
- Cleco Power commits to contacting the co-owners of its Rodemacher 2 unit to discuss whether it would be feasible to cease coal-burning operation of the unit prior to 2028.
- Cleco Power commits to consider all reasonable and practical opportunities when evaluating the future of Madison 3, including meeting with the United States Department of Energy loan program office to discuss the Energy Infrastructure Reinvestment loan program as a mechanism for refinancing or securitizing the remaining plant balance at Madison 3.
- Cleco Power commits to initiating an updated integrated resource planning for the purpose of performing a comprehensive evaluation of potential planning options for the utility’s Madison 3 generating unit.
About the Sierra Club
The Sierra Club is America’s largest and most influential grassroots environmental organization, with millions of members and supporters. In addition to protecting every person's right to get outdoors and access the healing power of nature, the Sierra Club works to promote clean energy, safeguard the health of our communities, protect wildlife, and preserve our remaining wild places through grassroots activism, public education, lobbying, and legal action. For more information, visit www.sierraclub.org.