Cleco to raise rates starting in July

Cleco customers will see a rate increase go into effect next month of $5.35, which will jump to $13.13 in October. 

“Unlike other businesses, when company expenses fluctuate, Cleco can’t arbitrarily just change prices and pass the change to the customer,” said Cleco spokesperson Fran Phoenix.

The last rate increase occurred in 2021,

“And since that time, inflation, infrastructure improvement costs and changes in the wholesale market have contributed for the need for an adjustment,” said Phoenix. 

Why is the increase needed?

• Like many businesses, Cleco has faced increased operating and maintenance costs over the last few years.  The last base rate change occurred in 2021 and since that time inflation, infrastructure improvement costs, and changes in the wholesale markets have contributed to the need for an adjustment in rates.  The goal is to balance customer affordability with rising operating costs.
• In addition to affordability, Cleco prioritizes reliability and safety.  Last year, Cleco kept our customers’ lights on over 99.9% of the time and was the only electric utility provider to meet Louisiana’s power reliability standards for each of the last 25 years.  And we did it safely, having achieved the best safety record in our 88-year history and recognized as first in safety performance by the Southeastern Electric Exchange.
• Currently, Cleco residential customers have the third lowest rates in the state and even with new rates, they will continue to have some of the lowest rates nationwide.  Louisiana is typically among the states with the lowest overall residential electricity rates based on data from the U.S. Energy Information Administration.

Public Service Commissioner Davante Lewis, who voted against the rate increase, says Cleco has ulterior motives. For instance, he says, the company recently lost a contract selling power to another Louisiana power company, “and what Cleco has done now is shifted that lost revenue onto their commercial and residential ratepayers.”

Additionally, Lewis thinks the lower fees are long overdue, since he believes Cleco has some of the worst fees in the nation. He says the way Cleco is framing the price jump is misleading at best and predatory at worst.

“I think caging this around ‘our costs have gone up’— no, it is that their parent company is selling and they needed to make some more money for their shareholders and especially the new company that’s acquiring them,” he explains.

He also says that Cleco’s repeated point that they have some of the lowest rates nationwide doesn’t matter because Louisianians use more energy than any other state nationwide.

The Louisiana Public Service Commission approved the rate increase on a 4-1 vote and will go into effect on July 1st.

Cleco says it is lowering its fees. Here’s a rundown.

• • Late Charge
    • Cleco Power is making changes to how late fees are assessed. Prior to July 1, 2024, the fee was 5% of the first $1,000 owed and 2% for the remaining balance. Beginning July 1, 2024, late fees will be a flat 3% of the outstanding bill.
  • Customer Assistance Programs
    • The Cleco Alternative Rate for Electricity (CARE) program will extend assistance from three months a year (July, August and September) to 12 months to low-income customers by providing a 25% discount each month on the fuel portion of their bills for the entire year.
  • Connection Charge
    • Prior to July 1, 2024, connections made during regular working hours were $25 and $60 outside of regular working hours. As of July 1, 2024, the connect charge will be $15 regardless of timeframe.
  • Reconnection Charge
    • Prior to July 1, 2024, reconnections made during regular working hours were $30 and $65 outside of regular working hours. As of July 1, 2024, the connect charge will be $15 during regular working hours and $30 outside of regular hours.

For more information or additional questions, call Cleco customer service at 1-800-622-6537.