UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): February 22, 1994
CENTRAL LOUISIANA ELECTRIC COMPANY, INC.
(Exact name of registrant as specified in its charter)
Louisiana 1-5663 72-0244480
(State or other jurisdiction (Commission file number) (IRS Employer
of incorporation) Identification No.)
2030 Donahue Ferry Road,
Pineville, Louisiana 71360-5226
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (318) 484-7400
<PAGE>
Item 5. Other Events
- ------- ------------
Central Louisiana Electric Company, Inc. (the "Company") announced
its interest in purchasing Teche Electric Cooperative, Inc.
("Teche"). Gregory L. Nesbitt, president and chief executive
officer of the Company proposed to the president of the
cooperative that the two utilities explore the acquisition of Teche
by the Company. The cooperative's service area, which is in
Iberia, St. Martin and St. Mary parishes (counties), is adjacent
to and very similar to the Company's. Its customer base is
approximately 8,600 customers.
On February 23, 1994, Teche officials issued a news release
indicating their intent to resist the acquisition.
Item 7. Financial Statements and Exhibits
- ------- ---------------------------------
(c) Exhibits.
1 News Release dated February 22, 1994 announcing Central
Louisiana Electric Company's interest in purchasing
Teche Electric Cooperative.
<PAGE>
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, hereunto duly authorized.
Central Louisiana Electric Company, Inc.
(Registrant)
By: David M. Eppler
---------------------------
David M. Eppler
Vice President - Finance
Date: March 1, 1994
8K-FEB94.MS
VR 50-01-000001
<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
CENTRAL LOUISIANA ELECTRIC COMPANY, INC.
EXHIBITS
TO CURRENT REPORT ON
FORM 8-K DATED FEBRUARY 22, 1994
Commission File Number 1-5663
<PAGE>
CENTRAL LOUISIANA ELECTRIC COMPANY ANNOUNCES
INTEREST IN PURCHASING TECHE ELECTRIC COOPERATIVE
PINEVILLE, La., February 22, 1994---Central Louisiana
Electric Company, Inc. (CLECO) today announced its interest
in purchasing Teche Electric Cooperative, Inc.
(Teche).
Gregory L. Nesbitt, president and chief executive
officer of CLECO, proposed to the president of the
cooperative in a meeting today that the two utilities
explore the acquisition of Teche by CLECO.
Mr. Nesbitt said that Teche's average electric rates in
1993 were more than 20% higher than CLECO's, noting that
CLECO's rates were among the lowest in Louisiana and the
region. He said CLECO's lower rates would be of significant
benefit to Teche's customers and to the economy of the
area, while the additional business represented by the
Teche system would benefit CLECO's customers and
shareholders.
Further, according to Mr. Nesbitt, Teche members would
receive full cash payment of their capital credit, or
patronage, accounts upon consummation of the acquisition.
He also said it is anticipated that the cooperative's
employees would become CLECO employees with the purchase.
Mr. Nesbitt said that Teche's service area, which is in
Iberia, St. Martin and St. Mary parishes (counties), is
adjacent to and very similar to CLECO's. He noted that the
electric systems are interconnected, and that one of
CLECO's electric generating stations is located in the
service area shared by the two utilities.
Mr. Nesbitt said that based on available information,
upon completion of the transaction, CLECO's customer base
of some 212,600 customers would expand by about 4% with the
addition of Teche's approximately 8,600 customers; CLECO's
peak demand would grow by an estimated 2.9%; electric sales
would rise by approximately 2.4%; operating revenues would
increase by about 3.5%; and assets would grow by about
2.0%.
"We hope that when Teche's management and board consider
this offer, they will agree with us that this is in Teche's
best interest and they will submit it to Teche's members
for consideration. Although there are still some details to
be worked out, we believe a combined CLECO-Teche Electric
could be good for everyone," Mr. Nesbitt said.
He noted that any purchase would require approvals of
the Louisiana Public Service Commission, the Rural
Electrification Administration and other governmental
agencies and would be subject to due diligence review and
certain other conditions.
CLECO (NYSE-CNL) operates solely in Louisiana as an
electric utility in 23 of the state's parishes.
###
For more information at CLECO, contact:
David M. Eppler Carman S. Luneau
Vice President, Finance or Director, Investor Relations
(318) 484-7400
