Stonepeak and Bernhard Lock In A $6 Billion Deal to Buy Cleco Power

Cleco, a vertically integrated utility headquartered in Pineville, Louisiana, serves approximately 298,000 residential, commercial, and industrial customers across 24 parishes. The company owns eight generating units with a total rated capacity of 2,676 MW and operates additional capacity on behalf of partners. Its assets include roughly 1,387 miles of transmission lines and 12,319 miles of distribution lines. Cleco has maintained state-leading reliability standards for 26 consecutive years and recently secured Louisiana Public Service Commission (LPSC) approval for its largest-ever grid resiliency investment.

Under the Macquarie-led consortium’s ownership since 2016 (following a ~$4.7 billion acquisition), Cleco invested approximately $3 billion in grid modernization, resiliency projects, and operational improvements, navigating challenges like hurricanes and the COVID-19 pandemic while supporting regional growth.

Buyers Bring Deep Expertise and Local Ties
Stonepeak, a leading global infrastructure investor with a strong track record in energy and energy-transition assets (including renewables, LNG, and power projects in Louisiana), will hold the majority interest. Bernhard Capital Partners, a Baton Rouge-based private equity firm focused on critical infrastructure and services with deep roots in Louisiana’s energy sector, brings operational expertise and local knowledge.

The partnership is expected to provide Cleco with enhanced access to capital for reliability enhancements, system expansion, and support for economic development in its service territory.

Cleco’s own generation portfolio aligns with this mix, featuring significant natural gas combined-cycle capacity alongside solid-fuel units capable of using biomass and petroleum coke. As demand grows from data centers, industrial expansion, and electrification, utilities like Cleco are positioned to play a key role in meeting load growth while navigating the state’s net-zero greenhouse gas emissions goal by 2050.Potential Impacts on Investors and Consumers

For Consumers: As a regulated utility under LPSC oversight, Cleco’s rates remain subject to rigorous review to ensure they are “just and reasonable.” The new owners have committed to maintaining local management and operations, retaining all 1,200 employees with current compensation and benefits, and keeping headquarters in Pineville. This continuity, paired with promised investments in reliability and economic growth, could deliver enhanced grid resiliency—critical in hurricane-prone Louisiana—and potentially more affordable service through fuel diversification and efficiency gains. However, any major capital expenditures will require LPSC approval, and ratepayers will ultimately bear the cost of new infrastructure via future rate cases. Critics of private equity involvement in utilities often note risks of higher rates to fund investor returns, but strong regulatory guardrails and the buyers’ stated focus on long-term stewardship could mitigate these concerns.

Overall, the transaction is expected to close subject to customary regulatory approvals, including from the LPSC and the Federal Energy Regulatory Commission (FERC).