clecocorp200711k.htm
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 

 
FORM 11-K
 

                             (Mark One)
 
      T               ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
 
 
For the fiscal year ended December 31, 2007

OR

   £               TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 [NO FEE REQUIRED]

For the transition period from ________________ to ____________________

Commission file number 1-15759

A.  Full title of the plan and the address of the plan, if different from that of the issuer named below:

Cleco Power LLC 401(k) Savings and Investment Plan


B.  Name of issuer of the securities held pursuant to the plan and the address of its principal executive office:

CLECO CORPORATION

2030 Donahue Ferry Road, Pineville, Louisiana 71360-5226
 

 









Cleco Power LLC 401(k) Savings and Investment Plan
Financial Statements and Supplemental Schedules
December 31, 2007 and 2006
 
 
 
 
 
 
 
 
 

Cleco Power LLC 401(k) Savings and Investment Plan
Index
December 31, 2007 and 2006
 
 
Page(s)
Report of Independent Registered Public Accounting Firm                                                                                                                                     
1
 
Financial Statements
 
  
Statements of Net Assets Available for Benefits         
                                                                                                                            
2
Statement of Changes in Net Assets Available for Benefits    
                                                                                                                                 
3
Notes to the Financial Statements               
                                                                                                                      
          4-9
Supplemental Schedules
 
  
Schedule H, line 4i – Schedule of Assets (Held at End of Year)       
                                                                                                                              
10
Schedule H, line 4j – Schedule of Reportable Transactions                                                                                                                                     
11

 
Note:    Schedules other than those listed above as required by the Department of Labor’s Rules and Regulations for Reporting and Disclosure have been omitted because they are either not required or not applicable.
 

 


Report of Independent Registered Public Accounting Firm




To the Participants and Administrator of the
Cleco Power LLC 401(k) Savings and Investment Plan


We have audited the accompanying statements of net assets available for benefits of the Cleco Power LLC 401(k) Savings and Investment Plan (the “Plan”) as of December 31, 2007 and 2006 and the related statement of changes in net assets available for benefits for the year ended December 31, 2007. These financial statements are the responsibility of the Plan’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, such financial statements present fairly, in all material respects, the net assets available for benefits of the Plan as of December 31, 2007 and 2006 and the changes in net assets available for benefits for the year ended December 31, 2007, in conformity with accounting principles generally accepted in the United States of America.

Our audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental schedule of assets (held at end of year) as of December 31, 2007 and the schedule of reportable transactions for the year ended December 31, 2007, are presented for the purpose of additional analysis and are not a required part of the basic financial statements, but are supplementary information required by the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. The supplemental schedules are the responsibility of the Plan’s management. The supplemental schedules have been subjected to the auditing procedures applied in the audits of the basic financial statements, and, in our opinion, are fairly stated in all material respects when considered in relation to the basic financial statements taken as a whole.



/s/ McElroy, Quirk, & Burch (APC)
Lake Charles, Louisiana
June 16, 2008



 



 
1


Cleco Power LLC 401(k) Savings and Investment Plan
Statements of Net Assets Available for Benefits
December 31, 2007 and 2006
 
 
  
2007
    
2006
  
   
Participant
    
Nonparticipant
    
Participant
        
   
Directed
    
Directed
    
Directed
    
Total
  
                         
Investments, at fair value (see Note 2)
   $ 196,504,274     $ 49,744,451     $ 129,294,493     $ 179,038,944  
Participant loans, at cost
     3,833,609       -       3,430,196       3,430,196  
      200,337,883       49,744,451       132,724,689       182,469,140  
Contributions receivable -
                                
Employee
     -       -       227,173       227,173  
Employer
     15,772       91,105       -       91,105  
Dividends receivable
     -       411,769       -       411,769  
      15,772       502,874       227,173       730,047  
Net assets available for benefits
   $ 200,353,655     $ 50,247,325     $ 132,951,862     $ 183,199,187  




 




The accompanying notes are an integral part of the financial statements.
 
2

 

Cleco Power LLC 401(k) Savings and Investment Plan
Statement of Changes in Net Assets Available for Benefits
Year Ended December 31, 2007
 
 
  
Nonparticipant
    
Participant
        
   
Directed
    
Directed
    
Total
  
                   
Income from investment activities
                  
Interest and dividends
   $ -     $ 12,325,880     $ 12,325,880  
Net appreciation in fair value of investments
     -       4,990,248       4,990,248  
Net investment income
     -       17,316,128       17,316,128  
Contributions
                        
Employer
     -       2,645,455       2,645,455  
Employee
     -       6,809,684       6,809,684  
Total contributions
     -       9,455,139       9,455,139  
Total additions
     -       26,771,267       26,771,267  
Employee distributions and withdrawals
     -       (9,616,799 )     (9,616,799 )
Increase in net assets available for benefits
     -       17,154,468       17,154,468  
Net assets available for benefits, beginning of year
     50,247,325       132,951,862       183,199,187  
Transfer
     (50,247,325 )     50,247,325       -  
Net assets available for benefits, end of year
   $ -     $ 200,353,655     $ 200,353,655  









The accompanying notes are an integral part of the financial statements.
 
3


 
Cleco Power LLC 401(k) Savings and Investment Plan
Notes to the Financial Statements
December 31, 2007 and 2006
 
1.
Summary of Significant Accounting Policies and Description of Plan
 
Plan Description
The Cleco Power LLC 401(k) Savings and Investment Plan (formerly known as the Cleco Corporation 401(k) Savings and Investment Plan) (the “Plan”), which was adopted January 1, 1985, and last amended effective August 1, 2007, is intended to provide active, eligible employees of Cleco Corporation and its subsidiaries (“Cleco”) with voluntary, long-term savings and investment opportunities.  The Plan is a defined contribution plan designed to comply with Section 4975(e)(7) of the Internal Revenue Code of 1986, as amended (the “Code”), and is subject to the applicable provisions of the Employee Retirement Income Security Act of 1974.  From 1991 to March 2006, the Plan operated as a leveraged employee stock ownership plan (the “ESOP”) and the employer match was made with Cleco Corporation convertible Preferred Stock Series of 1991 with a par value of $100 (the “preferred stock”).  In 2006, the loan was retired and substantially all of the shares of the preferred stock were fully allocated to plan participants.  Thereafter, Cleco Corporation made matching contributions to, and funded dividend reinvestments by, Plan participants with Cleco Corporation common stock.  However, in accordance with the Plan, Cleco Corporation can make contributions in the form of stock or cash.  In March 2007, the ESOP trustee converted all outstanding shares of preferred stock into Cleco Corporation common stock.  Plan participants are allowed to choose whether to have dividends on Cleco Corporation common stock allocated to participants in the Plan distributed in cash or reinvested in additional shares of Cleco Corporation common stock.  Participation in the Plan is voluntary and active Cleco employees are eligible to participate.  Although the Plan is voluntary, an employee who is hired or rehired on or after September 1, 2007, or an existing employee who on September 1, 2007, has never enrolled in the Plan, will automatically be enrolled in the Plan.  The automatic pre-tax compensation percentage of 4% can be increased or decreased or participants may choose to opt out of the Plan.  For a complete description of the Plan, refer to the Cleco Power LLC 401(k) Savings and Investment Plan (the “Plan Document”).
 
Amendments
In July 2007, Cleco Power’s Board of Managers amended the Plan effective September 1, 2007.  The amendment allows an employee who is hired or rehired on or after September 1, 2007, or an existing employee who on September 1, 2007, has never enrolled in the Plan, to be automatically enrolled in the Plan.  At any time after the deferrals begin, the automatic pre-tax compensation percentage of 4% can be increased or decreased or participants may choose to opt out of the Plan.
 
In October 2007, Cleco Power’s Board of Managers amended the Plan effective August 1, 2007.  The amendment created a distinction between employees hired before August 1, 2007 and employees hired on or after August 1, 2007 which are known as “Enhanced Participants.”  For Enhanced Participants, the maximum basic match is 100% on a voluntary contribution up to 6% of compensation and allows for a non-elective contribution whether or not the employee voluntarily contributes to the Plan.  The amendment also included a service vesting schedule for the non-elective contribution.
 
Plan Administration
The administration of the Plan is the responsibility of a retirement committee of Cleco Corporation (the “Committee”) comprised of employees of Cleco.  The Committee is appointed by Cleco Power’s Board of Managers.  Administrative expenses incurred by the Plan are borne by Cleco. Cleco Power is the Plan sponsor. The responsibilities for the investment, reinvestment, control and disbursement of the funds of the Plan rests with JPMorgan Chase Bank (“Trustee”) and with JP Morgan Retirement Plan Services (“Agent”) acting as the agent of the Trustee and recordkeeper to the Plan.
 
 
 
 
4
 

Cleco Power LLC 401(k) Savings and Investment Plan
Notes to the Financial Statements
December 31, 2007 and 2006
 
Contributions
Participant contributions are recorded in the period that Cleco makes payroll deductions from participants.  Unless otherwise restricted by law, participants may contribute on a pretax basis up to 50% of annual compensation, not to exceed $15,000 in 2006 and $15,500 in 2007. Participants who are at least 50 years old by the end of the tax year may make an additional “catch-up” contribution (above the 401(k) annual deferral limit) up to $5,000. The Trustee, in accordance with the participants’ directives, invests the employee and employer contributions in one or more of twenty publicly traded mutual funds, in one self-directed account with access to over 1,000 mutual funds, in one common collective trust, and in Cleco Corporation common stock.  Certain qualified 401(k) rollovers are permitted under the Plan.
 
Cleco Corporation’s matching contribution depends upon the hire date of the participant.  Participants hired prior to August 1, 2007 are eligible to receive a basic match not to exceed 66-2/3% of the employees’ total pretax basic contribution, up to the first 6% of the participant’s annual compensation.  Participants hired on or after August 1, 2007 are eligible to receive a basic match not to exceed 100% of the employees’ total pretax basic contribution, up to the first 6% of the participant’s annual compensation.  Additionally, all employees hired on or after August 1, 2007, whether they chose to make a voluntary contribution or not, are eligible to receive an additional non-elective Cleco match subject to certain vesting requirements.  In December 2007, management approved a 2% non-elective contribution for eligible employees.  The non-elective contribution was paid to the Plan in February 2008.
 
Participants’ Accounts
The Agent maintains accounts on behalf of each Plan participant.  Each account is credited with (a) the participant’s pretax, after tax or rollover contribution, (b) the matching contribution and (c) the participant’s share of Plan earnings.  Allocations are based on participant compensation or account balances, as defined.
 
Vesting
Participants are fully vested in their voluntary contributions and the basic match at all times.  Effective August 1, 2007, additional non-elective Cleco funded contributions are subject to vesting based upon years of vesting service as shown below:
 
Years of Vesting
Service
  
Vested Percentage
1 year or less
  
       0%
2 years
  
         20%
3 years
  
         40%
4 years
  
         60%
5 years
  
         80%
6 years or more
  
       100%

Forfeitures
At December 31, 2007, there were no forfeited nonvested accounts.
 
Withdrawals and Loans
Funds in participants’ accounts may be distributed upon death or separation from service in either a lump-sum amount equal to the value of their account or as a distribution in kind of shares held for their account.  A participant is entitled to receive a whole number of shares of Cleco Corporation common stock.  The amounts of any fractional shares are distributed in cash.  Under IRS regulations, active employees may withdraw funds from their accounts after age 59-1/2 or in the case of certain defined financial hardships.
 

 
 
5

Cleco Power LLC 401(k) Savings and Investment Plan
Notes to the Financial Statements
December 31, 2007 and 2006
 
Loans are available to participants up to specified limits.  The term of loans shall not exceed five years and the interest rate is calculated based on the prime rate published in the Wall Street Journal on the first day of the month before the loan is requested plus 2%.  Interest rates on participant loans ranged from 6.00% to 10.25% in 2007 and 6.00% to 11.50% in 2006.
 
Benefits payable for terminations and withdrawals are included in net assets available for benefits and are charged to net assets available for benefits when paid.
 
Diversification
Beginning January 1, 2007, participants were allowed to diversify shares of Cleco Corporation common stock regardless of age and years of service.  In March 2007, the ESOP trustee converted all outstanding shares of preferred stock into shares of Cleco Corporation common stock resulting in 100% of prior ESOP matching contributions being eligible for diversification with no restrictions.  Participants who elect to diversify can invest the proceeds from the sale of shares of Cleco Corporation common stock in the investment options offered by the Plan.
 
Investment Valuation
Investments in securities and mutual funds traded on national securities exchanges are valued based on the last reported sales price as of the end of each fiscal year.  Participant loans are valued at cost, which approximates fair value.  The preferred stock was valued based on the greater of quoted market value of the equivalent shares of Cleco Corporation common stock or the par value of the preferred stock.  As of December 31, 2006, the preferred stock was valued based on the quoted market value of the equivalent shares of Cleco Corporation common stock.
 
Income Recognition
Purchases and sales of securities are recorded on a trade-date basis.  The Plan presents in the Statement of Changes in Net Assets Available for Benefits the net appreciation/depreciation in the fair value of its investments which consists of the realized gains or losses and the unrealized appreciation/depreciation on those investments.  Interest income is recorded on the accrual basis.  Dividends are recorded on the ex-dividend date.
 
Priority Upon Termination of Plan
The Plan may be terminated at any time by Cleco Power’s Board of Managers.  Upon termination, all assets are to be distributed to Plan participants or their beneficiaries.  Participants would receive their proportionate share of the assets as determined by individual account balances on the date of termination.
 
Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases (decreases) in net assets available for benefits during the reporting period.  Actual results could differ from those estimates.
 
Reclassifications
Certain reclassifications have been made to the 2006 financial statements to conform them to the presentation used in the 2007 financial statements.  These reclassifications had no effect on net assets available for benefits.
 



 
6

Cleco Power LLC 401(k) Savings and Investment Plan
Notes to the Financial Statements
December 31, 2007 and 2006
 
2.
Investments
 
Information relative to investments as of December 31, 2007 and 2006, respectively, is as follows:
 
Description
  
2007
    
2006
  
Investments, at fair value:
            
Mutual Funds:
            
*American Century Income & Growth Fund
   $ 29,526,327     $ 31,294,286  
JP Morgan Prime Money Market Fund***
     4,961,371       4,753,399  
American Century GNMA Fund
     5,104,994       4,299,677  
*Dodge & Cox Balanced Fund
     24,190,549       23,162,233  
American Century Vista Fund
     9,057,393       5,833,126  
American Century Strategic Allocation:
                
Conservative Fund
     -       773,467  
Moderate Fund
     -       1,713,623  
Aggressive Fund
     -       3,185,079  
*American Century Growth Fund
     11,853,182       10,101,000  
T. Rowe Price Income Fund
     61,794       -  
T. Rowe Price Retirement 2005 Index Fund
     52,350       -  
T. Rowe Price Retirement 2010 Index Fund
     886,329       -  
T. Rowe Price Retirement 2015 Index Fund
     1,283,823       -  
T. Rowe Price Retirement 2020 Index Fund
     2,145,990       -  
T. Rowe Price Retirement 2025 Index Fund
     1,075,582       -  
T. Rowe Price Retirement 2030 Index Fund
     956,924       -  
T. Rowe Price Retirement 2035 Index Fund
     531,618       -  
T. Rowe Price Retirement 2040 Index Fund
     396,004       -  
T. Rowe Price Retirement 2045 Index Fund
     125,384       -  
T. Rowe Price Retirement 2050 Index Fund
     37,581       -  
T. Rowe Price Retirement 2055 Index Fund
     5,686       -  
CRM Mid Cap Value Fund
     5,572,383       4,426,241  
Morgan Stanley International Equity Fund
     8,911,744       7,575,657  
Total mutual funds
     106,737,008       97,117,788  
State Street Global Advisors S&P 500 Fund – common collective trust
     9,453,438       7,976,080  
Schwab Personal Choice Retirement Account – participant directed brokerage
     2,361,721       1,644,613  
*Cleco Corporation Common Stock(1)
     77,952,107       26,127,448  
*Cleco Corporation Convertible Preferred Stock Series of 1991**
     -       46,173,015  
Total investments, at fair value
     196,504,274       179,038,944  
Participant loans
     3,833,609       3,430,196  
    $ 200,337,883     $ 182,469,140  
___________________________
                
    *Denotes investment exceeds 5% of the net assets available for benefits.
                
  **Nonparticipant-directed investment
                
***Valued at cost plus reinvested interest
                
    (1) In 2006, $3,571,436 represents nonparticipant-directed investment
                

 

 
 
 
7

Cleco Power LLC 401(k) Savings and Investment Plan
Notes to the Financial Statements
December 31, 2007 and 2006
 
The Plan’s investments (including gains and losses on investments bought and sold, as well as held during the year) appreciated (depreciated) in value by $4,990,248 for the year ended December 31, 2007, as follows:
 
Mutual funds
   $ (2,852,602 )
Cleco Corporation common stock
     5,076,628  
Common collective trust
     463,489  
Nonparticipant directed – Cleco preferred convertible shares
     2,302,733  
    $ 4,990,248  
 
3.
Related Party Transactions
 
Certain Plan investments are managed by affiliates of the Agent and Trustee.  The Agent is the recordkeeper as defined by the Plan.  Participants may elect to invest in shares of Cleco Corporation common stock.  In 2007 and 2006, the Plan acquired 2,121,838 and 264,222 shares, respectively, of Cleco Corporation common stock with an approximate market value of $56,030,345 and $5,939,188, respectively.  Included in the 2007 amount is the conversion of preferred shares of $48,503,599.  In 2007 and 2006, the Plan sold 324,479 and 197,259 shares, respectively, of Cleco Corporation common stock with an approximate market value of $8,541,083 and $4,490,346, respectively.  In addition, during 2007 and 2006, 29,203 and 29,772 shares, respectively, of Cleco Corporation common stock representing in-kind distributions were made to participants with an approximate market value of $742,337 and $685,947, respectively.
 
Prior to January 1, 2006, dividends received on the preferred stock by plan participants were reinvested in additional shares of the preferred stock.  Effective January 1, 2006, an option was granted to have dividends distributed in cash or reinvested in additional shares of preferred stock.  The reinvested dividends and additional contributions by Cleco Power were used to pay debt and interest on the note payable.
 
The Plan purchased the preferred stock using the proceeds of a bank note, which was purchased by Cleco Power.  The ESOP made debt service payments to Cleco Power.  For additional information, see Note 4 below.
 
Other related parties include Cleco employees who participate in the Plan and the Committee which is comprised of employees of Cleco and is responsible for the administration of the Plan.
 
4.
Note Payable
 
On April 2, 1991, the Plan entered into a $30 million borrowing agreement with the Bank of New York (the “Bank”) to finance the purchase of 300,000 shares of the preferred stock.  Cleco Power purchased the outstanding principal balance of the loan.  The ESOP made debt service payments to Cleco Power from dividends received on the preferred stock and from additional contributions by Cleco Power in amounts necessary to satisfy debt service requirements.  No debt service payments were required under the borrowing agreement until the year 2008; however, as noted below the Plan made early payments on the debt.
 
Effective in January 1993, the rate of interest on the note payable was fixed at 7.4%.  Principal payments began in January 1999.  In January 2006 and April 2006, the Plan made principal payments of $1,904,100 and $381,050 respectively.  The final principal payment of $19,885 was made in July 2006.  Unallocated shares of preferred stock were pledged as collateral for the loan.  Pursuant to the Employee Retirement Income Security Act of 1974 regulations, debt service payments were made to unencumbered shares of the preferred stock for allocation to participant accounts.
 

 

 
8

 
Cleco Power LLC 401(k) Savings and Investment Plan
Notes to the Financial Statements
December 31, 2007 and 2006
 
5.
Tax Status
 
The Plan is qualified under Sections 401(a) and 401(k) of the Internal Revenue Code and, accordingly, the associated trust is exempt from federal income taxes under provision of Section 501(a).  The Plan obtained its latest determination letter on March 22, 2006, in which the Internal Revenue Service stated that the Plan, as then written, was in compliance with the applicable requirements of the Internal Revenue Code. The Plan has been amended since receiving the determination letter. The Plan administrator and the Plan’s tax counsel believe the Plan remains in compliance with the applicable requirements of the Internal Revenue Code.
 
Participants’ pretax contributions, Cleco Corporation’s contributions, rollover contributions as well as interest, dividends and profits earned by the Plan are not subject to federal income taxes until these amounts are distributed.
 
6.
Risks and Uncertainties
 
The Plan invests in various investment securities.  Investment securities are exposed to various risks such as interest rate, market and credit risks.  Due to the level of risk associated with certain investment securities, it is at least reasonably possible that changes in the values of investment securities will occur in the near term and that such changes could materially affect participants’ account balances and the amounts reported in the statement of net assets available for benefits.
 
7.
Subsequent Event
 
Effective January 1, 2008, Cleco ceased matching participant voluntary contributions in Cleco Corporation common stock and started matching participant voluntary contributions in cash.  The cash contributions are invested in proportion to the participant’s voluntary contribution investment choices.  Cleco has the right to change the form of contribution at any time.
 




 
9

 

Cleco Power LLC 401(k) Savings and Investment Plan
Schedule H, line 4i - Schedule of Assets (Held at End of Year)
December 31, 2007
EIN:  72-0244480
 
 
(a)
  
(b)
  
(c)
  
(d)
  
(e)
  
       
Description of investment, including
          
   
Identity of issuer, borrower,
  
maturity date, rate of interest,
      
Current
  
   
lessor or similar party
  
collateral par, and maturity value
  
Cost
  
Value
  
  *  
American Century Income & Growth Fund
  
Mutual fund
       $ 29,526,327  
  *  
JP Morgan Prime Money Market Fund
  
Mutual fund
         4,961,371  
  *  
American Century GNMA Fund
  
Mutual fund
         5,104,994  
     
Dodge & Cox Balanced Fund
  
Mutual fund
         24,190,549  
  *  
American Century Vista Fund
  
Mutual fund
         9,057,393  
     
T. Rowe Price Income Fund
  
Mutual fund
         61,794  
     
T. Rowe Retirement 2005 Index Fund
  
Mutual fund
         52,350  
     
T. Rowe Retirement 2010 Index Fund
  
Mutual fund
         886,329  
     
T. Rowe Retirement 2015 Index Fund
  
Mutual fund
         1,283,823  
     
T. Rowe Retirement 2020 Index Fund
  
Mutual fund
         2,145,990  
     
T. Rowe Retirement 2025 Index Fund
  
Mutual fund
         1,075,582  
     
T. Rowe Retirement 2030 Index Fund
  
Mutual fund
         956,924  
     
T. Rowe Retirement 2035 Index Fund
  
Mutual fund
         531,618  
     
T. Rowe Retirement 2040 Index Fund
  
Mutual fund
         396,004  
     
T. Rowe Retirement 2045 Index Fund
  
Mutual fund
         125,384  
     
T. Rowe Retirement 2050 Index Fund
  
Mutual fund
         37,581  
     
T. Rowe Retirement 2055 Index Fund
  
Mutual fund
         5,686  
  *  
American Century Growth Fund
  
Mutual fund
         11,853,182  
  *  
CRM Mid Cap Value Fund
  
Mutual fund
         5,572,383  
  *  
Morgan Stanley International Equity Fund
  
Mutual fund
         8,911,744  
     
Total mutual funds
           $ 106,737,008  
  *  
State Street Global Advisors S&P 500 Fund
  
Common collective trust
       $ 9,453,438  
     
Schwab Personal Choice
                
     
Retirement Account
  
Participant directed brokerage
       $ 2,361,721  
  *  
Cleco Corporation
  
Common stock
       $ 77,952,107  
  *  
Participant loans
  
Participant loan accounts with interest rates
    ranging from 6.00% to 10.25% and maturity
    dates ranging from 2008 to 2012
  
$      -
   $ 3,833,609  
         
Total Assets Held
       $ 200,337,883  
_______________________
                
*Denotes party-in-interest.
                




 
 
10

Cleco Power LLC 401(k) Savings and Investment Plan
Schedule H, line 4j - Schedule of Reportable Transactions
December 31, 2007
EIN:  72-0244480
 
(a)
  
(b)
  
(c)
  
(d)
(e)
  
(f)
    
(g)
  
(h)
  
(i)
                           
Current value
    
                 
Expense
        
of asset on
    
Identity of
  
Description
  
Purchase
  
Selling
Lease
  
incurred with
    
Cost of
  
transaction
  
Net gain
party involved
  
of asset
  
price
  
price
rental
  
transaction
    
asset
  
date
  
or (loss)
Cleco Corporation
  
Common Stock
  
   $     51,224,302
              
   $   51,224,302
  
   $   51,224,302
    
Cleco Corporation
  
Preferred Stock
        $ 48,503,599          
   $   30,698,864
  
   $   48,503,599
  
$17,804,735










 
11

 


SIGNATURE


          The Plan.  Pursuant to the requirements of the Securities Exchange Act of 1934, the trustees (or other persons who administer the employee benefit plan) have duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized.





 
CLECO POWER LLC
401(k) SAVINGS AND INVESTMENT PLAN
   
   
Date:  June 16, 2008
By:   /s/ R. Russell Davis
 
(R. Russell Davis, Chairman of the Retirement Committee of Cleco Corporation, Plan Administrator)
   
   


 
 

EXHIBIT

INDEX




Exhibit Number
Description
   
23
Consent of McElroy, Quirk & Burch (APC)