Toledo Bend
Bi-State
Alliance

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CLECO Letter to Alliance

Cleco Corporation
2030 Donahue Ferry Road
PO Box 5000
Pineville, LA 71361-5000
Tel 318 484-7400

CLECO

August 24, 1998

Mr. Larry E. Kelly, Chairman
Toledo Bend Bi-State Alliance
P O Box 873
Many, LA 71449

Dear Mr. Kelly:

I am writing you today to deliver some positive news and to keep you updated on our efforts regarding the Toledo Bend Reservoir situation.

We are pleased to report that since Wednesday, August 13, 1998, we have been able to reduce power generation at the Toledo Bend Dam by 30%. We committed to you and the Sabine River Authority some time ago that if conditions changed we would try to accomodate the requests of the homeowners and businesses around the lake in any way possible. With the recent rain and slightly cooler conditions, we have done just that and deferred generation for 3 hours every day. However, this situation is being evaluated on a daily basis and could change at any time.

We continue to meet with representatives from both the Texas and Louisiana Sabine River Authorities and Entergy to discuss possible long term solutions. Our meetings thus far have been productive, and we are diligently exploring all options.

I will keep you informed of any new developments as meetings occur. Please feel free to call me if you have any questions regarding this matter at (318) 484-7623.

Sincerely,

Tari A. Powell
Manager- Governmental Services

cc: Don Brady - Entergy
Linda Curtis - SRA/LA
Sam Collins - SRA/TX


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