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Cleco Corporation (NYSE:CNL)

Q4 2013 Results Earnings Conference Call

February 26, 2014 8:30 a.m. ET

Executives

Robbyn Cooper - Investor Relations

Bruce Williamson - Chief Executive Officer, President

Thomas Miller - Chief Financial Officer and Senior Vice President

Darren Olagues - President of Cleco Power

Analysts

Michael Lapides - Goldman Sachs

Paul Ridzon - KeyBanc Capital Markets

Brian Russo - Ladenburg Thalmann

Operator

Welcome to the Cleco Corporation Fourth Quarter 2013 Earnings Call. My name is Sivian, and I will be your operator for today's call. [Operator Instructions] Please note that this conference is being recorded. I will now like to turn the call over to Ms. Robbyn Cooper. Ms. Cooper, you may begin.

Robbyn Cooper

Good morning, and welcome to Cleco Corporation's 2013 fourth quarter and year-end earnings call. You can access this call and slide presentation live via the internet from Cleco's website at www.cleco.com/investors. Telephone and internet replays can be accessed through our website. The dial-in number for the telephone replay is (888) 843-7419, if in the U.S., or (630) 652-3042, if outside the U.S. The conference ID is 36518736.

With me on the call today are Bruce Williamson, President and Chief Executive Officer of Cleco Corporation; and Tom Miller, Senior Vice President and Chief Financial Officer, along with other members of Cleco management.

Before we begin, please keep in mind that during the conference call we will make some forward-looking statements. These statements are subject to many risks and uncertainties. Actual results may differ materially from those contemplated in our forward-looking statements. Please refer to our cautionary note regarding forward-looking statements and risk factors in various reports filed with the U.S. Securities and Exchange Commission, including our 2013 report on Form 10-K. In addition, please note that the date of this conference call is February 26, 2014, and any forward-looking statements that we may make today are based on assumptions as of this date.

And with that, I will turn the call over to Bruce.

Bruce Williamson

Thanks, Robbyn. Good morning and thank you for joining us. Today we will review both our 2013 fourth quarter and year-end results. Let's start with the agenda for today's call which is on Slide 3 for those of you following along via the webcast.

I will begin today's call with some brief comments on our accomplishments for the year. Tom will then provide an overview of our fourth quarter and year-end results, and after the financial review I will address our outlook for 2014 and we will move to Q&A.

Please turn with me to Slide 4. Let me start by saying how pleased I am with our overall performance in 2013. We produced another strong year of earnings and successfully executed our strategy to deliver on key projects started in 2012. If you recall, last year at this time I told you we had two primary goals for 2013. To complete the transfer of Coughlin into Cleco Power and to successfully transition into the mid-continent independent system operator market. As I will discuss in more detail later in the call, this past year we have received the necessary regulatory approvals enabling us to achieve both of these goals.

With the regulatory approval in place, we now expect the transfer of Coughlin to take place in March. These projects provide a path for our future growth and I am proud of our accomplishments and look forward to the opportunities that lie ahead.

Moving to Slide 4. We will continue with our 2013 accomplishment. We had another strong year with operational earnings of $2.53 per share, up $0.07 compared to 2012. The 2013 earnings put us right at the midpoint of our narrowed earnings guidance range. We achieved these results primarily due to adjustments to the formula rate plan as a result of investments in Cleco Power, somewhat colder winter weather compared to calendar year 2012, and higher industrial and wholesale electric sales offset by higher taxes other than income taxes which includes property taxes.

In addition, last year we continued to focus on operating efficiently. We are sustaining cost management efforts first put in place in 2011, and striving to make them a continuing part of the culture of the company. Our financial discipline and attention to everyday operations continued to yield solid returns for our shareholders last year and our stock performance and growing dividend payments reflect these efforts. In 2013, our stock price increased 17% and on April 30 of last year, our stock reached an all time closing high of $49.52. Our stock continues to perform well this year and last Friday we have had another all time high closing at $49.75.

Strong earnings along with confidence in our financial strength prompted us to raise our annual dividend for the fifth time in the past 3.5 years. We increased the annual dividend on our company's common stock by $0.10 a share to $1.45, a 7% increase. And this increased dividend put us at a payout ratio of 57%, which is near the top end of our targeted range of 50% to 60%. And we continue to believe the strong positive cash flow from our underlying business helps support growing our dividends into the future.

Turning to operational accomplishments. I am pleased to announce that on December 19 we successfully joined MISO. Several months of systems training and testing helped facilitate a smooth transition into one of the largest electric markets in the nation. Our staff did a tremendous job in preparing us for this integration, both from a regulatory standpoint and operationally. To join MISO we needed state regulatory approval which we received a unanimous vote on in June, and we needed state approval for the accounting treatment of all charge sites and we received this unanimous approval in November.

Operating in the MISO market brings a number of changes to our organization, as we adapt to a new process and operational requirements, we are mindful that the market is still developing and it will take time for MISO South participants to determine guidance on seasonal cycle. We also feel the MISO market will benefit customers by offering increased reliability and more economic overall dispatch of generation. We also see strong possibilities for transmission investment and growth in the future, but I have said to many of you in recent investor meetings, this is likely a 2015 or 2016 type of opportunity, given that 2014 will primarily be a year of transition as the company navigates into the MISO market.

In 2013, we sought regulatory approval for many of the initiatives needed to support our growth strategy. I have already discussed the required approvals for joining MISO, and equally important we obtained the necessary regulatory approvals to transfer the Coughlin Power Station from Midstream to Cleco Power. While we received FERC approval in August, in December we received the state approval from the LPSC. As I mentioned earlier, we plan to complete the actual transfer of the plant next month. Coughlin is a valuable asset for our utility to own. The unit will help maintain our fuel diversity and is an efficient facility that produces reliable power.

With the completion of these regulatory approvals, our focus has now shifted to finalizing the FRP extension. In 2013, we continued to actively pursue wholesales agreements with municipalities and co-ops in the region. And we added two new contracts with existing customers that now includes capacity, energy and services. We also learned that we would lose two contracts. One at the end of 2013 and one in 2014. Even so, we remain optimistic that we can continue to grow the company through wholesale contracts and believe our diverse generation portfolio is attractive to load-serving entities that are seeking long-term stability of their energy cost.

It's also important to remember that even smaller contracts like MDEA that we added in October, are equal to about two years of retail load growth. So in effect, a wholesale contract like MDEA effectively doubles our growth.

Another accomplishment for 2013 is validation of our improvement in financial strength over the past two plus years. In July, Standard and Poor's upgraded Cleco Corporation's corporate credit rating and Cleco Power's senior unsecured rating to BBB+ from BBB. And in August, Moody's changed our outlook to positive from stable for both Cleco Corporation and Cleco Power. Then in January of this year, Moody's raised Cleco Corporations senior unsecured rating to BAA2 from BAA3, and Cleco Power to BAA1 from BAA2 while maintaining their positive outlook. In doing so the rating agencies have acknowledged the lower risk profile and enhanced financial strength and liquidity that we have built into the company.

Out of all of our 2013 accomplishments, another one that I most pleased with is our overall safety result. Two years ago we asked the safety department to implement a corporate-wide program with the goal of eliminating all avoidable accidents and injuries. The plan seeks out best practices over the various regional Cleco practices. And through adoption of this standardized, centrally run program, our employees were able to significantly improve their safe work performance and create a safer work environment.

Our goal for 2013 was to reduce the number of reportable injury cases by 20% compared to 2012. I am happy to report that we met and exceeded that goal. In 2013, we reduced personal injuries by 20% and avoidable vehicle accidents by 40%. And I would like to commend all of our employees and challenge them to continue to show improvement by working safely.

And with that, I will turn the call over to Tom to discuss both our fourth quarter and year-end financial results in more detail.

Thomas Miller

Thank you, Bruce, and good morning everyone. Please turn to Slide 7 for a review of our fourth quarter operational results. As you can see, for the quarter we reported operational earnings of $0.41 per share. This compares with operational earnings of $0.36 per share for the fourth quarter of 2012. Colder winter weather and higher base revenue through our formula rate plan drove earnings higher for the quarter.

Looking from left to right on the operational earnings reconciliation chart, Cleco Power's non-fuel base revenue was up $0.18 per share from the fourth quarter last year. Higher sales to industrial and wholesale customers and colder winter weather increased earnings by $0.08 per share. The formula rate plan adjustment, reflecting investments in Cleco Power, increased earnings by $0.07 per share. And adjustments to customer surcredits increased earnings by $0.02 per share and higher earnings resulting from lower rate refund provisions increased earnings by $0.01 per share.

Other revenue increased by $0.03 per share primarily due to $0.01 per share related to higher transmission rates and $0.02 per share of higher miscellaneous revenue. Higher other expenses decreased earnings by $0.12 per share primarily due to $0.08 per share related to planned outages at our generation facility and $0.07 per share of higher property taxes and higher taxes other than income. These higher expenses were partially offset by $0.01 per share related to the timing of the recovery of payment made under the Coughlin tolling agreement.

$0.01 per share of lower depreciation expense and a penny of lower other miscellaneous items. Interest expense was higher and decreased earnings by $0.02 per share primarily due to $0.01 per share of interest related to uncertain tax positions and $0.01 per share related to interest on taxes other than income. Finally, AFUDC was lower and decreased earnings by $0.02 per share primarily due to the completion of the Acadiana Load Pocket project in 2012.

Please turn to Slide 8 for a review of the year-to-date results. For 2013, GAAP earnings were $2.65 per diluted share, a decrease of $0.05 per share related to 2012. Operational earnings, however, were $2.53 per diluted share, an increase of $0.07 per share when compared to operational earnings in 2012. These amounts exclude non-operational items associated with life insurance policies and the Acadia Units 1 and 2 indemnifications.

Again, looking from left to right on the operational earnings reconciliation chart, Cleco Power's non-fuel base revenue, net of customer refunds, increased by $0.47 per share compared to 2012. The rise in revenue was caused by the effect of the formula rate plan adjustment, again reflecting investment in Cleco Power, increased earnings by $0.21 per share. Higher sales to industrial and wholesale customers in colder winter weather increased earnings by $0.19 per share. And adjustment to customer surcredits increased earnings by $0.08 per share and this was partially offset by the absence of $0.01 per share benefit recorded in 2012 related to the reversal of a rate refund accrual.

Other revenue increased by $0.07 a share, primarily due to transmission revenue as a result of last year's rate case. Higher other expenses decreased earnings by $0.27 per share when compared to 2012, primarily due to $0.12 per share of higher property taxes and taxes other than income. $0.11 per share related to planned outages at our generation facility, $0.11 per share of higher depreciation expense, $0.02 per share of higher miscellaneous items, $0.01 per share of higher outside services, and $0.01 per share to the loss on a disposal of assets related to the Coughlin outages. This was partially offset by $0.11 per share related to the timing of payments made under the Coughlin tolling agreement.

Interest expense was lower and increased earnings by $0.01 per share, primarily due to the $0.04 of positive benefit related to lower interest on refinancing and $0.02 per share related to a surcredit customer giveback. This was partially offset by $0.04 per share to the absence of a favorable tax settlement recorded in 2012 and $0.01 per share of interest related to taxes other than income. AFUDC was lower and decreased earnings by $0.05 per share, primarily due to the completion of the Acadiana Load Pocket project in 2012 and the timing of other capital transmission expenditures.

And finally, higher taxes decreased earnings by $0.16 per share, primarily due to $0.09 per share related to lower tax credits, $0.03 per share related to the absence of a favorable tax settlement recorded in 2012. $0.02 per share related to an increase in uncertain tax position reserves and $0.02 per share of miscellaneous tax items.

I will now turn to Slide 9 to discuss our 2014 guidance. You will recall, in early December we issued our 2014 consolidated operational earnings guidance of $2.65 to $2.75 per diluted share. As a reminder, this earnings guidance is based on normal weather and FRP outcome generally consistent with the current rate plan, and excludes adjustments related to life insurance policies and the expiring Acadia indemnifications. It also anticipates an effective tax rate of approximately 34%. Over the past few years, our effective tax rate has increased and we expect to return to a statutory rate of 38.5% in the upcoming years.

If we compare the midpoint of our 2013 guidance to the midpoint of our 2014 guidance, earnings increased 8% year-over-year. We expect to drive the increased earnings primarily through revenue additions resulting from our upcoming contract with DEMCO, which starts on April 1, and the continuation of our cost management efforts. We anticipate some of these benefits to be offset by higher property and income taxes.

Please turn with me to Slide 10 to discuss our capital expenditure plan for 2014 as well as the 2015 to 2018 planning period. In 2014, we will complete our MATS project, one of the many recent infrastructural projects modernizing our generation fleet. From 2015 to 2018, our maintenance and routine capital spend averages approximately $130 million per year, while depreciation runs $115 million to $125 million per year. Consistent with the current rate plan, we expect to maintain a capital structure of 51% equity and 49% debt at Power.

With that, Bruce will provide closing remarks.

Bruce Williamson

Thanks, Tom. Before going into Q&A, let me take a few minutes to discuss our outlook going forward. Please turn with me to Slide 12.

Just as we started last year by listing few key projects we plan to complete during the year, as we begin 2014 there are three goals. First, to work closely with the LPSC to finalize the FRP extension and in doing so provide certainty for our investors. Second, to complete the MATS compliance process including installation of equipment at three of our generating units and settlement of MATS recovery. This goal will make us fully compliant with federal laws ahead of the deadline and will create cleaner generators of electricity as we meet the needs of our customers.

Third, to continue to operate well in the new MISO environment. This is a big change for the company and I want to ensure we operate well through the various seasons which will impact our plans differently as customer demand fluctuates.

One of our most important task for 2014 is to wrap up the FRP extension that we filed with the LPSC in April of 2013, which also includes the rate treatment of the Coughlin transfer. We are currently working with state regulators to reach an outcome and anticipate finalizing our rate extension sometime in the second quarter of 2014.

In 2014 we will also complete our efforts to bring our solid fuel units into compliance with MATS. We have begun work to make one of our generating units MATS compliant and we will finish work on two more units this year. To allow adequate time to properly perform the work ahead that’s needed to complete the project, we have extended our schedule on MATS compliance more towards the end of the year. We were able to do this because we started early preparing for MATS and will still be four months ahead of schedule as we complete the project in December.

We anticipate that the LPSC will reach a decision regarding recovery of costs for MATS compliance in the fourth quarter of 2014. Our strong balance sheet supports our 2014 initiatives. We completed the year with $553 million of liquidity and anticipate after-tax cash flow of approximately $70 million to $100 million annually, once MATS has been fully funded. Going forward, we will seek growth opportunities that are prudent, beneficial for the company and our shareholders, and provide regulated risks and returns that support our strategy.

Finally, in 2014, we will work to advance our strategy to look for ways to pursue retail growth and secure wholesale load of adding long-term, full requirements contracts similar to that of DEMCO, which we will begin serving in April of this year. We believe our well-maintained fuel diverse fleet and our ability to deliver long-term reliable power will be an asset as we seek additional retail and wholesale load. Negotiating wholesale contracts can be a protracted process but these contracts do bring long-term value to both our customers and our shareholders. In executing these strategic initiatives, we remain focused on the fundamental components of our business, which is to operate safely and reliably, offer a quality customer service and provide long-term stable growth for our shareholders.

We believe we have the necessary skills and resources to carry out these goals and look forward to the year ahead. At this time we will open the call for questions.

Question-and-Answer Session

Operator

(Operator Instructions) And our first question comes from Michael Lapides from Goldman Sachs. Michael, please go ahead.

Michael Lapides - Goldman Sachs

Congrats on a really good year. Two questions, unrelated a little bit to each other, one a little bit more nuts and bolts. On O&M and on property taxes or taxes other than income taxes, do you look at 2013 as kind of the new normal? And then we should assume there is some level of growth or shrinkage going forward on both of those lines, or really all three, because you break out the O&M on all three of those line items. Or is there anything that was unusual in 2013, either good or bad, that won't show up or would show up on 2014 and beyond?

Thomas Miller

Let's deal with the O&M. The O&M associated with the plant operations, we continue to experience mild inflations similar to, with the economy. On the G&A we are still trying to hold that about even. When you talk about property taxes, I would say that we now hit sort of stable level going forward and we probably go up a little bit from last year.

Michael Lapides - Goldman Sachs

Got it. And the plant outages and the large maintenance you incurred in the fourth quarter, is that an abnormal level of -- in a single of quarter of plant maintenance? Or are you kind of ramping up the level of maintenance you have done and that shows up on the income statement, not necessarily that gets capitalized.

Bruce Williamson

I will have Darren taken that.

Darren Olagues

Hey, Michael. There is a large outage that’s underway at one of our plants and that is driving an abnormal, if you will, level of O&M and capital spend that’s happening at that particular plant.

Michael Lapides - Goldman Sachs

Okay. And that was in the fourth quarter or that’s ongoing now?

Darren Olagues

It's ongoing. But we included it in the fourth quarter.

Bruce Williamson

Yes. There was some in the fourth quarter, there will be some in the first quarter. And then, the plant is Dolet, and then we would expect that that plant would be back on.

Darren Olagues

In early second quarter.

Michael Lapides - Goldman Sachs

But then you wouldn’t expect having similar level. What I am trying to figure out is, simply, is there an abnormal level?

Bruce Williamson

Yes, you wouldn’t anticipate an outage of the magnitude resulting [ph] in the future, say 2015.

Darren Olagues

That’s correct. I guess a point to remember to, Michael, under the current rate plan, once we hit a cap on O&M at our generation fleet, we start to defer dollars over and above the numbers, about $25 million to $26 million. Once we incur non-payroll O&M levels in excess of that, we defer that on the balance sheet. So what you are seeing year-over-year is, last year 2012, we did not hit that cap. In 2013, we did and will going forward. And so we are hitting a baseline for the next couple of years because we are going to start to push things on the balance sheet. We just didn’t get all the way there in prior years and so you are seeing that uplift year-over-year. But the rate construct, I would just remind you that, allows us to, once we hit that inflection point, to push any incremental O&M on the balance sheet for future recovery.

Michael Lapides - Goldman Sachs

Got it. And then in the formula rate plan. Can you just talk about the process from here? Meaning, are we going to see testimony come out of either the LPSC staff or interveners? Or is it already in kind of settlement talk?

Darren Olagues

Michael, as you know, we are in discussion with staff right now about the extension term. I would expect you to see us come out with supplemental testimony, supplemental to our April 2013 testimony, that would be reflective of the current talks. I don’t want to give you the exact timeframe, but that’s sort of the next milestone if you will, in the process. Once that supplemental testimony is filed, the regulatory process then will really be underway with the interveners, with staff, response testimony. And as I think Bruce mentioned earlier, ultimately shooting for a second quarter, late second quarter vote ultimately with a settlement.

Operator

And our next question comes from Paul Ridzon from KeyBanc. Paul, please go ahead.

Paul Ridzon - KeyBanc Capital Markets

You mentioned that mentioned that transmission in MISO could start in '15 or '16. Is that planning or is that actual capital flowing?

Bruce Williamson

No, I think capital would be out in 2015 or '16. I think what you will see this year is, primarily as you transition into a MISO market, we are basically going through a winter which is a high demand period, move through a spring, a lower demand period into the summer, obviously very high demand there. And that will be sort of learning how the system operates, how power is moving, where projects are needed. I think planning for those projects would then be been worked on sort of more in the second half of this year. And then you are working through the various regulatory approval processes that take place where you have got to run them through MISO approval and some FERC components on some of the types of the projects and then, obviously, getting state approval as well. That will be something that would be taking place in '15. You could have some capital when spending and money hitting the ground in '15, but it's probably more of a, you know the bulk of it I think would probably be more of a 2016 type of event.

Paul Ridzon - KeyBanc Capital Markets

Any sense at this point of the magnitude of capital?

Bruce Williamson

[indiscernible] paying for these things.

Paul Ridzon - KeyBanc Capital Markets

Is there any sense at this point of how much capital there could be?

Bruce Williamson

No, we are not putting a number out because as we have talked with some investors here lately, I think the minute we put a number out then your follow up question is going to be, okay, exactly which project is it and what's the right of way, and from where to where and all of that. And so, no, we are not putting a longer-term number out. The capital budget that we put out, we give you a detailed breakdown for this year and we gave a five-year forward look where we have the maintenance capital plus a little bit of some potential capital for around 316(b) type water issues. But we don’t want to just put in one or a $200 million or some number of just a wedge that just says, here's potential transmission capital but we don’t really have it narrowed down to specific projects yet.

Paul Ridzon - KeyBanc Capital Markets

Thank you. And the FRP should be resolved by late second quarter regardless of whether you have a settlement or not?

Bruce Williamson

No. That’s assumes that we have a settlement. That assumes we have a settlement with the staff and the interveners.

Paul Ridzon - KeyBanc Capital Markets

Okay. And what if it were fully litigated?

Darren Olagues

If it were fully litigated, it would be, I think you are into late this year, you know that process is much more protracted.

Bruce Williamson

Generally that’s not the history of the company.

Paul Ridzon - KeyBanc Capital Markets

Right.

Darren Olagues

Based on where we sit right now, Paul, I think that’s unlikely.

Paul Ridzon - KeyBanc Capital Markets

Great. And then lastly. Do you have the weather for the fourth quarter and full year versus normal?

Bruce Williamson

You mean is that in our 2013 results? Yes, it's in our results.

Paul Ridzon - KeyBanc Capital Markets

I wanted you to -- can you quantify what weather was versus normal for the fourth quarter and full year?

Bruce Williamson

Tom?

Thomas Miller

I will talk about where we are. We talked about, for fourth quarter, revenue being up. We had $0.08 there, that’s year-over-year. And I would say you could split that maybe a little bit more winter weather and the rest would be wholesale and industrial sales.

Bruce Williamson

Yes. Paul, I guess I would just say, here is sort of how the year went. I mean if you remember that the year before there was almost around the country, there was almost no winter. So when you look at January, February of '13, it was colder so the demand was a little bit higher. We went through the spring and the summer and it was probably a little -- maybe the spring was a little bit warmer, not a lot. And then it was actually kind of mild for a little while. We had some heat hit for a couple of weeks in September and then we had a little cold weather in December. But, I mean, trying to break all that down and tear out winter versus summer versus spring and all of that, I think when you just look at the year in the aggregate, the major driver was probably that the winter weather was marginally colder than the prior year.

Operator

Our next question comes from Brian Russo from Ladenburg Thalmann. Brian, please go ahead.

Brian Russo - Ladenburg Thalmann

Just to be clear on the FRP process. It is my understanding that we don't even have a procedural schedule yet and I think there is a status conference scheduled for February 27. Is that when we'll get a new procedural schedule?

Darren Olagues

That’s correct. And the procedural schedule, intervener status will be set as well.

Brian Russo - Ladenburg Thalmann

Okay. And in that schedule, there will be a date for you to file supplemental testimony or can that occur at any time?

Darren Olagues

No, that can occur at any time.

Brian Russo - Ladenburg Thalmann

Okay. And when do you expect that?

Darren Olagues

You know it would be -- it will likely be in the next month that we would file, given the pace of things. But we are not -- we are certain everything is not buttoned down. So I somewhat hesitate to give that you timeframe. I think in broad strokes, Brian, we think we will have a settlement agreement and a vote by the end of the second quarter. Given all the parties, given where the issues sit, I think that is a good estimate of when we will be done.

Brian Russo - Ladenburg Thalmann

Okay. And in the supplemental testimony, will it give us some color on the settlement discussions?

Darren Olagues

The settlement terms, I mean it would be -- the process which has been typically all typically all [ph] process, we have detailed discussions with staff. And our supplemental testimony reflects what we think is something in line with what staff is thinking. That’s not a vote, that’s not an absolute agreement. But there will be some, it will reflect where we think we are and a good sense of where we think the key terms of the deal will be, of the extension will be.

Bruce Williamson

It's in effect the equivalent of like on a deal, the term sheet, rather than the actual detailed, definitive agreement. It gives you a framework of where things are heading.

Darren Olagues

That’s right. Unsigned term sheet.

Bruce Williamson

Yes.

Brian Russo - Ladenburg Thalmann

Got it. Understood. Just then lastly, you had some storms roll through the service territory earlier this month, maybe some outages. Any information on storm costs or the reliability of the infrastructure, etcetera?

Bruce Williamson

You know really what happened, probably, I guess starting, let's say the first week of January down there and obviously this was sticking with because we are talking here 2013 and so not getting too much into '14. But obviously people know. I think the short answer is, as we talked to people in an investor conference a couple of weeks ago up in Colorado, it was cold. I think four straight weeks where we had snow on the ground in Central Louisiana. That’s obviously not normal. Out of those four weeks, less probably I guess, a fifth week or so, billed with cold weather, we had one week where we had some significant icing on the lines. We had outages that took probably about three days or so to recover everybody fully, maybe a little bit longer for a complete recovery.

You know the main thing was the system operated very well. And load was high and the system overall, both generation, transmission, distribution operated very well. We had one week where we had a lot of icing on the lines and tree limbs falling, and a lot of activity that was thankfully done safely and power was restored as quickly possible.

Operator

We have no further questions at this time. I would like to turn the call back over to Mr. Bruce Williamson for closing remarks.

Bruce Williamson

Thank you for your questions this morning. I would like to briefly update you on upcoming investor travel. Next Monday management will attend the Morgan Stanley Conference in New York City and hold some additional investor meetings around the city. We also plan to meet with investors in the Mid-Atlantic, Midwest and other locations over the first half of 2014. If you would like to meet with us or obviously if you have any follow-up questions, please contact our investor relations team. I look forward to seeing many of you throughout 2014. Thank you again for your interest in Cleco.

Operator

Thank you, ladies and gentlemen. This concludes today's conference. Thank you for participating. You may now disconnect.

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