Energy

Investing in the resilience of Central Louisiana’s electricity transmission system

American utility company Cleco is investing in its electrical transmission infrastructure to improve its reliability, increase its resilience, and meet future power needs

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SectorInfrastructure
Sub-sectorUtilities
LocationsUnited States

Opportunity

Cleco is a privately owned, regulated electric utility company that has been operating in the US state of Louisiana for over 90 years. It’s network spans over 1,350 miles of transmission lines and 12,300 miles of distribution lines, serving approximately 295,000 customers and employing more than 1,200 people.1

Louisiana is one of the states most impacted by weather and climate-related disasters such as storms, floods and hurricanes, making its utilities infrastructure especially prone to disruption.2 Strong winds and heavy rainfall cause flooding and falling trees which can damage transmission lines and electricity substations, impacting critical customers, such as hospitals and emergency services, vulnerable communities, first responders and other essential services.2

Furthermore, Louisiana has one of the highest per capita electricity consumption rates in the US and its electricity grid suffers from congestion and faces growing demand from a broad range of residential and commercial needs.3


Approach

Since 2016, Macquarie Asset Management (MAM) has supported Cleco's investment in measures to reinforce its transmission infrastructure to create a stronger, more resilient grid that and meet customers’ growing power needs and supports current and future economic opportunities for Louisiana’s communities.2

Following initial construction work to support the expansion of transmission capacity in South-Central Louisiana, Cleco entered a second and third phase of upgrades with the support of MAM. Investing over $US312m to improve the structural integrity and capacity of its network, Cleco constructed over 100 new steel transmission towers, four new substations, and installed high-voltage transmission lines capable of supporting increased electrical load and engineered to withstand hurricane-force winds.4

In November 2025, the Louisiana Public Service Commission unanimously approved the largest single grid resiliency investment in Cleco’s history. With efforts to begin in 2026, Cleco’s five-year resiliency plan is expected to include over 550 new projects that harden grid infrastructure by replacing electric equipment, undergrounding certain segments of the system, reinforcing utility poles and elevating substations above flood plains.2 This ongoing investment is expected to further strengthen systemwide resilience, reduce storm-related costs, lead to fewer outages and faster restoration times, and result in over $US400m in value for Cleco's customers.2

Outcome

Cleco’s ongoing investment in advanced generation and grid infrastructure has recognised it as being one of the most reliable and resilient utilities in the state and industry.2

By strengthening its distribution and transmission grid, maintenance teams can more quickly address and repair localised issues such as downed wires, broken poles, and damaged cross-arms following severe weather events. This has been made possible by the reduced need for extensive repairs to upstream lines and substations, which are now less likely to sustain damage due to the system's enhanced resilience.

Moreover, the recent upgrades have expanded the system's transmission capacity, offering a safeguard against overloads that can lead to uncontrolled power outages. Alongside supporting existing communities, this has also helped advance the growth of the Louisiana economy, with Cleco’s grid offering consistent, reliable, low-cost energy that high-demand operations, such data centers and high-performance computing, rely on.5

$US312m

in equipment
to upgrade transmission system in a hurricane-prone region4

Electric Network, Power Grid, Electrical Grid, Electricity Network, Power Distribution, Electric Infrastructure, Energy Grid, Power System, Electrical Network, Energy Distribution

550+

new projects to harden grid infrastructure2

finance, loan, repayment, percentage, cycle

$US400m+

in estimated value for Cleco customers from its five-year resiliency plan2

13,700+

miles of transmission and distribution lines6

Our grid resiliency investments will reduce outages and lead to faster restoration times. In addition, a stronger, more resilient grid will help attract more business, jobs and economic opportunities for our Louisiana communities.” 

Andre Guillory
Chief Customer Officer
Cleco

 

Certain statements about Macquarie made by portfolio company executives herein are intended to illustrate Macquarie’s business relationship with such persons, including with respect to Macquarie’s facilities as a business partner, rather than Macquarie’s capabilities or expertise with respect to investment advisory services.  Portfolio company executives were not compensated in connection with their participation, although they generally receive compensation and investment opportunities in connection with their portfolio company roles, and in certain cases are also owners of portfolio company securities and/or investors in Macquarie-sponsored vehicles. Such compensation and investments subject the participant to potential conflicts of interest in making the statements herein.

  1. Cleco, ‘About Us’, January 2026.
  2. Cleco, ‘Cleco’s largest grid resiliency investment approved by LPSC’, November 2025
  3. Louisiana Legislative Auditor, Louisiana’s Electric Profile, January 2025
  4. T&D World, ‘Protecting against hurricanes in South-Central Louisiana’, 28 April 2022
  5. Cleco, ‘Cleco Fact Book’, July 2025
  6. Cleco, ‘About Us’, January 2026.