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**EXHIBIT 10(b)**

** **

| **CLECO CORPORATION**                                               |
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| **2000 LONG-TERM  INCENTIVE COMPENSATION PLAN**                     |
| ** **

                                                   |
| Amendment No. 2                                                     |
| **(Elimination of  Grant to Eligible Directors) **

** ** |

| **Whereas,**Cleco  Corporation, a corporation organized and existing under the laws of the State  of Louisiana (the "Company"), adopted the 2000 Long-Term Incentive  Compensation Plan (the "LTIP"), which plan was approved by the shareholders  of the Company on April 28, 2000;   |
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| **Whereas,**  the Company now desires to amend the LTIP to eliminate the award of an  immediately exercisable Nonqualifed Stock Option to nonemployee members of  the Board of Directors of the Company upon election and, thereafter, upon  reelection to the Board;                                      |
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| **Whereas,**Section  12.1 of the LTIP permits the Board of Directors of the Company to amend the  LTIP, subject to any limitations imposed by applicable law;                                                                                                                                              |
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| **Now,  Therefore,**effective as of July 23, 2004, Section 11.3 of the LTIP shall  be amended and restated in its entirety as follows:                                                                                                                                                                     |
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| "11.3       **Grant  to Eligible Directors.**  This section intentionally left blank."                                                                                                                                                                                       |
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| **This  Amendment No. 2**was approved by the Board of Directors of the Company on  July 23, 2004, to be effective as of the dates set forth above.                                                                                                                                                         |

| **                                        CLECO  CORPORATION**                                                                                                                                                                                                      |
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| ** **                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| **                                        By:     /s/  Catherine C.  Powell                           ** |
| ** **                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| **                                        Its:     Sr.  Vice President - Corporate Services **                                                                                                                                             |

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