Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Oct. 21, 2015 | |
Entity Information [Line Items] | ||
Entity Registrant Name | CLECO CORP | |
Entity Central Index Key | 1,089,819 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Cleco Corporation Common Stock, Shares Outstanding | 60,482,051 | |
Cleco Power [Member] | ||
Entity Information [Line Items] | ||
Entity Registrant Name | CLECO POWER LLC | |
Entity Central Index Key | 18,672 | |
Entity Filer Category | Non-accelerated Filer |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Operating revenue [Abstract] | ||||
Electric operations | $ 325,994 | $ 352,763 | $ 880,169 | $ 939,519 |
Other operations | 19,937 | 19,497 | 53,472 | 48,878 |
Affiliate revenue | 0 | 0 | 0 | 0 |
Gross operating revenue | 345,931 | 372,260 | 933,641 | 988,397 |
Electric customer credits | (463) | (874) | (3,642) | (23,555) |
Operating revenue, net | 345,468 | 371,386 | 929,999 | 964,842 |
Operating Expenses [Abstract] | ||||
Fuel used for electric generation | 105,052 | 104,463 | 277,187 | 220,206 |
Power purchased for utility customers | 31,544 | 63,024 | 109,758 | 197,141 |
Other operations | 33,021 | 29,851 | 93,018 | 85,568 |
Maintenance | 20,183 | 20,558 | 60,700 | 79,173 |
Depreciation | 39,120 | 37,834 | 112,866 | 117,145 |
Taxes other than income taxes | 13,145 | 7,273 | 38,734 | 32,946 |
Merger transaction costs | 831 | 1,141 | 2,561 | 1,506 |
Gain on sale of assets | 0 | (145) | ||
Total operating expenses | 242,896 | 264,144 | 694,824 | 733,540 |
Operating income | 102,572 | 107,242 | 235,175 | 231,302 |
Interest income | 346 | 416 | 734 | 1,369 |
Allowance for equity funds used during construction | 660 | 631 | 2,197 | 4,291 |
Other income | 162 | 848 | 1,279 | 4,314 |
Other expense | (2,723) | (685) | (3,494) | (1,727) |
Interest charges [Abstract] | ||||
Interest charges, including amortization of debt expense, premium, and discount, net | 18,781 | 13,375 | 59,264 | 54,767 |
Allowance for borrowed funds used during construction | (188) | (200) | (640) | (1,259) |
Total interest charges | 18,593 | 13,175 | 58,624 | 53,508 |
Income before income taxes | 82,424 | 95,277 | 177,267 | 186,041 |
Federal and state income tax expense | 27,761 | 24,442 | 65,448 | 52,649 |
Net income | 54,663 | 70,835 | 111,819 | 133,392 |
Net income applicable to common stock | $ 54,663 | $ 70,835 | $ 111,819 | $ 133,392 |
Basic average number of common shares outstanding (in shares) | 60,481,584 | 60,372,569 | 60,474,228 | 60,410,122 |
Diluted average number of common shares outstanding (in shares) | 60,793,391 | 60,689,596 | 60,759,939 | 60,711,543 |
Basic earnings per average common share (in dollars per share) | $ 0.90 | $ 1.17 | $ 1.85 | $ 2.21 |
Diluted earnings per average common share (in dollars per share) | 0.90 | 1.17 | 1.84 | 2.20 |
Dividends declared per share of common stock (in dollars per share) | $ 0.40 | $ 0.40 | $ 1.20 | $ 1.1625 |
Cleco Power [Member] | ||||
Operating revenue [Abstract] | ||||
Electric operations | $ 325,994 | $ 352,763 | $ 880,169 | $ 939,519 |
Other operations | 19,418 | 18,957 | 51,913 | 47,256 |
Affiliate revenue | 240 | 332 | 904 | 998 |
Gross operating revenue | 345,652 | 372,052 | 932,986 | 987,773 |
Electric customer credits | (463) | (874) | (3,642) | (23,555) |
Operating revenue, net | 345,189 | 371,178 | 929,344 | 964,218 |
Operating Expenses [Abstract] | ||||
Fuel used for electric generation | 105,052 | 104,463 | 277,187 | 220,206 |
Power purchased for utility customers | 31,544 | 63,024 | 109,758 | 202,608 |
Other operations | 33,639 | 30,816 | 93,770 | 85,279 |
Maintenance | 19,932 | 19,926 | 60,106 | 76,386 |
Depreciation | 38,376 | 37,518 | 111,485 | 115,016 |
Taxes other than income taxes | 12,680 | 7,128 | 37,159 | 31,197 |
Total operating expenses | 241,223 | 262,875 | 689,465 | 730,692 |
Operating income | 103,966 | 108,303 | 239,879 | 233,526 |
Interest income | 303 | 398 | 607 | 1,349 |
Allowance for equity funds used during construction | 660 | 631 | 2,197 | 4,291 |
Other income | 223 | 476 | 1,521 | 1,228 |
Other expense | (544) | (684) | (1,606) | (1,625) |
Interest charges [Abstract] | ||||
Interest charges, including amortization of debt expense, premium, and discount, net | 18,497 | 14,686 | 58,252 | 56,144 |
Allowance for borrowed funds used during construction | (188) | (200) | (640) | (1,259) |
Total interest charges | 18,309 | 14,486 | 57,612 | 54,885 |
Income before income taxes | 86,299 | 94,638 | 184,986 | 183,884 |
Federal and state income tax expense | 27,638 | 29,094 | 65,906 | 59,375 |
Net income | $ 58,661 | $ 65,544 | $ 119,080 | $ 124,509 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Net income | $ 54,663 | $ 70,835 | $ 111,819 | $ 133,392 |
Other comprehensive income, net of tax [Abstract] | ||||
Postretirement benefits gain (net of tax) | 586 | 318 | 1,851 | 1,600 |
Net gain on cash flow hedges (net of tax) | 53 | 53 | 159 | 159 |
Total other comprehensive income, net of tax | 639 | 371 | 2,010 | 1,759 |
Comprehensive income, net of tax | 55,302 | 71,206 | 113,829 | 135,151 |
Cleco Power [Member] | ||||
Net income | 58,661 | 65,544 | 119,080 | 124,509 |
Other comprehensive income, net of tax [Abstract] | ||||
Postretirement benefits gain (net of tax) | 218 | 92 | 419 | 839 |
Net gain on cash flow hedges (net of tax) | 53 | 53 | 159 | 159 |
Total other comprehensive income, net of tax | 271 | 145 | 578 | 998 |
Comprehensive income, net of tax | $ 58,932 | $ 65,689 | $ 119,658 | $ 125,507 |
Consolidated Statements of Com4
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Net tax expense of postretirement benefits | $ 366 | $ 199 | $ 1,158 | $ 1,001 |
Net tax expense on cash flow hedges | 33 | 33 | 99 | 99 |
Cleco Power [Member] | ||||
Net tax expense of postretirement benefits | 138 | 58 | 264 | 525 |
Net tax expense on cash flow hedges | $ 33 | $ 33 | $ 99 | $ 99 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Current assets [Abstract] | ||
Cash and cash equivalents | $ 17,329 | $ 44,423 |
Restricted cash and cash equivalents | 3,702 | 8,986 |
Customer accounts receivable (less allowance for doubtful accounts) | 61,503 | 41,500 |
Other accounts receivable | 21,264 | 28,098 |
Unbilled revenue | 40,494 | 38,475 |
Fuel inventory, at average cost | 62,251 | 64,747 |
Material and supplies inventory, at average cost | 77,041 | 71,124 |
Energy risk management assets | 14,563 | 10,776 |
Accumulated deferred federal and state income taxes, net | 26,083 | 76,785 |
Accumulated deferred fuel | 18,662 | 21,554 |
Cash surrender value of company-/trust-owned life insurance policies | 71,480 | 71,167 |
Prepayments | 7,161 | 10,284 |
Regulatory assets | 14,497 | 12,212 |
Other current assets | 3,237 | 473 |
Total current assets | 439,267 | 500,604 |
Property, plant, and equipment [Abstract] | ||
Property, plant, and equipment | 4,616,808 | 4,508,960 |
Accumulated depreciation | (1,512,711) | (1,442,960) |
Net property, plant, and equipment | 3,104,097 | 3,066,000 |
Construction work in progress | 76,971 | 99,458 |
Total property, plant, and equipment, net | 3,181,068 | 3,165,458 |
Equity investment in investees | 16,380 | 14,540 |
Prepayments | 4,355 | 4,891 |
Restricted cash and cash equivalents | 15,878 | 15,130 |
Regulatory assets - deferred taxes, net | 236,341 | 234,370 |
Regulatory assets | 287,031 | 311,867 |
Net investment in direct financing lease | 13,473 | 13,498 |
Intangible asset | 78,608 | 90,642 |
Tax credit fund investment, net | 8,488 | 7,251 |
Other deferred charges | 24,460 | 20,822 |
Total assets | 4,305,349 | 4,379,073 |
Current liabilities [Abstract] | ||
Long-term debt due within one year | 19,382 | 18,272 |
Accounts payable | 85,198 | 127,268 |
Customer deposits | 54,910 | 53,411 |
Provision for rate refund | 4,164 | 2,264 |
Taxes payable | 28,282 | 2,197 |
Interest accrued | 21,909 | 8,669 |
Energy risk management liabilities | 488 | 827 |
Regulatory liabilities - other | 468 | 312 |
Deferred compensation | 9,975 | 11,374 |
Other current liabilities | 16,014 | 13,176 |
Total current liabilities | 240,790 | 237,770 |
Long-term liabilities and deferred credits [Abstract] | ||
Accumulated deferred federal and state income taxes, net | 936,170 | 918,858 |
Accumulated deferred investment tax credits | 3,474 | 4,161 |
Postretirement benefit obligations | 205,084 | 197,623 |
Regulatory liabilities - other | 0 | 312 |
Restricted storm reserve | 15,859 | 14,916 |
Other deferred credits | 25,005 | 28,510 |
Total long-term liabilities and deferred credits | 1,185,592 | 1,164,380 |
Long-term debt, net | 1,207,217 | 1,349,653 |
Total liabilities | $ 2,633,599 | $ 2,751,803 |
Commitments and Contingencies (Note 11) | ||
Shareholders’ equity [Abstract] | ||
Common stock | $ 61,059 | $ 61,051 |
Premium on common stock | 417,022 | 415,482 |
Retained earnings | 1,247,506 | 1,208,712 |
Treasury stock, at cost | (23,182) | (25,310) |
Accumulated other comprehensive loss | (30,655) | (32,665) |
Total common shareholders’ equity | 1,671,750 | 1,627,270 |
Total liabilities and shareholders’ equity | 4,305,349 | 4,379,073 |
Cleco Power [Member] | ||
Current assets [Abstract] | ||
Cash and cash equivalents | 15,821 | 39,162 |
Restricted cash and cash equivalents | 3,702 | 8,986 |
Customer accounts receivable (less allowance for doubtful accounts) | 61,503 | 41,500 |
Accounts receivable - affiliate | 1,030 | 23,621 |
Other accounts receivable | 21,075 | 27,949 |
Unbilled revenue | 40,494 | 38,475 |
Fuel inventory, at average cost | 62,251 | 64,747 |
Material and supplies inventory, at average cost | 77,041 | 71,124 |
Energy risk management assets | 14,563 | 10,776 |
Accumulated deferred federal and state income taxes, net | 0 | 6,725 |
Accumulated deferred fuel | 18,662 | 21,554 |
Cash surrender value of company-/trust-owned life insurance policies | 19,923 | 19,678 |
Prepayments | 6,078 | 7,283 |
Regulatory assets | 14,497 | 12,212 |
Other current assets | 2,471 | 368 |
Total current assets | 359,111 | 394,160 |
Property, plant, and equipment [Abstract] | ||
Property, plant, and equipment | 4,601,293 | 4,495,490 |
Accumulated depreciation | (1,502,208) | (1,433,206) |
Net property, plant, and equipment | 3,099,085 | 3,062,284 |
Construction work in progress | 76,675 | 96,702 |
Total property, plant, and equipment, net | 3,175,760 | 3,158,986 |
Equity investment in investees | 16,372 | 14,532 |
Prepayments | 4,355 | 4,891 |
Restricted cash and cash equivalents | 15,857 | 15,109 |
Regulatory assets - deferred taxes, net | 236,341 | 234,370 |
Regulatory assets | 287,031 | 311,867 |
Intangible asset | 78,608 | 90,642 |
Other deferred charges | 22,490 | 18,429 |
Total assets | 4,195,925 | 4,242,986 |
Current liabilities [Abstract] | ||
Long-term debt due within one year | 19,382 | 18,272 |
Accounts payable | 78,097 | 116,925 |
Accounts payable - affiliate | 7,622 | 7,760 |
Customer deposits | 54,910 | 53,411 |
Provision for rate refund | 4,164 | 2,264 |
Taxes payable | 39,673 | 3,115 |
Interest accrued | 21,906 | 9,224 |
Energy risk management liabilities | 488 | 827 |
Accumulated deferred federal and state income taxes, net | 3,678 | 0 |
Regulatory liabilities - other | 468 | 312 |
Other current liabilities | 12,254 | 9,380 |
Total current liabilities | 242,642 | 221,490 |
Long-term liabilities and deferred credits [Abstract] | ||
Accumulated deferred federal and state income taxes, net | 1,029,251 | 1,001,332 |
Accumulated deferred investment tax credits | 3,474 | 4,161 |
Postretirement benefit obligations | 145,936 | 135,825 |
Regulatory liabilities - other | 0 | 312 |
Restricted storm reserve | 15,859 | 14,916 |
Other deferred credits | 24,030 | 26,439 |
Total long-term liabilities and deferred credits | 1,218,550 | 1,182,985 |
Long-term debt, net | 1,169,217 | 1,292,653 |
Total capitalization | $ 2,734,733 | $ 2,838,511 |
Commitments and Contingencies (Note 11) | ||
Shareholders’ equity [Abstract] | ||
Total common shareholders’ equity | $ 1,565,516 | $ 1,545,858 |
Total liabilities and shareholders’ equity | $ 4,195,925 | $ 4,242,986 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Current assets [Abstract] | ||
Customer accounts receivable, allowance for doubtful accounts | $ 2,081 | $ 922 |
Shareholders’ equity [Abstract] | ||
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, issued (in shares) | 61,058,918 | 61,051,286 |
Common stock, outstanding (in shares) | 60,482,051 | 60,421,467 |
Treasury stock, at cost (in shares) | 576,867 | 629,819 |
Cleco Power [Member] | ||
Current assets [Abstract] | ||
Customer accounts receivable, allowance for doubtful accounts | $ 2,081 | $ 922 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Operating activities [Abstract] | ||
Net income | $ 111,819 | $ 133,392 |
Adjustments to reconcile net income to net cash provided by operating activities: [Abstract] | ||
Depreciation and amortization | 117,831 | 124,515 |
Unearned compensation expense | 4,819 | 4,974 |
Allowance for equity funds used during construction | (2,197) | (4,291) |
Net deferred income taxes | 62,871 | 51,584 |
Deferred fuel costs | 1,010 | (23,908) |
Cash surrender value of company-/trust-owned life insurance | 2,258 | (2,854) |
Changes in assets and liabilities: [Abstract] | ||
Accounts receivable | (24,890) | (19,666) |
Unbilled revenue | (2,019) | (18,245) |
Fuel, materials and supplies inventory | (3,422) | 505 |
Prepayments | 3,659 | 2,544 |
Accounts payable | (32,248) | (14,767) |
Customer deposits | 9,357 | 11,979 |
Postretirement benefit obligations | 10,430 | 6,501 |
Regulatory assets and liabilities, net | 13,858 | (2,881) |
Other deferred accounts | (8,029) | (17,006) |
Taxes accrued | 24,878 | 969 |
Interest accrued | 13,115 | 9,381 |
Other operating | 904 | 2,830 |
Net cash provided by operating activities | 304,004 | 245,556 |
Investing activities [Abstract] | ||
Additions to property, plant, and equipment | (116,678) | (160,181) |
Allowance for equity funds used during construction | 2,197 | 4,291 |
Return of investment in company-owned life insurance | 0 | 1,303 |
Premiums paid on company-/trust-owned life insurance | (2,571) | (2,831) |
Contributions to equity investment in investee | (1,840) | 0 |
Return of equity investment in tax credit fund | 1,649 | 1,541 |
Contributions to tax credit fund | (4,091) | (36,252) |
Transfers of cash from (to) restricted accounts, net | 4,536 | (4,989) |
Sale of restricted investments | 0 | 11,138 |
Maturity of restricted investments | 0 | 1,458 |
Other investing | 602 | (413) |
Net cash used in investing activities | (116,196) | (184,935) |
Financing activities [Abstract] | ||
Draws on credit facilities | 108,000 | 189,000 |
Payments on credit facilities | (147,000) | (167,000) |
Repayment of long-term debt | (100,824) | (14,876) |
Repurchase of common stock | 0 | (12,449) |
Dividends paid on common stock | (73,076) | (70,879) |
Other financing | (2,002) | (1,863) |
Net cash used in financing activities | (214,902) | (78,067) |
Net decrease in cash and cash equivalents | (27,094) | (17,446) |
Cash and cash equivalents at beginning of period | 44,423 | 28,656 |
Cash and cash equivalents at end of period | 17,329 | 11,210 |
Supplementary cash flow information [Abstract] | ||
Interest paid, net of amount capitalized | 42,201 | 42,536 |
Income taxes paid, net | 1,434 | 15,321 |
Supplementary non-cash investing and financing activities [Abstract] | ||
Accrued additions to property, plant, and equipment | 4,869 | 10,777 |
Issuance of common stock – ESPP | 0 | 220 |
Cleco Power [Member] | ||
Operating activities [Abstract] | ||
Net income | 119,080 | 124,509 |
Adjustments to reconcile net income to net cash provided by operating activities: [Abstract] | ||
Depreciation and amortization | 115,160 | 120,950 |
Unearned compensation expense | 1,465 | 1,461 |
Allowance for equity funds used during construction | (2,197) | (4,291) |
Net deferred income taxes | 34,073 | 66,426 |
Deferred fuel costs | 1,010 | (23,908) |
Changes in assets and liabilities: [Abstract] | ||
Accounts receivable | (24,847) | (19,492) |
Accounts and notes receivable, affiliate | 6,558 | 402 |
Unbilled revenue | (2,019) | (18,245) |
Fuel, materials and supplies inventory | (3,422) | 538 |
Prepayments | 1,741 | 1,736 |
Accounts payable | (29,097) | (10,656) |
Accounts and notes payable, affiliate | (2,377) | (1,887) |
Customer deposits | 9,357 | 11,979 |
Postretirement benefit obligations | 5,366 | 3,594 |
Regulatory assets and liabilities, net | 13,858 | (2,881) |
Other deferred accounts | (6,560) | (12,341) |
Taxes accrued | 58,915 | (5,139) |
Interest accrued | 12,681 | 8,584 |
Other operating | 1,602 | 2,272 |
Net cash provided by operating activities | 310,347 | 243,611 |
Investing activities [Abstract] | ||
Additions to property, plant, and equipment | (116,360) | (159,320) |
Allowance for equity funds used during construction | 2,197 | 4,291 |
Return of investment in company-owned life insurance | 0 | 1,303 |
Contributions to equity investment in investee | (1,840) | 0 |
Transfers of cash from (to) restricted accounts, net | 4,536 | (4,989) |
Sale of restricted investments | 0 | 11,138 |
Maturity of restricted investments | 0 | 1,458 |
Other investing | 602 | 587 |
Net cash used in investing activities | (110,865) | (145,532) |
Financing activities [Abstract] | ||
Draws on credit facilities | 63,000 | 122,000 |
Payments on credit facilities | (83,000) | (132,000) |
Repayment of long-term debt | (100,824) | (14,876) |
Distributions to parent | (100,000) | (85,000) |
Other financing | (1,999) | (1,858) |
Net cash used in financing activities | (222,823) | (111,734) |
Net decrease in cash and cash equivalents | (23,341) | (13,655) |
Cash and cash equivalents at beginning of period | 39,162 | 21,055 |
Cash and cash equivalents at end of period | 15,821 | 7,400 |
Supplementary cash flow information [Abstract] | ||
Interest paid, net of amount capitalized | 42,165 | 42,467 |
Income taxes paid, net | 565 | 257 |
Supplementary non-cash investing and financing activities [Abstract] | ||
Accrued additions to property, plant, and equipment | 4,860 | 10,720 |
Coughlin [Member] | Cleco Power [Member] | ||
Supplementary non-cash investing and financing activities [Abstract] | ||
Non-cash additions to property, plant, and equipment – Coughlin | $ 0 | $ 176,244 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Common Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Treasury Stock [Member] | Premium on Common Stock [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
Balances at Dec. 31, 2013 | $ (25,876) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | $ 133,392 | |||||
Other comprehensive income, net of tax | 1,759 | 1,759 | ||||
Balances at Sep. 30, 2014 | (24,117) | |||||
Balances at Jun. 30, 2014 | (24,488) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 70,835 | |||||
Other comprehensive income, net of tax | 371 | 371 | ||||
Balances at Sep. 30, 2014 | (24,117) | |||||
Balances at Dec. 31, 2014 | 1,627,270 | $ 61,051 | $ (25,310) | $ 415,482 | $ 1,208,712 | (32,665) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Common stock issued for compensatory plans | 3,676 | 8 | 2,128 | 1,540 | ||
Dividends on common stock | (73,025) | (73,025) | ||||
Net income | 111,819 | 111,819 | ||||
Other comprehensive income, net of tax | 2,010 | 2,010 | ||||
Balances at Sep. 30, 2015 | $ 1,671,750 | $ 61,059 | $ (23,182) | 417,022 | 1,247,506 | (30,655) |
Common stock, balance (in shares) at Dec. 31, 2014 | 61,051,286 | 61,051,286 | ||||
Treasury stock, balance (in shares) at Dec. 31, 2014 | (629,819) | (629,819) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Common stock issued for compensatory plans (in shares) | 7,632 | 52,952 | ||||
Common stock, balance (in shares) at Sep. 30, 2015 | 61,058,918 | 61,058,918 | ||||
Treasury stock, balance (in shares) at Sep. 30, 2015 | (576,867) | (576,867) | ||||
Balances at Jun. 30, 2015 | (31,294) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | $ 54,663 | |||||
Other comprehensive income, net of tax | 639 | 639 | ||||
Balances at Sep. 30, 2015 | $ 1,671,750 | $ 61,059 | $ (23,182) | $ 417,022 | $ 1,247,506 | $ (30,655) |
Common stock, balance (in shares) at Sep. 30, 2015 | 61,058,918 | 61,058,918 | ||||
Treasury stock, balance (in shares) at Sep. 30, 2015 | (576,867) | (576,867) |
Consolidated Statement of Chan9
Consolidated Statement of Changes in Common Shareholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Statement of Stockholders' Equity [Abstract] | ||||
Dividends on common stock per share (in dollars per share) | $ 0.40 | $ 0.40 | $ 1.20 | $ 1.1625 |
Consolidated Statement of Cha10
Consolidated Statement of Changes in Member's Equity - USD ($) $ in Thousands | Total | Accumulated Other Comprehensive Income (Loss) [Member] | Cleco Power [Member] | Cleco Power [Member]Member's Equity [Member] | Cleco Power [Member]Accumulated Other Comprehensive Income (Loss) [Member] |
Balances at Dec. 31, 2013 | $ (25,876) | $ (15,177) | |||
Increase (Decrease) in Member's Equity [Roll Forward] | |||||
Other comprehensive income, net of tax | $ 1,759 | 1,759 | $ 998 | 998 | |
Net income | 133,392 | 124,509 | |||
Balances at Sep. 30, 2014 | (24,117) | (14,179) | |||
Balances at Jun. 30, 2014 | (24,488) | (14,324) | |||
Increase (Decrease) in Member's Equity [Roll Forward] | |||||
Other comprehensive income, net of tax | 371 | 371 | 145 | 145 | |
Net income | 70,835 | 65,544 | |||
Balances at Sep. 30, 2014 | (24,117) | (14,179) | |||
Balances at Dec. 31, 2014 | 1,627,270 | (32,665) | 1,545,858 | $ 1,563,146 | (17,288) |
Increase (Decrease) in Member's Equity [Roll Forward] | |||||
Other comprehensive income, net of tax | 2,010 | 2,010 | 578 | 578 | |
Distributions to parent | (100,000) | (100,000) | |||
Net income | 111,819 | 119,080 | 119,080 | ||
Balances at Sep. 30, 2015 | 1,671,750 | (30,655) | 1,565,516 | 1,582,226 | (16,710) |
Balances at Jun. 30, 2015 | (31,294) | (16,981) | |||
Increase (Decrease) in Member's Equity [Roll Forward] | |||||
Other comprehensive income, net of tax | 639 | 639 | 271 | 271 | |
Net income | 54,663 | 58,661 | |||
Balances at Sep. 30, 2015 | $ 1,671,750 | $ (30,655) | $ 1,565,516 | $ 1,582,226 | $ (16,710) |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 1 — Summary of Significant Accounting Policies Principles of Consolidation The accompanying Condensed Consolidated Financial Statements of Cleco include the accounts of Cleco and its majority-owned subsidiaries after elimination of intercompany accounts and transactions. Basis of Presentation The Condensed Consolidated Financial Statements of Cleco Corporation and Cleco Power have been prepared in accordance with GAAP for interim financial information and with the instructions to Form 10-Q and Regulation S-X. Accordingly, these Condensed Consolidated Financial Statements do not include all of the information and notes required by GAAP for annual financial statements. The year-end Condensed Consolidated Balance Sheet data was derived from audited financial statements. Because the interim Condensed Consolidated Financial Statements and the accompanying notes do not include all of the information and notes required by GAAP for annual financial statements, the Condensed Consolidated Financial Statements and other information included in this quarterly report should be read in conjunction with the Consolidated Financial Statements and accompanying notes in the Registrants’ Combined Annual Report on Form 10-K for the year ended December 31, 2014. These Condensed Consolidated Financial Statements, in the opinion of management, reflect all normal recurring adjustments that are necessary to fairly present the financial position and results of operations of Cleco. Amounts reported in Cleco’s interim financial statements are not necessarily indicative of amounts expected for the annual periods due to the effects of seasonal temperature variations on energy consumption, regulatory rulings, the timing of maintenance on electric generating units, changes in mark-to-market valuations, changing commodity prices, discrete income tax items, and other factors. In preparing financial statements that conform to GAAP, management must make estimates and assumptions that affect the reported amounts of assets and liabilities, the reported amounts of revenues and expenses, and the disclosure of contingent assets and liabilities at the date of the financial statements. Actual results could differ from those estimates. For information on recent authoritative guidance and its effect on financial results, see Note 2 — “Recent Authoritative Guidance.” Unbilled Revenue Cleco Power accrues estimated revenue monthly for energy used by customers but not yet billed. The monthly estimated unbilled revenue amounts are recorded as unbilled revenue and a receivable. During the third quarter of 2014, Cleco Power began using actual customer energy consumption data available from its installation of AMI to calculate unbilled revenues. Property, Plant, and Equipment Property, plant, and equipment consists primarily of regulated utility generation and energy transmission and distribution assets. Regulated assets, utilized primarily for retail operations and electric transmission and distribution, are stated at the cost of construction, which includes certain materials, labor, payroll taxes and benefits, administrative and general costs, and the estimated cost of funds used during construction. Jointly owned assets are reflected in property, plant, and equipment at Cleco Power’s share of the cost to construct or purchase the assets. Cleco’s property, plant, and equipment consisted of: (THOUSANDS) AT SEPT. 30, 2015 AT DEC. 31, 2014 Regulated utility plants $ 4,601,293 $ 4,495,490 Other 15,515 13,470 Total property, plant, and equipment 4,616,808 4,508,960 Accumulated depreciation (1,512,711 ) (1,442,960 ) Net property, plant, and equipment $ 3,104,097 $ 3,066,000 Restricted Cash and Cash Equivalents Various agreements to which Cleco is subject contain covenants that restrict its use of cash. As certain provisions under these agreements are met, cash is transferred out of related escrow accounts and becomes available for its intended purposes and/or general corporate purposes. Cleco’s restricted cash and cash equivalents consisted of: (THOUSANDS) AT SEPT. 30, 2015 AT DEC. 31, 2014 Current: Cleco Katrina/Rita’s storm recovery bonds $ 3,702 $ 8,986 Non-current: Diversified Lands’ mitigation escrow 21 21 Cleco Power’s future storm restoration costs 15,857 14,915 Cleco Power’s building renovation escrow — 194 Total non-current 15,878 15,130 Total restricted cash and cash equivalents $ 19,580 $ 24,116 Cleco Katrina/Rita has the right to bill and collect storm restoration costs from Cleco Power’s customers. As cash is collected, it is restricted for payment of administration fees, interest, and principal on storm recovery bonds. During the nine months ended September 30, 2015 , Cleco Katrina/Rita collected $15.6 million net of administration fees. In March and September 2015, Cleco Katrina/Rita used $8.1 million and $7.7 million , respectively, for scheduled storm recovery bond principal payments and $2.6 million and $2.5 million , respectively, for related interest. In connection with Cleco Power’s building modernization project, Cleco Power was required to establish an escrow account with a qualified financial institution and deposit all retainage monies as they accrued under the construction contract. On July 16, 2015, the final funds held in the escrow account were released and paid to the construction contractor for the completion of building renovations. Fair Value Measurements and Disclosures Various accounting pronouncements require certain assets and liabilities to be measured at their fair values. Some assets and liabilities are required to be measured at their fair value each reporting period, while others are required to be measured only one time, generally the date of acquisition or debt issuance. Cleco and Cleco Power are required to disclose the fair value of certain assets and liabilities by one of three levels when required for recognition purposes under GAAP. For more information about fair value levels, see Note 4 — “Fair Value Accounting.” Risk Management Market risk inherent in Cleco’s market risk-sensitive instruments and positions includes potential changes in value arising from changes in interest rates and the commodity market prices of power, FTRs, and natural gas in the industry on different energy exchanges. Cleco’s Energy Market Risk Management Policy authorizes the use of various derivative instruments, including exchange traded futures and option contracts, forward purchase and sales contracts, and swap transactions to reduce exposure to fluctuations in the price of power, FTRs, and natural gas. Cleco applies the authoritative guidance as it relates to derivatives and hedging to determine whether the market risk-sensitive instruments and positions are required to be marked-to-market. With the exception of FTRs, Cleco Power’s market risk-sensitive instruments and positions qualify for the normal-purchase, normal-sale exception to mark-to-market accounting because Cleco Power takes physical delivery and the instruments and positions are used to satisfy customer requirements. Cleco Power may also enter into risk mitigating positions that would not meet the requirements of a normal-purchase, normal-sale transaction in order to attempt to mitigate the volatility in customer fuel costs. These positions are marked-to-market with the resulting gain or loss recorded on Cleco and Cleco Power’s Condensed Consolidated Balance Sheets as a component of energy risk management assets or liabilities. Such gain or loss is deferred as a component of deferred fuel assets or liabilities in accordance with regulatory policy. When these positions close, actual gains or losses are included in the FAC and reflected on customers’ bills as a component of the fuel cost adjustment. There were no open natural gas positions at September 30, 2015 , or December 31, 2014 . In June 2015, the LPSC approved a long-term natural gas hedging pilot program that requires Cleco Power to establish a proposal for a long-term natural gas procurement program that will be designed to provide gas price stability for a minimum of five years . This proposal is required to be submitted to the LPSC by June 30, 2018. Cleco Power purchases the majority of its FTRs in annual auctions facilitated by MISO during the second quarter of each year and may also purchase additional FTRs in monthly auctions facilitated by MISO. FTRs are derivative instruments which represent economic hedges of future congestion charges that will be incurred in serving Cleco Power’s customer load. FTRs are not designated as hedging instruments for accounting purposes. Cleco Power initially records FTRs at their estimated fair value and subsequently adjusts the carrying value to their estimated fair value at the end of each accounting period based on the most recent MISO FTR auction prices. Unrealized gains or losses on FTRs held by Cleco Power are included in Accumulated deferred fuel on Cleco and Cleco Power’s Condensed Consolidated Balance Sheets. Realized gains or losses on settled FTRs are recorded in Electric operations or Power purchased for utility customers on Cleco and Cleco Power’s Condensed Consolidated Statements of Income. At September 30, 2015 , Cleco and Cleco Power’s Condensed Consolidated Balance Sheets reflected the fair value of open FTR positions of $14.6 million in Energy risk management assets and $0.5 million in Energy risk management liabilities, compared to $10.8 million in Energy risk management assets and $0.8 million in Energy risk management liabilities at December 31, 2014. For more information on FTRs, see Note 4 — “Fair Value Accounting — Derivatives and Hedging — Commodity Contracts.” Cleco and Cleco Power maintain a master netting agreement policy and monitor credit risk exposure through review of counterparty credit quality, counterparty credit exposure, and counterparty concentration levels. Cleco manages these risks by establishing appropriate credit and concentration limits on transactions with counterparties and by requiring contractual guarantees, cash deposits, or letters of credit from counterparties or their affiliates, as deemed necessary. Cleco Power has agreements in place with counterparties that authorize the netting of financial buys and sells and contract payments to mitigate credit risk for transactions entered into for risk management purposes. Cleco may enter into contracts to mitigate the volatility in interest rate risk. These contracts include, but are not limited to, interest rate swaps and treasury rate locks. Accounting for MISO Transactions Cleco Power participates in MISO’s Energy and Operating Reserve market where sales and purchases are netted hourly. If the hourly activity nets to sales, the result is reported in Electric operations on Cleco and Cleco Power’s Condensed Consolidated Statements of Income. If the hourly activity nets to purchases, the result is reported in Power purchased for utility customers on Cleco and Cleco Power’s Condensed Consolidated Statements of Income. Earnings per Average Common Share The following tables show the calculation of basic and diluted earnings per share: FOR THE THREE MONTHS ENDED SEPT. 30, 2015 2014 (THOUSANDS, EXCEPT SHARES AND PER SHARE AMOUNTS) INCOME SHARES PER SHARE AMOUNT INCOME SHARES PER SHARE AMOUNT Basic net income applicable to common stock $ 54,663 60,481,584 $ 0.90 $ 70,835 60,372,569 $ 1.17 Effect of dilutive securities Add: restricted stock (LTICP) 311,807 317,027 Diluted net income applicable to common stock $ 54,663 60,793,391 $ 0.90 $ 70,835 60,689,596 $ 1.17 FOR THE NINE MONTHS ENDED SEPT. 30, 2015 2014 (THOUSANDS, EXCEPT SHARES AND PER SHARE AMOUNTS) INCOME SHARES PER SHARE AMOUNT INCOME SHARES PER SHARE AMOUNT Basic net income applicable to common stock $ 111,819 60,474,228 $ 1.85 $ 133,392 60,410,122 $ 2.21 Effect of dilutive securities Add: restricted stock (LTICP) 285,711 301,421 Diluted net income applicable to common stock $ 111,819 60,759,939 $ 1.84 $ 133,392 60,711,543 $ 2.20 Stock-Based Compensation At September 30, 2015 , Cleco had two stock-based compensation plans: the ESPP and the LTICP. In accordance with the Merger Agreement, the ESPP has been suspended and will be cancelled upon the completion of the Merger. Pursuant to the LTICP, options or restricted shares of stock, also known as non-vested stock, common stock equivalents, and stock appreciation rights may be granted to certain officers, key employees, or directors of Cleco Corporation and its subsidiaries. During the nine months ended September 30, 2015 , Cleco granted 90,050 shares of non-vested stock to certain officers and key employees of Cleco Corporation and its subsidiaries pursuant to the LTICP. Upon the completion of the Merger, all unvested shares outstanding under the LTICP that were granted prior to January 1, 2015, will vest at target and be paid out in cash to plan participants in accordance with the terms of the Merger Agreement. Unvested shares that were granted in 2015 will be prorated to the target amount and be paid out in cash to plan participants in accordance with the terms of the Merger Agreement. For more information about the Merger, see Note 15 — “Agreement and Plan of Merger.” Cleco and Cleco Power reported pretax compensation expense for their share-based compensation plans as shown in the following table: FOR THE THREE MONTHS ENDED SEPT. 30, FOR THE NINE MONTHS ENDED SEPT. 30, 2015 2014 2015 2014 2015 2014 2015 2014 (THOUSANDS) CLECO CORPORATION CLECO POWER CLECO CORPORATION CLECO POWER Equity classification Non-vested stock $ 1,419 $ 1,344 $ 519 $ 528 $ 4,644 $ 4,798 $ 1,465 $ 1,461 Tax benefit $ 546 $ 517 $ 200 $ 203 $ 1,787 $ 1,846 $ 564 $ 562 Common Stock Repurchase Program In January 2011, Cleco Corporation’s Board of Directors approved the implementation of a common stock repurchase program. This program authorizes management to repurchase, from time to time, shares of common stock so that Cleco’s diluted average shares of common stock outstanding remain approximately equal to its diluted average shares of common stock outstanding for 2010. Under this program, purchases may be made on a discretionary basis at times and in amounts as determined by management, subject to market conditions, legal requirements, and other factors. Purchases under the program will not be announced in advance and may be made in the open market or through privately negotiated transactions. No shares of common stock were repurchased during the nine months ended September 30, 2015 . During the nine months ended September 30, 2014 , Cleco Corporation repurchased 250,000 shares of common stock. In accordance with the Merger Agreement, until the completion of the Merger, no additional common stock will be repurchased under this program without the prior written consent of Cleco Partners. For more information about the Merger, see Note 15 — “Agreement and Plan of Merger.” |
Recent Authoritative Guidance
Recent Authoritative Guidance | 9 Months Ended |
Sep. 30, 2015 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Authoritative Guidance | Note 2 — Recent Authoritative Guidance The Registrants adopted, or will adopt, the recent authoritative guidance listed below on their respective effective dates. In May 2014, FASB amended the accounting guidance for revenue recognition. The amended guidance affects entities that enter into contracts for the transfer of non-financial assets unless those contracts are within the scope of other standards. The core principle of this guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Under the new guidance, an entity must identify the performance obligations in a contract and the transaction price, and allocate the price to specific performance obligations to recognize the revenue when the obligation is completed. The amendments in this update also require disclosure of sufficient information to allow users to understand the nature, amount, timing, and uncertainty of revenue and cash flow arising from contracts. In August 2015, the FASB amended the guidance to provide for a one-year deferral of the effective date. The standard will be effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. Cleco does not plan to early adopt the amended guidance. Reporting entities have the option of using either a full retrospective or a modified retrospective approach. Management will evaluate the respective advantages and disadvantages of each transition method before selecting the method of adoption. Management is assessing the potential areas of impact, including the identification of specific contracts that would fall under the scope of this guidance. Management will continue evaluating the impact that the adoption of this guidance will have on the results of operations, financial condition, and cash flows of the Registrants. In February 2015, FASB amended the accounting guidance for the consolidation analysis. All legal entities are subject to re-evaluation under this revised consolidation model. The adoption of this guidance is effective for annual periods beginning after December 15, 2015, including interim periods within that reporting period. Early adoption is permitted, including adoption in an interim period. Reporting entities may apply these amendments using a modified retrospective approach by recording a cumulative-effect adjustment to equity as of the beginning of the fiscal year of adoption. Management is currently evaluating this guidance, but does not expect it to have an impact on the results of operations, financial condition, or cash flows of the Registrants. In April 2015, FASB amended the accounting guidance to simplify the presentation of debt issuance costs. This guidance requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The adoption of this guidance is effective for annual periods beginning after December 15, 2015, including interim periods within that reporting period. Early adoption is permitted. Entities should apply these amendments on a retrospective basis, wherein the balance sheet of each individual period presented should be adjusted to reflect the period-specific effects of applying the new guidance. Cleco currently records debt issuance costs in Other deferred charges on Cleco’s Condensed Consolidated Balance Sheet. Cleco plans to early adopt the revisions to this amendment beginning with the December 31, 2015 reporting period. The adoption of this guidance will not have an impact on the results of operations, financial condition, or cash flows of the Registrants. In April 2015, FASB issued accounting guidance for a customer’s accounting for fees paid in a cloud computing arrangement. This amendment provides guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The adoption of this guidance is effective for annual periods beginning after December 15, 2015, including interim periods within that reporting period. Early adoption is permitted. Entities can elect to adopt the amendments either prospectively to all arrangements entered into or materially modified after the effective date or retrospectively. Management does not expect the adoption of this guidance to materially impact the results of operations, financial condition, or cash flows of the Registrants. In April 2015, FASB amended the accounting guidance for fair value measurements. Currently, this guidance permits entities, as a practical expedient, to measure the fair value of certain investments using the net asset value per share of the investment. These investments are currently categorized within the fair value hierarchy on the basis of whether the investment is redeemable at net asset value on the measurement date, never redeemable at net asset value, or redeemable at net asset value at a future date. This amendment removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share practical expedient. The amendment also removes the requirement to make certain disclosures for all investments that are eligible to be measured at fair value using the net asset value per share practical expedient. Those disclosures are limited to investments for which the entity has elected to measure the fair value using that practical expedient. The adoption of this guidance is effective for annual periods beginning after December 15, 2015, including interim periods within that reporting period. Early adoption is permitted. These amendments should be applied retrospectively to all periods presented. The retrospective approach requires that an investment for which fair value is measured using the net asset value per share practical expedient be removed from the fair value hierarchy in all periods presented. Cleco plans to early adopt the revisions to this amendment beginning with the December 31, 2015 reporting period. The adoption of this guidance will not have an impact on the results of operations, financial condition, or cash flows of the Registrants. In July 2015, FASB issued the accounting guidance to simplify the measurement of inventory. This guidance requires entities to measure inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The adoption of this guidance is effective for annual periods beginning after December 15, 2016, including interim periods within that reporting period. These amendments should be applied prospectively with earlier application permitted as of the beginning of an interim or annual reporting period. Management is currently evaluating this guidance, but does not expect it to have an impact on the results of operations, financial condition, or cash flows of the Registrants. In August 2015, FASB amended the derivatives and hedging accounting guidance to allow the application of the normal-purchases and normal-sales scope exception to certain electricity contracts within nodal energy markets. The amendments specify that buys and sales of electricity on a forward basis within nodal energy markets does not constitute net settlement of a contract. The adoption of this guidance is effective immediately and should be applied prospectively. This amended guidance preserves Cleco Power’s current accounting elections. Therefore, the adoption of this guidance did not have an impact on the results of operations, financial condition, or cash flows of the Registrants. In September 2015, FASB amended the business combinations guidance to simplify the accounting for measurement-period adjustments. This guidance eliminates the requirement to retrospectively account for these adjustments. The adoption of this guidance is effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years. These amendments should be applied prospectively to adjustments to provisional amounts that occur after the effective date with earlier application permitted. Currently this guidance is not applicable to the Registrants, and as a result, will not have an impact on the results of operations, financial condition, or cash flows of the Registrants. However, upon the expected completion of the Merger, this guidance will be adopted by the respective Registrants. |
Regulatory Assets and Liabiliti
Regulatory Assets and Liabilities | 9 Months Ended |
Sep. 30, 2015 | |
Regulatory Assets and Liabilities Disclosure [Abstract] | |
Regulatory Assets and Liabilities | Note 3 — Regulatory Assets and Liabilities Cleco Power follows the authoritative guidance on regulated operations, which allows utilities to capitalize or defer certain costs for recovery from customers and to recognize a liability for amounts expected to be returned to customers based on regulatory approval and management’s ongoing assessment that it is probable these items will be recovered or refunded through the ratemaking process. Under the current regulatory environment, Cleco Power believes these regulatory assets will be fully recoverable; however, if in the future, as a result of regulatory changes or competition, Cleco Power’s ability to recover these regulatory assets would no longer be probable, then to the extent that such regulatory assets were determined not to be recoverable, Cleco Power would be required to write-down such assets. In addition, potential deregulation of the industry or possible future changes in the method of rate regulation of Cleco Power could require discontinuance of the application of these authoritative guidelines. The following table summarizes Cleco Power’s regulatory assets and liabilities: (THOUSANDS) AT SEPT. 30, 2015 AT DEC. 31, 2014 Regulatory assets – deferred taxes, net $ 236,341 $ 234,370 Mining costs 9,559 11,470 Interest costs 5,311 5,582 AROs 1,381 1,029 Postretirement costs 150,586 160,903 Tree trimming costs 6,996 8,066 Training costs 6,902 7,019 Surcredits, net 10,546 13,587 Amended lignite mining agreement contingency 3,781 3,781 AMI deferred revenue requirement 5,454 5,863 Production operations and maintenance expenses 12,003 14,761 AFUDC equity gross-up 71,798 72,859 Acadia Unit 1 acquisition costs 2,574 2,653 Financing costs 9,125 9,402 Biomass costs 58 82 MISO integration costs 2,573 3,275 Coughlin transaction costs 1,037 1,060 Corporate franchise tax 849 1,223 Acadia FRP true-up 566 754 Energy efficiency 11 114 Other 418 596 Total regulatory assets 301,528 324,079 PPA true-up (468 ) (624 ) Fuel and purchased power 18,662 21,554 Total regulatory assets, net $ 556,063 $ 579,379 Fuel and Purchased Power The costs of fuel used for electric generation and power purchased for utility customers are recovered through the LPSC-established FAC or related wholesale contract provisions, which enable Cleco Power to pass on to its customers substantially all such charges. For the three and nine months ended September 30, 2015 , approximately 73% and 74% , respectively, of Cleco Power’s total fuel cost was regulated by the LPSC. Fuel and purchased power decreased $2.9 million from December 31, 2014. Under-recovered fuel costs were impacted by a decrease in the mark-to-market value of the FTRs partially offset by an increase in the volume of open FTR positions, which netted a $3.7 million decrease. Fuel costs and purchased power were also impacted by a net $0.8 million increase as a result of higher volumes and the timing and collection of fuel expenses, partially offset by the loss of a wholesale customer. |
Fair Value Accounting
Fair Value Accounting | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Accounting | Note 4 — Fair Value Accounting The amounts reflected on Cleco and Cleco Power’s Condensed Consolidated Balance Sheets at September 30, 2015 , and December 31, 2014 , for cash equivalents, restricted cash equivalents, accounts receivable, other accounts receivable, and accounts payable approximate fair value because of their short-term nature. The following tables summarize the carrying value and estimated market value of Cleco and Cleco Power’s financial instruments not measured at fair value on Cleco and Cleco Power’s Condensed Consolidated Balance Sheets: Cleco AT SEPT. 30, 2015 AT DEC. 31, 2014 (THOUSANDS) CARRYING VALUE ESTIMATED FAIR VALUE CARRYING VALUE ESTIMATED FAIR VALUE Financial instruments not marked-to-market: Cash equivalents $ 8,200 $ 8,200 $ 39,700 $ 39,700 Restricted cash equivalents $ 19,423 $ 19,423 $ 24,001 $ 24,001 Long-term debt, excluding debt issuance costs $ 1,228,529 $ 1,394,274 $ 1,368,354 $ 1,601,816 Cleco Power AT SEPT. 30, 2015 AT DEC. 31, 2014 (THOUSANDS) CARRYING VALUE ESTIMATED FAIR VALUE CARRYING VALUE ESTIMATED FAIR VALUE Financial instruments not marked-to-market: Cash equivalents $ 7,000 $ 7,000 $ 34,700 $ 34,700 Restricted cash equivalents $ 19,402 $ 19,402 $ 23,980 $ 23,980 Long-term debt, excluding debt issuance costs $ 1,190,529 $ 1,356,274 $ 1,311,354 $ 1,544,816 Fair Value Measurements and Disclosures The authoritative guidance on fair value measurements requires entities to classify assets and liabilities that are either measured or disclosed at their fair value according to three different levels depending on the inputs used in determining fair value. The following tables disclose for Cleco and Cleco Power the fair value of financial assets and liabilities measured or disclosed on a recurring basis and within the scope of the authoritative guidance for fair value measurements and disclosures: Cleco CLECO CONSOLIDATED FAIR VALUE MEASUREMENTS AT REPORTING DATE USING: (THOUSANDS) AT SEPT. 30, 2015 QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) AT DEC. 31, 2014 QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) Asset description Institutional money market funds $ 27,623 $ — $ 27,623 $ — $ 63,701 $ — $ 63,701 $ — FTRs 14,563 — — 14,563 10,776 — — 10,776 Total assets $ 42,186 $ — $ 27,623 $ 14,563 $ 74,477 $ — $ 63,701 $ 10,776 Liability description Long-term debt $ 1,394,274 $ — $ 1,394,274 $ — $ 1,601,816 $ — $ 1,601,816 $ — FTRs 488 — — 488 827 — — 827 Total liabilities $ 1,394,762 $ — $ 1,394,274 $ 488 $ 1,602,643 $ — $ 1,601,816 $ 827 Cleco Power CLECO POWER FAIR VALUE MEASUREMENTS AT REPORTING DATE USING: (THOUSANDS) AT SEPT. 30, 2015 QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) AT DEC. 31, 2014 QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) Asset description Institutional money market funds $ 26,402 $ — $ 26,402 $ — $ 58,680 $ — $ 58,680 $ — FTRs 14,563 — — 14,563 10,776 — — 10,776 Total assets $ 40,965 $ — $ 26,402 $ 14,563 $ 69,456 $ — $ 58,680 $ 10,776 Liability description Long-term debt $ 1,356,274 $ — $ 1,356,274 $ — $ 1,544,816 $ — $ 1,544,816 $ — FTRs 488 — — 488 827 — — 827 Total liabilities $ 1,356,762 $ — $ 1,356,274 $ 488 $ 1,545,643 $ — $ 1,544,816 $ 827 The following table summarizes the net changes in the net fair value of FTR assets and liabilities classified as Level 3 in the fair value hierarchy: FOR THE THREE MONTHS ENDED SEPT. 30, FOR THE NINE MONTHS ENDED SEPT. 30, (THOUSANDS) 2015 2014 2015 2014 Beginning balance $ 21,974 $ 42,972 $ 9,949 $ 8,638 Unrealized (losses) gains* (719 ) (6,190 ) 1,053 (9,610 ) Purchases 69 (1,299 ) 20,219 51,144 Settlements (7,249 ) (18,711 ) (17,146 ) (33,400 ) Ending balance $ 14,075 $ 16,772 $ 14,075 $ 16,772 * Unrealized gains and losses are reported in Accumulated deferred fuel on the balance sheet. The following table quantifies the significant unobservable inputs used in developing the fair value of Level 3 positions at September 30, 2015 , and December 31, 2014 : FAIR VALUE VALUATION TECHNIQUE SIGNIFICANT UNOBSERVABLE INPUTS FORWARD PRICE RANGE (THOUSANDS, EXCEPT FORWARD PRICE RANGE) ASSETS LIABILITIES LOW HIGH FTRs at Sept. 30, 2015 $ 14,563 $ 488 RTO auction pricing FTR price - per MWh $ (3.65 ) $ 4.40 FTRs at Dec. 31, 2014 $ 10,776 $ 827 RTO auction pricing FTR price - per MWh $ (4.12 ) $ 7.76 Cleco utilizes different valuation techniques for fair value calculations. In order to measure the fair value for Level 1 assets and liabilities, Cleco obtains the closing price from published indices in active markets for the various instruments and multiplies this price by the appropriate number of instruments held. Level 2 fair values are determined by obtaining the closing price of similar assets and liabilities from published indices in active markets and then discounting the price to the current period using a U.S. Treasury published interest rate as a proxy for a risk-free rate of return. Cleco has consistently applied the Level 2 fair value technique from fiscal period to fiscal period. Level 3 fair values occur in situations in which there is little, if any, market activity for the asset or liability at the measurement date and therefore RTO auction prices are used. Significant increases or decreases in any of those inputs in isolation would result in a significantly different fair value measurement. The assets and liabilities reported at fair value are grouped into classes based on the underlying nature and risks associated with the individual asset or liability. At September 30, 2015 , Cleco and Cleco Power were exposed to concentrations of credit risk through their short-term investments classified as cash equivalents and restricted cash equivalents. The institutional money market funds were reported on the Cleco Condensed Consolidated Balance Sheet in cash and cash equivalents, current restricted cash and cash equivalents, and non-current restricted cash and cash equivalents of $8.2 million , $3.7 million , and $15.7 million , respectively, at September 30, 2015 . At Cleco Power, the institutional money market funds were reported on the Condensed Consolidated Balance Sheet in cash and cash equivalents, current restricted cash and cash equivalents, and non-current restricted cash and cash equivalents of $7.0 million , $3.7 million , and $15.7 million , respectively, at September 30, 2015 . If the money market funds failed to perform under the terms of the investments, Cleco and Cleco Power would be exposed to a loss of the invested amounts. Collateral on these types of investments is not required by Cleco or Cleco Power. The Level 2 institutional money market funds asset consists of a single class. In order to capture interest income and minimize risk, cash is invested in money market funds that invest primarily in short-term securities issued by the U.S. Treasury to maintain liquidity and achieve the goal of a net asset value of a dollar. The risks associated with this class are counterparty risk of the fund manager and risk of price volatility associated with the underlying securities of the fund. Cleco Power’s FTRs were priced using MISO’s monthly auction prices. Forward seasonal periods are not included in every monthly auction; therefore, the average of the most recent seasonal auction prices are used for monthly valuation. FTRs are categorized as Level 3 fair value measurements because the only relevant pricing available comes from MISO auctions, which occur monthly in the Multi-Period Monthly Auction. For more information about FTRs, see “— Derivatives and Hedging.” The Level 2 long-term debt liability consists of a single class. In order to fund capital requirements, Cleco issues fixed and variable rate long-term debt with various tenors. The fair value of this class fluctuates as the market interest rates for fixed and variable rate debt with similar tenors and credit ratings change. The fair value of the debt could also change from period to period due to changes in the credit rating of the Cleco entity by which the debt was issued. During the nine months ended September 30, 2015 , and the year ended December 31, 2014 , Cleco did no t experience any transfers between levels within the fair value hierarchy. Derivatives and Hedging The authoritative guidance on derivatives and hedging requires entities to provide transparent disclosures about a company’s derivative activities and how the related hedged items affect a company’s financial position, financial performance, and cash flows. Cleco is required to provide qualitative and quantitative disclosures about derivative fair value, gains and losses, and credit-risk-related contingent features in derivative agreements. Commodity Contracts The following table presents the fair values of derivative instruments and their respective line items as recorded on Cleco and Cleco Power’s Condensed Consolidated Balance Sheets at September 30, 2015 , and December 31, 2014 : DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS (THOUSANDS) BALANCE SHEET LINE ITEM AT SEPT. 30, 2015 AT DEC. 31, 2014 Commodity-related contracts FTRs: Current Energy risk management assets $ 14,563 $ 10,776 Current Energy risk management liabilities 488 827 Commodity-related contracts, net $ 14,075 $ 9,949 The following table presents the effect of derivatives not designated as hedging instruments on Cleco and Cleco Power’s Condensed Consolidated Statements of Income for the three and nine months ended September 30, 2015 , and 2014 : FOR THE THREE MONTHS ENDED SEPT. 30, FOR THE NINE MONTHS ENDED SEPT. 30, 2015 2014 2015 2014 (THOUSANDS) DERIVATIVES LINE ITEM AMOUNT OF GAIN/(LOSS) RECOGNIZED IN INCOME ON DERIVATIVES Commodity contracts FTRs Electric operations $ 8,988 $ 27,618 $ 42,594 $ 52,946 FTRs Power purchased for utility customers (5,687 ) (20,122 ) (22,337 ) (30,871 ) Total $ 3,301 $ 7,496 $ 20,257 $ 22,075 At September 30, 2015 , and December 31, 2014 , Cleco Power had no open positions hedged for natural gas. In June 2015, the LPSC approved a long-term natural gas hedging pilot program that requires Cleco Power to establish a proposal for a long-term natural gas procurement program that will be designed to provide gas price stability for a minimum of five years . This proposal is required to be submitted to the LPSC by June 30, 2018. Cleco Power purchases the majority of its FTRs in annual auctions facilitated by MISO during the second quarter of each year and may also purchase additional FTRs in monthly auctions facilitated by MISO. FTRs are derivative instruments which represent economic hedges of future congestion charges that will be incurred in serving Cleco Power’s customer load. FTRs represent rights to congestion credits or charges along a path during a given time frame for a certain MW quantity. FTRs are not designated as hedging instruments for accounting purposes. The total volume of FTRs that Cleco Power had outstanding at September 30, 2015 , and December 31, 2014 , was 13.1 million MWh and 8.9 million MWh, respectively. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Debt | Note 5 — Debt Short-term Debt At September 30, 2015 , and December 31, 2014 , Cleco and Cleco Power had no short-term debt outstanding. Long-term Debt At September 30, 2015 , Cleco’s long-term debt outstanding was $1.23 billion , of which $19.4 million was due within one year. The long-term debt due within one year at September 30, 2015 , represents $16.8 million of principal payments for the Cleco Katrina/Rita storm recovery bonds and $2.6 million of capital lease payments. For Cleco, long-term debt decreased $141.3 million from December 31, 2014 , primarily due to a $50.0 million repayment of senior notes in July 2015, a $39.0 million net decrease in credit facility borrowings outstanding, a $35.0 million repayment of a bank term loan in April 2015, $15.8 million scheduled Cleco Katrina/Rita storm recovery bond principal payments made in March and September 2015, and a $1.8 million decrease in capital lease obligations. These decreases were partially offset by debt discount amortizations of $0.3 million . At September 30, 2015 , Cleco Power’s long-term debt outstanding was $1.19 billion , of which $19.4 million was due within one year. The long-term debt due within one year at September 30, 2015 , represents $16.8 million of principal payments for the Cleco Katrina/Rita storm recovery bonds and $2.6 million of capital lease payments. For Cleco Power, long-term debt decreased $122.3 million from December 31, 2014 , primarily due to a $50.0 million repayment of senior notes in July 2015, a $35.0 million repayment of a bank term loan in April 2015, a $20.0 million net decrease in credit facility borrowings outstanding, $15.8 million scheduled Cleco Katrina/Rita storm recovery bond principal payments made in March and September 2015, and a $1.8 million decrease in capital lease obligations. These decreases were partially offset by debt discount amortizations of $0.3 million . On April 30, 2015, Cleco Power repaid its $35.0 million outstanding bank term loan that was due May 29, 2015. At December 31, 2014, Cleco Power had the intent and ability to refinance this outstanding bank term loan with other long-term debt; however, due to a temporary increase in cash balances, Cleco Power repaid the bank term loan early, with the intent to include it in a new financing in the fourth quarter of 2015. On May 1, 2015, Cleco Power refinanced its $50.0 million 2008 Series A GO Zone bonds and entered into a new interest rate period with a mandatory tender date of April 30, 2020. In connection with the new interest rate period, the interest rate is at a fixed rate of 2.0% per annum. On July 15, 2015, Cleco Power repaid its $50.0 million 4.95% senior notes. As part of the redemption, Cleco Power paid $1.2 million of accrued interest. At March 31, 2015, Cleco Power had the intent and ability to refinance these outstanding senior notes with other long-term debt; however, due to available cash on July 15, 2015, the senior notes were repaid with $25.0 million of cash and $25.0 million from Cleco Power’s credit facility. Credit Facilities At September 30, 2015 , Cleco Corporation had $38.0 million of borrowings outstanding under its $250.0 million credit facility at an all-in interest rate of 1.235% , leaving an available borrowing capacity of $212.0 million . The borrowings under the credit facility are considered to be long-term because the credit facility expires in 2018. The borrowing costs under the facility are equal to LIBOR plus 1.075% or ABR plus 0.075% , plus facility fees of 0.175% . At September 30, 2015 , Cleco Power had no borrowings outstanding under its $300.0 million credit facility; however, Cleco Power has issued a $2.0 million letter of credit to MISO, leaving an available borrowing capacity of $298.0 million . The borrowing costs under the facility are equal to LIBOR plus 0.9% or ABR, plus facility fees of 0.1% . The letter of credit issued to MISO is pursuant to the credit requirements of FTRs. This letter of credit automatically renews each year and reduces Cleco Power’s credit facility capacity. |
Pension Plan and Employee Benef
Pension Plan and Employee Benefits | 9 Months Ended |
Sep. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Pension Plan and Employee Benefits | Note 6 — Pension Plan and Employee Benefits Pension Plan and Other Benefits Plan Employees hired before August 1, 2007, are covered by a non-contributory, defined benefit pension plan. Benefits under the plan reflect an employee’s years of service, age at retirement, and highest total average compensation for any consecutive five calendar years during the last ten years of employment with Cleco. Cleco’s policy is to base its contributions to the employee pension plan upon actuarial computations utilizing the projected unit credit method, subject to the IRS’s full funding limitation. Cleco did not make any required or discretionary contributions to the pension plan in 2014 and does not expect to make any in 2015. The required contributions are driven by liability funding target percentages set by law which could cause the required contributions to be uneven among the years. The ultimate amount and timing of the contributions may be affected by changes in the discount rate, changes in the funding regulations, and actual returns on fund assets. Cleco Power is considered the plan sponsor and Support Group is considered the plan administrator. Cleco’s retirees and their dependents may be eligible to receive medical, dental, vision, and life insurance benefits (other benefits). Cleco recognizes the expected cost of these other benefits during the periods in which the benefits are earned. The components of net periodic pension and other benefit cost for the three and nine months ended September 30, 2015 , and 2014 are as follows: FOR THE THREE MONTHS ENDED SEPT. 30, 2015 2014 2015 2014 (THOUSANDS) PENSION BENEFITS OTHER BENEFITS Components of periodic benefit costs: Service cost $ 2,605 $ 2,013 $ 442 $ 347 Interest cost 5,198 4,963 461 432 Expected return on plan assets (5,846 ) (6,127 ) — — Amortizations: Transition obligation — — — 2 Prior period service (credit) cost (17 ) (18 ) 21 29 Net loss 3,457 1,686 174 147 Net periodic benefit cost $ 5,397 $ 2,517 $ 1,098 $ 957 FOR THE NINE MONTHS ENDED SEPT. 30, 2015 2014 2015 2014 (THOUSANDS) PENSION BENEFITS OTHER BENEFITS Components of periodic benefit costs: Service cost $ 7,814 $ 6,038 $ 1,226 $ 1,157 Interest cost 15,596 14,888 1,205 1,357 Expected return on plan assets (17,536 ) (18,380 ) — — Amortizations: Transition obligation — — — 12 Prior period service (credit) cost (53 ) (53 ) 89 89 Net loss 10,371 5,057 650 502 Net periodic benefit cost $ 16,192 $ 7,550 $ 3,170 $ 3,117 Because Cleco Power is the pension plan sponsor and the related trust holds the assets, the net unfunded status of the pension plan is reflected at Cleco Power. The liability of Cleco’s other subsidiaries is transferred with a like amount of assets to Cleco Power monthly. The expense of the pension plan related to Cleco’s other subsidiaries for the three and nine months ended September 30, 2015 , was $0.5 million and $1.5 million , respectively. The amounts for the same periods in 2014 were $0.4 million and $1.3 million , respectively. Cleco Corporation is the plan sponsor for the other benefit plans. There are no assets set aside in a trust and the liabilities are reported on the individual subsidiaries’ financial statements. The expense related to other benefits reflected in Cleco Power’s Condensed Consolidated Statements of Income for the three and nine months ended September 30, 2015 , was $0.9 million and $2.7 million , respectively. The amounts for the same periods in 2014 were $0.8 million and $2.7 million , respectively. The current and non-current portions of the other benefits liability for Cleco and Cleco Power at September 30, 2015 , and December 31, 2014 , are as follows: AT SEPT. 30, 2015 AT DEC. 31, 2014 (THOUSANDS) OTHER BENEFITS LIABILITY Cleco Current $ 3,470 $ 3,470 Non-current $ 40,566 $ 41,182 Cleco Power Current $ 3,019 $ 3,206 Non-current $ 35,250 $ 31,250 SERP Certain Cleco officers are covered by SERP. SERP is a non-qualified, non-contributory, defined benefit pension plan. Benefits under the plan reflect an employee’s years of service, age at retirement, and the sum of (a) the highest base salary paid out over the last five calendar years and (b) the average of the three highest cash bonuses paid during the 60 months prior to retirement, which sum is reduced by benefits received from any other defined benefit pension plan, supplemental executive retirement plan, or Cleco contributions under the enhanced 401(k) Plan to the extent such contributions exceed the limits of the 401(k) Plan. Cleco does not fund the SERP liability, but instead pays for current benefits out of the general funds available. Cleco Power has formed a rabbi trust designated as the beneficiary for life insurance policies issued on SERP participants. Market conditions could have a significant impact on the cash surrender value of the life insurance policies. Proceeds from the life insurance policies are expected to be used to pay the SERP participants’ death benefits, as well as future SERP payments. However, because SERP is a non-qualified plan, the assets of the trust could be used to satisfy general creditors of Cleco Power in the event of insolvency. All SERP benefits are paid out of the general cash available of the respective companies from which the officer retired. Cleco Power is considered the plan sponsor and Support Group is considered the plan administrator. On July 24, 2014, the Board of Directors of Cleco voted to close SERP to new participants; however, with regard to current SERP participants, including former employees or their beneficiaries, all terms of SERP will continue. Management will review current market trends as it evaluates Cleco’s future compensation strategy. In accordance with the SERP plan document and the Merger Agreement, executives are entitled to enhancement of benefits and accelerated vesting upon terminations of employment that may occur in connection with or following the Merger. The components of net periodic benefit cost related to SERP for the three and nine months ended September 30, 2015 , and 2014 are as follows: FOR THE THREE MONTHS ENDED SEPT. 30, FOR THE NINE MONTHS ENDED SEPT. 30, (THOUSANDS) 2015 2014 2015 2014 Components of periodic benefit costs: Service cost $ 676 $ 570 $ 2,029 $ 1,708 Interest cost 764 757 2,292 2,271 Amortizations: Prior period service cost 14 13 40 40 Net loss 743 469 2,230 1,407 Net periodic benefit cost $ 2,197 $ 1,809 $ 6,591 $ 5,426 The expense related to SERP reflected on Cleco Power’s Condensed Consolidated Statements of Income was $0.6 million and $1.7 million for the three and nine months ended September 30, 2015 , compared to $0.4 million and $1.3 million for the same period in 2014 . Liabilities relating to SERP are reported on the individual subsidiaries’ financial statements. The current and non-current portions of the SERP liability for Cleco and Cleco Power at September 30, 2015 , and December 31, 2014 , are as follows: AT SEPT. 30, 2015 AT DEC. 31, 2014 (THOUSANDS) SERP LIABILITY Cleco Current $ 2,990 $ 3,031 Non-current $ 73,074 $ 70,871 Cleco Power Current $ 949 $ 813 Non-current $ 19,242 $ 19,006 401(k) Plan Cleco’s 401(k) Plan is intended to provide active, eligible employees with voluntary, long-term savings and investment opportunities. The Plan is a defined contribution plan and is subject to the applicable provisions of the Employee Retirement Income Security Act of 1974. In accordance with the Plan, employer contributions can be in the form of Cleco Corporation stock or cash. Cash contributions are invested in proportion to the participant’s voluntary contribution investment choices. Plan participants are allowed to choose whether to have dividends on Cleco Corporation common stock 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. Cleco’s 401(k) Plan expense for the three and nine months ended September 30, 2015 , and 2014 is as follows: FOR THE THREE MONTHS ENDED SEPT. 30, FOR THE NINE MONTHS ENDED SEPT. 30, (THOUSANDS) 2015 2014 2015 2014 401(k) Plan expense $ 1,090 $ 1,015 $ 3,783 $ 3,585 Cleco Power is the plan sponsor for the 401(k) Plan. The expense of the 401(k) Plan related to Cleco’s other subsidiaries for both the three and nine months ended September 30, 2015 , and 2014 was $0.2 million and $0.7 million , respectively. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 7 — Income Taxes The following table summarizes the effective income tax rates for Cleco and Cleco Power for the three and nine month periods ended September 30, 2015 , and 2014 : FOR THE THREE MONTHS ENDED SEPT. 30, FOR THE NINE MONTHS ENDED SEPT. 30, 2015 2014 2015 2014 Cleco 33.7 % 25.7 % 36.9 % 28.3 % Cleco Power 32.0 % 30.7 % 35.6 % 32.3 % Effective Tax Rates For the three and nine months ended September 30, 2015 , and 2014 the effective income tax rate for Cleco was different than the federal statutory rate primarily due to permanent tax differences, the flowthrough of state tax benefits associated with AFUDC equity, benefits delivered from Cleco’s investment in the NMTC Fund, settlements with taxing authorities, and state tax expense. For the three and nine months ended September 30, 2015 , and 2014 the effective income tax rate for Cleco Power was different than the federal statutory rate primarily due to permanent tax differences, the flowthrough of state tax benefits associated with AFUDC equity, settlements with taxing authorities, and state tax expense. Valuation Allowance Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. As of September 30, 2015 , and December 31, 2014 , Cleco had a deferred tax asset resulting from NMTC carryforwards of $96.2 million and $95.4 million , respectively. If the NMTC carryforwards are not utilized, they will begin to expire in 2029. Management considers it more likely than not that all deferred tax assets related to NMTC carryforwards will be realized; therefore, no valuation allowance has been recorded. Net Operating Losses As of September 30, 2015 , Cleco had a federal net operating loss carryforward of $31.2 million primarily related to a tax accounting method change for bonus depreciation associated with Madison Unit 3. Cleco considers it more likely than not that these income tax losses generated will be utilized to reduce future payments of income taxes, and Cleco expects to utilize the entire net operating loss carryforward within the statutory deadlines. Uncertain Tax Positions Cleco classifies all interest related to uncertain tax positions as a component of interest payable and interest expense. At September 30, 2015 , and December 31, 2014 , Cleco and Cleco Power had no interest payable related to uncertain tax positions as a result of favorable settlements with taxing authorities. For the nine months ended September 30, 2015 , Cleco and Cleco Power had no interest expense related to uncertain tax positions as a result of favorable settlements with taxing authorities. The federal income tax years that remain subject to examination by the IRS are 2012, 2013, and 2014. The IRS has concluded its audit for the years 2010 through 2013. Beginning with the 2013 tax year, Cleco entered into the IRS’s Compliance Assurance Process which allows taxpayers to work collaboratively with an IRS team to identify and resolve potential tax issues before the federal tax return is filed each year. Cleco must apply for admission to the program each year. Cleco has been approved for the Compliance Assurance Process through the 2015 tax year. There are no state income tax years that remain subject to examination by the Louisiana Department of Revenue. In August 2014, Cleco reached a settlement for tax years 2001 through 2010. In August 2015, Cleco reached a settlement for tax years 2011 through 2013. The favorable impact from the settlements was reflected in various line items in the financial statements. At September 30, 2015 , Cleco had no liability for uncertain tax positions. Cleco estimates that it is reasonably possible that the balance of unrecognized tax benefits as of September 30, 2015 , for Cleco and Cleco Power would be unchanged in the next 12 months as a result of reaching a settlement with taxing authorities. The settlement of open tax years could involve the payment of additional taxes, the adjustment of deferred taxes, and/or the recognition of tax benefits, which may have an effect on Cleco’s effective tax rate. Cleco classifies income tax penalties as a component of other expense. For the nine months ended September 30, 2015 , no penalties were recognized. For the nine months ended September 30, 2014, $0.1 million of penalties was recognized. For the three months ended September 30, 2014, less than $0.1 million of penalties was recognized. |
Disclosures about Segments
Disclosures about Segments | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Disclosures about Segments | Note 8 — Disclosures about Segments Cleco’s reportable segments are based on its method of internal reporting, which disaggregates business units by its first-tier subsidiary. As a result of the Coughlin transfer from Evangeline to Cleco Power in March 2014, Midstream no longer meets the requirements to be disclosed as a separate reportable segment. Management determined the retrospective application of this transfer to be quantitatively and qualitatively immaterial when taken as a whole in relation to Cleco Power’s financial statements. As a result, Cleco’s segment reporting disclosures were not retrospectively adjusted to reflect the transfer. For more information, see Note 14 — “Coughlin Transfer.” For the reporting period beginning April 1, 2014, the remaining operations of Midstream are included as Other in the following table, along with the holding company, a shared services subsidiary, two transmission interconnection facility subsidiaries, and an investment subsidiary. The reportable segment engages in business activities from which it earns revenue and incurs expenses. Segment managers report periodically to Cleco’s Chief Executive Officer (the chief operating decision-maker) with discrete financial information and, at least quarterly, present discrete financial information to Cleco Corporation’s Board of Directors. The reportable segment prepared budgets for 2015 that were presented to and approved by Cleco Corporation’s Board of Directors. The financial results of Cleco’s segments are presented on an accrual basis. Management evaluates the performance of its segment and allocates resources to it based on segment profit and the requirements to implement new strategic initiatives and projects to meet current business objectives. Material intercompany transactions occur on a regular basis. Prior to March 15, 2014, these intercompany transactions related primarily to the PPA between Cleco Power and Evangeline that began in 2012 and joint and common administrative support services provided by Support Group. Subsequent to March 15, 2014, these intercompany transactions relate primarily to joint and common administrative support services provided by Support Group. SEGMENT INFORMATION FOR THE THREE MONTHS ENDED SEPT. 30, 2015 (THOUSANDS) CLECO POWER OTHER ELIMINATIONS CONSOLIDATED Revenue Electric operations $ 325,994 $ — $ — $ 325,994 Other operations 19,418 519 — 19,937 Electric customer credits (463 ) — — (463 ) Affiliate revenue 240 15,036 (15,276 ) — Operating revenue, net $ 345,189 $ 15,555 $ (15,276 ) $ 345,468 Depreciation $ 38,376 $ 744 $ — $ 39,120 Merger transaction costs $ — $ 831 $ — $ 831 Interest charges $ 18,309 $ 195 $ 89 $ 18,593 Interest income $ 303 $ (47 ) $ 90 $ 346 Federal and state income tax expense $ 27,638 $ 123 $ — $ 27,761 Net income (loss) $ 58,661 $ (3,998 ) $ — $ 54,663 2014 (THOUSANDS) CLECO POWER OTHER ELIMINATIONS CONSOLIDATED Revenue Electric operations $ 352,763 $ — $ — $ 352,763 Other operations 18,957 540 — 19,497 Electric customer credits (874 ) — — (874 ) Affiliate revenue 332 14,745 (15,077 ) — Operating revenue, net $ 371,178 $ 15,285 $ (15,077 ) $ 371,386 Depreciation $ 37,518 $ 317 $ (1 ) $ 37,834 Merger transaction costs $ — $ 1,141 $ — $ 1,141 Interest charges $ 14,486 $ (1,421 ) $ 110 $ 13,175 Interest income $ 398 $ (91 ) $ 109 $ 416 Federal and state income tax expense (benefit) $ 29,094 $ (4,651 ) $ (1 ) $ 24,442 Net income $ 65,544 $ 5,290 $ 1 $ 70,835 SEGMENT INFORMATION FOR THE NINE MONTHS ENDED SEPT. 30, 2015 (THOUSANDS) CLECO POWER OTHER ELIMINATIONS CONSOLIDATED Revenue Electric operations $ 880,169 $ — $ — $ 880,169 Other operations 51,913 1,559 — 53,472 Electric customer credits (3,642 ) — — (3,642 ) Affiliate revenue 904 42,790 (43,694 ) — Operating revenue, net $ 929,344 $ 44,349 $ (43,694 ) $ 929,999 Depreciation $ 111,485 $ 1,381 $ — $ 112,866 Merger transaction costs $ — $ 2,561 $ — $ 2,561 Interest charges $ 57,612 $ 720 $ 292 $ 58,624 Interest income $ 607 $ (166 ) $ 293 $ 734 Federal and state income tax expense (benefit) $ 65,906 $ (458 ) $ — $ 65,448 Net income (loss) $ 119,080 $ (7,261 ) $ — $ 111,819 Additions to property, plant, and equipment $ 116,360 $ 318 $ — $ 116,678 Equity investment in investees $ 16,372 $ 8 $ — $ 16,380 Total segment assets $ 4,195,925 $ 51,553 $ 57,871 $ 4,305,349 2014 (THOUSANDS) CLECO POWER OTHER ELIMINATIONS CONSOLIDATED Revenue Electric operations $ 939,519 $ — $ — $ 939,519 Tolling operations — 5,467 (5,467 ) — Other operations 47,256 1,622 — 48,878 Electric customer credits (23,555 ) — — (23,555 ) Affiliate revenue 998 42,091 (43,089 ) — Operating revenue, net $ 964,218 $ 49,180 $ (48,556 ) $ 964,842 Depreciation $ 115,016 $ 2,129 $ — $ 117,145 Merger transaction costs $ — $ 1,506 $ — $ 1,506 Interest charges $ 54,885 $ (1,727 ) $ 350 $ 53,508 Interest income $ 1,349 $ (331 ) $ 351 $ 1,369 Federal and state income tax expense (benefit) $ 59,375 $ (6,726 ) $ — $ 52,649 Net income $ 124,509 $ 8,883 $ — $ 133,392 Additions to (reductions in) property, plant, and equipment $ 327,916 $ (175,666 ) $ — $ 152,250 Equity investment in investees (1) $ 14,532 $ 8 $ — $ 14,540 Total segment assets (1) $ 4,242,986 $ 248,654 $ (112,567 ) $ 4,379,073 (1) Balances as of December 31, 2014 |
Regulation and Rates
Regulation and Rates | 9 Months Ended |
Sep. 30, 2015 | |
Regulated Operations [Abstract] | |
Regulation and Rates | Note 9 — Regulation and Rates A t September 30, 2015 , Cleco Power’s provision for rate refund consisted of $2.8 million for a proposed ROE reduction of transmission rates that Cleco Power was allowed to collect under the MISO tariff, $1.2 million related to energy efficiency programs, and $0.2 million related to Cleco Power’s monitoring report for the 12-month period ended June 30, 2015. Transmission ROE In November 2013, a group of industrial customers from the northern region of MISO and other stakeholders filed a complaint at FERC seeking to reduce the ROE component of the transmission rates that MISO transmission owners, including Cleco, may collect under the MISO tariff. As of September 30, 2015 , Cleco Power had $2.8 million accrued for the proposed ROE reduction for the period December 2013 through September 2015. For more information on the ROE complaint, see Note 11 — “Litigation, Other Commitments and Contingencies, and Disclosures about Guarantees — Litigation — Transmission ROE.” FRP Prior to July 1, 2014, Cleco Power’s annual retail earnings were subject to the terms of an FRP established by the LPSC effective February 12, 2010. The FRP allowed a target ROE of 10.7% , while providing the opportunity to earn up to 11.3% . Additionally, 60.0% of retail earnings between 11.3% and 12.3% and all retail earnings over 12.3% were required to be refunded to customers. In April 2013, Cleco Power filed an application with the LPSC to extend its current FRP and to seek rate recovery of the Coughlin transfer. In June 2014, the LPSC approved Cleco Power’s FRP extension, finalized the rate treatment of Coughlin, and issued the implementing order. Effective July 1, 2014, under the terms of the FRP extension, Cleco Power is allowed to earn a target ROE of 10.0% , while providing the opportunity to earn up to 10.9% . Additionally, 60.0% of retail earnings between 10.9% and 11.75% and all retail earnings over 11.75% are required to be refunded to customers. The amount of credits due to customers, if any, is determined by Cleco Power and the LPSC annually. Credits are typically included on customers’ bills the following summer, but the amount and timing of the refunds is ultimately subject to LPSC approval. Cleco Power must file annual monitoring reports no later than October 31 for the 12-month period ended June 30. The next FRP extension must be filed by June 30, 2017. In September 2015, Cleco Power issued refunds of $1.6 million relating to its annual monitoring report for the 12-month period ended June 30, 2014. Cleco Power expects to file its monitoring report for the 12-month period ended June 30, 2015, on or before October 31, 2015, which will indicate that $0.2 million is due to be returned to eligible customers. This amount was accrued at September 30, 2015. Energy Efficiency In November 2014, Cleco Power began recovering estimated costs for the first year of energy efficiency programs through an approved rate tariff. Due to lower initial customer participation in the energy efficiency programs, resulting in lower than anticipated program costs through September 30, 2015 , Cleco Power accrued $1.2 million for the difference in estimated and actual program costs. Cleco Power’s energy efficiency rate tariff for the second program year will be adjusted for any such differences in costs and recovery occurring in the initial program year ending October 31, 2015. |
Variable Interest Entities
Variable Interest Entities | 9 Months Ended |
Sep. 30, 2015 | |
Variable Interest Entity, Not Primary Beneficiary, Disclosures [Abstract] | |
Variable Interest Entities | Note 10 — Variable Interest Entities Cleco and Cleco Power account for investments in VIEs in accordance with the authoritative guidance. Cleco and Cleco Power apply the equity method of accounting to report the investment in Oxbow in the consolidated financial statements. Under the equity method, the assets and liabilities of this entity are reported as Equity investment in investees on Cleco and Cleco Power’s Condensed Consolidated Balance Sheets. The revenue and expenses (excluding income taxes) of this entity are netted and reported as Equity income or loss from investees on Cleco and Cleco Power’s Condensed Consolidated Statements of Income. Equity Method VIEs Equity investment in investees at September 30, 2015 , primarily represents Cleco Power’s $16.4 million investment in Oxbow. Equity investments that are less than 100% owned by Diversified Lands represent less than $0.1 million of Cleco’s equity investment in investees. Oxbow Oxbow is owned 50% by Cleco Power and 50% by SWEPCO and is accounted for as an equity method investment. Cleco Power is not the primary beneficiary because it shares the power to control Oxbow’s significant activities with SWEPCO. Cleco Power’s current assessment of its maximum exposure to loss related to Oxbow at September 30, 2015 , consisted of its equity investment of $16.4 million . For the nine months ended September 30, 2015, Cleco Power made $1.8 million of cash contributions to its equity investment in Oxbow as a result of the expected transition from the Dolet Hills mine to the Oxbow mine. The following table presents the components of Cleco Power’s equity investment in Oxbow: INCEPTION TO DATE (THOUSANDS) AT SEPT. 30, 2015 AT DEC. 31, 2014 Purchase price $ 12,873 $ 12,873 Cash contributions 3,499 1,659 Total equity investment in investee $ 16,372 $ 14,532 The following table compares the carrying amount of Oxbow’s assets and liabilities with Cleco Power’s maximum exposure to loss related to its investment in Oxbow: (THOUSANDS) AT SEPT. 30, 2015 AT DEC. 31, 2014 Oxbow’s net assets/liabilities $ 32,745 $ 29,065 Cleco Power’s 50% equity $ 16,372 $ 14,532 Cleco Power’s maximum exposure to loss $ 16,372 $ 14,532 The following tables contain summarized financial information for Oxbow: (THOUSANDS) AT SEPT. 30, 2015 AT DEC. 31, 2014 Current assets $ 2,159 $ 2,792 Property, plant, and equipment, net 23,806 22,457 Other assets 7,446 3,847 Total assets $ 33,411 $ 29,096 Current liabilities $ 666 $ 31 Partners’ capital 32,745 29,065 Total liabilities and partners’ capital $ 33,411 $ 29,096 FOR THE THREE MONTHS ENDED SEPT. 30, FOR THE NINE MONTHS ENDED SEPT. 30, (THOUSANDS) 2015 2014 2015 2014 Operating revenue $ 942 $ 584 $ 2,656 $ 1,595 Operating expenses 942 584 2,656 1,595 Income before taxes $ — $ — $ — $ — Oxbow’s property, plant, and equipment, net consists of land and lignite reserves. The lignite reserves are intended to be used to provide fuel to the Dolet Hills Power Station. DHLC mines the lignite reserves at Oxbow through the Amended Lignite Mining Agreement. Oxbow has no third-party agreements, guarantees, or other third-party commitments that contain obligations affecting Cleco Power’s investment in Oxbow. |
Litigation, Other Commitments a
Litigation, Other Commitments and Contingencies, and Disclosures about Guarantees | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments Contingencies and Guarantees | Note 11 — Litigation, Other Commitments and Contingencies, and Disclosures about Guarantees Litigation Devil’s Swamp In October 2007, Cleco received a Special Notice for Remedial Investigation and Feasibility Study (RI/FS) from the EPA pursuant to CERCLA (also known as the Superfund statute) for a facility known as the Devil’s Swamp Lake site located just northwest of Baton Rouge, Louisiana. The special notice requested that Cleco Corporation and Cleco Power, along with many other listed PRPs, enter into negotiations with the EPA for the performance of an RI/FS at the Devil’s Swamp Lake site. The EPA identified Cleco as one of many companies that sent polychlorinated biphenyl (PCB) wastes for disposal to the site. The EPA proposed to add the Devil’s Swamp Lake site to the National Priorities List on March 8, 2004, based on the release of PCBs to fisheries and wetlands located on the site, but no final listing decision has yet been made. The PRPs began discussing a potential proposal to the EPA in February 2008. The EPA issued a Unilateral Administrative Order to two PRP’s, Clean Harbors, Inc. and Baton Rouge Disposal, to conduct an RI/FS in December 2009. The Tier 1 part of the study was completed in June 2012. Field activities for the Tier 2 investigation were completed in July 2012. The draft Tier 2 remedial investigation report was submitted in December 2014. In 2015, remedial investigation activities included the collection and analysis of sediment, crawfish, and fish tissue samples. After reviewing the sample analysis, in August 2015, the Louisiana Department of Health and Hospitals updated the advisory for the area to advise that fish and crawfish from the area should not be eaten. Currently, the study/remedy selection task continues, and there is no record of a decision. Therefore, management is unable to determine how significant Cleco’s share of the costs associated with the RI/FS and possible response action at the site, if any, may be and whether this will have a material impact on the results of operations, financial condition, or cash flows of the Registrants. Discrimination Complaints In December 2009, a complaint was filed in the U.S. District Court for the Western District of Louisiana (the Court) on behalf of eight current employees and four former employees alleging that Cleco discriminated against each of them on the basis of race. Each was seeking various remedies provided under applicable statutes prohibiting racial discrimination in the workplace, and together, the plaintiffs requested monetary compensation exceeding $35.0 million . In July 2010, the plaintiffs moved to add an additional current employee alleging that Cleco had discriminated on the basis of race. The additional plaintiff sought compensation of no less than $2.5 million and became the thirteen th plaintiff. In April 2011, Cleco entered into a settlement with one of the current employees which resulted in a dismissal of one of the thirteen cases with prejudice. In September 2011, the Court ruled on Cleco’s summary judgment motions, resulting in eleven of the twelve remaining plaintiffs having at least one claim remaining. In February 2013, the Court ruled on the second motion for summary judgment, filed by Cleco in March 2012, in each of the eleven cases and each such case was dismissed with prejudice. Appeals were filed in ten of the eleven dismissed cases to the U.S. Court of Appeals for the Fifth Circuit (the Fifth Circuit). In June 2013, the Fifth Circuit clerk dismissed the appeals of two of the current employees due to their failure to file a brief in support of their respective appeals. On various dates in August through November 2013, the Fifth Circuit affirmed the trial court judgments in favor of Cleco in seven of the eight remaining cases. In April 2014, the Fifth Circuit affirmed the Court’s summary judgment dismissing the wrongful termination and other discrimination claims of the one remaining plaintiff, a former employee who served as one of Cleco’s human resource representatives. Excluded from the ruling was one claim that the former employee alleged was the result of a disciplinary warning Cleco issued to the former employee. This last claim has been settled and was dismissed with prejudice by order entered on May 28, 2015. Merger In connection with the Merger, four actions were filed in the Ninth Judicial District Court for Rapides Parish, Louisiana and three actions were filed in the Civil District Court for Orleans Parish, Louisiana. The petitions in each action generally allege, among other things, that the members of the Cleco Corporation Board of Directors breached their fiduciary duties by, among other things, conducting an allegedly inadequate sale process, agreeing to the Merger at a price that allegedly undervalues Cleco, and failing to disclose material information about the Merger. The petitions also allege that Cleco Partners, Cleco Corporation, Merger Sub, and in some cases, certain of the investors in Cleco Partners, either aided and abetted or entered into a civil conspiracy to advance those supposed breaches of duty. The petitions seek various remedies, including an injunction against the Merger and monetary damages, including attorneys’ fees and expenses. The four actions filed in the Ninth Judicial District Court for Rapides Parish are captioned as follows: • Braunstein v. Cleco Corporation , No. 251,383B (filed October 27, 2014), • Moore v. Macquarie Infrastructure and Real Assets , No. 251,417C (filed October 30, 2014), • Trahan v. Williamson , No. 251,456C (filed November 5, 2014), and • L’Herisson v. Macquarie Infrastructure and Real Assets , No. 251,515F (filed November 14, 2014). On November 14, 2014, the plaintiff in the Braunstein action moved for a dismissal of the action without prejudice, and that motion was granted on November 19, 2014. On December 3, 2014, the Court consolidated the remaining three actions and appointed interim co-lead counsel. On December 18, 2014, the plaintiffs in the consolidated action filed a Consolidated Amended Verified Derivative and Class Action Petition for Damages and Preliminary and Permanent Injunction (the Consolidated Petition), which is now the operative petition in the consolidated action. The action names Cleco Corporation, its directors, Cleco Partners, and Merger Sub as defendants. The Consolidated Petition alleges, among other things, that the directors breached their fiduciary duties to Cleco’s shareholders and grossly mismanaged Cleco by approving the Merger Agreement because it does not value Cleco adequately, failing to structure a process through which shareholder value would be maximized, engaging in self-dealing by ignoring conflicts of interest, and failing to disclose material information about the Merger. The Consolidated Petition further alleges that all defendants conspired to commit the breaches of fiduciary duty. Cleco believes that the allegations of the Consolidated Petition are without merit and that it has substantial meritorious defenses to the claims set forth in the Consolidated Petition. The three actions filed in the Civil District Court for Orleans Parish are captioned as follows: • Butler v. Cleco Corporation , No. 2014-10776 (filed November 7, 2014), • Creative Life Services, Inc. v. Cleco Corporation , No. 2014-11098 (filed November 19, 2014), and • Cashen v. Cleco Corporation , No. 2014-11236 (filed November 21, 2014). Both the Butler and Cashen actions name Cleco Corporation, its directors, Cleco Partners, Merger Sub, Macquarie Infrastructure and Real Assets Inc. (MIRA), British Columbia Investment Management Corporation, and John Hancock Financial as defendants. The Creative Life Services action names Cleco Corporation, its directors, Cleco Partners, Merger Sub, MIRA, and Macquarie Infrastructure Partners III, L.P., as defendants. On December 11, 2014, the plaintiff in the Butler action filed an Amended Class Action Petition for Damages, which is now the operative petition in that action. Each petition alleges, among other things, that the directors breached their fiduciary duties to Cleco’s shareholders by approving the Merger Agreement because it does not value Cleco adequately, failing to structure a process through which shareholder value would be maximized and engaging in self-dealing by ignoring conflicts of interest. The Butler and Creative Life Services petitions also allege that the directors breached their fiduciary duties by failing to disclose material information about the Merger. Each petition further alleges that Cleco, Cleco Partners, Merger Sub, and certain of the investors in Cleco Partners aided and abetted the directors’ breaches of fiduciary duty. On December 23, 2014, the directors and Cleco filed declinatory exceptions in each action on the basis that each action was improperly brought in Orleans Parish and should either be transferred to the Ninth Judicial District Court for Rapides Parish or dismissed. On December 30, 2014, the plaintiffs in each action jointly filed a motion to consolidate the three actions pending in Orleans Parish and to appoint interim co-lead plaintiffs and co-lead counsel. On January 23, 2015, the Court in the Creative Life Services case sustained the defendants’ declinatory exceptions and dismissed the case so that it could be transferred to the Ninth Judicial District Court for Rapides Parish. On February 5, 2015, the plaintiffs in Butler and Cashen also consented to the dismissal of their cases from Orleans Parish so they could be transferred to the Ninth Judicial District Court for Rapides Parish. On February 25, 2015, the Ninth Judicial District Court for Rapides Parish held a hearing on a motion for preliminary injunction filed by plaintiffs Moore , L’Herisson , and Trahan seeking to enjoin the shareholder vote at the Special Meeting of Shareholders scheduled for February 26, 2015, for approval of the Merger Agreement. Following the hearing, the Court denied the plaintiffs’ motion. On June 19, 2015, three of the plaintiffs filed their Second Consolidated Amended Verified Derivative and Class Action Petition. This will be considered according to a schedule established by the Ninth Judicial District Court for Rapides Parish. Cleco filed exceptions seeking dismissal of the amended petition on July 24, 2015. Cleco’s exceptions have been fully briefed and will be set for hearing at a later date. Cleco believes that the allegations of the petitions in each action are without merit and that it has substantial meritorious defenses to the claims set forth in each of the petitions. Gulf Coast Spinning On September 11, 2015, a potential customer sued Cleco for failure to fully perform an alleged verbal agreement to lend or otherwise fund its startup costs to the extent of $6.5 million. Gulf Coast Spinning Company, LLC (Gulf Coast), the primary plaintiff, alleges that Cleco promised to assist it in raising approximately $60.0 million, which Gulf Coast needed to construct a cotton spinning facility near Bunkie, Louisiana. According to the petition filed by Gulf Coast in the 12 th Judicial District Court for Avoyelles Parish, Louisiana, Cleco made such promises of funding assistance in order to cultivate a new industrial electric customer which would increase its revenues under a power supply agreement that it executed with Gulf Coast. Gulf Coast seeks unspecified damages arising from its inability to raise sufficient funds to complete the project, including lost profits. Cleco believes the allegations of the petition are contradicted by the written documents executed by Gulf Coast and are otherwise without merit and that it has substantial meritorious defenses to the claims alleged by Gulf Coast. LPSC Audits Fuel Audit The cost of fuel used for electric generation and the cost of power purchased for utility customers are recovered through the LPSC-established FAC that enables Cleco Power to pass on to its customers substantially all such charges. Recovery of FAC costs is subject to periodic fuel audits by the LPSC. The LPSC FAC General Order issued in November 1997, in Docket No. U-21497 provides that an audit of FAC filings will be performed at least every other year. In November 2014, the LPSC initiated an audit of Cleco Power’s fuel and purchased power expenses for the years 2009 through 2013. The total amount of fuel expense included in the audit was $1.73 billion . On August 17, 2015, the LPSC Staff issued its audit report which recommended no disallowance of fuel costs. On October 28, 2015, the LPSC approved the audit report. Cleco Power has FAC filings for January 2014 through September 2015 that remain subject to audit. Environmental Audit In July 2009, the LPSC issued Docket No. U-29380 Subdocket A, which provides for an EAC to recover from customers certain costs of environmental compliance. The costs eligible for recovery are prudently incurred air emissions credits associated with complying with federal, state, and local air emission regulations that apply to the generation of electricity reduced by the sale of such allowances. Also eligible for recovery are variable emission mitigation costs, which are the costs of reagents such as ammonia and limestone that are a part of the fuel mix used to reduce air emissions, among other things. Cleco Power began incurring additional environmental compliance expenses in the second quarter of 2015 for reagents associated with compliance with MATS. These expenses are eligible for recovery through Cleco Power’s EAC and subject to periodic review by the LPSC. Cleco Power has EAC filings for the period November 2010 through September 2015 that remain subject to audit. On June 29, 2015, the U.S. Supreme Court remanded the MATS rule back to the EPA. The MATS rule will remain in effect unless it is vacated by the lower court. Although the full effect of this remand is unknown at this time, it could result in lower annual operating costs to Cleco Power as the MATS equipment may be operated at a lower level and result in less reagent use. Transmission ROE In November 2013, a group of industrial customers from the northern region of MISO and other stakeholders filed a complaint with FERC seeking to reduce the ROE component of the transmission rates that MISO transmission owners, including Cleco, may collect under the MISO tariff. The complainants are seeking to reduce the current 12.38% ROE used in MISO’s transmission rates to a proposed 6.68% . A group of MISO transmission owners filed responses to the complaint, defending the current ROE and seeking dismissal of the complaint. In October 2014, FERC issued an order finding that the current MISO ROE may be unjust and unreasonable and set the issue for hearing, subject to the outcome of settlement discussions. Settlement discussions did not resolve the dispute and FERC heard the proceeding during the week of August 17, 2015. An initial non-binding decision is expected by November 2015 and a binding FERC order is expected to be issued during the second half of 2016. In November 2014, the MISO Transmission Owners Committee, in which Cleco is a member, filed a request with FERC for an incentive to increase the new ROE by 0.5% for RTO participation as allowed by the MISO tariff. On January 5, 2015, FERC granted the request. The collection of the adder is delayed until the resolution of the ROE complaint proceeding. As of September 30, 2015, Cleco Power had $2.8 million accrued for a possible reduction to the ROE for the period December 2013 through September 2015. Management believes a reduction in the ROE, as well as any resulting refund, will not have a material adverse effect on the results of operations, financial condition, or cash flows of the Registrants. Other Cleco is involved in various litigation matters, including regulatory, environmental, and administrative proceedings before various courts, regulatory commissions, arbitrators, and governmental agencies regarding matters arising in the ordinary course of business. The liability Cleco may ultimately incur with respect to any one of these matters in the event of a negative outcome may be in excess of amounts currently accrued. Management regularly analyzes current information and, as of September 30, 2015 , believes the probable and reasonably estimable liabilities based on the eventual disposition of these matters is $5.3 million and has accrued this amount. Off-Balance Sheet Commitments Cleco Corporation and Cleco Power have entered into various off-balance sheet commitments, in the form of guarantees and standby letters of credit, in order to facilitate their activities and the activities of Cleco Corporation’s subsidiaries and equity investees (affiliates). Cleco Corporation and Cleco Power have also agreed to contractual terms that require the Registrants to pay third parties if certain triggering events occur. These contractual terms generally are defined as guarantees in the authoritative guidance. Cleco Corporation entered into these off-balance sheet commitments in order to entice desired counterparties to contract with its affiliates by providing some measure of credit assurance to the counterparty in the event Cleco’s affiliates do not fulfill certain contractual obligations. If Cleco Corporation had not provided the off-balance sheet commitments, the desired counterparties may not have contracted with Cleco’s affiliates, or may have contracted with them at terms less favorable to its affiliates. The off-balance sheet commitments are not recognized on Cleco and Cleco Power’s Condensed Consolidated Balance Sheets because management has determined that Cleco and Cleco Power’s affiliates are able to perform these obligations under their contracts and that it is not probable that payments by Cleco or Cleco Power will be required. In January 2006, Cleco Corporation provided a $0.5 million guarantee to Entergy Mississippi for Attala’s obligations under the Interconnection Agreement. This guarantee will be effective until obligations are performed or extinguished. The State of Louisiana allows employers of certain financial net worth to self-insure their workers’ compensation benefits. Cleco Power has a certificate of self-insurance from the Louisiana Office of Workers’ Compensation and is required to post a $3.7 million letter of credit, an amount equal to 110% of the average losses over the previous three years, as surety. Cleco Power provides a letter of credit to MISO pursuant to the credit requirements of FTRs. At September 30, 2015, the letter of credit was $2.0 million . The letter of credit automatically renews each year and reduces Cleco Power’s credit facility capacity. Cleco Corporation provided a guarantee to Entergy Louisiana and Entergy Gulf States as a result of the sale of the Perryville facility in 2004. This is a continuing guarantee and all obligations of Cleco Corporation will continue until the guaranteed obligations have been fully performed or otherwise extinguished. The maximum amount of the potential payment to Entergy Louisiana and Entergy Gulf States is $42.4 million . Currently, management does not expect to be required to pay Entergy Louisiana and Entergy Gulf States under this guarantee. On behalf of Acadia, Cleco Corporation provided guarantees and indemnifications as a result of the sales of Acadia Unit 1 to Cleco Power and Acadia Unit 2 to Entergy Louisiana in 2010 and 2011, respectively. At September 30, 2015, the remaining indemnifications relate to the fundamental organizational structure of Acadia. These remaining indemnifications have no limitations as to time or maximum potential future payments. Currently, management does not expect to be required to pay Cleco Power or Entergy Louisiana under these guarantees. Cleco Corporation provided indemnifications to Cleco Power as a result of the transfer of Coughlin to Cleco Power in March 2014. Cleco Power also provided indemnifications to Cleco Corporation and Evangeline as a result of the transfer of Coughlin to Cleco Power. The maximum amount of the potential payment to Cleco Power, Cleco Corporation, and Evangeline for their respective indemnifications is $40.0 million , except for indemnifications relating to the fundamental organizational structure of each respective entity, of which the maximum amount is $400.0 million . Currently, management does not expect to be required to make any payments under these indemnifications. On-Balance Sheet Guarantees As part of the Amended Lignite Mining Agreement, Cleco Power and SWEPCO, joint owners of Dolet Hills, have agreed to pay the loan and lease principal obligations of the lignite miner, DHLC, when due if they do not have sufficient funds or credit to pay. Any amounts paid on behalf of the miner would be credited by the lignite miner against future invoices for lignite delivered. At September 30, 2015 , Cleco Power had a liability of $3.8 million related to the amended agreement. The maximum projected payment by Cleco Power under this guarantee is estimated to be $69.3 million ; however, the Amended Lignite Mining Agreement does not contain a cap. The projection is based on the forecasted loan and lease obligations to be incurred by DHLC, primarily for purchases of equipment. Cleco Power has the right to dispute the incurrence of loan and lease obligations through the review of the mining plan before the incurrence of such loan and lease obligations. The Amended Lignite Mining Agreement is not expected to terminate pursuant to its terms until 2036 and does not affect the amount the Registrants can borrow under their credit facilities. Currently, management does not expect to be required to pay DHLC under this guarantee. Generally, neither Cleco Corporation nor Cleco Power has recourse that would enable them to recover amounts paid under their guarantee or indemnification obligations. There are no assets held as collateral for third parties that either Cleco Corporation or Cleco Power could obtain and liquidate to recover amounts paid pursuant to the guarantees or indemnification obligations. Other Commitments NMTC Fund In 2008, Cleco Corporation and US Bancorp Community Development (USBCDC) formed the NMTC Fund. Cleco Corporation has a 99.9% membership interest in the NMTC Fund and USBCDC has a 0.1% interest. The purpose of the NMTC Fund is to invest in projects located in qualified active low-income communities that are underserved by typical debt capital markets. These investments are designed to generate NMTCs and Historical Rehabilitation tax credits. The NMTC Fund was later amended to include renewable energy investments. The majority of the energy investments qualify for grants under Section 1603 of the ARRA. The tax benefits received from the NMTC Fund reduce the federal income tax obligations of Cleco Corporation. In total, Cleco Corporation will contribute $283.7 million of equity contributions to the NMTC Fund and will receive at least $302.0 million in the form of tax credits, tax losses, capital gains/losses, earnings, and cash over the life of the investment, which ends in 2017. The $18.3 million difference between equity contributions and total benefits received will be recognized over the life of the NMTC Fund as net tax benefits are delivered. Cleco Corporation expects to make $5.9 million in equity contributions during the fourth quarter of 2015. There are no equity contributions expected in 2016 or 2017. Due to the right of offset, the investment and associated debt are presented on Cleco’s Condensed Consolidated Balance Sheet in the line item Tax credit fund investment, net. The amount of tax benefits delivered in excess of capital contributions as of September 30, 2015 , was $21.3 million . The amount of tax benefits delivered but not utilized as of September 30, 2015 , was $117.1 million and is reflected as a deferred tax asset. The equity contribution does not contain a stated rate of interest. Cleco Corporation has recorded the asset and investment at its calculated fair value at inception within the framework of the authoritative guidance. In order to calculate the fair value, management used an imputed rate of interest assuming Cleco Corporation obtained financing of a similar nature from a third party. The imputed interest rate was used in a net present value model in order to calculate the fair value of the remaining portion of the delayed equity contributions. The following table contains the disclosures required by the authoritative guidelines for equity investments with a 6% imputed interest rate: (THOUSANDS) Equity contributions Principal payment $ 5,875 Less: unamortized discount 87 Total $ 5,788 The gross investment amortization expense will be recognized over a nine -year period, with two years remaining under the amended NMTC Fund, using the cost method in accordance with the authoritative guidance for investments. The basis of the investment is reduced by the grants received under Section 1603 of the ARRA, which allows certain projects to receive a federal grant in lieu of tax credits, and other cash. Periodic amortization of the investment and the deferred taxes generated by the basis reduction temporary difference are included as components of income tax expense. Other On April 17, 2015, the EPA published the final rule in the Federal Register for regulating the disposal and management of CCRs from coal-fired power plants. The federal regulation classifies CCRs as nonhazardous waste under Subtitle D of the Resource Conservation and Recovery Act and allows beneficial use of CCRs with some restrictions. The rule establishes extensive requirements for existing and new CCR landfills and surface impoundments and all lateral expansions consisting of location restrictions, design and operating criteria, groundwater monitoring and corrective action, closure requirements and post closure care, and recordkeeping, notification, and internet posting requirements. Prior to the publication of this federal regulation, Cleco Power was subject to state regulations pertaining to the disposal of coal ash. Due to these state regulations and in accordance with the authoritative guidance for asset retirement and environmental obligations, Cleco Power recorded an ARO for the retirement of certain ash disposal facilities. During the second quarter of 2015, management evaluated the need to increase the ARO as a result of the final federal rule. Management determined that the estimated impact of the final federal rule was not material to the results of operations, financial condition, or cash flows of the Registrants. As a result, at that time, no additional amounts were recorded to the ARO. Management will continue gathering additional data in future periods and evaluating the effect of the final rule. As additional information becomes available and management makes decisions about compliance strategies and the timing of closure activities, Cleco Power will update the ARO balance to reflect these changes in estimates. However, management does not expect any required adjustment to the ARO to have a material effect on the results of operations, financial condition, or cash flows of the Registrants. Cleco has accrued for liabilities related to third parties and employee medical benefits. Risks and Uncertainties Cleco Corporation Cleco Corporation could be subject to possible adverse consequences if Cleco’s counterparties fail to perform their obligations or if Cleco Corporation or its affiliates are not in compliance with loan agreements or bond indentures. Other Access to capital markets is a significant source of funding for both short- and long-term capital requirements not satisfied by operating cash flows. Upon announcement of the Merger, Moody’s and S&P changed Cleco Corporation’s outlook to negative and CreditWatch negative, respectively. At or prior to the close of the Merger, it is expected that the credit rating agencies will update their ratings on Cleco Corporation taking into consideration the merger transaction and including any incremental Cleco Corporation leverage. If Cleco Corporation’s credit ratings were to be downgraded by Moody’s or S&P, Cleco Corporation would be required to pay additional fees and higher interest rates under its bank credit and other debt agreements. Changes in the regulatory environment or market forces could cause Cleco to determine its assets have suffered an other-than-temporary decline in value, whereby an impairment would be required and Cleco’s financial condition could be materially adversely affected. Cleco Power Cleco Power began participating in the MISO market in December 2013. Energy prices in the MISO market are based on LMP, which includes a component directly related to congestion on the transmission system. Pricing zones with greater transmission congestion may have higher LMP costs. Physical transmission constraints present in the MISO market could increase energy costs within Cleco Power’s pricing zone. Cleco Power uses FTRs to mitigate the transmission congestion risk. Changes to anticipated transmission paths may result in an unexpected increase in energy costs to Cleco Power. Access to capital markets is a significant source of funding for both short- and long-term capital requirements not satisfied by operating cash flows. Cleco Power pays fees and interest under its bank credit agreements based on the highest rating held. Upon announcement of the Merger, Moody’s and S&P changed Cleco Power’s outlook to negative and CreditWatch negative, respectively. At or prior to the close of the Merger, it is expected that the credit rating agencies will update their ratings on Cleco Power taking into consideration the merger transaction and including any incremental Cleco Corporation leverage. If Cleco Power’s credit ratings were to be downgraded by Moody’s or S&P, Cleco Power would be required to pay additional fees and higher interest rates under its bank credit agreements. Cleco Power’s collateral for derivatives is based on the lowest rating held. If Cleco Power’s credit ratings were to be downgraded by Moody’s or S&P, Cleco Power would be required to post additional collateral for derivatives. |
Affiliate Transactions
Affiliate Transactions | 9 Months Ended |
Sep. 30, 2015 | |
Related Party Transactions [Abstract] | |
Affiliate Transactions | Note 12 — Affiliate Transactions Cleco Power has balances that are payable to or due from its affiliates. The following table is a summary of those balances: AT SEPT. 30, 2015 AT DEC. 31, 2014 (THOUSANDS) ACCOUNTS RECEIVABLE ACCOUNTS PAYABLE ACCOUNTS RECEIVABLE ACCOUNTS PAYABLE Cleco Corporation $ 250 $ 453 $ 22,994 $ 525 Support Group 779 7,169 626 7,235 Other (1) 1 — 1 — Total $ 1,030 $ 7,622 $ 23,621 $ 7,760 (1) Represents Attala, Diversified Lands, and Perryville. The decrease in affiliate accounts receivable from Cleco Corporation is the result of a partial utilization of Cleco Corporation’s net operating loss due to Cleco Power’s estimated taxable income exceeding its net operating loss carryforward. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 9 Months Ended |
Sep. 30, 2015 | |
Equity [Abstract] | |
Comprehensive Income (Loss) Note | Note 13 — Accumulated Other Comprehensive Loss The components of accumulated other comprehensive loss are summarized in the following tables for Cleco and Cleco Power. All amounts are reported net of income taxes. Amounts in parentheses indicate losses. Cleco FOR THE THREE MONTHS ENDED SEPT. 30, 2015 2014 (THOUSANDS) POSTRETIREMENT BENEFIT NET LOSS NET LOSS ON CASH FLOW HEDGES TOTAL AOCI POSTRETIREMENT BENEFIT NET LOSS NET LOSS ON CASH FLOW HEDGES TOTAL AOCI Balances beginning of period $ (25,461 ) $ (5,833 ) $ (31,294 ) $ (18,443 ) $ (6,045 ) $ (24,488 ) Amounts reclassified from accumulated other Amortization of postretirement benefit net loss 586 — 586 318 — 318 Reclassification of net loss to interest charges — 53 53 — 53 53 Net current-period other comprehensive income 586 53 639 318 53 371 Balances, Sept. 30, $ (24,875 ) $ (5,780 ) $ (30,655 ) $ (18,125 ) $ (5,992 ) $ (24,117 ) FOR THE NINE MONTHS ENDED SEPT. 30, 2015 2014 (THOUSANDS) POSTRETIREMENT NET LOSS TOTAL AOCI POSTRETIREMENT NET LOSS TOTAL AOCI Balances beginning of period $ (26,726 ) $ (5,939 ) $ (32,665 ) $ (19,725 ) $ (6,151 ) $ (25,876 ) Amounts reclassified from accumulated other Amortization of postretirement benefit net loss 1,851 — 1,851 1,600 — 1,600 Reclassification of net loss to interest charges — 159 159 — 159 159 Net current-period other comprehensive income 1,851 159 2,010 1,600 159 1,759 Balances, Sept. 30, $ (24,875 ) $ (5,780 ) $ (30,655 ) $ (18,125 ) $ (5,992 ) $ (24,117 ) Cleco Power FOR THE THREE MONTHS ENDED SEPT. 30, 2015 2014 (THOUSANDS) POSTRETIREMENT NET LOSS TOTAL AOCI POSTRETIREMENT NET LOSS TOTAL AOCI Balances beginning of period $ (11,148 ) $ (5,833 ) $ (16,981 ) $ (8,279 ) $ (6,045 ) $ (14,324 ) Amounts reclassified from accumulated other Amortization of postretirement benefit net loss 218 — 218 92 — 92 Reclassification of net loss to interest charges — 53 53 — 53 53 Net current-period other comprehensive income 218 53 271 92 53 145 Balances, Sept. 30, $ (10,930 ) $ (5,780 ) $ (16,710 ) $ (8,187 ) $ (5,992 ) $ (14,179 ) FOR THE NINE MONTHS ENDED SEPT. 30, 2015 2014 (THOUSANDS) POSTRETIREMENT NET LOSS TOTAL AOCI POSTRETIREMENT NET LOSS TOTAL AOCI Balances beginning of period $ (11,349 ) $ (5,939 ) $ (17,288 ) $ (9,026 ) $ (6,151 ) $ (15,177 ) Amounts reclassified from accumulated other Amortization of postretirement benefit net loss 419 — 419 839 — 839 Reclassification of net loss to interest charges — 159 159 — 159 159 Net current-period other comprehensive income 419 159 578 839 159 998 Balances, Sept. 30, $ (10,930 ) $ (5,780 ) $ (16,710 ) $ (8,187 ) $ (5,992 ) $ (14,179 ) |
Coughlin Transfer
Coughlin Transfer | 9 Months Ended |
Sep. 30, 2015 | |
Coughlin Transfer [Abstract] | |
Coughlin Transfer | Note 14 — Coughlin Transfer In October 2012, Cleco Power announced that Evangeline was the winning bidder in Cleco Power’s 2012 long-term request for proposal for up to 800 MW to meet long-term capacity and energy needs. In December 2012, Cleco Power and Evangeline executed definitive agreements to transfer ownership and control of Coughlin from Evangeline to Cleco Power. On March 15, 2014, Coughlin was transferred to Cleco Power with a net book value of $176.0 million . Cleco Power finalized the rate treatment of Coughlin as part of its FRP extension proceeding before the LPSC on June 18, 2014. |
Agreement and Plan of Merger
Agreement and Plan of Merger | 9 Months Ended |
Sep. 30, 2015 | |
Business Combinations [Abstract] | |
Agreement and Plan of Merger | Note 15 — Agreement and Plan of Merger On October 17, 2014, Cleco Corporation entered into the Merger Agreement with Cleco Partners and Merger Sub providing for the merger of Merger Sub with and into Cleco Corporation, with Cleco Corporation surviving the Merger as an indirect, wholly-owned subsidiary of Cleco Partners. Pursuant to the Merger Agreement, at the effective time of the Merger each outstanding share of Cleco Corporation common stock, par value $1.00 per share (other than shares that are owned by Cleco Corporation, Cleco Partners, Merger Sub, or any other direct or indirect wholly-owned subsidiary of Cleco Partners or Cleco Corporation), will be converted into the right to receive $55.37 per share in cash, without interest, with all dividends payable before the effective time of the Merger. A Special Meeting of Shareholders of Cleco Corporation was held on February 26, 2015, in Pineville, Louisiana to obtain shareholder approval of the Merger Agreement. Cleco Corporation received approval of the Merger Agreement by a vote of approximately 77% of shares of common stock of Cleco Corporation entitled to be cast. The Merger remains subject to approval from the LPSC. On February 10, 2015, Cleco Power filed an application with the LPSC seeking approval of the Merger. The LPSC has scheduled a hearing to begin on November 9, 2015, on the proposed Merger with an ALJ. The ALJ is expected to issue a recommended decision to the LPSC for its review and decision. The waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 expired on May 4, 2015. On June 12, 2015, the Committee on Foreign Investment in the U.S. cleared the Merger to proceed without further review. On July 17, 2015, Cleco Power, Perryville, Attala, and Cleco Partners received approval of the Merger from FERC. On July 28, 2015, the Federal Communications Commission’s consent to Cleco Corporation’s request to transfer certain licenses to Cleco Power became final. Management expects the Merger to close in the first quarter of 2016. As prescribed in the Merger Agreement, the deadline for completing the Merger was automatically extended to April 17, 2016, to enable satisfaction of the closing condition related to obtaining regulatory approvals. The Merger Agreement provides for certain termination rights for both Cleco Corporation and Cleco Partners, and further provides that, upon termination of the Merger Agreement under certain specified circumstances, Cleco Corporation will be required to pay Cleco Partners a termination fee of $120.0 million . If the Merger Agreement is terminated under certain specified circumstances, Cleco Partners will be required to pay a termination fee to Cleco Corporation equal to $180.0 million . If the Merger Agreement is terminated due to lack of regulatory approval, neither Cleco Corporation nor Cleco Partners would be required to pay a termination fee. Upon completion of the Merger, Cleco Corporation will pay an additional $12.0 million in contingency fees. |
Summary of Significant Accoun26
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Principles of Consolidation, Policy | The accompanying Condensed Consolidated Financial Statements of Cleco include the accounts of Cleco and its majority-owned subsidiaries after elimination of intercompany accounts and transactions. |
Basis of Presentation, Policy | The Condensed Consolidated Financial Statements of Cleco Corporation and Cleco Power have been prepared in accordance with GAAP for interim financial information and with the instructions to Form 10-Q and Regulation S-X. Accordingly, these Condensed Consolidated Financial Statements do not include all of the information and notes required by GAAP for annual financial statements. The year-end Condensed Consolidated Balance Sheet data was derived from audited financial statements. Because the interim Condensed Consolidated Financial Statements and the accompanying notes do not include all of the information and notes required by GAAP for annual financial statements, the Condensed Consolidated Financial Statements and other information included in this quarterly report should be read in conjunction with the Consolidated Financial Statements and accompanying notes in the Registrants’ Combined Annual Report on Form 10-K for the year ended December 31, 2014. These Condensed Consolidated Financial Statements, in the opinion of management, reflect all normal recurring adjustments that are necessary to fairly present the financial position and results of operations of Cleco. Amounts reported in Cleco’s interim financial statements are not necessarily indicative of amounts expected for the annual periods due to the effects of seasonal temperature variations on energy consumption, regulatory rulings, the timing of maintenance on electric generating units, changes in mark-to-market valuations, changing commodity prices, discrete income tax items, and other factors. In preparing financial statements that conform to GAAP, management must make estimates and assumptions that affect the reported amounts of assets and liabilities, the reported amounts of revenues and expenses, and the disclosure of contingent assets and liabilities at the date of the financial statements. Actual results could differ from those estimates. |
Unbilled Revenue, Policy | Cleco Power accrues estimated revenue monthly for energy used by customers but not yet billed. The monthly estimated unbilled revenue amounts are recorded as unbilled revenue and a receivable. During the third quarter of 2014, Cleco Power began using actual customer energy consumption data available from its installation of AMI to calculate unbilled revenues. |
Property, Plant, and Equipment, Policy | Property, plant, and equipment consists primarily of regulated utility generation and energy transmission and distribution assets. Regulated assets, utilized primarily for retail operations and electric transmission and distribution, are stated at the cost of construction, which includes certain materials, labor, payroll taxes and benefits, administrative and general costs, and the estimated cost of funds used during construction. Jointly owned assets are reflected in property, plant, and equipment at Cleco Power’s share of the cost to construct or purchase the assets. |
Restricted Cash and Cash Equivalents, Policy | Various agreements to which Cleco is subject contain covenants that restrict its use of cash. As certain provisions under these agreements are met, cash is transferred out of related escrow accounts and becomes available for its intended purposes and/or general corporate purposes. Cleco Katrina/Rita has the right to bill and collect storm restoration costs from Cleco Power’s customers. As cash is collected, it is restricted for payment of administration fees, interest, and principal on storm recovery bonds. |
Fair Value Measurements and Disclosures, Policy | Various accounting pronouncements require certain assets and liabilities to be measured at their fair values. Some assets and liabilities are required to be measured at their fair value each reporting period, while others are required to be measured only one time, generally the date of acquisition or debt issuance. Cleco and Cleco Power are required to disclose the fair value of certain assets and liabilities by one of three levels when required for recognition purposes under GAAP. Cleco utilizes different valuation techniques for fair value calculations. In order to measure the fair value for Level 1 assets and liabilities, Cleco obtains the closing price from published indices in active markets for the various instruments and multiplies this price by the appropriate number of instruments held. Level 2 fair values are determined by obtaining the closing price of similar assets and liabilities from published indices in active markets and then discounting the price to the current period using a U.S. Treasury published interest rate as a proxy for a risk-free rate of return. Cleco has consistently applied the Level 2 fair value technique from fiscal period to fiscal period. Level 3 fair values occur in situations in which there is little, if any, market activity for the asset or liability at the measurement date and therefore RTO auction prices are used. |
Risk Management, Policy | Market risk inherent in Cleco’s market risk-sensitive instruments and positions includes potential changes in value arising from changes in interest rates and the commodity market prices of power, FTRs, and natural gas in the industry on different energy exchanges. Cleco’s Energy Market Risk Management Policy authorizes the use of various derivative instruments, including exchange traded futures and option contracts, forward purchase and sales contracts, and swap transactions to reduce exposure to fluctuations in the price of power, FTRs, and natural gas. Cleco applies the authoritative guidance as it relates to derivatives and hedging to determine whether the market risk-sensitive instruments and positions are required to be marked-to-market. With the exception of FTRs, Cleco Power’s market risk-sensitive instruments and positions qualify for the normal-purchase, normal-sale exception to mark-to-market accounting because Cleco Power takes physical delivery and the instruments and positions are used to satisfy customer requirements. Cleco Power may also enter into risk mitigating positions that would not meet the requirements of a normal-purchase, normal-sale transaction in order to attempt to mitigate the volatility in customer fuel costs. These positions are marked-to-market with the resulting gain or loss recorded on Cleco and Cleco Power’s Condensed Consolidated Balance Sheets as a component of energy risk management assets or liabilities. Such gain or loss is deferred as a component of deferred fuel assets or liabilities in accordance with regulatory policy. When these positions close, actual gains or losses are included in the FAC and reflected on customers’ bills as a component of the fuel cost adjustment. There were no open natural gas positions at September 30, 2015 , or December 31, 2014 . In June 2015, the LPSC approved a long-term natural gas hedging pilot program that requires Cleco Power to establish a proposal for a long-term natural gas procurement program that will be designed to provide gas price stability for a minimum of five years . This proposal is required to be submitted to the LPSC by June 30, 2018. Cleco Power purchases the majority of its FTRs in annual auctions facilitated by MISO during the second quarter of each year and may also purchase additional FTRs in monthly auctions facilitated by MISO. FTRs are derivative instruments which represent economic hedges of future congestion charges that will be incurred in serving Cleco Power’s customer load. FTRs are not designated as hedging instruments for accounting purposes. Cleco Power initially records FTRs at their estimated fair value and subsequently adjusts the carrying value to their estimated fair value at the end of each accounting period based on the most recent MISO FTR auction prices. Unrealized gains or losses on FTRs held by Cleco Power are included in Accumulated deferred fuel on Cleco and Cleco Power’s Condensed Consolidated Balance Sheets. Realized gains or losses on settled FTRs are recorded in Electric operations or Power purchased for utility customers on Cleco and Cleco Power’s Condensed Consolidated Statements of Income. At September 30, 2015 , Cleco and Cleco Power’s Condensed Consolidated Balance Sheets reflected the fair value of open FTR positions of $14.6 million in Energy risk management assets and $0.5 million in Energy risk management liabilities, compared to $10.8 million in Energy risk management assets and $0.8 million in Energy risk management liabilities at December 31, 2014. For more information on FTRs, see Note 4 — “Fair Value Accounting — Derivatives and Hedging — Commodity Contracts.” Cleco and Cleco Power maintain a master netting agreement policy and monitor credit risk exposure through review of counterparty credit quality, counterparty credit exposure, and counterparty concentration levels. Cleco manages these risks by establishing appropriate credit and concentration limits on transactions with counterparties and by requiring contractual guarantees, cash deposits, or letters of credit from counterparties or their affiliates, as deemed necessary. Cleco Power has agreements in place with counterparties that authorize the netting of financial buys and sells and contract payments to mitigate credit risk for transactions entered into for risk management purposes. Cleco may enter into contracts to mitigate the volatility in interest rate risk. These contracts include, but are not limited to, interest rate swaps and treasury rate locks. |
Accounting for MISO Transactions, Policy | Cleco Power participates in MISO’s Energy and Operating Reserve market where sales and purchases are netted hourly. If the hourly activity nets to sales, the result is reported in Electric operations on Cleco and Cleco Power’s Condensed Consolidated Statements of Income. If the hourly activity nets to purchases, the result is reported in Power purchased for utility customers on Cleco and Cleco Power’s Condensed Consolidated Statements of Income. |
Stock-Based Compensation, Policy | At September 30, 2015 , Cleco had two stock-based compensation plans: the ESPP and the LTICP. In accordance with the Merger Agreement, the ESPP has been suspended and will be cancelled upon the completion of the Merger. Pursuant to the LTICP, options or restricted shares of stock, also known as non-vested stock, common stock equivalents, and stock appreciation rights may be granted to certain officers, key employees, or directors of Cleco Corporation and its subsidiaries. During the nine months ended September 30, 2015 , Cleco granted 90,050 shares of non-vested stock to certain officers and key employees of Cleco Corporation and its subsidiaries pursuant to the LTICP. Upon the completion of the Merger, all unvested shares outstanding under the LTICP that were granted prior to January 1, 2015, will vest at target and be paid out in cash to plan participants in accordance with the terms of the Merger Agreement. Unvested shares that were granted in 2015 will be prorated to the target amount and be paid out in cash to plan participants in accordance with the terms of the Merger Agreement. |
Common Stock Repurchase Program, Policy | In accordance with the Merger Agreement, until the completion of the Merger, no additional common stock will be repurchased under this program without the prior written consent of Cleco Partners. In January 2011, Cleco Corporation’s Board of Directors approved the implementation of a common stock repurchase program. This program authorizes management to repurchase, from time to time, shares of common stock so that Cleco’s diluted average shares of common stock outstanding remain approximately equal to its diluted average shares of common stock outstanding for 2010. Under this program, purchases may be made on a discretionary basis at times and in amounts as determined by management, subject to market conditions, legal requirements, and other factors. Purchases under the program will not be announced in advance and may be made in the open market or through privately negotiated transactions. |
Recent Authoritative Guidance, Policy | The Registrants adopted, or will adopt, the recent authoritative guidance listed below on their respective effective dates. In May 2014, FASB amended the accounting guidance for revenue recognition. The amended guidance affects entities that enter into contracts for the transfer of non-financial assets unless those contracts are within the scope of other standards. The core principle of this guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Under the new guidance, an entity must identify the performance obligations in a contract and the transaction price, and allocate the price to specific performance obligations to recognize the revenue when the obligation is completed. The amendments in this update also require disclosure of sufficient information to allow users to understand the nature, amount, timing, and uncertainty of revenue and cash flow arising from contracts. In August 2015, the FASB amended the guidance to provide for a one-year deferral of the effective date. The standard will be effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. Cleco does not plan to early adopt the amended guidance. Reporting entities have the option of using either a full retrospective or a modified retrospective approach. Management will evaluate the respective advantages and disadvantages of each transition method before selecting the method of adoption. Management is assessing the potential areas of impact, including the identification of specific contracts that would fall under the scope of this guidance. Management will continue evaluating the impact that the adoption of this guidance will have on the results of operations, financial condition, and cash flows of the Registrants. In February 2015, FASB amended the accounting guidance for the consolidation analysis. All legal entities are subject to re-evaluation under this revised consolidation model. The adoption of this guidance is effective for annual periods beginning after December 15, 2015, including interim periods within that reporting period. Early adoption is permitted, including adoption in an interim period. Reporting entities may apply these amendments using a modified retrospective approach by recording a cumulative-effect adjustment to equity as of the beginning of the fiscal year of adoption. Management is currently evaluating this guidance, but does not expect it to have an impact on the results of operations, financial condition, or cash flows of the Registrants. In April 2015, FASB amended the accounting guidance to simplify the presentation of debt issuance costs. This guidance requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The adoption of this guidance is effective for annual periods beginning after December 15, 2015, including interim periods within that reporting period. Early adoption is permitted. Entities should apply these amendments on a retrospective basis, wherein the balance sheet of each individual period presented should be adjusted to reflect the period-specific effects of applying the new guidance. Cleco currently records debt issuance costs in Other deferred charges on Cleco’s Condensed Consolidated Balance Sheet. Cleco plans to early adopt the revisions to this amendment beginning with the December 31, 2015 reporting period. The adoption of this guidance will not have an impact on the results of operations, financial condition, or cash flows of the Registrants. In April 2015, FASB issued accounting guidance for a customer’s accounting for fees paid in a cloud computing arrangement. This amendment provides guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The adoption of this guidance is effective for annual periods beginning after December 15, 2015, including interim periods within that reporting period. Early adoption is permitted. Entities can elect to adopt the amendments either prospectively to all arrangements entered into or materially modified after the effective date or retrospectively. Management does not expect the adoption of this guidance to materially impact the results of operations, financial condition, or cash flows of the Registrants. In April 2015, FASB amended the accounting guidance for fair value measurements. Currently, this guidance permits entities, as a practical expedient, to measure the fair value of certain investments using the net asset value per share of the investment. These investments are currently categorized within the fair value hierarchy on the basis of whether the investment is redeemable at net asset value on the measurement date, never redeemable at net asset value, or redeemable at net asset value at a future date. This amendment removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share practical expedient. The amendment also removes the requirement to make certain disclosures for all investments that are eligible to be measured at fair value using the net asset value per share practical expedient. Those disclosures are limited to investments for which the entity has elected to measure the fair value using that practical expedient. The adoption of this guidance is effective for annual periods beginning after December 15, 2015, including interim periods within that reporting period. Early adoption is permitted. These amendments should be applied retrospectively to all periods presented. The retrospective approach requires that an investment for which fair value is measured using the net asset value per share practical expedient be removed from the fair value hierarchy in all periods presented. Cleco plans to early adopt the revisions to this amendment beginning with the December 31, 2015 reporting period. The adoption of this guidance will not have an impact on the results of operations, financial condition, or cash flows of the Registrants. In July 2015, FASB issued the accounting guidance to simplify the measurement of inventory. This guidance requires entities to measure inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The adoption of this guidance is effective for annual periods beginning after December 15, 2016, including interim periods within that reporting period. These amendments should be applied prospectively with earlier application permitted as of the beginning of an interim or annual reporting period. Management is currently evaluating this guidance, but does not expect it to have an impact on the results of operations, financial condition, or cash flows of the Registrants. In August 2015, FASB amended the derivatives and hedging accounting guidance to allow the application of the normal-purchases and normal-sales scope exception to certain electricity contracts within nodal energy markets. The amendments specify that buys and sales of electricity on a forward basis within nodal energy markets does not constitute net settlement of a contract. The adoption of this guidance is effective immediately and should be applied prospectively. This amended guidance preserves Cleco Power’s current accounting elections. Therefore, the adoption of this guidance did not have an impact on the results of operations, financial condition, or cash flows of the Registrants. In September 2015, FASB amended the business combinations guidance to simplify the accounting for measurement-period adjustments. This guidance eliminates the requirement to retrospectively account for these adjustments. The adoption of this guidance is effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years. These amendments should be applied prospectively to adjustments to provisional amounts that occur after the effective date with earlier application permitted. Currently this guidance is not applicable to the Registrants, and as a result, will not have an impact on the results of operations, financial condition, or cash flows of the Registrants. However, upon the expected completion of the Merger, this guidance will be adopted by the respective Registrants. |
Regulatory Assets and Liabilities, Policy | Cleco Power follows the authoritative guidance on regulated operations, which allows utilities to capitalize or defer certain costs for recovery from customers and to recognize a liability for amounts expected to be returned to customers based on regulatory approval and management’s ongoing assessment that it is probable these items will be recovered or refunded through the ratemaking process. Under the current regulatory environment, Cleco Power believes these regulatory assets will be fully recoverable; however, if in the future, as a result of regulatory changes or competition, Cleco Power’s ability to recover these regulatory assets would no longer be probable, then to the extent that such regulatory assets were determined not to be recoverable, Cleco Power would be required to write-down such assets. In addition, potential deregulation of the industry or possible future changes in the method of rate regulation of Cleco Power could require discontinuance of the application of these authoritative guidelines. |
Pension and Other Postretirement Plans, Policy | Cleco’s retirees and their dependents may be eligible to receive medical, dental, vision, and life insurance benefits (other benefits). Cleco recognizes the expected cost of these other benefits during the periods in which the benefits are earned. Employees hired before August 1, 2007, are covered by a non-contributory, defined benefit pension plan. Benefits under the plan reflect an employee’s years of service, age at retirement, and highest total average compensation for any consecutive five calendar years during the last ten years of employment with Cleco. Cleco’s policy is to base its contributions to the employee pension plan upon actuarial computations utilizing the projected unit credit method, subject to the IRS’s full funding limitation. Cleco’s 401(k) Plan is intended to provide active, eligible employees with voluntary, long-term savings and investment opportunities. The Plan is a defined contribution plan and is subject to the applicable provisions of the Employee Retirement Income Security Act of 1974. In accordance with the Plan, employer contributions can be in the form of Cleco Corporation stock or cash. Cash contributions are invested in proportion to the participant’s voluntary contribution investment choices. Plan participants are allowed to choose whether to have dividends on Cleco Corporation common stock 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. Certain Cleco officers are covered by SERP. SERP is a non-qualified, non-contributory, defined benefit pension plan. Benefits under the plan reflect an employee’s years of service, age at retirement, and the sum of (a) the highest base salary paid out over the last five calendar years and (b) the average of the three highest cash bonuses paid during the 60 months prior to retirement, which sum is reduced by benefits received from any other defined benefit pension plan, supplemental executive retirement plan, or Cleco contributions under the enhanced 401(k) Plan to the extent such contributions exceed the limits of the 401(k) Plan. |
Income Tax, Policy | Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. Cleco classifies all interest related to uncertain tax positions as a component of interest payable and interest expense. Cleco classifies income tax penalties as a component of other expense. |
Segment Reporting, Policy | The financial results of Cleco’s segments are presented on an accrual basis. Management evaluates the performance of its segment and allocates resources to it based on segment profit and the requirements to implement new strategic initiatives and projects to meet current business objectives. |
Equity Method Investments, Policy | Cleco and Cleco Power account for investments in VIEs in accordance with the authoritative guidance. Cleco and Cleco Power apply the equity method of accounting to report the investment in Oxbow in the consolidated financial statements. Under the equity method, the assets and liabilities of this entity are reported as Equity investment in investees on Cleco and Cleco Power’s Condensed Consolidated Balance Sheets. The revenue and expenses (excluding income taxes) of this entity are netted and reported as Equity income or loss from investees on Cleco and Cleco Power’s Condensed Consolidated Statements of Income. |
Variable Interest Entity, Policy | Oxbow is owned 50% by Cleco Power and 50% by SWEPCO and is accounted for as an equity method investment. Cleco Power is not the primary beneficiary because it shares the power to control Oxbow’s significant activities with SWEPCO. |
Summary of Significant Accoun27
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Property, Plant, and Equipment | Cleco’s property, plant, and equipment consisted of: (THOUSANDS) AT SEPT. 30, 2015 AT DEC. 31, 2014 Regulated utility plants $ 4,601,293 $ 4,495,490 Other 15,515 13,470 Total property, plant, and equipment 4,616,808 4,508,960 Accumulated depreciation (1,512,711 ) (1,442,960 ) Net property, plant, and equipment $ 3,104,097 $ 3,066,000 |
Restricted Cash and Cash Equivalents | Cleco’s restricted cash and cash equivalents consisted of: (THOUSANDS) AT SEPT. 30, 2015 AT DEC. 31, 2014 Current: Cleco Katrina/Rita’s storm recovery bonds $ 3,702 $ 8,986 Non-current: Diversified Lands’ mitigation escrow 21 21 Cleco Power’s future storm restoration costs 15,857 14,915 Cleco Power’s building renovation escrow — 194 Total non-current 15,878 15,130 Total restricted cash and cash equivalents $ 19,580 $ 24,116 |
Earnings per Average Common Share | The following tables show the calculation of basic and diluted earnings per share: FOR THE THREE MONTHS ENDED SEPT. 30, 2015 2014 (THOUSANDS, EXCEPT SHARES AND PER SHARE AMOUNTS) INCOME SHARES PER SHARE AMOUNT INCOME SHARES PER SHARE AMOUNT Basic net income applicable to common stock $ 54,663 60,481,584 $ 0.90 $ 70,835 60,372,569 $ 1.17 Effect of dilutive securities Add: restricted stock (LTICP) 311,807 317,027 Diluted net income applicable to common stock $ 54,663 60,793,391 $ 0.90 $ 70,835 60,689,596 $ 1.17 FOR THE NINE MONTHS ENDED SEPT. 30, 2015 2014 (THOUSANDS, EXCEPT SHARES AND PER SHARE AMOUNTS) INCOME SHARES PER SHARE AMOUNT INCOME SHARES PER SHARE AMOUNT Basic net income applicable to common stock $ 111,819 60,474,228 $ 1.85 $ 133,392 60,410,122 $ 2.21 Effect of dilutive securities Add: restricted stock (LTICP) 285,711 301,421 Diluted net income applicable to common stock $ 111,819 60,759,939 $ 1.84 $ 133,392 60,711,543 $ 2.20 |
Stock-Based Compensation | Cleco and Cleco Power reported pretax compensation expense for their share-based compensation plans as shown in the following table: FOR THE THREE MONTHS ENDED SEPT. 30, FOR THE NINE MONTHS ENDED SEPT. 30, 2015 2014 2015 2014 2015 2014 2015 2014 (THOUSANDS) CLECO CORPORATION CLECO POWER CLECO CORPORATION CLECO POWER Equity classification Non-vested stock $ 1,419 $ 1,344 $ 519 $ 528 $ 4,644 $ 4,798 $ 1,465 $ 1,461 Tax benefit $ 546 $ 517 $ 200 $ 203 $ 1,787 $ 1,846 $ 564 $ 562 |
Regulatory Assets and Liabili28
Regulatory Assets and Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Cleco Power [Member] | |
Schedule of Regulatory Assets and Liabilities, Net [Line Items] | |
Schedule of Regulatory Assets and Liabilities, Net | The following table summarizes Cleco Power’s regulatory assets and liabilities: (THOUSANDS) AT SEPT. 30, 2015 AT DEC. 31, 2014 Regulatory assets – deferred taxes, net $ 236,341 $ 234,370 Mining costs 9,559 11,470 Interest costs 5,311 5,582 AROs 1,381 1,029 Postretirement costs 150,586 160,903 Tree trimming costs 6,996 8,066 Training costs 6,902 7,019 Surcredits, net 10,546 13,587 Amended lignite mining agreement contingency 3,781 3,781 AMI deferred revenue requirement 5,454 5,863 Production operations and maintenance expenses 12,003 14,761 AFUDC equity gross-up 71,798 72,859 Acadia Unit 1 acquisition costs 2,574 2,653 Financing costs 9,125 9,402 Biomass costs 58 82 MISO integration costs 2,573 3,275 Coughlin transaction costs 1,037 1,060 Corporate franchise tax 849 1,223 Acadia FRP true-up 566 754 Energy efficiency 11 114 Other 418 596 Total regulatory assets 301,528 324,079 PPA true-up (468 ) (624 ) Fuel and purchased power 18,662 21,554 Total regulatory assets, net $ 556,063 $ 579,379 |
Fair Value Accounting (Tables)
Fair Value Accounting (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value [Line Items] | |
Fair Value By Balance Sheet Grouping | The following tables summarize the carrying value and estimated market value of Cleco and Cleco Power’s financial instruments not measured at fair value on Cleco and Cleco Power’s Condensed Consolidated Balance Sheets: Cleco AT SEPT. 30, 2015 AT DEC. 31, 2014 (THOUSANDS) CARRYING VALUE ESTIMATED FAIR VALUE CARRYING VALUE ESTIMATED FAIR VALUE Financial instruments not marked-to-market: Cash equivalents $ 8,200 $ 8,200 $ 39,700 $ 39,700 Restricted cash equivalents $ 19,423 $ 19,423 $ 24,001 $ 24,001 Long-term debt, excluding debt issuance costs $ 1,228,529 $ 1,394,274 $ 1,368,354 $ 1,601,816 |
Fair Value of Financial Assets and Liabilities Measured On A Recurring Basis | The following tables disclose for Cleco and Cleco Power the fair value of financial assets and liabilities measured or disclosed on a recurring basis and within the scope of the authoritative guidance for fair value measurements and disclosures: Cleco CLECO CONSOLIDATED FAIR VALUE MEASUREMENTS AT REPORTING DATE USING: (THOUSANDS) AT SEPT. 30, 2015 QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) AT DEC. 31, 2014 QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) Asset description Institutional money market funds $ 27,623 $ — $ 27,623 $ — $ 63,701 $ — $ 63,701 $ — FTRs 14,563 — — 14,563 10,776 — — 10,776 Total assets $ 42,186 $ — $ 27,623 $ 14,563 $ 74,477 $ — $ 63,701 $ 10,776 Liability description Long-term debt $ 1,394,274 $ — $ 1,394,274 $ — $ 1,601,816 $ — $ 1,601,816 $ — FTRs 488 — — 488 827 — — 827 Total liabilities $ 1,394,762 $ — $ 1,394,274 $ 488 $ 1,602,643 $ — $ 1,601,816 $ 827 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation | The following table summarizes the net changes in the net fair value of FTR assets and liabilities classified as Level 3 in the fair value hierarchy: FOR THE THREE MONTHS ENDED SEPT. 30, FOR THE NINE MONTHS ENDED SEPT. 30, (THOUSANDS) 2015 2014 2015 2014 Beginning balance $ 21,974 $ 42,972 $ 9,949 $ 8,638 Unrealized (losses) gains* (719 ) (6,190 ) 1,053 (9,610 ) Purchases 69 (1,299 ) 20,219 51,144 Settlements (7,249 ) (18,711 ) (17,146 ) (33,400 ) Ending balance $ 14,075 $ 16,772 $ 14,075 $ 16,772 * Unrealized gains and losses are reported in Accumulated deferred fuel on the balance sheet. |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques | The following table quantifies the significant unobservable inputs used in developing the fair value of Level 3 positions at September 30, 2015 , and December 31, 2014 : FAIR VALUE VALUATION TECHNIQUE SIGNIFICANT UNOBSERVABLE INPUTS FORWARD PRICE RANGE (THOUSANDS, EXCEPT FORWARD PRICE RANGE) ASSETS LIABILITIES LOW HIGH FTRs at Sept. 30, 2015 $ 14,563 $ 488 RTO auction pricing FTR price - per MWh $ (3.65 ) $ 4.40 FTRs at Dec. 31, 2014 $ 10,776 $ 827 RTO auction pricing FTR price - per MWh $ (4.12 ) $ 7.76 |
Cleco Power [Member] | |
Fair Value [Line Items] | |
Fair Value By Balance Sheet Grouping | Cleco Power AT SEPT. 30, 2015 AT DEC. 31, 2014 (THOUSANDS) CARRYING VALUE ESTIMATED FAIR VALUE CARRYING VALUE ESTIMATED FAIR VALUE Financial instruments not marked-to-market: Cash equivalents $ 7,000 $ 7,000 $ 34,700 $ 34,700 Restricted cash equivalents $ 19,402 $ 19,402 $ 23,980 $ 23,980 Long-term debt, excluding debt issuance costs $ 1,190,529 $ 1,356,274 $ 1,311,354 $ 1,544,816 |
Fair Value of Financial Assets and Liabilities Measured On A Recurring Basis | Cleco Power CLECO POWER FAIR VALUE MEASUREMENTS AT REPORTING DATE USING: (THOUSANDS) AT SEPT. 30, 2015 QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) AT DEC. 31, 2014 QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) Asset description Institutional money market funds $ 26,402 $ — $ 26,402 $ — $ 58,680 $ — $ 58,680 $ — FTRs 14,563 — — 14,563 10,776 — — 10,776 Total assets $ 40,965 $ — $ 26,402 $ 14,563 $ 69,456 $ — $ 58,680 $ 10,776 Liability description Long-term debt $ 1,356,274 $ — $ 1,356,274 $ — $ 1,544,816 $ — $ 1,544,816 $ — FTRs 488 — — 488 827 — — 827 Total liabilities $ 1,356,762 $ — $ 1,356,274 $ 488 $ 1,545,643 $ — $ 1,544,816 $ 827 |
Not Designated as Hedging Instrument [Member] | |
Fair Value [Line Items] | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The following table presents the fair values of derivative instruments and their respective line items as recorded on Cleco and Cleco Power’s Condensed Consolidated Balance Sheets at September 30, 2015 , and December 31, 2014 : DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS (THOUSANDS) BALANCE SHEET LINE ITEM AT SEPT. 30, 2015 AT DEC. 31, 2014 Commodity-related contracts FTRs: Current Energy risk management assets $ 14,563 $ 10,776 Current Energy risk management liabilities 488 827 Commodity-related contracts, net $ 14,075 $ 9,949 |
Effect of Derivatives On Consolidated Statements of Income | The following table presents the effect of derivatives not designated as hedging instruments on Cleco and Cleco Power’s Condensed Consolidated Statements of Income for the three and nine months ended September 30, 2015 , and 2014 : FOR THE THREE MONTHS ENDED SEPT. 30, FOR THE NINE MONTHS ENDED SEPT. 30, 2015 2014 2015 2014 (THOUSANDS) DERIVATIVES LINE ITEM AMOUNT OF GAIN/(LOSS) RECOGNIZED IN INCOME ON DERIVATIVES Commodity contracts FTRs Electric operations $ 8,988 $ 27,618 $ 42,594 $ 52,946 FTRs Power purchased for utility customers (5,687 ) (20,122 ) (22,337 ) (30,871 ) Total $ 3,301 $ 7,496 $ 20,257 $ 22,075 |
Pension Plan and Employee Ben30
Pension Plan and Employee Benefits (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
401(k) Plan [Abstract] | |
401(k) Plan expense | Cleco’s 401(k) Plan expense for the three and nine months ended September 30, 2015 , and 2014 is as follows: FOR THE THREE MONTHS ENDED SEPT. 30, FOR THE NINE MONTHS ENDED SEPT. 30, (THOUSANDS) 2015 2014 2015 2014 401(k) Plan expense $ 1,090 $ 1,015 $ 3,783 $ 3,585 |
Pension Benefits [Member] | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Net periodic benefit costs | The components of net periodic pension and other benefit cost for the three and nine months ended September 30, 2015 , and 2014 are as follows: FOR THE THREE MONTHS ENDED SEPT. 30, 2015 2014 2015 2014 (THOUSANDS) PENSION BENEFITS OTHER BENEFITS Components of periodic benefit costs: Service cost $ 2,605 $ 2,013 $ 442 $ 347 Interest cost 5,198 4,963 461 432 Expected return on plan assets (5,846 ) (6,127 ) — — Amortizations: Transition obligation — — — 2 Prior period service (credit) cost (17 ) (18 ) 21 29 Net loss 3,457 1,686 174 147 Net periodic benefit cost $ 5,397 $ 2,517 $ 1,098 $ 957 FOR THE NINE MONTHS ENDED SEPT. 30, 2015 2014 2015 2014 (THOUSANDS) PENSION BENEFITS OTHER BENEFITS Components of periodic benefit costs: Service cost $ 7,814 $ 6,038 $ 1,226 $ 1,157 Interest cost 15,596 14,888 1,205 1,357 Expected return on plan assets (17,536 ) (18,380 ) — — Amortizations: Transition obligation — — — 12 Prior period service (credit) cost (53 ) (53 ) 89 89 Net loss 10,371 5,057 650 502 Net periodic benefit cost $ 16,192 $ 7,550 $ 3,170 $ 3,117 |
Other Benefits [Member] | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Schedule of Amounts Recognized in Balance Sheet [Table Text Block] | The current and non-current portions of the other benefits liability for Cleco and Cleco Power at September 30, 2015 , and December 31, 2014 , are as follows: AT SEPT. 30, 2015 AT DEC. 31, 2014 (THOUSANDS) OTHER BENEFITS LIABILITY Cleco Current $ 3,470 $ 3,470 Non-current $ 40,566 $ 41,182 Cleco Power Current $ 3,019 $ 3,206 Non-current $ 35,250 $ 31,250 |
SERP Benefits [Member] | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Schedule of Amounts Recognized in Balance Sheet [Table Text Block] | The current and non-current portions of the SERP liability for Cleco and Cleco Power at September 30, 2015 , and December 31, 2014 , are as follows: AT SEPT. 30, 2015 AT DEC. 31, 2014 (THOUSANDS) SERP LIABILITY Cleco Current $ 2,990 $ 3,031 Non-current $ 73,074 $ 70,871 Cleco Power Current $ 949 $ 813 Non-current $ 19,242 $ 19,006 |
Net periodic benefit costs | The components of net periodic benefit cost related to SERP for the three and nine months ended September 30, 2015 , and 2014 are as follows: FOR THE THREE MONTHS ENDED SEPT. 30, FOR THE NINE MONTHS ENDED SEPT. 30, (THOUSANDS) 2015 2014 2015 2014 Components of periodic benefit costs: Service cost $ 676 $ 570 $ 2,029 $ 1,708 Interest cost 764 757 2,292 2,271 Amortizations: Prior period service cost 14 13 40 40 Net loss 743 469 2,230 1,407 Net periodic benefit cost $ 2,197 $ 1,809 $ 6,591 $ 5,426 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Effective income tax rates | The following table summarizes the effective income tax rates for Cleco and Cleco Power for the three and nine month periods ended September 30, 2015 , and 2014 : FOR THE THREE MONTHS ENDED SEPT. 30, FOR THE NINE MONTHS ENDED SEPT. 30, 2015 2014 2015 2014 Cleco 33.7 % 25.7 % 36.9 % 28.3 % Cleco Power 32.0 % 30.7 % 35.6 % 32.3 % |
Disclosures about Segments (Tab
Disclosures about Segments (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Segment Information | SEGMENT INFORMATION FOR THE THREE MONTHS ENDED SEPT. 30, 2015 (THOUSANDS) CLECO POWER OTHER ELIMINATIONS CONSOLIDATED Revenue Electric operations $ 325,994 $ — $ — $ 325,994 Other operations 19,418 519 — 19,937 Electric customer credits (463 ) — — (463 ) Affiliate revenue 240 15,036 (15,276 ) — Operating revenue, net $ 345,189 $ 15,555 $ (15,276 ) $ 345,468 Depreciation $ 38,376 $ 744 $ — $ 39,120 Merger transaction costs $ — $ 831 $ — $ 831 Interest charges $ 18,309 $ 195 $ 89 $ 18,593 Interest income $ 303 $ (47 ) $ 90 $ 346 Federal and state income tax expense $ 27,638 $ 123 $ — $ 27,761 Net income (loss) $ 58,661 $ (3,998 ) $ — $ 54,663 2014 (THOUSANDS) CLECO POWER OTHER ELIMINATIONS CONSOLIDATED Revenue Electric operations $ 352,763 $ — $ — $ 352,763 Other operations 18,957 540 — 19,497 Electric customer credits (874 ) — — (874 ) Affiliate revenue 332 14,745 (15,077 ) — Operating revenue, net $ 371,178 $ 15,285 $ (15,077 ) $ 371,386 Depreciation $ 37,518 $ 317 $ (1 ) $ 37,834 Merger transaction costs $ — $ 1,141 $ — $ 1,141 Interest charges $ 14,486 $ (1,421 ) $ 110 $ 13,175 Interest income $ 398 $ (91 ) $ 109 $ 416 Federal and state income tax expense (benefit) $ 29,094 $ (4,651 ) $ (1 ) $ 24,442 Net income $ 65,544 $ 5,290 $ 1 $ 70,835 SEGMENT INFORMATION FOR THE NINE MONTHS ENDED SEPT. 30, 2015 (THOUSANDS) CLECO POWER OTHER ELIMINATIONS CONSOLIDATED Revenue Electric operations $ 880,169 $ — $ — $ 880,169 Other operations 51,913 1,559 — 53,472 Electric customer credits (3,642 ) — — (3,642 ) Affiliate revenue 904 42,790 (43,694 ) — Operating revenue, net $ 929,344 $ 44,349 $ (43,694 ) $ 929,999 Depreciation $ 111,485 $ 1,381 $ — $ 112,866 Merger transaction costs $ — $ 2,561 $ — $ 2,561 Interest charges $ 57,612 $ 720 $ 292 $ 58,624 Interest income $ 607 $ (166 ) $ 293 $ 734 Federal and state income tax expense (benefit) $ 65,906 $ (458 ) $ — $ 65,448 Net income (loss) $ 119,080 $ (7,261 ) $ — $ 111,819 Additions to property, plant, and equipment $ 116,360 $ 318 $ — $ 116,678 Equity investment in investees $ 16,372 $ 8 $ — $ 16,380 Total segment assets $ 4,195,925 $ 51,553 $ 57,871 $ 4,305,349 2014 (THOUSANDS) CLECO POWER OTHER ELIMINATIONS CONSOLIDATED Revenue Electric operations $ 939,519 $ — $ — $ 939,519 Tolling operations — 5,467 (5,467 ) — Other operations 47,256 1,622 — 48,878 Electric customer credits (23,555 ) — — (23,555 ) Affiliate revenue 998 42,091 (43,089 ) — Operating revenue, net $ 964,218 $ 49,180 $ (48,556 ) $ 964,842 Depreciation $ 115,016 $ 2,129 $ — $ 117,145 Merger transaction costs $ — $ 1,506 $ — $ 1,506 Interest charges $ 54,885 $ (1,727 ) $ 350 $ 53,508 Interest income $ 1,349 $ (331 ) $ 351 $ 1,369 Federal and state income tax expense (benefit) $ 59,375 $ (6,726 ) $ — $ 52,649 Net income $ 124,509 $ 8,883 $ — $ 133,392 Additions to (reductions in) property, plant, and equipment $ 327,916 $ (175,666 ) $ — $ 152,250 Equity investment in investees (1) $ 14,532 $ 8 $ — $ 14,540 Total segment assets (1) $ 4,242,986 $ 248,654 $ (112,567 ) $ 4,379,073 (1) Balances as of December 31, 2014 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) - Cleco Power [Member] | 9 Months Ended |
Sep. 30, 2015 | |
Variable Interest Entity [Line Items] | |
Comparison of Investee's Assets and Liabilities with Maximum Exposure to Loss | The following table compares the carrying amount of Oxbow’s assets and liabilities with Cleco Power’s maximum exposure to loss related to its investment in Oxbow: (THOUSANDS) AT SEPT. 30, 2015 AT DEC. 31, 2014 Oxbow’s net assets/liabilities $ 32,745 $ 29,065 Cleco Power’s 50% equity $ 16,372 $ 14,532 Cleco Power’s maximum exposure to loss $ 16,372 $ 14,532 |
Equity Method Investments | The following tables contain summarized financial information for Oxbow: (THOUSANDS) AT SEPT. 30, 2015 AT DEC. 31, 2014 Current assets $ 2,159 $ 2,792 Property, plant, and equipment, net 23,806 22,457 Other assets 7,446 3,847 Total assets $ 33,411 $ 29,096 Current liabilities $ 666 $ 31 Partners’ capital 32,745 29,065 Total liabilities and partners’ capital $ 33,411 $ 29,096 FOR THE THREE MONTHS ENDED SEPT. 30, FOR THE NINE MONTHS ENDED SEPT. 30, (THOUSANDS) 2015 2014 2015 2014 Operating revenue $ 942 $ 584 $ 2,656 $ 1,595 Operating expenses 942 584 2,656 1,595 Income before taxes $ — $ — $ — $ — The following table presents the components of Cleco Power’s equity investment in Oxbow: INCEPTION TO DATE (THOUSANDS) AT SEPT. 30, 2015 AT DEC. 31, 2014 Purchase price $ 12,873 $ 12,873 Cash contributions 3,499 1,659 Total equity investment in investee $ 16,372 $ 14,532 |
Litigation, Other Commitments34
Litigation, Other Commitments and Contingencies, and Disclosures about Guarantees (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Other Commitments [Line Items] | |
Equity Investments with an Imputed Interest Rate | The following table contains the disclosures required by the authoritative guidelines for equity investments with a 6% imputed interest rate: (THOUSANDS) Equity contributions Principal payment $ 5,875 Less: unamortized discount 87 Total $ 5,788 |
Affiliate Transactions (Tables)
Affiliate Transactions (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Cleco Power [Member] | |
Related Party Transaction [Line Items] | |
Schedule of Related Party Transactions | Cleco Power has balances that are payable to or due from its affiliates. The following table is a summary of those balances: AT SEPT. 30, 2015 AT DEC. 31, 2014 (THOUSANDS) ACCOUNTS RECEIVABLE ACCOUNTS PAYABLE ACCOUNTS RECEIVABLE ACCOUNTS PAYABLE Cleco Corporation $ 250 $ 453 $ 22,994 $ 525 Support Group 779 7,169 626 7,235 Other (1) 1 — 1 — Total $ 1,030 $ 7,622 $ 23,621 $ 7,760 (1) Represents Attala, Diversified Lands, and Perryville. |
Accumulated Other Comprehensi36
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Accumulated Other Comprehensive Loss [Line Items] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The components of accumulated other comprehensive loss are summarized in the following tables for Cleco and Cleco Power. All amounts are reported net of income taxes. Amounts in parentheses indicate losses. Cleco FOR THE THREE MONTHS ENDED SEPT. 30, 2015 2014 (THOUSANDS) POSTRETIREMENT BENEFIT NET LOSS NET LOSS ON CASH FLOW HEDGES TOTAL AOCI POSTRETIREMENT BENEFIT NET LOSS NET LOSS ON CASH FLOW HEDGES TOTAL AOCI Balances beginning of period $ (25,461 ) $ (5,833 ) $ (31,294 ) $ (18,443 ) $ (6,045 ) $ (24,488 ) Amounts reclassified from accumulated other Amortization of postretirement benefit net loss 586 — 586 318 — 318 Reclassification of net loss to interest charges — 53 53 — 53 53 Net current-period other comprehensive income 586 53 639 318 53 371 Balances, Sept. 30, $ (24,875 ) $ (5,780 ) $ (30,655 ) $ (18,125 ) $ (5,992 ) $ (24,117 ) FOR THE NINE MONTHS ENDED SEPT. 30, 2015 2014 (THOUSANDS) POSTRETIREMENT NET LOSS TOTAL AOCI POSTRETIREMENT NET LOSS TOTAL AOCI Balances beginning of period $ (26,726 ) $ (5,939 ) $ (32,665 ) $ (19,725 ) $ (6,151 ) $ (25,876 ) Amounts reclassified from accumulated other Amortization of postretirement benefit net loss 1,851 — 1,851 1,600 — 1,600 Reclassification of net loss to interest charges — 159 159 — 159 159 Net current-period other comprehensive income 1,851 159 2,010 1,600 159 1,759 Balances, Sept. 30, $ (24,875 ) $ (5,780 ) $ (30,655 ) $ (18,125 ) $ (5,992 ) $ (24,117 ) |
Cleco Power [Member] | |
Accumulated Other Comprehensive Loss [Line Items] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | Cleco Power FOR THE THREE MONTHS ENDED SEPT. 30, 2015 2014 (THOUSANDS) POSTRETIREMENT NET LOSS TOTAL AOCI POSTRETIREMENT NET LOSS TOTAL AOCI Balances beginning of period $ (11,148 ) $ (5,833 ) $ (16,981 ) $ (8,279 ) $ (6,045 ) $ (14,324 ) Amounts reclassified from accumulated other Amortization of postretirement benefit net loss 218 — 218 92 — 92 Reclassification of net loss to interest charges — 53 53 — 53 53 Net current-period other comprehensive income 218 53 271 92 53 145 Balances, Sept. 30, $ (10,930 ) $ (5,780 ) $ (16,710 ) $ (8,187 ) $ (5,992 ) $ (14,179 ) FOR THE NINE MONTHS ENDED SEPT. 30, 2015 2014 (THOUSANDS) POSTRETIREMENT NET LOSS TOTAL AOCI POSTRETIREMENT NET LOSS TOTAL AOCI Balances beginning of period $ (11,349 ) $ (5,939 ) $ (17,288 ) $ (9,026 ) $ (6,151 ) $ (15,177 ) Amounts reclassified from accumulated other Amortization of postretirement benefit net loss 419 — 419 839 — 839 Reclassification of net loss to interest charges — 159 159 — 159 159 Net current-period other comprehensive income 419 159 578 839 159 998 Balances, Sept. 30, $ (10,930 ) $ (5,780 ) $ (16,710 ) $ (8,187 ) $ (5,992 ) $ (14,179 ) |
Summary of Significant Accoun37
Summary of Significant Accounting Policies, Property, Plant, and Equipment (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Accounting Policies [Abstract] | ||
Regulated utility plants | $ 4,601,293 | $ 4,495,490 |
Other | 15,515 | 13,470 |
Total property, plant, and equipment | 4,616,808 | 4,508,960 |
Accumulated depreciation | (1,512,711) | (1,442,960) |
Net property, plant, and equipment | $ 3,104,097 | $ 3,066,000 |
Summary of Significant Accoun38
Summary of Significant Accounting Policies, Restricted Cash and Cash Equivalents (Details) - USD ($) $ in Thousands | 1 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Mar. 31, 2015 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Restricted Cash and Cash Equivalents Items [Line Items] | |||||
Current | $ 3,702 | $ 3,702 | $ 8,986 | ||
Total non-current | 15,878 | 15,878 | 15,130 | ||
Total restricted cash and cash equivalents | 19,580 | 19,580 | 24,116 | ||
Cleco Katrina/Rita storm recovery bonds [Abstract] | |||||
Increase (Decrease) in Cleco Katrina/Rita's storm recovery bonds | (4,536) | $ 4,989 | |||
Katrina Rita collections | |||||
Cleco Katrina/Rita storm recovery bonds [Abstract] | |||||
Increase (Decrease) in Cleco Katrina/Rita's storm recovery bonds | 15,600 | ||||
Katrina Rita Bond Principal Payments | |||||
Cleco Katrina/Rita storm recovery bonds [Abstract] | |||||
Increase (Decrease) in Cleco Katrina/Rita's storm recovery bonds | (7,700) | $ (8,100) | |||
Katrina Rita Bond Interest Payments | |||||
Cleco Katrina/Rita storm recovery bonds [Abstract] | |||||
Increase (Decrease) in Cleco Katrina/Rita's storm recovery bonds | (2,500) | $ (2,600) | |||
Diversified Lands’ mitigation escrow | |||||
Restricted Cash and Cash Equivalents Items [Line Items] | |||||
Total non-current | 21 | 21 | 21 | ||
Cleco Power’s future storm restoration costs | |||||
Restricted Cash and Cash Equivalents Items [Line Items] | |||||
Total non-current | 15,857 | 15,857 | 14,915 | ||
Cleco Power’s building renovation escrow | |||||
Restricted Cash and Cash Equivalents Items [Line Items] | |||||
Total non-current | $ 0 | $ 0 | $ 194 |
Summary of Significant Accoun39
Summary of Significant Accounting Policies, Risk Management (Details) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015USD ($)MMBTU | Dec. 31, 2014USD ($)MMBTU | |
Energy Related Derivative [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Number of open natural gas positions | MMBTU | 0 | 0 |
Long-term program to provide gas price stability | 5 years | |
Cleco Power [Member] | Energy Related Derivative [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Number of open natural gas positions | MMBTU | 0 | 0 |
Energy risk management assets | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
FTRs in Energy risk management asset | $ 14,563 | $ 10,776 |
Energy risk management assets | Cleco Power [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
FTRs in Energy risk management asset | 14,600 | 10,800 |
Energy risk management liabilities | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
FTRs in Energy risk management liability | 488 | 827 |
Energy risk management liabilities | Cleco Power [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
FTRs in Energy risk management liability | $ 500 | $ 800 |
Summary of Significant Accoun40
Summary of Significant Accounting Policies, Earnings Per Average Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income [Abstract] | ||||
Basic net income applicable to common stock | $ 54,663 | $ 70,835 | $ 111,819 | $ 133,392 |
Diluted net income applicable to common stock | $ 54,663 | $ 70,835 | $ 111,819 | $ 133,392 |
Shares [Abstract] | ||||
Basic average number of common shares outstanding (in shares) | 60,481,584 | 60,372,569 | 60,474,228 | 60,410,122 |
Effect of dilutive securities [Abstract] | ||||
Add: restricted stock (LITCP) (in shares) | 311,807 | 317,027 | 285,711 | 301,421 |
Average number of diluted common shares outstanding (in shares) | 60,793,391 | 60,689,596 | 60,759,939 | 60,711,543 |
Per Share Amount [Abstract] | ||||
Basic net income applicable to common stock (in dollars per share) | $ 0.90 | $ 1.17 | $ 1.85 | $ 2.21 |
Diluted net income applicable to common stock (in dollars per share) | $ 0.90 | $ 1.17 | $ 1.84 | $ 2.20 |
Summary of Significant Accoun41
Summary of Significant Accounting Policies, Stock-Based Compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Stock-Based Compensation [Line Items] | ||||
Tax benefit | $ 546 | $ 517 | $ 1,787 | $ 1,846 |
Non-vested Stock [Member] | ||||
Stock-Based Compensation [Line Items] | ||||
Non-vested stock granted during the period (in shares) | 90,050 | |||
Non-vested stock | 1,419 | 1,344 | $ 4,644 | 4,798 |
Cleco Power [Member] | ||||
Stock-Based Compensation [Line Items] | ||||
Tax benefit | 200 | 203 | 564 | 562 |
Cleco Power [Member] | Non-vested Stock [Member] | ||||
Stock-Based Compensation [Line Items] | ||||
Non-vested stock | $ 519 | $ 528 | $ 1,465 | $ 1,461 |
Summary of Significant Accoun42
Summary of Significant Accounting Policies, Common Stock Repurchase Program (Details) - shares | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Cleco Corporation [Member] | ||
Common Stock Repurchase Program [Line Items] | ||
Repurchase of common stock (in shares) | 0 | 250,000 |
Regulatory Assets and Liabili43
Regulatory Assets and Liabilities, Summary of Regulatory Assets and Liabilities (Details) - Cleco Power [Member] - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Schedule of Regulatory Assets and Liabilities, Net [Line Items] | ||
Regulatory assets | $ 301,528 | $ 324,079 |
Total regulatory assets, net | 556,063 | 579,379 |
PPA true-up | ||
Schedule of Regulatory Assets and Liabilities, Net [Line Items] | ||
Regulatory liabilities | (468) | (624) |
Regulatory assets – deferred taxes, net | ||
Schedule of Regulatory Assets and Liabilities, Net [Line Items] | ||
Regulatory assets | 236,341 | 234,370 |
Mining costs | ||
Schedule of Regulatory Assets and Liabilities, Net [Line Items] | ||
Regulatory assets | 9,559 | 11,470 |
Interest costs | ||
Schedule of Regulatory Assets and Liabilities, Net [Line Items] | ||
Regulatory assets | 5,311 | 5,582 |
AROs | ||
Schedule of Regulatory Assets and Liabilities, Net [Line Items] | ||
Regulatory assets | 1,381 | 1,029 |
Postretirement costs | ||
Schedule of Regulatory Assets and Liabilities, Net [Line Items] | ||
Regulatory assets | 150,586 | 160,903 |
Tree trimming costs | ||
Schedule of Regulatory Assets and Liabilities, Net [Line Items] | ||
Regulatory assets | 6,996 | 8,066 |
Training costs | ||
Schedule of Regulatory Assets and Liabilities, Net [Line Items] | ||
Regulatory assets | 6,902 | 7,019 |
Surcredits, net | ||
Schedule of Regulatory Assets and Liabilities, Net [Line Items] | ||
Regulatory assets | 10,546 | 13,587 |
Amended lignite mining agreement contingency | ||
Schedule of Regulatory Assets and Liabilities, Net [Line Items] | ||
Regulatory assets | 3,781 | 3,781 |
AMI deferred revenue requirement | ||
Schedule of Regulatory Assets and Liabilities, Net [Line Items] | ||
Regulatory assets | 5,454 | 5,863 |
Production operations and maintenance expenses | ||
Schedule of Regulatory Assets and Liabilities, Net [Line Items] | ||
Regulatory assets | 12,003 | 14,761 |
AFUDC equity gross-up | ||
Schedule of Regulatory Assets and Liabilities, Net [Line Items] | ||
Regulatory assets | 71,798 | 72,859 |
Acquisition/ transaction costs [Member] | ||
Schedule of Regulatory Assets and Liabilities, Net [Line Items] | ||
Regulatory assets | 2,574 | 2,653 |
Acquisition/ transaction costs [Member] | Coughlin transaction costs | ||
Schedule of Regulatory Assets and Liabilities, Net [Line Items] | ||
Regulatory assets | 1,037 | 1,060 |
Financing costs | ||
Schedule of Regulatory Assets and Liabilities, Net [Line Items] | ||
Regulatory assets | 9,125 | 9,402 |
Biomass costs | ||
Schedule of Regulatory Assets and Liabilities, Net [Line Items] | ||
Regulatory assets | 58 | 82 |
MISO integration costs | ||
Schedule of Regulatory Assets and Liabilities, Net [Line Items] | ||
Regulatory assets | 2,573 | 3,275 |
Corporate franchise tax | ||
Schedule of Regulatory Assets and Liabilities, Net [Line Items] | ||
Regulatory assets | 849 | 1,223 |
Acadia FRP true-up | ||
Schedule of Regulatory Assets and Liabilities, Net [Line Items] | ||
Regulatory assets | 566 | 754 |
Energy efficiency | ||
Schedule of Regulatory Assets and Liabilities, Net [Line Items] | ||
Regulatory assets | 11 | 114 |
Other | ||
Schedule of Regulatory Assets and Liabilities, Net [Line Items] | ||
Regulatory assets | 418 | 596 |
Fuel and purchased power | ||
Schedule of Regulatory Assets and Liabilities, Net [Line Items] | ||
Regulatory assets | $ 18,662 | $ 21,554 |
Regulatory Assets and Liabili44
Regulatory Assets and Liabilities, Additional Disclosures (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2015 | Sep. 30, 2014 | |
Regulatory Assets [Line Items] | |||
Increase of higher volumes and the timing and collection of fuel expenses | $ (1,010) | $ 23,908 | |
Cleco Power [Member] | |||
Regulatory Assets [Line Items] | |||
Increase of higher volumes and the timing and collection of fuel expenses | $ (1,010) | $ 23,908 | |
Fuel and purchased power | Cleco Power [Member] | |||
Regulatory Assets [Line Items] | |||
Percentage of total fuel cost regulated by LPSC (in hundredths) | 73.00% | 74.00% | |
Decrease in fuel and purchased power | $ 2,900 | ||
Decrease in the mark-to-market value of the FTRs | 3,700 | ||
Increase of higher volumes and the timing and collection of fuel expenses | $ 800 |
Fair Value Accounting, Carrying
Fair Value Accounting, Carrying Value and Estimated Fair Value (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Financial instruments not marked-to-market [Abstract] | ||
Long-term debt, excluding debt issuance costs | $ 1,394,274 | $ 1,601,816 |
Carrying Value [Member] | ||
Financial instruments not marked-to-market [Abstract] | ||
Cash equivalents | 8,200 | 39,700 |
Restricted cash equivalents | 19,423 | 24,001 |
Long-term debt, excluding debt issuance costs | 1,228,529 | 1,368,354 |
Estimated Fair Value [Member] | ||
Financial instruments not marked-to-market [Abstract] | ||
Cash equivalents | 8,200 | 39,700 |
Restricted cash equivalents | 19,423 | 24,001 |
Long-term debt, excluding debt issuance costs | 1,394,274 | 1,601,816 |
Cleco Power [Member] | ||
Financial instruments not marked-to-market [Abstract] | ||
Long-term debt, excluding debt issuance costs | 1,356,274 | 1,544,816 |
Cleco Power [Member] | Carrying Value [Member] | ||
Financial instruments not marked-to-market [Abstract] | ||
Cash equivalents | 7,000 | 34,700 |
Restricted cash equivalents | 19,402 | 23,980 |
Long-term debt, excluding debt issuance costs | 1,190,529 | 1,311,354 |
Cleco Power [Member] | Estimated Fair Value [Member] | ||
Financial instruments not marked-to-market [Abstract] | ||
Cash equivalents | 7,000 | 34,700 |
Restricted cash equivalents | 19,402 | 23,980 |
Long-term debt, excluding debt issuance costs | $ 1,356,274 | $ 1,544,816 |
Fair Value Accounting, Fair Val
Fair Value Accounting, Fair Value Measurements and Disclosures(Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015USD ($)$ / MW | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($)$ / MW | Sep. 30, 2014USD ($) | Dec. 31, 2014USD ($)$ / MW | |
Asset Description [Abstract] | |||||
Institutional money market funds | $ 27,623 | $ 27,623 | $ 63,701 | ||
FTR assets | 14,563 | 14,563 | 10,776 | ||
Total Assets | 42,186 | 42,186 | 74,477 | ||
Liability Description [Abstract] | |||||
Long-term debt | 1,394,274 | 1,394,274 | 1,601,816 | ||
FTR liabilities | 488 | 488 | 827 | ||
Total Liabilities | 1,394,762 | 1,394,762 | 1,602,643 | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||||
Transfers between fair value levels | 0 | 0 | 0 | ||
Cash and Cash Equivalents [Member] | |||||
Asset Description [Abstract] | |||||
Institutional money market funds | 8,200 | 8,200 | |||
Restricted Cash and Cash Equivalents, Current [Member] | |||||
Asset Description [Abstract] | |||||
Institutional money market funds | 3,700 | 3,700 | |||
Restricted Cash and Cash Equivalents, Noncurrent [Member] | |||||
Asset Description [Abstract] | |||||
Institutional money market funds | 15,700 | 15,700 | |||
Cleco Power [Member] | |||||
Asset Description [Abstract] | |||||
Institutional money market funds | 26,402 | 26,402 | 58,680 | ||
FTR assets | 14,563 | 14,563 | 10,776 | ||
Total Assets | 40,965 | 40,965 | 69,456 | ||
Liability Description [Abstract] | |||||
Long-term debt | 1,356,274 | 1,356,274 | 1,544,816 | ||
FTR liabilities | 488 | 488 | 827 | ||
Total Liabilities | 1,356,762 | 1,356,762 | $ 1,545,643 | ||
Cleco Power [Member] | Cash and Cash Equivalents [Member] | |||||
Asset Description [Abstract] | |||||
Institutional money market funds | 7,000 | 7,000 | |||
Cleco Power [Member] | Restricted Cash and Cash Equivalents, Current [Member] | |||||
Asset Description [Abstract] | |||||
Institutional money market funds | 3,700 | 3,700 | |||
Cleco Power [Member] | Restricted Cash and Cash Equivalents, Noncurrent [Member] | |||||
Asset Description [Abstract] | |||||
Institutional money market funds | 15,700 | 15,700 | |||
FTRs [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||||
Beginning fair value of FTR assets (liabilities), net | 21,974 | $ 42,972 | 9,949 | $ 8,638 | |
Unrealized gains (losses) | (719) | (6,190) | 1,053 | (9,610) | |
Purchases | 69 | (1,299) | 20,219 | 51,144 | |
Settlements | (7,249) | (18,711) | (17,146) | (33,400) | |
Ending fair value of FTR assets (liabilities), net | $ 14,075 | $ 16,772 | $ 14,075 | $ 16,772 | |
FTRs [Member] | Low [Member] | |||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||||
FTRs Forward Price Range | $ / MW | (3.65) | (3.65) | (4.12) | ||
FTRs [Member] | High [Member] | |||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||||
FTRs Forward Price Range | $ / MW | 4.40 | 4.40 | 7.76 | ||
Measured On A Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||||
Asset Description [Abstract] | |||||
Institutional money market funds | $ 0 | $ 0 | $ 0 | ||
FTR assets | 0 | 0 | 0 | ||
Total Assets | 0 | 0 | 0 | ||
Liability Description [Abstract] | |||||
Long-term debt | 0 | 0 | 0 | ||
FTR liabilities | 0 | 0 | 0 | ||
Total Liabilities | 0 | 0 | 0 | ||
Measured On A Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||||
Asset Description [Abstract] | |||||
Institutional money market funds | 27,623 | 27,623 | 63,701 | ||
FTR assets | 0 | 0 | 0 | ||
Total Assets | 27,623 | 27,623 | 63,701 | ||
Liability Description [Abstract] | |||||
Long-term debt | 1,394,274 | 1,394,274 | 1,601,816 | ||
FTR liabilities | 0 | 0 | 0 | ||
Total Liabilities | 1,394,274 | 1,394,274 | 1,601,816 | ||
Measured On A Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||||
Asset Description [Abstract] | |||||
Institutional money market funds | 0 | 0 | 0 | ||
FTR assets | 14,563 | 14,563 | 10,776 | ||
Total Assets | 14,563 | 14,563 | 10,776 | ||
Liability Description [Abstract] | |||||
Long-term debt | 0 | 0 | 0 | ||
FTR liabilities | 488 | 488 | 827 | ||
Total Liabilities | 488 | 488 | 827 | ||
Measured On A Recurring Basis [Member] | Cleco Power [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||||
Asset Description [Abstract] | |||||
Institutional money market funds | 0 | 0 | 0 | ||
FTR assets | 0 | 0 | 0 | ||
Total Assets | 0 | 0 | 0 | ||
Liability Description [Abstract] | |||||
Long-term debt | 0 | 0 | 0 | ||
FTR liabilities | 0 | 0 | 0 | ||
Total Liabilities | 0 | 0 | 0 | ||
Measured On A Recurring Basis [Member] | Cleco Power [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||||
Asset Description [Abstract] | |||||
Institutional money market funds | 26,402 | 26,402 | 58,680 | ||
FTR assets | 0 | 0 | 0 | ||
Total Assets | 26,402 | 26,402 | 58,680 | ||
Liability Description [Abstract] | |||||
Long-term debt | 1,356,274 | 1,356,274 | 1,544,816 | ||
FTR liabilities | 0 | 0 | 0 | ||
Total Liabilities | 1,356,274 | 1,356,274 | 1,544,816 | ||
Measured On A Recurring Basis [Member] | Cleco Power [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||||
Asset Description [Abstract] | |||||
Institutional money market funds | 0 | 0 | 0 | ||
FTR assets | 14,563 | 14,563 | 10,776 | ||
Total Assets | 14,563 | 14,563 | 10,776 | ||
Liability Description [Abstract] | |||||
Long-term debt | 0 | 0 | 0 | ||
FTR liabilities | 488 | 488 | 827 | ||
Total Liabilities | $ 488 | $ 488 | $ 827 |
Fair Value Accounting, Derivati
Fair Value Accounting, Derivatives and Hedging (Details) $ in Thousands, MWh in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2015USD ($)MMBTUMWh | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($)MMBTUMWh | Sep. 30, 2014USD ($) | Jun. 30, 2015USD ($) | Dec. 31, 2014USD ($)MMBTUMWh | Jun. 30, 2014USD ($) | Dec. 31, 2013USD ($) | |
FTRs, at Fair Value, Net [Abstract] | ||||||||
Commodity-related contracts, net | $ 14,075 | $ 14,075 | $ 9,949 | |||||
Energy risk management assets | ||||||||
FTRs, at Fair Value, Net [Abstract] | ||||||||
FTRs in Energy risk management asset | 14,563 | 14,563 | 10,776 | |||||
Energy risk management liabilities | ||||||||
FTRs, at Fair Value, Net [Abstract] | ||||||||
FTRs in Energy risk management liability | 488 | 488 | $ 827 | |||||
Electric operations | ||||||||
FTRs [Abstract] | ||||||||
Gain (Loss) on FTRs Not Designated as Hedging Instruments Recognized in Income | 8,988 | $ 27,618 | 42,594 | $ 52,946 | ||||
Power purchased for utility customers | ||||||||
FTRs [Abstract] | ||||||||
Gain (Loss) on FTRs Not Designated as Hedging Instruments Recognized in Income | (5,687) | (20,122) | (22,337) | (30,871) | ||||
Derivatives Not Designated As Hedging Instruments [Member] | ||||||||
FTRs [Abstract] | ||||||||
Net gain (loss) on FTRs recognized in income | $ 3,301 | 7,496 | $ 20,257 | 22,075 | ||||
Cleco Power [Member] | ||||||||
FTRs [Abstract] | ||||||||
Number of FTRs Held (MWh) | MWh | 13.1 | 13.1 | 8.9 | |||||
Cleco Power [Member] | Energy risk management assets | ||||||||
FTRs, at Fair Value, Net [Abstract] | ||||||||
FTRs in Energy risk management asset | $ 14,600 | $ 14,600 | $ 10,800 | |||||
Cleco Power [Member] | Energy risk management liabilities | ||||||||
FTRs, at Fair Value, Net [Abstract] | ||||||||
FTRs in Energy risk management liability | $ 500 | $ 500 | $ 800 | |||||
Energy Related Derivative [Member] | ||||||||
FTRs [Abstract] | ||||||||
Number of open natural gas positions | MMBTU | 0 | 0 | 0 | |||||
Long-term program to provide gas price stability | 5 years | |||||||
Energy Related Derivative [Member] | Cleco Power [Member] | ||||||||
FTRs [Abstract] | ||||||||
Number of open natural gas positions | MMBTU | 0 | 0 | 0 | |||||
Fair Value, Inputs, Level 3 [Member] | Price Risk Derivative [Member] | ||||||||
Derivatives, Fair Value [Line Items] | ||||||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis with Unobservable Inputs | $ 14,075 | 16,772 | $ 14,075 | 16,772 | $ 21,974 | $ 9,949 | $ 42,972 | $ 8,638 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Gain (Loss) Included in Deferred Fuel | (719) | (6,190) | 1,053 | (9,610) | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Purchases | 69 | (1,299) | 20,219 | 51,144 | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Settlements | $ (7,249) | $ (18,711) | $ (17,146) | $ (33,400) |
Debt, Short-term Debt (Details)
Debt, Short-term Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Short-term Debt [Line Items] | ||
Short-term debt | $ 0 | $ 0 |
Cleco Power [Member] | ||
Short-term Debt [Line Items] | ||
Short-term debt | $ 0 | $ 0 |
Debt, Long-term Debt (Details)
Debt, Long-term Debt (Details) - USD ($) $ in Thousands | Jul. 16, 2015 | Apr. 30, 2015 | Sep. 30, 2015 | Jul. 15, 2015 | May. 01, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | ||||||
Long-term Debt Outstanding | $ 1,230,000 | |||||
Long-term debt due within one year | 19,382 | $ 18,272 | ||||
Increase (decrease) in debt instrument, net | (141,300) | |||||
Notes Payable to Banks [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Increase (decrease) in debt instrument, net | (35,000) | |||||
Credit Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Increase (decrease) in debt instrument, net | (39,000) | |||||
Capital Lease Obligations [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Capital lease payments due within one year | 2,600 | |||||
Increase (decrease) in debt instrument, net | (1,800) | |||||
Debt Discount Amortization [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Increase (decrease) in debt instrument, net | 300 | |||||
Cleco Katrina Rita Storm Recovery Bonds [Member] | Cleco Katrina Rita Storm Recovery Bonds principal payment [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Principal payments for long term debt due within one year | 16,800 | |||||
Increase (decrease) in debt instrument, net | (15,800) | |||||
Cleco Power's senior notes, 4.95%, due 2015 [Member] | Senior Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Increase (decrease) in debt instrument, net | (50,000) | |||||
Cleco Power [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term Debt Outstanding | 1,190,000 | |||||
Long-term debt due within one year | 19,382 | $ 18,272 | ||||
Increase (decrease) in debt instrument, net | (122,300) | |||||
Cleco Power [Member] | Notes Payable to Banks [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Increase (decrease) in debt instrument, net | (35,000) | |||||
Cleco Power [Member] | Credit Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Increase (decrease) in debt instrument, net | (20,000) | |||||
Cleco Power [Member] | Capital Lease Obligations [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Capital lease payments due within one year | 2,600 | |||||
Increase (decrease) in debt instrument, net | (1,800) | |||||
Cleco Power [Member] | Debt Discount Amortization [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Increase (decrease) in debt instrument, net | 300 | |||||
Cleco Power [Member] | Cleco Katrina Rita Storm Recovery Bonds [Member] | Cleco Katrina Rita Storm Recovery Bonds principal payment [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Principal payments for long term debt due within one year | 16,800 | |||||
Increase (decrease) in debt instrument, net | (15,800) | |||||
Cleco Power [Member] | Cleco Power's senior notes, 4.95%, due 2015 [Member] | Senior Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Increase (decrease) in debt instrument, net | $ (50,000) | |||||
Cleco Power [Member] | Series A GO Zone bonds [Member] | Cleco Katrina Rita Storm Recovery Bonds principal payment [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Unsecured Debt | $ 50,000 | |||||
Unsecured Debt Fixed Interest, Percentage Rate (in hundredths) | 2.00% | |||||
Senior Notes [Member] | Cleco Power [Member] | Cleco Power's senior notes, 4.95%, due 2015 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Outstanding debt repayment | $ 50,000 | |||||
Accrued interest | $ 1,200 | |||||
Repayment of Senior Notes through cash | $ 25,000 | |||||
Repayment of Senior Notes through credit facility | $ 25,000 | |||||
Notes Payable to Banks [Member] | Cleco Power [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Outstanding debt repayment | $ 35,000 |
Debt, Credit Facilities (Detail
Debt, Credit Facilities (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2015USD ($) | |
Cleco Corporation [Member] | |
Line of Credit Facility [Line Items] | |
Long-term Line of Credit | $ 38 |
Line of Credit Facility, Maximum Borrowing Capacity | $ 250 |
All-in interest rate (in hundredths) | 1.235% |
Line of Credit Facility, Remaining Borrowing Capacity | $ 212 |
Facility Fees (in hundredths) | 0.175% |
Cleco Power [Member] | |
Line of Credit Facility [Line Items] | |
Long-term Line of Credit | $ 0 |
Line of Credit Facility, Maximum Borrowing Capacity | 300 |
Line of Credit Facility, Remaining Borrowing Capacity | 298 |
Letters of Credit Outstanding, Amount | $ 2 |
Facility Fees (in hundredths) | 0.10% |
LIBOR [Member] | Cleco Corporation [Member] | Credit Facility [Member] | |
Line of Credit Facility [Line Items] | |
Credit facility, Basis Spread on Variable Rate (in hundredths) | 1.075% |
LIBOR [Member] | Cleco Power [Member] | Credit Facility [Member] | |
Line of Credit Facility [Line Items] | |
Credit facility, Basis Spread on Variable Rate (in hundredths) | 0.90% |
ABR [Member] | Cleco Corporation [Member] | Credit Facility [Member] | |
Line of Credit Facility [Line Items] | |
Credit facility, Basis Spread on Variable Rate (in hundredths) | 0.075% |
Pension Plan and Employee Ben51
Pension Plan and Employee Benefits, Pension Plan and Other Benefits Plan (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Pension Benefits [Member] | |||||
Components of periodic benefit costs [Abstract] | |||||
Service cost | $ 2,605 | $ 2,013 | $ 7,814 | $ 6,038 | |
Interest cost | 5,198 | 4,963 | 15,596 | 14,888 | |
Expected return on plan assets | (5,846) | (6,127) | (17,536) | (18,380) | |
Amortization [Abstract] | |||||
Transition obligation | 0 | 0 | 0 | 0 | |
Prior period service (credit) cost | (17) | (18) | (53) | (53) | |
Net loss | 3,457 | 1,686 | 10,371 | 5,057 | |
Net periodic benefit cost | 5,397 | 2,517 | 16,192 | 7,550 | |
Other Benefits [Member] | |||||
Components of periodic benefit costs [Abstract] | |||||
Service cost | 442 | 347 | 1,226 | 1,157 | |
Interest cost | 461 | 432 | 1,205 | 1,357 | |
Expected return on plan assets | 0 | 0 | 0 | 0 | |
Amortization [Abstract] | |||||
Transition obligation | 0 | 2 | 0 | 12 | |
Prior period service (credit) cost | 21 | 29 | 89 | 89 | |
Net loss | 174 | 147 | 650 | 502 | |
Net periodic benefit cost | 1,098 | 957 | 3,170 | 3,117 | |
Postemployment Benefits Liability, Current | 3,470 | 3,470 | $ 3,470 | ||
Postemployment Benefits Liability, Noncurrent | 40,566 | 40,566 | 41,182 | ||
Other Subsidiaries [Member] | Pension Benefits [Member] | |||||
Amortization [Abstract] | |||||
Net periodic benefit cost | 500 | 400 | 1,500 | 1,300 | |
Cleco Power [Member] | Other Benefits [Member] | |||||
Amortization [Abstract] | |||||
Net periodic benefit cost | 900 | $ 800 | 2,700 | $ 2,700 | |
Postemployment Benefits Liability, Current | 3,019 | 3,019 | 3,206 | ||
Postemployment Benefits Liability, Noncurrent | $ 35,250 | $ 35,250 | $ 31,250 |
Pension Plan and Employee Ben52
Pension Plan and Employee Benefits, SERP (Details) - SERP Benefits [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Components of periodic benefit costs [Abstract] | |||||
Service cost | $ 676 | $ 570 | $ 2,029 | $ 1,708 | |
Interest cost | 764 | 757 | 2,292 | 2,271 | |
Prior period service cost | 14 | 13 | 40 | 40 | |
Net loss | 743 | 469 | 2,230 | 1,407 | |
Net periodic benefit cost | 2,197 | 1,809 | 6,591 | 5,426 | |
Current portion of SERP liability | 2,990 | 2,990 | $ 3,031 | ||
Noncurrent portion of SERP liability | 73,074 | 73,074 | 70,871 | ||
Cleco Power [Member] | |||||
Components of periodic benefit costs [Abstract] | |||||
Net periodic benefit cost | 600 | $ 400 | 1,700 | $ 1,300 | |
Current portion of SERP liability | 949 | 949 | 813 | ||
Noncurrent portion of SERP liability | $ 19,242 | $ 19,242 | $ 19,006 |
Pension Plan and Employee Ben53
Pension Plan and Employee Benefits, 401 (K) Plans (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
401(k) Plan [Abstract] | ||||
401(k) Plan expense | $ 1,090 | $ 1,015 | $ 3,783 | $ 3,585 |
Other Subsidiaries [Member] | ||||
401(k) Plan [Abstract] | ||||
401(k) Plan expense | $ 200 | $ 200 | $ 700 | $ 700 |
Income Taxes, Effective Tax Rat
Income Taxes, Effective Tax Rate Reconciliation (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Effective Income Tax Rate [Line Items] | ||||
Effective income tax rates | 33.70% | 25.70% | 36.90% | 28.30% |
Cleco Power [Member] | ||||
Effective Income Tax Rate [Line Items] | ||||
Effective income tax rates | 32.00% | 30.70% | 35.60% | 32.30% |
Income Taxes, Valuation Allowan
Income Taxes, Valuation Allowance (Details) - NMTC [Member] - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
NMTC Carryforward [Line Items] | ||
Deferred Tax Asset | $ 96.2 | $ 95.4 |
Valuation Allowance | $ 0 |
Income Taxes, Net Operating Los
Income Taxes, Net Operating Losses (Details) $ in Millions | Sep. 30, 2015USD ($) |
Federal [Member] | |
Net Operating Losses [Line Items] | |
Net Operating Loss Carryforward | $ 31.2 |
Income Taxes, Uncertain Tax Pos
Income Taxes, Uncertain Tax Positions (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Uncertain Tax Positions [Line Items] | ||||
Interest payable related to uncertain tax positions | $ 0 | $ 0 | ||
Interest expense related to uncertain tax positions | 0 | |||
Liability for uncertain tax positions | 0 | |||
Penalties (for 3 months ended September 30, 2014 the amount is less than) | $ 0.1 | 0 | $ 0.1 | |
Cleco Power [Member] | ||||
Uncertain Tax Positions [Line Items] | ||||
Interest payable related to uncertain tax positions | 0 | $ 0 | ||
Interest expense related to uncertain tax positions | $ 0 |
Disclosures about Segments (Det
Disclosures about Segments (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015USD ($)entity | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($)entity | Sep. 30, 2014USD ($) | Dec. 31, 2014USD ($) | |
Segment Reporting Information [Line Items] | |||||
Number of transmission interconnection facility subsidiaries | entity | 2 | 2 | |||
Revenue [Abstract] | |||||
Electric operations | $ 325,994 | $ 352,763 | $ 880,169 | $ 939,519 | |
Tolling operations | 0 | ||||
Other operations | 19,937 | 19,497 | 53,472 | 48,878 | |
Electric customer credits | (463) | (874) | (3,642) | (23,555) | |
Affiliate revenue | 0 | 0 | 0 | 0 | |
Operating revenue, net | 345,468 | 371,386 | 929,999 | 964,842 | |
Depreciation | 39,120 | 37,834 | 112,866 | 117,145 | |
Merger transaction costs | 831 | 1,141 | 2,561 | 1,506 | |
Interest charges | 18,593 | 13,175 | 58,624 | 53,508 | |
Interest income | 346 | 416 | 734 | 1,369 | |
Federal and state income tax expense (benefit) | 27,761 | 24,442 | 65,448 | 52,649 | |
Net income (loss) | 54,663 | 70,835 | 111,819 | 133,392 | |
Additions to property, plant, and equipment | 116,678 | 160,181 | |||
Additions to (reductions in) property, plant, and equipment | 152,250 | ||||
Equity investment in investees | 16,380 | 16,380 | $ 14,540 | ||
Total segment assets | 4,305,349 | 4,305,349 | 4,379,073 | ||
Operating Segments [Member] | Cleco Power [Member] | |||||
Revenue [Abstract] | |||||
Electric operations | 325,994 | 352,763 | 880,169 | 939,519 | |
Tolling operations | 0 | ||||
Other operations | 19,418 | 18,957 | 51,913 | 47,256 | |
Electric customer credits | (463) | (874) | (3,642) | (23,555) | |
Affiliate revenue | 240 | 332 | 904 | 998 | |
Operating revenue, net | 345,189 | 371,178 | 929,344 | 964,218 | |
Depreciation | 38,376 | 37,518 | 111,485 | 115,016 | |
Merger transaction costs | 0 | 0 | 0 | 0 | |
Interest charges | 18,309 | 14,486 | 57,612 | 54,885 | |
Interest income | 303 | 398 | 607 | 1,349 | |
Federal and state income tax expense (benefit) | 27,638 | 29,094 | 65,906 | 59,375 | |
Net income (loss) | 58,661 | 65,544 | 119,080 | 124,509 | |
Additions to property, plant, and equipment | 116,360 | ||||
Additions to (reductions in) property, plant, and equipment | 327,916 | ||||
Equity investment in investees | 16,372 | 16,372 | 14,532 | ||
Total segment assets | 4,195,925 | 4,195,925 | 4,242,986 | ||
Operating Segments [Member] | Other [Member] | |||||
Revenue [Abstract] | |||||
Electric operations | 0 | 0 | 0 | 0 | |
Tolling operations | 5,467 | ||||
Other operations | 519 | 540 | 1,559 | 1,622 | |
Electric customer credits | 0 | 0 | 0 | 0 | |
Affiliate revenue | 15,036 | 14,745 | 42,790 | 42,091 | |
Operating revenue, net | 15,555 | 15,285 | 44,349 | 49,180 | |
Depreciation | 744 | 317 | 1,381 | 2,129 | |
Merger transaction costs | 831 | 1,141 | 2,561 | 1,506 | |
Interest charges | 195 | (1,421) | 720 | (1,727) | |
Interest income | (47) | (91) | (166) | (331) | |
Federal and state income tax expense (benefit) | 123 | (4,651) | (458) | (6,726) | |
Net income (loss) | (3,998) | 5,290 | (7,261) | 8,883 | |
Additions to property, plant, and equipment | 318 | ||||
Additions to (reductions in) property, plant, and equipment | (175,666) | ||||
Equity investment in investees | 8 | 8 | 8 | ||
Total segment assets | 51,553 | 51,553 | 248,654 | ||
Intersegment Elimination [Member] | |||||
Revenue [Abstract] | |||||
Electric operations | 0 | 0 | 0 | 0 | |
Tolling operations | (5,467) | ||||
Other operations | 0 | 0 | 0 | 0 | |
Electric customer credits | 0 | 0 | 0 | 0 | |
Affiliate revenue | (15,276) | (15,077) | (43,694) | (43,089) | |
Operating revenue, net | (15,276) | (15,077) | (43,694) | (48,556) | |
Depreciation | 0 | (1) | 0 | 0 | |
Merger transaction costs | 0 | 0 | 0 | 0 | |
Interest charges | 89 | 110 | 292 | 350 | |
Interest income | 90 | 109 | 293 | 351 | |
Federal and state income tax expense (benefit) | 0 | (1) | 0 | 0 | |
Net income (loss) | 0 | $ 1 | 0 | 0 | |
Additions to property, plant, and equipment | 0 | ||||
Additions to (reductions in) property, plant, and equipment | $ 0 | ||||
Equity investment in investees | 0 | 0 | 0 | ||
Total segment assets | $ 57,871 | $ 57,871 | $ (112,567) |
Regulation and Rates (Details)
Regulation and Rates (Details) - USD ($) $ in Thousands | 1 Months Ended | 15 Months Ended | 53 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Regulation and Rates [Line Items] | ||||
Provision for rate refund | $ 4,164 | $ 4,164 | $ 2,264 | |
Cleco Power [Member] | ||||
Regulation and Rates [Line Items] | ||||
Provision for rate refund | 4,164 | 4,164 | $ 2,264 | |
Cleco Power [Member] | FERC [Member] | ROE reduction of transmission rates [Member] | ||||
Regulation and Rates [Line Items] | ||||
Provision for rate refund | 2,800 | 2,800 | ||
Cleco Power [Member] | LPSC [Member] | Energy Efficiency Programs [Member] | ||||
Regulation and Rates [Line Items] | ||||
Provision for rate refund | 1,200 | 1,200 | ||
Cleco Power [Member] | LPSC [Member] | Monitoring report for the 12-month period ended June 30, 2015 [Member] | ||||
Regulation and Rates [Line Items] | ||||
Provision for rate refund | 200 | $ 200 | ||
Cleco Power [Member] | LPSC [Member] | 2010 FRP [Member] | ||||
Regulation and Rates [Line Items] | ||||
Target ROE allowed by FRP (in hundredths) | 10.70% | |||
Percentage of retail earnings within range to be returned to customers (in hundredths) | 60.00% | |||
ROE for customer credit, low range (in hundredths) | 11.30% | |||
ROE for customer credit, high range (in hundredths) | 12.30% | |||
Cleco Power [Member] | LPSC [Member] | FRP extension [Member] | ||||
Regulation and Rates [Line Items] | ||||
Target ROE allowed by FRP (in hundredths) | 10.00% | |||
Percentage of retail earnings within range to be returned to customers (in hundredths) | 60.00% | |||
ROE for customer credit, low range (in hundredths) | 10.90% | |||
ROE for customer credit, high range (in hundredths) | 11.75% | |||
Cleco Power [Member] | LPSC [Member] | Monitoring report for the 12-month period ended June 30, 2014 [Member] | ||||
Regulation and Rates [Line Items] | ||||
Refunds issued | $ 1,600 | |||
Maximum [Member] | Cleco Power [Member] | LPSC [Member] | 2010 FRP [Member] | ||||
Regulation and Rates [Line Items] | ||||
Target ROE allowed by FRP (in hundredths) | 11.30% | |||
Maximum [Member] | Cleco Power [Member] | LPSC [Member] | FRP extension [Member] | ||||
Regulation and Rates [Line Items] | ||||
Target ROE allowed by FRP (in hundredths) | 10.90% |
Variable Interest Entities (Det
Variable Interest Entities (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Variable Interest Entity [Line Items] | |||||
Equity investment in investees | $ 16,380 | $ 16,380 | $ 14,540 | ||
Cash contributions to Oxbow | 1,840 | $ 0 | |||
Components of equity method investments [Abstract] | |||||
Total equity investment in investee | 16,380 | 16,380 | 14,540 | ||
Cleco Power [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Equity investment in investees | 16,372 | 16,372 | 14,532 | ||
Cash contributions to Oxbow | 1,840 | 0 | |||
Components of equity method investments [Abstract] | |||||
Total equity investment in investee | 16,372 | 16,372 | 14,532 | ||
Variable Interest Entity, Not Primary Beneficiary [Member] | |||||
Equity Method Investment, Summarized Financial Information [Abstract] | |||||
Current assets | 2,159 | 2,159 | 2,792 | ||
Total assets | 33,411 | 33,411 | 29,096 | ||
Current liabilities | 666 | 666 | 31 | ||
Partners' capital | 32,745 | 32,745 | 29,065 | ||
Total liabilities and partners' capital | 33,411 | 33,411 | 29,096 | ||
Operating revenue | 942 | $ 584 | 2,656 | 1,595 | |
Operating expenses | 942 | 584 | 2,656 | 1,595 | |
Income before taxes | 0 | $ 0 | 0 | $ 0 | |
Variable Interest Entity, Not Primary Beneficiary [Member] | Property, plant, and equipment, net [Member] | |||||
Equity Method Investment, Summarized Financial Information [Abstract] | |||||
Other assets | 23,806 | 23,806 | 22,457 | ||
Variable Interest Entity, Not Primary Beneficiary [Member] | Other Assets [Member] | |||||
Equity Method Investment, Summarized Financial Information [Abstract] | |||||
Other assets | 7,446 | $ 7,446 | 3,847 | ||
Variable Interest Entity, Not Primary Beneficiary [Member] | Cleco Power [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Ownership percentage by Cleco Power (in hundredths) | 50.00% | ||||
Ownership percentage by other parties (in hundredths) | 50.00% | ||||
Equity investment in investees | 16,372 | $ 16,372 | 14,532 | ||
Cash contributions to Oxbow | 1,800 | ||||
Components of equity method investments [Abstract] | |||||
Purchase price | 12,873 | 12,873 | 12,873 | ||
Cash contributions | 3,499 | 3,499 | 1,659 | ||
Total equity investment in investee | 16,372 | 16,372 | 14,532 | ||
Comparison of carrying amount of assets and liabilities to maximum loss exposure [Abstract] | |||||
Cleco Power’s 50% equity | 16,372 | 16,372 | 14,532 | ||
Cleco Power’s maximum exposure to loss | 16,372 | 16,372 | 14,532 | ||
Equity Method Investment, Summarized Financial Information [Abstract] | |||||
Partners' capital | 32,745 | 32,745 | $ 29,065 | ||
Variable Interest Entity, Not Primary Beneficiary [Member] | Diversified Lands [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Equity investment in investees | 100 | 100 | |||
Components of equity method investments [Abstract] | |||||
Total equity investment in investee | $ 100 | $ 100 |
Litigation, Other Commitments61
Litigation, Other Commitments and Contingencies, and Disclosures about Guarantees, Litigation (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 60 Months Ended | ||||
Nov. 30, 2014 | Nov. 30, 2013 | Jul. 31, 2010USD ($)plaintiff | Dec. 31, 2009USD ($) | Sep. 30, 2015USD ($)plaintiff | Dec. 31, 2013USD ($) | Dec. 31, 2014USD ($) | |
Litigation [Abstract] | |||||||
Provision for rate refund | $ 4,164 | $ 2,264 | |||||
Other Litigation Matters [Member] | |||||||
Litigation [Abstract] | |||||||
Amount of estimated possible loss | 5,300 | ||||||
Cleco Power [Member] | |||||||
Litigation [Abstract] | |||||||
Provision for rate refund | $ 4,164 | $ 2,264 | |||||
Pending Litigation [Member] | Petition for breach of fiduciary duties in proposed merger [Member] | |||||||
Litigation [Abstract] | |||||||
Loss contingency, number of plaintiffs (in ones) | plaintiff | 7 | ||||||
Dismissed litigation [Member] | Discrimination Complaint [Member] | |||||||
Litigation [Abstract] | |||||||
Loss contingency, number of plaintiffs (in ones) | plaintiff | 13 | ||||||
Dismissed litigation [Member] | Minimum [Member] | Discrimination Complaint [Member] | |||||||
Litigation [Abstract] | |||||||
Loss contingency, damages sought, minimum amount | $ 2,500 | $ 35,000 | |||||
LPSC 2009-2013 audit of fuel [Member] | Cleco Power [Member] | |||||||
Litigation [Abstract] | |||||||
Fuel expenses included in the audit | $ 1,730,000 | ||||||
FERC [Member] | MISO Transmission Rates [Member] | |||||||
Litigation [Abstract] | |||||||
Current Return on Equity, Percentage (in hundredths) | 12.38% | ||||||
Proposed Return on Equity, Percentage (in hundredths) | 6.68% | ||||||
Requested increase to Return on Equity, Percentage (in hundredths) | 0.50% | ||||||
FERC [Member] | Transmission ROE [Member] | Cleco Power [Member] | |||||||
Litigation [Abstract] | |||||||
Provision for rate refund | $ 2,800 |
Litigation, Other Commitments62
Litigation, Other Commitments and Contingencies, and Disclosures about Guarantees, Off-Balance Sheet Commitments (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Jan. 31, 2006 |
Guarantee Issued to Entergy Mississippi on behalf of Attala [Member] | Cleco Corporation [Member] | ||
Other Commitments [Line Items] | ||
Guarantor Obligations, Maximum Exposure, Undiscounted | $ 0.5 | |
Guarantee Issued to Entergy Mississippi on behalf of Attala [Member] | Cleco Power [Member] | ||
Other Commitments [Line Items] | ||
Guarantor Obligations, Maximum Exposure, Undiscounted | $ 69.3 | |
Obligations Under Standby Letter of Credit [Member] | Cleco Power [Member] | ||
Other Commitments [Line Items] | ||
Guarantor Obligations, Maximum Exposure, Undiscounted | $ 3.7 | |
Percentage of average losses on which letter of credit is based (in hundredths) | 110.00% | |
Performance Guarantee [Member] | ||
Other Commitments [Line Items] | ||
Guarantor Obligations, Maximum Exposure, Undiscounted | $ 42.4 | |
Evangeline [Member] | Indemnification Agreement [Member] | ||
Other Commitments [Line Items] | ||
Guarantor Obligations, Maximum Exposure, Undiscounted | 40 | |
Evangeline [Member] | Indemnification Agreement [Member] | Cleco Power [Member] | ||
Other Commitments [Line Items] | ||
Guarantor Obligations, Maximum Exposure, Undiscounted | 40 | |
Evangeline [Member] | Indemnification Agreement INCLUDING fundamental organizational structure [Member] | ||
Other Commitments [Line Items] | ||
Guarantor Obligations, Maximum Exposure, Undiscounted | 400 | |
Evangeline [Member] | Indemnification Agreement INCLUDING fundamental organizational structure [Member] | Cleco Power [Member] | ||
Other Commitments [Line Items] | ||
Guarantor Obligations, Maximum Exposure, Undiscounted | 400 | |
MISO [Member] | Obligations Under Standby Letter of Credit [Member] | Cleco Power [Member] | ||
Other Commitments [Line Items] | ||
Guarantor Obligations, Maximum Exposure, Undiscounted | $ 2 |
Litigation, Other Commitments63
Litigation, Other Commitments and Contingencies, and Disclosures about Guarantees, On-Balance Sheet Guarantees (Details) - Cleco Power [Member] - Financial Guarantee [Member] $ in Millions | Sep. 30, 2015USD ($) |
Disclosures about Guarantees [Abstract] | |
Guarantor Obligations, Maximum Exposure, Undiscounted | $ 69.3 |
Guarantor Obligations, Current Carrying Value | $ 3.8 |
Litigation, Other Commitments64
Litigation, Other Commitments and Contingencies, and Disclosures about Guarantees, Other Commitments (Details) - NMTC [Member] - USD ($) | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2015 | Aug. 31, 2008 | |
Other Commitments [Line Items] | |||
Membership interest in U.S Bank New Markets Tax Credit Fund (in hundredths) | 99.90% | ||
Equity contributions to be made to the Fund | $ 283,700,000 | ||
Net tax benefits to be received from the Fund | 302,000,000 | ||
Difference between equity contributions and total benefits received will be recognized over the life of the Fund as net tax benefits | 18,300,000 | ||
Future equity contributions to the NMTC Fund [Abstract] | |||
Three months ending Dec. 31, 2015 | 5,900,000 | $ 5,900,000 | |
Other Commitment, Due in Second and Third Year | 0 | 0 | |
Tax Benefits in Excess of Capital Contributions | 21,300,000 | 21,300,000 | |
Tax benefits not utilized | $ 117,100,000 | $ 117,100,000 | |
Equity contributions, imputed interest rate 6% [Abstract] | |||
Equity contributions - imputed interest rate (in hundredths) | 6.00% | 6.00% | |
Principal payment | $ 5,875,000 | $ 5,875,000 | |
Less: unamortized discount | 87,000 | 87,000 | |
Total | $ 5,788,000 | $ 5,788,000 | |
Period of recognition of gross investment amortization expense (in years) | 9 years | ||
Remaining period of recognition of gross investment amortization expense (in years) | 2 years |
Affiliate Transactions (Details
Affiliate Transactions (Details) - Cleco Power [Member] - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Related Party Transaction [Line Items] | ||
Accounts receivable - affiliate | $ 1,030 | $ 23,621 |
Accounts payable - affiliate | 7,622 | 7,760 |
Cleco Corporation [Member] | ||
Related Party Transaction [Line Items] | ||
Accounts receivable - affiliate | 250 | 22,994 |
Accounts payable - affiliate | 453 | 525 |
Support Group [Member] | ||
Related Party Transaction [Line Items] | ||
Accounts receivable - affiliate | 779 | 626 |
Accounts payable - affiliate | 7,169 | 7,235 |
Others [Member] | ||
Related Party Transaction [Line Items] | ||
Accounts receivable - affiliate | 1 | 1 |
Accounts payable - affiliate | $ 0 | $ 0 |
Accumulated Other Comprehensi66
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Accumulated other comprehensive loss [Roll Forward] | ||||
Balances | $ 1,627,270 | |||
Net current-period other comprehensive income [Abstract] | ||||
Net current-period other comprehensive income | $ 639 | $ 371 | 2,010 | $ 1,759 |
Balances | 1,671,750 | 1,671,750 | ||
Accumulated Other Comprehensive Income (Loss) [Member] | ||||
Accumulated other comprehensive loss [Roll Forward] | ||||
Balances | (31,294) | (24,488) | (32,665) | (25,876) |
Net current-period other comprehensive income [Abstract] | ||||
Amounts reclassified from accumulated other comprehensive income, net of tax | 586 | 318 | 1,851 | 1,600 |
Net current-period other comprehensive income | 639 | 371 | 2,010 | 1,759 |
Balances | (30,655) | (24,117) | (30,655) | (24,117) |
Accumulated Other Comprehensive Income (Loss) [Member] | Interest Expense [Member] | ||||
Net current-period other comprehensive income [Abstract] | ||||
Amounts reclassified from accumulated other comprehensive income, net of tax | 53 | 53 | 159 | 159 |
Postretirement Benefit Net Loss [Member] | ||||
Accumulated other comprehensive loss [Roll Forward] | ||||
Balances | (25,461) | (18,443) | (26,726) | (19,725) |
Net current-period other comprehensive income [Abstract] | ||||
Amounts reclassified from accumulated other comprehensive income, net of tax | 586 | 318 | 1,851 | 1,600 |
Net current-period other comprehensive income | 586 | 318 | 1,851 | 1,600 |
Balances | (24,875) | (18,125) | (24,875) | (18,125) |
Net Loss on Cash Flow Hedges [Member] | ||||
Accumulated other comprehensive loss [Roll Forward] | ||||
Balances | (5,833) | (6,045) | (5,939) | (6,151) |
Net current-period other comprehensive income [Abstract] | ||||
Net current-period other comprehensive income | 53 | 53 | 159 | 159 |
Balances | (5,780) | (5,992) | (5,780) | (5,992) |
Net Loss on Cash Flow Hedges [Member] | Interest Expense [Member] | ||||
Net current-period other comprehensive income [Abstract] | ||||
Amounts reclassified from accumulated other comprehensive income, net of tax | 53 | 53 | 159 | 159 |
Cleco Power [Member] | ||||
Accumulated other comprehensive loss [Roll Forward] | ||||
Balances | 1,545,858 | |||
Net current-period other comprehensive income [Abstract] | ||||
Net current-period other comprehensive income | 271 | 145 | 578 | 998 |
Balances | 1,565,516 | 1,565,516 | ||
Cleco Power [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | ||||
Accumulated other comprehensive loss [Roll Forward] | ||||
Balances | (16,981) | (14,324) | (17,288) | (15,177) |
Net current-period other comprehensive income [Abstract] | ||||
Amounts reclassified from accumulated other comprehensive income, net of tax | 218 | 92 | 419 | 839 |
Net current-period other comprehensive income | 271 | 145 | 578 | 998 |
Balances | (16,710) | (14,179) | (16,710) | (14,179) |
Cleco Power [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Interest Expense [Member] | ||||
Net current-period other comprehensive income [Abstract] | ||||
Amounts reclassified from accumulated other comprehensive income, net of tax | 53 | 53 | 159 | 159 |
Cleco Power [Member] | Postretirement Benefit Net Loss [Member] | ||||
Accumulated other comprehensive loss [Roll Forward] | ||||
Balances | (11,148) | (8,279) | (11,349) | (9,026) |
Net current-period other comprehensive income [Abstract] | ||||
Amounts reclassified from accumulated other comprehensive income, net of tax | 218 | 92 | 419 | 839 |
Net current-period other comprehensive income | 218 | 92 | 419 | 839 |
Balances | (10,930) | (8,187) | (10,930) | (8,187) |
Cleco Power [Member] | Net Loss on Cash Flow Hedges [Member] | ||||
Accumulated other comprehensive loss [Roll Forward] | ||||
Balances | (5,833) | (6,045) | (5,939) | (6,151) |
Net current-period other comprehensive income [Abstract] | ||||
Net current-period other comprehensive income | 53 | 53 | 159 | 159 |
Balances | (5,780) | (5,992) | (5,780) | (5,992) |
Cleco Power [Member] | Net Loss on Cash Flow Hedges [Member] | Interest Expense [Member] | ||||
Net current-period other comprehensive income [Abstract] | ||||
Amounts reclassified from accumulated other comprehensive income, net of tax | $ 53 | $ 53 | $ 159 | $ 159 |
Coughlin Transfer (Details)
Coughlin Transfer (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2012MW | Sep. 30, 2015USD ($) | Dec. 31, 2014USD ($) | Mar. 15, 2014USD ($) | |
Related Party [Line Items] | ||||
Net book value | $ 3,104,097 | $ 3,066,000 | ||
Cleco Power [Member] | ||||
Related Party [Line Items] | ||||
Long-term Request for Proposal of Electric Power to meet long-term capacity (MW) | MW | 800 | |||
Net book value | $ 3,099,085 | $ 3,062,284 | ||
Transfer of Coughlin from affiliate [Member] | Evangeline [Member] | Cleco Power [Member] | ||||
Related Party [Line Items] | ||||
Net book value | $ 176,000 |
Agreement and Plan of Merger (D
Agreement and Plan of Merger (Details) - USD ($) $ / shares in Units, $ in Millions | Mar. 31, 2016 | Sep. 30, 2015 | Feb. 26, 2015 | Dec. 31, 2014 | Oct. 17, 2014 |
Business Acquisition [Line Items] | |||||
Common stock, par value (in dollars per share) | $ 1 | $ 1 | |||
Merger Agreement, Acquirer Required Termination Fee | $ 180 | ||||
Cleco Corporation [Member] | |||||
Business Acquisition [Line Items] | |||||
Common stock, par value (in dollars per share) | $ 1 | ||||
Share price at the time of the Merger (in dollars per share) | $ 55.37 | ||||
Percentage of shareholder approval of the Merger Agreement (in hundredths) | 77.00% | ||||
Merger Agreement, Acquiree Required Termination Fee | $ 120 | ||||
Subsequent Event [Member] | Cleco Corporation [Member] | |||||
Business Acquisition [Line Items] | |||||
Additional contingency fees payable upon the completion of the Merger | $ 12 |