Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2016 | Apr. 13, 2016 | |
Entity Information [Line Items] | ||
Entity Registrant Name | CLECO CORPORATE HOLDINGS LLC | |
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 | Mar. 31, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 0 | |
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 | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Operating revenue [Abstract] | ||
Electric operations | $ 250,157 | $ 277,514 |
Other operations | 17,132 | 17,732 |
Affiliate revenue | 0 | 0 |
Gross operating revenue | 267,289 | 295,246 |
Electric customer credits | (321) | 211 |
Operating revenue, net | 266,968 | 295,457 |
Operating expenses [Abstract] | ||
Fuel used for electric generation | 87,443 | 88,125 |
Power purchased for utility customers | 23,105 | 44,081 |
Other operations | 29,325 | 28,557 |
Maintenance | 24,631 | 19,082 |
Depreciation and amortization | 38,938 | 37,278 |
Taxes other than income taxes | 12,907 | 13,472 |
Merger transaction costs | 1,522 | 2,140 |
Gain on sale of asset | (1,095) | 0 |
Total operating expenses | 216,776 | 232,735 |
Operating income | 50,192 | 62,722 |
Interest income | 224 | 297 |
Allowance for equity funds used during construction | 652 | 1,076 |
Other income | 506 | 866 |
Other expense | (516) | (589) |
Interest charges [Abstract] | ||
Interest charges, including amortization of debt issuance costs, premiums, and discounts, net | 19,738 | 20,443 |
Allowance for borrowed funds used during construction | (185) | (321) |
Total interest charges | 19,553 | 20,122 |
Income before income taxes | 31,505 | 44,250 |
Federal and state income tax expense | 12,137 | 17,328 |
Net income | 19,368 | 26,922 |
Net income applicable to common stock | $ 19,368 | $ 26,922 |
Basic average number of common shares outstanding (in shares) | 60,528,489 | 60,463,693 |
Diluted average number of common shares outstanding (in shares) | 60,631,510 | 60,700,085 |
Basic earnings per average common share outstanding (in dollars per share) | $ 0.32 | $ 0.45 |
Diluted earnings per average common share outstanding (in dollars per share) | 0.32 | 0.44 |
Dividends declared per share of common stock (in dollars per share) | $ 0.40 | $ 0.40 |
Cleco Power [Member] | ||
Operating revenue [Abstract] | ||
Electric operations | $ 250,157 | $ 277,514 |
Other operations | 16,614 | 17,213 |
Affiliate revenue | 232 | 333 |
Gross operating revenue | 267,003 | 295,060 |
Electric customer credits | (321) | 211 |
Operating revenue, net | 266,682 | 295,271 |
Operating expenses [Abstract] | ||
Fuel used for electric generation | 87,443 | 88,125 |
Power purchased for utility customers | 23,105 | 44,081 |
Other operations | 29,399 | 28,482 |
Maintenance | 24,538 | 18,944 |
Depreciation and amortization | 38,603 | 36,983 |
Taxes other than income taxes | 12,424 | 12,986 |
Gain on sale of asset | (1,095) | 0 |
Total operating expenses | 214,417 | 229,601 |
Operating income | 52,265 | 65,670 |
Interest income | 179 | 256 |
Allowance for equity funds used during construction | 652 | 1,076 |
Other income | 148 | 452 |
Other expense | (517) | (588) |
Interest charges [Abstract] | ||
Interest charges, including amortization of debt issuance costs, premiums, and discounts, net | 19,470 | 20,223 |
Allowance for borrowed funds used during construction | (185) | (321) |
Total interest charges | 19,285 | 19,902 |
Income before income taxes | 33,442 | 46,964 |
Federal and state income tax expense | 12,563 | 18,359 |
Net income | $ 20,879 | $ 28,605 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Net income | $ 19,368 | $ 26,922 |
Other comprehensive income, net of tax [Abstract] | ||
Postretirement benefits gain (loss) (net of tax) | 528 | 609 |
Net gain on cash flow hedges (net of tax) | 53 | 53 |
Total other comprehensive income (loss), net of tax | 581 | 662 |
Comprehensive income, net of tax | 19,949 | 27,584 |
Cleco Power [Member] | ||
Net income | 20,879 | 28,605 |
Other comprehensive income, net of tax [Abstract] | ||
Postretirement benefits gain (loss) (net of tax) | 200 | (87) |
Net gain on cash flow hedges (net of tax) | 53 | 53 |
Total other comprehensive income (loss), net of tax | 253 | (34) |
Comprehensive income, net of tax | $ 21,132 | $ 28,571 |
Consolidated Statements of Com4
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Net tax expense (benefit) of gain (loss) on postretirement benefits | $ 330 | $ 381 |
Net tax expense on cash flow hedges | 33 | 33 |
Cleco Power [Member] | ||
Net tax expense (benefit) of gain (loss) on postretirement benefits | 125 | (54) |
Net tax expense on cash flow hedges | $ 33 | $ 33 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Current assets [Abstract] | ||
Cash and cash equivalents | $ 112,446 | $ 68,246 |
Restricted cash and cash equivalents | 4,879 | 9,263 |
Customer accounts receivable (less allowance for doubtful accounts) | 37,671 | 43,255 |
Other accounts receivable | 27,812 | 27,677 |
Unbilled revenue | 32,787 | 33,995 |
Fuel inventory, at average cost | 51,670 | 72,838 |
Material and supplies, at average cost | 80,174 | 76,731 |
Energy risk management assets | 2,252 | 7,673 |
Accumulated deferred fuel | 13,654 | 12,910 |
Cash surrender value of company-/trust-owned life insurance policies | 74,308 | 73,823 |
Prepayments | 5,692 | 7,883 |
Regulatory assets | 16,641 | 14,117 |
Other current assets | 2,641 | 448 |
Total current assets | 462,627 | 448,859 |
Property, plant, and equipment [Abstract] | ||
Property, plant, and equipment | 4,691,445 | 4,661,212 |
Accumulated depreciation | (1,562,348) | (1,536,158) |
Net property, plant, and equipment | 3,129,097 | 3,125,054 |
Construction work in progress | 70,772 | 66,509 |
Total property, plant, and equipment, net | 3,199,869 | 3,191,563 |
Equity investment in investee | 19,272 | 16,822 |
Prepayments | 4,656 | 4,542 |
Restricted cash and cash equivalents | 16,490 | 16,195 |
Regulatory assets - deferred taxes, net | 237,030 | 236,941 |
Regulatory assets | 280,177 | 284,689 |
Net investment in direct financing lease | 13,453 | 13,464 |
Intangible asset | 71,103 | 74,963 |
Tax credit fund investment, net | 13,594 | 13,741 |
Other deferred charges | 14,898 | 21,575 |
Total assets | 4,333,169 | 4,323,354 |
Current liabilities [Abstract] | ||
Long-term debt due within one year | 19,967 | 19,421 |
Accounts payable | 73,032 | 93,822 |
Customer deposits | 55,810 | 55,233 |
Provision for rate refund | 3,017 | 2,696 |
Taxes payable | 16,807 | 2,573 |
Interest accrued | 23,894 | 7,814 |
Energy risk management liabilities | 386 | 275 |
Regulatory liabilities - other | 156 | 312 |
Deferred compensation | 9,227 | 10,156 |
Other current liabilities | 17,106 | 14,277 |
Total current liabilities | 219,402 | 206,579 |
Long-term liabilities and deferred credits [Abstract] | ||
Accumulated deferred federal and state income taxes, net | 934,964 | 925,103 |
Accumulated deferred investment tax credits | 3,121 | 3,245 |
Postretirement benefit obligations | 206,807 | 205,036 |
Restricted storm reserve | 16,475 | 16,177 |
Other deferred credits | 31,006 | 24,670 |
Total long-term liabilities and deferred credits | 1,192,373 | 1,174,231 |
Long-term debt, net | 1,251,284 | 1,267,703 |
Total liabilities | $ 2,663,059 | $ 2,648,513 |
Commitments and Contingencies (Note 11) | ||
Shareholders’ equity [Abstract] | ||
Common stock | $ 61,059 | $ 61,059 |
Premium on common stock | 415,409 | 418,518 |
Retained earnings | 1,240,192 | 1,245,014 |
Treasury stock, at cost | (20,546) | (23,165) |
Accumulated other comprehensive loss | (26,004) | (26,585) |
Total common shareholders’ equity | 1,670,110 | 1,674,841 |
Total liabilities and shareholders’ equity | 4,333,169 | 4,323,354 |
Cleco Power [Member] | ||
Current assets [Abstract] | ||
Cash and cash equivalents | 110,548 | 65,705 |
Restricted cash and cash equivalents | 4,879 | 9,263 |
Customer accounts receivable (less allowance for doubtful accounts) | 37,671 | 43,255 |
Accounts receivable - affiliate | 782 | 1,908 |
Other accounts receivable | 27,685 | 27,553 |
Unbilled revenue | 32,787 | 33,995 |
Fuel inventory, at average cost | 51,670 | 72,838 |
Material and supplies, at average cost | 80,174 | 76,731 |
Energy risk management assets | 2,252 | 7,673 |
Accumulated deferred fuel | 13,654 | 12,910 |
Cash surrender value of company-/trust-owned life insurance policies | 20,083 | 20,003 |
Prepayments | 4,634 | 6,309 |
Regulatory assets | 16,641 | 14,117 |
Other current assets | 2,231 | 337 |
Total current assets | 405,691 | 392,597 |
Property, plant, and equipment [Abstract] | ||
Property, plant, and equipment | 4,675,788 | 4,645,698 |
Accumulated depreciation | (1,551,152) | (1,525,298) |
Net property, plant, and equipment | 3,124,636 | 3,120,400 |
Construction work in progress | 70,423 | 66,069 |
Total property, plant, and equipment, net | 3,195,059 | 3,186,469 |
Equity investment in investee | 19,272 | 16,822 |
Prepayments | 4,656 | 4,542 |
Restricted cash and cash equivalents | 16,469 | 16,174 |
Regulatory assets - deferred taxes, net | 237,030 | 236,941 |
Regulatory assets | 280,177 | 284,689 |
Intangible asset | 71,103 | 74,963 |
Other deferred charges | 13,463 | 20,140 |
Total assets | 4,242,920 | 4,233,337 |
Current liabilities [Abstract] | ||
Long-term debt due within one year | 19,967 | 19,421 |
Accounts payable | 68,277 | 88,235 |
Accounts payable - affiliate | 7,613 | 6,598 |
Customer deposits | 55,810 | 55,233 |
Provision for rate refund | 3,017 | 2,696 |
Taxes payable | 27,905 | 17,045 |
Interest accrued | 23,891 | 7,813 |
Energy risk management liabilities | 386 | 275 |
Regulatory liabilities - other | 156 | 312 |
Other current liabilities | 13,141 | 10,078 |
Total current liabilities | 220,163 | 207,706 |
Long-term liabilities and deferred credits [Abstract] | ||
Accumulated deferred federal and state income taxes, net | 1,046,270 | 1,043,531 |
Accumulated deferred investment tax credits | 3,121 | 3,245 |
Postretirement benefit obligations | 153,461 | 152,152 |
Restricted storm reserve | 16,475 | 16,177 |
Other deferred credits | 30,284 | 24,083 |
Total long-term liabilities and deferred credits | 1,249,611 | 1,239,188 |
Long-term debt, net | 1,224,610 | 1,234,039 |
Total capitalization | $ 2,773,146 | $ 2,786,443 |
Commitments and Contingencies (Note 11) | ||
Shareholders’ equity [Abstract] | ||
Total common shareholders’ equity | $ 1,548,536 | $ 1,552,404 |
Total liabilities and shareholders’ equity | $ 4,242,920 | $ 4,233,337 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Customer accounts receivable, allowance for doubtful accounts | $ 3,202 | $ 2,674 |
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 | 61,058,918 |
Common stock, outstanding (in shares) | 60,547,639 | 60,482,468 |
Treasury stock, at cost (in shares) | 511,279 | 576,450 |
Cleco Power [Member] | ||
Customer accounts receivable, allowance for doubtful accounts | $ 3,202 | $ 2,674 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Operating activities [Abstract] | ||
Net income | $ 19,368 | $ 26,922 |
Adjustments to reconcile net income to net cash provided by operating activities [Abstract] | ||
Depreciation and amortization | 40,285 | 38,744 |
Gain on sale of asset | (1,095) | 0 |
Unearned compensation expense | 1,003 | 1,843 |
Allowance for equity funds used during construction | (652) | (1,076) |
Net deferred income taxes | 8,770 | 15,058 |
Deferred fuel costs | 719 | 10,218 |
Cash surrender value of company-/trust-owned life insurance | (484) | (765) |
Changes in assets and liabilities [Abstract] | ||
Accounts receivable | 3,129 | (5,688) |
Unbilled revenue | 1,207 | 6,434 |
Fuel inventory and materials and supplies | 17,725 | 5,474 |
Prepayments | 2,076 | 3,209 |
Accounts payable | (21,379) | (36,063) |
Customer deposits | 2,877 | 3,199 |
Postretirement benefit obligations | 2,630 | 3,076 |
Regulatory assets and liabilities, net | 4,582 | 3,839 |
Other deferred accounts | 5,529 | 2,552 |
Taxes accrued | 12,651 | 8,383 |
Interest accrued | 16,037 | 14,367 |
Other operating | 1,254 | (400) |
Net cash provided by operating activities | 116,232 | 99,326 |
Investing activities [Abstract] | ||
Additions to property, plant, and equipment | (35,476) | (36,297) |
Allowance for equity funds used during construction | 652 | 1,076 |
Proceeds from sale of property | 1,909 | 212 |
Premiums paid on trust-owned life insurance | 0 | (1,229) |
Contributions to equity investment in investee | (2,450) | 0 |
Return of equity investment in tax credit fund | 0 | 693 |
Contributions to tax credit fund | 0 | (461) |
Transfer of cash from restricted accounts, net | 4,088 | 5,377 |
Other investing | 43 | 72 |
Net cash used in investing activities | (31,234) | (30,557) |
Financing activities [Abstract] | ||
Draws on credit facilities | 3,000 | 33,000 |
Payments on credit facilities | (10,000) | (48,000) |
Repayment of long-term debt | (8,546) | (8,053) |
Dividends paid on common stock | (24,579) | (24,663) |
Other financing | (673) | (640) |
Net cash used in financing activities | (40,798) | (48,356) |
Net increase in cash and cash equivalents | 44,200 | 20,413 |
Cash and cash equivalents at beginning of period | 68,246 | 44,423 |
Cash and cash equivalents at end of period | 112,446 | 64,836 |
Supplementary cash flow information [Abstract] | ||
Interest paid, net of amount capitalized | 2,460 | 4,743 |
Income taxes (refunded) paid, net | (481) | 558 |
Supplementary non-cash investing and financing activities [Abstract] | ||
Accrued additions to property, plant, and equipment | 11,874 | 10,179 |
Additions to property, plant, and equipment - ARO | 961 | 0 |
Cleco Power [Member] | ||
Operating activities [Abstract] | ||
Net income | 20,879 | 28,605 |
Adjustments to reconcile net income to net cash provided by operating activities [Abstract] | ||
Depreciation and amortization | 39,774 | 38,242 |
Gain on sale of asset | (1,095) | 0 |
Allowance for equity funds used during construction | (652) | (1,076) |
Net deferred income taxes | 1,854 | (1,459) |
Deferred fuel costs | 719 | 10,218 |
Changes in assets and liabilities [Abstract] | ||
Accounts receivable | 3,130 | (5,835) |
Accounts and notes receivable, affiliate | 1,716 | 445 |
Unbilled revenue | 1,207 | 6,434 |
Fuel inventory and materials and supplies | 17,725 | 5,474 |
Prepayments | 1,560 | 1,378 |
Accounts payable | (20,581) | (29,868) |
Accounts and notes payable, affiliate | 731 | (790) |
Customer deposits | 2,877 | 3,199 |
Postretirement benefit obligations | 1,189 | 1,922 |
Regulatory assets and liabilities, net | 4,582 | 3,839 |
Other deferred accounts | 5,529 | 2,552 |
Taxes accrued | 10,859 | 28,513 |
Interest accrued | 16,078 | 14,512 |
Other operating | 2,176 | 713 |
Net cash provided by operating activities | 110,257 | 107,018 |
Investing activities [Abstract] | ||
Additions to property, plant, and equipment | (35,453) | (36,232) |
Allowance for equity funds used during construction | 652 | 1,076 |
Proceeds from sale of property | 1,909 | 212 |
Contributions to equity investment in investee | (2,450) | 0 |
Transfer of cash from restricted accounts, net | 4,088 | 5,377 |
Other investing | 43 | 72 |
Net cash used in investing activities | (31,211) | (29,495) |
Financing activities [Abstract] | ||
Draws on credit facilities | 0 | 20,000 |
Payments on credit facilities | 0 | (40,000) |
Repayment of long-term debt | (8,546) | (8,053) |
Distributions to parent | (25,000) | (25,000) |
Other financing | (657) | (640) |
Net cash used in financing activities | (34,203) | (53,693) |
Net increase in cash and cash equivalents | 44,843 | 23,830 |
Cash and cash equivalents at beginning of period | 65,705 | 39,162 |
Cash and cash equivalents at end of period | 110,548 | 62,992 |
Supplementary cash flow information [Abstract] | ||
Interest paid, net of amount capitalized | 2,334 | 4,557 |
Income taxes (refunded) paid, net | (485) | 565 |
Supplementary non-cash investing and financing activities [Abstract] | ||
Accrued additions to property, plant, and equipment | 11,849 | 9,640 |
Additions to property, plant, and equipment - ARO | $ 961 | $ 0 |
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, 2014 | $ (32,665) | |||||
Increase (Decrease) in Shareholders' Equity [Roll Forward] | ||||||
Net income | $ 26,922 | |||||
Other comprehensive income, net of tax | 662 | 662 | ||||
Balances at Mar. 31, 2015 | (32,003) | |||||
Balances at Dec. 31, 2015 | 1,674,841 | $ 61,059 | $ (23,165) | $ 418,518 | $ 1,245,014 | (26,585) |
Increase (Decrease) in Shareholders' Equity [Roll Forward] | ||||||
Common stock issued for compensatory plans | (490) | 0 | 2,619 | (3,109) | ||
Dividends on common stock | (24,190) | (24,190) | ||||
Net income | 19,368 | 19,368 | ||||
Other comprehensive income, net of tax | 581 | 581 | ||||
Balances at Mar. 31, 2016 | $ 1,670,110 | $ 61,059 | $ (20,546) | $ 415,409 | $ 1,240,192 | $ (26,004) |
Common stock, balance (in shares) at Dec. 31, 2015 | 61,058,918 | 61,058,918 | ||||
Treasury stock, balance (in shares) at Dec. 31, 2015 | (576,450) | (576,450) | ||||
Increase (Decrease) in Shareholders' Equity [Roll Forward] | ||||||
Common stock issued for compensatory plans (in shares) | 0 | 65,171 | ||||
Common stock, balance (in shares) at Mar. 31, 2016 | 61,058,918 | 61,058,918 | ||||
Treasury stock, balance (in shares) at Mar. 31, 2016 | (511,279) | (511,279) |
Consolidated Statement of Chan9
Consolidated Statement of Changes in Common Shareholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends on common stock per share (in dollars per share) | $ 0.40 | $ 0.40 |
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, 2014 | $ (32,665) | $ (17,288) | |||
Increase (Decrease) in Member's Equity [Roll Forward] | |||||
Other comprehensive income, net of tax | $ 662 | 662 | $ (34) | (34) | |
Net income | 26,922 | 28,605 | |||
Balances at Mar. 31, 2015 | (32,003) | (17,322) | |||
Balances at Dec. 31, 2015 | 1,674,841 | (26,585) | 1,552,404 | $ 1,569,496 | (17,092) |
Increase (Decrease) in Member's Equity [Roll Forward] | |||||
Other comprehensive income, net of tax | 581 | 581 | 253 | 253 | |
Distributions to parent | (25,000) | (25,000) | |||
Net income | 19,368 | 20,879 | 20,879 | ||
Balances at Mar. 31, 2016 | $ 1,670,110 | $ (26,004) | $ 1,548,536 | $ 1,565,375 | $ (16,839) |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2016 | |
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 Holdings 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, 2015. 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.” 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 MAR. 31, 2016 AT DEC. 31, 2015 Regulated utility plants $ 4,675,788 $ 4,645,698 Other 15,657 15,514 Total property, plant, and equipment 4,691,445 4,661,212 Accumulated depreciation (1,562,348 ) (1,536,158 ) Net property, plant, and equipment $ 3,129,097 $ 3,125,054 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 MAR. 31, 2016 AT DEC. 31, 2015 Current: Cleco Katrina/Rita’s storm recovery bonds $ 3,580 $ 9,263 Cleco Power’s sale of property 1,299 — Total current 4,879 9,263 Non-current: Diversified Lands’ mitigation escrow 21 21 Cleco Power’s future storm restoration costs 16,469 16,174 Total non-current 16,490 16,195 Total restricted cash and cash equivalents $ 21,369 $ 25,458 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 three months ended March 31, 2016 , Cleco Katrina/Rita collected $5.2 million net of administration fees. In March 2016, Cleco Katrina/Rita used $8.5 million for a scheduled storm recovery bond principal payment and $2.3 million for a related interest payment. On March 14, 2016, Cleco Power sold property for $1.3 million . Cleco Power intends to use the proceeds from the sale to purchase like-kind property and has identified potential replacement properties. 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 on the date of acquisition or debt issuance. Cleco and Cleco Power disclose the fair value of certain assets and liabilities by one of three levels when required for recognition purposes. 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 evaluates derivatives and hedging activities to determine whether the market risk-sensitive instruments and positions are required to be marked-to-market. 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 would be 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 would be included in the FAC and reflected on customers’ bills as a component of the fuel cost adjustment. 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. There were no open natural gas positions at March 31, 2016 , or December 31, 2015 . 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 March 31, 2016 , Cleco and Cleco Power’s Condensed Consolidated Balance Sheets reflected the fair value of open FTR positions of $2.3 million in Energy risk management assets and $0.4 million in Energy risk management liabilities, compared to $7.7 million in Energy risk management assets and $0.3 million in Energy risk management liabilities at December 31, 2015. For more information on FTRs, see Note 4 — “Fair Value Accounting — Commodity Contracts.” Cleco and Cleco Power maintain a master netting agreement policy and monitor credit risk exposure through review of counterparty credit quality, aggregate counterparty credit exposure, and aggregate counterparty concentration levels. Cleco manages these risks by establishing appropriate credit and concentration limits on transactions with counterparties and requiring contractual guarantees, cash deposits, or letters of credit from counterparties or their affiliates, as deemed necessary. Cleco Power has agreements in place with various 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. For the three months ended March 31, 2016 , and the year ended December 31, 2015 , Cleco did not enter into any contracts to mitigate the volatility in interest rate risk. 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 MAR. 31, 2016 2015 (THOUSANDS, EXCEPT SHARES AND PER SHARE AMOUNTS) INCOME SHARES PER SHARE AMOUNT INCOME SHARES PER SHARE AMOUNT Basic net income applicable to common stock $ 19,368 60,528,489 $ 0.32 $ 26,922 60,463,693 $ 0.45 Effect of dilutive securities Add: restricted stock (LTIP) 103,021 236,392 Diluted net income applicable to common stock $ 19,368 60,631,510 $ 0.32 $ 26,922 60,700,085 $ 0.44 Stock-Based Compensation At March 31, 2016 , Cleco had two stock-based compensation plans: the ESPP and the LTIP. As a result of the completion of the Merger, on April 13, 2016, the ESPP and the LTIP were terminated. Prior to the completion of the Merger, pursuant to the LTIP, certain officers, key employees, and directors of Cleco were eligible to be granted stock options, restricted stock, also known as non-vested stock, common stock equivalents, and stock appreciation rights. During the three months ended March 31, 2016 , Cleco granted no shares of non-vested stock pursuant to the LTIP. As a result of the Merger on April 13, 2016, all unvested shares outstanding under the LTIP that were granted prior to January 1, 2015, were vested at target and paid out in cash to plan participants and unvested shares that were granted during 2015 were prorated to the target amount and paid out in cash to plan participants in accordance with the terms of the Merger Agreement. In April 2016, Cleco incurred $2.3 million of merger expense due to the accelerated vesting of the LTIP shares. For more information about the Merger, see Note 14 — “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 MAR. 31, 2016 2015 2016 2015 (THOUSANDS) CLECO CLECO POWER Equity classification Non-vested stock $ 969 $ 1,785 $ 352 $ 444 Tax benefit $ 373 $ 687 $ 135 $ 171 Common Stock Repurchase Program Prior to the completion of the Merger, Cleco Holdings had a common stock repurchase program that authorized management to repurchase shares of common stock. During the three months ended March 31, 2016 and 2015 , no shares of common stock were repurchased. Upon completion of the Merger on April 13, 2016, the common stock repurchase program was terminated. For more information about the Merger, see Note 14 — “Agreement and Plan of Merger.” |
Recent Authoritative Guidance
Recent Authoritative Guidance | 3 Months Ended |
Mar. 31, 2016 | |
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, FASB amended the revenue recognition 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 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, 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 evaluating the impact that the adoption of this guidance will have on the results of operations, financial condition, or cash flows of the Registrants. In January 2016, FASB amended the guidance for recognition and measurement of financial assets and liabilities. These amendments address certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The adoption of this guidance is effective for fiscal years beginning after December 15, 2017, including interim periods within those years. Early adoption of certain provisions of this guidance is permitted as of the beginning of the fiscal year of adoption. Entities should apply these amendments by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. The amendments related to equity securities without readily determinable fair value should be applied prospectively to equity investments that exist as of the date of adoption. Management does not expect this guidance to have a significant impact on the results of operations, financial condition, or cash flows of the Registrants. In February 2016, FASB amended the guidance to account for leases. This guidance is intended to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The adoption of this guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those years. Early adoption is permitted. In transition, lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The modified retrospective approach includes practical expedients that may be elected by entities. Management is evaluating the impact that the adoption of this guidance will have on the results of operations, financial condition, or cash flows of the Registrants. In February 2016, FASB amended the derivatives and hedging accounting guidance to address the effect of derivative contract novations on existing hedge accounting relationships. The amended guidance clarifies that a change in the counterparty to a derivative instrument that has been designated as the hedging instrument does not, in and of itself, require dedesignation of the hedging relationship provided that all other hedge accounting criteria continue to be met. The adoption of this guidance is effective for fiscal years beginning after December 15, 2016, including interim periods within those years. Entities have the option to apply these amendments on either a prospective basis or a modified retrospective basis. This guidance will not have an impact on the results of operations, financial condition, or cash flows of the Registrants. In March 2016, FASB amended the derivatives and hedging accounting guidance related to contingent put and call options in debt instruments. This guidance clarifies the requirements for assessing whether contingent put and call options that can accelerate the payment of principal on debt instruments are clearly and closely related to their debt hosts. Entities performing the assessment will be required to assess the embedded put and call options solely in accordance with the four-step decision sequence clarified in the amended guidance. The adoption of this guidance is effective for fiscal years beginning after December 15, 2016, including interim periods within those years. Entities should apply these amendments on a modified retrospective basis to existing debt instruments as of the beginning of the fiscal year for which the amendments are effective. Management is evaluating the impact that the adoption of this guidance will have on the results of operations, financial condition, or cash flows of the Registrants. In March 2016, FASB amended the accounting guidance to simplify the transition to the equity method of accounting. This guidance impacts entities that have an investment that becomes qualified for the equity method of accounting as a result of an increase in the level of ownership interest or degree of influence. This amended guidance eliminates the requirement to retroactively adopt the equity method of accounting. The adoption of this guidance is effective for fiscal years beginning after December 15, 2016, including interim periods within those years. Early adoption is permitted. These amendments should be applied prospectively upon their effective date to increases in the level of ownership interest or degree of influence that results in the adoption of the equity method. Management does not expect this guidance to have any impact on the results of operations, financial condition, or cash flows of the Registrants. In March 2016, FASB amended the stock compensation guidance to provide for improvements to employee share-based payment accounting. The adoption of this guidance is effective for annual periods beginning after December 15, 2016, and interim periods within those periods. Early adoption is permitted. As a result of the Merger on April 13, 2016, Cleco Holdings no longer has common stock. As a result, this guidance will not have an impact on the results of operations, financial condition, or cash flows of the Registrants. |
Regulatory Assets and Liabiliti
Regulatory Assets and Liabilities | 3 Months Ended |
Mar. 31, 2016 | |
Regulatory Assets and Liabilities Disclosure [Abstract] | |
Regulatory Assets and Liabilities | Note 3 — Regulatory Assets and Liabilities Cleco Power capitalizes or defers certain costs for recovery from customers and recognizes 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 MAR. 31, 2016 AT DEC. 31, 2015 Regulatory assets – deferred taxes, net $ 237,030 $ 236,941 Mining costs 8,284 8,921 Interest costs 5,131 5,221 AROs 1,639 2,462 Postretirement costs 147,823 150,274 Tree trimming costs 5,639 6,318 Training costs 6,824 6,863 Surcredits, net 8,754 9,661 Amended lignite mining agreement contingency 3,781 3,781 AMI deferred revenue requirement 5,181 5,318 Production operations and maintenance expenses 11,088 12,436 AFUDC equity gross-up 71,061 71,444 Acadia Unit 1 acquisition costs 2,521 2,548 Financing costs 8,940 9,032 Biomass costs 42 50 MISO integration costs 2,106 2,340 Coughlin transaction costs 1,022 1,030 Corporate franchise tax 90 373 Acadia FRP true-up 189 377 MATS costs 6,405 — Other 298 357 Total regulatory assets 296,818 298,806 PPA true-up (156 ) (312 ) Fuel and purchased power 13,654 12,910 Total regulatory assets, net $ 547,346 $ 548,345 MATS Costs On February 1, 2016, the LPSC approved Cleco Power’s request to recover the revenue requirements associated with the installation of MATS equipment. The MATS rule, finalized in February 2012, required affected EGUs to meet specific emission standards and work practice standards to address hazardous air pollutants by April 16, 2015. The LPSC approval also allowed Cleco Power to record a regulatory asset of $7.1 million representing the unrecovered revenue requirements of the MATS equipment placed into service in the years prior to the LPSC review and approval. This amount is being amortized over three years. |
Fair Value Accounting
Fair Value Accounting | 3 Months Ended |
Mar. 31, 2016 | |
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 March 31, 2016 , and December 31, 2015 , 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 MAR. 31, 2016 AT DEC. 31, 2015 (THOUSANDS) CARRYING VALUE ESTIMATED FAIR VALUE CARRYING VALUE ESTIMATED FAIR VALUE Cash equivalents $ 107,700 $ 107,700 $ 64,200 $ 64,200 Restricted cash equivalents $ 21,200 $ 21,200 $ 25,384 $ 25,384 Long-term debt $ 1,283,984 $ 1,466,817 $ 1,299,529 $ 1,463,989 Cleco Power AT MAR. 31, 2016 AT DEC. 31, 2015 (THOUSANDS) CARRYING VALUE ESTIMATED FAIR VALUE CARRYING VALUE ESTIMATED FAIR VALUE Cash equivalents $ 106,700 $ 106,700 $ 62,000 $ 62,000 Restricted cash equivalents $ 21,179 $ 21,179 $ 25,363 $ 25,363 Long-term debt $ 1,256,984 $ 1,439,817 $ 1,265,529 $ 1,429,989 Fair Value Measurements and Disclosures Cleco classifies 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: Cleco CLECO CONSOLIDATED FAIR VALUE MEASUREMENTS AT REPORTING DATE USING: (THOUSANDS) AT MAR. 31, 2016 QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) AT DEC. 31, 2015 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 $ 128,900 $ — $ 128,900 $ — $ 89,584 $ — $ 89,584 $ — FTRs 2,252 — — 2,252 7,673 — — 7,673 Total assets $ 131,152 $ — $ 128,900 $ 2,252 $ 97,257 $ — $ 89,584 $ 7,673 Liability description Long-term debt $ 1,466,817 $ — $ 1,466,817 $ — $ 1,463,989 $ — $ 1,463,989 $ — FTRs 386 — — 386 275 — — 275 Total liabilities $ 1,467,203 $ — $ 1,466,817 $ 386 $ 1,464,264 $ — $ 1,463,989 $ 275 Cleco Power CLECO POWER FAIR VALUE MEASUREMENTS AT REPORTING DATE USING: (THOUSANDS) AT MAR. 31, 2016 QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) AT DEC. 31, 2015 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 $ 127,879 $ — $ 127,879 $ — $ 87,363 $ — $ 87,363 $ — FTRs 2,252 — — 2,252 7,673 — — 7,673 Total assets $ 130,131 $ — $ 127,879 $ 2,252 $ 95,036 $ — $ 87,363 $ 7,673 Liability description Long-term debt $ 1,439,817 $ — $ 1,439,817 $ — $ 1,429,989 $ — $ 1,429,989 $ — FTRs 386 — — 386 275 — — 275 Total liabilities $ 1,440,203 $ — $ 1,439,817 $ 386 $ 1,430,264 $ — $ 1,429,989 $ 275 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 MAR. 31, (THOUSANDS) 2016 2015 Beginning balance $ 7,398 $ 9,949 Unrealized losses* (832 ) (1,710 ) Purchases 46 63 Settlements (4,746 ) (6,489 ) Ending balance $ 1,866 $ 1,813 * 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 as of March 31, 2016 , and December 31, 2015 : FAIR VALUE VALUATION TECHNIQUE SIGNIFICANT UNOBSERVABLE INPUTS FORWARD PRICE RANGE (THOUSANDS, EXCEPT FORWARD PRICE RANGE) ASSETS LIABILITIES LOW HIGH FTRs at Mar. 31, 2016 $ 2,252 $ 386 RTO auction pricing FTR price - per MWh $ (2.78 ) $ 3.36 FTRs at Dec. 31, 2015 $ 7,673 $ 275 RTO auction pricing FTR price - per MWh $ (3.63 ) $ 4.51 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 March 31, 2016 , 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 $107.7 million , $4.9 million , and $16.3 million , respectively, at March 31, 2016 . 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 $106.7 million , $4.9 million , and $16.3 million , respectively, at March 31, 2016 . 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. 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 three months ended March 31, 2016 , and the year ended December 31, 2015 , Cleco did no t experience any transfers between levels within the fair value hierarchy. 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 March 31, 2016 , and December 31, 2015 : DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS (THOUSANDS) BALANCE SHEET LINE ITEM AT MAR. 31, 2016 AT DEC. 31, 2015 Commodity-related contracts FTRs: Current Energy risk management assets $ 2,252 $ 7,673 Current Energy risk management liabilities 386 275 Commodity-related contracts, net $ 1,866 $ 7,398 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 months ended March 31, 2016 , and 2015 : FOR THE THREE MONTHS ENDED MAR. 31, 2016 2015 (THOUSANDS) DERIVATIVES LINE ITEM AMOUNT OF GAIN/(LOSS) RECOGNIZED IN INCOME ON DERIVATIVES Commodity contracts FTRs (1) Electric operations $ 8,520 $ 15,508 FTRs (1) Power purchased for utility customers (5,723 ) (8,037 ) Total $ 2,797 $ 7,471 (1) At March 31, 2016, and 2015, unrealized losses associated with FTRs of $0.8 million and $1.7 million , respectively, were reported in Accumulated deferred fuel on the balance sheet. At March 31, 2016 , and December 31, 2015 , 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 March 31, 2016 , and December 31, 2015 , was 3.3 million MWh and 8.4 million MWh, respectively. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
Debt | Note 5 — Debt Short-term Debt At March 31, 2016 , and December 31, 2015 , Cleco and Cleco Power had no short-term debt outstanding. Long-term Debt At March 31, 2016 , Cleco’s long-term debt outstanding was $1.27 billion , of which $20.0 million was due within one year. The long-term debt due within one year at March 31, 2016 , represents $17.3 million of principal payments for the Cleco Katrina/Rita storm recovery bonds and $2.7 million of capital lease payments. For Cleco, long-term debt decreased $15.9 million from December 31, 2015 , primarily due to an $8.5 million scheduled Cleco Katrina/Rita storm recovery bond principal payment made in March 2016, a $7.0 million net decrease in credit facility borrowings outstanding, and a $0.7 million decrease in capital lease obligations. These decreases were partially offset by debt issuance cost and debt discount amortizations of $0.3 million . In connection with the Merger on April 13, 2016, Cleco Holdings issued $1.35 billion of variable rate debt. The variable rate debt has a three-year term. Cleco Holdings intends to refinance the variable rate debt with long-term financing, markets permitting, within 12 months of the Merger closing. At March 31, 2016 , Cleco Power’s long-term debt outstanding was $1.24 billion , of which $20.0 million was due within one year. The long-term debt due within one year at March 31, 2016 , represents $17.3 million of principal payments for the Cleco Katrina/Rita storm recovery bonds and $2.7 million of capital lease payments. For Cleco Power, long-term debt decreased $8.9 million from December 31, 2015 , primarily due to an $8.5 million scheduled Cleco Katrina/Rita storm recovery bond principal payment made in March 2016 and a $0.7 million decrease in capital lease obligations. These decreases were partially offset by debt issuance cost and debt discount amortizations of $0.3 million . Credit Facilities At March 31, 2016 , Cleco Holdings had $27.0 million of borrowings outstanding under its $250.0 million credit facility at an all-in interest rate of 1.475% , leaving an available borrowing capacity of $223.0 million . The borrowings under the credit facility were considered to be long-term because the credit facility was set to expire in 2018. On April 13, 2016, in connection with the completion of the Merger, the $27.0 million draw was repaid and the credit facility was replaced with a new $100.0 million credit facility. The new credit facility has similar terms as the previous facility and expires in 2021. The borrowing costs under Cleco Holdings’ new credit facility are equal to LIBOR plus 1.75% or ABR plus 0.75% , plus facility fees of 0.275% . On May 4, 2016, Cleco Holdings had no borrowings outstanding under its new $100.0 million credit facility. At March 31, 2016 , Cleco Power had no borrowings outstanding under its $300.0 million credit facility; however, Cleco Power had a $2.0 million letter of credit issued to MISO, leaving an available borrowing capacity of $298.0 million . On April 13, 2016, in connection with the completion of the Merger, Cleco Power’s credit facility was replaced with a new $300.0 million credit facility. The new credit facility has similar terms as the previous facility and expires in 2021. The borrowing costs under Cleco Power’s new credit facility are equal to LIBOR plus 1.125% or ABR plus 0.125% , plus facility fees of 0.125% . Upon completion of the Merger on April 13, 2016, the $2.0 million letter of credit issued to MISO is covered under a standing letter of credit and does not reduce the borrowing capacity of Cleco Power’s new credit facility. On May 4, 2016, Cleco Power had no borrowings outstanding under its new $300.0 million credit facility. |
Pension Plan and Employee Benef
Pension Plan and Employee Benefits | 3 Months Ended |
Mar. 31, 2016 | |
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 2015 and does not expect to make any in 2016. 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 months ended March 31, 2016 , and 2015 are as follows: FOR THE THREE MONTHS ENDED MAR. 31, 2016 2015 2016 2015 (THOUSANDS) PENSION BENEFITS OTHER BENEFITS Components of periodic benefit costs: Service cost $ 2,262 $ 2,526 $ 380 $ 395 Interest cost 5,507 5,127 420 401 Expected return on plan assets (6,010 ) (5,834 ) — — Amortizations: Prior period service (credit) cost (18 ) (18 ) 30 30 Net loss 2,469 3,346 160 210 Net periodic benefit cost $ 4,210 $ 5,147 $ 990 $ 1,036 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 both the three months ended March 31, 2016 , and 2015 was $0.4 million . Cleco Holdings 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 months ended March 31, 2016 , and 2015 was $0.8 million and $0.9 million , respectively. The current and non-current portions of the other benefits liability for Cleco and Cleco Power at March 31, 2016 , and December 31, 2015 , are as follows: (THOUSANDS) AT MAR. 31, 2016 AT DEC. 31, 2015 Cleco Current $ 3,613 $ 3,613 Non-current $ 38,887 $ 39,457 Cleco Power Current $ 3,140 $ 3,140 Non-current $ 33,801 $ 34,300 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. In 2014, SERP was closed 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, four executives received enhanced benefits, and upon termination of employment, two of these executives received accelerated vesting. The components of net periodic benefit cost related to SERP for the three months ended March 31, 2016 , and 2015 are as follows: FOR THE THREE MONTHS ENDED MAR. 31, (THOUSANDS) 2016 2015 Components of periodic benefit costs: Service cost $ 583 $ 630 Interest cost 731 758 Amortizations: Prior period service cost 13 13 Net loss 655 726 Net periodic benefit cost $ 1,982 $ 2,127 The expense related to SERP reflected on Cleco Power’s Condensed Consolidated Statements of Income was $0.4 million for the three months ended March 31, 2016 , compared to $0.5 million for the same period in 2015 . 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 March 31, 2016 , and December 31, 2015 , are as follows: (THOUSANDS) AT MAR. 31, 2016 AT DEC. 31, 2015 Cleco Current $ 3,238 $ 3,238 Non-current $ 69,632 $ 69,049 Cleco Power Current $ 1,000 $ 1,000 Non-current $ 21,371 $ 21,321 401(k) Plan Cleco’s 401(k) Plan is intended to provide active, eligible employees with voluntary, long-term savings and investment opportunities. The 401(k) 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 401(k) Plan, employer contributions can be in the form of cash. Cash contributions are invested in proportion to the participant’s voluntary contribution investment choices. Prior to the close of the Merger on April 13, 2016, employer contributions could also be in the form of Cleco Corporation common stock. Plan participants were allowed to choose whether to have the dividends on Cleco Corporation common stock distributed in cash or reinvested in additional shares of Cleco Corporation common stock. Participation in the 401(k) Plan is voluntary, and active Cleco employees are eligible to participate. Cleco’s 401(k) Plan expense for the three months ended March 31, 2016 , and 2015 is as follows: FOR THE THREE MONTHS ENDED MAR. 31, (THOUSANDS) 2016 2015 401(k) Plan expense $ 1,374 $ 1,425 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 each of the three months ended March 31, 2016 , and 2015 was $0.3 million . |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2016 | |
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 months ended March 31, 2016 , and 2015 : FOR THE THREE MONTHS ENDED MAR. 31, 2016 2015 Cleco 38.5 % 39.2 % Cleco Power 37.6 % 39.1 % Effective Tax Rates For the three months ended March 31, 2016 , and 2015 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, including AFUDC equity, benefits delivered from Cleco’s investment in the NMTC Fund, settlements with taxing authorities, and state tax expense. For the three months ended March 31, 2016 , and 2015 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, including 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 March 31, 2016 , and December 31, 2015 , Cleco had a deferred tax asset resulting from NMTC carryforwards of $96.8 million and $96.5 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 March 31, 2016 , Cleco had no federal net operating loss carryforward and a state net operating loss carryforward of $109.3 million . The state net operating loss carryforward will begin to expire in 2031. Cleco considers it more likely than not that these income tax losses 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 March 31, 2016 , and December 31, 2015 , Cleco and Cleco Power had no interest payable related to uncertain tax positions. For the three months ended March 31, 2016 , Cleco and Cleco Power had no interest expense related to uncertain tax positions. At March 31, 2016 , Cleco had no liability for uncertain tax positions. Cleco estimates that it is reasonably possible that the balance of unrecognized tax benefits as of March 31, 2016 , for Cleco and Cleco Power would be unchanged in the next 12 months. The settlement of open tax years could involve the payment of additional taxes, and/or the recognition of tax benefits, which may have an effect on Cleco’s effective tax rate. The federal income tax years that remain subject to examination by the IRS are 2012, 2013, 2014, and 2015. The IRS has concluded its audit for the years 2010 through 2014. 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 2016 tax year. The state income tax year that remains subject to examination by the Louisiana Department of Revenue is 2014. 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. Cleco classifies income tax penalties as a component of other expense. For the three months ended March 31, 2016 , and 2015, no penalties were recognized. |
Disclosures about Segments
Disclosures about Segments | 3 Months Ended |
Mar. 31, 2016 | |
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. Cleco Power, 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’s Board of Directors. The reportable segment prepares budgets that are presented to and approved by Cleco’s Board of Directors. The column shown as Other in the chart below includes the holding company, a shared services subsidiary, two transmission interconnection facility subsidiaries, and an investment subsidiary. 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. These intercompany transactions relate primarily to joint and common administrative support services provided by Support Group. SEGMENT INFORMATION FOR THE THREE MONTHS ENDED MAR. 31, 2016 (THOUSANDS) CLECO POWER OTHER ELIMINATIONS CONSOLIDATED Revenue Electric operations $ 250,157 $ — $ — $ 250,157 Other operations 16,614 518 — 17,132 Electric customer credits (321 ) — — (321 ) Affiliate revenue 232 13,024 (13,256 ) — Operating revenue, net $ 266,682 $ 13,542 $ (13,256 ) $ 266,968 Depreciation and amortization $ 38,603 $ 335 $ — $ 38,938 Merger transaction costs $ — $ 1,539 $ (17 ) $ 1,522 Interest charges $ 19,285 $ 278 $ (10 ) $ 19,553 Interest income $ 179 $ 55 $ (10 ) $ 224 Federal and state income tax expense (benefit) $ 12,563 $ (426 ) $ — $ 12,137 Net income (loss) $ 20,879 $ (1,511 ) $ — $ 19,368 Additions to property, plant, and equipment $ 35,453 $ 23 $ — $ 35,476 Equity investment in investees $ 19,272 $ — $ — $ 19,272 Total segment assets $ 4,242,920 $ (14,679 ) $ 104,928 $ 4,333,169 2015 (THOUSANDS) CLECO POWER OTHER ELIMINATIONS CONSOLIDATED Revenue Electric operations $ 277,514 $ — $ — $ 277,514 Other operations 17,213 520 (1 ) 17,732 Electric customer credits 211 — — 211 Affiliate revenue 333 12,804 (13,137 ) — Operating revenue, net $ 295,271 $ 13,324 $ (13,138 ) $ 295,457 Depreciation and amortization $ 36,983 $ 295 $ — $ 37,278 Merger transaction costs $ — $ 2,140 $ — $ 2,140 Interest charges $ 19,902 $ 115 $ 105 $ 20,122 Interest income $ 256 $ (63 ) $ 104 $ 297 Federal and state income tax expense (benefit) $ 18,359 $ (1,030 ) $ (1 ) $ 17,328 Net income (loss) $ 28,605 $ (1,684 ) $ 1 $ 26,922 Additions to property, plant, and equipment $ 36,232 $ 65 $ — $ 36,297 Equity investment in investees (1) $ 16,822 $ — $ — $ 16,822 Total segment assets (1) $ 4,233,337 $ 21,471 $ 68,546 $ 4,323,354 (1) Balances as of December 31, 2015 |
Regulation and Rates
Regulation and Rates | 3 Months Ended |
Mar. 31, 2016 | |
Regulated Operations [Abstract] | |
Regulation and Rates | Note 9 — Regulation and Rates A t March 31, 2016 , 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 and $0.2 million related to Cleco Power’s monitoring report for the 12-month period ended June 30, 2015. On April 7, 2016, the LPSC issued an order approving the Merger. Included in the commitments of the order were $136.0 million of rate credits to eligible customers. On April 25, 2016, in accordance with the LPSC commitments, Cleco Power deposited these funds into an escrow account. On April 28, 2016, the LPSC voted to issue credits equally among customers with service on June 30, 2016. Also included in the commitments of the order were $1.2 million of annual estimated cost of service savings expected as a result of the Merger. This amount will be refunded to customers annually until Cleco Power’s next FRP becomes effective. The annual cost savings will be included in the monitoring report, but will not be subject to any sharing mechanism in the current FRP. 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 March 31, 2016 , Cleco Power had $2.8 million accrued for proposed ROE reductions for the period December 2013 through March 2016. For more information on the ROE complaint, see Note 11 — “Litigation, Other Commitments and Contingencies, and Disclosures about Guarantees — Litigation — Transmission ROE.” FRP Cleco Power’s annual retail earnings are subject to an FRP that was approved by the LPSC in June 2014. Under the terms of the FRP, 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. Cleco Power was scheduled to file an application with the LPSC to extend its FRP by June 30, 2017. However, as part of the Merger approval process Cleco Power agreed not to file an application for a new FRP or request an increase in base rates until June 30, 2019. On October 31, 2015, Cleco Power filed its monitoring report for the 12-month period ended June 30, 2015, which indicated that $0.2 million is due to be returned to eligible customers. A review of this report by the LPSC has not been completed. |
Variable Interest Entities
Variable Interest Entities | 3 Months Ended |
Mar. 31, 2016 | |
Variable Interest Entity, Not Primary Beneficiary, Disclosures [Abstract] | |
Variable Interest Entities | Note 10 — Variable Interest Entities Cleco and Cleco Power apply the equity method of accounting to report the investment in Oxbow. Under the equity method, the assets and liabilities of this entity are reported as Equity investment in investee 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 investment in investee at March 31, 2016 , represents Cleco Power’s $19.3 million investment in 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 March 31, 2016 , consisted of its equity investment of $19.3 million . During the three months ended March 31, 2016, Cleco Power made $2.5 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 by May 2017. The following table presents the components of Cleco Power’s equity investment in Oxbow: INCEPTION TO DATE (THOUSANDS) AT MAR. 31, 2016 AT DEC. 31, 2015 Purchase price $ 12,873 $ 12,873 Cash contributions 6,399 3,949 Total equity investment in investee $ 19,272 $ 16,822 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 MAR. 31, 2016 AT DEC. 31, 2015 Oxbow’s net assets/liabilities $ 38,544 $ 33,645 Cleco Power’s 50% equity $ 19,272 $ 16,822 Cleco Power’s maximum exposure to loss $ 19,272 $ 16,822 The following tables contain summarized financial information for Oxbow: (THOUSANDS) AT MAR. 31, 2016 AT DEC. 31, 2015 Current assets $ 1,984 $ 2,794 Property, plant, and equipment, net 25,898 23,749 Other assets 11,493 7,220 Total assets $ 39,375 $ 33,763 Current liabilities $ 831 $ 118 Partners’ capital 38,544 33,645 Total liabilities and partners’ capital $ 39,375 $ 33,763 FOR THE THREE MONTHS ENDED MAR. 31, (THOUSANDS) 2016 2015 Operating revenue $ 2,101 $ 854 Operating expenses 2,101 854 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 | 3 Months Ended |
Mar. 31, 2016 | |
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 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 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. The final Tier 2 remedial investigation report was made public in December 2015. 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. 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 alleged, among other things, that the members of Cleco Corporation’s 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 undervalued Cleco, and failing to disclose material information about the Merger. The petitions also alleged 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 monetary damages, which includes 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 Amended Petition). The consolidated action named Cleco Corporation, its directors, Cleco Partners, and Merger Sub as defendants. The Consolidated Amended Petition alleged, among other things, that Cleco Corporation’s directors breached their fiduciary duties to Cleco’s shareholders and grossly mismanaged Cleco by approving the Merger Agreement because it allegedly did 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 Amended Petition further alleged that all defendants conspired to commit the breaches of fiduciary duty. Cleco believes that the allegations of the Consolidated Amended Petition are without merit and that it has substantial meritorious defenses to the claims set forth in the Consolidated Amended 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. Each petition alleged, among other things, that the members of Cleco Corporation’s Board of Directors breached their fiduciary duties to Cleco’s shareholders by approving the Merger Agreement because it allegedly did 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 alleged that the directors breached their fiduciary duties by failing to disclose material information about the Merger. Each petition further alleged 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 held on 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 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. On March 21, 2016, plaintiffs filed their Third Consolidated Amended Verified Derivative Petition for Damages and Preliminary and Permanent Injunction. By their agreement to an Order that was entered on March 31, 2016, the plaintiffs indicated that they will file yet another amended Petition within 30 days after closing of the Merger, which occurred on April 13, 2016. This Order also established a schedule for the defendants to file exceptions to such amended Petition and for briefing of same. Gulf Coast Spinning In September 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 (the “District Court”), 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 filed an Exception of No Cause of Action arguing that the case should be dismissed. The District Court denied Cleco’s exception in December 2015, after considering briefs and arguments. On January 21, 2016, Cleco appealed the District Court’s denial of its exception by filing with the Third Circuit Court of Appeal for the State of Louisiana. Currently, all proceedings have been stayed by agreement of the parties pending their discussions concerning settlement. Cleco believes the allegations of the petition are contradicted by the written documents executed by Gulf Coast, are otherwise without merit, and that it has substantial meritorious defenses to the claims alleged by Gulf Coast. LPSC Audits Fuel Audit Generally, 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. On February 3, 2016, the LPSC initiated an audit of Cleco Power’s fuel and purchased power expenses for the period January 2014 through December 2015. The total amount of fuel expense included in the audit is $582.6 million . Management is unable to predict or give a reasonable estimate of the possible range of the disallowance, if any, related to this audit. If a disallowance of fuel costs is ordered, resulting in a refund, any such refund could have a material adverse effect on the results of operations, financial condition, or cash flows of the Registrants. 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. In June 2015, the U.S. Supreme Court remanded the MATS rule to the D.C. Circuit Court of Appeals. In December 2015, the D.C. Circuit Court of Appeals remanded the rule to the EPA; however, the D.C. Circuit Court of Appeals did not vacate this rule. 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. These expenses are eligible for recovery through Cleco Power’s EAC and are subject to periodic review by the LPSC. On February 3, 2016, the LPSC initiated an audit of Cleco Power’s environmental costs for the period November 2010 through December 2015. The total amount of environmental costs included in this audit is $81.2 million . Management is unable to predict or give a reasonable estimate of the possible range of the disallowance, if any, related to this audit. If a disallowance of environmental costs is ordered resulting in a refund, any such refund could have a material adverse effect on the results of operations, financial condition, or cash flows of the Registrants. 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 discussion. In December 2015, the ALJ issued an initial decision in this docket recommending a 10.32% ROE. A binding FERC order is expected to be issued during the second half of 2016. In November 2014, the MISO transmission owners committee, of which Cleco is a member, filed a request with FERC for an incentive to increase the new ROE by 50 basis points for RTO participation as allowed by the MISO tariff. In January 2015, FERC granted the request. The collection of the adder is delayed until the resolution of the ROE complaint proceeding. A second ROE case was filed in February 2015 and is pending litigation. As of March 31, 2016 , Cleco Power had $2.8 million accrued for a possible reduction to the ROE for the period December 2013 through March 2016. 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 March 31, 2016 , believes the probable and reasonably estimable liabilities based on the eventual disposition of these matters is $5.0 million and has accrued this amount. Off-Balance Sheet Commitments Cleco Holdings 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 Holdings’ subsidiaries and equity investees (affiliates). Cleco Holdings 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. Cleco Holdings 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 Holdings 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. Cleco Holdings provided guarantees and indemnities to Entergy Louisiana and Entergy Gulf States as a result of the sale of the Perryville facility in 2005. At March 31, 2016, the remaining indemnifications relate to environmental matters that may have been present prior to closing. These remaining indemnifications have no limitations to time. 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 these guarantees. On behalf of Acadia, Cleco Holdings 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 March 31, 2016, 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 Holdings 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 Holdings and Evangeline as a result of the transfer of Coughlin to Cleco Power. The maximum amount of the potential payment to Cleco Power, Cleco Holdings, 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 March 31, 2016 , 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 $106.5 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 Holdings 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 Holdings 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 Holdings and US Bancorp Community Development (USBCDC) formed the NMTC Fund. Cleco Holdings 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 Holdings. In total, Cleco Holdings contributed $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. 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 March 31, 2016 , was $17.8 million . The amount of tax benefits delivered but not utilized as of March 31, 2016 , was $99.6 million and is reflected as a deferred tax asset. By using the cost method for investments, the gross investment amortization expense will be recognized over a nine -year period, with two years remaining under the new amendment. The basis of the investment is reduced by the grants received under Section 1603 of the ARRA, which allow 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 Cleco has accrued for liabilities related to third parties, employee medical benefits, and AROs. Risks and Uncertainties Cleco Holdings Cleco Holdings could be subject to possible adverse consequences if Cleco’s counterparties fail to perform their obligations or if Cleco Holdings 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. On April 8, 2016, S&P and Moody’s updated the credit ratings for Cleco Holdings, taking into consideration the results of the Merger. S&P and Moody’s downgraded Cleco Holdings’ credit rating to BBB- (stable) and Baa3 (stable), respectively. Any further downgrade of credit ratings will result in additional fees and higher interest rates under its bank credit and, potentially, 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 is a participant in the MISO market. 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 a higher LMP. Physical transmission constraints present in the MISO market could increase energy costs within Cleco Power’s pricing zones. Cleco Power uses FTRs to mitigate 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. In October 2015, upon announcement of the Merger, Moody’s and S&P updated Cleco Power’s outlook to negative and CreditWatch negative, respectively. On April 8, 2016, S&P and Moody’s updated the credit ratings for Cleco Power, taking into consideration the results of the Merger. S&P and Moody’s credit ratings were maintained at Cleco Power at BBB+ (stable) and A3 (stable), respectively. Any downgrade of Cleco Power’s credit ratings will result in additional fees and higher interest rates under its bank credit and, potentially, other debt 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 will be required to post additional collateral for derivatives. |
Affiliate Transactions
Affiliate Transactions | 3 Months Ended |
Mar. 31, 2016 | |
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 MAR. 31, 2016 AT DEC. 31, 2015 (THOUSANDS) ACCOUNTS RECEIVABLE ACCOUNTS PAYABLE ACCOUNTS RECEIVABLE ACCOUNTS PAYABLE Cleco Holdings $ 89 $ 664 $ 653 $ 564 Support Group 692 6,949 1,254 6,034 Other (1) 1 — 1 — Total $ 782 $ 7,613 $ 1,908 $ 6,598 (1) Represents Attala, Diversified Lands, and Perryville. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Mar. 31, 2016 | |
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 MAR. 31, 2016 2015 (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 $ (20,857 ) $ (5,728 ) $ (26,585 ) $ (26,726 ) $ (5,939 ) $ (32,665 ) Amounts reclassified from accumulated other Amortization of postretirement benefit net loss 528 — 528 609 — 609 Reclassification of net loss to interest charges — 53 53 — 53 53 Net current-period other comprehensive income 528 53 581 609 53 662 Balances, Mar. 31, $ (20,329 ) $ (5,675 ) $ (26,004 ) $ (26,117 ) $ (5,886 ) $ (32,003 ) Cleco Power FOR THE THREE MONTHS ENDED MAR. 31, 2016 2015 (THOUSANDS) POSTRETIREMENT NET LOSS TOTAL AOCI POSTRETIREMENT NET LOSS TOTAL AOCI Balances beginning of period $ (11,364 ) $ (5,728 ) $ (17,092 ) $ (11,349 ) $ (5,939 ) $ (17,288 ) Amounts reclassified from accumulated other Amortization of postretirement benefit net loss (gain) 200 — 200 (87 ) — (87 ) Reclassification of net loss to interest charges — 53 53 — 53 53 Net current-period other comprehensive income (loss) 200 53 253 (87 ) 53 (34 ) Balances, Mar. 31, $ (11,164 ) $ (5,675 ) $ (16,839 ) $ (11,436 ) $ (5,886 ) $ (17,322 ) |
Agreement and Plan of Merger
Agreement and Plan of Merger | 3 Months Ended |
Mar. 31, 2016 | |
Business Combinations [Abstract] | |
Agreement and Plan of Merger | Note 14 — Agreement and Plan of Merger On March 28, 2016, the LPSC approved the Merger. The LPSC’s written order approving the Merger was issued on April 7, 2016. On April 13, 2016, Cleco Holdings completed its merger with Merger Sub whereby Merger Sub merged with and into Cleco Corporation, with Cleco Holdings surviving the Merger as a direct, wholly owned subsidiary of Cleco Group and an indirect, wholly owned subsidiary of Cleco Partners. 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 were owned by Cleco Corporation, Cleco Partners, Merger Sub, or any other direct or indirect wholly owned subsidiary of Cleco Partners or Cleco Corporation), were cancelled and were 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. On April 13, 2016, upon completion of the Merger, Cleco Holdings paid an additional $12.0 million in contingency fees to its financial advisors. Requests for a rehearing of the LPSC’s approval of the Merger were filed by two intervenors on April 7, 2016, and April 8, 2016, respectively. These requests were considered by the LPSC at its meeting on April 28, 2016. Although the requests were considered at the LPSC meeting, no LPSC commissioner made a motion to grant the request for rehearing. Management does not anticipate that the LPSC will reverse its approval of the Merger. |
Summary of Significant Accoun25
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2016 | |
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 Holdings 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, 2015. 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. |
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 on the date of acquisition or debt issuance. Cleco and Cleco Power disclose the fair value of certain assets and liabilities by one of three levels when required for recognition purposes. 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 evaluates derivatives and hedging activities to determine whether the market risk-sensitive instruments and positions are required to be marked-to-market. 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 would be 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 would be included in the FAC and reflected on customers’ bills as a component of the fuel cost adjustment. 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. There were no open natural gas positions at March 31, 2016 , or December 31, 2015 . 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 March 31, 2016 , Cleco and Cleco Power’s Condensed Consolidated Balance Sheets reflected the fair value of open FTR positions of $2.3 million in Energy risk management assets and $0.4 million in Energy risk management liabilities, compared to $7.7 million in Energy risk management assets and $0.3 million in Energy risk management liabilities at December 31, 2015. For more information on FTRs, see Note 4 — “Fair Value Accounting — Commodity Contracts.” Cleco and Cleco Power maintain a master netting agreement policy and monitor credit risk exposure through review of counterparty credit quality, aggregate counterparty credit exposure, and aggregate counterparty concentration levels. Cleco manages these risks by establishing appropriate credit and concentration limits on transactions with counterparties and requiring contractual guarantees, cash deposits, or letters of credit from counterparties or their affiliates, as deemed necessary. Cleco Power has agreements in place with various 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 March 31, 2016 , Cleco had two stock-based compensation plans: the ESPP and the LTIP. As a result of the completion of the Merger, on April 13, 2016, the ESPP and the LTIP were terminated. Prior to the completion of the Merger, pursuant to the LTIP, certain officers, key employees, and directors of Cleco were eligible to be granted stock options, restricted stock, also known as non-vested stock, common stock equivalents, and stock appreciation rights. During the three months ended March 31, 2016 , Cleco granted no shares of non-vested stock pursuant to the LTIP. As a result of the Merger on April 13, 2016, all unvested shares outstanding under the LTIP that were granted prior to January 1, 2015, were vested at target and paid out in cash to plan participants and unvested shares that were granted during 2015 were prorated to the target amount and paid out in cash to plan participants in accordance with the terms of the Merger Agreement. |
Common Stock Repurchase Program, Policy | Upon completion of the Merger on April 13, 2016, the common stock repurchase program was terminated. Prior to the completion of the Merger, Cleco Holdings had a common stock repurchase program that authorized management to repurchase shares of common stock. |
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, FASB amended the revenue recognition 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 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, 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 evaluating the impact that the adoption of this guidance will have on the results of operations, financial condition, or cash flows of the Registrants. In January 2016, FASB amended the guidance for recognition and measurement of financial assets and liabilities. These amendments address certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The adoption of this guidance is effective for fiscal years beginning after December 15, 2017, including interim periods within those years. Early adoption of certain provisions of this guidance is permitted as of the beginning of the fiscal year of adoption. Entities should apply these amendments by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. The amendments related to equity securities without readily determinable fair value should be applied prospectively to equity investments that exist as of the date of adoption. Management does not expect this guidance to have a significant impact on the results of operations, financial condition, or cash flows of the Registrants. In February 2016, FASB amended the guidance to account for leases. This guidance is intended to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The adoption of this guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those years. Early adoption is permitted. In transition, lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The modified retrospective approach includes practical expedients that may be elected by entities. Management is evaluating the impact that the adoption of this guidance will have on the results of operations, financial condition, or cash flows of the Registrants. In February 2016, FASB amended the derivatives and hedging accounting guidance to address the effect of derivative contract novations on existing hedge accounting relationships. The amended guidance clarifies that a change in the counterparty to a derivative instrument that has been designated as the hedging instrument does not, in and of itself, require dedesignation of the hedging relationship provided that all other hedge accounting criteria continue to be met. The adoption of this guidance is effective for fiscal years beginning after December 15, 2016, including interim periods within those years. Entities have the option to apply these amendments on either a prospective basis or a modified retrospective basis. This guidance will not have an impact on the results of operations, financial condition, or cash flows of the Registrants. In March 2016, FASB amended the derivatives and hedging accounting guidance related to contingent put and call options in debt instruments. This guidance clarifies the requirements for assessing whether contingent put and call options that can accelerate the payment of principal on debt instruments are clearly and closely related to their debt hosts. Entities performing the assessment will be required to assess the embedded put and call options solely in accordance with the four-step decision sequence clarified in the amended guidance. The adoption of this guidance is effective for fiscal years beginning after December 15, 2016, including interim periods within those years. Entities should apply these amendments on a modified retrospective basis to existing debt instruments as of the beginning of the fiscal year for which the amendments are effective. Management is evaluating the impact that the adoption of this guidance will have on the results of operations, financial condition, or cash flows of the Registrants. In March 2016, FASB amended the accounting guidance to simplify the transition to the equity method of accounting. This guidance impacts entities that have an investment that becomes qualified for the equity method of accounting as a result of an increase in the level of ownership interest or degree of influence. This amended guidance eliminates the requirement to retroactively adopt the equity method of accounting. The adoption of this guidance is effective for fiscal years beginning after December 15, 2016, including interim periods within those years. Early adoption is permitted. These amendments should be applied prospectively upon their effective date to increases in the level of ownership interest or degree of influence that results in the adoption of the equity method. Management does not expect this guidance to have any impact on the results of operations, financial condition, or cash flows of the Registrants. In March 2016, FASB amended the stock compensation guidance to provide for improvements to employee share-based payment accounting. The adoption of this guidance is effective for annual periods beginning after December 15, 2016, and interim periods within those periods. Early adoption is permitted. As a result of the Merger on April 13, 2016, Cleco Holdings no longer has common stock. As a result, this guidance will not have an impact on the results of operations, financial condition, or cash flows of the Registrants. |
Regulatory Assets and Liabilities, Policy | Cleco Power capitalizes or defers certain costs for recovery from customers and recognizes 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. 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. In 2014, SERP was closed 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. 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 401(k) 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 401(k) Plan, employer contributions can be in the form of cash. Cash contributions are invested in proportion to the participant’s voluntary contribution investment choices. Prior to the close of the Merger on April 13, 2016, employer contributions could also be in the form of Cleco Corporation common stock. Plan participants were allowed to choose whether to have the dividends on Cleco Corporation common stock distributed in cash or reinvested in additional shares of Cleco Corporation common stock. Participation in the 401(k) Plan is voluntary, and active Cleco employees are eligible to participate. |
Income Tax, Policy | Cleco classifies income tax penalties as a component of other expense. Cleco classifies all interest related to uncertain tax positions as a component of interest payable and interest expense. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. |
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 apply the equity method of accounting to report the investment in Oxbow. Under the equity method, the assets and liabilities of this entity are reported as Equity investment in investee 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 Accoun26
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Property, Plant, and Equipment | Cleco’s property, plant, and equipment consisted of: (THOUSANDS) AT MAR. 31, 2016 AT DEC. 31, 2015 Regulated utility plants $ 4,675,788 $ 4,645,698 Other 15,657 15,514 Total property, plant, and equipment 4,691,445 4,661,212 Accumulated depreciation (1,562,348 ) (1,536,158 ) Net property, plant, and equipment $ 3,129,097 $ 3,125,054 |
Restricted Cash and Cash Equivalents | Cleco’s restricted cash and cash equivalents consisted of: (THOUSANDS) AT MAR. 31, 2016 AT DEC. 31, 2015 Current: Cleco Katrina/Rita’s storm recovery bonds $ 3,580 $ 9,263 Cleco Power’s sale of property 1,299 — Total current 4,879 9,263 Non-current: Diversified Lands’ mitigation escrow 21 21 Cleco Power’s future storm restoration costs 16,469 16,174 Total non-current 16,490 16,195 Total restricted cash and cash equivalents $ 21,369 $ 25,458 |
Earnings per Average Common Share | The following tables show the calculation of basic and diluted earnings per share: FOR THE THREE MONTHS ENDED MAR. 31, 2016 2015 (THOUSANDS, EXCEPT SHARES AND PER SHARE AMOUNTS) INCOME SHARES PER SHARE AMOUNT INCOME SHARES PER SHARE AMOUNT Basic net income applicable to common stock $ 19,368 60,528,489 $ 0.32 $ 26,922 60,463,693 $ 0.45 Effect of dilutive securities Add: restricted stock (LTIP) 103,021 236,392 Diluted net income applicable to common stock $ 19,368 60,631,510 $ 0.32 $ 26,922 60,700,085 $ 0.44 |
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 MAR. 31, 2016 2015 2016 2015 (THOUSANDS) CLECO CLECO POWER Equity classification Non-vested stock $ 969 $ 1,785 $ 352 $ 444 Tax benefit $ 373 $ 687 $ 135 $ 171 |
Regulatory Assets and Liabili27
Regulatory Assets and Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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 MAR. 31, 2016 AT DEC. 31, 2015 Regulatory assets – deferred taxes, net $ 237,030 $ 236,941 Mining costs 8,284 8,921 Interest costs 5,131 5,221 AROs 1,639 2,462 Postretirement costs 147,823 150,274 Tree trimming costs 5,639 6,318 Training costs 6,824 6,863 Surcredits, net 8,754 9,661 Amended lignite mining agreement contingency 3,781 3,781 AMI deferred revenue requirement 5,181 5,318 Production operations and maintenance expenses 11,088 12,436 AFUDC equity gross-up 71,061 71,444 Acadia Unit 1 acquisition costs 2,521 2,548 Financing costs 8,940 9,032 Biomass costs 42 50 MISO integration costs 2,106 2,340 Coughlin transaction costs 1,022 1,030 Corporate franchise tax 90 373 Acadia FRP true-up 189 377 MATS costs 6,405 — Other 298 357 Total regulatory assets 296,818 298,806 PPA true-up (156 ) (312 ) Fuel and purchased power 13,654 12,910 Total regulatory assets, net $ 547,346 $ 548,345 |
Fair Value Accounting (Tables)
Fair Value Accounting (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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 MAR. 31, 2016 AT DEC. 31, 2015 (THOUSANDS) CARRYING VALUE ESTIMATED FAIR VALUE CARRYING VALUE ESTIMATED FAIR VALUE Cash equivalents $ 107,700 $ 107,700 $ 64,200 $ 64,200 Restricted cash equivalents $ 21,200 $ 21,200 $ 25,384 $ 25,384 Long-term debt $ 1,283,984 $ 1,466,817 $ 1,299,529 $ 1,463,989 |
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: Cleco CLECO CONSOLIDATED FAIR VALUE MEASUREMENTS AT REPORTING DATE USING: (THOUSANDS) AT MAR. 31, 2016 QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) AT DEC. 31, 2015 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 $ 128,900 $ — $ 128,900 $ — $ 89,584 $ — $ 89,584 $ — FTRs 2,252 — — 2,252 7,673 — — 7,673 Total assets $ 131,152 $ — $ 128,900 $ 2,252 $ 97,257 $ — $ 89,584 $ 7,673 Liability description Long-term debt $ 1,466,817 $ — $ 1,466,817 $ — $ 1,463,989 $ — $ 1,463,989 $ — FTRs 386 — — 386 275 — — 275 Total liabilities $ 1,467,203 $ — $ 1,466,817 $ 386 $ 1,464,264 $ — $ 1,463,989 $ 275 |
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 MAR. 31, (THOUSANDS) 2016 2015 Beginning balance $ 7,398 $ 9,949 Unrealized losses* (832 ) (1,710 ) Purchases 46 63 Settlements (4,746 ) (6,489 ) Ending balance $ 1,866 $ 1,813 * 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 as of March 31, 2016 , and December 31, 2015 : FAIR VALUE VALUATION TECHNIQUE SIGNIFICANT UNOBSERVABLE INPUTS FORWARD PRICE RANGE (THOUSANDS, EXCEPT FORWARD PRICE RANGE) ASSETS LIABILITIES LOW HIGH FTRs at Mar. 31, 2016 $ 2,252 $ 386 RTO auction pricing FTR price - per MWh $ (2.78 ) $ 3.36 FTRs at Dec. 31, 2015 $ 7,673 $ 275 RTO auction pricing FTR price - per MWh $ (3.63 ) $ 4.51 |
Cleco Power [Member] | |
Fair Value [Line Items] | |
Fair Value By Balance Sheet Grouping | Cleco Power AT MAR. 31, 2016 AT DEC. 31, 2015 (THOUSANDS) CARRYING VALUE ESTIMATED FAIR VALUE CARRYING VALUE ESTIMATED FAIR VALUE Cash equivalents $ 106,700 $ 106,700 $ 62,000 $ 62,000 Restricted cash equivalents $ 21,179 $ 21,179 $ 25,363 $ 25,363 Long-term debt $ 1,256,984 $ 1,439,817 $ 1,265,529 $ 1,429,989 |
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 MAR. 31, 2016 QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) AT DEC. 31, 2015 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 $ 127,879 $ — $ 127,879 $ — $ 87,363 $ — $ 87,363 $ — FTRs 2,252 — — 2,252 7,673 — — 7,673 Total assets $ 130,131 $ — $ 127,879 $ 2,252 $ 95,036 $ — $ 87,363 $ 7,673 Liability description Long-term debt $ 1,439,817 $ — $ 1,439,817 $ — $ 1,429,989 $ — $ 1,429,989 $ — FTRs 386 — — 386 275 — — 275 Total liabilities $ 1,440,203 $ — $ 1,439,817 $ 386 $ 1,430,264 $ — $ 1,429,989 $ 275 |
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 March 31, 2016 , and December 31, 2015 : DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS (THOUSANDS) BALANCE SHEET LINE ITEM AT MAR. 31, 2016 AT DEC. 31, 2015 Commodity-related contracts FTRs: Current Energy risk management assets $ 2,252 $ 7,673 Current Energy risk management liabilities 386 275 Commodity-related contracts, net $ 1,866 $ 7,398 |
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 months ended March 31, 2016 , and 2015 : FOR THE THREE MONTHS ENDED MAR. 31, 2016 2015 (THOUSANDS) DERIVATIVES LINE ITEM AMOUNT OF GAIN/(LOSS) RECOGNIZED IN INCOME ON DERIVATIVES Commodity contracts FTRs (1) Electric operations $ 8,520 $ 15,508 FTRs (1) Power purchased for utility customers (5,723 ) (8,037 ) Total $ 2,797 $ 7,471 (1) At March 31, 2016, and 2015, unrealized losses associated with FTRs of $0.8 million and $1.7 million , respectively, were reported in Accumulated deferred fuel on the balance sheet. |
Pension Plan and Employee Ben29
Pension Plan and Employee Benefits (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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 months ended March 31, 2016 , and 2015 are as follows: FOR THE THREE MONTHS ENDED MAR. 31, 2016 2015 2016 2015 (THOUSANDS) PENSION BENEFITS OTHER BENEFITS Components of periodic benefit costs: Service cost $ 2,262 $ 2,526 $ 380 $ 395 Interest cost 5,507 5,127 420 401 Expected return on plan assets (6,010 ) (5,834 ) — — Amortizations: Prior period service (credit) cost (18 ) (18 ) 30 30 Net loss 2,469 3,346 160 210 Net periodic benefit cost $ 4,210 $ 5,147 $ 990 $ 1,036 |
401(k) Plan [Abstract] | |
401(k) Plan expense | Cleco’s 401(k) Plan expense for the three months ended March 31, 2016 , and 2015 is as follows: FOR THE THREE MONTHS ENDED MAR. 31, (THOUSANDS) 2016 2015 401(k) Plan expense $ 1,374 $ 1,425 |
Other Benefits [Member] | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Schedule of current and non-current portions | The current and non-current portions of the other benefits liability for Cleco and Cleco Power at March 31, 2016 , and December 31, 2015 , are as follows: (THOUSANDS) AT MAR. 31, 2016 AT DEC. 31, 2015 Cleco Current $ 3,613 $ 3,613 Non-current $ 38,887 $ 39,457 Cleco Power Current $ 3,140 $ 3,140 Non-current $ 33,801 $ 34,300 |
SERP Benefits [Member] | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Schedule of current and non-current portions | The current and non-current portions of the SERP liability for Cleco and Cleco Power at March 31, 2016 , and December 31, 2015 , are as follows: (THOUSANDS) AT MAR. 31, 2016 AT DEC. 31, 2015 Cleco Current $ 3,238 $ 3,238 Non-current $ 69,632 $ 69,049 Cleco Power Current $ 1,000 $ 1,000 Non-current $ 21,371 $ 21,321 |
Net periodic benefit costs | The components of net periodic benefit cost related to SERP for the three months ended March 31, 2016 , and 2015 are as follows: FOR THE THREE MONTHS ENDED MAR. 31, (THOUSANDS) 2016 2015 Components of periodic benefit costs: Service cost $ 583 $ 630 Interest cost 731 758 Amortizations: Prior period service cost 13 13 Net loss 655 726 Net periodic benefit cost $ 1,982 $ 2,127 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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 months ended March 31, 2016 , and 2015 : FOR THE THREE MONTHS ENDED MAR. 31, 2016 2015 Cleco 38.5 % 39.2 % Cleco Power 37.6 % 39.1 % |
Disclosures about Segments (Tab
Disclosures about Segments (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment Information | SEGMENT INFORMATION FOR THE THREE MONTHS ENDED MAR. 31, 2016 (THOUSANDS) CLECO POWER OTHER ELIMINATIONS CONSOLIDATED Revenue Electric operations $ 250,157 $ — $ — $ 250,157 Other operations 16,614 518 — 17,132 Electric customer credits (321 ) — — (321 ) Affiliate revenue 232 13,024 (13,256 ) — Operating revenue, net $ 266,682 $ 13,542 $ (13,256 ) $ 266,968 Depreciation and amortization $ 38,603 $ 335 $ — $ 38,938 Merger transaction costs $ — $ 1,539 $ (17 ) $ 1,522 Interest charges $ 19,285 $ 278 $ (10 ) $ 19,553 Interest income $ 179 $ 55 $ (10 ) $ 224 Federal and state income tax expense (benefit) $ 12,563 $ (426 ) $ — $ 12,137 Net income (loss) $ 20,879 $ (1,511 ) $ — $ 19,368 Additions to property, plant, and equipment $ 35,453 $ 23 $ — $ 35,476 Equity investment in investees $ 19,272 $ — $ — $ 19,272 Total segment assets $ 4,242,920 $ (14,679 ) $ 104,928 $ 4,333,169 2015 (THOUSANDS) CLECO POWER OTHER ELIMINATIONS CONSOLIDATED Revenue Electric operations $ 277,514 $ — $ — $ 277,514 Other operations 17,213 520 (1 ) 17,732 Electric customer credits 211 — — 211 Affiliate revenue 333 12,804 (13,137 ) — Operating revenue, net $ 295,271 $ 13,324 $ (13,138 ) $ 295,457 Depreciation and amortization $ 36,983 $ 295 $ — $ 37,278 Merger transaction costs $ — $ 2,140 $ — $ 2,140 Interest charges $ 19,902 $ 115 $ 105 $ 20,122 Interest income $ 256 $ (63 ) $ 104 $ 297 Federal and state income tax expense (benefit) $ 18,359 $ (1,030 ) $ (1 ) $ 17,328 Net income (loss) $ 28,605 $ (1,684 ) $ 1 $ 26,922 Additions to property, plant, and equipment $ 36,232 $ 65 $ — $ 36,297 Equity investment in investees (1) $ 16,822 $ — $ — $ 16,822 Total segment assets (1) $ 4,233,337 $ 21,471 $ 68,546 $ 4,323,354 (1) Balances as of December 31, 2015 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) - Cleco Power [Member] | 3 Months Ended |
Mar. 31, 2016 | |
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 MAR. 31, 2016 AT DEC. 31, 2015 Oxbow’s net assets/liabilities $ 38,544 $ 33,645 Cleco Power’s 50% equity $ 19,272 $ 16,822 Cleco Power’s maximum exposure to loss $ 19,272 $ 16,822 |
Equity Method Investments | The following tables contain summarized financial information for Oxbow: (THOUSANDS) AT MAR. 31, 2016 AT DEC. 31, 2015 Current assets $ 1,984 $ 2,794 Property, plant, and equipment, net 25,898 23,749 Other assets 11,493 7,220 Total assets $ 39,375 $ 33,763 Current liabilities $ 831 $ 118 Partners’ capital 38,544 33,645 Total liabilities and partners’ capital $ 39,375 $ 33,763 FOR THE THREE MONTHS ENDED MAR. 31, (THOUSANDS) 2016 2015 Operating revenue $ 2,101 $ 854 Operating expenses 2,101 854 Income before taxes $ — $ — The following table presents the components of Cleco Power’s equity investment in Oxbow: INCEPTION TO DATE (THOUSANDS) AT MAR. 31, 2016 AT DEC. 31, 2015 Purchase price $ 12,873 $ 12,873 Cash contributions 6,399 3,949 Total equity investment in investee $ 19,272 $ 16,822 |
Affiliate Transactions (Tables)
Affiliate Transactions (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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 MAR. 31, 2016 AT DEC. 31, 2015 (THOUSANDS) ACCOUNTS RECEIVABLE ACCOUNTS PAYABLE ACCOUNTS RECEIVABLE ACCOUNTS PAYABLE Cleco Holdings $ 89 $ 664 $ 653 $ 564 Support Group 692 6,949 1,254 6,034 Other (1) 1 — 1 — Total $ 782 $ 7,613 $ 1,908 $ 6,598 (1) Represents Attala, Diversified Lands, and Perryville. |
Accumulated Other Comprehensi34
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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 MAR. 31, 2016 2015 (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 $ (20,857 ) $ (5,728 ) $ (26,585 ) $ (26,726 ) $ (5,939 ) $ (32,665 ) Amounts reclassified from accumulated other Amortization of postretirement benefit net loss 528 — 528 609 — 609 Reclassification of net loss to interest charges — 53 53 — 53 53 Net current-period other comprehensive income 528 53 581 609 53 662 Balances, Mar. 31, $ (20,329 ) $ (5,675 ) $ (26,004 ) $ (26,117 ) $ (5,886 ) $ (32,003 ) |
Cleco Power [Member] | |
Accumulated Other Comprehensive Loss [Line Items] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | Cleco Power FOR THE THREE MONTHS ENDED MAR. 31, 2016 2015 (THOUSANDS) POSTRETIREMENT NET LOSS TOTAL AOCI POSTRETIREMENT NET LOSS TOTAL AOCI Balances beginning of period $ (11,364 ) $ (5,728 ) $ (17,092 ) $ (11,349 ) $ (5,939 ) $ (17,288 ) Amounts reclassified from accumulated other Amortization of postretirement benefit net loss (gain) 200 — 200 (87 ) — (87 ) Reclassification of net loss to interest charges — 53 53 — 53 53 Net current-period other comprehensive income (loss) 200 53 253 (87 ) 53 (34 ) Balances, Mar. 31, $ (11,164 ) $ (5,675 ) $ (16,839 ) $ (11,436 ) $ (5,886 ) $ (17,322 ) |
Summary of Significant Accoun35
Summary of Significant Accounting Policies, Property, Plant, and Equipment (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Accounting Policies [Abstract] | ||
Regulated utility plants | $ 4,675,788 | $ 4,645,698 |
Other | 15,657 | 15,514 |
Total property, plant, and equipment | 4,691,445 | 4,661,212 |
Accumulated depreciation | (1,562,348) | (1,536,158) |
Net property, plant, and equipment | $ 3,129,097 | $ 3,125,054 |
Summary of Significant Accoun36
Summary of Significant Accounting Policies, Restricted Cash and Cash Equivalents (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Total current | $ 4,879 | $ 4,879 | $ 9,263 | |
Total non-current | 16,490 | 16,490 | 16,195 | |
Total restricted cash and cash equivalents | 21,369 | 21,369 | 25,458 | |
Increase (Decrease) in Restricted Cash | (4,088) | $ (5,377) | ||
Cleco Katrina Rita Storm Recovery Bonds | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Total current | 3,580 | 3,580 | 9,263 | |
Cleco Power's sale of property | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Total current | 1,299 | 1,299 | 0 | |
Increase (Decrease) in Restricted Cash | 1,300 | |||
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 | 16,469 | 16,469 | $ 16,174 | |
Katrina Rita storm recovery collections, net of administration fees | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Increase (Decrease) in Restricted Cash | $ 5,200 | |||
Katrina Rita Bond Principal Payments | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Increase (Decrease) in Restricted Cash | (8,500) | |||
Katrina Rita Bond Interest Payments | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Increase (Decrease) in Restricted Cash | $ (2,300) |
Summary of Significant Accoun37
Summary of Significant Accounting Policies, Risk Management (Details) $ in Millions | Mar. 31, 2016USD ($)MMBTU | Dec. 31, 2015USD ($)MMBTU |
Energy Related Derivative [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Number of open natural gas positions | MMBTU | 0 | 0 |
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 | $ 2.3 | $ 7.7 |
Energy risk management assets | Cleco Power [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
FTRs in Energy risk management asset | 2.3 | 7.7 |
Energy risk management liabilities | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
FTRs in Energy risk management liability | 0.4 | 0.3 |
Energy risk management liabilities | Cleco Power [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
FTRs in Energy risk management liability | $ 0.4 | $ 0.3 |
Summary of Significant Accoun38
Summary of Significant Accounting Policies, Earnings Per Average Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Income [Abstract] | ||
Basic net income applicable to common stock | $ 19,368 | $ 26,922 |
Diluted net income applicable to common stock | $ 19,368 | $ 26,922 |
Shares [Abstract] | ||
Basic average number of common shares outstanding (in shares) | 60,528,489 | 60,463,693 |
Effect of dilutive securities [Abstract] | ||
Add: restricted stock (LITP) (in shares) | 103,021 | 236,392 |
Average number of diluted common shares outstanding (in shares) | 60,631,510 | 60,700,085 |
Per Share Amount [Abstract] | ||
Basic net income applicable to common stock (in dollars per share) | $ 0.32 | $ 0.45 |
Diluted net income applicable to common stock (in dollars per share) | $ 0.32 | $ 0.44 |
Summary of Significant Accoun39
Summary of Significant Accounting Policies, Stock-Based Compensation (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | |
Apr. 30, 2016 | Mar. 31, 2016 | Mar. 31, 2015 | |
Stock-Based Compensation [Line Items] | |||
Tax benefit | $ 373 | $ 687 | |
Merger transaction costs | $ 1,522 | 2,140 | |
Non-vested Stock [Member] | |||
Stock-Based Compensation [Line Items] | |||
Non-vested stock granted during the period (in shares) | 0 | ||
Non-vested stock | $ 969 | 1,785 | |
Cleco Power [Member] | |||
Stock-Based Compensation [Line Items] | |||
Tax benefit | 135 | 171 | |
Cleco Power [Member] | Non-vested Stock [Member] | |||
Stock-Based Compensation [Line Items] | |||
Non-vested stock | $ 352 | $ 444 | |
Subsequent Event [Member] | Non-vested Stock [Member] | |||
Stock-Based Compensation [Line Items] | |||
Merger transaction costs | $ 2,300 |
Summary of Significant Accoun40
Summary of Significant Accounting Policies, Common Stock Repurchase Program (Details) - shares | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Parent Company [Member] | ||
Common Stock Repurchase Program [Line Items] | ||
Repurchase of common stock (in shares) | 0 | 0 |
Regulatory Assets and Liabili41
Regulatory Assets and Liabilities, Summary of Regulatory Assets and Liabilities (Details) - Cleco Power [Member] - USD ($) $ in Thousands | Mar. 31, 2016 | Feb. 01, 2016 | Dec. 31, 2015 |
Schedule of Regulatory Assets and Liabilities, Net [Line Items] | |||
Regulatory assets | $ 296,818 | $ 298,806 | |
Total regulatory assets, net | 547,346 | 548,345 | |
PPA true-up | |||
Schedule of Regulatory Assets and Liabilities, Net [Line Items] | |||
Regulatory liabilities | (156) | (312) | |
Regulatory assets – deferred taxes, net | |||
Schedule of Regulatory Assets and Liabilities, Net [Line Items] | |||
Regulatory assets | 237,030 | 236,941 | |
Mining costs | |||
Schedule of Regulatory Assets and Liabilities, Net [Line Items] | |||
Regulatory assets | 8,284 | 8,921 | |
Interest costs | |||
Schedule of Regulatory Assets and Liabilities, Net [Line Items] | |||
Regulatory assets | 5,131 | 5,221 | |
AROs | |||
Schedule of Regulatory Assets and Liabilities, Net [Line Items] | |||
Regulatory assets | 1,639 | 2,462 | |
Postretirement costs | |||
Schedule of Regulatory Assets and Liabilities, Net [Line Items] | |||
Regulatory assets | 147,823 | 150,274 | |
Tree trimming costs | |||
Schedule of Regulatory Assets and Liabilities, Net [Line Items] | |||
Regulatory assets | 5,639 | 6,318 | |
Training costs | |||
Schedule of Regulatory Assets and Liabilities, Net [Line Items] | |||
Regulatory assets | 6,824 | 6,863 | |
Surcredits, net | |||
Schedule of Regulatory Assets and Liabilities, Net [Line Items] | |||
Regulatory assets | 8,754 | 9,661 | |
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 | 5,181 | 5,318 | |
Production operations and maintenance expenses | |||
Schedule of Regulatory Assets and Liabilities, Net [Line Items] | |||
Regulatory assets | 11,088 | 12,436 | |
AFUDC equity gross-up | |||
Schedule of Regulatory Assets and Liabilities, Net [Line Items] | |||
Regulatory assets | 71,061 | 71,444 | |
Acquisition/ transaction costs [Member] | |||
Schedule of Regulatory Assets and Liabilities, Net [Line Items] | |||
Regulatory assets | 2,521 | 2,548 | |
Acquisition/ transaction costs [Member] | Coughlin transaction costs | |||
Schedule of Regulatory Assets and Liabilities, Net [Line Items] | |||
Regulatory assets | 1,022 | 1,030 | |
Financing costs | |||
Schedule of Regulatory Assets and Liabilities, Net [Line Items] | |||
Regulatory assets | 8,940 | 9,032 | |
Biomass costs | |||
Schedule of Regulatory Assets and Liabilities, Net [Line Items] | |||
Regulatory assets | 42 | 50 | |
MISO integration costs | |||
Schedule of Regulatory Assets and Liabilities, Net [Line Items] | |||
Regulatory assets | 2,106 | 2,340 | |
Corporate franchise tax | |||
Schedule of Regulatory Assets and Liabilities, Net [Line Items] | |||
Regulatory assets | 90 | 373 | |
Acadia FRP true-up | |||
Schedule of Regulatory Assets and Liabilities, Net [Line Items] | |||
Regulatory assets | 189 | 377 | |
MATS costs | |||
Schedule of Regulatory Assets and Liabilities, Net [Line Items] | |||
Regulatory assets | 6,405 | $ 7,100 | 0 |
Other | |||
Schedule of Regulatory Assets and Liabilities, Net [Line Items] | |||
Regulatory assets | 298 | 357 | |
Fuel and purchased power | |||
Schedule of Regulatory Assets and Liabilities, Net [Line Items] | |||
Regulatory assets | $ 13,654 | $ 12,910 |
Regulatory Assets and Liabili42
Regulatory Assets and Liabilities, Additional Disclosures (Details) - Cleco Power [Member] - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Feb. 01, 2016 | Dec. 31, 2015 | |
Regulatory Assets [Line Items] | |||
Regulatory Asset representing the unrecovered revenue requirements | $ 296,818 | $ 298,806 | |
MATS costs | |||
Regulatory Assets [Line Items] | |||
Regulatory Asset representing the unrecovered revenue requirements | $ 6,405 | $ 7,100 | $ 0 |
Regulatory Asset, Amortization Period | 3 years |
Fair Value Accounting, Carrying
Fair Value Accounting, Carrying Value and Estimated Fair Value (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Carrying Value [Member] | ||
Financial instruments not measured at fair value | ||
Cash equivalents | $ 107,700 | $ 64,200 |
Restricted cash equivalents | 21,200 | 25,384 |
Long-term debt | 1,283,984 | 1,299,529 |
Estimated Fair Value [Member] | ||
Financial instruments not measured at fair value | ||
Cash equivalents | 107,700 | 64,200 |
Restricted cash equivalents | 21,200 | 25,384 |
Long-term debt | 1,466,817 | 1,463,989 |
Cleco Power [Member] | Carrying Value [Member] | ||
Financial instruments not measured at fair value | ||
Cash equivalents | 106,700 | 62,000 |
Restricted cash equivalents | 21,179 | 25,363 |
Long-term debt | 1,256,984 | 1,265,529 |
Cleco Power [Member] | Estimated Fair Value [Member] | ||
Financial instruments not measured at fair value | ||
Cash equivalents | 106,700 | 62,000 |
Restricted cash equivalents | 21,179 | 25,363 |
Long-term debt | $ 1,439,817 | $ 1,429,989 |
Fair Value Accounting, Fair Val
Fair Value Accounting, Fair Value Measurements and Disclosures(Details) | 3 Months Ended | ||
Mar. 31, 2016USD ($)$ / MW | Mar. 31, 2015USD ($) | Dec. 31, 2015USD ($)$ / MW | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
FTR Forward Price Low | $ / MW | (2.78) | (3.63) | |
FTRs Forward Price High | $ / MW | 3.36 | 4.51 | |
Transfers between fair value levels | $ 0 | $ 0 | |
Cash and Cash Equivalents [Member] | |||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Concentrations of Credit Risk | 107,700,000 | ||
Restricted Cash and Cash Equivalents, Current [Member] | |||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Concentrations of Credit Risk | 4,900,000 | ||
Restricted Cash and Cash Equivalents, Noncurrent [Member] | |||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Concentrations of Credit Risk | 16,300,000 | ||
Cleco Power [Member] | Cash and Cash Equivalents [Member] | |||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Concentrations of Credit Risk | 106,700,000 | ||
Cleco Power [Member] | Restricted Cash and Cash Equivalents, Current [Member] | |||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Concentrations of Credit Risk | 4,900,000 | ||
Cleco Power [Member] | Restricted Cash and Cash Equivalents, Noncurrent [Member] | |||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Concentrations of Credit Risk | 16,300,000 | ||
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 | 7,398,000 | $ 9,949,000 | |
Unrealized losses | (832,000) | (1,710,000) | |
Purchases | 46,000 | 63,000 | |
Settlements | (4,746,000) | (6,489,000) | |
Ending fair value of FTR assets (liabilities), net | 1,866,000 | $ 1,813,000 | |
Measured On A Recurring Basis [Member] | |||
Asset Description [Abstract] | |||
Institutional money market funds | 128,900,000 | 89,584,000 | |
FTR assets | 2,252,000 | 7,673,000 | |
Total Assets | 131,152,000 | 97,257,000 | |
Liability Description [Abstract] | |||
Long-term debt | 1,466,817,000 | 1,463,989,000 | |
FTR liabilities | 386,000 | 275,000 | |
Total Liabilities | 1,467,203,000 | 1,464,264,000 | |
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 | |
FTR assets | 0 | 0 | |
Total Assets | 0 | 0 | |
Liability Description [Abstract] | |||
Long-term debt | 0 | 0 | |
FTR liabilities | 0 | 0 | |
Total Liabilities | 0 | 0 | |
Measured On A Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Asset Description [Abstract] | |||
Institutional money market funds | 128,900,000 | 89,584,000 | |
FTR assets | 0 | 0 | |
Total Assets | 128,900,000 | 89,584,000 | |
Liability Description [Abstract] | |||
Long-term debt | 1,466,817,000 | 1,463,989,000 | |
FTR liabilities | 0 | 0 | |
Total Liabilities | 1,466,817,000 | 1,463,989,000 | |
Measured On A Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Asset Description [Abstract] | |||
Institutional money market funds | 0 | 0 | |
FTR assets | 2,252,000 | 7,673,000 | |
Total Assets | 2,252,000 | 7,673,000 | |
Liability Description [Abstract] | |||
Long-term debt | 0 | 0 | |
FTR liabilities | 386,000 | 275,000 | |
Total Liabilities | 386,000 | 275,000 | |
Measured On A Recurring Basis [Member] | Cleco Power [Member] | |||
Asset Description [Abstract] | |||
Institutional money market funds | 127,879,000 | 87,363,000 | |
FTR assets | 2,252,000 | 7,673,000 | |
Total Assets | 130,131,000 | 95,036,000 | |
Liability Description [Abstract] | |||
Long-term debt | 1,439,817,000 | 1,429,989,000 | |
FTR liabilities | 386,000 | 275,000 | |
Total Liabilities | 1,440,203,000 | 1,430,264,000 | |
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 | |
FTR assets | 0 | 0 | |
Total Assets | 0 | 0 | |
Liability Description [Abstract] | |||
Long-term debt | 0 | 0 | |
FTR liabilities | 0 | 0 | |
Total Liabilities | 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 | 127,879,000 | 87,363,000 | |
FTR assets | 0 | 0 | |
Total Assets | 127,879,000 | 87,363,000 | |
Liability Description [Abstract] | |||
Long-term debt | 1,439,817,000 | 1,429,989,000 | |
FTR liabilities | 0 | 0 | |
Total Liabilities | 1,439,817,000 | 1,429,989,000 | |
Measured On A Recurring Basis [Member] | Cleco Power [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Asset Description [Abstract] | |||
Institutional money market funds | 0 | 0 | |
FTR assets | 2,252,000 | 7,673,000 | |
Total Assets | 2,252,000 | 7,673,000 | |
Liability Description [Abstract] | |||
Long-term debt | 0 | 0 | |
FTR liabilities | 386,000 | 275,000 | |
Total Liabilities | $ 386,000 | $ 275,000 |
Fair Value Accounting, Commodit
Fair Value Accounting, Commodity Contracts (Details) $ in Thousands, MWh in Millions | 3 Months Ended | ||
Mar. 31, 2016USD ($)MMBTUMWh | Mar. 31, 2015USD ($) | Dec. 31, 2015USD ($)MMBTUMWh | |
Cleco Power [Member] | |||
FTRs [Abstract] | |||
Number of FTRs Held (MWh) | MWh | 3.3 | 8.4 | |
FTRs [Member] | Derivatives Not Designated As Hedging Instruments [Member] | Energy risk management assets | |||
FTRs, at Fair Value, Net [Abstract] | |||
FTRs, Fair Value | $ 2,252 | $ 7,673 | |
FTRs [Member] | Derivatives Not Designated As Hedging Instruments [Member] | Energy risk management liabilities | |||
FTRs, at Fair Value, Net [Abstract] | |||
FTRs, Fair Value | 386 | 275 | |
FTRs [Member] | Derivatives Not Designated As Hedging Instruments [Member] | Energy risk management asset and liabilities [Member] | |||
FTRs, at Fair Value, Net [Abstract] | |||
Commodity-related contracts, net | 1,866 | $ 7,398 | |
FTRs [Member] | Derivatives Not Designated As Hedging Instruments [Member] | Electric operations | |||
FTRs [Abstract] | |||
FTR gain | 8,520 | $ 15,508 | |
FTRs [Member] | Derivatives Not Designated As Hedging Instruments [Member] | Power purchased for utility customers | |||
FTRs [Abstract] | |||
FTR loss | (5,723) | (8,037) | |
FTRs [Member] | Derivatives Not Designated As Hedging Instruments [Member] | Electric operations and Power purchased for utility customers [Member] | |||
FTRs [Abstract] | |||
Net gain (loss) on FTRs recognized in income | $ 2,797 | 7,471 | |
Energy Related Derivative [Member] | |||
FTRs [Abstract] | |||
Number of open natural gas positions | MMBTU | 0 | 0 | |
Energy Related Derivative [Member] | Cleco Power [Member] | |||
FTRs [Abstract] | |||
Number of open natural gas positions | MMBTU | 0 | 0 | |
FTRs [Member] | Cleco Power [Member] | Derivatives Not Designated As Hedging Instruments [Member] | Energy risk management assets | |||
FTRs [Abstract] | |||
FTR Unrealized Gain (Loss) | $ (800) | $ (1,700) |
Debt, Short-term Debt (Details)
Debt, Short-term Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
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 | 3 Months Ended | ||
Mar. 31, 2016 | Apr. 13, 2016 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | |||
Long-term Debt Outstanding | $ 1,270,000 | ||
Long-term debt due within one year | 19,967 | $ 19,421 | |
Capital lease payments due within one year | 2,700 | ||
Increase (decrease) in debt instrument, net | (15,900) | ||
Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Increase (decrease) in debt instrument, net | (7,000) | ||
Capital Lease Obligations [Member] | |||
Debt Instrument [Line Items] | |||
Increase (decrease) in debt instrument, net | (700) | ||
Debt Discount and Debt Issuance Cost Amortization [Member] [Member] | |||
Debt Instrument [Line Items] | |||
Increase (decrease) in debt instrument, net | 300 | ||
Cleco Katrina Rita Storm Recovery Bonds [Member] | |||
Debt Instrument [Line Items] | |||
Principal payments for long term debt due within one year | 17,300 | ||
Increase (decrease) in debt instrument, net | (8,500) | ||
Cleco Power [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt Outstanding | 1,240,000 | ||
Long-term debt due within one year | 19,967 | $ 19,421 | |
Capital lease payments due within one year | 2,700 | ||
Increase (decrease) in debt instrument, net | (8,900) | ||
Cleco Power [Member] | Capital Lease Obligations [Member] | |||
Debt Instrument [Line Items] | |||
Increase (decrease) in debt instrument, net | (700) | ||
Cleco Power [Member] | Debt Discount and Debt Issuance Cost Amortization [Member] [Member] | |||
Debt Instrument [Line Items] | |||
Increase (decrease) in debt instrument, net | 300 | ||
Cleco Power [Member] | Cleco Katrina Rita Storm Recovery Bonds [Member] | |||
Debt Instrument [Line Items] | |||
Principal payments for long term debt due within one year | 17,300 | ||
Increase (decrease) in debt instrument, net | $ (8,500) | ||
Subsequent Event [Member] | Parent Company [Member] | Cleco Holdings debt, variable rate, due 2019 [Member] | |||
Debt Instrument [Line Items] | |||
Unsecured Debt | $ 1,350,000 |
Debt, Credit Facilities (Detail
Debt, Credit Facilities (Details) - USD ($) $ in Millions | Apr. 13, 2016 | May. 04, 2016 | Mar. 31, 2016 |
Parent Company [Member] | |||
Line of Credit Facility [Line Items] | |||
Long-term Line of Credit | $ 27 | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 250 | ||
All-in interest rate (in hundredths) | 1.475% | ||
Line of Credit Facility, Remaining Borrowing Capacity | $ 223 | ||
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 | ||
Subsequent Event [Member] | Parent Company [Member] | |||
Line of Credit Facility [Line Items] | |||
Long-term Line of Credit | $ 0 | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 100 | 100 | |
Facility Fees (in hundredths) | 0.275% | ||
Subsequent Event [Member] | Cleco Power [Member] | |||
Line of Credit Facility [Line Items] | |||
Long-term Line of Credit | 0 | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 300 | $ 300 | |
Letters of Credit Outstanding, Amount | $ 2 | ||
Facility Fees (in hundredths) | 0.125% | ||
Subsequent Event [Member] | LIBOR [Member] | Parent Company [Member] | Credit Facility [Member] | |||
Line of Credit Facility [Line Items] | |||
Credit facility, Basis Spread on Variable Rate (in hundredths) | 1.75% | ||
Subsequent Event [Member] | LIBOR [Member] | Cleco Power [Member] | Credit Facility [Member] | |||
Line of Credit Facility [Line Items] | |||
Credit facility, Basis Spread on Variable Rate (in hundredths) | 1.125% | ||
Subsequent Event [Member] | ABR [Member] | Parent Company [Member] | Credit Facility [Member] | |||
Line of Credit Facility [Line Items] | |||
Credit facility, Basis Spread on Variable Rate (in hundredths) | 0.75% | ||
Subsequent Event [Member] | ABR [Member] | Cleco Power [Member] | Credit Facility [Member] | |||
Line of Credit Facility [Line Items] | |||
Credit facility, Basis Spread on Variable Rate (in hundredths) | 0.125% | ||
Credit Facility [Member] | Subsequent Event [Member] | Parent Company [Member] | |||
Line of Credit Facility [Line Items] | |||
Extinguishment of Debt, Amount | $ 27 |
Pension Plan and Employee Ben49
Pension Plan and Employee Benefits, Pension Plan and Other Benefits Plan (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Pension Benefits [Member] | |||
Components of periodic benefit costs [Abstract] | |||
Service cost | $ 2,262,000 | $ 2,526,000 | |
Interest cost | 5,507,000 | 5,127,000 | |
Expected return on plan assets | (6,010,000) | (5,834,000) | |
Amortization [Abstract] | |||
Prior period service (credit) cost | (18,000) | (18,000) | |
Net loss | 2,469,000 | 3,346,000 | |
Net periodic benefit cost | 4,210,000 | 5,147,000 | |
Other Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Current portion of other benefits liability | 3,613,000 | $ 3,613,000 | |
Noncurrent portion of other benefits liability | 38,887,000 | 39,457,000 | |
Components of periodic benefit costs [Abstract] | |||
Service cost | 380,000 | 395,000 | |
Interest cost | 420,000 | 401,000 | |
Expected return on plan assets | 0 | 0 | |
Amortization [Abstract] | |||
Prior period service (credit) cost | 30,000 | 30,000 | |
Net loss | 160,000 | 210,000 | |
Net periodic benefit cost | 990,000 | 1,036,000 | |
Assets Held-in-trust, Noncurrent | 0 | ||
Cleco Power [Member] | Other Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Current portion of other benefits liability | 3,140,000 | 3,140,000 | |
Noncurrent portion of other benefits liability | 33,801,000 | $ 34,300,000 | |
Amortization [Abstract] | |||
Net periodic benefit cost | 800,000 | 900,000 | |
Other Subsidiaries [Member] | Pension Benefits [Member] | |||
Amortization [Abstract] | |||
Net periodic benefit cost | $ 400,000 | $ 400,000 |
Pension Plan and Employee Ben50
Pension Plan and Employee Benefits, SERP (Details) - SERP Benefits [Member] - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Components of periodic benefit costs [Abstract] | |||
Service cost | $ 583 | $ 630 | |
Interest cost | 731 | 758 | |
Prior period service cost | 13 | 13 | |
Net loss | 655 | 726 | |
Net periodic benefit cost | 1,982 | 2,127 | |
Current portion of SERP liability | 3,238 | $ 3,238 | |
Noncurrent portion of SERP liability | 69,632 | 69,049 | |
Cleco Power [Member] | |||
Components of periodic benefit costs [Abstract] | |||
Net periodic benefit cost | 400 | $ 500 | |
Current portion of SERP liability | 1,000 | 1,000 | |
Noncurrent portion of SERP liability | $ 21,371 | $ 21,321 |
Pension Plan and Employee Ben51
Pension Plan and Employee Benefits, 401 (K) Plans (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
401(k) Plan [Abstract] | ||
401(k) Plan expense | $ 1,374 | $ 1,425 |
Other Subsidiaries [Member] | ||
401(k) Plan [Abstract] | ||
401(k) Plan expense | $ 300 | $ 300 |
Income Taxes, Effective Tax Rat
Income Taxes, Effective Tax Rate Reconciliation (Details) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Effective Income Tax Rate [Line Items] | ||
Effective income tax rates | 38.50% | 39.20% |
Cleco Power [Member] | ||
Effective Income Tax Rate [Line Items] | ||
Effective income tax rates | 37.60% | 39.10% |
Income Taxes, Valuation Allowan
Income Taxes, Valuation Allowance (Details) - NMTC [Member] - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
NMTC Carryforward [Line Items] | ||
Deferred Tax Asset | $ 96.8 | $ 96.5 |
Valuation Allowance | $ 0 |
Income Taxes, Net Operating Los
Income Taxes, Net Operating Losses (Details) $ in Millions | Mar. 31, 2016USD ($) |
Federal [Member] | |
Net Operating Losses [Line Items] | |
Net Operating Loss Carryforward | $ 0 |
State [Member] | |
Net Operating Losses [Line Items] | |
Net Operating Loss Carryforward | $ 109.3 |
Income Taxes, Uncertain Tax Pos
Income Taxes, Uncertain Tax Positions (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
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 | 0 | $ 0 | |
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 | ||
Mar. 31, 2016USD ($)entity | Mar. 31, 2015USD ($) | Dec. 31, 2015USD ($) | |
Segment Reporting Information [Line Items] | |||
Number of transmission interconnection facility subsidiaries | entity | 2 | ||
Revenue [Abstract] | |||
Electric operations | $ 250,157 | $ 277,514 | |
Other operations | 17,132 | 17,732 | |
Electric customer credits | (321) | 211 | |
Affiliate revenue | 0 | 0 | |
Operating revenue, net | 266,968 | 295,457 | |
Depreciation and amortization | 38,938 | 37,278 | |
Merger transaction costs | 1,522 | 2,140 | |
Interest charges | 19,553 | 20,122 | |
Interest income | 224 | 297 | |
Federal and state income tax expense (benefit) | 12,137 | 17,328 | |
Net income (loss) | 19,368 | 26,922 | |
Additions to property, plant, and equipment | 35,476 | 36,297 | |
Equity investment in investee | 19,272 | $ 16,822 | |
Total segment assets | 4,333,169 | 4,323,354 | |
Operating Segments [Member] | Cleco Power [Member] | |||
Revenue [Abstract] | |||
Electric operations | 250,157 | 277,514 | |
Other operations | 16,614 | 17,213 | |
Electric customer credits | (321) | 211 | |
Affiliate revenue | 232 | 333 | |
Operating revenue, net | 266,682 | 295,271 | |
Depreciation and amortization | 38,603 | 36,983 | |
Merger transaction costs | 0 | 0 | |
Interest charges | 19,285 | 19,902 | |
Interest income | 179 | 256 | |
Federal and state income tax expense (benefit) | 12,563 | 18,359 | |
Net income (loss) | 20,879 | 28,605 | |
Additions to property, plant, and equipment | 35,453 | 36,232 | |
Equity investment in investee | 19,272 | 16,822 | |
Total segment assets | 4,242,920 | 4,233,337 | |
Operating Segments [Member] | Other [Member] | |||
Revenue [Abstract] | |||
Electric operations | 0 | 0 | |
Other operations | 518 | 520 | |
Electric customer credits | 0 | 0 | |
Affiliate revenue | 13,024 | 12,804 | |
Operating revenue, net | 13,542 | 13,324 | |
Depreciation and amortization | 335 | 295 | |
Merger transaction costs | 1,539 | 2,140 | |
Interest charges | 278 | 115 | |
Interest income | 55 | (63) | |
Federal and state income tax expense (benefit) | (426) | (1,030) | |
Net income (loss) | (1,511) | (1,684) | |
Additions to property, plant, and equipment | 23 | 65 | |
Equity investment in investee | 0 | 0 | |
Total segment assets | (14,679) | 21,471 | |
Intersegment Elimination [Member] | |||
Revenue [Abstract] | |||
Electric operations | 0 | 0 | |
Other operations | 0 | (1) | |
Electric customer credits | 0 | 0 | |
Affiliate revenue | (13,256) | (13,137) | |
Operating revenue, net | (13,256) | (13,138) | |
Depreciation and amortization | 0 | 0 | |
Merger transaction costs | (17) | 0 | |
Interest charges | (10) | 105 | |
Interest income | (10) | 104 | |
Federal and state income tax expense (benefit) | 0 | (1) | |
Net income (loss) | 0 | 1 | |
Additions to property, plant, and equipment | 0 | $ 0 | |
Equity investment in investee | 0 | 0 | |
Total segment assets | $ 104,928 | $ 68,546 |
Regulation and Rates (Details)
Regulation and Rates (Details) - USD ($) $ in Thousands | 15 Months Ended | ||||
Sep. 30, 2015 | Apr. 28, 2016 | Apr. 07, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | |
Regulation and Rates [Line Items] | |||||
Provision for rate refund | $ 3,017 | $ 2,696 | |||
Cleco Power [Member] | |||||
Regulation and Rates [Line Items] | |||||
Provision for rate refund | 3,017 | $ 2,696 | |||
Cleco Power [Member] | FERC [Member] | ROE reduction of transmission rates [Member] | |||||
Regulation and Rates [Line Items] | |||||
Provision for rate refund | 2,800 | ||||
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 | ||||
Cleco Power [Member] | LPSC [Member] | FRP [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% | ||||
Maximum [Member] | Cleco Power [Member] | LPSC [Member] | FRP [Member] | |||||
Regulation and Rates [Line Items] | |||||
Target ROE allowed by FRP (in hundredths) | 10.90% | ||||
Subsequent Event [Member] | Cleco Power [Member] | LPSC [Member] | Merger approval [Member] | |||||
Regulation and Rates [Line Items] | |||||
Refundable Gas Costs | $ 1,200 | $ 136,000 |
Variable Interest Entities (Det
Variable Interest Entities (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Variable Interest Entity [Line Items] | |||
Equity investment in investee | $ 19,272 | $ 16,822 | |
Cash contributions to Oxbow | 2,450 | $ 0 | |
Components of equity method investments [Abstract] | |||
Total equity investment in investee | 19,272 | 16,822 | |
Cleco Power [Member] | |||
Variable Interest Entity [Line Items] | |||
Equity investment in investee | 19,272 | 16,822 | |
Cash contributions to Oxbow | 2,450 | 0 | |
Components of equity method investments [Abstract] | |||
Total equity investment in investee | 19,272 | 16,822 | |
Oxbow [Member] | |||
Equity Method Investment, Summarized Financial Information [Abstract] | |||
Current assets | 1,984 | 2,794 | |
Total assets | 39,375 | 33,763 | |
Current liabilities | 831 | 118 | |
Partners' capital | 38,544 | 33,645 | |
Total liabilities and partners' capital | 39,375 | 33,763 | |
Operating revenue | 2,101 | 854 | |
Operating expenses | 2,101 | 854 | |
Income before taxes | 0 | $ 0 | |
Oxbow [Member] | Property, plant, and equipment, net [Member] | |||
Equity Method Investment, Summarized Financial Information [Abstract] | |||
Other assets | 25,898 | 23,749 | |
Oxbow [Member] | Other Assets [Member] | |||
Equity Method Investment, Summarized Financial Information [Abstract] | |||
Other assets | $ 11,493 | 7,220 | |
Oxbow [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 investee | $ 19,272 | 16,822 | |
Cash contributions to Oxbow | 2,500 | ||
Components of equity method investments [Abstract] | |||
Purchase price | 12,873 | 12,873 | |
Cash contributions | 6,399 | 3,949 | |
Total equity investment in investee | 19,272 | 16,822 | |
Comparison of carrying amount of assets and liabilities to maximum loss exposure [Abstract] | |||
Cleco Power’s 50% equity | 19,272 | 16,822 | |
Cleco Power’s maximum exposure to loss | 19,272 | 16,822 | |
Equity Method Investment, Summarized Financial Information [Abstract] | |||
Partners' capital | $ 38,544 | $ 33,645 |
Litigation, Other Commitments59
Litigation, Other Commitments and Contingencies, and Disclosures about Guarantees, Litigation (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 24 Months Ended | 62 Months Ended | |||
Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Nov. 30, 2014 | Nov. 30, 2013 | Mar. 31, 2016USD ($)plaintiff | Dec. 31, 2015USD ($) | Dec. 31, 2015USD ($) | |
Litigation [Abstract] | |||||||
Provision for rate refund | $ 2,696 | $ 3,017 | $ 2,696 | $ 2,696 | |||
Gulf Coast Spinning start up costs [Member] | |||||||
Litigation [Line Items] | |||||||
Allegations by plaintiff, failure to perform | $ 6,500 | ||||||
Gulf Coast Spinning construction of cotton spinning facility [Member] | |||||||
Litigation [Line Items] | |||||||
Allegations by plaintiff, failure to perform | $ 60,000 | ||||||
Other Litigation Matters [Member] | |||||||
Litigation [Abstract] | |||||||
Loss Contingency, Estimate of Possible Loss | 5,000 | ||||||
Cleco Power [Member] | |||||||
Litigation [Abstract] | |||||||
Provision for rate refund | $ 2,696 | 3,017 | 2,696 | 2,696 | |||
LPSC 2014-2015 Fuel Audit [Member] | Cleco Power [Member] | |||||||
Litigation [Abstract] | |||||||
Fuel Costs | $ 582,600 | ||||||
LPSC Nov2010-Dec2015 EAC audit [Member] | Cleco Power [Member] | |||||||
Litigation [Abstract] | |||||||
Cost of Services, Environmental Remediation | $ 81,200 | ||||||
FERC [Member] | MISO Transmission Rates [Member] | |||||||
Litigation [Abstract] | |||||||
Public Utilities, Approved Return on Equity, Percentage (In hundredths) | 12.38% | ||||||
Public Utilities, Proposed Return on Equity, Percentage (in hundredths) | 10.32% | 6.68% | |||||
Public Utilities, Requested rate increase (decrease), Percentage (in hundredths) | 0.50% | ||||||
FERC [Member] | Transmission Return on Equity [Member] | Cleco Power [Member] | |||||||
Litigation [Abstract] | |||||||
Provision for rate refund | $ 2,800 | ||||||
Pending Litigation [Member] | Petition for breach of fiduciary duties in proposed merger [Member] | |||||||
Litigation [Line Items] | |||||||
Loss Contingency, Number of Plaintiffs | plaintiff | 6 |
Litigation, Other Commitments60
Litigation, Other Commitments and Contingencies, and Disclosures about Guarantees, Off-Balance Sheet Commitments (Details) $ in Millions | Mar. 31, 2016USD ($) |
Performance Guarantee [Member] | |
Other Commitments [Line Items] | |
Guarantor Obligations, Maximum Exposure, Undiscounted | $ 42.4 |
Cleco Corp, Cleco Power, and/or Evangeline [Member] | Indemnification Agreement [Member] | |
Other Commitments [Line Items] | |
Guarantor Obligations, Maximum Exposure, Undiscounted | 40 |
Cleco Corp, Cleco Power, and/or Evangeline [Member] | Indemnification Agreement INCLUDING fundamental organizational structure [Member] | |
Other Commitments [Line Items] | |
Guarantor Obligations, Maximum Exposure, Undiscounted | 400 |
Cleco Power [Member] | Cleco Corp, Cleco Power, and/or Evangeline [Member] | Indemnification Agreement [Member] | |
Other Commitments [Line Items] | |
Guarantor Obligations, Maximum Exposure, Undiscounted | 40 |
Cleco Power [Member] | Cleco Corp, Cleco Power, and/or Evangeline [Member] | Indemnification Agreement INCLUDING fundamental organizational structure [Member] | |
Other Commitments [Line Items] | |
Guarantor Obligations, Maximum Exposure, Undiscounted | $ 400 |
Litigation, Other Commitments61
Litigation, Other Commitments and Contingencies, and Disclosures about Guarantees, On-Balance Sheet Guarantees (Details) - Cleco Power [Member] - Financial Guarantee [Member] $ in Millions | Mar. 31, 2016USD ($) |
Disclosures about Guarantees [Abstract] | |
Guarantor Obligations, Maximum Exposure, Undiscounted | $ 106.5 |
Guarantor Obligations, Current Carrying Value | $ 3.8 |
Litigation, Other Commitments62
Litigation, Other Commitments and Contingencies, and Disclosures about Guarantees, Other Commitments (Details) - NMTC [Member] - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | 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 | $ 283.7 | |
Net tax benefits and cash to be received from the Fund | 302 | |
Difference between equity contributions and total benefits received | 18.3 | |
Tax Benefits in Excess of Capital Contributions | 17.8 | |
Tax benefits not utilized | $ 99.6 | |
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 | Mar. 31, 2016 | Dec. 31, 2015 |
Related Party Transaction [Line Items] | ||
Accounts receivable - affiliate | $ 782 | $ 1,908 |
Accounts payable - affiliate | 7,613 | 6,598 |
Cleco Holdings [Member] | ||
Related Party Transaction [Line Items] | ||
Accounts receivable - affiliate | 89 | 653 |
Accounts payable - affiliate | 664 | 564 |
Support Group [Member] | ||
Related Party Transaction [Line Items] | ||
Accounts receivable - affiliate | 692 | 1,254 |
Accounts payable - affiliate | 6,949 | 6,034 |
Other [Member] | ||
Related Party Transaction [Line Items] | ||
Accounts receivable - affiliate | 1 | 1 |
Accounts payable - affiliate | $ 0 | $ 0 |
Accumulated Other Comprehensi64
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Accumulated other comprehensive loss [Roll Forward] | ||
Balances | $ 1,674,841 | |
Net current-period other comprehensive income [Abstract] | ||
Net current-period other comprehensive income | 581 | $ 662 |
Balances | 1,670,110 | |
Accumulated Other Comprehensive Income (Loss) [Member] | ||
Accumulated other comprehensive loss [Roll Forward] | ||
Balances | (26,585) | (32,665) |
Net current-period other comprehensive income [Abstract] | ||
Amounts reclassified from accumulated other comprehensive income, net of tax | 528 | 609 |
Net current-period other comprehensive income | 581 | 662 |
Balances | (26,004) | (32,003) |
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 |
Postretirement Benefit Net Loss [Member] | ||
Accumulated other comprehensive loss [Roll Forward] | ||
Balances | (20,857) | (26,726) |
Net current-period other comprehensive income [Abstract] | ||
Amounts reclassified from accumulated other comprehensive income, net of tax | 528 | 609 |
Net current-period other comprehensive income | 528 | 609 |
Balances | (20,329) | (26,117) |
Net Loss on Cash Flow Hedges [Member] | ||
Accumulated other comprehensive loss [Roll Forward] | ||
Balances | (5,728) | (5,939) |
Net current-period other comprehensive income [Abstract] | ||
Net current-period other comprehensive income | 53 | 53 |
Balances | (5,675) | (5,886) |
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 |
Cleco Power [Member] | ||
Accumulated other comprehensive loss [Roll Forward] | ||
Balances | 1,552,404 | |
Net current-period other comprehensive income [Abstract] | ||
Net current-period other comprehensive income | 253 | (34) |
Balances | 1,548,536 | |
Cleco Power [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | ||
Accumulated other comprehensive loss [Roll Forward] | ||
Balances | (17,092) | (17,288) |
Net current-period other comprehensive income [Abstract] | ||
Amounts reclassified from accumulated other comprehensive income, net of tax | 200 | (87) |
Net current-period other comprehensive income | 253 | (34) |
Balances | (16,839) | (17,322) |
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 |
Cleco Power [Member] | Postretirement Benefit Net Loss [Member] | ||
Accumulated other comprehensive loss [Roll Forward] | ||
Balances | (11,364) | (11,349) |
Net current-period other comprehensive income [Abstract] | ||
Amounts reclassified from accumulated other comprehensive income, net of tax | 200 | (87) |
Net current-period other comprehensive income | 200 | (87) |
Balances | (11,164) | (11,436) |
Cleco Power [Member] | Net Loss on Cash Flow Hedges [Member] | ||
Accumulated other comprehensive loss [Roll Forward] | ||
Balances | (5,728) | (5,939) |
Net current-period other comprehensive income [Abstract] | ||
Net current-period other comprehensive income | 53 | 53 |
Balances | (5,675) | (5,886) |
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 |
Agreement and Plan of Merger (D
Agreement and Plan of Merger (Details) - USD ($) $ / shares in Units, $ in Millions | Apr. 13, 2016 | Mar. 31, 2016 | Dec. 31, 2015 |
Business Acquisition [Line Items] | |||
Common stock, par value (in dollars per share) | $ 1 | $ 1 | |
Subsequent Event [Member] | Parent Company [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 | ||
Additional contingency fees paid upon the completion of the Merger | $ 12 |