Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Oct. 31, 2018 | |
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 | Non-accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding (in shares) | 0 | |
Cleco Power | ||
Entity Information [Line Items] | ||
Entity Registrant Name | CLECO POWER LLC | |
Entity Central Index Key | 18,672 | |
Entity Filer Category | Non-accelerated Filer |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Operating revenue | ||||
Electric operations | $ 341,062 | $ 317,589 | $ 897,486 | $ 839,080 |
Other operations | 20,186 | 21,282 | 61,067 | 59,627 |
Affiliate revenue | 0 | 0 | 0 | 0 |
Gross operating revenue | 361,248 | 338,871 | 958,553 | 898,707 |
Electric customer credits | (2,992) | (372) | (24,276) | (1,045) |
Operating revenue, net | 358,256 | 338,499 | 934,277 | 897,662 |
Operating expenses | ||||
Fuel used for electric generation | 130,987 | 103,217 | 275,565 | 261,063 |
Power purchased for utility customers | 29,608 | 39,355 | 132,921 | 114,675 |
Other operations | 37,395 | 25,464 | 95,875 | 81,025 |
Maintenance | 18,302 | 18,031 | 71,613 | 66,955 |
Depreciation and amortization | 43,763 | 42,228 | 128,076 | 124,630 |
Taxes other than income taxes | 12,091 | 12,414 | 35,674 | 36,790 |
Total operating expenses | 272,146 | 240,709 | 739,724 | 685,138 |
Operating income | 86,110 | 97,790 | 194,553 | 212,524 |
Interest income | 1,832 | 354 | 4,043 | 1,046 |
Allowance for equity funds used during construction | 3,829 | 2,096 | 9,416 | 4,446 |
Other income | 2,214 | 2,557 | 3,195 | 4,402 |
Other expense | (3,378) | (3,977) | (10,306) | (10,196) |
Interest charges | ||||
Interest charges, including amortization of debt issuance costs, premiums, and discounts, net | 33,072 | 31,110 | 98,059 | 94,077 |
Allowance for borrowed funds used during construction | (1,244) | (648) | (3,165) | (1,277) |
Total interest charges | 31,828 | 30,462 | 94,894 | 92,800 |
Income before income taxes | 58,779 | 68,358 | 106,007 | 119,422 |
Federal and state income tax expense | 11,419 | 23,054 | 21,947 | 42,381 |
Net income | 47,360 | 45,304 | 84,060 | 77,041 |
CLECO POWER | ||||
Operating revenue | ||||
Electric operations | 343,482 | 320,009 | 904,746 | 847,417 |
Other operations | 20,186 | 20,768 | 61,066 | 58,083 |
Affiliate revenue | 223 | 209 | 651 | 649 |
Gross operating revenue | 363,891 | 340,986 | 966,463 | 906,149 |
Electric customer credits | (2,992) | (372) | (24,276) | (1,045) |
Operating revenue, net | 360,899 | 340,614 | 942,187 | 905,104 |
Operating expenses | ||||
Fuel used for electric generation | 130,987 | 103,217 | 275,565 | 261,063 |
Power purchased for utility customers | 29,608 | 39,355 | 132,921 | 114,675 |
Other operations | 32,619 | 26,816 | 86,736 | 84,732 |
Maintenance | 18,218 | 17,812 | 71,434 | 66,496 |
Depreciation and amortization | 41,687 | 40,049 | 121,796 | 118,280 |
Taxes other than income taxes | 11,717 | 12,008 | 34,548 | 35,412 |
Total operating expenses | 264,836 | 239,257 | 723,000 | 680,658 |
Operating income | 96,063 | 101,357 | 219,187 | 224,446 |
Interest income | 1,606 | 332 | 3,560 | 926 |
Allowance for equity funds used during construction | 3,829 | 2,096 | 9,416 | 4,446 |
Other income | 678 | 1,463 | 2,215 | 1,839 |
Other expense | (2,929) | (3,163) | (8,637) | (7,554) |
Interest charges | ||||
Interest charges, including amortization of debt issuance costs, premiums, and discounts, net | 19,139 | 17,789 | 56,823 | 53,931 |
Allowance for borrowed funds used during construction | (1,244) | (648) | (3,165) | (1,277) |
Total interest charges | 17,895 | 17,141 | 53,658 | 52,654 |
Income before income taxes | 81,352 | 84,944 | 172,083 | 171,449 |
Federal and state income tax expense | 18,016 | 30,092 | 39,724 | 63,010 |
Net income | $ 63,336 | $ 54,852 | $ 132,359 | $ 108,439 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Net income | $ 47,360 | $ 45,304 | $ 84,060 | $ 77,041 |
Other comprehensive income (loss), net of tax | ||||
Postretirement benefits gain (loss), net of tax expense (benefit) | 261 | (44) | 551 | (2,175) |
Total other comprehensive income (loss), net of tax | 261 | (44) | 551 | (2,175) |
Comprehensive income, net of tax | 47,621 | 45,260 | 84,611 | 74,866 |
CLECO POWER | ||||
Net income | 63,336 | 54,852 | 132,359 | 108,439 |
Other comprehensive income (loss), net of tax | ||||
Postretirement benefits gain (loss), net of tax expense (benefit) | 312 | 167 | 812 | (60) |
Amortization of interest rate derivatives to earnings | 112 | 53 | 240 | 159 |
Total other comprehensive income (loss), net of tax | 424 | 220 | 1,052 | 99 |
Comprehensive income, net of tax | $ 63,760 | $ 55,072 | $ 133,411 | $ 108,538 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Tax expense (benefit) of postretirement benefits gain (loss) | $ 26 | $ (26) | $ 128 | $ (1,359) |
CLECO POWER | ||||
Tax expense (benefit) of postretirement benefits gain (loss) | 110 | 104 | 287 | (38) |
Tax expense on amortization of interest rate derivatives to earnings | $ (26) | $ 33 | $ 19 | $ 99 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Current assets | ||
Cash and cash equivalents | $ 185,557 | $ 119,040 |
Restricted cash and cash equivalents | 5,247 | 13,081 |
Customer accounts receivable (less allowance for doubtful accounts) | 80,531 | 60,117 |
Other accounts receivable | 24,252 | 30,806 |
Unbilled revenue | 42,366 | 36,398 |
Fuel inventory, at average cost | 57,388 | 87,520 |
Materials and supplies, at average cost | 87,471 | 85,404 |
Energy risk management assets | 23,163 | 7,396 |
Accumulated deferred fuel | 39,898 | 13,980 |
Cash surrender value of company-/trust-owned life insurance policies | 85,751 | 83,117 |
Prepayments | 5,907 | 9,050 |
Regulatory assets | 20,327 | 24,670 |
Other current assets | 561 | 1,146 |
Total current assets | 658,419 | 571,725 |
Property/Utility, plant, and equipment | ||
Property, plant, and equipment | 3,711,105 | 3,594,525 |
Accumulated depreciation | (278,575) | (192,348) |
Net property, plant, and equipment | 3,432,530 | 3,402,177 |
Construction work in progress | 284,417 | 186,629 |
Total property/utility, plant, and equipment, net | 3,716,947 | 3,588,806 |
Equity investment in investee | 18,172 | 18,172 |
Goodwill | 1,490,797 | 1,490,797 |
Restricted cash and cash equivalents | 18,850 | 20,081 |
Regulatory assets | 412,561 | 432,358 |
Intangible assets | 91,782 | 114,850 |
Other deferred charges | 54,307 | 41,593 |
Total assets | 6,461,835 | 6,278,382 |
Current liabilities | ||
Long-term debt due within one year | 21,114 | 19,193 |
Accounts payable | 150,941 | 147,562 |
Customer deposits | 60,969 | 58,582 |
Provision for rate refund | 26,923 | 4,206 |
Taxes payable, net | 67,362 | 22,698 |
Interest accrued | 40,927 | 14,703 |
Deferred compensation | 11,987 | 12,132 |
Other current liabilities | 32,240 | 21,278 |
Total current liabilities | 412,463 | 300,354 |
Long-term liabilities and deferred credits | ||
Accumulated deferred federal and state income taxes, net | 625,331 | 614,812 |
Postretirement benefit obligations | 244,811 | 242,135 |
Regulatory liabilities - deferred taxes, net | 135,911 | 140,426 |
Restricted storm reserve | 15,215 | 14,469 |
Other deferred credits | 31,248 | 33,724 |
Total long-term liabilities and deferred credits | 1,052,516 | 1,045,566 |
Long-term debt, net | 2,876,388 | 2,836,105 |
Total liabilities | 4,341,367 | 4,182,025 |
Commitments and contingencies (Note 12) | ||
Member’s equity | ||
Membership interest | 2,069,376 | 2,069,376 |
Retained earnings | 53,462 | 29,902 |
Accumulated other comprehensive loss | (2,370) | (2,921) |
Total member’s equity | 2,120,468 | 2,096,357 |
Total liabilities and member’s equity | 6,461,835 | 6,278,382 |
CLECO POWER | ||
Current assets | ||
Cash and cash equivalents | 59,376 | 69,816 |
Restricted cash and cash equivalents | 5,247 | 13,081 |
Customer accounts receivable (less allowance for doubtful accounts) | 80,531 | 60,117 |
Other accounts receivable | 23,712 | 30,680 |
Unbilled revenue | 42,366 | 36,398 |
Fuel inventory, at average cost | 57,388 | 87,520 |
Materials and supplies, at average cost | 87,471 | 85,404 |
Energy risk management assets | 23,163 | 7,396 |
Accumulated deferred fuel | 39,898 | 13,980 |
Cash surrender value of company-/trust-owned life insurance policies | 20,445 | 20,278 |
Prepayments | 4,610 | 7,236 |
Regulatory assets | 11,470 | 15,812 |
Other current assets | 1,933 | 1,830 |
Total current assets | 457,610 | 449,548 |
Property/Utility, plant, and equipment | ||
Property, plant, and equipment | 5,002,367 | 4,893,484 |
Accumulated depreciation | (1,786,148) | (1,712,590) |
Net property, plant, and equipment | 3,216,219 | 3,180,894 |
Construction work in progress | 283,840 | 185,507 |
Total property/utility, plant, and equipment, net | 3,500,059 | 3,366,401 |
Equity investment in investee | 18,172 | 18,172 |
Restricted cash and cash equivalents | 18,828 | 20,060 |
Regulatory assets | 246,003 | 257,408 |
Intangible assets | 26,084 | 41,701 |
Other deferred charges | 51,051 | 35,451 |
Total assets | 4,317,807 | 4,188,741 |
Current liabilities | ||
Long-term debt due within one year | 21,114 | 19,193 |
Accounts payable | 139,879 | 134,374 |
Accounts payable - affiliate | 10,574 | 8,697 |
Customer deposits | 60,969 | 58,582 |
Provision for rate refund | 26,923 | 4,206 |
Taxes payable, net | 39,511 | 31,611 |
Interest accrued | 22,655 | 7,083 |
Other current liabilities | 24,870 | 16,172 |
Total current liabilities | 346,495 | 279,918 |
Long-term liabilities and deferred credits | ||
Accumulated deferred federal and state income taxes, net | 667,133 | 656,362 |
Postretirement benefit obligations | 173,559 | 173,747 |
Regulatory liabilities - deferred taxes, net | 135,911 | 140,426 |
Restricted storm reserve | 15,215 | 14,469 |
Other deferred credits | 29,097 | 31,665 |
Total long-term liabilities and deferred credits | 1,020,915 | 1,016,669 |
Long-term debt, net | 1,387,707 | 1,341,475 |
Total capitalization | 2,950,397 | 2,892,154 |
Commitments and contingencies (Note 12) | ||
Member’s equity | ||
Total member’s equity | 1,562,690 | 1,550,679 |
Total liabilities and member’s equity | $ 4,317,807 | $ 4,188,741 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Customer accounts receivable, allowance for doubtful accounts | $ 990 | $ 1,457 |
CLECO POWER | ||
Customer accounts receivable, allowance for doubtful accounts | $ 990 | $ 1,457 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | ||
Operating activities | |||
Net income | $ 84,060 | $ 77,041 | |
Adjustments to reconcile net income to net cash provided by operating activities | |||
Depreciation and amortization | 140,887 | 140,433 | |
Provision for doubtful accounts | 323 | 2,694 | |
Unearned compensation expense | 4,112 | 2,809 | |
Allowance for equity funds used during construction | (9,416) | (4,446) | |
Deferred income taxes | 5,876 | 41,192 | |
Deferred fuel costs | (32,903) | 4,231 | |
Cash surrender value of company-/trust-owned life insurance | (2,635) | (3,940) | |
Changes in assets and liabilities | |||
Accounts receivable | (25,487) | (44,139) | |
Unbilled revenue | (5,968) | (4,643) | |
Fuel inventory and materials and supplies | 27,951 | (6,885) | |
Prepayments | 2,446 | 5,509 | |
Accounts payable | (139) | (22,325) | |
Customer deposits | 10,272 | 9,317 | |
Provision for merger commitments | (2,684) | (9,244) | |
Postretirement benefit obligations | 3,355 | 3,789 | |
Regulatory assets and liabilities, net | 11,439 | 9,430 | |
Other deferred accounts | (582) | (6,546) | |
Taxes accrued | 43,308 | 22,233 | |
Interest accrued | 26,223 | 23,772 | |
Other operating | 4,728 | 6,607 | |
Net cash provided by operating activities | 285,166 | 246,889 | |
Investing activities | |||
Additions to property, plant, and equipment | (194,619) | (185,609) | |
Allowance for equity funds used during construction | 9,416 | 4,446 | |
Reimbursement for property loss | 1,258 | 137 | |
Issuance of note receivable | (16,800) | 0 | |
Return of equity investment in tax credit fund | 2,775 | 1,223 | |
Other investing | 934 | 460 | |
Net cash used in investing activities | (197,036) | (179,343) | |
Financing activities | |||
Proceeds from short-term debt, net | 0 | 6,470 | |
Draws on credit facilities | 0 | 134,000 | |
Payments on credit facilities | 0 | (134,000) | |
Issuances of long-term debt | 50,000 | 0 | |
Repayment of long-term debt | (19,193) | (17,896) | |
Distributions | (60,500) | (83,955) | |
Other financing | (985) | (2,188) | |
Net cash used in financing activities | (30,678) | (97,569) | |
Net increase (decrease) in cash, cash equivalents, restricted cash, and restricted cash equivalents | 57,452 | (30,023) | |
Cash, cash equivalents, restricted cash, and restricted cash equivalents at beginning of period | 152,202 | [1] | 69,571 |
Cash, cash equivalents, restricted cash, and restricted cash equivalents at end of period | 209,654 | [2] | 39,548 |
Supplementary cash flow information | |||
Interest paid, net of amount capitalized | 67,158 | 64,555 | |
Income taxes paid (refunded), net | 272 | (6) | |
Supplementary non-cash investing and financing activities | |||
Accrued additions to property, plant, and equipment | 54,294 | 13,083 | |
Non-cash additions to property, plant, and equipment | 643 | 3,015 | |
Incurrence of capital lease obligation - barges | 16,800 | 0 | |
CLECO POWER | |||
Operating activities | |||
Net income | 132,359 | 108,439 | |
Adjustments to reconcile net income to net cash provided by operating activities | |||
Depreciation and amortization | 126,515 | 123,911 | |
Provision for doubtful accounts | 323 | 2,592 | |
Unearned compensation expense | 1,172 | 1,479 | |
Allowance for equity funds used during construction | (9,416) | (4,446) | |
Deferred income taxes | 5,950 | 12,847 | |
Deferred fuel costs | (32,903) | 4,231 | |
Changes in assets and liabilities | |||
Accounts receivable | (25,141) | (44,115) | |
Accounts receivable, affiliate | 1,456 | 1,221 | |
Unbilled revenue | (5,968) | (4,643) | |
Fuel inventory and materials and supplies | 27,951 | (6,885) | |
Prepayments | 1,929 | 4,774 | |
Accounts payable | 1,982 | (19,648) | |
Accounts payable, affiliate | (2,005) | 611 | |
Customer deposits | 10,272 | 9,317 | |
Provision for merger commitments | (2,684) | (9,244) | |
Postretirement benefit obligations | 3,054 | 3,673 | |
Regulatory assets and liabilities, net | 9,948 | 7,939 | |
Other deferred accounts | (155) | (6,093) | |
Taxes accrued | 6,544 | 31,258 | |
Interest accrued | 15,572 | 13,207 | |
Other operating | 4,192 | 5,537 | |
Net cash provided by operating activities | 270,947 | 235,962 | |
Investing activities | |||
Additions to property, plant, and equipment | (193,708) | (183,604) | |
Allowance for equity funds used during construction | 9,416 | 4,446 | |
Reimbursement for property loss | 1,258 | 137 | |
Issuance of note receivable | (16,800) | 0 | |
Other investing | 934 | 1,090 | |
Net cash used in investing activities | (198,900) | (177,931) | |
Financing activities | |||
Proceeds from short-term debt, net | 0 | 6,470 | |
Draws on credit facilities | 0 | 106,000 | |
Payments on credit facilities | 0 | (106,000) | |
Issuances of long-term debt | 50,000 | 0 | |
Repayment of long-term debt | (19,193) | (17,896) | |
Distributions | (121,400) | (75,000) | |
Other financing | (960) | (1,933) | |
Net cash used in financing activities | (91,553) | (88,359) | |
Net increase (decrease) in cash, cash equivalents, restricted cash, and restricted cash equivalents | (19,506) | (30,328) | |
Cash, cash equivalents, restricted cash, and restricted cash equivalents at beginning of period | 102,957 | [3] | 67,955 |
Cash, cash equivalents, restricted cash, and restricted cash equivalents at end of period | 83,451 | [4] | 37,627 |
Supplementary cash flow information | |||
Interest paid, net of amount capitalized | 37,764 | 36,241 | |
Supplementary non-cash investing and financing activities | |||
Accrued additions to property, plant, and equipment | 54,166 | 13,072 | |
Non-cash additions to property, plant, and equipment | 643 | 3,015 | |
Incurrence of capital lease obligation - barges | $ 16,800 | $ 0 | |
[1] | Includes cash and cash equivalents of $119,040, current restricted cash and cash equivalents of $13,081, and non-current restricted cash and cash equivalents of $20,081. | ||
[2] | Includes cash and cash equivalents of $185,557, current restricted cash and cash equivalents of $5,247, and non-current restricted cash and cash equivalents of $18,850. | ||
[3] | Includes cash and cash equivalents of $69,816, current restricted cash and cash equivalents of $13,081, and non-current restricted cash and cash equivalents of $20,060. | ||
[4] | Includes cash and cash equivalents of $59,376, current restricted cash and cash equivalents of $5,247, and non-current restricted cash and cash equivalents of $18,828. |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Cash and cash equivalents | $ 185,557 | $ 119,040 |
Restricted cash and cash equivalents, current | 5,247 | 13,081 |
Restricted cash and cash equivalents, noncurrent | 18,850 | 20,081 |
CLECO POWER | ||
Cash and cash equivalents | 59,376 | 69,816 |
Restricted cash and cash equivalents, current | 5,247 | 13,081 |
Restricted cash and cash equivalents, noncurrent | $ 18,828 | $ 20,060 |
Condensed Consolidated Statem_6
Condensed Consolidated Statements of Changes in Member’s Equity (Unaudited) - 9 months ended Sep. 30, 2018 - USD ($) $ in Thousands | Total | MEMBERSHIP INTEREST | RETAINED EARNINGS | AOCI | CLECO POWER | CLECO POWERMEMBERSHIP INTEREST | CLECO POWERAOCI |
Balances, beginning of period at Dec. 31, 2017 | $ 2,096,357 | $ 2,069,376 | $ 29,902 | $ (2,921) | $ 1,550,679 | $ 1,564,362 | $ (13,683) |
Increase (Decrease) in Equity [Roll Forward] | |||||||
Distributions | (60,500) | (60,500) | (121,400) | (121,400) | |||
Net income | 84,060 | 84,060 | 132,359 | 132,359 | |||
Other comprehensive income, net of tax | 551 | 551 | 1,052 | 1,052 | |||
Balances, end of period at Sep. 30, 2018 | $ 2,120,468 | $ 2,069,376 | $ 53,462 | $ (2,370) | $ 1,562,690 | $ 1,575,321 | $ (12,631) |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2018 | |
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 Holdings and its majority-owned subsidiaries after elimination of intercompany accounts and transactions. Basis of Presentation The Condensed Consolidated Financial Statements of Cleco and Cleco Power have been prepared in accordance with GAAP for interim financial information and with the instructions to the 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, 2017. These Condensed Consolidated Financial Statements, in the opinion of management, reflect all normal recurring adjustments that are necessary to fairly state the financial position and results of operations of Cleco and Cleco Power. Amounts reported in Cleco and Cleco Power’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 3 — “Recent Authoritative Guidance.” 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 and Cleco Power’s restricted cash and cash equivalents consisted of: Cleco (THOUSANDS) AT SEPT. 30, 2018 AT DEC. 31, 2017 Current Cleco Katrina/Rita’s storm recovery bonds $ 3,504 $ 8,597 Cleco Power’s charitable contributions 1,200 1,200 Cleco Power’s rate credit escrow 543 3,284 Total current 5,247 13,081 Non-current Diversified Lands’ mitigation escrow 22 21 Cleco Power’s future storm restoration costs 15,165 14,456 Cleco Power’s charitable contributions 2,841 3,575 Cleco Power’s rate credit escrow 822 2,029 Total non-current 18,850 20,081 Total restricted cash and cash equivalents $ 24,097 $ 33,162 Cleco Power (THOUSANDS) AT SEPT. 30, 2018 AT DEC. 31, 2017 Current Cleco Katrina/Rita’s storm recovery bonds $ 3,504 $ 8,597 Charitable contributions 1,200 1,200 Rate credit escrow 543 3,284 Total current 5,247 13,081 Non-current Future storm restoration costs 15,165 14,456 Charitable contributions 2,841 3,575 Rate credit escrow 822 2,029 Total non-current 18,828 20,060 Total restricted cash and cash equivalents $ 24,075 $ 33,141 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. The change from December 31, 2017 , to September 30, 2018 , was due to Cleco Katrina/Rita using $19.2 million for scheduled storm recovery bond principal payments and $2.6 million for related interest payments, partially offset by collections of $16.7 million net of administration fees. Fair Value Measurements and Disclosures Various accounting pronouncements require certain assets and liabilities to be measured at their fair values. Some assets and liabilities are required to be measured at their fair value each reporting period, while others are required to be measured only one time, generally the date of acquisition or debt issuance. Cleco and Cleco Power 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 5 — “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 would be 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 charge. There were no open natural gas positions at September 30, 2018 , or December 31, 2017 . In 2015, the LPSC approved a long-term natural gas hedging pilot program that requires Cleco Power to establish a proposal for a program that will be designed to provide gas price stability for a minimum of five years. Cleco Power’s proposal was submitted to the LPSC in July 2017. An ALJ has been assigned to the docket, and a status conference was held in October 2017. On February 28, 2018, Cleco Power responded to LPSC data requests for the gas hedging docket. Cleco Power is currently awaiting a new procedural schedule to be established. Cleco Power purchases FTRs in auctions facilitated by MISO. The majority of its FTRs are purchased in annual auctions during the second quarter, but Cleco Power may purchase additional FTRs in monthly auctions. FTRs are derivative instruments that 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 records FTRs at their estimated fair value when purchased. Each accounting period, Cleco Power adjusts the carrying value of FTRs to their estimated fair value 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 Power’s Condensed Consolidated Balance Sheets. Realized gains or losses on settled FTRs are recorded in Fuel used for electric generation on Cleco Power’s Condensed Consolidated Statements of Income. For more information on FTRs, see Note 5 — “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 and Cleco Power 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 each reporting period presented, the Registrants did not enter into any contracts to mitigate the volatility in interest rate risk. |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Note 2 — Revenue Recognition Cleco adopted the accounting guidance for revenue recognition and all related amendments on January 1, 2018, using the modified retrospective method. The guidance affects entities that enter into contracts for the transfer of nonfinancial 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. Application of the new revenue standard did not result in a cumulative effect adjustment to the opening balance of retained earnings. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. The impact of the adoption of the new standard is not material to the results of operations, financial condition, or cash flows of the Registrants. Revenue from Contracts with Customers Retail Utility Revenue Cleco’s revenue from contracts with customers is generated primarily from Cleco Power’s regulated revenue to retail residential, commercial, and industrial customers. Cleco recognizes retail revenue from these contracts as a series, and progress towards satisfaction of the performance obligation is measured using an output method based on kWh delivered. Accordingly, revenue from electricity sales is recognized as energy is delivered to the customer. Cleco bills retail customers, based on rates regulated by the LPSC, on a monthly basis with payments generally due within 20 days of the invoice date. Cleco records retail revenue under the invoice practical expedient, which states that if an entity has a right to consideration from a customer in an amount that corresponds directly with the value to the customer of the entity’s performance completed to date, the entity may recognize revenue in the amount that the entity has a right to invoice. Included in Cleco’s retail revenue is unbilled electric revenue, which represents the amount customers will be billed for services rendered from the last meter reading to the end of the respective accounting period. Cleco uses actual customer energy consumption data available from AMI to calculate unbilled revenue. Wholesale Revenue Wholesale revenue is generated primarily through the sale of energy and capacity to cooperatives, municipalities, and the MISO transmission provider. Cleco also enters into transactions through MISO for spot energy sales which are transacted in the Day-Ahead Energy and Operating Reserves Market and the Real-Time Energy and Operating Reserves Market. The electricity revenue performance obligations, representing both energy and capacity, are satisfied as a series of performance obligations, and progress towards satisfaction of the performance obligations are measured using an output method. The energy performance obligation measure of progress is based on kWh delivered. The capacity performance obligation measure of progress is based on time elapsed and will be recognized each month as Cleco’s generating units stand ready to deliver electricity to the customer. Cleco charges its wholesale customers market based rates that are subject to FERC’s triennial market power analysis. Cleco recognizes wholesale revenue, inclusive of both performance obligations, under the invoice practical expedient for the amount Cleco has the right to invoice. Transmission Revenue Transmission revenue is earned under a tariff with MISO. The performance obligation of transmission service is satisfied as service is provided. Revenue is recognized upon delivery of the transmission service. Cleco’s revenue from the transmission of electricity is recorded based on a FERC-approved annual formula rate mechanism. This mechanism provides for an annual filing of revenue requirements with rates effective June 1 of each year. Other Revenue Other revenue from contracts with customers, which is not a significant source of Cleco’s revenue, includes Teche Unit 3 SSR revenue, connection or other fees, and electric customer credits. The performance obligation under these contracts is satisfied and revenue is recognized as control of the products is delivered or services are rendered. Revenue Unrelated to Contracts with Customers Certain energy-related transactions, where Cleco records the change in value of those contracts, qualify as derivative contracts and are recorded pursuant to derivatives and hedging accounting guidance. Disaggregated Revenue Operating revenue, net for the three and nine months ended September 30, 2018 , was as follows: FOR THE THREE MONTHS ENDED SEPT. 30, 2018 (THOUSANDS) CLECO POWER OTHER ELIMINATIONS TOTAL Revenue from contracts with customers Retail revenue Residential (1) $ 139,162 $ — $ — $ 139,162 Commercial (1) 79,829 — — 79,829 Industrial (1) 43,380 — — 43,380 Other retail (1) 4,039 — — 4,039 Surcharge 6,206 — — 6,206 Total retail revenue $ 272,616 $ — $ — $ 272,616 Wholesale, net (1) 63,624 (2,420 ) (2) — 61,204 Transmission 14,718 — — 14,718 Other (3) 2,477 — — 2,477 Total revenue from contracts with customers $ 353,435 $ (2,420 ) $ — $ 351,015 Revenue unrelated to contracts with customers Affiliate $ 223 $ 22,765 $ (22,988 ) $ — Other (4) 7,241 — — 7,241 Total revenue unrelated to contracts with customers 7,464 22,765 (22,988 ) 7,241 Operating revenue, net $ 360,899 $ 20,345 $ (22,988 ) $ 358,256 (1) Includes fuel recovery revenue. (2) Amortization of intangible assets related to wholesale power supply agreements. (3) Other revenue from contracts with customers includes $4.9 million of other miscellaneous fee revenue, $0.6 million of Teche Unit 3 SSR revenue, net of $0.2 million of reserves for capital expenditures, partially offset by $3.0 million of electric customer credits. (4) Includes unrealized gains associated with FTRs. FOR THE NINE MONTHS ENDED SEPT. 30, 2018 (THOUSANDS) CLECO POWER OTHER ELIMINATIONS TOTAL Revenue from contracts with customers Retail revenue Residential (1) $ 338,357 $ — $ — $ 338,357 Commercial (1) 218,389 — — 218,389 Industrial (1) 121,445 — — 121,445 Other retail (1) 11,633 — — 11,633 Surcharge 17,637 — — 17,637 Total retail revenue $ 707,461 $ — $ — $ 707,461 Wholesale, net (1) 165,255 (7,260 ) (2) — 157,995 Transmission 41,166 — — 41,166 Other (3) (4,375 ) 1 — (4,374 ) Total revenue from contracts with customers $ 909,507 $ (7,259 ) $ — $ 902,248 Revenue unrelated to contracts with customers Affiliate $ 651 $ 55,707 $ (56,358 ) $ — Other (4) 32,029 — — 32,029 Total revenue unrelated to contracts with customers 32,680 55,707 (56,358 ) 32,029 Operating revenue, net $ 942,187 $ 48,448 $ (56,358 ) $ 934,277 (1) Includes fuel recovery revenue. (2) Amortization of intangible assets related to wholesale power supply agreements. (3) Other revenue from contracts with customers includes $24.3 million of electric customer credits, partially offset by $13.4 million of other miscellaneous fee revenue, and $6.5 million of Teche Unit 3 SSR revenue, net of $2.4 million of reserves for capital expenditures. (4) Includes unrealized gains associated with FTRs. Transaction Price Allocated to Remaining Performance Obligations For contracts that are greater than one year, the following table discloses (1) the aggregate amount of the transaction price allocated to performance obligations that are unsatisfied (or partially unsatisfied) as of September 30, 2018 , and (2) when Cleco expects to recognize this revenue: REMAINING PERFORMANCE OBLIGATIONS (THOUSANDS) Three months ending Dec. 31, 2018 $ 13,020 Years ending Dec. 31, 2019 28,490 2020 7,068 2021 7,068 2022 6,468 Thereafter 10,210 Total remaining performance obligations $ 72,324 Unsatisfied performance obligations primarily relate to stand-ready obligations as part of fixed capacity minimums. |
Recent Authoritative Guidance
Recent Authoritative Guidance | 9 Months Ended |
Sep. 30, 2018 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Authoritative Guidance | Note 3 — Recent Authoritative Guidance The Registrants adopted, or will adopt, the recent authoritative guidance listed below on their respective effective dates. 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. In transition, lessees and lessors can recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. Alternatively, an additional transition method is available which allows an entity to initially apply the new lease standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. Management expects to elect this practical expedient, as well as those that permit the Registrants to retain their current lease assessment and classifications for existing leases at the effective date and to not apply the new guidance to land easements that exist or expire before the effective date. Management is currently working through an adoption plan which includes the evaluation of lease contracts, new business processes, including changes to current recordkeeping systems, and the need for additional internal controls. Other than an expected increase in assets and liabilities, the full impact of the amended guidance has not been determined. Management will continue to evaluate the impact of this guidance, including any additional clarifying amendments issued during implementation. The amended guidance could have a material impact on the results of operations, financial condition, or cash flows of the Registrants. In November 2016, FASB amended guidance for certain cash flow issues. The amended guidance requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash. Therefore, amounts generally described as restricted cash and cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The adoption of this guidance was effective for fiscal years beginning after December 15, 2017, including interim periods within those years. The amended guidance was adopted at January 1, 2018, by moving the presentation of restricted cash and restricted cash equivalents in the statement of cash flows to net cash flows of total cash, cash equivalents, restricted cash, and restricted cash equivalents. This amendment was applied using a retrospective transition method to each period presented. This guidance impacted the presentation of the cash flows statement, as noted above, but did not have an impact on the results of operations or financial condition of the Registrants. In March 2017, FASB amended guidance related to defined benefit pension and other postretirement benefit plans. The new amendment requires an entity to present service cost in the same line item as other current employee compensation costs and to present the remaining components of net benefit cost in a separate line item outside of operating items. The amendment also allows only the service cost component of net benefit cost to be eligible for capitalization within property, plant, and equipment. The non-service costs will continue to be capitalized and recovered from ratepayers as approved by FERC. Beginning January 1, 2018, the non-service costs capitalized for ratemaking purposes were reflected as a regulatory asset or liability for GAAP. The adoption of this guidance was effective for annual periods beginning after December 15, 2017, including interim periods within those years. This amendment was applied retrospectively for the presentation of the service cost in the income statement while the capitalization of the service cost was applied prospectively. This guidance did not have a significant impact on the results of operations, financial condition, or cash flows of the Registrants. Cleco’s change in presentation resulted in a decrease in Other operations expenses and an increase in Other expense of $2.7 million and $8.4 million for the three and nine months ended September 30, 2017, respectively. Cleco Power’s change in presentation resulted in a decrease in Other operations expenses and an increase in Other expense of $1.9 million and $5.7 million for the three and nine months ended September 30, 2017, respectively. In February 2018, FASB amended guidance that permits, but does not require, companies to reclassify stranded tax effects from the TCJA from AOCI to retained earnings. The adoption of this guidance is effective for annual reporting periods beginning after December 15, 2018, including interim periods within those years. Early adoption is permitted. Management is currently evaluating this guidance and the impact it may have on the results of operations, financial condition, or cash flows of the Registrants. In August 2018, FASB issued guidance that allows for the deferral of certain implementation costs incurred in a cloud computing arrangement. The adoption of this guidance is effective for annual reporting periods beginning after December 15, 2019, including interim periods within those years. Early adoption is permitted. Management is currently evaluating this guidance and the impact it may have on the results of operations, financial condition, or cash flows of the Registrants. In August 2018, FASB issued guidance updating the disclosure framework for Defined Benefit Plans. Under the new guidance, entities will no longer be required to disclose the amount in other comprehensive income expected to be recognized as a component of net periodic benefit cost over the next fiscal year or the impact of a one-percentage point increase and a one-percentage point decrease in the assumed health care cost trend. The new framework will require additional disclosures including a narrative description of the reasons for significant gains/losses affecting the benefit obligation. The adoption of this guidance is effective for fiscal years ending after December 15, 2020. Early adoption is permitted. 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 August 2018, FASB issued guidance updating the disclosure framework for Fair Value Measurement. Under the new guidance, entities will no longer be required to disclose the amount of and reasons for transfers between level 1 and level 2 of the fair value hierarchy, the policy of timing of transfers between levels, or the valuation policies and procedures for level 3 fair value measurements. The new framework will require additional disclosures around level 3 fair value measurements, including the range, weighted average, and time period used to develop significant unobservable inputs. The adoption of this guidance is effective for fiscal years beginning after December 15, 2019. Early adoption is permitted. Management does not expect this guidance to have a significant impact on the results of operations, financial condition, or cash flows of the Registrants. |
Regulatory Assets and Liabiliti
Regulatory Assets and Liabilities | 9 Months Ended |
Sep. 30, 2018 | |
Regulated Operations [Abstract] | |
Regulatory Assets and Liabilities | Note 4 — Regulatory Assets and Liabilities Cleco 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 believes these regulatory assets will be fully recoverable; however, if in the future, as a result of regulatory changes or competition, Cleco’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 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 could require discontinuance of the application of the authoritative guidance on regulated operations. The following table summarizes Cleco Power’s regulatory assets and liabilities: (THOUSANDS) AT SEPT. 30, 2018 AT DEC. 31, 2017 Regulatory liabilities - deferred taxes, net $ (135,911 ) $ (140,426 ) Regulatory liabilities - other $ (2,718 ) $ — Regulatory assets Mining costs $ 1,912 $ 3,823 Interest costs 4,271 4,499 AROs 2,961 2,762 Postretirement costs 133,584 142,764 Tree trimming costs 8,535 7,193 Training costs 6,435 6,552 Surcredits, net 289 2,173 AMI deferred revenue requirement 3,817 4,227 Emergency declarations 3,378 4,131 Production operations and maintenance expenses 5,039 8,625 AFUDC equity gross-up 71,530 71,205 Acadia Unit 1 acquisition costs 2,257 2,336 Financing costs 8,015 8,293 MISO integration costs — 468 Coughlin transaction costs 945 968 Corporate franchise tax, net 1,001 153 MATS costs — 2,564 Non-service cost of postretirement benefits 3,484 — Other 20 484 Total regulatory assets 257,473 273,220 Accumulated deferred fuel 39,898 13,980 Total regulatory assets, net $ 158,742 $ 146,774 The following table summarizes Cleco’s net regulatory assets and liabilities: (THOUSANDS) AT SEPT. 30, 2018 AT DEC. 31, 2017 Total Cleco Power regulatory assets, net $ 158,742 $ 146,774 Cleco Merger adjustments (1) Fair value of long-term debt 140,812 147,145 Postretirement costs 19,884 21,375 Financing costs 8,365 8,623 Debt issuance costs 6,356 6,665 Total Cleco regulatory assets, net $ 334,159 $ 330,582 (1) Cleco regulatory assets include acquisition accounting adjustments as a result of the Merger. Regulatory Liabilities - Other On July 1, 2018, Cleco Power began collecting the revenue requirement related to the St. Mary Clean Energy Center project based on an expected commercial operation date in the third quarter of 2018. The project is now expected to be commercially operational in the first quarter of 2019. Cleco Power recorded a regulatory liability for the over collections and will continue to increase the regulatory liability until the project is in service. Cleco Power expects to return the total over collection as part of the July 1, 2019, FRP rate adjustment. Non-service Cost of Postretirement Benefits On January 1, 2018, FASB’s amended guidance related to defined benefit pension and other postretirement plans became effective. The amendment allows only the service cost component of net benefit cost to be eligible for capitalization within property, plant, and equipment. The non-service costs will continue to be capitalized and recovered from ratepayers as approved by FERC . Beginning January 1, 2018, the non-service cost previously eligible for capitalization into property, plant, and equipment are being deferred to a regulatory asset and will be amortized over the estimated lives of the respective assets. For more information on FASB’s guidance related to defined benefit pension and other postretirement plans, see Note 3 — “Recent Authoritative Guidance.” |
Fair Value Accounting
Fair Value Accounting | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Accounting | Note 5 — Fair Value Accounting The amounts reflected on Cleco and Cleco Power’s Condensed Consolidated Balance Sheets at September 30, 2018 , and December 31, 2017 , for cash equivalents, restricted cash equivalents, accounts receivable, other accounts receivable, short-term debt, and accounts payable approximate fair value because of their short-term nature. Cleco applies the provisions of the fair value measurement standard to its non-recurring, non-financial measurements including business combinations, as well as impairment related to goodwill and other long-lived assets. The following tables summarize the carrying value and estimated market value of Cleco and Cleco Power’s financial instruments not measured at fair value on Cleco and Cleco Power’s Condensed Consolidated Balance Sheets: Cleco AT SEPT. 30, 2018 AT DEC. 31, 2017 (THOUSANDS) CARRYING VALUE* FAIR VALUE CARRYING VALUE* FAIR VALUE Long-term debt $ 2,891,664 $ 2,831,604 $ 2,866,955 $ 2,921,325 * The carrying value of long-term debt does not include deferred issuance costs of $10.7 million and $11.6 million at September 30, 2018 , and December 31, 2017 , respectively. Cleco Power AT SEPT. 30, 2018 AT DEC. 31, 2017 (THOUSANDS) CARRYING VALUE* FAIR VALUE CARRYING VALUE* FAIR VALUE Long-term debt $ 1,400,852 $ 1,491,691 $ 1,369,810 $ 1,535,234 * The carrying value of long-term debt does not include deferred issuance costs of $8.6 million and $9.1 million at September 30, 2018 , and December 31, 2017 , respectively. 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. The fair value of long-term debt is classified as Level 2 in the fair value hierarchy. Fair Value Measurements and Disclosures Cleco classifies assets and liabilities that are measured 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 on a recurring basis: Cleco CLECO CONSOLIDATED FAIR VALUE MEASUREMENTS AT REPORTING DATE (THOUSANDS) AT SEPT. 30, 2018 QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) AT DEC. 31, 2017 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 $ 199,531 $ — $ 199,531 $ — $ 144,302 $ — $ 144,302 $ — FTRs 23,163 — — 23,163 7,396 — — 7,396 Total assets $ 222,694 $ — $ 199,531 $ 23,163 $ 151,698 $ — $ 144,302 $ 7,396 Liability description FTRs $ 903 $ — $ — $ 903 $ 352 $ — $ — $ 352 Total liabilities $ 903 $ — $ — $ 903 $ 352 $ — $ — $ 352 Cleco Power CLECO POWER FAIR VALUE MEASUREMENTS AT REPORTING DATE (THOUSANDS) AT SEPT. 30, 2018 QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) AT DEC. 31, 2017 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 $ 78,110 $ — $ 78,110 $ — $ 95,681 $ — $ 95,681 $ — FTRs 23,163 — — 23,163 7,396 — — 7,396 Total assets $ 101,273 $ — $ 78,110 $ 23,163 $ 103,077 $ — $ 95,681 $ 7,396 Liability description FTRs $ 903 $ — $ — $ 903 $ 352 $ — $ — $ 352 Total liabilities $ 903 $ — $ — $ 903 $ 352 $ — $ — $ 352 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 Cleco and Cleco Power: FOR THE THREE MONTHS ENDED SEPT. 30, FOR THE NINE MONTHS ENDED SEPT. 30, (THOUSANDS) 2018 2017 2018 2017 Beginning balance $ 25,133 $ 17,943 $ 7,044 $ 7,683 Unrealized gains (losses)* 4,520 1,591 6,153 (791 ) Purchases 1,251 419 26,734 23,537 Settlements (8,644 ) (7,066 ) (17,671 ) (17,542 ) Ending balance $ 22,260 $ 12,887 $ 22,260 $ 12,887 * Unrealized gains and losses are reported through Accumulated deferred fuel on Cleco and Cleco Power’s Condensed Consolidated Balance Sheets. The following table quantifies the significant unobservable inputs used in developing the fair value of Level 3 positions as of September 30, 2018 , and December 31, 2017 : FAIR VALUE VALUATION TECHNIQUE SIGNIFICANT UNOBSERVABLE INPUTS FORWARD PRICE RANGE (THOUSANDS, EXCEPT FORWARD PRICE RANGE) ASSETS LIABILITIES LOW HIGH FTRs at Sept. 30, 2018 $ 23,163 $ 903 RTO auction pricing FTR price - per MWh $ (3.04 ) $ 7.48 FTRs at Dec. 31, 2017 $ 7,396 $ 352 RTO auction pricing FTR price - per MWh $ (2.95 ) $ 6.33 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. Cleco’s 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. 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. Cleco’s Level 3 assets and liabilities are valued using RTO auction prices. Cleco has consistently applied the Level 2 and Level 3 fair value techniques from fiscal period to fiscal period. Significant increases or decreases in any of those inputs in isolation would result in a significantly different fair value measurement. The assets and liabilities reported at fair value are grouped into classes based on the underlying nature and risks associated with the individual asset or liability. At September 30, 2018 , 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 Cleco’s Condensed Consolidated Balance Sheets in cash and cash equivalents, current restricted cash and cash equivalents, and non-current restricted cash and cash equivalents of $175.6 million , $5.2 million , and $18.7 million , respectively, at September 30, 2018 , and $111.1 million , $13.1 million , and $20.1 million , respectively, at December 31, 2017 . At Cleco Power, the institutional money market funds were reported on Cleco Power’s Condensed Consolidated Balance Sheets in cash and cash equivalents, current restricted cash and cash equivalents, and non-current restricted cash and cash equivalents of $54.2 million , $5.2 million , and $18.7 million , respectively, at September 30, 2018 , and $62.5 million , $13.1 million , and $20.1 million , respectively, at December 31, 2017 . 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 is 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. During the nine months ended September 30, 2018 , and the year ended December 31, 2017 , 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 September 30, 2018 , and December 31, 2017 : DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS (THOUSANDS) BALANCE SHEET LINE ITEM AT SEPT. 30, 2018 AT DEC. 31, 2017 Commodity-related contracts FTRs Current Energy risk management assets $ 23,163 $ 7,396 Current Other current liabilities 903 352 Commodity-related contracts, net $ 22,260 $ 7,044 The following table presents the effect of derivatives not designated as hedging instruments on Cleco and Cleco Power’s Condensed Consolidated Statements of Income for the three and nine months ended September 30, 2018 , and 2017 : AMOUNT OF GAIN(LOSS) RECOGNIZED IN INCOME ON DERIVATIVES FOR THE THREE MONTHS ENDED SEPT. 30, FOR THE NINE MONTHS ENDED SEPT. 30, (THOUSANDS) DERIVATIVES LINE ITEM 2018 2017 2018 2017 Commodity contracts FTRs (1) Electric operations $ 13,665 $ 14,062 $ 49,656 $ 35,172 FTRs (1) Power purchased for utility customers (7,902 ) (7,767 ) (20,595 ) (18,759 ) Total $ 5,763 $ 6,295 $ 29,061 $ 16,413 (1) For the three and nine months ended September 30, 2018 , unrealized gains associated with FTRs of $4.5 million and $ 6.2 million , respectively, were reported through Accumulated deferred fuel on Cleco and Cleco Power’s Condensed Consolidated Balance Sheets. For the three and nine months ended September 30, 2017 , unrealized gains (losses) associated with FTRs of $1.6 million and $(0.8) million , respectively, were reported through Accumulated deferred fuel on Cleco and Cleco Power’s Condensed Consolidated Balance Sheets. The total volume of FTRs that Cleco Power had outstanding at September 30, 2018 , and December 31, 2017 , was 13.0 million MWh and 9.0 million MWh, respectively. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Debt | Note 6 — Debt On December 18, 2017, Cleco Power entered into an agreement for the issuance and sale in a private placement of an aggregate principal amount of $175.0 million of senior notes. The senior notes were issued in two tranches. The first tranche was issued on December 18, 2017, with a principal amount of $25.0 million at an interest rate of 2.94% and $100.0 million at an interest rate of 3.08% , with final maturity dates of December 16, 2022, and 2023, respectively. The second tranche was issued on March 26, 2018, with a principal amount of $50.0 million at an interest rate of 3.17% , with a final maturity date of December 16, 2024. The proceeds from the issuances and sales were used for capital investments and general utility purposes. On February 6, 2018, Cleco Power entered into a debt commitment letter in connection with the Purchase and Sale Agreement. For more information on the debt commitment letter, see Note 16 — “Plan of Acquisition.” On July 31, 2018, Cleco amended its $300.0 million bank term loan agreement and its $100.0 million revolving credit facility agreement to release any and all collateral from all of its debt obligations under those agreements. As a result of the release of collateral, Moody’s and Fitch replaced Cleco Holdings’ senior secured debt rating with a senior unsecured debt rating. For more information on Cleco’s credit ratings and their impacts, see Note 12 — “Litigation, Other Commitment and Contingencies, and Disclosures about Guarantees — Risks and Uncertainties.” On April 2, 2018, Cleco Power entered into a capital lease agreement for use of 42 dedicated barges to transport petroleum coke and limestone to Madison Unit 3. For more information on the capital lease agreement, see Note 12 — “Litigation, Other Commitments and Contingencies, and Disclosures about Guarantees — Other Commitments — Fuel Transportation Agreement.” |
Pension Plan and Employee Benef
Pension Plan and Employee Benefits | 9 Months Ended |
Sep. 30, 2018 | |
Retirement Benefits [Abstract] | |
Pension Plan and Employee Benefits | Note 7 — 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 2017 and does not expect to make any contributions in 2018. 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 assumed discount rate, changes in the funding regulations, and actual returns on fund assets. Cleco Power is the plan sponsor and Support Group is the plan administrator. Cleco’s retirees may be eligible to receive Other Benefits. Dependents of Cleco’s retirees may also be eligible to receive Other Benefits with the exception of life insurance benefits. Cleco recognizes expected costs of Other Benefits during the periods in which the benefits are earned. The non-service components of net periodic pension and Other Benefits cost are included in Other expense within Cleco and Cleco Power’s Condensed Consolidated Statements of Income. Net periodic pension and Other Benefits cost for the three and nine months ended September 30, 2018 , and 2017 were as follows: PENSION BENEFITS OTHER BENEFITS FOR THE THREE MONTHS ENDED SEPT. 30, FOR THE THREE MONTHS ENDED SEPT. 30, (THOUSANDS) 2018 2017 2018 2017 Components of periodic benefit costs Service cost $ 2,377 $ 2,260 $ 336 $ 314 Interest cost 5,215 5,412 361 372 Expected return on plan assets (5,943 ) (6,016 ) — — Amortizations Prior period service credit (18 ) (18 ) — — Net loss (gain) 3,078 2,502 96 (32 ) Net periodic benefit cost $ 4,709 $ 4,140 $ 793 $ 654 PENSION BENEFITS OTHER BENEFITS FOR THE NINE MONTHS ENDED SEPT. 30, FOR THE NINE MONTHS ENDED SEPT. 30, (THOUSANDS) 2018 2017 2018 2017 Components of periodic benefit costs Service cost $ 7,130 $ 6,779 $ 1,011 $ 1,084 Interest cost 15,869 16,235 1,076 1,176 Expected return on plan assets (17,818 ) (18,048 ) — — Amortizations Prior period service credit (53 ) (53 ) — — Net loss (gain) 8,998 7,506 105 (37 ) Net periodic benefit cost $ 14,126 $ 12,419 $ 2,192 $ 2,223 Because Cleco Power is the pension plan sponsor and the related trust holds the assets, the net unfunded status of the pension plan is reflected at Cleco Power. The liability of Cleco’s other subsidiaries is transferred with a like amount of assets to Cleco Power monthly. The expense of the pension plan related to Cleco’s other subsidiaries for the three and nine months ended September 30, 2018 , was $0.5 million and $1.5 million , respectively. The expense of the pension plan related to Cleco’s other subsidiaries for the three and nine months ended September 30, 2017 , was $0.5 million and $1.4 million , respectively. Cleco Holdings is the plan sponsor for the Other Benefits plans. There are no assets set aside in a trust, and the liabilities are reported on the individual subsidiaries’ financial statements. The expense related to Other Benefits reflected in Cleco Power’s Condensed Consolidated Statements of Income for the three and nine months ended September 30, 2018 , was $0.9 million and $2.5 million , respectively. The expense related to Other Benefits reflected in Cleco Power’s Condensed Consolidated Statements of Income for the three and nine months ended September 30, 2017 , was $0.8 million and $2.5 million , respectively. The current and non-current portions of the Other Benefits liability for Cleco and Cleco Power at September 30, 2018 , and December 31, 2017 , were as follows: Cleco (THOUSANDS) AT SEPT. 30, 2018 AT DEC. 31, 2017 Current $ 4,061 $ 4,061 Non-current $ 37,879 $ 39,142 Cleco Power (THOUSANDS) AT SEPT. 30, 2018 AT DEC. 31, 2017 Current $ 3,525 $ 3,525 Non-current $ 33,013 $ 34,033 SERP Certain Cleco officers are covered by SERP. 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, other than as described below. SERP is a non-qualified, non-contributory, defined benefit pension plan. Generally, 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. SERP benefits are reduced by retirement 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 amount the employee would have received under the terms of the original 401(k) Plan. In accordance with the SERP plan document and the Merger Agreement, four executive officers received enhanced benefits, and upon termination of employment, two of these executive officers received accelerated vesting. Another executive officer received enhanced SERP benefits, net of other postretirement benefits, as part of a separation agreement. Two executive officers’ SERP benefits were capped as of December 31, 2017, with regard to final compensation; however, adjustments will continue with regard to age and tenure with Cleco. Additionally, these executive officers had their annual bonuses set at target rather than actual awards for the years 2016 and 2017 for the average incentive award portion of their SERP benefit calculation. A third executive officer’s SERP benefit amount will be set at a specified amount based upon the year of separation. Management reviews current market trends as it evaluates Cleco’s future compensation strategy. 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. The life insurance policies issued on SERP participants designate the rabbi trust as the beneficiary. 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 that employed the officer. Cleco Power is the plan sponsor and Support Group is the plan administrator. The non-service components of net periodic benefit cost related to SERP are included in Other expense within Cleco and Cleco Power’s Condensed Consolidated Statements of Income. Net periodic benefit cost related to SERP for the three and nine months ended September 30, 2018 , and 2017 were as follows: FOR THE THREE MONTHS ENDED SEPT. 30, FOR THE NINE MONTHS (THOUSANDS) 2018 2017 2018 2017 Components of periodic benefit costs Service cost $ 136 $ 123 $ 407 $ 370 Interest cost 769 810 2,296 2,430 Amortizations Prior period service credit (35 ) (57 ) (104 ) (124 ) Net loss 723 536 2,180 1,560 Net periodic benefit cost 1,593 1,412 4,779 4,236 Special/contractual termination benefits — — — 315 Total benefit cost $ 1,593 $ 1,412 $ 4,779 $ 4,551 There was a remeasurement of SERP in March 2017 to reflect a special termination benefit resulting from an executive officer’s separation agreement. On the date of the remeasurement, the discount rate decreased from 4.22% to 4.08% . This remeasurement resulted in a special termination benefit for the executive officer of $0.3 million . The total expense related to SERP reflected on Cleco Power’s Condensed Consolidated Statements of Income for the three and nine months ended September 30, 2018 , was $0.4 million and $1.1 million , respectively. The total expense related to SERP reflected on Cleco Power’s Condensed Consolidated Statements of Income for the three and nine months ended September 30, 2017 , was $0.3 million and $0.9 million , respectively. Liabilities relating to SERP are reported on the individual subsidiaries’ financial statements. The current and non-current portions of the SERP liability for Cleco and Cleco Power at September 30, 2018 , and December 31, 2017 , were as follows: Cleco (THOUSANDS) AT SEPT. 30, 2018 AT DEC. 31, 2017 Current $ 4,471 $ 4,471 Non-current $ 79,300 $ 79,868 Cleco Power (THOUSANDS) AT SEPT. 30, 2018 AT DEC. 31, 2017 Current $ 929 $ 929 Non-current $ 12,914 $ 16,589 401(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 are made in the form of cash. Cash contributions are invested in proportion to the participant’s voluntary contribution investment choices. Participation in the 401(k) Plan is voluntary, and all active Cleco employees are eligible to participate. Cleco’s 401(k) Plan expense for the three and nine months ended September 30, 2018 , and 2017 was as follows: FOR THE THREE MONTHS ENDED SEPT. 30, FOR THE NINE MONTHS ENDED SEPT. 30, (THOUSANDS) 2018 2017 2018 2017 401(k) Plan expense $ 1,424 $ 1,386 $ 4,716 $ 4,259 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 the three and nine months ended September 30, 2018 , and 2017 was as follows: FOR THE THREE MONTHS ENDED SEPT. 30, FOR THE NINE MONTHS (THOUSANDS) 2018 2017 2018 2017 401(k) Plan expense $ 254 $ 234 $ 865 $ 710 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 8 — Income Taxes Effective Tax Rates The following tables summarize the effective income tax rates for Cleco and Cleco Power for the three and nine months ended September 30, 2018 , and 2017 : Cleco FOR THE THREE MONTHS ENDED SEPT. 30, FOR THE NINE MONTHS ENDED SEPT. 30, 2018 2017 2018 2017 Effective tax rate 19.4 % 33.7 % 20.7 % 35.5 % Cleco Power FOR THE THREE MONTHS ENDED SEPT. 30, FOR THE NINE MONTHS ENDED SEPT. 30, 2018 2017 2018 2017 Effective tax rate 22.1 % 35.4 % 23.1 % 36.8 % For the three and nine months ended September 30, 2018 , and 2017 , the effective income tax rates for both Cleco and Cleco Power were different than the federal statutory rate primarily due to permanent tax differences; the flowthrough of state tax benefits, including AFUDC equity; tax returns filed in 2017; and state tax expense. Uncertain Tax Positions Cleco classifies all interest related to uncertain tax positions as a component of interest payable and interest expense. At September 30, 2018 , and December 31, 2017 , Cleco and Cleco Power had no interest payable related to uncertain tax positions. For the nine months ended September 30, 2018 , and 2017 , Cleco and Cleco Power had no interest expense related to uncertain tax positions. At September 30, 2018 , Cleco had no liability for uncertain tax positions. Cleco estimates that it is reasonably possible that the balance of unrecognized tax benefits as of September 30, 2018 , 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 2015, 2016, and 2017. 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 2018 tax year. The state income tax years that remain subject to examination by the Louisiana Department of Revenue are 2014, 2015, and 2016. Cleco classifies income tax penalties as a component of other expense. For the nine months ended September 30, 2018 , and 2017 , no penalties were recognized. 2017 Tax Reform On December 22, 2017, the President signed into law the TCJA. The TCJA includes significant changes to the Internal Revenue Code, as amended, including amendments which significantly change the taxation of business entities and includes specific provisions related to rate regulated activities, including Cleco Power. The most significant change that impacts Cleco is the reduction of the corporate federal income tax rate from 35% to 21% . The SEC Staff recognized the complexity of reflecting the impacts of the TCJA and issued guidance which clarifies accounting for income taxes if information is not yet available or complete. The SEC provides up to one year to complete the required analysis and accounting (the measurement period). The Registrants made a reasonable estimate for the measurement and accounting of certain effects of the TCJA, which were reflected in the December 31, 2017, financial statements. The accounting for these provisional items decreased deferred income tax expense for Cleco and Cleco Power by $46.3 million and $14.3 million , respectively, for the year ended December 31, 2017. The impacts of the TCJA also decreased the ADIT liability for Cleco and Cleco Power by $394.9 million and $362.9 million , respectively, at December 31, 2017. The impacts of the TCJA, including the effects on income tax expense, regulatory liabilities, and effects on future periods, are provisional and subject to change. Due to the timing and complexity of the TCJA, further regulatory guidance and additional analysis is required to finalize the accounting treatment of ADIT. For the nine months ended September 30, 2018 , there were no adjustments in the ADIT liability related to the TCJA for Cleco or Cleco Power. Cleco expects that any final adjustments to the provisional amounts will be recorded in the fourth quarter of 2018, which could have a material effect on the results of operations of Cleco. For more information on the regulatory treatment, see Note 10 — “Regulation and Rates — TCJA.” |
Disclosures about Segments
Disclosures about Segments | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Disclosures about Segments | Note 9 — Disclosures about Segments Cleco’s reportable segment is 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 CEO with discrete financial information and, at least quarterly, present discrete financial information to Cleco and Cleco Power’s Boards of Managers. The reportable segment prepares budgets that are presented to and approved by Cleco and Cleco Power’s Boards of Managers. The column shown as Other in the following tables includes the holding company, a shared services subsidiary, two transmission interconnection facility subsidiaries, an investment subsidiary, and a subsidiary formed to facilitate the Purchase and Sale Agreement with NRG Energy and NRG South Central. On December 29, 2017, Cleco sold the transmission assets owned by Attala and Perryville, the two subsidiaries that owned and operated the transmission interconnection facilities. After December 29, 2017, the remaining operations of Attala and Perryville were minimal. On February 6, 2018, Cleco Cajun entered into the Purchase and Sale Agreement with NRG Energy and NRG South Central. Upon the expected closing of the transaction, Cleco anticipates Cleco Cajun will be a new reportable segment. For more information on the Purchase and Sale Agreement and related transactions, see Note 16 — “Plan of Acquisition.” The financial results in the following tables 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. SEGMENT INFORMATION FOR THE THREE MONTHS ENDED SEPT. 30, 2018 (THOUSANDS) CLECO POWER OTHER ELIMINATIONS CONSOLIDATED Revenue Electric operations $ 343,482 $ (2,420 ) $ — $ 341,062 Other operations 20,186 — — 20,186 Affiliate revenue 223 22,765 (22,988 ) — Electric customer credits (2,992 ) — — (2,992 ) Operating revenue, net $ 360,899 $ 20,345 $ (22,988 ) $ 358,256 Depreciation and amortization $ 41,687 $ 2,076 $ — $ 43,763 Interest income $ 1,606 $ 310 $ (84 ) $ 1,832 Interest charges $ 17,895 $ 14,017 $ (84 ) $ 31,828 Federal and state income tax expense (benefit) $ 18,016 $ (6,597 ) $ — $ 11,419 Net income (loss) $ 63,336 $ (15,975 ) $ (1 ) $ 47,360 2017 (THOUSANDS) CLECO POWER OTHER ELIMINATIONS CONSOLIDATED Revenue Electric operations $ 320,009 $ (2,420 ) $ — $ 317,589 Other operations 20,768 514 — 21,282 Affiliate revenue 209 13,517 (13,726 ) — Electric customer credits (372 ) — — (372 ) Operating revenue, net $ 340,614 $ 11,611 $ (13,726 ) $ 338,499 Depreciation and amortization $ 40,049 $ 2,179 $ — $ 42,228 Interest income $ 332 $ 31 $ (9 ) $ 354 Interest charges $ 17,141 $ 13,331 $ (10 ) $ 30,462 Federal and state income tax expense (benefit) $ 30,092 $ (7,038 ) $ — $ 23,054 Net income (loss) $ 54,852 $ (9,548 ) $ — $ 45,304 SEGMENT INFORMATION FOR THE NINE MONTHS ENDED SEPT. 30, 2018 (THOUSANDS) CLECO POWER OTHER ELIMINATIONS CONSOLIDATED Revenue Electric operations $ 904,746 $ (7,260 ) $ — $ 897,486 Other operations 61,066 1 — 61,067 Affiliate revenue 651 55,707 (56,358 ) — Electric customer credits (24,276 ) — — (24,276 ) Operating revenue, net $ 942,187 $ 48,448 $ (56,358 ) $ 934,277 Depreciation and amortization $ 121,796 $ 6,281 $ (1 ) $ 128,076 Interest income $ 3,560 $ 652 $ (169 ) $ 4,043 Interest charges $ 53,658 $ 41,409 $ (173 ) $ 94,894 Federal and state income tax expense (benefit) $ 39,724 $ (17,777 ) $ — $ 21,947 Net income (loss) $ 132,359 $ (48,299 ) $ — $ 84,060 Additions to property, plant, and equipment $ 193,708 $ 911 $ — $ 194,619 Equity investment in investees (1) $ 18,172 $ — $ — $ 18,172 Goodwill (1) $ 1,490,797 $ — $ — $ 1,490,797 Total segment assets (1) $ 5,808,604 $ 688,066 $ (34,835 ) $ 6,461,835 (1) Balances as of September 30, 2018 2017 (THOUSANDS) CLECO POWER OTHER ELIMINATIONS CONSOLIDATED Revenue Electric operations $ 847,417 $ (8,337 ) $ — $ 839,080 Other operations 58,083 1,544 59,627 Affiliate revenue 649 41,882 (42,531 ) — Electric customer credits (1,045 ) — — (1,045 ) Operating revenue, net $ 905,104 $ 35,089 $ (42,531 ) $ 897,662 Depreciation and amortization $ 118,280 $ 6,351 $ (1 ) $ 124,630 Interest income $ 926 $ 271 $ (151 ) $ 1,046 Interest charges $ 52,654 $ 40,297 $ (151 ) $ 92,800 Federal and state income tax expense (benefit) $ 63,010 $ (20,629 ) $ — $ 42,381 Net income (loss) $ 108,439 $ (31,398 ) $ — $ 77,041 Additions to property, plant, and equipment $ 183,604 $ 2,005 $ — $ 185,609 Equity investment in investees (1) $ 18,172 $ — $ — $ 18,172 Goodwill (1) $ 1,490,797 $ — $ — $ 1,490,797 Total segment assets (1) $ 5,679,538 $ 619,943 $ (21,099 ) $ 6,278,382 (1) Balances as of December 31, 2017 |
Regulation and Rates
Regulation and Rates | 9 Months Ended |
Sep. 30, 2018 | |
Regulated Operations [Abstract] | |
Regulation and Rates | Note 10 — Regulation and Rates Transmission ROE Two complaints were filed with FERC seeking to reduce the ROE component of the transmission rates that MISO transmission owners, including Cleco, may collect under the MISO tariff. As of September 30, 2018 , Cleco Power h ad $2.1 million a ccrued for potential ROE reductions, including accrued interest. For more information on the ROE complaints, see Note 12 — “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 will file an application with the LPSC for a new FRP by July 1, 2019, with anticipated new rates being effective July 1, 2020. Cleco Power must file annual monitoring reports no later than October 31 for the 12-month period ended June 30. On October 31, 2017, Cleco Power filed its monitoring report for the 12-month period ended June 30, 2017, which indicated that no refund was due as a result of the FRP and $1.2 million was due as a result of the cost of service savings from the Merger Commitments. Cleco Power expects the LPSC to approve the 2017 FRP monitoring report in the fourth quarter of 2018. The $1.2 million cost of service savings from the Merger Commitments were refunded in September 2018. On October 31, 2018, Cleco Power filed its monitoring report for the 12 months ended June 30, 2018, which indicated no earnings-related refund and $1.2 million of cost of service savings refunds are due to be returned to eligible customers. This amount was accrued at September 30, 2018. SSR In September 2016, Cleco Power filed an Attachment Y with MISO requesting retirement of Teche Unit 3 effective April 1, 2017. MISO conducted a study which determined the proposed retirement would result in violations of specific applicable reliability standards for which no mitigation is available. As a result, MISO designated Teche Unit 3 as an SSR unit until such time that an appropriate alternative solution can be implemented to mitigate reliability issues. One mitigating factor that has been identified is Cleco Power’s Terrebonne to Bayou Vista Transmission project. In January 2018, another study was performed by MISO, and it was determined that Teche Unit 3 would continue to be designated as an SSR unit. Cleco Power’s first SSR agreement was for the period April 2017 to March 2018, and the second SSR agreement is for the period April 2018 until the sooner of the in-service date of the Terrebonne to Bayou Vista Transmission project or March 31, 2019. The Terrebonne to Bayou Vista project is expected to be complete in the second quarter of 2019. Cleco Power filed an application with FERC for approval to collect $20.3 million and $11.8 million annually in SSR payments from MISO for the first and second SSR agreements, respectively. In the second quarter of 2017, Cleco Power began receiving the monthly SSR payments from MISO, subject to refund. Also in the second quarter of 2017, MISO began allocating SSR costs to the load serving entities that require the operation of the SSR unit for reliability purposes, including Cleco Power. The SSR payments include recovering operations and maintenance expenses, administrative and general expenses, taxes, depreciation, capital expenditures, and carrying charges, all of which are related to Teche Unit 3 for the period of the SSR agreements. At the end of the SSR period, if Teche Unit 3 is retired, any SSR payments received from MISO for capital expenditures paid by third parties will be credited to property, plant, and equipment. At the end of the SSR agreement, Cleco Power will have the option to rescind the Attachment Y. If this option is exercised, Cleco Power will be required to refund recoverable capital expenditures. As of September 30, 2018, Cleco Power had $4.5 million accrued for SSR payments received for capital expenditures related to Teche Unit 3. In July 2017, Cleco Power, FERC Staff, and intervenors met at a settlement conference related to Cleco Power’s SSR agreements. Cleco Power has responded to multiple sets of informal data requests from FERC Staff and intervenors. A second settlement conference was held in February 2018; however, a settlement was not reached. In September 2018, the parties drafted a settlement term sheet that is expected to resolve all issues in this proceeding. As a result of the settlement, Cleco Power recorded a $2.0 million decrease in Other operations revenue for expected refunds to MISO for a reduction in SSR payments and a $1.0 million decrease in Power purchased for utility customers for Cleco Power’s portion of allocated SSR costs. TCJA On February 21, 2018, the LPSC directed utilities, including Cleco Power, to provide considerations of the appropriate manner to flowthrough to ratepayers the benefits of the reduction in corporate income taxes as a result of the TCJA. Cleco Power filed comments with the LPSC on March 12, 2018, which included among other things, a refund to customers for the differences in the cumulative federal and state income tax rate of 38% prior to the TCJA, versus the 26% cumulative federal and state income tax rate effective after the TCJA. As a result, Cleco Power began accruing an estimated reserve for the change in the tax rate beginning January 1, 2018. At September 30, 2018, Cleco Power had $22.7 million accrued for the estimated federal tax-related benefits from the TCJA. On October 5, 2018, the LPSC Staff issued a final report and proposed rule that would require utilities to adjust formula rates the earlier of January 31, 2019, or the next date required for implementation of compliance rate changes under the normal operation of the FRP. All utilities must file a report with the LPSC by December 1, 2018, describing its methodology for TCJA refunds and related items, including the allocation of such refunds among jurisdictional customers. The final rule was approved by the LPSC on October 26, 2018. Cleco Power expects to file its application with the LPSC no later than December 1, 2018. Rates are anticipated to go into effect the month following LPSC approval. Cleco Power expects to refund the amount accrued for the change in the tax rate based on July 2018 usage, after LPSC review and approval. Cleco Power expects to address the regulatory liability for excess ADIT resulting from the enactment of the TCJA in Cleco Power’s application for its new FRP, which will be filed by July 1, 2019, with anticipated new rates being effective July 1, 2020. |
Variable Interest Entities
Variable Interest Entities | 9 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entities | Note 11 — Variable Interest Entities Cleco and Cleco Power apply the equity method of accounting to report the investment in Oxbow in the consolidated financial statements. Under the equity method, the assets and liabilities of this entity are reported as Equity investment in 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. Oxbow is owned 50% by Cleco Power and 50% by SWEPCO. Cleco Power is not the primary beneficiary because it shares the power to control Oxbow’s significant activities with SWEPCO. Cleco Power’s current assessment of its maximum exposure to loss related to Oxbow at September 30, 2018 , consisted of its equity investment of $18.2 million . The following table presents the components of Cleco Power’s equity investment in Oxbow: INCEPTION TO DATE (THOUSANDS) AT SEPT. 30, 2018 AT DEC. 31, 2017 Purchase price $ 12,873 $ 12,873 Cash contributions 6,399 6,399 Dividends (1,100 ) (1,100 ) Total equity investment in investee $ 18,172 $ 18,172 The following table compares the carrying amount of Oxbow’s assets and liabilities with Cleco Power’s maximum exposure to loss related to its investment in Oxbow: (THOUSANDS) AT SEPT. 30, 2018 AT DEC. 31, 2017 Oxbow’s net assets/liabilities $ 36,345 $ 36,345 Cleco Power’s 50% equity $ 18,172 $ 18,172 Cleco Power’s maximum exposure to loss $ 18,172 $ 18,172 The following table contains summarized financial information for Oxbow: FOR THE THREE MONTHS ENDED SEPT. 30, FOR THE NINE MONTHS ENDED SEPT. 30, (THOUSANDS) 2018 2017 2018 2017 Operating revenue $ 2,214 $ 392 $ 4,134 $ 1,997 Operating expenses 2,214 392 4,134 1,997 Income before taxes $ — $ — $ — $ — DHLC mines lignite reserves at Oxbow through the Amended Lignite Mining Agreement. The lignite reserves are intended to be used to provide fuel to the Dolet Hills Power Station. Oxbow has no third-party agreements, guarantees, or other third-party commitments that contain obligations affecting Cleco Power’s investment in Oxbow. |
Litigation, Other Commitments a
Litigation, Other Commitments and Contingencies, and Disclosures about Guarantees | 9 Months Ended |
Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Litigation, Other Commitments and Contingencies, and Disclosures about Guarantees | Note 12 — 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 the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (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 potentially responsible parties (PRP), 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 PRPs, 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). In November 2014, the plaintiff in the Braunstein action moved for a dismissal of the action without prejudice, and that motion was granted in November 2014. In December 2014, the Court consolidated the remaining three actions and appointed interim co-lead counsel. Also in December 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, MIRA, BCI, 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. In December 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 does not value Cleco adequately, failing to structure a process through which shareholder value would be maximized and engaging in self-dealing by ignoring conflicts of interest. The Butler and Creative Life Services petitions also allege that the directors breached their fiduciary duties by failing to disclose material information about the Merger. Each petition further alleged that Cleco, Cleco Partners, Merger Sub, and certain of the investors in Cleco Partners aided and abetted the directors’ breaches of fiduciary duty. In December 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. Also in December 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. In January 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. In February 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. In February 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 for approval of the Merger Agreement. Following the hearing, the Court denied the plaintiffs’ motion. In June 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 in July 2015. In March 2016 and May 2016, the plaintiffs filed their Third Consolidated Amended Verified Derivative Petition for Damages and Preliminary and Permanent Injunction and their Fourth Verified Consolidated Amended Class Action Petition, respectively. The fourth petition eliminated the request for preliminary and permanent injunction and also named an additional executive officer as a defendant. Cleco filed exceptions seeking dismissal of the amended Petition. A hearing was held in September 2016, and the District Court granted the exceptions filed by Cleco and dismissed all claims asserted by the former shareholders. The plaintiffs appealed the District Court’s ruling to the Louisiana Third Circuit Court of Appeal. The Third Circuit Court of Appeal heard oral arguments in the case in September 2017. In December 2017, the Third Circuit Court of Appeal issued an order reversing and remanding the case to the District Court for further proceedings. In January 2018, Cleco filed a writ with the Louisiana Supreme Court seeking review of the Third Circuit Court of Appeal’s decision. The writ was denied in March 2018 and the parties are engaged in discovery in the District Court. Cleco believes that the allegations of the petitions in each action are without merit and that it has substantial meritorious defenses to the claims set forth in each of the petitions. Gulf Coast Spinning 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. In January 2016, Cleco appealed the District Court’s denial of its exception by filing with the Third Circuit Court of Appeal. In June 2016, the Third Circuit Court of Appeal denied the request to have the case dismissed. In July 2016, Cleco filed a writ to the Louisiana Supreme Court seeking a review of the District Court’s denial of Cleco’s exception. In November 2016, the Louisiana Supreme Court denied Cleco’s writ application. In February 2016, the parties agreed to a stay of all proceedings pending discussions concerning settlement. In May 2016, the District Court lifted the stay at the request of Gulf Coast. The parties are currently participating in discovery. 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. Sabine River Flood In March 2017, Cleco was served with a summons in Perry Bonin, Ace Chandler, and Michael Manuel, et al v. Sabine River Authority of Texas and Sabine River Authority of Louisiana , No. B-160173-C. The action was filed in the 163rd Judicial District Court for Orange County, Texas, and relates to flooding that occurred in Texas and Louisiana in March 2016. The plaintiffs have alleged that the flooding was the result of the release of water from the Toledo Bend spillway gates into the Sabine River. While the plaintiffs have made numerous allegations, they have specifically alleged that Cleco Power, included as one of several companies and governmental bodies, failed to repair one of the two hydroelectric generators at the Toledo Bend Dam, which in turn contributed to the flooding. Cleco Power does not operate the hydroelectric generator. The suit was removed to federal court in Texas. The new federal case is Perry Bonin, et al. v. Sabine River Authority of Texas et al. , No. 17-cv-134, U.S. District Court for the Eastern District of Texas ( Bonin Case ). The plaintiffs moved to remand the case to state court, but the district court found that the case raises a substantial federal question and denied the motion to remand. Cleco Power, along with its co-defendants, filed a motion to dismiss on various grounds, primarily arguing that the plaintiffs’ claims are preempted because they infringe on FERC’s exclusive control of dam operations. The district court granted the motion to dismiss in part, declining to rule on some of the arguments raised by the defendants, and granted the plaintiffs leave to amend their complaint. The plaintiffs filed a Fifth Amended Complaint in March 2018. Cleco Power filed a new motion to dismiss the plaintiffs’ claims. The briefing on Cleco Power’s motion is now complete, but the district court has not ruled on the motion or set a hearing date. On March 7, 2018, approximately 26 other individual plaintiffs filed a petition against Cleco Power and other defendants in Larry Addison, et al. v. Sabine River Authority of Texas, et al. , No. D180096-C. The action was filed in the 260th Judicial District Court for Orange County, Texas. The defendants removed the case to federal court on April 6, 2018. The new federal case is Larry Addison, et al. v. Sabine River Authority of Texas, et al ., No. 18-cv-153, U.S. District Court for the Eastern District of Texas. The allegations are essentially identical to those in the Bonin Case . On April 13, 2018, Cleco Power filed a motion to dismiss on the same grounds that previously were successful in the Bonin Case . The briefing on Cleco Power’s motion is complete, but the district court has not ruled on the motion or set a hearing date. On July 20, 2018, the district court entered an order consolidating the Addison Case with the Bonin Case. Management believes that both cases, as they relate to Cleco Power, have no merit. On August 28, 2018, the Judge entered an order requiring the Plaintiffs to file a more definitive statement to clarify the Plaintiffs’ claims. In response thereto, the Plaintiffs filed a Sixth Amended Petition on September 11, 2018. Cleco Power filed a response on October 3, 2018. The Judge has not yet ruled on Cleco’s Motion to Dismiss. 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 March 13, 2018, Cleco Power received notice of an FAC audit from the LPSC for the period of January 1, 2016, to December 31, 2017. The total amount of fuel expense included in the audit is $536.2 million . On August 31, 2018, LPSC Staff issued its audit report, which recommended no disallowance of fuel costs. The report is expected to be approved by the LPSC in the fourth quarter of 2018. Cleco Power has FAC filings for January 2018 and thereafter that remain subject to audit. Management is unable to predict or give a reasonable estimate of the possible range of the disallowance, if any, related to these filings. Historically, the disallowances have not been material. If a disallowance of fuel cost 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 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. On May 22, 2018, Cleco Power received notice of an EAC audit from the LPSC for the period of January 1, 2016, to December 31, 2017. The total amount of environmental expense included in the audit is $30.7 million . Cleco Power has responded to two sets of data requests. Periods subsequent to December 31, 2017, are also subject to audit. Management is unable to predict or give a reasonable estimate of the possible range of the disallowance, if any, related to this audit. Historically, the disallowances have not been material. If a disallowance of environmental cost 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. Cleco Power incurs environmental compliance expenses for reagents associated with the compliance standards of 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. In April 2016, the EPA released a final supplemental finding that, even considering costs, it is appropriate and necessary to regulate hazardous air pollutants. By the June 2016 deadline, six petitions were filed with the U.S. Court of Appeals for the D.C. Circuit Court of Appeals for review of the EPA’s findings. At the request of the EPA, in April 2017, the court issued an order holding the cases in abeyance pending the EPA’s review of its supplemental finding. These expenses are also eligible for recovery through Cleco Power’s EAC and are subject to periodic review by the LPSC. FERC Audit Generally, Cleco Power records wholesale transmission revenue through Attachment O of the MISO tariff and certain grandfathered agreements. These rates are subject to periodic audits by FERC. On March 13, 2018, the Division of Audits and Accounting, within the Office of Enforcement of FERC, initiated an audit of Cleco Power for the period of January 1, 2014, to the present. On October 10, 2018, Cleco Power received its second set of data requests related to this audit. Management is unable to determine the outcome or timing of the audit. Transmission ROE Two complaints were filed 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 complaints sought to reduce the 12.38% ROE used in MISO’s transmission rates to a proposed 6.68% . The first complaint, filed in November 2013, was for the period November 2013 through February 2015. In September 2016, FERC issued a Final Order in response to the first complaint establishing a 10.32% ROE. In February 2017, $1.2 million of refunds relating to the first complaint were submitted to MISO. The second complaint, filed in February 2015, was for the period February 2015 through May 2016. In June 2016, an ALJ issued an initial decision in the second rate case docket recommending a 9.70% base ROE. Cleco Power is unable to determine when a binding FERC order will be issued on the second ROE complaint. 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 proceedings. As of September 30, 2018 , Cleco Power had $2.1 million accrued for potential ROE reductions, including interest. Management believes a reduction in the ROE, as well as any additional refund, will not have a material adverse effect on the results of operations, financial condition, or cash flows of the Registrants. Other Cleco is involved in various litigation matters, including regulatory, environmental, and administrative proceedings before various courts, regulatory commissions, arbitrators, and governmental agencies regarding matters arising in the ordinary course of business. The liability Cleco may ultimately incur with respect to any one of these matters in the event of a negative outcome may be in excess of amounts currently accrued. Management regularly analyzes current information and, as of September 30, 2018 , believes the probable and reasonably estimable liabilities based on the eventual disposition of these matters are $4.6 million and has accrued this amount. Off-Balance Sheet Commitments and Guarantees 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 the 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 generation facility in 2005. The remaining indemnifications relate to environmental matters that may have been present prior to closing. These remaining indemnifications have no time limitations. The maximum amount of the potential payment to Entergy Louisiana and Entergy Gulf States is $42.4 million . 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. The remaining indemnifications relate to the fundamental organizational structure of Acadia. These remaining indemnifications have no time limitations or maximum potential future payments. 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 . Management does not expect to be required to make any payments under these indemnifications. As part of the Amended Lignite Mining Agreement, Cleco Power and SWEPCO, joint owners of Dolet Hills Power Station, have agreed to pay the loan and lease principal obligations of the lignite miner, DHLC, when due if DHLC does 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. The maximum projected payment by Cleco Power under this guarantee is estimated to be $101.1 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 $285.5 million of equity contributions to the NMTC Fund and will receive at least $303.8 million in the form of tax credits, tax losses, capital gains/losses, earnings, and cash over the 10 -year life of the investment. The difference between equity contributions and total benefits received were recognized over the life of the NMTC Fund as net tax benefits were delivered. As of September 30, 2018 , the amount of tax benefits delivered was $18.3 million . Due to the right of offset, the investment and associated debt are presented in Other deferred charges, on Cleco’s Condensed Consolidated Balance Sheet. By using the cost method for investments, the gross investment amortization expense is being recognized over a ten -year period, which is projected to be completed in the fourth quarter of 2018. 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. Fuel Transportation Agreement In 2012, Cleco Power entered into an amended agreement with Savage Services for 42 dedicated barges used to transport petroleum coke and limestone to Madison Unit 3. The amended agreement met the accounting definition of a capital lease until its expiration on August 31, 2017. From September 2017 until April 2, 2018, Cleco Power had an operating lease that automatically renewed on a month-to-month basis for use of the 42 barges. On April 2, 2018, Cleco Power loaned Savage Inland Marine $16.8 million to purchase the barges. Also on April 2, 2018, Cleco Power entered into a new agreement with Savage Inland Marine for continued use of the 42 dedicated barges through March 2033. The new agreement meets the accounting definition of a capital lease. Under the 2018 agreement, the barge lease rate contains both a fixed and variable component of which the latter will be adjusted every third anniversary of the new agreement for estimated executory costs. If the barges are idle, the lessor is required to attempt to sublease the barges to third parties with the revenue reducing Cleco Power’s lease payment. For the three and nine months ended September 30, 2018, Cleco Power paid $0.7 million and $1.3 million in lease payments, respectively. For the three and nine months ended September 30, 2018, Cleco Power received $0.2 million and $0.3 million of revenue from subleases, respectively. This agreement contains a provision for early termination upon the occurrence of any one of four cancellation events. The following is an analysis of the leased property under Cleco Power’s capital lease: (THOUSANDS) AT SEPT. 30, 2018 AT DEC. 31, 2017 Barges $ 16,800 $ — Less: accumulated amortization 560 — Net capital lease $ 16,240 $ — The following is a schedule by years of future minimum lease payments under the capital lease together with the present value of the net minimum lease payments as of September 30, 2018: (THOUSANDS) Three months ending Dec. 31, 2018 $ 653 Years ending Dec. 31, 2019 2,611 2020 2,611 2021 2,611 2022 2,611 2023 2,611 Thereafter 23,654 Total minimum lease payments 37,362 Less: executory costs 5,919 Net minimum lease payments 31,443 Less: amount representing interest 14,894 Present value of net minimum lease payments $ 16,549 Current liabilities $ 543 Non-current liabilities $ 16,006 Other Cleco has accrued for liabilities related to third parties, employee medical benefits, and AROs. Risks and Uncertainties Cleco could be subject to possible adverse consequences if Cleco’s counterparties fail to perform their obligations or if Cleco or its affiliates are not in compliance with loan agreements or bond indentures. 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 February 7, 2018, taking into consideration the pending NRG South Central acquisition, Moody’s placed Cleco Holdings Baa3 long-term issuer credit rating on review for downgrade and affirmed Cleco Power at A3 (stable). Also on February 7, 2018, taking into consideration the pending NRG South Central acquisition, S&P affirmed Cleco Holdings’ and Cleco Power’s corporate credit ratings at BBB- (stable) and BBB+ (stable), respectively. On April 7, 2018, Moody’s published a credit rating update that resulted in no change to the credit ratings or outlooks of Cleco Holdings or Cleco Power. On May 11, 2018, taking into consideration the pending NRG South Central acquisition, Fitch assigned a first-time long-term issuer default rating of BBB- at Cleco Holdings and BBB at Cleco Power. If Cleco Holdings’ or Cleco Power’s credit ratings were to be downgraded, Cleco Holdings or Cleco Power could be required to pay additional fees and incur higher interest rates for borrowings under their respective credit facilities. On July 31, 2018, Cleco amended its $300.0 million bank term loan agreement and its $100.0 million revolving credit facility agreement to release any and all collateral from all of its debt obligations under those agreements. As a result of the release of collateral, Moody’s replaced Cleco Holdings’ senior secured debt rating with a senior unsecured debt rating of Baa3, and Fitch replaced Cleco Holdings’ senior secured debt rating with a senior unsecured debt rating of BBB-. 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 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 higher LMPs. Physical transmission constraints present in the MISO market could |
Affiliate Transactions
Affiliate Transactions | 9 Months Ended |
Sep. 30, 2018 | |
Related Party Transactions [Abstract] | |
Affiliate Transactions | Note 13 — Affiliate Transactions Cleco Power has balances that are payable to or due from its affiliates. The following table is a summary of those balances: AT SEPT. 30, 2018 AT DEC. 31, 2017 (THOUSANDS) ACCOUNTS RECEIVABLE ACCOUNTS PAYABLE ACCOUNTS RECEIVABLE ACCOUNTS PAYABLE Cleco Holdings $ 97 $ 635 $ 743 $ 113 Support Group 1,275 9,939 608 8,582 Other (1) — — 4 2 Total $ 1,372 $ 10,574 $ 1,355 $ 8,697 (1) Represents Attala and Perryville. |
Intangible Assets and Goodwill
Intangible Assets and Goodwill | 9 Months Ended |
Sep. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets and Goodwill | Note 14 — Intangible Assets and Goodwill During 2008, Cleco Katrina/Rita acquired a $177.5 million intangible asset which includes $176.0 million for the right to bill and collect storm recovery charges from customers of Cleco Power and $1.5 million of financing costs. The intangible asset’s expected amortization expense is based on the estimated collections from Cleco Power’s customers. At the end of its life, the asset will have no residual value. At the date of the Merger, the gross balance of the Cleco Katrina/Rita intangible asset for Cleco was adjusted to be net of accumulated amortization, as no accumulated amortization existed on the date of the Merger. Cleco Katrina/Rita records amortization expenses based on actual collections. As a result of the Merger, fair value adjustments were recorded on Cleco’s Consolidated Balance Sheet for the valuation of the Cleco trade name and long-term wholesale power supply agreements. At the end of their life, these intangible assets will have no residual value. The trade name intangible asset is being amortized over its estimated economic useful life of 20 years . The intangible assets related to the power supply agreements are amortized over the remaining life of each applicable contract ranging between 5 years and 17 years . The following tables present Cleco and Cleco Power’s amortization of intangible assets: Cleco FOR THE THREE MONTHS ENDED SEPT. 30, FOR THE NINE MONTHS ENDED SEPT. 30, (THOUSANDS) 2018 2017 2018 2017 Cleco Katrina/Rita right to bill and collect storm recovery charges $ 5,623 $ 4,643 $ 15,617 $ 12,837 Trade name $ 64 $ 64 $ 191 $ 191 Power supply agreements $ 2,420 $ 2,420 $ 7,260 $ 8,337 Cleco Power FOR THE THREE MONTHS ENDED SEPT. 30, FOR THE NINE MONTHS ENDED SEPT. 30, (THOUSANDS) 2018 2017 2018 2017 Cleco Katrina/Rita right to bill and collect storm recovery charges $ 5,623 $ 4,643 $ 15,617 $ 12,837 The following tables summarize the balances for intangible assets subject to amortization for Cleco and Cleco Power: Cleco (THOUSANDS) AT SEPT. 30, 2018 AT DEC. 31, 2017 Cleco Katrina/Rita right to bill and collect storm recovery charges $ 70,594 $ 70,594 Trade name 5,100 5,100 Power supply agreements 85,104 85,104 Gross carrying amount 160,798 160,798 Accumulated amortization (69,016 ) (45,948 ) Net intangible assets subject to amortization $ 91,782 $ 114,850 Cleco Power (THOUSANDS) AT SEPT. 30, 2018 AT DEC. 31, 2017 Cleco Katrina/Rita right to bill and collect storm recovery charges $ 177,537 $ 177,537 Accumulated amortization (151,453 ) (135,836 ) Net intangible assets subject to amortization $ 26,084 $ 41,701 Goodwill On April 13, 2016, in connection with the completion of the Merger, Cleco recognized goodwill of $1.49 billion . Management assigned goodwill to Cleco’s reportable segment, Cleco Power. Goodwill is required to be tested for impairment at the reporting segment level on an annual basis and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting segment below its carrying value. Application of the goodwill impairment test requires significant judgments, including the identification of reporting segments, assignments of assets and liabilities to reporting segments, assignment of goodwill to reporting segments, and the determination of the fair value of the reporting segments. Management has determined that Cleco Power is Cleco’s only reporting segment. Cleco conducted its 2018 annual impairment test using an August 1, 2018, measurement date. The fair value of Cleco’s reporting segment, Cleco Power, was estimated using a weighted combination of the income approach, which estimates fair value based on discounted cash flows, and the market approach, which estimates fair value based on market comparables within the utility and energy industries. Significant assumptions used in these fair value estimates include estimation of future cash flows, long-term rate of growth, the selection of comparable companies, and weighted-average cost of capital (WACC) or discount rate. Changes in these assumptions could materially affect the determination of fair value and goodwill impairment at Cleco Power. Based on the tests performed, management has determined that there was no impairment of Cleco Power’s goodwill as of August 1, 2018. Management estimated the fair value of Cleco Power’s equity to be $3.55 billion at the August 1, 2018, measurement date. The carrying value of Cleco Power’s equity was approximately $3.30 billion with the excess of the fair value over the carrying value representing 7.5% or $247.4 million . There were no accumulated impairment charges. The fair value estimate is particularly sensitive to WACC. WACC takes into account both the after-tax cost of debt and the cost of equity. WACC used for calculating the fair values as of August 1, 2018, was 5.7% . A downgrade in Cleco Power’s debt ratings could increase Cleco Power’s after-tax cost of debt. In addition, an increase in interest rates or return required by investors in equity markets could increase Cleco Power’s cost of equity. Any increase in the cost of equity or the cost of debt could materially impact Cleco Power’s fair value estimate. A WACC of 5.6% or 5.8% would have resulted in fair value calculations of $3.63 billion and $3.47 billion , respectively. The fair value estimate is also sensitive to long-term cash flow growth rates applicable to periods beyond management’s five-year business plan. Management assumed a long-term cash flow growth rate of 2.5% based on historical and projected consumer price inflation, economic indicators, and projected industry growth. Any change in the expected terminal cash flow growth rate could materially impact Cleco Power’s fair value estimate. A terminal cash flow growth rate of 2.4% or 2.6% would have resulted in a fair value calculation of $3.48 billion and $3.62 billion , respectively. There was no impairment recorded for goodwill for 2017. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 9 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Note 15 — Accumulated Other Comprehensive Loss The components of accumulated other comprehensive loss are summarized in the following tables for Cleco and Cleco Power. All amounts are reported net of income taxes. Amounts in parentheses indicate losses. Cleco FOR THE THREE MONTHS ENDED SEPT. 30, 2018 FOR THE NINE MONTHS ENDED SEPT. 30, 2018 (THOUSANDS) POSTRETIREMENT BENEFIT NET LOSS Balances, beginning of period $ (2,631 ) $ (2,921 ) Amounts reclassified from accumulated AOCI Amortization of postretirement benefit net loss 261 551 Net current-period other comprehensive income 261 551 Balances, Sept. 30, 2018 $ (2,370 ) $ (2,370 ) FOR THE THREE MONTHS ENDED SEPT. 30, 2017 FOR THE NINE MONTHS ENDED SEPT. 30, 2017 (THOUSANDS) POSTRETIREMENT BENEFIT NET (LOSS)/GAIN Balances, beginning of period $ (631 ) $ 1,500 Other comprehensive loss before reclassifications Postretirement benefits adjustment during the period — (2,065 ) Amounts reclassified from AOCI Amortization of postretirement benefit net gain (44 ) (110 ) Net current-period other comprehensive loss (44 ) (2,175 ) Balances, Sept. 30, 2017 $ (675 ) $ (675 ) Cleco Power FOR THE THREE MONTHS ENDED SEPT. 30, 2018 FOR THE NINE MONTHS ENDED SEPT. 30, 2018 (THOUSANDS) POSTRETIREMENT NET LOSS TOTAL AOCI POSTRETIREMENT NET LOSS TOTAL AOCI Balances, beginning of period $ (7,877 ) $ (5,178 ) $ (13,055 ) $ (8,377 ) $ (5,306 ) $ (13,683 ) Amounts reclassified from AOCI Amortization of postretirement benefit net loss 312 — 312 812 — 812 Reclassification of net loss to interest charges — 112 112 — 240 240 Net current-period other comprehensive income 312 112 424 812 240 1,052 Balances, Sept. 30, 2018 $ (7,565 ) $ (5,066 ) $ (12,631 ) $ (7,565 ) $ (5,066 ) $ (12,631 ) FOR THE THREE MONTHS ENDED SEPT. 30, 2017 FOR THE NINE MONTHS ENDED SEPT. 30, 2017 (THOUSANDS) POSTRETIREMENT NET LOSS TOTAL AOCI POSTRETIREMENT NET LOSS TOTAL AOCI Balances, beginning of period $ (8,132 ) $ (5,411 ) $ (13,543 ) $ (7,905 ) $ (5,517 ) $ (13,422 ) Other comprehensive loss before reclassifications Postretirement benefit adjustments during the period — — — (584 ) — (584 ) Amounts reclassified from AOCI Amortization of postretirement benefit net loss 167 — 167 524 — 524 Reclassification of net loss to interest charges — 53 53 — 159 159 Net current-period other comprehensive income (loss) 167 53 220 (60 ) 159 99 Balances, Sept. 30, 2017 $ (7,965 ) $ (5,358 ) $ (13,323 ) $ (7,965 ) $ (5,358 ) $ (13,323 ) |
Plan of Acquisition
Plan of Acquisition | 9 Months Ended |
Sep. 30, 2018 | |
Business Combinations [Abstract] | |
Plan of Acquisition | Note 16 — Plan of Acquisition On February 6, 2018, Cleco Cajun entered into the Purchase and Sale Agreement with NRG Energy and NRG South Central. Pursuant to the terms of the Purchase and Sale Agreement, Cleco Cajun agreed to acquire from NRG Energy all of the outstanding membership interests in NRG South Central, which indirectly owns (i) a 176 -MW natural-gas-fired generating station located in Sterlington, Louisiana, (ii) a 220 -MW natural-gas-fired facility and a 210 -MW natural-gas-fired peaking facility, both located in Jarreau, Louisiana, (iii) a 580 -MW coal-fired generating facility, a 540 -MW natural-gas-fired generating station, and 58% of a 588 -MW coal-fired generating station all located in New Roads, Louisiana, (iv) 225 MW of a 300 -MW natural-gas-fired peaking facility located in Jennings, Louisiana, and (v) a 1,263 -MW natural-gas-fired generating station located in Deweyville, Texas (the Cottonwood Plant), for approximately $1.0 billion , subject to customary working capital and other adjustments (the NRG Acquisition). Cleco expects to fund the NRG Acquisition with proceeds from the Debt Financing (as defined below), equity contributions, and cash on hand. The transaction remains subject to customary closing conditions, including receipt of required regulatory approvals by FERC and the LPSC. On February 27, 2018, Cleco filed a joint application seeking approval of the transaction with FERC. On April 4, 2018, Cleco filed an application with the LPSC seeking approval of the transaction. Cleco has responded to several sets of LPSC data requests and on September 4, 2018, LPSC Staff filed testimony in the case assessing the transaction and identifying a number of commitments requested of Cleco. Cleco filed response testimony on October 5, 2018. The LPSC scheduled a hearing to begin on November 5, 2018, on the proposed acquisition. The ALJ is expected to issue a recommended decision to the LPSC for its review and decision. On April 4, 2018, the Federal Trade Commission granted early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976. On June 19, 2018, the Committee on Foreign Investment in the United States approved and cleared Cleco’s application for the transaction to proceed. On August 7, 2018, the Federal Communication Commission’s consents to transfer licenses to Cleco Cajun became final. The Public Utility Commission of Texas approved Cleco’s application on October 12, 2018. Cleco Cajun, NRG Energy, and NRG South Central have each made customary representations, warranties and covenants in the Purchase and Sale Agreement, which includes customary indemnification provisions. Cleco Holdings has agreed to guarantee the obligations of Cleco Cajun, subject to certain limitations. In addition, the closing is conditioned upon the execution and delivery of a lease agreement between Cottonwood Energy and a special-purpose entity that is a subsidiary of NRG Energy pursuant to which NRG Energy will lease back the Cottonwood Plant and could operate it until May 2025. Upon closing, Cottonwood Energy will become a subsidiary of Cleco Cajun. The Purchase and Sale Agreement also contains certain customary termination rights for both Cleco Cajun and NRG Energy, including a termination right for each if the closing does not occur by February 6, 2019. Management expects the transaction to close before the end of 2018. In connection with the Purchase and Sale Agreement, Cleco Holdings entered into a debt commitment letter, dated as of February 6, 2018, with Mizuho Bank, Ltd. (Mizuho), Credit Agricole Corporate and Investment Bank (CA-CIB) and The Bank of Nova Scotia (Scotiabank), pursuant to which Mizuho, CA-CIB, and Scotiabank have committed to provide (a) an acquisition loan facility in the aggregate principal amount of up to $300.0 million (the Acquisition Loan Facility), (b) a term loan facility in the aggregate principal amount of up to $300.0 million (the Term Loan Facility), and (c) an incremental revolving facility under Cleco Holding’s existing bank credit agreement with availability of $75.0 million (and together with the Acquisition Loan Facility and the Term Loan Facility, the Debt Financing). The Debt Financing is subject to various conditions, including the execution of definitive documentation and other customary closing conditions. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | The accompanying Condensed Consolidated Financial Statements of Cleco include the accounts of Cleco Holdings and its majority-owned subsidiaries after elimination of intercompany accounts and transactions. |
Basis of Presentation | The Condensed Consolidated Financial Statements of Cleco and Cleco Power have been prepared in accordance with GAAP for interim financial information and with the instructions to the 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, 2017. These Condensed Consolidated Financial Statements, in the opinion of management, reflect all normal recurring adjustments that are necessary to fairly state the financial position and results of operations of Cleco and Cleco Power. Amounts reported in Cleco and Cleco Power’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 3 — “Recent Authoritative Guidance.” |
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 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 | Various accounting pronouncements require certain assets and liabilities to be measured at their fair values. Some assets and liabilities are required to be measured at their fair value each reporting period, while others are required to be measured only one time, generally the date of acquisition or debt issuance. Cleco and Cleco Power disclose the fair value of certain assets and liabilities by one of three levels when required for recognition purposes. |
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 would be 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 charge. Cleco Power purchases FTRs in auctions facilitated by MISO. The majority of its FTRs are purchased in annual auctions during the second quarter, but Cleco Power may purchase additional FTRs in monthly auctions. FTRs are derivative instruments that 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 records FTRs at their estimated fair value when purchased. Each accounting period, Cleco Power adjusts the carrying value of FTRs to their estimated fair value 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 Power’s Condensed Consolidated Balance Sheets. Realized gains or losses on settled FTRs are recorded in Fuel used for electric generation on Cleco Power’s Condensed Consolidated Statements of Income. 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 and Cleco Power 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. |
Revenue Recognition | Cleco adopted the accounting guidance for revenue recognition and all related amendments on January 1, 2018, using the modified retrospective method. The guidance affects entities that enter into contracts for the transfer of nonfinancial 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. Application of the new revenue standard did not result in a cumulative effect adjustment to the opening balance of retained earnings. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. The impact of the adoption of the new standard is not material to the results of operations, financial condition, or cash flows of the Registrants. |
Recent Authoritative Guidance | The Registrants adopted, or will adopt, the recent authoritative guidance listed below on their respective effective dates. 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. In transition, lessees and lessors can recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. Alternatively, an additional transition method is available which allows an entity to initially apply the new lease standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. Management expects to elect this practical expedient, as well as those that permit the Registrants to retain their current lease assessment and classifications for existing leases at the effective date and to not apply the new guidance to land easements that exist or expire before the effective date. Management is currently working through an adoption plan which includes the evaluation of lease contracts, new business processes, including changes to current recordkeeping systems, and the need for additional internal controls. Other than an expected increase in assets and liabilities, the full impact of the amended guidance has not been determined. Management will continue to evaluate the impact of this guidance, including any additional clarifying amendments issued during implementation. The amended guidance could have a material impact on the results of operations, financial condition, or cash flows of the Registrants. In November 2016, FASB amended guidance for certain cash flow issues. The amended guidance requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash. Therefore, amounts generally described as restricted cash and cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The adoption of this guidance was effective for fiscal years beginning after December 15, 2017, including interim periods within those years. The amended guidance was adopted at January 1, 2018, by moving the presentation of restricted cash and restricted cash equivalents in the statement of cash flows to net cash flows of total cash, cash equivalents, restricted cash, and restricted cash equivalents. This amendment was applied using a retrospective transition method to each period presented. This guidance impacted the presentation of the cash flows statement, as noted above, but did not have an impact on the results of operations or financial condition of the Registrants. In March 2017, FASB amended guidance related to defined benefit pension and other postretirement benefit plans. The new amendment requires an entity to present service cost in the same line item as other current employee compensation costs and to present the remaining components of net benefit cost in a separate line item outside of operating items. The amendment also allows only the service cost component of net benefit cost to be eligible for capitalization within property, plant, and equipment. The non-service costs will continue to be capitalized and recovered from ratepayers as approved by FERC. Beginning January 1, 2018, the non-service costs capitalized for ratemaking purposes were reflected as a regulatory asset or liability for GAAP. The adoption of this guidance was effective for annual periods beginning after December 15, 2017, including interim periods within those years. This amendment was applied retrospectively for the presentation of the service cost in the income statement while the capitalization of the service cost was applied prospectively. This guidance did not have a significant impact on the results of operations, financial condition, or cash flows of the Registrants. Cleco’s change in presentation resulted in a decrease in Other operations expenses and an increase in Other expense of $2.7 million and $8.4 million for the three and nine months ended September 30, 2017, respectively. Cleco Power’s change in presentation resulted in a decrease in Other operations expenses and an increase in Other expense of $1.9 million and $5.7 million for the three and nine months ended September 30, 2017, respectively. In February 2018, FASB amended guidance that permits, but does not require, companies to reclassify stranded tax effects from the TCJA from AOCI to retained earnings. The adoption of this guidance is effective for annual reporting periods beginning after December 15, 2018, including interim periods within those years. Early adoption is permitted. Management is currently evaluating this guidance and the impact it may have on the results of operations, financial condition, or cash flows of the Registrants. In August 2018, FASB issued guidance that allows for the deferral of certain implementation costs incurred in a cloud computing arrangement. The adoption of this guidance is effective for annual reporting periods beginning after December 15, 2019, including interim periods within those years. Early adoption is permitted. Management is currently evaluating this guidance and the impact it may have on the results of operations, financial condition, or cash flows of the Registrants. In August 2018, FASB issued guidance updating the disclosure framework for Defined Benefit Plans. Under the new guidance, entities will no longer be required to disclose the amount in other comprehensive income expected to be recognized as a component of net periodic benefit cost over the next fiscal year or the impact of a one-percentage point increase and a one-percentage point decrease in the assumed health care cost trend. The new framework will require additional disclosures including a narrative description of the reasons for significant gains/losses affecting the benefit obligation. The adoption of this guidance is effective for fiscal years ending after December 15, 2020. Early adoption is permitted. 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 August 2018, FASB issued guidance updating the disclosure framework for Fair Value Measurement. Under the new guidance, entities will no longer be required to disclose the amount of and reasons for transfers between level 1 and level 2 of the fair value hierarchy, the policy of timing of transfers between levels, or the valuation policies and procedures for level 3 fair value measurements. The new framework will require additional disclosures around level 3 fair value measurements, including the range, weighted average, and time period used to develop significant unobservable inputs. The adoption of this guidance is effective for fiscal years beginning after December 15, 2019. Early adoption is permitted. Management does not expect this guidance to have a significant impact on the results of operations, financial condition, or cash flows of the Registrants. |
Regulatory Assets and Liabilities | Cleco 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 believes these regulatory assets will be fully recoverable; however, if in the future, as a result of regulatory changes or competition, Cleco’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 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 could require discontinuance of the application of the authoritative guidance on regulated operations. |
Pension Plan and Employee Benefits | 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 are made in the form of cash. Cash contributions are invested in proportion to the participant’s voluntary contribution investment choices. Participation in the 401(k) Plan is voluntary, and all active Cleco employees are eligible to participate. Cleco’s retirees may be eligible to receive Other Benefits. Dependents of Cleco’s retirees may also be eligible to receive Other Benefits with the exception of life insurance benefits. Cleco recognizes expected costs of Other Benefits during the periods in which the benefits are earned. Certain Cleco officers are covered by SERP. 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, other than as described below. SERP is a non-qualified, non-contributory, defined benefit pension plan. Generally, 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. SERP benefits are reduced by retirement 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 amount the employee would have received under the terms of the original 401(k) Plan. In accordance with the SERP plan document and the Merger Agreement, four executive officers received enhanced benefits, and upon termination of employment, two of these executive officers received accelerated vesting. Another executive officer received enhanced SERP benefits, net of other postretirement benefits, as part of a separation agreement. Two executive officers’ SERP benefits were capped as of December 31, 2017, with regard to final compensation; however, adjustments will continue with regard to age and tenure with Cleco. Additionally, these executive officers had their annual bonuses set at target rather than actual awards for the years 2016 and 2017 for the average incentive award portion of their SERP benefit calculation. A third executive officer’s SERP benefit amount will be set at a specified amount based upon the year of separation. Management reviews current market trends as it evaluates Cleco’s future compensation strategy. 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. The life insurance policies issued on SERP participants designate the rabbi trust as the beneficiary. 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 that employed the officer. Cleco Power is the plan sponsor and Support Group is the plan administrator. The non-service components of net periodic benefit cost related to SERP are included in Other expense within Cleco and Cleco Power’s Condensed Consolidated Statements of Income. |
Income Taxes | 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. |
Segment Reporting | The financial results in the following tables 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. |
Equity Method Investments | Cleco and Cleco Power apply the equity method of accounting to report the investment in Oxbow in the consolidated financial statements. Under the equity method, the assets and liabilities of this entity are reported as Equity investment in 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 Entities | Cleco and Cleco Power apply the equity method of accounting to report the investment in Oxbow in the consolidated financial statements. Under the equity method, the assets and liabilities of this entity are reported as Equity investment in 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. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Restricted Cash and Cash Equivalents Items [Line Items] | |
Restricted Cash and Cash Equivalents | Cleco and Cleco Power’s restricted cash and cash equivalents consisted of: Cleco (THOUSANDS) AT SEPT. 30, 2018 AT DEC. 31, 2017 Current Cleco Katrina/Rita’s storm recovery bonds $ 3,504 $ 8,597 Cleco Power’s charitable contributions 1,200 1,200 Cleco Power’s rate credit escrow 543 3,284 Total current 5,247 13,081 Non-current Diversified Lands’ mitigation escrow 22 21 Cleco Power’s future storm restoration costs 15,165 14,456 Cleco Power’s charitable contributions 2,841 3,575 Cleco Power’s rate credit escrow 822 2,029 Total non-current 18,850 20,081 Total restricted cash and cash equivalents $ 24,097 $ 33,162 |
CLECO POWER | |
Restricted Cash and Cash Equivalents Items [Line Items] | |
Restricted Cash and Cash Equivalents | Cleco Power (THOUSANDS) AT SEPT. 30, 2018 AT DEC. 31, 2017 Current Cleco Katrina/Rita’s storm recovery bonds $ 3,504 $ 8,597 Charitable contributions 1,200 1,200 Rate credit escrow 543 3,284 Total current 5,247 13,081 Non-current Future storm restoration costs 15,165 14,456 Charitable contributions 2,841 3,575 Rate credit escrow 822 2,029 Total non-current 18,828 20,060 Total restricted cash and cash equivalents $ 24,075 $ 33,141 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | Operating revenue, net for the three and nine months ended September 30, 2018 , was as follows: FOR THE THREE MONTHS ENDED SEPT. 30, 2018 (THOUSANDS) CLECO POWER OTHER ELIMINATIONS TOTAL Revenue from contracts with customers Retail revenue Residential (1) $ 139,162 $ — $ — $ 139,162 Commercial (1) 79,829 — — 79,829 Industrial (1) 43,380 — — 43,380 Other retail (1) 4,039 — — 4,039 Surcharge 6,206 — — 6,206 Total retail revenue $ 272,616 $ — $ — $ 272,616 Wholesale, net (1) 63,624 (2,420 ) (2) — 61,204 Transmission 14,718 — — 14,718 Other (3) 2,477 — — 2,477 Total revenue from contracts with customers $ 353,435 $ (2,420 ) $ — $ 351,015 Revenue unrelated to contracts with customers Affiliate $ 223 $ 22,765 $ (22,988 ) $ — Other (4) 7,241 — — 7,241 Total revenue unrelated to contracts with customers 7,464 22,765 (22,988 ) 7,241 Operating revenue, net $ 360,899 $ 20,345 $ (22,988 ) $ 358,256 (1) Includes fuel recovery revenue. (2) Amortization of intangible assets related to wholesale power supply agreements. (3) Other revenue from contracts with customers includes $4.9 million of other miscellaneous fee revenue, $0.6 million of Teche Unit 3 SSR revenue, net of $0.2 million of reserves for capital expenditures, partially offset by $3.0 million of electric customer credits. (4) Includes unrealized gains associated with FTRs. FOR THE NINE MONTHS ENDED SEPT. 30, 2018 (THOUSANDS) CLECO POWER OTHER ELIMINATIONS TOTAL Revenue from contracts with customers Retail revenue Residential (1) $ 338,357 $ — $ — $ 338,357 Commercial (1) 218,389 — — 218,389 Industrial (1) 121,445 — — 121,445 Other retail (1) 11,633 — — 11,633 Surcharge 17,637 — — 17,637 Total retail revenue $ 707,461 $ — $ — $ 707,461 Wholesale, net (1) 165,255 (7,260 ) (2) — 157,995 Transmission 41,166 — — 41,166 Other (3) (4,375 ) 1 — (4,374 ) Total revenue from contracts with customers $ 909,507 $ (7,259 ) $ — $ 902,248 Revenue unrelated to contracts with customers Affiliate $ 651 $ 55,707 $ (56,358 ) $ — Other (4) 32,029 — — 32,029 Total revenue unrelated to contracts with customers 32,680 55,707 (56,358 ) 32,029 Operating revenue, net $ 942,187 $ 48,448 $ (56,358 ) $ 934,277 (1) Includes fuel recovery revenue. (2) Amortization of intangible assets related to wholesale power supply agreements. (3) Other revenue from contracts with customers includes $24.3 million of electric customer credits, partially offset by $13.4 million of other miscellaneous fee revenue, and $6.5 million of Teche Unit 3 SSR revenue, net of $2.4 million of reserves for capital expenditures. (4) Includes unrealized gains associated with FTRs. |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | For contracts that are greater than one year, the following table discloses (1) the aggregate amount of the transaction price allocated to performance obligations that are unsatisfied (or partially unsatisfied) as of September 30, 2018 , and (2) when Cleco expects to recognize this revenue: REMAINING PERFORMANCE OBLIGATIONS (THOUSANDS) Three months ending Dec. 31, 2018 $ 13,020 Years ending Dec. 31, 2019 28,490 2020 7,068 2021 7,068 2022 6,468 Thereafter 10,210 Total remaining performance obligations $ 72,324 |
Regulatory Assets and Liabili_2
Regulatory Assets and Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Regulatory Assets [Line Items] | |
Schedule of Regulatory Assets | The following table summarizes Cleco’s net regulatory assets and liabilities: (THOUSANDS) AT SEPT. 30, 2018 AT DEC. 31, 2017 Total Cleco Power regulatory assets, net $ 158,742 $ 146,774 Cleco Merger adjustments (1) Fair value of long-term debt 140,812 147,145 Postretirement costs 19,884 21,375 Financing costs 8,365 8,623 Debt issuance costs 6,356 6,665 Total Cleco regulatory assets, net $ 334,159 $ 330,582 (1) Cleco regulatory assets include acquisition accounting adjustments as a result of the Merger. |
CLECO POWER | |
Regulatory Assets [Line Items] | |
Schedule of Regulatory Liabilities | The following table summarizes Cleco Power’s regulatory assets and liabilities: (THOUSANDS) AT SEPT. 30, 2018 AT DEC. 31, 2017 Regulatory liabilities - deferred taxes, net $ (135,911 ) $ (140,426 ) Regulatory liabilities - other $ (2,718 ) $ — Regulatory assets Mining costs $ 1,912 $ 3,823 Interest costs 4,271 4,499 AROs 2,961 2,762 Postretirement costs 133,584 142,764 Tree trimming costs 8,535 7,193 Training costs 6,435 6,552 Surcredits, net 289 2,173 AMI deferred revenue requirement 3,817 4,227 Emergency declarations 3,378 4,131 Production operations and maintenance expenses 5,039 8,625 AFUDC equity gross-up 71,530 71,205 Acadia Unit 1 acquisition costs 2,257 2,336 Financing costs 8,015 8,293 MISO integration costs — 468 Coughlin transaction costs 945 968 Corporate franchise tax, net 1,001 153 MATS costs — 2,564 Non-service cost of postretirement benefits 3,484 — Other 20 484 Total regulatory assets 257,473 273,220 Accumulated deferred fuel 39,898 13,980 Total regulatory assets, net $ 158,742 $ 146,774 |
Fair Value Accounting (Tables)
Fair Value Accounting (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Carrying Value and Estimated Fair Value | The following tables summarize the carrying value and estimated market value of Cleco and Cleco Power’s financial instruments not measured at fair value on Cleco and Cleco Power’s Condensed Consolidated Balance Sheets: Cleco AT SEPT. 30, 2018 AT DEC. 31, 2017 (THOUSANDS) CARRYING VALUE* FAIR VALUE CARRYING VALUE* FAIR VALUE Long-term debt $ 2,891,664 $ 2,831,604 $ 2,866,955 $ 2,921,325 * The carrying value of long-term debt does not include deferred issuance costs of $10.7 million and $11.6 million at September 30, 2018 , and December 31, 2017 , respectively. |
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 on a recurring basis: Cleco CLECO CONSOLIDATED FAIR VALUE MEASUREMENTS AT REPORTING DATE (THOUSANDS) AT SEPT. 30, 2018 QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) AT DEC. 31, 2017 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 $ 199,531 $ — $ 199,531 $ — $ 144,302 $ — $ 144,302 $ — FTRs 23,163 — — 23,163 7,396 — — 7,396 Total assets $ 222,694 $ — $ 199,531 $ 23,163 $ 151,698 $ — $ 144,302 $ 7,396 Liability description FTRs $ 903 $ — $ — $ 903 $ 352 $ — $ — $ 352 Total liabilities $ 903 $ — $ — $ 903 $ 352 $ — $ — $ 352 |
Net Changes in Net Fair Value of FTR Assets and Liabilities Classified as Level 3 | 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 Cleco and Cleco Power: FOR THE THREE MONTHS ENDED SEPT. 30, FOR THE NINE MONTHS ENDED SEPT. 30, (THOUSANDS) 2018 2017 2018 2017 Beginning balance $ 25,133 $ 17,943 $ 7,044 $ 7,683 Unrealized gains (losses)* 4,520 1,591 6,153 (791 ) Purchases 1,251 419 26,734 23,537 Settlements (8,644 ) (7,066 ) (17,671 ) (17,542 ) Ending balance $ 22,260 $ 12,887 $ 22,260 $ 12,887 * Unrealized gains and losses are reported through Accumulated deferred fuel on Cleco and Cleco Power’s Condensed Consolidated Balance Sheets. |
Significant Unobservable Inputs Used in Developing Fair Value of Level 3 Positions | The following table quantifies the significant unobservable inputs used in developing the fair value of Level 3 positions as of September 30, 2018 , and December 31, 2017 : FAIR VALUE VALUATION TECHNIQUE SIGNIFICANT UNOBSERVABLE INPUTS FORWARD PRICE RANGE (THOUSANDS, EXCEPT FORWARD PRICE RANGE) ASSETS LIABILITIES LOW HIGH FTRs at Sept. 30, 2018 $ 23,163 $ 903 RTO auction pricing FTR price - per MWh $ (3.04 ) $ 7.48 FTRs at Dec. 31, 2017 $ 7,396 $ 352 RTO auction pricing FTR price - per MWh $ (2.95 ) $ 6.33 |
Fair Value of Derivative Instruments as Recorded in Condensed Consolidated Balance Sheets | The following table presents the fair values of derivative instruments and their respective line items as recorded on Cleco and Cleco Power’s Condensed Consolidated Balance Sheets at September 30, 2018 , and December 31, 2017 : DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS (THOUSANDS) BALANCE SHEET LINE ITEM AT SEPT. 30, 2018 AT DEC. 31, 2017 Commodity-related contracts FTRs Current Energy risk management assets $ 23,163 $ 7,396 Current Other current liabilities 903 352 Commodity-related contracts, net $ 22,260 $ 7,044 |
Amount of Gain (Loss) Recognized in Income on Derivatives | AMOUNT OF GAIN(LOSS) RECOGNIZED IN INCOME ON DERIVATIVES FOR THE THREE MONTHS ENDED SEPT. 30, FOR THE NINE MONTHS ENDED SEPT. 30, (THOUSANDS) DERIVATIVES LINE ITEM 2018 2017 2018 2017 Commodity contracts FTRs (1) Electric operations $ 13,665 $ 14,062 $ 49,656 $ 35,172 FTRs (1) Power purchased for utility customers (7,902 ) (7,767 ) (20,595 ) (18,759 ) Total $ 5,763 $ 6,295 $ 29,061 $ 16,413 (1) For the three and nine months ended September 30, 2018 , unrealized gains associated with FTRs of $4.5 million and $ 6.2 million , respectively, were reported through Accumulated deferred fuel on Cleco and Cleco Power’s Condensed Consolidated Balance Sheets. For the three and nine months ended September 30, 2017 , unrealized gains (losses) associated with FTRs of $1.6 million and $(0.8) million , respectively, were reported through Accumulated deferred fuel on Cleco and Cleco Power’s Condensed Consolidated Balance Sheets. |
CLECO POWER | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Carrying Value and Estimated Fair Value | Cleco Power AT SEPT. 30, 2018 AT DEC. 31, 2017 (THOUSANDS) CARRYING VALUE* FAIR VALUE CARRYING VALUE* FAIR VALUE Long-term debt $ 1,400,852 $ 1,491,691 $ 1,369,810 $ 1,535,234 * The carrying value of long-term debt does not include deferred issuance costs of $8.6 million and $9.1 million at September 30, 2018 , and December 31, 2017 , respectively. |
Fair Value of Financial Assets and Liabilities Measured On A Recurring Basis | Cleco Power CLECO POWER FAIR VALUE MEASUREMENTS AT REPORTING DATE (THOUSANDS) AT SEPT. 30, 2018 QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) AT DEC. 31, 2017 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 $ 78,110 $ — $ 78,110 $ — $ 95,681 $ — $ 95,681 $ — FTRs 23,163 — — 23,163 7,396 — — 7,396 Total assets $ 101,273 $ — $ 78,110 $ 23,163 $ 103,077 $ — $ 95,681 $ 7,396 Liability description FTRs $ 903 $ — $ — $ 903 $ 352 $ — $ — $ 352 Total liabilities $ 903 $ — $ — $ 903 $ 352 $ — $ — $ 352 |
Pension Plan and Employee Ben_2
Pension Plan and Employee Benefits (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Net Periodic Pension and Other Benefits Cost | Net periodic benefit cost related to SERP for the three and nine months ended September 30, 2018 , and 2017 were as follows: FOR THE THREE MONTHS ENDED SEPT. 30, FOR THE NINE MONTHS (THOUSANDS) 2018 2017 2018 2017 Components of periodic benefit costs Service cost $ 136 $ 123 $ 407 $ 370 Interest cost 769 810 2,296 2,430 Amortizations Prior period service credit (35 ) (57 ) (104 ) (124 ) Net loss 723 536 2,180 1,560 Net periodic benefit cost 1,593 1,412 4,779 4,236 Special/contractual termination benefits — — — 315 Total benefit cost $ 1,593 $ 1,412 $ 4,779 $ 4,551 Net periodic pension and Other Benefits cost for the three and nine months ended September 30, 2018 , and 2017 were as follows: PENSION BENEFITS OTHER BENEFITS FOR THE THREE MONTHS ENDED SEPT. 30, FOR THE THREE MONTHS ENDED SEPT. 30, (THOUSANDS) 2018 2017 2018 2017 Components of periodic benefit costs Service cost $ 2,377 $ 2,260 $ 336 $ 314 Interest cost 5,215 5,412 361 372 Expected return on plan assets (5,943 ) (6,016 ) — — Amortizations Prior period service credit (18 ) (18 ) — — Net loss (gain) 3,078 2,502 96 (32 ) Net periodic benefit cost $ 4,709 $ 4,140 $ 793 $ 654 PENSION BENEFITS OTHER BENEFITS FOR THE NINE MONTHS ENDED SEPT. 30, FOR THE NINE MONTHS ENDED SEPT. 30, (THOUSANDS) 2018 2017 2018 2017 Components of periodic benefit costs Service cost $ 7,130 $ 6,779 $ 1,011 $ 1,084 Interest cost 15,869 16,235 1,076 1,176 Expected return on plan assets (17,818 ) (18,048 ) — — Amortizations Prior period service credit (53 ) (53 ) — — Net loss (gain) 8,998 7,506 105 (37 ) Net periodic benefit cost $ 14,126 $ 12,419 $ 2,192 $ 2,223 |
Current and Non-Current Portions of Other Benefits Liability | The current and non-current portions of the SERP liability for Cleco and Cleco Power at September 30, 2018 , and December 31, 2017 , were as follows: Cleco (THOUSANDS) AT SEPT. 30, 2018 AT DEC. 31, 2017 Current $ 4,471 $ 4,471 Non-current $ 79,300 $ 79,868 The current and non-current portions of the Other Benefits liability for Cleco and Cleco Power at September 30, 2018 , and December 31, 2017 , were as follows: Cleco (THOUSANDS) AT SEPT. 30, 2018 AT DEC. 31, 2017 Current $ 4,061 $ 4,061 Non-current $ 37,879 $ 39,142 |
Expense of the 401(k) Plan | Cleco’s 401(k) Plan expense for the three and nine months ended September 30, 2018 , and 2017 was as follows: FOR THE THREE MONTHS ENDED SEPT. 30, FOR THE NINE MONTHS ENDED SEPT. 30, (THOUSANDS) 2018 2017 2018 2017 401(k) Plan expense $ 1,424 $ 1,386 $ 4,716 $ 4,259 The expense of the 401(k) Plan related to Cleco’s other subsidiaries for the three and nine months ended September 30, 2018 , and 2017 was as follows: FOR THE THREE MONTHS ENDED SEPT. 30, FOR THE NINE MONTHS (THOUSANDS) 2018 2017 2018 2017 401(k) Plan expense $ 254 $ 234 $ 865 $ 710 |
CLECO POWER | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Current and Non-Current Portions of Other Benefits Liability | Cleco Power (THOUSANDS) AT SEPT. 30, 2018 AT DEC. 31, 2017 Current $ 929 $ 929 Non-current $ 12,914 $ 16,589 Cleco Power (THOUSANDS) AT SEPT. 30, 2018 AT DEC. 31, 2017 Current $ 3,525 $ 3,525 Non-current $ 33,013 $ 34,033 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Effective Income Tax Rate [Line Items] | |
Effective income tax rates | The following tables summarize the effective income tax rates for Cleco and Cleco Power for the three and nine months ended September 30, 2018 , and 2017 : Cleco FOR THE THREE MONTHS ENDED SEPT. 30, FOR THE NINE MONTHS ENDED SEPT. 30, 2018 2017 2018 2017 Effective tax rate 19.4 % 33.7 % 20.7 % 35.5 % |
CLECO POWER | |
Effective Income Tax Rate [Line Items] | |
Effective income tax rates | Cleco Power FOR THE THREE MONTHS ENDED SEPT. 30, FOR THE NINE MONTHS ENDED SEPT. 30, 2018 2017 2018 2017 Effective tax rate 22.1 % 35.4 % 23.1 % 36.8 % |
Disclosures about Segments (Tab
Disclosures about Segments (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | The financial results in the following tables 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. SEGMENT INFORMATION FOR THE THREE MONTHS ENDED SEPT. 30, 2018 (THOUSANDS) CLECO POWER OTHER ELIMINATIONS CONSOLIDATED Revenue Electric operations $ 343,482 $ (2,420 ) $ — $ 341,062 Other operations 20,186 — — 20,186 Affiliate revenue 223 22,765 (22,988 ) — Electric customer credits (2,992 ) — — (2,992 ) Operating revenue, net $ 360,899 $ 20,345 $ (22,988 ) $ 358,256 Depreciation and amortization $ 41,687 $ 2,076 $ — $ 43,763 Interest income $ 1,606 $ 310 $ (84 ) $ 1,832 Interest charges $ 17,895 $ 14,017 $ (84 ) $ 31,828 Federal and state income tax expense (benefit) $ 18,016 $ (6,597 ) $ — $ 11,419 Net income (loss) $ 63,336 $ (15,975 ) $ (1 ) $ 47,360 2017 (THOUSANDS) CLECO POWER OTHER ELIMINATIONS CONSOLIDATED Revenue Electric operations $ 320,009 $ (2,420 ) $ — $ 317,589 Other operations 20,768 514 — 21,282 Affiliate revenue 209 13,517 (13,726 ) — Electric customer credits (372 ) — — (372 ) Operating revenue, net $ 340,614 $ 11,611 $ (13,726 ) $ 338,499 Depreciation and amortization $ 40,049 $ 2,179 $ — $ 42,228 Interest income $ 332 $ 31 $ (9 ) $ 354 Interest charges $ 17,141 $ 13,331 $ (10 ) $ 30,462 Federal and state income tax expense (benefit) $ 30,092 $ (7,038 ) $ — $ 23,054 Net income (loss) $ 54,852 $ (9,548 ) $ — $ 45,304 SEGMENT INFORMATION FOR THE NINE MONTHS ENDED SEPT. 30, 2018 (THOUSANDS) CLECO POWER OTHER ELIMINATIONS CONSOLIDATED Revenue Electric operations $ 904,746 $ (7,260 ) $ — $ 897,486 Other operations 61,066 1 — 61,067 Affiliate revenue 651 55,707 (56,358 ) — Electric customer credits (24,276 ) — — (24,276 ) Operating revenue, net $ 942,187 $ 48,448 $ (56,358 ) $ 934,277 Depreciation and amortization $ 121,796 $ 6,281 $ (1 ) $ 128,076 Interest income $ 3,560 $ 652 $ (169 ) $ 4,043 Interest charges $ 53,658 $ 41,409 $ (173 ) $ 94,894 Federal and state income tax expense (benefit) $ 39,724 $ (17,777 ) $ — $ 21,947 Net income (loss) $ 132,359 $ (48,299 ) $ — $ 84,060 Additions to property, plant, and equipment $ 193,708 $ 911 $ — $ 194,619 Equity investment in investees (1) $ 18,172 $ — $ — $ 18,172 Goodwill (1) $ 1,490,797 $ — $ — $ 1,490,797 Total segment assets (1) $ 5,808,604 $ 688,066 $ (34,835 ) $ 6,461,835 (1) Balances as of September 30, 2018 2017 (THOUSANDS) CLECO POWER OTHER ELIMINATIONS CONSOLIDATED Revenue Electric operations $ 847,417 $ (8,337 ) $ — $ 839,080 Other operations 58,083 1,544 59,627 Affiliate revenue 649 41,882 (42,531 ) — Electric customer credits (1,045 ) — — (1,045 ) Operating revenue, net $ 905,104 $ 35,089 $ (42,531 ) $ 897,662 Depreciation and amortization $ 118,280 $ 6,351 $ (1 ) $ 124,630 Interest income $ 926 $ 271 $ (151 ) $ 1,046 Interest charges $ 52,654 $ 40,297 $ (151 ) $ 92,800 Federal and state income tax expense (benefit) $ 63,010 $ (20,629 ) $ — $ 42,381 Net income (loss) $ 108,439 $ (31,398 ) $ — $ 77,041 Additions to property, plant, and equipment $ 183,604 $ 2,005 $ — $ 185,609 Equity investment in investees (1) $ 18,172 $ — $ — $ 18,172 Goodwill (1) $ 1,490,797 $ — $ — $ 1,490,797 Total segment assets (1) $ 5,679,538 $ 619,943 $ (21,099 ) $ 6,278,382 (1) Balances as of December 31, 2017 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) - CLECO POWER | 9 Months Ended |
Sep. 30, 2018 | |
Variable Interest Entity [Line Items] | |
Equity Method Investments | The following table contains summarized financial information for Oxbow: FOR THE THREE MONTHS ENDED SEPT. 30, FOR THE NINE MONTHS ENDED SEPT. 30, (THOUSANDS) 2018 2017 2018 2017 Operating revenue $ 2,214 $ 392 $ 4,134 $ 1,997 Operating expenses 2,214 392 4,134 1,997 Income before taxes $ — $ — $ — $ — The following table presents the components of Cleco Power’s equity investment in Oxbow: INCEPTION TO DATE (THOUSANDS) AT SEPT. 30, 2018 AT DEC. 31, 2017 Purchase price $ 12,873 $ 12,873 Cash contributions 6,399 6,399 Dividends (1,100 ) (1,100 ) Total equity investment in investee $ 18,172 $ 18,172 |
Carrying Amount of Assets and Liabilities with Maximum Exposure to Loss | The following table compares the carrying amount of Oxbow’s assets and liabilities with Cleco Power’s maximum exposure to loss related to its investment in Oxbow: (THOUSANDS) AT SEPT. 30, 2018 AT DEC. 31, 2017 Oxbow’s net assets/liabilities $ 36,345 $ 36,345 Cleco Power’s 50% equity $ 18,172 $ 18,172 Cleco Power’s maximum exposure to loss $ 18,172 $ 18,172 |
Litigation, Other Commitments_2
Litigation, Other Commitments and Contingencies, and Disclosures about Guarantees (Tables) - Cleco Power | 9 Months Ended |
Sep. 30, 2018 | |
Loss Contingencies [Line Items] | |
Analysis of Leased Property Under Capital Lease | The following is an analysis of the leased property under Cleco Power’s capital lease: (THOUSANDS) AT SEPT. 30, 2018 AT DEC. 31, 2017 Barges $ 16,800 $ — Less: accumulated amortization 560 — Net capital lease $ 16,240 $ — |
Schedule of Future Minimum Lease Payments for Capital Leases | The following is a schedule by years of future minimum lease payments under the capital lease together with the present value of the net minimum lease payments as of September 30, 2018: (THOUSANDS) Three months ending Dec. 31, 2018 $ 653 Years ending Dec. 31, 2019 2,611 2020 2,611 2021 2,611 2022 2,611 2023 2,611 Thereafter 23,654 Total minimum lease payments 37,362 Less: executory costs 5,919 Net minimum lease payments 31,443 Less: amount representing interest 14,894 Present value of net minimum lease payments $ 16,549 Current liabilities $ 543 Non-current liabilities $ 16,006 |
Affiliate Transactions (Tables)
Affiliate Transactions (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
CLECO POWER | |
Related Party Transaction [Line Items] | |
Schedule of Related Party Transactions | Cleco Power has balances that are payable to or due from its affiliates. The following table is a summary of those balances: AT SEPT. 30, 2018 AT DEC. 31, 2017 (THOUSANDS) ACCOUNTS RECEIVABLE ACCOUNTS PAYABLE ACCOUNTS RECEIVABLE ACCOUNTS PAYABLE Cleco Holdings $ 97 $ 635 $ 743 $ 113 Support Group 1,275 9,939 608 8,582 Other (1) — — 4 2 Total $ 1,372 $ 10,574 $ 1,355 $ 8,697 (1) Represents Attala and Perryville. |
Intangible Assets and Goodwill
Intangible Assets and Goodwill (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Amortization of Intangible Assets | The following tables present Cleco and Cleco Power’s amortization of intangible assets: Cleco FOR THE THREE MONTHS ENDED SEPT. 30, FOR THE NINE MONTHS ENDED SEPT. 30, (THOUSANDS) 2018 2017 2018 2017 Cleco Katrina/Rita right to bill and collect storm recovery charges $ 5,623 $ 4,643 $ 15,617 $ 12,837 Trade name $ 64 $ 64 $ 191 $ 191 Power supply agreements $ 2,420 $ 2,420 $ 7,260 $ 8,337 Cleco Power FOR THE THREE MONTHS ENDED SEPT. 30, FOR THE NINE MONTHS ENDED SEPT. 30, (THOUSANDS) 2018 2017 2018 2017 Cleco Katrina/Rita right to bill and collect storm recovery charges $ 5,623 $ 4,643 $ 15,617 $ 12,837 |
Schedule of Finite-Lived Intangible Assets | The following tables summarize the balances for intangible assets subject to amortization for Cleco and Cleco Power: Cleco (THOUSANDS) AT SEPT. 30, 2018 AT DEC. 31, 2017 Cleco Katrina/Rita right to bill and collect storm recovery charges $ 70,594 $ 70,594 Trade name 5,100 5,100 Power supply agreements 85,104 85,104 Gross carrying amount 160,798 160,798 Accumulated amortization (69,016 ) (45,948 ) Net intangible assets subject to amortization $ 91,782 $ 114,850 Cleco Power (THOUSANDS) AT SEPT. 30, 2018 AT DEC. 31, 2017 Cleco Katrina/Rita right to bill and collect storm recovery charges $ 177,537 $ 177,537 Accumulated amortization (151,453 ) (135,836 ) Net intangible assets subject to amortization $ 26,084 $ 41,701 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Accumulated Other Comprehensive Loss [Line Items] | |
Schedule of Accumulated Other Comprehensive Income Loss | The components of accumulated other comprehensive loss are summarized in the following tables for Cleco and Cleco Power. All amounts are reported net of income taxes. Amounts in parentheses indicate losses. Cleco FOR THE THREE MONTHS ENDED SEPT. 30, 2018 FOR THE NINE MONTHS ENDED SEPT. 30, 2018 (THOUSANDS) POSTRETIREMENT BENEFIT NET LOSS Balances, beginning of period $ (2,631 ) $ (2,921 ) Amounts reclassified from accumulated AOCI Amortization of postretirement benefit net loss 261 551 Net current-period other comprehensive income 261 551 Balances, Sept. 30, 2018 $ (2,370 ) $ (2,370 ) FOR THE THREE MONTHS ENDED SEPT. 30, 2017 FOR THE NINE MONTHS ENDED SEPT. 30, 2017 (THOUSANDS) POSTRETIREMENT BENEFIT NET (LOSS)/GAIN Balances, beginning of period $ (631 ) $ 1,500 Other comprehensive loss before reclassifications Postretirement benefits adjustment during the period — (2,065 ) Amounts reclassified from AOCI Amortization of postretirement benefit net gain (44 ) (110 ) Net current-period other comprehensive loss (44 ) (2,175 ) Balances, Sept. 30, 2017 $ (675 ) $ (675 ) Cleco Power FOR THE THREE MONTHS ENDED SEPT. 30, 2018 FOR THE NINE MONTHS ENDED SEPT. 30, 2018 (THOUSANDS) POSTRETIREMENT NET LOSS TOTAL AOCI POSTRETIREMENT NET LOSS TOTAL AOCI Balances, beginning of period $ (7,877 ) $ (5,178 ) $ (13,055 ) $ (8,377 ) $ (5,306 ) $ (13,683 ) Amounts reclassified from AOCI Amortization of postretirement benefit net loss 312 — 312 812 — 812 Reclassification of net loss to interest charges — 112 112 — 240 240 Net current-period other comprehensive income 312 112 424 812 240 1,052 Balances, Sept. 30, 2018 $ (7,565 ) $ (5,066 ) $ (12,631 ) $ (7,565 ) $ (5,066 ) $ (12,631 ) |
CLECO POWER | |
Accumulated Other Comprehensive Loss [Line Items] | |
Schedule of Accumulated Other Comprehensive Income Loss | Cleco Power FOR THE THREE MONTHS ENDED SEPT. 30, 2018 FOR THE NINE MONTHS ENDED SEPT. 30, 2018 (THOUSANDS) POSTRETIREMENT NET LOSS TOTAL AOCI POSTRETIREMENT NET LOSS TOTAL AOCI Balances, beginning of period $ (7,877 ) $ (5,178 ) $ (13,055 ) $ (8,377 ) $ (5,306 ) $ (13,683 ) Amounts reclassified from AOCI Amortization of postretirement benefit net loss 312 — 312 812 — 812 Reclassification of net loss to interest charges — 112 112 — 240 240 Net current-period other comprehensive income 312 112 424 812 240 1,052 Balances, Sept. 30, 2018 $ (7,565 ) $ (5,066 ) $ (12,631 ) $ (7,565 ) $ (5,066 ) $ (12,631 ) FOR THE THREE MONTHS ENDED SEPT. 30, 2017 FOR THE NINE MONTHS ENDED SEPT. 30, 2017 (THOUSANDS) POSTRETIREMENT NET LOSS TOTAL AOCI POSTRETIREMENT NET LOSS TOTAL AOCI Balances, beginning of period $ (8,132 ) $ (5,411 ) $ (13,543 ) $ (7,905 ) $ (5,517 ) $ (13,422 ) Other comprehensive loss before reclassifications Postretirement benefit adjustments during the period — — — (584 ) — (584 ) Amounts reclassified from AOCI Amortization of postretirement benefit net loss 167 — 167 524 — 524 Reclassification of net loss to interest charges — 53 53 — 159 159 Net current-period other comprehensive income (loss) 167 53 220 (60 ) 159 99 Balances, Sept. 30, 2017 $ (7,965 ) $ (5,358 ) $ (13,323 ) $ (7,965 ) $ (5,358 ) $ (13,323 ) |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Restricted Cash and Cash Equivalents (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | |
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Current | $ 5,247 | $ 13,081 |
Non-current | 18,850 | 20,081 |
Total restricted cash and cash equivalents | 24,097 | 33,162 |
Cleco Katrina/Rita’s storm recovery bonds | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Current | 3,504 | 8,597 |
Charitable contributions | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Current | 1,200 | 1,200 |
Non-current | 2,841 | 3,575 |
Rate credit escrow | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Current | 543 | 3,284 |
Non-current | 822 | 2,029 |
Diversified Lands’ mitigation escrow | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Non-current | 22 | 21 |
Future storm restoration costs | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Non-current | 15,165 | 14,456 |
Cleco Katrina/Rita Bond Principal Payments | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Increase (decrease) in restricted cash | (19,200) | |
Cleco Katrina/Rita Bond Interest Payments | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Increase (decrease) in restricted cash | (2,600) | |
Cleco Katrina/Rita storm recovery collections, net of administration fees | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Increase (decrease) in restricted cash | 16,700 | |
CLECO POWER | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Current | 5,247 | 13,081 |
Non-current | 18,828 | 20,060 |
Total restricted cash and cash equivalents | 24,075 | 33,141 |
CLECO POWER | Cleco Katrina/Rita’s storm recovery bonds | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Current | 3,504 | 8,597 |
CLECO POWER | Charitable contributions | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Current | 1,200 | 1,200 |
Non-current | 2,841 | 3,575 |
CLECO POWER | Rate credit escrow | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Current | 543 | 3,284 |
Non-current | 822 | 2,029 |
CLECO POWER | Future storm restoration costs | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Non-current | $ 15,165 | $ 14,456 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Risk Management (Details) - derivative | 9 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Long-term natural gas hedging pilot program, minimum period for gas price stability | 5 years | |
CLECO POWER | Open Natural Gas Positions | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Number of instruments held to mitigate risk | 0 | 0 |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) | 9 Months Ended |
Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Payment terms | 20 days |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | $ 351,015 | $ 902,248 | ||
Revenue unrelated to contracts with customers | ||||
Affiliate revenue | 0 | $ 0 | 0 | $ 0 |
Other | 7,241 | 32,029 | ||
Total revenue unrelated to contracts with customers | 7,241 | 32,029 | ||
Operating revenue, net | 358,256 | 338,499 | 934,277 | 897,662 |
Total retail revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 272,616 | 707,461 | ||
Residential | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 139,162 | 338,357 | ||
Commercial | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 79,829 | 218,389 | ||
Industrial | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 43,380 | 121,445 | ||
Other retail | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 4,039 | 11,633 | ||
Surcharge | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 6,206 | 17,637 | ||
Wholesale, net | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 61,204 | 157,995 | ||
Transmission | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 14,718 | 41,166 | ||
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 2,477 | (4,374) | ||
CLECO POWER | Other | ||||
Revenue unrelated to contracts with customers | ||||
Other miscellaneous fee revenue | 4,900 | 13,400 | ||
Reserve for capital expenditures | 200 | 2,400 | ||
Operating Segments | CLECO POWER | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 353,435 | 909,507 | ||
Revenue unrelated to contracts with customers | ||||
Affiliate revenue | 223 | 209 | 651 | 649 |
Other | 7,241 | 32,029 | ||
Total revenue unrelated to contracts with customers | 7,464 | 32,680 | ||
Operating revenue, net | 360,899 | 340,614 | 942,187 | 905,104 |
Operating Segments | CLECO POWER | Total retail revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 272,616 | 707,461 | ||
Operating Segments | CLECO POWER | Residential | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 139,162 | 338,357 | ||
Operating Segments | CLECO POWER | Commercial | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 79,829 | 218,389 | ||
Operating Segments | CLECO POWER | Industrial | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 43,380 | 121,445 | ||
Operating Segments | CLECO POWER | Other retail | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 4,039 | 11,633 | ||
Operating Segments | CLECO POWER | Surcharge | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 6,206 | 17,637 | ||
Operating Segments | CLECO POWER | Wholesale, net | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 63,624 | 165,255 | ||
Operating Segments | CLECO POWER | Transmission | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 14,718 | 41,166 | ||
Operating Segments | CLECO POWER | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 2,477 | (4,375) | ||
Operating Segments | OTHER | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | (2,420) | (7,259) | ||
Revenue unrelated to contracts with customers | ||||
Affiliate revenue | 22,765 | 55,707 | ||
Other | 0 | 0 | ||
Total revenue unrelated to contracts with customers | 22,765 | 55,707 | ||
Operating revenue, net | 20,345 | 48,448 | ||
Operating Segments | OTHER | Total retail revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | ||
Operating Segments | OTHER | Residential | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | ||
Operating Segments | OTHER | Commercial | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | ||
Operating Segments | OTHER | Industrial | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | ||
Operating Segments | OTHER | Other retail | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | ||
Operating Segments | OTHER | Surcharge | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | ||
Operating Segments | OTHER | Wholesale, net | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | (2,420) | (7,260) | ||
Operating Segments | OTHER | Transmission | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | ||
Operating Segments | OTHER | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 1 | ||
ELIMINATIONS | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | ||
Revenue unrelated to contracts with customers | ||||
Affiliate revenue | (22,988) | (13,726) | (56,358) | (42,531) |
Other | 0 | 0 | ||
Total revenue unrelated to contracts with customers | (22,988) | (56,358) | ||
Operating revenue, net | (22,988) | (13,726) | (56,358) | (42,531) |
ELIMINATIONS | Total retail revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | ||
ELIMINATIONS | Residential | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | ||
ELIMINATIONS | Commercial | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | ||
ELIMINATIONS | Industrial | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | ||
ELIMINATIONS | Other retail | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | ||
ELIMINATIONS | Surcharge | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | ||
ELIMINATIONS | Wholesale, net | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | ||
ELIMINATIONS | Transmission | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | ||
ELIMINATIONS | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | ||
CLECO POWER | ||||
Revenue unrelated to contracts with customers | ||||
Affiliate revenue | 223 | 209 | 651 | 649 |
Operating revenue, net | 360,899 | $ 340,614 | 942,187 | $ 905,104 |
CLECO POWER | Electric customer credits | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 3,000 | 24,300 | ||
SSR | CLECO POWER | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | $ 600 | $ 6,500 |
Revenue Recognition - Remaining
Revenue Recognition - Remaining Performance Obligations (Details) $ in Thousands | Sep. 30, 2018USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 13,020 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 3 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 28,490 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 7,068 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 7,068 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 6,468 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 72,324 |
Revenue, remaining performance obligation, expected timing of satisfaction, period |
Recent Authoritative Guidance (
Recent Authoritative Guidance (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Increase (decrease) in other operations expenses | $ 37,395 | $ 25,464 | $ 95,875 | $ 81,025 |
Increase in other expense | 3,378 | 3,977 | 10,306 | 10,196 |
Accounting Standards Update 2017-07 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Increase (decrease) in other operations expenses | (2,700) | (8,400) | ||
Increase in other expense | 2,700 | 8,400 | ||
CLECO POWER | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Increase (decrease) in other operations expenses | 32,619 | 26,816 | 86,736 | 84,732 |
Increase in other expense | $ 2,929 | 3,163 | $ 8,637 | 7,554 |
CLECO POWER | Accounting Standards Update 2017-07 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Increase (decrease) in other operations expenses | (1,900) | (5,700) | ||
Increase in other expense | $ 1,900 | $ 5,700 |
Regulatory Assets and Liabili_3
Regulatory Assets and Liabilities - Schedule of Regulatory Liabilities (Details) - Cleco Power - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Regulatory liabilities - deferred taxes, net | ||
Regulatory Liabilities [Line Items] | ||
Regulatory liabilities | $ (135,911) | $ (140,426) |
Regulatory liabilities - other | ||
Regulatory Liabilities [Line Items] | ||
Regulatory liabilities | $ (2,718) | $ 0 |
Regulatory Assets and Liabili_4
Regulatory Assets and Liabilities - Schedule of Regulatory Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Regulatory Assets [Line Items] | ||
Total regulatory assets, net | $ 334,159 | $ 330,582 |
Cleco Power | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | 257,473 | 273,220 |
Total regulatory assets, net | 158,742 | 146,774 |
Cleco Power | Mining costs | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | 1,912 | 3,823 |
Cleco Power | Interest costs | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | 4,271 | 4,499 |
Cleco Power | AROs | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | 2,961 | 2,762 |
Cleco Power | Postretirement costs | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | 133,584 | 142,764 |
Cleco Power | Tree trimming costs | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | 8,535 | 7,193 |
Cleco Power | Training costs | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | 6,435 | 6,552 |
Cleco Power | Surcredits, net | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | 289 | 2,173 |
Cleco Power | AMI deferred revenue requirement | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | 3,817 | 4,227 |
Cleco Power | Emergency declarations | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | 3,378 | 4,131 |
Cleco Power | Production operations and maintenance expenses | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | 5,039 | 8,625 |
Cleco Power | AFUDC equity gross-up | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | 71,530 | 71,205 |
Cleco Power | Acquisition/ transaction costs | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | 2,257 | 2,336 |
Cleco Power | Acquisition/ transaction costs | Coughlin transaction costs | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | 945 | 968 |
Cleco Power | Financing costs | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | 8,015 | 8,293 |
Cleco Power | MISO integration costs | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | 0 | 468 |
Cleco Power | Corporate franchise tax, net | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | 1,001 | 153 |
Cleco Power | MATS costs | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | 0 | 2,564 |
Cleco Power | Non-service cost of postretirement benefits | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | 3,484 | 0 |
Cleco Power | Other | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | 20 | 484 |
Cleco Power | Accumulated deferred fuel | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | 39,898 | 13,980 |
Cleco Holdings | Postretirement costs | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | 19,884 | 21,375 |
Cleco Holdings | Financing costs | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | 8,365 | 8,623 |
Cleco Holdings | Fair value of long-term debt | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | 140,812 | 147,145 |
Cleco Holdings | Debt issuance costs | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | $ 6,356 | $ 6,665 |
Fair Value Accounting - Carryin
Fair Value Accounting - Carrying Value and Estimated Fair Value (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Deferred debt issuance costs not included in the carrying value of long-term debt | $ 10,700 | $ 11,600 |
CARRYING VALUE | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | 2,891,664 | 2,866,955 |
FAIR VALUE | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | 2,831,604 | 2,921,325 |
CLECO POWER | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Deferred debt issuance costs not included in the carrying value of long-term debt | 8,600 | 9,100 |
CLECO POWER | CARRYING VALUE | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | 1,400,852 | 1,369,810 |
CLECO POWER | FAIR VALUE | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | $ 1,491,691 | $ 1,535,234 |
Fair Value Accounting - Fair Va
Fair Value Accounting - Fair Value of Financial Assets and Liabilities Measured On A Recurring Basis (Details) - Measured On A Recurring Basis - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Asset description | ||
Institutional money market funds | $ 199,531 | $ 144,302 |
FTRs | 23,163 | 7,396 |
Total assets | 222,694 | 151,698 |
Liability description | ||
FTRs | 903 | 352 |
Total liabilities | 903 | 352 |
QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) | ||
Asset description | ||
Institutional money market funds | 0 | 0 |
FTRs | 0 | 0 |
Total assets | 0 | 0 |
Liability description | ||
FTRs | 0 | 0 |
Total liabilities | 0 | 0 |
SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) | ||
Asset description | ||
Institutional money market funds | 199,531 | 144,302 |
FTRs | 0 | 0 |
Total assets | 199,531 | 144,302 |
Liability description | ||
FTRs | 0 | 0 |
Total liabilities | 0 | 0 |
SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | ||
Asset description | ||
Institutional money market funds | 0 | 0 |
FTRs | 23,163 | 7,396 |
Total assets | 23,163 | 7,396 |
Liability description | ||
FTRs | 903 | 352 |
Total liabilities | 903 | 352 |
CLECO POWER | ||
Asset description | ||
Institutional money market funds | 78,110 | 95,681 |
FTRs | 23,163 | 7,396 |
Total assets | 101,273 | 103,077 |
Liability description | ||
FTRs | 903 | 352 |
Total liabilities | 903 | 352 |
CLECO POWER | QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) | ||
Asset description | ||
Institutional money market funds | 0 | 0 |
FTRs | 0 | 0 |
Total assets | 0 | 0 |
Liability description | ||
FTRs | 0 | 0 |
Total liabilities | 0 | 0 |
CLECO POWER | SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) | ||
Asset description | ||
Institutional money market funds | 78,110 | 95,681 |
FTRs | 0 | 0 |
Total assets | 78,110 | 95,681 |
Liability description | ||
FTRs | 0 | 0 |
Total liabilities | 0 | 0 |
CLECO POWER | SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | ||
Asset description | ||
Institutional money market funds | 0 | 0 |
FTRs | 23,163 | 7,396 |
Total assets | 23,163 | 7,396 |
Liability description | ||
FTRs | 903 | 352 |
Total liabilities | $ 903 | $ 352 |
Fair Value Accounting - Net Cha
Fair Value Accounting - Net Changes in Net Fair Value of FTR Assets and Liabilities Classified as Level 3 (Details) - Price Risk Derivative - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Beginning balance | $ 25,133 | $ 17,943 | $ 7,044 | $ 7,683 |
Unrealized gains (losses) | 4,520 | 1,591 | 6,153 | (791) |
Purchases | 1,251 | 419 | 26,734 | 23,537 |
Settlements | (8,644) | (7,066) | (17,671) | (17,542) |
Ending balance | $ 22,260 | $ 12,887 | $ 22,260 | $ 12,887 |
Fair Value Accounting - Signifi
Fair Value Accounting - Significant Unobservable Inputs Used in Developing Fair Value of Level 3 Positions (Details) $ in Thousands | Sep. 30, 2018USD ($)$ / MW | Dec. 31, 2017USD ($)$ / MW |
FAIR VALUE | ||
FTR price - per MWh, LOW | $ / MW | (3.04) | (2.95) |
FTR price - per MWh, HIGH | $ / MW | 7.48 | 6.33 |
Measured On A Recurring Basis | ||
FAIR VALUE | ||
ASSETS | $ 23,163 | $ 7,396 |
LIABILITIES | 903 | 352 |
Measured On A Recurring Basis | Level 3 | ||
FAIR VALUE | ||
ASSETS | 23,163 | 7,396 |
LIABILITIES | $ 903 | $ 352 |
Fair Value Accounting - Narrati
Fair Value Accounting - Narrative (Details) MWh in Millions, $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018USD ($)MWh | Dec. 31, 2017USD ($)MWh | |
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||
Fair value, concentration of risk, amount of money market funds in cash and cash equivalents | $ 175.6 | $ 111.1 |
Current restricted cash and cash equivalents | ||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||
Fair value, concentration of risk, amount of money market funds in institutional money market funds | 5.2 | 13.1 |
Non-current restricted cash and cash equivalents | ||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||
Fair value, concentration of risk, amount of money market funds in institutional money market funds | 18.7 | 20.1 |
CLECO POWER | ||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||
Fair value, concentration of risk, amount of money market funds in cash and cash equivalents | $ 54.2 | $ 62.5 |
Volume of FTRs outstanding (MWh) | MWh | 13 | 9 |
CLECO POWER | Current restricted cash and cash equivalents | ||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||
Fair value, concentration of risk, amount of money market funds in institutional money market funds | $ 5.2 | $ 13.1 |
CLECO POWER | Non-current restricted cash and cash equivalents | ||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||
Fair value, concentration of risk, amount of money market funds in institutional money market funds | $ 18.7 | $ 20.1 |
Fair Value Accounting - Fair _2
Fair Value Accounting - Fair Value of Derivative Instruments as Recorded in Condensed Consolidated Balance Sheets (Details) - Price Risk Derivative - DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Commodity-related contracts | ||
Commodity-related contracts, net | $ 22,260 | $ 7,044 |
Energy risk management assets | ||
Commodity-related contracts | ||
FTRs in energy risk management assets | 23,163 | 7,396 |
Other current liabilities | ||
Commodity-related contracts | ||
FTRs in other current liabilities | $ 903 | $ 352 |
Fair Value Accounting - Amount
Fair Value Accounting - Amount of Gain (Loss) Recognized in Income on Derivatives (Details) - DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS - Price Risk Derivative - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Commodity contracts | ||||
Net gain (loss) recognized in income on derivatives | $ 5,763 | $ 6,295 | $ 29,061 | $ 16,413 |
Accumulated deferred fuel | ||||
Commodity contracts | ||||
Unrealized gains (losses) associated with FTRs | 4,500 | (1,600) | 6,200 | 800 |
Electric operations | ||||
Commodity contracts | ||||
Gain recognized in income on derivatives | 13,665 | 14,062 | 49,656 | 35,172 |
Power purchased for utility customers | ||||
Commodity contracts | ||||
Loss recognized in income on derivatives | $ (7,902) | $ (7,767) | $ (20,595) | $ (18,759) |
Debt (Details)
Debt (Details) | Jul. 31, 2018USD ($) | Apr. 02, 2018Barge | Mar. 26, 2018USD ($) | Dec. 18, 2017USD ($)tranche | Dec. 31, 2012Barge |
Debt Instrument [Line Items] | |||||
Number of barges | Barge | 42 | 42 | |||
Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, maximum borrowing capacity | $ 100,000,000 | ||||
Senior Notes | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Debt amount | $ 175,000,000 | ||||
Number of issuance tranches | tranche | 2 | ||||
Senior Notes | Senior Notes - 2.94% | |||||
Debt Instrument [Line Items] | |||||
Debt amount | $ 25,000,000 | ||||
Interest rate, stated percentage | 2.94% | ||||
Senior Notes | Senior Notes - 3.08% | |||||
Debt Instrument [Line Items] | |||||
Debt amount | $ 100,000,000 | ||||
Interest rate, stated percentage | 3.08% | ||||
Senior Notes | Senior Notes - 3.17% | |||||
Debt Instrument [Line Items] | |||||
Debt amount | $ 50,000,000 | ||||
Interest rate, stated percentage | 3.17% | ||||
Notes Payable to Banks | Bank Term Loan Agreement | |||||
Debt Instrument [Line Items] | |||||
Debt amount | $ 300,000,000 |
Pension Plan and Employee Ben_3
Pension Plan and Employee Benefits - Net Periodic Pension and Other Benefits Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
PENSION BENEFITS | ||||
Components of periodic benefit costs | ||||
Service cost | $ 2,377 | $ 2,260 | $ 7,130 | $ 6,779 |
Interest cost | 5,215 | 5,412 | 15,869 | 16,235 |
Expected return on plan assets | (5,943) | (6,016) | (17,818) | (18,048) |
Amortizations | ||||
Prior period service credit | (18) | (18) | (53) | (53) |
Net loss (gain) | 3,078 | 2,502 | 8,998 | 7,506 |
Net periodic benefit cost | 4,709 | 4,140 | 14,126 | 12,419 |
OTHER BENEFITS | ||||
Components of periodic benefit costs | ||||
Service cost | 336 | 314 | 1,011 | 1,084 |
Interest cost | 361 | 372 | 1,076 | 1,176 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Amortizations | ||||
Prior period service credit | 0 | 0 | 0 | 0 |
Net loss (gain) | 96 | (32) | 105 | (37) |
Net periodic benefit cost | $ 793 | $ 654 | $ 2,192 | $ 2,223 |
Pension Plan and Employee Ben_4
Pension Plan and Employee Benefits - Narrative (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2016 | |
Pension Plan | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Net periodic benefit cost | $ 4,709,000 | $ 4,140,000 | $ 14,126,000 | $ 12,419,000 | ||
Other Benefits Plan | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Net periodic benefit cost | 793,000 | 654,000 | 2,192,000 | 2,223,000 | ||
Assets held-in-trust, noncurrent | 0 | 0 | ||||
SERP | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Net periodic benefit cost | 1,593,000 | 1,412,000 | 4,779,000 | 4,551,000 | ||
Discount rate | 4.08% | 4.22% | ||||
Special termination benefit for executive officer | $ 300,000 | 0 | 0 | 0 | 315,000 | |
CLECO POWER | Other Benefits Plan | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Net periodic benefit cost | 900,000 | 800,000 | 2,500,000 | 2,500,000 | ||
CLECO POWER | SERP | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Net periodic benefit cost | 400,000 | 300,000 | 1,100,000 | 900,000 | ||
Other Subsidiaries | Pension Plan | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Net periodic benefit cost | $ 500,000 | $ 500,000 | $ 1,500,000 | $ 1,400,000 |
Pension Plan and Employee Ben_5
Pension Plan and Employee Benefits - Current and Non-Current Portions of the Other Benefits Liability (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Defined Benefit Plan Disclosure [Line Items] | ||
Non-current | $ 244,811 | $ 242,135 |
Other Benefits Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Current | 4,061 | 4,061 |
Non-current | 37,879 | 39,142 |
CLECO POWER | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Non-current | 173,559 | 173,747 |
CLECO POWER | Other Benefits Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Current | 3,525 | 3,525 |
Non-current | $ 33,013 | $ 34,033 |
Pension Plan and Employee Ben_6
Pension Plan and Employee Benefits - Net Periodic Benefit Cost Related to SERP (Details) - SERP Benefits - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Components of periodic benefit costs | |||||
Service cost | $ 136 | $ 123 | $ 407 | $ 370 | |
Interest cost | 769 | 810 | 2,296 | 2,430 | |
Amortizations | |||||
Prior period service credit | (35) | (57) | (104) | (124) | |
Net loss | 723 | 536 | 2,180 | 1,560 | |
Net periodic benefit cost | 1,593 | 1,412 | 4,779 | 4,236 | |
Special/contractual termination benefits | $ 300 | 0 | 0 | 0 | 315 |
Net periodic benefit cost | $ 1,593 | $ 1,412 | $ 4,779 | $ 4,551 |
Pension Plan and Employee Ben_7
Pension Plan and Employee Benefits - Current and Non-Current Portions of SERP Liability (Details) - SERP Benefits - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Defined Benefit Plan Disclosure [Line Items] | ||
Current | $ 4,471 | $ 4,471 |
Non-current | 79,300 | 79,868 |
CLECO POWER | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Current | 929 | 929 |
Non-current | $ 12,914 | $ 16,589 |
Pension Plan and Employee Ben_8
Pension Plan and Employee Benefits - 401 (K) Plans (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Defined Contribution Plan Disclosure [Line Items] | ||||
401(k) Plan expense | $ 1,424 | $ 1,386 | $ 4,716 | $ 4,259 |
Other Subsidiaries | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
401(k) Plan expense | $ 254 | $ 234 | $ 865 | $ 710 |
Income Taxes - Effective Tax Ra
Income Taxes - Effective Tax Rate Reconciliation (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Effective Income Tax Rate [Line Items] | ||||
Effective tax rate | 19.40% | 33.70% | 20.70% | 35.50% |
CLECO POWER | ||||
Effective Income Tax Rate [Line Items] | ||||
Effective tax rate | 22.10% | 35.40% | 23.10% | 36.80% |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Uncertain Tax Positions [Line Items] | |||
Interest payable related to uncertain tax positions | $ 0 | $ 0 | |
Interest expense related to uncertain tax positions | 0 | $ 0 | |
Liability for uncertain tax positions | 0 | ||
Penalties | 0 | 0 | |
Decrease in deferred income taxes | 46,300,000 | ||
Decrease in ADIT liability | 0 | 394,900,000 | |
CLECO POWER | |||
Uncertain Tax Positions [Line Items] | |||
Interest payable related to uncertain tax positions | 0 | 0 | |
Interest expense related to uncertain tax positions | 0 | $ 0 | |
Decrease in deferred income taxes | 14,300,000 | ||
Decrease in ADIT liability | $ 0 | $ 362,900,000 |
Disclosures about Segments (Det
Disclosures about Segments (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2018USD ($)entity | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($)entity | Sep. 30, 2017USD ($) | Dec. 31, 2017USD ($) | Apr. 13, 2016USD ($) | |
Segment Reporting [Abstract] | ||||||
Number of transmission interconnection facility subsidiaries | entity | 2 | 2 | ||||
Revenue | ||||||
Electric operations | $ 341,062 | $ 317,589 | $ 897,486 | $ 839,080 | ||
Other operations | 20,186 | 21,282 | 61,067 | 59,627 | ||
Affiliate revenue | 0 | 0 | 0 | 0 | ||
Electric customer credits | (2,992) | (372) | (24,276) | (1,045) | ||
Operating revenue, net | 358,256 | 338,499 | 934,277 | 897,662 | ||
Depreciation and amortization | 43,763 | 42,228 | 128,076 | 124,630 | ||
Interest income | 1,832 | 354 | 4,043 | 1,046 | ||
Interest charges | 31,828 | 30,462 | 94,894 | 92,800 | ||
Federal and state income tax expense (benefit) | 11,419 | 23,054 | 21,947 | 42,381 | ||
Net income (loss) | 47,360 | 45,304 | 84,060 | 77,041 | ||
Additions to property, plant, and equipment | 194,619 | 185,609 | ||||
Equity investment in investee | 18,172 | 18,172 | $ 18,172 | |||
Goodwill | 1,490,797 | 1,490,797 | 1,490,797 | $ 1,490,000 | ||
Total segment assets | 6,461,835 | 6,461,835 | 6,278,382 | |||
Operating Segments | CLECO POWER | ||||||
Revenue | ||||||
Electric operations | 343,482 | 320,009 | 904,746 | 847,417 | ||
Other operations | 20,186 | 20,768 | 61,066 | 58,083 | ||
Affiliate revenue | 223 | 209 | 651 | 649 | ||
Electric customer credits | (2,992) | (372) | (24,276) | (1,045) | ||
Operating revenue, net | 360,899 | 340,614 | 942,187 | 905,104 | ||
Depreciation and amortization | 41,687 | 40,049 | 121,796 | 118,280 | ||
Interest income | 1,606 | 332 | 3,560 | 926 | ||
Interest charges | 17,895 | 17,141 | 53,658 | 52,654 | ||
Federal and state income tax expense (benefit) | 18,016 | 30,092 | 39,724 | 63,010 | ||
Net income (loss) | 63,336 | 54,852 | 132,359 | 108,439 | ||
Additions to property, plant, and equipment | 193,708 | 183,604 | ||||
Equity investment in investee | 18,172 | 18,172 | 18,172 | |||
Goodwill | 1,490,797 | 1,490,797 | 1,490,797 | |||
Total segment assets | 5,808,604 | 5,808,604 | 5,679,538 | |||
OTHER | ||||||
Revenue | ||||||
Electric operations | (2,420) | (2,420) | (7,260) | (8,337) | ||
Other operations | 0 | 514 | 1 | 1,544 | ||
Affiliate revenue | 22,765 | 13,517 | 55,707 | 41,882 | ||
Electric customer credits | 0 | 0 | 0 | 0 | ||
Operating revenue, net | 20,345 | 11,611 | 48,448 | 35,089 | ||
Depreciation and amortization | 2,076 | 2,179 | 6,281 | 6,351 | ||
Interest income | 310 | 31 | 652 | 271 | ||
Interest charges | 14,017 | 13,331 | 41,409 | 40,297 | ||
Federal and state income tax expense (benefit) | (6,597) | (7,038) | (17,777) | (20,629) | ||
Net income (loss) | (15,975) | (9,548) | (48,299) | (31,398) | ||
Additions to property, plant, and equipment | 911 | 2,005 | ||||
Equity investment in investee | 0 | 0 | 0 | |||
Goodwill | 0 | 0 | 0 | |||
Total segment assets | 688,066 | 688,066 | 619,943 | |||
ELIMINATIONS | ||||||
Revenue | ||||||
Electric operations | 0 | 0 | 0 | 0 | ||
Other operations | 0 | 0 | 0 | |||
Affiliate revenue | (22,988) | (13,726) | (56,358) | (42,531) | ||
Electric customer credits | 0 | 0 | 0 | 0 | ||
Operating revenue, net | (22,988) | (13,726) | (56,358) | (42,531) | ||
Depreciation and amortization | 0 | 0 | (1) | (1) | ||
Interest income | (84) | (9) | (169) | (151) | ||
Interest charges | (84) | (10) | (173) | (151) | ||
Federal and state income tax expense (benefit) | 0 | 0 | 0 | 0 | ||
Net income (loss) | (1) | $ 0 | 0 | 0 | ||
Additions to property, plant, and equipment | 0 | $ 0 | ||||
Equity investment in investee | 0 | 0 | 0 | |||
Goodwill | 0 | 0 | 0 | |||
Total segment assets | $ (34,835) | $ (34,835) | $ (21,099) |
Regulation and Rates (Details)
Regulation and Rates (Details) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 48 Months Ended | ||||||
Sep. 30, 2018USD ($) | Sep. 30, 2016 | Nov. 30, 2013 | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($)claim | Sep. 30, 2017USD ($) | Dec. 31, 2017USD ($) | Jun. 30, 2018USD ($) | Oct. 31, 2017USD ($) | Feb. 28, 2017USD ($) | |
Regulation and Rates [Line Items] | |||||||||||
Refund due to customers | $ 26,923,000 | $ 26,923,000 | $ 26,923,000 | $ 4,206,000 | |||||||
Decrease in Other operations revenue | (20,186,000) | $ (21,282,000) | (61,067,000) | $ (59,627,000) | |||||||
Decrease in Power purchased for utility customers | (29,608,000) | (39,355,000) | $ (132,921,000) | (114,675,000) | |||||||
Federal and state combined statutory tax rate | 26.00% | 38.00% | |||||||||
Tax Cuts and Jobs Act of 2017, customer refund liability | 22,700,000 | 22,700,000 | $ 22,700,000 | ||||||||
CLECO POWER | |||||||||||
Regulation and Rates [Line Items] | |||||||||||
Refund due to customers | 26,923,000 | 26,923,000 | 26,923,000 | $ 4,206,000 | |||||||
Payments received for capital expenditures subject to refund | 4,500,000 | 4,500,000 | 4,500,000 | ||||||||
Decrease in Other operations revenue | (20,186,000) | (20,768,000) | (61,066,000) | (58,083,000) | |||||||
Decrease in Power purchased for utility customers | (29,608,000) | $ (39,355,000) | $ (132,921,000) | $ (114,675,000) | |||||||
CLECO POWER | FERC | |||||||||||
Regulation and Rates [Line Items] | |||||||||||
Decrease in Other operations revenue | 2,000,000 | ||||||||||
Decrease in Power purchased for utility customers | 1,000,000 | ||||||||||
CLECO POWER | MISO Transmission Rates | FERC | |||||||||||
Regulation and Rates [Line Items] | |||||||||||
Loss contingency, new claims filed, number | claim | 2 | ||||||||||
Refund due to customers | 2,100,000 | 2,100,000 | $ 2,100,000 | $ 1,200,000 | |||||||
Target ROE allowed by FRP | 10.32% | 12.38% | |||||||||
CLECO POWER | FRP | LPSC | |||||||||||
Regulation and Rates [Line Items] | |||||||||||
Target ROE allowed by FRP | 10.00% | ||||||||||
Percentage of retail earnings within range to be returned to customers (in hundredths) | 60.00% | ||||||||||
ROE for customer credit, low range | 10.90% | ||||||||||
ROE for customer credit, high range | 11.75% | ||||||||||
CLECO POWER | FRP | LPSC | Maximum | |||||||||||
Regulation and Rates [Line Items] | |||||||||||
Target ROE allowed by FRP | 10.90% | ||||||||||
CLECO POWER | 2017 FRP Monitoring Report | LPSC | |||||||||||
Regulation and Rates [Line Items] | |||||||||||
Refund due to customers | $ 0 | ||||||||||
CLECO POWER | 2017 FRP Monitoring Report, Cost of Service Savings | LPSC | |||||||||||
Regulation and Rates [Line Items] | |||||||||||
Refund due to customers | 1,200,000 | 1,200,000 | 1,200,000 | $ 1,200,000 | |||||||
CLECO POWER | 2018 FRP Monitoring Report, Earnings-Related Refunds | LPSC | |||||||||||
Regulation and Rates [Line Items] | |||||||||||
Refund due to customers | $ 0 | ||||||||||
CLECO POWER | 2018 FRP Monitoring Report, Cost of Service Savings | LPSC | |||||||||||
Regulation and Rates [Line Items] | |||||||||||
Refund due to customers | $ 1,200,000 | ||||||||||
CLECO POWER | SSR | FERC | |||||||||||
Regulation and Rates [Line Items] | |||||||||||
Amount collected in SSR payments from MISO | 20,300,000 | 20,300,000 | 20,300,000 | ||||||||
CLECO POWER | SSR 2 | FERC | |||||||||||
Regulation and Rates [Line Items] | |||||||||||
Amount collected in SSR payments from MISO | $ 11,800,000 | $ 11,800,000 | $ 11,800,000 |
Variable Interest Entities - Na
Variable Interest Entities - Narrative (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | |
Variable Interest Entity [Line Items] | ||
Equity investment in investee | $ 18,172 | $ 18,172 |
CLECO POWER | ||
Variable Interest Entity [Line Items] | ||
Equity investment in investee | $ 18,172 | $ 18,172 |
CLECO POWER | Oxbow | ||
Variable Interest Entity [Line Items] | ||
Ownership percentage by Cleco Power (in hundredths) | 50.00% | |
Ownership percentage by other parties (in hundredths) | 50.00% |
Variable Interest Entities - Eq
Variable Interest Entities - Equity Method Investments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Schedule of Equity Method Investments [Line Items] | |||||
Total equity investment in investee | $ 18,172 | $ 18,172 | $ 18,172 | ||
Cleco Power | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Purchase price | 12,873 | 12,873 | 12,873 | ||
Cash contributions | 6,399 | 6,399 | 6,399 | ||
Dividends | (1,100) | (1,100) | (1,100) | ||
Total equity investment in investee | 18,172 | 18,172 | $ 18,172 | ||
Operating revenue | 2,214 | $ 392 | 4,134 | $ 1,997 | |
Operating expenses | 2,214 | 392 | 4,134 | 1,997 | |
Income before taxes | $ 0 | $ 0 | $ 0 | $ 0 |
Variable Interest Entities - Ca
Variable Interest Entities - Carrying Amount of Assets and Liabilities with Maximum Exposure to Loss (Details) - Cleco Power - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Variable Interest Entity [Line Items] | ||
Oxbow’s net assets/liabilities | $ 36,345 | $ 36,345 |
Oxbow | ||
Variable Interest Entity [Line Items] | ||
Cleco Power’s 50% equity | 18,172 | 18,172 |
Cleco Power’s maximum exposure to loss | $ 18,172 | $ 18,172 |
Litigation, Other Commitments_3
Litigation, Other Commitments and Contingencies, and Disclosures about Guarantees - Litigation (Details) $ in Thousands | May 22, 2018USD ($) | Sep. 30, 2016 | Jun. 30, 2016petition | Sep. 30, 2015USD ($) | Nov. 30, 2014 | Nov. 30, 2013 | Dec. 31, 2017USD ($) | Sep. 30, 2018USD ($) | Feb. 28, 2017USD ($) |
Loss Contingencies [Line Items] | |||||||||
Provision for rate refund | $ 4,206 | $ 26,923 | |||||||
Loss contingency, estimate of possible loss | 4,600 | ||||||||
FERC | MISO Transmission Rates | |||||||||
Loss Contingencies [Line Items] | |||||||||
Public utilities, requested rate increase (decrease), percentage (in hundredths) | 0.50% | ||||||||
Gulf Coast Spinning start up costs | |||||||||
Loss Contingencies [Line Items] | |||||||||
Allegations by plaintiff, failure to perform | $ 6,500 | ||||||||
Gulf Coast Spinning construction of cotton spinning facility | |||||||||
Loss Contingencies [Line Items] | |||||||||
Allegations by plaintiff, failure to perform | $ 60,000 | ||||||||
CLECO POWER | |||||||||
Loss Contingencies [Line Items] | |||||||||
Provision for rate refund | 4,206 | 26,923 | |||||||
CLECO POWER | LPSC 2016-2017 Fuel Audit | |||||||||
Loss Contingencies [Line Items] | |||||||||
Fuel costs | $ 536,200 | ||||||||
CLECO POWER | LPSC 2016-2017 EAC Audit | |||||||||
Loss Contingencies [Line Items] | |||||||||
Loss contingency, damages sought, value | $ 30,700 | ||||||||
CLECO POWER | LPSC Nov 2010-Dec 2015 EAC Audit | |||||||||
Loss Contingencies [Line Items] | |||||||||
Number of petitions filed with the U.S. Court of Appeals | petition | 6 | ||||||||
CLECO POWER | FERC | MISO Transmission Rates | |||||||||
Loss Contingencies [Line Items] | |||||||||
Public utilities, approved return on equity, percentage (In hundredths) | 10.32% | 12.38% | |||||||
Public utilities, proposed return on equity, percentage (in hundredths) | 9.70% | 6.68% | |||||||
Provision for rate refund | $ 2,100 | $ 1,200 |
Litigation, Other Commitments_4
Litigation, Other Commitments and Contingencies, and Disclosures about Guarantees - Off-Balance Sheet Commitments and Guarantees (Details) | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Guarantor Obligations [Line Items] | |
Guarantor obligations, collateral held directly or by third parties, amount | $ 0 |
Performance Guarantee | |
Guarantor Obligations [Line Items] | |
Guarantor obligations, maximum exposure, undiscounted | 42,400,000 |
Indemnification Agreement | |
Guarantor Obligations [Line Items] | |
Guarantor obligations, maximum exposure, undiscounted | 40,000,000 |
Indemnification Agreement including fundamental organizational structure | |
Guarantor Obligations [Line Items] | |
Guarantor obligations, maximum exposure, undiscounted | 400,000,000 |
CLECO POWER | Indemnification Agreement | |
Guarantor Obligations [Line Items] | |
Guarantor obligations, maximum exposure, undiscounted | 40,000,000 |
CLECO POWER | Indemnification Agreement including fundamental organizational structure | |
Guarantor Obligations [Line Items] | |
Guarantor obligations, maximum exposure, undiscounted | 400,000,000 |
CLECO POWER | Financial Guarantee | |
Guarantor Obligations [Line Items] | |
Guarantor obligations, maximum exposure, undiscounted | $ 101,100,000 |
Litigation, Other Commitments_5
Litigation, Other Commitments and Contingencies, and Disclosures about Guarantees - Other Commitments (Details) | Apr. 02, 2018USD ($)Barge | Sep. 30, 2018USD ($) | Sep. 30, 2018USD ($) | Jul. 31, 2018USD ($) | Dec. 31, 2012Barge | Dec. 31, 2008 |
Other Commitments [Line Items] | ||||||
Energy investment, useful life | 10 years | |||||
Tax benefits in excess of capital contributions | $ 18,300,000 | $ 18,300,000 | ||||
Period of recognition of gross investment amortization expense (in years) | 10 years | |||||
Number of barges | Barge | 42 | 42 | ||||
Capital leased assets, number of units | Barge | 42 | |||||
Cleco Holdings | ||||||
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 | $ 285,500,000 | |||||
Net tax benefits and cash to be received from the Fund | 303,800,000 | |||||
US Bancorp Community Development (USBCDC) | ||||||
Other Commitments [Line Items] | ||||||
Membership interest in U.S Bank New Markets Tax Credit Fund (in hundredths) | 0.10% | |||||
Cleco Power | ||||||
Other Commitments [Line Items] | ||||||
Repayments of long-term capital lease obligations | 700,000 | 1,300,000 | ||||
Sublease revenue | $ 200,000 | $ 300,000 | ||||
Notes Payable to Banks | Bank Term Loan Agreement | ||||||
Other Commitments [Line Items] | ||||||
Debt amount | $ 300,000,000 | |||||
Revolving Credit Facility | ||||||
Other Commitments [Line Items] | ||||||
Line of credit facility, maximum borrowing capacity | $ 100,000,000 | |||||
Savage Inland Marine | Cleco Power | ||||||
Other Commitments [Line Items] | ||||||
Loans receivable, related party | $ 16,800,000 |
Litigation, Other Commitments_6
Litigation, Other Commitments and Contingencies, and Disclosures about Guarantees - Analysis of Leased Property Under Capital Lease (Details) - CLECO POWER - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Loss Contingencies [Line Items] | ||
Barges | $ 16,800 | $ 0 |
Less: accumulated amortization | 560 | 0 |
Net capital lease | $ 16,240 | $ 0 |
Litigation, Other Commitments_7
Litigation, Other Commitments and Contingencies, and Disclosures about Guarantees - Minimum Capital Lease Payments (Details) - CLECO POWER $ in Thousands | Sep. 30, 2018USD ($) |
Loss Contingencies [Line Items] | |
Three months ending Dec. 31, 2018 | $ 653 |
Years ending Dec. 31, | |
2,019 | 2,611 |
2,020 | 2,611 |
2,021 | 2,611 |
2,022 | 2,611 |
2,023 | 2,611 |
Thereafter | 23,654 |
Total minimum lease payments | 37,362 |
Less: executory costs | 5,919 |
Net minimum lease payments | 31,443 |
Less: amount representing interest | 14,894 |
Present value of net minimum lease payments | 16,549 |
Current liabilities | 543 |
Non-current liabilities | $ 16,006 |
Affiliate Transactions (Details
Affiliate Transactions (Details) - CLECO POWER - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Related Party Transaction [Line Items] | ||
ACCOUNTS RECEIVABLE | $ 1,372 | $ 1,355 |
ACCOUNTS PAYABLE | 10,574 | 8,697 |
Cleco Holdings | ||
Related Party Transaction [Line Items] | ||
ACCOUNTS RECEIVABLE | 97 | 743 |
ACCOUNTS PAYABLE | 635 | 113 |
Support Group | ||
Related Party Transaction [Line Items] | ||
ACCOUNTS RECEIVABLE | 1,275 | 608 |
ACCOUNTS PAYABLE | 9,939 | 8,582 |
Other | ||
Related Party Transaction [Line Items] | ||
ACCOUNTS RECEIVABLE | 0 | 4 |
ACCOUNTS PAYABLE | $ 0 | $ 2 |
Intangible Assets and Goodwil_2
Intangible Assets and Goodwill - Intangible Assets (Details) - USD ($) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2008 | Dec. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | |||
Accumulated amortization | $ 69,016,000 | $ 45,948,000 | |
Trade name | |||
Finite-Lived Intangible Assets [Line Items] | |||
Residual value | $ 0 | ||
Finite-lived intangible asset, useful life | 20 years | ||
Power supply agreements | |||
Finite-Lived Intangible Assets [Line Items] | |||
Residual value | $ 0 | ||
Power supply agreements | Minimum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible asset, useful life | 5 years | ||
Power supply agreements | Maximum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible asset, useful life | 17 years | ||
CLECO POWER | |||
Finite-Lived Intangible Assets [Line Items] | |||
Residual value | $ 0 | ||
Accumulated amortization | $ 151,453,000 | $ 0 | $ 135,836,000 |
CLECO POWER | Cleco Katrina/Rita right to bill and collect storm recovery charges | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets acquired | 177,500,000 | ||
CLECO POWER | Cleco Katrina/Rita right to bill and collect storm recovery charges from customers, net of financing costs | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets acquired | 176,000,000 | ||
CLECO POWER | Financing costs | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets acquired | $ 1,500,000 |
Intangible Assets and Goodwil_3
Intangible Assets and Goodwill - Schedule of Amortization of Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Cleco Katrina/Rita right to bill and collect storm recovery charges | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of intangible assets | $ 5,623 | $ 4,643 | $ 15,617 | $ 12,837 |
Trade name | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of intangible assets | 64 | 64 | 191 | 191 |
Power supply agreements | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of intangible assets | 2,420 | 2,420 | 7,260 | 8,337 |
Cleco Power | Cleco Katrina/Rita right to bill and collect storm recovery charges | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of intangible assets | $ 5,623 | $ 4,643 | $ 15,617 | $ 12,837 |
Intangible Assets and Goodwil_4
Intangible Assets and Goodwill - Summary of Intangible Assets (Details) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2008 |
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | $ 160,798,000 | $ 160,798,000 | |
Accumulated amortization | (69,016,000) | (45,948,000) | |
Net intangible assets subject to amortization | 91,782,000 | 114,850,000 | |
Cleco Katrina/Rita right to bill and collect storm recovery charges | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | 70,594,000 | 70,594,000 | |
Trade name | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | 5,100,000 | 5,100,000 | |
Power supply agreements | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | 85,104,000 | 85,104,000 | |
CLECO POWER | |||
Finite-Lived Intangible Assets [Line Items] | |||
Accumulated amortization | (151,453,000) | (135,836,000) | $ 0 |
Net intangible assets subject to amortization | 26,084,000 | 41,701,000 | |
CLECO POWER | Cleco Katrina/Rita right to bill and collect storm recovery charges | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | $ 177,537,000 | $ 177,537,000 |
Intangible Assets and Goodwil_5
Intangible Assets and Goodwill - Goodwill (Details) - USD ($) | 9 Months Ended | ||||
Sep. 30, 2017 | Sep. 30, 2018 | Aug. 01, 2018 | Dec. 31, 2017 | Apr. 13, 2016 | |
Goodwill [Line Items] | |||||
Goodwill | $ 1,490,797,000 | $ 1,490,797,000 | $ 1,490,000,000 | ||
Impairments recorded for goodwill | $ 0 | ||||
WACC | |||||
Goodwill [Line Items] | |||||
Equity, measurement input | 5.70% | ||||
WACC | Pro Forma | Minimum | |||||
Goodwill [Line Items] | |||||
Fair value of equity | $ 3,630,000,000 | ||||
Equity, measurement input | 5.60% | ||||
WACC | Pro Forma | Maximum | |||||
Goodwill [Line Items] | |||||
Fair value of equity | $ 3,470,000,000 | ||||
Equity, measurement input | 5.80% | ||||
Long-term Cash Flow Growth Rate | |||||
Goodwill [Line Items] | |||||
Equity, measurement input | 2.50% | ||||
Long-term Cash Flow Growth Rate | Pro Forma | Minimum | |||||
Goodwill [Line Items] | |||||
Fair value of equity | $ 3,480,000,000 | ||||
Equity, measurement input | 2.40% | ||||
Long-term Cash Flow Growth Rate | Pro Forma | Maximum | |||||
Goodwill [Line Items] | |||||
Fair value of equity | $ 3,620,000,000 | ||||
Equity, measurement input | 2.60% | ||||
Cleco Power | |||||
Goodwill [Line Items] | |||||
Excess of fair value over carrying value, percent | 7.50% | ||||
Excess of fair value over carrying value | $ 247,400,000 | ||||
Accumulated impairment charges | 0 | ||||
Cleco Power | Estimated Fair Value | |||||
Goodwill [Line Items] | |||||
Fair value of equity | 3,550,000,000 | ||||
Cleco Power | Carrying value | |||||
Goodwill [Line Items] | |||||
Fair value of equity | $ 3,300,000,000 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Amounts reclassified from accumulated AOCI | ||||
Total other comprehensive income (loss), net of tax | $ 261 | $ (44) | $ 551 | $ (2,175) |
TOTAL AOCI | ||||
Amounts reclassified from accumulated AOCI | ||||
Total other comprehensive income (loss), net of tax | 551 | |||
POSTRETIREMENT BENEFIT NET LOSS | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balances, beginning of period | (2,631) | (631) | (2,921) | 1,500 |
Other comprehensive loss before reclassifications | ||||
Postretirement benefits adjustment during the period | 0 | (2,065) | ||
Amounts reclassified from accumulated AOCI | ||||
Amounts reclassified from accumulated AOCI | 261 | (44) | 551 | (110) |
Total other comprehensive income (loss), net of tax | 261 | (44) | 551 | (2,175) |
Balances, end of period | (2,370) | (675) | (2,370) | (675) |
CLECO POWER | ||||
Amounts reclassified from accumulated AOCI | ||||
Total other comprehensive income (loss), net of tax | 424 | 220 | 1,052 | 99 |
CLECO POWER | TOTAL AOCI | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balances, beginning of period | (13,055) | (13,543) | (13,683) | (13,422) |
Amounts reclassified from accumulated AOCI | ||||
Total other comprehensive income (loss), net of tax | 1,052 | |||
Balances, end of period | (12,631) | (13,323) | (12,631) | (13,323) |
CLECO POWER | POSTRETIREMENT BENEFIT NET LOSS | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balances, beginning of period | (7,877) | (8,132) | (8,377) | (7,905) |
Other comprehensive loss before reclassifications | ||||
Postretirement benefits adjustment during the period | 0 | (584) | ||
Amounts reclassified from accumulated AOCI | ||||
Amounts reclassified from accumulated AOCI | 312 | 167 | 812 | 524 |
Total other comprehensive income (loss), net of tax | 312 | 167 | 812 | (60) |
Balances, end of period | (7,565) | (7,965) | (7,565) | (7,965) |
CLECO POWER | NET LOSS ON CASH FLOW HEDGES | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balances, beginning of period | (5,178) | (5,411) | (5,306) | (5,517) |
Amounts reclassified from accumulated AOCI | ||||
Amounts reclassified from accumulated AOCI | 112 | 53 | 240 | 159 |
Total other comprehensive income (loss), net of tax | 112 | 53 | 240 | 159 |
Balances, end of period | $ (5,066) | $ (5,358) | $ (5,066) | $ (5,358) |
Plan of Acquisition (Details)
Plan of Acquisition (Details) | Feb. 06, 2018USD ($)MW |
Cleco Holdings | Acquisition Loan Facility, NRG South Central Acquisition | |
Business Acquisition [Line Items] | |
Debt amount | $ | $ 300,000,000 |
Cleco Holdings | Term Loan Facility, NRG South Central Acquisition | |
Business Acquisition [Line Items] | |
Debt amount | $ | 300,000,000 |
Cleco Holdings | Incremental Revolving Facility, NRG Acquisition | |
Business Acquisition [Line Items] | |
Debt amount | $ | $ 75,000,000 |
New Roads, Louisiana | Coal-fired Generating Station | |
Business Acquisition [Line Items] | |
Number of megawatts in station or facility | 588 |
Jennings, Louisiana | Natural-gas-fired Peaking Facility | |
Business Acquisition [Line Items] | |
Number of megawatts in station or facility | 300 |
NRG South Central | |
Business Acquisition [Line Items] | |
Business acquisition, transaction price agreed upon | $ | $ 1,000,000,000 |
NRG South Central | Sterlington, Louisiana | Natural-gas-fired Generating Station | |
Business Acquisition [Line Items] | |
Number of megawatts in station or facility | 176 |
NRG South Central | Jarreau, Louisiana | Natural-gas-fired Facility | |
Business Acquisition [Line Items] | |
Number of megawatts in station or facility | 220 |
NRG South Central | Jarreau, Louisiana | Natural-gas-fired Peaking Facility | |
Business Acquisition [Line Items] | |
Number of megawatts in station or facility | 210 |
NRG South Central | New Roads, Louisiana | Coal-fired Generating Facility | |
Business Acquisition [Line Items] | |
Number of megawatts in station or facility | 580 |
NRG South Central | New Roads, Louisiana | Coal-fired Generating Station | |
Business Acquisition [Line Items] | |
Percentage of voting interests acquired | 58.00% |
NRG South Central | New Roads, Louisiana | Natural-gas-fired Generating Station | |
Business Acquisition [Line Items] | |
Number of megawatts in station or facility | 540 |
NRG South Central | Jennings, Louisiana | |
Business Acquisition [Line Items] | |
Number of megawatts in station or facility | 225 |
NRG South Central | Deweyville, Texas | Natural-gas-fired Generating Station | |
Business Acquisition [Line Items] | |
Number of megawatts in station or facility | 1,263 |