Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Nov. 13, 2019 | |
Entity Information [Line Items] | ||
Entity Registrant Name | Cleco Corporate Holdings LLC | |
Entity Central Index Key | 0001089819 | |
Entity Current Reporting Status | No | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Shell Company | false | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 0 | |
Cleco Power | ||
Entity Information [Line Items] | ||
Entity Registrant Name | CLECO POWER LLC | |
Entity Central Index Key | 0000018672 | |
Entity Current Reporting Status | No | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 0 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Operating revenue | ||||
Electric operations | $ 451,902 | $ 341,062 | $ 1,130,318 | $ 897,486 |
Other operations | 49,780 | 20,186 | 131,544 | 61,067 |
Affiliate revenue | 0 | 0 | 0 | 0 |
Gross operating revenue | 501,682 | 361,248 | 1,261,862 | 958,553 |
Electric customer credits | (13,711) | (2,992) | (31,832) | (24,276) |
Operating revenue, net | 487,971 | 358,256 | 1,230,030 | 934,277 |
Operating expenses | ||||
Fuel used for electric generation | 141,722 | 130,987 | 354,921 | 275,565 |
Purchased power | 85,176 | 29,608 | 213,912 | 132,921 |
Other operations and maintenance | 82,913 | 49,321 | 208,608 | 154,043 |
Depreciation and amortization | 57,004 | 43,763 | 158,395 | 128,076 |
Taxes other than income taxes | 17,611 | 12,091 | 47,081 | 35,674 |
Merger transaction and commitment costs | 2,006 | 6,376 | 7,792 | 13,445 |
Total operating expenses | 386,432 | 272,146 | 990,709 | 739,724 |
Operating income | 101,539 | 86,110 | 239,321 | 194,553 |
Interest income | 1,690 | 1,832 | 4,456 | 4,043 |
Allowance for equity funds used during construction | 3,619 | 3,829 | 14,825 | 9,416 |
Other income (expense), net | (1,363) | (1,164) | 292 | (7,111) |
Interest charges | ||||
Interest charges, net | 37,412 | 33,072 | 111,426 | 98,059 |
Allowance for borrowed funds used during construction | (1,580) | (1,244) | (5,755) | (3,165) |
Total interest charges | 35,832 | 31,828 | 105,671 | 94,894 |
Income before income taxes | 69,653 | 58,779 | 153,223 | 106,007 |
Federal and state income tax expense | 14,088 | 11,419 | 32,355 | 21,947 |
Net income | 55,565 | 47,360 | 120,868 | 84,060 |
CLECO POWER | ||||
Operating revenue | ||||
Electric operations | 339,869 | 343,482 | 862,969 | 904,746 |
Other operations | 18,485 | 20,186 | 53,318 | 61,066 |
Affiliate revenue | 334 | 223 | 971 | 651 |
Gross operating revenue | 358,688 | 363,891 | 917,258 | 966,463 |
Electric customer credits | (13,711) | (2,992) | (30,565) | (24,276) |
Operating revenue, net | 344,977 | 360,899 | 886,693 | 942,187 |
Operating expenses | ||||
Fuel used for electric generation | 116,831 | 130,987 | 297,197 | 275,565 |
Purchased power | 34,908 | 29,608 | 83,048 | 132,921 |
Other operations and maintenance | 57,718 | 50,837 | 148,330 | 158,170 |
Depreciation and amortization | 44,903 | 41,687 | 126,610 | 121,796 |
Taxes other than income taxes | 12,485 | 11,717 | 33,023 | 34,548 |
Total operating expenses | 266,845 | 264,836 | 688,208 | 723,000 |
Operating income | 78,132 | 96,063 | 198,485 | 219,187 |
Interest income | 1,421 | 1,606 | 3,281 | 3,560 |
Allowance for equity funds used during construction | 3,619 | 3,829 | 14,825 | 9,416 |
Other income (expense), net | (1,231) | (2,251) | (2,091) | (6,422) |
Interest charges | ||||
Interest charges, net | 19,563 | 19,139 | 58,253 | 56,823 |
Allowance for borrowed funds used during construction | (1,580) | (1,244) | (5,755) | (3,165) |
Total interest charges | 17,983 | 17,895 | 52,498 | 53,658 |
Income before income taxes | 63,958 | 81,352 | 162,002 | 172,083 |
Federal and state income tax expense | 12,431 | 18,016 | 34,407 | 39,724 |
Net income | $ 51,527 | $ 63,336 | $ 127,595 | $ 132,359 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Net income | $ 55,565 | $ 47,360 | $ 120,868 | $ 84,060 |
Other comprehensive (loss) income, net of tax | ||||
Postretirement benefits gain (loss), net of tax expense (benefit) | (37) | 261 | (319) | 551 |
Total other comprehensive (loss) income, net of tax | (37) | 261 | (319) | 551 |
Comprehensive income, net of tax | 55,528 | 47,621 | 120,549 | 84,611 |
CLECO POWER | ||||
Net income | 51,527 | 63,336 | 127,595 | 132,359 |
Other comprehensive (loss) income, net of tax | ||||
Postretirement benefits gain (loss), net of tax expense (benefit) | 230 | 312 | 515 | 812 |
Amortization of interest rate derivatives to earnings | 63 | 191 | ||
Amortization of interest rate derivatives to earnings | 112 | 240 | ||
Total other comprehensive (loss) income, net of tax | 293 | 424 | 706 | 1,052 |
Comprehensive income, net of tax | $ 51,820 | $ 63,760 | $ 128,301 | $ 133,411 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Tax expense (benefit) of postretirement benefits gain (loss) | $ 13 | $ (26) | $ 112 | $ (128) |
CLECO POWER | ||||
Tax expense (benefit) of postretirement benefits gain (loss) | (81) | (110) | (182) | (287) |
Tax expense on amortization of interest rate derivatives to earnings | $ 22 | $ 67 | ||
Tax expense (benefit) on amortization of interest rate derivatives to earnings | $ 26 | $ (19) |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Current assets | ||
Cash and cash equivalents | $ 101,392 | $ 110,175 |
Restricted cash and cash equivalents | 5,356 | 11,241 |
Customer accounts receivable (less allowance for doubtful accounts) | 125,125 | 50,043 |
Other accounts receivable | 31,089 | 27,196 |
Unbilled revenue | 46,080 | 35,314 |
Fuel inventory, at average cost | 66,441 | 82,836 |
Materials and supplies, at average cost | 121,380 | 92,671 |
Energy risk management assets | 10,671 | 23,355 |
Accumulated deferred fuel | 56,056 | 20,112 |
Cash surrender value of company-/trust-owned life insurance policies | 84,122 | 80,391 |
Prepayments | 6,826 | 7,911 |
Regulatory assets | 19,398 | 22,461 |
Other current assets | 11,714 | 1,256 |
Total current assets | 685,650 | 564,962 |
Property/Utility, plant, and equipment | ||
Property, plant, and equipment | 4,813,017 | 3,728,477 |
Accumulated depreciation | (411,485) | (303,727) |
Net property, plant, and equipment | 4,401,532 | 3,424,750 |
Construction work in progress | 221,386 | 354,045 |
Total property/utility, plant, and equipment, net | 4,622,918 | 3,778,795 |
Equity investment in investee | 17,672 | 18,172 |
Goodwill | 1,490,797 | 1,490,797 |
Prepayments | 24,312 | 2,251 |
Operating lease right of use assets | 29,719 | 0 |
Restricted cash and cash equivalents | 15,113 | 18,670 |
Note receivable | 15,362 | 15,829 |
Regulatory assets | 408,557 | 425,330 |
Intangible assets | 149,440 | 84,307 |
Other deferred charges | 38,833 | 37,701 |
Total assets | 7,498,373 | 6,436,814 |
Current liabilities | ||
Long-term debt and finance leases due within one year | 63,684 | 21,128 |
Accounts payable | 160,240 | 156,589 |
Accounts payable - affiliate | 3,175 | 0 |
Customer deposits | 57,542 | 61,736 |
Provision for rate refund | 50,777 | 35,842 |
Taxes payable, net | 73,875 | 43,674 |
Interest accrued | 43,829 | 15,828 |
Energy risk management liabilities | 1,298 | 468 |
Regulatory liabilities - other | 11,350 | 2,496 |
Deferred compensation | 11,548 | 10,753 |
Other current liabilities | 53,408 | 30,536 |
Total current liabilities | 530,726 | 379,050 |
Long-term liabilities and deferred credits | ||
Accumulated deferred federal and state income taxes, net | 653,529 | 608,030 |
Postretirement benefit obligations | 238,392 | 249,264 |
Regulatory liabilities - other | 0 | 2,496 |
Regulatory liabilities - deferred taxes, net | 144,124 | 155,537 |
Restricted storm reserve | 12,185 | 15,485 |
Deferred lease revenue | 52,163 | 0 |
Intangible liabilities | 33,625 | 0 |
Asset retirement obligations | 23,026 | 6,881 |
Operating lease liabilities | 25,828 | 0 |
Other deferred credits | 25,209 | 20,846 |
Total long-term liabilities and deferred credits | 1,208,081 | 1,058,539 |
Long-term debt and finance leases, net | 3,129,377 | 2,874,485 |
Total liabilities | 4,868,184 | 4,312,074 |
Commitments and contingencies (Note 14) | ||
Member’s equity | ||
Member’s equity | 2,630,189 | 2,124,740 |
Total liabilities and member’s equity | 7,498,373 | 6,436,814 |
CLECO POWER | ||
Current assets | ||
Cash and cash equivalents | 64,237 | 31,987 |
Restricted cash and cash equivalents | 5,356 | 11,241 |
Customer accounts receivable (less allowance for doubtful accounts) | 72,897 | 50,043 |
Accounts receivable - affiliate | 2,074 | 3,318 |
Other accounts receivable | 26,864 | 24,523 |
Unbilled revenue | 46,080 | 35,314 |
Fuel inventory, at average cost | 41,343 | 82,836 |
Materials and supplies, at average cost | 95,157 | 92,671 |
Energy risk management assets | 8,601 | 23,355 |
Accumulated deferred fuel | 56,056 | 20,112 |
Cash surrender value of company-/trust-owned life insurance policies | 17,534 | 20,497 |
Prepayments | 3,020 | 6,143 |
Regulatory assets | 9,466 | 13,603 |
Other current assets | 616 | 1,162 |
Total current assets | 449,301 | 416,805 |
Property/Utility, plant, and equipment | ||
Property, plant, and equipment | 5,325,641 | 5,015,004 |
Accumulated depreciation | (1,873,752) | (1,804,563) |
Net property, plant, and equipment | 3,451,889 | 3,210,441 |
Construction work in progress | 216,959 | 351,828 |
Total property/utility, plant, and equipment, net | 3,668,848 | 3,562,269 |
Equity investment in investee | 17,672 | 18,172 |
Prepayments | 4,213 | 2,251 |
Operating lease right of use assets | 29,375 | 0 |
Restricted cash and cash equivalents | 14,274 | 18,649 |
Note receivable | 15,362 | 15,829 |
Regulatory assets | 255,899 | 261,569 |
Intangible assets | 5,391 | 21,093 |
Other deferred charges | 37,312 | 32,419 |
Total assets | 4,497,647 | 4,349,056 |
Current liabilities | ||
Long-term debt and finance leases due within one year | 61,488 | 21,128 |
Accounts payable | 113,615 | 146,314 |
Accounts payable - affiliate | 8,722 | 7,843 |
Customer deposits | 57,542 | 61,736 |
Provision for rate refund | 49,403 | 35,842 |
Taxes payable, net | 43,133 | 48,177 |
Interest accrued | 24,549 | 8,252 |
Energy risk management liabilities | 577 | 468 |
Regulatory liabilities - other | 11,350 | 2,496 |
Other current liabilities | 27,507 | 22,263 |
Total current liabilities | 397,886 | 354,519 |
Long-term liabilities and deferred credits | ||
Accumulated deferred federal and state income taxes, net | 666,489 | 630,765 |
Postretirement benefit obligations | 172,576 | 182,721 |
Regulatory liabilities - other | 0 | 2,496 |
Regulatory liabilities - deferred taxes, net | 144,124 | 155,537 |
Restricted storm reserve | 12,185 | 15,485 |
Asset retirement obligations | 7,212 | 6,881 |
Operating lease liabilities | 25,682 | 0 |
Other deferred credits | 21,358 | 18,345 |
Total long-term liabilities and deferred credits | 1,049,626 | 1,012,230 |
Long-term debt and finance leases, net | 1,327,301 | 1,387,774 |
Total capitalization | 3,050,135 | 2,982,307 |
Commitments and contingencies (Note 14) | ||
Member’s equity | ||
Member’s equity | 1,722,834 | 1,594,533 |
Total liabilities and member’s equity | $ 4,497,647 | $ 4,349,056 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Customer accounts receivable, allowance for doubtful accounts | $ 3,895 | $ 814 |
CLECO POWER | ||
Customer accounts receivable, allowance for doubtful accounts | $ 3,895 | $ 814 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | ||||
Sep. 30, 2019 | Sep. 30, 2018 | ||||
Operating activities | |||||
Net income | $ 120,868 | $ 84,060 | |||
Adjustments to reconcile net income to net cash provided by operating activities | |||||
Depreciation and amortization | 180,240 | 140,887 | |||
Provision for doubtful accounts | 3,800 | 323 | |||
Unearned compensation expense | 4,015 | 4,112 | |||
Allowance for equity funds used during construction | (14,825) | (9,416) | |||
Loss on risk management assets and liabilities, net | 4,092 | 0 | |||
Deferred lease revenue | (6,137) | 0 | |||
Deferred income taxes | 27,033 | 5,876 | |||
Deferred fuel costs | (21,207) | (32,903) | |||
Cash surrender value of company-/trust-owned life insurance | (3,731) | (2,635) | |||
Changes in assets and liabilities | |||||
Accounts receivable | (44,070) | (25,487) | |||
Unbilled revenue | (10,767) | (5,968) | |||
Fuel inventory and materials and supplies | 35,488 | 27,951 | |||
Prepayments | (10,680) | 2,446 | |||
Accounts payable | 20,315 | (139) | |||
Accounts payable - affiliate | 3,175 | 0 | |||
Customer deposits | 3,113 | 10,272 | |||
Provision for merger commitments | (1,623) | (2,684) | |||
Postretirement benefit obligations | (11,301) | 3,355 | |||
Regulatory assets and liabilities, net | 8,196 | 11,439 | |||
Other deferred accounts | (5,690) | (582) | |||
Taxes accrued | 29,268 | 43,308 | |||
Interest accrued | 28,001 | 26,223 | |||
Other operating | 3,202 | 4,728 | |||
Net cash provided by operating activities | 340,775 | 285,166 | |||
Investing activities | |||||
Additions to property, plant, and equipment | (251,845) | (194,619) | |||
Allowance for equity funds used during construction | 14,825 | 9,416 | |||
Reimbursement for property loss | 105 | 1,258 | |||
Issuance of note receivable | 0 | (16,800) | |||
Return of investment in company-owned life insurance | 1,891 | 0 | |||
Return of equity investment in tax credit fund | 1,625 | 2,775 | |||
Payment to acquire business, net of cash acquired | (814,969) | 0 | |||
Other investing | 1,402 | 934 | |||
Net cash used in investing activities | (1,046,966) | (197,036) | |||
Financing activities | |||||
Draws on credit facilities | 108,000 | 0 | |||
Payments on credit facilities | (108,000) | 0 | |||
Issuances of long-term debt | 700,000 | 50,000 | |||
Repayment of long-term debt | (390,571) | (19,193) | |||
Payment of financing costs | (5,951) | (734) | |||
Contributions from member | 384,900 | 0 | |||
Distributions to member | 0 | (60,500) | |||
Other financing | (412) | (251) | |||
Net cash provided by (used in) financing activities | 687,966 | (30,678) | |||
Net (decrease) increase in cash, cash equivalents, restricted cash, and restricted cash equivalents | (18,225) | 57,452 | |||
Cash, cash equivalents, restricted cash, and restricted cash equivalents at beginning of period | [1] | 140,086 | 152,202 | ||
Cash, cash equivalents, restricted cash, and restricted cash equivalents at end of period | [2] | 121,861 | 209,654 | ||
Supplementary cash flow information | |||||
Interest paid, net of amount capitalized | 74,055 | 67,158 | |||
Income taxes (refunded) paid, net | (19) | 272 | |||
Supplementary non-cash investing and financing activities | |||||
Accrued additions to property, plant, and equipment | 15,982 | 54,294 | |||
Incurrence of finance lease obligation - barges | 0 | 16,800 | |||
CLECO POWER | |||||
Operating activities | |||||
Net income | 127,595 | 132,359 | |||
Adjustments to reconcile net income to net cash provided by operating activities | |||||
Depreciation and amortization | 130,927 | 126,515 | |||
Provision for doubtful accounts | 3,800 | 323 | |||
Unearned compensation expense | 635 | 1,172 | |||
Allowance for equity funds used during construction | (14,825) | (9,416) | |||
Deferred income taxes | 24,063 | 5,950 | |||
Deferred fuel costs | (21,207) | (32,903) | |||
Cash surrender value of company-/trust-owned life insurance | 2,963 | (167) | |||
Changes in assets and liabilities | |||||
Accounts receivable | (38,373) | (25,141) | |||
Accounts receivable - affiliate | 2,606 | 1,456 | |||
Unbilled revenue | (10,767) | (5,968) | |||
Fuel inventory and materials and supplies | 39,090 | 27,951 | |||
Prepayments | 747 | 1,929 | |||
Accounts payable | 22,362 | 1,982 | |||
Accounts payable - affiliate | 757 | (2,005) | |||
Customer deposits | 3,113 | 10,272 | |||
Provision for merger commitments | (1,623) | (2,684) | |||
Postretirement benefit obligations | (10,809) | 3,054 | |||
Regulatory assets and liabilities, net | 6,706 | 9,948 | |||
Other deferred accounts | (5,630) | (155) | |||
Taxes accrued | (7,743) | 6,544 | |||
Interest accrued | 16,297 | 15,572 | |||
Other operating | 2,075 | 4,359 | |||
Net cash provided by operating activities | 272,759 | 270,947 | |||
Investing activities | |||||
Additions to property, plant, and equipment | (247,987) | (193,708) | |||
Allowance for equity funds used during construction | 14,825 | 9,416 | |||
Reimbursement for property loss | 105 | 1,258 | |||
Issuance of note receivable | 0 | (16,800) | |||
Return of investment in company-owned life insurance | 1,891 | 0 | |||
Other investing | 1,402 | 934 | |||
Net cash used in investing activities | (229,764) | (198,900) | |||
Financing activities | |||||
Draws on credit facilities | 33,000 | 0 | |||
Payments on credit facilities | (33,000) | 0 | |||
Issuances of long-term debt | 0 | 50,000 | |||
Repayment of long-term debt | (20,571) | (19,193) | |||
Distributions to member | 0 | (121,400) | |||
Other financing | (434) | (960) | |||
Net cash provided by (used in) financing activities | (21,005) | (91,553) | |||
Net (decrease) increase in cash, cash equivalents, restricted cash, and restricted cash equivalents | 21,990 | (19,506) | |||
Cash, cash equivalents, restricted cash, and restricted cash equivalents at beginning of period | 61,877 | [3] | 102,957 | [1] | |
Cash, cash equivalents, restricted cash, and restricted cash equivalents at end of period | 83,867 | [4] | 83,451 | [2] | |
Supplementary cash flow information | |||||
Interest paid, net of amount capitalized | 34,893 | 37,764 | |||
Supplementary non-cash investing and financing activities | |||||
Accrued additions to property, plant, and equipment | 15,668 | 54,166 | |||
Incurrence of finance lease obligation - barges | $ 0 | $ 16,800 | |||
[1] | Includes cash and cash equivalents of $110,175, current restricted cash and cash equivalents of $11,241, and non-current restricted cash and cash equivalents of $18,670. | ||||
[2] | Includes cash and cash equivalents of $101,392, current restricted cash and cash equivalents of $5,356, and non-current restricted cash and cash equivalents of $15,113. | ||||
[3] | Includes cash and cash equivalents of $31,987, current restricted cash and cash equivalents of $11,241, and non-current restricted cash and cash equivalents of $18,649. | ||||
[4] | Includes cash and cash equivalents of $64,237, current restricted cash and cash equivalents of $5,356, and non-current restricted cash and cash equivalents of $14,274. |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Cash and cash equivalents | $ 101,392 | $ 110,175 |
Restricted cash and cash equivalents, current | 5,356 | 11,241 |
Restricted cash and cash equivalents, noncurrent | 15,113 | 18,670 |
CLECO POWER | ||
Cash and cash equivalents | 64,237 | 31,987 |
Restricted cash and cash equivalents, current | 5,356 | 11,241 |
Restricted cash and cash equivalents, noncurrent | $ 14,274 | $ 18,649 |
Condensed Consolidated Statem_6
Condensed Consolidated Statements of Changes in Member’s Equity (Unaudited) - 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 to member | (60,500) | (60,500) | (121,400) | (121,400) | |||
Net income | 84,060 | 84,060 | 132,359 | 132,359 | |||
Other comprehensive income (loss), 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) |
Balances, beginning of period at Jun. 30, 2018 | 2,093,447 | 2,069,376 | 26,702 | (2,631) | 1,549,331 | 1,562,386 | (13,055) |
Increase (Decrease) in Equity [Roll Forward] | |||||||
Distributions to member | (20,600) | (20,600) | (50,400) | (50,400) | |||
Net income | 47,360 | 47,360 | 63,336 | 63,336 | |||
Other comprehensive income (loss), net of tax | 261 | 261 | 424 | 424 | |||
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) |
Balances, beginning of period at Dec. 31, 2018 | 2,124,740 | 2,069,376 | 53,578 | 1,786 | 1,594,533 | 1,607,715 | (13,182) |
Increase (Decrease) in Equity [Roll Forward] | |||||||
Contribution from member | 384,900 | 384,900 | |||||
Net income | 120,868 | 120,868 | 127,595 | 127,595 | |||
Other comprehensive income (loss), net of tax | (319) | (319) | 706 | 706 | |||
Balances, end of period at Sep. 30, 2019 | 2,630,189 | 2,069,376 | 559,346 | 1,467 | 1,722,834 | 1,735,310 | (12,476) |
Balances, beginning of period at Jun. 30, 2019 | 2,574,661 | 2,069,376 | 503,781 | 1,504 | 1,671,014 | 1,683,783 | (12,769) |
Increase (Decrease) in Equity [Roll Forward] | |||||||
Net income | 55,565 | 55,565 | 51,527 | 51,527 | |||
Other comprehensive income (loss), net of tax | (37) | (37) | 293 | 293 | |||
Balances, end of period at Sep. 30, 2019 | $ 2,630,189 | $ 2,069,376 | $ 559,346 | $ 1,467 | $ 1,722,834 | $ 1,735,310 | $ (12,476) |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2019 | |
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. Cleco’s condensed consolidated financial statements include the financial results of Cleco Cajun from the closing of the Cleco Cajun Transaction on February 4, 2019, through September 30, 2019. For more information about the Cleco Cajun Transaction, see Note 2 — “Business Combination.” 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 on Form 10-Q 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 fiscal year ended December 31, 2018. 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 the following: Cleco (THOUSANDS) AT SEPT. 30, 2019 AT DEC. 31, 2018 Current Cleco Katrina/Rita’s storm recovery bonds $ 3,612 $ 9,505 Cleco Power’s charitable contributions 1,200 1,200 Cleco Power’s rate credit escrow 544 536 Total current 5,356 11,241 Non-current Diversified Lands’ mitigation escrow 22 21 Cleco Cajun’s defense fund 717 — Cleco Cajun’s margin deposits 100 — Cleco Power’s future storm restoration costs 12,089 15,391 Cleco Power’s charitable contributions 2,185 2,753 Cleco Power’s rate credit escrow — 505 Total non-current 15,113 18,670 Total restricted cash and cash equivalents $ 20,469 $ 29,911 Cleco Power (THOUSANDS) AT SEPT. 30, 2019 AT DEC. 31, 2018 Current Cleco Katrina/Rita’s storm recovery bonds $ 3,612 $ 9,505 Charitable contributions 1,200 1,200 Rate credit escrow 544 536 Total current 5,356 11,241 Non-current Future storm restoration costs 12,089 15,391 Charitable contributions 2,185 2,753 Rate credit escrow — 505 Total non-current 14,274 18,649 Total restricted cash and cash equivalents $ 19,630 $ 29,890 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, 2018 , to September 30, 2019 , was due to Cleco Katrina/Rita using $20.6 million for scheduled storm recovery bond principal payments and $1.5 million for related interest payments, partially offset by collections of $16.2 million net of administration fees. As part of the Cleco Cajun Transaction, Cleco acquired restricted cash of $ 0.7 million to be used by Cleco Cajun’s cooperative customers for defense funds in the event of potential takeovers. There is no further obligation of Cleco with respect to such expenses, including the replenishment of the fund. Leases Cleco accounts for leases in accordance with accounting guidance effective January 1, 2019. For more information on this guidance, see Note 3 — “Recent Authoritative Guidance.” Cleco determines if a contract is a lease at its inception. If a contract is determined to be a lease, Cleco recognizes a ROU asset and lease liability at the commencement date based on the present value of lease payments over the lease term. The present value of the lease payments is determined by using the implicit interest rate if readily determinable. Cleco’s incremental borrowing rate for a term similar to the duration of the lease based on information available at the commencement date is used if the implicit interest rate is not readily determinable. Cleco recognizes ROU assets and lease liabilities for leasing arrangements with terms greater than one year. Except for the marine transportation asset class, Cleco accounts for lease and non-lease components in a contract as a single lease component for all classes of underlying assets. Cleco’s marine transportation contracts, which include barges and towboats, contain non-lease components, such as maintenance and labor. Cleco allocates the consideration in these contracts between lease and non-lease components based on estimates of fair value from third parties that typically execute leases for this class of assets. Expense for a lessee operating lease is recognized as a single lease cost on a straight-line basis over the lease term and reflected in the appropriate income statement line item based on the leased asset’s function. Income for a lessor operating lease is recognized as a single lease income item on a straight-line basis over the lease term and reflected in the appropriate income statement line item based on the lease asset’s function. 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 7 — “Fair Value Accounting.” Derivatives and Other Risk Management Activity Cleco’s Energy Market Risk Management Policy authorizes hedging of commodity price risk with physical or financially settled derivative instruments. Some of these contracts may qualify for the normal purchase, normal sale (NPNS) exception under derivative accounting guidance. Contracts that do not qualify for NPNS accounting treatment or are not elected for NPNS accounting treatment are marked-to-market and recorded on the balance sheet at their fair value. Cleco Power and Cleco Cajun are awarded and/or purchase FTRs in auctions facilitated by MISO. The majority of these FTRs are purchased in annual auctions during the second quarter, but additional FTRs may be purchased in monthly auctions. FTRs represent economic hedges of future congestion charges that will be incurred in serving customer load. FTRs are derivatives not designated as hedging instruments for accounting purposes. Cleco Power’s FTRs are marked-to-market with the resulting unrealized gains or losses deferred as a component of deferred fuel assets or liabilities in accordance with regulatory policy. At settlement, realized gains or losses are included in the FAC and reflected on customers’ bills as a component of the fuel charge. Cleco Cajun’s FTRs are marked-to-market with the resulting unrealized gains and losses recorded on the income statement as a component of purchased power expense. At settlement, realized gains or losses are also recorded on the income statement as a component of purchased power expense. Cleco Cajun entered into other commodity derivative contracts during the nine months ended September 30, 2019, that did not qualify for hedge accounting under applicable accounting standards. When these contracts are marked-to-market, the resulting unrealized gain or loss is recorded on the income statement as a component of fuel expense. At settlement, realized gains or losses will also be recorded on the income statement as a component of fuel expense. For more information on FTRs and other commodity derivatives, see Note 7 — “Fair Value Accounting — Commodity Contracts.” Cleco may also 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. |
Business Combination
Business Combination | 9 Months Ended |
Sep. 30, 2019 | |
Business Combinations [Abstract] | |
Business Combination | Note 2 — Business Combination On February 4, 2019, Cleco Cajun acquired from NRG Energy all of the outstanding membership interests in South Central Generating. This acquisition will enable Cleco to significantly increase the scale of its operations in Louisiana. As a result, Cleco Cajun owns: • a 176 -MW natural-gas-fired generating station located in Sterlington, Louisiana, • a 220 -MW natural-gas-fired facility and a 210 -MW natural-gas-fired peaking facility, both located in Jarreau, Louisiana, • 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, • 225 MW of a 300 -MW natural-gas-fired peaking facility located in Jennings, Louisiana, • a 1,263 -MW natural-gas-fired generating station located in Deweyville, Texas (the Cottonwood Plant), • wholesale contracts to provide electricity and capacity to nine Louisiana cooperatives, three municipalities across Arkansas, Louisiana, and Texas, and one investor-owned utility, • transmission assets, which consist of equipment and land required to connect the generation stations and the wholesale customers to the transmission grid, and • current assets consisting of cash, inventory, receivables and other miscellaneous assets. Cleco Cajun, NRG Energy, and South Central Generating each made customary representations, warranties and covenants in the Cleco Cajun Transaction, which include customary indemnification provisions. Cleco Holdings has agreed to guarantee the obligations of Cleco Cajun, subject to certain limitations. In addition, upon closing, a lease agreement was executed and delivered 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 will operate it no later than May 2025. Upon closing, Cottonwood Energy became a subsidiary of Cleco Cajun. Regulatory Matters In January 2019, the LPSC approved the Cleco Cajun Transaction. Approval of the transaction was conditioned upon certain commitments, including holding Cleco Power ratepayers harmless for any adverse impacts, increased costs of debt or equity, and credit rating downgrades attributable to the Cleco Cajun Transaction; the repayment of $400.0 million of Cleco Holdings’ debt by 2024, of which $66.7 million in required payments for 2019 was satisfied as of September 30, 2019; and a $4.0 million annual reduction to Cleco Power’s retail customer rates. For more information about the debt and rate reduction commitments, see Note 8 — “Debt” and Note 6 — “Regulatory Assets and Liabilities,” respectively. South Central Generating In 2017, Louisiana Generating received insurance settlement proceeds for costs incurred to resolve a lawsuit which was brought by the EPA and the LDEQ against Louisiana Generating related to Big Cajun II, Unit 3. Entergy Gulf States, as co-owner of Big Cajun II, Unit 3, is expected to be allocated a portion of the insurance settlement proceeds. Any amount allocated to Entergy Gulf States will be determined by ongoing litigation and negotiations. South Central Generating estimated this amount to be $10.0 million . As part of the Cleco Cajun Transaction, Cleco Cajun assumed the $10.0 million contingent liability and NRG Energy indemnified Cleco for losses associated with this litigation matter. As a result, Cleco also recorded a $10.0 million indemnification asset, which was included in the preliminary purchase price allocation. Prior to the Cleco Cajun Transaction, South Central Generating was involved in various litigation matters, including environmental and contract proceedings, before various courts regarding matters arising out of the ordinary course of business. Management is unable to estimate any potential losses that Cleco Cajun may ultimately be responsible for with respect to any one of these matters in the event of a negative outcome. As part of the Cleco Cajun Transaction, NRG Energy indemnified Cleco for losses as of the closing date associated with matters that existed as of the closing date, including pending litigation. Accounting for the Cleco Cajun Transaction As consideration for all of the outstanding membership interest in South Central Generating, Cleco paid cash of approximately $962.2 million , which represents the $1.0 billion acquisition price net of working capital and other adjustments of $37.8 million . In connection with the Cleco Cajun Transaction on February 4, 2019, Cleco Holdings borrowed $300.0 million under a bridge loan agreement and $100.0 million under a term loan agreement. Both loan agreements are variable rate debt and have a three -year term. Both loan agreements contain certain financial covenants, including requiring Cleco Holdings to maintain (i) a debt to capital ratio (as defined in the applicable agreement) below 65% and (ii) a rating applicable to Cleco’s senior debt rating (as defined in the applicable agreement). On September 11, 2019, Cleco Holdings refinanced the remaining amounts due under the $300.0 million bridge loan agreement and a portion of the $100.0 million term loan agreement with the proceeds from a private placement of senior notes. For more information, see Note 8 — “Debt.” Also, in connection with the Cleco Cajun Transaction, Cleco Holdings increased its credit facility capacity by $75.0 million , for a total capacity of $175.0 million . All other terms remained the same. Also in connection with the Cleco Cajun Transaction on February 4, 2019, Cleco Holdings made a $75.0 million draw on its credit facility, which was repaid on February 5, 2019. The remaining cash required to finance the transaction consisted of an equity contribution from Cleco Group of $384.9 million and $102.3 million from cash on hand at Cleco Holdings. In connection with the Cleco Cajun Transaction, Cleco Holdings, on behalf of Cleco Cajun, issued three letters of credit totaling $1.1 million to a capacity agreement customer and a gas transport company. These letters of credit automatically renew each year and have no impact on Cleco Holdings’ credit facility. Cleco Cajun accounted for the Cleco Cajun Transaction as a business combination, and accordingly, the assets acquired and liabilities assumed were recorded at their estimated fair values as of the date of the acquisition. Cleco made certain measurement period adjustments at June 30, 2019. The following chart presents Cleco’s current preliminary purchase price allocation: Preliminary Purchase Price Allocation (THOUSANDS) AT FEB. 4, 2019 Current assets Cash and cash equivalents $ 146,494 Customer and other accounts receivable 49,809 Fuel inventory 22,060 Materials and supplies 25,659 Energy risk management assets 4,193 Other current assets 10,056 Non-current assets Property, plant, and equipment, net 741,203 Prepayments 36,166 Restricted cash and cash equivalents 707 Intangible assets 98,900 Other deferred charges 133 Total assets acquired 1,135,380 Current liabilities Accounts payable 38,478 Taxes payable 723 Energy risk management liabilities 241 Other current liabilities 14,570 Non-current liabilities Accumulated deferred federal and state income taxes, net 7,165 Deferred lease revenue 58,300 Intangible liabilities 38,300 Asset retirement obligations 15,323 Operating lease liabilities 110 Total liabilities assumed 173,210 Total purchase price consideration $ 962,170 The fair values of Cleco Cajun’s acquired assets and assumed liabilities were determined based on significant estimates and assumptions, including projected future cash flows and discount rates reflecting risk inherent in those future cash flows. There were also estimates made to determine the expected useful lives of each class of assets acquired. On the date of the acquisition, preliminary fair value adjustments were recorded on Cleco’s Condensed Consolidated Balance Sheet for the difference between the contract and market price of acquired long-term wholesale power agreements. The preliminary fair value of intangible assets of $98.9 million and intangible liabilities of $14.2 million was reflected in the preliminary purchase price allocation. The valuation of the acquired intangible assets and liabilities was estimated by applying the income method, which is based upon discounted projected future cash flows associated with the underlying contracts. The power supply agreement intangible assets and liabilities are being amortized to Electric operations on Cleco’s Condensed Consolidated Statement of Income over the remaining term of the applicable agreements. As part of the Cleco Cajun Transaction, Cleco assumed an LTSA for maintenance services related to the Cottonwood Plant. The preliminary fair value of the LTSA was estimated by applying the income method. An intangible liability of $24.1 million was reflected in the preliminary purchase price allocation and is being amortized using the straight-line method over the estimated remaining life of the LTSA of seven years . The amortization is included as a reduction to the LTSA prepayments on Cleco’s Condensed Consolidated Balance Sheet. On the date of the acquisition, the preliminary fair value of the lease between Cottonwood Energy and a special-purpose entity that is a subsidiary of NRG Energy was estimated by applying the income method. Deferred lease revenue of $58.3 million was reflected in the preliminary purchase price allocation and is being amortized over the term of the lease agreement. The amortization is included in Other operations revenue on Cleco’s Condensed Consolidated Statement of Income. Valuations were performed to assess the fair value of certain assets acquired and liabilities assumed and were considered preliminary as a result of the short time period between the closing of the acquisition and the end of the first quarter of 2019. Accounting guidance provides that the allocation of the purchase price may be modified up to one year from the date of the acquisition as more information becomes available. Cleco expects these final valuations and assessments will be completed by the end of 2019, which may affect the purchase price allocation. During the second quarter of 2019, certain modifications were made to the preliminary valuations as of February 4, 2019, due to the refinement of valuation models, assumptions, and inputs. The measurement period adjustments were based upon information obtained about facts and circumstances that existed at the acquisition date that, if known, would have affected the measurement of the amounts recognized at that date. Measurement Period Adjustments (THOUSANDS) AT JUNE 30, 2019 Current assets Customer and other accounts receivable $ 1,408 Other current assets $ 56 Non-current assets Property, plant, and equipment, net $ 13,297 Prepayments $ (56 ) Intangible assets $ (3,600 ) Other deferred charges $ 1 Current liabilities Accounts payable $ 3,022 Energy risk management liabilities $ (1 ) Other current liabilities $ 327 Non-current liabilities Accumulated deferred federal and state income taxes, net $ 421 Deferred lease revenue $ (3,600 ) Intangible liabilities $ 6,400 Asset retirement obligations $ 4,534 Operating lease liabilities $ 3 The measurement period adjustments resulted in an increase in electric operations revenue of $0.5 million , a decrease in other operations revenue of $0.1 million , and an increase in depreciation expense of $0.2 million recorded for the three months ended June 30, 2019. During the third quarter of 2019, no additional modifications were made to the preliminary valuation as of February 4, 2019. Consequently, no measurement period adjustments were made. Pro forma Impact of the Cleco Cajun Transaction The following table includes the unaudited pro forma financial information reflecting the consolidated results of operations of Cleco as if the Cleco Cajun Transaction had taken place on January 1, 2018. The pro forma net income for the three and nine months ended September 30, 2019 , was adjusted to exclude nonrecurring transaction-related expenses of $0.6 million and $4.5 million , respectively. The pro forma net income for the three and nine months ended September 30, 2018 , includes nonrecurring transaction-related expenses. The unaudited pro forma financial information presented in the following table is not necessarily indicative of the consolidated results of operations that would have been achieved had the transaction taken place on the dates indicated, or the future consolidated results of operations of the combined companies. Unaudited Pro Forma Financial Information FOR THE THREE MONTHS ENDED SEPT. 30, FOR THE NINE MONTHS ENDED SEPT. 30, (THOUSANDS) 2019 2018 2019 2018 Operating revenue, net $ 487,971 $ 469,419 $ 1,250,787 $ 1,263,182 Net income $ 56,004 $ 71,076 $ 122,771 $ 140,255 |
Recent Authoritative Guidance
Recent Authoritative Guidance | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Authoritative Guidance | Note 3 — Recent Authoritative Guidance In February 2016, FASB amended the guidance to account for leases. Effective January 1, 2019, Cleco adopted the amended guidance using the optional transition method that allows an entity to recognize a cumulative-effect adjustment to the opening balance of retained earnings at the date of adoption, apply the new disclosure requirements beginning in the period of adoption, and continue to present comparative period information as required under previous guidance. In addition, Cleco elected the transition practical expedient that permits an entity to not reassess prior conclusions about lease identification, lease classification, and initial direct costs under the new standard, as well as the practical expedient that permits entities to not assess existing land easements under the new standard. Adoption of this standard resulted in the recognition of ROU assets and lease liabilities for Cleco and Cleco Power’s operating leases of $16.1 million and $15.9 million , respectively. There was no impact to retained earnings as a result of adopting this standard. Adoption of this standard did not materially impact the Registrants’ results of operations or liquidity, and their accounting for finance leases is substantially unchanged. For more information on Cleco’s lease obligations, see Note 4 — “Leases.” In June 2016, FASB amended the guidance for the measurement of credit losses on receivables and certain other assets. The guidance requires use of a current expected loss model, which may result in earlier recognition of credit losses. The adoption of this guidance is effective for fiscal years beginning after December 15, 2019, including interim periods within those years. Management is evaluating the impact that the adoption of this guidance will have on the results of operations, financial condition, or cash flows of the Registrants. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Leases | Note 4 — Leases Cleco maintains operating and finance leases in its ordinary course of business activities. Effective January 1, 2019, Cleco adopted new guidance which requires organizations to recognize lease assets and lease liabilities on the balance sheet and disclose key information about leasing arrangements. A lease is deemed to exist when the right to control the use of identified property, plant, or equipment is conveyed through a contract for a certain period of time and consideration is paid. For more information on the new guidance, see Note 3 — “Recent Authoritative Guidance.” For more information on how leases are identified, see Note 1 — “Summary of Significant Accounting Policies — Leases.” Operating Leases Cleco Power leases utility systems from two municipalities and one non-municipal public body. The first municipal lease has a term of 10 years and expires on August 11, 2021. On July 9, 2019, this municipal lease was renewed for an additional term of 10 years and expires on August 11, 2031. The second municipal lease has a term of 10 years and expires on May 13, 2028. The non-municipal lease has a term of 27 years and expires on July 31, 2039. Each utility system lease contains fixed and variable components, as well as provisions for extensions. Cleco Power has leases for 200 railcars for coal transportation. One lease for 115 railcars expires on March 31, 2021, and the other lease for 85 railcars expires on March 31, 2020. Cleco Cajun has a lease for 135 railcars for coal transportation, which commenced in February 2019 and is a short-term lease with an initial term of 12 months. This short-term lease renews for additional one -month terms unless Cleco Cajun chooses to terminate. Cleco reassesses its need for the railcars upon the expiration of each term. Cleco pays a monthly rental fee per car. The railcar leases do not contain contingent rent payments. Cleco Power has leases for three towboats in order to transport petroleum coke to Madison Unit 3. Each of the towboat leases has a term of 10 years and expires on March 31, 2028. Under these agreements, the rates are adjusted annually per the Producer Price Index. Each lease contains provisions for a five -year extension. Cleco and Cleco Power’s remaining operating leases provide for office and operating facilities, office equipment, and tower rentals. The following is a schedule by year of future minimum lease payments due under Cleco and Cleco Power’s long-term operating leases together with the present value of the net minimum lease payments as of September 30, 2019 : (THOUSANDS) CLECO POWER CLECO Three months ending Dec. 31, 2019 $ 1,014 $ 1,065 Years ending Dec. 31, 2020 3,960 3,994 2021 3,410 3,443 2022 3,256 3,287 2023 3,220 3,249 Thereafter 21,833 21,853 Total minimum lease payments 36,693 36,891 Less: amount representing interest 7,395 7,358 Present value of net minimum operating lease payments $ 29,298 $ 29,533 Current liabilities $ 3,616 $ 3,705 Non-current liabilities $ 25,682 $ 25,828 The following table is a summary of expected operating lease payments for Cleco and Cleco Power at December 31, 2018: (THOUSANDS) CLECO HOLDINGS CLECO POWER CLECO Year ending Dec. 31, 2019 $ 120 $ 4,030 $ 4,150 2020 — 3,890 3,890 2021 — 2,789 2,789 2022 — 1,239 1,239 2023 — 1,214 1,214 Thereafter — 7,235 7,235 Total operating lease payments $ 120 $ 20,397 $ 20,517 Finance Lease In April 2018, Cleco Power entered into an agreement with Savage Inland Marine for 42 barges used to transport petroleum coke through March 2033. The agreement meets the accounting definition of a finance lease. The barge lease rate contains both a fixed and variable component, of which the latter is adjusted every third anniversary of the 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. This agreement contains a provision for early termination upon the occurrence of any one of four cancellation events. For the three and nine months ended September 30, 2019 , Cleco Power paid $0.6 million and $1.7 million , respectively, in lease payments. For the three and nine months ended September 30, 2019 , Cleco Power received $0.4 million and $1.3 million , respectively, of revenue from subleases. The following is an analysis of the leased property under the finance lease: (THOUSANDS) AT SEPT. 30, 2019 AT DEC. 31, 2018 Barges $ 16,800 $ 16,800 Accumulated amortization (1,680 ) (840 ) Net finance lease $ 15,120 $ 15,960 The following is a schedule by year of future minimum lease payments due under the finance lease together with the present value of the net minimum lease payments as of September 30, 2019 : (THOUSANDS) Three months ending Dec. 31, 2019 $ 551 Years ending Dec. 31, 2020 2,203 2021 2,203 2022 2,203 2023 2,203 2024 2,203 Thereafter 17,675 Total minimum lease payments 29,241 Less: amount representing interest 13,235 Present value of net minimum finance lease payments $ 16,006 Current liabilities $ 602 Non-current liabilities $ 15,404 The following is a schedule by year of future minimum lease payments due under the finance lease together with the present value of the net minimum lease payments as of December 31, 2018: (THOUSANDS) Years ending Dec. 31, 2019 $ 2,611 2020 2,611 2021 2,611 2022 2,611 2023 2,611 Thereafter 23,655 Total minimum lease payments 36,710 Less: executory costs 5,817 Net minimum lease payments 30,893 Less: amount representing interest 14,475 Present value of net minimum lease payments $ 16,418 Current liabilities $ 557 Non-current liabilities $ 15,861 Additional Lessee Disclosures Cleco and Cleco Power’s total lease cost includes amounts on the income statement, as well as amounts capitalized as part of property, plant, or equipment or inventory. The following tables reflect total lease costs for Cleco and Cleco Power for the three and nine months ended September 30, 2019 : Cleco (THOUSANDS) FOR THE THREE MONTHS ENDED SEPT. 30, 2019 FOR THE NINE MONTHS ENDED SEPT. 30, 2019 Finance lease cost Amortization of ROU assets $ 280 $ 840 Interest on lease liabilities 410 1,240 Operating lease cost 1,158 3,411 Variable lease cost 116 423 Total lease cost $ 1,964 $ 5,914 Cleco Power (THOUSANDS) FOR THE THREE MONTHS ENDED SEPT. 30, 2019 FOR THE NINE Finance lease cost Amortization of ROU assets $ 280 $ 840 Interest on lease liabilities 410 1,240 Operating lease cost 1,101 3,243 Variable lease cost 116 423 Total lease cost $ 1,907 $ 5,746 The following tables present additional information related to Cleco and Cleco Power’s operating and finance leases as of and for the three and nine months ended September 30, 2019 : AT SEPT. 30, 2019 (THOUSANDS) BALANCE SHEET LINE ITEM CLECO POWER CLECO Supplemental balance sheet information ROU assets Operating Operating lease right of use assets $ 29,375 $ 29,719 Finance Property, plant, and equipment 15,120 15,120 Total ROU assets $ 44,495 $ 44,839 Current lease liabilities Operating Other current liabilities $ 3,616 $ 3,705 Finance Long-term debt and finance leases due within one year 602 602 Non-current lease liabilities Operating Operating lease liabilities 25,682 25,828 Finance Long-term debt and finance leases, net 15,404 15,404 Total lease liabilities $ 45,304 $ 45,539 Cleco (THOUSANDS) FOR THE THREE FOR THE NINE Supplemental cash flow information Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 1,108 $ 3,387 Operating cash flows from finance leases $ 410 $ 1,240 Financing cash flows from finance leases $ 141 $ 412 ROU assets obtained in exchange for new lease liabilities $ 15,749 $ 15,881 Cleco Power (THOUSANDS) FOR THE THREE FOR THE NINE Supplemental cash flow information Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 1,034 $ 3,189 Operating cash flows from finance leases $ 410 $ 1,240 Financing cash flows from finance leases $ 141 $ 412 ROU assets obtained in exchange for new lease liabilities $ 15,749 $ 15,749 AT SEPT. 30, 2019 (THOUSANDS) CLECO POWER CLECO Other supplemental information Operating leases Weighted-average remaining lease term 11.0 years 10.9 years Weighted-average discount rate 4.31 % 4.31 % Finance leases Weighted-average remaining lease term 13.5 years 13.5 years Weighted-average discount rate 10.18 % 10.18 % Lessor Agreements Upon the closing of the Cleco Cajun Transaction, Cleco assumed two lessor contracts leasing land to farmers for a term of one year . Both of these lessor contracts are classified as operating leases. For more information on the Cleco Cajun Transaction, see Note 2 — “Business Combination.” Cottonwood Sale Leaseback Agreement Upon closing the Cleco Cajun Transaction, the Cottonwood Sale Leaseback was executed. Under the terms of the lease, NRG Energy will operate the plant, incur all costs, and receive all revenues from the operations of the plant. Cottonwood Energy will receive fixed lease payments of $40.0 million per year and variable lease payments for LTSA costs and property taxes paid by NRG Energy on behalf of Cleco. Cleco may terminate the lease contract under specific circumstances stated in the lease contract. The residual value under the Cottonwood Sale Leaseback is expected to be recovered through sales of power generation from the plant. The residual value of the Cottonwood Plant has been determined using the plant’s estimated economic life. Cleco Cajun is Cleco’s only entity with lessor arrangements. Cleco Cajun’s lease income under the Cottonwood Sale Leaseback for the three and nine months ended September 30, 2019 , was as follows: (THOUSANDS) FOR THE THREE MONTHS ENDED SEPT. 30, 2019 FOR THE NINE MONTHS ENDED SEPT. 30, 2019 Fixed payments $ 10,000 $ 26,667 Variable payments 6,010 14,248 Amortization of deferred lease liability (1) 2,301 6,137 Total lease income $ 18,311 $ 47,052 (1) The deferred lease revenue resulting from the preliminary fair value of the lease between Cottonwood Energy and a special-purpose entity that is a subsidiary of NRG Energy. The remaining minimum lease payments to be received under the Cottonwood Sale Leaseback are as follows: (THOUSANDS) Three months ending Dec. 31, 2019 $ 10,000 Years ending Dec. 31, 2020 40,000 2021 40,000 2022 40,000 2023 40,000 Thereafter 56,666 Total payments $ 226,666 Depreciation expense associated with Cleco’s property under the Cottonwood Sale Leaseback for the three and nine months ended September 30, 2019 , was $6.6 million and $16.1 million , respectively. Cleco calculated depreciation on a straight-line basis over the useful life of the asset. Property associated with the Cottonwood Sale Leaseback was as follows: (THOUSANDS) AT SEPT. 30, 2019 Property, plant, and equipment $ 540,409 Accumulated depreciation (16,140 ) Net property, plant, and equipment $ 524,269 |
Leases | Note 4 — Leases Cleco maintains operating and finance leases in its ordinary course of business activities. Effective January 1, 2019, Cleco adopted new guidance which requires organizations to recognize lease assets and lease liabilities on the balance sheet and disclose key information about leasing arrangements. A lease is deemed to exist when the right to control the use of identified property, plant, or equipment is conveyed through a contract for a certain period of time and consideration is paid. For more information on the new guidance, see Note 3 — “Recent Authoritative Guidance.” For more information on how leases are identified, see Note 1 — “Summary of Significant Accounting Policies — Leases.” Operating Leases Cleco Power leases utility systems from two municipalities and one non-municipal public body. The first municipal lease has a term of 10 years and expires on August 11, 2021. On July 9, 2019, this municipal lease was renewed for an additional term of 10 years and expires on August 11, 2031. The second municipal lease has a term of 10 years and expires on May 13, 2028. The non-municipal lease has a term of 27 years and expires on July 31, 2039. Each utility system lease contains fixed and variable components, as well as provisions for extensions. Cleco Power has leases for 200 railcars for coal transportation. One lease for 115 railcars expires on March 31, 2021, and the other lease for 85 railcars expires on March 31, 2020. Cleco Cajun has a lease for 135 railcars for coal transportation, which commenced in February 2019 and is a short-term lease with an initial term of 12 months. This short-term lease renews for additional one -month terms unless Cleco Cajun chooses to terminate. Cleco reassesses its need for the railcars upon the expiration of each term. Cleco pays a monthly rental fee per car. The railcar leases do not contain contingent rent payments. Cleco Power has leases for three towboats in order to transport petroleum coke to Madison Unit 3. Each of the towboat leases has a term of 10 years and expires on March 31, 2028. Under these agreements, the rates are adjusted annually per the Producer Price Index. Each lease contains provisions for a five -year extension. Cleco and Cleco Power’s remaining operating leases provide for office and operating facilities, office equipment, and tower rentals. The following is a schedule by year of future minimum lease payments due under Cleco and Cleco Power’s long-term operating leases together with the present value of the net minimum lease payments as of September 30, 2019 : (THOUSANDS) CLECO POWER CLECO Three months ending Dec. 31, 2019 $ 1,014 $ 1,065 Years ending Dec. 31, 2020 3,960 3,994 2021 3,410 3,443 2022 3,256 3,287 2023 3,220 3,249 Thereafter 21,833 21,853 Total minimum lease payments 36,693 36,891 Less: amount representing interest 7,395 7,358 Present value of net minimum operating lease payments $ 29,298 $ 29,533 Current liabilities $ 3,616 $ 3,705 Non-current liabilities $ 25,682 $ 25,828 The following table is a summary of expected operating lease payments for Cleco and Cleco Power at December 31, 2018: (THOUSANDS) CLECO HOLDINGS CLECO POWER CLECO Year ending Dec. 31, 2019 $ 120 $ 4,030 $ 4,150 2020 — 3,890 3,890 2021 — 2,789 2,789 2022 — 1,239 1,239 2023 — 1,214 1,214 Thereafter — 7,235 7,235 Total operating lease payments $ 120 $ 20,397 $ 20,517 Finance Lease In April 2018, Cleco Power entered into an agreement with Savage Inland Marine for 42 barges used to transport petroleum coke through March 2033. The agreement meets the accounting definition of a finance lease. The barge lease rate contains both a fixed and variable component, of which the latter is adjusted every third anniversary of the 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. This agreement contains a provision for early termination upon the occurrence of any one of four cancellation events. For the three and nine months ended September 30, 2019 , Cleco Power paid $0.6 million and $1.7 million , respectively, in lease payments. For the three and nine months ended September 30, 2019 , Cleco Power received $0.4 million and $1.3 million , respectively, of revenue from subleases. The following is an analysis of the leased property under the finance lease: (THOUSANDS) AT SEPT. 30, 2019 AT DEC. 31, 2018 Barges $ 16,800 $ 16,800 Accumulated amortization (1,680 ) (840 ) Net finance lease $ 15,120 $ 15,960 The following is a schedule by year of future minimum lease payments due under the finance lease together with the present value of the net minimum lease payments as of September 30, 2019 : (THOUSANDS) Three months ending Dec. 31, 2019 $ 551 Years ending Dec. 31, 2020 2,203 2021 2,203 2022 2,203 2023 2,203 2024 2,203 Thereafter 17,675 Total minimum lease payments 29,241 Less: amount representing interest 13,235 Present value of net minimum finance lease payments $ 16,006 Current liabilities $ 602 Non-current liabilities $ 15,404 The following is a schedule by year of future minimum lease payments due under the finance lease together with the present value of the net minimum lease payments as of December 31, 2018: (THOUSANDS) Years ending Dec. 31, 2019 $ 2,611 2020 2,611 2021 2,611 2022 2,611 2023 2,611 Thereafter 23,655 Total minimum lease payments 36,710 Less: executory costs 5,817 Net minimum lease payments 30,893 Less: amount representing interest 14,475 Present value of net minimum lease payments $ 16,418 Current liabilities $ 557 Non-current liabilities $ 15,861 Additional Lessee Disclosures Cleco and Cleco Power’s total lease cost includes amounts on the income statement, as well as amounts capitalized as part of property, plant, or equipment or inventory. The following tables reflect total lease costs for Cleco and Cleco Power for the three and nine months ended September 30, 2019 : Cleco (THOUSANDS) FOR THE THREE MONTHS ENDED SEPT. 30, 2019 FOR THE NINE MONTHS ENDED SEPT. 30, 2019 Finance lease cost Amortization of ROU assets $ 280 $ 840 Interest on lease liabilities 410 1,240 Operating lease cost 1,158 3,411 Variable lease cost 116 423 Total lease cost $ 1,964 $ 5,914 Cleco Power (THOUSANDS) FOR THE THREE MONTHS ENDED SEPT. 30, 2019 FOR THE NINE Finance lease cost Amortization of ROU assets $ 280 $ 840 Interest on lease liabilities 410 1,240 Operating lease cost 1,101 3,243 Variable lease cost 116 423 Total lease cost $ 1,907 $ 5,746 The following tables present additional information related to Cleco and Cleco Power’s operating and finance leases as of and for the three and nine months ended September 30, 2019 : AT SEPT. 30, 2019 (THOUSANDS) BALANCE SHEET LINE ITEM CLECO POWER CLECO Supplemental balance sheet information ROU assets Operating Operating lease right of use assets $ 29,375 $ 29,719 Finance Property, plant, and equipment 15,120 15,120 Total ROU assets $ 44,495 $ 44,839 Current lease liabilities Operating Other current liabilities $ 3,616 $ 3,705 Finance Long-term debt and finance leases due within one year 602 602 Non-current lease liabilities Operating Operating lease liabilities 25,682 25,828 Finance Long-term debt and finance leases, net 15,404 15,404 Total lease liabilities $ 45,304 $ 45,539 Cleco (THOUSANDS) FOR THE THREE FOR THE NINE Supplemental cash flow information Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 1,108 $ 3,387 Operating cash flows from finance leases $ 410 $ 1,240 Financing cash flows from finance leases $ 141 $ 412 ROU assets obtained in exchange for new lease liabilities $ 15,749 $ 15,881 Cleco Power (THOUSANDS) FOR THE THREE FOR THE NINE Supplemental cash flow information Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 1,034 $ 3,189 Operating cash flows from finance leases $ 410 $ 1,240 Financing cash flows from finance leases $ 141 $ 412 ROU assets obtained in exchange for new lease liabilities $ 15,749 $ 15,749 AT SEPT. 30, 2019 (THOUSANDS) CLECO POWER CLECO Other supplemental information Operating leases Weighted-average remaining lease term 11.0 years 10.9 years Weighted-average discount rate 4.31 % 4.31 % Finance leases Weighted-average remaining lease term 13.5 years 13.5 years Weighted-average discount rate 10.18 % 10.18 % Lessor Agreements Upon the closing of the Cleco Cajun Transaction, Cleco assumed two lessor contracts leasing land to farmers for a term of one year . Both of these lessor contracts are classified as operating leases. For more information on the Cleco Cajun Transaction, see Note 2 — “Business Combination.” Cottonwood Sale Leaseback Agreement Upon closing the Cleco Cajun Transaction, the Cottonwood Sale Leaseback was executed. Under the terms of the lease, NRG Energy will operate the plant, incur all costs, and receive all revenues from the operations of the plant. Cottonwood Energy will receive fixed lease payments of $40.0 million per year and variable lease payments for LTSA costs and property taxes paid by NRG Energy on behalf of Cleco. Cleco may terminate the lease contract under specific circumstances stated in the lease contract. The residual value under the Cottonwood Sale Leaseback is expected to be recovered through sales of power generation from the plant. The residual value of the Cottonwood Plant has been determined using the plant’s estimated economic life. Cleco Cajun is Cleco’s only entity with lessor arrangements. Cleco Cajun’s lease income under the Cottonwood Sale Leaseback for the three and nine months ended September 30, 2019 , was as follows: (THOUSANDS) FOR THE THREE MONTHS ENDED SEPT. 30, 2019 FOR THE NINE MONTHS ENDED SEPT. 30, 2019 Fixed payments $ 10,000 $ 26,667 Variable payments 6,010 14,248 Amortization of deferred lease liability (1) 2,301 6,137 Total lease income $ 18,311 $ 47,052 (1) The deferred lease revenue resulting from the preliminary fair value of the lease between Cottonwood Energy and a special-purpose entity that is a subsidiary of NRG Energy. The remaining minimum lease payments to be received under the Cottonwood Sale Leaseback are as follows: (THOUSANDS) Three months ending Dec. 31, 2019 $ 10,000 Years ending Dec. 31, 2020 40,000 2021 40,000 2022 40,000 2023 40,000 Thereafter 56,666 Total payments $ 226,666 Depreciation expense associated with Cleco’s property under the Cottonwood Sale Leaseback for the three and nine months ended September 30, 2019 , was $6.6 million and $16.1 million , respectively. Cleco calculated depreciation on a straight-line basis over the useful life of the asset. Property associated with the Cottonwood Sale Leaseback was as follows: (THOUSANDS) AT SEPT. 30, 2019 Property, plant, and equipment $ 540,409 Accumulated depreciation (16,140 ) Net property, plant, and equipment $ 524,269 |
Leases | Note 4 — Leases Cleco maintains operating and finance leases in its ordinary course of business activities. Effective January 1, 2019, Cleco adopted new guidance which requires organizations to recognize lease assets and lease liabilities on the balance sheet and disclose key information about leasing arrangements. A lease is deemed to exist when the right to control the use of identified property, plant, or equipment is conveyed through a contract for a certain period of time and consideration is paid. For more information on the new guidance, see Note 3 — “Recent Authoritative Guidance.” For more information on how leases are identified, see Note 1 — “Summary of Significant Accounting Policies — Leases.” Operating Leases Cleco Power leases utility systems from two municipalities and one non-municipal public body. The first municipal lease has a term of 10 years and expires on August 11, 2021. On July 9, 2019, this municipal lease was renewed for an additional term of 10 years and expires on August 11, 2031. The second municipal lease has a term of 10 years and expires on May 13, 2028. The non-municipal lease has a term of 27 years and expires on July 31, 2039. Each utility system lease contains fixed and variable components, as well as provisions for extensions. Cleco Power has leases for 200 railcars for coal transportation. One lease for 115 railcars expires on March 31, 2021, and the other lease for 85 railcars expires on March 31, 2020. Cleco Cajun has a lease for 135 railcars for coal transportation, which commenced in February 2019 and is a short-term lease with an initial term of 12 months. This short-term lease renews for additional one -month terms unless Cleco Cajun chooses to terminate. Cleco reassesses its need for the railcars upon the expiration of each term. Cleco pays a monthly rental fee per car. The railcar leases do not contain contingent rent payments. Cleco Power has leases for three towboats in order to transport petroleum coke to Madison Unit 3. Each of the towboat leases has a term of 10 years and expires on March 31, 2028. Under these agreements, the rates are adjusted annually per the Producer Price Index. Each lease contains provisions for a five -year extension. Cleco and Cleco Power’s remaining operating leases provide for office and operating facilities, office equipment, and tower rentals. The following is a schedule by year of future minimum lease payments due under Cleco and Cleco Power’s long-term operating leases together with the present value of the net minimum lease payments as of September 30, 2019 : (THOUSANDS) CLECO POWER CLECO Three months ending Dec. 31, 2019 $ 1,014 $ 1,065 Years ending Dec. 31, 2020 3,960 3,994 2021 3,410 3,443 2022 3,256 3,287 2023 3,220 3,249 Thereafter 21,833 21,853 Total minimum lease payments 36,693 36,891 Less: amount representing interest 7,395 7,358 Present value of net minimum operating lease payments $ 29,298 $ 29,533 Current liabilities $ 3,616 $ 3,705 Non-current liabilities $ 25,682 $ 25,828 The following table is a summary of expected operating lease payments for Cleco and Cleco Power at December 31, 2018: (THOUSANDS) CLECO HOLDINGS CLECO POWER CLECO Year ending Dec. 31, 2019 $ 120 $ 4,030 $ 4,150 2020 — 3,890 3,890 2021 — 2,789 2,789 2022 — 1,239 1,239 2023 — 1,214 1,214 Thereafter — 7,235 7,235 Total operating lease payments $ 120 $ 20,397 $ 20,517 Finance Lease In April 2018, Cleco Power entered into an agreement with Savage Inland Marine for 42 barges used to transport petroleum coke through March 2033. The agreement meets the accounting definition of a finance lease. The barge lease rate contains both a fixed and variable component, of which the latter is adjusted every third anniversary of the 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. This agreement contains a provision for early termination upon the occurrence of any one of four cancellation events. For the three and nine months ended September 30, 2019 , Cleco Power paid $0.6 million and $1.7 million , respectively, in lease payments. For the three and nine months ended September 30, 2019 , Cleco Power received $0.4 million and $1.3 million , respectively, of revenue from subleases. The following is an analysis of the leased property under the finance lease: (THOUSANDS) AT SEPT. 30, 2019 AT DEC. 31, 2018 Barges $ 16,800 $ 16,800 Accumulated amortization (1,680 ) (840 ) Net finance lease $ 15,120 $ 15,960 The following is a schedule by year of future minimum lease payments due under the finance lease together with the present value of the net minimum lease payments as of September 30, 2019 : (THOUSANDS) Three months ending Dec. 31, 2019 $ 551 Years ending Dec. 31, 2020 2,203 2021 2,203 2022 2,203 2023 2,203 2024 2,203 Thereafter 17,675 Total minimum lease payments 29,241 Less: amount representing interest 13,235 Present value of net minimum finance lease payments $ 16,006 Current liabilities $ 602 Non-current liabilities $ 15,404 The following is a schedule by year of future minimum lease payments due under the finance lease together with the present value of the net minimum lease payments as of December 31, 2018: (THOUSANDS) Years ending Dec. 31, 2019 $ 2,611 2020 2,611 2021 2,611 2022 2,611 2023 2,611 Thereafter 23,655 Total minimum lease payments 36,710 Less: executory costs 5,817 Net minimum lease payments 30,893 Less: amount representing interest 14,475 Present value of net minimum lease payments $ 16,418 Current liabilities $ 557 Non-current liabilities $ 15,861 Additional Lessee Disclosures Cleco and Cleco Power’s total lease cost includes amounts on the income statement, as well as amounts capitalized as part of property, plant, or equipment or inventory. The following tables reflect total lease costs for Cleco and Cleco Power for the three and nine months ended September 30, 2019 : Cleco (THOUSANDS) FOR THE THREE MONTHS ENDED SEPT. 30, 2019 FOR THE NINE MONTHS ENDED SEPT. 30, 2019 Finance lease cost Amortization of ROU assets $ 280 $ 840 Interest on lease liabilities 410 1,240 Operating lease cost 1,158 3,411 Variable lease cost 116 423 Total lease cost $ 1,964 $ 5,914 Cleco Power (THOUSANDS) FOR THE THREE MONTHS ENDED SEPT. 30, 2019 FOR THE NINE Finance lease cost Amortization of ROU assets $ 280 $ 840 Interest on lease liabilities 410 1,240 Operating lease cost 1,101 3,243 Variable lease cost 116 423 Total lease cost $ 1,907 $ 5,746 The following tables present additional information related to Cleco and Cleco Power’s operating and finance leases as of and for the three and nine months ended September 30, 2019 : AT SEPT. 30, 2019 (THOUSANDS) BALANCE SHEET LINE ITEM CLECO POWER CLECO Supplemental balance sheet information ROU assets Operating Operating lease right of use assets $ 29,375 $ 29,719 Finance Property, plant, and equipment 15,120 15,120 Total ROU assets $ 44,495 $ 44,839 Current lease liabilities Operating Other current liabilities $ 3,616 $ 3,705 Finance Long-term debt and finance leases due within one year 602 602 Non-current lease liabilities Operating Operating lease liabilities 25,682 25,828 Finance Long-term debt and finance leases, net 15,404 15,404 Total lease liabilities $ 45,304 $ 45,539 Cleco (THOUSANDS) FOR THE THREE FOR THE NINE Supplemental cash flow information Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 1,108 $ 3,387 Operating cash flows from finance leases $ 410 $ 1,240 Financing cash flows from finance leases $ 141 $ 412 ROU assets obtained in exchange for new lease liabilities $ 15,749 $ 15,881 Cleco Power (THOUSANDS) FOR THE THREE FOR THE NINE Supplemental cash flow information Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 1,034 $ 3,189 Operating cash flows from finance leases $ 410 $ 1,240 Financing cash flows from finance leases $ 141 $ 412 ROU assets obtained in exchange for new lease liabilities $ 15,749 $ 15,749 AT SEPT. 30, 2019 (THOUSANDS) CLECO POWER CLECO Other supplemental information Operating leases Weighted-average remaining lease term 11.0 years 10.9 years Weighted-average discount rate 4.31 % 4.31 % Finance leases Weighted-average remaining lease term 13.5 years 13.5 years Weighted-average discount rate 10.18 % 10.18 % Lessor Agreements Upon the closing of the Cleco Cajun Transaction, Cleco assumed two lessor contracts leasing land to farmers for a term of one year . Both of these lessor contracts are classified as operating leases. For more information on the Cleco Cajun Transaction, see Note 2 — “Business Combination.” Cottonwood Sale Leaseback Agreement Upon closing the Cleco Cajun Transaction, the Cottonwood Sale Leaseback was executed. Under the terms of the lease, NRG Energy will operate the plant, incur all costs, and receive all revenues from the operations of the plant. Cottonwood Energy will receive fixed lease payments of $40.0 million per year and variable lease payments for LTSA costs and property taxes paid by NRG Energy on behalf of Cleco. Cleco may terminate the lease contract under specific circumstances stated in the lease contract. The residual value under the Cottonwood Sale Leaseback is expected to be recovered through sales of power generation from the plant. The residual value of the Cottonwood Plant has been determined using the plant’s estimated economic life. Cleco Cajun is Cleco’s only entity with lessor arrangements. Cleco Cajun’s lease income under the Cottonwood Sale Leaseback for the three and nine months ended September 30, 2019 , was as follows: (THOUSANDS) FOR THE THREE MONTHS ENDED SEPT. 30, 2019 FOR THE NINE MONTHS ENDED SEPT. 30, 2019 Fixed payments $ 10,000 $ 26,667 Variable payments 6,010 14,248 Amortization of deferred lease liability (1) 2,301 6,137 Total lease income $ 18,311 $ 47,052 (1) The deferred lease revenue resulting from the preliminary fair value of the lease between Cottonwood Energy and a special-purpose entity that is a subsidiary of NRG Energy. The remaining minimum lease payments to be received under the Cottonwood Sale Leaseback are as follows: (THOUSANDS) Three months ending Dec. 31, 2019 $ 10,000 Years ending Dec. 31, 2020 40,000 2021 40,000 2022 40,000 2023 40,000 Thereafter 56,666 Total payments $ 226,666 Depreciation expense associated with Cleco’s property under the Cottonwood Sale Leaseback for the three and nine months ended September 30, 2019 , was $6.6 million and $16.1 million , respectively. Cleco calculated depreciation on a straight-line basis over the useful life of the asset. Property associated with the Cottonwood Sale Leaseback was as follows: (THOUSANDS) AT SEPT. 30, 2019 Property, plant, and equipment $ 540,409 Accumulated depreciation (16,140 ) Net property, plant, and equipment $ 524,269 |
Leases | Note 4 — Leases Cleco maintains operating and finance leases in its ordinary course of business activities. Effective January 1, 2019, Cleco adopted new guidance which requires organizations to recognize lease assets and lease liabilities on the balance sheet and disclose key information about leasing arrangements. A lease is deemed to exist when the right to control the use of identified property, plant, or equipment is conveyed through a contract for a certain period of time and consideration is paid. For more information on the new guidance, see Note 3 — “Recent Authoritative Guidance.” For more information on how leases are identified, see Note 1 — “Summary of Significant Accounting Policies — Leases.” Operating Leases Cleco Power leases utility systems from two municipalities and one non-municipal public body. The first municipal lease has a term of 10 years and expires on August 11, 2021. On July 9, 2019, this municipal lease was renewed for an additional term of 10 years and expires on August 11, 2031. The second municipal lease has a term of 10 years and expires on May 13, 2028. The non-municipal lease has a term of 27 years and expires on July 31, 2039. Each utility system lease contains fixed and variable components, as well as provisions for extensions. Cleco Power has leases for 200 railcars for coal transportation. One lease for 115 railcars expires on March 31, 2021, and the other lease for 85 railcars expires on March 31, 2020. Cleco Cajun has a lease for 135 railcars for coal transportation, which commenced in February 2019 and is a short-term lease with an initial term of 12 months. This short-term lease renews for additional one -month terms unless Cleco Cajun chooses to terminate. Cleco reassesses its need for the railcars upon the expiration of each term. Cleco pays a monthly rental fee per car. The railcar leases do not contain contingent rent payments. Cleco Power has leases for three towboats in order to transport petroleum coke to Madison Unit 3. Each of the towboat leases has a term of 10 years and expires on March 31, 2028. Under these agreements, the rates are adjusted annually per the Producer Price Index. Each lease contains provisions for a five -year extension. Cleco and Cleco Power’s remaining operating leases provide for office and operating facilities, office equipment, and tower rentals. The following is a schedule by year of future minimum lease payments due under Cleco and Cleco Power’s long-term operating leases together with the present value of the net minimum lease payments as of September 30, 2019 : (THOUSANDS) CLECO POWER CLECO Three months ending Dec. 31, 2019 $ 1,014 $ 1,065 Years ending Dec. 31, 2020 3,960 3,994 2021 3,410 3,443 2022 3,256 3,287 2023 3,220 3,249 Thereafter 21,833 21,853 Total minimum lease payments 36,693 36,891 Less: amount representing interest 7,395 7,358 Present value of net minimum operating lease payments $ 29,298 $ 29,533 Current liabilities $ 3,616 $ 3,705 Non-current liabilities $ 25,682 $ 25,828 The following table is a summary of expected operating lease payments for Cleco and Cleco Power at December 31, 2018: (THOUSANDS) CLECO HOLDINGS CLECO POWER CLECO Year ending Dec. 31, 2019 $ 120 $ 4,030 $ 4,150 2020 — 3,890 3,890 2021 — 2,789 2,789 2022 — 1,239 1,239 2023 — 1,214 1,214 Thereafter — 7,235 7,235 Total operating lease payments $ 120 $ 20,397 $ 20,517 Finance Lease In April 2018, Cleco Power entered into an agreement with Savage Inland Marine for 42 barges used to transport petroleum coke through March 2033. The agreement meets the accounting definition of a finance lease. The barge lease rate contains both a fixed and variable component, of which the latter is adjusted every third anniversary of the 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. This agreement contains a provision for early termination upon the occurrence of any one of four cancellation events. For the three and nine months ended September 30, 2019 , Cleco Power paid $0.6 million and $1.7 million , respectively, in lease payments. For the three and nine months ended September 30, 2019 , Cleco Power received $0.4 million and $1.3 million , respectively, of revenue from subleases. The following is an analysis of the leased property under the finance lease: (THOUSANDS) AT SEPT. 30, 2019 AT DEC. 31, 2018 Barges $ 16,800 $ 16,800 Accumulated amortization (1,680 ) (840 ) Net finance lease $ 15,120 $ 15,960 The following is a schedule by year of future minimum lease payments due under the finance lease together with the present value of the net minimum lease payments as of September 30, 2019 : (THOUSANDS) Three months ending Dec. 31, 2019 $ 551 Years ending Dec. 31, 2020 2,203 2021 2,203 2022 2,203 2023 2,203 2024 2,203 Thereafter 17,675 Total minimum lease payments 29,241 Less: amount representing interest 13,235 Present value of net minimum finance lease payments $ 16,006 Current liabilities $ 602 Non-current liabilities $ 15,404 The following is a schedule by year of future minimum lease payments due under the finance lease together with the present value of the net minimum lease payments as of December 31, 2018: (THOUSANDS) Years ending Dec. 31, 2019 $ 2,611 2020 2,611 2021 2,611 2022 2,611 2023 2,611 Thereafter 23,655 Total minimum lease payments 36,710 Less: executory costs 5,817 Net minimum lease payments 30,893 Less: amount representing interest 14,475 Present value of net minimum lease payments $ 16,418 Current liabilities $ 557 Non-current liabilities $ 15,861 Additional Lessee Disclosures Cleco and Cleco Power’s total lease cost includes amounts on the income statement, as well as amounts capitalized as part of property, plant, or equipment or inventory. The following tables reflect total lease costs for Cleco and Cleco Power for the three and nine months ended September 30, 2019 : Cleco (THOUSANDS) FOR THE THREE MONTHS ENDED SEPT. 30, 2019 FOR THE NINE MONTHS ENDED SEPT. 30, 2019 Finance lease cost Amortization of ROU assets $ 280 $ 840 Interest on lease liabilities 410 1,240 Operating lease cost 1,158 3,411 Variable lease cost 116 423 Total lease cost $ 1,964 $ 5,914 Cleco Power (THOUSANDS) FOR THE THREE MONTHS ENDED SEPT. 30, 2019 FOR THE NINE Finance lease cost Amortization of ROU assets $ 280 $ 840 Interest on lease liabilities 410 1,240 Operating lease cost 1,101 3,243 Variable lease cost 116 423 Total lease cost $ 1,907 $ 5,746 The following tables present additional information related to Cleco and Cleco Power’s operating and finance leases as of and for the three and nine months ended September 30, 2019 : AT SEPT. 30, 2019 (THOUSANDS) BALANCE SHEET LINE ITEM CLECO POWER CLECO Supplemental balance sheet information ROU assets Operating Operating lease right of use assets $ 29,375 $ 29,719 Finance Property, plant, and equipment 15,120 15,120 Total ROU assets $ 44,495 $ 44,839 Current lease liabilities Operating Other current liabilities $ 3,616 $ 3,705 Finance Long-term debt and finance leases due within one year 602 602 Non-current lease liabilities Operating Operating lease liabilities 25,682 25,828 Finance Long-term debt and finance leases, net 15,404 15,404 Total lease liabilities $ 45,304 $ 45,539 Cleco (THOUSANDS) FOR THE THREE FOR THE NINE Supplemental cash flow information Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 1,108 $ 3,387 Operating cash flows from finance leases $ 410 $ 1,240 Financing cash flows from finance leases $ 141 $ 412 ROU assets obtained in exchange for new lease liabilities $ 15,749 $ 15,881 Cleco Power (THOUSANDS) FOR THE THREE FOR THE NINE Supplemental cash flow information Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 1,034 $ 3,189 Operating cash flows from finance leases $ 410 $ 1,240 Financing cash flows from finance leases $ 141 $ 412 ROU assets obtained in exchange for new lease liabilities $ 15,749 $ 15,749 AT SEPT. 30, 2019 (THOUSANDS) CLECO POWER CLECO Other supplemental information Operating leases Weighted-average remaining lease term 11.0 years 10.9 years Weighted-average discount rate 4.31 % 4.31 % Finance leases Weighted-average remaining lease term 13.5 years 13.5 years Weighted-average discount rate 10.18 % 10.18 % Lessor Agreements Upon the closing of the Cleco Cajun Transaction, Cleco assumed two lessor contracts leasing land to farmers for a term of one year . Both of these lessor contracts are classified as operating leases. For more information on the Cleco Cajun Transaction, see Note 2 — “Business Combination.” Cottonwood Sale Leaseback Agreement Upon closing the Cleco Cajun Transaction, the Cottonwood Sale Leaseback was executed. Under the terms of the lease, NRG Energy will operate the plant, incur all costs, and receive all revenues from the operations of the plant. Cottonwood Energy will receive fixed lease payments of $40.0 million per year and variable lease payments for LTSA costs and property taxes paid by NRG Energy on behalf of Cleco. Cleco may terminate the lease contract under specific circumstances stated in the lease contract. The residual value under the Cottonwood Sale Leaseback is expected to be recovered through sales of power generation from the plant. The residual value of the Cottonwood Plant has been determined using the plant’s estimated economic life. Cleco Cajun is Cleco’s only entity with lessor arrangements. Cleco Cajun’s lease income under the Cottonwood Sale Leaseback for the three and nine months ended September 30, 2019 , was as follows: (THOUSANDS) FOR THE THREE MONTHS ENDED SEPT. 30, 2019 FOR THE NINE MONTHS ENDED SEPT. 30, 2019 Fixed payments $ 10,000 $ 26,667 Variable payments 6,010 14,248 Amortization of deferred lease liability (1) 2,301 6,137 Total lease income $ 18,311 $ 47,052 (1) The deferred lease revenue resulting from the preliminary fair value of the lease between Cottonwood Energy and a special-purpose entity that is a subsidiary of NRG Energy. The remaining minimum lease payments to be received under the Cottonwood Sale Leaseback are as follows: (THOUSANDS) Three months ending Dec. 31, 2019 $ 10,000 Years ending Dec. 31, 2020 40,000 2021 40,000 2022 40,000 2023 40,000 Thereafter 56,666 Total payments $ 226,666 Depreciation expense associated with Cleco’s property under the Cottonwood Sale Leaseback for the three and nine months ended September 30, 2019 , was $6.6 million and $16.1 million , respectively. Cleco calculated depreciation on a straight-line basis over the useful life of the asset. Property associated with the Cottonwood Sale Leaseback was as follows: (THOUSANDS) AT SEPT. 30, 2019 Property, plant, and equipment $ 540,409 Accumulated depreciation (16,140 ) Net property, plant, and equipment $ 524,269 |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Note 5 — Revenue Recognition Revenue from Contracts with Customers Retail Utility Revenue Cleco’s retail revenue from contracts with customers is generated primarily from Cleco Power’s regulated revenue from 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. 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. Also included in Cleco’s retail revenue is electric customer credits, which primarily represents the accrued estimated refunds to Cleco Power’s retail customers for the tax related benefits of the TCJA. Wholesale Revenue Cleco’s 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 is recognized each month as Cleco’s generating units stand ready to deliver electricity to the customer. Cleco recognizes wholesale revenue, inclusive of both performance obligations, under the invoice practical expedient for the amount Cleco has the right to invoice. Cleco charges its wholesale customers market based rates that are subject to FERC’s triennial market power analysis. Transmission Revenue Cleco earns transmission revenues pursuant to MISO’s FERC filed tariff. The performance obligation of transmission service is satisfied as service is provided. Revenue is recognized upon delivery of the transmission service. Cleco Power’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. Cleco Cajun charges transmission rates based on its cost to provide transmission services. Other Revenue Other revenue from contracts with customers, which is not a significant source of Cleco’s revenue, includes Cleco Power’s Teche Unit 3 SSR revenue and miscellaneous fees. 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 Cleco’s energy-related transactions with the following characteristics, qualify as derivative contracts and are recorded pursuant to derivatives and hedging accounting guidance: a) their value is based on the notional amount or payment provisions of an underlying asset; b) they require no or a diminutive initial net investment; and c) their terms require or permit net settlement. Cleco Cajun’s other revenue includes fixed lease payments and certain variable payments for costs paid by NRG Energy on behalf of Cleco. For more information on the Cottonwood lease agreement, see Note 4 — “Leases — Lessor Agreements — Cottonwood Sale Leaseback Agreement.” Disaggregated Revenue Upon the completion of the Cleco Cajun Transaction on February 4, 2019, Cleco Cajun became a new reportable segment. For more information on the transaction, see Note 2 — “Business Combination.” Operating revenue, net for the three and nine months ended September 30, 2019 , and 2018, was as follows: FOR THE THREE MONTHS ENDED SEPT. 30, 2019 (THOUSANDS) CLECO POWER CLECO CAJUN OTHER ELIMINATIONS TOTAL Revenue from contracts with customers Retail revenue Residential (1) $ 142,265 $ — $ — $ — $ 142,265 Commercial (1) 84,816 — — — 84,816 Industrial (1) 36,830 — — — 36,830 Other retail (1) 4,234 — — — 4,234 Surcharge 170 — — — 170 Electric customer credits (13,711 ) — — — (13,711 ) Total retail revenue 254,604 — — — 254,604 Wholesale, net 69,558 (1) 114,426 (2,420 ) (2) — 181,564 Transmission 14,034 15,435 — (2,442 ) 27,027 Other 4,452 (3) — — — 4,452 Affiliate (4) 334 31 28,252 (28,617 ) — Total revenue from contracts with customers 342,982 129,892 25,832 (31,059 ) 467,647 Revenue unrelated to contracts with customers Other 1,995 (5) 18,329 (6) — — 20,324 Total revenue unrelated to contracts with customers 1,995 18,329 — — 20,324 Operating revenue, net $ 344,977 $ 148,221 $ 25,832 $ (31,059 ) $ 487,971 (1) Includes fuel recovery revenue. (2) Amortization of intangible assets related to Cleco Power’s wholesale power supply agreements. (3) Other miscellaneous fee revenue. (4) Includes interdepartmental rents and support services. This revenue is eliminated upon consolidation. (5) Includes realized gains associated with FTRs. (6) Includes $16.0 million in lease revenue related to the Cottonwood Sale Leaseback and $2.3 million of deferred lease revenue amortization. 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 Electric customer credits (2,992 ) — — (2,992 ) Total retail revenue 269,624 — — 269,624 Wholesale, net (1) 63,624 (2,420 ) (2) — 61,204 Transmission 14,718 — — 14,718 Other (3) 5,469 — — 5,469 Affiliate 223 22,765 (22,988 ) — Total revenue from contracts with customers 353,658 20,345 (22,988 ) 351,015 Revenue unrelated to contracts with customers Other (4) 7,241 — — 7,241 Total revenue unrelated to contracts with customers 7,241 — — 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 Cleco Power’s wholesale power supply agreements. (3) Other revenue from contracts with customers includes $4.9 million of other miscellaneous fee revenue and $0.6 million of Teche Unit 3 SSR revenue, net of $0.2 million of reserves for capital expenditures. (4) Includes realized gains associated with FTRs. FOR THE NINE MONTHS ENDED SEPT. 30, 2019 (THOUSANDS) CLECO POWER CLECO CAJUN OTHER ELIMINATIONS TOTAL Revenue from contracts with customers Retail revenue Residential (1) $ 327,340 $ — $ — $ — $ 327,340 Commercial (1) 218,209 — — — 218,209 Industrial (1) 109,545 — — — 109,545 Other retail (1) 11,391 — — — 11,391 Surcharge 7,692 — — — 7,692 Electric customer credits (30,565 ) — — — (30,565 ) Total retail revenue 643,612 — — — 643,612 Wholesale, net 179,633 (1) 273,256 (7,260 ) (2) — 445,629 Transmission 38,679 36,625 — (5,395 ) 69,909 Other 14,640 (3) — 2 — 14,642 Affiliate (4) 971 31 77,800 (78,802 ) — Total revenue from contracts with customers 877,535 309,912 70,542 (84,197 ) 1,173,792 Revenue unrelated to contracts with customers Other 9,158 (5) 47,081 (6) — (1 ) 56,238 Total revenue unrelated to contracts with customers 9,158 47,081 — (1 ) 56,238 Operating revenue, net $ 886,693 $ 356,993 $ 70,542 $ (84,198 ) $ 1,230,030 (1) Includes fuel recovery revenue. (2) Amortization of intangible assets related to Cleco Power’s wholesale power supply agreements. (3) Includes $11.4 million of other miscellaneous fee revenue and $3.2 million of Teche Unit 3 SSR revenue at Cleco Power. (4) Includes interdepartmental rents and support services. This revenue is eliminated upon consolidation. (5) Includes realized gains associated with FTRs of $11.7 million and the reversal of the Lost Contribution to Fixed Cost revenue of $2.6 million . (6) Includes $40.9 million in lease revenue related to the Cottonwood Sale Leaseback and $6.1 million of deferred lease revenue amortization. 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 Electric customer credits (24,276 ) — — (24,276 ) Total retail revenue 683,185 — — 683,185 Wholesale, net (1) 165,255 (7,260 ) (2) — 157,995 Transmission 41,166 — — 41,166 Other (3) 19,901 1 — 19,902 Affiliate 651 55,707 (56,358 ) — Total revenue from contracts with customers 910,158 48,448 (56,358 ) 902,248 Revenue unrelated to contracts with customers Other (4) 32,029 — — 32,029 Total revenue unrelated to contracts with customers 32,029 — — 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 Cleco Power’s wholesale power supply agreements. (3) Other revenue from contracts with customers includes $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 realized gains associated with FTRs. Cleco has unsatisfied performance obligations with durations ranging between one and fifteen years that primarily relate to stand-ready obligations as part of fixed capacity minimums. Cleco has elected to not disclose the value of unsatisfied performance obligations as part of its application of the right to invoice practical expedient. |
Regulatory Assets and Liabiliti
Regulatory Assets and Liabilities | 9 Months Ended |
Sep. 30, 2019 | |
Regulated Operations [Abstract] | |
Regulatory Assets and Liabilities | Note 6 — 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, 2019 AT DEC. 31, 2018 Regulatory assets (liabilities) Deferred taxes, net $ (144,124 ) $ (155,537 ) Mining costs — 1,274 Interest costs 4,021 4,208 AROs 3,523 3,099 Postretirement costs 134,412 140,245 Tree trimming costs 10,607 9,069 Training costs 6,279 6,396 Surcredits, net (1) 289 289 AMI deferred revenue requirement 3,272 3,681 Emergency declarations 1,750 2,980 Production operations and maintenance expenses 9,199 12,245 AFUDC equity gross-up (1) 73,541 71,952 Acadia Unit 1 acquisition costs 2,151 2,230 Financing costs 7,646 7,923 Coughlin transaction costs 915 938 Corporate franchise tax, net 864 1,416 Non-service cost of postretirement benefits 6,650 4,629 Energy efficiency (3,056 ) 2,585 Accumulated deferred fuel 56,056 20,112 Other, net (8,048 ) (4,979 ) Total regulatory assets, net $ 165,947 $ 134,755 (1) Represents regulatory assets for past expenditures that were not earning a return on investment at September 30, 2019, and December 31, 2018, respectively. All other assets are earning a return on investment. The following table summarizes Cleco’s net regulatory assets and liabilities: (THOUSANDS) AT SEPT. 30, 2019 AT DEC. 31, 2018 Total Cleco Power regulatory assets, net $ 165,947 $ 134,755 Cleco 2016 Merger adjustments (1) Fair value of long-term debt 130,847 138,701 Postretirement costs 17,896 19,387 Financing costs 8,021 8,279 Debt issuance costs 5,826 6,252 Total Cleco regulatory assets, net $ 328,537 $ 307,374 (1) Cleco regulatory assets include acquisition accounting adjustments as a result of the 2016 Merger. Energy Efficiency In December 2018, Cleco Power filed a letter of intent with the LPSC to recover the accumulated decrease in revenues, also known as the LCFC, associated with the energy efficiency programs and began collecting the accumulated LCFC revenues in Cleco Power’s energy efficiency rates effective March 1, 2019. On March 28, 2019, Cleco Power received notice from the LPSC indicating denial of the request and subsequently reversed all revenues related to the accumulated LCFC. On October 21, 2019, Cleco Power received notice from the LPSC concluding that after further analysis Cleco Power will be allowed to recover the accumulated LCFC revenues. Other Regulatory Assets (Liabilities), Net In June 2017, the LPSC approved the establishment of a regulatory asset upon the completion of the Coughlin Pipeline project for the revenue requirement associated with the project until Cleco Power seeks recovery in the new FRP, which is anticipated to be effective July 1, 2020. The project was placed in service on September 6, 2019. At September 30, 2019 , Cleco Power had $0.2 million accrued as a regulatory asset for the Coughlin Pipeline project revenue requirement. Cleco Power anticipates collecting this amount over 12 months beginning July 1, 2020, subject to regulatory approval of Cleco Power’s new FRP. In January 2019, the LPSC approved the Cleco Cajun Transaction. Approval of the Cleco Cajun Transaction was conditioned upon certain commitments, including a $4.0 million annual reduction to Cleco Power’s retail customer rates. At September 30, 2019 , Cleco Power had $1.7 million accrued for the period from February 4, 2019, to June 30, 2019. This regulatory liability is being amortized over 12 months beginning July 1, 2019. |
Fair Value Accounting
Fair Value Accounting | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Accounting | Note 7 — Fair Value Accounting The amounts reflected on Cleco and Cleco Power’s Condensed Consolidated Balance Sheets at September 30, 2019 , and December 31, 2018 , 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, 2019 AT DEC. 31, 2018 (THOUSANDS) CARRYING VALUE* FAIR VALUE CARRYING VALUE* FAIR VALUE Long-term debt $ 3,191,452 $ 3,407,190 $ 2,889,631 $ 2,859,924 * The carrying value of long-term debt does not include deferred issuance costs of $14.2 million at September 30, 2019 , and $10.3 million at December 31, 2018 . Cleco Power AT SEPT. 30, 2019 AT DEC. 31, 2018 (THOUSANDS) CARRYING VALUE* FAIR VALUE CARRYING VALUE* FAIR VALUE Long-term debt $ 1,380,605 $ 1,625,480 $ 1,400,930 $ 1,517,152 * The carrying value of long-term debt does not include deferred issuance costs of $7.6 million at September 30, 2019 , and $8.3 million at December 31, 2018 . 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 FAIR VALUE MEASUREMENTS AT REPORTING DATE (THOUSANDS) AT SEPT. 30, 2019 QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) AT DEC. 31, 2018 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 $ 111,885 $ — $ 111,885 $ — $ 133,722 $ — $ 133,722 $ — FTRs 9,926 — — 9,926 23,355 — — 23,355 Other commodity derivatives 745 — 745 — — — — — Total assets $ 122,556 $ — $ 112,630 $ 9,926 $ 157,077 $ — $ 133,722 $ 23,355 Liability description FTRs $ 1,257 $ — $ — $ 1,257 $ 468 $ — $ — $ 468 Other commodity derivatives 41 — 41 — — — — — Total liabilities $ 1,298 $ — $ 41 $ 1,257 $ 468 $ — $ — $ 468 Cleco Power FAIR VALUE MEASUREMENTS AT REPORTING DATE (THOUSANDS) AT SEPT. 30, 2019 QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) AT DEC. 31, 2018 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 $ 76,947 $ — $ 76,947 $ — $ 55,900 $ — $ 55,900 $ — FTRs 8,601 — — 8,601 23,355 — — 23,355 Total assets $ 85,548 $ — $ 76,947 $ 8,601 $ 79,255 $ — $ 55,900 $ 23,355 Liability description FTRs $ 577 $ — $ — $ 577 $ 468 $ — $ — $ 468 Total liabilities $ 577 $ — $ — $ 577 $ 468 $ — $ — $ 468 The following tables summarize 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: Cleco FOR THE THREE MONTHS ENDED SEPT. 30, FOR THE NINE MONTHS ENDED SEPT. 30, (THOUSANDS) 2019 2018 2019 2018 Beginning balance $ 14,665 $ 25,133 $ 22,887 $ 7,044 Unrealized (losses) gains* (1,234 ) 4,520 (4,488 ) 6,153 Purchases 557 1,251 26,401 26,734 Settlements (5,319 ) (8,644 ) (36,131 ) (17,671 ) Ending balance $ 8,669 $ 22,260 $ 8,669 $ 22,260 * Cleco Power’s unrealized (losses) gains are reported through Accumulated deferred fuel on Cleco’s Condensed Consolidated Balance Sheet. Cleco Cajun’s unrealized (losses) gains are reported through Purchased power on Cleco’s Condensed Consolidated Income Statement. Cleco Power FOR THE THREE MONTHS ENDED SEPT. 30, FOR THE NINE MONTHS ENDED SEPT. 30, (THOUSANDS) 2019 2018 2019 2018 Beginning balance $ 13,910 $ 25,133 $ 22,887 $ 7,044 Unrealized (losses) gains* (1,700 ) 4,520 (3,644 ) 6,153 Purchases 1,133 1,251 20,961 26,734 Settlements (5,319 ) (8,644 ) (32,180 ) (17,671 ) Ending balance $ 8,024 $ 22,260 $ 8,024 $ 22,260 * Unrealized (losses) gains are reported through Accumulated deferred fuel on Cleco Power’s Condensed Consolidated Balance Sheet. The following tables quantify the significant unobservable inputs used in developing the fair value of Level 3 positions as of September 30, 2019 , and December 31, 2018 : Cleco FAIR VALUE VALUATION TECHNIQUE SIGNIFICANT UNOBSERVABLE INPUTS FORWARD PRICE RANGE (THOUSANDS, EXCEPT FORWARD PRICE RANGE) ASSETS LIABILITIES LOW HIGH FTRs at Sept. 30, 2019 $ 9,926 $ 1,257 RTO auction pricing FTR price - per MWh $ (2.29 ) $ 3.14 FTRs at Dec. 31, 2018 $ 23,355 $ 468 RTO auction pricing FTR price - per MWh $ (4.40 ) $ 15.10 Cleco Power FAIR VALUE VALUATION TECHNIQUE SIGNIFICANT UNOBSERVABLE INPUTS FORWARD PRICE RANGE (THOUSANDS, EXCEPT FORWARD PRICE RANGE) ASSETS LIABILITIES LOW HIGH FTRs at Sept. 30, 2019 $ 8,601 $ 577 RTO auction pricing FTR price - per MWh $ (1.67 ) $ 2.79 FTRs at Dec. 31, 2018 $ 23,355 $ 468 RTO auction pricing FTR price - per MWh $ (4.40 ) $ 15.10 Cleco utilizes different valuation techniques for fair value calculations. In order to measure the fair value for Level 1 assets and liabilities, Cleco obtains the closing price from published indices in active markets for the various instruments and multiplies this price by the appropriate number of instruments held. Level 2 fair values are determined by obtaining the closing price of similar assets and liabilities from published indices in active markets. Institutional money market funds assets are discounted 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, 2019 , 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 $91.5 million , $5.4 million , and $15.0 million , respectively, at September 30, 2019 , and $103.8 million , $11.2 million , and $18.7 million , respectively, at December 31, 2018 . 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 $57.4 million , $5.4 million , and $14.1 million , respectively, at September 30, 2019 , and $26.1 million , $11.2 million , and $18.6 million , respectively, at December 31, 2018 . 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 either 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. The other commodity derivatives are fixed price forwards that fluctuate in value as underlying prices change. These contracts contain counterparty credit risk because they are transacted directly with a counterparty and are not cleared on an exchange. These other commodity derivatives are recorded at fair value and categorized as Level 2 because pricing is indexed to other contracts. Cleco Power and Cleco Cajun’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, 2019 , and the year ended December 31, 2018 , Cleco did no t experience any transfers between levels within the fair value hierarchy. Commodity Contracts The following tables present 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, 2019 , and December 31, 2018 : Cleco DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS (THOUSANDS) BALANCE SHEET LINE ITEM AT SEPT. 30, 2019 AT DEC. 31, 2018 Commodity-related contracts FTRs Current Energy risk management assets $ 9,926 $ 23,355 Current Energy risk management liabilities 1,257 468 Other commodity derivatives Current Energy risk management assets 745 — Current Energy risk management liabilities 41 — Commodity-related contracts, net $ 9,373 $ 22,887 Cleco Power DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS (THOUSANDS) BALANCE SHEET LINE ITEM AT SEPT. 30, 2019 AT DEC. 31, 2018 Commodity-related contracts FTRs Current Energy risk management assets $ 8,601 $ 23,355 Current Energy risk management liabilities 577 468 Commodity-related contracts, net $ 8,024 $ 22,887 The following tables present the effect of derivatives not designated as hedging instruments on Cleco and Cleco Power’s Condensed Consolidated Statements of Income for the nine months ended September 30, 2019 , and 2018 : Cleco AMOUNT OF GAIN(LOSS) RECOGNIZED IN INCOME ON DERIVATIVES FOR THE THREE MONTHS ENDED SEPT. 30, FOR THE NINE MONTHS ENDED SEPT. 30, (THOUSANDS) INCOME STATEMENT LINE ITEM 2019 2018 2019 2018 Commodity-related contracts FTRs (1) Electric operations $ 1,997 $ 7,241 $ 12,396 $ 32,407 FTRs (1) Purchased power (2,648 ) (1,587 ) (12,985 ) (3,288 ) Other commodity derivatives Fuel used for electric generation 3,474 — 704 — Total $ 2,823 $ 5,654 $ 115 $ 29,119 (1) For the three and nine months ended September 30, 2019 , unrealized losses associated with FTRs for Cleco Power of $1.7 million and $3.6 million , respectively, were reported through Accumulated deferred fuel on the balance sheet. For the three and nine months ended September 30, 2018 , unrealized gains associated with FTRs for Cleco Power of $4.5 million and $6.2 million , respectively, were reported through Accumulated deferred fuel on the balance sheet. Cleco Power AMOUNT OF GAIN(LOSS) RECOGNIZED IN INCOME ON DERIVATIVES FOR THE THREE MONTHS ENDED SEPT. 30, FOR THE NINE MONTHS ENDED SEPT. 30, (THOUSANDS) INCOME STATEMENT LINE ITEM 2019 2018 2019 2018 Commodity-related contracts FTRs (1) Electric operations $ 1,997 $ 7,241 $ 12,400 $ 32,407 FTRs (1) Purchased power (1,828 ) (1,587 ) (4,800 ) (3,288 ) Total $ 169 $ 5,654 $ 7,600 $ 29,119 (1) For the three and nine months ended September 30, 2019 , unrealized losses associated with FTRs of $1.7 million and $3.6 million , respectively, were reported through Accumulated deferred fuel on the balance sheet. 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 the balance sheet. The total volume of FTRs that Cleco Power had outstanding at September 30, 2019 , and December 31, 2018 , was 14.6 million MWh and 8.7 million MWh, respectively. The total volume of FTRs that Cleco had outstanding at September 30, 2019 , and December 31, 2018 , was 23.4 million MWh and 8.7 million MWh, respectively. The total volume of other commodity derivatives Cleco had outstanding at September 30, 2019 , was 18.4 million MMBtus. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Note 8 — Debt In connection with the Cleco Cajun Transaction on February 4, 2019, Cleco Holdings borrowed $300.0 million under a new bridge loan agreement and $100.0 million under a new term loan agreement. Both loan agreements are variable rate debt and have a three -year term. Both loan agreements contain certain financial covenants, including requiring Cleco Holdings to maintain (i) a debt to capital ratio (as defined in the applicable agreement) below 65% and (ii) a rating applicable to Cleco’s senior debt rating (as defined in the applicable agreement). On September 11, 2019, Cleco Holdings completed the private placement of $300.0 million aggregate principal amount of its 3.375% senior notes due September 15, 2029. The proceeds from the issuance were used to repay the remaining amounts due under the $300.0 million bridge loan agreement and to repay a portion of the $100.0 million term loan agreement. The senior notes are governed by an indenture entered into between Cleco Holdings and a trustee. The indenture contains certain covenants that restrict Cleco Holdings’ ability to merge, consolidate or transfer or lease all or substantially all of its assets or create or incur certain liens. Upon approval of the Cleco Cajun Transaction, commitments were made to the LPSC by Cleco, including repayment of $400.0 million of Cleco Holdings’ debt prior to December 31, 2024. The cumulative minimum principal amounts committed to be repaid for each year through 2024 are as follows: (THOUSANDS) For the year ending Dec. 31, 2019* $ 66,700 2020 $ 132,300 2021 $ 200,000 2022 $ 266,700 2023 $ 332,300 2024 $ 400,000 * At September 30, 2019, Cleco Holdings satisfied this commitment. Also, in connection with the Cleco Cajun Transaction, Cleco Holdings increased its credit facility capacity by $75.0 million , for a total capacity of $175.0 million . All other terms remained the same. In addition, in connection with the Cleco Cajun Transaction, Cleco Holdings, on behalf of Cleco Cajun, issued three letters of credit totaling $1.1 million to a capacity agreement customer and a gas transport company. These letters of credit automatically renew each year and have no impact on Cleco Holdings’ credit facility. At September 30, 2019 , Cleco Holdings had a $34.5 million letter of credit to MISO pursuant to energy market requirements related to Cleco Cajun’s participation in MISO, which decreased availability under Cleco Holdings’ credit facility. Effective October 4, 2019, this letter of credit no longer decreases availability under Cleco Holdings’ credit facility. This letter of credit automatically renews each year. Cleco Power has $50.0 million of GO Zone bonds that mature in 2038 and are subject to a mandatory tender in 2020. At September 30, 2019, the bonds were included in long-term debt due within one year. |
Pension Plan and Employee Benef
Pension Plan and Employee Benefits | 9 Months Ended |
Sep. 30, 2019 | |
Retirement Benefits [Abstract] | |
Pension Plan and Employee Benefits | Note 9 — 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. On September 12, 2019, Cleco made a $12.3 million discretionary contribution to the pension plan. Cleco does not expect to make any further contributions to the pension plan in 2019. Cleco Power is the plan sponsor and Support Group is the plan administrator. The plan was amended on February 4, 2019, to include certain former NRG Energy employees who are now Cleco Cajun employees. The Cleco Cajun employees are eligible to participate as a cash balance participant and are credited with all service that was credited to them under the NRG Pension Plan as of February 4, 2019. Benefits under the plan amendment reflect an employee’s years of service, age at retirement, and accrued benefit at retirement. 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. The non-service components of net periodic pension and Other Benefits cost are included in Other income (expense), net within Cleco and Cleco Power’s Condensed Consolidated Statements of Income. The components of net periodic pension and Other Benefits cost for the three and nine months ended September 30, 2019 , and 2018 were as follows: PENSION BENEFITS OTHER BENEFITS FOR THE THREE MONTHS ENDED SEPT. 30, FOR THE THREE MONTHS ENDED SEPT. 30, (THOUSANDS) 2019 2018 2019 2018 Components of periodic benefit costs Service cost $ 2,104 $ 2,377 $ 328 $ 336 Interest cost 5,621 5,215 435 361 Expected return on plan assets (6,625 ) (5,943 ) — — Amortizations Prior period service credit (18 ) (18 ) — — Net loss 1,962 3,078 105 96 Net periodic benefit cost $ 3,044 $ 4,709 $ 868 $ 793 PENSION BENEFITS OTHER BENEFITS FOR THE NINE MONTHS ENDED SEPT. 30, FOR THE NINE MONTHS ENDED SEPT. 30, (THOUSANDS) 2019 2018 2019 2018 Components of periodic benefit costs Service cost $ 6,311 $ 7,130 $ 896 $ 1,011 Interest cost 16,864 15,869 1,235 1,076 Expected return on plan assets (19,876 ) (17,818 ) — — Amortizations Prior period service credit (54 ) (53 ) — — Net loss 5,887 8,998 25 105 Net periodic benefit cost $ 9,132 $ 14,126 $ 2,156 $ 2,192 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, 2019 , was $0.5 million and $1.6 million , respectively. 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. Cleco Holdings is the plan sponsor for the other benefit plans. There are no assets set aside in a trust, and the liabilities are reported on the individual subsidiaries’ financial statements. The expense related to other benefits reflected in Cleco Power’s Condensed Consolidated Statements of Income for the three and nine months ended September 30, 2019 , was $0.9 million and $2.3 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, 2018 , was $0.9 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, 2019 , and December 31, 2018 , were as follows: Cleco (THOUSANDS) AT SEPT. 30, 2019 AT DEC. 31, 2018 Current $ 4,130 $ 4,130 Non-current $ 35,090 $ 36,325 Cleco Power (THOUSANDS) AT SEPT. 30, 2019 AT DEC. 31, 2018 Current $ 3,584 $ 3,584 Non-current $ 30,769 $ 31,694 SERP Certain Cleco officers are covered by SERP. 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 income (expense), net within Cleco and Cleco Power’s Condensed Consolidated Statements of Income. The components of the net periodic benefit cost related to SERP for the three and nine months ended September 30, 2019 , and 2018 were as follows: FOR THE THREE MONTHS ENDED SEPT. 30, FOR THE NINE MONTHS (THOUSANDS) 2019 2018 2019 2018 Components of periodic benefit costs Service cost $ 82 $ 136 $ 247 $ 407 Interest cost 831 769 2,494 2,296 Amortizations Prior period service credit (34 ) (35 ) (104 ) (104 ) Net loss 381 723 1,143 2,180 Net periodic benefit cost $ 1,260 $ 1,593 $ 3,780 $ 4,779 The expense related to SERP reflected on Cleco Power’s Condensed Consolidated Statements of Income for the three and nine months ended September 30, 2019 , was $0.2 million and $0.6 million , respectively. The 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. 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, 2019 , and December 31, 2018 , were as follows: Cleco (THOUSANDS) AT SEPT. 30, 2019 AT DEC. 31, 2018 Current $ 4,478 $ 4,478 Non-current $ 73,255 $ 73,936 Cleco Power (THOUSANDS) AT SEPT. 30, 2019 AT DEC. 31, 2018 Current $ 930 $ 930 Non-current $ 11,759 $ 12,025 401(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 Plan is voluntary, and active Cleco employees are eligible to participate. Cleco’s 401(k) Plan was amended upon the close of the Cleco Cajun Transaction to include Cleco Cajun employees. Cleco’s 401(k) Plan expense for the three and nine months ended September 30, 2019 , and 2018 was as follows: FOR THE THREE MONTHS ENDED SEPT. 30, FOR THE NINE MONTHS ENDED SEPT 30, (THOUSANDS) 2019 2018 2019 2018 401(k) Plan expense $ 2,077 $ 1,424 $ 6,136 $ 4,716 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, 2019 , and 2018 was as follows: FOR THE THREE MONTHS ENDED SEPT. 30, FOR THE NINE MONTHS (THOUSANDS) 2019 2018 2019 2018 401(k) Plan expense $ 873 $ 254 $ 2,625 $ 865 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 10 — 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, 2019 , and 2018 : Cleco FOR THE THREE MONTHS ENDED SEPT. 30, FOR THE NINE MONTHS ENDED SEPT. 30, 2019 2018 2019 2018 Effective tax rate 20.2 % 19.4 % 21.1 % 20.7 % Cleco Power FOR THE THREE MONTHS ENDED SEPT. 30, FOR THE NINE MONTHS ENDED SEPT. 30, 2019 2018 2019 2018 Effective tax rate 19.4 % 22.1 % 21.2 % 23.1 % For the three and nine months ended September 30, 2019 , and 2018 , 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 tax benefits, including AFUDC equity; and state tax expense. Net Operating Loss For the 2019 tax year, Cleco is expected to create approximately $575.5 million and $121.8 million of federal and state net operating losses, respectively, primarily due to the Cleco Cajun Transaction. The federal net operating loss may be carried forward indefinitely, and the state net operating loss carryforwards will begin to expire in 2039. Cleco considers it more likely than not that these income tax losses will be utilized to reduce future income tax payments, and the entire net operating loss carryforward will be utilized within the statutory deadlines. Uncertain Tax Positions Cleco classifies all interest related to uncertain tax positions as a component of interest payable and interest expense. At September 30, 2019 , and December 31, 2018 , Cleco and Cleco Power had no interest payable related to uncertain tax positions. For the three and nine months ended September 30, 2019 , and 2018 , Cleco and Cleco Power had no interest expense related to uncertain tax positions. At September 30, 2019 , 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, 2019 , 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. Cleco participates in the Internal Revenue Service’s (IRS) Compliance Assurance Process in which financial results are examined and agreed upon prior to filing the federal consolidated tax return. The 2018 federal income tax year remains subject to examination by the IRS. While the statute of limitations remains open for tax years 2016 and 2017 until 2020 and 2021, respectively, management believes the likelihood of further exam by the IRS is remote. The state income tax years that remain subject to examination by the Louisiana Department of Revenue are 2015, 2016, and 2017. Cleco classifies income tax penalties as a component of other expense. For the three and nine months ended September 30, 2019 , and 2018 , no penalties were recognized. |
Disclosures about Segments
Disclosures about Segments | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Disclosures about Segments | Note 11 — Disclosures about Segments Cleco’s reportable segments are based on its method of internal reporting, which disaggregates business units by its first-tier subsidiary. Cleco’s reportable segments are Cleco Power and Cleco Cajun. Each 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, an investment subsidiary, and a subsidiary formed to facilitate the Cleco Cajun Transaction. Upon the completion of the Cleco Cajun Transaction on February 4, 2019, Cleco Cajun became a new reportable segment. For more information on the transaction, see Note 2 — “Business Combination.” The financial results in the following tables are presented on an accrual basis. The historical segment information was not recast because the Cleco Cajun segment only consists of the newly acquired business. There were no other changes to Cleco’s existing reportable segments. 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, 2019 (THOUSANDS) CLECO POWER CLECO CAJUN OTHER ELIMINATIONS CONSOLIDATED Revenue Electric operations $ 339,869 $ 114,453 $ (2,420 ) $ — $ 451,902 Other operations 18,485 33,737 — (2,442 ) 49,780 Affiliate revenue 334 31 28,252 (28,617 ) — Electric customer credits (13,711 ) — — — (13,711 ) Operating revenue, net $ 344,977 $ 148,221 $ 25,832 $ (31,059 ) $ 487,971 Depreciation and amortization $ 44,903 $ 10,009 $ 2,092 $ — $ 57,004 Interest income $ 1,421 $ 220 $ 228 $ (179 ) $ 1,690 Interest charges $ 17,983 $ — $ 18,028 $ (179 ) $ 35,832 Federal and state income tax expense (benefit) $ 12,431 $ 7,612 $ (5,955 ) $ — $ 14,088 Net income (loss) $ 51,527 $ 22,806 $ (18,768 ) $ — $ 55,565 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 SEGMENT INFORMATION FOR THE NINE MONTHS ENDED SEPT. 30, 2019 (THOUSANDS) CLECO POWER CLECO CAJUN OTHER ELIMINATIONS CONSOLIDATED Revenue Electric operations $ 862,969 $ 274,610 $ (7,260 ) $ (1 ) $ 1,130,318 Other operations 53,318 83,619 2 (5,395 ) 131,544 Affiliate revenue 971 31 77,800 (78,802 ) — Electric customer credits (30,565 ) (1,267 ) — — (31,832 ) Operating revenue, net $ 886,693 $ 356,993 $ 70,542 $ (84,198 ) $ 1,230,030 Depreciation and amortization $ 126,610 $ 25,555 $ 6,231 $ (1 ) $ 158,395 Interest income $ 3,281 $ 842 $ 841 $ (508 ) $ 4,456 Interest charges $ 52,498 $ — $ 53,682 $ (509 ) $ 105,671 Federal and state income tax expense (benefit) $ 34,407 $ 15,169 $ (17,220 ) $ (1 ) $ 32,355 Net income (loss) $ 127,595 $ 46,788 $ (53,515 ) $ — $ 120,868 Additions to property, plant, and equipment $ 247,987 $ 3,654 $ 204 $ — $ 251,845 Equity investment in investees (1) $ 17,672 $ — $ — $ — $ 17,672 Goodwill (1) $ 1,490,797 $ — $ — $ — $ 1,490,797 Total segment assets (1) $ 5,988,444 $ 998,289 $ 550,323 $ (38,683 ) $ 7,498,373 (1) Balances as of September 30, 2019 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) $ 5,839,853 $ 633,756 $ (36,795 ) $ 6,436,814 (1) Balances as of December 31, 2018 |
Regulation and Rates
Regulation and Rates | 9 Months Ended |
Sep. 30, 2019 | |
Regulated Operations [Abstract] | |
Regulation and Rates | Note 12 — Regulation and Rates At September 30, 2019 , Provision for rate refund on Cleco and Cleco Power’s Condensed Consolidated Balance Sheets consisted primarily of $38.4 million for the estimated refund for the tax-related benefits from the TCJA, $3.0 million for the estimated refund related to the FERC audit, $2.8 million for the cost of service savings refunds, $2.3 million for estimated FRP refunds, and $1.9 million for potential reductions to the transmission ROE. For more information about the FERC audit, see Note 14 — “Litigation, Other Commitments and Contingencies, and Disclosures about Guarantees — Litigation — FERC Audit.” Transmission ROE A complaint was 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, 2019 , Cleco Power h ad $1.9 million accrued for potential ROE reductions. For more information on the ROE complaints, see Note 14 — “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 Cleco Power’s current 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 are ultimately subject to LPSC approval. On June 28, 2019, Cleco Power filed an application with the LPSC for a new FRP, with anticipated new rates being effective July 1, 2020. Cleco Power has responded to several sets of data requests relating to the new FRP. Cleco Power must file annual monitoring reports no later than October 31 for the 12-month period ending 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 2016 Merger Commitments. The $1.2 million cost of service savings from the 2016 Merger Commitments were refunded in September 2018. Cleco Power expects the LPSC to approve the 2017 FRP monitoring report in the fourth quarter of 2019. On October 31, 2018, Cleco Power filed its monitoring report for the 12-month period ended June 30, 2018, which indicated that no refund was due as a result of the FRP and $1.2 million of cost of service savings refunds are due to be returned to eligible customers. On December 21, 2018, Cleco Power responded to the first set of data requests for the 2018 FRP monitoring report. On October 4, 2019, Cleco Power filed comments and supporting testimony to the LPSC’s initial and final report for the 2017 FRP monitoring report regarding the realignment of SSR revenues between fuel and base revenues. Cleco Power proposed the re-allocation of SSR revenues, which would result in no additional FRP refund for the 12-month period ended June 30, 2017, and $2.3 million of additional FRP refunds for the 12-month period ended June 30, 2018. At September 30, 2019, Cleco Power had $2.3 million accrued for the estimated FRP refunds relating to the 12-month period ended June 30, 2018. On October 31, 2019, Cleco Power filed its monitoring report for the 12-month period ended June 30, 2019, which indicated that no refund was due as a result of the FRP and $1.2 million of cost of service savings refunds are due to be returned to eligible customers. At September 30, 2019 , Cleco Power had $1.2 million accrued for the estimated cost of service savings refunds relating to the 12-month period ended June 30, 2019. TCJA The provisions of the TCJA reduced the top federal statutory corporate income tax rate from 35% to 21%. As a result of the tax rate reduction, on January 1, 2018, Cleco Power began accruing an estimated reserve for the reduction in the federal statutory corporate income tax rate. In February 2018, the LPSC directed utilities, including Cleco Power, to provide considerations of the appropriate manner to flow through to ratepayers the benefits of the reduction in corporate income taxes as a result of the TCJA. After various filings and settlement discussions, on July 10, 2019, the LPSC approved Cleco Power’s rate refund of $79.2 million , plus interest, for the reduction in the statutory federal tax rate for the period from January 2018 to June 2020. The refund is being credited to customers over 12 months beginning August 1, 2019. At September 30, 2019 , Cleco Power had $38.4 million accrued for the estimated federal tax-related benefits from the TCJA and $3.0 million accrued for related interest. Also, on July 10, 2019, the LPSC approved Cleco Power’s motion to address the rate redesign and the regulatory liability for excess ADIT, resulting from the enactment of the TCJA, in Cleco Power’s application for its next FRP, which was filed on June 28, 2019. 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 of Teche Unit 3 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 could be implemented to mitigate reliability issues. One mitigating factor identified was Cleco Power’s Terrebonne to Bayou Vista Transmission project. The Terrebonne to Bayou Vista project was completed in April 2019. Cleco Power received a termination notice, effective April 30, 2019, and filed paperwork to withdraw the filed Attachment Y. While operating as an SSR unit, Cleco Power received monthly payments that included recovery of expenses, including capital expenditures, related to the operations of Teche Unit 3. Additionally, MISO allocated SSR costs to the load serving entities that required the operation of the SSR unit, including Cleco Power. These payments and cost allocations were finalized as part of a MISO SSR settlement approved in December 2018. Cleco Power operated Teche Unit 3 as an SSR unit from April 2017 until April 2019. After the end of the final SSR agreement, which was terminated on April 30, 2019, Cleco Power expects Teche Unit 3 to be available to run until the estimated 2021 in-service date of Bayou Vista to Segura Transmission project, at which time Cleco Power does not expect to offer the unit into MISO, barring any grid or customer reliability issues or other similar reasons. At September 30, 2019 , Cleco Power had $6.1 million accrued for the net capital refund for capital expenditures paid for by third parties. As part of the settlement, one of the load serving entities agreed to reimburse Cleco Power for their portion of the capital refund. Management is unable to determine the timing of the capital refund. |
Variable Interest Entities
Variable Interest Entities | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entities | Note 13 — 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, 2019 , consisted of its equity investment of $17.7 million . The following table presents the components of Cleco Power’s equity investment in Oxbow: INCEPTION TO DATE (THOUSANDS) AT SEPT. 30, 2019 AT DEC. 31, 2018 Purchase price $ 12,873 $ 12,873 Cash contributions 6,399 6,399 Dividends (1,600 ) (1,100 ) Total equity investment in investee $ 17,672 $ 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, 2019 AT DEC. 31, 2018 Oxbow’s net assets/liabilities $ 35,345 $ 36,345 Cleco Power’s 50% equity $ 17,672 $ 18,172 Cleco Power’s maximum exposure to loss $ 17,672 $ 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) 2019 2018 2019 2018 Operating revenue $ 2,776 $ 2,214 $ 7,114 $ 4,134 Operating expenses 2,776 2,214 7,114 4,134 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, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Litigation, Other Commitments and Contingencies, and Disclosures about Guarantees | Note 14 — Litigation, Other Commitments and Contingencies, and Disclosures about Guarantees Litigation 2016 Merger In connection with the 2016 Merger, four actions were filed in the 9th 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 2016 Merger at a price that allegedly undervalued Cleco, and failing to disclose material information about the 2016 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 9th 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 2016 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 did not value Cleco adequately, failing to structure a process through which shareholder value would be maximized and engaging in self-dealing by ignoring conflicts of interest. The Butler and Creative Life Services petitions also allege that the directors breached their fiduciary duties by failing to disclose material information about the 2016 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 9th 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 9th 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 9th Judicial District Court for Rapides Parish. In February 2015, the 9th 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 9th 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. In November 2018, Cleco filed exceptions of no cause of action and res judicata, seeking to dismiss all claims. The District Court denied the exceptions on January 14, 2019. A hearing on the plaintiffs’ request for certification of a class was scheduled for August 26, 2019; however, prior to the hearing, the parties reached an agreement to certify a limited class. 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. In March 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 in April 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. Also, in April 2018, Cleco Power filed a motion to dismiss on the same grounds that previously were successful in the Bonin Case. In July 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. In August 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 in September 2018. Cleco Power filed a response in October 2018. All claims were dismissed against Cleco Power by ruling of the Judge on March 18, 2019. The plaintiffs filed an appeal of the dismissal with the United States Court of Appeals for the Fifth Circuit. The case has been fully briefed. Dispute with Saulsbury Industries In October 2018, Cleco Power sued Saulsbury Industries, Inc., the former general contractor for the St. Mary Clean Energy Center project, seeking damages for Saulsbury Industries, Inc.’s failure to complete the St. Mary Clean Energy Center project on time and for costs incurred by Cleco Power in hiring a replacement general contractor. The action was filed in the 9th Judicial District Court for Rapides Parish, No. 263339. Saulsbury Industries, Inc. removed the case to the U.S. District Court for the Western District of Louisiana, on March 1, 2019. In January 2019, Cleco Power was served with a summons in Saulsbury Industries, Inc. v. Cabot Corporation and Cleco Power LLC , in the U.S. District Court for the Western District of Louisiana. Saulsbury Industries, Inc. alleges that Cleco Power and Cabot Corporation caused the delays in the St. Mary Clean Energy Center project, resulting in significant impact to Saulsbury Industries, Inc.’s direct and indirect costs. On June 5, 2019, Cleco Power and Cabot Corporation each filed separate motions to dismiss. On October 24, 2019, the District Court denied Cleco’s motion as premature and ruled that Saulsbury Industries, Inc. had six weeks to conduct discovery on specified jurisdictional issues. On October 10, 2019, Cleco Power was served with a summons in Saulsbury Industries, Inc. v. Cabot Corporation and Cleco Power LLC in the 16th Judicial District Court for St. Mary Parish, No. 133910-A. Saulsbury Industries, Inc. alleges that Cleco Power and Cabot Corporation caused the delays in the St. Mary Clean Energy Center project, resulting in significant impact to Saulsbury Industries, Inc.'s direct and indirect costs. Saulsbury Industries, Inc. also seeks to enforce an alleged lien on the St. Mary Energy Center project. Cleco has not filed responsive pleadings in the case but denies that the case has any merit and that Saulsbury Industries, Inc. perfected a lien against the property involved. LPSC Audits Fuel Audit Generally, Cleco Power’s cost of fuel used for electric generation and the cost of purchased power are recovered through the LPSC-established FAC that enables Cleco Power to pass on to its customers substantially all such charges. Recovery of FAC costs is subject to periodic fuel audits by the LPSC. The LPSC FAC General Order issued in November 1997, in Docket No. U-21497 provides that an audit of FAC filings will be performed at least every other year. In March 2018, Cleco Power received notice of an FAC audit from the LPSC for the period of January 2016, to December 2017. The total amount of fuel expense included in the audit was $536.2 million . In August 2018, LPSC Staff issued its audit report, which recommended no disallowance of fuel costs. On April 26, 2019, the report was approved by the LPSC. 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 Cleco Power 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. In May 2018, Cleco Power received notice of an EAC audit from the LPSC for the period of January 2016 to December 2017. The total amount of environmental expense included in this audit is $30.7 million . On July 16, 2019, LPSC Staff issued its audit report, which recommended no disallowance of environmental cost. On September 11, 2019, the report was approved by the LPSC. Cleco Power has EAC filings for January 2018 and thereafter that remain subject to audit. Historically, the disallowances have not been material. If a disallowance of environmental cost is ordered resulting in a refund to Cleco Power’s customers, 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 Mercury and Air Toxics Standards (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 approved formula rates, Attachment O of the MISO tariff and certain grandfathered agreements. The calculation of the rate formulas, as well as FERC accounting and reporting requirements, are subject to periodic audits by FERC. In March 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, through June 30, 2019. On September 27, 2019, Cleco Power received the final audit report, which indicated 12 findings of noncompliance with a combination of FERC accounting and reporting requirements and computation of revenue requirements along with 59 recommendations associated with the audit period. Cleco Power submitted a plan for implementing the audit recommendations on October 28, 2019. Cleco Power also submitted the refund analysis on November 7, 2019, which resulted in an estimate refund of $3.0 million related to the FERC audit findings. This amount was recorded in Provision for rate refund on Cleco and Cleco Power’s Condensed Consolidated Balance Sheets at September 30, 2019 . Cleco Power anticipates this amount to be refunded to its wholesale transmission customers as a reduction in Attachment O and grandfathered agreement rates over 12 months commencing June 1, 2020. Transmission ROE A complaint was 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 complaint sought to reduce the 12.38% ROE used in MISO’s transmission rates to a proposed 6.68% . The complaint, filed in February 2015, was for the period February 2015 through May 2016. In June 2016, an administrative law judge issued an initial decision in the 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 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, 2019 , Cleco Power had $1.9 million accrued for potential ROE reductions. 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. South Central Generating In 2017, Louisiana Generating received insurance settlement proceeds for costs incurred to resolve a lawsuit which was brought by the EPA and the LDEQ against Louisiana Generating related to Big Cajun II, Unit 3. Entergy Gulf States, as co-owner of Big Cajun II, Unit 3, is expected to be allocated a portion of the insurance settlement proceeds. Any amount allocated to Entergy Gulf States will be determined by ongoing litigation and negotiations. South Central Generating estimated this amount to be $10.0 million . As part of the Cleco Cajun Transaction, Cleco Cajun assumed the $10.0 million contingent liability and NRG Energy indemnified Cleco for losses associated with this litigation matter. As a result, Cleco also recorded a $10.0 million indemnification asset, which was included in the preliminary purchase price allocation. Prior to the Cleco Cajun Transaction, South Central Generating was involved in various litigation matters, including environmental and contract proceedings, before various courts regarding matters arising out of the ordinary course of business. Management is unable to estimate any potential losses that Cleco Cajun may ultimately be responsible for with respect to any one of these matters in the event of a negative outcome. As part of the Cleco Cajun Transaction, NRG Energy indemnified Cleco for losses as of the closing date associated with matters that existed as of the closing date, including pending litigation. 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, 2019 , believes the probable and reasonably estimable liabilities based on the eventual disposition of these matters are $6.0 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 $86.4 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. At September 30, 2019 , Cleco Holdings had a $34.5 million letter of credit to MISO pursuant to energy market requirements related to Cleco Cajun’s participation in MISO, which decreased availability under Cleco Holdings’ credit facility. Effective October 4, 2019, this letter of credit no longer decreases availability under Cleco Holdings’ credit facility. This letter of credit automatically renews each year. 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 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. 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 and Cleco Cajun are participants 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 increase energy costs within pricing zones. Cleco Power and Cleco Cajun use FTRs to mitigate transmission congestion price risks. Changes to anticipated transmission paths may result in an unexpected increase in energy costs. |
Affiliate Transactions
Affiliate Transactions | 9 Months Ended |
Sep. 30, 2019 | |
Related Party Transactions [Abstract] | |
Affiliate Transactions | Note 15 — Affiliate Transactions At September 30, 2019 , Cleco has an affiliate payable of $3.2 million to Cleco Group for a federal income tax refund that was received by Cleco Holdings. 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, 2019 AT DEC. 31, 2018 (THOUSANDS) ACCOUNTS RECEIVABLE ACCOUNTS PAYABLE ACCOUNTS RECEIVABLE ACCOUNTS PAYABLE Cleco Holdings $ 1 $ 94 $ 699 $ 88 Support Group 1,361 8,610 2,619 7,755 Cleco Cajun 712 18 — — Total $ 2,074 $ 8,722 $ 3,318 $ 7,843 |
Intangible Assets and Liabiliti
Intangible Assets and Liabilities | 9 Months Ended |
Sep. 30, 2019 | |
Intangible Assets And Liabilities Disclosure [Abstract] | |
Intangible Assets and Liabilities | Note 16 — Intangible Assets and Liabilities 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. This intangible asset is expected to have a life of 12 years, but could have a life up to 15 years depending on the time period required to collect the required amount from Cleco Power’s customers. 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 2016 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 2016 Merger. Cleco Katrina/Rita records amortization expense based on actual collections. As a result of the 2016 Merger, fair value adjustments were recorded on Cleco’s Condensed 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 4 years and 16 years and the amortization is included in Electric operations on Cleco’s Condensed Consolidated Statement of Income. As a result of the Cleco Cajun Transaction, preliminary fair value adjustments were recorded on Cleco’s Condensed Consolidated Balance Sheet for the difference between the contract and market price of acquired long-term wholesale power agreements. The preliminary fair value of intangible assets of $98.9 million and intangible liabilities of $14.2 million was reflected in the preliminary purchase price allocation. At the end of their life, these intangible assets and liabilities will have no residual value. These intangibles are amortized over the remaining life of each applicable contract ranging between two years and eight years. The amortization is included in Electric operations on Cleco’s Condensed Consolidated Statement of Income. As part of the Cleco Cajun Transaction, Cleco assumed an LTSA for maintenance services related to the Cottonwood Plant. An intangible liability of $24.1 million was reflected in the preliminary purchase price allocation and is being amortized using the straight-line method over the estimated remaining life of the LTSA of seven years. The amortization is included as a reduction to the LTSA prepayments on Cleco’s Condensed Consolidated Balance Sheet. For more information on the fair value adjustments of intangible assets and liabilities related to the Cleco Cajun Transaction, see Note 2 — “Business Combination.” The following tables present Cleco and Cleco Power’s amortization of intangible assets and liabilities: Cleco FOR THE THREE MONTHS ENDED SEPT. 30, FOR THE NINE MONTHS ENDED SEPT. 30, (THOUSANDS) 2019 2018 2019 2018 Intangible assets Cleco Katrina/Rita right to bill and collect storm recovery charges $ 5,660 $ 5,623 $ 15,702 $ 15,617 Trade name $ 64 $ 64 $ 191 $ 191 Power supply agreements $ 6,474 $ 2,420 $ 17,873 $ 7,260 Intangible liabilities LTSA $ 871 $ — $ 2,323 $ — Power supply agreements $ 882 $ — $ 2,352 $ — Cleco Power FOR THE THREE MONTHS ENDED SEPT. 30, FOR THE NINE MONTHS ENDED SEPT. 30, (THOUSANDS) 2019 2018 2019 2018 Cleco Katrina/Rita right to bill and collect storm recovery charges $ 5,660 $ 5,623 $ 15,702 $ 15,617 The following tables summarize the balances for intangible assets and liabilities subject to amortization for Cleco and Cleco Power: Cleco (THOUSANDS) AT SEPT. 30, 2019 AT DEC. 31, 2018 Intangible assets Cleco Katrina/Rita right to bill and collect storm recovery charges $ 70,594 $ 70,594 Trade name 5,100 5,100 Power supply agreements 184,004 85,104 Total intangible assets carrying amount 259,698 160,798 Intangible liabilities LTSA 24,100 — Power supply agreements 14,200 — Total intangible liability carrying amount 38,300 — Net intangible assets carrying amount 221,398 160,798 Accumulated amortization (105,583 ) (76,491 ) Net intangible assets subject to amortization $ 115,815 $ 84,307 Cleco Power (THOUSANDS) AT SEPT. 30, 2019 AT DEC. 31, 2018 Cleco Katrina/Rita right to bill and collect storm recovery charges $ 177,537 $ 177,537 Accumulated amortization (172,146 ) (156,444 ) Net intangible assets subject to amortization $ 5,391 $ 21,093 Goodwill On April 13, 2016, in connection with the completion of the 2016 Merger, Cleco recognized goodwill of $1.49 billion . Management assigned the recognized goodwill to the Cleco Power reporting segment. 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. Cleco conducted its 2019 annual impairment test using an August 1, 2019, measurement date. The fair value of the Cleco Power reporting segment 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 related to capital expenditures, long-term rate of growth, 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, 2019. Management estimated the fair value of Cleco Power’s equity to be $3.97 billion at the August 1, 2019, measurement date. The carrying value of Cleco Power’s equity was approximately $3.40 billion with the excess of the fair value over the carrying value representing 16.8% or $570.4 million . There were no accumulated impairment charges. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Note 17 — 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, 2019 FOR THE NINE MONTHS ENDED SEPT. 30, 2019 (THOUSANDS) POSTRETIREMENT BENEFIT NET GAIN Balances, beginning of period $ 1,504 $ 1,786 Amounts reclassified from AOCI Amortization of postretirement benefit net gain (37 ) (319 ) Balances, Sept. 30, 2019 $ 1,467 $ 1,467 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 AOCI Amortization of postretirement benefit net loss 261 551 Balances, Sept. 30, 2018 $ (2,370 ) $ (2,370 ) Cleco Power FOR THE THREE MONTHS ENDED SEPT. 30, 2019 FOR THE NINE MONTHS ENDED SEPT. 30, 2019 (THOUSANDS) POSTRETIREMENT NET LOSS TOTAL AOCI POSTRETIREMENT NET LOSS TOTAL AOCI Balances, beginning of period $ (6,775 ) $ (5,994 ) $ (12,769 ) $ (7,060 ) $ (6,122 ) $ (13,182 ) Amounts reclassified from AOCI Amortization of postretirement benefit net loss 230 — 230 515 — 515 Reclassification of net loss to interest charges — 63 63 — 191 191 Balances, Sept. 30, 2019 $ (6,545 ) $ (5,931 ) $ (12,476 ) $ (6,545 ) $ (5,931 ) $ (12,476 ) 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 Balances, Sept. 30, 2018 $ (7,565 ) $ (5,066 ) $ (12,631 ) $ (7,565 ) $ (5,066 ) $ (12,631 ) |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
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. Cleco’s condensed consolidated financial statements include the financial results of Cleco Cajun from the closing of the Cleco Cajun Transaction on February 4, 2019, through September 30, 2019. |
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 on Form 10-Q 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 fiscal year ended December 31, 2018. 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. |
Leases | Cleco accounts for leases in accordance with accounting guidance effective January 1, 2019. For more information on this guidance, see Note 3 — “Recent Authoritative Guidance.” Cleco determines if a contract is a lease at its inception. If a contract is determined to be a lease, Cleco recognizes a ROU asset and lease liability at the commencement date based on the present value of lease payments over the lease term. The present value of the lease payments is determined by using the implicit interest rate if readily determinable. Cleco’s incremental borrowing rate for a term similar to the duration of the lease based on information available at the commencement date is used if the implicit interest rate is not readily determinable. Cleco recognizes ROU assets and lease liabilities for leasing arrangements with terms greater than one year. Except for the marine transportation asset class, Cleco accounts for lease and non-lease components in a contract as a single lease component for all classes of underlying assets. Cleco’s marine transportation contracts, which include barges and towboats, contain non-lease components, such as maintenance and labor. Cleco allocates the consideration in these contracts between lease and non-lease components based on estimates of fair value from third parties that typically execute leases for this class of assets. Expense for a lessee operating lease is recognized as a single lease cost on a straight-line basis over the lease term and reflected in the appropriate income statement line item based on the leased asset’s function. Income for a lessor operating lease is recognized as a single lease income item on a straight-line basis over the lease term and reflected in the appropriate income statement line item based on the lease asset’s function. |
Leases | Cleco accounts for leases in accordance with accounting guidance effective January 1, 2019. For more information on this guidance, see Note 3 — “Recent Authoritative Guidance.” Cleco determines if a contract is a lease at its inception. If a contract is determined to be a lease, Cleco recognizes a ROU asset and lease liability at the commencement date based on the present value of lease payments over the lease term. The present value of the lease payments is determined by using the implicit interest rate if readily determinable. Cleco’s incremental borrowing rate for a term similar to the duration of the lease based on information available at the commencement date is used if the implicit interest rate is not readily determinable. Cleco recognizes ROU assets and lease liabilities for leasing arrangements with terms greater than one year. Except for the marine transportation asset class, Cleco accounts for lease and non-lease components in a contract as a single lease component for all classes of underlying assets. Cleco’s marine transportation contracts, which include barges and towboats, contain non-lease components, such as maintenance and labor. Cleco allocates the consideration in these contracts between lease and non-lease components based on estimates of fair value from third parties that typically execute leases for this class of assets. Expense for a lessee operating lease is recognized as a single lease cost on a straight-line basis over the lease term and reflected in the appropriate income statement line item based on the leased asset’s function. Income for a lessor operating lease is recognized as a single lease income item on a straight-line basis over the lease term and reflected in the appropriate income statement line item based on the lease asset’s function. |
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. |
Derivatives and Other Risk Management Activity | Cleco’s Energy Market Risk Management Policy authorizes hedging of commodity price risk with physical or financially settled derivative instruments. Some of these contracts may qualify for the normal purchase, normal sale (NPNS) exception under derivative accounting guidance. Contracts that do not qualify for NPNS accounting treatment or are not elected for NPNS accounting treatment are marked-to-market and recorded on the balance sheet at their fair value. Cleco Power and Cleco Cajun are awarded and/or purchase FTRs in auctions facilitated by MISO. The majority of these FTRs are purchased in annual auctions during the second quarter, but additional FTRs may be purchased in monthly auctions. FTRs represent economic hedges of future congestion charges that will be incurred in serving customer load. FTRs are derivatives not designated as hedging instruments for accounting purposes. Cleco Power’s FTRs are marked-to-market with the resulting unrealized gains or losses deferred as a component of deferred fuel assets or liabilities in accordance with regulatory policy. At settlement, realized gains or losses are included in the FAC and reflected on customers’ bills as a component of the fuel charge. Cleco Cajun’s FTRs are marked-to-market with the resulting unrealized gains and losses recorded on the income statement as a component of purchased power expense. At settlement, realized gains or losses are also recorded on the income statement as a component of purchased power expense. Cleco Cajun entered into other commodity derivative contracts during the nine months ended September 30, 2019, that did not qualify for hedge accounting under applicable accounting standards. When these contracts are marked-to-market, the resulting unrealized gain or loss is recorded on the income statement as a component of fuel expense. At settlement, realized gains or losses will also be recorded on the income statement as a component of fuel expense. For more information on FTRs and other commodity derivatives, see Note 7 — “Fair Value Accounting — Commodity Contracts.” Cleco may also 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. |
Recent Authoritative Guidance | In February 2016, FASB amended the guidance to account for leases. Effective January 1, 2019, Cleco adopted the amended guidance using the optional transition method that allows an entity to recognize a cumulative-effect adjustment to the opening balance of retained earnings at the date of adoption, apply the new disclosure requirements beginning in the period of adoption, and continue to present comparative period information as required under previous guidance. In addition, Cleco elected the transition practical expedient that permits an entity to not reassess prior conclusions about lease identification, lease classification, and initial direct costs under the new standard, as well as the practical expedient that permits entities to not assess existing land easements under the new standard. Adoption of this standard resulted in the recognition of ROU assets and lease liabilities for Cleco and Cleco Power’s operating leases of $16.1 million and $15.9 million , respectively. There was no impact to retained earnings as a result of adopting this standard. Adoption of this standard did not materially impact the Registrants’ results of operations or liquidity, and their accounting for finance leases is substantially unchanged. For more information on Cleco’s lease obligations, see Note 4 — “Leases.” In June 2016, FASB amended the guidance for the measurement of credit losses on receivables and certain other assets. The guidance requires use of a current expected loss model, which may result in earlier recognition of credit losses. The adoption of this guidance is effective for fiscal years beginning after December 15, 2019, including interim periods within those years. Management is evaluating the impact that the adoption of this guidance will have on the results of operations, financial condition, or cash flows of the Registrants. |
Revenue from Contracts with Customers | Retail Utility Revenue Cleco’s retail revenue from contracts with customers is generated primarily from Cleco Power’s regulated revenue from 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. 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. Also included in Cleco’s retail revenue is electric customer credits, which primarily represents the accrued estimated refunds to Cleco Power’s retail customers for the tax related benefits of the TCJA. Wholesale Revenue Cleco’s 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 is recognized each month as Cleco’s generating units stand ready to deliver electricity to the customer. Cleco recognizes wholesale revenue, inclusive of both performance obligations, under the invoice practical expedient for the amount Cleco has the right to invoice. Cleco charges its wholesale customers market based rates that are subject to FERC’s triennial market power analysis. Transmission Revenue Cleco earns transmission revenues pursuant to MISO’s FERC filed tariff. The performance obligation of transmission service is satisfied as service is provided. Revenue is recognized upon delivery of the transmission service. Cleco Power’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. Cleco Cajun charges transmission rates based on its cost to provide transmission services. Other Revenue Other revenue from contracts with customers, which is not a significant source of Cleco’s revenue, includes Cleco Power’s Teche Unit 3 SSR revenue and miscellaneous fees. The performance obligation under these contracts is satisfied and revenue is recognized as control of the products is delivered or services are rendered. |
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 | Certain Cleco officers are covered by SERP. 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 income (expense), net within Cleco and Cleco Power’s Condensed Consolidated Statements of Income. 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 Plan is voluntary, and active Cleco employees are eligible to participate. Employees hired before August 1, 2007, are covered by a non-contributory, defined benefit pension plan. On September 12, 2019, Cleco made a $12.3 million discretionary contribution to the pension plan. Cleco does not expect to make any further contributions to the pension plan in 2019. Cleco Power is the plan sponsor and Support Group is the plan administrator. The plan was amended on February 4, 2019, to include certain former NRG Energy employees who are now Cleco Cajun employees. The Cleco Cajun employees are eligible to participate as a cash balance participant and are credited with all service that was credited to them under the NRG Pension Plan as of February 4, 2019. Benefits under the plan amendment reflect an employee’s years of service, age at retirement, and accrued benefit at retirement. 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. The non-service components of net periodic pension and Other Benefits cost are included in Other income (expense), net within Cleco and Cleco Power’s Condensed Consolidated Statements of Income. |
Income Taxes | Cleco classifies all interest related to uncertain tax positions as a component of interest payable and interest expense. Cleco classifies income tax penalties as a component of other expense. |
Segment Reporting | The financial results in the following tables are presented on an accrual basis. The historical segment information was not recast because the Cleco Cajun segment only consists of the newly acquired business. There were no other changes to Cleco’s existing reportable segments. 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. |
Goodwill | Cleco conducted its 2019 annual impairment test using an August 1, 2019, measurement date. The fair value of the Cleco Power reporting segment 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 related to capital expenditures, long-term rate of growth, 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. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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 the following: Cleco (THOUSANDS) AT SEPT. 30, 2019 AT DEC. 31, 2018 Current Cleco Katrina/Rita’s storm recovery bonds $ 3,612 $ 9,505 Cleco Power’s charitable contributions 1,200 1,200 Cleco Power’s rate credit escrow 544 536 Total current 5,356 11,241 Non-current Diversified Lands’ mitigation escrow 22 21 Cleco Cajun’s defense fund 717 — Cleco Cajun’s margin deposits 100 — Cleco Power’s future storm restoration costs 12,089 15,391 Cleco Power’s charitable contributions 2,185 2,753 Cleco Power’s rate credit escrow — 505 Total non-current 15,113 18,670 Total restricted cash and cash equivalents $ 20,469 $ 29,911 |
CLECO POWER | |
Restricted Cash and Cash Equivalents Items [Line Items] | |
Restricted Cash and Cash Equivalents | Cleco Power (THOUSANDS) AT SEPT. 30, 2019 AT DEC. 31, 2018 Current Cleco Katrina/Rita’s storm recovery bonds $ 3,612 $ 9,505 Charitable contributions 1,200 1,200 Rate credit escrow 544 536 Total current 5,356 11,241 Non-current Future storm restoration costs 12,089 15,391 Charitable contributions 2,185 2,753 Rate credit escrow — 505 Total non-current 14,274 18,649 Total restricted cash and cash equivalents $ 19,630 $ 29,890 |
Business Combination (Tables)
Business Combination (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Business Combinations [Abstract] | |
Assets Acquired and Liabilities Assumed and Measurement Period Adjustments | The measurement period adjustments were based upon information obtained about facts and circumstances that existed at the acquisition date that, if known, would have affected the measurement of the amounts recognized at that date. Measurement Period Adjustments (THOUSANDS) AT JUNE 30, 2019 Current assets Customer and other accounts receivable $ 1,408 Other current assets $ 56 Non-current assets Property, plant, and equipment, net $ 13,297 Prepayments $ (56 ) Intangible assets $ (3,600 ) Other deferred charges $ 1 Current liabilities Accounts payable $ 3,022 Energy risk management liabilities $ (1 ) Other current liabilities $ 327 Non-current liabilities Accumulated deferred federal and state income taxes, net $ 421 Deferred lease revenue $ (3,600 ) Intangible liabilities $ 6,400 Asset retirement obligations $ 4,534 Operating lease liabilities $ 3 Cleco Cajun accounted for the Cleco Cajun Transaction as a business combination, and accordingly, the assets acquired and liabilities assumed were recorded at their estimated fair values as of the date of the acquisition. Cleco made certain measurement period adjustments at June 30, 2019. The following chart presents Cleco’s current preliminary purchase price allocation: Preliminary Purchase Price Allocation (THOUSANDS) AT FEB. 4, 2019 Current assets Cash and cash equivalents $ 146,494 Customer and other accounts receivable 49,809 Fuel inventory 22,060 Materials and supplies 25,659 Energy risk management assets 4,193 Other current assets 10,056 Non-current assets Property, plant, and equipment, net 741,203 Prepayments 36,166 Restricted cash and cash equivalents 707 Intangible assets 98,900 Other deferred charges 133 Total assets acquired 1,135,380 Current liabilities Accounts payable 38,478 Taxes payable 723 Energy risk management liabilities 241 Other current liabilities 14,570 Non-current liabilities Accumulated deferred federal and state income taxes, net 7,165 Deferred lease revenue 58,300 Intangible liabilities 38,300 Asset retirement obligations 15,323 Operating lease liabilities 110 Total liabilities assumed 173,210 Total purchase price consideration $ 962,170 |
Unaudited Pro Forma Information | The unaudited pro forma financial information presented in the following table is not necessarily indicative of the consolidated results of operations that would have been achieved had the transaction taken place on the dates indicated, or the future consolidated results of operations of the combined companies. Unaudited Pro Forma Financial Information FOR THE THREE MONTHS ENDED SEPT. 30, FOR THE NINE MONTHS ENDED SEPT. 30, (THOUSANDS) 2019 2018 2019 2018 Operating revenue, net $ 487,971 $ 469,419 $ 1,250,787 $ 1,263,182 Net income $ 56,004 $ 71,076 $ 122,771 $ 140,255 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Lessor, Lease, Description [Line Items] | |
Future Minimum Lease Payments Due Under Long-Term Operating Leases | The following is a schedule by year of future minimum lease payments due under Cleco and Cleco Power’s long-term operating leases together with the present value of the net minimum lease payments as of September 30, 2019 : (THOUSANDS) CLECO POWER CLECO Three months ending Dec. 31, 2019 $ 1,014 $ 1,065 Years ending Dec. 31, 2020 3,960 3,994 2021 3,410 3,443 2022 3,256 3,287 2023 3,220 3,249 Thereafter 21,833 21,853 Total minimum lease payments 36,693 36,891 Less: amount representing interest 7,395 7,358 Present value of net minimum operating lease payments $ 29,298 $ 29,533 Current liabilities $ 3,616 $ 3,705 Non-current liabilities $ 25,682 $ 25,828 |
Summary of Expected Operating Lease Payments as of Prior Year | The following table is a summary of expected operating lease payments for Cleco and Cleco Power at December 31, 2018: (THOUSANDS) CLECO HOLDINGS CLECO POWER CLECO Year ending Dec. 31, 2019 $ 120 $ 4,030 $ 4,150 2020 — 3,890 3,890 2021 — 2,789 2,789 2022 — 1,239 1,239 2023 — 1,214 1,214 Thereafter — 7,235 7,235 Total operating lease payments $ 120 $ 20,397 $ 20,517 |
Analysis of Leased Property Under Finance Leases, Supplemental Balance Sheet Information, and Property Associated with Sale Leaseback | The following is an analysis of the leased property under the finance lease: (THOUSANDS) AT SEPT. 30, 2019 AT DEC. 31, 2018 Barges $ 16,800 $ 16,800 Accumulated amortization (1,680 ) (840 ) Net finance lease $ 15,120 $ 15,960 Property associated with the Cottonwood Sale Leaseback was as follows: (THOUSANDS) AT SEPT. 30, 2019 Property, plant, and equipment $ 540,409 Accumulated depreciation (16,140 ) Net property, plant, and equipment $ 524,269 The following tables present additional information related to Cleco and Cleco Power’s operating and finance leases as of and for the three and nine months ended September 30, 2019 : AT SEPT. 30, 2019 (THOUSANDS) BALANCE SHEET LINE ITEM CLECO POWER CLECO Supplemental balance sheet information ROU assets Operating Operating lease right of use assets $ 29,375 $ 29,719 Finance Property, plant, and equipment 15,120 15,120 Total ROU assets $ 44,495 $ 44,839 Current lease liabilities Operating Other current liabilities $ 3,616 $ 3,705 Finance Long-term debt and finance leases due within one year 602 602 Non-current lease liabilities Operating Operating lease liabilities 25,682 25,828 Finance Long-term debt and finance leases, net 15,404 15,404 Total lease liabilities $ 45,304 $ 45,539 |
Future Minimum Lease Payments Due Under Finance Lease | The following is a schedule by year of future minimum lease payments due under the finance lease together with the present value of the net minimum lease payments as of September 30, 2019 : (THOUSANDS) Three months ending Dec. 31, 2019 $ 551 Years ending Dec. 31, 2020 2,203 2021 2,203 2022 2,203 2023 2,203 2024 2,203 Thereafter 17,675 Total minimum lease payments 29,241 Less: amount representing interest 13,235 Present value of net minimum finance lease payments $ 16,006 Current liabilities $ 602 Non-current liabilities $ 15,404 |
Future Minimum Lease Payments Due Under Finance Lease as of Prior Year | The following is a schedule by year of future minimum lease payments due under the finance lease together with the present value of the net minimum lease payments as of December 31, 2018: (THOUSANDS) Years ending Dec. 31, 2019 $ 2,611 2020 2,611 2021 2,611 2022 2,611 2023 2,611 Thereafter 23,655 Total minimum lease payments 36,710 Less: executory costs 5,817 Net minimum lease payments 30,893 Less: amount representing interest 14,475 Present value of net minimum lease payments $ 16,418 Current liabilities $ 557 Non-current liabilities $ 15,861 |
Total Lease Costs, Supplemental Cash Flow Information, and Other Supplemental Information | Cleco (THOUSANDS) FOR THE THREE FOR THE NINE Supplemental cash flow information Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 1,108 $ 3,387 Operating cash flows from finance leases $ 410 $ 1,240 Financing cash flows from finance leases $ 141 $ 412 ROU assets obtained in exchange for new lease liabilities $ 15,749 $ 15,881 The following tables reflect total lease costs for Cleco and Cleco Power for the three and nine months ended September 30, 2019 : Cleco (THOUSANDS) FOR THE THREE MONTHS ENDED SEPT. 30, 2019 FOR THE NINE MONTHS ENDED SEPT. 30, 2019 Finance lease cost Amortization of ROU assets $ 280 $ 840 Interest on lease liabilities 410 1,240 Operating lease cost 1,158 3,411 Variable lease cost 116 423 Total lease cost $ 1,964 $ 5,914 AT SEPT. 30, 2019 (THOUSANDS) CLECO POWER CLECO Other supplemental information Operating leases Weighted-average remaining lease term 11.0 years 10.9 years Weighted-average discount rate 4.31 % 4.31 % Finance leases Weighted-average remaining lease term 13.5 years 13.5 years Weighted-average discount rate 10.18 % 10.18 % The following tables present additional information related to Cleco and Cleco Power’s operating and finance leases as of and for the three and nine months ended September 30, 2019 : AT SEPT. 30, 2019 (THOUSANDS) BALANCE SHEET LINE ITEM CLECO POWER CLECO Supplemental balance sheet information ROU assets Operating Operating lease right of use assets $ 29,375 $ 29,719 Finance Property, plant, and equipment 15,120 15,120 Total ROU assets $ 44,495 $ 44,839 Current lease liabilities Operating Other current liabilities $ 3,616 $ 3,705 Finance Long-term debt and finance leases due within one year 602 602 Non-current lease liabilities Operating Operating lease liabilities 25,682 25,828 Finance Long-term debt and finance leases, net 15,404 15,404 Total lease liabilities $ 45,304 $ 45,539 |
Lease Income Under Cottonwood Sale Leaseback | Cleco Cajun’s lease income under the Cottonwood Sale Leaseback for the three and nine months ended September 30, 2019 , was as follows: (THOUSANDS) FOR THE THREE MONTHS ENDED SEPT. 30, 2019 FOR THE NINE MONTHS ENDED SEPT. 30, 2019 Fixed payments $ 10,000 $ 26,667 Variable payments 6,010 14,248 Amortization of deferred lease liability (1) 2,301 6,137 Total lease income $ 18,311 $ 47,052 (1) The deferred lease revenue resulting from the preliminary fair value of the lease between Cottonwood Energy and a special-purpose entity that is a subsidiary of NRG Energy. |
Remaining Minimum Lease Payments To Be Received | The remaining minimum lease payments to be received under the Cottonwood Sale Leaseback are as follows: (THOUSANDS) Three months ending Dec. 31, 2019 $ 10,000 Years ending Dec. 31, 2020 40,000 2021 40,000 2022 40,000 2023 40,000 Thereafter 56,666 Total payments $ 226,666 |
Cleco Power | |
Lessor, Lease, Description [Line Items] | |
Total Lease Costs, Supplemental Cash Flow Information, and Other Supplemental Information | Cleco Power (THOUSANDS) FOR THE THREE MONTHS ENDED SEPT. 30, 2019 FOR THE NINE Finance lease cost Amortization of ROU assets $ 280 $ 840 Interest on lease liabilities 410 1,240 Operating lease cost 1,101 3,243 Variable lease cost 116 423 Total lease cost $ 1,907 $ 5,746 Cleco Power (THOUSANDS) FOR THE THREE FOR THE NINE Supplemental cash flow information Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 1,034 $ 3,189 Operating cash flows from finance leases $ 410 $ 1,240 Financing cash flows from finance leases $ 141 $ 412 ROU assets obtained in exchange for new lease liabilities $ 15,749 $ 15,749 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | Operating revenue, net for the three and nine months ended September 30, 2019 , and 2018, was as follows: FOR THE THREE MONTHS ENDED SEPT. 30, 2019 (THOUSANDS) CLECO POWER CLECO CAJUN OTHER ELIMINATIONS TOTAL Revenue from contracts with customers Retail revenue Residential (1) $ 142,265 $ — $ — $ — $ 142,265 Commercial (1) 84,816 — — — 84,816 Industrial (1) 36,830 — — — 36,830 Other retail (1) 4,234 — — — 4,234 Surcharge 170 — — — 170 Electric customer credits (13,711 ) — — — (13,711 ) Total retail revenue 254,604 — — — 254,604 Wholesale, net 69,558 (1) 114,426 (2,420 ) (2) — 181,564 Transmission 14,034 15,435 — (2,442 ) 27,027 Other 4,452 (3) — — — 4,452 Affiliate (4) 334 31 28,252 (28,617 ) — Total revenue from contracts with customers 342,982 129,892 25,832 (31,059 ) 467,647 Revenue unrelated to contracts with customers Other 1,995 (5) 18,329 (6) — — 20,324 Total revenue unrelated to contracts with customers 1,995 18,329 — — 20,324 Operating revenue, net $ 344,977 $ 148,221 $ 25,832 $ (31,059 ) $ 487,971 (1) Includes fuel recovery revenue. (2) Amortization of intangible assets related to Cleco Power’s wholesale power supply agreements. (3) Other miscellaneous fee revenue. (4) Includes interdepartmental rents and support services. This revenue is eliminated upon consolidation. (5) Includes realized gains associated with FTRs. (6) Includes $16.0 million in lease revenue related to the Cottonwood Sale Leaseback and $2.3 million of deferred lease revenue amortization. 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 Electric customer credits (2,992 ) — — (2,992 ) Total retail revenue 269,624 — — 269,624 Wholesale, net (1) 63,624 (2,420 ) (2) — 61,204 Transmission 14,718 — — 14,718 Other (3) 5,469 — — 5,469 Affiliate 223 22,765 (22,988 ) — Total revenue from contracts with customers 353,658 20,345 (22,988 ) 351,015 Revenue unrelated to contracts with customers Other (4) 7,241 — — 7,241 Total revenue unrelated to contracts with customers 7,241 — — 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 Cleco Power’s wholesale power supply agreements. (3) Other revenue from contracts with customers includes $4.9 million of other miscellaneous fee revenue and $0.6 million of Teche Unit 3 SSR revenue, net of $0.2 million of reserves for capital expenditures. (4) Includes realized gains associated with FTRs. FOR THE NINE MONTHS ENDED SEPT. 30, 2019 (THOUSANDS) CLECO POWER CLECO CAJUN OTHER ELIMINATIONS TOTAL Revenue from contracts with customers Retail revenue Residential (1) $ 327,340 $ — $ — $ — $ 327,340 Commercial (1) 218,209 — — — 218,209 Industrial (1) 109,545 — — — 109,545 Other retail (1) 11,391 — — — 11,391 Surcharge 7,692 — — — 7,692 Electric customer credits (30,565 ) — — — (30,565 ) Total retail revenue 643,612 — — — 643,612 Wholesale, net 179,633 (1) 273,256 (7,260 ) (2) — 445,629 Transmission 38,679 36,625 — (5,395 ) 69,909 Other 14,640 (3) — 2 — 14,642 Affiliate (4) 971 31 77,800 (78,802 ) — Total revenue from contracts with customers 877,535 309,912 70,542 (84,197 ) 1,173,792 Revenue unrelated to contracts with customers Other 9,158 (5) 47,081 (6) — (1 ) 56,238 Total revenue unrelated to contracts with customers 9,158 47,081 — (1 ) 56,238 Operating revenue, net $ 886,693 $ 356,993 $ 70,542 $ (84,198 ) $ 1,230,030 (1) Includes fuel recovery revenue. (2) Amortization of intangible assets related to Cleco Power’s wholesale power supply agreements. (3) Includes $11.4 million of other miscellaneous fee revenue and $3.2 million of Teche Unit 3 SSR revenue at Cleco Power. (4) Includes interdepartmental rents and support services. This revenue is eliminated upon consolidation. (5) Includes realized gains associated with FTRs of $11.7 million and the reversal of the Lost Contribution to Fixed Cost revenue of $2.6 million . (6) Includes $40.9 million in lease revenue related to the Cottonwood Sale Leaseback and $6.1 million of deferred lease revenue amortization. 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 Electric customer credits (24,276 ) — — (24,276 ) Total retail revenue 683,185 — — 683,185 Wholesale, net (1) 165,255 (7,260 ) (2) — 157,995 Transmission 41,166 — — 41,166 Other (3) 19,901 1 — 19,902 Affiliate 651 55,707 (56,358 ) — Total revenue from contracts with customers 910,158 48,448 (56,358 ) 902,248 Revenue unrelated to contracts with customers Other (4) 32,029 — — 32,029 Total revenue unrelated to contracts with customers 32,029 — — 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 Cleco Power’s wholesale power supply agreements. (3) Other revenue from contracts with customers includes $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 realized gains associated with FTRs. |
Regulatory Assets and Liabili_2
Regulatory Assets and Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Regulatory Assets [Line Items] | |
Schedule of Regulatory Assets | The following table summarizes Cleco’s net regulatory assets and liabilities: (THOUSANDS) AT SEPT. 30, 2019 AT DEC. 31, 2018 Total Cleco Power regulatory assets, net $ 165,947 $ 134,755 Cleco 2016 Merger adjustments (1) Fair value of long-term debt 130,847 138,701 Postretirement costs 17,896 19,387 Financing costs 8,021 8,279 Debt issuance costs 5,826 6,252 Total Cleco regulatory assets, net $ 328,537 $ 307,374 (1) Cleco regulatory assets include acquisition accounting adjustments as a result of the 2016 Merger. |
CLECO POWER | |
Regulatory Assets [Line Items] | |
Schedule of Regulatory Assets | The following table summarizes Cleco Power’s regulatory assets and liabilities: (THOUSANDS) AT SEPT. 30, 2019 AT DEC. 31, 2018 Regulatory assets (liabilities) Deferred taxes, net $ (144,124 ) $ (155,537 ) Mining costs — 1,274 Interest costs 4,021 4,208 AROs 3,523 3,099 Postretirement costs 134,412 140,245 Tree trimming costs 10,607 9,069 Training costs 6,279 6,396 Surcredits, net (1) 289 289 AMI deferred revenue requirement 3,272 3,681 Emergency declarations 1,750 2,980 Production operations and maintenance expenses 9,199 12,245 AFUDC equity gross-up (1) 73,541 71,952 Acadia Unit 1 acquisition costs 2,151 2,230 Financing costs 7,646 7,923 Coughlin transaction costs 915 938 Corporate franchise tax, net 864 1,416 Non-service cost of postretirement benefits 6,650 4,629 Energy efficiency (3,056 ) 2,585 Accumulated deferred fuel 56,056 20,112 Other, net (8,048 ) (4,979 ) Total regulatory assets, net $ 165,947 $ 134,755 (1) Represents regulatory assets for past expenditures that were not earning a return on investment at September 30, 2019, and December 31, 2018, respectively. All other assets are earning a return on investment. |
Schedule of Regulatory Liabilities | The following table summarizes Cleco Power’s regulatory assets and liabilities: (THOUSANDS) AT SEPT. 30, 2019 AT DEC. 31, 2018 Regulatory assets (liabilities) Deferred taxes, net $ (144,124 ) $ (155,537 ) Mining costs — 1,274 Interest costs 4,021 4,208 AROs 3,523 3,099 Postretirement costs 134,412 140,245 Tree trimming costs 10,607 9,069 Training costs 6,279 6,396 Surcredits, net (1) 289 289 AMI deferred revenue requirement 3,272 3,681 Emergency declarations 1,750 2,980 Production operations and maintenance expenses 9,199 12,245 AFUDC equity gross-up (1) 73,541 71,952 Acadia Unit 1 acquisition costs 2,151 2,230 Financing costs 7,646 7,923 Coughlin transaction costs 915 938 Corporate franchise tax, net 864 1,416 Non-service cost of postretirement benefits 6,650 4,629 Energy efficiency (3,056 ) 2,585 Accumulated deferred fuel 56,056 20,112 Other, net (8,048 ) (4,979 ) Total regulatory assets, net $ 165,947 $ 134,755 (1) Represents regulatory assets for past expenditures that were not earning a return on investment at September 30, 2019, and December 31, 2018, respectively. All other assets are earning a return on investment. |
Fair Value Accounting (Tables)
Fair Value Accounting (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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, 2019 AT DEC. 31, 2018 (THOUSANDS) CARRYING VALUE* FAIR VALUE CARRYING VALUE* FAIR VALUE Long-term debt $ 3,191,452 $ 3,407,190 $ 2,889,631 $ 2,859,924 * The carrying value of long-term debt does not include deferred issuance costs of $14.2 million at September 30, 2019 , and $10.3 million at December 31, 2018 . |
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 FAIR VALUE MEASUREMENTS AT REPORTING DATE (THOUSANDS) AT SEPT. 30, 2019 QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) AT DEC. 31, 2018 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 $ 111,885 $ — $ 111,885 $ — $ 133,722 $ — $ 133,722 $ — FTRs 9,926 — — 9,926 23,355 — — 23,355 Other commodity derivatives 745 — 745 — — — — — Total assets $ 122,556 $ — $ 112,630 $ 9,926 $ 157,077 $ — $ 133,722 $ 23,355 Liability description FTRs $ 1,257 $ — $ — $ 1,257 $ 468 $ — $ — $ 468 Other commodity derivatives 41 — 41 — — — — — Total liabilities $ 1,298 $ — $ 41 $ 1,257 $ 468 $ — $ — $ 468 |
Net Changes in Net Fair Value of FTR Assets and Liabilities Classified as Level 3 | The following tables summarize 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: Cleco FOR THE THREE MONTHS ENDED SEPT. 30, FOR THE NINE MONTHS ENDED SEPT. 30, (THOUSANDS) 2019 2018 2019 2018 Beginning balance $ 14,665 $ 25,133 $ 22,887 $ 7,044 Unrealized (losses) gains* (1,234 ) 4,520 (4,488 ) 6,153 Purchases 557 1,251 26,401 26,734 Settlements (5,319 ) (8,644 ) (36,131 ) (17,671 ) Ending balance $ 8,669 $ 22,260 $ 8,669 $ 22,260 * Cleco Power’s unrealized (losses) gains are reported through Accumulated deferred fuel on Cleco’s Condensed Consolidated Balance Sheet. Cleco Cajun’s unrealized (losses) gains are reported through Purchased power on Cleco’s Condensed Consolidated Income Statement. |
Significant Unobservable Inputs Used in Developing Fair Value of Level 3 Positions | The following tables quantify the significant unobservable inputs used in developing the fair value of Level 3 positions as of September 30, 2019 , and December 31, 2018 : Cleco FAIR VALUE VALUATION TECHNIQUE SIGNIFICANT UNOBSERVABLE INPUTS FORWARD PRICE RANGE (THOUSANDS, EXCEPT FORWARD PRICE RANGE) ASSETS LIABILITIES LOW HIGH FTRs at Sept. 30, 2019 $ 9,926 $ 1,257 RTO auction pricing FTR price - per MWh $ (2.29 ) $ 3.14 FTRs at Dec. 31, 2018 $ 23,355 $ 468 RTO auction pricing FTR price - per MWh $ (4.40 ) $ 15.10 |
Fair Value of Derivative Instruments as Recorded in Condensed Consolidated Balance Sheets | The following tables present 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, 2019 , and December 31, 2018 : Cleco DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS (THOUSANDS) BALANCE SHEET LINE ITEM AT SEPT. 30, 2019 AT DEC. 31, 2018 Commodity-related contracts FTRs Current Energy risk management assets $ 9,926 $ 23,355 Current Energy risk management liabilities 1,257 468 Other commodity derivatives Current Energy risk management assets 745 — Current Energy risk management liabilities 41 — Commodity-related contracts, net $ 9,373 $ 22,887 |
Amount of Gain (Loss) Recognized in Income on Derivatives | The following tables present the effect of derivatives not designated as hedging instruments on Cleco and Cleco Power’s Condensed Consolidated Statements of Income for the nine months ended September 30, 2019 , and 2018 : Cleco AMOUNT OF GAIN(LOSS) RECOGNIZED IN INCOME ON DERIVATIVES FOR THE THREE MONTHS ENDED SEPT. 30, FOR THE NINE MONTHS ENDED SEPT. 30, (THOUSANDS) INCOME STATEMENT LINE ITEM 2019 2018 2019 2018 Commodity-related contracts FTRs (1) Electric operations $ 1,997 $ 7,241 $ 12,396 $ 32,407 FTRs (1) Purchased power (2,648 ) (1,587 ) (12,985 ) (3,288 ) Other commodity derivatives Fuel used for electric generation 3,474 — 704 — Total $ 2,823 $ 5,654 $ 115 $ 29,119 (1) For the three and nine months ended September 30, 2019 , unrealized losses associated with FTRs for Cleco Power of $1.7 million and $3.6 million , respectively, were reported through Accumulated deferred fuel on the balance sheet. For the three and nine months ended September 30, 2018 , unrealized gains associated with FTRs for Cleco Power of $4.5 million and $6.2 million , respectively, were reported through Accumulated deferred fuel on the balance sheet. |
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, 2019 AT DEC. 31, 2018 (THOUSANDS) CARRYING VALUE* FAIR VALUE CARRYING VALUE* FAIR VALUE Long-term debt $ 1,380,605 $ 1,625,480 $ 1,400,930 $ 1,517,152 * The carrying value of long-term debt does not include deferred issuance costs of $7.6 million at September 30, 2019 , and $8.3 million at December 31, 2018 . |
Fair Value of Financial Assets and Liabilities Measured On A Recurring Basis | Cleco Power FAIR VALUE MEASUREMENTS AT REPORTING DATE (THOUSANDS) AT SEPT. 30, 2019 QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) AT DEC. 31, 2018 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 $ 76,947 $ — $ 76,947 $ — $ 55,900 $ — $ 55,900 $ — FTRs 8,601 — — 8,601 23,355 — — 23,355 Total assets $ 85,548 $ — $ 76,947 $ 8,601 $ 79,255 $ — $ 55,900 $ 23,355 Liability description FTRs $ 577 $ — $ — $ 577 $ 468 $ — $ — $ 468 Total liabilities $ 577 $ — $ — $ 577 $ 468 $ — $ — $ 468 |
Net Changes in Net Fair Value of FTR Assets and Liabilities Classified as Level 3 | Cleco Power FOR THE THREE MONTHS ENDED SEPT. 30, FOR THE NINE MONTHS ENDED SEPT. 30, (THOUSANDS) 2019 2018 2019 2018 Beginning balance $ 13,910 $ 25,133 $ 22,887 $ 7,044 Unrealized (losses) gains* (1,700 ) 4,520 (3,644 ) 6,153 Purchases 1,133 1,251 20,961 26,734 Settlements (5,319 ) (8,644 ) (32,180 ) (17,671 ) Ending balance $ 8,024 $ 22,260 $ 8,024 $ 22,260 * Unrealized (losses) gains are reported through Accumulated deferred fuel on Cleco Power’s Condensed Consolidated Balance Sheet. |
Significant Unobservable Inputs Used in Developing Fair Value of Level 3 Positions | Cleco Power FAIR VALUE VALUATION TECHNIQUE SIGNIFICANT UNOBSERVABLE INPUTS FORWARD PRICE RANGE (THOUSANDS, EXCEPT FORWARD PRICE RANGE) ASSETS LIABILITIES LOW HIGH FTRs at Sept. 30, 2019 $ 8,601 $ 577 RTO auction pricing FTR price - per MWh $ (1.67 ) $ 2.79 FTRs at Dec. 31, 2018 $ 23,355 $ 468 RTO auction pricing FTR price - per MWh $ (4.40 ) $ 15.10 |
Fair Value of Derivative Instruments as Recorded in Condensed Consolidated Balance Sheets | Cleco Power DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS (THOUSANDS) BALANCE SHEET LINE ITEM AT SEPT. 30, 2019 AT DEC. 31, 2018 Commodity-related contracts FTRs Current Energy risk management assets $ 8,601 $ 23,355 Current Energy risk management liabilities 577 468 Commodity-related contracts, net $ 8,024 $ 22,887 |
Amount of Gain (Loss) Recognized in Income on Derivatives | Cleco Power AMOUNT OF GAIN(LOSS) RECOGNIZED IN INCOME ON DERIVATIVES FOR THE THREE MONTHS ENDED SEPT. 30, FOR THE NINE MONTHS ENDED SEPT. 30, (THOUSANDS) INCOME STATEMENT LINE ITEM 2019 2018 2019 2018 Commodity-related contracts FTRs (1) Electric operations $ 1,997 $ 7,241 $ 12,400 $ 32,407 FTRs (1) Purchased power (1,828 ) (1,587 ) (4,800 ) (3,288 ) Total $ 169 $ 5,654 $ 7,600 $ 29,119 (1) For the three and nine months ended September 30, 2019 , unrealized losses associated with FTRs of $1.7 million and $3.6 million , respectively, were reported through Accumulated deferred fuel on the balance sheet. 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 the balance sheet. |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Cumulative Minimum Principal Amounts Committed to be Repaid | The cumulative minimum principal amounts committed to be repaid for each year through 2024 are as follows: (THOUSANDS) For the year ending Dec. 31, 2019* $ 66,700 2020 $ 132,300 2021 $ 200,000 2022 $ 266,700 2023 $ 332,300 2024 $ 400,000 * At September 30, 2019, Cleco Holdings satisfied this commitment. |
Pension Plan and Employee Ben_2
Pension Plan and Employee Benefits (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Net Periodic Pension and Other Benefits Cost | The components of net periodic pension and Other Benefits cost for the three and nine months ended September 30, 2019 , and 2018 were as follows: PENSION BENEFITS OTHER BENEFITS FOR THE THREE MONTHS ENDED SEPT. 30, FOR THE THREE MONTHS ENDED SEPT. 30, (THOUSANDS) 2019 2018 2019 2018 Components of periodic benefit costs Service cost $ 2,104 $ 2,377 $ 328 $ 336 Interest cost 5,621 5,215 435 361 Expected return on plan assets (6,625 ) (5,943 ) — — Amortizations Prior period service credit (18 ) (18 ) — — Net loss 1,962 3,078 105 96 Net periodic benefit cost $ 3,044 $ 4,709 $ 868 $ 793 PENSION BENEFITS OTHER BENEFITS FOR THE NINE MONTHS ENDED SEPT. 30, FOR THE NINE MONTHS ENDED SEPT. 30, (THOUSANDS) 2019 2018 2019 2018 Components of periodic benefit costs Service cost $ 6,311 $ 7,130 $ 896 $ 1,011 Interest cost 16,864 15,869 1,235 1,076 Expected return on plan assets (19,876 ) (17,818 ) — — Amortizations Prior period service credit (54 ) (53 ) — — Net loss 5,887 8,998 25 105 Net periodic benefit cost $ 9,132 $ 14,126 $ 2,156 $ 2,192 The components of the net periodic benefit cost related to SERP for the three and nine months ended September 30, 2019 , and 2018 were as follows: FOR THE THREE MONTHS ENDED SEPT. 30, FOR THE NINE MONTHS (THOUSANDS) 2019 2018 2019 2018 Components of periodic benefit costs Service cost $ 82 $ 136 $ 247 $ 407 Interest cost 831 769 2,494 2,296 Amortizations Prior period service credit (34 ) (35 ) (104 ) (104 ) Net loss 381 723 1,143 2,180 Net periodic benefit cost $ 1,260 $ 1,593 $ 3,780 $ 4,779 |
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, 2019 , and December 31, 2018 , were as follows: Cleco (THOUSANDS) AT SEPT. 30, 2019 AT DEC. 31, 2018 Current $ 4,478 $ 4,478 Non-current $ 73,255 $ 73,936 The current and non-current portions of the other benefits liability for Cleco and Cleco Power at September 30, 2019 , and December 31, 2018 , were as follows: Cleco (THOUSANDS) AT SEPT. 30, 2019 AT DEC. 31, 2018 Current $ 4,130 $ 4,130 Non-current $ 35,090 $ 36,325 |
Expense of 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, 2019 , and 2018 was as follows: FOR THE THREE MONTHS ENDED SEPT. 30, FOR THE NINE MONTHS (THOUSANDS) 2019 2018 2019 2018 401(k) Plan expense $ 873 $ 254 $ 2,625 $ 865 Cleco’s 401(k) Plan expense for the three and nine months ended September 30, 2019 , and 2018 was as follows: FOR THE THREE MONTHS ENDED SEPT. 30, FOR THE NINE MONTHS ENDED SEPT 30, (THOUSANDS) 2019 2018 2019 2018 401(k) Plan expense $ 2,077 $ 1,424 $ 6,136 $ 4,716 |
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, 2019 AT DEC. 31, 2018 Current $ 3,584 $ 3,584 Non-current $ 30,769 $ 31,694 Cleco Power (THOUSANDS) AT SEPT. 30, 2019 AT DEC. 31, 2018 Current $ 930 $ 930 Non-current $ 11,759 $ 12,025 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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, 2019 , and 2018 : Cleco FOR THE THREE MONTHS ENDED SEPT. 30, FOR THE NINE MONTHS ENDED SEPT. 30, 2019 2018 2019 2018 Effective tax rate 20.2 % 19.4 % 21.1 % 20.7 % |
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, 2019 2018 2019 2018 Effective tax rate 19.4 % 22.1 % 21.2 % 23.1 % |
Disclosures about Segments (Tab
Disclosures about Segments (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | The financial results in the following tables are presented on an accrual basis. The historical segment information was not recast because the Cleco Cajun segment only consists of the newly acquired business. There were no other changes to Cleco’s existing reportable segments. 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, 2019 (THOUSANDS) CLECO POWER CLECO CAJUN OTHER ELIMINATIONS CONSOLIDATED Revenue Electric operations $ 339,869 $ 114,453 $ (2,420 ) $ — $ 451,902 Other operations 18,485 33,737 — (2,442 ) 49,780 Affiliate revenue 334 31 28,252 (28,617 ) — Electric customer credits (13,711 ) — — — (13,711 ) Operating revenue, net $ 344,977 $ 148,221 $ 25,832 $ (31,059 ) $ 487,971 Depreciation and amortization $ 44,903 $ 10,009 $ 2,092 $ — $ 57,004 Interest income $ 1,421 $ 220 $ 228 $ (179 ) $ 1,690 Interest charges $ 17,983 $ — $ 18,028 $ (179 ) $ 35,832 Federal and state income tax expense (benefit) $ 12,431 $ 7,612 $ (5,955 ) $ — $ 14,088 Net income (loss) $ 51,527 $ 22,806 $ (18,768 ) $ — $ 55,565 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 SEGMENT INFORMATION FOR THE NINE MONTHS ENDED SEPT. 30, 2019 (THOUSANDS) CLECO POWER CLECO CAJUN OTHER ELIMINATIONS CONSOLIDATED Revenue Electric operations $ 862,969 $ 274,610 $ (7,260 ) $ (1 ) $ 1,130,318 Other operations 53,318 83,619 2 (5,395 ) 131,544 Affiliate revenue 971 31 77,800 (78,802 ) — Electric customer credits (30,565 ) (1,267 ) — — (31,832 ) Operating revenue, net $ 886,693 $ 356,993 $ 70,542 $ (84,198 ) $ 1,230,030 Depreciation and amortization $ 126,610 $ 25,555 $ 6,231 $ (1 ) $ 158,395 Interest income $ 3,281 $ 842 $ 841 $ (508 ) $ 4,456 Interest charges $ 52,498 $ — $ 53,682 $ (509 ) $ 105,671 Federal and state income tax expense (benefit) $ 34,407 $ 15,169 $ (17,220 ) $ (1 ) $ 32,355 Net income (loss) $ 127,595 $ 46,788 $ (53,515 ) $ — $ 120,868 Additions to property, plant, and equipment $ 247,987 $ 3,654 $ 204 $ — $ 251,845 Equity investment in investees (1) $ 17,672 $ — $ — $ — $ 17,672 Goodwill (1) $ 1,490,797 $ — $ — $ — $ 1,490,797 Total segment assets (1) $ 5,988,444 $ 998,289 $ 550,323 $ (38,683 ) $ 7,498,373 (1) Balances as of September 30, 2019 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) $ 5,839,853 $ 633,756 $ (36,795 ) $ 6,436,814 (1) Balances as of December 31, 2018 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) - CLECO POWER | 9 Months Ended |
Sep. 30, 2019 | |
Variable Interest Entity [Line Items] | |
Equity Method Investments | The following table presents the components of Cleco Power’s equity investment in Oxbow: INCEPTION TO DATE (THOUSANDS) AT SEPT. 30, 2019 AT DEC. 31, 2018 Purchase price $ 12,873 $ 12,873 Cash contributions 6,399 6,399 Dividends (1,600 ) (1,100 ) Total equity investment in investee $ 17,672 $ 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) 2019 2018 2019 2018 Operating revenue $ 2,776 $ 2,214 $ 7,114 $ 4,134 Operating expenses 2,776 2,214 7,114 4,134 Income before taxes $ — $ — $ — $ — |
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, 2019 AT DEC. 31, 2018 Oxbow’s net assets/liabilities $ 35,345 $ 36,345 Cleco Power’s 50% equity $ 17,672 $ 18,172 Cleco Power’s maximum exposure to loss $ 17,672 $ 18,172 |
Affiliate Transactions (Tables)
Affiliate Transactions (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
CLECO POWER | |
Related Party Transaction [Line Items] | |
Summary of Balances Payable To or Due From Affiliates | The following table is a summary of those balances: AT SEPT. 30, 2019 AT DEC. 31, 2018 (THOUSANDS) ACCOUNTS RECEIVABLE ACCOUNTS PAYABLE ACCOUNTS RECEIVABLE ACCOUNTS PAYABLE Cleco Holdings $ 1 $ 94 $ 699 $ 88 Support Group 1,361 8,610 2,619 7,755 Cleco Cajun 712 18 — — Total $ 2,074 $ 8,722 $ 3,318 $ 7,843 |
Intangible Assets and Liabili_2
Intangible Assets and Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Finite-Lived Intangible Assets [Line Items] | |
Schedule of Amortization of Intangible Assets and Liabilities | The following tables present Cleco and Cleco Power’s amortization of intangible assets and liabilities: Cleco FOR THE THREE MONTHS ENDED SEPT. 30, FOR THE NINE MONTHS ENDED SEPT. 30, (THOUSANDS) 2019 2018 2019 2018 Intangible assets Cleco Katrina/Rita right to bill and collect storm recovery charges $ 5,660 $ 5,623 $ 15,702 $ 15,617 Trade name $ 64 $ 64 $ 191 $ 191 Power supply agreements $ 6,474 $ 2,420 $ 17,873 $ 7,260 Intangible liabilities LTSA $ 871 $ — $ 2,323 $ — Power supply agreements $ 882 $ — $ 2,352 $ — |
Schedule of Finite-Lived Intangible Assets and Liabilities | The following tables summarize the balances for intangible assets and liabilities subject to amortization for Cleco and Cleco Power: Cleco (THOUSANDS) AT SEPT. 30, 2019 AT DEC. 31, 2018 Intangible assets Cleco Katrina/Rita right to bill and collect storm recovery charges $ 70,594 $ 70,594 Trade name 5,100 5,100 Power supply agreements 184,004 85,104 Total intangible assets carrying amount 259,698 160,798 Intangible liabilities LTSA 24,100 — Power supply agreements 14,200 — Total intangible liability carrying amount 38,300 — Net intangible assets carrying amount 221,398 160,798 Accumulated amortization (105,583 ) (76,491 ) Net intangible assets subject to amortization $ 115,815 $ 84,307 |
CLECO POWER | |
Finite-Lived Intangible Assets [Line Items] | |
Schedule of Amortization of Intangible Assets and Liabilities | Cleco Power FOR THE THREE MONTHS ENDED SEPT. 30, FOR THE NINE MONTHS ENDED SEPT. 30, (THOUSANDS) 2019 2018 2019 2018 Cleco Katrina/Rita right to bill and collect storm recovery charges $ 5,660 $ 5,623 $ 15,702 $ 15,617 |
Schedule of Finite-Lived Intangible Assets and Liabilities | Cleco Power (THOUSANDS) AT SEPT. 30, 2019 AT DEC. 31, 2018 Cleco Katrina/Rita right to bill and collect storm recovery charges $ 177,537 $ 177,537 Accumulated amortization (172,146 ) (156,444 ) Net intangible assets subject to amortization $ 5,391 $ 21,093 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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, 2019 FOR THE NINE MONTHS ENDED SEPT. 30, 2019 (THOUSANDS) POSTRETIREMENT BENEFIT NET GAIN Balances, beginning of period $ 1,504 $ 1,786 Amounts reclassified from AOCI Amortization of postretirement benefit net gain (37 ) (319 ) Balances, Sept. 30, 2019 $ 1,467 $ 1,467 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 AOCI Amortization of postretirement benefit net loss 261 551 Balances, Sept. 30, 2018 $ (2,370 ) $ (2,370 ) |
CLECO POWER | |
Accumulated Other Comprehensive Loss [Line Items] | |
Schedule of Accumulated Other Comprehensive Income Loss | Cleco Power FOR THE THREE MONTHS ENDED SEPT. 30, 2019 FOR THE NINE MONTHS ENDED SEPT. 30, 2019 (THOUSANDS) POSTRETIREMENT NET LOSS TOTAL AOCI POSTRETIREMENT NET LOSS TOTAL AOCI Balances, beginning of period $ (6,775 ) $ (5,994 ) $ (12,769 ) $ (7,060 ) $ (6,122 ) $ (13,182 ) Amounts reclassified from AOCI Amortization of postretirement benefit net loss 230 — 230 515 — 515 Reclassification of net loss to interest charges — 63 63 — 191 191 Balances, Sept. 30, 2019 $ (6,545 ) $ (5,931 ) $ (12,476 ) $ (6,545 ) $ (5,931 ) $ (12,476 ) 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 Balances, Sept. 30, 2018 $ (7,565 ) $ (5,066 ) $ (12,631 ) $ (7,565 ) $ (5,066 ) $ (12,631 ) |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2019 | Feb. 04, 2019 | Dec. 31, 2018 | |
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Current | $ 5,356 | $ 11,241 | |
Non-current | 15,113 | 18,670 | |
Total restricted cash and cash equivalents | 20,469 | 29,911 | |
South Central Generating | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Restricted cash acquired | $ 707 | ||
Cleco Katrina/Rita’s storm recovery bonds | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Current | 3,612 | 9,505 | |
Charitable contributions | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Current | 1,200 | 1,200 | |
Non-current | 2,185 | 2,753 | |
Rate credit escrow | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Current | 544 | 536 | |
Non-current | 0 | 505 | |
Diversified Lands’ mitigation escrow | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Non-current | 22 | 21 | |
Cleco Cajun’s defense fund | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Non-current | 717 | 0 | |
Cleco Cajun’s margin deposits | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Non-current | 100 | 0 | |
Future storm restoration costs | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Non-current | 12,089 | 15,391 | |
Cleco Katrina/Rita scheduled storm recovery bond principal payments | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Payments for investment in restricted cash from pollution control bond | 20,600 | ||
Cleco Katrina/Rita related interest payments | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Payments for investment in restricted cash from pollution control bond | 1,500 | ||
Cleco Katrina/Rita administration fees | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Payments from distribution in restricted cash from pollution control bond | 16,200 | ||
CLECO POWER | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Current | 5,356 | 11,241 | |
Non-current | 14,274 | 18,649 | |
Total restricted cash and cash equivalents | 19,630 | 29,890 | |
CLECO POWER | Cleco Katrina/Rita’s storm recovery bonds | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Current | 3,612 | 9,505 | |
CLECO POWER | Charitable contributions | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Current | 1,200 | 1,200 | |
Non-current | 2,185 | 2,753 | |
CLECO POWER | Rate credit escrow | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Current | 544 | 536 | |
Non-current | 0 | 505 | |
CLECO POWER | Future storm restoration costs | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Non-current | $ 12,089 | $ 15,391 |
Business Combination - Narrativ
Business Combination - Narrative (Details) | Feb. 04, 2019USD ($)municipalitycooperativeinvestor_owned_utilityinstrumentMW | Jan. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) |
Business Acquisition [Line Items] | |||||||
Repayment of long-term debt | $ 390,571,000 | $ 19,193,000 | |||||
Draws on credit facilities | 108,000,000 | 0 | |||||
Electric operations | $ 451,902,000 | $ 341,062,000 | 1,130,318,000 | 897,486,000 | |||
Other operations revenue | (49,780,000) | (20,186,000) | (131,544,000) | (61,067,000) | |||
Depreciation and amortization | 57,004,000 | 43,763,000 | 158,395,000 | 128,076,000 | |||
South Central Generating | |||||||
Business Acquisition [Line Items] | |||||||
Repayment of long-term debt | $ 400,000,000 | $ 400,000,000 | |||||
Conditional commitment due within one year | 66,700,000 | 66,700,000 | |||||
Indemnification asset | 10,000,000 | ||||||
Contingent liability | 10,000,000 | ||||||
Consideration transferred | 962,200,000 | ||||||
Acquisition price | 1,000,000,000 | ||||||
Working capital and other adjustments | 37,800,000 | ||||||
Intangible assets | 98,900,000 | ||||||
Intangible liabilities | 38,300,000 | ||||||
Deferred lease revenue | 58,300,000 | ||||||
Pro forma net income | 56,004,000 | 71,076,000 | 122,771,000 | 140,255,000 | |||
South Central Generating | Fair Value Adjustments | |||||||
Business Acquisition [Line Items] | |||||||
Electric operations | $ 500,000 | ||||||
Other operations revenue | 100,000 | ||||||
Depreciation and amortization | $ 200,000 | ||||||
South Central Generating | Transaction Related Expenses | |||||||
Business Acquisition [Line Items] | |||||||
Pro forma net income | 600,000 | $ 4,500,000 | |||||
Power supply agreements | |||||||
Business Acquisition [Line Items] | |||||||
Intangible liabilities | 14,200,000 | ||||||
Intangible liabilities, remaining life | 6 years | ||||||
Power supply agreements | South Central Generating | |||||||
Business Acquisition [Line Items] | |||||||
Intangible liabilities | $ 14,200,000 | ||||||
LTSA | |||||||
Business Acquisition [Line Items] | |||||||
Intangible liabilities, remaining life | 7 years | ||||||
LTSA | South Central Generating | |||||||
Business Acquisition [Line Items] | |||||||
Intangible liabilities | $ 24,100,000 | ||||||
Intangible liabilities, remaining life | 7 years | ||||||
Cleco Cajun | |||||||
Business Acquisition [Line Items] | |||||||
Number of customers served | investor_owned_utility | 1 | ||||||
Cleco Cajun | Letters of Credit | |||||||
Business Acquisition [Line Items] | |||||||
Line of credit facility, maximum borrowing capacity | $ 1,100,000 | ||||||
Number of letters of credit | instrument | 3 | ||||||
Cleco Cajun | Jennings, Louisiana | |||||||
Business Acquisition [Line Items] | |||||||
Number of megawatts in station or facility (mw) | MW | 225 | ||||||
Cleco Cajun | Louisiana | |||||||
Business Acquisition [Line Items] | |||||||
Number of customers served | cooperative | 9 | ||||||
Cleco Cajun | Arkansas, Louisiana, and Texas | |||||||
Business Acquisition [Line Items] | |||||||
Number of customers served | municipality | 3 | ||||||
Cleco Cajun | Natural-gas-fired Facility | Jarreau, Louisiana | |||||||
Business Acquisition [Line Items] | |||||||
Number of megawatts in station or facility (mw) | MW | 220 | ||||||
Cleco Cajun | Natural-gas-fired Peaking Facility | Jarreau, Louisiana | |||||||
Business Acquisition [Line Items] | |||||||
Number of megawatts in station or facility (mw) | MW | 210 | ||||||
Cleco Cajun | Natural-gas-fired Peaking Facility | Jennings, Louisiana | |||||||
Business Acquisition [Line Items] | |||||||
Number of megawatts in station or facility (mw) | MW | 300 | ||||||
Cleco Cajun | Coal-fired Generating Facility | New Roads, Louisiana | |||||||
Business Acquisition [Line Items] | |||||||
Number of megawatts in station or facility (mw) | MW | 580 | ||||||
Cleco Cajun | Coal-fired Generating Station | New Roads, Louisiana | Jointly Owned Electricity Generation Plant | |||||||
Business Acquisition [Line Items] | |||||||
Number of megawatts in station or facility (mw) | MW | 588 | ||||||
Percentage ownership | 58.00% | ||||||
Cleco Cajun | Natural-gas-fired Generating Station | Sterlington, Louisiana | |||||||
Business Acquisition [Line Items] | |||||||
Number of megawatts in station or facility (mw) | MW | 176 | ||||||
Cleco Cajun | Natural-gas-fired Generating Station | New Roads, Louisiana | |||||||
Business Acquisition [Line Items] | |||||||
Number of megawatts in station or facility (mw) | MW | 540 | ||||||
Cleco Cajun | Natural-gas-fired Generating Station | Deweyville, Texas | |||||||
Business Acquisition [Line Items] | |||||||
Number of megawatts in station or facility (mw) | MW | 1,263 | ||||||
CLECO POWER | |||||||
Business Acquisition [Line Items] | |||||||
Repayment of long-term debt | $ 20,571,000 | 19,193,000 | |||||
Annual reduction to retail customer rates | $ 4,000,000 | $ 4,000,000 | |||||
Draws on credit facilities | 33,000,000 | 0 | |||||
Electric operations | 339,869,000 | 343,482,000 | 862,969,000 | 904,746,000 | |||
Other operations revenue | (18,485,000) | (20,186,000) | (53,318,000) | (61,066,000) | |||
Depreciation and amortization | $ 44,903,000 | $ 41,687,000 | $ 126,610,000 | $ 121,796,000 | |||
CLECO HOLDINGS | |||||||
Business Acquisition [Line Items] | |||||||
Debt instrument term | 3 years | ||||||
Debt to capital ratio | 0.65 | ||||||
CLECO HOLDINGS | Revolving Credit Facility | |||||||
Business Acquisition [Line Items] | |||||||
Increase in credit facility capacity | $ 75,000,000 | ||||||
Line of credit facility, maximum borrowing capacity | 175,000,000 | ||||||
Draws on credit facilities | 75,000,000 | ||||||
Repayments of credit facilities | 75,000,000 | ||||||
CLECO HOLDINGS | Letters of Credit | |||||||
Business Acquisition [Line Items] | |||||||
Line of credit facility, maximum borrowing capacity | 1,100,000 | ||||||
CLECO HOLDINGS | Bridge Loan | |||||||
Business Acquisition [Line Items] | |||||||
Debt amount | 300,000,000 | ||||||
CLECO HOLDINGS | Term loan | |||||||
Business Acquisition [Line Items] | |||||||
Debt amount | 100,000,000 | ||||||
CLECO HOLDINGS | South Central Generating | |||||||
Business Acquisition [Line Items] | |||||||
Acquisition price | 102,300,000 | ||||||
Cleco Group | South Central Generating | |||||||
Business Acquisition [Line Items] | |||||||
Equity contribution | $ 384,900,000 |
Business Combination - Assets A
Business Combination - Assets Acquired and Liabilities Assumed (Details) - South Central Generating $ in Thousands | Feb. 04, 2019USD ($) |
Current assets | |
Cash and cash equivalents | $ 146,494 |
Customer and other accounts receivable | 49,809 |
Energy risk management assets | 4,193 |
Other current assets | 10,056 |
Non-current assets | |
Property, plant, and equipment, net | 741,203 |
Prepayments | 36,166 |
Restricted cash and cash equivalents | 707 |
Intangible assets | 98,900 |
Other deferred charges | 133 |
Total assets acquired | 1,135,380 |
Current liabilities | |
Accounts payable | 38,478 |
Taxes payable | 723 |
Energy risk management liabilities | 241 |
Other current liabilities | 14,570 |
Non-current liabilities | |
Accumulated deferred federal and state income taxes, net | 7,165 |
Deferred lease revenue | 58,300 |
Intangible liabilities | 38,300 |
Asset retirement obligations | 15,323 |
Operating lease liabilities | 110 |
Total liabilities assumed | 173,210 |
Total purchase price consideration | 962,170 |
Fuel inventory | |
Current assets | |
Inventory | 22,060 |
Materials and supplies | |
Current assets | |
Inventory | $ 25,659 |
Business Combination - Measurem
Business Combination - Measurement Period Adjustments (Details) - South Central Generating $ in Thousands | 3 Months Ended |
Jun. 30, 2019USD ($) | |
Current assets | |
Customer and other accounts receivable | $ 1,408 |
Other current assets | 56 |
Non-current assets | |
Property, plant, and equipment, net | 13,297 |
Prepayments | (56) |
Intangible assets | (3,600) |
Other deferred charges | 1 |
Current liabilities | |
Accounts payable | 3,022 |
Energy risk management liabilities | (1) |
Other current liabilities | 327 |
Non-current liabilities | |
Accumulated deferred federal and state income taxes, net | 421 |
Deferred lease revenue | (3,600) |
Intangible liabilities | 6,400 |
Asset retirement obligations | 4,534 |
Operating lease liabilities | $ 3 |
Business Combination - Unaudite
Business Combination - Unaudited Pro Forma Information (Details) - South Central Generating - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Business Acquisition [Line Items] | ||||
Operating revenue, net | $ 487,971 | $ 469,419 | $ 1,250,787 | $ 1,263,182 |
Net income | $ 56,004 | $ 71,076 | $ 122,771 | $ 140,255 |
Recent Authoritative Guidance (
Recent Authoritative Guidance (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Right of use assets | $ 29,719 | $ 0 | |
Lease liabilities | 29,533 | ||
Accounting Standards Update 2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Right of use assets | $ 16,100 | ||
Lease liabilities | 16,100 | ||
CLECO POWER | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Right of use assets | 29,375 | $ 0 | |
Lease liabilities | $ 29,298 | ||
CLECO POWER | Accounting Standards Update 2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Right of use assets | 15,900 | ||
Lease liabilities | $ 15,900 |
Leases - Operating Leases (Deta
Leases - Operating Leases (Details) | Sep. 30, 2019 | Sep. 30, 2019municipality | Sep. 30, 2019non_municipal_public_body | Sep. 30, 2019railcar | Sep. 30, 2019towboat | Jul. 09, 2019 |
CLECO POWER | ||||||
Lessee, Lease, Description [Line Items] | ||||||
Operating lease, number of lessors | 2 | 1 | ||||
CLECO POWER | Utility Systems | Municipality One | ||||||
Lessee, Lease, Description [Line Items] | ||||||
Operating lease term | 10 years | |||||
Operating lease renewal term | 10 years | |||||
CLECO POWER | Utility Systems | Municipality Two | ||||||
Lessee, Lease, Description [Line Items] | ||||||
Operating lease term | 10 years | |||||
CLECO POWER | Utility Systems | Non-Municipal Public Body | ||||||
Lessee, Lease, Description [Line Items] | ||||||
Operating lease term | 27 years | |||||
CLECO POWER | Railcars | ||||||
Lessee, Lease, Description [Line Items] | ||||||
Operating lease, number of leased assets | 200 | |||||
CLECO POWER | Railcars | Operating Lease, Expiring March 31, 2021 | ||||||
Lessee, Lease, Description [Line Items] | ||||||
Operating lease, number of leased assets | 115 | |||||
CLECO POWER | Railcars | Operating Lease, Expiring March 31, 2020 | ||||||
Lessee, Lease, Description [Line Items] | ||||||
Operating lease, number of leased assets | 85 | |||||
CLECO POWER | Towboats | ||||||
Lessee, Lease, Description [Line Items] | ||||||
Operating lease term | 10 years | |||||
Operating lease renewal term | 5 years | |||||
Operating lease, number of leased assets | towboat | 3 | |||||
Cleco Cajun | Railcars | ||||||
Lessee, Lease, Description [Line Items] | ||||||
Operating lease term | 12 months | |||||
Operating lease renewal term | 1 month | |||||
Operating lease, number of leased assets | 135 |
Leases - Future Minimum Lease P
Leases - Future Minimum Lease Payments Due Under Long-Term Operating Leases (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Lessee, Lease, Description [Line Items] | ||
Three months ending Dec. 31, 2019 | $ 1,065 | |
Years ending Dec. 31, | ||
2020 | 3,994 | |
2021 | 3,443 | |
2022 | 3,287 | |
2023 | 3,249 | |
Thereafter | 21,853 | |
Total minimum lease payments | 36,891 | |
Less: amount representing interest | 7,358 | |
Present value of net minimum operating lease payments | 29,533 | |
Current liabilities | 3,705 | |
Non-current liabilities | 25,828 | $ 0 |
CLECO POWER | ||
Lessee, Lease, Description [Line Items] | ||
Three months ending Dec. 31, 2019 | 1,014 | |
Years ending Dec. 31, | ||
2020 | 3,960 | |
2021 | 3,410 | |
2022 | 3,256 | |
2023 | 3,220 | |
Thereafter | 21,833 | |
Total minimum lease payments | 36,693 | |
Less: amount representing interest | 7,395 | |
Present value of net minimum operating lease payments | 29,298 | |
Current liabilities | 3,616 | |
Non-current liabilities | $ 25,682 | $ 0 |
Leases - Summary of Expected Op
Leases - Summary of Expected Operating Lease Payments as of Prior Year (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Year ending Dec. 31, | |
2019 | $ 4,150 |
2020 | 3,890 |
2021 | 2,789 |
2022 | 1,239 |
2023 | 1,214 |
Thereafter | 7,235 |
Total operating lease payments | 20,517 |
CLECO HOLDINGS | |
Year ending Dec. 31, | |
2019 | 120 |
2020 | 0 |
2021 | 0 |
2022 | 0 |
2023 | 0 |
Thereafter | 0 |
Total operating lease payments | 120 |
CLECO POWER | |
Year ending Dec. 31, | |
2019 | 4,030 |
2020 | 3,890 |
2021 | 2,789 |
2022 | 1,239 |
2023 | 1,214 |
Thereafter | 7,235 |
Total operating lease payments | $ 20,397 |
Leases - Finance Lease (Details
Leases - Finance Lease (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2019USD ($)event | Sep. 30, 2019USD ($)event | Apr. 30, 2018barge | |
Lessee, Lease, Description [Line Items] | |||
Finance lease, number of cancellation events triggering early termination | event | 1 | 1 | |
Finance lease, number of cancellation events | event | 4 | 4 | |
CLECO POWER | |||
Lessee, Lease, Description [Line Items] | |||
Finance lease payments | $ | $ 0.6 | $ 1.7 | |
Revenue from subleases | $ | $ 0.4 | $ 1.3 | |
CLECO POWER | Barges | |||
Lessee, Lease, Description [Line Items] | |||
Finance lease, number of leased assets | barge | 42 |
Leases - Analysis of Leased Pro
Leases - Analysis of Leased Property Under Finance Leases (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Lessee, Lease, Description [Line Items] | ||
Net finance lease | $ 15,120 | |
CLECO POWER | ||
Lessee, Lease, Description [Line Items] | ||
Barges | 16,800 | $ 16,800 |
Accumulated amortization | (1,680) | (840) |
Net finance lease | $ 15,120 | $ 15,960 |
Leases - Future Minimum Lease_2
Leases - Future Minimum Lease Payments Due Under Finance Lease (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Years ending Dec. 31, | |
Current liabilities | $ 602 |
Non-current liabilities | 15,404 |
CLECO POWER | |
Lessee, Lease, Description [Line Items] | |
Three months ending Dec. 31, 2019 | 551 |
Years ending Dec. 31, | |
2020 | 2,203 |
2021 | 2,203 |
2022 | 2,203 |
2023 | 2,203 |
2024 | 2,203 |
Thereafter | 17,675 |
Total minimum lease payments | 29,241 |
Less: amount representing interest | 13,235 |
Present value of net minimum finance lease payments | 16,006 |
Current liabilities | 602 |
Non-current liabilities | $ 15,404 |
Leases - Future Minimum Lease_3
Leases - Future Minimum Lease Payments Due Under Finance Lease as of Prior Year (Details) - CLECO POWER $ in Thousands | Dec. 31, 2018USD ($) |
Years ending Dec. 31, | |
2019 | $ 2,611 |
2020 | 2,611 |
2021 | 2,611 |
2022 | 2,611 |
2023 | 2,611 |
Thereafter | 23,655 |
Total minimum lease payments | 36,710 |
Less: executory costs | 5,817 |
Net minimum lease payments | 30,893 |
Less: amount representing interest | 14,475 |
Present value of net minimum lease payments | 16,418 |
Current liabilities | 557 |
Non-current liabilities | $ 15,861 |
Leases - Total Lease Costs (Det
Leases - Total Lease Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Finance lease cost | ||
Amortization of ROU assets | $ 280 | $ 840 |
Interest on lease liabilities | 410 | 1,240 |
Operating lease cost | 1,158 | 3,411 |
Variable lease cost | 116 | 423 |
Total lease cost | 1,964 | 5,914 |
CLECO POWER | ||
Finance lease cost | ||
Amortization of ROU assets | 280 | 840 |
Interest on lease liabilities | 410 | 1,240 |
Operating lease cost | 1,101 | 3,243 |
Variable lease cost | 116 | 423 |
Total lease cost | $ 1,907 | $ 5,746 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet and Cash Flow Information and Other Supplemental Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2019 | Dec. 31, 2018 | |
ROU assets | |||
Operating | $ 29,719 | $ 29,719 | $ 0 |
Finance | 15,120 | 15,120 | |
Total ROU assets | 44,839 | 44,839 | |
Current lease liabilities | |||
Operating | 3,705 | 3,705 | |
Finance | 602 | 602 | |
Non-current lease liabilities | |||
Operating | 25,828 | 25,828 | 0 |
Finance | 15,404 | 15,404 | |
Total lease liabilities | 45,539 | 45,539 | |
Cash paid for amounts included in the measurement of lease liabilities | |||
Operating cash flows from operating leases | 1,108 | 3,387 | |
Operating cash flows from finance leases | 410 | 1,240 | |
Financing cash flows from finance leases | 141 | 412 | |
ROU assets obtained in exchange for new lease liabilities | $ 15,749 | $ 15,881 | |
Operating leases | |||
Weighted-average remaining lease term | 10 years 11 months | 10 years 11 months | |
Weighted-average discount rate | 4.31% | 4.31% | |
Finance leases | |||
Weighted-average remaining lease term | 13 years 6 months | 13 years 6 months | |
Weighted-average discount rate | 10.18% | 10.18% | |
CLECO POWER | |||
ROU assets | |||
Operating | $ 29,375 | $ 29,375 | 0 |
Finance | 15,120 | 15,120 | 15,960 |
Total ROU assets | 44,495 | 44,495 | |
Current lease liabilities | |||
Operating | 3,616 | 3,616 | |
Finance | 602 | 602 | |
Non-current lease liabilities | |||
Operating | 25,682 | 25,682 | $ 0 |
Finance | 15,404 | 15,404 | |
Total lease liabilities | 45,304 | 45,304 | |
Cash paid for amounts included in the measurement of lease liabilities | |||
Operating cash flows from operating leases | 1,034 | 3,189 | |
Operating cash flows from finance leases | 410 | 1,240 | |
Financing cash flows from finance leases | 141 | 412 | |
ROU assets obtained in exchange for new lease liabilities | $ 15,749 | $ 15,749 | |
Operating leases | |||
Weighted-average remaining lease term | 11 years | 11 years | |
Weighted-average discount rate | 4.31% | 4.31% | |
Finance leases | |||
Weighted-average remaining lease term | 13 years 6 months | 13 years 6 months | |
Weighted-average discount rate | 10.18% | 10.18% |
Leases - Lessor Agreements (Det
Leases - Lessor Agreements (Details) - contract | Sep. 30, 2019 | Feb. 04, 2019 |
Leases [Abstract] | ||
Number of contracts | 2 | |
Lease term | 1 year |
Leases - Cottonwood Sale Leaseb
Leases - Cottonwood Sale Leaseback Agreement (Details) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019USD ($) | Sep. 30, 2019USD ($) | |
Lessor, Lease, Description [Line Items] | ||
Depreciation expense | $ 6.6 | $ 16.1 |
Cottonwood Energy | ||
Lessor, Lease, Description [Line Items] | ||
Fixed lease payments per year | $ 40 | $ 40 |
Leases - Lease Income Under Cot
Leases - Lease Income Under Cottonwood Sale Leaseback (Details) - Cleco Cajun - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Lessor, Lease, Description [Line Items] | ||
Fixed payments | $ 10,000 | $ 26,667 |
Variable payments | 6,010 | 14,248 |
Amortization of deferred lease liability | 2,301 | 6,137 |
Total lease income | $ 18,311 | $ 47,052 |
Leases - Remaining Minimum Leas
Leases - Remaining Minimum Lease Payments To Be Received (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Leases [Abstract] | |
Three months ending Dec. 31, 2019 | $ 10,000 |
Years ending Dec. 31, | |
2020 | 40,000 |
2021 | 40,000 |
2022 | 40,000 |
2023 | 40,000 |
Thereafter | 56,666 |
Total payments | $ 226,666 |
Leases - Property Associated wi
Leases - Property Associated with Sale Leaseback (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Leases [Abstract] | |
Property, plant, and equipment | $ 540,409 |
Accumulated depreciation | (16,140) |
Net property, plant, and equipment | $ 524,269 |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Payment terms | 20 days |
Minimum | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Unsatisfied performance obligations | 1 year |
Maximum | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Unsatisfied performance obligations | 15 years |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Total revenue from contracts with customers | $ 467,647 | $ 351,015 | $ 1,173,792 | $ 902,248 |
Revenue unrelated to contracts with customers | ||||
Other | 20,324 | 7,241 | 56,238 | 32,029 |
Total revenue unrelated to contracts with customers | 20,324 | 7,241 | 56,238 | 32,029 |
Operating revenue, net | 487,971 | 358,256 | 1,230,030 | 934,277 |
Deferred lease amortization | 6,137 | 0 | ||
Total retail revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue from contracts with customers | 254,604 | 269,624 | 643,612 | 683,185 |
Residential | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue from contracts with customers | 142,265 | 139,162 | 327,340 | 338,357 |
Commercial | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue from contracts with customers | 84,816 | 79,829 | 218,209 | 218,389 |
Industrial | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue from contracts with customers | 36,830 | 43,380 | 109,545 | 121,445 |
Other retail | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue from contracts with customers | 4,234 | 4,039 | 11,391 | 11,633 |
Surcharge | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue from contracts with customers | 170 | 6,206 | 7,692 | 17,637 |
Electric customer credits | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue from contracts with customers | (13,711) | (2,992) | (30,565) | (24,276) |
Wholesale, net | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue from contracts with customers | 181,564 | 61,204 | 445,629 | 157,995 |
Transmission | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue from contracts with customers | 27,027 | 14,718 | 69,909 | 41,166 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue from contracts with customers | 4,452 | 5,469 | 14,642 | 19,902 |
Affiliate | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue from contracts with customers | 0 | 0 | 0 | 0 |
CLECO POWER | Other | ||||
Revenue unrelated to contracts with customers | ||||
Other miscellaneous fee revenue | 4,900 | 11,400 | 13,400 | |
Reserves for capital expenditures | 200 | 2,400 | ||
CLECO POWER | Lost contribution to fixed cost | ||||
Revenue unrelated to contracts with customers | ||||
Other | 2,600 | |||
CLECO POWER | Price Risk Derivative | Other | ||||
Revenue unrelated to contracts with customers | ||||
Other | 11,700 | |||
CLECO POWER | SSR | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue from contracts with customers | 600 | 3,200 | 6,500 | |
CLECO CAJUN | ||||
Revenue unrelated to contracts with customers | ||||
Deferred lease amortization | 2,300 | 6,100 | ||
Operating Segments | CLECO POWER | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue from contracts with customers | 342,982 | 353,658 | 877,535 | 910,158 |
Revenue unrelated to contracts with customers | ||||
Other | 1,995 | 7,241 | 9,158 | 32,029 |
Total revenue unrelated to contracts with customers | 1,995 | 7,241 | 9,158 | 32,029 |
Operating revenue, net | 344,977 | 360,899 | 886,693 | 942,187 |
Operating Segments | CLECO POWER | Total retail revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue from contracts with customers | 254,604 | 269,624 | 643,612 | 683,185 |
Operating Segments | CLECO POWER | Residential | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue from contracts with customers | 142,265 | 139,162 | 327,340 | 338,357 |
Operating Segments | CLECO POWER | Commercial | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue from contracts with customers | 84,816 | 79,829 | 218,209 | 218,389 |
Operating Segments | CLECO POWER | Industrial | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue from contracts with customers | 36,830 | 43,380 | 109,545 | 121,445 |
Operating Segments | CLECO POWER | Other retail | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue from contracts with customers | 4,234 | 4,039 | 11,391 | 11,633 |
Operating Segments | CLECO POWER | Surcharge | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue from contracts with customers | 170 | 6,206 | 7,692 | 17,637 |
Operating Segments | CLECO POWER | Electric customer credits | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue from contracts with customers | (13,711) | (2,992) | (30,565) | (24,276) |
Operating Segments | CLECO POWER | Wholesale, net | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue from contracts with customers | 69,558 | 63,624 | 179,633 | 165,255 |
Operating Segments | CLECO POWER | Transmission | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue from contracts with customers | 14,034 | 14,718 | 38,679 | 41,166 |
Operating Segments | CLECO POWER | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue from contracts with customers | 4,452 | 5,469 | 14,640 | 19,901 |
Operating Segments | CLECO POWER | Affiliate | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue from contracts with customers | 334 | 223 | 971 | 651 |
Operating Segments | CLECO CAJUN | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue from contracts with customers | 129,892 | 309,912 | ||
Revenue unrelated to contracts with customers | ||||
Other | 18,329 | 47,081 | ||
Total revenue unrelated to contracts with customers | 18,329 | 47,081 | ||
Operating revenue, net | 148,221 | 356,993 | ||
Lease revenue | 16,000 | 40,900 | ||
Operating Segments | CLECO CAJUN | Total retail revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue from contracts with customers | 0 | 0 | ||
Operating Segments | CLECO CAJUN | Residential | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue from contracts with customers | 0 | 0 | ||
Operating Segments | CLECO CAJUN | Commercial | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue from contracts with customers | 0 | 0 | ||
Operating Segments | CLECO CAJUN | Industrial | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue from contracts with customers | 0 | 0 | ||
Operating Segments | CLECO CAJUN | Other retail | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue from contracts with customers | 0 | 0 | ||
Operating Segments | CLECO CAJUN | Surcharge | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue from contracts with customers | 0 | 0 | ||
Operating Segments | CLECO CAJUN | Electric customer credits | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue from contracts with customers | 0 | 0 | ||
Operating Segments | CLECO CAJUN | Wholesale, net | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue from contracts with customers | 114,426 | 273,256 | ||
Operating Segments | CLECO CAJUN | Transmission | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue from contracts with customers | 15,435 | 36,625 | ||
Operating Segments | CLECO CAJUN | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue from contracts with customers | 0 | 0 | ||
Operating Segments | CLECO CAJUN | Affiliate | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue from contracts with customers | 31 | 31 | ||
OTHER | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue from contracts with customers | 25,832 | 20,345 | 70,542 | 48,448 |
Revenue unrelated to contracts with customers | ||||
Other | 0 | 0 | 0 | 0 |
Total revenue unrelated to contracts with customers | 0 | 0 | 0 | 0 |
Operating revenue, net | 25,832 | 20,345 | 70,542 | 48,448 |
OTHER | Total retail revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue from contracts with customers | 0 | 0 | 0 | 0 |
OTHER | Residential | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue from contracts with customers | 0 | 0 | 0 | 0 |
OTHER | Commercial | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue from contracts with customers | 0 | 0 | 0 | 0 |
OTHER | Industrial | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue from contracts with customers | 0 | 0 | 0 | 0 |
OTHER | Other retail | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue from contracts with customers | 0 | 0 | 0 | 0 |
OTHER | Surcharge | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue from contracts with customers | 0 | 0 | 0 | 0 |
OTHER | Electric customer credits | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue from contracts with customers | 0 | 0 | 0 | 0 |
OTHER | Wholesale, net | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue from contracts with customers | (2,420) | (2,420) | (7,260) | (7,260) |
OTHER | Transmission | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue from contracts with customers | 0 | 0 | 0 | 0 |
OTHER | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue from contracts with customers | 0 | 0 | 2 | 1 |
OTHER | Affiliate | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue from contracts with customers | 28,252 | 22,765 | 77,800 | 55,707 |
ELIMINATIONS | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue from contracts with customers | (31,059) | (22,988) | (84,197) | (56,358) |
Revenue unrelated to contracts with customers | ||||
Other | 0 | 0 | (1) | 0 |
Total revenue unrelated to contracts with customers | 0 | 0 | (1) | 0 |
Operating revenue, net | (31,059) | (22,988) | (84,198) | (56,358) |
ELIMINATIONS | Total retail revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue from contracts with customers | 0 | 0 | 0 | 0 |
ELIMINATIONS | Residential | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue from contracts with customers | 0 | 0 | 0 | 0 |
ELIMINATIONS | Commercial | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue from contracts with customers | 0 | 0 | 0 | 0 |
ELIMINATIONS | Industrial | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue from contracts with customers | 0 | 0 | 0 | 0 |
ELIMINATIONS | Other retail | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue from contracts with customers | 0 | 0 | 0 | 0 |
ELIMINATIONS | Surcharge | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue from contracts with customers | 0 | 0 | 0 | 0 |
ELIMINATIONS | Electric customer credits | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue from contracts with customers | 0 | 0 | 0 | 0 |
ELIMINATIONS | Wholesale, net | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue from contracts with customers | 0 | 0 | 0 | 0 |
ELIMINATIONS | Transmission | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue from contracts with customers | (2,442) | 0 | (5,395) | 0 |
ELIMINATIONS | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue from contracts with customers | 0 | 0 | 0 | 0 |
ELIMINATIONS | Affiliate | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue from contracts with customers | $ (28,617) | $ (22,988) | $ (78,802) | $ (56,358) |
Regulatory Assets and Liabili_3
Regulatory Assets and Liabilities - Schedule of Regulatory Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Regulatory Liabilities [Line Items] | ||
Total regulatory assets, net | $ 328,537 | $ 307,374 |
CLECO POWER | ||
Regulatory Liabilities [Line Items] | ||
Total regulatory assets, net | 165,947 | 134,755 |
CLECO POWER | Deferred taxes, net | ||
Regulatory Liabilities [Line Items] | ||
Regulatory liabilities | (144,124) | (155,537) |
CLECO POWER | Energy efficiency | ||
Regulatory Liabilities [Line Items] | ||
Regulatory liabilities | (3,056) | |
CLECO POWER | Other, net | ||
Regulatory Liabilities [Line Items] | ||
Regulatory liabilities | $ (8,048) | $ (4,979) |
Regulatory Assets and Liabili_4
Regulatory Assets and Liabilities - Schedule of Regulatory Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Regulatory Assets [Line Items] | ||
Total regulatory assets, net | $ 328,537 | $ 307,374 |
Fair value of long-term debt | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | 130,847 | 138,701 |
Postretirement costs | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | 17,896 | 19,387 |
Financing costs | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | 8,021 | 8,279 |
Debt issuance costs | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | 5,826 | 6,252 |
CLECO POWER | ||
Regulatory Assets [Line Items] | ||
Total regulatory assets, net | 165,947 | 134,755 |
CLECO POWER | Mining costs | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | 0 | 1,274 |
CLECO POWER | Interest costs | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | 4,021 | 4,208 |
CLECO POWER | AROs | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | 3,523 | 3,099 |
CLECO POWER | Postretirement costs | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | 134,412 | 140,245 |
CLECO POWER | Tree trimming costs | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | 10,607 | 9,069 |
CLECO POWER | Training costs | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | 6,279 | 6,396 |
CLECO POWER | Surcredits, net | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | 289 | 289 |
CLECO POWER | AMI deferred revenue requirement | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | 3,272 | 3,681 |
CLECO POWER | Emergency declarations | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | 1,750 | 2,980 |
CLECO POWER | Production operations and maintenance expenses | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | 9,199 | 12,245 |
CLECO POWER | AFUDC equity gross-up | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | 73,541 | 71,952 |
CLECO POWER | Acquisition/ transaction costs | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | 2,151 | 2,230 |
CLECO POWER | Acquisition/ transaction costs | Coughlin transaction costs | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | 915 | 938 |
CLECO POWER | Financing costs | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | 7,646 | 7,923 |
CLECO POWER | Corporate franchise tax, net | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | 864 | 1,416 |
CLECO POWER | Non-service cost of postretirement benefits | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | 6,650 | 4,629 |
CLECO POWER | Energy efficiency | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | 2,585 | |
CLECO POWER | Accumulated deferred fuel | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | $ 56,056 | $ 20,112 |
Regulatory Assets and Liabili_5
Regulatory Assets and Liabilities - Narrative (Details) - CLECO POWER - USD ($) $ in Thousands | Feb. 04, 2019 | Jan. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2018 |
Regulatory Assets [Line Items] | ||||
Annual reduction to retail customer rates | $ 4,000 | $ 4,000 | ||
Annual reduction to retail customer rates | ||||
Regulatory Assets [Line Items] | ||||
Regulatory liability | $ 1,700 | |||
Energy efficiency | ||||
Regulatory Assets [Line Items] | ||||
Regulatory liability | 3,056 | |||
Energy efficiency | ||||
Regulatory Assets [Line Items] | ||||
Regulatory assets | $ 2,585 | |||
Coughlin Pipeline project revenue requirement | ||||
Regulatory Assets [Line Items] | ||||
Regulatory assets | $ 200 |
Fair Value Accounting - Carryin
Fair Value Accounting - Carrying Value and Estimated Fair Value (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Deferred debt issuance costs not included in the carrying value of long-term debt | $ 14,200 | $ 10,300 |
CARRYING VALUE | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | 3,191,452 | 2,889,631 |
FAIR VALUE | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | 3,407,190 | 2,859,924 |
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 | 7,600 | 8,300 |
CLECO POWER | CARRYING VALUE | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | 1,380,605 | 1,400,930 |
CLECO POWER | FAIR VALUE | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | $ 1,625,480 | $ 1,517,152 |
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, 2019 | Dec. 31, 2018 |
Asset description | ||
Institutional money market funds | $ 111,885 | $ 133,722 |
Total assets | 122,556 | 157,077 |
Liability description | ||
Total liabilities | 1,298 | 468 |
FTRs | ||
Asset description | ||
FTRs and other commodity derivatives | 9,926 | 23,355 |
Liability description | ||
FTRs and other commodity derivatives | 1,257 | 468 |
Other commodity derivatives | ||
Asset description | ||
FTRs and other commodity derivatives | 745 | 0 |
Liability description | ||
FTRs and other commodity derivatives | 41 | 0 |
QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) | ||
Asset description | ||
Institutional money market funds | 0 | 0 |
Total assets | 0 | 0 |
Liability description | ||
Total liabilities | 0 | 0 |
QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) | FTRs | ||
Asset description | ||
FTRs and other commodity derivatives | 0 | 0 |
Liability description | ||
FTRs and other commodity derivatives | 0 | 0 |
QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) | Other commodity derivatives | ||
Asset description | ||
FTRs and other commodity derivatives | 0 | 0 |
Liability description | ||
FTRs and other commodity derivatives | 0 | 0 |
SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) | ||
Asset description | ||
Institutional money market funds | 111,885 | 133,722 |
Total assets | 112,630 | 133,722 |
Liability description | ||
Total liabilities | 41 | 0 |
SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) | FTRs | ||
Asset description | ||
FTRs and other commodity derivatives | 0 | 0 |
Liability description | ||
FTRs and other commodity derivatives | 0 | 0 |
SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) | Other commodity derivatives | ||
Asset description | ||
FTRs and other commodity derivatives | 745 | 0 |
Liability description | ||
FTRs and other commodity derivatives | 41 | 0 |
SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | ||
Asset description | ||
Institutional money market funds | 0 | 0 |
FTRs and other commodity derivatives | 9,926 | 23,355 |
Total assets | 9,926 | 23,355 |
Liability description | ||
FTRs and other commodity derivatives | 1,257 | 468 |
Total liabilities | 1,257 | 468 |
SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | FTRs | ||
Asset description | ||
FTRs and other commodity derivatives | 9,926 | 23,355 |
Liability description | ||
FTRs and other commodity derivatives | 1,257 | 468 |
SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | Other commodity derivatives | ||
Asset description | ||
FTRs and other commodity derivatives | 0 | 0 |
Liability description | ||
FTRs and other commodity derivatives | 0 | 0 |
CLECO POWER | ||
Asset description | ||
Institutional money market funds | 76,947 | 55,900 |
FTRs and other commodity derivatives | 8,601 | 23,355 |
Total assets | 85,548 | 79,255 |
Liability description | ||
FTRs and other commodity derivatives | 577 | 468 |
Total liabilities | 577 | 468 |
CLECO POWER | QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) | ||
Asset description | ||
Institutional money market funds | 0 | 0 |
FTRs and other commodity derivatives | 0 | 0 |
Total assets | 0 | 0 |
Liability description | ||
FTRs and other commodity derivatives | 0 | 0 |
Total liabilities | 0 | 0 |
CLECO POWER | SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) | ||
Asset description | ||
Institutional money market funds | 76,947 | 55,900 |
FTRs and other commodity derivatives | 0 | 0 |
Total assets | 76,947 | 55,900 |
Liability description | ||
FTRs and other commodity derivatives | 0 | 0 |
Total liabilities | 0 | 0 |
CLECO POWER | SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | ||
Asset description | ||
Institutional money market funds | 0 | 0 |
FTRs and other commodity derivatives | 8,601 | 23,355 |
Total assets | 8,601 | 23,355 |
Liability description | ||
FTRs and other commodity derivatives | 577 | 468 |
Total liabilities | $ 577 | $ 468 |
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, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Beginning balance | $ 14,665 | $ 25,133 | $ 22,887 | $ 7,044 |
Unrealized (losses) gains | (1,234) | 4,520 | (4,488) | 6,153 |
Purchases | 557 | 1,251 | 26,401 | 26,734 |
Settlements | (5,319) | (8,644) | (36,131) | (17,671) |
Ending balance | 8,669 | 22,260 | 8,669 | 22,260 |
CLECO POWER | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Beginning balance | 13,910 | 25,133 | 22,887 | 7,044 |
Unrealized (losses) gains | (1,700) | 4,520 | (3,644) | 6,153 |
Purchases | 1,133 | 1,251 | 20,961 | 26,734 |
Settlements | (5,319) | (8,644) | (32,180) | (17,671) |
Ending balance | $ 8,024 | $ 22,260 | $ 8,024 | $ 22,260 |
Fair Value Accounting - Signifi
Fair Value Accounting - Significant Unobservable Inputs Used in Developing Fair Value of Level 3 Positions (Details) $ in Thousands | Sep. 30, 2019USD ($)$ / MW | Dec. 31, 2018USD ($)$ / MW |
Minimum | ||
FAIR VALUE | ||
FORWARD PRICE RANGE (usd per mwh) | $ / MW | (2.29) | (4.4) |
Maximum | ||
FAIR VALUE | ||
FORWARD PRICE RANGE (usd per mwh) | $ / MW | 3.14 | 15.1 |
Measured On A Recurring Basis | Level 3 | ||
FAIR VALUE | ||
ASSETS | $ 9,926 | $ 23,355 |
LIABILITIES | $ 1,257 | $ 468 |
CLECO POWER | Minimum | ||
FAIR VALUE | ||
FORWARD PRICE RANGE (usd per mwh) | $ / MW | (1.67) | (4.4) |
CLECO POWER | Maximum | ||
FAIR VALUE | ||
FORWARD PRICE RANGE (usd per mwh) | $ / MW | 2.79 | 15.1 |
CLECO POWER | Measured On A Recurring Basis | ||
FAIR VALUE | ||
ASSETS | $ 8,601 | $ 23,355 |
LIABILITIES | 577 | 468 |
CLECO POWER | Measured On A Recurring Basis | Level 3 | ||
FAIR VALUE | ||
ASSETS | 8,601 | 23,355 |
LIABILITIES | $ 577 | $ 468 |
Fair Value Accounting - Narrati
Fair Value Accounting - Narrative (Details) MWh in Millions, MMBTU in Millions, $ in Millions | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2019USD ($)MMBTU | Sep. 30, 2019USD ($)MWh | Dec. 31, 2018USD ($)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 | $ 91.5 | $ 91.5 | $ 103.8 |
Volume outstanding | 18.4 | 23.4 | 8.7 |
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 | $ 5.4 | $ 5.4 | $ 11.2 |
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 | 15 | 15 | 18.7 |
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 | 57.4 | $ 57.4 | $ 26.1 |
Volume outstanding | MWh | 14.6 | 8.7 | |
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 | 5.4 | $ 5.4 | $ 11.2 |
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 | $ 14.1 | $ 14.1 | $ 18.6 |
Fair Value Accounting - Fair _2
Fair Value Accounting - Fair Value of Derivative Instruments as Recorded in Condensed Consolidated Balance Sheets (Details) - DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Commodity-related contracts | ||
Commodity-related contracts, net | $ 9,373 | $ 22,887 |
Price Risk Derivative | ||
Commodity-related contracts | ||
Energy risk management assets | 9,926 | 23,355 |
Energy risk management liabilities | 1,257 | 468 |
Other commodity derivatives | ||
Commodity-related contracts | ||
Energy risk management assets | 745 | 0 |
Energy risk management liabilities | 41 | 0 |
CLECO POWER | Price Risk Derivative | ||
Commodity-related contracts | ||
Energy risk management assets | 8,601 | 23,355 |
Energy risk management liabilities | 577 | 468 |
Commodity-related contracts, net | $ 8,024 | $ 22,887 |
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, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Commodity-related contracts | ||||
Net gain (loss) recognized in income on derivatives | $ 2,823 | $ 5,654 | $ 115 | $ 29,119 |
Accumulated deferred fuel | ||||
Commodity-related contracts | ||||
Unrealized gains (losses) associated with FTRs | (1,700) | 4,500 | (3,600) | 6,200 |
Electric operations | ||||
Commodity-related contracts | ||||
Gain recognized in income on derivatives | 1,997 | 7,241 | 12,396 | 32,407 |
Purchased power | ||||
Commodity-related contracts | ||||
Loss recognized in income on derivatives | (2,648) | (1,587) | (12,985) | (3,288) |
Fuel used for electric generation | ||||
Commodity-related contracts | ||||
Gain recognized in income on derivatives | 3,474 | 0 | 704 | 0 |
CLECO POWER | ||||
Commodity-related contracts | ||||
Net gain (loss) recognized in income on derivatives | 169 | 5,654 | 7,600 | 29,119 |
CLECO POWER | Accumulated deferred fuel | ||||
Commodity-related contracts | ||||
Unrealized gains (losses) associated with FTRs | (1,700) | 4,500 | (3,600) | 6,200 |
CLECO POWER | Electric operations | ||||
Commodity-related contracts | ||||
Gain recognized in income on derivatives | 1,997 | 7,241 | 12,400 | 32,407 |
CLECO POWER | Purchased power | ||||
Commodity-related contracts | ||||
Loss recognized in income on derivatives | $ (1,828) | $ (1,587) | $ (4,800) | $ (3,288) |
Debt - Narrative (Details)
Debt - Narrative (Details) | Feb. 04, 2019USD ($)instrument | Jan. 31, 2019USD ($) | Sep. 11, 2019USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) |
Debt [Line Items] | |||||
Repayment of long-term debt | $ 390,571,000 | $ 19,193,000 | |||
South Central Generating | |||||
Debt [Line Items] | |||||
Repayment of long-term debt | $ 400,000,000 | $ 400,000,000 | |||
CLECO HOLDINGS | |||||
Debt [Line Items] | |||||
Debt term | 3 years | ||||
Debt to capital ratio | 0.65 | ||||
CLECO HOLDINGS | Letters of Credit | |||||
Debt [Line Items] | |||||
Maximum borrowing capacity | $ 1,100,000 | ||||
Number of instruments | instrument | 3 | ||||
Letters of credit | 34,500,000 | ||||
CLECO HOLDINGS | Bridge Loan Agreement | |||||
Debt [Line Items] | |||||
Repayment of long-term debt | $ 300,000,000 | ||||
CLECO HOLDINGS | Bank Term Loan Agreement | |||||
Debt [Line Items] | |||||
Repayment of long-term debt | 100,000,000 | ||||
CLECO HOLDINGS | 3.375% senior notes due September 15, 2029 | |||||
Debt [Line Items] | |||||
Aggregate principal amount | $ 300,000,000 | ||||
Debt instrument, interest rate | 3.375% | ||||
CLECO HOLDINGS | Loans payable | |||||
Debt [Line Items] | |||||
Debt term | 3 years | ||||
Debt to capital ratio | 0.65 | ||||
CLECO HOLDINGS | Loans payable | Bridge Loan Agreement | |||||
Debt [Line Items] | |||||
Aggregate principal amount | $ 300,000,000 | ||||
CLECO HOLDINGS | Loans payable | Bank Term Loan Agreement | |||||
Debt [Line Items] | |||||
Aggregate principal amount | 100,000,000 | ||||
CLECO HOLDINGS | Line of Credit | |||||
Debt [Line Items] | |||||
Increase in credit facility capacity | 75,000,000 | ||||
Maximum borrowing capacity | $ 175,000,000 | ||||
CLECO POWER | |||||
Debt [Line Items] | |||||
Repayment of long-term debt | 20,571,000 | $ 19,193,000 | |||
CLECO POWER | Bonds | GO Zone Bond, Maturing 2038 | |||||
Debt [Line Items] | |||||
Aggregate principal amount | $ 50,000,000 |
Debt - Cumulative Minimum Princ
Debt - Cumulative Minimum Principal Amounts Committed to be Repaid (Details) - South Central Generating $ in Thousands | Sep. 30, 2019USD ($) |
For the year ending Dec. 31, | |
2019 | $ 66,700 |
2020 | 132,300 |
2021 | 200,000 |
2022 | 266,700 |
2023 | 332,300 |
2024 | $ 400,000 |
Pension Plan and Employee Ben_3
Pension Plan and Employee Benefits - Narrative (Details) - USD ($) | Sep. 12, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 |
Pension Plan | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Discretionary contribution | $ 12,300,000 | ||||
Defined benefit plan contributions by employer | $ 3,044,000 | $ 4,709,000 | $ 9,132,000 | $ 14,126,000 | |
Other Benefits Plan | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined benefit plan contributions by employer | 868,000 | 793,000 | 2,156,000 | 2,192,000 | |
Assets held-in-trust, noncurrent | 0 | 0 | |||
SERP | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined benefit plan contributions by employer | 1,260,000 | 1,593,000 | 3,780,000 | 4,779,000 | |
CLECO POWER | Other Benefits Plan | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined benefit plan contributions by employer | 900,000 | 900,000 | 2,300,000 | 2,500,000 | |
CLECO POWER | SERP | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined benefit plan contributions by employer | 200,000 | 400,000 | 600,000 | 1,100,000 | |
Other Subsidiaries | Pension Plan | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined benefit plan contributions by employer | $ 500,000 | $ 500,000 | $ 1,600,000 | $ 1,500,000 |
Pension Plan and Employee Ben_4
Pension Plan and Employee Benefits - Net Periodic Pension and Benefits Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
PENSION BENEFITS | ||||
Components of periodic benefit costs | ||||
Service cost | $ 2,104 | $ 2,377 | $ 6,311 | $ 7,130 |
Interest cost | 5,621 | 5,215 | 16,864 | 15,869 |
Expected return on plan assets | (6,625) | (5,943) | (19,876) | (17,818) |
Amortizations | ||||
Prior period service credit | (18) | (18) | (54) | (53) |
Net loss | 1,962 | 3,078 | 5,887 | 8,998 |
Net periodic benefit cost | 3,044 | 4,709 | 9,132 | 14,126 |
OTHER BENEFITS | ||||
Components of periodic benefit costs | ||||
Service cost | 328 | 336 | 896 | 1,011 |
Interest cost | 435 | 361 | 1,235 | 1,076 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Amortizations | ||||
Prior period service credit | 0 | 0 | 0 | 0 |
Net loss | 105 | 96 | 25 | 105 |
Net periodic benefit cost | 868 | 793 | 2,156 | 2,192 |
SERP | ||||
Components of periodic benefit costs | ||||
Service cost | 82 | 136 | 247 | 407 |
Interest cost | 831 | 769 | 2,494 | 2,296 |
Amortizations | ||||
Prior period service credit | (34) | (35) | (104) | (104) |
Net loss | 381 | 723 | 1,143 | 2,180 |
Net periodic benefit cost | $ 1,260 | $ 1,593 | $ 3,780 | $ 4,779 |
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, 2019 | Dec. 31, 2018 |
Defined Benefit Plan Disclosure [Line Items] | ||
Non-current | $ 238,392 | $ 249,264 |
Other Benefits Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Current | 4,130 | 4,130 |
Non-current | 35,090 | 36,325 |
CLECO POWER | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Non-current | 172,576 | 182,721 |
CLECO POWER | Other Benefits Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Current | 3,584 | 3,584 |
Non-current | $ 30,769 | $ 31,694 |
Pension Plan and Employee Ben_6
Pension Plan and Employee Benefits - Current and Non-Current Portions of SERP Liability (Details) - SERP Benefits - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Defined Benefit Plan Disclosure [Line Items] | ||
Current | $ 4,478 | $ 4,478 |
Non-current | 73,255 | 73,936 |
CLECO POWER | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Current | 930 | 930 |
Non-current | $ 11,759 | $ 12,025 |
Pension Plan and Employee Ben_7
Pension Plan and Employee Benefits - 401 (K) Plans (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Defined Contribution Plan Disclosure [Line Items] | ||||
401(k) Plan expense | $ 2,077 | $ 1,424 | $ 6,136 | $ 4,716 |
Other Subsidiaries | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
401(k) Plan expense | $ 873 | $ 254 | $ 2,625 | $ 865 |
Income Taxes - Effective Tax Ra
Income Taxes - Effective Tax Rate Reconciliation (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Effective Income Tax Rate [Line Items] | ||||
Effective tax rate | 20.20% | 19.40% | 21.10% | 20.70% |
CLECO POWER | ||||
Effective Income Tax Rate [Line Items] | ||||
Effective tax rate | 19.40% | 22.10% | 21.20% | 23.10% |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Uncertain Tax Positions [Line Items] | ||||||
Interest payable related to uncertain tax positions | $ 0 | $ 0 | $ 0 | |||
Interest expense related to uncertain tax positions | 0 | $ 0 | 0 | $ 0 | ||
Liability for uncertain tax positions | 0 | 0 | ||||
Penalties | 0 | 0 | 0 | 0 | ||
Scenario, Forecast | Federal | ||||||
Uncertain Tax Positions [Line Items] | ||||||
Net operating losses | $ 575,500,000 | |||||
Scenario, Forecast | State | ||||||
Uncertain Tax Positions [Line Items] | ||||||
Net operating losses | $ 121,800,000 | |||||
CLECO POWER | ||||||
Uncertain Tax Positions [Line Items] | ||||||
Interest payable related to uncertain tax positions | 0 | 0 | $ 0 | |||
Interest expense related to uncertain tax positions | $ 0 | $ 0 | $ 0 | $ 0 |
Disclosures about Segments (Det
Disclosures about Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | Apr. 13, 2016 | |
Revenue | ||||||
Electric operations | $ 451,902 | $ 341,062 | $ 1,130,318 | $ 897,486 | ||
Other operations | 49,780 | 20,186 | 131,544 | 61,067 | ||
Affiliate revenue | 0 | 0 | 0 | 0 | ||
Electric customer credits | (13,711) | (2,992) | (31,832) | (24,276) | ||
Operating revenue, net | 487,971 | 358,256 | 1,230,030 | 934,277 | ||
Depreciation and amortization | 57,004 | 43,763 | 158,395 | 128,076 | ||
Interest income | 1,690 | 1,832 | 4,456 | 4,043 | ||
Interest charges | 35,832 | 31,828 | 105,671 | 94,894 | ||
Federal and state income tax expense (benefit) | 14,088 | 11,419 | 32,355 | 21,947 | ||
Net income (loss) | 55,565 | 47,360 | 120,868 | 84,060 | ||
Additions to property, plant, and equipment | 251,845 | 194,619 | ||||
Equity investment in investees | 17,672 | 17,672 | $ 18,172 | |||
Goodwill | 1,490,797 | 1,490,797 | 1,490,797 | $ 1,490,000 | ||
Total segment assets | 7,498,373 | 7,498,373 | 6,436,814 | |||
Operating Segments | CLECO POWER | ||||||
Revenue | ||||||
Electric operations | 339,869 | 343,482 | 862,969 | 904,746 | ||
Other operations | 18,485 | 20,186 | 53,318 | 61,066 | ||
Affiliate revenue | 334 | 223 | 971 | 651 | ||
Electric customer credits | (13,711) | (2,992) | (30,565) | (24,276) | ||
Operating revenue, net | 344,977 | 360,899 | 886,693 | 942,187 | ||
Depreciation and amortization | 44,903 | 41,687 | 126,610 | 121,796 | ||
Interest income | 1,421 | 1,606 | 3,281 | 3,560 | ||
Interest charges | 17,983 | 17,895 | 52,498 | 53,658 | ||
Federal and state income tax expense (benefit) | 12,431 | 18,016 | 34,407 | 39,724 | ||
Net income (loss) | 51,527 | 63,336 | 127,595 | 132,359 | ||
Additions to property, plant, and equipment | 247,987 | 193,708 | ||||
Equity investment in investees | 17,672 | 17,672 | 18,172 | |||
Goodwill | 1,490,797 | 1,490,797 | 1,490,797 | |||
Total segment assets | 5,988,444 | 5,988,444 | 5,839,853 | |||
Operating Segments | CLECO CAJUN | ||||||
Revenue | ||||||
Electric operations | 114,453 | 274,610 | ||||
Other operations | 33,737 | 83,619 | ||||
Affiliate revenue | 31 | 31 | ||||
Electric customer credits | 0 | (1,267) | ||||
Operating revenue, net | 148,221 | 356,993 | ||||
Depreciation and amortization | 10,009 | 25,555 | ||||
Interest income | 220 | 842 | ||||
Interest charges | 0 | 0 | ||||
Federal and state income tax expense (benefit) | 7,612 | 15,169 | ||||
Net income (loss) | 22,806 | 46,788 | ||||
Additions to property, plant, and equipment | 3,654 | |||||
Equity investment in investees | 0 | 0 | ||||
Goodwill | 0 | 0 | ||||
Total segment assets | 998,289 | 998,289 | ||||
OTHER | ||||||
Revenue | ||||||
Electric operations | (2,420) | (2,420) | (7,260) | (7,260) | ||
Other operations | 0 | 0 | 2 | 1 | ||
Affiliate revenue | 28,252 | 22,765 | 77,800 | 55,707 | ||
Electric customer credits | 0 | 0 | 0 | 0 | ||
Operating revenue, net | 25,832 | 20,345 | 70,542 | 48,448 | ||
Depreciation and amortization | 2,092 | 2,076 | 6,231 | 6,281 | ||
Interest income | 228 | 310 | 841 | 652 | ||
Interest charges | 18,028 | 14,017 | 53,682 | 41,409 | ||
Federal and state income tax expense (benefit) | (5,955) | (6,597) | (17,220) | (17,777) | ||
Net income (loss) | (18,768) | (15,975) | (53,515) | (48,299) | ||
Additions to property, plant, and equipment | 204 | 911 | ||||
Equity investment in investees | 0 | 0 | 0 | |||
Goodwill | 0 | 0 | 0 | |||
Total segment assets | 550,323 | 550,323 | 633,756 | |||
ELIMINATIONS | ||||||
Revenue | ||||||
Electric operations | 0 | 0 | (1) | 0 | ||
Other operations | (2,442) | 0 | (5,395) | 0 | ||
Affiliate revenue | (28,617) | (22,988) | (78,802) | (56,358) | ||
Electric customer credits | 0 | 0 | 0 | 0 | ||
Operating revenue, net | (31,059) | (22,988) | (84,198) | (56,358) | ||
Depreciation and amortization | 0 | 0 | (1) | (1) | ||
Interest income | (179) | (84) | (508) | (169) | ||
Interest charges | (179) | (84) | (509) | (173) | ||
Federal and state income tax expense (benefit) | 0 | 0 | (1) | 0 | ||
Net income (loss) | 0 | $ (1) | 0 | 0 | ||
Additions to property, plant, and equipment | 0 | $ 0 | ||||
Equity investment in investees | 0 | 0 | 0 | |||
Goodwill | 0 | 0 | 0 | |||
Total segment assets | $ (38,683) | $ (38,683) | $ (36,795) |
Regulation and Rates (Details)
Regulation and Rates (Details) - USD ($) | 3 Months Ended | |||||
Sep. 30, 2019 | Jul. 10, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | |
Regulation and Rates [Line Items] | ||||||
Refund due to customers | $ 50,777,000 | $ 35,842,000 | ||||
CLECO POWER | ||||||
Regulation and Rates [Line Items] | ||||||
Estimated refund for the tax-related benefits from the TCJA | 38,400,000 | |||||
Refund due to customers | 49,403,000 | $ 79,200,000 | $ 35,842,000 | |||
Payments received for capital expenditures subject to refund | 2,800,000 | |||||
Accrual for related interest | 3,000,000 | |||||
CLECO POWER | FERC | ||||||
Regulation and Rates [Line Items] | ||||||
Refund due to customers | 3,000,000 | |||||
CLECO POWER | LPSC | Merger Commitments, cost savings | ||||||
Regulation and Rates [Line Items] | ||||||
Accrual for net capital refund for capital expenditures paid for by third parties | 6,100,000 | |||||
CLECO POWER | FRP | ||||||
Regulation and Rates [Line Items] | ||||||
Refund due to customers | $ 2,300,000 | |||||
CLECO POWER | FRP | LPSC | ||||||
Regulation and Rates [Line Items] | ||||||
Refund due to customers | $ 0 | |||||
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 | Transmission return on equity | FERC | ||||||
Regulation and Rates [Line Items] | ||||||
Refund due to customers | $ 1,900,000 | |||||
CLECO POWER | 2017 FRP Monitoring Report, Cost of Service Savings | LPSC | ||||||
Regulation and Rates [Line Items] | ||||||
Refund due to customers | $ 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 | 2017 FRP Monitoring Report | LPSC | ||||||
Regulation and Rates [Line Items] | ||||||
Refund due to customers | $ 0 | |||||
CLECO POWER | 2018 FRP Monitoring Report | LPSC | ||||||
Regulation and Rates [Line Items] | ||||||
Refund due to customers | $ 2,300,000 | |||||
Payments received for capital expenditures subject to refund | $ 2,300,000 | |||||
CLECO POWER | 2019 FRP Monitoring Report | LPSC | ||||||
Regulation and Rates [Line Items] | ||||||
Refund due to customers | $ 1,200,000 |
Variable Interest Entities - Na
Variable Interest Entities - Narrative (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | |
Variable Interest Entity [Line Items] | ||
Equity investment in investee | $ 17,672 | $ 18,172 |
CLECO POWER | ||
Variable Interest Entity [Line Items] | ||
Equity investment in investee | $ 17,672 | $ 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, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Schedule of Equity Method Investments [Line Items] | |||||
Total equity investment in investee | $ 17,672 | $ 17,672 | $ 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 | (1,600) | (1,600) | (1,100) | ||
Total equity investment in investee | 17,672 | 17,672 | $ 18,172 | ||
Operating revenue | 2,776 | $ 2,214 | 7,114 | $ 4,134 | |
Operating expenses | 2,776 | 2,214 | 7,114 | 4,134 | |
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, 2019 | Dec. 31, 2018 |
Variable Interest Entity [Line Items] | ||
Oxbow’s net assets/liabilities | $ 35,345 | $ 36,345 |
Oxbow | ||
Variable Interest Entity [Line Items] | ||
Cleco Power’s 50% equity | 17,672 | 18,172 |
Cleco Power’s maximum exposure to loss | $ 17,672 | $ 18,172 |
Litigation, Other Commitments_2
Litigation, Other Commitments and Contingencies, and Disclosures about Guarantees - Litigation (Details) | Nov. 07, 2019USD ($) | May 31, 2018USD ($) | Mar. 31, 2018plaintiff | Jun. 30, 2016petition | Sep. 30, 2015USD ($) | Jun. 30, 2015claim | Feb. 28, 2015 | Nov. 30, 2014 | Dec. 31, 2016claim | Dec. 31, 2017USD ($) | Sep. 30, 2019USD ($) | Sep. 27, 2019findingrecommendation | Jul. 10, 2019USD ($) | Feb. 04, 2019USD ($) | Dec. 31, 2018USD ($) | Aug. 31, 2018USD ($) | Mar. 31, 2017generation_unit |
Loss Contingencies [Line Items] | |||||||||||||||||
Provision for rate refund | $ 50,777,000 | $ 35,842,000 | |||||||||||||||
Loss contingency, estimate of possible loss | 6,000,000 | ||||||||||||||||
South Central Generating | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Indemnification asset | $ 10,000,000 | ||||||||||||||||
Contingent liability | $ 10,000,000 | ||||||||||||||||
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 | $ 6,500,000 | ||||||||||||||||
Gulf Coast Spinning construction of cotton spinning facility | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Allegations by plaintiff, failure to perform | $ 60,000,000 | ||||||||||||||||
Actions filed in the 9th Judicial District Court | Alleged Breach of Fiduciary Duties | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Number of actions filed | claim | 4 | ||||||||||||||||
Actions filed in the Civil District Court | Alleged Breach of Fiduciary Duties | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Number of actions filed | claim | 3 | 3 | |||||||||||||||
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 | Pending Litigation | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Number of generation units failed to repair | generation_unit | 1 | ||||||||||||||||
Number of generation units owned | generation_unit | 2 | ||||||||||||||||
Larry Addison, Et Al. V. Sabine River Authority Of Texas, Et Al | Pending Litigation | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Number of plaintiffs | plaintiff | 26 | ||||||||||||||||
CLECO POWER | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Provision for rate refund | 49,403,000 | $ 79,200,000 | $ 35,842,000 | ||||||||||||||
CLECO POWER | LPSC 2016-2017 Fuel Audit | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Fuel costs | $ 536,200,000 | ||||||||||||||||
Cost disallowance in audit, excluding interest | $ 0 | ||||||||||||||||
CLECO POWER | LPSC 2016-2017 EAC Audit | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Loss contingency, damages sought, value | $ 30,700,000 | ||||||||||||||||
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 | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Number of findings | finding | 12 | ||||||||||||||||
Number of recommendations | recommendation | 59 | ||||||||||||||||
Provision for rate refund | 3,000,000 | ||||||||||||||||
CLECO POWER | FERC | MISO Transmission Rates | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Public utilities, approved return on equity, percentage (In hundredths) | 12.38% | ||||||||||||||||
Public utilities, proposed return on equity, percentage (in hundredths) | 9.70% | 6.68% | |||||||||||||||
Provision for rate refund | $ 1,900,000 | ||||||||||||||||
Subsequent Event | CLECO POWER | FERC | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Estimated refund interest amount | $ 3,000,000 |
Litigation, Other Commitments_3
Litigation, Other Commitments and Contingencies, and Disclosures about Guarantees - Off-Balance Sheet Commitments and Guarantees (Details) | 9 Months Ended |
Sep. 30, 2019USD ($) | |
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 | |
Guarantor Obligations [Line Items] | |
Guarantor obligations, collateral held directly or by third parties, amount | 0 |
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 | 86,400,000 |
CLECO HOLDINGS | Letters of Credit | |
Guarantor Obligations [Line Items] | |
Letters of credit | $ 34,500,000 |
Affiliate Transactions - Narrat
Affiliate Transactions - Narrative (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Related Party Transactions [Abstract] | ||
Accounts payable - affiliate | $ 3,175 | $ 0 |
Affiliate Transactions - Summar
Affiliate Transactions - Summary of Balances Payable To or Due From Affiliates (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Related Party Transaction [Line Items] | ||
ACCOUNTS PAYABLE | $ 3,175 | $ 0 |
CLECO POWER | ||
Related Party Transaction [Line Items] | ||
ACCOUNTS RECEIVABLE | 2,074 | 3,318 |
ACCOUNTS PAYABLE | 8,722 | 7,843 |
CLECO POWER | Cleco Holdings | ||
Related Party Transaction [Line Items] | ||
ACCOUNTS RECEIVABLE | 1 | 699 |
ACCOUNTS PAYABLE | 94 | 88 |
CLECO POWER | Support Group | ||
Related Party Transaction [Line Items] | ||
ACCOUNTS RECEIVABLE | 1,361 | 2,619 |
ACCOUNTS PAYABLE | 8,610 | 7,755 |
CLECO POWER | Cleco Cajun | ||
Related Party Transaction [Line Items] | ||
ACCOUNTS RECEIVABLE | 712 | 0 |
ACCOUNTS PAYABLE | $ 18 | $ 0 |
Intangible Assets and Liabili_3
Intangible Assets and Liabilities - Intangible Assets and Liabilities Narrative (Details) - USD ($) | Feb. 04, 2019 | Sep. 30, 2019 | Dec. 31, 2008 | Dec. 31, 2016 |
Power supply agreements | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible liabilities, residual value | $ 0 | |||
Preliminary fair value of intangible liabilities | $ 14,200,000 | |||
Intangible liabilities, remaining life | 6 years | |||
LTSA | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible liabilities | $ 24,100,000 | |||
Intangible liabilities, remaining life | 7 years | |||
Trade name | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-lived intangible asset, useful life | 20 years | |||
Intangible assets, residual value | $ 0 | |||
Power supply agreements | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible assets, residual value | $ 0 | $ 0 | ||
Preliminary fair value of intangible assets | $ 98,900,000 | |||
Power supply agreements | Minimum | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-lived intangible asset, useful life | 4 years | |||
Intangible assets, remaining life | 2 years | |||
Power supply agreements | Maximum | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-lived intangible asset, useful life | 16 years | |||
Intangible assets, remaining life | 8 years | |||
Cleco Katrina/Rita | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible assets, residual value | $ 0 | |||
Accumulated amortization | $ 0 | |||
Cleco Katrina/Rita | 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 Katrina/Rita | Cleco Katrina/Rita right to bill and collect storm recovery charges | Minimum | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-lived intangible asset, useful life | 12 years | |||
Cleco Katrina/Rita | Cleco Katrina/Rita right to bill and collect storm recovery charges | Maximum | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-lived intangible asset, useful life | 15 years | |||
Cleco Katrina/Rita | 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 Katrina/Rita | Financing costs | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-lived intangible assets acquired | $ 1,500,000 |
Intangible Assets and Liabili_4
Intangible Assets and Liabilities - Schedule of Amortization of Intangible Assets and Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
LTSA | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of intangible liabilities | $ 871 | $ 0 | $ 2,323 | $ 0 |
Power supply agreements | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of intangible liabilities | 882 | 0 | 2,352 | 0 |
Cleco Katrina/Rita right to bill and collect storm recovery charges | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of intangible assets | 5,660 | 5,623 | 15,702 | 15,617 |
Cleco Katrina/Rita right to bill and collect storm recovery charges | CLECO POWER | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of intangible assets | 5,660 | 5,623 | 15,702 | 15,617 |
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 | $ 6,474 | $ 2,420 | $ 17,873 | $ 7,260 |
Intangible Assets and Liabili_5
Intangible Assets and Liabilities - Schedule of Finite-Lived Intangible Assets and Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||
Total intangible assets carrying amount | $ 259,698 | $ 160,798 |
Total intangible liability carrying amount | 38,300 | 0 |
Net intangible assets carrying amount | 221,398 | 160,798 |
Accumulated amortization | (105,583) | (76,491) |
Net intangible assets subject to amortization | 115,815 | 84,307 |
LTSA | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total intangible liability carrying amount | 24,100 | 0 |
Power supply agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total intangible liability carrying amount | 14,200 | 0 |
Cleco Katrina/Rita right to bill and collect storm recovery charges | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total intangible assets carrying amount | 70,594 | 70,594 |
Cleco Katrina/Rita right to bill and collect storm recovery charges | CLECO POWER | ||
Finite-Lived Intangible Assets [Line Items] | ||
Net intangible assets carrying amount | 177,537 | 177,537 |
Accumulated amortization | (172,146) | (156,444) |
Net intangible assets subject to amortization | 5,391 | 21,093 |
Trade name | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total intangible assets carrying amount | 5,100 | 5,100 |
Power supply agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total intangible assets carrying amount | $ 184,004 | $ 85,104 |
Intangible Assets and Liabili_6
Intangible Assets and Liabilities - Goodwill Narrative (Details) - USD ($) | Aug. 01, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | Apr. 13, 2016 |
Goodwill [Line Items] | ||||||||
Goodwill | $ 1,490,797,000 | $ 1,490,797,000 | $ 1,490,000,000 | |||||
Carrying value of equity | 2,630,189,000 | $ 2,574,661,000 | 2,124,740,000 | $ 2,120,468,000 | $ 2,093,447,000 | $ 2,096,357,000 | ||
CLECO POWER | ||||||||
Goodwill [Line Items] | ||||||||
Impairment of goodwill | $ 0 | |||||||
Equity, fair value | 3,970,000,000 | |||||||
Carrying value of equity | $ 3,400,000,000 | $ 1,722,834,000 | $ 1,671,014,000 | $ 1,594,533,000 | $ 1,562,690,000 | $ 1,549,331,000 | $ 1,550,679,000 | |
Excess of the fair value over the carrying value, percent | 16.80% | |||||||
Excess of the fair value over the carrying value | $ 570,400,000 | |||||||
Accumulated impairment charges | $ 0 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balances, beginning of period | $ 2,574,661 | $ 2,093,447 | $ 2,124,740 | $ 2,096,357 |
Amounts reclassified from accumulated AOCI | ||||
Balances, end of period | 2,630,189 | 2,120,468 | 2,630,189 | 2,120,468 |
TOTAL AOCI | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balances, beginning of period | 1,504 | (2,631) | 1,786 | (2,921) |
Amounts reclassified from accumulated AOCI | ||||
Balances, end of period | 1,467 | (2,370) | 1,467 | (2,370) |
POSTRETIREMENT BENEFIT NET LOSS | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balances, beginning of period | 1,504 | (2,631) | 1,786 | (2,921) |
Amounts reclassified from accumulated AOCI | ||||
Amounts reclassified from AOCI | (37) | 261 | (319) | 551 |
Balances, end of period | 1,467 | (2,370) | 1,467 | (2,370) |
CLECO POWER | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balances, beginning of period | 1,671,014 | 1,549,331 | 1,594,533 | 1,550,679 |
Amounts reclassified from accumulated AOCI | ||||
Balances, end of period | 1,722,834 | 1,562,690 | 1,722,834 | 1,562,690 |
CLECO POWER | TOTAL AOCI | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balances, beginning of period | (12,769) | (13,055) | (13,182) | (13,683) |
Amounts reclassified from accumulated AOCI | ||||
Balances, end of period | (12,476) | (12,631) | (12,476) | (12,631) |
CLECO POWER | POSTRETIREMENT BENEFIT NET LOSS | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balances, beginning of period | (6,775) | (7,877) | (7,060) | (8,377) |
Amounts reclassified from accumulated AOCI | ||||
Amounts reclassified from AOCI | 230 | 312 | 515 | 812 |
Balances, end of period | (6,545) | (7,565) | (6,545) | (7,565) |
CLECO POWER | NET LOSS ON CASH FLOW HEDGES | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balances, beginning of period | (5,994) | (5,178) | (6,122) | (5,306) |
Amounts reclassified from accumulated AOCI | ||||
Amounts reclassified from AOCI | 63 | 112 | 191 | 240 |
Balances, end of period | $ (5,931) | $ (5,066) | $ (5,931) | $ (5,066) |