Cover
Cover - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Jun. 30, 2021 | |
Entity Information [Line Items] | ||
Document Type | 10-K | |
Document Annual Report | true | |
Document Period End Date | Dec. 31, 2021 | |
Current Fiscal Year End Date | --12-31 | |
Document Transition Report | false | |
Entity File Number | 1-15759 | |
Entity Registrant Name | CLECO CORPORATE HOLDINGS LLC | |
Entity Incorporation, State or Country Code | LA | |
Entity Tax Identification Number | 72-1445282 | |
Entity Address, Address Line One | 2030 Donahue Ferry Road | |
Entity Address, City or Town | Pineville | |
Entity Address, State or Province | LA | |
Entity Address, Postal Zip Code | 71360-5226 | |
City Area Code | 318 | |
Local Phone Number | 484-7400 | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | Yes | |
Entity Current Reporting Status | No | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
ICFR Auditor Attestation Flag | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 0 | |
Entity Public Float | $ 0 | |
Entity Central Index Key | 0001089819 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | FY | |
Amendment Flag | false | |
CLECO POWER | ||
Entity Information [Line Items] | ||
Current Fiscal Year End Date | --12-31 | |
Entity File Number | 1-05663 | |
Entity Registrant Name | CLECO POWER LLC | |
Entity Incorporation, State or Country Code | LA | |
Entity Tax Identification Number | 72-0244480 | |
Entity Address, Address Line One | 2030 Donahue Ferry Road | |
Entity Address, City or Town | Pineville | |
Entity Address, State or Province | LA | |
Entity Address, Postal Zip Code | 71360-5226 | |
City Area Code | 318 | |
Local Phone Number | 484-7400 | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | Yes | |
Entity Current Reporting Status | No | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 0 | |
Entity Central Index Key | 0000018672 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2021 | |
Auditor [Line Items] | |
Auditor Name | PricewaterhouseCoopers LLP |
Auditor Firm ID | 238 |
Auditor Location | New Orleans, Louisiana |
Cleco Power | |
Auditor [Line Items] | |
Auditor Name | PricewaterhouseCoopers LLP |
Auditor Firm ID | 238 |
Auditor Location | New Orleans, Louisiana |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Operating revenue | |||
Electric operations | $ 1,590,796 | $ 1,370,893 | $ 1,496,736 |
Other operations | 195,767 | 180,524 | 182,832 |
Affiliate revenue | 0 | 0 | 0 |
Gross operating revenue | 1,786,563 | 1,551,417 | 1,679,568 |
Electric customer credits | (40,634) | (53,271) | (39,963) |
Operating revenue, net | 1,745,929 | 1,498,146 | 1,639,605 |
Operating expenses | |||
Fuel used for electric generation | 349,227 | 326,869 | 466,831 |
Purchased power | 444,905 | 282,255 | 280,991 |
Other operations and maintenance | 304,560 | 299,640 | 291,031 |
Depreciation and amortization | 237,415 | 219,363 | 216,320 |
Taxes other than income taxes | 64,509 | 61,321 | 61,870 |
Merger transaction and commitment costs | 436 | 3,606 | 7,668 |
Total operating expenses | 1,401,052 | 1,193,054 | 1,324,711 |
Operating income | 344,877 | 305,092 | 314,894 |
Interest income | 3,312 | 3,948 | 6,090 |
Allowance for equity funds used during construction | 9,905 | 998 | 15,397 |
Other (expense) income, net | (15,681) | (14,156) | 758 |
Interest charges | |||
Interest charges, net | 137,050 | 139,272 | 147,346 |
Allowance for borrowed funds used during construction | (2,714) | (1,408) | (6,037) |
Total interest charges | 134,336 | 137,864 | 141,309 |
Income before income taxes | 208,077 | 158,018 | 195,830 |
Federal and state income tax expense | 13,111 | 35,718 | 43,165 |
Net income | 194,966 | 122,300 | 152,665 |
CLECO POWER | |||
Operating revenue | |||
Electric operations | 1,202,249 | 1,015,018 | 1,130,928 |
Other operations | 74,625 | 65,237 | 72,833 |
Affiliate revenue | 5,641 | 5,156 | 3,125 |
Gross operating revenue | 1,282,515 | 1,085,411 | 1,206,886 |
Electric customer credits | (40,878) | (53,119) | (38,516) |
Operating revenue, net | 1,241,637 | 1,032,292 | 1,168,370 |
Operating expenses | |||
Fuel used for electric generation | 396,279 | 293,492 | 385,317 |
Purchased power | 194,818 | 100,698 | 111,208 |
Other operations and maintenance | 223,257 | 221,146 | 207,164 |
Depreciation and amortization | 173,498 | 166,987 | 172,471 |
Taxes other than income taxes | 49,598 | 44,631 | 43,742 |
Total operating expenses | 1,037,450 | 826,954 | 919,902 |
Operating income | 204,187 | 205,338 | 248,468 |
Interest income | 3,294 | 3,362 | 4,744 |
Allowance for equity funds used during construction | 9,905 | 998 | 15,397 |
Other (expense) income, net | (19,561) | (12,259) | (3,616) |
Interest charges | |||
Interest charges, net | 75,804 | 75,393 | 77,316 |
Allowance for borrowed funds used during construction | (2,714) | (1,408) | (6,037) |
Total interest charges | 73,090 | 73,985 | 71,279 |
Income before income taxes | 124,735 | 123,454 | 193,714 |
Federal and state income tax expense | (9,353) | 26,799 | 45,452 |
Net income | $ 134,088 | $ 96,655 | $ 148,262 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Net income | $ 194,966 | $ 122,300 | $ 152,665 |
Other comprehensive income, net of tax | |||
Postretirement benefits (loss) gain, net of tax expense (benefit) | 2,167 | (8,283) | (19,299) |
Total other comprehensive income (loss), net of tax | 2,167 | (8,283) | (19,299) |
Comprehensive income, net of tax | 197,133 | 114,017 | 133,366 |
CLECO POWER | |||
Net income | 134,088 | 96,655 | 148,262 |
Other comprehensive income, net of tax | |||
Postretirement benefits (loss) gain, net of tax expense (benefit) | 6,254 | (2,422) | (9,657) |
Amortization of interest rate derivatives to earnings | 316 | 254 | 254 |
Total other comprehensive income (loss), net of tax | 6,570 | (2,168) | (9,403) |
Comprehensive income, net of tax | $ 140,658 | $ 94,487 | $ 138,859 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Tax (expense) benefit of postretirement benefits gain (loss) | $ (394) | $ 2,922 | $ 6,808 |
CLECO POWER | |||
Tax (expense) benefit of postretirement benefits gain (loss) | (2,024) | 855 | 3,408 |
Net tax expense (benefit) of net derivative gain (loss) | $ 28 | $ 90 | $ 90 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Current assets | ||
Cash and cash equivalents | $ 148,563,000 | $ 84,976,000 |
Restricted cash and cash equivalents | 1,674,000 | 4,545,000 |
Customer accounts receivable (less allowance for doubtful accounts) | 91,869,000 | 82,511,000 |
Accounts receivable - affiliate | 3,041,000 | 1,663,000 |
Other accounts receivable | 27,818,000 | 32,076,000 |
Taxes receivable | 564,000 | 0 |
Unbilled revenue | 37,663,000 | 40,127,000 |
Fuel inventory, at average cost | 68,838,000 | 109,494,000 |
Materials and supplies, at average cost | 133,666,000 | 132,449,000 |
Energy risk management assets | 43,479,000 | 13,081,000 |
Accumulated deferred fuel | 56,826,000 | 28,194,000 |
Cash surrender value of company-/trust-owned life insurance policies | 98,576,000 | 89,138,000 |
Prepayments | 13,283,000 | 14,549,000 |
Regulatory assets | 29,261,000 | 21,041,000 |
Other current assets | 12,839,000 | 11,048,000 |
Total current assets | 767,960,000 | 664,892,000 |
Property, plant, and equipment | ||
Property, plant, and equipment | 5,416,722,000 | 5,337,190,000 |
Accumulated depreciation | (700,991,000) | (672,271,000) |
Net property, plant, and equipment | 4,715,731,000 | 4,664,919,000 |
Construction work in progress | 100,163,000 | 124,622,000 |
Total property, plant, and equipment, net | 4,815,894,000 | 4,789,541,000 |
Equity investment in investee | 2,072,000 | 9,072,000 |
Goodwill | 1,490,797,000 | 1,490,797,000 |
Prepayments | 21,598,000 | 23,405,000 |
Operating lease right of use assets | 24,014,000 | 26,172,000 |
Restricted cash and cash equivalents | 745,000 | 744,000 |
Note receivable | 13,744,000 | 14,506,000 |
Regulatory assets | 810,820,000 | 554,609,000 |
Intangible assets | 82,235,000 | 111,731,000 |
Energy risk management assets | 50,962,000 | 323,000 |
Other deferred charges | 44,177,000 | 39,777,000 |
Total assets | 8,125,018,000 | 7,725,569,000 |
Current liabilities | ||
Short-term debt | 0 | 75,000,000 |
Long-term debt and finance leases due within one year | 93,455,000 | 66,682,000 |
Accounts payable | 167,886,000 | 161,357,000 |
Accounts payable - affiliate | 51,297,000 | 41,283,000 |
Customer deposits | 60,852,000 | 58,718,000 |
Provision for rate refund | 5,682,000 | 9,444,000 |
Taxes payable | 6,311,000 | 7,530,000 |
Interest accrued | 15,203,000 | 15,583,000 |
Energy risk management liabilities | 834,000 | 2,453,000 |
Regulatory liabilities | 44,072,000 | 23,509,000 |
Deferred compensation | 14,420,000 | 13,240,000 |
Other current liabilities | 53,150,000 | 49,813,000 |
Total current liabilities | 513,162,000 | 524,612,000 |
Long-term liabilities and deferred credits | ||
Accumulated deferred federal and state income taxes, net | 755,764,000 | 661,376,000 |
Postretirement benefit obligations | 291,606,000 | 314,653,000 |
Regulatory liabilities - deferred taxes, net | 51,472,000 | 157,056,000 |
Deferred lease revenue | 31,451,000 | 40,657,000 |
Intangible liabilities | 18,997,000 | 24,859,000 |
Asset retirement obligations | 69,667,000 | 27,986,000 |
Operating lease liabilities | 21,128,000 | 23,333,000 |
Other deferred credits | 27,582,000 | 28,627,000 |
Total long-term liabilities and deferred credits | 1,267,667,000 | 1,278,547,000 |
Long-term debt and finance leases, net | 3,390,033,000 | 3,165,387,000 |
Total liabilities | 5,170,862,000 | 4,968,546,000 |
Commitments and contingencies (Note 15) | ||
Member’s equity | ||
Member’s equity | 2,954,156,000 | 2,757,023,000 |
Total liabilities and member’s equity | 8,125,018,000 | 7,725,569,000 |
CLECO POWER | ||
Current assets | ||
Cash and cash equivalents | 85,667,000 | 24,846,000 |
Restricted cash and cash equivalents | 1,674,000 | 4,545,000 |
Customer accounts receivable (less allowance for doubtful accounts) | 48,551,000 | 43,852,000 |
Accounts receivable - affiliate | 13,612,000 | 14,605,000 |
Other accounts receivable | 21,931,000 | 27,535,000 |
Unbilled revenue | 37,663,000 | 40,127,000 |
Fuel inventory, at average cost | 46,121,000 | 63,234,000 |
Materials and supplies, at average cost | 101,502,000 | 105,340,000 |
Energy risk management assets | 5,515,000 | 4,337,000 |
Accumulated deferred fuel | 56,826,000 | 28,194,000 |
Cash surrender value of company-/trust-owned life insurance policies | 16,260,000 | 16,184,000 |
Prepayments | 7,784,000 | 7,163,000 |
Regulatory assets | 21,526,000 | 13,305,000 |
Other current assets | 782,000 | 830,000 |
Total current assets | 465,414,000 | 394,097,000 |
Property, plant, and equipment | ||
Property, plant, and equipment | 5,745,489,000 | 5,824,378,000 |
Accumulated depreciation | (1,919,766,000) | (2,067,362,000) |
Net property, plant, and equipment | 3,825,723,000 | 3,757,016,000 |
Construction work in progress | 94,573,000 | 110,613,000 |
Total property, plant, and equipment, net | 3,920,296,000 | 3,867,629,000 |
Equity investment in investee | 2,072,000 | 9,072,000 |
Prepayments | 1,243,000 | 1,496,000 |
Operating lease right of use assets | 23,970,000 | 26,006,000 |
Note receivable | 13,744,000 | 14,506,000 |
Regulatory assets | 680,813,000 | 414,535,000 |
Other deferred charges | 21,949,000 | 38,806,000 |
Total assets | 5,129,501,000 | 4,766,147,000 |
Current liabilities | ||
Short-term debt | 0 | 75,000,000 |
Long-term debt and finance leases due within one year | 25,755,000 | 682,000 |
Accounts payable | 114,493,000 | 106,089,000 |
Accounts payable - affiliate | 69,729,000 | 72,068,000 |
Customer deposits | 60,852,000 | 58,718,000 |
Provision for rate refund | 5,682,000 | 8,630,000 |
Taxes payable | 5,494,000 | 4,778,000 |
Interest accrued | 5,080,000 | 5,357,000 |
Energy risk management liabilities | 597,000 | 1,121,000 |
Regulatory liabilities | 44,072,000 | 23,509,000 |
Other current liabilities | 23,467,000 | 24,754,000 |
Total current liabilities | 355,221,000 | 380,706,000 |
Long-term liabilities and deferred credits | ||
Accumulated deferred federal and state income taxes, net | 707,479,000 | 634,598,000 |
Postretirement benefit obligations | 205,214,000 | 230,825,000 |
Regulatory liabilities - deferred taxes, net | 51,472,000 | 157,056,000 |
Asset retirement obligations | 19,456,000 | 11,364,000 |
Operating lease liabilities | 21,100,000 | 23,295,000 |
Other deferred credits | 20,168,000 | 18,167,000 |
Total long-term liabilities and deferred credits | 1,024,889,000 | 1,075,305,000 |
Long-term debt and finance leases, net | 1,800,854,000 | 1,502,257,000 |
Commitments and contingencies (Note 15) | ||
Member’s equity | ||
Member’s equity | 1,948,537,000 | 1,807,879,000 |
Total capitalization | 3,749,391,000 | 3,310,136,000 |
Total liabilities and member’s equity | $ 5,129,501,000 | $ 4,766,147,000 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Allowance for credit losses | $ 1,302 | $ 2,758 |
CLECO POWER | ||
Allowance for credit losses | $ 1,302 | $ 2,758 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |||
Operating activities | |||||
Net income | $ 194,966 | $ 122,300 | $ 152,665 | ||
Adjustment to reconcile net income to net cash provided by operating activities | |||||
Depreciation and amortization | 273,392 | 249,494 | 245,682 | ||
Provision for credit losses | 5,471 | 5,488 | 2,348 | ||
Unearned compensation expense | 6,678 | 5,715 | 5,409 | ||
Allowance for equity funds used during construction | (9,905) | (998) | (15,397) | ||
(Gain) loss on risk management assets and liabilities, net | (80,314) | (13,261) | 10,180 | ||
Deferred lease revenue | (9,205) | (9,205) | (8,439) | ||
Deferred income taxes | 13,954 | 35,876 | 40,081 | ||
Cash surrender value of company-/trust-owned life insurance | (9,438) | (3,042) | (5,705) | ||
Changes in assets and liabilities | |||||
Accounts receivable | (25,865) | (8,772) | (9,532) | ||
Accounts receivable - affiliate | (1,379) | (621) | (1,041) | ||
Unbilled revenue | 2,464 | (6,920) | 2,107 | ||
Fuel inventory and materials and supplies | 30,254 | (39,602) | 18,463 | ||
Prepayments | (12,097) | (20,117) | (14,479) | ||
Accounts payable | (2,379) | (19,612) | 13,507 | ||
Accounts payable - affiliate | 10,014 | 1,470 | 3,175 | ||
Customer deposits | 11,241 | 6,663 | 5,888 | ||
Provision for merger commitments | (2,620) | 560 | (1,848) | ||
Postretirement benefit obligations | 7,106 | (9,588) | (10,981) | ||
Regulatory assets and liabilities, net | (163,788) | (76,428) | 90 | ||
Deferred fuel recoveries | (29,405) | (4,142) | 11,132 | ||
Other deferred accounts | (13,032) | (17,392) | (7,436) | ||
Taxes accrued | (10,145) | 4,633 | (3,619) | ||
Interest accrued | (380) | (3,417) | 3,173 | ||
Deferred compensation | 1,180 | 1,125 | 1,316 | ||
Other operating | (4,128) | 5,612 | (6,620) | ||
Net cash provided by operating activities | 182,640 | 205,819 | 430,119 | ||
Investing activities | |||||
Additions to property, plant, and equipment | (311,141) | (389,015) | (308,394) | ||
Proceeds from sale of property, plant, and equipment | 1,654 | 451 | 739 | ||
Return of equity investment in investee | 7,000 | 8,000 | 1,100 | ||
Return of investment in company-owned life insurance | 820 | 1,912 | 3,761 | ||
Return of equity investment in tax credit fund | 0 | 0 | 1,625 | ||
Payment to acquire business, net of cash received | 0 | 0 | (814,969) | ||
Other investing | 834 | 745 | 715 | ||
Net cash used in investing activities | (300,833) | (377,907) | (1,115,423) | ||
Financing activities | |||||
Draws on revolving credit facilities | 185,000 | 238,000 | 108,000 | ||
Payments on revolving credit facilities | (260,000) | (163,000) | (108,000) | ||
Issuances of long-term debt | 325,000 | 125,000 | 700,000 | ||
Repayments of long-term debt | (66,000) | (75,055) | (390,571) | ||
Payment of financing costs | (4,408) | (4,570) | (5,959) | ||
Contribution from member | 0 | 0 | 384,900 | ||
Other financing | (682) | (617) | (557) | ||
Net cash provided by financing activities | 178,910 | 119,758 | 687,813 | ||
Net increase (decrease) in cash, cash equivalents, restricted cash, and restricted cash equivalents | 60,717 | (52,330) | 2,509 | ||
Cash, cash equivalents, restricted cash, and restricted cash equivalents at beginning of period | 90,265 | [1] | 142,595 | 140,086 | |
Cash, cash equivalents, restricted cash, and restricted cash equivalents at end of period | 150,982 | [2] | 90,265 | [1] | 142,595 |
Supplementary cash flow information | |||||
Interest paid, net of amount capitalized | 126,061 | 130,544 | 130,988 | ||
Income taxes paid (refunded), net | 72 | (2,777) | (19) | ||
Supplementary non-cash investing and financing activities | |||||
Accrued additions to property, plant, and equipment | 10,369 | 7,943 | 16,124 | ||
CLECO POWER | |||||
Operating activities | |||||
Net income | 134,088 | 96,655 | 148,262 | ||
Adjustment to reconcile net income to net cash provided by operating activities | |||||
Depreciation and amortization | 182,373 | 172,452 | 178,245 | ||
Provision for credit losses | 5,471 | 5,100 | 2,348 | ||
Unearned compensation expense | 1,548 | 1,150 | 974 | ||
Allowance for equity funds used during construction | (9,905) | (998) | (15,397) | ||
Deferred income taxes | (9,211) | 6,165 | 21,799 | ||
Cash surrender value of company-/trust-owned life insurance | (76) | 1,390 | 2,923 | ||
Changes in assets and liabilities | |||||
Accounts receivable | (19,707) | (21,289) | (4,740) | ||
Accounts receivable - affiliate | 5,531 | 3,403 | 728 | ||
Unbilled revenue | 2,464 | (6,920) | 2,107 | ||
Fuel inventory and materials and supplies | 11,767 | (16,609) | 21,121 | ||
Prepayments | (2,370) | (1,414) | 386 | ||
Accounts payable | 1,135 | (27,401) | 14,659 | ||
Accounts payable - affiliate | (2,071) | (276) | 5,912 | ||
Customer deposits | 11,241 | 6,663 | 5,888 | ||
Provision for merger commitments | (2,120) | (1,752) | (1,848) | ||
Postretirement benefit obligations | 5,586 | (12,321) | (10,078) | ||
Regulatory assets and liabilities, net | (165,775) | (78,416) | (1,897) | ||
Deferred fuel recoveries | (29,405) | (4,142) | 11,132 | ||
Other deferred accounts | (6,199) | (17,710) | (6,782) | ||
Taxes accrued | (7,647) | 23,442 | (20,881) | ||
Interest accrued | (277) | (2,614) | (280) | ||
Other operating | (3,923) | 3,221 | (2,097) | ||
Net cash provided by operating activities | 102,518 | 127,779 | 352,484 | ||
Investing activities | |||||
Additions to property, plant, and equipment | (300,957) | (377,044) | (298,565) | ||
Proceeds from sale of property, plant, and equipment | 1,558 | 451 | 739 | ||
Return of equity investment in investee | 7,000 | 8,000 | 1,100 | ||
Return of investment in company-owned life insurance | 820 | 1,912 | 3,761 | ||
Other investing | 834 | 745 | 715 | ||
Net cash used in investing activities | (290,745) | (365,936) | (292,250) | ||
Financing activities | |||||
Draws on revolving credit facilities | 185,000 | 150,000 | 33,000 | ||
Payments on revolving credit facilities | (260,000) | (75,000) | (33,000) | ||
Issuances of long-term debt | 325,000 | 125,000 | 0 | ||
Repayments of long-term debt | 0 | (11,055) | (20,571) | ||
Payment of financing costs | (3,141) | (1,732) | (31) | ||
Distributions to member | 0 | 0 | (20,000) | ||
Other financing | (682) | (617) | (557) | ||
Net cash provided by financing activities | 246,177 | 186,596 | (41,159) | ||
Net increase (decrease) in cash, cash equivalents, restricted cash, and restricted cash equivalents | 57,950 | (51,561) | 19,075 | ||
Cash, cash equivalents, restricted cash, and restricted cash equivalents at beginning of period | 29,391 | [3] | 80,952 | 61,877 | |
Cash, cash equivalents, restricted cash, and restricted cash equivalents at end of period | 87,341 | [4] | 29,391 | [3] | 80,952 |
Supplementary cash flow information | |||||
Interest paid, net of amount capitalized | 68,373 | 67,799 | 67,391 | ||
Supplementary non-cash investing and financing activities | |||||
Accrued additions to property, plant, and equipment | $ 9,696 | $ 6,824 | $ 14,894 | ||
[1] | Includes cash and cash equivalents of $84,976, current restricted cash and cash equivalents of $4,545, and non-current restricted cash and cash equivalents of $744. | ||||
[2] | Includes cash and cash equivalents of $148,563, current restricted cash and cash equivalents of $1,674, and non-current restricted cash and cash equivalents of $745. | ||||
[3] | (1) Includes cash and cash equivalents of $24,846 and current restricted cash and cash equivalents of $4,545. | ||||
[4] | (2) Includes cash and cash equivalents of $85,667, and current restricted cash and cash equivalents of $1,674. |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Cash and cash equivalents | $ 148,563 | $ 84,976 |
Restricted cash and cash equivalents, current | 1,674 | 4,545 |
Restricted cash and cash equivalents, noncurrent | 745 | 744 |
CLECO POWER | ||
Cash and cash equivalents | 85,667 | 24,846 |
Restricted cash and cash equivalents, current | $ 1,674 | $ 4,545 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Member's Equity - USD ($) $ in Thousands | Total | MEMBERSHIP INTEREST | RETAINED EARNINGS | AOCI | CLECO POWER | CLECO POWERMEMBERSHIP INTEREST | CLECO POWERAOCI |
Balance, beginning 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] | |||||||
Contributions from member | 384,900 | 384,900 | |||||
Distributions to member | (20,000) | (20,000) | |||||
Net income | 152,665 | 152,665 | 148,262 | 148,262 | |||
Other comprehensive income (loss), net of tax | (19,299) | (19,299) | (9,403) | (9,403) | |||
Balance, ending at Dec. 31, 2019 | 2,643,006 | 2,454,276 | 206,243 | (17,513) | 1,713,392 | 1,735,977 | (22,585) |
Increase (Decrease) in Equity [Roll Forward] | |||||||
Net income | 122,300 | 122,300 | 96,655 | 96,655 | |||
Other comprehensive income (loss), net of tax | (8,283) | (8,283) | (2,168) | (2,168) | |||
Balance, ending at Dec. 31, 2020 | 2,757,023 | 2,454,276 | 328,543 | (25,796) | 1,807,879 | 1,832,632 | (24,753) |
Increase (Decrease) in Equity [Roll Forward] | |||||||
Net income | 194,966 | 194,966 | 134,088 | 134,088 | |||
Other comprehensive income (loss), net of tax | 2,167 | 2,167 | 6,570 | 6,570 | |||
Balance, ending at Dec. 31, 2021 | $ 2,954,156 | $ 2,454,276 | $ 523,509 | $ (23,629) | $ 1,948,537 | $ 1,966,720 | $ (18,183) |
The Company
The Company | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
The Company | Note 1 — The Company Cleco is composed of the following: • Cleco Power, a regulated electric utility subsidiary, which owns nine generating units with a total rated capacity of 3,035 MW and serves approximately 291,000 customers in Louisiana through its retail business and supplies wholesale power in Louisiana and Mississippi. Cleco Power also owns a 50% interest in Oxbow. • Cleco Cajun, an unregulated electric utility subsidiary, which owns 14 generating units with a total rated capacity of 3,379 MW and supplies wholesale power and capacity in Arkansas, Louisiana, and Texas. Upon the close of the Cleco Cajun Transaction in 2019, Cleco Cajun became a reportable segment of Cleco. For more information on the Cleco Cajun Transaction, see Note 3 — “Business Combinations.” • Cleco’s other operations consist of the following: ◦ Cleco Holdings, a holding company, ◦ Support Group, a shared services subsidiary, and ◦ Diversified Lands, an investment subsidiary. COVID-19 Impacts In March 2020, WHO declared the outbreak of COVID-19 to be a global pandemic, and the U.S. declared a national emergency. In response to these declarations and the rapid spread of COVID-19, federal, state and local governments imposed varying degrees of restrictions on business and social activities to contain COVID-19, including quarantine and “stay-at-home” orders and directives in Cleco’s service territory. State and local authorities also subsequently implemented multistep policies to reopen various sectors of the economy. Guidance was issued to reduce transmission of COVID-19, as well as provide protection against COVID-19. Cleco has modified some of its business operations, as these restrictions have significantly impacted many sectors of the economy. Impacts include record levels of unemployment, with businesses, nonprofit organizations, and governmental entities modifying, curtailing, or ceasing normal operations. Cleco is monitoring the ongoing COVID-19 pandemic and continues to adjust certain business practices to conform to government restrictions and best practices encouraged by the CDC, WHO, OSHA, and other governmental and regulatory authorities. The COVID-19 pandemic may worsen in the U.S. during the upcoming months, which may cause federal, state, and local governments to reconsider restrictions on business and social activities. In the event governments reinstate or increase restrictions, the reopening of the economy may be further curtailed. In March 2020, the LPSC issued an executive order prohibiting the disconnection of utilities for nonpayment. At December 31, 2021, Cleco Power had a regulatory asset of $3.0 million recorded for expenses incurred related to the executive order, as allowed by the LPSC. For more information on the regulatory treatment of the regulatory asset , see Note 6 — “Regulatory Assets and Liabilities — COVID-19 Executive Order.” While Cleco continues to assess the COVID-19 situation, Cleco cannot predict the full impact that COVID-19, or the significant disruption and volatility currently being experienced in the markets, will have on its business, cash flows, liquidity, financial condition, and results of operations, due to numerous uncertainties. However, the ultimate impacts will depend on future developments, including, among others, the ultimate geographic spread of COVID-19, the consequences of governmental and other measures designed to prevent the spread of COVID-19, the availability, timely distribution and acceptance of effective treatments and vaccines, the duration of the pandemic, actions taken by governmental authorities, customers, suppliers and other third parties, workforce availability, and the timing and extent to which normal economic and operating conditions resume. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2 — Summary of Significant Accounting Policies Use of Estimates The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Principles of Consolidation The accompanying consolidated financial statements of Cleco include the accounts of Cleco and its majority-owned subsidiaries after elimination of intercompany accounts and transactions. Cleco’s consolidated financial statements include the financial results of Cleco Cajun from the closing of the Cleco Cajun Transaction on February 4, 2019, through December 31, 2021. For more information on the Cleco Cajun Transaction, see Note 3 — “Business Combinations.” Goodwill Goodwill is the excess of the purchase price (consideration transferred and liabilities assumed) over the estimated fair value of net assets of the acquired business and is not subject to amortization. Goodwill is assessed as of August 1 of each year or more often if an event occurs or circumstances change that would indicate the carrying amount may be impaired. For more information on goodwill, see Note 17 — “Intangible Assets, Intangible Liabilities, and Goodwill.” Intangible Assets and Liabilities At December 31, 2021, intangible assets and liabilities included fair value adjustments for long-term wholesale power supply agreements. Intangible liabilities also included a fair value adjustment for the LTSA assumed for maintenance services related to the Cottonwood Plant. These intangible assets and liabilities are being amortized over their estimated useful lives in a manner that best reflects the economic impact derived from such assets and liabilities. Prior to being fully amortized in March 2020, intangible assets also included Cleco Katrina/Rita’s right to bill and collect storm recovery charges from Cleco Power’s customers. During the third quarter of 2021, an impairment was recognized on the intangible asset related to Cleco Power’s trade name, and the carrying value of the intangible asset was reduced to zero. Impairment is tested if there are events or circumstances that indicate that an impairment analysis should be performed. If such an event or circumstance occurs, intangible impairment testing is performed prior to goodwill impairment testing. Impairment is calculated as the excess of the asset and liabilities’ respective carrying amounts over their respective fair values. For more information on intangible assets and liabilities, see Note 17 — “Intangible Assets, Intangible Liabilities, and Goodwill.” Statements of Cash Flows Cleco and Cleco Power’s Consolidated Statements of Cash Flows are prepared using the indirect method. This method requires adjusting net income to remove the effects of all deferrals and accruals of operating cash receipts and payments and to remove items whose cash effects are related to investing and financing cash flows. Derivatives meeting the Regulation Cleco Power is subject to regulation by FERC and the LPSC. Cleco Cajun is subject to regulation by FERC. Cleco complies with the accounting policies and practices prescribed by its regulatory commissions. Cleco Power’s retail rates are regulated by the LPSC. Cleco and Cleco Cajun’s rates for transmission services are regulated by FERC. Rates for wholesale power sales are based on market-based rates, pending FERC review of Cleco’s generation market power analysis. Cleco Power must evaluate its various transactions related to regulatory orders and accounting guidance to ensure the appropriate timing of revenue recognition, the evaluation of cost deferral, and the recoverability of certain assets and refund of certain liabilities. Cleco Power capitalizes or defers certain costs for recovery from its customers and recognizes a liability for amounts expected to be returned to its 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. Regulatory assets and liabilities are amortized consistent with the treatment in the ratemaking process. Pursuant to this regulatory process, Cleco has recorded regulatory assets and liabilities. Any future plan adopted by the LPSC for purposes of transitioning utilities from LPSC regulation to retail competition may affect the regulatory assets and liabilities recorded by Cleco if the criteria for the application of the authoritative guidelines for industry regulated operations cannot continue to be met. At this time, Cleco cannot predict whether any legislation or regulation affecting Cleco will be enacted or adopted and, if enacted, what form such legislation or regulation may take. For more information regarding the regulatory assets and liabilities recorded by Cleco Power, see Note 6 — “Regulatory Assets and Liabilities.” AROs Cleco and Cleco Power recognize an ARO when there is a legal obligation under existing or enacted law, statute, written or oral contract, or by legal construction under the doctrine of promissory estoppel to incur costs to remove an asset when the asset is retired. These guidelines also require an ARO, which is conditional on a future event, to be recorded even if the event has not yet occurred. Cleco and Cleco Power recognize AROs at the present value of the projected liability in the period in which it is incurred, if a reasonable estimate of fair value can be made. The liability is accreted to its present value each accounting period. Cleco Power defers this accretion as a regulatory asset based on its determination that these costs can be collected from customers. Concurrent with the recognition of the liability, Cleco and Cleco Power capitalize these costs to the related property, plant, and equipment asset. These capitalized costs are depreciated over the same period as the related property asset. Cleco Power also defers the current depreciation of the asset retirement cost as a regulatory asset. For more information on the regulatory treatment of Cleco Power’s AROs, see Note 6 — “Regulatory Assets and Liabilities — AROs.” For more information on Cleco’s ARO activity, see Note 15 — “Litigation, Other Commitments and Property, Plant, and Equipment Property, plant, and equipment consists primarily of utility generation and energy transmission and distribution assets. Assets utilized primarily for retail and wholesale operations and electric transmission and distribution are stated at the cost of construction, which includes certain materials, labor, payroll taxes and benefits, administrative and general costs, and the estimated cost of funds used during construction. Jointly owned assets are reflected in property, plant, and equipment at Cleco Power’s and Cleco Cajun’s share of the cost to construct or purchase the respective assets. For information on jointly owned assets, see Note 7 — “Jointly Owned Generation Units.” At the date of the 2016 Merger, Cleco’s gross balance of fixed depreciable assets was adjusted to be net of accumulated depreciation, as no accumulated depreciation existed on such date. Since pushdown accounting was not elected at the Cleco Power level, Cleco Power retained its accumulated depreciation. Cleco’s cost of improvements to property, plant, and equipment is capitalized. Costs associated with repairs and major maintenance projects are expensed as incurred. Cleco capitalizes the cost to purchase or develop software for internal use. On August 1, 2019, Cleco and Cleco Power began amortizing the computer software related to the START project. The amounts of unamortized computer software costs on Cleco’s Consolidated Balance Sheets at December 31, 2021, and 2020 were $172.7 million and $178.1 million, respectively. The amounts of unamortized computer software costs on Cleco Power’s Consolidated Balance Sheets at December 31, 2021, and 2020 were $167.4 million and $177.0 million, respectively. Amortization of capitalized computer software costs charged to expense in Cleco and Cleco Power’s Consolidated Statements of Income for the years ending December 31, 2021, 2020, and 2019 is shown in the following tables: Cleco FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2021 2020 2019 Amortization $ 11,878 $ 11,015 $ 4,917 Cleco Power FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2021 2020 2019 Amortization $ 11,268 $ 10,379 $ 4,321 Upon retirement or disposition, the cost of Cleco Power’s depreciable plant and the cost of removal, net of salvage value, are charged to accumulated depreciation. For Cleco’s other subsidiaries, upon disposition or retirement of depreciable assets, the difference between the net book value of the property and any proceeds received for the property is recorded as a gain or loss on asset disposition on Cleco’s Consolidated Statements of Income. Any cost incurred to remove the asset is charged to expense. Cleco Cajun’s depreciation on property, plant, and equipment is calculated primarily on a composite basis over the useful lives of the assets. Depreciation on all other property, plant, and equipment is calculated primarily on a straight-line basis over the useful lives of the assets. The following table presents the useful lives of depreciable assets for Cleco and Cleco Power: CATEGORY (YEARS) CLECO CLECO POWER Utility Plants Generation 10 – 95 10 – 95 Distribution 15 – 50 15 – 50 Transmission 5 – 55 5 – 55 Other utility plant 5 – 45 5 – 45 Other property, plant, and equipment 5 – 45 5 – 45 At December 31, 2021, and 2020, Cleco and Cleco Power’s property, plant, and equipment consisted of the following: Cleco AT DEC. 31, (THOUSANDS) 2021 2020 Utility plants Generation $ 2,704,536 $ 2,915,349 Distribution 1,494,411 1,357,714 Transmission 797,694 667,398 Other utility plant 412,577 391,057 Other property, plant, and equipment 7,504 5,672 Total property, plant, and equipment 5,416,722 5,337,190 Accumulated depreciation (700,991) (672,271) Net property, plant, and equipment $ 4,715,731 $ 4,664,919 Cleco Power AT DEC. 31, (THOUSANDS) 2021 2020 Regulated utility plants Generation $ 2,314,285 $ 2,673,271 Distribution 1,933,389 1,796,841 Transmission 988,122 857,833 Other utility plant 509,693 496,433 Total property, plant, and equipment 5,745,489 5,824,378 Accumulated depreciation (1,919,766) (2,067,362) Net property, plant, and equipment $ 3,825,723 $ 3,757,016 During 2021, Cleco Power’s regulated utility property, plant, and equipment decreased primarily due to the retirement of the Dolet Hills Power Station. This decrease was partially offset by increased costs related to transmission projects, storm restoration, and other capital projects. Cleco Power’s property, plant, and equipment includes plant acquisition costs related primarily to the acquisition of Acadia Unit 1 in 2010. The plant acquisition adjustment and accumulated amortization are reported in Property, plant, and equipment and Accumulated depreciation, respectively, on Cleco and Cleco Power’s Consolidated Balance Sheets at December 31, 2021, and 2020 are shown in the following tables: Cleco AT DEC. 31, (THOUSANDS) 2021 2020 Acadia Unit 1 Plant acquisition adjustment $ 76,116 $ 76,116 Accumulated amortization (18,201) (15,018) Net plant acquisition adjustment $ 57,915 $ 61,098 Cleco Power AT DEC. 31, (THOUSANDS) 2021 2020 Acadia Unit 1 Plant acquisition adjustment $ 95,578 $ 95,578 Accumulated amortization (37,663) (34,480) Net plant acquisition adjustment $ 57,915 $ 61,098 Deferred Project Costs Cleco Power defers costs related to the initial stage of a construction project during which time the feasibility of the construction of property, plant, and equipment is being investigated. At December 31, 2021, and 2020, Cleco Power had deferred $4.5 million and $2.5 million, respectively, for projects that are in the initial stages of development. These amounts are classified as Other deferred charges on Cleco Power’s Consolidated Balance Sheets. Fuel Inventory and Materials and Supplies At December 31, 2021, fuel inventory consisted primarily of petroleum coke, coal, limestone, and natural gas used to generate electricity. Prior to the retirement of the Dolet Hills Power Station on December 31, 2021, fuel inventory also consisted of lignite. Materials and supplies consists of transmission and distribution line construction and repair materials. It also consists of generating station and transmission and distribution substation repair materials. Reserves for Credit Losses Customer accounts receivable are recorded at the invoiced amount and do not bear interest. Customer accounts receivables are generally considered to become past due 20 days after the billing date. Cleco recognizes write-offs within the allowance for credit losses once all recovery methods have been exhausted. It is the policy of management to review accounts receivable and unbilled revenue monthly using a reserve matrix based on historical bad debt write-offs as well as current and forecasted economic conditions to establish a credit loss estimate. Management’s historical credit loss analysis included periods of economic recessions, natural disasters, and temporary changes to collection policies. Due to the critical necessity of electricity, none of these past events have significantly impacted Cleco’s credit loss rates. Although Cleco’s service territory experienced a recent economic decline during 2021 and 2020 primarily related to the COVID-19 pandemic and weather-related events, the economic outlook at December 31, 2021, was still within range of its historical credit loss analysis. The table below presents the changes in the allowance for credit losses by receivable for Cleco and Cleco Power: Cleco (THOUSANDS) ACCOUNTS OTHER* TOTAL Balances, Dec. 31, 2019 $ 3,005 $ 1,250 $ 4,255 CECL adoption 71 — 71 Current period provision 5,029 388 5,417 Charge-offs (6,423) — (6,423) Recovery 1,076 — 1,076 Balances, Dec. 31, 2020 2,758 1,638 4,396 Current period provision 4,003 — 4,003 Charge-offs (6,919) — (6,919) Recovery 1,460 — 1,460 Balances, Dec. 31, 2021 $ 1,302 $ 1,638 $ 2,940 * Loan held at Diversified Lands that was fully reserved for at December 31, 2020. Cleco Power (THOUSANDS) ACCOUNTS Balances, Dec. 31, 2019 $ 3,005 CECL adoption 71 Current period provision 5,029 Charge-offs (6,423) Recovery 1,076 Balances, Dec. 31, 2020 2,758 Current period provision 4,003 Charge-offs (6,919) Recovery 1,460 Balances, Dec. 31, 2021 $ 1,302 Other Reserves Cleco maintains property insurance on generating stations, buildings and contents, and substations. Cleco is self-insured for any damage to its power lines. To mitigate the exposure to potential financial loss for damage to lines, Cleco Power maintains an LPSC-approved storm reserve. Cleco also maintains liability and workers’ compensation insurance to mitigate financial losses due to injuries and damages to the property of others. Cleco’s insurance covers claims that exceed certain self-insured limits. For claims within certain self-insured limits, Cleco maintains reserves. At December 31, 2021, and 2020, the general liability and workers compensation reserves together were $6.0 million and $4.5 million, respectively. Additionally, Cleco maintains directors and officers insurance to protect managers from claims which may arise from their decisions and actions taken within the scope of their regular duties. 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 company purposes. Cleco and Cleco Power’s restricted cash and cash equivalents consisted of the following: Cleco AT DEC. 31, (THOUSANDS) 2021 2020 Current Cleco Katrina/Rita’s storm recovery surcharge $ 1,674 $ 2,626 Cleco Power’s charitable contributions — 1,718 Cleco Power’s rate credit escrow — 201 Total current 1,674 4,545 Non-current Diversified Lands’ mitigation escrow 22 22 Cleco Cajun’s defense fund 723 722 Total non-current 745 744 Total restricted cash and cash equivalents $ 2,419 $ 5,289 Cleco Power AT DEC. 31, (THOUSANDS) 2021 2020 Current Cleco Katrina/Rita’s storm recovery surcharges $ 1,674 $ 2,626 Charitable contributions — 1,718 Rate credit escrow — 201 Total restricted cash and cash equivalents $ 1,674 $ 4,545 Prior to the repayment of the storm recovery bonds at their scheduled maturity in March 2020, Cleco Katrina/Rita had the right to bill and collect storm restoration costs from Cleco Power’s customers. As cash was collected, it was restricted for payment of administration fees, interest, and principal on the storm recovery bonds. In April 2021, after payments for all final administrative and winding up activities of Cleco Katrina/Rita were made, Cleco Katrina/Rita transferred its remaining restricted cash to Cleco Power to be used to benefit retail customers in a manner and timing as approved by the LPSC. Equity Investments Cleco and Cleco Power account for investments in unconsolidated affiliated companies using the equity method of accounting. The amounts reported on Cleco and Cleco Power’s Consolidated Balance Sheets represent assets contributed by Cleco or Cleco Power, plus their share of the net income of the affiliate, less any distributions of earnings (dividends) received from the affiliate. The revenues and expenses (excluding income taxes) of these affiliates are netted and reported on one line item as equity income from investees on Cleco and Cleco Power’s Consolidated Statements of Income. Cleco evaluates for impairments of equity method investments at each balance sheet date to determine if events and circumstances have occurred that indicate a possible other-than-temporary decline in the fair value of the investment and the possible inability to recover the carrying value through operations. Cleco uses estimates of the future cash flows from the investee and observable market transactions in order to calculate fair value and recoverability. An impairment is recognized when an other-than-temporary decline in market value occurs and recovery of the carrying value is not Income Taxes Cleco accounts for income taxes under the asset and liability method. Cleco provides for federal and state income taxes currently payable, as well as for those deferred due to timing differences between reporting income and expenses for financial statement purposes versus tax purposes. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted income tax rates expected to be applied to taxable income in the years in which those temporary differences are expected to be recovered or settled. Deferred tax assets and liabilities are classified as non-current on Cleco and Cleco Power’s Consolidated Balance Sheets. Cleco’s income tax expense and related regulatory assets and liabilities could be affected by changes in its assumptions and estimates and by ultimate resolution of assumptions and estimates with taxing authorities. Cleco Group files a federal income tax return for all wholly owned subsidiaries. Cleco Power computes its federal and state income taxes as if it were a stand-alone taxpayer. The LPSC generally requires Cleco Power to flow the effects of state income taxes to customers. For more information on income taxes, see Note 11 — “Income Taxes.” Investment Tax Credits Investment tax credits, which were deferred for financial statement purposes, are amortized as a reduction to income tax expense over the estimated service lives of the properties that gave rise to the credits. Debt Issuance Costs, Premiums, and Discounts Issuance costs, premiums, and discounts applicable to debt securities are amortized to interest expense ratably over the lives of the related issuances. Expenses and call premiums related to refinanced Cleco Power debt are deferred and amortized over the life of the new issuance. Debt issuance costs, premiums, and discounts are presented as a direct deduction from the carrying value of the related debt liability. Revenue and Fuel Costs Utility Revenue Revenue from sales of electricity is recognized when the service is provided. The costs of fuel and purchased power used for Cleco Power’s retail customers currently are recovered from its customers through Cleco Power’s FAC. These costs are subject to audit and final determination by regulators. Sales taxes and pass-through fees collected on the sale of electricity are not recorded in utility revenue. Unbilled Revenue Cleco Power accrues estimated revenue monthly for energy used by customers but not yet billed. The monthly estimated unbilled revenue amounts are recorded as unbilled revenue and a receivable. Cleco Power uses actual customer energy consumption data available from AMI to calculate unbilled revenues. Other Operations Revenue Other operations revenue is recognized at the time products or services are provided to and accepted by customers, and collectability is reasonably assured. Sales and Use Taxes Cleco collects a sales and use tax on the sale of electricity that subsequently is remitted to the state in accordance with state law. These amounts are not recorded as income or expense on Cleco’s Consolidated Statements of Income but are reflected at gross amounts on Cleco’s Consolidated Balance Sheets as a receivable until the tax is collected and as a payable until the liability is paid. Cleco currently has no sales tax collected from customers reflected on its income statement. Franchise Fees Cleco Power collects a consumer fee for one of its franchise agreements. This fee is not recorded on Cleco and Cleco Power’s Consolidated Statements of Income as revenue and expense, but is reflected at gross amounts on Cleco and Cleco Power’s Consolidated Balance Sheets as a receivable until it is collected and as a payable until the liability is paid. AFUDC The capitalization of AFUDC by Cleco Power is a utility accounting practice prescribed by FERC and the LPSC. AFUDC represents the estimated debt and equity costs of capital funds that are necessary to finance construction of new and existing facilities. While cash is not realized currently from such allowance, AFUDC increases the revenue requirement over the same life of the plant through a higher rate base and higher depreciation. Under regulatory practices, a return on and recovery of AFUDC is permitted in setting rates charged for utility services. For 2020, Cleco Power’s average short-term debt balance exceeded its average construction work-in-progress balance; however, Cleco Power elected the FERC capital structure waiver contained in FERC Docket Number AC20-127-000. The composite AFUDC rate, including borrowed and other funds, was 10.05% on a pretax basis (7.81% net of tax) for 2021, 10.14% on a pretax basis (7.96% net of tax) for 2020 and 10.71% on a pretax basis (8.37% net of tax) for 2019. For more information on the regulatory treatment of the retail portion of AFUDC calculated under the FERC waiver, see Note 6 — “Regulatory Assets and Liabilities — AFUDC.” 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 8 — “Fair Value Accounting and Financial Instruments.” 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 has natural gas commodity contracts that are fixed price physical forwards and financial swaps. Management did not elect to apply hedge accounting to these contracts as allowed 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 are also recorded on the income statement as a component of fuel expense. For more information on FTRs and other commodity derivatives, see Note 8 — “Fair Value Accounting and Financial Instruments — 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. Accounting for MISO Transactions Cleco Power and Cleco Cajun participate in MISO’s Energy and Operating Reserve market where sales and purchases are netted hourly. If the hourly activity nets to sales, the result is reported in Electric operations on Cleco and Cleco Power’s Consolidated Statements of Income. If the hourly activity nets to purchases, the result is reported in Purchased power on Cleco and Cleco Power’s Consolidated Statements of Income. Leases Cleco determines if a contract is a lease at its inception. 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. 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. For more information on leases, see Note 4 — “Leases.” Recent Authoritative Guidance In March 2020, FASB issued optional guidance, for a limited period of time, that applies to entities meeting certain criteria for the contract modifications or hedging relationships that are referencing LIBOR or another reference rate expected to be discontinued due to reference rate reform. The guidance includes a general principal that permits an entity to consider contract modifications due to reference rate reform to be an event that does not require contract remeasurement at the modification date or reassessment of a previous accounting determination. The optional guidance may be applied from March 12, 2020, through December 31, 2022. Management has identified contracts with reference rates that will be discontinued, primarily related to long-term debt obligations. Certain debt contracts have been amended to include fallback provisions that provide substitute reference rates upon the discontinuance of LIBOR, among other amendments. Management will continue to modify contracts to include similar fallback language and expects to apply this guidance on an ongoing basis. Management does not expect this guidance to have a significant impact on the Registrants’ results of operations, financial condition, or cash flows. In December 2019, FASB amended the guidance for accounting for income taxes. The amendments simplify the accounting for income taxes by removing certain exceptions to general principles included in the accounting guidance. Effective January 1, 2021, Cleco adopted the amended accounting guidance. Adoption of this guidance did not materially impact the Registrants’ results of operations, financial condition, or cash flows. |
Business Combinations
Business Combinations | 12 Months Ended |
Dec. 31, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Business Combinations | Note 3 — Business Combinations On February 4, 2019, Cleco Cajun acquired from NRG Energy all of the outstanding membership interests in South Central Generating. This acquisition enabled Cleco to significantly increase the scale of its operations in Louisiana and included the following: • 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, • 75% 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 electric cooperatives, five 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. Since the Cleco Cajun Transaction on February 4, 2019, three of the five contracts with municipalities have expired and were not renewed. Also, the Sterlington generating station was retired in December 2020. 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, 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 until 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; and a $4.0 million annual reduction to Cleco Power’s retail customer rates, which ended on June 30, 2021, and is now incorporated into Cleco Power’s new retail rate plan that became effective on July 1, 2021. For more information about the new retail rate plan and debt commitments, see Note 13 — “Regulation and Rates — FRP” and Note 9 — “Debt,” 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. As part of the Cleco Cajun Transaction, Cleco Cajun assumed a $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 purchase price allocation and included in other current assets on Cleco’s Consolidated Balance Sheets. For more information on litigation involving South Central Generating, see Note 15 — “Litigation, Other Commitments and Contingencies, and Disclosures about Guarantees — South Central Generating.” 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 $1.00 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 to partially finance the transaction. Both loan agreements contained 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 the private placement of $300.0 million aggregate principal amount of senior notes. On July 14, 2020, Cleco Holdings completed an exchange offer for its outstanding 3.375% senior notes, which were not registered under the Securities Act of 1933, as amended, for an equal principal amount of newly issued 3.375% senior notes due on September 15, 2029, that were registered. Cleco Holdings did not receive any proceeds from the exchange offer. 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, and 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. 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 purchase price allocation: Purchase Price Allocation (THOUSANDS) 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, fair value adjustments were recorded on Cleco’s Consolidated Balance Sheet for the difference between the contract and market price of acquired long-term wholesale power agreements. The fair value of intangible assets of $98.9 million and intangible liabilities of $14.2 million was reflected in the 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 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 fair value of the LTSA was estimated by applying the income method. An intangible liability of $24.1 million was reflected in the purchase price allocation and is being amortized using the straight-line method over the estimated remaining life of the LTSA at the time it was acquired. The amortization is included as a reduction to the LTSA prepayments on Cleco’s Consolidated Balance Sheet. On the date of the acquisition, the 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 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 Consolidated Statement of Income. 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. As of December 31, 2019, Cleco completed its evaluation and determination of the fair value of assets acquired and liabilities assumed in the Cleco Cajun Transaction. There were no adjustments to those amounts during the third and fourth quarters of 2019. 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 year ended December 31, 2019, was adjusted to exclude nonrecurring transaction-related expenses of $4.7 million. 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 YEAR ENDED DEC. 31, (THOUSANDS) 2019 Operating revenue, net $ 1,660,362 Net income $ 154,898 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Leases | Note 4 — Leases Cleco maintains operating and finance leases in its ordinary course of business activities. Operating Leases Cleco Power leases utility systems from two municipalities and one non-municipal public body. One municipal lease has a 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. During 2021, Cleco Power renewed its lease for 113 railcars for coal transportation, which expires on March 31, 2024. 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 December 31, 2021: (THOUSANDS) CLECO POWER CLECO Years ending Dec. 31, 2022 $ 3,552 $ 3,584 2023 3,398 3,426 2024 3,262 3,282 2025 3,216 3,216 2026 3,216 3,216 Thereafter 12,186 12,186 Total minimum lease payments 28,830 28,910 Less: amount representing interest 4,898 4,928 Present value of net minimum operating lease payments $ 23,932 $ 23,982 Current liabilities $ 2,832 $ 2,854 Non-current liabilities $ 21,100 $ 21,128 Finance Lease In April 2018, Cleco Power entered into an agreement with Savage Inland Marine for continued use of 42 barges used to transport petroleum coke to Madison Unit 3 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 each of the years ended December 31, 2021, 2020, and 2019, Cleco Power paid $2.2 million in lease payments. For the years ended December 31, 2021, 2020, and 2019, Cleco Power received $0.2 million, $0.8 million, and $1.7 million, respectively, of revenue from subleases. The following is an analysis of the leased property under the finance lease: (THOUSANDS) AT DEC. 31, 2021 AT DEC. 31, 2020 Barges $ 16,800 $ 16,800 Accumulated amortization (4,200) (3,080) Net finance lease asset $ 12,600 $ 13,720 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, 2021: (THOUSANDS) Years ending Dec. 31, 2022 $ 2,203 2023 2,203 2024 2,203 2025 2,203 2026 2,203 Thereafter 13,269 Total minimum lease payments 24,284 Less: amount representing interest 9,722 Present value of net minimum finance lease payments $ 14,562 Current liabilities $ 755 Non-current liabilities $ 13,807 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 years ended December 31, 2021, and 2020: Cleco FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2021 2020 Finance lease cost Amortization of ROU assets $ 1,120 $ 1,120 Interest on lease liabilities 1,521 1,587 Operating lease cost 3,985 4,576 Variable lease cost 385 301 Total lease cost $ 7,011 $ 7,584 Cleco Power FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2021 2020 Finance lease cost Amortization of ROU assets $ 1,120 $ 1,120 Interest on lease liabilities 1,521 1,587 Operating lease cost 3,845 4,191 Variable lease cost 385 301 Total lease cost $ 6,871 $ 7,199 The following tables present additional information related to Cleco and Cleco Power’s operating and finance leases as of and for the years ended December 31, 2021, and 2020: Cleco AT DEC. 31, (THOUSANDS) BALANCE SHEET LINE ITEM 2021 2020 Supplemental balance sheet information ROU assets Operating Operating lease right of use assets $ 24,014 $ 26,172 Finance Property, plant, and equipment 12,600 13,720 Total ROU assets $ 36,614 $ 39,892 Current lease liabilities Operating Other current liabilities $ 2,854 $ 2,802 Finance Long-term debt and finance leases due within one year 755 682 Non-current lease liabilities Operating Operating lease liabilities 21,128 23,333 Finance Long-term debt and finance leases, net 13,807 14,562 Total lease liabilities $ 38,544 $ 41,379 Cleco Power AT DEC. 31, (THOUSANDS) BALANCE SHEET LINE ITEM 2021 2020 Supplemental balance sheet information ROU assets Operating Operating lease right of use assets $ 23,970 $ 26,006 Finance Property, plant, and equipment 12,600 13,720 Total ROU assets $ 36,570 $ 39,726 Current lease liabilities Operating Other current liabilities $ 2,832 $ 2,672 Finance Long-term debt and finance leases due within one year 755 682 Non-current lease liabilities Operating Operating lease liabilities 21,100 23,295 Finance Long-term debt and finance leases, net 13,807 14,562 Total lease liabilities $ 38,494 $ 41,211 Cleco FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2021 2020 Supplemental cash flow information Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 3,938 $ 4,504 Operating cash flows from finance leases $ 1,521 $ 1,587 Financing cash flows from finance leases $ 682 $ 617 Cleco Power FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2021 2020 Supplemental cash flow information Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 3,800 $ 4,120 Operating cash flows from finance leases $ 1,521 $ 1,587 Financing cash flows from finance leases $ 682 $ 617 Cleco AT DEC. 31, (THOUSANDS) 2021 2020 Other supplemental information Operating leases Weighted-average remaining lease term 9.0 years 9.9 years Weighted-average discount rate 4.30 % 4.31 % Finance leases Weighted-average remaining lease term 11.3 years 12.3 years Weighted-average discount rate 10.18 % 10.18 % Cleco Power AT DEC. 31, 2021 (THOUSANDS) 2021 2020 Other supplemental information Operating leases Weighted-average remaining lease term 9.0 years 10.0 years Weighted-average discount rate 4.30 % 4.31 % Finance leases Weighted-average remaining lease term 11.3 years 12.3 years Weighted-average discount rate 10.18 % 10.18 % 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 Cottonwood 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 subsidiary with lessor arrangements. Cleco Cajun’s lease income under the Cottonwood Sale Leaseback is included in Other operations within Cleco’s Consolidated Statement of Income. Cleco Cajun’s lease income under the Cottonwood Sale Leaseback for the years ended December 31, 2021, and 2020 was as follows: FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2021 2020 Fixed payments $ 40,000 $ 40,000 Variable payments 18,226 20,883 Amortization of deferred lease liability (1) 9,205 9,205 Total lease income $ 67,431 $ 70,088 (1) Consists of amortization of the deferred lease revenue resulting from the 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) Years ending Dec. 31, 2022 $ 40,000 2023 40,000 2024 40,000 2025 16,667 Total payments $ 136,667 Depreciation expense associated with Cleco’s property under the Cottonwood Sale Leaseback for the years ended December 31, 2021, 2020, and 2019, was $32.0 million, $29.3 million, and $22.7 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: AT DEC. 31, (THOUSANDS) 2021 2020 Property, plant, and equipment $ 552,659 $ 552,659 Accumulated depreciation (84,065) (52,053) Net property, plant, and equipment $ 468,594 $ 500,606 |
Leases | Note 4 — Leases Cleco maintains operating and finance leases in its ordinary course of business activities. Operating Leases Cleco Power leases utility systems from two municipalities and one non-municipal public body. One municipal lease has a 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. During 2021, Cleco Power renewed its lease for 113 railcars for coal transportation, which expires on March 31, 2024. 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 December 31, 2021: (THOUSANDS) CLECO POWER CLECO Years ending Dec. 31, 2022 $ 3,552 $ 3,584 2023 3,398 3,426 2024 3,262 3,282 2025 3,216 3,216 2026 3,216 3,216 Thereafter 12,186 12,186 Total minimum lease payments 28,830 28,910 Less: amount representing interest 4,898 4,928 Present value of net minimum operating lease payments $ 23,932 $ 23,982 Current liabilities $ 2,832 $ 2,854 Non-current liabilities $ 21,100 $ 21,128 Finance Lease In April 2018, Cleco Power entered into an agreement with Savage Inland Marine for continued use of 42 barges used to transport petroleum coke to Madison Unit 3 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 each of the years ended December 31, 2021, 2020, and 2019, Cleco Power paid $2.2 million in lease payments. For the years ended December 31, 2021, 2020, and 2019, Cleco Power received $0.2 million, $0.8 million, and $1.7 million, respectively, of revenue from subleases. The following is an analysis of the leased property under the finance lease: (THOUSANDS) AT DEC. 31, 2021 AT DEC. 31, 2020 Barges $ 16,800 $ 16,800 Accumulated amortization (4,200) (3,080) Net finance lease asset $ 12,600 $ 13,720 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, 2021: (THOUSANDS) Years ending Dec. 31, 2022 $ 2,203 2023 2,203 2024 2,203 2025 2,203 2026 2,203 Thereafter 13,269 Total minimum lease payments 24,284 Less: amount representing interest 9,722 Present value of net minimum finance lease payments $ 14,562 Current liabilities $ 755 Non-current liabilities $ 13,807 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 years ended December 31, 2021, and 2020: Cleco FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2021 2020 Finance lease cost Amortization of ROU assets $ 1,120 $ 1,120 Interest on lease liabilities 1,521 1,587 Operating lease cost 3,985 4,576 Variable lease cost 385 301 Total lease cost $ 7,011 $ 7,584 Cleco Power FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2021 2020 Finance lease cost Amortization of ROU assets $ 1,120 $ 1,120 Interest on lease liabilities 1,521 1,587 Operating lease cost 3,845 4,191 Variable lease cost 385 301 Total lease cost $ 6,871 $ 7,199 The following tables present additional information related to Cleco and Cleco Power’s operating and finance leases as of and for the years ended December 31, 2021, and 2020: Cleco AT DEC. 31, (THOUSANDS) BALANCE SHEET LINE ITEM 2021 2020 Supplemental balance sheet information ROU assets Operating Operating lease right of use assets $ 24,014 $ 26,172 Finance Property, plant, and equipment 12,600 13,720 Total ROU assets $ 36,614 $ 39,892 Current lease liabilities Operating Other current liabilities $ 2,854 $ 2,802 Finance Long-term debt and finance leases due within one year 755 682 Non-current lease liabilities Operating Operating lease liabilities 21,128 23,333 Finance Long-term debt and finance leases, net 13,807 14,562 Total lease liabilities $ 38,544 $ 41,379 Cleco Power AT DEC. 31, (THOUSANDS) BALANCE SHEET LINE ITEM 2021 2020 Supplemental balance sheet information ROU assets Operating Operating lease right of use assets $ 23,970 $ 26,006 Finance Property, plant, and equipment 12,600 13,720 Total ROU assets $ 36,570 $ 39,726 Current lease liabilities Operating Other current liabilities $ 2,832 $ 2,672 Finance Long-term debt and finance leases due within one year 755 682 Non-current lease liabilities Operating Operating lease liabilities 21,100 23,295 Finance Long-term debt and finance leases, net 13,807 14,562 Total lease liabilities $ 38,494 $ 41,211 Cleco FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2021 2020 Supplemental cash flow information Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 3,938 $ 4,504 Operating cash flows from finance leases $ 1,521 $ 1,587 Financing cash flows from finance leases $ 682 $ 617 Cleco Power FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2021 2020 Supplemental cash flow information Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 3,800 $ 4,120 Operating cash flows from finance leases $ 1,521 $ 1,587 Financing cash flows from finance leases $ 682 $ 617 Cleco AT DEC. 31, (THOUSANDS) 2021 2020 Other supplemental information Operating leases Weighted-average remaining lease term 9.0 years 9.9 years Weighted-average discount rate 4.30 % 4.31 % Finance leases Weighted-average remaining lease term 11.3 years 12.3 years Weighted-average discount rate 10.18 % 10.18 % Cleco Power AT DEC. 31, 2021 (THOUSANDS) 2021 2020 Other supplemental information Operating leases Weighted-average remaining lease term 9.0 years 10.0 years Weighted-average discount rate 4.30 % 4.31 % Finance leases Weighted-average remaining lease term 11.3 years 12.3 years Weighted-average discount rate 10.18 % 10.18 % 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 Cottonwood 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 subsidiary with lessor arrangements. Cleco Cajun’s lease income under the Cottonwood Sale Leaseback is included in Other operations within Cleco’s Consolidated Statement of Income. Cleco Cajun’s lease income under the Cottonwood Sale Leaseback for the years ended December 31, 2021, and 2020 was as follows: FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2021 2020 Fixed payments $ 40,000 $ 40,000 Variable payments 18,226 20,883 Amortization of deferred lease liability (1) 9,205 9,205 Total lease income $ 67,431 $ 70,088 (1) Consists of amortization of the deferred lease revenue resulting from the 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) Years ending Dec. 31, 2022 $ 40,000 2023 40,000 2024 40,000 2025 16,667 Total payments $ 136,667 Depreciation expense associated with Cleco’s property under the Cottonwood Sale Leaseback for the years ended December 31, 2021, 2020, and 2019, was $32.0 million, $29.3 million, and $22.7 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: AT DEC. 31, (THOUSANDS) 2021 2020 Property, plant, and equipment $ 552,659 $ 552,659 Accumulated depreciation (84,065) (52,053) Net property, plant, and equipment $ 468,594 $ 500,606 |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2021 | |
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 Power 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 Power 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 Power’s retail revenue is unbilled electric revenue, which represents the amount customers will be billed for services rendered from the meter reading from the most recent bill to the end of the respective accounting period. Cleco Power uses actual customer energy consumption data available from AMI to calculate unbilled revenue. Also included in Cleco Power’s retail revenue is electric customer credits, which primarily represents the credits to Cleco Power’s retail customers for the federal tax-related benefits of the TCJA prior to the settlement of Cleco Power’s new retail rate plan. Subsequent to the settlement of Cleco Power’s new retail rate plan, these credits offset base revenue. Wholesale Revenue Cleco’s wholesale revenue is generated primarily through the sale of energy and capacity to electric cooperatives and municipalities. 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, through Cleco Power and Cleco Cajun, charges its wholesale customers market based rates that are subject to FERC’s triennial market power analysis. 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. Transmission Revenue Cleco Power and Cleco Cajun earn transmission revenues pursuant to MISO’s FERC filed tariff. The performance obligation of transmission service is satisfied as service is provided. Revenue from the transmission of electricity for Cleco Power and Cleco Cajun is recorded based on a separate FERC-approved annual filing rate mechanism effective June 1 of each year. These rates are based on the respective costs to provide transmission services. Other Revenue Other revenue from contracts with customers, which is not a significant source of Cleco’s revenue, consisted of customer-forfeited discounts and reconnect fees, electric property rental, and other miscellaneous fees. For 2019, other revenue also included Cleco Power’s Teche Unit 3 SSR revenue. 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 — Additional Lessee Disclosures — Cottonwood Sale Leaseback Agreement.” Disaggregated Revenue Upon the completion of the Cleco Cajun Transaction on February 4, 2019, Cleco Cajun became a reportable segment. For more information on the Cleco Cajun Transaction, see Note 3 — “Business Combinations.” Operating revenue, net for the years ended December 31, 2021, 2020, and 2019 was as follows: FOR THE YEAR ENDED DEC. 31, 2021 (THOUSANDS) CLECO POWER CLECO CAJUN OTHER ELIMINATIONS TOTAL Revenue from contracts with customers Retail revenue Residential (1) $ 453,873 $ — $ — $ — $ 453,873 Commercial (1) 294,553 — — — 294,553 Industrial (1) 175,134 — — — 175,134 Other retail (1) 16,105 — — — 16,105 Electric customer credits (41,007) — — — (41,007) Total retail revenue 898,658 — — — 898,658 Wholesale, net 250,987 (1) 398,226 (9,680) (2) 1 639,534 Transmission, net 55,963 (3) 61,500 (4) — (7,615) 109,848 Other 18,791 — 8 — 18,799 Affiliate (5) 5,641 — 113,623 (119,264) — Total revenue from contracts with customers 1,230,040 459,726 103,951 (126,878) 1,666,839 Revenue unrelated to contracts with customers Other 11,597 (6) 67,493 (7) — — 79,090 Total revenue unrelated to contracts with customers 11,597 67,493 — — 79,090 Operating revenue, net $ 1,241,637 $ 527,219 $ 103,951 $ (126,878) $ 1,745,929 (1) Includes fuel recovery revenue. (2) Amortization of intangible assets related to Cleco Power’s wholesale power supply agreements. (3) Includes $(0.1) million of electric customer credits. (4) Includes $(0.2) million of electric customer credits. (5) Includes interdepartmental rents and support services. This revenue is eliminated upon consolidation. (6) Represents realized gains associated with FTRs. (7) Includes $58.2 million in lease revenue related to the Cottonwood Sale Leaseback and $9.2 million of deferred lease revenue amortization. FOR THE YEAR ENDED DEC. 31, 2020 (THOUSANDS) CLECO POWER CLECO CAJUN OTHER ELIMINATIONS TOTAL Revenue from contracts with customers Retail revenue Residential (1) $ 402,050 $ — $ — $ — $ 402,050 Commercial (1) 256,964 — — — 256,964 Industrial (1) 137,920 — — — 137,920 Other retail (1) 14,235 — — — 14,235 Surcharge 2,440 — — — 2,440 Electric customer credits (52,208) — — — (52,208) Total retail revenue 761,401 — — — 761,401 Wholesale, net 192,187 (1) 365,555 (9,680) (2) — 548,062 Transmission, net 49,164 (3) 51,449 (4) — (6,463) 94,150 Other 15,162 — — 1 15,163 Affiliate (5) 5,156 204 129,126 (134,486) — Total revenue from contracts with customers 1,023,070 417,208 119,446 (140,948) 1,418,776 Revenue unrelated to contracts with customers Other 9,222 (6) 70,145 (7) 3 — 79,370 Total revenue unrelated to contracts with customers 9,222 70,145 3 — 79,370 Operating revenue, net $ 1,032,292 $ 487,353 $ 119,449 $ (140,948) $ 1,498,146 (1) Includes fuel recovery revenue. (2) Amortization of intangible assets related to Cleco Power’s wholesale power supply agreements. (3) Includes $0.9 million of electric customer credits. (4) Includes $0.2 million of electric customer credits. (5) Includes interdepartmental rents and support services. This revenue is eliminated upon consolidation. (6) Represents realized gains associated with FTRs. (7) Includes $60.9 million in lease revenue related to the Cottonwood Sale Leaseback and $9.2 million of deferred lease revenue amortization. FOR THE YEAR ENDED DEC. 31, 2019 (THOUSANDS) CLECO POWER CLECO CAJUN OTHER ELIMINATIONS TOTAL Revenue from contracts with customers Retail revenue Residential (1) $ 415,242 $ — $ — $ — $ 415,242 Commercial (1) 289,197 — — — 289,197 Industrial (1) 149,711 — — — 149,711 Other retail (1) 15,046 — — — 15,046 Surcharge 22,132 — — — 22,132 Electric customer credits (35,880) — — — (35,880) Total retail revenue 855,448 — — — 855,448 Wholesale, net 226,978 (1) 374,635 (2) (9,680) (3) (1) 591,932 Transmission 50,874 (4) 51,315 (5) — (7,471) 94,718 Other 19,324 (6) — 2 — 19,326 Affiliate (7) 3,125 108 109,067 (112,300) — Total revenue from contracts with customers 1,155,749 426,058 99,389 (119,772) 1,561,424 Revenue unrelated to contracts with customers Other 12,621 (8) 65,560 (9) — — 78,181 Total revenue unrelated to contracts with customers 12,621 65,560 — — 78,181 Operating revenue, net $ 1,168,370 $ 491,618 $ 99,389 $ (119,772) $ 1,639,605 (1) Includes fuel recovery revenue. (2) Includes $0.8 million of electric customer credits. (3) Amortization of intangible assets related to Cleco Power’s wholesale power supply agreements. (4) Includes $2.6 million of electric customer credits. (5) Includes $0.7 million of electric customer credits. (6) Includes $16.1 million of other miscellaneous fee revenue and $3.2 million of Teche Unit 3 SSR revenue. (7) Includes interdepartmental rents and support services. This revenue is eliminated upon consolidation. (8) Includes realized gains associated with FTRs of $12.4 million and LCFC revenue of $0.2 million. (9) Includes $57.1 million in lease revenue related to the Cottonwood Sale Leaseback and $8.4 million of deferred lease revenue amortization. |
Regulatory Assets and Liabiliti
Regulatory Assets and Liabilities | 12 Months Ended |
Dec. 31, 2021 | |
Regulatory Assets and Liabilities Disclosure [Abstract] | |
Regulatory Assets and Liabilities | Note 6 — Regulatory Assets and Liabilities Cleco Power capitalizes or defers certain costs for recovery from customers and recognizes a liability for amounts expected to be returned to customers based on regulatory approval and management’s ongoing assessment that it is probable these items will be recovered or refunded through the ratemaking process. Under the current regulatory environment, Cleco Power believes these regulatory assets will be fully recoverable; however, if in the future, as a result of regulatory changes or competition, Cleco Power’s ability to recover these regulatory assets would no longer be probable, then to the extent that such regulatory assets were determined not to be recoverable, Cleco Power would be required to write-down such assets. In addition, potential deregulation of the industry or possible future changes in the method of rate regulation of Cleco Power, could require discontinuance of the application of the authoritative guidance of regulated operations. The following table summarizes Cleco Power’s regulatory assets and liabilities: Cleco Power AT DEC. 31, REMAINING RECOVERY PERIOD (YRS.) (THOUSANDS) 2021 2020 Regulatory assets Acadia Unit 1 acquisition costs $ 1,913 $ 2,019 18 Accumulated deferred fuel (1) 56,826 28,194 Various (2) Affordability study 13,094 — 9.5 (3) AFUDC equity gross-up 66,574 69,670 Various AMI deferred revenue requirement 2,045 2,591 4 AROs (1)(7) 15,141 5,488 Bayou Vista to Segura transmission project deferred revenue requirement (7) 1,392 — Coughlin transaction costs 845 876 27.5 COVID-19 executive order 2,953 2,953 Deferred storm restoration costs - Hurricane Delta (7) 17,113 17,051 Deferred storm restoration costs - Hurricane Ida (7) 37,617 — Deferred storm restoration costs - Hurricane Laura (7) 54,282 54,406 Deferred storm restoration costs - Hurricane Zeta (7) 3,296 3,493 Deferred storm restoration costs - Winter Storms Uri & Viola (7) 1,912 — Dolet Hills Power Station closure costs (7) 145,844 48,982 Emergency declarations — 270 Energy efficiency 1,645 2,820 1 Financing costs (1) 6,826 7,184 Various (4) Interest costs 3,459 3,708 Various (3) Lignite Mine closure costs (7) 136,980 — Madison Unit 3 property taxes (7) 8,362 — Non-service cost of postretirement benefits 12,950 9,901 Various (3) Other 11,224 4,229 Various (2) Postretirement costs 117,773 165,437 Various (5) Production operations and maintenance expenses 11,058 4,058 Various (6) Rodemacher Unit 2 deferred costs (7) 6,931 1,333 St. Mary Clean Energy Center 6,089 3,479 3.5 Training costs 5,929 6,085 38 Tree trimming costs 9,092 11,807 3.5 Total regulatory assets 759,165 456,034 Regulatory liabilities AFUDC (7) — (4,218) Corporate franchise tax, net — (763) Deferred taxes, net (95,544) (175,584) Various (2) Total regulatory liabilities (95,544) (180,565) Total regulatory assets, net $ 663,621 $ 275,469 (1) Represents regulatory assets for past expenditures that were not earning a return on investment at December 31, 2021, and 2020, respectively. All other assets are earning a return on investment. (2) For more information related to the remaining recovery period, refer to the following disclosures for each specific regulatory asset or liability. (3) Amortized over the estimated lives of the respective assets. (4) Amortized over the terms of the related debt issuances. (5) Amortized over the average service life of the remaining plan participants. (6) Deferral is recovered over the following three (7) Currently not in a recovery period. The following table summarizes Cleco’s net regulatory assets and liabilities: Cleco AT DEC. 31, (THOUSANDS) 2021 2020 Total Cleco Power regulatory assets, net $ 663,621 $ 275,469 2016 Merger adjustments (1) Fair value of long-term debt 112,150 119,553 Postretirement costs 13,424 15,411 Financing costs 7,248 7,592 Debt issuance costs 4,920 5,254 Total Cleco regulatory assets, net $ 801,363 $ 423,279 (1) Cleco regulatory assets include acquisition accounting adjustments as a result of the 2016 Merger. Acadia Unit 1 Acquisition Costs In 2009, the LPSC approved Cleco Power’s request to establish a regulatory asset for costs incurred as a result of the acquisition by Cleco Power of Acadia Unit 1 and half of Acadia Power Station’s related common facilities. The Acadia Unit 1 acquisition costs are being recovered over a 30-year period beginning February 2010. Accumulated Deferred Fuel Cleco Power is allowed to recover the cost of fuel used for electric generation and power purchased for utility customers through the LPSC-established FAC or related wholesale contract provisions, which enable Cleco Power to pass on to its customers substantially all such charges. The difference between fuel and purchased power revenues collected from retail and wholesale customers and the current fuel and purchased power costs is generally recorded as Accumulated deferred fuel on Cleco Power’s Consolidated Balance Sheet. For 2021, approximately 76% of Cleco Power’s total fuel cost was regulated by the LPSC. In February 2021, Winter Storms Uri and Viola moved through Louisiana causing substantial damage to Cleco’s distribution assets, electricity generation supply shortages, natural gas supply shortages, and increases in prices of natural gas in the U.S., primarily due to prolonged freezing temperatures. Incremental fuel and purchased power costs were incurred as a result of the winter storms. On March 29, 2021, Cleco Power received approval from the LPSC to defer $50.0 million of these costs and recover them over 12 months through Cleco Power’s FAC beginning in May 2021. For more information about the incremental fuel and purchased power costs related to Winter Storms Uri and Viola, see Note 19 — “Storm Restoration, Securitization, and Cost Recovery — Winter Storms Uri and Viola.” Higher lignite and natural gas costs also contributed to the increase in Cleco Power’s accumulated deferred fuel. Affordability Study On June 16, 2021, the LPSC approved Cleco Power’s new retail rate plan. As a result, Cleco Power was allowed to establish a regulatory asset of $13.6 million related to outside consulting fees for the assessment of Cleco Power’s practices and assistance in the identification of potential cost savings opportunities, while maintaining superior levels of employee safety, reliability, customer service, environmental stewardship, community involvement, and regulatory transparency. The regulatory asset is being amortized over 10 years beginning July 1, 2021. AFUDC Equity Gross-Up Cleco Power capitalizes equity AFUDC as a cost component of construction projects. Cleco Power has recorded a regulatory asset to recover the tax gross-up related to the equity component of AFUDC. These costs are being amortized over the estimated lives of the respective assets constructed. AMI Deferred Revenue Requirement In February 2011, the LPSC approved Cleco Power’s stipulated settlement in Docket No. U-31393 allowing Cleco Power to defer the estimated revenue requirements for the AMI project as a regulatory asset. In June 2014, the LPSC approved Cleco Power’s recovery of the AMI regulatory asset over the average life of the AMI meters, or 11 years. In July 2014, Cleco Power began recovering the AMI deferred revenue requirement. AROs Cleco Power recorded an ARO liability for the retirement of certain ash disposal facilities. The ARO regulatory asset represents the accretion of the ARO liability and the depreciation of the related assets. For more information on the accounting treatment and net changes of Cleco Power’s AROs, see Note 2 — “Summary of Significant Accounting Policies — AROs”, and Note 15 — “Litigation, Other Commitments and Contingencies, and Disclosures about Guarantees — Long-Term Purchase Obligations — Other Commitments.” Bayou Vista To Segura Transmission Project Deferred Revenue Requirement On June 16, 2021, the LPSC approved Cleco Power’s new retail rate plan. As a result, Cleco Power was allowed to establish a regulatory asset and recover the revenue requirements, including interest at Cleco Power’s weighted average cost of capital, starting in the month after completion of each phase of the Bayou Vista to Segura Transmission project. The northern phase of the project was completed in August 2021, and the southern phase was completed in December 2021. At December 31, 2021, Cleco Power had a regulatory asset of $1.4 million related to deferred revenue associated with the northern phase of the Bayou Vista to Segura Transmission project. The regulatory asset will be amortized over 12 months beginning July 1, 2022. Coughlin Transaction Costs In January 2014, the LPSC authorized Cleco Power to create a regulatory asset for the transaction costs related to the transfer of Coughlin from Evangeline to Cleco Power. The Coughlin transaction costs are being recovered over a 35-year period beginning July 2014. COVID-19 Executive Order On March 13, 2020, the LPSC issued an executive order prohibiting the disconnection of utilities for nonpayment. This order resulted in an increase of expenses and a loss of revenue for Cleco Power. On April 29, 2020, the LPSC issued an order allowing utilities to establish a regulatory asset for expenses incurred from the suspension of disconnections and collection of late fees imposed by the LPSC executive order. On July 1, 2020, the LPSC issued an order terminating the moratorium on disconnections effective July 16, 2020. Cleco began resuming disconnections and late fees and utilizing collection agencies on October 1, 2020. On December 4, 2020, Cleco Power made a filing with the LPSC requesting the recovery of the regulatory asset as well as the lost revenue associated with the disconnection fees and incremental costs over a four-year period. At December 31, 2021, Cleco Power had a regulatory asset of $3.0 million for expenses incurred. Deferred Storm Restoration Costs In 2020 and 2021, Cleco Power’s distribution and transmission systems sustained substantial damage for four seperate hurricanes and two severe winter storms resulting in significant outages for its customers during each storm. Cleco Power established a separate regulatory asset to track and defer non-capital expenses associated with each corresponding storm, as approved by the LPSC. For more information about the storm restoration and cost recovery, see Note 19 — “Storm Restoration, Securitization, and Cost Recovery.” Dolet Hills Power Station Closure Costs In June 2020, Cleco Power revised depreciation rates for the Dolet Hills Power Station to utilize the December 31, 2021, expected end-of-life and early retirement of the Dolet Hills Power Station and defer depreciation expense to a regulatory asset for the amount in excess of the previously LPSC-approved depreciation rates. The Dolet Hills Power Station was retired on December 31, 2021. On January 31, 2022, Cleco Power filed an application with the LPSC requesting approval of the regulatory treatment and recovery of stranded and decommissioning costs associated with the retirement of the Dolet Hills Power Station over 20 years. At December 31, 2021, Cleco Power had $145.8 million deferred as a regulatory asset for stranded costs. For more information on the Dolet Hills Power Station, see Note 15 — “Litigation, Other Commitments and Contingencies, and Disclosures about Guarantees — Litigation — Risks and Uncertainties.” Emergency Declarations In August 2016, the LPSC issued emergency declaration executive orders following flooding events in south Louisiana which prohibited public utilities from disconnecting or charging late fees to customers for non-payment in affected parishes. In January 2017, the LPSC issued an order that terminated the executive orders effective March 1, 2017, and allowed public utilities to formally petition the LPSC to recover lost revenues as a result of the executive orders. In July 2017, Cleco Power began recovering lost revenues associated with the flooding events. This regulatory asset was fully amortized in June 2021. Energy Efficiency In December 2018, Cleco Power filed a letter of intent with the LPSC to recover the under recovery of the accumulated decrease in revenues, also known as the LCFC, associated with the energy efficiency program for years 2014 through 2018 to be recovered over a four-year period. Cleco Power began collecting the accumulated LCFC revenues in Cleco Power’s energy efficiency rates effective March 1, 2019. On October 21, 2019, Cleco Power received notice of approval from the LPSC allowing recovery of the accumulated LCFC revenues. Financing Costs In 2011, Cleco Power entered into and settled two treasury rate locks. Of the $26.8 million in settlements, $7.4 million was deferred as a regulatory asset relating to ineffectiveness of the hedge relationships. Also in 2011, Cleco Power entered into a forward starting swap contract. These derivatives were entered into in order to mitigate the interest rate exposure on coupon payments related to forecasted debt issuances. In May 2013, the forward starting interest rate swap was settled at a loss of $3.3 million. Cleco Power deferred $2.9 million of the losses as a regulatory asset, which is being amortized over the terms of the related debt issuances. Interest Costs Cleco Power’s deferred interest costs include additional deferred capital construction financing costs authorized by the LPSC. These costs are being amortized over the estimated lives of the respective assets. Lignite Mine Closure Costs On October 6, 2020, Cleco Power and SWEPCO made a joint filing with the LPSC seeking authorization to close the Oxbow mine and to include and defer certain accelerated mine closing costs in fuel and related ratemaking treatment. On March 17, 2021, the LPSC approved the establishment of a regulatory asset for certain lignite costs that would otherwise be billed through Cleco Power’s FAC and any reasonable incremental third-party professional costs related to the closure of the mine. At December 31, 2021, Cleco Power had a regulatory asset of $137.0 million for deferred fuel and mine-related incurred costs, which were included in the application filed with the LPSC on January 31, 2022. For more information on the Oxbow mine, see Note 15 — “Litigation, Other Commitments and Contingencies, and Disclosures about Guarantees — Risks and Uncertainties.” Madison Unit 3 Property Taxes On June 16, 2021, the LPSC approved Cleco Power’s new retail rate plan. As a result, beginning July 1, 2022, Cleco Power will be allowed to recover property taxes paid for Madison Unit 3, including a carrying charge at Cleco Power’s weighted average cost of capital, grossed up for income taxes. At December 31, 2021, Cleco Power had a regulatory asset of $8.4 million for the accrued 2021 Madison Unit 3 property taxes. The amount included in the cost recovery mechanism each year will amortize over 12 months. Non-Service Cost of Postretirement Benefits On January 1, 2018, FASB’s amended guidance related to defined benefit pension and other postretirement plans became effective. The amendment allows only the service cost component of net benefit cost to be eligible for capitalization within property, plant, and equipment. Beginning January 1, 2018, Cleco Power’s non-service cost previously eligible for capitalization into property, plant, and equipment are being deferred to a regulatory asset and will be amortized over the estimated lives of the respective assets. Other On June 16, 2021, the LPSC approved Cleco Power’s new retail rate plan resulting in Cleco Power establishing several regulatory assets. Cleco Power was allowed to establish a regulatory asset to recover the undercollection of revenues related to the Northlake Transmission Agreement capped at $5.7 million. The amount recorded in the regulatory asset at June 30, 2021, began being amortized over 12 months on July 1, 2021. Amounts recorded in the regulatory asset after June 30, 2021, are being amortized over the remaining regulatory period ending June 30, 2022. At December 31, 2021, Cleco Power had a regulatory asset of $2.9 million relating to the Northlake Transmission Agreement. In addition, the LPSC approved recovery of other previously deferred costs associated with Cleco Power’s recently approved retail rate plan, which began being amortized over four years on July 1, 2021. At December 31, 2021, Cleco Power had a regulatory asset of $3.6 million for deferred costs. In June 2017, and prior to the approval of Cleco Power’s new retail rate plan, 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’s new retail rate plan was approved. As approved by the LPSC in Cleco Power’s new retail rate plan, the regulatory asset began being amortized over four years on July 1, 2021. At December 31, 2021, Cleco Power had a regulatory asset of $4.7 million related to the deferred revenue associated with the Coughlin Pipeline project. Postretirement Costs Cleco Power recognizes the funded status of its postretirement benefit plans as a net liability or asset. The net liability or asset is defined as the difference between the benefit obligation and the fair market value of plan assets. For defined benefit pension plans, the benefit obligation is the projected benefit obligation. Historically, the LPSC has allowed Cleco Power to recover pension plan expense. Cleco Power, therefore, recognizes a regulatory asset based on its determination that these costs can be collected from customers. These costs are amortized to pension expense over the average service life of the remaining plan participants (approximately six years as of December 31, 2021, for Cleco’s plan) when it exceeds certain thresholds. The amount and timing of the recovery will be based on the changing funded status of the pension plan in future periods. For more information on Cleco’s pension plan and adoption of these authoritative guidelines, see Note 10 — “Pension Plan and Employee Benefits.” Production Operations and Maintenance Expenses Annually, Cleco Power is allowed to defer, as a regulatory asset, production operations and maintenance expenses, net of fuel and payroll, above the retail jurisdictional portion of $34.9 million, adjusted annually for a growth factor (deferral threshold). The amount of the regulatory asset is capped at $25.0 million. The LPSC allows Cleco Power to recover the amount deferred in any calendar year over the following three-year regulatory period, beginning on July 1, when the annual rates are set. Cleco Power had a deferral of $9.7 million in 2021 and no deferral in 2020. Rodemacher Unit 2 Deferred Costs As a result of environmental regulations, Cleco Power revised Rodemacher Unit 2’s expected end-of-life to coincide with its application to the EPA for an alternative closure date of October 17, 2028. Rodemacher Unit 2’s depreciation expense in excess of the previously LPSC-approved depreciation rates are deferred to a regulatory asset. At December 31, 2021, Cleco Power had $6.9 million deferred as a regulatory asset for accelerated depreciation. St. Mary Clean Energy Center Cleco Power has a regulatory asset for revenue requirements related to the St. Mary Clean Energy Center project. As approved by the LPSC in Cleco Power’s new retail rate plan, the regulatory asset began being amortized over four years on July 1, 2021. Training Costs In 2008, the LPSC approved Cleco Power’s request to establish a regulatory asset for training costs associated with existing processes and technology for new employees at Madison Unit 3. Recovery of these expenditures was approved by the LPSC in 2009. In 2010, Cleco Power began amortizing the regulatory asset over a 50-year period. Tree Trimming Costs In October 2016, the LPSC approved Cleco Power to defer and recover through its base rates tree trimming costs. The LPSC authorized a deferral up to $10.9 million, excluding debt carrying costs. Cleco Power is currently collecting deferred tree trimming costs through its base rates and expects them to be fully amortized by 2026. Cleco Holdings’ 2016 Merger Adjustments As a result of the 2016 Merger, Cleco implemented acquisition accounting, which eliminated AOCI at the Cleco consolidated level on the date of the 2016 Merger. Cleco will continue to recover expenses related to certain postretirement costs; therefore, Cleco recognized a regulatory asset based on its determination that these costs that are probable of recovery continue to be collected from customers. These costs will be amortized to Other operations expense over the average remaining service period of participating employees. Cleco will also continue to recover financing costs associated with the settlement of two treasury rate locks and a forward starting swap contract that were previously recognized in AOCI. Additionally, as a result of the 2016 Merger, a regulatory asset was recorded for debt issuance costs that were eliminated at Cleco and a regulatory asset was recorded for the difference between the carrying value and the fair value of long-term debt. These regulatory assets are being amortized over the terms of the related debt issuances, unless the debt is redeemed prior to maturity, at which time any unamortized related regulatory asset will be derecognized. AFUDC The capitalization of AFUDC by Cleco Power is a utility accounting practice prescribed by FERC and the LPSC. AFUDC represents the estimated debt and equity costs of capital funds that are necessary to finance construction of new and existing facilities. While cash is not realized currently from such allowance, AFUDC increases the revenue requirement over the same life of the plant through a higher rate base and higher depreciation. Under regulatory practices, a return on and recovery of AFUDC is permitted in setting rates charged for utility services. For 2020, Cleco Power’s average short-term debt balance exceeded its average construction work-in-progress balance; however, Cleco Power elected the FERC capital structure waiver contained in FERC Docket Number AC20-127-000. In December 2021, Cleco Power received approval from the LPSC for recovery of the retail portion of AFUDC under the FERC waiver. Corporate Franchise Tax, Net As part of the FRP extension approved by the LPSC in June 2014, Cleco Power was authorized to recover through a rider the retail portion of state corporate franchise taxes paid. The retail portion of state corporate franchise taxes paid each year will be recovered over 12 months beginning July 1 of the following year. Deferred Taxes, Net The regulatory assets and liabilities recorded for deferred income taxes represent the effect of tax benefits or detriments that must be flowed through to customers as they are received or paid. The amounts deferred are attributable to differences between book and tax recovery periods. In 2017, the TCJA was enacted. Changes in the IRC, as amended, from the TCJA had a material impact on the Registrants’ financial statements in 2017. Tax effects of changes in tax laws must be recognized in the period in which the law is enacted. Also, deferred tax assets and liabilities must be measured at the enacted tax rate expected to apply when temporary differences are to be realized or settled. At December 31, 2021, and 2020, Cleco and Cleco Power had $302.0 million and $352.4 million, respectively, accrued for the excess ADIT as a result of the TCJA. For more information on the status of the TCJA |
Jointly Owned Generation Units
Jointly Owned Generation Units | 12 Months Ended |
Dec. 31, 2021 | |
Regulated Operations [Abstract] | |
Jointly Owned Generation Units | Note 7 — Jointly Owned Generation Units Cleco Power and Cleco Cajun operate electric generation units that are jointly owned with other utilities. The joint-owners are responsible for their own share of the capital and the operating and maintenance costs of the respective units. Cleco Power and Cleco Cajun are responsible for their own share of the direct expenses of their respective jointly owned generation units. Cleco Power’s share of expenses is included in the operating expenses on Cleco and Cleco Power’s Consolidated Statements of Income. Cleco Cajun’s share of expenses is included in the operating expenses on Cleco’s Consolidated Statement of Income. At December 31, 2021, the investment in and accumulated depreciation for each generating unit on Cleco and Cleco Power’s Consolidated Balance Sheets were as follows: Cleco AT DEC. 31, 2021 (THOUSANDS, EXCEPT PERCENTAGES AND MW) RODEMACHER UNIT 2 BAYOU COVE BIG CAJUN II, UNIT 3 TOTAL Utility plant in service $ 83,675 $ 41,435 $ 17,490 $ 142,600 Accumulated depreciation $ 19,783 $ 6,809 $ 3,207 $ 29,799 Construction work in progress $ 400 $ — $ 474 $ 874 Ownership interest percentage 30 % 75 % 58 % Rated capacity (MW) 523 300 588 Ownership interest (MW) 157 225 341 Cleco Power AT DEC. 31, 2021 (THOUSANDS, EXCEPT PERCENTAGES AND MW) RODEMACHER UNIT 2 Utility plant in service $ 157,855 Accumulated depreciation $ 93,963 Construction work in progress $ 400 Ownership interest percentage 30 % Rated capacity (MW) 523 Ownership interest (MW) 157 |
Fair Value Accounting and Finan
Fair Value Accounting and Financial Instruments | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Accounting and Financial Instruments | Note 8 — Fair Value Accounting and Financial Instruments The amounts reflected in Cleco and Cleco Power’s Consolidated Balance Sheets at December 31, 2021, and 2020, 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 Consolidated Balance Sheets: Cleco AT DEC. 31, 2021 2020 (THOUSANDS) CARRYING FAIR VALUE CARRYING FAIR VALUE Long-term debt $ 3,482,405 $ 3,752,220 $ 3,230,500 $ 3,541,349 * The carrying value of long-term debt does not include deferred issuance costs of $13.2 million at December 31, 2021, and $13.4 million at December 31, 2020. Cleco Power AT DEC. 31, 2021 2020 (THOUSANDS) CARRYING FAIR VALUE CARRYING FAIR VALUE Long-term debt $ 1,820,254 $ 2,085,944 $ 1,494,947 $ 1,794,799 * The carrying value of long-term debt does not include deferred issuance costs of $7.9 million at December 31, 2021, and $7.0 million at December 31, 2020. 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. Cleco elects not to designate derivatives as cash flow or fair value hedges, as allowed by accounting guidance. Cleco utilizes a mark-to-market approach recognizing changes in the fair value of FTRs and commodity derivatives at Cleco Cajun in earnings and changes in the fair value of FTRs at Cleco Power as a component of deferred fuel assets and liabilities. Cleco utilizes different valuation techniques for fair value measurements under a fair value hierarchy. Assets and liabilities classified as Level 1 under the hierarchy utilize observable inputs that reflect quotable prices in active markets. Assets and liabilities classified as Level 2 are measured through proxy inputs of similar index or composite pricing. Assets and liabilities classified as Level 3 under the hierarchy are valued based on unobservable inputs, such as internally generated valuation models or valuations obtained in inactive markets where there is no readily available information. 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. During the years ended December 31, 2021, and 2020, Cleco did not experience any transfers into or out of Level 3 of the fair value hierarchy. The following tables disclose for Cleco and Cleco Power the fair value of financial assets and liabilities measured on a recurring basis. These amounts are presented on a gross basis before consideration of amounts netted under master netting agreements and the application of collateral received or paid: Cleco FAIR VALUE MEASUREMENTS AT REPORTING DATE (THOUSANDS) AT DEC. 31, 2021 QUOTED SIGNIFICANT SIGNIFICANT AT DEC. 31, 2020 QUOTED SIGNIFICANT SIGNIFICANT Asset Description Money market funds $ 145,033 $ 145,033 $ — $ — $ 86,001 $ — $ 86,001 $ — FTRs 6,977 — — 6,977 4,805 — — 4,805 Natural gas derivatives 87,464 — 87,464 — 8,599 — 8,599 — Total assets $ 239,474 $ 145,033 $ 87,464 $ 6,977 $ 99,405 $ — $ 94,600 $ 4,805 Liability Description FTRs $ 834 $ — $ — $ 834 $ 1,625 $ — $ — $ 1,625 Natural gas derivatives — — — — 1,612 — 1,612 — Total liabilities $ 834 $ — $ — $ 834 $ 3,237 $ — $ 1,612 $ 1,625 Cleco Power FAIR VALUE MEASUREMENTS AT REPORTING DATE (THOUSANDS) AT DEC. 31, 2021 QUOTED SIGNIFICANT SIGNIFICANT AT DEC. 31, 2020 QUOTED SIGNIFICANT SIGNIFICANT Asset Description Money market funds $ 82,411 $ 82,411 $ — $ — $ 25,357 $ — $ 25,357 $ — FTRs 5,515 — — 5,515 4,337 — — 4,337 Total assets $ 87,926 $ 82,411 $ — $ 5,515 $ 29,694 $ — $ 25,357 $ 4,337 Liability Description FTRs $ 597 $ — $ — $ 597 $ 1,121 $ — $ — $ 1,121 Total liabilities $ 597 $ — $ — $ 597 $ 1,121 $ — $ — $ 1,121 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 YEAR ENDED DEC. 31, (THOUSANDS) 2021 2020 Beginning balance $ 3,180 $ 5,778 Unrealized gains * 2,567 187 Purchases 12,061 11,333 Settlements (11,665) (14,118) Ending balance $ 6,143 $ 3,180 * Cleco Power’s unrealized gains (losses) are reported through Accumulated deferred fuel on Cleco’s Consolidated Balance Sheet. Cleco Cajun’s unrealized gains (losses) are reported through Purchased power on Cleco’s Consolidated Statement of Income. Cleco Power FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2021 2020 Beginning balance $ 3,216 $ 5,725 Unrealized gains * 2,828 450 Purchases 9,871 9,378 Settlements (10,997) (12,337) Ending balance $ 4,918 $ 3,216 * Unrealized gains (losses) are reported through Accumulated deferred fuel on Cleco Power's Consolidated Balance Sheets. Cleco Power and Cleco Cajun’s FTRs are valued 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 value available comes from MISO auctions, which occur monthly in the Multi-Period Monthly Auction. The following tables quantify the significant unobservable inputs used in developing the fair value of Level 3 positions for Cleco and Cleco Power as of December 31, 2021: Cleco FAIR VALUE VALUATION TECHNIQUE SIGNIFICANT FORWARD PRICE RANGE (THOUSANDS, EXCEPT DOLLAR PER MWh) Assets Liabilities Low High FTRs at December 31, 2021 $ 6,977 $ 834 RTO auction pricing FTR price - per MWh $ (3.94) $ 9.25 FTRs at December 31, 2020 $ 4,805 $ 1,625 RTO auction pricing FTR price - per MWh $ (3.49) $ 4.36 Cleco Power FAIR VALUE VALUATION TECHNIQUE SIGNIFICANT FORWARD PRICE RANGE (THOUSANDS, EXCEPT DOLLAR PER MWh) Assets Liabilities Low High FTRs at December 31, 2021 $ 5,515 $ 597 RTO auction pricing FTR price - per MWh $ (4.91) $ 9.25 FTRs at December 31, 2020 $ 4,337 $ 1,121 RTO auction pricing FTR price - per MWh $ (3.34) $ 4.36 As a result of the 2016 Merger, fair value adjustments were recorded on Cleco’s Consolidated Balance Sheet for the valuation of a finite intangible asset relating to the Cleco Power trade name. In August 2021, a wholesale customer that is currently under contract with Cleco Power through March 31, 2024, informed Cleco Power that it was not selected through its request for proposal process as a provider of load after the first quarter of 2024. Cleco considered this to be a triggering event and determined that the carrying value of the trade name intangible asset may not be recoverable. Therefore, a valuation of the Cleco Power trade name was conducted to test for impairment. A discounted cash flow model utilizing the significant unobservable input of estimated weighted average cost of capital of 8% was used to determine the fair value of the Cleco Power trade name. As a result, Cleco determined that the fair value of the Cleco Power trade name was less than its carrying value and an impairment of $3.8 million was recognized reducing the carrying value to zero. The fair value measurement of the intangible asset is classified as Level 3 in the fair value hierarchy. For more information on the Cleco Power trade name intangible asset, see Note 17 — “Intangible Assets, Intangible Liabilities, and Goodwill.” Concentrations of Credit Risk At December 31, 2021, 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 following tables present the money market funds in cash and cash equivalents and restricted cash and cash equivalents as recorded on Cleco and Cleco Power’s Consolidated Balance Sheets at December 31, 2021, and 2020: Cleco FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2021 2020 Cash and cash equivalents $ 145,011 $ 80,712 Current restricted cash and cash equivalents $ — $ 4,545 Non-current restricted cash and cash equivalents $ 22 $ 744 Cleco Power FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2021 2020 Cash and cash equivalents $ 82,411 $ 20,812 Current restricted cash and cash equivalents $ — $ 4,545 Money market fund assets are discounted to the current period using a published U.S. Treasury interest rate as a proxy for a risk-free rate of return. 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 1 money market funds asset consists of two classes. 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. government to maintain liquidity and achieve the goal of a net asset value of a dollar. The risks associated with this class are counterparty risk of the fund manager and risk of price volatility associated with the underlying securities of the fund. Cleco may be required to provide credit support or pay liquidated damages with respect to any open trading contracts that Cleco has entered into or may enter into in the future. The amount of credit support that Cleco may be required to provide at any point in the future is dependent on the amount of the initial contract, changes in the market price, changes in open contracts, and changes in the amounts counterparties owe to Cleco. Changes in any of these factors could cause the amount of requested credit support to increase or decrease. Commodity Contracts On Cleco’s Consolidated Balance Sheets, the fair value of amounts associated with Cleco Cajun’s derivative instruments are offset with related cash collateral balances with the same counterparty. There were no offsetting amounts at December 31, 2020. The following tables present the fair values of derivative instruments and their respective line items as recorded on Cleco and Cleco Power’s Consolidated Balance Sheets at December 31, 2021, and 2020: Cleco DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS AT DEC. 31, 2021 AT DEC. 31, 2020 GROSS AMOUNTS OFFSET GROSS AMOUNTS NOT OFFSET ON THE BALANCE SHEET (1) (THOUSANDS) BALANCE SHEET LINE ITEM GROSS ASSET (LIABILITY) CONTRACT NETTING NET ASSET (LIABILITY) ON THE BALANCE SHEET COLLATERAL NET AMOUNT NET ASSET (LIABILITY) ON THE BALANCE SHEET (2) Commodity-related contracts FTRs Current Energy risk management assets $ 6,977 $ — $ 6,977 $ — $ 6,977 $ 4,805 Current Energy risk management liabilities (834) — (834) — (834) (1,625) Natural gas derivatives Current Energy risk management assets 37,061 (559) 36,502 (15,000) 21,502 8,276 Non-current Energy risk management assets 50,962 — 50,962 — 50,962 323 Current Energy risk management liabilities (559) 559 — — — (828) Non-current Other deferred credits — — — — — (784) Commodity-related contracts, net $ 93,607 $ — $ 93,607 $ (15,000) $ 78,607 $ 10,167 (1) Represents letters of credit by counterparties. (2) There were no offsetting amounts on or off Cleco’s Consolidated Balance Sheet at December 31, 2020. Cleco Power DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS (THOUSANDS) BALANCE SHEET LINE ITEM AT DEC. 31, 2021 AT DEC. 31, 2020 Commodity-related contracts FTRs: Current Energy risk management assets $ 5,515 $ 4,337 Current Energy risk management liabilities (597) (1,121) Commodity-related contracts, net $ 4,918 $ 3,216 At December 31, 2021, and 2020, there was no cash collateral posted with or received from counterparties that was netted on Cleco’s Consolidated Balance Sheet. The following tables present the effect of derivatives not designated as hedging instruments on Cleco and Cleco Power’s Consolidated Statements of Income for the years December 31, 2021, 2020, and 2019: Cleco AMOUNT OF GAIN/(LOSS) RECOGNIZED IN INCOME ON DERIVATIVES FOR THE YEAR ENDED DEC. 31, (THOUSANDS) DERIVATIVES LINE ITEM 2021 2020 2019 Commodity contracts FTRs (1) Electric operations $ 12,797 $ 9,213 $ 13,043 FTRs (1) Purchased power (6,237) (3,467) (15,685) Natural gas derivatives Fuel used for electric generation 134,144 (12,159) (5,172) Total $ 140,704 $ (6,413) $ (7,814) (1) For the years ended December 31, 2021, 2020, and 2019, unrealized gains (losses) associated with FTRs for Cleco Power of $2.8 million, $0.5 million and $(1.7) 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 YEAR ENDED DEC. 31, (THOUSANDS) DERIVATIVES LINE ITEM 2021 2020 2019 Commodity contracts FTRs (1) Electric operations $ 12,797 $ 9,213 $ 13,047 FTRs (1) Purchased power (10,360) (6,803) (6,066) Total $ 2,437 $ 2,410 $ 6,981 (1) For the years ended December 31, 2021, 2020, and 2019, unrealized gains (losses) associated with FTRs of $2.8 million, $0.5 million, and $(0.9) million, respectively, were reported through Accumulated deferred fuel on the balance sheet. The following tables present the volume of commodity-related derivative contracts outstanding at December 31, 2021, and December 31, 2020, for Cleco and Cleco Power: Cleco TOTAL VOLUME OUTSTANDING (THOUSAND) UNIT OF MEASURE AT DEC. 31, 2021 AT DEC. 31, 2020 Commodity-related contracts FTRs MWh 14,055 15,269 Natural gas derivatives MMBtus 109,306 73,000 Cleco Power TOTAL VOLUME OUTSTANDING (THOUSAND) UNIT OF MEASURE AT DEC. 31, 2021 AT DEC. 31, 2020 Commodity-related contracts FTRs MWh 8,899 9,521 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Debt | Note 9 — Debt Cleco Power’s total long-term indebtedness as of December 31, 2021, and 2020 was as follows: Cleco Power AT DEC. 31, (THOUSANDS) 2021 2020 Bonds Senior notes, 2.94%, due 2022 $ 25,000 $ 25,000 Senior notes, 3.08%, due 2023 100,000 100,000 Senior notes, 3.17%, due 2024 50,000 50,000 Senior notes, 3.68%, due 2025 75,000 75,000 Senior notes, 3.47%, due 2026 130,000 130,000 Senior notes, 4.33%, due 2027 50,000 50,000 Senior notes, 3.57%, due 2028 200,000 200,000 Senior notes, 6.50%, due 2035 295,000 295,000 Senior notes, 6.00%, due 2040 250,000 250,000 Senior notes, 5.12%, due 2041 100,000 100,000 Senior notes, floating rate, due 2023 325,000 — Series A GO Zone bonds, 2.50%, due 2038, mandatory tender in 2025 50,000 50,000 Series B GO Zone bonds, 4.25%, due 2038 50,000 50,000 Total bonds 1,700,000 1,375,000 Bank term loan, variable rate, due 2024 125,000 125,000 Finance leases Barge lease obligations 14,562 15,244 Gross amount of long-term debt and finance leases 1,839,562 1,515,244 Long-term debt due within one year (25,000) — Finance leases classified as long-term debt due within one year (755) (682) Unamortized debt discount (4,746) (5,053) Unamortized debt issuance costs (8,207) (7,252) Total long-term debt and finance leases, net $ 1,800,854 $ 1,502,257 Cleco’s total long-term indebtedness as of December 31, 2021, and 2020 was as follows: Cleco AT DEC. 31, (THOUSANDS) 2021 2020 Total Cleco Power long-term debt and finance leases, net $ 1,800,854 $ 1,502,257 Cleco Holdings’ long-term debt, net Senior notes, 3.250%, due 2023 165,000 165,000 Senior notes, 3.743%, due 2026 535,000 535,000 Senior notes, 3.375%, due 2029 300,000 300,000 Senior notes, 4.973%, due 2046 350,000 350,000 Bank term loan, variable rate, due 2024 200,000 266,000 Long-term debt due within one year (67,700) (66,000) Unamortized debt issuance costs (1) (5,271) (6,423) Fair value adjustment 112,150 119,553 Total Cleco long-term debt and finance leases, net $ 3,390,033 $ 3,165,387 (1) For December 31, 2021, and 2020, this amount includes unamortized debt issuance costs for Cleco Holdings of $10.2 million and $11.7 million, respectively, partially offset by deferred debt issuance costs eliminated as a result of the 2016 Merger of $4.9 million and $5.3 million, respectively. For more information, see Note 6 — “Regulatory Assets and Liabilities — Cleco Holdings’ 2016 Merger Adjustments.” The principal amounts payable under long-term debt agreements for each year through 2026 and thereafter are as follows: (THOUSANDS) CLECO POWER CLECO For the year ending Dec. 31, 2022 $ 25,000 $ 25,000 2023 $ 425,000 $ 590,000 2024 $ 175,000 $ 375,000 2025 (1) $ 75,000 $ 75,000 2026 $ 130,000 $ 665,000 Thereafter $ 995,000 $ 1,645,000 (1) Does not include Series A GO Zone bonds that have a maturity date of December 2038 but a mandatory tender in May 2025. The principal amounts payable under the finance lease agreement for each year through 2026 and thereafter are as follows: (THOUSANDS) CLECO POWER CLECO For the year ending Dec. 31, 2022 $ 755 $ 755 2023 $ 836 $ 836 2024 $ 925 $ 925 2025 $ 1,023 $ 1,023 2026 $ 1,133 $ 1,133 Thereafter $ 9,890 $ 9,890 For more information on the finance agreement, see Note 4 — “Leases — Finance Lease.” Cleco Power Debt At December 31, 2021, Cleco Power had no short-term debt outstanding under its $300.0 million revolving credit facility. Cleco Power had $75.0 million of short-term debt outstanding at December 31, 2020 under its revolving credit facility. For more information on Cleco Power’s revolving credit facility, see “— Credit Facilities.” There were no amounts outstanding under the uncommitted line of credit at December 31, 2021. At December 31, 2021, Cleco Power’s long-term debt and finance leases outstanding was $1.83 billion, of which $25.8 million was due within one year. The amount due within one year primarily represents $25.0 million of senior notes due in December 2022. On May 21, 2021, Cleco Power entered into a $125.0 million term loan agreement. This agreement replaced Cleco Power’s existing term loan agreement. This agreement matures on May 21, 2024, and has an interest rate of LIBOR plus 1.25% or ABR plus 0.25%. On September 10, 2021, Cleco Power completed the issuance and private sale of $325.0 million aggregate principal amount of its floating rate senior notes due in 2023. The senior notes include an optional redemption, in whole or in part, at any time on or after March 15, 2022, at 100% of the principal amount of the senior notes. The senior notes bear interest at a rate of three-month LIBOR plus 50 basis points per annum and reset quarterly. The net proceeds from the issuance were used for general limited liability company purposes, including the repayment of borrowings under Cleco Power’s revolving credit agreement. The senior notes are governed by an indenture entered into between Cleco Power and a trustee. The indenture contains certain customary covenants that restrict Cleco Power’s ability to merge, consolidate or transfer or lease all or substantially all of its assets or create or incur certain liens securing indebtedness. All of Cleco Power’s debt outstanding at December 31, 2021, and 2020, is unsecured and unsubordinated. Cleco Debt At December 31, 2021, Cleco had no short-term debt outstanding under its $475.0 million revolving credit facilities. Cleco had $75.0 million of short-term debt outstanding at December 31, 2020 under its revolving credit facility. For more information on Cleco’s revolving credit facilities, see “— Credit Facilities.” At December 31, 2021, Cleco’s long-term debt and finance leases outstanding was $3.48 billion, of which $93.5 million was due within one year. The long-term debt due within one year at December 31, 2021, primarily represents $67.7 million of principal payments on Cleco Holdings’ debt as required by the Cleco Cajun Transaction commitments to the LPSC, as well as $25.0 million of Cleco Power’s senior notes due in December 2022. On May 21, 2021, Cleco Holdings entered into a $266.0 million term loan agreement. This agreement replaced Cleco Holdings’ existing term loan agreement. This agreement matures on May 21, 2024 and has an interest rate of LIBOR plus 1.625% or ABR plus 0.625%. All of Cleco’s debt outstanding at December 31, 2021, and 2020, is unsecured and unsubordinated. 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 by December 31, 2024. As of December 31, 2021, Cleco Holdings was in compliance with these commitments. 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 $ 133,300 2021 $ 200,000 2022 $ 267,700 2023 $ 333,300 2024 $ 400,000 Credit Facilities At December 31, 2021, Cleco had two separate revolving credit facilities, one for Cleco Holdings in the amount of $175.0 million with no outstanding borrowings and one for Cleco Power in the amount of $300.0 million with no outstanding borrowings. These revolving credit agreements were entered into on May 21, 2021, and replaced the respective existing agreements. The total of all revolving credit facilities creates a maximum aggregate capacity of $475.0 million. Cleco Holdings’ revolving credit facility provides for working capital and other financing needs. The revolving credit facility includes restrictive financial covenants and expires in May 2026. Under covenants contained in Cleco Holdings’ revolving credit facility, Cleco is required to maintain total indebtedness less than or equal to 65.0% of total capitalization. At December 31, 2021, Cleco Holdings was in compliance with the covenants of its revolving credit facility. At December 31, 2021, the borrowing costs under the facility were equal to LIBOR plus 1.625% or ABR plus 0.625%, plus commitment fees of 0.275%. If Cleco Holdings’ credit ratings were to be downgraded one level by the credit rating agencies, Cleco Holdings may be required to pay incremental interest and commitment fees of 0.125% and 0.05%, respectively, under the pricing levels of its revolving credit facility. Cleco Power’s revolving credit facility provides for working capital and other financing needs. The revolving credit facility includes restrictive financial covenants and expires in May 2026. Under covenants contained in Cleco Power’s revolving credit facility, Cleco Power is required to maintain total indebtedness less than or equal to 65.0% of total capitalization. At December 31, 2021, Cleco Power was in compliance with the covenants of its credit facility. At December 31, 2021, the borrowing costs under the facility were equal to LIBOR plus 1.25% or ABR plus 0.25%, plus commitment fees of 0.15%. If Cleco Power’s credit ratings were to be downgraded one level by the credit rating agencies, Cleco Power may be required to pay incremental interest and commitment fees of 0.125% and 0.025%, respectively, under the pricing levels of its revolving credit facility. If Cleco Holdings or Cleco Power were to default under the covenants in their respective revolving credit facilities or other debt agreements, they would be unable to borrow additional funds under the facilities, and the lenders could accelerate all principal and interest outstanding. Further, if Cleco Power were to default under its revolving credit facility or other debt agreements, Cleco Holdings would be considered in default under its revolving credit facility. |
Pension Plan and Employee Benef
Pension Plan and Employee Benefits | 12 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
Pension Plan and Employee Benefits | Note 10 — Pension Plan and Employee Benefits Pension Plan and Other Benefits Plan Employees hired before August 1, 2007, are covered by a non-contributory, defined benefit pension plan. Benefits under the plan reflect an employee’s years of service, age at retirement, and highest total average compensation for any consecutive five The pension 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 the employee’s years of service, age at retirement, and accrued benefit at retirement. The interest crediting rate on the cash balance plan was 3.06% and 3.15% at December 31, 2021, and 2020, respectively. Cleco’s retirees may be eligible to receive Other Benefits. Dependents of Cleco’s retirees may also be eligible to receive Other Benefits with the exception of life insurance benefits. Cleco recognizes the expected cost of Other Benefits during the periods in which the benefits are earned. The employee pension plan and Other Benefits plan obligation, plan assets, and funded status at December 31, 2021, and 2020 are presented in the following table: PENSION BENEFITS OTHER BENEFITS FOR THE YEAR ENDED DEC. 31, FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2021 2020 2021 2020 Change in benefit obligation Benefit obligation at beginning of period $ 686,384 $ 610,323 $ 56,331 $ 52,722 Service cost 10,516 9,820 2,425 2,153 Interest cost 18,668 20,816 1,283 1,651 Plan participants’ contributions — — — 1,289 Actuarial (gain) loss (9,823) 71,708 (81) 4,221 Expenses paid (3,306) (2,661) — — Benefits paid (25,292) (23,622) (4,701) (5,705) Special/contractual termination benefits 3,270 — — — Benefit obligation at end of period 680,417 686,384 55,257 56,331 Change in plan assets Fair value of plan assets at beginning of period 516,120 460,097 — — Actual return on plan assets 39,905 66,557 — — Employer contributions — 15,750 — — Expenses paid (3,306) (2,662) — — Benefits paid (25,292) (23,622) — — Fair value of plan assets at end of period 527,427 516,120 — — Unfunded status $ (152,990) $ (170,264) $ (55,257) $ (56,331) The employee pension plan accumulated benefit obligation at December 31, 2021, and 2020 is presented in the following table: PENSION BENEFITS AT DEC. 31, (THOUSANDS) 2021 2020 Accumulated benefit obligation $ 640,490 $ 636,199 The pension net actuarial gain was $26.9 million for the year ended December 31, 2021, primarily due to an increase in the discount rate and higher than expected return on assets, partially offset by an update to the census data. The pension net actuarial loss was $30.1 million for the year ended December 31, 2020, primarily due to a decline in the discount rate, partially offset by greater than expected returns on the fair value of plan assets. The Other Benefits net actuarial gain was less than $0.1 million for the year ended December 31, 2021. The Other Benefits net actuarial loss was $4.2 million for the year ended December 31, 2020, primarily due to a decline in the discount rate. The following table presents the net actuarial gains/losses and prior service costs/credits included in other comprehensive income for Other Benefits and in regulatory assets for pension related to current year gains and losses as a result of being included in net periodic benefit costs for the employee pension plan and Other Benefits plan for December 31, 2021, and 2020: PENSION BENEFITS OTHER BENEFITS FOR THE YEAR ENDED DEC. 31, FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2021 2020 2021 2020 Net actuarial (gain) loss occurring during period $ (26,925) $ 30,126 $ (81) $ 4,221 Net actuarial loss amortized during period $ 20,739 $ 16,292 $ 1,523 $ 1,389 Prior service credit amortized during period $ — $ (60) $ — $ — The following table presents net actuarial gains/losses in accumulated other comprehensive income for Other Benefits and in regulatory assets for pension that have not been recognized as components of net periodic benefit costs for the employee pension plan and Other Benefits plans at December 31, 2021, and 2020: PENSION BENEFITS OTHER BENEFITS AT DEC. 31, AT DEC. 31, (THOUSANDS) 2021 2020 2021 2020 Net actuarial loss $ 117,773 $ 165,437 $ 22,785 $ 21,342 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 Consolidated Statements of Income. The components of net periodic pension and Other Benefits costs for 2021, 2020, and 2019 are as follows: PENSION BENEFITS OTHER BENEFITS FOR THE YEAR ENDED DEC. 31, FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2021 2020 2019 2021 2020 2019 Components of periodic benefit costs Service cost $ 10,516 $ 9,820 $ 8,414 $ 2,425 $ 2,153 $ 1,191 Interest cost 18,668 20,816 22,485 1,283 1,651 1,646 Expected return on plan assets (22,801) (24,974) (26,502) — — — Amortizations Prior service credit — (60) (71) — — — Net loss 20,738 16,292 7,849 1,523 1,389 21 Net periodic benefit cost $ 27,121 $ 21,894 $ 12,175 $ 5,231 $ 5,193 $ 2,858 Special/contractual termination benefits $ 3,270 $ — $ — $ — $ — $ — Total benefit cost $ 30,391 $ 21,894 $ 12,175 $ 5,231 $ 5,193 $ 2,858 Effective September 30, 2021, the pension plan was amended to offer an enhanced pension benefit to certain employees participating in the plan that elected to retire during a certain retirement window. Those certain employees who elected by September 30, 2021, to receive the enhanced pension benefits will receive a 10% increase in calculated pension benefits. This resulted in a special termination benefit cost for Cleco Power and Support Group of $2.4 million and $0.9 million , respectively, included as an expense of the pension plan. 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 years ended December 31, 2021, 2020, and 2019 was $4.5 million, $3.5 million, and $2.2 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 Consolidated Statements of Income for the years ended December 31, 2021, 2020, and 2019 was $4.7 million, $4.8 million, and $3.1 million, respectively. The current and non-current portions of the Other Benefits liability for Cleco and Cleco Power at December 31, 2021, and 2020 are as follows: Cleco AT DEC. 31, (THOUSANDS) 2021 2020 Current $ 5,181 $ 4,463 Non-current $ 50,093 $ 51,868 Cleco Power AT DEC. 31, (THOUSANDS) 2021 2020 Current $ 4,432 $ 3,865 Non-current $ 39,315 $ 40,734 The measurement date used to determine the pension and other postretirement benefits is December 31. The assumptions used to determine the benefit obligation and the periodic costs are as follows: PENSION BENEFITS OTHER BENEFITS AT DEC. 31, AT DEC. 31, 2021 2020 2021 2020 Weighted-average assumptions used to determine the benefit obligation Discount rate 2.98 % 2.74 % 2.82 % 2.39 % Rate of compensation increase 2.73 % 2.75 % N/A N/A PENSION BENEFITS OTHER BENEFITS FOR THE YEAR ENDED DEC. 31, FOR THE YEAR ENDED DEC. 31, 2021 2020 2019 2021 2020 2019 Weighted-average assumptions used to determine the net benefit cost Discount rate 2.74 % 3.43 % 4.35 % 2.39 % 3.25 % 4.16 % Expected return on plan assets 5.00 % 5.91 % 6.55 % N/A N/A N/A Rate of compensation increase 2.71 % 2.75 % 2.81 % N/A N/A N/A The expected return on plan assets was determined by examining the risk profile of each target category as compared to the expected return on that risk, within the parameters determined by the Retirement Committee. In assessing the risk as compared to return profile, historical returns as compared to risk were considered. The historical risk compared to returns was adjusted for the expected future long-term relationship between risk and return. The adjustment for the future risk compared to returns was, in part, subjective and not based on any measurable or observable events. For the calculation of the 2022 periodic expense, Cleco increased the expected long-term return on plan assets to 5.25%. Cleco expects pension expense to decrease in 2022 by approximately $14.3 million due to an increase in the discount rate and an increase in expected return on plan assets. Employee pension plan assets are invested in accordance with the Pension Plan’s Investment Policy Statement. At December 31, 2021, allowable investments included U.S. Equity Portfolios, International Equity - Developed Markets Portfolios, Emerging Markets Equity Portfolios, Multi-Asset Credits, Treasury Separate Trading of Registered Interest and Principal of Securities (STRIPS), Fixed Income Portfolios - Long Credit and Intermediate Government Credit, and Real Estate Portfolios. Real estate funds and the pooled separate accounts are stated at estimated market value based on appraisal reports prepared annually by independent real estate appraisers (members of the American Institute of Real Estate Appraisers). The estimated market value of recently acquired properties is assumed to approximate cost. Fair Value Disclosures Cleco classifies assets and liabilities measured at their fair value according to three different levels, depending on the inputs used in determining fair value. • Level 1 – unadjusted quoted prices in active, liquid markets for the identical asset or liability, • Level 2 – quoted prices for similar assets and liabilities in active markets or other inputs that are observable for the asset or liability, including inputs that can be corroborated by observable market data, observable interest rate yield curves and volatilities, and • Level 3 – unobservable inputs based upon the entities’ own assumptions. There have been no changes in the methodologies for determining fair value at December 31, 2021, and 2020. The following tables disclose the pension plan’s fair value of financial assets measured on a recurring basis: (THOUSANDS) AT DEC. 31, 2021 QUOTED PRICES SIGNIFICANT SIGNIFICANT Asset Description Cash equivalents $ 7,433 $ — $ 7,433 $ — Government securities 75,815 — 75,815 — Mutual funds Domestic 106,694 106,694 — — International 56,169 56,169 — — Real estate funds 39,091 — — 39,091 Corporate debt 166,435 — 166,435 — Total $ 451,637 $ 162,863 $ 249,683 $ 39,091 Investments measured at net asset value* 73,771 Interest accrual 2,019 Total net assets $ 527,427 *Investments measured at net asset value consist of Common/collective trust. (THOUSANDS) AT DEC. 31, 2020 QUOTED PRICES SIGNIFICANT SIGNIFICANT Asset Description Cash equivalents $ 19,567 $ — $ 19,567 $ — Government securities 26,863 — 26,863 — Mutual funds Domestic 107,055 107,055 — — International 60,104 60,104 — — Real estate funds 35,962 — — 35,962 Corporate debt 192,261 — 192,261 — Total $ 441,812 $ 167,159 $ 238,691 $ 35,962 Investments measured at net asset value* 72,044 Interest accrual 2,264 Total net assets $ 516,120 *Investments measured at net asset value consist of Common/collective trust. Level 3 valuations are derived from other valuation methodologies including pricing models, discounted cash flow models, and similar techniques. Level 3 valuations incorporate subjective judgments and consider assumptions including capitalization rates, discount rates, cash flows, and other factors that are not observable in the market. Significant increases or decreases in any of those inputs in isolation would result in a significantly different fair value measurement. The following is a reconciliation of the beginning and ending balances of the pension plan’s real estate funds measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the years ended December 31, 2021, and 2020: (THOUSANDS) Balance, Dec. 31, 2019 $ 18,017 Realized gains 251 Unrealized losses (1,603) Purchases 20,893 Sales (1,596) Balance, Dec. 31, 2020 $ 35,962 Realized gains 503 Unrealized gains 3,524 Purchases 1,865 Sales (2,763) Balance, Dec. 31, 2021 $ 39,091 The market-related value of plan assets differs from the fair value of plan assets by the amount of deferred asset gains or losses. Actual asset returns that differ from the expected return on plan assets are deferred and recognized in the market-related value of assets on a straight-line basis over a five-year period. For 2021, the return on plan assets was 7.14% compared to an expected long-term return of 5.00%. The 2020 return on pension plan assets was 15.89% compared to an expected long-term return of 5.91%. As of December 31, 2021, none of the pension plan participants’ future annual benefits are covered by insurance contracts. Pension Plan Investment Objectives Cleco’s Retirement Committee has established investment performance objectives of the pension plan assets. Over a rolling three- to five-year annualized period, the objectives are for the pension plan’s annualized total return to: • Exceed the (FAS) actuarial assumed rate of return on plan assets, and • Exceed the annualized total return of the following customized index (based on the target allocation in the glide path) consisting of a mixture of S&P 500 Index, Russell 2500 Index, Morgan Stanley Capital International All Country World ex U.S. Index, Morgan Stanley Capital International Emerging Markets Index, Custom Index related to Multi-Asset Credit asset class, Bloomberg Barclays Capital Long Credit Index, Bloomberg Barclays 15+ Year Treasury STRIPS, Bloomberg Barclays Intermediate/Government Credit Index, and National Council of Real Estate Investment Fiduciaries Index. Risk characteristics of the portfolio (annualized standard deviation of returns) should be similar to or less than the custom index. In order to meet the objectives and to control risk, the Retirement Committee has established the following guidelines that the investment managers must follow: U.S. Equity Portfolios • Equity holdings in any single company (including common stock and convertible securities) must not exceed 10% of the manager’s portfolio measured at market value. • A minimum of 25 stocks should be owned in the portfolio. • Equity holdings should represent 90% of the portfolio at all times. • Equity holdings in any one economic sector (as defined by the Global Industry Classification Standard) should not exceed the lesser of three times the sector’s weighting in the S&P 500 Index or 35% of the portfolio. • Marketable common stocks, preferred stocks convertible into common stocks, and fixed income securities convertible into common stocks are the only permissible equity investments. • Securities in foreign (non-U.S.) entities denominated in U.S. dollars are limited to 10% of the manager’s portfolio measured at market value. Securities denominated in currencies other than U.S. dollars are not permissible investments. • The purchase of securities on margin and short sales is prohibited. International Equity - Developed Markets Portfolios • Equity holdings in a single company (including common stock and convertible securities) should not exceed 5% of the manager’s portfolio measured at market value. • A minimum of 30 individual stocks should be owned in the portfolio. • Equity holdings in any industry sector (as defined by the Global Industry Classification Standard) should not exceed 35% of the portfolio measured at market value. • A minimum of 50% of the countries within the Morgan Stanley Capital International All Country World ex U.S. Index should be represented within the portfolio. The allocation to an individual country should not exceed the lesser of 30% or 5 times the country’s weighting within the Morgan Stanley Capital International All Country World ex U.S. Index. • Currency hedging decisions are at the discretion of the investment manager. Emerging Markets Portfolios • Equity holdings in any single company (including common stock and convertible securities) should not exceed 10% of the manager’s portfolio measured at market value. • A minimum of 30 individual stocks should be held within the portfolio. • Equity holdings in any one industry (as defined by Global Industry Classification Standard) should not exceed 25% of the manager’s portfolio at market value. • Equity investments must represent at least 75% of the portfolio under normal circumstances. • A minimum of three countries should be represented within the portfolio. • Illiquid securities which are not readily marketable may represent no more than 10% of portfolio assets. • Currency hedging decisions are at the discretion of the investment manager. Multi-Asset Credits • Assets can include, but would not be limited to, high yield debt, emerging market debt, global investment grade credit and bank loans, as well as fixed income strategies. • Currency hedging decisions are the discretion of the investment manager. Treasury STRIPS • The STRIPS are synthetic zero-coupon bonds that are created by separating each coupon and principal payment of a treasury bond into a separate security. STRIPS take the form of a zero-coupon bond which is sold at a discount to face value and mature at par. They are backed by U.S. Treasury securities. • Implementation of the portfolio is either through Treasury Futures or purchase of Treasury STRIPS through an investment manager. • The benchmark would be Bloomberg Barclays 15+ Year Treasury STRIPS. Fixed Income Portfolios - Long Credit and Intermediate Government Credit • Permitted securities include all U.S. dollar denominated investment grade corporate debt, including sovereign, super-nationals, and Yankee bonds, U.S. government obligations and agency debt, all U.S. dollar denominated investment grade mortgage-backed securities, all U.S. dollar investment grade private placements or securities issued as 144A with or without registration rights. • The portfolio can invest in surplus notes, trust preferred, E-Caps, and Hybrids. These types of securities do have risk of coupon deferral. • The portfolio can invest in both senior and subordinated debt and money market securities: Treasury Bills, Commercial or Asset-backed paper rated A1/P1 or higher. • The duration of the portfolio must be within +/- 1 year of benchmark. • Sub-asset classes included but not limited to: cash, government, government related securities investment, grade credit, mortgage-backed securities asset-backed, securities, private placements, commercial mortgage-backed securities taxable municipal bonds • High yield up to 5% from downgrades with no securities to be held below B- (rated by major rating agencies). Not allowed to purchase high yield securities. (120 day cure period for downgrades below B- - -) • Securities must have a maximum position size of 5% for A rated securities and 3% for BBB rated securities. • Treasury STRIPS managers will have the discretion to utilize U.S. treasury futures and STRIPS as needed to adjust the portfolio duration. Real Estate Portfolios • Real estate funds should be invested primarily in direct equity positions, with debt and other investments representing less than 25% of the fund. • Leverage should be no more than 70% of the gross market value of the fund. • Investments should be focused on existing income-producing properties, with land and development properties representing less than 40% of the fund. The use of futures and options positions which leverage portfolio positions through borrowing, short sales, or other encumbrances of the Plan’s assets is prohibited. The Long Duration fixed income managers, Intermediate Government Credit and Treasury STRIPS manger(s) are exempt from the prohibition on derivatives use, due to the nature of long duration fixed income management. The investment manager shall not purchase any securities of its organization or affiliated entities. The following chart shows the dynamic asset allocation based on the funded ratio at December 31, 2021: PERCENT OF TOTAL PLAN ASSETS AT DEC. 31, 2021 MINIMUM TARGET MAXIMUM Return-seeking Domestic equity 19 % International equity 20 % Multi-asset credit 6 % Real estate 5 % Total return-seeking 45 % 50 % 55 % Liability hedging* 45 % 50 % 55 % *Liability hedging has no target subcategories. The assumed health care cost trend rates used to measure the expected cost of Other Benefits is 5.0% for 2022 and remains at 5.0% thereafter. The rate used for 2021 was also 5.0%. Assumed health care cost trend rates have a limited effect on the amount reported for Cleco’s health care plans. The projected benefit payments for the employee pension plan and Other Benefits plan for each year through 2026 and the next five years thereafter are listed in the following table: (THOUSANDS) PENSION BENEFITS OTHER For the year ending Dec. 31, 2022 $ 29,239 $ 5,253 2023 $ 29,833 $ 5,079 2024 $ 30,566 $ 4,902 2025 $ 31,578 $ 4,759 2026 $ 32,339 $ 4,682 Next five years $ 170,382 $ 21,553 SERP Certain Cleco officers are covered by SERP. In 2014, SERP was closed to new participants; however, with regard to current SERP participants, including former employees or their beneficiaries, all terms of SERP will continue, other than as described below. SERP is a non-qualified, non-contributory, defined benefit pension plan. Generally, benefits under the plan reflect an employee’s years of service, age at retirement, and the sum of (a) the highest base salary paid out over the last five 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. SERP’s funded status at December 31, 2021, and 2020 is presented in the following table: SERP BENEFITS FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2021 2020 Change in benefit obligation Benefit obligation at beginning of period $ 97,225 $ 89,128 Service cost 232 399 Interest cost 2,538 2,932 Actuarial (gain) loss (1,932) 9,621 Benefits paid (4,884) (4,590) Plan amendments — (265) Benefit obligation at end of period $ 93,179 $ 97,225 SERP’s accumulated benefit obligation at December 31, 2021, and 2020 is presented in the following table: SERP BENEFITS AT DEC. 31, (THOUSANDS) 2021 2020 Accumulated benefit obligation $ 93,179 $ 97,225 The following table presents net actuarial gains/losses and prior service costs/credits included in other comprehensive income or regulatory assets related to current year gains and losses as a result of being amortized as a component of net periodic benefit costs for SERP for December 31, 2021, and 2020: SERP BENEFITS FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2021 2020 Net actuarial (gain) loss occurring during year $ (1,932) $ 9,621 Net actuarial loss amortized during year $ 1,228 $ 3,185 Prior service credit amortized during year $ (215) $ (215) The following table presents net actuarial losses and prior service credit in accumulated other comprehensive income and regulatory assets that have not been recognized as components of net periodic benefit costs for SERP at December 31, 2021, and 2020: SERP BENEFITS AT DEC. 31 (THOUSANDS) 2021 2020 Net actuarial loss $ 31,526 $ 34,825 Prior service credit $ (1,514) $ (1,728) 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 Consolidated Statements of Income. The components of the net SERP costs for 2021, 2020, and 2019 are as follows: SERP BENEFITS FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2021 2020 2019 Components of periodic benefit costs Service cost $ 232 $ 399 $ 330 Interest cost 2,538 2,932 3,326 Amortizations Prior service credit (215) (215) (160) Net loss 1,228 3,186 1,544 Net periodic benefit cost $ 3,783 $ 6,302 $ 5,040 The measurement date used to determine the SERP benefits is December 31. The assumptions used to determine the benefit obligation and the periodic costs are as follows: SERP BENEFITS AT DEC. 31, 2021 2020 Weighted-average assumptions used to determine the benefit obligation Discount rate 2.95 % 2.64 % Rate of compensation increase N/A N/A SERP BENEFITS 2021 2020 2019 Weighted-average assumptions used to determine the net benefit cost Discount rate 2.64 % 3.37 % 4.34 % Rate of compensation increase N/A N/A 5.00 % The expense related to SERP reflected on Cleco Power’s Consolidated Statements of Income for the years ended December 31, 2021, 2020, and 2019 was $0.6 million , $1.0 million, and $0.8 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 December 31, 2021, and 2020 are as follows: Cleco AT DEC. 31, (THOUSANDS) 2021 2020 Current $ 4,654 $ 4,703 Non-current $ 88,523 $ 92,522 Cleco Power AT DEC. 31, (THOUSANDS) 2021 2020 Current $ 679 $ 711 Non-current $ 12,909 $ 19,828 The projected benefit payments for SERP for each year through 2026 and the next five years thereafter are shown in the following table: (THOUSANDS) 2022 2023 2024 2025 2026 NEXT FIVE SERP $ 4,722 $ 4,840 $ 4,908 $ 5,054 $ 5,175 $ 25,391 401(k) 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) was amended upon the close of the Cleco Cajun Transaction to include Cleco Cajun employees. Effective October 1, 2020, Cleco’s 401(k) Plan was restated to implement the Setting Every Community Up for Retirement Act of 2019, and the CARES Act to permit COVID-19 distributions along with other provisions. Cleco’s 401(k) Plan expense for the years ended December 31, 2021, 2020, and 2019 was as follows: FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2021 2020 2019 401(k) Plan expense $ 9,366 $ 9,685 $ 7,861 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 years ended December 31, 2021, 2020, and 2019 was as follows: FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2021 2020 2019 401(k) Plan expense $ 4,350 $ 4,424 $ 3,408 Effective September 30, 2021, the 401(k) plan was amended to offer an enhanced 401(k) benefit to certain employees participating in the plan that elected to retire during a certain retirement window. Those certain employees who elected by September 30, 2021, to receive the enhanced 401(k) benefits will receive a one-time contribution up to 30% of the employee’s 2021 base salary in accordance with IRS contribution limits. This resulted in a one-time benefit cost of $0.2 million included as an expense of the 401(k) plan. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 11 — Income Taxes Cleco For the year ended December 31, 2021, income tax expense was lower than the amount computed by applying the statutory federal rate. For the years ended December 31, 2020, and 2019, income tax expense was higher than the amount computed by applying the statutory federal rate. The differences are as follows: FOR THE YEAR ENDED DEC. 31, (THOUSANDS, EXCEPT PERCENTAGES) 2021 2020 2019 Income before tax $ 208,077 $ 158,018 $ 195,830 Statutory rate 21.0 % 21.0 % 21.0 % Tax expense at federal statutory rate $ 43,696 $ 33,184 $ 41,124 Increase (decrease) Plant differences, including AFUDC flowthrough (356) 5,100 (4,687) State income taxes, net of federal benefit 9,619 7,190 9,565 Return to accrual adjustment (3,862) 7,218 (3,963) Amortization of excess ADIT (37,254) (16,667) — Other, net 1,268 (307) 1,126 Total tax expense $ 13,111 $ 35,718 $ 43,165 Effective rate 6.3 % 22.6 % 22.0 % Information about current and deferred income tax expense is as follows: FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2021 2020 2019 Current federal income tax (benefit) expense $ (2) $ (2,634) $ 1,600 Deferred federal income tax (benefit) expense (9,581) 21,865 37,963 Amortization of accumulated deferred investment tax credits (142) (159) (191) Total federal income tax (benefit) expense $ (9,725) $ 19,072 $ 39,372 Current state income tax (benefit) expense (699) 2,636 1,675 Deferred state income tax expense 23,535 14,010 2,118 Total state income tax expense $ 22,836 $ 16,646 $ 3,793 Total federal and state income tax expense $ 13,111 $ 35,718 $ 43,165 Items charged or credited directly to member’s equity Federal deferred 514 (2,202) (5,130) State deferred (120) (720) (1,678) Total tax expense (benefit) from items charged directly to member’s equity $ 394 $ (2,922) $ (6,808) Total federal and state income tax expense $ 13,505 $ 32,796 $ 36,357 The balance of accumulated deferred federal and state income tax assets and liabilities at December 31, 2021, and 2020 was comprised of the following: AT DEC. 31, (THOUSANDS) 2021 2020 Depreciation and property basis differences $ (885,747) $ (865,807) Net operating loss carryforward 195,488 109,819 NMTC 92,364 92,364 Fuel costs (38,070) (8,906) Other comprehensive income 12,750 13,016 Regulated operations regulatory liability, net (93,990) 47,060 Postretirement benefits 34,683 25,775 Merger fair value adjustments (49,806) (51,073) Other (23,436) (23,624) Accumulated deferred federal and state income taxes, net $ (755,764) $ (661,376) Cleco Power For the year ended December 31, 2021, income tax expense was lower than the amount computed by applying the statutory rate. For the years ended December 31, 2020, and 2019, income tax expense was higher than the amount computed by applying the statutory rate. The differences are as follows: FOR THE YEAR ENDED DEC. 31, (THOUSANDS, EXCEPT PERCENTAGES) 2021 2020 2019 Income before tax $ 124,735 $ 123,454 $ 193,714 Statutory rate 21.0 % 21.0 % 21.0 % Tax expense at federal statutory rate $ 26,194 $ 25,925 $ 40,680 Increase (decrease) Plant differences, including AFUDC flowthrough (356) 5,100 (4,687) State income taxes, net of federal benefit 6,343 6,303 11,683 Return to accrual adjustment (3,831) 7,082 (2,008) Amortization of excess ADIT (37,254) (16,667) — Other, net (449) (944) (216) Total taxes $ (9,353) $ 26,799 $ 45,452 Effective rate (7.5) % 21.7 % 23.5 % Information about current and deferred income tax expense is as follows: FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2021 2020 2019 Current federal income tax expense $ — $ 15,724 $ 14,781 Deferred federal income tax (benefit) expense (23,071) (5,033) 22,443 Amortization of accumulated deferred investment tax credits (142) (159) (191) Total federal income tax (benefit) expense $ (23,213) $ 10,532 $ 37,033 Current state income tax expense — 5,069 9,063 Deferred state income tax expense (benefit) 13,860 11,198 (644) Total state income tax expense $ 13,860 $ 16,267 $ 8,419 Total federal and state income tax (benefit) expense $ (9,353) $ 26,799 $ 45,452 Items charged or credited directly to members’ equity Federal deferred 1,714 (576) (2,500) State deferred 338 (189) (818) Total tax expense (benefit) from items charged directly to member’s equity $ 2,052 $ (765) $ (3,318) Total federal and state income tax (benefit) expense $ (7,301) $ 26,034 $ 42,134 The balance of accumulated deferred federal and state income tax assets and liabilities at December 31, 2021, and 2020 was comprised of the following: AT DEC. 31, (THOUSANDS) 2021 2020 Depreciation and property basis differences $ (744,594) $ (725,034) Net operating loss carryforward 125,392 35,442 Fuel costs (14,552) (7,072) Other comprehensive income 6,222 8,274 Regulated operations regulatory liability, net (93,990) 47,060 Postretirement benefits 20,649 11,951 Other (6,606) (5,219) Accumulated deferred federal and state income taxes, net $ (707,479) $ (634,598) Tax Rate Changes On November 13, 2021, the Louisiana state corporate income tax rate decreased from 8% to 7.5%, effective for the income tax periods beginning on or after January 1, 2022. In accordance with accounting guidance, the impact of the rate change was recorded on Cleco and Cleco Power’s consolidated financial statements at December 31, 2021. The impact was a $20.0 million increase to Accumulated deferred federal and state income taxes, net and a $20.0 million decrease to Regulatory liabilities - deferred taxes, net. There was no impact to income tax expense. Valuation Allowance Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. At December 31, 2021, and 2020, Cleco had a deferred tax asset resulting from a NMTC carryforward of $92.4 million. If the NMTC carryforward is not utilized, it will begin to expire in 2030. Management considers it more likely than not that the deferred tax asset related to the NMTC carryforward will be realized; therefore, no valuation allowance has been recorded for Cleco and Cleco Power. Net Operating Losses For the 2020 tax year, Cleco created a federal net operating loss of approximately $550.0 million and a state net operating loss of approximately $186.1 million. For the 2021 tax year, Cleco expects to create an additional federal net operating loss of $218.4 million and a state net operating loss of $252.9 million. For the 2020 tax year, Cleco Power created a federal net operating loss of approximately $187.8 million and a state operating loss of $186.1 million. For the 2021 tax year, Cleco Power expects to create an additional federal net operating loss and state net operating loss of $249.6 million and $252.9 million, respectively. Both the federal and state net operating losses may be carried forward indefinitely. Cleco and Cleco Power consider 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 December 31, 2021, and 2020, Cleco and Cleco Power had no interest payable related to uncertain tax positions. For the years ended December 31, 2021, 2020, and 2019, Cleco and Cleco Power had no interest expense related to uncertain tax positions. At December 31, 2021, and 2020, Cleco and Cleco Power had no liability for unrecognized tax positions. Income Tax Audits Cleco participates in the IRS’s Compliance Assurance Process in which tax positions are examined and agreed upon prior to filing the federal tax return. While the statute of limitations remains open for tax years 2018, 2019, and 2020, the IRS has completed its review of years 2018 through 2020, and these tax returns were filed consistent with the IRS’s review. The IRS has placed Cleco in the Bridge phase of the Compliance Assurance Process for the 2020 and 2021 tax years. In this phase, the IRS will not accept any disclosures, conduct any reviews, or provide any assurances. The IRS has accepted Cleco’s application for the Compliance Assurance Process for the 2022 tax year. The state income tax years 2018, 2019, and 2020 remain subject to examination by the Louisiana Department of Revenue. Cleco classifies income tax penalties as a component of other expenses. For the years ended December 31, 2021, 2020, and 2019, no penalties were recognized. TCJA On December 22, 2017, the TCJA was enacted into law. The TCJA includes significant changes to the IRC, as amended, including amendments which significantly change the taxation of business entities and includes specific provisions related to rate regulated activities, including Cleco Power. The most significant change that impacts Cleco is the reduction of the corporate federal income tax rate from 35% to 21%. At December 31, 2021, and 2020, Cleco and Cleco Power had $302.0 million and $352.4 million, respectively, accrued for the excess ADIT. For more information on the regulatory treatment of the TCJA regulatory liability, see Note 6 — “Regulatory Assets and Liabilities — Deferred Taxes, Net” and Note 13 — “Regulation and Rates — TCJA.” CARES Act In March 2020, the CARES Act was signed into law. The CARES Act includes tax relief provisions such as an alternative minimum tax credit refund, a five-year net operating loss carryback from years 2018 through 2020, and deferred payments of employer payroll taxes. Cleco deferred $6.0 million in employer payroll tax payments for the period March 27, 2020, through December 31, 2020. Cleco paid $3.0 million of the obligation in the fourth quarter of 2021, and will pay the remaining $3.0 million by December 31, 2022. Cleco Power deferred $3.6 million in employer payroll tax payments for the period March 27, 2020, through December 31, 2020. Cleco Power paid $1.8 million of the obligation in the fourth quarter of 2021, and will pay the remaining $1.8 million by December 31, 2022. The CARES Act also included modifications on the limitations of business interest for the 2020 and 2019 tax years. The modifications increased the allowable business interest deduction from 30% to 50% of adjusted taxable income. Cleco did not have any disallowed interest for the 2020 and 2019 tax years. |
Disclosures about Segments
Disclosures about Segments | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Disclosures about Segments | Note 12 — Disclosures about Segments Cleco 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, who is Cleco’s chief operating decision maker, with discrete financial information and, at least quarterly, present discrete financial information to Cleco Holdings’ and, in the case of Cleco Power, Cleco Power’s Boards of Managers. The reportable segment prepares budgets that are presented to and approved by Cleco Holdings’ and, in the case of Cleco Power, Cleco Power’s Boards of Managers. The column shown as Other in the following tables includes the holding company, a shared services subsidiary, and an investment subsidiary. Upon the completion of the Cleco Cajun Transaction on February 4, 2019, Cleco Cajun became a reportable segment. For more information on the Cleco Cajun Transaction, see Note 3 — “Business Combinations.” There are no other changes to Cleco’s existing reportable segments. The financial results in the following tables are presented on an accrual basis. EBITDA is a key non-GAAP financial measure used by the CEO to assess the operating performance of Cleco’s segments. Management evaluates the performance of Cleco’s segments and allocates resources to them based on segment profit and the requirements to implement strategic initiatives and projects to meet current business objectives. EBITDA is defined as net income adjusted for interest, income taxes, depreciation, and amortization. Depreciation and amortization in the following tables includes amortization of intangible assets and liabilities recorded for the fair value adjustment of wholesale power supply agreements as a result of the 2016 Merger and the Cleco Cajun Transaction, as well as amortization of deferred lease revenue resulting from the Cleco Cajun Transaction. Material intercompany transactions occur on a regular basis. These intercompany transactions relate primarily to joint and common administrative support services as well as transmission services provided by Cleco Power to Cleco Cajun. SEGMENT INFORMATION FOR THE YEAR ENDED DEC. 31, 2021 (THOUSANDS) CLECO POWER CLECO CAJUN TOTAL SEGMENTS Revenue Electric operations $ 1,202,249 $ 398,226 $ 1,600,475 Other operations 74,625 128,749 203,374 Affiliate revenue 5,641 — 5,641 Electric customer credits (40,878) 244 (40,634) Operating revenue, net $ 1,241,637 $ 527,219 $ 1,768,856 Net income $ 134,088 $ 115,632 $ 249,720 Add: Depreciation and amortization 173,498 56,438 (1) 229,936 Less: Interest income 3,294 15 3,309 Add: Interest charges 73,090 803 73,893 Add: Federal and state income tax (benefit) expense (9,353) 42,283 32,930 EBITDA $ 368,029 $ 215,141 $ 583,170 Additions to property, plant, and equipment $ 300,957 $ 9,081 $ 310,038 Equity investment in investee $ 2,072 $ — $ 2,072 Goodwill $ 1,490,797 $ — $ 1,490,797 Total segment assets $ 6,620,298 $ 1,104,090 $ 7,724,388 (1) Includes $13.5 million of amortization of intangible assets and liabilities related to wholesale power supply agreements and $(9.2) million of deferred lease revenue amortization as a result of the Cleco Cajun Transaction. FOR THE YEAR ENDED DEC. 31, 2021 (THOUSANDS) TOTAL SEGMENTS OTHER ELIMINATIONS TOTAL Revenue Electric operations $ 1,600,475 $ (9,680) $ 1 $ 1,590,796 Other operations 203,374 8 (7,615) 195,767 Affiliate revenue 5,641 113,623 (119,264) — Electric customer credits (40,634) — — (40,634) Operating revenue, net $ 1,768,856 $ 103,951 $ (126,878) $ 1,745,929 Depreciation and amortization $ 229,936 $ 21,495 (1) $ — $ 251,431 Interest income $ 3,309 $ 125 $ (122) $ 3,312 Interest charges $ 73,893 $ 60,564 $ (121) $ 134,336 Federal and state income tax expense (benefit) $ 32,930 $ (19,819) $ — $ 13,111 Net income (loss) $ 249,720 $ (54,754) $ — $ 194,966 Additions to property, plant, and equipment $ 310,038 $ 1,103 $ — $ 311,141 Equity investment in investee $ 2,072 $ (46,901) $ 46,901 $ 2,072 Goodwill $ 1,490,797 $ — $ — $ 1,490,797 Total segment assets $ 7,724,388 $ 619,101 $ (218,471) $ 8,125,018 (1) Includes $9.7 million of amortization of intangible assets related to Cleco Power’s wholesale power supply agreements as a result of the 2016 Merger. FOR THE YEAR ENDED DEC. 31, 2020 (THOUSANDS) CLECO POWER CLECO CAJUN TOTAL SEGMENTS Revenue Electric operations $ 1,015,018 $ 365,555 $ 1,380,573 Other operations 65,237 121,747 186,984 Affiliate revenue 5,156 204 5,360 Electric customer credits (53,119) (153) (53,272) Operating revenue, net $ 1,032,292 $ 487,353 $ 1,519,645 Net income $ 96,655 $ 89,492 $ 186,147 Add: Depreciation and amortization 166,987 47,183 (1) 214,170 Less: Interest income 3,362 273 3,635 Add: Interest charges 73,985 (750) 73,235 Add: Federal and state income tax expense 26,799 29,080 55,879 EBITDA $ 361,064 $ 164,732 $ 525,796 Additions to property, plant, and equipment $ 377,044 $ 8,920 $ 385,964 Equity investment in investee $ 9,072 $ — $ 9,072 Goodwill $ 1,490,797 $ — $ 1,490,797 Total segment assets $ 6,256,944 $ 1,029,812 $ 7,286,756 (1) Includes $12.4 million of amortization of intangible assets and liabilities related to wholesale power supply agreements and $(9.2) million of deferred lease revenue amortization as a result of the Cleco Cajun Transaction. FOR THE YEAR ENDED DEC. 31, 2020 (THOUSANDS) TOTAL SEGMENTS OTHER ELIMINATIONS TOTAL SEGMENTS Revenue Electric operations $ 1,380,573 $ (9,680) $ — $ 1,370,893 Other operations 186,984 3 (6,463) 180,524 Affiliate revenue 5,360 129,126 (134,486) — Electric customer credits (53,272) — 1 (53,271) Operating revenue, net $ 1,519,645 $ 119,449 $ (140,948) $ 1,498,146 Depreciation and amortization $ 214,170 $ 18,059 (1) $ — $ 232,229 Interest income $ 3,635 $ 412 $ (99) $ 3,948 Interest charges $ 73,235 $ 64,728 $ (99) $ 137,864 Federal and state income tax expense (benefit) $ 55,879 $ (20,160) $ (1) $ 35,718 Net income (loss) $ 186,147 $ (63,848) $ 1 $ 122,300 Additions to property, plant, and equipment $ 385,964 $ 3,051 $ — $ 389,015 Equity investment in investee $ 9,072 $ — $ — $ 9,072 Goodwill $ 1,490,797 $ — $ — $ 1,490,797 Total segment assets $ 7,286,756 $ 595,217 $ (156,404) $ 7,725,569 (1) Includes $9.7 million of amortization of intangible assets related to Cleco Power’s wholesale power supply agreements as a result of the 2016 Merger. FOR THE YEAR ENDED DEC. 31, 2019 (THOUSANDS) CLECO POWER CLECO CAJUN TOTAL SEGMENTS Revenue Electric operations $ 1,130,928 $ 375,489 $ 1,506,417 Other operations 72,833 117,468 190,301 Affiliate revenue 3,125 108 3,233 Electric customer credits (38,516) (1,447) (39,963) Operating revenue, net $ 1,168,370 $ 491,618 $ 1,659,988 Net income $ 148,262 $ 69,411 $ 217,673 Add: Depreciation and amortization 172,471 38,465 (1) 210,936 Less: Interest income 4,744 987 5,731 Add: Interest charges 71,279 35 71,314 Add: Federal and state income tax expense 45,452 22,479 67,931 EBITDA $ 432,720 $ 129,403 $ 562,123 Additions to property, plant, and equipment $ 298,565 $ 9,174 $ 307,739 Equity investment in investee $ 17,072 $ — $ 17,072 Goodwill $ 1,490,797 $ — $ 1,490,797 Total segment assets $ 5,967,327 $ 1,011,591 $ 6,978,918 (1) Includes $11.4 million of amortization of intangible assets and liabilities related to wholesale power supply agreements and $(8.4) million of deferred lease revenue amortization as a result of the Cleco Cajun Transaction. FOR THE YEAR ENDED DEC. 31, 2019 (THOUSANDS) TOTAL SEGMENTS OTHER ELIMINATIONS TOTAL Revenue Electric operations $ 1,506,417 $ (9,680) $ (1) $ 1,496,736 Other operations 190,301 2 (7,471) 182,832 Affiliate revenue 3,233 109,067 (112,300) — Electric customer credits (39,963) — — (39,963) Operating revenue, net $ 1,659,988 $ 99,389 $ (119,772) $ 1,639,605 Depreciation and amortization $ 210,936 $ 17,985 (1) $ — $ 228,921 Interest income $ 5,731 $ 974 $ (615) $ 6,090 Interest charges $ 71,314 $ 70,611 $ (616) $ 141,309 Federal and state income tax expense (benefit) $ 67,931 $ (24,766) $ — $ 43,165 Net income (loss) $ 217,673 $ (65,009) $ 1 $ 152,665 Additions to property, plant, and equipment $ 307,739 $ 655 $ — $ 308,394 Equity investment in investee $ 17,072 $ — $ — $ 17,072 Goodwill $ 1,490,797 $ — $ — $ 1,490,797 Total segment assets $ 6,978,918 $ 546,096 $ (48,716) $ 7,476,298 (1) Includes $9.7 million of amortization of intangible assets related to Cleco Power’s wholesale power supply agreements as a result of the 2016 Merger. (THOUSANDS) 2021 2020 2019 Net income $ 194,966 $ 122,300 $ 152,665 Add: Depreciation and amortization 251,431 232,229 228,921 Less: Interest income 3,312 3,948 6,090 Add: Interest charges 134,336 137,864 141,309 Add: Federal and state income tax expense 13,111 35,718 43,165 (Less) add: Other corporate costs and noncash items (1) (7,362) 1,633 2,153 Total segment EBITDA $ 583,170 $ 525,796 $ 562,123 (1) Adjustments made for Other and Elimination totals not allocated to total segment EBITDA. Cleco Power Cleco Power is a vertically integrated, regulated electric utility operating within Louisiana and Mississippi and is viewed as one unit by management. Discrete financial reports are prepared only at the company level. |
Regulation and Rates
Regulation and Rates | 12 Months Ended |
Dec. 31, 2021 | |
Regulated Operations [Abstract] | |
Regulation and Rates | Note 13 — Regulation and Rates Provision for rate refund on Cleco and Cleco Power’s Consolidated Balance Sheets consisted primarily of the following: (THOUSANDS) AT DEC. 31, 2021 AT DEC. 31, 2020 Cleco Katrina/Rita storm recovery charges $ 1,611 $ 1,617 FERC audit $ — $ 1,912 FRP $ 1,229 $ 1,786 Site-specific industrial customer $ 833 $ 710 TCJA $ 2,057 $ 2,057 Transmission ROE $ — $ 595 Cleco Katrina/Rita Storm Recovery Charges Prior to the repayment of the Cleco Katrina/Rita storm recovery bonds in March 2020, Cleco Katrina/Rita had the right to bill and collect storm restoration costs from Cleco Power’s customers to pay administrative fees, interest, and principal on the Cleco Katrina/Rita storm recovery bonds. In April 2021, after payments for all final administrative and winding up activities of Cleco Katrina/Rita were made, Cleco Katrina/Rita transferred its remaining restricted cash to Cleco Power. As a result, at December 31, 2021, Cleco Power had $1.6 million accrued for amounts to be used to benefit retail customers in a manner and timing as approved by the LPSC. For more information on Cleco Katrina/Rita’s storm recovery, see Note 2 — “Summary of Significant Accounting Policies — Restricted Cash and Cash Equivalents.” FERC Audit By June 30, 2021, $4.4 million was returned to Cleco Power’s wholesale transmission customers as a combination of refund payments related to the FERC audit findings and a reduction in Attachment O of the MISO tariff and grandfathered agreement rates. For more information about the FERC audit, see Note 15 — “Litigation, Other Commitments and Contingencies, and Disclosures about Guarantees — Litigation — FERC Audit.” FRP Prior to July 1, 2021, Cleco Power’s annual retail earnings were subject to an FRP established by the LPSC in June 2014. The 2014 FRP allowed Cleco Power to earn a target ROE of 10.0%, while providing the opportunity to earn up to 10.9%. Additionally, 60% of retail earnings between 10.9% and 11.75%, and all retail earnings over 11.75% were required to be refunded to customers. On June 16, 2021, the LPSC approved Cleco Power’s new FRP. Effective July 1, 2021, under the terms of the new FRP, Cleco Power is allowed to earn a target ROE of 9.5%, while providing the opportunity to earn up to 10.0%. Additionally, 60.0% of retail earnings between 10.0% and 10.5% and all retail earnings over 10.5%, 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. Cleco Power’s next base rate case is required to be filed with the LPSC on or before March 31, 2023. Cleco Power filed its monitoring report for the 12 months ended June 30, 2019, on October 31, 2019, indicating that no refund was due. On September 22, 2021, the LPSC approved the 2019 monitoring report indicating no refund was due. Monitoring reports for the 12 months ended June 30, 2020, and 2021, were not required due to the expiration of the 2014 FRP. The next monitoring report will be filed on or before October 31, 2022, for the 12 months ending June 30, 2022. Cleco Power continued to accrue the annual cost of service savings resulting from the 2016 Merger Commitments through June 30, 2021. Beginning July 1, 2021, the annual cost of service savings are included in Cleco Power’s new retail rate plan. In September 2021, Cleco Power refunded $1.2 million for the period of July 1, 2019, through June 30, 2020. At December 31, 2021, Cleco Power had $1.2 million accrued for the period July 1, 2020, through June 30, 2021, which is expected to be refunded to customers in September 2022. 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. In July 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 was credited to customers over 12 months beginning August 1, 2019. In July 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 current base rate case. As a result of the delay in the rate case, on July 15, 2020, the LPSC approved Cleco Power’s application to extend the TCJA bill credits at the same rate as determined in the initial TCJA refund of approximately $7.0 million per month. The extension was for the period of August 2020 through November 2020. On November 13, 2020, Cleco Power again received approval of its application to extend the TCJA bill credits from December 1, 2020, until such time that the rate case was completed. The $7.0 million monthly refund consisted of approximately $4.4 million, which was to be funded by the unprotected excess ADIT, and approximately $2.6 million, which is the change in the federal statutory corporate income tax rate from 35% to 21%. At December 31, 2021, Cleco Power had $2.1 million accrued for the estimated federal tax-related benefits from the TCJA. On June 16, 2021, the LPSC approved Cleco Power’s new retail rate plan which includes the settlement of the TCJA protected and unprotected excess ADIT. Effective July 1, 2021, all retail customers will continue receiving bill credits resulting from the TCJA. The target retail portion of the unprotected excess ADIT is approximately $2.5 million monthly and will be credited over a period of three years concluding on June 30, 2024. The retail portion of the protected excess ADIT will be credited until the full amount of the protected excess ADIT has been returned to Cleco Power’s customers through bill credits. At December 31, 2021, Cleco Power had $302.0 million accrued for the excess ADIT, of which $44.1 million is reflected in current regulatory liabilities. Transmission ROE Two complaints were filed with FERC seeking to reduce the ROE component of the transmission rates that MISO transmission owners, including Cleco Power, may collect under the MISO tariff. The complaints covered the period December 2013 through May 2016. By September 30, 2021, the overcollection due to the change in ROE was fully refunded. For more information on the ROE complaints, see Note 15 — “Litigation, Other Commitments and Contingencies, and Disclosures about Guarantees — Litigation — Transmission ROE.” 2016 Merger Commitments The LPSC’s written order in April 2016, approving the 2016 Merger was conditioned upon certain commitments, including $2.5 million of contributions for economic development for Louisiana state and local organizations to be disbursed over five years, an additional $7.0 million one-time contribution in 2016 for economic development in Cleco Power’s service territory to be administered by Louisiana Economic Development, and $6.0 million of charitable contributions to be disbursed over five years. At December 31, 2021, Cleco Power had satisfied the previously discussed 2016 Merger Commitments. 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, which 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. On September 7, 2021, Cleco Power filed an Attachment Y with MISO requesting retirement of Teche Unit 3, barring any violations of specific applicable reliability standards. In December 2021, Cleco Power filed a notice with the LPSC and MISO to suspend the retirement of Teche Unit 3. At December 31, 2021, Cleco Power had $4.3 million accrued for the net capital refund for capital expenditures paid for by third parties while operating under the SSR agreement. The capital refund is expected to be paid in the first half of 2022. |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entities | Note 14 — 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 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 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 December 31, 2021, consisted of its equity investment of $2.1 million. During 2021, Cleco Power received $7.0 million from Oxbow as a return of investment. The following table presents the components of Cleco Power’s equity investment in Oxbow: AT DEC. 31, INCEPTION TO DATE (THOUSANDS) 2021 2020 Purchase price $ 12,873 $ 12,873 Cash contributions 6,399 6,399 Dividend received (17,200) (10,200) Total equity investment in investee $ 2,072 $ 9,072 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: AT DEC. 31, (THOUSANDS) 2021 2020 Oxbow’s net assets/liabilities $ 4,145 $ 18,145 Cleco Power’s 50% equity $ 2,072 $ 9,072 Cleco Power’s maximum exposure to loss $ 2,072 $ 9,072 The following tables contain summarized financial information for Oxbow: AT DEC. 31, (THOUSANDS) 2021 2020 Current assets $ 6,979 $ 16,805 Property, plant, and equipment, net 3,798 4,910 Other assets — 3,360 Total assets $ 10,777 $ 25,075 Current liabilities $ 393 $ 369 Other liabilities 6,239 6,561 Partners’ capital 4,145 18,145 Total liabilities and partners’ capital $ 10,777 $ 25,075 FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2021 2020 2019 Operating revenue $ 5,155 $ 34,827 $ 8,886 Operating expenses 5,155 34,827 8,886 Income before taxes $ — $ — $ — Prior to June 30, 2020, DHLC mined lignite reserves at Oxbow through the Amended Lignite Mining Agreement. The lignite reserves were intended to be used to provide fuel to the Dolet Hills Power Station. Under the Amended Lignite Mining Agreement, DHLC bills Cleco Power its proportionate share of incurred lignite extraction and associated mining-related costs. Oxbow bills Cleco Power its proportionate share of incurred costs related to mineral rights and land leases. In June 2020, management decided to retire the Dolet Hills Power Station. On October 6, 2020, Cleco Power and SWEPCO made a joint filing with the LPSC seeking authorization to close the Oxbow mine. As of December 31, 2021, all of Cleco Power’s proportionate share of lignite-related costs have been billed by Oxbow prior to the closure of the Dolet Hills Power Station. For more information on DHLC and the Oxbow mine, see Note 15 — “Litigation, Other Commitments and Contingencies, and Disclosures about Guarantees — Risks and Uncertainties.” 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 | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Litigation, Other Commitments and Contingencies, and Disclosures about Guarantees | Note 15 — Litigation, Other Commitments and Contingencies, and Disclosures about Guarantees Litigation 2016 Merger In connection with the 2016 Merger, four actions were filed in the Ninth Judicial District Court for Rapides Parish, Louisiana and three actions were filed in the Civil District Court for Orleans Parish, Louisiana. The petitions in each action generally alleged, among other things, that the members of Cleco Corporation’s Board of Directors breached their fiduciary duties by, among other things, conducting an allegedly inadequate sale process, agreeing to the 2016 Merger at a price that allegedly undervalued Cleco, and failing to disclose material information about the 2016 Merger. The petitions also alleged that Como 1, Cleco Corporation, Merger Sub, and, in some cases, certain of the investors in Como 1 either aided and abetted or entered into a civil conspiracy to advance those supposed breaches of duty. The petitions sought various remedies, including monetary damages, which includes attorneys’ fees and expenses. The four actions filed in the Ninth Judicial District Court for Rapides Parish are captioned as follows: • Braunstein v. Cleco Corporation , No. 251,383B (filed October 27, 2014), • Moore v. Macquarie Infrastructure and Real Assets , No. 251,417C (filed October 30, 2014), • Trahan v. Williamson , No. 251,456C (filed November 5, 2014), and • L’Herisson v. Macquarie Infrastructure and Real Assets , No. 251,515F (filed November 14, 2014). In November 2014, the plaintiff in the Braunstein action moved for a dismissal of the action without prejudice, and that motion was granted in November 2014. In December 2014, the court consolidated the remaining three actions and appointed interim co-lead counsel, and dismissed the investors in Cleco Partners as defendants, per agreement of the parties. 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 three actions filed in the Civil District Court for Orleans Parish were 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). In December 2014, the directors and Cleco filed declinatory exceptions in each action on the basis that each action was improperly brought in Orleans Parish and should either be transferred to the Ninth Judicial District Court for Rapides Parish or dismissed. Also, in December 2014, the plaintiffs in each action jointly filed a motion to consolidate the three actions pending in Orleans Parish and to appoint interim co-lead plaintiffs and co-lead counsel. In January 2015, the Court in the Creative Life Services case sustained the defendants’ declinatory exceptions and dismissed the case so that it could be transferred to the Ninth Judicial District Court for Rapides Parish. In February 2015, the plaintiffs in Butler and Cashen also consented to the dismissal of their cases from Orleans Parish so they could be transferred to the Ninth Judicial District Court for Rapides Parish. By operation of the December 2014 order of the Ninth Judicial District Court for Rapides Parish, the Butler , Cashen , and Creative Life Services actions were consolidated into the actions pending in Rapides Parish. In February 2015, the Ninth Judicial District Court for Rapides Parish held a hearing on a motion for preliminary injunction filed by plaintiffs in the consolidated action seeking to enjoin the shareholder vote for approval of the Merger Agreement. The District Court heard and denied the plaintiffs’ motion. In June 2015, the plaintiffs filed their Second Consolidated Amended Verified Derivative and Class Action Petition. Cleco filed exceptions seeking dismissal of the second amended petition in July 2015. The LPSC voted to approve the 2016 Merger before the court could consider the plaintiffs’ peremptory exceptions. 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 amended petition, which remains the operative petition and was filed after the 2016 Merger closed, eliminated the request for preliminary and permanent injunction and also named an additional executive officer as a defendant. The defendants filed exceptions seeking dismissal of the fourth amended Petition. In September 2016, the District Court granted the exceptions of no cause of action and no right of action 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. 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 renewed exceptions of no cause of action and res judicata, seeking to dismiss all claims. On December 21, 2018, the court dismissed Cleco Partners and Cleco Holdings as defendants per the agreement of the parties, leaving as the only remaining defendants certain former executive officers and independent directors. The District Court denied the defendants’ exceptions on January 14, 2019. A hearing on the plaintiffs’ motion 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. On September 7, 2019, the District Court certified a class limited to shareholders who voted against, abstained from voting, or did not vote on the 2016 Merger. On October 18, 2021, the District Court issued an order consistent with a joint motion by the parties to dismiss all claims against the former independent directors leaving two former executives as the only remaining defendants. 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 (the Bunkie project). 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. Diversified Lands loaned $2.0 million to Gulf Coast for the Bunkie project. The loan was secured by a mortgage on the Bunkie project site. Diversified Lands foreclosed on the Bunkie property in February 2020 and has also asserted claims personally against the former owner of Gulf Coast. These claims are based on contracts and credit documents executed by Gulf Coast, the obligations and performance of which were personally guaranteed by the former owner of Gulf Coast. Diversified Lands is seeking recovery of the indebtedness still owed by Gulf Coast to Diversified Lands following the February 2020 foreclosure. 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. 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 Ninth 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. On September 14, 2020, Cabot Corporation was allowed to join the case pending in the Ninth Judicial District Court for Rapides Parish. 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. alleged that Cleco Power and Cabot Corporation caused delays in the St. Mary Clean Energy Center project, resulting in alleged impacts 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. The Magistrate Judge presiding over the Western District of Louisiana consolidated cases issued a report and recommendation to the District Judge that the case instituted by Saulsbury Industries, Inc. be dismissed without prejudice and the case initiated by Cleco Power be remanded to the Ninth Judicial District Court for Rapides Parish. Saulsbury Industries Inc. did not oppose the Magistrate Judge’s report and recommendation, and the District Judge issued a ruling that adopted the Magistrate Judge’s report and recommendation, which included reasoning consistent with Cleco Power’s arguments. Thus, the federal consolidated cases are now closed. On October 10, 2019, Cleco Power was served with a summons in Saulsbury Industries, Inc. v. Cabot Corporation and Cleco Power LLC in the 16 th Judicial District Court for St. Mary Parish, No. 133910-A. Saulsbury Industries, Inc. asserted the same claim as the Western District Litigation and further asserts claims for payment on an open account. On December 9, 2019, Cleco moved to stay the case, arguing that the Rapides Parish suit should proceed. On February 14, 2020, the court granted Cleco’s motion, which stay order remains in place until lifted. The 16 th Judicial District Court for the St. Mary Parish case held a hearing on October 16, 2020, and the judge granted Cleco’s declinatory exceptions of lis pendens. Thus, the St. Mary’s Parish case has been dismissed. Saulsbury filed a motion for a new trial. The hearing on this motion was held on February 5, 2021, and the 16 th Judicial District Court judge denied Saulsbury’s motion for a new trial. Saulsbury has appealed this decision. The Rapides Parish case remains stayed during the pendency of Saulsbury’s appeal of the 16 th Judicial District Court decision. LPSC Audits Fuel Audits 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 2020, Cleco Power received a notice of audit from the LPSC for the period of January 2018 to December 2019. The total amount of fuel expense included in the audit is $565.8 million. Cleco Power has responded to several sets of data requests from the LPSC. Cleco Power has FAC filings for January 2020 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. On March 29, 2021, Cleco Power received approval from the LPSC to recover $50.0 million of incremental fuel and purchased power costs incurred as a result of Winter Storms Uri and Viola over a period of 12 months beginning with the May 2021 bills. On May 11, 2021, Cleco Power received notice of an audit from the LPSC for the fuel costs incurred during the time period required to restore services to Cleco Power’s customers during Winter Storms Uri and Viola. Cleco Power is responding to related data requests. Management is unable to determine the outcome or timing of the audit. For more information on these winter storms, see Note 19 — “Storm Restoration — Winter Storms Uri and Viola.” Environmental Audit In 2009, the LPSC issued Docket No. U-29380 Subdocket A, which provides Cleco Power an EAC to recover from its customers certain costs of environmental compliance. The costs eligible for recovery are those for prudently incurred air emissions credits associated with complying with federal, state, and local air emission regulations that apply to the generation of electricity reduced by the sale of such allowances. Also eligible for recovery are variable emission mitigation costs, which are the costs of reagents such as ammonia and limestone that are a part of the fuel mix used to reduce air emissions, among other things. On October 20, 2021, the LPSC approved the EAC audit for the period January 2018 to December 2019 with no findings. The total amount of environmental expense that was included in the audit was $26.2 million. Cleco Power has EAC filings for January 2020 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 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 MATS. These expenses are also eligible for recovery through Cleco Power’s EAC and are subject to periodic review by the LPSC. In May 2020, the EPA finalized a rule that concluded that it is not appropriate and necessary to regulate hazardous air pollutants from coal- and oil-fired electric generating units. However, the EPA concluded that coal- and oil-fired electric generating units would not be removed from the list of regulated sources of hazardous air pollutants and would remain subject to MATS. The EPA also determined that the results of its risk and technology review did not require any revisions to the emissions standards. Several petitions for review of the rule’s findings were filed between May and July 2020 in the D.C. Circuit Court of Appeals. On January 20, 2021, the Presidential Administration issued an executive order, which directs federal agency heads to review regulations and other actions over the past four years to determine if they are inconsistent with the policies announced in the executive order. The order specifically directed the EPA to consider issuing a proposed rule to suspend, revise, or rescind the rule. The EPA determined the most environmentally protective course is to implement the rules in the executive order. On February 9, 2022, the EPA published in the Federal Register a proposed rule to revoke the agency’s May 2020 finding with respect to whether it is appropriate and necessary to regulate coal and oil-fired generating units under MATS, but the EPA has not yet acted on a review of the risk and technology determination from the May 2020 rule. Management is unable to determine whether the outcome of the D.C. Circuit Court of Appeals’ review or the EPA’s review of the rule as a result of the executive order will result in changes to the MATS standards. 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, A total of $4.4 million was returned to Cleco Power’s wholesale transmission customers as a combination of refund payments and a reduction in Attachment O of the MISO tariff and grandfathered agreement rates. On February 1, 2022, FERC notified Cleco of the completion of the audit and no exceptions were found to the implementation of the audit recommendations. Transmission ROE In November 2013 and February 2015, customers filed complaints with FERC seeking to reduce the ROE component of the transmission rates that MISO transmission owners, including Cleco, may collect under the MISO tariff. The complaints covered the period December 2013 through May 2016 and sought to reduce the 12.38% ROE used in MISO’s transmission rates to a proposed 6.68%. In June 2016, an administrative law judge issued an initial decision in the second rate case docket recommending a 9.70% base ROE. In September 2016, FERC issued a Final Order in response to the first complaint establishing a 10.32% ROE. However, on November 21, 2019, FERC voted to adopt a new methodology for evaluating base ROE for public utilities under the Federal Power Act. In addition, FERC set the MISO transmission owners’ region-wide base ROE at 9.88% for the refund period covered in the first complaint and going forward. The draft FERC order further found that complainants in the second complaint proceeding failed to show that the 9.88% base ROE was unjust and unreasonable and thus dismissed the second complaint. On May 21, 2020, FERC issued Opinion No. 569-A, which granted a rehearing in part of Opinion No. 569, which had revised FERC’s methodology for analyzing the base ROE component of public utility rates under section 206 of the Federal Power Act. Opinion No. 569-A further refines FERC’s ROE methodology and finds that the MISO Transmission Owners’ base ROE should be set at 10.02% instead of 9.88%. Cleco Power is unable to determine when a final FERC Order will be issued. As of September 30, 2021, the overcollection due to the change in the ROE was fully refunded. 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 was included in MISO’s transmission rates for a total ROE of 10.38% and 10.52% beginning January 1, 2020, and June 1, 2020, respectively. South Central Generating In 2017, Louisiana Generating received insurance settlement proceeds for remediation costs, as defined in the policy of insurance, incurred to install selective non-catalytic reduction equipment on Big Cajun II, Unit 3. This installation served a dual purpose of being a prudent utility practice for compliance with environmental laws and aiding in the settlement of a lawsuit, which was brought by the EPA and the LDEQ against Louisiana Generating, related to Big Cajun II, Units 1 and 2. Entergy Gulf States, as co-owner of Big Cajun II, Unit 3, expected to be allocated a portion of the insurance settlement proceeds. Litigation between Entergy Gulf States and Louisiana Generating ensued to determine Entergy Gulf States’ allocated amount of insurance proceeds, among other claims pursuant to the Joint Ownership Participation and Operating Agreement between Louisiana Generating and Entergy Gulf States. In August 2021, Louisiana Generating and Entergy Gulf States entered an agreement to settle all claims asserted in this litigation. NRG Energy paid the settlement amount in January 2022. The Courts issued signed orders of dismissal in early 2022, recognizing the dismissal of the lawsuits with prejudice. NRG Energy indemnified Cleco for losses associated with this litigation matter. As part of the Cleco Cajun transaction, Cleco Cajun had assumed a $10.0 million contingent liability associated with this matter. As a result, Cleco had recorded a $10.0 million indemnification asset, which was included in the purchase price allocation and included in Other current assets on Cleco’s Consolidated Balance Sheet. Upon payment by NRG in January 2022 for the settlement of the associated legal matter, the contingent liability as well as the indemnification asset were removed from Cleco’s Consolidated Balance Sheet. 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. As of December 31, 2021, management estimates potential losses to be $1.5 million with respect to one of these matters. Management is unable to estimate any potential losses Cleco Cajun may be ultimately responsible for with respect to any of the remaining matters. 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 may be in excess of amounts currently accrued. Management regularly analyzes current information and, as of December 31, 2021, 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 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 as a result of the transfer of Coughlin to Cleco Power. The maximum amount of the potential payment to Cleco Power and Cleco Holdings 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 the 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. Any amounts projected to be paid would be based on the forecasted loan and lease obligations to be incurred by DHLC, primarily for purchases of equipment. As of December 31, 2021, Cleco Power does not expect any payments to be made under this guarantee. 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 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. In April 2020, Cleco Power and SWEPCO mutually agreed not to develop additional mining areas for future lignite extraction and subsequently provided notice to the LPSC of the intent to cease mining at the Dolet Hills and Oxbow mines by June 2020. The mine closures are subject to LPSC review and approval. As of June 30, 2020, all lignite reserves intended to be extracted from the Oxbow mine had been extracted. On October 6, 2020, Cleco Power and SWEPCO made a joint filing with the LPSC seeking authorization to close the Oxbow mine and to include and defer certain accelerated mine closing costs in fuel and related ratemaking treatment. On March 17, 2021, the LPSC approved the establishment of a regulatory asset for the deferral of certain accelerated mine costs in fuel and related ratemaking treatment. Cleco Power is currently responding to data requests related to the joint filing. On January 31, 2022, Cleco Power filed an application with the LPSC requesting recovery of stranded and decommissioning costs associated with the closure of the mines. For more information on the regulatory asset related to the closure of the lignite mines, see Note 6 — “Regulatory Assets and Liabilities — Lignite Mine Closure Costs.” Cleco has letters of credit to MISO pursuant to energy market requirements. The letters of credit automatically renew each year and have no impact on Cleco Holdings’ or Cleco Power’s revolving credit facility. 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. Long-Term Purchase Obligations Cleco Holdings had no unconditional long-term purchase obligations at December 31, 2021. Cleco Power and Cleco Cajun have several unconditional long-term purchase obligations primarily related to the purchase of fuel, energy delivery facilities, information technology outsourcing, natural gas storage, network monitoring, and software maintenance. The aggregate amount of payments required under such obligations at December 31, 2021, is as follows: (THOUSANDS) CLECO POWER CLECO For the year ending Dec. 31, 2022 $ 38,075 $ 70,974 2023 18,872 47,940 2024 10,914 11,565 2025 9,090 9,689 2026 4,922 5,279 Thereafter 5,342 5,726 Total long-term purchase obligations $ 87,215 $ 151,173 Cleco’s payments under these agreements for the years ended December 31, 2021, 2020, and 2019 were $59.9 million, $92.5 million, and $94.8 million, respectively. Cleco Power’s payments under these agreements for the years ended December 31, 2021, 2020, and 2019 were $43.3 million, $24.8 million, and $35.3 million, respectively. Other Commitments Cleco has accrued for liabilities related to third parties, employee medical benefits, and AROs. In April 2015, the EPA published a final rule in the Federal Register for regulating the disposal and management of CCRs from coal-fired power plants (CCR Rule). The CCR Rule established extensive requirements for existing and new CCR landfills and surface impoundments and all lateral expansions consisting of location restrictions, design and operating criteria, groundwater monitoring and corrective action, closure requirements and post closure care, and recordkeeping, notification, and internet posting requirements. In August 2018, the D.C. Court of Appeals vacated several requirements in the CCR regulation, which included eliminating the previous acceptability of compacted clay material as a liner for impoundments. As a result, in December 2019, the EPA published a proposed rule that would set deadlines for costly modifications including retrofitting of clay-lined impoundments with compliant liners or closure of the impoundments. The rule was finalized and published in the Federal Register on August 28, 2020. In November 2020, Cleco submitted demonstrations to the EPA specifying its intended course of action for the ash disposal facilities at Rodemacher Unit 2, Dolet Hills Power Station, and Big Cajun II in order to comply with the final CCR Rule. During 2021, additional information was submitted to the LDEQ to revise and update Cleco Power’s compliance strategy. Cleco Power and Cleco Cajun have also engaged independent engineering specialists to conduct studies on the efforts and costs expected to be incurred in order to comply with the final CCR Rule. During the third quarter of 2021, management received additional information in connection with Cleco Power’s and Cleco Cajun’s compliance strategies resulting in a revision to the estimated cash flows expected to be required to settle the respective AROs. Therefore, Cleco Power and Cleco Cajun recorded an increase of $11.3 million and $35.4 million, res |
Affiliate Transactions
Affiliate Transactions | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
Affiliate Transactions | Note 16 — Affiliate Transactions Cleco Cleco has entered into service agreements with affiliates to receive and to provide goods and professional services. Goods and services received by Cleco primarily involve services provided by Support Group. Support Group provides joint and common administrative support services in the areas of information technology; finance, cash management, accounting, tax, and auditing; human resources; public relations; project consulting; risk management; strategic and corporate development; legal, ethics, and regulatory compliance; facilities management; supply chain and inventory management; and other administrative services. Cleco Power’s affiliates are charged the higher of management’s estimated fair market value or fully loaded costs for goods and services provided by Cleco Power. Cleco, with the exception of Support Group, charges Cleco Power the lower of management’s estimated fair market value or fully loaded costs for goods and services provided in accordance with service agreements. Support Group bills fully loaded costs to affiliates, which includes payroll and non-payroll costs. All charges and revenues from consolidated affiliates were eliminated in Cleco’s Consolidated Statements of Income for the years ending December 31, 2021, 2020, and 2019. At December 31, 2021, and 2020, Cleco Holdings had an affiliate receivable of $2.6 million and $1.7 million, respectively, from Cleco Group primarily for franchise taxes paid on behalf of Cleco Group. At December 31, 2021, and 2020, Cleco Holdings had an affiliate payable of $51.3 million and $41.3 million, respectively to Cleco Group primarily for settlement of taxes payable. For the years ended December 31, 2021, 2020, and 2019, respectively, Cleco Holdings made no distribution payments to Cleco Group. Cleco Power Cleco Power has entered into service agreements with affiliates to receive and to provide goods and professional services. Charges from affiliates included in Cleco Power’s Consolidated Statements of Income primarily involve services provided by Support Group in accordance with service agreements. Support Group provides joint and common administrative support services in the areas of information technology; finance, cash management, accounting, tax, and auditing; human resources; public relations; project consulting; risk management; strategic and corporate development; legal, ethics, and regulatory compliance; facilities management; supply chain and inventory management; and other administrative services. With the exception of Support Group, affiliates charge Cleco Power the lower of management’s estimated fair market value or fully loaded costs for goods and services provided in accordance with service agreements. Support Group charges only fully loaded costs. The following table is a summary of charges from each affiliate included in Cleco Power’s Consolidated Statements of Income: FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2021 2020 2019 Support Group Other operations and maintenance $ 91,915 $ 94,798 $ 73,090 Taxes other than income taxes $ 40 $ — $ (73) Other expense $ 35 $ 43 $ 64 The majority of the services provided by Cleco Power relates to the lease of office space to Support Group and transmission services to Cleco Cajun. Cleco Power charges affiliates the higher of management’s estimated fair market value or fully loaded costs for goods and services provided in accordance with service agreements. The following table is a summary of revenue received from affiliates included in Cleco Power’s Consolidated Statements of Income: FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2021 2020 2019 Other operations revenue Cleco Cajun $ 7,616 $ 6,463 $ 7,471 Affiliate revenue Support Group 4,783 4,715 3,088 Cleco Cajun 858 441 37 Other income Cleco Holdings — — 149 Total $ 13,257 $ 11,619 $ 10,745 Cleco Power had the following affiliate receivable and payable balances associated with the service agreements: AT DEC. 31, 2021 2020 (THOUSANDS) ACCOUNTS RECEIVABLE ACCOUNTS PAYABLE ACCOUNTS RECEIVABLE ACCOUNTS PAYABLE Cleco Holdings $ 10,347 $ 59,627 $ 10,353 $ 57,713 Support Group 2,473 10,038 3,248 14,355 Cleco Cajun 792 64 1,004 — Total $ 13,612 $ 69,729 $ 14,605 $ 72,068 Oxbow bills Cleco Power its proportionate share of incurred costs related to mineral rights and land leases. These costs are included in fuel inventory and are recoverable from Cleco Power customers through the LPSC-established FAC or related wholesale contract provisions. For the years ended December 31, 2021, and 2020, Cleco Power recorded $2.7 million, and $17.4 million, respectively, of its proportionate share of incurred costs. At December 31, 2021, and 2020, Cleco Power had less than $0.1 million and $0.3 million, respectively, payable to Oxbow. For more information on Cleco Power’s variable interest in Oxbow, see Note 14 — “Variable Interest Entities.” During 2021 and 2020, Cleco Power made no distribution payments to Cleco Holdings. During 2019, Cleco Power made $20.0 million of distribution payments to Cleco Holdings. Cleco Power received no equity contributions from Cleco Holdings in 2021, 2020, and 2019. 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 Power’s affiliates is transferred with a like amount of assets to Cleco Power monthly. The following table shows the expense of the pension plan related to Cleco Power’s affiliates for the years ended 2021 and 2020: FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2021 2020 Support Group $ 4,068 $ 3,155 Cleco Cajun $ 496 $ 351 |
Intangible Assets, Intangible L
Intangible Assets, Intangible Liabilities, and Goodwill | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets, Intangible Liabilities and Goodwill | Note 17 — Intangible Assets, Intangible Liabilities, and Goodwill During 2008, Cleco Katrina/Rita acquired a $177.5 million intangible asset which included $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 was fully amortized in March 2020 and had no residual value at the end of its life. As a result of the 2016 Merger, fair value adjustments were recorded on Cleco’s Consolidated Balance Sheet for the valuation of finite intangible assets relating to the Cleco Power trade name and long-term wholesale power supply agreements. At the end of their lives, these power supply agreement intangible assets will have no residual value. The intangible assets related to the power supply agreements are amortized over the estimated life of each applicable contract ranging between 7 and 19 years, and the amortization is included in Electric operations on Cleco’s Consolidated Statements of Income. During the third quarter of 2021, Cleco determined that the fair value of the Cleco Power trade name was less than its carrying value and an impairment of $3.8 million was recognized reducing the carrying value to zero. The impairment resulted in an increase in amortization expense and was reflected in Depreciation and amortization on Cleco’s Consolidated Statement of Income at December 31, 2021. For more information on the trade name intangible asset impairment, see Note 8 — “Fair Value Accounting and Financial Instruments.” As a result of the Cleco Cajun Transaction, fair value adjustments were recorded on Cleco’s Consolidated Balance Sheet for the difference between the contract and market price of acquired long-term wholesale power agreements. At the end of their lives, these intangible assets and liabilities will have no residual value. These intangibles are amortized over the estimated life of each applicable contract ranging between 6 and 8 years. The amortization is included in Electric operations on Cleco’s Consolidated Statements of Income. As part of the Cleco Cajun Transaction, Cleco assumed an LTSA for maintenance services related to the Cottonwood Plant. The intangible liability is being amortized using the straight-line method over the estimated life of the LTSA of seven years. The amortization is included as a reduction to the LTSA prepayments on Cleco’s Consolidated Balance Sheet. For more information on the fair value adjustments of intangible assets and liabilities related to the Cleco Cajun Transaction, see Note 3 — “Business Combinations.” The following tables present Cleco and Cleco Power’s amortization of intangible assets and liabilities: Cleco FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2021 2020 2019 Intangible assets Cleco Katrina/Rita right to bill and collect storm recover charges $ — $ 517 $ 20,576 Trade name $ 3,897 $ 255 $ 255 Power supply agreements $ 25,600 $ 25,600 $ 24,273 Intangible liabilities LTSA $ 3,484 $ 3,484 $ 3,234 Power supply agreements $ 2,378 $ 3,528 $ 3,194 An impairment on the Trade name intangible asset was recognized in 2021. No impairments for intangibles in the table above were recognized for 2020 and 2019. Cleco Power FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2021 2020 2019 Cleco Katrina/Rita right to bill and collect storm recovery charges $ — $ 517 $ 20,576 The following tables summarize the balances for intangible assets and liabilities subject to amortization for Cleco: Cleco AT DEC. 31, (THOUSANDS) 2021 2020 Intangible assets Trade name $ — $ 5,100 Power supply agreements 184,004 184,004 Total intangible assets carrying amount 184,004 189,104 Intangible liabilities LTSA 24,100 24,100 Power supply agreements 14,200 14,200 Total intangible liabilities carrying amount 38,300 38,300 Net intangible assets carrying amount 145,704 150,804 Accumulated amortization (82,466) (63,932) Net intangible assets subject to amortization $ 63,238 $ 86,872 The following table summarizes the amortization expense related to intangible assets and liabilities expected to be recognized in Cleco’s Consolidated Statements of Income: Cleco (THOUSANDS) INTANGIBLE ASSETS INTANGIBLE LIABILITIES For the year ending Dec. 31, 2022 $ 25,600 $ (5,041) 2023 $ 25,373 $ (5,041) 2024 $ 18,801 $ (5,041) 2025 $ 5,037 $ (3,874) 2026 $ 744 $ — Thereafter $ 6,680 $ — Goodwill 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 unit. Goodwill is required to be tested for impairment at the reporting unit 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 unit below its carrying value. Application of the goodwill impairment test requires significant judgments, including the identification of reporting units, assignments of assets and liabilities to reporting units, assignment of goodwill to reporting units, and the determination of the fair value of the reporting units. Cleco conducted its 2021 annual impairment test using an August 1, 2021, measurement date. The fair value of the Cleco Power reporting unit 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 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 the fair value of the Cleco Power reporting unit exceeds the carrying value resulting in no impairment of Cleco Power’s goodwill for 2021. Management estimated the fair value of Cleco Power’s equity to be $3.82 billion at the August 1, 2021, measurement date. The carrying value of Cleco Power’s equity was approximately $3.55 billion with the excess of the fair value over the carrying value representing 7.6% or $270.1 million. There were no accumulated impairment charges. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Note 18 — 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 debits. Cleco (THOUSANDS) POSTRETIREMENT BENEFIT NET GAIN (LOSS) Balances, Dec. 31, 2018 $ 1,786 Other comprehensive income before reclassifications Postretirement benefit adjustments incurred during the year (18,877) Amounts reclassified from accumulated other comprehensive income Amortization of postretirement benefit net gain (422) Balances, Dec. 31, 2019 $ (17,513) Other comprehensive income before reclassifications Postretirement benefit adjustments incurred during the year (10,026) Amounts reclassified from accumulated other comprehensive income Amortization of postretirement benefit net loss 1,743 Balances, Dec. 31, 2020 $ (25,796) Other comprehensive income before reclassifications Postretirement benefit adjustments incurred during the year 1,470 Amounts reclassified from accumulated other comprehensive income Amortization of postretirement benefit net loss 697 Balances, Dec. 31, 2021 $ (23,629) Cleco Power (THOUSANDS) POSTRETIREMENT BENEFIT NET (LOSS) GAIN NET (LOSS) GAIN ON CASH FLOW HEDGES TOTAL AOCI Balances, Dec. 31, 2018 $ (7,060) $ (6,122) $ (13,182) Other comprehensive loss before reclassifications Postretirement benefit adjustments incurred during the year (10,344) — (10,344) Amounts reclassified from accumulated other comprehensive loss Amortization of postretirement benefit net loss 687 — 687 Reclassification of net loss to interest charges — 254 254 Balances, Dec. 31, 2019 $ (16,717) $ (5,868) $ (22,585) Other comprehensive loss before reclassifications Postretirement benefit adjustments incurred during the year (4,050) — (4,050) Amounts reclassified from accumulated other comprehensive loss Amortization of postretirement benefit net loss 1,628 — 1,628 Reclassification of net loss to interest charges — 254 254 Balances, Dec. 31, 2020 $ (19,139) $ (5,614) $ (24,753) Other comprehensive loss before reclassifications Postretirement benefit adjustments incurred during the year 4,606 — 4,606 Amounts reclassified from accumulated other comprehensive loss Amortization of postretirement benefit net loss 1,648 — 1,648 Reclassification of net loss to interest charges — 316 316 Balances, Dec. 31, 2021 $ (12,885) $ (5,298) $ (18,183) |
Storm Restoration, Securitizati
Storm Restoration, Securitization, and Cost Recovery | 12 Months Ended |
Dec. 31, 2021 | |
Unusual or Infrequent Items, or Both [Abstract] | |
Storm Restoration, Securitization, and Cost Recovery | Note 19 — Storm Restoration, Securitization, and Cost Recovery Hurricanes Laura, Delta, and Zeta In August and October 2020, Cleco Power’s distribution and transmission systems sustained substantial damage from three separate hurricanes. Cleco Power’s total storm restoration costs related to the hurricanes was approximately $239.8 million. The damage to equipment from the hurricanes required replacement, as well as repair of existing assets. Therefore, the balance sheets of Cleco and Cleco Power reflect the capitalization of approximately 63%, or approximately $150.4 million, of the total restoration costs recorded at December 31, 2021. At December 31, 2021, Cleco Power had regulatory assets for non-capital expenses related to Hurricanes Laura, Delta, and Zeta, as allowed by the LPSC, totaling $74.7 million. On May 19, 2021, the LPSC issued an order authorizing Cleco Power to recover $16.0 million annually for interim storm recovery. Cleco Power began collecting this amount through rates on June 1, 2021. This order is effective until such time that the securitization of those costs is complete, which is expected in mid-2022. Winter Storms Uri and Viola In February 2021, Winter Storms Uri and Viola caused Cleco’s service territory to experience extreme and unprecedented winter weather that resulted in damage to Cleco Power’s distribution assets and caused electricity generation supply shortages, natural gas supply shortages, and increases in prices of natural gas in the U.S., primarily due to prolonged freezing temperatures. Cleco Power’s total storm restoration costs related to Winter Storms Uri and Viola was $10.1 million. The damage to equipment from the storms required replacement, as well as repair of the existing assets. Therefore, the balance sheets of Cleco and Cleco Power reflect the capitalization of approximately 80%, or approximately $8.1 million, of the estimated total restoration costs recorded at December 31, 2021. At December 31, 2021, Cleco Power had a regulatory asset for non-capital expenses of $1.9 million, as allowed by the LPSC. Cleco Power has requested recovery of these costs through the storm securitization filing that was made with the LPSC on August 5, 2021. Cleco Power’s incremental fuel and purchased power costs incurred as a result of Winter Storms Uri and Viola is approximately $55.0 million. On March 29, 2021, Cleco Power received approval from the LPSC to recover $50.0 million of these costs over a period of 12 months beginning with the May 2021 bills. On May 11, 2021, Cleco Power received notice of an audit from the LPSC for the fuel costs incurred during the time period required to restore services to Cleco Power’s customers during Winter Storms Uri and Viola. Cleco Power is responding to related data requests. Management is unable to determine the outcome or timing of the audit. Hurricane Ida On August 29, 2021, Hurricane Ida made landfall in southeast Louisiana as a Category 4 storm, causing power outages for approximately 100,000 of Cleco Power’s electric customers located primarily in southeastern Louisiana. By September 11, 2021, power was restored to 100% of customers who could receive power. Cleco Power’s total storm restoration costs related to Hurricane Ida is approximately $92.0 million. The damage to equipment from the hurricane required replacement, as well as repair of existing assets. Therefore, the balance sheets of Cleco and Cleco Power reflect the capitalization of approximately 56%, or approximately $52.1 million, of the total restoration costs recorded at December 31, 2021. At December 31, 2021, Cleco Power had a regulatory asset for non-capital expenses related to Hurricane Ida, as allowed by the LPSC, totaling $37.6 million. On September 28, 2021, Cleco Power made a supplemental filing to its application for storm restoration costs securitization to recover costs related to Hurricane Ida. Storm Securitization and Cost Recovery On August 5, 2021, Cleco Power filed testimony with the LPSC relating to securitization of the final storm costs for Hurricanes Laura, Delta, and Zeta, and Winter Storms Uri and Viola, totaling $342.0 million, including the establishment of a newly funded $100.0 million storm reserve to cover future storm costs. On September 28, 2021, Cleco Power filed supplemental testimony with the LPSC relating to storm securitization requesting an additional $100.0 million for a separate storm reserve to cover costs associated with Hurricane Ida. Cleco Power continues to respond to several sets of data requests received from the LPSC related to the securitization application. Cleco Power expects the LPSC to issu e its order authorizing the recovery of the verified final storm costs in late March 2022 and securitization of those costs to be complete in mid-2022. Cleco Power, in line with other impacted utilities, will seek available funds from the U.S. govern ment for relief of costs incurred from Hurricanes Laura, Delta, and Zeta. Cleco Power cannot predict the likelihood that any funding from the U.S. government ultimately will be approved. |
Schedule I Financial Statements
Schedule I Financial Statements of Cleco Holdings (Parent Company Only) | 12 Months Ended |
Dec. 31, 2021 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule I Financial Statements of Cleco Holdings (Parent Company Only) | CLECO HOLDINGS (Parent Company Only) SCHEDULE I Condensed Statements of Income FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2021 2020 2019 Operating expenses Administrative and general $ 1,644 $ 1,497 $ 3,263 Merger transaction costs 436 3,606 7,803 Other operating expense 247 239 130 Total operating expenses 2,327 5,342 11,196 Operating loss (2,327) (5,342) (11,196) Equity income from subsidiaries, net of tax 234,512 173,337 205,187 Interest, net (60,461) (64,362) (70,252) Other income, net 8,788 3,021 8,568 Income before income taxes 180,512 106,654 132,307 Federal and state income tax benefit (14,454) (15,646) (20,358) Net income $ 194,966 $ 122,300 $ 152,665 The accompanying notes are an integral part of the condensed financial statements. CLECO HOLDINGS (Parent Company Only) SCHEDULE I Condensed Statements of Comprehensive Income FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2021 2020 2019 Net income $ 194,966 $ 122,300 $ 152,665 Other comprehensive income, net of tax Postretirement benefits gain (loss) (net of tax expense of $394, tax benefit of $2,922, and tax benefit of $6,808, respectively) 2,167 (8,283) (19,299) Total other comprehensive income (loss), net of tax 2,167 (8,283) (19,299) Comprehensive income, net of tax $ 197,133 $ 114,017 $ 133,366 The accompanying notes are an integral part of the condensed financial statements. CLECO HOLDINGS (Parent Company Only) SCHEDULE I Condensed Balance Sheets AT DEC. 31, (THOUSANDS) 2021 2020 Assets Current assets Cash and cash equivalents $ 10,408 $ 21,622 Accounts receivable - affiliate 94,704 75,948 Other accounts receivable 419 599 Taxes receivable, net 4,001 4,196 Cash surrender value of trust-owned life insurance policies 82,316 72,954 Other current assets 59 — Total current assets 191,907 175,319 Equity investment in subsidiaries 4,304,496 4,181,383 Accumulated deferred federal and state income taxes, net 148,371 134,809 Other deferred charges 1,010 812 Total assets $ 4,645,784 $ 4,492,323 Liabilities and member's equity Liabilities Current liabilities Long-term debt due within one year $ 67,700 $ 66,000 Accounts payable 570 735 Accounts payable - affiliate 120,691 99,822 Taxes payable, net 14 — Interest accrued 10,123 10,158 Deferred compensation 14,420 13,240 Other current liabilities 748 756 Total current liabilities 214,266 190,711 Postretirement benefit obligations 3,941 4,453 Other deferred credits 1,313 1,813 Long-term debt, net 1,472,108 1,538,323 Total liabilities 1,691,628 1,735,300 Commitments and contingencies (Note 5) Member's equity 2,954,156 2,757,023 Total liabilities and member's equity $ 4,645,784 $ 4,492,323 The accompanying notes are an integral part of the condensed financial statements. CLECO HOLDINGS (Parent Company Only) SCHEDULE I Condensed Statements of Cash Flows FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2021 2020 2019 Operating activities Net cash provided by operating activities $ 56,054 $ 73,452 $ 189,644 Investing activities Return of equity investment in tax credit fund — — 1,625 Contribution to subsidiary — — (962,170) Net cash used in investing activities — — (960,545) Financing activities Draws on credit facility — 88,000 75,000 Payments on credit facility — (88,000) (75,000) Issuance of long-term debt — — 700,000 Repayment of long-term debt (66,000) (64,000) (370,000) Payment of financing costs (1,268) (2,838) (5,929) Contribution from member — — 384,900 Net cash (used in) provided by financing activities (67,268) (66,838) 708,971 Net (decrease) increase in cash and cash equivalents (11,214) 6,614 (61,930) Cash and cash equivalents at beginning of period 21,622 15,008 76,938 Cash and cash equivalents at end of period $ 10,408 $ 21,622 $ 15,008 Supplementary cash flow information Interest paid, net of amount capitalized $ 57,688 $ 62,745 $ 56,768 Income taxes (refunded), net $ — $ (2,942) $ (19) The accompanying notes are an integral part of the condensed financial statements. Note 1 — Summary of Significant Accounting Policies The condensed financial statements represent the financial information required by SEC Regulation S-X 5-04 for Cleco Holdings, which requires the inclusion of parent company only financial statements if the restricted net assets of consolidated subsidiaries exceed 25% of total consolidated net assets as of the last day of its most recent fiscal year. As of December 31, 2021, Cleco Holdings’ restricted net assets of consolidated subsidiaries were $1.76 billion and exceeded 25% of its total consolidated net assets. Cleco Holdings’ major, first-tier subsidiaries are Cleco Power and Cleco Cajun. Cleco Power contains the LPSC-jurisdictional generation, transmission, and distribution electric utility operations serving its retail and wholesale customers. Upon completion of the Cleco Cajun Transaction, Cleco Cajun became a major, first tier subsidiary. Cleco Cajun is an unregulated electric utility company that owns generation and transmission assets and supplies wholesale power and capacity to its customers. For more information about the Cleco Cajun Transaction, see Part II, Item 8, “Financial Statements and Supplementary Data — Notes to the Financial Statements — Note 3 — Business Combinations.” The accompanying financial statements have been prepared to present the results of operations, financial condition, and cash flows of Cleco Holdings on a stand-alone basis as a holding company. Investments in subsidiaries and other investees are presented using the equity method. These financial statements should be read in conjunction with Cleco’s consolidated financial statements. Note 2 — Debt At December 31, 2021, and 2020 Cleco Holdings had no short-term debt outstanding. At December 31, 2021, Cleco Holding’s long-term debt outstanding was $1.54 billion, of which $67.7 million was due within one year. The amount due within one year represents principal payments on Cleco Holdings’ debt as required by the Cleco Cajun Transaction commitments to the LPSC. On May 21, 2021, Cleco Holdings entered into a $175.0 million revolving credit agreement and a $266.0 million term loan agreement. These agreements replaced Cleco Holdings’ existing revolving credit agreement and term loan agreement. The revolving credit agreement matures on May 21, 2026. Under this agreement, Cleco Holdings is required to maintain total indebtedness less than or equal to 65.0% of total capitalization. The borrowing costs under this agreement are currently equal to LIBOR plus 1.625% or ABR plus 0.625%, plus commitment fees of 0.275%. If Cleco Holdings’ credit ratings were to be downgraded one level by the credit rating agencies, Cleco Holdings may be required to pay incremental interest and commitment fees of 0.125% and 0.05%, respectively. At December 31, 2021, Cleco Holdings had no borrowings outstanding under its revolving credit agreement. Cleco Holdings’ term loan agreement matures on May 21, 2024 and has an interest rate of LIBOR plus 1.625% or ABR plus 0.625%. Upon approval of the Cleco Cajun Transaction, commitments were made to the LPSC by Cleco Holdings, including repayment of $400.0 million of Cleco Holdings’ debt by December 31, 2024. As of December 31, 2021, Cleco Holdings was in compliance with these commitments. 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 $ 133,300 2021 $ 200,000 2022 $ 267,700 2023 $ 333,300 2024 $ 400,000 The principal amounts payable under long-term debt agreements for each year through 2026 and thereafter are as follows: AMOUNTS PAYABLE UNDER LONG-TERM DEBT ARRANGEMENTS (THOUSANDS) For the year ending Dec. 31, 2022 $ — 2023 $ 165,000 2024 $ 200,000 2025 $ — 2026 $ 535,000 Thereafter $ 650,000 Note 3 — Cash Distributions and Equity Contributions Some provisions in Cleco Power’s debt instruments restrict the amount of equity available for distribution to Cleco Holdings by Cleco Power by requiring Cleco Power’s total indebtedness to be less than or equal to 65.0% of total capitalization. In addition, the 2016 Merger Commitments provide for limitations on the amount of distributions that may be paid from Cleco Power to Cleco Holdings, depending on Cleco Power’s common equity ratio and its corporate credit ratings. The following table summarizes the cash distributions Cleco Holdings received from affiliates during 2021, 2020, and 2019: FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2021 2020 2019 Cleco Power $ — $ — $ 20,000 Cleco Cajun 111,000 134,000 205,000 Total $ 111,000 $ 134,000 $ 225,000 During the years ended December 31, 2021, 2020, and 2019, Cleco Holdings made no non-cash equity contributions to affiliates. During the year ended December 31, 2021, and 2020, Cleco Holdings made no cash contributions to affiliates. During the year ended December 31, 2019, Cleco Holdings made $962.2 million of contributions to Cleco Cajun to finance the Cleco Cajun Transaction. During the years ended December 31, 2021, and 2020, Cleco Holdings received no equity contributions from Cleco Group. During the year ended December 31, 2019, Cleco Holdings received $384.9 million equity contributions from Cleco Group. During the years ended December 31, 2021, 2020, and 2019, Cleco Holdings made no distribution payments to Cleco Group. Note 4 — Income Taxes Cleco Holdings’ (Parent Company Only) Condensed Statements of Income reflect income tax expense (benefit) for the following line items: FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2021 2020 2019 Federal and state income tax benefit $ (14,454) $ (15,646) $ (20,358) Equity income from subsidiaries - federal and state income tax expense $ 27,565 $ 51,364 $ 63,523 Note 5 — Commitments and Contingencies For information regarding commitments and contingencies related to Cleco Holdings, see Part II, Item 8, “Financial Statements and Supplementary Data — Notes to the Financial Statements — Note 15 — Litigation, Other Commitments and Contingencies, and Disclosures about Guarantees.” |
Schedule II Valuation and Quali
Schedule II Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2021 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | CLECO SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS (THOUSANDS) BALANCE AT BEGINNING OF PERIOD ADDITIONS DEDUCTIONS BALANCE AT END OF PERIOD (1) Allowance for Uncollectible Accounts Year Ended Dec. 31, 2021 $ 2,758 $ 5,463 $ 6,919 $ 1,302 Year Ended Dec. 31, 2020 $ 3,005 $ 6,176 $ 6,423 $ 2,758 Year Ended Dec. 31, 2019 $ 814 $ 2,323 $ 132 $ 3,005 (1) Deducted in the consolidated balance sheet (THOUSANDS) BALANCE AT BEGINNING OF PERIOD ADDITIONS DEDUCTIONS BALANCE AT END OF PERIOD (1) Unrestricted Storm Reserve Year Ended Dec. 31, 2021 $ — $ — $ — $ — Year Ended Dec. 31, 2020 $ 1,100 $ 12,329 $ 13,429 $ — Year Ended Dec. 31, 2019 $ 3,672 $ 4,000 $ 6,572 $ 1,100 Restricted Storm Reserve Year Ended Dec. 31, 2021 $ — $ — $ — $ — Year Ended Dec. 31, 2020 $ 12,285 $ 44 $ 12,329 $ — Year Ended Dec. 31, 2019 $ 15,485 $ 800 $ 4,000 $ 12,285 (1) Included in the consolidated balance sheet CLECO POWER SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS (THOUSANDS) BALANCE AT BEGINNING OF PERIOD ADDITIONS DEDUCTIONS BALANCE AT END OF PERIOD (1) Allowance for Uncollectible Accounts Year Ended Dec. 31, 2021 $ 2,758 $ 5,463 $ 6,919 $ 1,302 Year Ended Dec. 31, 2020 $ 3,005 $ 6,176 $ 6,423 $ 2,758 Year Ended Dec. 31, 2019 $ 814 $ 2,323 $ 132 $ 3,005 (1) Deducted in the consolidated balance sheet (THOUSANDS) BALANCE AT BEGINNING OF PERIOD ADDITIONS DEDUCTIONS BALANCE AT END OF PERIOD (1) Unrestricted Storm Reserve Year Ended Dec. 31, 2021 $ — $ — $ — $ — Year Ended Dec. 31, 2020 $ 1,100 $ 12,329 $ 13,429 $ — Year Ended Dec. 31, 2019 $ 3,672 $ 4,000 $ 6,572 $ 1,100 Restricted Storm Reserve Year Ended Dec. 31, 2021 $ — $ — $ — $ — Year Ended Dec. 31, 2020 $ 12,285 $ 44 $ 12,329 $ — Year Ended Dec. 31, 2019 $ 15,485 $ 800 $ 4,000 $ 12,285 (1) Included in the consolidated balance sheet |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Use of Estimates | The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. |
Principles of Consolidation | The accompanying consolidated financial statements of Cleco include the accounts of Cleco and its majority-owned subsidiaries after elimination of intercompany accounts and transactions. Cleco’s consolidated financial statements include the financial results of Cleco Cajun from the closing of the Cleco Cajun Transaction on February 4, 2019, through December 31, 2021. |
Goodwill | Goodwill is the excess of the purchase price (consideration transferred and liabilities assumed) over the estimated fair value of net assets of the acquired business and is not subject to amortization. Goodwill is assessed as of August 1 of each year or more often if an event occurs or circumstances change that would indicate the carrying amount may be impaired.Cleco conducted its 2021 annual impairment test using an August 1, 2021, measurement date. The fair value of the Cleco Power reporting unit 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 or discount rate. Changes in these assumptions could materially affect the determination of fair value and goodwill impairment at Cleco Power. |
Intangible Assets and Liabilities | intangible assets and liabilities included fair value adjustments for long-term wholesale power supply agreements. Intangible liabilities also included a fair value adjustment for the LTSA assumed for maintenance services related to the Cottonwood Plant. These intangible assets and liabilities are being amortized over their estimated useful lives in a manner that best reflects the economic impact derived from such assets and liabilities. Prior to being fully amortized in March 2020, intangible assets also included Cleco Katrina/Rita’s right to bill and collect storm recovery charges from Cleco Power’s customers.During the third quarter of 2021, an impairment was recognized on the intangible asset related to Cleco Power’s trade name, and the carrying value of the intangible asset was reduced to zero. Impairment is tested if there are events or circumstances that indicate that an impairment analysis should be performed. If such an event or circumstance occurs, intangible impairment testing is performed prior to goodwill impairment testing. Impairment is calculated as the excess of the asset and liabilities’ respective carrying amounts over their respective fair values. For more information on intangible assets and liabilities |
Statements of Cash Flows | Cleco and Cleco Power’s Consolidated Statements of Cash Flows are prepared using the indirect method. This method requires adjusting net income to remove the effects of all deferrals and accruals of operating cash receipts and payments and to remove items whose cash effects are related to investing and financing cash flows. Derivatives meeting the definition of an accounting hedge are classified in the same category as the item being hedged. |
Regulation | Cleco Power is subject to regulation by FERC and the LPSC. Cleco Cajun is subject to regulation by FERC. Cleco complies with the accounting policies and practices prescribed by its regulatory commissions. Cleco Power’s retail rates are regulated by the LPSC. Cleco and Cleco Cajun’s rates for transmission services are regulated by FERC. Rates for wholesale power sales are based on market-based rates, pending FERC review of Cleco’s generation market power analysis. Cleco Power must evaluate its various transactions related to regulatory orders and accounting guidance to ensure the appropriate timing of revenue recognition, the evaluation of cost deferral, and the recoverability of certain assets and refund of certain liabilities. Cleco Power capitalizes or defers certain costs for recovery from its customers and recognizes a liability for amounts expected to be returned to its 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. Regulatory assets and liabilities are amortized consistent with the treatment in the ratemaking process. Pursuant to this regulatory process, Cleco has recorded regulatory assets and liabilities. Any future plan adopted by the LPSC for purposes of transitioning utilities from LPSC regulation to retail competition may affect the regulatory assets and liabilities recorded by Cleco if the criteria for the application of the authoritative guidelines for industry regulated operations cannot continue to be met. At this time, Cleco cannot predict whether any legislation or regulation affecting Cleco will be enacted or adopted and, if enacted, what form such legislation or regulation may take.Cleco Power capitalizes or defers certain costs for recovery from customers and recognizes a liability for amounts expected to be returned to customers based on regulatory approval and management’s ongoing assessment that it is probable these items will be recovered or refunded through the ratemaking process.Under the current regulatory environment, Cleco Power believes these regulatory assets will be fully recoverable; however, if in the future, as a result of regulatory changes or competition, Cleco Power’s ability to recover these regulatory assets would no longer be probable, then to the extent that such regulatory assets were determined not to be recoverable, Cleco Power would be required to write-down such assets. In addition, potential deregulation of the industry or possible future changes in the method of rate regulation of Cleco Power, could require discontinuance of the application of the authoritative guidance of regulated operations. |
AROs | Cleco and Cleco Power recognize an ARO when there is a legal obligation under existing or enacted law, statute, written or oral contract, or by legal construction under the doctrine of promissory estoppel to incur costs to remove an asset when the asset is retired. These guidelines also require an ARO, which is conditional on a future event, to be recorded even if the event has not yet occurred. Cleco and Cleco Power recognize AROs at the present value of the projected liability in the period in which it is incurred, if a reasonable estimate of fair value can be made. The liability is accreted to its present value each accounting period. Cleco Power defers this accretion as a regulatory asset based on its determination that these costs can be collected from customers. Concurrent with the recognition of the liability, Cleco and Cleco Power capitalize these costs to the related property, plant, and equipment asset. These capitalized costs are depreciated over the same period as the related property asset. Cleco Power also defers the current depreciation of the asset retirement cost as a regulatory asset. |
Property, Plant, and Equipment | Property, plant, and equipment consists primarily of utility generation and energy transmission and distribution assets. Assets utilized primarily for retail and wholesale operations and electric transmission and distribution are stated at the cost of construction, which includes certain materials, labor, payroll taxes and benefits, administrative and general costs, and the estimated cost of funds used during construction. Jointly owned assets are reflected in property, plant, and equipment at Cleco Power’s and Cleco Cajun’s share of the cost to construct or purchase the respective assets.At the date of the 2016 Merger, Cleco’s gross balance of fixed depreciable assets was adjusted to be net of accumulated depreciation, as no accumulated depreciation existed on such date. Since pushdown accounting was not elected at the Cleco Power level, Cleco Power retained its accumulated depreciation.Cleco’s cost of improvements to property, plant, and equipment is capitalized. Costs associated with repairs and major maintenance projects are expensed as incurred. Cleco capitalizes the cost to purchase or develop software for internal use.Upon retirement or disposition, the cost of Cleco Power’s depreciable plant and the cost of removal, net of salvage value, are charged to accumulated depreciation. For Cleco’s other subsidiaries, upon disposition or retirement of depreciable assets, the difference between the net book value of the property and any proceeds received for the property is recorded as a gain or loss on asset disposition on Cleco’s Consolidated Statements of Income. Any cost incurred to remove the asset is charged to expense. |
Deferred Project Costs | Cleco Power defers costs related to the initial stage of a construction project during which time the feasibility of the construction of property, plant, and equipment is being investigated. |
Fuel Inventory and Materials and Supplies | At December 31, 2021, fuel inventory consisted primarily of petroleum coke, coal, limestone, and natural gas used to generate electricity. Prior to the retirement of the Dolet Hills Power Station on December 31, 2021, fuel inventory also consisted of lignite. Materials and supplies consists of transmission and distribution line construction and repair materials. It also consists of generating station and transmission and distribution substation repair materials. |
Reserves for Credit Losses | Customer accounts receivable are recorded at the invoiced amount and do not bear interest. Customer accounts receivables are generally considered to become past due 20 days after the billing date. Cleco recognizes write-offs within the allowance for credit losses once all recovery methods have been exhausted. It is the policy of management to review accounts receivable and unbilled revenue monthly using a reserve matrix based on historical bad debt write-offs as well as current and forecasted economic conditions to establish a credit loss estimate. Management’s historical credit loss analysis included periods of economic recessions, natural disasters, and temporary changes to collection policies. Due to the critical necessity of electricity, none of these past events have significantly impacted Cleco’s credit loss rates. Although Cleco’s service territory experienced a recent economic decline during 2021 and 2020 primarily related to the COVID-19 pandemic and weather-related events, the |
Other Reserves | Cleco maintains property insurance on generating stations, buildings and contents, and substations. Cleco is self-insured for any damage to its power lines. To mitigate the exposure to potential financial loss for damage to lines, Cleco Power maintains an LPSC-approved storm reserve. Cleco also maintains liability and workers’ compensation insurance to mitigate financial losses due to injuries and damages to the property of others. Cleco’s insurance covers claims that exceed certain self-insured limits. For claims within certain self-insured limits, Cleco maintains reserves.Additionally, Cleco maintains directors and officers insurance to protect managers from claims which may arise from their decisions and actions taken within the scope of their regular duties. |
Cash Equivalents | Cleco considers highly liquid, marketable securities, and other similar instruments with original maturity dates of three months or less to be cash equivalents. |
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 company purposes.Prior to the repayment of the storm recovery bonds at their scheduled maturity in March 2020, Cleco Katrina/Rita had the right to bill and collect storm restoration costs from Cleco Power’s customers. As cash was collected, it was restricted for payment of administration fees, interest, and principal on the storm recovery bonds. In April 2021, after payments for all final administrative and winding up activities of Cleco Katrina/Rita were made, Cleco Katrina/Rita transferred its remaining restricted cash to Cleco Power to be used to benefit retail customers in a manner and timing as approved by the LPSC. |
Equity Investments | Cleco and Cleco Power account for investments in unconsolidated affiliated companies using the equity method of accounting. The amounts reported on Cleco and Cleco Power’s Consolidated Balance Sheets represent assets contributed by Cleco or Cleco Power, plus their share of the net income of the affiliate, less any distributions of earnings (dividends) received from the affiliate. The revenues and expenses (excluding income taxes) of these affiliates are netted and reported on one line item as equity income from investees on Cleco and Cleco Power’s Consolidated Statements of Income. Cleco evaluates for impairments of equity method investments at each balance sheet date to determine if events and circumstances have occurred that indicate a possible other-than-temporary decline in the fair value of the investment and the possible inability to recover the carrying value through operations. Cleco uses estimates of the future cash flows from the investee and observable market transactions in order to calculate fair value and recoverability. An impairment is recognized when an other-than-temporary decline in market value occurs and recovery of the carrying value is not |
Income Taxes | Cleco accounts for income taxes under the asset and liability method. Cleco provides for federal and state income taxes currently payable, as well as for those deferred due to timing differences between reporting income and expenses for financial statement purposes versus tax purposes. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted income tax rates expected to be applied to taxable income in the years in which those temporary differences are expected to be recovered or settled. Deferred tax assets and liabilities are classified as non-current on Cleco and Cleco Power’s Consolidated Balance Sheets. Cleco’s income tax expense and related regulatory assets and liabilities could be affected by changes in its assumptions and estimates and by ultimate resolution of assumptions and estimates with taxing authorities. Cleco Group files a federal income tax return for all wholly owned subsidiaries. Cleco Power computes its federal and state income taxes as if it were a stand-alone taxpayer. The LPSC generally requires Cleco Power to flow the effects of state income taxes to customers. |
Investment Tax Credits | Investment tax credits, which were deferred for financial statement purposes, are amortized as a reduction to income tax expense over the estimated service lives of the properties that gave rise to the credits.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 expenses. |
Debt Issuance Costs, Premiums, and Discounts | Issuance costs, premiums, and discounts applicable to debt securities are amortized to interest expense ratably over the lives of the related issuances. Expenses and call premiums related to refinanced Cleco Power debt are deferred and amortized over the life of the new issuance. Debt issuance costs, premiums, and discounts are presented as a direct deduction from the carrying value of the related debt liability. |
Revenue and Fuel Costs | Utility Revenue Revenue from sales of electricity is recognized when the service is provided. The costs of fuel and purchased power used for Cleco Power’s retail customers currently are recovered from its customers through Cleco Power’s FAC. These costs are subject to audit and final determination by regulators. Sales taxes and pass-through fees collected on the sale of electricity are not recorded in utility revenue. Unbilled Revenue Cleco Power accrues estimated revenue monthly for energy used by customers but not yet billed. The monthly estimated unbilled revenue amounts are recorded as unbilled revenue and a receivable. Cleco Power uses actual customer energy consumption data available from AMI to calculate unbilled revenues. Other Operations Revenue Other operations revenue is recognized at the time products or services are provided to and accepted by customers, and collectability is reasonably assured. Sales and Use Taxes Cleco collects a sales and use tax on the sale of electricity that subsequently is remitted to the state in accordance with state law. These amounts are not recorded as income or expense on Cleco’s Consolidated Statements of Income but are reflected at gross amounts on Cleco’s Consolidated Balance Sheets as a receivable until the tax is collected and as a payable until the liability is paid. Cleco currently has no sales tax collected from customers reflected on its income statement. Franchise Fees Cleco Power collects a consumer fee for one of its franchise agreements. This fee is not recorded on Cleco and Cleco Power’s Consolidated Statements of Income as revenue and expense, but is reflected at gross amounts on Cleco and Cleco Power’s Consolidated Balance Sheets as a receivable until it is collected and as a payable until the liability is paid. |
AFUDC | The capitalization of AFUDC by Cleco Power is a utility accounting practice prescribed by FERC and the LPSC. AFUDC represents the estimated debt and equity costs of capital funds that are necessary to finance construction of new and existing facilities. While cash is not realized currently from such allowance, AFUDC increases the revenue requirement over the same life of the plant through a higher rate base and higher depreciation. Under regulatory practices, a return on and recovery of AFUDC is permitted in setting rates charged for utility services. For 2020, Cleco Power’s average short-term debt balance exceeded its average construction work-in-progress balance; however, Cleco Power elected the FERC capital structure waiver contained in FERC Docket Number AC20-127-000. |
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 has natural gas commodity contracts that are fixed price physical forwards and financial swaps. Management did not elect to apply hedge accounting to these contracts as allowed 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 are also recorded on the income statement as a component of fuel expense. For more information on FTRs and other commodity derivatives, see Note 8 — “Fair Value Accounting and Financial Instruments — 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. |
Accounting for MISO Transactions | Cleco Power and Cleco Cajun participate in MISO’s Energy and Operating Reserve market where sales and purchases are netted hourly. If the hourly activity nets to sales, the result is reported in Electric operations on Cleco and Cleco Power’s Consolidated Statements of Income. If the hourly activity nets to purchases, the result is reported in Purchased power on Cleco and Cleco Power’s Consolidated Statements of Income. |
Leases | Cleco determines if a contract is a lease at its inception. 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. 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. For more information on leases, see Note 4 — “Leases.” |
Leases | Cleco determines if a contract is a lease at its inception. 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. 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. For more information on leases, see Note 4 — “Leases.” |
Recent Authoritative Guidance | In March 2020, FASB issued optional guidance, for a limited period of time, that applies to entities meeting certain criteria for the contract modifications or hedging relationships that are referencing LIBOR or another reference rate expected to be discontinued due to reference rate reform. The guidance includes a general principal that permits an entity to consider contract modifications due to reference rate reform to be an event that does not require contract remeasurement at the modification date or reassessment of a previous accounting determination. The optional guidance may be applied from March 12, 2020, through December 31, 2022. Management has identified contracts with reference rates that will be discontinued, primarily related to long-term debt obligations. Certain debt contracts have been amended to include fallback provisions that provide substitute reference rates upon the discontinuance of LIBOR, among other amendments. Management will continue to modify contracts to include similar fallback language and expects to apply this guidance on an ongoing basis. Management does not expect this guidance to have a significant impact on the Registrants’ results of operations, financial condition, or cash flows. In December 2019, FASB amended the guidance for accounting for income taxes. The amendments simplify the accounting for income taxes by removing certain exceptions to general principles included in the accounting guidance. Effective January 1, 2021, Cleco adopted the amended accounting guidance. Adoption of this guidance did not materially impact the Registrants’ results of operations, financial condition, or cash flows. |
Segment Reporting | The financial results in the following tables are presented on an accrual basis. EBITDA is a key non-GAAP financial measure used by the CEO to assess the operating performance of Cleco’s segments. Management evaluates the performance of Cleco’s segments and allocates resources to them based on segment profit and the requirements to implement strategic initiatives and projects to meet current business objectives. EBITDA is defined as net income adjusted for interest, income taxes, depreciation, and amortization. Depreciation and amortization in the following tables includes amortization of intangible assets and liabilities recorded for the fair value adjustment of wholesale power supply agreements as a result of the 2016 Merger and the Cleco Cajun Transaction, as well as amortization of deferred lease revenue resulting from the Cleco Cajun Transaction. Material intercompany transactions occur on a regular basis. These intercompany transactions relate primarily to joint and common administrative support services as well as transmission services provided by Cleco Power to Cleco Cajun. |
Revenue from Contracts with Customers | 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 Power 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 Power 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 Power’s retail revenue is unbilled electric revenue, which represents the amount customers will be billed for services rendered from the meter reading from the most recent bill to the end of the respective accounting period. Cleco Power uses actual customer energy consumption data available from AMI to calculate unbilled revenue. Also included in Cleco Power’s retail revenue is electric customer credits, which primarily represents the credits to Cleco Power’s retail customers for the federal tax-related benefits of the TCJA prior to the settlement of Cleco Power’s new retail rate plan. Subsequent to the settlement of Cleco Power’s new retail rate plan, these credits offset base revenue. Wholesale Revenue Cleco’s wholesale revenue is generated primarily through the sale of energy and capacity to electric cooperatives and municipalities. 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, through Cleco Power and Cleco Cajun, charges its wholesale customers market based rates that are subject to FERC’s triennial market power analysis. 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. Transmission Revenue Cleco Power and Cleco Cajun earn transmission revenues pursuant to MISO’s FERC filed tariff. The performance obligation of transmission service is satisfied as service is provided. Revenue from the transmission of electricity for Cleco Power and Cleco Cajun is recorded based on a separate FERC-approved annual filing rate mechanism effective June 1 of each year. These rates are based on the respective costs to provide transmission services. Other Revenue |
Pension Plan and Employee Benefits | Employees hired before August 1, 2007, are covered by a non-contributory, defined benefit pension plan. Benefits under the plan reflect an employee’s years of service, age at retirement, and highest total average compensation for any consecutive five Certain Cleco officers are covered by SERP. In 2014, SERP was closed to new participants; however, with regard to current SERP participants, including former employees or their beneficiaries, all terms of SERP will continue, other than as described below. SERP is a non-qualified, non-contributory, defined benefit pension plan. Generally, benefits under the plan reflect an employee’s years of service, age at retirement, and the sum of (a) the highest base salary paid out over the last five 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 |
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 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 Consolidated Statements of Income. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Line Items] | |
Schedule of Amortization of Computer Software | Amortization of capitalized computer software costs charged to expense in Cleco and Cleco Power’s Consolidated Statements of Income for the years ending December 31, 2021, 2020, and 2019 is shown in the following tables: Cleco FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2021 2020 2019 Amortization $ 11,878 $ 11,015 $ 4,917 The following tables present Cleco and Cleco Power’s amortization of intangible assets and liabilities: Cleco FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2021 2020 2019 Intangible assets Cleco Katrina/Rita right to bill and collect storm recover charges $ — $ 517 $ 20,576 Trade name $ 3,897 $ 255 $ 255 Power supply agreements $ 25,600 $ 25,600 $ 24,273 Intangible liabilities LTSA $ 3,484 $ 3,484 $ 3,234 Power supply agreements $ 2,378 $ 3,528 $ 3,194 An impairment on the Trade name intangible asset was recognized in 2021. No impairments for intangibles in the table above were recognized for 2020 and 2019. |
Schedule of Property, Plant, and Equipment | Depreciation on all other property, plant, and equipment is calculated primarily on a straight-line basis over the useful lives of the assets. The following table presents the useful lives of depreciable assets for Cleco and Cleco Power: CATEGORY (YEARS) CLECO CLECO POWER Utility Plants Generation 10 – 95 10 – 95 Distribution 15 – 50 15 – 50 Transmission 5 – 55 5 – 55 Other utility plant 5 – 45 5 – 45 Other property, plant, and equipment 5 – 45 5 – 45 At December 31, 2021, and 2020, Cleco and Cleco Power’s property, plant, and equipment consisted of the following: Cleco AT DEC. 31, (THOUSANDS) 2021 2020 Utility plants Generation $ 2,704,536 $ 2,915,349 Distribution 1,494,411 1,357,714 Transmission 797,694 667,398 Other utility plant 412,577 391,057 Other property, plant, and equipment 7,504 5,672 Total property, plant, and equipment 5,416,722 5,337,190 Accumulated depreciation (700,991) (672,271) Net property, plant, and equipment $ 4,715,731 $ 4,664,919 Cleco AT DEC. 31, (THOUSANDS) 2021 2020 Acadia Unit 1 Plant acquisition adjustment $ 76,116 $ 76,116 Accumulated amortization (18,201) (15,018) Net plant acquisition adjustment $ 57,915 $ 61,098 |
Schedule of Changes in Allowance for Credit Losses, Accounts Receivable | The table below presents the changes in the allowance for credit losses by receivable for Cleco and Cleco Power: Cleco (THOUSANDS) ACCOUNTS OTHER* TOTAL Balances, Dec. 31, 2019 $ 3,005 $ 1,250 $ 4,255 CECL adoption 71 — 71 Current period provision 5,029 388 5,417 Charge-offs (6,423) — (6,423) Recovery 1,076 — 1,076 Balances, Dec. 31, 2020 2,758 1,638 4,396 Current period provision 4,003 — 4,003 Charge-offs (6,919) — (6,919) Recovery 1,460 — 1,460 Balances, Dec. 31, 2021 $ 1,302 $ 1,638 $ 2,940 * Loan held at Diversified Lands that was fully reserved for at December 31, 2020. |
Schedule of Restricted Cash and Cash Equivalents | Cleco and Cleco Power’s restricted cash and cash equivalents consisted of the following: Cleco AT DEC. 31, (THOUSANDS) 2021 2020 Current Cleco Katrina/Rita’s storm recovery surcharge $ 1,674 $ 2,626 Cleco Power’s charitable contributions — 1,718 Cleco Power’s rate credit escrow — 201 Total current 1,674 4,545 Non-current Diversified Lands’ mitigation escrow 22 22 Cleco Cajun’s defense fund 723 722 Total non-current 745 744 Total restricted cash and cash equivalents $ 2,419 $ 5,289 |
CLECO POWER | |
Accounting Policies [Line Items] | |
Schedule of Amortization of Computer Software | Cleco Power FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2021 2020 2019 Amortization $ 11,268 $ 10,379 $ 4,321 Cleco Power FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2021 2020 2019 Cleco Katrina/Rita right to bill and collect storm recovery charges $ — $ 517 $ 20,576 |
Schedule of Property, Plant, and Equipment | Cleco Power AT DEC. 31, (THOUSANDS) 2021 2020 Regulated utility plants Generation $ 2,314,285 $ 2,673,271 Distribution 1,933,389 1,796,841 Transmission 988,122 857,833 Other utility plant 509,693 496,433 Total property, plant, and equipment 5,745,489 5,824,378 Accumulated depreciation (1,919,766) (2,067,362) Net property, plant, and equipment $ 3,825,723 $ 3,757,016 Cleco Power AT DEC. 31, (THOUSANDS) 2021 2020 Acadia Unit 1 Plant acquisition adjustment $ 95,578 $ 95,578 Accumulated amortization (37,663) (34,480) Net plant acquisition adjustment $ 57,915 $ 61,098 |
Schedule of Changes in Allowance for Credit Losses, Accounts Receivable | Cleco Power (THOUSANDS) ACCOUNTS Balances, Dec. 31, 2019 $ 3,005 CECL adoption 71 Current period provision 5,029 Charge-offs (6,423) Recovery 1,076 Balances, Dec. 31, 2020 2,758 Current period provision 4,003 Charge-offs (6,919) Recovery 1,460 Balances, Dec. 31, 2021 $ 1,302 |
Schedule of Restricted Cash and Cash Equivalents | Cleco Power AT DEC. 31, (THOUSANDS) 2021 2020 Current Cleco Katrina/Rita’s storm recovery surcharges $ 1,674 $ 2,626 Charitable contributions — 1,718 Rate credit escrow — 201 Total restricted cash and cash equivalents $ 1,674 $ 4,545 |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Assets Acquired and Liabilities Assumed and Measurement Period Adjustments | The following chart presents Cleco’s purchase price allocation: Purchase Price Allocation (THOUSANDS) 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 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 |
Schedule of 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 YEAR ENDED DEC. 31, (THOUSANDS) 2019 Operating revenue, net $ 1,660,362 Net income $ 154,898 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Schedule of 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 December 31, 2021: (THOUSANDS) CLECO POWER CLECO Years ending Dec. 31, 2022 $ 3,552 $ 3,584 2023 3,398 3,426 2024 3,262 3,282 2025 3,216 3,216 2026 3,216 3,216 Thereafter 12,186 12,186 Total minimum lease payments 28,830 28,910 Less: amount representing interest 4,898 4,928 Present value of net minimum operating lease payments $ 23,932 $ 23,982 Current liabilities $ 2,832 $ 2,854 Non-current liabilities $ 21,100 $ 21,128 |
Schedule of Leased Property Under Finance Lease | The following is an analysis of the leased property under the finance lease: (THOUSANDS) AT DEC. 31, 2021 AT DEC. 31, 2020 Barges $ 16,800 $ 16,800 Accumulated amortization (4,200) (3,080) Net finance lease asset $ 12,600 $ 13,720 |
Schedule of 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 December 31, 2021: (THOUSANDS) Years ending Dec. 31, 2022 $ 2,203 2023 2,203 2024 2,203 2025 2,203 2026 2,203 Thereafter 13,269 Total minimum lease payments 24,284 Less: amount representing interest 9,722 Present value of net minimum finance lease payments $ 14,562 Current liabilities $ 755 Non-current liabilities $ 13,807 The principal amounts payable under the finance lease agreement for each year through 2026 and thereafter are as follows: (THOUSANDS) CLECO POWER CLECO For the year ending Dec. 31, 2022 $ 755 $ 755 2023 $ 836 $ 836 2024 $ 925 $ 925 2025 $ 1,023 $ 1,023 2026 $ 1,133 $ 1,133 Thereafter $ 9,890 $ 9,890 |
Schedule of Total Lease Costs, Supplemental Cash Flow Information, and Other Supplemental Information | The following tables reflect total lease costs for Cleco and Cleco Power for the years ended December 31, 2021, and 2020: Cleco FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2021 2020 Finance lease cost Amortization of ROU assets $ 1,120 $ 1,120 Interest on lease liabilities 1,521 1,587 Operating lease cost 3,985 4,576 Variable lease cost 385 301 Total lease cost $ 7,011 $ 7,584 Cleco Power FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2021 2020 Finance lease cost Amortization of ROU assets $ 1,120 $ 1,120 Interest on lease liabilities 1,521 1,587 Operating lease cost 3,845 4,191 Variable lease cost 385 301 Total lease cost $ 6,871 $ 7,199 The following tables present additional information related to Cleco and Cleco Power’s operating and finance leases as of and for the years ended December 31, 2021, and 2020: Cleco AT DEC. 31, (THOUSANDS) BALANCE SHEET LINE ITEM 2021 2020 Supplemental balance sheet information ROU assets Operating Operating lease right of use assets $ 24,014 $ 26,172 Finance Property, plant, and equipment 12,600 13,720 Total ROU assets $ 36,614 $ 39,892 Current lease liabilities Operating Other current liabilities $ 2,854 $ 2,802 Finance Long-term debt and finance leases due within one year 755 682 Non-current lease liabilities Operating Operating lease liabilities 21,128 23,333 Finance Long-term debt and finance leases, net 13,807 14,562 Total lease liabilities $ 38,544 $ 41,379 Cleco Power AT DEC. 31, (THOUSANDS) BALANCE SHEET LINE ITEM 2021 2020 Supplemental balance sheet information ROU assets Operating Operating lease right of use assets $ 23,970 $ 26,006 Finance Property, plant, and equipment 12,600 13,720 Total ROU assets $ 36,570 $ 39,726 Current lease liabilities Operating Other current liabilities $ 2,832 $ 2,672 Finance Long-term debt and finance leases due within one year 755 682 Non-current lease liabilities Operating Operating lease liabilities 21,100 23,295 Finance Long-term debt and finance leases, net 13,807 14,562 Total lease liabilities $ 38,494 $ 41,211 Cleco FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2021 2020 Supplemental cash flow information Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 3,938 $ 4,504 Operating cash flows from finance leases $ 1,521 $ 1,587 Financing cash flows from finance leases $ 682 $ 617 Cleco Power FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2021 2020 Supplemental cash flow information Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 3,800 $ 4,120 Operating cash flows from finance leases $ 1,521 $ 1,587 Financing cash flows from finance leases $ 682 $ 617 Cleco AT DEC. 31, (THOUSANDS) 2021 2020 Other supplemental information Operating leases Weighted-average remaining lease term 9.0 years 9.9 years Weighted-average discount rate 4.30 % 4.31 % Finance leases Weighted-average remaining lease term 11.3 years 12.3 years Weighted-average discount rate 10.18 % 10.18 % Cleco Power AT DEC. 31, 2021 (THOUSANDS) 2021 2020 Other supplemental information Operating leases Weighted-average remaining lease term 9.0 years 10.0 years Weighted-average discount rate 4.30 % 4.31 % Finance leases Weighted-average remaining lease term 11.3 years 12.3 years Weighted-average discount rate 10.18 % 10.18 % |
Schedule of Lease Income Under Cottonwood Sale Leaseback | Cleco Cajun is Cleco’s only subsidiary with lessor arrangements. Cleco Cajun’s lease income under the Cottonwood Sale Leaseback is included in Other operations within Cleco’s Consolidated Statement of Income. Cleco Cajun’s lease income under the Cottonwood Sale Leaseback for the years ended December 31, 2021, and 2020 was as follows: FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2021 2020 Fixed payments $ 40,000 $ 40,000 Variable payments 18,226 20,883 Amortization of deferred lease liability (1) 9,205 9,205 Total lease income $ 67,431 $ 70,088 |
Schedule of Remaining Minimum Lease Payments to be Received Under Cottonwood Sale Leaseback | The remaining minimum lease payments to be received under the Cottonwood Sale Leaseback are as follows: (THOUSANDS) Years ending Dec. 31, 2022 $ 40,000 2023 40,000 2024 40,000 2025 16,667 Total payments $ 136,667 |
Schedule of Property Associated with Cottonwood Sale Leaseback | Property associated with the Cottonwood Sale Leaseback was as follows: AT DEC. 31, (THOUSANDS) 2021 2020 Property, plant, and equipment $ 552,659 $ 552,659 Accumulated depreciation (84,065) (52,053) Net property, plant, and equipment $ 468,594 $ 500,606 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | Operating revenue, net for the years ended December 31, 2021, 2020, and 2019 was as follows: FOR THE YEAR ENDED DEC. 31, 2021 (THOUSANDS) CLECO POWER CLECO CAJUN OTHER ELIMINATIONS TOTAL Revenue from contracts with customers Retail revenue Residential (1) $ 453,873 $ — $ — $ — $ 453,873 Commercial (1) 294,553 — — — 294,553 Industrial (1) 175,134 — — — 175,134 Other retail (1) 16,105 — — — 16,105 Electric customer credits (41,007) — — — (41,007) Total retail revenue 898,658 — — — 898,658 Wholesale, net 250,987 (1) 398,226 (9,680) (2) 1 639,534 Transmission, net 55,963 (3) 61,500 (4) — (7,615) 109,848 Other 18,791 — 8 — 18,799 Affiliate (5) 5,641 — 113,623 (119,264) — Total revenue from contracts with customers 1,230,040 459,726 103,951 (126,878) 1,666,839 Revenue unrelated to contracts with customers Other 11,597 (6) 67,493 (7) — — 79,090 Total revenue unrelated to contracts with customers 11,597 67,493 — — 79,090 Operating revenue, net $ 1,241,637 $ 527,219 $ 103,951 $ (126,878) $ 1,745,929 (1) Includes fuel recovery revenue. (2) Amortization of intangible assets related to Cleco Power’s wholesale power supply agreements. (3) Includes $(0.1) million of electric customer credits. (4) Includes $(0.2) million of electric customer credits. (5) Includes interdepartmental rents and support services. This revenue is eliminated upon consolidation. (6) Represents realized gains associated with FTRs. (7) Includes $58.2 million in lease revenue related to the Cottonwood Sale Leaseback and $9.2 million of deferred lease revenue amortization. FOR THE YEAR ENDED DEC. 31, 2020 (THOUSANDS) CLECO POWER CLECO CAJUN OTHER ELIMINATIONS TOTAL Revenue from contracts with customers Retail revenue Residential (1) $ 402,050 $ — $ — $ — $ 402,050 Commercial (1) 256,964 — — — 256,964 Industrial (1) 137,920 — — — 137,920 Other retail (1) 14,235 — — — 14,235 Surcharge 2,440 — — — 2,440 Electric customer credits (52,208) — — — (52,208) Total retail revenue 761,401 — — — 761,401 Wholesale, net 192,187 (1) 365,555 (9,680) (2) — 548,062 Transmission, net 49,164 (3) 51,449 (4) — (6,463) 94,150 Other 15,162 — — 1 15,163 Affiliate (5) 5,156 204 129,126 (134,486) — Total revenue from contracts with customers 1,023,070 417,208 119,446 (140,948) 1,418,776 Revenue unrelated to contracts with customers Other 9,222 (6) 70,145 (7) 3 — 79,370 Total revenue unrelated to contracts with customers 9,222 70,145 3 — 79,370 Operating revenue, net $ 1,032,292 $ 487,353 $ 119,449 $ (140,948) $ 1,498,146 (1) Includes fuel recovery revenue. (2) Amortization of intangible assets related to Cleco Power’s wholesale power supply agreements. (3) Includes $0.9 million of electric customer credits. (4) Includes $0.2 million of electric customer credits. (5) Includes interdepartmental rents and support services. This revenue is eliminated upon consolidation. (6) Represents realized gains associated with FTRs. (7) Includes $60.9 million in lease revenue related to the Cottonwood Sale Leaseback and $9.2 million of deferred lease revenue amortization. FOR THE YEAR ENDED DEC. 31, 2019 (THOUSANDS) CLECO POWER CLECO CAJUN OTHER ELIMINATIONS TOTAL Revenue from contracts with customers Retail revenue Residential (1) $ 415,242 $ — $ — $ — $ 415,242 Commercial (1) 289,197 — — — 289,197 Industrial (1) 149,711 — — — 149,711 Other retail (1) 15,046 — — — 15,046 Surcharge 22,132 — — — 22,132 Electric customer credits (35,880) — — — (35,880) Total retail revenue 855,448 — — — 855,448 Wholesale, net 226,978 (1) 374,635 (2) (9,680) (3) (1) 591,932 Transmission 50,874 (4) 51,315 (5) — (7,471) 94,718 Other 19,324 (6) — 2 — 19,326 Affiliate (7) 3,125 108 109,067 (112,300) — Total revenue from contracts with customers 1,155,749 426,058 99,389 (119,772) 1,561,424 Revenue unrelated to contracts with customers Other 12,621 (8) 65,560 (9) — — 78,181 Total revenue unrelated to contracts with customers 12,621 65,560 — — 78,181 Operating revenue, net $ 1,168,370 $ 491,618 $ 99,389 $ (119,772) $ 1,639,605 (1) Includes fuel recovery revenue. (2) Includes $0.8 million of electric customer credits. (3) Amortization of intangible assets related to Cleco Power’s wholesale power supply agreements. (4) Includes $2.6 million of electric customer credits. (5) Includes $0.7 million of electric customer credits. (6) Includes $16.1 million of other miscellaneous fee revenue and $3.2 million of Teche Unit 3 SSR revenue. (7) Includes interdepartmental rents and support services. This revenue is eliminated upon consolidation. (8) Includes realized gains associated with FTRs of $12.4 million and LCFC revenue of $0.2 million. (9) Includes $57.1 million in lease revenue related to the Cottonwood Sale Leaseback and $8.4 million of deferred lease revenue amortization. |
Regulatory Assets and Liabili_2
Regulatory Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Regulatory Assets and Liabilities [Line Items] | |
Schedule of Regulatory Assets | The following table summarizes Cleco’s net regulatory assets and liabilities: Cleco AT DEC. 31, (THOUSANDS) 2021 2020 Total Cleco Power regulatory assets, net $ 663,621 $ 275,469 2016 Merger adjustments (1) Fair value of long-term debt 112,150 119,553 Postretirement costs 13,424 15,411 Financing costs 7,248 7,592 Debt issuance costs 4,920 5,254 Total Cleco regulatory assets, net $ 801,363 $ 423,279 (1) Cleco regulatory assets include acquisition accounting adjustments as a result of the 2016 Merger. |
Schedule of Regulatory Liabilities | The following table summarizes Cleco’s net regulatory assets and liabilities: Cleco AT DEC. 31, (THOUSANDS) 2021 2020 Total Cleco Power regulatory assets, net $ 663,621 $ 275,469 2016 Merger adjustments (1) Fair value of long-term debt 112,150 119,553 Postretirement costs 13,424 15,411 Financing costs 7,248 7,592 Debt issuance costs 4,920 5,254 Total Cleco regulatory assets, net $ 801,363 $ 423,279 (1) Cleco regulatory assets include acquisition accounting adjustments as a result of the 2016 Merger. |
CLECO POWER | |
Regulatory Assets and Liabilities [Line Items] | |
Schedule of Regulatory Assets | The following table summarizes Cleco Power’s regulatory assets and liabilities: Cleco Power AT DEC. 31, REMAINING RECOVERY PERIOD (YRS.) (THOUSANDS) 2021 2020 Regulatory assets Acadia Unit 1 acquisition costs $ 1,913 $ 2,019 18 Accumulated deferred fuel (1) 56,826 28,194 Various (2) Affordability study 13,094 — 9.5 (3) AFUDC equity gross-up 66,574 69,670 Various AMI deferred revenue requirement 2,045 2,591 4 AROs (1)(7) 15,141 5,488 Bayou Vista to Segura transmission project deferred revenue requirement (7) 1,392 — Coughlin transaction costs 845 876 27.5 COVID-19 executive order 2,953 2,953 Deferred storm restoration costs - Hurricane Delta (7) 17,113 17,051 Deferred storm restoration costs - Hurricane Ida (7) 37,617 — Deferred storm restoration costs - Hurricane Laura (7) 54,282 54,406 Deferred storm restoration costs - Hurricane Zeta (7) 3,296 3,493 Deferred storm restoration costs - Winter Storms Uri & Viola (7) 1,912 — Dolet Hills Power Station closure costs (7) 145,844 48,982 Emergency declarations — 270 Energy efficiency 1,645 2,820 1 Financing costs (1) 6,826 7,184 Various (4) Interest costs 3,459 3,708 Various (3) Lignite Mine closure costs (7) 136,980 — Madison Unit 3 property taxes (7) 8,362 — Non-service cost of postretirement benefits 12,950 9,901 Various (3) Other 11,224 4,229 Various (2) Postretirement costs 117,773 165,437 Various (5) Production operations and maintenance expenses 11,058 4,058 Various (6) Rodemacher Unit 2 deferred costs (7) 6,931 1,333 St. Mary Clean Energy Center 6,089 3,479 3.5 Training costs 5,929 6,085 38 Tree trimming costs 9,092 11,807 3.5 Total regulatory assets 759,165 456,034 Regulatory liabilities AFUDC (7) — (4,218) Corporate franchise tax, net — (763) Deferred taxes, net (95,544) (175,584) Various (2) Total regulatory liabilities (95,544) (180,565) Total regulatory assets, net $ 663,621 $ 275,469 (1) Represents regulatory assets for past expenditures that were not earning a return on investment at December 31, 2021, and 2020, respectively. All other assets are earning a return on investment. (2) For more information related to the remaining recovery period, refer to the following disclosures for each specific regulatory asset or liability. (3) Amortized over the estimated lives of the respective assets. (4) Amortized over the terms of the related debt issuances. (5) Amortized over the average service life of the remaining plan participants. (6) Deferral is recovered over the following three (7) Currently not in a recovery period. |
Schedule of Regulatory Liabilities | The following table summarizes Cleco Power’s regulatory assets and liabilities: Cleco Power AT DEC. 31, REMAINING RECOVERY PERIOD (YRS.) (THOUSANDS) 2021 2020 Regulatory assets Acadia Unit 1 acquisition costs $ 1,913 $ 2,019 18 Accumulated deferred fuel (1) 56,826 28,194 Various (2) Affordability study 13,094 — 9.5 (3) AFUDC equity gross-up 66,574 69,670 Various AMI deferred revenue requirement 2,045 2,591 4 AROs (1)(7) 15,141 5,488 Bayou Vista to Segura transmission project deferred revenue requirement (7) 1,392 — Coughlin transaction costs 845 876 27.5 COVID-19 executive order 2,953 2,953 Deferred storm restoration costs - Hurricane Delta (7) 17,113 17,051 Deferred storm restoration costs - Hurricane Ida (7) 37,617 — Deferred storm restoration costs - Hurricane Laura (7) 54,282 54,406 Deferred storm restoration costs - Hurricane Zeta (7) 3,296 3,493 Deferred storm restoration costs - Winter Storms Uri & Viola (7) 1,912 — Dolet Hills Power Station closure costs (7) 145,844 48,982 Emergency declarations — 270 Energy efficiency 1,645 2,820 1 Financing costs (1) 6,826 7,184 Various (4) Interest costs 3,459 3,708 Various (3) Lignite Mine closure costs (7) 136,980 — Madison Unit 3 property taxes (7) 8,362 — Non-service cost of postretirement benefits 12,950 9,901 Various (3) Other 11,224 4,229 Various (2) Postretirement costs 117,773 165,437 Various (5) Production operations and maintenance expenses 11,058 4,058 Various (6) Rodemacher Unit 2 deferred costs (7) 6,931 1,333 St. Mary Clean Energy Center 6,089 3,479 3.5 Training costs 5,929 6,085 38 Tree trimming costs 9,092 11,807 3.5 Total regulatory assets 759,165 456,034 Regulatory liabilities AFUDC (7) — (4,218) Corporate franchise tax, net — (763) Deferred taxes, net (95,544) (175,584) Various (2) Total regulatory liabilities (95,544) (180,565) Total regulatory assets, net $ 663,621 $ 275,469 (1) Represents regulatory assets for past expenditures that were not earning a return on investment at December 31, 2021, and 2020, respectively. All other assets are earning a return on investment. (2) For more information related to the remaining recovery period, refer to the following disclosures for each specific regulatory asset or liability. (3) Amortized over the estimated lives of the respective assets. (4) Amortized over the terms of the related debt issuances. (5) Amortized over the average service life of the remaining plan participants. (6) Deferral is recovered over the following three (7) Currently not in a recovery period. |
Jointly Owned Generation Units
Jointly Owned Generation Units (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Jointly Owned Utility Plant Interests [Line Items] | |
Schedule of Jointly Owned Generation Units | At December 31, 2021, the investment in and accumulated depreciation for each generating unit on Cleco and Cleco Power’s Consolidated Balance Sheets were as follows: Cleco AT DEC. 31, 2021 (THOUSANDS, EXCEPT PERCENTAGES AND MW) RODEMACHER UNIT 2 BAYOU COVE BIG CAJUN II, UNIT 3 TOTAL Utility plant in service $ 83,675 $ 41,435 $ 17,490 $ 142,600 Accumulated depreciation $ 19,783 $ 6,809 $ 3,207 $ 29,799 Construction work in progress $ 400 $ — $ 474 $ 874 Ownership interest percentage 30 % 75 % 58 % Rated capacity (MW) 523 300 588 Ownership interest (MW) 157 225 341 |
CLECO POWER | |
Jointly Owned Utility Plant Interests [Line Items] | |
Schedule of Jointly Owned Generation Units | Cleco Power AT DEC. 31, 2021 (THOUSANDS, EXCEPT PERCENTAGES AND MW) RODEMACHER UNIT 2 Utility plant in service $ 157,855 Accumulated depreciation $ 93,963 Construction work in progress $ 400 Ownership interest percentage 30 % Rated capacity (MW) 523 Ownership interest (MW) 157 |
Fair Value Accounting and Fin_2
Fair Value Accounting and Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value [Line Items] | |
Schedule of 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 Consolidated Balance Sheets: Cleco AT DEC. 31, 2021 2020 (THOUSANDS) CARRYING FAIR VALUE CARRYING FAIR VALUE Long-term debt $ 3,482,405 $ 3,752,220 $ 3,230,500 $ 3,541,349 * The carrying value of long-term debt does not include deferred issuance costs of $13.2 million at December 31, 2021, and $13.4 million at December 31, 2020. |
Schedule of 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. These amounts are presented on a gross basis before consideration of amounts netted under master netting agreements and the application of collateral received or paid: Cleco FAIR VALUE MEASUREMENTS AT REPORTING DATE (THOUSANDS) AT DEC. 31, 2021 QUOTED SIGNIFICANT SIGNIFICANT AT DEC. 31, 2020 QUOTED SIGNIFICANT SIGNIFICANT Asset Description Money market funds $ 145,033 $ 145,033 $ — $ — $ 86,001 $ — $ 86,001 $ — FTRs 6,977 — — 6,977 4,805 — — 4,805 Natural gas derivatives 87,464 — 87,464 — 8,599 — 8,599 — Total assets $ 239,474 $ 145,033 $ 87,464 $ 6,977 $ 99,405 $ — $ 94,600 $ 4,805 Liability Description FTRs $ 834 $ — $ — $ 834 $ 1,625 $ — $ — $ 1,625 Natural gas derivatives — — — — 1,612 — 1,612 — Total liabilities $ 834 $ — $ — $ 834 $ 3,237 $ — $ 1,612 $ 1,625 |
Schedule of 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 YEAR ENDED DEC. 31, (THOUSANDS) 2021 2020 Beginning balance $ 3,180 $ 5,778 Unrealized gains * 2,567 187 Purchases 12,061 11,333 Settlements (11,665) (14,118) Ending balance $ 6,143 $ 3,180 * Cleco Power’s unrealized gains (losses) are reported through Accumulated deferred fuel on Cleco’s Consolidated Balance Sheet. Cleco Cajun’s unrealized gains (losses) are reported through Purchased power on Cleco’s Consolidated Statement of Income. |
Schedule of 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 for Cleco and Cleco Power as of December 31, 2021: Cleco FAIR VALUE VALUATION TECHNIQUE SIGNIFICANT FORWARD PRICE RANGE (THOUSANDS, EXCEPT DOLLAR PER MWh) Assets Liabilities Low High FTRs at December 31, 2021 $ 6,977 $ 834 RTO auction pricing FTR price - per MWh $ (3.94) $ 9.25 FTRs at December 31, 2020 $ 4,805 $ 1,625 RTO auction pricing FTR price - per MWh $ (3.49) $ 4.36 |
Schedule of Institutional Money Market Funds | The following tables present the money market funds in cash and cash equivalents and restricted cash and cash equivalents as recorded on Cleco and Cleco Power’s Consolidated Balance Sheets at December 31, 2021, and 2020: Cleco FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2021 2020 Cash and cash equivalents $ 145,011 $ 80,712 Current restricted cash and cash equivalents $ — $ 4,545 Non-current restricted cash and cash equivalents $ 22 $ 744 |
Offsetting Liabilities | Cleco and Cleco Power’s Consolidated Balance Sheets at December 31, 2021, and 2020: Cleco DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS AT DEC. 31, 2021 AT DEC. 31, 2020 GROSS AMOUNTS OFFSET GROSS AMOUNTS NOT OFFSET ON THE BALANCE SHEET (1) (THOUSANDS) BALANCE SHEET LINE ITEM GROSS ASSET (LIABILITY) CONTRACT NETTING NET ASSET (LIABILITY) ON THE BALANCE SHEET COLLATERAL NET AMOUNT NET ASSET (LIABILITY) ON THE BALANCE SHEET (2) Commodity-related contracts FTRs Current Energy risk management assets $ 6,977 $ — $ 6,977 $ — $ 6,977 $ 4,805 Current Energy risk management liabilities (834) — (834) — (834) (1,625) Natural gas derivatives Current Energy risk management assets 37,061 (559) 36,502 (15,000) 21,502 8,276 Non-current Energy risk management assets 50,962 — 50,962 — 50,962 323 Current Energy risk management liabilities (559) 559 — — — (828) Non-current Other deferred credits — — — — — (784) Commodity-related contracts, net $ 93,607 $ — $ 93,607 $ (15,000) $ 78,607 $ 10,167 (1) Represents letters of credit by counterparties. (2) There were no offsetting amounts on or off Cleco’s Consolidated Balance Sheet at December 31, 2020. |
Offsetting Assets | Cleco and Cleco Power’s Consolidated Balance Sheets at December 31, 2021, and 2020: Cleco DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS AT DEC. 31, 2021 AT DEC. 31, 2020 GROSS AMOUNTS OFFSET GROSS AMOUNTS NOT OFFSET ON THE BALANCE SHEET (1) (THOUSANDS) BALANCE SHEET LINE ITEM GROSS ASSET (LIABILITY) CONTRACT NETTING NET ASSET (LIABILITY) ON THE BALANCE SHEET COLLATERAL NET AMOUNT NET ASSET (LIABILITY) ON THE BALANCE SHEET (2) Commodity-related contracts FTRs Current Energy risk management assets $ 6,977 $ — $ 6,977 $ — $ 6,977 $ 4,805 Current Energy risk management liabilities (834) — (834) — (834) (1,625) Natural gas derivatives Current Energy risk management assets 37,061 (559) 36,502 (15,000) 21,502 8,276 Non-current Energy risk management assets 50,962 — 50,962 — 50,962 323 Current Energy risk management liabilities (559) 559 — — — (828) Non-current Other deferred credits — — — — — (784) Commodity-related contracts, net $ 93,607 $ — $ 93,607 $ (15,000) $ 78,607 $ 10,167 (1) Represents letters of credit by counterparties. (2) There were no offsetting amounts on or off Cleco’s Consolidated Balance Sheet at December 31, 2020. |
Schedule of Fair Value of Derivative Instruments as Recorded in Condensed Consolidated Balance Sheets | The following tables present the volume of commodity-related derivative contracts outstanding at December 31, 2021, and December 31, 2020, for Cleco and Cleco Power: Cleco TOTAL VOLUME OUTSTANDING (THOUSAND) UNIT OF MEASURE AT DEC. 31, 2021 AT DEC. 31, 2020 Commodity-related contracts FTRs MWh 14,055 15,269 Natural gas derivatives MMBtus 109,306 73,000 |
Schedule of 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 Consolidated Statements of Income for the years December 31, 2021, 2020, and 2019: Cleco AMOUNT OF GAIN/(LOSS) RECOGNIZED IN INCOME ON DERIVATIVES FOR THE YEAR ENDED DEC. 31, (THOUSANDS) DERIVATIVES LINE ITEM 2021 2020 2019 Commodity contracts FTRs (1) Electric operations $ 12,797 $ 9,213 $ 13,043 FTRs (1) Purchased power (6,237) (3,467) (15,685) Natural gas derivatives Fuel used for electric generation 134,144 (12,159) (5,172) Total $ 140,704 $ (6,413) $ (7,814) (1) For the years ended December 31, 2021, 2020, and 2019, unrealized gains (losses) associated with FTRs for Cleco Power of $2.8 million, $0.5 million and $(1.7) million, respectively, were reported through Accumulated deferred fuel on the balance sheet. |
CLECO POWER | |
Fair Value [Line Items] | |
Schedule of Carrying Value and Estimated Fair Value | Cleco Power AT DEC. 31, 2021 2020 (THOUSANDS) CARRYING FAIR VALUE CARRYING FAIR VALUE Long-term debt $ 1,820,254 $ 2,085,944 $ 1,494,947 $ 1,794,799 * The carrying value of long-term debt does not include deferred issuance costs of $7.9 million at December 31, 2021, and $7.0 million at December 31, 2020. |
Schedule of Fair Value of Financial Assets and Liabilities Measured On A Recurring Basis | Cleco Power FAIR VALUE MEASUREMENTS AT REPORTING DATE (THOUSANDS) AT DEC. 31, 2021 QUOTED SIGNIFICANT SIGNIFICANT AT DEC. 31, 2020 QUOTED SIGNIFICANT SIGNIFICANT Asset Description Money market funds $ 82,411 $ 82,411 $ — $ — $ 25,357 $ — $ 25,357 $ — FTRs 5,515 — — 5,515 4,337 — — 4,337 Total assets $ 87,926 $ 82,411 $ — $ 5,515 $ 29,694 $ — $ 25,357 $ 4,337 Liability Description FTRs $ 597 $ — $ — $ 597 $ 1,121 $ — $ — $ 1,121 Total liabilities $ 597 $ — $ — $ 597 $ 1,121 $ — $ — $ 1,121 |
Schedule of Net Changes in Net Fair Value of FTR Assets and Liabilities Classified as Level 3 | Cleco Power FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2021 2020 Beginning balance $ 3,216 $ 5,725 Unrealized gains * 2,828 450 Purchases 9,871 9,378 Settlements (10,997) (12,337) Ending balance $ 4,918 $ 3,216 * Unrealized gains (losses) are reported through Accumulated deferred fuel on Cleco Power's Consolidated Balance Sheets. |
Schedule of Significant Unobservable Inputs Used in Developing Fair Value of Level 3 Positions | Cleco Power FAIR VALUE VALUATION TECHNIQUE SIGNIFICANT FORWARD PRICE RANGE (THOUSANDS, EXCEPT DOLLAR PER MWh) Assets Liabilities Low High FTRs at December 31, 2021 $ 5,515 $ 597 RTO auction pricing FTR price - per MWh $ (4.91) $ 9.25 FTRs at December 31, 2020 $ 4,337 $ 1,121 RTO auction pricing FTR price - per MWh $ (3.34) $ 4.36 |
Schedule of Institutional Money Market Funds | Cleco Power FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2021 2020 Cash and cash equivalents $ 82,411 $ 20,812 Current restricted cash and cash equivalents $ — $ 4,545 |
Schedule of 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 DEC. 31, 2021 AT DEC. 31, 2020 Commodity-related contracts FTRs: Current Energy risk management assets $ 5,515 $ 4,337 Current Energy risk management liabilities (597) (1,121) Commodity-related contracts, net $ 4,918 $ 3,216 Cleco Power TOTAL VOLUME OUTSTANDING (THOUSAND) UNIT OF MEASURE AT DEC. 31, 2021 AT DEC. 31, 2020 Commodity-related contracts FTRs MWh 8,899 9,521 |
Schedule of Amount of Gain (Loss) Recognized in Income on Derivatives | Cleco Power AMOUNT OF GAIN/(LOSS) RECOGNIZED IN INCOME ON DERIVATIVES FOR THE YEAR ENDED DEC. 31, (THOUSANDS) DERIVATIVES LINE ITEM 2021 2020 2019 Commodity contracts FTRs (1) Electric operations $ 12,797 $ 9,213 $ 13,047 FTRs (1) Purchased power (10,360) (6,803) (6,066) Total $ 2,437 $ 2,410 $ 6,981 (1) For the years ended December 31, 2021, 2020, and 2019, unrealized gains (losses) associated with FTRs of $2.8 million, $0.5 million, and $(0.9) million, respectively, were reported through Accumulated deferred fuel on the balance sheet. |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Instrument [Line Items] | |
Schedule of Total Indebtedness | Cleco’s total long-term indebtedness as of December 31, 2021, and 2020 was as follows: Cleco AT DEC. 31, (THOUSANDS) 2021 2020 Total Cleco Power long-term debt and finance leases, net $ 1,800,854 $ 1,502,257 Cleco Holdings’ long-term debt, net Senior notes, 3.250%, due 2023 165,000 165,000 Senior notes, 3.743%, due 2026 535,000 535,000 Senior notes, 3.375%, due 2029 300,000 300,000 Senior notes, 4.973%, due 2046 350,000 350,000 Bank term loan, variable rate, due 2024 200,000 266,000 Long-term debt due within one year (67,700) (66,000) Unamortized debt issuance costs (1) (5,271) (6,423) Fair value adjustment 112,150 119,553 Total Cleco long-term debt and finance leases, net $ 3,390,033 $ 3,165,387 (1) For December 31, 2021, and 2020, this amount includes unamortized debt issuance costs for Cleco Holdings of $10.2 million and $11.7 million, respectively, partially offset by deferred debt issuance costs eliminated as a result of the 2016 Merger of $4.9 million and $5.3 million, respectively. For more information, see Note 6 — “Regulatory Assets and Liabilities — Cleco Holdings’ 2016 Merger Adjustments.” |
Schedule of Future Amounts Payable Under Long-Term Debt Agreements | The principal amounts payable under long-term debt agreements for each year through 2026 and thereafter are as follows: (THOUSANDS) CLECO POWER CLECO For the year ending Dec. 31, 2022 $ 25,000 $ 25,000 2023 $ 425,000 $ 590,000 2024 $ 175,000 $ 375,000 2025 (1) $ 75,000 $ 75,000 2026 $ 130,000 $ 665,000 Thereafter $ 995,000 $ 1,645,000 (1) Does not include Series A GO Zone bonds that have a maturity date of December 2038 but a mandatory tender in May 2025. (THOUSANDS) For the year ending Dec. 31, 2019 $ 66,700 2020 $ 133,300 2021 $ 200,000 2022 $ 267,700 2023 $ 333,300 2024 $ 400,000 |
Schedule of Principal Amounts Payable Under Finance Lease Agreement | 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, 2021: (THOUSANDS) Years ending Dec. 31, 2022 $ 2,203 2023 2,203 2024 2,203 2025 2,203 2026 2,203 Thereafter 13,269 Total minimum lease payments 24,284 Less: amount representing interest 9,722 Present value of net minimum finance lease payments $ 14,562 Current liabilities $ 755 Non-current liabilities $ 13,807 The principal amounts payable under the finance lease agreement for each year through 2026 and thereafter are as follows: (THOUSANDS) CLECO POWER CLECO For the year ending Dec. 31, 2022 $ 755 $ 755 2023 $ 836 $ 836 2024 $ 925 $ 925 2025 $ 1,023 $ 1,023 2026 $ 1,133 $ 1,133 Thereafter $ 9,890 $ 9,890 |
CLECO POWER | |
Debt Instrument [Line Items] | |
Schedule of Total Indebtedness | Cleco Power’s total long-term indebtedness as of December 31, 2021, and 2020 was as follows: Cleco Power AT DEC. 31, (THOUSANDS) 2021 2020 Bonds Senior notes, 2.94%, due 2022 $ 25,000 $ 25,000 Senior notes, 3.08%, due 2023 100,000 100,000 Senior notes, 3.17%, due 2024 50,000 50,000 Senior notes, 3.68%, due 2025 75,000 75,000 Senior notes, 3.47%, due 2026 130,000 130,000 Senior notes, 4.33%, due 2027 50,000 50,000 Senior notes, 3.57%, due 2028 200,000 200,000 Senior notes, 6.50%, due 2035 295,000 295,000 Senior notes, 6.00%, due 2040 250,000 250,000 Senior notes, 5.12%, due 2041 100,000 100,000 Senior notes, floating rate, due 2023 325,000 — Series A GO Zone bonds, 2.50%, due 2038, mandatory tender in 2025 50,000 50,000 Series B GO Zone bonds, 4.25%, due 2038 50,000 50,000 Total bonds 1,700,000 1,375,000 Bank term loan, variable rate, due 2024 125,000 125,000 Finance leases Barge lease obligations 14,562 15,244 Gross amount of long-term debt and finance leases 1,839,562 1,515,244 Long-term debt due within one year (25,000) — Finance leases classified as long-term debt due within one year (755) (682) Unamortized debt discount (4,746) (5,053) Unamortized debt issuance costs (8,207) (7,252) Total long-term debt and finance leases, net $ 1,800,854 $ 1,502,257 |
Pension Plan and Employee Ben_2
Pension Plan and Employee Benefits (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |
Schedule of Reconciliation of Benefit Obligations, Plan Assets and Funded Status of Pension Plans | The employee pension plan and Other Benefits plan obligation, plan assets, and funded status at December 31, 2021, and 2020 are presented in the following table: PENSION BENEFITS OTHER BENEFITS FOR THE YEAR ENDED DEC. 31, FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2021 2020 2021 2020 Change in benefit obligation Benefit obligation at beginning of period $ 686,384 $ 610,323 $ 56,331 $ 52,722 Service cost 10,516 9,820 2,425 2,153 Interest cost 18,668 20,816 1,283 1,651 Plan participants’ contributions — — — 1,289 Actuarial (gain) loss (9,823) 71,708 (81) 4,221 Expenses paid (3,306) (2,661) — — Benefits paid (25,292) (23,622) (4,701) (5,705) Special/contractual termination benefits 3,270 — — — Benefit obligation at end of period 680,417 686,384 55,257 56,331 Change in plan assets Fair value of plan assets at beginning of period 516,120 460,097 — — Actual return on plan assets 39,905 66,557 — — Employer contributions — 15,750 — — Expenses paid (3,306) (2,662) — — Benefits paid (25,292) (23,622) — — Fair value of plan assets at end of period 527,427 516,120 — — Unfunded status $ (152,990) $ (170,264) $ (55,257) $ (56,331) SERP’s funded status at December 31, 2021, and 2020 is presented in the following table: SERP BENEFITS FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2021 2020 Change in benefit obligation Benefit obligation at beginning of period $ 97,225 $ 89,128 Service cost 232 399 Interest cost 2,538 2,932 Actuarial (gain) loss (1,932) 9,621 Benefits paid (4,884) (4,590) Plan amendments — (265) Benefit obligation at end of period $ 93,179 $ 97,225 |
Schedule of Accumulated Benefit Obligation | The employee pension plan accumulated benefit obligation at December 31, 2021, and 2020 is presented in the following table: PENSION BENEFITS AT DEC. 31, (THOUSANDS) 2021 2020 Accumulated benefit obligation $ 640,490 $ 636,199 SERP’s accumulated benefit obligation at December 31, 2021, and 2020 is presented in the following table: SERP BENEFITS AT DEC. 31, (THOUSANDS) 2021 2020 Accumulated benefit obligation $ 93,179 $ 97,225 |
Schedule of Amounts Recognized in Other Comprehensive Income | The following table presents the net actuarial gains/losses and prior service costs/credits included in other comprehensive income for Other Benefits and in regulatory assets for pension related to current year gains and losses as a result of being included in net periodic benefit costs for the employee pension plan and Other Benefits plan for December 31, 2021, and 2020: PENSION BENEFITS OTHER BENEFITS FOR THE YEAR ENDED DEC. 31, FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2021 2020 2021 2020 Net actuarial (gain) loss occurring during period $ (26,925) $ 30,126 $ (81) $ 4,221 Net actuarial loss amortized during period $ 20,739 $ 16,292 $ 1,523 $ 1,389 Prior service credit amortized during period $ — $ (60) $ — $ — The following table presents net actuarial gains/losses and prior service costs/credits included in other comprehensive income or regulatory assets related to current year gains and losses as a result of being amortized as a component of net periodic benefit costs for SERP for December 31, 2021, and 2020: SERP BENEFITS FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2021 2020 Net actuarial (gain) loss occurring during year $ (1,932) $ 9,621 Net actuarial loss amortized during year $ 1,228 $ 3,185 Prior service credit amortized during year $ (215) $ (215) |
Schedule of Amounts Recognized in Accumulated Other Comprehensive Income | The following table presents net actuarial gains/losses in accumulated other comprehensive income for Other Benefits and in regulatory assets for pension that have not been recognized as components of net periodic benefit costs for the employee pension plan and Other Benefits plans at December 31, 2021, and 2020: PENSION BENEFITS OTHER BENEFITS AT DEC. 31, AT DEC. 31, (THOUSANDS) 2021 2020 2021 2020 Net actuarial loss $ 117,773 $ 165,437 $ 22,785 $ 21,342 The following table presents net actuarial losses and prior service credit in accumulated other comprehensive income and regulatory assets that have not been recognized as components of net periodic benefit costs for SERP at December 31, 2021, and 2020: SERP BENEFITS AT DEC. 31 (THOUSANDS) 2021 2020 Net actuarial loss $ 31,526 $ 34,825 Prior service credit $ (1,514) $ (1,728) |
Schedule of Components of Net Periodic Pension and Other Benefit Costs | The components of net periodic pension and Other Benefits costs for 2021, 2020, and 2019 are as follows: PENSION BENEFITS OTHER BENEFITS FOR THE YEAR ENDED DEC. 31, FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2021 2020 2019 2021 2020 2019 Components of periodic benefit costs Service cost $ 10,516 $ 9,820 $ 8,414 $ 2,425 $ 2,153 $ 1,191 Interest cost 18,668 20,816 22,485 1,283 1,651 1,646 Expected return on plan assets (22,801) (24,974) (26,502) — — — Amortizations Prior service credit — (60) (71) — — — Net loss 20,738 16,292 7,849 1,523 1,389 21 Net periodic benefit cost $ 27,121 $ 21,894 $ 12,175 $ 5,231 $ 5,193 $ 2,858 Special/contractual termination benefits $ 3,270 $ — $ — $ — $ — $ — Total benefit cost $ 30,391 $ 21,894 $ 12,175 $ 5,231 $ 5,193 $ 2,858 SERP BENEFITS FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2021 2020 2019 Components of periodic benefit costs Service cost $ 232 $ 399 $ 330 Interest cost 2,538 2,932 3,326 Amortizations Prior service credit (215) (215) (160) Net loss 1,228 3,186 1,544 Net periodic benefit cost $ 3,783 $ 6,302 $ 5,040 |
Schedule of Amounts Recognized in Balance Sheet | The current and non-current portions of the Other Benefits liability for Cleco and Cleco Power at December 31, 2021, and 2020 are as follows: Cleco AT DEC. 31, (THOUSANDS) 2021 2020 Current $ 5,181 $ 4,463 Non-current $ 50,093 $ 51,868 Cleco AT DEC. 31, (THOUSANDS) 2021 2020 Current $ 4,654 $ 4,703 Non-current $ 88,523 $ 92,522 |
Schedule of Weighted-Average Assumptions Used to Determine Benefit Obligation and Net Periodic Costs | The assumptions used to determine the benefit obligation and the periodic costs are as follows: PENSION BENEFITS OTHER BENEFITS AT DEC. 31, AT DEC. 31, 2021 2020 2021 2020 Weighted-average assumptions used to determine the benefit obligation Discount rate 2.98 % 2.74 % 2.82 % 2.39 % Rate of compensation increase 2.73 % 2.75 % N/A N/A PENSION BENEFITS OTHER BENEFITS FOR THE YEAR ENDED DEC. 31, FOR THE YEAR ENDED DEC. 31, 2021 2020 2019 2021 2020 2019 Weighted-average assumptions used to determine the net benefit cost Discount rate 2.74 % 3.43 % 4.35 % 2.39 % 3.25 % 4.16 % Expected return on plan assets 5.00 % 5.91 % 6.55 % N/A N/A N/A Rate of compensation increase 2.71 % 2.75 % 2.81 % N/A N/A N/A SERP BENEFITS AT DEC. 31, 2021 2020 Weighted-average assumptions used to determine the benefit obligation Discount rate 2.95 % 2.64 % Rate of compensation increase N/A N/A SERP BENEFITS 2021 2020 2019 Weighted-average assumptions used to determine the net benefit cost Discount rate 2.64 % 3.37 % 4.34 % Rate of compensation increase N/A N/A 5.00 % |
Schedule of Fair Value Allocation of Pension Plan | The following tables disclose the pension plan’s fair value of financial assets measured on a recurring basis: (THOUSANDS) AT DEC. 31, 2021 QUOTED PRICES SIGNIFICANT SIGNIFICANT Asset Description Cash equivalents $ 7,433 $ — $ 7,433 $ — Government securities 75,815 — 75,815 — Mutual funds Domestic 106,694 106,694 — — International 56,169 56,169 — — Real estate funds 39,091 — — 39,091 Corporate debt 166,435 — 166,435 — Total $ 451,637 $ 162,863 $ 249,683 $ 39,091 Investments measured at net asset value* 73,771 Interest accrual 2,019 Total net assets $ 527,427 *Investments measured at net asset value consist of Common/collective trust. (THOUSANDS) AT DEC. 31, 2020 QUOTED PRICES SIGNIFICANT SIGNIFICANT Asset Description Cash equivalents $ 19,567 $ — $ 19,567 $ — Government securities 26,863 — 26,863 — Mutual funds Domestic 107,055 107,055 — — International 60,104 60,104 — — Real estate funds 35,962 — — 35,962 Corporate debt 192,261 — 192,261 — Total $ 441,812 $ 167,159 $ 238,691 $ 35,962 Investments measured at net asset value* 72,044 Interest accrual 2,264 Total net assets $ 516,120 *Investments measured at net asset value consist of Common/collective trust. The following chart shows the dynamic asset allocation based on the funded ratio at December 31, 2021: PERCENT OF TOTAL PLAN ASSETS AT DEC. 31, 2021 MINIMUM TARGET MAXIMUM Return-seeking Domestic equity 19 % International equity 20 % Multi-asset credit 6 % Real estate 5 % Total return-seeking 45 % 50 % 55 % Liability hedging* 45 % 50 % 55 % *Liability hedging has no target subcategories. |
Schedule of Pension Plan Unobservable Input Reconciliation | The following is a reconciliation of the beginning and ending balances of the pension plan’s real estate funds measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the years ended December 31, 2021, and 2020: (THOUSANDS) Balance, Dec. 31, 2019 $ 18,017 Realized gains 251 Unrealized losses (1,603) Purchases 20,893 Sales (1,596) Balance, Dec. 31, 2020 $ 35,962 Realized gains 503 Unrealized gains 3,524 Purchases 1,865 Sales (2,763) Balance, Dec. 31, 2021 $ 39,091 |
Schedule of Projected Benefit Payments and Projected Receipts | The projected benefit payments for the employee pension plan and Other Benefits plan for each year through 2026 and the next five years thereafter are listed in the following table: (THOUSANDS) PENSION BENEFITS OTHER For the year ending Dec. 31, 2022 $ 29,239 $ 5,253 2023 $ 29,833 $ 5,079 2024 $ 30,566 $ 4,902 2025 $ 31,578 $ 4,759 2026 $ 32,339 $ 4,682 Next five years $ 170,382 $ 21,553 The projected benefit payments for SERP for each year through 2026 and the next five years thereafter are shown in the following table: (THOUSANDS) 2022 2023 2024 2025 2026 NEXT FIVE SERP $ 4,722 $ 4,840 $ 4,908 $ 5,054 $ 5,175 $ 25,391 |
Schedule of 401(k) Plan Expense | Cleco’s 401(k) Plan expense for the years ended December 31, 2021, 2020, and 2019 was as follows: FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2021 2020 2019 401(k) Plan expense $ 9,366 $ 9,685 $ 7,861 FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2021 2020 2019 401(k) Plan expense $ 4,350 $ 4,424 $ 3,408 |
CLECO POWER | |
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |
Schedule of Amounts Recognized in Balance Sheet | Cleco Power AT DEC. 31, (THOUSANDS) 2021 2020 Current $ 4,432 $ 3,865 Non-current $ 39,315 $ 40,734 Cleco Power AT DEC. 31, (THOUSANDS) 2021 2020 Current $ 679 $ 711 Non-current $ 12,909 $ 19,828 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Taxes [Line Items] | |
Schedule of Effective Income Tax Rate Reconciliation | The differences are as follows: FOR THE YEAR ENDED DEC. 31, (THOUSANDS, EXCEPT PERCENTAGES) 2021 2020 2019 Income before tax $ 208,077 $ 158,018 $ 195,830 Statutory rate 21.0 % 21.0 % 21.0 % Tax expense at federal statutory rate $ 43,696 $ 33,184 $ 41,124 Increase (decrease) Plant differences, including AFUDC flowthrough (356) 5,100 (4,687) State income taxes, net of federal benefit 9,619 7,190 9,565 Return to accrual adjustment (3,862) 7,218 (3,963) Amortization of excess ADIT (37,254) (16,667) — Other, net 1,268 (307) 1,126 Total tax expense $ 13,111 $ 35,718 $ 43,165 Effective rate 6.3 % 22.6 % 22.0 % |
Schedule of Current and Deferred Income Tax Expense | Information about current and deferred income tax expense is as follows: FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2021 2020 2019 Current federal income tax (benefit) expense $ (2) $ (2,634) $ 1,600 Deferred federal income tax (benefit) expense (9,581) 21,865 37,963 Amortization of accumulated deferred investment tax credits (142) (159) (191) Total federal income tax (benefit) expense $ (9,725) $ 19,072 $ 39,372 Current state income tax (benefit) expense (699) 2,636 1,675 Deferred state income tax expense 23,535 14,010 2,118 Total state income tax expense $ 22,836 $ 16,646 $ 3,793 Total federal and state income tax expense $ 13,111 $ 35,718 $ 43,165 Items charged or credited directly to member’s equity Federal deferred 514 (2,202) (5,130) State deferred (120) (720) (1,678) Total tax expense (benefit) from items charged directly to member’s equity $ 394 $ (2,922) $ (6,808) Total federal and state income tax expense $ 13,505 $ 32,796 $ 36,357 |
Schedule of Deferred Tax Assets and Liabilities | The balance of accumulated deferred federal and state income tax assets and liabilities at December 31, 2021, and 2020 was comprised of the following: AT DEC. 31, (THOUSANDS) 2021 2020 Depreciation and property basis differences $ (885,747) $ (865,807) Net operating loss carryforward 195,488 109,819 NMTC 92,364 92,364 Fuel costs (38,070) (8,906) Other comprehensive income 12,750 13,016 Regulated operations regulatory liability, net (93,990) 47,060 Postretirement benefits 34,683 25,775 Merger fair value adjustments (49,806) (51,073) Other (23,436) (23,624) Accumulated deferred federal and state income taxes, net $ (755,764) $ (661,376) |
CLECO POWER | |
Income Taxes [Line Items] | |
Schedule of Effective Income Tax Rate Reconciliation | The differences are as follows: FOR THE YEAR ENDED DEC. 31, (THOUSANDS, EXCEPT PERCENTAGES) 2021 2020 2019 Income before tax $ 124,735 $ 123,454 $ 193,714 Statutory rate 21.0 % 21.0 % 21.0 % Tax expense at federal statutory rate $ 26,194 $ 25,925 $ 40,680 Increase (decrease) Plant differences, including AFUDC flowthrough (356) 5,100 (4,687) State income taxes, net of federal benefit 6,343 6,303 11,683 Return to accrual adjustment (3,831) 7,082 (2,008) Amortization of excess ADIT (37,254) (16,667) — Other, net (449) (944) (216) Total taxes $ (9,353) $ 26,799 $ 45,452 Effective rate (7.5) % 21.7 % 23.5 % |
Schedule of Current and Deferred Income Tax Expense | Information about current and deferred income tax expense is as follows: FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2021 2020 2019 Current federal income tax expense $ — $ 15,724 $ 14,781 Deferred federal income tax (benefit) expense (23,071) (5,033) 22,443 Amortization of accumulated deferred investment tax credits (142) (159) (191) Total federal income tax (benefit) expense $ (23,213) $ 10,532 $ 37,033 Current state income tax expense — 5,069 9,063 Deferred state income tax expense (benefit) 13,860 11,198 (644) Total state income tax expense $ 13,860 $ 16,267 $ 8,419 Total federal and state income tax (benefit) expense $ (9,353) $ 26,799 $ 45,452 Items charged or credited directly to members’ equity Federal deferred 1,714 (576) (2,500) State deferred 338 (189) (818) Total tax expense (benefit) from items charged directly to member’s equity $ 2,052 $ (765) $ (3,318) Total federal and state income tax (benefit) expense $ (7,301) $ 26,034 $ 42,134 |
Schedule of Deferred Tax Assets and Liabilities | The balance of accumulated deferred federal and state income tax assets and liabilities at December 31, 2021, and 2020 was comprised of the following: AT DEC. 31, (THOUSANDS) 2021 2020 Depreciation and property basis differences $ (744,594) $ (725,034) Net operating loss carryforward 125,392 35,442 Fuel costs (14,552) (7,072) Other comprehensive income 6,222 8,274 Regulated operations regulatory liability, net (93,990) 47,060 Postretirement benefits 20,649 11,951 Other (6,606) (5,219) Accumulated deferred federal and state income taxes, net $ (707,479) $ (634,598) |
Disclosures about Segments (Tab
Disclosures about Segments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | SEGMENT INFORMATION FOR THE YEAR ENDED DEC. 31, 2021 (THOUSANDS) CLECO POWER CLECO CAJUN TOTAL SEGMENTS Revenue Electric operations $ 1,202,249 $ 398,226 $ 1,600,475 Other operations 74,625 128,749 203,374 Affiliate revenue 5,641 — 5,641 Electric customer credits (40,878) 244 (40,634) Operating revenue, net $ 1,241,637 $ 527,219 $ 1,768,856 Net income $ 134,088 $ 115,632 $ 249,720 Add: Depreciation and amortization 173,498 56,438 (1) 229,936 Less: Interest income 3,294 15 3,309 Add: Interest charges 73,090 803 73,893 Add: Federal and state income tax (benefit) expense (9,353) 42,283 32,930 EBITDA $ 368,029 $ 215,141 $ 583,170 Additions to property, plant, and equipment $ 300,957 $ 9,081 $ 310,038 Equity investment in investee $ 2,072 $ — $ 2,072 Goodwill $ 1,490,797 $ — $ 1,490,797 Total segment assets $ 6,620,298 $ 1,104,090 $ 7,724,388 (1) Includes $13.5 million of amortization of intangible assets and liabilities related to wholesale power supply agreements and $(9.2) million of deferred lease revenue amortization as a result of the Cleco Cajun Transaction. FOR THE YEAR ENDED DEC. 31, 2021 (THOUSANDS) TOTAL SEGMENTS OTHER ELIMINATIONS TOTAL Revenue Electric operations $ 1,600,475 $ (9,680) $ 1 $ 1,590,796 Other operations 203,374 8 (7,615) 195,767 Affiliate revenue 5,641 113,623 (119,264) — Electric customer credits (40,634) — — (40,634) Operating revenue, net $ 1,768,856 $ 103,951 $ (126,878) $ 1,745,929 Depreciation and amortization $ 229,936 $ 21,495 (1) $ — $ 251,431 Interest income $ 3,309 $ 125 $ (122) $ 3,312 Interest charges $ 73,893 $ 60,564 $ (121) $ 134,336 Federal and state income tax expense (benefit) $ 32,930 $ (19,819) $ — $ 13,111 Net income (loss) $ 249,720 $ (54,754) $ — $ 194,966 Additions to property, plant, and equipment $ 310,038 $ 1,103 $ — $ 311,141 Equity investment in investee $ 2,072 $ (46,901) $ 46,901 $ 2,072 Goodwill $ 1,490,797 $ — $ — $ 1,490,797 Total segment assets $ 7,724,388 $ 619,101 $ (218,471) $ 8,125,018 (1) Includes $9.7 million of amortization of intangible assets related to Cleco Power’s wholesale power supply agreements as a result of the 2016 Merger. FOR THE YEAR ENDED DEC. 31, 2020 (THOUSANDS) CLECO POWER CLECO CAJUN TOTAL SEGMENTS Revenue Electric operations $ 1,015,018 $ 365,555 $ 1,380,573 Other operations 65,237 121,747 186,984 Affiliate revenue 5,156 204 5,360 Electric customer credits (53,119) (153) (53,272) Operating revenue, net $ 1,032,292 $ 487,353 $ 1,519,645 Net income $ 96,655 $ 89,492 $ 186,147 Add: Depreciation and amortization 166,987 47,183 (1) 214,170 Less: Interest income 3,362 273 3,635 Add: Interest charges 73,985 (750) 73,235 Add: Federal and state income tax expense 26,799 29,080 55,879 EBITDA $ 361,064 $ 164,732 $ 525,796 Additions to property, plant, and equipment $ 377,044 $ 8,920 $ 385,964 Equity investment in investee $ 9,072 $ — $ 9,072 Goodwill $ 1,490,797 $ — $ 1,490,797 Total segment assets $ 6,256,944 $ 1,029,812 $ 7,286,756 (1) Includes $12.4 million of amortization of intangible assets and liabilities related to wholesale power supply agreements and $(9.2) million of deferred lease revenue amortization as a result of the Cleco Cajun Transaction. FOR THE YEAR ENDED DEC. 31, 2020 (THOUSANDS) TOTAL SEGMENTS OTHER ELIMINATIONS TOTAL SEGMENTS Revenue Electric operations $ 1,380,573 $ (9,680) $ — $ 1,370,893 Other operations 186,984 3 (6,463) 180,524 Affiliate revenue 5,360 129,126 (134,486) — Electric customer credits (53,272) — 1 (53,271) Operating revenue, net $ 1,519,645 $ 119,449 $ (140,948) $ 1,498,146 Depreciation and amortization $ 214,170 $ 18,059 (1) $ — $ 232,229 Interest income $ 3,635 $ 412 $ (99) $ 3,948 Interest charges $ 73,235 $ 64,728 $ (99) $ 137,864 Federal and state income tax expense (benefit) $ 55,879 $ (20,160) $ (1) $ 35,718 Net income (loss) $ 186,147 $ (63,848) $ 1 $ 122,300 Additions to property, plant, and equipment $ 385,964 $ 3,051 $ — $ 389,015 Equity investment in investee $ 9,072 $ — $ — $ 9,072 Goodwill $ 1,490,797 $ — $ — $ 1,490,797 Total segment assets $ 7,286,756 $ 595,217 $ (156,404) $ 7,725,569 (1) Includes $9.7 million of amortization of intangible assets related to Cleco Power’s wholesale power supply agreements as a result of the 2016 Merger. FOR THE YEAR ENDED DEC. 31, 2019 (THOUSANDS) CLECO POWER CLECO CAJUN TOTAL SEGMENTS Revenue Electric operations $ 1,130,928 $ 375,489 $ 1,506,417 Other operations 72,833 117,468 190,301 Affiliate revenue 3,125 108 3,233 Electric customer credits (38,516) (1,447) (39,963) Operating revenue, net $ 1,168,370 $ 491,618 $ 1,659,988 Net income $ 148,262 $ 69,411 $ 217,673 Add: Depreciation and amortization 172,471 38,465 (1) 210,936 Less: Interest income 4,744 987 5,731 Add: Interest charges 71,279 35 71,314 Add: Federal and state income tax expense 45,452 22,479 67,931 EBITDA $ 432,720 $ 129,403 $ 562,123 Additions to property, plant, and equipment $ 298,565 $ 9,174 $ 307,739 Equity investment in investee $ 17,072 $ — $ 17,072 Goodwill $ 1,490,797 $ — $ 1,490,797 Total segment assets $ 5,967,327 $ 1,011,591 $ 6,978,918 (1) Includes $11.4 million of amortization of intangible assets and liabilities related to wholesale power supply agreements and $(8.4) million of deferred lease revenue amortization as a result of the Cleco Cajun Transaction. FOR THE YEAR ENDED DEC. 31, 2019 (THOUSANDS) TOTAL SEGMENTS OTHER ELIMINATIONS TOTAL Revenue Electric operations $ 1,506,417 $ (9,680) $ (1) $ 1,496,736 Other operations 190,301 2 (7,471) 182,832 Affiliate revenue 3,233 109,067 (112,300) — Electric customer credits (39,963) — — (39,963) Operating revenue, net $ 1,659,988 $ 99,389 $ (119,772) $ 1,639,605 Depreciation and amortization $ 210,936 $ 17,985 (1) $ — $ 228,921 Interest income $ 5,731 $ 974 $ (615) $ 6,090 Interest charges $ 71,314 $ 70,611 $ (616) $ 141,309 Federal and state income tax expense (benefit) $ 67,931 $ (24,766) $ — $ 43,165 Net income (loss) $ 217,673 $ (65,009) $ 1 $ 152,665 Additions to property, plant, and equipment $ 307,739 $ 655 $ — $ 308,394 Equity investment in investee $ 17,072 $ — $ — $ 17,072 Goodwill $ 1,490,797 $ — $ — $ 1,490,797 Total segment assets $ 6,978,918 $ 546,096 $ (48,716) $ 7,476,298 (1) Includes $9.7 million of amortization of intangible assets related to Cleco Power’s wholesale power supply agreements as a result of the 2016 Merger. (THOUSANDS) 2021 2020 2019 Net income $ 194,966 $ 122,300 $ 152,665 Add: Depreciation and amortization 251,431 232,229 228,921 Less: Interest income 3,312 3,948 6,090 Add: Interest charges 134,336 137,864 141,309 Add: Federal and state income tax expense 13,111 35,718 43,165 (Less) add: Other corporate costs and noncash items (1) (7,362) 1,633 2,153 Total segment EBITDA $ 583,170 $ 525,796 $ 562,123 (1) Adjustments made for Other and Elimination totals not allocated to total segment EBITDA. |
Regulation and Rates (Tables)
Regulation and Rates (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Regulated Operations [Abstract] | |
Schedule Of Rate Refund Liability | Provision for rate refund on Cleco and Cleco Power’s Consolidated Balance Sheets consisted primarily of the following: (THOUSANDS) AT DEC. 31, 2021 AT DEC. 31, 2020 Cleco Katrina/Rita storm recovery charges $ 1,611 $ 1,617 FERC audit $ — $ 1,912 FRP $ 1,229 $ 1,786 Site-specific industrial customer $ 833 $ 710 TCJA $ 2,057 $ 2,057 Transmission ROE $ — $ 595 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) - CLECO POWER | 12 Months Ended |
Dec. 31, 2021 | |
Variable Interest Entity [Line Items] | |
Schedule of Equity Method Investments | The following table presents the components of Cleco Power’s equity investment in Oxbow: AT DEC. 31, INCEPTION TO DATE (THOUSANDS) 2021 2020 Purchase price $ 12,873 $ 12,873 Cash contributions 6,399 6,399 Dividend received (17,200) (10,200) Total equity investment in investee $ 2,072 $ 9,072 The following tables contain summarized financial information for Oxbow: AT DEC. 31, (THOUSANDS) 2021 2020 Current assets $ 6,979 $ 16,805 Property, plant, and equipment, net 3,798 4,910 Other assets — 3,360 Total assets $ 10,777 $ 25,075 Current liabilities $ 393 $ 369 Other liabilities 6,239 6,561 Partners’ capital 4,145 18,145 Total liabilities and partners’ capital $ 10,777 $ 25,075 FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2021 2020 2019 Operating revenue $ 5,155 $ 34,827 $ 8,886 Operating expenses 5,155 34,827 8,886 Income before taxes $ — $ — $ — |
Schedule of Comparison of Investee's Assets and Liabilities with Maximum Exposure to Loss | The following table compares the carrying amount of Oxbow’s assets and liabilities with Cleco Power’s maximum exposure to loss related to its investment in Oxbow: AT DEC. 31, (THOUSANDS) 2021 2020 Oxbow’s net assets/liabilities $ 4,145 $ 18,145 Cleco Power’s 50% equity $ 2,072 $ 9,072 Cleco Power’s maximum exposure to loss $ 2,072 $ 9,072 |
Litigation, Other Commitments_2
Litigation, Other Commitments and Contingencies, and Disclosures about Guarantees (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Payments under Long-Term Purchase Obligations | The aggregate amount of payments required under such obligations at December 31, 2021, is as follows: (THOUSANDS) CLECO POWER CLECO For the year ending Dec. 31, 2022 $ 38,075 $ 70,974 2023 18,872 47,940 2024 10,914 11,565 2025 9,090 9,689 2026 4,922 5,279 Thereafter 5,342 5,726 Total long-term purchase obligations $ 87,215 $ 151,173 |
Schedule of Change in Asset Retirement Obligation | The following tables summarize the net changes in the ARO for Cleco and Cleco Power: (THOUSANDS) CLECO CAJUN CLECO POWER CLECO Balance, Dec. 31, 2020 $ 16,658 $ 11,364 $ 28,022 Liabilities settled (1,433) — (1,433) Accretion 723 354 1,077 Revisions and adjustments 35,402 11,271 46,673 Balance, Dec. 31, 2021 $ 51,350 $ 22,989 $ 74,339 |
Affiliate Transactions (Tables)
Affiliate Transactions (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
CLECO POWER | |
Affiliate Transaction [Line Items] | |
Schedule of Related Party Transactions | The following table is a summary of charges from each affiliate included in Cleco Power’s Consolidated Statements of Income: FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2021 2020 2019 Support Group Other operations and maintenance $ 91,915 $ 94,798 $ 73,090 Taxes other than income taxes $ 40 $ — $ (73) Other expense $ 35 $ 43 $ 64 The following table is a summary of revenue received from affiliates included in Cleco Power’s Consolidated Statements of Income: FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2021 2020 2019 Other operations revenue Cleco Cajun $ 7,616 $ 6,463 $ 7,471 Affiliate revenue Support Group 4,783 4,715 3,088 Cleco Cajun 858 441 37 Other income Cleco Holdings — — 149 Total $ 13,257 $ 11,619 $ 10,745 Cleco Power had the following affiliate receivable and payable balances associated with the service agreements: AT DEC. 31, 2021 2020 (THOUSANDS) ACCOUNTS RECEIVABLE ACCOUNTS PAYABLE ACCOUNTS RECEIVABLE ACCOUNTS PAYABLE Cleco Holdings $ 10,347 $ 59,627 $ 10,353 $ 57,713 Support Group 2,473 10,038 3,248 14,355 Cleco Cajun 792 64 1,004 — Total $ 13,612 $ 69,729 $ 14,605 $ 72,068 pension plan related to Cleco Power’s affiliates for the years ended 2021 and 2020: FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2021 2020 Support Group $ 4,068 $ 3,155 Cleco Cajun $ 496 $ 351 |
Intangible Assets, Intangible_2
Intangible Assets, Intangible Liabilities, and Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Finite-Lived Intangible Assets [Line Items] | |
Schedule of Amortization of Intangible Assets and Liabilities | Amortization of capitalized computer software costs charged to expense in Cleco and Cleco Power’s Consolidated Statements of Income for the years ending December 31, 2021, 2020, and 2019 is shown in the following tables: Cleco FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2021 2020 2019 Amortization $ 11,878 $ 11,015 $ 4,917 The following tables present Cleco and Cleco Power’s amortization of intangible assets and liabilities: Cleco FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2021 2020 2019 Intangible assets Cleco Katrina/Rita right to bill and collect storm recover charges $ — $ 517 $ 20,576 Trade name $ 3,897 $ 255 $ 255 Power supply agreements $ 25,600 $ 25,600 $ 24,273 Intangible liabilities LTSA $ 3,484 $ 3,484 $ 3,234 Power supply agreements $ 2,378 $ 3,528 $ 3,194 An impairment on the Trade name intangible asset was recognized in 2021. No impairments for intangibles in the table above were recognized for 2020 and 2019. |
Schedule of Finite-Lived Intangible Assets and Liabilities | The following tables summarize the balances for intangible assets and liabilities subject to amortization for Cleco: Cleco AT DEC. 31, (THOUSANDS) 2021 2020 Intangible assets Trade name $ — $ 5,100 Power supply agreements 184,004 184,004 Total intangible assets carrying amount 184,004 189,104 Intangible liabilities LTSA 24,100 24,100 Power supply agreements 14,200 14,200 Total intangible liabilities carrying amount 38,300 38,300 Net intangible assets carrying amount 145,704 150,804 Accumulated amortization (82,466) (63,932) Net intangible assets subject to amortization $ 63,238 $ 86,872 |
Schedule of Expected Amortization Expense | The following table summarizes the amortization expense related to intangible assets and liabilities expected to be recognized in Cleco’s Consolidated Statements of Income: Cleco (THOUSANDS) INTANGIBLE ASSETS INTANGIBLE LIABILITIES For the year ending Dec. 31, 2022 $ 25,600 $ (5,041) 2023 $ 25,373 $ (5,041) 2024 $ 18,801 $ (5,041) 2025 $ 5,037 $ (3,874) 2026 $ 744 $ — Thereafter $ 6,680 $ — |
CLECO POWER | |
Finite-Lived Intangible Assets [Line Items] | |
Schedule of Amortization of Intangible Assets and Liabilities | Cleco Power FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2021 2020 2019 Amortization $ 11,268 $ 10,379 $ 4,321 Cleco Power FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2021 2020 2019 Cleco Katrina/Rita right to bill and collect storm recovery charges $ — $ 517 $ 20,576 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accumulated Other Comprehensive Loss [Line Items] | |
Schedule of Components of 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 debits. Cleco (THOUSANDS) POSTRETIREMENT BENEFIT NET GAIN (LOSS) Balances, Dec. 31, 2018 $ 1,786 Other comprehensive income before reclassifications Postretirement benefit adjustments incurred during the year (18,877) Amounts reclassified from accumulated other comprehensive income Amortization of postretirement benefit net gain (422) Balances, Dec. 31, 2019 $ (17,513) Other comprehensive income before reclassifications Postretirement benefit adjustments incurred during the year (10,026) Amounts reclassified from accumulated other comprehensive income Amortization of postretirement benefit net loss 1,743 Balances, Dec. 31, 2020 $ (25,796) Other comprehensive income before reclassifications Postretirement benefit adjustments incurred during the year 1,470 Amounts reclassified from accumulated other comprehensive income Amortization of postretirement benefit net loss 697 Balances, Dec. 31, 2021 $ (23,629) |
CLECO POWER | |
Accumulated Other Comprehensive Loss [Line Items] | |
Schedule of Components of Accumulated Other Comprehensive Loss | Cleco Power (THOUSANDS) POSTRETIREMENT BENEFIT NET (LOSS) GAIN NET (LOSS) GAIN ON CASH FLOW HEDGES TOTAL AOCI Balances, Dec. 31, 2018 $ (7,060) $ (6,122) $ (13,182) Other comprehensive loss before reclassifications Postretirement benefit adjustments incurred during the year (10,344) — (10,344) Amounts reclassified from accumulated other comprehensive loss Amortization of postretirement benefit net loss 687 — 687 Reclassification of net loss to interest charges — 254 254 Balances, Dec. 31, 2019 $ (16,717) $ (5,868) $ (22,585) Other comprehensive loss before reclassifications Postretirement benefit adjustments incurred during the year (4,050) — (4,050) Amounts reclassified from accumulated other comprehensive loss Amortization of postretirement benefit net loss 1,628 — 1,628 Reclassification of net loss to interest charges — 254 254 Balances, Dec. 31, 2020 $ (19,139) $ (5,614) $ (24,753) Other comprehensive loss before reclassifications Postretirement benefit adjustments incurred during the year 4,606 — 4,606 Amounts reclassified from accumulated other comprehensive loss Amortization of postretirement benefit net loss 1,648 — 1,648 Reclassification of net loss to interest charges — 316 316 Balances, Dec. 31, 2021 $ (12,885) $ (5,298) $ (18,183) |
The Company (Details)
The Company (Details) customer in Thousands, $ in Thousands | Dec. 31, 2021USD ($)generation_unitcustomerMW | Dec. 31, 2020USD ($) |
CLECO POWER | ||
Organization, Consolidation and Presentation of Financial Statements [Line Items] | ||
Number of generating units owned | generation_unit | 9 | |
Nameplate capacity of all generating units (MW) | MW | 3,035 | |
Approximate number of customers served | customer | 291 | |
Ownership interest in lignite entity | 50.00% | |
Regulatory asset | $ | $ 759,165 | $ 456,034 |
CLECO POWER | COVID-19 executive order | ||
Organization, Consolidation and Presentation of Financial Statements [Line Items] | ||
Regulatory asset | $ | $ 2,953 | $ 2,953 |
Cleco Cajun | ||
Organization, Consolidation and Presentation of Financial Statements [Line Items] | ||
Number of generating units owned | generation_unit | 14 | |
Nameplate capacity of all generating units (MW) | MW | 3,379 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Intangible Assets and Liabilities (Details) - USD ($) | Dec. 31, 2021 | Sep. 30, 2021 | Dec. 31, 2020 |
Asset Retirement Obligation [Line Items] | |||
Intangible assets | $ 82,235,000 | $ 111,731,000 | |
Trade name | |||
Asset Retirement Obligation [Line Items] | |||
Intangible assets | $ 0 | $ 0 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Property, Plant, and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Public Utility, Property, Plant and Equipment [Line Items] | |||
Capitalized software, net | $ 172,700 | $ 178,100 | |
Capitalized software costs, amortization | 11,878 | 11,015 | $ 4,917 |
Property, Plant and Equipment, Net | |||
Generation | 2,704,536 | 2,915,349 | |
Distribution | 1,494,411 | 1,357,714 | |
Transmission | 797,694 | 667,398 | |
Other utility plant | 412,577 | 391,057 | |
Other property, plant, and equipment | 7,504 | 5,672 | |
Total property, plant, and equipment | 5,416,722 | 5,337,190 | |
Accumulated depreciation | (700,991) | (672,271) | |
Net property, plant, and equipment | 4,715,731 | 4,664,919 | |
Acadia Unit 1 acquisition costs | |||
Plant Acquisition Adjustments | |||
Plant acquisition adjustment | 76,116 | 76,116 | |
Accumulated amortization | (18,201) | (15,018) | |
Net plant acquisition adjustment | $ 57,915 | 61,098 | |
MINIMUM | |||
Utility Plants | |||
Generation | 10 years | ||
Distribution | 15 years | ||
Transmission | 5 years | ||
Other utility plant | 5 years | ||
Other property, plant, and equipment | 5 years | ||
MAXIMUM | |||
Utility Plants | |||
Generation | 95 years | ||
Distribution | 50 years | ||
Transmission | 55 years | ||
Other utility plant | 45 years | ||
Other property, plant, and equipment | 45 years | ||
CLECO POWER | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Capitalized software, net | $ 167,400 | 177,000 | |
Capitalized software costs, amortization | 11,268 | 10,379 | $ 4,321 |
Property, Plant and Equipment, Net | |||
Generation | 2,314,285 | 2,673,271 | |
Distribution | 1,933,389 | 1,796,841 | |
Transmission | 988,122 | 857,833 | |
Other utility plant | 509,693 | 496,433 | |
Total property, plant, and equipment | 5,745,489 | 5,824,378 | |
Accumulated depreciation | (1,919,766) | (2,067,362) | |
Net property, plant, and equipment | 3,825,723 | 3,757,016 | |
CLECO POWER | Acadia Unit 1 acquisition costs | |||
Plant Acquisition Adjustments | |||
Plant acquisition adjustment | 95,578 | 95,578 | |
Accumulated amortization | (37,663) | (34,480) | |
Net plant acquisition adjustment | $ 57,915 | $ 61,098 | |
CLECO POWER | MINIMUM | |||
Utility Plants | |||
Generation | 10 years | ||
Distribution | 15 years | ||
Transmission | 5 years | ||
Other utility plant | 5 years | ||
Other property, plant, and equipment | 5 years | ||
CLECO POWER | MAXIMUM | |||
Utility Plants | |||
Generation | 95 years | ||
Distribution | 50 years | ||
Transmission | 55 years | ||
Other utility plant | 45 years | ||
Other property, plant, and equipment | 45 years |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Deferred Project Costs (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
CLECO POWER | ||
Accounting Policies [Line Items] | ||
Deferred project costs | $ 4.5 | $ 2.5 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Changes in Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Accounting Policies [Line Items] | ||
Receivable, threshold period past due | 20 days | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | $ 2,758 | $ 3,005 |
Current period provision | 4,003 | 5,029 |
Charge-offs | (6,919) | (6,423) |
Recovery | 1,460 | 1,076 |
Ending balance | 1,302 | 2,758 |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | 1,638 | 1,250 |
Current period provision | 0 | 388 |
Charge-offs | 0 | 0 |
Recovery | 0 | 0 |
Ending balance | 1,638 | 1,638 |
Receivable, Allowance For Credit Loss [Roll Forward] | ||
Beginning balance | 4,396 | 4,255 |
Current period provision | 4,003 | 5,417 |
Charge-offs | (6,919) | (6,423) |
Recovery | 1,460 | 1,076 |
Ending balance | 2,940 | 4,396 |
Accounting Standards Update 2016-13 | CECL adoption | ||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | 71 | |
Receivable, Allowance For Credit Loss [Roll Forward] | ||
Beginning balance | 71 | |
Cleco Power | ||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | 2,758 | 3,005 |
Current period provision | 4,003 | 5,029 |
Charge-offs | (6,919) | (6,423) |
Recovery | 1,460 | 1,076 |
Ending balance | $ 1,302 | 2,758 |
Cleco Power | Accounting Standards Update 2016-13 | CECL adoption | ||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | $ 71 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Other Reserves (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Cleco Holdings | ||
Accounting Policies [Line Items] | ||
General liability and workers compensation reserves | $ 6 | $ 4.5 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Restricted Cash and Cash Equivalents (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Restricted Cash and Cash Equivalents [Abstract] | ||
Current | $ 1,674 | $ 4,545 |
Non-current | 745 | 744 |
Total restricted cash and cash equivalents | 2,419 | 5,289 |
Cleco Katrina/Rita’s storm recovery surcharge | ||
Restricted Cash and Cash Equivalents [Abstract] | ||
Current | 1,674 | 2,626 |
Cleco Power’s charitable contributions | ||
Restricted Cash and Cash Equivalents [Abstract] | ||
Current | 0 | 1,718 |
Cleco Power’s rate credit escrow | ||
Restricted Cash and Cash Equivalents [Abstract] | ||
Current | 0 | 201 |
Diversified Lands’ mitigation escrow | ||
Restricted Cash and Cash Equivalents [Abstract] | ||
Non-current | 22 | 22 |
Cleco Cajun’s defense fund | ||
Restricted Cash and Cash Equivalents [Abstract] | ||
Non-current | 723 | 722 |
CLECO POWER | ||
Restricted Cash and Cash Equivalents [Abstract] | ||
Current | 1,674 | 4,545 |
Total restricted cash and cash equivalents | 1,674 | 4,545 |
CLECO POWER | Cleco Katrina/Rita’s storm recovery surcharge | ||
Restricted Cash and Cash Equivalents [Abstract] | ||
Current | 1,674 | 2,626 |
CLECO POWER | Cleco Power’s charitable contributions | ||
Restricted Cash and Cash Equivalents [Abstract] | ||
Current | 0 | 1,718 |
CLECO POWER | Cleco Power’s rate credit escrow | ||
Restricted Cash and Cash Equivalents [Abstract] | ||
Current | $ 0 | $ 201 |
Summary of Significant Accou_10
Summary of Significant Accounting Policies - Equity Investments (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accounting Policies [Abstract] | |||
Impairments | $ 0 | $ 0 | $ 0 |
Summary of Significant Accou_11
Summary of Significant Accounting Policies - AFUDC (Details) - CLECO POWER | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Public Utilities, General Disclosures [Line Items] | |||
Composite AFUDC rate, including borrowed and other funds, pre-tax | 10.05% | 10.14% | 10.71% |
Public utilities, rate net of tax | 7.81% | 7.96% | 8.37% |
Business Combinations - Narrati
Business Combinations - Narrative (Details) $ in Thousands | Feb. 04, 2019USD ($)investor_owned_utilitymunicipalitycooperativeMW | Jan. 31, 2019USD ($) | Jun. 30, 2019USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Jul. 14, 2020 |
Business Acquisition [Line Items] | |||||||
Proceeds from long-term lines of credit | $ 185,000 | $ 238,000 | $ 108,000 | ||||
Decrease in other operating income | (195,767) | (180,524) | (182,832) | ||||
Depreciation expense | 237,415 | 219,363 | 216,320 | ||||
NRG South Central | |||||||
Business Acquisition [Line Items] | |||||||
Repayments of long-term debt | $ 400,000 | $ 400,000 | |||||
Business combination, liabilities arising from contingencies, amount recognized | 10,000 | ||||||
Business combination, indemnification assets, amount as of acquisition date | 10,000 | ||||||
Purchase price consideration | 962,200 | ||||||
Cash paid | 1,000,000 | ||||||
Working capital adjustment | 37,800 | ||||||
Business combination, finite-lived intangibles | 98,900 | ||||||
Business combination, recognized identifiable assets and intangible liabilities | 38,300 | ||||||
Business combination, deferred revenue | 58,300 | ||||||
Net income | 154,898 | ||||||
NRG South Central | Fair Value Adjustments | |||||||
Business Acquisition [Line Items] | |||||||
Regulated operating revenue, electric, non-nuclear | $ 500 | ||||||
Decrease in other operating income | 100 | ||||||
Depreciation expense | $ 200 | ||||||
NRG South Central | Acquisition-related Costs | |||||||
Business Acquisition [Line Items] | |||||||
Net income | 4,700 | ||||||
NRG South Central | Power supply agreements | |||||||
Business Acquisition [Line Items] | |||||||
Business combination, recognized identifiable assets and intangible liabilities | 14,200 | ||||||
NRG South Central | LTSA | |||||||
Business Acquisition [Line Items] | |||||||
Business combination, recognized identifiable assets and intangible liabilities | $ 24,100 | ||||||
CLECO CAJUN | |||||||
Business Acquisition [Line Items] | |||||||
Number of customers served | investor_owned_utility | 1 | ||||||
CLECO POWER | |||||||
Business Acquisition [Line Items] | |||||||
Public utilities, requested rate increase (decrease), amount | $ (4,000) | ||||||
Proceeds from long-term lines of credit | 185,000 | 150,000 | 33,000 | ||||
Regulated operating revenue, electric, non-nuclear | 1,202,249 | 1,015,018 | 1,130,928 | ||||
Decrease in other operating income | (74,625) | (65,237) | (72,833) | ||||
Depreciation expense | $ 173,498 | $ 166,987 | $ 172,471 | ||||
Cleco Holdings | |||||||
Business Acquisition [Line Items] | |||||||
Debt to capital ratio | 0.65 | ||||||
Cleco Holdings | Senior notes, 3.375%, due 2029 | |||||||
Business Acquisition [Line Items] | |||||||
Interest rate | 3.375% | 3.375% | |||||
Cleco Holdings | Revolving Credit Facility | |||||||
Business Acquisition [Line Items] | |||||||
Proceeds from credit facility | $ 75,000 | ||||||
Line of credit facility, maximum borrowing capacity | 175,000 | ||||||
Proceeds from long-term lines of credit | 75,000 | ||||||
Cleco Holdings | Bridge Loan | |||||||
Business Acquisition [Line Items] | |||||||
Debt instrument, face amount | 300,000 | ||||||
Cleco Holdings | Loans Payable | |||||||
Business Acquisition [Line Items] | |||||||
Debt instrument, face amount | 100,000 | ||||||
Cleco Holdings | NRG South Central | |||||||
Business Acquisition [Line Items] | |||||||
Cash paid | 102,300 | ||||||
Cleco Group | NRG South Central | |||||||
Business Acquisition [Line Items] | |||||||
Business combination, equity interests issued and issuable | $ 384,900 | ||||||
Sterlington, Louisiana | Natural-gas-fired Generating Station | CLECO CAJUN | |||||||
Business Acquisition [Line Items] | |||||||
Number of megawatts in station or facility (mw) | MW | 176 | ||||||
Jarreau, Louisiana | Natural-gas-fired Facility | CLECO CAJUN | |||||||
Business Acquisition [Line Items] | |||||||
Number of megawatts in station or facility (mw) | MW | 220 | ||||||
Jarreau, Louisiana | Natural-gas-fired Peaking Facility | CLECO CAJUN | |||||||
Business Acquisition [Line Items] | |||||||
Number of megawatts in station or facility (mw) | MW | 210 | ||||||
New Roads, Louisiana | Natural-gas-fired Generating Station | CLECO CAJUN | |||||||
Business Acquisition [Line Items] | |||||||
Number of megawatts in station or facility (mw) | MW | 540 | ||||||
New Roads, Louisiana | Coal-fired Generating Facility | CLECO CAJUN | |||||||
Business Acquisition [Line Items] | |||||||
Number of megawatts in station or facility (mw) | MW | 580 | ||||||
New Roads, Louisiana | Coal-fired Generating Station | CLECO CAJUN | Jointly Owned Electricity Generation Plant | |||||||
Business Acquisition [Line Items] | |||||||
Number of megawatts in station or facility (mw) | MW | 588 | ||||||
Ownership interest percentage | 58.00% | ||||||
Jennings, Louisiana | Natural-gas-fired Peaking Facility | CLECO CAJUN | Jointly Owned Electricity Generation Plant | |||||||
Business Acquisition [Line Items] | |||||||
Number of megawatts in station or facility (mw) | MW | 300 | ||||||
Ownership interest percentage | 75.00% | ||||||
Deweyville, Texas | Natural-gas-fired Generating Station | CLECO CAJUN | |||||||
Business Acquisition [Line Items] | |||||||
Number of megawatts in station or facility (mw) | MW | 1,263 | ||||||
Louisiana | CLECO CAJUN | |||||||
Business Acquisition [Line Items] | |||||||
Number of customers served | cooperative | 9 | ||||||
Arkansas, Louisiana, And Texas | CLECO CAJUN | |||||||
Business Acquisition [Line Items] | |||||||
Number of customers served | municipality | 5 |
Business Combinations - Purchas
Business Combinations - Purchase Price Allocation (Details) - NRG South Central $ 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 Combinations - Fair Va
Business Combinations - Fair Value Adjustments (Details) - NRG South Central $ in Thousands | 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 Combinations - Pro For
Business Combinations - Pro Forma Information (Details) - NRG South Central $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Business Acquisition [Line Items] | |
Operating revenue, net | $ 1,660,362 |
Net income | $ 154,898 |
Leases - Operating Lease (Detai
Leases - Operating Lease (Details) - Dec. 31, 2021 - CLECO POWER | Total | municipality | nonmunicipal_public_body | railcar | towboat |
Operating Leased Assets [Line Items] | |||||
Operating lease, number of lessors | 2 | 1 | |||
Railroad Transportation Equipment | |||||
Operating Leased Assets [Line Items] | |||||
Lessee, operating lease, number of leased assets | railcar | 113 | ||||
Maritime Equipment | |||||
Operating Leased Assets [Line Items] | |||||
Lessee, operating lease, renewal term | 5 years | ||||
Term of operating lease (in years) | 10 years | ||||
Lessee, operating lease, number of leased assets | towboat | 3 | ||||
Municipality One | Utility System | |||||
Operating Leased Assets [Line Items] | |||||
Lessee, operating lease, renewal term | 10 years | ||||
Municipality Two | Utility System | |||||
Operating Leased Assets [Line Items] | |||||
Term of operating lease (in years) | 10 years | ||||
Non-Municipal Public Body | Utility System | |||||
Operating Leased Assets [Line Items] | |||||
Term of operating lease (in years) | 27 years |
Leases - Future Minimum Lease P
Leases - Future Minimum Lease Payments Due Under Long-Term Operating Leases (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Years ending Dec. 31, | ||
2022 | $ 3,584 | |
2023 | 3,426 | |
2024 | 3,282 | |
2025 | 3,216 | |
2026 | 3,216 | |
Thereafter | 12,186 | |
Total minimum lease payments | 28,910 | |
Less: amount representing interest | 4,928 | |
Present value of net minimum operating lease payments | 23,982 | |
Current liabilities | 2,854 | $ 2,802 |
Non-current liabilities | 21,128 | 23,333 |
CLECO POWER | ||
Years ending Dec. 31, | ||
2022 | 3,552 | |
2023 | 3,398 | |
2024 | 3,262 | |
2025 | 3,216 | |
2026 | 3,216 | |
Thereafter | 12,186 | |
Total minimum lease payments | 28,830 | |
Less: amount representing interest | 4,898 | |
Present value of net minimum operating lease payments | 23,932 | |
Current liabilities | 2,832 | 2,672 |
Non-current liabilities | $ 21,100 | $ 23,295 |
Leases - Finance Lease (Details
Leases - Finance Lease (Details) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021USD ($)event | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Apr. 30, 2018barge | |
Lessee, Lease, Description [Line Items] | ||||
Finance lease, number of cancellation events triggering early termination | event | 1 | |||
Finance lease, number of cancellation events | event | 4 | |||
CLECO POWER | ||||
Lessee, Lease, Description [Line Items] | ||||
Finance lease, principal interest | $ | $ 2.2 | $ 2.2 | $ 2.2 | |
Sublease income | $ | $ 0.2 | $ 0.8 | $ 1.7 | |
Maritime Equipment | CLECO POWER | ||||
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 | Dec. 31, 2021 | Dec. 31, 2020 |
Lessor, Lease, Description [Line Items] | ||
Net finance lease asset | $ 12,600 | $ 13,720 |
Cleco Power | ||
Lessor, Lease, Description [Line Items] | ||
Barges | 16,800 | 16,800 |
Accumulated amortization | (4,200) | (3,080) |
Net finance lease asset | $ 12,600 | $ 13,720 |
Leases - Future Minimum Lease_2
Leases - Future Minimum Lease Payments Due Under Finance Lease (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Years ending Dec. 31, | ||
Current liabilities | $ 755 | $ 682 |
Non-current liabilities | 13,807 | 14,562 |
Cleco Power | ||
Years ending Dec. 31, | ||
2022 | 2,203 | |
2023 | 2,203 | |
2024 | 2,203 | |
2025 | 2,203 | |
2026 | 2,203 | |
Thereafter | 13,269 | |
Total minimum lease payments | 24,284 | |
Less: amount representing interest | 9,722 | |
Present value of net minimum finance lease payments | 14,562 | 15,244 |
Current liabilities | 755 | 682 |
Non-current liabilities | $ 13,807 | $ 14,562 |
Leases - Total Lease Costs (Det
Leases - Total Lease Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Finance lease cost | ||
Amortization of ROU assets | $ 1,120 | $ 1,120 |
Interest on lease liabilities | 1,521 | 1,587 |
Operating lease cost | 3,985 | 4,576 |
Variable lease cost | 385 | 301 |
Total lease cost | 7,011 | 7,584 |
Cleco Power | ||
Finance lease cost | ||
Amortization of ROU assets | 1,120 | 1,120 |
Interest on lease liabilities | 1,521 | 1,587 |
Operating lease cost | 3,845 | 4,191 |
Variable lease cost | 385 | 301 |
Total lease cost | $ 6,871 | $ 7,199 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet and Cash Flow Information and Other Supplemental Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
ROU assets | ||
Operating | $ 24,014 | $ 26,172 |
Finance | 12,600 | 13,720 |
Total ROU assets | 36,614 | 39,892 |
Current lease liabilities | ||
Operating | 2,854 | 2,802 |
Finance | 755 | 682 |
Non-current lease liabilities | ||
Operating | 21,128 | 23,333 |
Finance | 13,807 | 14,562 |
Total lease liabilities | 38,544 | 41,379 |
Cash paid for amounts included in the measurement of lease liabilities | ||
Operating cash flows from operating leases | 3,938 | 4,504 |
Operating cash flows from finance leases | 1,521 | 1,587 |
Financing cash flows from finance leases | $ 682 | $ 617 |
Operating leases | ||
Weighted average remaining lease term (in years) | 9 years | 9 years 10 months 24 days |
Weighted-average discount rate | 4.30% | 4.31% |
Finance leases | ||
Weighted average remaining lease term (in years) | 11 years 3 months 18 days | 12 years 3 months 18 days |
Weighted-average discount rate | 10.18% | 10.18% |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Property, plant, and equipment | Property, plant, and equipment |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Other current liabilities | Other current liabilities |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Long-term debt outstanding, due within one year | Long-term debt outstanding, due within one year |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Long-term debt and finance leases, net | Long-term debt and finance leases, net |
CLECO POWER | ||
ROU assets | ||
Operating | $ 23,970 | $ 26,006 |
Finance | 12,600 | 13,720 |
Total ROU assets | 36,570 | 39,726 |
Current lease liabilities | ||
Operating | 2,832 | 2,672 |
Finance | 755 | 682 |
Non-current lease liabilities | ||
Operating | 21,100 | 23,295 |
Finance | 13,807 | 14,562 |
Total lease liabilities | 38,494 | 41,211 |
Cash paid for amounts included in the measurement of lease liabilities | ||
Operating cash flows from operating leases | 3,800 | 4,120 |
Operating cash flows from finance leases | 1,521 | 1,587 |
Financing cash flows from finance leases | $ 682 | $ 617 |
Operating leases | ||
Weighted average remaining lease term (in years) | 9 years | 10 years |
Weighted-average discount rate | 4.30% | 4.31% |
Finance leases | ||
Weighted average remaining lease term (in years) | 11 years 3 months 18 days | 12 years 3 months 18 days |
Weighted-average discount rate | 10.18% | 10.18% |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Property, plant, and equipment | Property, plant, and equipment |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Other current liabilities | Other current liabilities |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Long-term debt outstanding, due within one year | Long-term debt outstanding, due within one year |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Long-term debt and finance leases, net | Long-term debt and finance leases, net |
Leases - Cottonwood Sale Leaseb
Leases - Cottonwood Sale Leaseback Agreement (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | |||
Fixed lease payments per year | $ 40 | ||
Sale leaseback transaction, depreciation expense | $ 32 | $ 29.3 | $ 22.7 |
Leases - Lease Income Under Cot
Leases - Lease Income Under Cottonwood Sale Leaseback (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | ||
Fixed payments | $ 40,000 | $ 40,000 |
Variable payments | 18,226 | 20,883 |
Amortization of deferred lease liability | 9,205 | 9,205 |
Total lease income | $ 67,431 | $ 70,088 |
Leases - Remaining Minimum Leas
Leases - Remaining Minimum Lease Payments To Be Received (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Years ending Dec. 31, | |
2022 | $ 40,000 |
2023 | 40,000 |
2024 | 40,000 |
2025 | 16,667 |
Total payments | $ 136,667 |
Leases - Property Associated wi
Leases - Property Associated with Sale Leaseback (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
Property, plant, and equipment | $ 552,659 | $ 552,659 |
Accumulated depreciation | (84,065) | (52,053) |
Net property, plant, and equipment | $ 468,594 | $ 500,606 |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Payment terms | 20 days |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Unsatisfied performance obligations | $ 63.2 |
CLECO POWER | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Unsatisfied performance obligations | $ 63.2 |
Minimum | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Minimum | CLECO POWER | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Maximum | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 13 years |
Maximum | CLECO POWER | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 13 years |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | $ 1,666,839 | $ 1,418,776 | $ 1,561,424 |
Total revenue from contracts with customers | |||
Other | 79,090 | 79,370 | 78,181 |
Total revenue unrelated to contracts with customers | 79,090 | 79,370 | 78,181 |
Operating revenue, net | 1,745,929 | 1,498,146 | 1,639,605 |
Electric customer credits | 40,634 | 53,271 | 39,963 |
Sales-type lease, lease income | 67,431 | 70,088 | |
Recognition of deferred lease income | 9,205 | 9,205 | 8,439 |
TOTAL SEGMENTS | |||
Total revenue from contracts with customers | |||
Operating revenue, net | 1,768,856 | 1,519,645 | 1,659,988 |
Electric customer credits | 40,634 | 53,272 | 39,963 |
OTHER | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 103,951 | 119,446 | 99,389 |
Total revenue from contracts with customers | |||
Other | 0 | 3 | 0 |
Total revenue unrelated to contracts with customers | 0 | 3 | 0 |
Operating revenue, net | 103,951 | 119,449 | 99,389 |
Electric customer credits | 0 | 0 | 0 |
ELIMINATIONS | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | (126,878) | (140,948) | (119,772) |
Total revenue from contracts with customers | |||
Other | 0 | 0 | 0 |
Total revenue unrelated to contracts with customers | 0 | 0 | 0 |
Operating revenue, net | (126,878) | (140,948) | (119,772) |
Electric customer credits | 0 | (1) | 0 |
Total retail revenue | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 898,658 | 761,401 | 855,448 |
Total retail revenue | OTHER | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 0 | 0 | 0 |
Total retail revenue | ELIMINATIONS | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 0 | 0 | 0 |
Residential | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 453,873 | 402,050 | 415,242 |
Residential | OTHER | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 0 | 0 | 0 |
Residential | ELIMINATIONS | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 0 | 0 | 0 |
Commercial | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 294,553 | 256,964 | 289,197 |
Commercial | OTHER | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 0 | 0 | 0 |
Commercial | ELIMINATIONS | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 0 | 0 | 0 |
Industrial | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 175,134 | 137,920 | 149,711 |
Industrial | OTHER | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 0 | 0 | 0 |
Industrial | ELIMINATIONS | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 0 | 0 | 0 |
Other retail | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 16,105 | 14,235 | 15,046 |
Other retail | OTHER | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 0 | 0 | 0 |
Other retail | ELIMINATIONS | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 0 | 0 | 0 |
Surcharge | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 2,440 | 22,132 | |
Surcharge | OTHER | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 0 | 0 | |
Surcharge | ELIMINATIONS | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 0 | 0 | |
Electric customer credits | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | (41,007) | (52,208) | (35,880) |
Electric customer credits | OTHER | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 0 | 0 | 0 |
Electric customer credits | ELIMINATIONS | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 0 | 0 | 0 |
Wholesale, net | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 639,534 | 548,062 | 591,932 |
Wholesale, net | OTHER | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | (9,680) | (9,680) | (9,680) |
Wholesale, net | ELIMINATIONS | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 1 | 0 | (1) |
Transmission, net | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 109,848 | 94,150 | 94,718 |
Transmission, net | OTHER | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 0 | 0 | 0 |
Transmission, net | ELIMINATIONS | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | (7,615) | (6,463) | (7,471) |
Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 18,799 | 15,163 | 19,326 |
Other | OTHER | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 8 | 0 | 2 |
Other | ELIMINATIONS | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 0 | 1 | 0 |
Affiliate | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 0 | 0 | 0 |
Affiliate | OTHER | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 113,623 | 129,126 | 109,067 |
Affiliate | ELIMINATIONS | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | (119,264) | (134,486) | (112,300) |
CLECO POWER | Price risk derivatives | |||
Total revenue from contracts with customers | |||
Other | 12,400 | ||
CLECO POWER | TOTAL SEGMENTS | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 1,230,040 | 1,023,070 | 1,155,749 |
Total revenue from contracts with customers | |||
Other | 11,597 | 9,222 | 12,621 |
Total revenue unrelated to contracts with customers | 11,597 | 9,222 | 12,621 |
Operating revenue, net | 1,241,637 | 1,032,292 | 1,168,370 |
Electric customer credits | 40,878 | 53,119 | 38,516 |
CLECO POWER | Total retail revenue | TOTAL SEGMENTS | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 898,658 | 761,401 | 855,448 |
CLECO POWER | Residential | TOTAL SEGMENTS | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 453,873 | 402,050 | 415,242 |
CLECO POWER | Commercial | TOTAL SEGMENTS | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 294,553 | 256,964 | 289,197 |
CLECO POWER | Industrial | TOTAL SEGMENTS | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 175,134 | 137,920 | 149,711 |
CLECO POWER | Other retail | TOTAL SEGMENTS | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 16,105 | 14,235 | 15,046 |
CLECO POWER | Surcharge | TOTAL SEGMENTS | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 2,440 | 22,132 | |
CLECO POWER | Electric customer credits | TOTAL SEGMENTS | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | (41,007) | (52,208) | (35,880) |
CLECO POWER | Wholesale, net | TOTAL SEGMENTS | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 250,987 | 192,187 | 226,978 |
CLECO POWER | Transmission, net | TOTAL SEGMENTS | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 55,963 | 49,164 | 50,874 |
Total revenue from contracts with customers | |||
Electric customer credits | (100) | 900 | 2,600 |
CLECO POWER | Other | SSR | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 3,200 | ||
CLECO POWER | Other | TOTAL SEGMENTS | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 18,791 | 15,162 | 19,324 |
Total revenue from contracts with customers | |||
Other miscellaneous fee revenue | 16,100 | ||
CLECO POWER | Affiliate | TOTAL SEGMENTS | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 5,641 | 5,156 | 3,125 |
CLECO POWER | Lost contribution to fixed cost | |||
Total revenue from contracts with customers | |||
Other | 200 | ||
CLECO CAJUN | |||
Total revenue from contracts with customers | |||
Sales-type lease, lease income | 57,100 | ||
Recognition of deferred lease income | 9,200 | 9,200 | 8,400 |
CLECO CAJUN | TOTAL SEGMENTS | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 459,726 | 417,208 | 426,058 |
Total revenue from contracts with customers | |||
Other | 67,493 | 70,145 | 65,560 |
Total revenue unrelated to contracts with customers | 67,493 | 70,145 | 65,560 |
Operating revenue, net | 527,219 | 487,353 | 491,618 |
Sales-type lease, lease income | 58,200 | 60,900 | |
CLECO CAJUN | Total retail revenue | TOTAL SEGMENTS | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 0 | 0 | 0 |
CLECO CAJUN | Residential | TOTAL SEGMENTS | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 0 | 0 | 0 |
CLECO CAJUN | Commercial | TOTAL SEGMENTS | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 0 | 0 | 0 |
CLECO CAJUN | Industrial | TOTAL SEGMENTS | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 0 | 0 | 0 |
CLECO CAJUN | Other retail | TOTAL SEGMENTS | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 0 | 0 | 0 |
CLECO CAJUN | Surcharge | TOTAL SEGMENTS | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 0 | 0 | |
CLECO CAJUN | Electric customer credits | TOTAL SEGMENTS | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 0 | 0 | 0 |
CLECO CAJUN | Wholesale, net | TOTAL SEGMENTS | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 398,226 | 365,555 | 374,635 |
Total revenue from contracts with customers | |||
Electric customer credits | 800 | ||
CLECO CAJUN | Transmission, net | TOTAL SEGMENTS | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 61,500 | 51,449 | 51,315 |
Total revenue from contracts with customers | |||
Electric customer credits | (200) | 200 | 700 |
CLECO CAJUN | Other | TOTAL SEGMENTS | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 0 | 0 | 0 |
CLECO CAJUN | Affiliate | TOTAL SEGMENTS | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | $ 0 | $ 204 | $ 108 |
Regulatory Assets and Liabili_3
Regulatory Assets and Liabilities - Summary of Regulatory Assets and Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Jun. 16, 2021 | Dec. 31, 2020 | |
Regulatory Assets and Liabilities [Line Items] | |||
Total regulatory assets, net | $ 801,363 | $ 423,279 | |
Financing costs | |||
Regulatory Assets and Liabilities [Line Items] | |||
Total regulatory assets | 7,248 | 7,592 | |
Postretirement costs | |||
Regulatory Assets and Liabilities [Line Items] | |||
Total regulatory assets | 13,424 | 15,411 | |
Fair value of long-term debt | |||
Regulatory Assets and Liabilities [Line Items] | |||
Total regulatory assets | 112,150 | 119,553 | |
Debt issuance costs | |||
Regulatory Assets and Liabilities [Line Items] | |||
Total regulatory assets | 4,920 | 5,254 | |
CLECO POWER | |||
Regulatory Assets and Liabilities [Line Items] | |||
Total regulatory assets | 759,165 | 456,034 | |
Total regulatory liabilities | (95,544) | (180,565) | |
Total regulatory assets, net | 663,621 | 275,469 | |
CLECO POWER | AFUDC | |||
Regulatory Assets and Liabilities [Line Items] | |||
Total regulatory liabilities | 0 | (4,218) | |
CLECO POWER | Corporate franchise tax, net | |||
Regulatory Assets and Liabilities [Line Items] | |||
Total regulatory liabilities | 0 | (763) | |
CLECO POWER | Deferred taxes, net | |||
Regulatory Assets and Liabilities [Line Items] | |||
Total regulatory liabilities | (95,544) | (175,584) | |
CLECO POWER | Acadia Unit 1 acquisition costs | |||
Regulatory Assets and Liabilities [Line Items] | |||
Total regulatory assets | $ 1,913 | 2,019 | |
REMAINING RECOVERY PERIOD (YRS.) | 18 years | ||
CLECO POWER | Accumulated deferred fuel | |||
Regulatory Assets and Liabilities [Line Items] | |||
Total regulatory assets | $ 56,826 | 28,194 | |
CLECO POWER | Affordability study | |||
Regulatory Assets and Liabilities [Line Items] | |||
Total regulatory assets | $ 13,094 | $ 13,600 | 0 |
REMAINING RECOVERY PERIOD (YRS.) | 9 years 6 months | ||
CLECO POWER | AFUDC equity gross-up | |||
Regulatory Assets and Liabilities [Line Items] | |||
Total regulatory assets | $ 66,574 | 69,670 | |
CLECO POWER | AMI deferred revenue requirement | |||
Regulatory Assets and Liabilities [Line Items] | |||
Total regulatory assets | $ 2,045 | 2,591 | |
REMAINING RECOVERY PERIOD (YRS.) | 4 years | ||
CLECO POWER | AROs (1)(7) | |||
Regulatory Assets and Liabilities [Line Items] | |||
Total regulatory assets | $ 15,141 | 5,488 | |
CLECO POWER | Bayou Vista to Segura deferred revenue requirement | |||
Regulatory Assets and Liabilities [Line Items] | |||
Total regulatory assets | 1,392 | $ 1,400 | 0 |
CLECO POWER | Acquisition costs or Transaction costs | Natural Gas Processing Plant | |||
Regulatory Assets and Liabilities [Line Items] | |||
Total regulatory assets | $ 845 | 876 | |
REMAINING RECOVERY PERIOD (YRS.) | 27 years 6 months | ||
CLECO POWER | COVID-19 executive order | |||
Regulatory Assets and Liabilities [Line Items] | |||
Total regulatory assets | $ 2,953 | 2,953 | |
CLECO POWER | Deferred storm restoration costs - Hurricane Delta | |||
Regulatory Assets and Liabilities [Line Items] | |||
Total regulatory assets | 17,113 | 17,051 | |
CLECO POWER | Deferred storm restoration costs - Hurricane Ida | |||
Regulatory Assets and Liabilities [Line Items] | |||
Total regulatory assets | 37,617 | 0 | |
CLECO POWER | Deferred storm restoration costs - Hurricane Laura | |||
Regulatory Assets and Liabilities [Line Items] | |||
Total regulatory assets | 54,282 | 54,406 | |
CLECO POWER | Deferred storm restoration costs - Hurricane Zeta | |||
Regulatory Assets and Liabilities [Line Items] | |||
Total regulatory assets | 3,296 | 3,493 | |
CLECO POWER | Deferred storm restoration costs - Winter Storms Uri & Viola | |||
Regulatory Assets and Liabilities [Line Items] | |||
Total regulatory assets | 1,912 | 0 | |
CLECO POWER | Accelerated depreciation | RODEMACHER UNIT 2 | |||
Regulatory Assets and Liabilities [Line Items] | |||
Total regulatory assets | 6,931 | 1,333 | |
CLECO POWER | Emergency declarations | |||
Regulatory Assets and Liabilities [Line Items] | |||
Total regulatory assets | 0 | 270 | |
CLECO POWER | Energy efficiency | |||
Regulatory Assets and Liabilities [Line Items] | |||
Total regulatory assets | $ 1,645 | 2,820 | |
REMAINING RECOVERY PERIOD (YRS.) | 1 year | ||
CLECO POWER | Financing costs | |||
Regulatory Assets and Liabilities [Line Items] | |||
Total regulatory assets | $ 6,826 | 7,184 | |
CLECO POWER | Interest costs | |||
Regulatory Assets and Liabilities [Line Items] | |||
Total regulatory assets | 3,459 | 3,708 | |
CLECO POWER | Lignite Mine closure costs | Lignite Mine | |||
Regulatory Assets and Liabilities [Line Items] | |||
Total regulatory assets | 136,980 | 0 | |
CLECO POWER | Madison Unit 3 property taxes | |||
Regulatory Assets and Liabilities [Line Items] | |||
Total regulatory assets | 8,362 | 0 | |
CLECO POWER | Non-service cost of postretirement benefits | |||
Regulatory Assets and Liabilities [Line Items] | |||
Total regulatory assets | 12,950 | 9,901 | |
CLECO POWER | Other | |||
Regulatory Assets and Liabilities [Line Items] | |||
Total regulatory assets | 11,224 | 4,229 | |
CLECO POWER | Postretirement costs | |||
Regulatory Assets and Liabilities [Line Items] | |||
Total regulatory assets | 117,773 | 165,437 | |
CLECO POWER | Production operations and maintenance expenses | |||
Regulatory Assets and Liabilities [Line Items] | |||
Total regulatory assets | 11,058 | 4,058 | |
CLECO POWER | Production operations and maintenance expenses | DOLET HILLS POWER STATION | |||
Regulatory Assets and Liabilities [Line Items] | |||
Total regulatory assets | $ 145,844 | 48,982 | |
REMAINING RECOVERY PERIOD (YRS.) | 3 years | ||
CLECO POWER | St. Mary Clean Energy Center | |||
Regulatory Assets and Liabilities [Line Items] | |||
Total regulatory assets | $ 6,089 | 3,479 | |
REMAINING RECOVERY PERIOD (YRS.) | 3 years 6 months | ||
CLECO POWER | Training costs | |||
Regulatory Assets and Liabilities [Line Items] | |||
Total regulatory assets | $ 5,929 | 6,085 | |
REMAINING RECOVERY PERIOD (YRS.) | 38 years | ||
CLECO POWER | Tree trimming costs | |||
Regulatory Assets and Liabilities [Line Items] | |||
Total regulatory assets | $ 9,092 | $ 11,807 | |
REMAINING RECOVERY PERIOD (YRS.) | 3 years 6 months |
Regulatory Assets and Liabili_4
Regulatory Assets and Liabilities - Narrative (Details) | Jul. 01, 2022 | Jul. 01, 2021 | Jun. 16, 2021USD ($) | Apr. 13, 2016instrument | May 31, 2021 | May 31, 2013USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2011USD ($)treasury_rate_lock | Dec. 31, 2010 | Jun. 30, 2021USD ($) | Mar. 29, 2021USD ($) | Dec. 31, 2020USD ($) | Oct. 31, 2016USD ($) |
Excess A D I T | LPSC | |||||||||||||
Regulatory Assets and Liabilities [Line Items] | |||||||||||||
Regulatory liability | $ 302,000,000 | $ 352,400,000 | |||||||||||
Treasury Lock | |||||||||||||
Regulatory Assets and Liabilities [Line Items] | |||||||||||||
Number of instruments settled | instrument | 2 | ||||||||||||
AMI deferred revenue requirement | |||||||||||||
Regulatory Assets and Liabilities [Line Items] | |||||||||||||
Regulatory assets amortization period | 11 years | ||||||||||||
COVID-19 executive order | |||||||||||||
Regulatory Assets and Liabilities [Line Items] | |||||||||||||
Regulatory assets amortization period | 4 years | ||||||||||||
Financing costs | |||||||||||||
Regulatory Assets and Liabilities [Line Items] | |||||||||||||
Total regulatory assets | $ 7,248,000 | 7,592,000 | |||||||||||
Postretirement costs | |||||||||||||
Regulatory Assets and Liabilities [Line Items] | |||||||||||||
Total regulatory assets | 13,424,000 | 15,411,000 | |||||||||||
CLECO POWER | |||||||||||||
Regulatory Assets and Liabilities [Line Items] | |||||||||||||
Total regulatory assets | 759,165,000 | 456,034,000 | |||||||||||
Regulatory liability | 95,544,000 | 180,565,000 | |||||||||||
CLECO POWER | Deferred storm restoration costs - Winter Storms Uri & Viola | |||||||||||||
Regulatory Assets and Liabilities [Line Items] | |||||||||||||
Capitalized storm restoration costs | 8,100,000 | $ 50,000,000 | |||||||||||
Capitalized storm restoration costs, amortization period | 12 months | ||||||||||||
CLECO POWER | Deferred storm restoration costs - Hurricane Ida | |||||||||||||
Regulatory Assets and Liabilities [Line Items] | |||||||||||||
Capitalized storm restoration costs | 52,100,000 | ||||||||||||
CLECO POWER | Corporate franchise tax, net | |||||||||||||
Regulatory Assets and Liabilities [Line Items] | |||||||||||||
Regulatory liability | $ 0 | 763,000 | |||||||||||
Regulatory liabilities amortization period (in years/months) | 12 months | ||||||||||||
CLECO POWER | Excess A D I T | LPSC | |||||||||||||
Regulatory Assets and Liabilities [Line Items] | |||||||||||||
Regulatory liability | $ 302,000,000 | 352,400,000 | |||||||||||
Regulatory liabilities amortization period (in years/months) | 3 years | ||||||||||||
CLECO POWER | AFUDC | |||||||||||||
Regulatory Assets and Liabilities [Line Items] | |||||||||||||
Regulatory liability | $ 0 | 4,218,000 | |||||||||||
CLECO POWER | Treasury Lock | |||||||||||||
Regulatory Assets and Liabilities [Line Items] | |||||||||||||
Number of treasury locks | treasury_rate_lock | 2 | ||||||||||||
Loss on settlements | $ 26,800,000 | ||||||||||||
CLECO POWER | Interest Rate Swap | |||||||||||||
Regulatory Assets and Liabilities [Line Items] | |||||||||||||
Loss on settlements | $ 3,300,000 | ||||||||||||
CLECO POWER | Acadia Unit 1 acquisition costs | |||||||||||||
Regulatory Assets and Liabilities [Line Items] | |||||||||||||
Regulatory assets amortization period | 30 years | ||||||||||||
Total regulatory assets | $ 1,913,000 | 2,019,000 | |||||||||||
CLECO POWER | Accumulated deferred fuel | |||||||||||||
Regulatory Assets and Liabilities [Line Items] | |||||||||||||
Percentage of total fuel cost regulated by the LPSC | 76.00% | ||||||||||||
Total regulatory assets | $ 56,826,000 | 28,194,000 | |||||||||||
CLECO POWER | Affordability study | |||||||||||||
Regulatory Assets and Liabilities [Line Items] | |||||||||||||
Regulatory assets amortization period | 10 years | ||||||||||||
Total regulatory assets | $ 13,600,000 | 13,094,000 | 0 | ||||||||||
CLECO POWER | AMI deferred revenue requirement | |||||||||||||
Regulatory Assets and Liabilities [Line Items] | |||||||||||||
Total regulatory assets | 2,045,000 | 2,591,000 | |||||||||||
CLECO POWER | Bayou Vista to Segura deferred revenue requirement | |||||||||||||
Regulatory Assets and Liabilities [Line Items] | |||||||||||||
Total regulatory assets | $ 1,400,000 | $ 1,392,000 | 0 | ||||||||||
CLECO POWER | Bayou Vista to Segura deferred revenue requirement | Forecast | Subsequent Event | |||||||||||||
Regulatory Assets and Liabilities [Line Items] | |||||||||||||
Regulatory assets amortization period | 12 months | ||||||||||||
CLECO POWER | Acquisition costs or transaction costs | Natural Gas Processing Plant | |||||||||||||
Regulatory Assets and Liabilities [Line Items] | |||||||||||||
Regulatory assets amortization period | 35 years | ||||||||||||
Total regulatory assets | $ 845,000 | 876,000 | |||||||||||
CLECO POWER | COVID-19 executive order | |||||||||||||
Regulatory Assets and Liabilities [Line Items] | |||||||||||||
Total regulatory assets | 2,953,000 | 2,953,000 | |||||||||||
CLECO POWER | Accelerated depreciation | RODEMACHER UNIT 2 | |||||||||||||
Regulatory Assets and Liabilities [Line Items] | |||||||||||||
Total regulatory assets | $ 6,931,000 | 1,333,000 | |||||||||||
CLECO POWER | Energy efficiency | |||||||||||||
Regulatory Assets and Liabilities [Line Items] | |||||||||||||
Regulatory assets amortization period | 4 years | ||||||||||||
Total regulatory assets | $ 1,645,000 | 2,820,000 | |||||||||||
CLECO POWER | Financing costs | |||||||||||||
Regulatory Assets and Liabilities [Line Items] | |||||||||||||
Total regulatory assets | 6,826,000 | 7,184,000 | |||||||||||
CLECO POWER | Financing costs | Treasury Lock | |||||||||||||
Regulatory Assets and Liabilities [Line Items] | |||||||||||||
Total regulatory assets | $ 7,400,000 | ||||||||||||
CLECO POWER | Financing costs | Interest Rate Swap | |||||||||||||
Regulatory Assets and Liabilities [Line Items] | |||||||||||||
Total regulatory assets | $ 2,900,000 | ||||||||||||
CLECO POWER | Lignite Mine closure costs | Lignite Mine | |||||||||||||
Regulatory Assets and Liabilities [Line Items] | |||||||||||||
Total regulatory assets | 136,980,000 | 0 | |||||||||||
CLECO POWER | Other | |||||||||||||
Regulatory Assets and Liabilities [Line Items] | |||||||||||||
Total regulatory assets | $ 11,224,000 | 4,229,000 | |||||||||||
CLECO POWER | Postretirement costs | |||||||||||||
Regulatory Assets and Liabilities [Line Items] | |||||||||||||
Regulatory assets amortization period | 6 years | ||||||||||||
Total regulatory assets | $ 117,773,000 | 165,437,000 | |||||||||||
CLECO POWER | Production O&M Expenses | |||||||||||||
Regulatory Assets and Liabilities [Line Items] | |||||||||||||
Regulatory assets amortization period | 3 years | ||||||||||||
Total regulatory assets | $ 9,700,000 | 0 | |||||||||||
Retail jurisdictional portion | 34,900,000 | ||||||||||||
CLECO POWER | Production O&M Expenses | MAXIMUM | |||||||||||||
Regulatory Assets and Liabilities [Line Items] | |||||||||||||
Total regulatory assets | 25,000,000 | ||||||||||||
CLECO POWER | St. Mary Clean Energy Center | |||||||||||||
Regulatory Assets and Liabilities [Line Items] | |||||||||||||
Regulatory assets amortization period | 4 years | ||||||||||||
Total regulatory assets | 6,089,000 | 3,479,000 | |||||||||||
CLECO POWER | Training costs | |||||||||||||
Regulatory Assets and Liabilities [Line Items] | |||||||||||||
Regulatory assets amortization period | 50 years | ||||||||||||
Total regulatory assets | 5,929,000 | 6,085,000 | |||||||||||
CLECO POWER | Tree trimming costs | |||||||||||||
Regulatory Assets and Liabilities [Line Items] | |||||||||||||
Total regulatory assets | $ 9,092,000 | 11,807,000 | |||||||||||
Maximum amount of costs approved to defer | $ 10,900,000 | ||||||||||||
CLECO POWER | Madison Unit 3 property taxes | |||||||||||||
Regulatory Assets and Liabilities [Line Items] | |||||||||||||
Regulatory assets amortization period | 12 months | ||||||||||||
Total regulatory assets | $ 8,362,000 | 0 | |||||||||||
CLECO POWER | Northlake Transmission Agreement, Under Collection | |||||||||||||
Regulatory Assets and Liabilities [Line Items] | |||||||||||||
Regulatory assets amortization period | 12 months | ||||||||||||
Total regulatory assets | 2,900,000 | $ 5,700,000 | |||||||||||
CLECO POWER | Other Deferred Costs, Primarily Base Rate Case | |||||||||||||
Regulatory Assets and Liabilities [Line Items] | |||||||||||||
Regulatory assets amortization period | 4 years | ||||||||||||
Total regulatory assets | 3,600,000 | ||||||||||||
CLECO POWER | Coughlin Pipeline Project, Deferred Revenue | |||||||||||||
Regulatory Assets and Liabilities [Line Items] | |||||||||||||
Regulatory assets amortization period | 4 years | ||||||||||||
Total regulatory assets | 4,700,000 | ||||||||||||
CLECO POWER | Production operations and maintenance expenses | |||||||||||||
Regulatory Assets and Liabilities [Line Items] | |||||||||||||
Total regulatory assets | $ 11,058,000 | 4,058,000 | |||||||||||
CLECO POWER | Production operations and maintenance expenses | DOLET HILLS POWER STATION | |||||||||||||
Regulatory Assets and Liabilities [Line Items] | |||||||||||||
Regulatory assets amortization period | 20 years | ||||||||||||
Total regulatory assets | $ 145,844,000 | $ 48,982,000 |
Jointly Owned Generation Unit_2
Jointly Owned Generation Units (Details) $ in Thousands | Dec. 31, 2021USD ($)MW |
Jointly Owned Utility Plant Interests [Line Items] | |
Utility plant in service | $ 142,600 |
Accumulated depreciation | 29,799 |
Construction work in progress | 874 |
RODEMACHER UNIT 2 | |
Jointly Owned Utility Plant Interests [Line Items] | |
Utility plant in service | 83,675 |
Accumulated depreciation | 19,783 |
Construction work in progress | $ 400 |
Ownership interest percentage | 30.00% |
Rated capacity (MW) | MW | 523 |
Ownership interest (MW) | MW | 157 |
BAYOU COVE | |
Jointly Owned Utility Plant Interests [Line Items] | |
Utility plant in service | $ 41,435 |
Accumulated depreciation | 6,809 |
Construction work in progress | $ 0 |
Ownership interest percentage | 75.00% |
Rated capacity (MW) | MW | 300 |
Ownership interest (MW) | MW | 225 |
BIG CAJUN II, UNIT 3 | |
Jointly Owned Utility Plant Interests [Line Items] | |
Utility plant in service | $ 17,490 |
Accumulated depreciation | 3,207 |
Construction work in progress | $ 474 |
Ownership interest percentage | 58.00% |
Rated capacity (MW) | MW | 588 |
Ownership interest (MW) | MW | 341 |
CLECO POWER | RODEMACHER UNIT 2 | |
Jointly Owned Utility Plant Interests [Line Items] | |
Utility plant in service | $ 157,855 |
Accumulated depreciation | 93,963 |
Construction work in progress | $ 400 |
Ownership interest percentage | 30.00% |
Rated capacity (MW) | MW | 523 |
Ownership interest (MW) | MW | 157 |
Fair Value Accounting and Fin_3
Fair Value Accounting and Financial Instruments - Carrying Value and Estimated Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Deferred debt issuance costs not included in the carrying value of long-term debt | $ 13,200 | $ 13,400 |
CARRYING VALUE* | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | 3,482,405 | 3,230,500 |
FAIR VALUE | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | 3,752,220 | 3,541,349 |
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 | 7,900 | 7,000 |
CLECO POWER | CARRYING VALUE* | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | 1,820,254 | 1,494,947 |
CLECO POWER | FAIR VALUE | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | $ 2,085,944 | $ 1,794,799 |
Fair Value Accounting and Fin_4
Fair Value Accounting and Financial Instruments - Fair Value of Financial Assets and Liabilities Measured On A Recurring Basis (Details) - Measured On A Recurring Basis - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Asset Description | ||
Money market funds | $ 145,033 | $ 86,001 |
Total assets | 239,474 | 99,405 |
Liability Description | ||
Total liabilities | 834 | 3,237 |
QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) | ||
Asset Description | ||
Money market funds | 145,033 | 0 |
Total assets | 145,033 | 0 |
Liability Description | ||
Total liabilities | 0 | 0 |
SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) | ||
Asset Description | ||
Money market funds | 0 | 86,001 |
Total assets | 87,464 | 94,600 |
Liability Description | ||
Total liabilities | 0 | 1,612 |
SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | ||
Asset Description | ||
Money market funds | 0 | 0 |
FTRs and other commodity derivatives | 6,977 | 4,805 |
Total assets | 6,977 | 4,805 |
Liability Description | ||
FTRs and other commodity derivatives | 834 | 1,625 |
Total liabilities | 834 | 1,625 |
CLECO POWER | ||
Asset Description | ||
Money market funds | 82,411 | 25,357 |
Total assets | 87,926 | 29,694 |
Liability Description | ||
Total liabilities | 597 | 1,121 |
CLECO POWER | QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) | ||
Asset Description | ||
Money market funds | 82,411 | 0 |
Total assets | 82,411 | 0 |
Liability Description | ||
Total liabilities | 0 | 0 |
CLECO POWER | SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) | ||
Asset Description | ||
Money market funds | 0 | 25,357 |
Total assets | 0 | 25,357 |
Liability Description | ||
Total liabilities | 0 | 0 |
CLECO POWER | SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | ||
Asset Description | ||
Money market funds | 0 | 0 |
FTRs and other commodity derivatives | 5,515 | 4,337 |
Total assets | 5,515 | 4,337 |
Liability Description | ||
FTRs and other commodity derivatives | 597 | 1,121 |
Total liabilities | 597 | 1,121 |
Financial Transmission Right | ||
Asset Description | ||
FTRs and other commodity derivatives | 6,977 | 4,805 |
Liability Description | ||
FTRs and other commodity derivatives | 834 | 1,625 |
Financial Transmission Right | QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) | ||
Asset Description | ||
FTRs and other commodity derivatives | 0 | 0 |
Liability Description | ||
FTRs and other commodity derivatives | 0 | 0 |
Financial Transmission Right | SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) | ||
Asset Description | ||
FTRs and other commodity derivatives | 0 | 0 |
Liability Description | ||
FTRs and other commodity derivatives | 0 | 0 |
Financial Transmission Right | SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | ||
Asset Description | ||
FTRs and other commodity derivatives | 6,977 | 4,805 |
Liability Description | ||
FTRs and other commodity derivatives | 834 | 1,625 |
Financial Transmission Right | CLECO POWER | ||
Asset Description | ||
FTRs and other commodity derivatives | 5,515 | 4,337 |
Liability Description | ||
FTRs and other commodity derivatives | 597 | 1,121 |
Financial Transmission Right | CLECO POWER | QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) | ||
Asset Description | ||
FTRs and other commodity derivatives | 0 | 0 |
Liability Description | ||
FTRs and other commodity derivatives | 0 | 0 |
Financial Transmission Right | CLECO POWER | SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) | ||
Asset Description | ||
FTRs and other commodity derivatives | 0 | 0 |
Liability Description | ||
FTRs and other commodity derivatives | 0 | 0 |
Financial Transmission Right | CLECO POWER | SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | ||
Asset Description | ||
FTRs and other commodity derivatives | 5,515 | 4,337 |
Liability Description | ||
FTRs and other commodity derivatives | 597 | 1,121 |
Natural gas derivatives | ||
Asset Description | ||
FTRs and other commodity derivatives | 87,464 | 8,599 |
Liability Description | ||
FTRs and other commodity derivatives | 0 | 1,612 |
Natural gas derivatives | QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) | ||
Asset Description | ||
FTRs and other commodity derivatives | 0 | 0 |
Liability Description | ||
FTRs and other commodity derivatives | 0 | 0 |
Natural gas derivatives | SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) | ||
Asset Description | ||
FTRs and other commodity derivatives | 87,464 | 8,599 |
Liability Description | ||
FTRs and other commodity derivatives | 0 | 1,612 |
Natural gas derivatives | SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | ||
Asset Description | ||
FTRs and other commodity derivatives | 0 | 0 |
Liability Description | ||
FTRs and other commodity derivatives | $ 0 | $ 0 |
Fair Value Accounting and Fin_5
Fair Value Accounting and Financial Instruments - Net Changes in Net Fair Value of FTR Assets and Liabilities Classified as Level 3 (Details) - Price risk derivatives - Financial Transmission Right - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Beginning balance | $ 3,180 | $ 5,778 |
Unrealized gains | 2,567 | 187 |
Purchases | 12,061 | 11,333 |
Settlements | (11,665) | (14,118) |
Ending balance | 6,143 | 3,180 |
CLECO POWER | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Beginning balance | 3,216 | 5,725 |
Unrealized gains | 2,828 | 450 |
Purchases | 9,871 | 9,378 |
Settlements | (10,997) | (12,337) |
Ending balance | $ 4,918 | $ 3,216 |
Fair Value Accounting and Fin_6
Fair Value Accounting and Financial Instruments - Significant Unobservable Inputs Used in Developing Fair Value of Level 3 Positions (Details) $ in Thousands | Dec. 31, 2021USD ($)$ / MW | Dec. 31, 2020USD ($)$ / MW |
MINIMUM | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Forward price range (usd per MWh) | $ / MW | (3.94) | (3.49) |
MAXIMUM | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Forward price range (usd per MWh) | $ / MW | 9.25 | 4.36 |
Measured On A Recurring Basis | SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets | $ | $ 6,977 | $ 4,805 |
Liabilities | $ | $ 834 | $ 1,625 |
CLECO POWER | MINIMUM | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Forward price range (usd per MWh) | $ / MW | (4.91) | (3.34) |
CLECO POWER | MAXIMUM | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Forward price range (usd per MWh) | $ / MW | 9.25 | 4.36 |
CLECO POWER | Measured On A Recurring Basis | SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets | $ | $ 5,515 | $ 4,337 |
Liabilities | $ | $ 597 | $ 1,121 |
Fair Value Accounting and Fin_7
Fair Value Accounting and Financial Instruments - Narrative (Details) | 12 Months Ended | |||
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2021USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Impairments for intangibles | $ 0 | $ 0 | ||
Intangible assets | $ 82,235,000 | 111,731,000 | ||
Energy risk management assets, current | Natural gas derivatives | Derivatives not designated as hedging instrument | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative asset, collateral | 0 | $ 0 | ||
Trade name | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Impairments for intangibles | 3,800,000 | |||
Intangible assets | $ 0 | $ 0 | ||
SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | Trade name | Discount rate | Discounted cash flow | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Measurement input | 0.08 |
Fair Value Accounting and Fin_8
Fair Value Accounting and Financial Instruments - Institutional Money Market Funds (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||
Cash equivalents | $ 145,011 | $ 80,712 |
Cleco Power | ||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||
Cash equivalents | 82,411 | 20,812 |
Restricted Cash and Cash Equivalents, Current | ||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||
Restricted cash and cash equivalents | 0 | 4,545 |
Restricted Cash and Cash Equivalents, Current | Cleco Power | ||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||
Restricted cash and cash equivalents | 0 | 4,545 |
Restricted Cash and Cash Equivalents, Noncurrent | ||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||
Restricted cash and cash equivalents | $ 22 | $ 744 |
Fair Value Accounting and Fin_9
Fair Value Accounting and Financial Instruments - Derivative Instruments as Recorded in Consolidated Balance Sheets (Details) - Derivatives not designated as hedging instrument - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
GROSS ASSET (LIABILITY) | ||
Commodity-related contracts, net | $ 93,607 | |
GROSS AMOUNTS OFFSET ON THE BALANCE SHEET | ||
Derivative, contract netting | 0 | |
NET ASSET (LIABILITY) ON THE BALANCE SHEET | ||
Net asset (liability) on the balance sheet | 93,607 | $ 10,167 |
GROSS AMOUNTS NOT OFFSET ON THE BALANCE SHEET (1) | ||
Collateral, assets | (15,000) | |
NET AMOUNT | ||
Net amount | 78,607 | |
CLECO POWER | ||
GROSS ASSET (LIABILITY) | ||
Commodity-related contracts, net | 4,918 | 3,216 |
Price risk derivatives | Energy risk management assets, current | ||
GROSS ASSET (LIABILITY) | ||
Derivative asset | 6,977 | |
GROSS AMOUNTS OFFSET ON THE BALANCE SHEET | ||
Derivative asset, contract netting | 0 | |
NET ASSET (LIABILITY) ON THE BALANCE SHEET | ||
Derivative asset | 6,977 | 4,805 |
GROSS AMOUNTS NOT OFFSET ON THE BALANCE SHEET (1) | ||
Collateral, assets | 0 | |
NET AMOUNT | ||
Derivative asset, net | 6,977 | |
Price risk derivatives | Energy risk management assets, current | CLECO POWER | ||
GROSS ASSET (LIABILITY) | ||
Derivative asset | 5,515 | 4,337 |
Price risk derivatives | Energy risk management liabilities, current | ||
GROSS ASSET (LIABILITY) | ||
Derivative liability | (834) | |
GROSS AMOUNTS OFFSET ON THE BALANCE SHEET | ||
Derivative liability, contract netting | 0 | |
NET ASSET (LIABILITY) ON THE BALANCE SHEET | ||
Derivative liability | (834) | (1,625) |
GROSS AMOUNTS NOT OFFSET ON THE BALANCE SHEET (1) | ||
Collateral, liability | 0 | |
NET AMOUNT | ||
Derivative liability, net | (834) | |
Price risk derivatives | Energy risk management liabilities, current | CLECO POWER | ||
GROSS ASSET (LIABILITY) | ||
Derivative liability | (597) | (1,121) |
Natural gas derivatives | Energy risk management assets, current | ||
GROSS ASSET (LIABILITY) | ||
Derivative asset | 37,061 | |
GROSS AMOUNTS OFFSET ON THE BALANCE SHEET | ||
Derivative asset, contract netting | (559) | |
NET ASSET (LIABILITY) ON THE BALANCE SHEET | ||
Derivative asset | 36,502 | 8,276 |
GROSS AMOUNTS NOT OFFSET ON THE BALANCE SHEET (1) | ||
Collateral, assets | (15,000) | |
NET AMOUNT | ||
Derivative asset, net | 21,502 | |
Natural gas derivatives | Energy risk management liabilities, current | ||
GROSS ASSET (LIABILITY) | ||
Derivative liability | (559) | |
GROSS AMOUNTS OFFSET ON THE BALANCE SHEET | ||
Derivative liability, contract netting | 559 | |
NET ASSET (LIABILITY) ON THE BALANCE SHEET | ||
Derivative liability | 0 | (828) |
GROSS AMOUNTS NOT OFFSET ON THE BALANCE SHEET (1) | ||
Collateral, liability | 0 | |
NET AMOUNT | ||
Derivative liability, net | 0 | |
Natural gas derivatives | Energy risk management assets, noncurrent | ||
GROSS ASSET (LIABILITY) | ||
Derivative asset | 50,962 | |
GROSS AMOUNTS OFFSET ON THE BALANCE SHEET | ||
Derivative asset, contract netting | 0 | |
NET ASSET (LIABILITY) ON THE BALANCE SHEET | ||
Derivative asset | 50,962 | 323 |
GROSS AMOUNTS NOT OFFSET ON THE BALANCE SHEET (1) | ||
Collateral, assets | 0 | |
NET AMOUNT | ||
Derivative asset, net | 50,962 | |
Natural gas derivatives | Other deferred credits, noncurrent | ||
GROSS ASSET (LIABILITY) | ||
Derivative liability | 0 | |
GROSS AMOUNTS OFFSET ON THE BALANCE SHEET | ||
Derivative liability, contract netting | 0 | |
NET ASSET (LIABILITY) ON THE BALANCE SHEET | ||
Derivative liability | 0 | $ (784) |
GROSS AMOUNTS NOT OFFSET ON THE BALANCE SHEET (1) | ||
Collateral, liability | 0 | |
NET AMOUNT | ||
Derivative liability, net | $ 0 |
Fair Value Accounting and Fi_10
Fair Value Accounting and Financial Instruments - Amount of Gain (Loss) Recognized in Income on Derivatives (Details) - Derivatives not designated as hedging instrument - Price risk derivatives - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Net gain (loss) recognized in income on derivatives | $ 140,704 | $ (6,413) | $ (7,814) |
Electric operations | Financial Transmission Right | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Amount of gain recognized in income on derivatives | 12,797 | 9,213 | 13,043 |
Purchased power | Financial Transmission Right | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Amount of loss recognized in income on derivatives | (6,237) | (3,467) | (15,685) |
Fuel Used For Electric Generation | Natural gas derivatives | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Amount of gain recognized in income on derivatives | 134,144 | ||
Amount of loss recognized in income on derivatives | (12,159) | (5,172) | |
Accumulated Deferred Fuel | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Unrealized gains (losses) associated with FTRs | 2,800 | 500 | (1,700) |
CLECO POWER | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Net gain (loss) recognized in income on derivatives | 2,437 | 2,410 | 6,981 |
CLECO POWER | Electric operations | Financial Transmission Right | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Amount of gain recognized in income on derivatives | 12,797 | 9,213 | 13,047 |
CLECO POWER | Purchased power | Financial Transmission Right | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Amount of loss recognized in income on derivatives | (10,360) | (6,803) | (6,066) |
CLECO POWER | Accumulated Deferred Fuel | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Unrealized gains (losses) associated with FTRs | $ 2,800 | $ 500 | $ (900) |
Fair Value Accounting and Fi_11
Fair Value Accounting and Financial Instruments - Commodity Derivative Contracts (Details) MWh in Thousands, MMBTU in Thousands | 12 Months Ended | |||
Dec. 31, 2021MWh | Dec. 31, 2021MMBTU | Dec. 31, 2020MWh | Dec. 31, 2020MMBTU | |
Fair Value [Line Items] | ||||
Volume outstanding (MWh / MMBtu) | 14,055 | 109,306 | 15,269 | 73,000 |
Cleco Power | ||||
Fair Value [Line Items] | ||||
Volume outstanding (MWh / MMBtu) | 8,899 | 9,521 |
Debt - Total Indebtedness (Deta
Debt - Total Indebtedness (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Jul. 14, 2020 |
Debt Instrument [Line Items] | |||
Finance leases classified as long-term debt due within one year | $ (755) | $ (682) | |
Unamortized debt issuance costs | (13,200) | (13,400) | |
Total long-term debt and finance leases, net | 3,390,033 | 3,165,387 | |
Cleco Power | |||
Debt Instrument [Line Items] | |||
Total bonds | 1,700,000 | 1,375,000 | |
Barge lease obligations | 14,562 | 15,244 | |
Gross amount of long-term debt and finance leases | 1,839,562 | 1,515,244 | |
Long-term debt due within one year | (25,000) | 0 | |
Finance leases classified as long-term debt due within one year | (755) | (682) | |
Unamortized debt discount | (4,746) | (5,053) | |
Unamortized debt issuance costs | (8,207) | (7,252) | |
Unamortized debt issuance costs | (7,900) | (7,000) | |
Total long-term debt and finance leases, net | $ 1,800,854 | 1,502,257 | |
Cleco Power | Senior notes, 2.94%, due 2022 | |||
Debt Instrument [Line Items] | |||
Interest rate | 2.94% | ||
Total bonds | $ 25,000 | 25,000 | |
Cleco Power | Senior notes, 3.08%, due 2023 | |||
Debt Instrument [Line Items] | |||
Interest rate | 3.08% | ||
Total bonds | $ 100,000 | 100,000 | |
Cleco Power | Senior notes, 3.17%, due 2024 | |||
Debt Instrument [Line Items] | |||
Interest rate | 3.17% | ||
Total bonds | $ 50,000 | 50,000 | |
Cleco Power | Senior notes, 3.68%, due 2025 | |||
Debt Instrument [Line Items] | |||
Interest rate | 3.68% | ||
Total bonds | $ 75,000 | 75,000 | |
Cleco Power | Senior notes, 3.47%, due 2026 | |||
Debt Instrument [Line Items] | |||
Interest rate | 3.47% | ||
Total bonds | $ 130,000 | 130,000 | |
Cleco Power | Senior notes, 4.33%, due 2027 | |||
Debt Instrument [Line Items] | |||
Interest rate | 4.33% | ||
Total bonds | $ 50,000 | 50,000 | |
Cleco Power | Senior notes, 3.57%, due 2028 | |||
Debt Instrument [Line Items] | |||
Interest rate | 3.57% | ||
Total bonds | $ 200,000 | 200,000 | |
Cleco Power | Senior notes, 6.50%, due 2035 | |||
Debt Instrument [Line Items] | |||
Interest rate | 6.50% | ||
Total bonds | $ 295,000 | 295,000 | |
Cleco Power | Senior notes, 6.00%, due 2040 | |||
Debt Instrument [Line Items] | |||
Interest rate | 6.00% | ||
Total bonds | $ 250,000 | 250,000 | |
Cleco Power | Senior notes, 5.12%, due 2041 | |||
Debt Instrument [Line Items] | |||
Interest rate | 5.12% | ||
Total bonds | $ 100,000 | 100,000 | |
Cleco Power | Senior notes, floating rate, due 2023 | |||
Debt Instrument [Line Items] | |||
Total bonds | $ 325,000 | 0 | |
Cleco Power | Series A GO Zone bonds, 2.50%, due 2038, mandatory tender in 2025 | |||
Debt Instrument [Line Items] | |||
Interest rate | 2.50% | ||
Total bonds | $ 50,000 | 50,000 | |
Cleco Power | Series B GO Zone bonds, 4.25%, due 2038 | |||
Debt Instrument [Line Items] | |||
Interest rate | 4.25% | ||
Total bonds | $ 50,000 | 50,000 | |
Cleco Power | Bank term loan, variable rate, due 2024 | |||
Debt Instrument [Line Items] | |||
Bank term loan, variable rate, due 2024 | 125,000 | 125,000 | |
Cleco Holdings | |||
Debt Instrument [Line Items] | |||
Long-term debt due within one year | (67,700) | (66,000) | |
Unamortized debt issuance costs | (10,200) | (11,700) | |
Unamortized debt issuance costs | (5,271) | (6,423) | |
Fair value adjustment | 112,150 | 119,553 | |
Deferred debt issuance costs eliminated as a result of the 2016 Merger | $ 4,900 | 5,300 | |
Cleco Holdings | Senior notes, 3.250%, due 2023 | |||
Debt Instrument [Line Items] | |||
Interest rate | 3.25% | ||
Total bonds | $ 165,000 | 165,000 | |
Cleco Holdings | Senior notes, 3.743%, due 2026 | |||
Debt Instrument [Line Items] | |||
Interest rate | 3.743% | ||
Total bonds | $ 535,000 | 535,000 | |
Cleco Holdings | Senior notes, 3.375%, due 2029 | |||
Debt Instrument [Line Items] | |||
Interest rate | 3.375% | 3.375% | |
Total bonds | $ 300,000 | 300,000 | |
Cleco Holdings | Senior notes, 4.973%, due 2046 | |||
Debt Instrument [Line Items] | |||
Interest rate | 4.973% | ||
Total bonds | $ 350,000 | 350,000 | |
Cleco Holdings | Bank term loan, variable rate, due 2024 | |||
Debt Instrument [Line Items] | |||
Bank term loan, variable rate, due 2024 | $ 200,000 | $ 266,000 |
Debt - Future Amounts Payable U
Debt - Future Amounts Payable Under Long-Term Debt Agreements (Details) - Long-term Debt Agreements $ in Thousands | Dec. 31, 2021USD ($) |
For the year ending Dec. 31, | |
2022 | $ 25,000 |
2023 | 590,000 |
2024 | 375,000 |
2025 | 75,000 |
2026 | 665,000 |
Thereafter | 1,645,000 |
CLECO POWER | |
For the year ending Dec. 31, | |
2022 | 25,000 |
2023 | 425,000 |
2024 | 175,000 |
2025 | 75,000 |
2026 | 130,000 |
Thereafter | $ 995,000 |
Debt - Principal Amounts Payabl
Debt - Principal Amounts Payable Under Finance Lease Agreement (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Years ending Dec. 31, | |
2022 | $ 755 |
2023 | 836 |
2024 | 925 |
2025 | 1,023 |
2026 | 1,133 |
Thereafter | 9,890 |
Cleco Power | |
Years ending Dec. 31, | |
2022 | 755 |
2023 | 836 |
2024 | 925 |
2025 | 1,023 |
2026 | 1,133 |
Thereafter | $ 9,890 |
Debt - Narrative (Details)
Debt - Narrative (Details) | Sep. 10, 2021USD ($) | May 21, 2021USD ($) | Feb. 04, 2019USD ($) | Jan. 31, 2019USD ($) | Dec. 31, 2021USD ($)facility | Dec. 31, 2020USD ($) | May 15, 2020 |
Debt [Line Items] | |||||||
Short-term debt | $ 0 | $ 75,000,000 | |||||
Long-term debt outstanding | 3,480,000,000 | ||||||
Long term debt And finance lease obligations current | 93,500,000 | ||||||
Long-term debt outstanding, due within one year | $ 93,455,000 | 66,682,000 | |||||
Number of revolving credit facilities | facility | 2 | ||||||
Cleco Cajun Transaction commitments | |||||||
Debt [Line Items] | |||||||
Long-term debt outstanding, due within one year | $ 67,700,000 | ||||||
Loans Payable | |||||||
Debt [Line Items] | |||||||
Aggregate principal amount | $ 266,000,000 | ||||||
Loans Payable | LIBOR | |||||||
Debt [Line Items] | |||||||
Basis spread on variable rate | 1.625% | ||||||
Loans Payable | ABR | |||||||
Debt [Line Items] | |||||||
Basis spread on variable rate | 0.625% | ||||||
NRG South Central | |||||||
Debt [Line Items] | |||||||
Repayments of long-term debt | $ 400,000,000 | $ 400,000,000 | |||||
CLECO POWER | |||||||
Debt [Line Items] | |||||||
Short-term debt | 0 | 75,000,000 | |||||
Long-term debt outstanding | 1,830,000,000 | ||||||
Long term debt And finance lease obligations current | 25,800,000 | ||||||
Long-term debt due within one year | 25,000,000 | 0 | |||||
Long-term debt outstanding, due within one year | $ 25,755,000 | 682,000 | |||||
CLECO POWER | MAXIMUM | |||||||
Debt [Line Items] | |||||||
Debt to capital ratio | 0.650 | 0.650 | |||||
CLECO POWER | Line of Credit | |||||||
Debt [Line Items] | |||||||
Maximum borrowing capacity | $ 300,000,000 | ||||||
Borrowings outstanding | $ 0 | ||||||
CLECO POWER | Line of Credit | Revolving Credit Facility | |||||||
Debt [Line Items] | |||||||
Commitment fees | 0.15% | ||||||
Interest rate, potential additional interest | 0.125% | ||||||
Commitment fee, potential additional fee | 0.025% | ||||||
CLECO POWER | Line of Credit | LIBOR | Revolving Credit Facility | |||||||
Debt [Line Items] | |||||||
Basis spread on variable rate | 1.25% | ||||||
CLECO POWER | Line of Credit | ABR | Revolving Credit Facility | |||||||
Debt [Line Items] | |||||||
Basis spread on variable rate | 0.25% | ||||||
CLECO POWER | Loans Payable | |||||||
Debt [Line Items] | |||||||
Aggregate principal amount | $ 125,000,000 | ||||||
CLECO POWER | Loans Payable | LIBOR | |||||||
Debt [Line Items] | |||||||
Basis spread on variable rate | 1.25% | ||||||
CLECO POWER | Loans Payable | ABR | |||||||
Debt [Line Items] | |||||||
Basis spread on variable rate | 0.25% | ||||||
CLECO POWER | Senior Notes | |||||||
Debt [Line Items] | |||||||
Aggregate principal amount | $ 325,000,000 | ||||||
Redemption price, percentage | 100.00% | ||||||
CLECO POWER | Senior Notes | LIBOR | |||||||
Debt [Line Items] | |||||||
Basis spread on variable rate | 0.50% | ||||||
Cleco Holdings | |||||||
Debt [Line Items] | |||||||
Long-term debt due within one year | $ 67,700,000 | $ 66,000,000 | |||||
Debt to capital ratio | 0.65 | ||||||
Cleco Holdings | MAXIMUM | |||||||
Debt [Line Items] | |||||||
Debt to capital ratio | 0.650 | ||||||
Cleco Holdings | Revolving Credit Facility | |||||||
Debt [Line Items] | |||||||
Maximum borrowing capacity | $ 175,000,000 | ||||||
Cleco Holdings | Line of Credit | |||||||
Debt [Line Items] | |||||||
Maximum borrowing capacity | 175,000,000 | ||||||
Borrowings outstanding | 0 | ||||||
Line of credit facility, remaining borrowing capacity | $ 475,000,000 | ||||||
Cleco Holdings | Line of Credit | Revolving Credit Facility | |||||||
Debt [Line Items] | |||||||
Commitment fees | 0.275% | ||||||
Interest rate, potential additional interest | 0.125% | ||||||
Commitment fee, potential additional fee | 0.05% | ||||||
Cleco Holdings | Line of Credit | LIBOR | Revolving Credit Facility | |||||||
Debt [Line Items] | |||||||
Basis spread on variable rate | 1.625% | ||||||
Cleco Holdings | Line of Credit | ABR | Revolving Credit Facility | |||||||
Debt [Line Items] | |||||||
Basis spread on variable rate | 0.625% | ||||||
Line of Credit | |||||||
Debt [Line Items] | |||||||
Maximum borrowing capacity | $ 475,000,000 | ||||||
Line of Credit | CLECO POWER | |||||||
Debt [Line Items] | |||||||
Maximum borrowing capacity | $ 300,000,000 |
Debt - Cumulative Minimum Princ
Debt - Cumulative Minimum Principal Amounts Committed to be Repaid (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Debt Disclosure [Abstract] | |
2019 | $ 66,700 |
2020 | 133,300 |
2021 | 200,000 |
2022 | 267,700 |
2023 | 333,300 |
2024 | $ 400,000 |
Pension Plan and Employee Ben_3
Pension Plan and Employee Benefits - Narrative (Details) | 1 Months Ended | 12 Months Ended | |||||
Sep. 30, 2021USD ($) | Dec. 31, 2020USD ($) | Sep. 30, 2019USD ($) | Dec. 31, 2022USD ($) | Dec. 31, 2021USD ($)bonus | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |||||||
Percent of employees' gross pay, one time benefit (up to) | 30.00% | ||||||
401(k) Plan expense, additional cost | $ 200,000 | ||||||
PENSION BENEFITS | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Consecutive calendar years | 5 years | ||||||
Most recent period of employment | 10 years | ||||||
Employer contributions | $ 15,800,000 | $ 12,300,000 | $ 0 | $ 15,750,000 | |||
Estimated pension contributions required through 2026 | $ 5,400,000 | ||||||
Defined benefit plan, interest crediting rate | 3.15% | 3.06% | 3.15% | ||||
Net actuarial gain (loss) occurring during the period (less than in 2021 for Other Benefits) | $ 26,925,000 | $ (30,126,000) | |||||
Special/contractual termination benefits, percent increase in benefits | 10.00% | ||||||
Special/contractual termination benefits | 3,270,000 | 0 | $ 0 | ||||
Net periodic benefit cost | $ 30,391,000 | $ 21,894,000 | $ 12,175,000 | ||||
Expected return on plan assets | 5.00% | 5.91% | 6.55% | ||||
Actual return on plan assets | 7.14% | 15.89% | |||||
OTHER BENEFITS | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Employer contributions | $ 0 | $ 0 | |||||
Net actuarial gain (loss) occurring during the period (less than in 2021 for Other Benefits) | 81,000 | (4,221,000) | |||||
Special/contractual termination benefits | 0 | 0 | $ 0 | ||||
Net periodic benefit cost | 5,231,000 | 5,193,000 | 2,858,000 | ||||
Assets set aside in a trust | $ 0 | ||||||
Assumed health care cost trend rates for next fiscal year | 5.00% | ||||||
Ultimate health care trend rate | 5.00% | ||||||
SERP BENEFITS | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Consecutive calendar years | 5 years | ||||||
Most recent period of employment | 60 months | ||||||
Net actuarial gain (loss) occurring during the period (less than in 2021 for Other Benefits) | $ 1,932,000 | (9,621,000) | |||||
Net periodic benefit cost | $ 3,783,000 | 6,302,000 | 5,040,000 | ||||
Number of highest cash bonuses | bonus | 5 | ||||||
CLECO POWER | PENSION BENEFITS | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Special/contractual termination benefits | $ 2,400,000 | ||||||
CLECO POWER | OTHER BENEFITS | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Net periodic benefit cost | $ 4,700,000 | 4,800,000 | 3,100,000 | ||||
CLECO POWER | SERP BENEFITS | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Net periodic benefit cost | 600,000 | 1,000,000 | 800,000 | ||||
Support Group | PENSION BENEFITS | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Special/contractual termination benefits | $ 900,000 | ||||||
Net periodic benefit cost | $ 4,500,000 | $ 3,500,000 | $ 2,200,000 | ||||
Forecast | PENSION BENEFITS | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Expected return on plan assets | 5.25% | ||||||
Increase in expected pension costs | $ 14,300,000 |
Pension Plan and Employee Ben_4
Pension Plan and Employee Benefits - Benefit Obligation, Plan Assets, and Funded Status (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Dec. 31, 2020 | Sep. 30, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
PENSION BENEFITS | |||||
Change in benefit obligation | |||||
Benefit obligation at beginning of period | $ 686,384 | $ 610,323 | |||
Service cost | 10,516 | 9,820 | $ 8,414 | ||
Interest cost | 18,668 | 20,816 | 22,485 | ||
Plan participants’ contributions | 0 | 0 | |||
Actuarial (gain) loss | (9,823) | 71,708 | |||
Expenses paid | (3,306) | (2,661) | |||
Benefits paid | (25,292) | (23,622) | |||
Special/contractual termination benefits | 3,270 | 0 | 0 | ||
Benefit obligation at end of period | $ 686,384 | 680,417 | 686,384 | 610,323 | |
Change in plan assets | |||||
Fair value of plan assets at beginning of period | 516,120 | 460,097 | |||
Actual return on plan assets | 39,905 | 66,557 | |||
Employer contributions | 15,800 | $ 12,300 | 0 | 15,750 | |
Expenses paid | (3,306) | (2,662) | |||
Benefits paid | (25,292) | (23,622) | |||
Fair value of plan assets at end of period | 516,120 | 527,427 | 516,120 | 460,097 | |
Unfunded status | (170,264) | (152,990) | (170,264) | ||
Accumulated benefit obligation | 636,199 | 640,490 | 636,199 | ||
OTHER BENEFITS | |||||
Change in benefit obligation | |||||
Benefit obligation at beginning of period | 56,331 | 52,722 | |||
Service cost | 2,425 | 2,153 | 1,191 | ||
Interest cost | 1,283 | 1,651 | 1,646 | ||
Plan participants’ contributions | 0 | 1,289 | |||
Actuarial (gain) loss | (81) | 4,221 | |||
Expenses paid | 0 | 0 | |||
Benefits paid | (4,701) | (5,705) | |||
Special/contractual termination benefits | 0 | 0 | 0 | ||
Benefit obligation at end of period | 56,331 | 55,257 | 56,331 | 52,722 | |
Change in plan assets | |||||
Fair value of plan assets at beginning of period | 0 | 0 | |||
Actual return on plan assets | 0 | 0 | |||
Employer contributions | 0 | 0 | |||
Expenses paid | 0 | 0 | |||
Benefits paid | 0 | 0 | |||
Fair value of plan assets at end of period | 0 | 0 | 0 | 0 | |
Unfunded status | (56,331) | (55,257) | (56,331) | ||
SERP BENEFITS | |||||
Change in benefit obligation | |||||
Benefit obligation at beginning of period | 97,225 | 89,128 | |||
Service cost | 232 | 399 | 330 | ||
Interest cost | 2,538 | 2,932 | 3,326 | ||
Actuarial (gain) loss | (1,932) | 9,621 | |||
Benefits paid | (4,884) | (4,590) | |||
Plan amendments | 0 | (265) | |||
Benefit obligation at end of period | 97,225 | 93,179 | 97,225 | $ 89,128 | |
Change in plan assets | |||||
Accumulated benefit obligation | $ 97,225 | $ 93,179 | $ 97,225 |
Pension Plan and Employee Ben_5
Pension Plan and Employee Benefits - Amounts Recognized in Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
PENSION BENEFITS | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial (gain) loss occurring during period | $ (26,925) | $ 30,126 |
Net actuarial loss amortized during period | 20,739 | 16,292 |
Prior service credit amortized during period | 0 | (60) |
Net actuarial loss | 117,773 | 165,437 |
OTHER BENEFITS | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial (gain) loss occurring during period | (81) | 4,221 |
Net actuarial loss amortized during period | 1,523 | 1,389 |
Prior service credit amortized during period | 0 | 0 |
Net actuarial loss | 22,785 | 21,342 |
SERP BENEFITS | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial (gain) loss occurring during period | (1,932) | 9,621 |
Net actuarial loss amortized during period | 1,228 | 3,185 |
Prior service credit amortized during period | (215) | (215) |
Net actuarial loss | 31,526 | 34,825 |
Prior service credit | $ (1,514) | $ (1,728) |
Pension Plan and Employee Ben_6
Pension Plan and Employee Benefits - Components of Periodic Benefit Costs and Weighted-Average Assumptions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
PENSION BENEFITS | |||
Components of periodic benefit costs | |||
Service cost | $ 10,516 | $ 9,820 | $ 8,414 |
Interest cost | 18,668 | 20,816 | 22,485 |
Expected return on plan assets | (22,801) | (24,974) | (26,502) |
Amortizations | |||
Prior service credit | 0 | (60) | (71) |
Net loss | 20,738 | 16,292 | 7,849 |
Net periodic benefit cost | 27,121 | 21,894 | 12,175 |
Special/contractual termination benefits | 3,270 | 0 | 0 |
Total benefit cost | $ 30,391 | $ 21,894 | $ 12,175 |
Weighted-average assumptions used to determine the benefit obligation | |||
Discount rate | 2.98% | 2.74% | |
Rate of compensation increase | 2.73% | 2.75% | |
Weighted-average assumptions used to determine the net benefit cost | |||
Discount rate | 2.74% | 3.43% | 4.35% |
Expected return on plan assets | 5.00% | 5.91% | 6.55% |
Rate of compensation increase | 2.71% | 2.75% | 2.81% |
OTHER BENEFITS | |||
Components of periodic benefit costs | |||
Service cost | $ 2,425 | $ 2,153 | $ 1,191 |
Interest cost | 1,283 | 1,651 | 1,646 |
Expected return on plan assets | 0 | 0 | 0 |
Amortizations | |||
Prior service credit | 0 | 0 | 0 |
Net loss | 1,523 | 1,389 | 21 |
Net periodic benefit cost | 5,231 | 5,193 | 2,858 |
Special/contractual termination benefits | 0 | 0 | 0 |
Total benefit cost | $ 5,231 | $ 5,193 | $ 2,858 |
Weighted-average assumptions used to determine the benefit obligation | |||
Discount rate | 2.82% | 2.39% | |
Weighted-average assumptions used to determine the net benefit cost | |||
Discount rate | 2.39% | 3.25% | 4.16% |
SERP BENEFITS | |||
Components of periodic benefit costs | |||
Service cost | $ 232 | $ 399 | $ 330 |
Interest cost | 2,538 | 2,932 | 3,326 |
Amortizations | |||
Prior service credit | (215) | (215) | (160) |
Net loss | 1,228 | 3,186 | 1,544 |
Total benefit cost | $ 3,783 | $ 6,302 | $ 5,040 |
Weighted-average assumptions used to determine the benefit obligation | |||
Discount rate | 2.95% | 2.64% | |
Weighted-average assumptions used to determine the net benefit cost | |||
Discount rate | 2.64% | 3.37% | 4.34% |
Rate of compensation increase | 5.00% |
Pension Plan and Employee Ben_7
Pension Plan and Employee Benefits - Amounts Recognized in Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Defined Benefit Plan Disclosure [Line Items] | ||
Non-current | $ 291,606 | $ 314,653 |
OTHER BENEFITS | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Current | 5,181 | 4,463 |
Non-current | 50,093 | 51,868 |
SERP BENEFITS | ||
Defined Benefit Plan Disclosure [Line Items] | ||
SERP, current | 4,654 | 4,703 |
SERP, noncurrent | 88,523 | 92,522 |
CLECO POWER | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Non-current | 205,214 | 230,825 |
CLECO POWER | OTHER BENEFITS | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Current | 4,432 | 3,865 |
Non-current | 39,315 | 40,734 |
CLECO POWER | SERP BENEFITS | ||
Defined Benefit Plan Disclosure [Line Items] | ||
SERP, current | 679 | 711 |
SERP, noncurrent | $ 12,909 | $ 19,828 |
Pension Plan and Employee Ben_8
Pension Plan and Employee Benefits - Fair Value of Pension Plan Assets (Details) - PENSION BENEFITS - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Defined Benefit Plan Disclosure [Line Items] | |||
Total net assets | $ 527,427 | $ 516,120 | $ 460,097 |
Cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total net assets | 7,433 | 19,567 | |
Government securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total net assets | 75,815 | 26,863 | |
Mutual funds, Domestic | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total net assets | 106,694 | 107,055 | |
Mutual funds, International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total net assets | 56,169 | 60,104 | |
Real estate funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total net assets | 39,091 | 35,962 | |
Corporate debt | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total net assets | 166,435 | 192,261 | |
Interest accrual | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total net assets | 2,019 | 2,264 | |
Defined Benefit Plan, Common Collective Trust | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total net assets | $ 73,771 | $ 72,044 | |
Defined Benefit Plan, Plan Assets, Fair Value by Hierarchy and NAV [Extensible Enumeration] | Fair Value Measured at Net Asset Value Per Share [Member] | Fair Value Measured at Net Asset Value Per Share [Member] | |
Fair Value, Inputs, Level 1, 2 and 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total net assets | $ 451,637 | $ 441,812 | |
QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total net assets | 162,863 | 167,159 | |
QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) | Cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total net assets | 0 | 0 | |
QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) | Government securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total net assets | 0 | 0 | |
QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) | Mutual funds, Domestic | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total net assets | 106,694 | 107,055 | |
QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) | Mutual funds, International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total net assets | 56,169 | 60,104 | |
QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) | Real estate funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total net assets | 0 | 0 | |
QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) | Corporate debt | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total net assets | 0 | 0 | |
SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total net assets | 249,683 | 238,691 | |
SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) | Cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total net assets | 7,433 | 19,567 | |
SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) | Government securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total net assets | 75,815 | 26,863 | |
SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) | Mutual funds, Domestic | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total net assets | 0 | 0 | |
SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) | Mutual funds, International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total net assets | 0 | 0 | |
SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) | Real estate funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total net assets | 0 | 0 | |
SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) | Corporate debt | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total net assets | 166,435 | 192,261 | |
SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total net assets | 39,091 | 35,962 | |
SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | Cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total net assets | 0 | 0 | |
SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | Government securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total net assets | 0 | 0 | |
SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | Mutual funds, Domestic | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total net assets | 0 | 0 | |
SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | Mutual funds, International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total net assets | 0 | 0 | |
SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | Real estate funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total net assets | 39,091 | 35,962 | $ 18,017 |
SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | Corporate debt | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total net assets | $ 0 | $ 0 |
Pension Plan and Employee Ben_9
Pension Plan and Employee Benefits - Unobservable Input Reconciliation (Details) - PENSION BENEFITS - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation[Roll Forward] | ||
Fair value of plan assets at beginning of period | $ 516,120 | $ 460,097 |
Fair value of plan assets at end of period | 527,427 | 516,120 |
SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation[Roll Forward] | ||
Fair value of plan assets at beginning of period | 35,962 | |
Fair value of plan assets at end of period | 39,091 | 35,962 |
Real estate funds | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation[Roll Forward] | ||
Fair value of plan assets at beginning of period | 35,962 | |
Fair value of plan assets at end of period | 39,091 | 35,962 |
Real estate funds | SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation[Roll Forward] | ||
Fair value of plan assets at beginning of period | 35,962 | 18,017 |
Realized gains (losses) | 503 | 251 |
Unrealized gains (losses) | 3,524 | (1,603) |
Purchases | 1,865 | 20,893 |
Sales | (2,763) | (1,596) |
Fair value of plan assets at end of period | $ 39,091 | $ 35,962 |
Pension Plan and Employee Be_10
Pension Plan and Employee Benefits - Pension Plan Investment Objectives (Details) - PENSION BENEFITS | Dec. 31, 2021 |
Return-seeking | |
Defined Benefit Plan Disclosure [Line Items] | |
Percent of total plan assets | 50.00% |
Domestic equity | |
Defined Benefit Plan Disclosure [Line Items] | |
Percent of total plan assets | 19.00% |
International equity | |
Defined Benefit Plan Disclosure [Line Items] | |
Percent of total plan assets | 20.00% |
Multi-asset credit | |
Defined Benefit Plan Disclosure [Line Items] | |
Percent of total plan assets | 6.00% |
Real estate | |
Defined Benefit Plan Disclosure [Line Items] | |
Percent of total plan assets | 5.00% |
Liability hedging* | |
Defined Benefit Plan Disclosure [Line Items] | |
Percent of total plan assets | 50.00% |
MINIMUM | Return-seeking | |
Defined Benefit Plan Disclosure [Line Items] | |
Percent of total plan assets | 45.00% |
MINIMUM | Liability hedging* | |
Defined Benefit Plan Disclosure [Line Items] | |
Percent of total plan assets | 45.00% |
MAXIMUM | Return-seeking | |
Defined Benefit Plan Disclosure [Line Items] | |
Percent of total plan assets | 55.00% |
MAXIMUM | Liability hedging* | |
Defined Benefit Plan Disclosure [Line Items] | |
Percent of total plan assets | 55.00% |
Pension Plan and Employee Be_11
Pension Plan and Employee Benefits - Projected Benefit Payments and Projected Receipts (Details) $ in Thousands | Dec. 31, 2021USD ($) |
PENSION BENEFITS | |
For the year ending Dec. 31, | |
2022 | $ 29,239 |
2023 | 29,833 |
2024 | 30,566 |
2025 | 31,578 |
2026 | 32,339 |
Next five years | 170,382 |
OTHER BENEFITS | |
For the year ending Dec. 31, | |
2022 | 5,253 |
2023 | 5,079 |
2024 | 4,902 |
2025 | 4,759 |
2026 | 4,682 |
Next five years | 21,553 |
SERP BENEFITS | |
For the year ending Dec. 31, | |
2022 | 4,722 |
2023 | 4,840 |
2024 | 4,908 |
2025 | 5,054 |
2026 | 5,175 |
Next five years | $ 25,391 |
Pension Plan and Employee Be_12
Pension Plan and Employee Benefits - 401 (K) Plans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Defined Contribution Plan Disclosure [Line Items] | |||
401(k) Plan expense | $ 9,366 | $ 9,685 | $ 7,861 |
Support Group | |||
Defined Contribution Plan Disclosure [Line Items] | |||
401(k) Plan expense | $ 4,350 | $ 4,424 | $ 3,408 |
Income Taxes - Effective Tax Ra
Income Taxes - Effective Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Effective Income Tax Rate [Line Items] | |||
Income before tax | $ 208,077 | $ 158,018 | $ 195,830 |
Statutory rate | 21.00% | 21.00% | 21.00% |
Tax expense at federal statutory rate | $ 43,696 | $ 33,184 | $ 41,124 |
Increase (decrease) | |||
Plant differences, including AFUDC flowthrough | (356) | 5,100 | (4,687) |
State income taxes, net of federal benefit | 9,619 | 7,190 | 9,565 |
Return to accrual adjustment | (3,862) | 7,218 | (3,963) |
Amortization of excess ADIT | (37,254) | (16,667) | 0 |
Other, net | 1,268 | (307) | 1,126 |
Total tax expense | $ 13,111 | $ 35,718 | $ 43,165 |
Effective rate | 6.30% | 22.60% | 22.00% |
CLECO POWER | |||
Effective Income Tax Rate [Line Items] | |||
Income before tax | $ 124,735 | $ 123,454 | $ 193,714 |
Statutory rate | 21.00% | 21.00% | 21.00% |
Tax expense at federal statutory rate | $ 26,194 | $ 25,925 | $ 40,680 |
Increase (decrease) | |||
Plant differences, including AFUDC flowthrough | (356) | 5,100 | (4,687) |
State income taxes, net of federal benefit | 6,343 | 6,303 | 11,683 |
Return to accrual adjustment | (3,831) | 7,082 | (2,008) |
Amortization of excess ADIT | (37,254) | (16,667) | 0 |
Other, net | (449) | (944) | (216) |
Total tax expense | $ (9,353) | $ 26,799 | $ 45,452 |
Effective rate | (7.50%) | 21.70% | 23.50% |
Income Taxes - Current and Defe
Income Taxes - Current and Deferred Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Components of Income Tax Expense [Line Items] | |||
Current federal income tax (benefit) expense | $ (2) | $ (2,634) | $ 1,600 |
Deferred federal income tax (benefit) expense | (9,581) | 21,865 | 37,963 |
Amortization of accumulated deferred investment tax credits | (142) | (159) | (191) |
Total federal income tax (benefit) expense | (9,725) | 19,072 | 39,372 |
Current state income tax (benefit) expense | (699) | 2,636 | 1,675 |
Deferred state income tax expense | 23,535 | 14,010 | 2,118 |
Total state income tax expense | 22,836 | 16,646 | 3,793 |
Total tax expense | 13,111 | 35,718 | 43,165 |
Items charged or credited directly to member’s equity | |||
Total tax expense (benefit) from items charged directly to member’s equity | 394 | (2,922) | (6,808) |
Total federal and state income tax expense | 13,505 | 32,796 | 36,357 |
Federal deferred | |||
Items charged or credited directly to member’s equity | |||
Total tax expense (benefit) from items charged directly to member’s equity | 514 | (2,202) | (5,130) |
State deferred | |||
Items charged or credited directly to member’s equity | |||
Total tax expense (benefit) from items charged directly to member’s equity | (120) | (720) | (1,678) |
CLECO POWER | |||
Components of Income Tax Expense [Line Items] | |||
Current federal income tax (benefit) expense | 0 | 15,724 | 14,781 |
Deferred federal income tax (benefit) expense | (23,071) | (5,033) | 22,443 |
Amortization of accumulated deferred investment tax credits | (142) | (159) | (191) |
Total federal income tax (benefit) expense | (23,213) | 10,532 | 37,033 |
Current state income tax (benefit) expense | 0 | 5,069 | 9,063 |
Deferred state income tax expense | 13,860 | 11,198 | (644) |
Total state income tax expense | 13,860 | 16,267 | 8,419 |
Total tax expense | (9,353) | 26,799 | 45,452 |
Items charged or credited directly to member’s equity | |||
Total tax expense (benefit) from items charged directly to member’s equity | 2,052 | (765) | (3,318) |
Total federal and state income tax expense | (7,301) | 26,034 | 42,134 |
CLECO POWER | Federal deferred | |||
Items charged or credited directly to member’s equity | |||
Total tax expense (benefit) from items charged directly to member’s equity | 1,714 | (576) | (2,500) |
CLECO POWER | State deferred | |||
Items charged or credited directly to member’s equity | |||
Total tax expense (benefit) from items charged directly to member’s equity | $ 338 | $ (189) | $ (818) |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Accumulated Deferred Federal and State Income Tax Assets and Liabilities [Line Items] | ||
Depreciation and property basis differences | $ (885,747) | $ (865,807) |
Net operating loss carryforward | 195,488 | 109,819 |
NMTC | 92,364 | 92,364 |
Fuel costs | (38,070) | (8,906) |
Other comprehensive income | 12,750 | 13,016 |
Regulated operations regulatory liability, net | (93,990) | |
Regulated operations regulatory liability, net | 47,060 | |
Postretirement benefits | 34,683 | 25,775 |
Merger fair value adjustments | (49,806) | (51,073) |
Other | (23,436) | (23,624) |
Accumulated deferred federal and state income taxes, net | (755,764) | (661,376) |
CLECO POWER | ||
Accumulated Deferred Federal and State Income Tax Assets and Liabilities [Line Items] | ||
Depreciation and property basis differences | (744,594) | (725,034) |
Net operating loss carryforward | 125,392 | 35,442 |
Fuel costs | (14,552) | (7,072) |
Other comprehensive income | 6,222 | 8,274 |
Regulated operations regulatory liability, net | (93,990) | |
Regulated operations regulatory liability, net | 47,060 | |
Postretirement benefits | 20,649 | 11,951 |
Other | (6,606) | (5,219) |
Accumulated deferred federal and state income taxes, net | $ (707,479) | $ (634,598) |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Valuation Allowance [Line Items] | |||
Accumulated deferred federal and state income taxes, net | $ 755,764,000 | $ 661,376,000 | |
Decrease to regulatory liability, deferred tax, net | 47,060,000 | ||
Interest payable related to uncertain tax positions | 0 | 0 | |
Interest expense related to uncertain tax positions | 0 | 0 | $ 0 |
Liability for uncertain tax positions | 0 | 0 | |
Penalties recognized | 0 | 0 | 0 |
Deferred employer payroll tax payments | 6,000,000 | ||
Deferred employer payroll tax payments to be paid year one | 3,000,000 | ||
Deferred employer payroll tax payments to be paid year two | 3,000,000 | ||
Cleco Power | |||
Valuation Allowance [Line Items] | |||
Accumulated deferred federal and state income taxes, net | 707,479,000 | 634,598,000 | |
Decrease to regulatory liability, deferred tax, net | 47,060,000 | ||
Interest payable related to uncertain tax positions | 0 | 0 | |
Interest expense related to uncertain tax positions | 0 | 0 | $ 0 |
Liability for uncertain tax positions | 0 | 0 | |
Regulatory liability | 95,544,000 | 180,565,000 | |
Deferred employer payroll tax payments | 3,600,000 | ||
Deferred employer payroll tax payments to be paid year one | 1,800,000 | ||
Deferred employer payroll tax payments to be paid year two | 1,800,000 | ||
Deferred taxes, net | Cleco Power | |||
Valuation Allowance [Line Items] | |||
Regulatory liability | 95,544,000 | 175,584,000 | |
LPSC | Excess A D I T | |||
Valuation Allowance [Line Items] | |||
Regulatory liability | 302,000,000 | 352,400,000 | |
LPSC | Excess A D I T | Cleco Power | |||
Valuation Allowance [Line Items] | |||
Regulatory liability | 302,000,000 | 352,400,000 | |
NMTC | |||
Valuation Allowance [Line Items] | |||
NMTC carryforwards | 92,400,000 | 92,400,000 | |
Valuation allowance | 0 | ||
NMTC | Cleco Power | |||
Valuation Allowance [Line Items] | |||
Valuation allowance | 0 | ||
Federal | |||
Valuation Allowance [Line Items] | |||
Operating loss carryforwards | 218,400,000 | 550,000,000 | |
Federal | Cleco Power | |||
Valuation Allowance [Line Items] | |||
Operating loss carryforwards | 249,600,000 | 187,800,000 | |
State | |||
Valuation Allowance [Line Items] | |||
Accumulated deferred federal and state income taxes, net | 20,000,000 | ||
Decrease to regulatory liability, deferred tax, net | 20,000,000 | ||
Operating loss carryforwards | 252,900,000 | 186,100,000 | |
State | Cleco Power | |||
Valuation Allowance [Line Items] | |||
Accumulated deferred federal and state income taxes, net | 20,000,000 | ||
Decrease to regulatory liability, deferred tax, net | 20,000,000 | ||
Operating loss carryforwards | $ 252,900,000 | $ 186,100,000 |
Disclosures about Segments (Det
Disclosures about Segments (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021USD ($)reporting_unit | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Apr. 13, 2016USD ($) | |
Revenue | ||||
Electric operations | $ 1,590,796 | $ 1,370,893 | $ 1,496,736 | |
Other operations | 195,767 | 180,524 | 182,832 | |
Affiliate revenue | 0 | 0 | 0 | |
Electric customer credits | (40,634) | (53,271) | (39,963) | |
Operating revenue, net | 1,745,929 | 1,498,146 | 1,639,605 | |
Net income | 194,966 | 122,300 | 152,665 | |
Add: Depreciation and amortization | 251,431 | 232,229 | 228,921 | |
Less: Interest income | 3,312 | 3,948 | 6,090 | |
Add: Interest charges | 134,336 | 137,864 | 141,309 | |
Add: Federal and state income tax (benefit) expense | 13,111 | 35,718 | 43,165 | |
Add: Other corporate costs and noncash items | (7,362) | 1,633 | 2,153 | |
EBITDA | 583,170 | 525,796 | 562,123 | |
Additions to property, plant, and equipment | 311,141 | 389,015 | 308,394 | |
Equity investment in investee | 2,072 | 9,072 | 17,072 | |
Goodwill | 1,490,797 | 1,490,797 | 1,490,797 | $ 1,490,000 |
Total segment assets | 8,125,018 | 7,725,569 | 7,476,298 | |
Power supply agreements | ||||
Revenue | ||||
Amortization of intangible assets | $ (25,600) | (25,600) | (24,273) | |
CLECO POWER | ||||
Revenue | ||||
Number of reporting units | reporting_unit | 1 | |||
TOTAL SEGMENTS | ||||
Revenue | ||||
Electric operations | $ 1,600,475 | 1,380,573 | 1,506,417 | |
Other operations | 203,374 | 186,984 | 190,301 | |
Affiliate revenue | 5,641 | 5,360 | 3,233 | |
Electric customer credits | (40,634) | (53,272) | (39,963) | |
Operating revenue, net | 1,768,856 | 1,519,645 | 1,659,988 | |
Net income | 249,720 | 186,147 | 217,673 | |
Add: Depreciation and amortization | 229,936 | 214,170 | 210,936 | |
Less: Interest income | 3,309 | 3,635 | 5,731 | |
Add: Interest charges | 73,893 | 73,235 | 71,314 | |
Add: Federal and state income tax (benefit) expense | 32,930 | 55,879 | 67,931 | |
EBITDA | 583,170 | 525,796 | 562,123 | |
Additions to property, plant, and equipment | 310,038 | 385,964 | 307,739 | |
Equity investment in investee | 2,072 | 9,072 | 17,072 | |
Goodwill | 1,490,797 | 1,490,797 | 1,490,797 | |
Total segment assets | 7,724,388 | 7,286,756 | 6,978,918 | |
TOTAL SEGMENTS | CLECO POWER | ||||
Revenue | ||||
Electric operations | 1,202,249 | 1,015,018 | 1,130,928 | |
Other operations | 74,625 | 65,237 | 72,833 | |
Affiliate revenue | 5,641 | 5,156 | 3,125 | |
Electric customer credits | (40,878) | (53,119) | (38,516) | |
Operating revenue, net | 1,241,637 | 1,032,292 | 1,168,370 | |
Net income | 134,088 | 96,655 | 148,262 | |
Add: Depreciation and amortization | 173,498 | 166,987 | 172,471 | |
Less: Interest income | 3,294 | 3,362 | 4,744 | |
Add: Interest charges | 73,090 | 73,985 | 71,279 | |
Add: Federal and state income tax (benefit) expense | (9,353) | 26,799 | 45,452 | |
EBITDA | 368,029 | 361,064 | 432,720 | |
Additions to property, plant, and equipment | 300,957 | 377,044 | 298,565 | |
Equity investment in investee | 2,072 | 9,072 | 17,072 | |
Goodwill | 1,490,797 | 1,490,797 | 1,490,797 | |
Total segment assets | 6,620,298 | 6,256,944 | 5,967,327 | |
TOTAL SEGMENTS | CLECO CAJUN | ||||
Revenue | ||||
Electric operations | 398,226 | 365,555 | 375,489 | |
Other operations | 128,749 | 121,747 | 117,468 | |
Affiliate revenue | 0 | 204 | 108 | |
Electric customer credits | 244 | (153) | (1,447) | |
Operating revenue, net | 527,219 | 487,353 | 491,618 | |
Net income | 115,632 | 89,492 | 69,411 | |
Add: Depreciation and amortization | 56,438 | 47,183 | 38,465 | |
Less: Interest income | 15 | 273 | 987 | |
Add: Interest charges | 803 | (750) | 35 | |
Add: Federal and state income tax (benefit) expense | 42,283 | 29,080 | 22,479 | |
EBITDA | 215,141 | 164,732 | 129,403 | |
Additions to property, plant, and equipment | 9,081 | 8,920 | 9,174 | |
Equity investment in investee | 0 | 0 | 0 | |
Goodwill | 0 | 0 | 0 | |
Total segment assets | 1,104,090 | 1,029,812 | 1,011,591 | |
Amortization of deferred lease income | (9,200) | (9,200) | (8,400) | |
TOTAL SEGMENTS | CLECO CAJUN | Power supply agreements | ||||
Revenue | ||||
Amortization of intangible assets and liabilities | 13,500 | 12,400 | 11,400 | |
OTHER | ||||
Revenue | ||||
Electric operations | (9,680) | (9,680) | (9,680) | |
Other operations | 8 | 3 | 2 | |
Affiliate revenue | 113,623 | 129,126 | 109,067 | |
Electric customer credits | 0 | 0 | 0 | |
Operating revenue, net | 103,951 | 119,449 | 99,389 | |
Net income | (54,754) | (63,848) | (65,009) | |
Add: Depreciation and amortization | 21,495 | 18,059 | 17,985 | |
Less: Interest income | 125 | 412 | 974 | |
Add: Interest charges | 60,564 | 64,728 | 70,611 | |
Add: Federal and state income tax (benefit) expense | (19,819) | (20,160) | (24,766) | |
Additions to property, plant, and equipment | 1,103 | 3,051 | 655 | |
Equity investment in investee | (46,901) | 0 | 0 | |
Goodwill | 0 | 0 | 0 | |
Total segment assets | 619,101 | 595,217 | 546,096 | |
OTHER | CLECO POWER | Power supply agreements | ||||
Revenue | ||||
Amortization of intangible assets | 9,700 | (9,700) | (9,700) | |
ELIMINATIONS | ||||
Revenue | ||||
Electric operations | 1 | 0 | (1) | |
Other operations | (7,615) | (6,463) | (7,471) | |
Affiliate revenue | (119,264) | (134,486) | (112,300) | |
Electric customer credits | 0 | 1 | 0 | |
Operating revenue, net | (126,878) | (140,948) | (119,772) | |
Net income | 0 | 1 | 1 | |
Add: Depreciation and amortization | 0 | 0 | 0 | |
Less: Interest income | (122) | (99) | (615) | |
Add: Interest charges | (121) | (99) | (616) | |
Add: Federal and state income tax (benefit) expense | 0 | (1) | 0 | |
Additions to property, plant, and equipment | 0 | 0 | 0 | |
Equity investment in investee | 46,901 | 0 | 0 | |
Goodwill | 0 | 0 | 0 | |
Total segment assets | $ (218,471) | $ (156,404) | $ (48,716) |
Regulation and Rates - Provisio
Regulation and Rates - Provision for Rate Refund (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Jul. 31, 2019 |
Public Utilities, General Disclosures [Line Items] | |||
Provision for rate refund | $ 5,682 | $ 9,444 | |
Cleco Power | |||
Public Utilities, General Disclosures [Line Items] | |||
Provision for rate refund | 5,682 | 8,630 | $ 79,200 |
Cleco Katrina/Rita storm recovery charges | Cleco Power | |||
Public Utilities, General Disclosures [Line Items] | |||
Provision for rate refund | 1,611 | 1,617 | |
FERC audit | Cleco Power | |||
Public Utilities, General Disclosures [Line Items] | |||
Provision for rate refund | 0 | 1,912 | |
FRP | Cleco Power | |||
Public Utilities, General Disclosures [Line Items] | |||
Provision for rate refund | 1,229 | 1,786 | |
Site-specific industrial customer | Cleco Power | |||
Public Utilities, General Disclosures [Line Items] | |||
Provision for rate refund | 833 | 710 | |
TCJA | Cleco Power | |||
Public Utilities, General Disclosures [Line Items] | |||
Provision for rate refund | 2,057 | 2,057 | |
Transmission ROE | Cleco Power | |||
Public Utilities, General Disclosures [Line Items] | |||
Provision for rate refund | $ 0 | $ 595 |
Regulation and Rates - Narrativ
Regulation and Rates - Narrative (Details) $ in Thousands | Jun. 16, 2021 | Apr. 07, 2016USD ($) | Jun. 30, 2021USD ($) | Dec. 31, 2021USD ($)complaint | Jun. 30, 2021USD ($) | Dec. 31, 2021USD ($)complaint | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2021USD ($) | Jul. 01, 2021USD ($) | Jul. 15, 2020USD ($) | Jul. 31, 2019USD ($) |
Public Utilities, General Disclosures [Line Items] | ||||||||||||
Provision for rate refund | $ 5,682 | $ 5,682 | $ 9,444 | |||||||||
Electric customer credits | 40,634 | 53,271 | $ 39,963 | |||||||||
Current regulatory liabilities | 44,072 | 44,072 | 23,509 | |||||||||
LPSC | Excess A D I T | ||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||
Regulatory liabilities | $ 302,000 | $ 302,000 | 352,400 | |||||||||
FERC | ||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||
Number of complaints filed | complaint | 2 | 2 | ||||||||||
CLECO POWER | ||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||
Provision for rate refund | $ 5,682 | $ 5,682 | 8,630 | $ 79,200 | ||||||||
Electric customer credits | 40,878 | 53,119 | $ 38,516 | |||||||||
Regulatory liabilities | 95,544 | 95,544 | 180,565 | |||||||||
Current regulatory liabilities | 44,072 | 44,072 | 23,509 | |||||||||
CLECO POWER | FRP Monitoring Report | Cost savings | ||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||
Provision for rate refund | 1,200 | 1,200 | ||||||||||
CLECO POWER | Cleco Katrina/Rita storm recovery charges | ||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||
Provision for rate refund | 1,611 | 1,611 | 1,617 | |||||||||
CLECO POWER | LPSC | ||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||
TCJA, bill credit per month | $ 7,000 | |||||||||||
Bill credit related to unprotected excess ADIT | 4,400 | |||||||||||
Bill credit per month related to change in federal statutory tax rate | $ 2,600 | |||||||||||
Estimated refund for the tax-related benefits from the TCJA | 2,100 | 2,100 | ||||||||||
CLECO POWER | LPSC | Contributions for economic development | ||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||
Merger commitments | $ 2,500 | |||||||||||
Disbursement period | 5 years | |||||||||||
CLECO POWER | LPSC | Economic development contribution | ||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||
Merger commitments | $ 7,000 | |||||||||||
CLECO POWER | LPSC | Charitable contributions to be disbursed over five years | ||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||
Merger commitments | $ 6,000 | |||||||||||
Disbursement period | 5 years | |||||||||||
CLECO POWER | LPSC | Cost savings | ||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||
Regulatory liabilities | $ 4,300 | 4,300 | ||||||||||
CLECO POWER | LPSC | FRP | ||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||
Return on equity established by FERC | 9.50% | 10.00% | ||||||||||
Percentage of retail earnings within range to be returned to customers | 60.00% | 60.00% | ||||||||||
Return on equity for customer credit, low range | 10.00% | 10.90% | ||||||||||
Return on equity for customer refund, high range | 10.50% | 11.75% | ||||||||||
CLECO POWER | LPSC | FRP | MAXIMUM | ||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||
Return on equity established by FERC | 10.00% | 10.90% | ||||||||||
CLECO POWER | LPSC | FRP Monitoring Report | ||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||
Provision for rate refund | $ 1,200 | |||||||||||
CLECO POWER | LPSC | Excess A D I T | ||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||
Bill credit related to unprotected excess ADIT | $ 2,500 | |||||||||||
Regulatory liabilities amortization period (in years/months) | 3 years | |||||||||||
Regulatory liabilities | $ 302,000 | 302,000 | $ 352,400 | |||||||||
Current regulatory liabilities | $ 44,100 | $ 44,100 | ||||||||||
CLECO POWER | FERC | ||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||
Electric customer credits | $ 4,400 | $ 4,400 |
Variable Interest Entities - Na
Variable Interest Entities - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Variable Interest Entity [Line Items] | |||
Equity investment in investee | $ 2,072 | $ 9,072 | $ 17,072 |
Equity method investment, return of capital | 7,000 | 8,000 | 1,100 |
CLECO POWER | |||
Variable Interest Entity [Line Items] | |||
Equity investment in investee | 2,072 | 9,072 | |
Equity method investment, return of capital | $ 7,000 | $ 8,000 | $ 1,100 |
CLECO POWER | Variable Interest Entity, Not Primary Beneficiary | |||
Variable Interest Entity [Line Items] | |||
Variable interest entity, ownership percentage | 50.00% | 50.00% | |
Ownership percentage by other parties | 50.00% |
Variable Interest Entities - Eq
Variable Interest Entities - Equity Method investments (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Variable Interest Entity [Line Items] | |||
Total equity investment in investee | $ 2,072 | $ 9,072 | $ 17,072 |
Cleco Power | |||
Variable Interest Entity [Line Items] | |||
Purchase price | 12,873 | 12,873 | |
Cash contributions | 6,399 | 6,399 | |
Dividend received | (17,200) | (10,200) | |
Total equity investment in investee | $ 2,072 | $ 9,072 |
Variable Interest Entities - Ca
Variable Interest Entities - Carrying Amount of Assets and Liabilities with Maximum Exposure to Loss (Details) - Cleco Power - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Variable Interest Entity [Line Items] | ||
Oxbow’s net assets/liabilities | $ 4,145 | $ 18,145 |
Variable Interest Entity, Not Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Cleco Power’s 50% equity | 2,072 | 9,072 |
Cleco Power’s maximum exposure to loss | $ 2,072 | $ 9,072 |
Variable interest entity, ownership percentage | 50.00% | 50.00% |
Variable Interest Entities - Su
Variable Interest Entities - Summarized Financial Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Variable Interest Entity [Line Items] | |||
Current assets | $ 767,960 | $ 664,892 | |
Total assets | 8,125,018 | 7,725,569 | $ 7,476,298 |
Current liabilities | 513,162 | 524,612 | |
Total liabilities and member’s equity | 8,125,018 | 7,725,569 | |
Operating revenue | 1,745,929 | 1,498,146 | 1,639,605 |
Cleco Power | |||
Variable Interest Entity [Line Items] | |||
Current assets | 465,414 | 394,097 | |
Total assets | 5,129,501 | 4,766,147 | |
Current liabilities | 355,221 | 380,706 | |
Partners’ capital | 4,145 | 18,145 | |
Total liabilities and member’s equity | 5,129,501 | 4,766,147 | |
Operating revenue | 1,241,637 | 1,032,292 | 1,168,370 |
Equity Method Investment, Nonconsolidated Investee or Group of Investees | Cleco Power | |||
Variable Interest Entity [Line Items] | |||
Current assets | 6,979 | 16,805 | |
Total assets | 10,777 | 25,075 | |
Current liabilities | 393 | 369 | |
Other liabilities | 6,239 | 6,561 | |
Partners’ capital | 4,145 | 18,145 | |
Total liabilities and member’s equity | 10,777 | 25,075 | |
Operating revenue | 5,155 | 34,827 | 8,886 |
Operating expenses | 5,155 | 34,827 | 8,886 |
Income before taxes | 0 | 0 | $ 0 |
Equity Method Investment, Nonconsolidated Investee or Group of Investees | Cleco Power | Property, plant, and equipment, net | |||
Variable Interest Entity [Line Items] | |||
Noncurrent assets | 3,798 | 4,910 | |
Equity Method Investment, Nonconsolidated Investee or Group of Investees | Cleco Power | Other assets | |||
Variable Interest Entity [Line Items] | |||
Noncurrent assets | $ 0 | $ 3,360 |
Litigation, Other Commitments_3
Litigation, Other Commitments and Contingencies, and Disclosures about Guarantees - Litigation (Details) $ in Thousands | Jun. 01, 2020 | May 21, 2020 | Jan. 01, 2020 | Apr. 13, 2016claim | Jun. 30, 2021USD ($) | Sep. 30, 2016 | Jun. 30, 2016 | Sep. 30, 2015USD ($) | Nov. 30, 2014 | Nov. 30, 2013 | Jun. 30, 2021USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2019USD ($) | May 31, 2016 | Aug. 31, 2021USD ($) | Mar. 29, 2021USD ($) | Feb. 29, 2020USD ($) |
Litigation [Line Items] | |||||||||||||||||||
Electric customer credits | $ 40,634 | $ 53,271 | $ 39,963 | ||||||||||||||||
Accrual for various litigation matters | 6,000 | ||||||||||||||||||
Gulf Coast Spinning start up costs | |||||||||||||||||||
Litigation [Line Items] | |||||||||||||||||||
Startup costs | $ 6,500 | ||||||||||||||||||
Gulf Coast Spinning construction of cotton spinning facility | |||||||||||||||||||
Litigation [Line Items] | |||||||||||||||||||
Startup costs | $ 60,000 | ||||||||||||||||||
CLECO POWER | |||||||||||||||||||
Litigation [Line Items] | |||||||||||||||||||
Electric customer credits | 40,878 | $ 53,119 | $ 38,516 | ||||||||||||||||
CLECO POWER | Deferred storm restoration costs - Winter Storms Uri & Viola | |||||||||||||||||||
Litigation [Line Items] | |||||||||||||||||||
Capitalized storm restoration costs | 8,100 | $ 50,000 | |||||||||||||||||
CLECO POWER | FERC | |||||||||||||||||||
Litigation [Line Items] | |||||||||||||||||||
Electric customer credits | $ 4,400 | $ 4,400 | |||||||||||||||||
CLECO POWER | LPSC Jan 2016 To Dec 2017 EAC Audit | |||||||||||||||||||
Litigation [Line Items] | |||||||||||||||||||
Environmental expenses included in audit | $ 26,200 | ||||||||||||||||||
CLECO POWER | MISO Transmission Rates | |||||||||||||||||||
Litigation [Line Items] | |||||||||||||||||||
Return on equity proposed/recommended | 10.52% | 10.38% | 10.32% | 9.70% | |||||||||||||||
CLECO POWER | MISO Transmission Rates | FERC | |||||||||||||||||||
Litigation [Line Items] | |||||||||||||||||||
Return on equity established by FERC | 12.38% | ||||||||||||||||||
Return on equity proposed/recommended | 10.02% | 9.88% | 6.68% | ||||||||||||||||
Requested rate increase | 0.00% | ||||||||||||||||||
CLECO POWER | LPSC 2016-2017 Fuel Audit | |||||||||||||||||||
Litigation [Line Items] | |||||||||||||||||||
Fuel expenses included in audit | $ 565,800 | ||||||||||||||||||
Gulf Coast Spinning Company, LLC | Gulf Coast Spinning construction of cotton spinning facility | Diversified Lands LLC | |||||||||||||||||||
Litigation [Line Items] | |||||||||||||||||||
Loans payable | $ 2,000 | ||||||||||||||||||
CLECO CAJUN | |||||||||||||||||||
Litigation [Line Items] | |||||||||||||||||||
Indemnification assets | 22,200 | ||||||||||||||||||
Actions filed in the 9th Judicial District Court | Alleged Breach of Fiduciary Duties | |||||||||||||||||||
Litigation [Line Items] | |||||||||||||||||||
Number of actions filed | claim | 4 | ||||||||||||||||||
Actions filed in the Civil District Court | Alleged Breach of Fiduciary Duties | |||||||||||||||||||
Litigation [Line Items] | |||||||||||||||||||
Number of actions filed | claim | 3 | ||||||||||||||||||
NRG South Central | |||||||||||||||||||
Litigation [Line Items] | |||||||||||||||||||
Accrual for various litigation matters | $ 1,500 | ||||||||||||||||||
NRG South Central | CLECO CAJUN | |||||||||||||||||||
Litigation [Line Items] | |||||||||||||||||||
Environmental contingent liability | $ 10,000 | ||||||||||||||||||
Indemnification assets | $ 10,000 |
Litigation, Other Commitments_4
Litigation, Other Commitments and Contingencies, and Disclosures about Guarantees - Off-Balance Sheet Commitments and Guarantees (Details) | 12 Months Ended |
Dec. 31, 2021USD ($) | |
CLECO POWER | |
Guarantor Obligations [Line Items] | |
Assets held as collateral for third parties | $ 0 |
Cleco Holdings | |
Guarantor Obligations [Line Items] | |
Assets held as collateral for third parties | 0 |
Performance Guarantee | |
Guarantor Obligations [Line Items] | |
Maximum amount of potential payment | 42,400,000 |
Indemnification Agreement | |
Guarantor Obligations [Line Items] | |
Maximum amount of potential payment | 40,000,000 |
Indemnification Agreement | CLECO POWER | |
Guarantor Obligations [Line Items] | |
Maximum amount of potential payment | 40,000,000 |
Indemnification Agreement, Including Fundamental Organizational Structure | |
Guarantor Obligations [Line Items] | |
Maximum amount of potential payment | 400,000,000 |
Indemnification Agreement, Including Fundamental Organizational Structure | CLECO POWER | |
Guarantor Obligations [Line Items] | |
Maximum amount of potential payment | $ 400,000,000 |
Litigation, Other Commitments_5
Litigation, Other Commitments and Contingencies, and Disclosures about Guarantees - Long-Term Purchase Obligations (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
FUTURE PAYMENTS UNDER LONG-TERM PURCHASE OBLIGATIONS | |||
2022 | $ 70,974,000 | ||
2023 | 47,940,000 | ||
2024 | 11,565,000 | ||
2025 | 9,689,000 | ||
2026 | 5,279,000 | ||
Thereafter | 5,726,000 | ||
Total long-term purchase obligations | 151,173,000 | ||
Payments under long-term purchase obligations | 59,900,000 | $ 92,500,000 | $ 94,800,000 |
CLECO POWER | |||
FUTURE PAYMENTS UNDER LONG-TERM PURCHASE OBLIGATIONS | |||
2022 | 38,075,000 | ||
2023 | 18,872,000 | ||
2024 | 10,914,000 | ||
2025 | 9,090,000 | ||
2026 | 4,922,000 | ||
Thereafter | 5,342,000 | ||
Total long-term purchase obligations | 87,215,000 | ||
Payments under long-term purchase obligations | 43,300,000 | $ 24,800,000 | $ 35,300,000 |
Cleco Holdings | |||
FUTURE PAYMENTS UNDER LONG-TERM PURCHASE OBLIGATIONS | |||
Total long-term purchase obligations | $ 0 |
Litigation, Other Commitments_6
Litigation, Other Commitments and Contingencies, and Disclosures about Guarantees - Asset Retirement Obligation (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Litigation [Line Items] | |
Increase in ARO liabilities | $ 46,673 |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | |
Beginning balance | 28,022 |
Liabilities settled | (1,433) |
Accretion | 1,077 |
Revisions and adjustments | 46,673 |
Ending balance | 74,339 |
Cleco Power | |
Litigation [Line Items] | |
Increase in ARO liabilities | 11,271 |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | |
Beginning balance | 11,364 |
Liabilities settled | 0 |
Accretion | 354 |
Revisions and adjustments | 11,271 |
Ending balance | 22,989 |
CLECO CAJUN | |
Litigation [Line Items] | |
Increase in ARO liabilities | 35,402 |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | |
Beginning balance | 16,658 |
Liabilities settled | (1,433) |
Accretion | 723 |
Revisions and adjustments | 35,402 |
Ending balance | 51,350 |
Indemnification assets, maximum environmental costs | 25,000 |
Indemnification assets | 22,200 |
Indemnification assets, current | 1,100 |
Indemnification assets, noncurrent | $ 21,100 |
Litigation, Other Commitments_7
Litigation, Other Commitments and Contingencies, and Disclosures about Guarantees - Risk and Uncertainties (Details) $ in Millions | Dec. 31, 2021USD ($) |
Cleco Power | Dolet Hills Power Station | |
Litigation [Line Items] | |
Investment balance | $ 7.2 |
Affiliate Transactions - Narrat
Affiliate Transactions - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Affiliate Transaction [Line Items] | |||
Accounts receivable - affiliate | $ 3,041,000 | $ 1,663,000 | |
Accounts payable - affiliate | 51,297,000 | 41,283,000 | |
Contributions from member | $ 384,900,000 | ||
Cleco Holdings | |||
Affiliate Transaction [Line Items] | |||
Accounts receivable - affiliate | 2,600,000 | 1,700,000 | |
Accounts payable - affiliate | 51,300,000 | 41,300,000 | |
CLECO POWER | |||
Affiliate Transaction [Line Items] | |||
Accounts receivable - affiliate | 13,612,000 | 14,605,000 | |
Accounts payable - affiliate | 69,729,000 | 72,068,000 | |
Contributions from member | 20,000,000 | ||
CLECO POWER | Oxbow | |||
Affiliate Transaction [Line Items] | |||
Due to affiliate (less than) | 100,000 | 300,000 | |
CLECO POWER | Support Group | Oxbow | |||
Affiliate Transaction [Line Items] | |||
Cost of mineral rights and land leases | 2,700,000 | 17,400,000 | |
CLECO POWER | Cleco Holdings | |||
Affiliate Transaction [Line Items] | |||
Contributions from member | 0 | 0 | 20,000,000 |
Contributions from member | 0 | 0 | 0 |
Cleco Holdings | Cleco Holdings | |||
Affiliate Transaction [Line Items] | |||
Contributions from member | $ 0 | $ 0 | $ 0 |
Affiliate Transactions - Summar
Affiliate Transactions - Summary of Charges From Affiliates (Details) - Support Group - Cleco Power - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Other operations and maintenance | |||
Affiliate Transaction [Line Items] | |||
Charges from each affiliate | $ 91,915 | $ 94,798 | $ 73,090 |
Taxes other than income taxes | |||
Affiliate Transaction [Line Items] | |||
Charges from each affiliate | 40 | 0 | (73) |
Other expense | |||
Affiliate Transaction [Line Items] | |||
Charges from each affiliate | $ 35 | $ 43 | $ 64 |
Affiliate Transactions - Summ_2
Affiliate Transactions - Summary of Revenue Received From Affiliates (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Affiliate Transaction [Line Items] | |||
Affiliate revenue | $ 0 | $ 0 | $ 0 |
Cleco Power | |||
Affiliate Transaction [Line Items] | |||
Affiliate revenue | 5,641 | 5,156 | 3,125 |
Total | 13,257 | 11,619 | 10,745 |
Cleco Cajun | Cleco Power | |||
Affiliate Transaction [Line Items] | |||
Other operations revenue | 7,616 | 6,463 | 7,471 |
Affiliate revenue | 858 | 441 | 37 |
Support Group | Cleco Power | |||
Affiliate Transaction [Line Items] | |||
Affiliate revenue | 4,783 | 4,715 | 3,088 |
Cleco Holdings | Cleco Power | |||
Affiliate Transaction [Line Items] | |||
Other income | $ 0 | $ 0 | $ 149 |
Affiliate Transactions - Summ_3
Affiliate Transactions - Summary of Balances Payable To or Due From Affiliates (Details) - Cleco Power - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Affiliate Transaction [Line Items] | ||
Accounts receivable - affiliate | $ 13,612 | $ 14,605 |
Accounts payable - affiliate | 69,729 | 72,068 |
Cleco Holdings | ||
Affiliate Transaction [Line Items] | ||
Accounts receivable - affiliate | 10,347 | 10,353 |
Accounts payable - affiliate | 59,627 | 57,713 |
Support Group | ||
Affiliate Transaction [Line Items] | ||
Accounts receivable - affiliate | 2,473 | 3,248 |
Accounts payable - affiliate | 10,038 | 14,355 |
Cleco Cajun | ||
Affiliate Transaction [Line Items] | ||
Accounts receivable - affiliate | 792 | 1,004 |
Accounts payable - affiliate | $ 64 | $ 0 |
Affiliate Transactions - Summ_4
Affiliate Transactions - Summary of Expense of Pension Plan (Details) - Pension plan - Cleco Power - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Support Group | ||
Affiliate Transaction [Line Items] | ||
Charges from each affiliate | $ 4,068 | $ 3,155 |
Cleco Cajun | ||
Affiliate Transaction [Line Items] | ||
Charges from each affiliate | $ 496 | $ 351 |
Intangible Assets, Intangible_3
Intangible Assets, Intangible Liabilities, and Goodwill - Narrative (Details) - USD ($) | Feb. 04, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2008 | Sep. 30, 2021 | Aug. 01, 2021 | Mar. 31, 2020 | Dec. 31, 2018 | Apr. 13, 2016 |
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||||||
Residual value | $ 0 | |||||||||
Impairments for intangibles | $ 0 | $ 0 | ||||||||
Goodwill | $ 1,490,797,000 | 1,490,797,000 | 1,490,797,000 | $ 1,490,000,000 | ||||||
Intangible assets | 82,235,000 | 111,731,000 | ||||||||
Member’s equity | 2,954,156,000 | 2,757,023,000 | 2,643,006,000 | $ 2,124,740,000 | ||||||
CLECO POWER | ||||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||||||
Impairment of goodwill | 0 | |||||||||
Equity, fair value | $ 3,820,000,000 | |||||||||
Member’s equity | 1,948,537,000 | $ 1,807,879,000 | $ 1,713,392,000 | $ 3,550,000,000 | $ 1,594,533,000 | |||||
Excess of the fair value over the carrying value, percent | 7.60% | |||||||||
Excess of the fair value over the carrying value | $ 270,100,000 | |||||||||
Power supply agreements | CLECO POWER | ||||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||||||
Intangible liabilities residual value | $ 0 | |||||||||
LTSA | CLECO CAJUN | ||||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||||||
Intangible liabilities, remaining life | 7 years | |||||||||
Right To Bill And Collect Storm Recovery Charges From Customers | Cleco Katrina/Rita | ||||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||||||
Acquired intangible asset | $ 177,500,000 | |||||||||
Right to Bill and Collect, Storm Recovery Charges From Customers, Net of Financing Costs | Cleco Katrina/Rita | ||||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||||||
Acquired intangible asset | 176,000,000 | |||||||||
Financing costs | Cleco Katrina/Rita | ||||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||||||
Acquired intangible asset | $ 1,500,000 | |||||||||
Trade name | ||||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||||||
Residual value | 0 | |||||||||
Impairments for intangibles | 3,800,000 | |||||||||
Intangible assets | $ 0 | $ 0 | ||||||||
Power supply agreements | MINIMUM | ||||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||||||
Intangible asset expected useful life (in years) | 7 years | |||||||||
Power supply agreements | MAXIMUM | ||||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||||||
Intangible asset expected useful life (in years) | 19 years | |||||||||
Power supply agreements | CLECO POWER | ||||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||||||
Residual value | $ 0 | |||||||||
Power supply agreements | CLECO POWER | MINIMUM | ||||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||||||
Intangible assets, remaining life (in years) | 6 years | |||||||||
Power supply agreements | CLECO POWER | MAXIMUM | ||||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||||||
Intangible assets, remaining life (in years) | 8 years |
Intangible Assets, Intangible_4
Intangible Assets, Intangible Liabilities, and Goodwill - Schedule of Amortization of Intangible Assets and Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
LTSA | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of intangible liabilities | $ 3,484 | $ 3,484 | $ 3,234 |
Power supply agreements | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of intangible liabilities | 2,378 | 3,528 | 3,194 |
Cleco Katrina/Rita right to bill and collect storm recover charges | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of intangible assets | 0 | 517 | 20,576 |
Cleco Katrina/Rita right to bill and collect storm recover charges | Cleco Power | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of intangible assets | 0 | 517 | 20,576 |
Trade name | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of intangible assets | 3,897 | 255 | 255 |
Power supply agreements | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of intangible assets | $ 25,600 | $ 25,600 | $ 24,273 |
Intangible Assets, Intangible_5
Intangible Assets, Intangible Liabilities, and Goodwill - Intangible Assets Subject to Amortization (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | $ 184,004 | $ 189,104 |
Intangible liabilities, gross | 38,300 | 38,300 |
Net intangible assets carrying amount | 145,704 | 150,804 |
Accumulated amortization | (82,466) | (63,932) |
Net intangible assets subject to amortization | 63,238 | 86,872 |
LTSA | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible liabilities, gross | 24,100 | 24,100 |
Power supply agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible liabilities, gross | 14,200 | 14,200 |
Trade name | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | 0 | 5,100 |
Power supply agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | $ 184,004 | $ 184,004 |
Intangible Assets, Intangible_6
Intangible Assets, Intangible Liabilities, and Goodwill - Expected Amortization Expense (Details) $ in Thousands | Dec. 31, 2021USD ($) |
INTANGIBLE ASSETS | |
2022 | $ 25,600 |
2023 | 25,373 |
2024 | 18,801 |
2025 | 5,037 |
2026 | 744 |
Thereafter | 6,680 |
INTANGIBLE LIABILITIES | |
2022 | (5,041) |
2023 | (5,041) |
2024 | (5,041) |
2025 | (3,874) |
2026 | 0 |
Thereafter | $ 0 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance, beginning | $ 2,757,023 | $ 2,643,006 | $ 2,124,740 |
Other comprehensive income before reclassifications | |||
Balance, ending | 2,954,156 | 2,757,023 | 2,643,006 |
Cleco Power | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance, beginning | 1,807,879 | 1,713,392 | 1,594,533 |
Other comprehensive income before reclassifications | |||
Postretirement benefit adjustments incurred during the year | 4,606 | (4,050) | (10,344) |
Balance, ending | 1,948,537 | 1,807,879 | 1,713,392 |
POSTRETIREMENT BENEFIT NET GAIN (LOSS) | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance, beginning | (25,796) | (17,513) | 1,786 |
Other comprehensive income before reclassifications | |||
Postretirement benefit adjustments incurred during the year | 1,470 | (10,026) | (18,877) |
Amounts reclassified from accumulated other comprehensive loss | 697 | 1,743 | (422) |
Balance, ending | (23,629) | (25,796) | (17,513) |
POSTRETIREMENT BENEFIT NET GAIN (LOSS) | Cleco Power | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance, beginning | (19,139) | (16,717) | (7,060) |
Other comprehensive income before reclassifications | |||
Postretirement benefit adjustments incurred during the year | 4,606 | (4,050) | (10,344) |
Amounts reclassified from accumulated other comprehensive loss | 1,648 | 1,628 | 687 |
Balance, ending | (12,885) | (19,139) | (16,717) |
NET (LOSS) GAIN ON CASH FLOW HEDGES | Cleco Power | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance, beginning | (5,614) | (5,868) | (6,122) |
Other comprehensive income before reclassifications | |||
Postretirement benefit adjustments incurred during the year | 0 | 0 | 0 |
Amounts reclassified from accumulated other comprehensive loss | (316) | (254) | (254) |
Balance, ending | (5,298) | (5,614) | (5,868) |
TOTAL AOCI | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance, beginning | (25,796) | (17,513) | 1,786 |
Other comprehensive income before reclassifications | |||
Balance, ending | (23,629) | (25,796) | (17,513) |
TOTAL AOCI | Cleco Power | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance, beginning | (24,753) | (22,585) | (13,182) |
Other comprehensive income before reclassifications | |||
Balance, ending | $ (18,183) | $ (24,753) | $ (22,585) |
Storm Restoration, Securitiza_2
Storm Restoration, Securitization, and Cost Recovery (Details) customer in Thousands, $ in Thousands | Aug. 29, 2021USD ($)customer | May 19, 2021USD ($) | May 31, 2021 | Oct. 28, 2020USD ($)hurricane | Dec. 31, 2021USD ($) | Sep. 28, 2021USD ($) | Sep. 11, 2021 | Aug. 05, 2021USD ($) | Mar. 29, 2021USD ($) | Dec. 31, 2020USD ($) |
Cleco Power | ||||||||||
Unusual or Infrequent Item, or Both [Line Items] | ||||||||||
Total regulatory assets | $ 759,165 | $ 456,034 | ||||||||
Securitized storm restoration costs | $ 342,000 | |||||||||
Securitized storm restoration costs, reserve for future costs | $ 100,000 | |||||||||
Cleco Power | Hurricane Laura, Delta and Zeta | ||||||||||
Unusual or Infrequent Item, or Both [Line Items] | ||||||||||
Total regulatory assets | 74,700 | |||||||||
Cleco Power | Deferred storm restoration costs - Winter Storms Uri & Viola | ||||||||||
Unusual or Infrequent Item, or Both [Line Items] | ||||||||||
Total regulatory assets | 1,912 | 0 | ||||||||
Cleco Power | Deferred storm restoration costs - Hurricane Ida | ||||||||||
Unusual or Infrequent Item, or Both [Line Items] | ||||||||||
Total regulatory assets | $ 37,617 | $ 0 | ||||||||
Natural Disasters and Other Casualty Events | ||||||||||
Unusual or Infrequent Item, or Both [Line Items] | ||||||||||
Capitalization percentage | 63.00% | |||||||||
Capitalized storm restoration costs, interim storm recovery amount | $ 16,000 | |||||||||
Natural Disasters and Other Casualty Events | Cleco Power | ||||||||||
Unusual or Infrequent Item, or Both [Line Items] | ||||||||||
Number of hurricanes | hurricane | 3 | |||||||||
Estimate of storm restoration costs | $ 239,800 | |||||||||
Capitalized storm restoration costs | $ 150,400 | |||||||||
Deferred storm restoration costs - Winter Storms Uri & Viola | ||||||||||
Unusual or Infrequent Item, or Both [Line Items] | ||||||||||
Capitalization percentage | 80.00% | |||||||||
Deferred storm restoration costs - Winter Storms Uri & Viola | Cleco Power | ||||||||||
Unusual or Infrequent Item, or Both [Line Items] | ||||||||||
Estimate of storm restoration costs | $ 10,100 | |||||||||
Capitalized storm restoration costs | 8,100 | $ 50,000 | ||||||||
Fuel and purchased power costs | $ 55,000 | |||||||||
Capitalized storm restoration costs, amortization period | 12 months | |||||||||
Deferred storm restoration costs - Hurricane Ida | Cleco Power | ||||||||||
Unusual or Infrequent Item, or Both [Line Items] | ||||||||||
Estimate of storm restoration costs | $ 92,000 | |||||||||
Capitalization percentage | 56.00% | |||||||||
Capitalized storm restoration costs | $ 52,100 | |||||||||
Number of customers affected with power outage | customer | 100 | |||||||||
Percentage of customers affected by the hurricane with power restored | 100.00% | |||||||||
Securitized storm restoration costs, reserve for future costs | $ 100,000 |
Schedule I Financial Statemen_2
Schedule I Financial Statements of Cleco Holdings (Parent Company Only) - Condensed Statements of Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Operating expenses | |||
Merger transaction costs | $ 436 | $ 3,606 | $ 7,668 |
Total operating expenses | 1,401,052 | 1,193,054 | 1,324,711 |
Operating income | 344,877 | 305,092 | 314,894 |
Other (expense) income, net | (15,681) | (14,156) | 758 |
Income before income taxes | 208,077 | 158,018 | 195,830 |
Federal and state income tax expense | 13,111 | 35,718 | 43,165 |
Net income | 194,966 | 122,300 | 152,665 |
Parent Company | |||
Operating expenses | |||
Administrative and general | 1,644 | 1,497 | 3,263 |
Merger transaction costs | 436 | 3,606 | 7,803 |
Other operating expense | 247 | 239 | 130 |
Total operating expenses | 2,327 | 5,342 | 11,196 |
Operating income | (2,327) | (5,342) | (11,196) |
Equity income from subsidiaries, net of tax | 234,512 | 173,337 | 205,187 |
Interest, net | (60,461) | (64,362) | (70,252) |
Other (expense) income, net | 8,788 | 3,021 | 8,568 |
Income before income taxes | 180,512 | 106,654 | 132,307 |
Federal and state income tax expense | (14,454) | (15,646) | (20,358) |
Net income | $ 194,966 | $ 122,300 | $ 152,665 |
Schedule I Financial Statemen_3
Schedule I Financial Statements of Cleco Holdings (Parent Company Only) - Condensed Statements of Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Condensed Statements of Comprehensive Income [Abstract] | |||
Net income | $ 194,966 | $ 122,300 | $ 152,665 |
Other comprehensive income (loss), net of tax | |||
Postretirement benefits (loss) gain, net of tax expense (benefit) | 2,167 | (8,283) | (19,299) |
Total other comprehensive income (loss), net of tax | 2,167 | (8,283) | (19,299) |
Comprehensive income, net of tax | 197,133 | 114,017 | 133,366 |
Parent Company | |||
Condensed Statements of Comprehensive Income [Abstract] | |||
Net income | 194,966 | 122,300 | 152,665 |
Other comprehensive income (loss), net of tax | |||
Postretirement benefits (loss) gain, net of tax expense (benefit) | 2,167 | (8,283) | (19,299) |
Total other comprehensive income (loss), net of tax | 2,167 | (8,283) | (19,299) |
Comprehensive income, net of tax | $ 197,133 | $ 114,017 | $ 133,366 |
Schedule I Financial Statemen_4
Schedule I Financial Statements of Cleco Holdings (Parent Company Only) - Condensed Statements of Comprehensive Income (Parenthetical) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Condensed Financial Statements, Captions [Line Items] | |||
Tax (expense) benefit of postretirement benefits gain (loss) | $ (394) | $ 2,922 | $ 6,808 |
Parent Company | |||
Condensed Financial Statements, Captions [Line Items] | |||
Tax (expense) benefit of postretirement benefits gain (loss) | $ (394) | $ 2,922 | $ 6,808 |
Schedule I Financial Statemen_5
Schedule I Financial Statements of Cleco Holdings (Parent Company Only) - Condensed Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets | ||||
Cash and cash equivalents | $ 148,563 | $ 84,976 | ||
Accounts receivable - affiliate | 3,041 | 1,663 | ||
Other accounts receivable | 27,818 | 32,076 | ||
Taxes receivable, net | 564 | 0 | ||
Cash surrender value of trust-owned life insurance policies | 98,576 | 89,138 | ||
Other current assets | 12,839 | 11,048 | ||
Total current assets | 767,960 | 664,892 | ||
Equity investment in subsidiaries | 2,072 | 9,072 | $ 17,072 | |
Other deferred charges | 44,177 | 39,777 | ||
Total assets | 8,125,018 | 7,725,569 | 7,476,298 | |
Current liabilities | ||||
Accounts payable | 167,886 | 161,357 | ||
Accounts payable - affiliate | 51,297 | 41,283 | ||
Taxes payable | 6,311 | 7,530 | ||
Interest accrued | 15,203 | 15,583 | ||
Deferred compensation | 14,420 | 13,240 | ||
Other current liabilities | 53,150 | 49,813 | ||
Total current liabilities | 513,162 | 524,612 | ||
Postretirement benefit obligations | 291,606 | 314,653 | ||
Other deferred credits | 27,582 | 28,627 | ||
Total liabilities | 5,170,862 | 4,968,546 | ||
Commitments and contingencies (Note 5) | ||||
Member’s equity | ||||
Member’s equity | 2,954,156 | 2,757,023 | $ 2,643,006 | $ 2,124,740 |
Total liabilities and member’s equity | 8,125,018 | 7,725,569 | ||
Parent Company | ||||
Current assets | ||||
Cash and cash equivalents | 10,408 | 21,622 | ||
Accounts receivable - affiliate | 94,704 | 75,948 | ||
Other accounts receivable | 419 | 599 | ||
Taxes receivable, net | 4,001 | 4,196 | ||
Cash surrender value of trust-owned life insurance policies | 82,316 | 72,954 | ||
Other current assets | 59 | 0 | ||
Total current assets | 191,907 | 175,319 | ||
Equity investment in subsidiaries | 4,304,496 | 4,181,383 | ||
Accumulated deferred federal and state income taxes, net | 148,371 | 134,809 | ||
Other deferred charges | 1,010 | 812 | ||
Total assets | 4,645,784 | 4,492,323 | ||
Current liabilities | ||||
Long-term debt due within one year | 67,700 | 66,000 | ||
Accounts payable | 570 | 735 | ||
Accounts payable - affiliate | 120,691 | 99,822 | ||
Taxes payable | 14 | 0 | ||
Interest accrued | 10,123 | 10,158 | ||
Deferred compensation | 14,420 | 13,240 | ||
Other current liabilities | 748 | 756 | ||
Total current liabilities | 214,266 | 190,711 | ||
Postretirement benefit obligations | 3,941 | 4,453 | ||
Other deferred credits | 1,313 | 1,813 | ||
Long-term debt, net | 1,472,108 | 1,538,323 | ||
Total liabilities | 1,691,628 | 1,735,300 | ||
Commitments and contingencies (Note 5) | ||||
Member’s equity | ||||
Member’s equity | 2,954,156 | 2,757,023 | ||
Total liabilities and member’s equity | $ 4,645,784 | $ 4,492,323 |
Schedule I Financial Statemen_6
Schedule I Financial Statements of Cleco Holdings (Parent Company Only) - Condensed Statements of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |||
Operating activities | |||||
Net cash provided by operating activities | $ 182,640 | $ 205,819 | $ 430,119 | ||
Investing activities | |||||
Return on equity investment in investee | 7,000 | 8,000 | 1,100 | ||
Net cash used in investing activities | (300,833) | (377,907) | (1,115,423) | ||
Financing activities | |||||
Draws on revolving credit facilities | 185,000 | 238,000 | 108,000 | ||
Payments on revolving credit facilities | (260,000) | (163,000) | (108,000) | ||
Payment of financing costs | (4,408) | (4,570) | (5,959) | ||
Net cash provided by financing activities | 178,910 | 119,758 | 687,813 | ||
Net increase (decrease) in cash, cash equivalents, restricted cash, and restricted cash equivalents | 60,717 | (52,330) | 2,509 | ||
Cash, cash equivalents, restricted cash, and restricted cash equivalents at beginning of period | 90,265 | [1] | 142,595 | 140,086 | |
Cash, cash equivalents, restricted cash, and restricted cash equivalents at end of period | 150,982 | [2] | 90,265 | [1] | 142,595 |
Supplementary cash flow information | |||||
Interest paid, net of amount capitalized | 126,061 | 130,544 | 130,988 | ||
Income taxes paid (refunded), net | 72 | (2,777) | (19) | ||
Parent Company | |||||
Operating activities | |||||
Net cash provided by operating activities | 56,054 | 73,452 | 189,644 | ||
Investing activities | |||||
Return on equity investment in investee | 0 | 0 | 1,625 | ||
Contribution to subsidiary | 0 | 0 | (962,170) | ||
Net cash used in investing activities | 0 | 0 | (960,545) | ||
Financing activities | |||||
Draws on revolving credit facilities | 0 | 88,000 | 75,000 | ||
Payments on revolving credit facilities | 0 | (88,000) | (75,000) | ||
Issuances of long-term debt | 0 | 0 | 700,000 | ||
Repayments of long-term debt | (66,000) | (64,000) | (370,000) | ||
Payment of financing costs | (1,268) | (2,838) | (5,929) | ||
Contribution from member | 0 | 0 | 384,900 | ||
Net cash provided by financing activities | (67,268) | (66,838) | 708,971 | ||
Net increase (decrease) in cash, cash equivalents, restricted cash, and restricted cash equivalents | (11,214) | 6,614 | (61,930) | ||
Cash, cash equivalents, restricted cash, and restricted cash equivalents at beginning of period | 21,622 | 15,008 | 76,938 | ||
Cash, cash equivalents, restricted cash, and restricted cash equivalents at end of period | 10,408 | 21,622 | 15,008 | ||
Supplementary cash flow information | |||||
Interest paid, net of amount capitalized | 57,688 | 62,745 | 56,768 | ||
Income taxes paid (refunded), net | $ 0 | $ (2,942) | $ (19) | ||
[1] | Includes cash and cash equivalents of $84,976, current restricted cash and cash equivalents of $4,545, and non-current restricted cash and cash equivalents of $744. | ||||
[2] | Includes cash and cash equivalents of $148,563, current restricted cash and cash equivalents of $1,674, and non-current restricted cash and cash equivalents of $745. |
Schedule I Financial Statemen_7
Schedule I Financial Statements of Cleco Holdings (Parent Company Only) - Summary of Significant Accounting Policies (Details) - Parent Company $ in Millions | Dec. 31, 2021USD ($) |
Condensed Financial Statements, Captions [Line Items] | |
Percent of restricted consolidated net assets of consolidated subsidiaries exceeding total consolidated net assets (in hundredths) | 25.00% |
Restricted net assets of consolidated subsidiaries | $ 1,760 |
Schedule I Financial Statemen_8
Schedule I Financial Statements of Cleco Holdings (Parent Company Only) - Debt (Details) | May 21, 2021USD ($) | Feb. 04, 2019USD ($) | Jan. 31, 2019USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Condensed Financial Statements, Captions [Line Items] | ||||||
Short-term debt outstanding | $ 0 | $ 75,000,000 | ||||
Long-term debt outstanding | 3,480,000,000 | |||||
Long-term debt and finance leases due within one year | 93,455,000 | 66,682,000 | ||||
For the year ending Dec. 31, | ||||||
2020 | 133,300,000 | |||||
2021 | 200,000,000 | |||||
2022 | 267,700,000 | |||||
2023 | 333,300,000 | |||||
Loans Payable | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Aggregate principal amount | $ 266,000,000 | |||||
Loans Payable | London Interbank Offered Rate (LIBOR) [Member] | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Basis spread on variable rate | 1.625% | |||||
Loans Payable | ABR | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Basis spread on variable rate | 0.625% | |||||
NRG South Central | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Repayments of long-term debt | $ 400,000,000 | $ 400,000,000 | ||||
Cleco Holdings | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Debt to capital ratio | 0.65 | |||||
Cleco Holdings | Line of Credit | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Borrowings outstanding | $ 0 | |||||
Cleco Holdings | Line of Credit | Revolving Credit Facility | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Commitment fees | 0.275% | |||||
Interest rate, potential additional interest | 0.125% | |||||
Commitment fee, potential additional fee | 0.05% | |||||
Cleco Holdings | Line of Credit | Revolving Credit Facility | London Interbank Offered Rate (LIBOR) [Member] | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Basis spread on variable rate | 1.625% | |||||
Cleco Holdings | Line of Credit | Revolving Credit Facility | ABR | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Basis spread on variable rate | 0.625% | |||||
Parent Company | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Short-term debt outstanding | $ 0 | 0 | ||||
Long-term debt outstanding | 1,540,000,000 | |||||
Long-term debt and finance leases due within one year | 67,700,000 | |||||
Debt to capital ratio | 0.650 | |||||
Repayments of long-term debt | 66,000,000 | $ 64,000,000 | $ 370,000,000 | |||
For the year ending Dec. 31, | ||||||
2019 | 66,700,000 | |||||
2020 | 133,300,000 | |||||
2021 | 200,000,000 | |||||
2022 | 267,700,000 | |||||
2023 | 333,300,000 | |||||
2024 | 400,000,000 | |||||
For the year ending Dec. 31, | ||||||
2022 | 0 | |||||
2023 | 165,000,000 | |||||
2024 | 200,000,000 | |||||
2025 | 0 | |||||
2026 | 535,000,000 | |||||
Thereafter | 650,000,000 | |||||
Parent Company | Line of Credit | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Aggregate principal amount | $ 175,000,000 | |||||
Borrowings outstanding | $ 0 | |||||
Parent Company | Line of Credit | Revolving Credit Facility | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Commitment fees | 0.275% | |||||
Interest rate, potential additional interest | 0.125% | |||||
Commitment fee, potential additional fee | 0.05% | |||||
Parent Company | Line of Credit | Revolving Credit Facility | London Interbank Offered Rate (LIBOR) [Member] | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Basis spread on variable rate | 1.625% | |||||
Parent Company | Line of Credit | Revolving Credit Facility | ABR | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Basis spread on variable rate | 0.625% | |||||
Parent Company | Loans Payable | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Aggregate principal amount | $ 266,000,000 |
Schedule I Financial Statemen_9
Schedule I Financial Statements of Cleco Holdings (Parent Company Only) - Cash Distributions and Equity Contributions (Details) | 12 Months Ended | ||||
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | May 21, 2021 | May 15, 2020 | |
Condensed Financial Statements, Captions [Line Items] | |||||
Contribution from member/parent | $ 384,900,000 | ||||
CLECO POWER | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Contributions from member | 20,000,000 | ||||
CLECO POWER | Cleco Holdings | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Contribution from member/parent | $ 0 | $ 0 | 0 | ||
Contributions from member | $ 0 | 0 | 20,000,000 | ||
CLECO POWER | MAXIMUM | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Ratio of total indebtedness to total capitalization | 0.650 | 0.650 | |||
Parent Company | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Ratio of total indebtedness to total capitalization | 0.650 | ||||
Cash distributions received from affiliates | $ 111,000,000 | 134,000,000 | 225,000,000 | ||
Parent Company | CLECO POWER | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Cash distributions received from affiliates | 0 | 0 | 20,000,000 | ||
Parent Company | CLECO CAJUN | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Cash distributions received from affiliates | 111,000,000 | 134,000,000 | 205,000,000 | ||
Parent Company | Cleco Holdings | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Contributions made to affiliates | 0 | 0 | |||
Contribution from member/parent | 0 | 0 | 384,900,000 | ||
Contributions from member | 0 | 0 | $ 0 | ||
Parent Company | Limited Liability Company | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Contributions made to affiliates | $ 0 | $ 962,200,000 |
Schedule I Financial Stateme_10
Schedule I Financial Statements of Cleco Holdings (Parent Company Only) - Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Contingency [Line Items] | |||
Federal and state income tax benefit | $ 13,111 | $ 35,718 | $ 43,165 |
Parent Company | |||
Income Tax Contingency [Line Items] | |||
Federal and state income tax benefit | (14,454) | (15,646) | (20,358) |
Equity income from subsidiaries - federal and state income tax expense | $ 27,565 | $ 51,364 | $ 63,523 |
Schedule II Valuation and Qua_2
Schedule II Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Allowance for Uncollectible Accounts | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
BALANCE AT BEGINNING OF PERIOD | $ 2,758 | $ 3,005 | $ 814 |
ADDITIONS | 5,463 | 6,176 | 2,323 |
DEDUCTIONS | 6,919 | 6,423 | 132 |
BALANCE AT END OF PERIOD | 1,302 | 2,758 | 3,005 |
Allowance for Uncollectible Accounts | CLECO POWER | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
BALANCE AT BEGINNING OF PERIOD | 2,758 | 3,005 | 814 |
ADDITIONS | 5,463 | 6,176 | 2,323 |
DEDUCTIONS | 6,919 | 6,423 | 132 |
BALANCE AT END OF PERIOD | 1,302 | 2,758 | 3,005 |
Unrestricted Storm Reserve | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
BALANCE AT BEGINNING OF PERIOD | 0 | 1,100 | 3,672 |
ADDITIONS | 0 | 12,329 | 4,000 |
DEDUCTIONS | 0 | 13,429 | 6,572 |
BALANCE AT END OF PERIOD | 0 | 0 | 1,100 |
Unrestricted Storm Reserve | CLECO POWER | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
BALANCE AT BEGINNING OF PERIOD | 0 | 1,100 | 3,672 |
ADDITIONS | 0 | 12,329 | 4,000 |
DEDUCTIONS | 0 | 13,429 | 6,572 |
BALANCE AT END OF PERIOD | 0 | 0 | 1,100 |
Restricted Storm Reserve | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
BALANCE AT BEGINNING OF PERIOD | 0 | 12,285 | 15,485 |
ADDITIONS | 0 | 44 | 800 |
DEDUCTIONS | 0 | 12,329 | 4,000 |
BALANCE AT END OF PERIOD | 0 | 0 | 12,285 |
Restricted Storm Reserve | CLECO POWER | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
BALANCE AT BEGINNING OF PERIOD | 0 | 12,285 | 15,485 |
ADDITIONS | 0 | 44 | 800 |
DEDUCTIONS | 0 | 12,329 | 4,000 |
BALANCE AT END OF PERIOD | $ 0 | $ 0 | $ 12,285 |