Document and Entity Information
Document and Entity Information | 3 Months Ended |
Mar. 31, 2020 | |
Cover [Abstract] | |
Entity Registrant Name | CLECO CORPORATE HOLDINGS LLC |
Entity Central Index Key | 0001089819 |
Entity Filer Category | Non-accelerated Filer |
Entity Emerging Growth Company | false |
Entity Small Business | false |
Document Type | S-4 |
Amendment Flag | false |
Consolidated Statements of Inco
Consolidated Statements of Income (FY) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating revenue | ||||||||||||
Electric operations | $ 311,157 | $ 312,949 | $ 1,496,736 | $ 1,181,907 | $ 1,097,632 | |||||||
Other operations | 44,908 | 39,397 | 182,832 | 82,332 | 79,580 | |||||||
Affiliate revenue | 0 | 0 | 0 | 0 | 0 | |||||||
Gross operating revenue | 356,065 | 352,346 | 1,679,568 | 1,264,239 | 1,177,212 | |||||||
Electric customer credits | (8,493) | (8,160) | (39,963) | (33,195) | (1,566) | |||||||
Operating revenue, net | 347,572 | $ 409,575 | $ 487,971 | $ 397,873 | 344,186 | $ 296,767 | $ 358,256 | $ 299,261 | $ 276,760 | 1,639,605 | 1,231,044 | 1,175,646 |
Operating expenses | ||||||||||||
Fuel used for electric generation | 76,637 | 104,054 | 466,831 | 382,556 | 339,346 | |||||||
Purchased power | 66,320 | 60,099 | 280,991 | 168,180 | 152,913 | |||||||
Other operations and maintenance | 74,766 | 60,731 | 291,031 | 197,032 | 197,608 | |||||||
Depreciation and amortization | 55,873 | 49,856 | 216,320 | 170,414 | 166,854 | |||||||
Taxes other than income taxes | 16,536 | 13,870 | 61,870 | 48,791 | 48,546 | |||||||
Merger transaction and commitment costs | 2,775 | 4,990 | 7,668 | 19,514 | 5,152 | |||||||
Total operating expenses | 292,907 | 293,600 | 1,324,711 | 986,487 | 910,419 | |||||||
Operating income | 54,665 | 75,573 | 101,539 | 87,196 | 50,586 | 50,004 | 86,110 | 63,709 | 44,734 | 314,894 | 244,557 | 265,227 |
Interest income | 1,157 | 1,491 | 6,090 | 6,073 | 1,424 | |||||||
Allowance for equity funds used during construction | (74) | 5,688 | 15,397 | 14,159 | 8,320 | |||||||
Other income (expense), net | (12,709) | 2,777 | 758 | (14,328) | (6,899) | |||||||
Interest charges | ||||||||||||
Interest charges, net | 35,328 | 36,115 | 147,346 | 131,348 | 125,200 | |||||||
Allowance for borrowed funds used during construction | (179) | (2,116) | (6,037) | (4,706) | (2,287) | |||||||
Total interest charges | 35,149 | 33,999 | 141,309 | 126,642 | 122,913 | |||||||
Income before income taxes | 7,890 | 26,543 | 195,830 | 123,819 | 145,159 | |||||||
Federal and state income tax expense | 1,562 | 5,986 | 43,165 | 29,382 | 7,079 | |||||||
Net income | $ 6,328 | $ 31,797 | $ 55,565 | $ 44,746 | $ 20,557 | $ 10,377 | $ 47,360 | $ 25,839 | $ 10,861 | $ 152,665 | $ 94,437 | $ 138,080 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (FY) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||||||||||
Net income | $ 6,328 | $ 31,797 | $ 55,565 | $ 44,746 | $ 20,557 | $ 10,377 | $ 47,360 | $ 25,839 | $ 10,861 | $ 152,665 | $ 94,437 | $ 138,080 |
Other comprehensive (loss) income, net of tax | ||||||||||||
Postretirement benefits (loss) gain | 414 | (135) | (19,299) | 5,296 | (4,421) | |||||||
Total other comprehensive (loss) income, net of tax | 414 | (135) | (19,299) | 5,296 | (4,421) | |||||||
Comprehensive income, net of tax | $ 6,742 | $ 20,422 | $ 133,366 | $ 99,733 | $ 133,659 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (FY) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||||
Net tax expense (benefit) of amortization of post-retirement benefit net losses | $ 146 | $ (47) | $ (6,808) | $ 1,868 | $ (2,764) |
Consolidated Balance Sheets (FY
Consolidated Balance Sheets (FY) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets | ||
Cash and cash equivalents | $ 116,292 | $ 110,175 |
Restricted cash and cash equivalents | 11,100 | 11,241 |
Customer accounts receivable (less allowance for doubtful accounts) | 83,591 | 50,043 |
Other accounts receivable | 35,731 | 27,196 |
Unbilled revenue | 33,207 | 35,314 |
Fuel inventory, at average cost | 83,061 | 82,836 |
Materials and supplies, at average cost | 118,858 | 92,671 |
Energy risk management assets | 7,023 | 23,355 |
Accumulated deferred fuel | 22,910 | 20,112 |
Cash surrender value of company-/trust-owned life insurance policies | 86,096 | 80,391 |
Prepayments | 7,711 | 7,911 |
Regulatory assets | 19,807 | 22,461 |
Other current assets | 12,688 | 1,256 |
Total current assets | 638,075 | 564,962 |
Property, plant, and equipment | ||
Property, plant, and equipment | 4,982,255 | 3,728,477 |
Accumulated depreciation | (454,874) | (303,727) |
Net property, plant, and equipment | 4,527,381 | 3,424,750 |
Construction work in progress | 117,630 | 354,045 |
Total property, plant, and equipment, net | 4,645,011 | 3,778,795 |
Equity investment in investee | 17,072 | 18,172 |
Goodwill | 1,490,797 | 1,490,797 |
Prepayments | 25,949 | 2,251 |
Operating lease right of use assets | 28,791 | 0 |
Restricted cash and cash equivalents | 15,203 | 18,670 |
Note receivable | 15,198 | 15,829 |
Regulatory assets | 422,431 | 425,330 |
Intangible assets | 138,103 | 84,307 |
Other deferred charges | 39,668 | 37,701 |
Total assets | 7,476,298 | 6,436,814 |
Current liabilities | ||
Long-term debt and finance leases due within one year | 125,986 | 21,128 |
Accounts payable | 158,863 | 156,589 |
Accounts payable - affiliate | 33,780 | 0 |
Customer deposits | 58,289 | 61,736 |
Provision for rate refund | 38,903 | 35,842 |
Taxes payable, net | 8,931 | 43,674 |
Interest accrued | 19,001 | 15,828 |
Energy risk management liabilities | 4,113 | 468 |
Regulatory liabilities - other | 6,675 | 2,496 |
Deferred compensation | 12,115 | 10,753 |
Other current liabilities | 44,683 | 30,536 |
Total current liabilities | 511,339 | 379,050 |
Long-term liabilities and deferred credits | ||
Accumulated deferred federal and state income taxes, net | 657,058 | 608,030 |
Postretirement benefit obligations | 283,075 | 249,264 |
Regulatory liabilities - other | 0 | 2,496 |
Regulatory liabilities - deferred taxes, net | 146,948 | 155,537 |
Restricted storm reserve | 12,285 | 15,485 |
Deferred lease revenue | 49,862 | 0 |
Intangible liabilities | 31,872 | 0 |
Asset retirement obligations | 23,173 | 6,881 |
Operating lease liabilities | 25,779 | 0 |
Other deferred credits | 27,222 | 20,846 |
Total long-term liabilities and deferred credits | 1,257,274 | 1,058,539 |
Long-term debt and finance leases, net | 3,064,679 | 2,874,485 |
Total liabilities | 4,833,292 | 4,312,074 |
Commitments and contingencies (Note 15) | ||
Member's equity | ||
Member's equity | 2,643,006 | 2,124,740 |
Total liabilities and member's equity | $ 7,476,298 | $ 6,436,814 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (FY) (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | |||
Customer accounts receivable, allowance for doubtful accounts | $ 2,123 | $ 3,005 | $ 814 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (FY) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Operating activities | |||||
Net income | $ 152,665 | $ 94,437 | $ 138,080 | ||
Adjustment to reconcile net income to net cash provided by operating activities | |||||
Depreciation and amortization | 245,682 | 187,426 | 186,326 | ||
Provision for doubtful accounts | 2,348 | 797 | 2,778 | ||
Unearned compensation expense | 5,409 | 5,837 | 3,745 | ||
Allowance for equity funds used during construction | (15,397) | (14,159) | (8,320) | ||
Loss on risk management assets and liabilities, net | 10,180 | 0 | 0 | ||
Deferred lease revenue | (8,439) | 0 | 0 | ||
Deferred income taxes | 40,081 | 6,543 | (41,966) | ||
Deferred fuel costs | 11,132 | (18,549) | 11,909 | ||
Cash surrender value of company-/trust-owned life insurance | (5,705) | 2,726 | (5,892) | ||
Changes in assets and liabilities | |||||
Accounts receivable | (9,532) | 3,123 | (25,584) | ||
Accounts receivable, affiliate | (1,041) | 635 | (622) | ||
Unbilled revenue | 2,107 | 1,084 | (2,129) | ||
Fuel inventory and materials and supplies | 18,463 | (2,981) | (44,995) | ||
Prepayments | (14,479) | 153 | 2,852 | ||
Accounts payable | 13,507 | 18,898 | 14,705 | ||
Accounts payable, affiliate | 3,175 | 0 | 0 | ||
Customer deposits | 5,888 | 13,757 | 12,381 | ||
Provision for merger commitments | (1,848) | (3,273) | (12,971) | ||
Postretirement benefit obligations | (10,981) | 4,646 | 4,884 | ||
Regulatory assets and liabilities, net | 90 | 3,032 | 12,531 | ||
Other deferred accounts | (7,147) | (9,748) | (8,380) | ||
Taxes accrued | (3,619) | 20,976 | 23,118 | ||
Interest accrued | 3,173 | 1,124 | (582) | ||
Deferred compensation | 1,316 | (1,521) | 308 | ||
Other operating | (6,909) | 2,798 | 3,252 | ||
Net cash provided by operating activities | 430,119 | 317,761 | 265,428 | ||
Investing activities | |||||
Additions to property, plant, and equipment | (323,791) | (291,061) | (236,932) | ||
Allowance for equity funds used during construction | 15,397 | 14,159 | 8,320 | ||
Proceeds from sale of property, plant, and equipment | 739 | 995 | 17,499 | ||
Reimbursement for property loss | 141 | 1,375 | 187 | ||
Issuance of note receivable | 0 | (16,800) | 0 | ||
Return of equity investment in investee | 1,100 | 0 | 500 | ||
Return of investment in company-owned life insurance | 3,761 | 0 | 0 | ||
Return of equity investment in tax credit fund | 1,625 | 2,775 | 7,502 | ||
Payment to acquire business, net of cash received | (814,969) | 0 | 0 | ||
Other investing | 574 | 397 | (630) | ||
Net cash (used in) provided by investing activities | (1,115,423) | (288,160) | (203,554) | ||
Financing activities | |||||
Draws on credit facilities | 108,000 | 0 | 179,000 | ||
Payments on credit facilities | (108,000) | 0 | (179,000) | ||
Issuances of long-term debt | 700,000 | 50,000 | 125,000 | ||
Repayments of long-term debt | (390,571) | (19,193) | (17,896) | ||
Payment of financing costs | (5,959) | (791) | (463) | ||
Contribution from member | 384,900 | 0 | 0 | ||
Distributions to member | 0 | (71,350) | (84,065) | ||
Other financing | (557) | (383) | (1,819) | ||
Net cash provided by (used in) financing activities | 687,813 | (41,717) | 20,757 | ||
Net increase (decrease) in cash, cash equivalents, restricted cash, and restricted cash equivalents | 2,509 | (12,116) | 82,631 | ||
Cash, cash equivalents, restricted cash, and restricted cash equivalents at beginning of period | 140,086 | [1] | 152,202 | 69,571 | |
Cash, cash equivalents, restricted cash, and restricted cash equivalents at end of period | 142,595 | [1],[2] | 140,086 | [1] | 152,202 |
Supplementary cash flow information | |||||
Interest paid, net of amount capitalized | 130,988 | 124,154 | 118,009 | ||
Supplementary non-cash investing and financing activities | |||||
Accrued additions to property, plant, and equipment | 16,124 | 56,450 | 31,083 | ||
Non-cash additions to property, plant, and equipment | 52 | 1,224 | 3,015 | ||
Incurrence of finance lease obligation - barges | $ 0 | $ 16,800 | $ 0 | ||
[1] | Includes cash and cash equivalents of $116,292, current restricted cash and cash equivalents of $11,100, and non-current restricted cash and cash equivalents of $15,203. | ||||
[2] | Includes cash and cash equivalents of $110,175, current restricted cash and cash equivalents of $11,241, and non-current restricted cash and cash equivalents of $18,670. |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (FY) (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Statement of Cash Flows [Abstract] | |||
Cash and cash equivalents | $ 350,231 | $ 116,292 | $ 110,175 |
Current restricted cash and cash equivalents | 4,054 | 11,100 | 11,241 |
Non-current restricted cash and cash equivalents | $ 9,899 | $ 15,203 | $ 18,670 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Member's Equity (FY) - USD ($) $ in Thousands | Total | MEMBERSHIP INTEREST | RETAINED EARNINGS/ (ACCUMULATED DEFICIT) | AOCI |
Balances, beginning of period at Dec. 31, 2016 | $ 2,046,763 | $ 2,069,376 | $ (24,113) | $ 1,500 |
Increase (Decrease) in Equity [Roll Forward] | ||||
Distributions to member | (84,065) | (84,065) | ||
Net income | 138,080 | 138,080 | ||
Total other comprehensive (loss) income, net of tax | (4,421) | (4,421) | ||
Balances, end of period at Dec. 31, 2017 | 2,096,357 | 2,069,376 | 29,902 | (2,921) |
Increase (Decrease) in Equity [Roll Forward] | ||||
Distributions to member | (71,350) | (71,350) | ||
Net income | 94,437 | 94,437 | ||
Total other comprehensive (loss) income, net of tax | 5,296 | 5,296 | ||
Reclassification of effect of tax rate change | 589 | (589) | ||
Balances, end of period at Dec. 31, 2018 | 2,124,740 | 2,069,376 | 53,578 | 1,786 |
Increase (Decrease) in Equity [Roll Forward] | ||||
Contributions from member | 384,900 | 384,900 | ||
Net income | 20,557 | 20,557 | ||
Total other comprehensive (loss) income, net of tax | (135) | (135) | ||
Balances, end of period at Mar. 31, 2019 | 2,530,062 | 2,069,376 | 459,035 | 1,651 |
Balances, beginning of period at Dec. 31, 2018 | 2,124,740 | 2,069,376 | 53,578 | 1,786 |
Increase (Decrease) in Equity [Roll Forward] | ||||
Contributions from member | 384,900 | 384,900 | ||
Net income | 152,665 | 152,665 | ||
Total other comprehensive (loss) income, net of tax | (19,299) | (19,299) | ||
Balances, end of period at Dec. 31, 2019 | 2,643,006 | 2,069,376 | 591,143 | (17,513) |
Increase (Decrease) in Equity [Roll Forward] | ||||
Net income | 6,328 | 6,328 | ||
Total other comprehensive (loss) income, net of tax | 414 | 414 | ||
Balances, end of period at Mar. 31, 2020 | $ 2,649,748 | $ 2,069,376 | $ 597,471 | $ (17,099) |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Q1) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating revenue | ||||||||||||
Electric operations | $ 311,157 | $ 312,949 | $ 1,496,736 | $ 1,181,907 | $ 1,097,632 | |||||||
Other operations | 44,908 | 39,397 | 182,832 | 82,332 | 79,580 | |||||||
Affiliate revenue | 0 | 0 | 0 | 0 | 0 | |||||||
Gross operating revenue | 356,065 | 352,346 | 1,679,568 | 1,264,239 | 1,177,212 | |||||||
Electric customer credits | (8,493) | (8,160) | (39,963) | (33,195) | (1,566) | |||||||
Operating revenue, net | 347,572 | $ 409,575 | $ 487,971 | $ 397,873 | 344,186 | $ 296,767 | $ 358,256 | $ 299,261 | $ 276,760 | 1,639,605 | 1,231,044 | 1,175,646 |
Operating expenses | ||||||||||||
Fuel used for electric generation | 76,637 | 104,054 | 466,831 | 382,556 | 339,346 | |||||||
Purchased power | 66,320 | 60,099 | 280,991 | 168,180 | 152,913 | |||||||
Other operations and maintenance | 74,766 | 60,731 | 291,031 | 197,032 | 197,608 | |||||||
Depreciation and amortization | 55,873 | 49,856 | 216,320 | 170,414 | 166,854 | |||||||
Taxes other than income taxes | 16,536 | 13,870 | 61,870 | 48,791 | 48,546 | |||||||
Merger transaction and commitment costs | 2,775 | 4,990 | 7,668 | 19,514 | 5,152 | |||||||
Total operating expenses | 292,907 | 293,600 | 1,324,711 | 986,487 | 910,419 | |||||||
Operating income | 54,665 | 75,573 | 101,539 | 87,196 | 50,586 | 50,004 | 86,110 | 63,709 | 44,734 | 314,894 | 244,557 | 265,227 |
Interest income | 1,157 | 1,491 | 6,090 | 6,073 | 1,424 | |||||||
Allowance for equity funds used during construction | (74) | 5,688 | 15,397 | 14,159 | 8,320 | |||||||
Other income (expense), net | (12,709) | 2,777 | 758 | (14,328) | (6,899) | |||||||
Interest charges | ||||||||||||
Interest charges, net | 35,328 | 36,115 | 147,346 | 131,348 | 125,200 | |||||||
Allowance for borrowed funds used during construction | (179) | (2,116) | (6,037) | (4,706) | (2,287) | |||||||
Total interest charges | 35,149 | 33,999 | 141,309 | 126,642 | 122,913 | |||||||
Income before income taxes | 7,890 | 26,543 | 195,830 | 123,819 | 145,159 | |||||||
Federal and state income tax expense | 1,562 | 5,986 | 43,165 | 29,382 | 7,079 | |||||||
Net income | $ 6,328 | $ 31,797 | $ 55,565 | $ 44,746 | $ 20,557 | $ 10,377 | $ 47,360 | $ 25,839 | $ 10,861 | $ 152,665 | $ 94,437 | $ 138,080 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Q1) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||||||||||
Net income | $ 6,328 | $ 31,797 | $ 55,565 | $ 44,746 | $ 20,557 | $ 10,377 | $ 47,360 | $ 25,839 | $ 10,861 | $ 152,665 | $ 94,437 | $ 138,080 |
Other comprehensive (loss) income, net of tax | ||||||||||||
Postretirement benefits gain (loss), net of tax expense (benefit) | 414 | (135) | (19,299) | 5,296 | (4,421) | |||||||
Total other comprehensive (loss) income, net of tax | 414 | (135) | (19,299) | 5,296 | (4,421) | |||||||
Comprehensive income, net of tax | $ 6,742 | $ 20,422 | $ 133,366 | $ 99,733 | $ 133,659 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income (Q1) (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||||
Tax (expense) benefit of postretirement benefits gain (loss) | $ (146) | $ 47 | $ 6,808 | $ (1,868) | $ 2,764 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Q1) (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Current assets | ||
Cash and cash equivalents | $ 350,231 | $ 116,292 |
Restricted cash and cash equivalents | 4,054 | 11,100 |
Customer accounts receivable (less allowance for credit losses) | 71,796 | 83,591 |
Other accounts receivable | 29,485 | 35,731 |
Unbilled revenue | 30,434 | 33,207 |
Fuel inventory, at average cost | 109,232 | 83,061 |
Materials and supplies, at average cost | 120,646 | 118,858 |
Energy risk management assets | 1,992 | 7,023 |
Accumulated deferred fuel | 16,353 | 22,910 |
Cash surrender value of company-/trust-owned life insurance policies | 75,411 | 86,096 |
Prepayments | 6,518 | 7,711 |
Regulatory assets | 18,643 | 19,807 |
Other current assets | 12,356 | 12,688 |
Total current assets | 847,151 | 638,075 |
Property/Utility, plant, and equipment | ||
Property, plant, and equipment | 5,038,241 | 4,982,255 |
Accumulated depreciation | (503,554) | (454,874) |
Net property, plant, and equipment | 4,534,687 | 4,527,381 |
Construction work in progress | 121,575 | 117,630 |
Total property, plant, and equipment, net | 4,656,262 | 4,645,011 |
Equity investment in investee | 17,072 | 17,072 |
Goodwill | 1,490,797 | 1,490,797 |
Prepayments | 27,794 | 25,949 |
Operating lease right of use assets | 28,447 | 28,791 |
Restricted cash and cash equivalents | 9,899 | 15,203 |
Note receivable | 15,031 | 15,198 |
Regulatory assets | 415,226 | 422,431 |
Intangible assets | 131,122 | 138,103 |
Other deferred charges | 37,394 | 39,668 |
Total assets | 7,676,195 | 7,476,298 |
Current liabilities | ||
Short-term debt | 238,000 | 0 |
Long-term debt and finance leases due within one year | 63,932 | 125,986 |
Accounts payable | 104,091 | 158,863 |
Accounts payable - affiliate | 33,780 | 33,780 |
Customer deposits | 59,192 | 58,289 |
Provision for rate refund | 29,735 | 38,903 |
Taxes payable, net | 23,902 | 8,931 |
Interest accrued | 41,731 | 19,001 |
Energy risk management liabilities | 9,697 | 4,113 |
Regulatory liabilities - other | 3,910 | 6,675 |
Deferred compensation | 9,371 | 12,115 |
Other current liabilities | 45,699 | 44,683 |
Total current liabilities | 663,040 | 511,339 |
Long-term liabilities and deferred credits | ||
Accumulated deferred federal and state income taxes, net | 655,027 | 657,058 |
Postretirement benefit obligations | 283,830 | 283,075 |
Regulatory liabilities - deferred taxes, net | 146,225 | 146,948 |
Restricted storm reserve | 8,324 | 12,285 |
Deferred lease revenue | 47,561 | 49,862 |
Intangible liabilities | 30,119 | 31,872 |
Asset retirement obligations | 23,489 | 23,173 |
Operating lease liabilities | 25,119 | 25,779 |
Other deferred credits | 30,474 | 27,222 |
Total long-term liabilities and deferred credits | 1,250,168 | 1,257,274 |
Long-term debt and finance leases, net | 3,113,239 | 3,064,679 |
Total liabilities | 5,026,447 | 4,833,292 |
Commitments and contingencies (Note 14) | ||
Member's equity | ||
Member's equity | 2,649,748 | 2,643,006 |
Total liabilities and member's equity | $ 7,676,195 | $ 7,476,298 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Q1) (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | |||
Customer accounts receivable, allowance for credit losses | $ 2,123 | $ 3,005 | $ 814 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Q1) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | |||
Operating activities | ||||
Net income | $ 6,328 | $ 20,557 | ||
Adjustments to reconcile net income to net cash provided by operating activities | ||||
Depreciation and amortization | 63,307 | 56,776 | ||
Provision for credit losses | 2,957 | 316 | ||
Unearned compensation expense | 1,788 | 948 | ||
Allowance for equity funds used during construction | 74 | (5,688) | ||
Loss on risk management assets and liabilities, net | 6,509 | 954 | ||
Deferred lease revenue | (2,301) | (1,440) | ||
Deferred income taxes | (2,900) | 5,425 | ||
Deferred fuel costs | 7,626 | 13,869 | ||
Cash surrender value of company-/trust-owned life insurance | 10,686 | (1,806) | ||
Changes in assets and liabilities | ||||
Accounts receivable | 13,310 | (6,929) | ||
Unbilled revenue | 2,773 | 5,109 | ||
Fuel inventory and materials and supplies | (27,928) | (1,939) | ||
Prepayments | (1,638) | 14 | ||
Accounts payable | (55,131) | (19,999) | ||
Accounts payable - affiliate | 0 | 3,102 | ||
Customer deposits | 2,731 | 2,598 | ||
Provision for merger commitments | 1,018 | (732) | ||
Postretirement benefit obligations | 1,315 | 192 | ||
Regulatory assets and liabilities, net | (721) | 5,173 | ||
Other deferred accounts | (4,571) | (540) | ||
Taxes accrued | 14,563 | 5,403 | ||
Interest accrued | 22,730 | 28,662 | ||
Deferred compensation | (2,743) | 152 | ||
Other operating | 424 | (2,048) | ||
Net cash provided by operating activities | 60,206 | 108,129 | ||
Investing activities | ||||
Additions to property, plant, and equipment | (65,624) | (83,679) | ||
Allowance for equity funds used during construction | (74) | 5,688 | ||
Payment to acquire business, net of cash acquired | 0 | (814,969) | ||
Other investing | 285 | 299 | ||
Net cash (used in) provided by investing activities | (65,413) | (892,661) | ||
Financing activities | ||||
Draws on credit facilities | 238,000 | 108,000 | ||
Payments on credit facilities | 0 | (108,000) | ||
Issuances of long-term debt | 0 | 400,000 | ||
Repayment of long-term debt | (11,055) | (10,382) | ||
Payment of financing costs | 0 | (3,785) | ||
Contributions from member | 0 | 384,900 | ||
Other financing | (149) | (134) | ||
Net cash provided by (used in) financing activities | 226,796 | 770,599 | ||
Net (decrease) increase in cash, cash equivalents, restricted cash, and restricted cash equivalents | 221,589 | (13,933) | ||
Cash, cash equivalents, restricted cash, and restricted cash equivalents at beginning of period | [2] | 142,595 | [1] | 140,086 |
Cash, cash equivalents, restricted cash, and restricted cash equivalents at end of period | 364,184 | [3] | 126,153 | |
Supplementary cash flow information | ||||
Interest paid, net of amount capitalized | 9,077 | 5,752 | ||
Supplementary non-cash investing and financing activities | ||||
Accrued additions to property, plant, and equipment | $ 11,854 | $ 56,670 | ||
[1] | Includes cash and cash equivalents of $110,175, current restricted cash and cash equivalents of $11,241, and non-current restricted cash and cash equivalents of $18,670. | |||
[2] | Includes cash and cash equivalents of $116,292, current restricted cash and cash equivalents of $11,100, and non-current restricted cash and cash equivalents of $15,203. | |||
[3] | Includes cash and cash equivalents of $350,231, current restricted cash and cash equivalents of $4,054, and non-current restricted cash and cash equivalents of $9,899. |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows (Q1) (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Statement of Cash Flows [Abstract] | |||
Cash and cash equivalents | $ 350,231 | $ 116,292 | $ 110,175 |
Restricted cash and cash equivalents | 4,054 | 11,100 | 11,241 |
Non-current restricted cash and cash equivalents | $ 9,899 | $ 15,203 | $ 18,670 |
Condensed Consolidated Statem_6
Condensed Consolidated Statements of Changes in Member's Equity (Q1) (Unaudited) - USD ($) $ in Thousands | Total | MEMBERSHIP INTEREST | RETAINED EARNINGS | AOCI |
Balances, beginning of period at Dec. 31, 2016 | $ 2,046,763 | $ 2,069,376 | $ (24,113) | $ 1,500 |
Increase (Decrease) in Equity [Roll Forward] | ||||
Net income | 138,080 | 138,080 | ||
Other comprehensive income (loss), net of tax | (4,421) | (4,421) | ||
Balances, end of period at Dec. 31, 2017 | 2,096,357 | 2,069,376 | 29,902 | (2,921) |
Increase (Decrease) in Equity [Roll Forward] | ||||
Net income | 94,437 | 94,437 | ||
Other comprehensive income (loss), net of tax | 5,296 | 5,296 | ||
Balances, end of period at Dec. 31, 2018 | 2,124,740 | 2,069,376 | 53,578 | 1,786 |
Increase (Decrease) in Equity [Roll Forward] | ||||
Contributions from member | 384,900 | 384,900 | ||
Net income | 20,557 | 20,557 | ||
Other comprehensive income (loss), net of tax | (135) | (135) | ||
Balances, end of period at Mar. 31, 2019 | 2,530,062 | 2,069,376 | 459,035 | 1,651 |
Balances, beginning of period at Dec. 31, 2018 | 2,124,740 | 2,069,376 | 53,578 | 1,786 |
Increase (Decrease) in Equity [Roll Forward] | ||||
Contributions from member | 384,900 | 384,900 | ||
Net income | 152,665 | 152,665 | ||
Other comprehensive income (loss), net of tax | (19,299) | (19,299) | ||
Balances, end of period at Dec. 31, 2019 | 2,643,006 | 2,069,376 | 591,143 | (17,513) |
Increase (Decrease) in Equity [Roll Forward] | ||||
Net income | 6,328 | 6,328 | ||
Other comprehensive income (loss), net of tax | 414 | 414 | ||
Balances, end of period at Mar. 31, 2020 | $ 2,649,748 | $ 2,069,376 | $ 597,471 | $ (17,099) |
The Company (FY)
The Company (FY) | 12 Months Ended |
Dec. 31, 2019 | |
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 10 generating units with a total nameplate capacity of 3,360 MW and serves approximately 288,000 customers in Louisiana through its retail business and supplies wholesale power in Louisiana and Mississippi. Cleco Power also owns a 50% interest in an entity that owns lignite reserves. Cleco Power owns all of the outstanding membership interests in Cleco Katrina/Rita, a special purpose entity that is consolidated with Cleco Power in its financial statements. • Cleco Cajun, an unregulated electric utility subsidiary, which owns eight generating assets with a rated capacity of 3,555 MW and supplies wholesale power and capacity in Arkansas, Louisiana, and Texas. Cleco Cajun owns all of the outstanding membership interest in Cottonwood Energy. Upon the closing of the Cleco Cajun Transaction, Cottonwood Energy entered into the Cottonwood Sale Leaseback. For more information on the Cleco Cajun Transaction, see Note 3 — “Business Combinations.” • Cleco’s other operations consist of the following: o Cleco Holdings, a holding company, o Support Group, a shared services subsidiary, o Diversified Lands, an investment subsidiary, and o Attala and Perryville, two subsidiaries that owned and operated transmission interconnection facilities prior to the assets being sold by Cleco on December 29, 2017. |
Summary of Significant Accounti
Summary of Significant Accounting Policies (FY) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Accounting Policies [Abstract] | ||
Summary of Significant Accounting Policies | Note 1 — Summary of Significant Accounting Policies Principles of Consolidation The accompanying condensed consolidated financial statements of Cleco include the accounts of Cleco and its majority-owned subsidiaries after elimination of intercompany accounts and transactions. Cleco’s condensed consolidated financial statements include the financial results of Cleco Cajun from the closing of the Cleco Cajun Transaction on February 4, 2019, through March 31, 2020. For more information about the Cleco Cajun Transaction, see Note 2 — “Business Combinations.” Basis of Presentation The condensed consolidated financial statements of Cleco and Cleco Power have been prepared in accordance with GAAP for interim financial information and with the instructions to the Form 10-Q and Regulation S-X. Accordingly, these condensed consolidated financial statements do not include all of the information and notes required by GAAP for annual financial statements. The year-end condensed consolidated balance sheet data was derived from audited financial statements. Because the interim condensed consolidated financial statements and the accompanying notes do not include all of the information and notes required by GAAP for annual financial statements, the condensed consolidated financial statements and other information included in this Quarterly Report on Form 10-Q should be read in conjunction with the consolidated financial statements and accompanying notes in the Registrants’ Combined Annual Report on Form 10-K for the fiscal year ended December 31, 2019. These condensed consolidated financial statements, in the opinion of management, reflect all normal recurring adjustments that are necessary to fairly state the financial position and results of operations of Cleco and Cleco Power. Amounts reported in Cleco and Cleco Power’s interim financial statements are not necessarily indicative of amounts expected for the annual periods due to the effects of seasonal temperature variations on energy consumption, regulatory rulings, the timing of maintenance on electric generating units, changes in mark-to-market valuations, changing commodity prices, discrete income tax items, and other factors. On March 11, 2020, the World Health Organization declared the current outbreak of COVID-19 to be a global pandemic, and on March 13, 2020, the U.S. declared a national emergency. In response to these declarations and the rapid spread of COVID-19, federal, state and local governments have 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. Cleco has modified some of its business operations, as these restrictions have significantly impacted many sectors of the economy, including record levels of unemployment, with businesses, nonprofit organizations, and governmental entities modifying, curtailing, or ceasing normal operations. Cleco has also modified certain business practices to conform to government restrictions and best practices encouraged by the Centers for Disease Control and Prevention, the World Health Organization, and other governmental and regulatory authorities. 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 at this time, due to numerous uncertainties. 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 development of effective treatments, the duration of the outbreak, 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. In preparing financial statements that conform to GAAP, management must make estimates and assumptions that affect the reported amounts of assets and liabilities, the reported amounts of revenues and expenses, and the disclosure of contingent assets and liabilities at the date of the financial statements. Actual results could differ from those estimates. For information on recent authoritative guidance and its effect on financial results, see Note 3 — “Recent Authoritative Guidance.” Restricted Cash and Cash Equivalents Various agreements to which Cleco is subject contain covenants that restrict its use of cash. As certain provisions under these agreements are met, cash is transferred out of related escrow accounts and becomes available for its intended purposes and/or general corporate purposes. Cleco and Cleco Power’s restricted cash and cash equivalents consisted of the following: Cleco (THOUSANDS) AT MAR. 31, 2020 AT DEC. 31, 2019 Current Cleco Katrina/Rita’s storm recovery bonds $ 2,623 $ 9,632 Cleco Power’s charitable contributions 1,200 1,200 Cleco Power’s rate credit escrow 231 268 Total current 4,054 11,100 Non-current Diversified Lands’ mitigation escrow 23 21 Cleco Cajun’s defense fund 720 719 Cleco Cajun’s margin deposits 100 100 Cleco Power’s future storm restoration costs 8,315 12,269 Cleco Power’s charitable contributions 741 2,094 Total non-current 9,899 15,203 Total restricted cash and cash equivalents $ 13,953 $ 26,303 Cleco Power (THOUSANDS) AT MAR. 31, 2020 AT DEC. 31, 2019 Current Cleco Katrina/Rita’s storm recovery bonds $ 2,623 $ 9,632 Charitable contributions 1,200 1,200 Rate credit escrow 231 268 Total current 4,054 11,100 Non-current Future storm restoration costs 8,315 12,269 Charitable contributions 741 2,094 Total non-current 9,056 14,363 Total restricted cash and cash equivalents $ 13,110 $ 25,463 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 storm recovery bonds. The change from December 31, 2019, to March 31, 2020, was due to Cleco Katrina/Rita using $11.1 million for the final storm recovery bond principal payment and $0.3 million for the related final interest payment, partially offset by collections of $4.4 million net of administration fees. The remaining $2.6 million of restricted cash is expected to be used for final administrative and winding up activities of Cleco Katrina/Rita. 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. While the LPSC has issued a moratorium on disconnects of customers for nonpayment on March 13, 2020, and Cleco’s service territory experienced a recent decline in the economy related to the COVID-19 outbreak, the economic outlook at March 31, 2020, was still within range of Cleco’s 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 RECEIVABLE OTHERS * TOTAL Balances, Dec. 31, 2019 $ 3,005 $ 1,250 $ 4,255 CECL adoption 71 — 71 Current period provision 2,498 388 2,886 Charge-offs (4,092 ) — (4,092 ) Recovery 641 — 641 Balances, Mar. 31, 2020 $ 2,123 $ 1,638 $ 3,761 * Cleco Power (THOUSANDS) ACCOUNTS RECEIVABLE Balances, Dec. 31, 2019 $ 3,005 CECL adoption 71 Current period provision 2,498 Charge-offs (4,092 ) Recovery 641 Balances, Mar. 31, 2020 $ 2,123 Fair Value Measurements and Disclosures Various accounting pronouncements require certain assets and liabilities to be measured at their fair values. Some assets and liabilities are required to be measured at their fair value each reporting period, while others are required to be measured only one time, generally the date of acquisition or debt issuance. Cleco and Cleco Power disclose the fair value of certain assets and liabilities by one of three levels when required for recognition purposes. For more information about fair value levels, see Note 7 — “Fair Value Accounting.” Derivatives and Other Risk Management Activity Cleco’s Energy Market Risk Management Policy authorizes hedging of commodity price risk with physical or financially settled derivative instruments. Some of these contracts may qualify for the normal purchase, normal sale (NPNS) exception under derivative accounting guidance. Contracts that do not qualify for NPNS accounting treatment or are not elected for NPNS accounting treatment are marked-to-market and recorded on the balance sheet at their fair value. Additionally, Cleco Power and Cleco Cajun are awarded and/or purchase FTRs in auctions facilitated by MISO. FTRs represent economic hedges of future congestion charges that will be incurred in serving customer load. FTRs are derivatives not designated as hedging instruments for accounting purposes. Cleco Power’s FTRs are marked-to-market with the resulting unrealized gains or losses deferred as a component of deferred fuel assets or liabilities in accordance with regulatory policy. At settlement, realized gains or losses are included in the FAC and reflected on customers’ bills as a component of the fuel charge. Cleco Cajun’s FTRs are marked-to-market with the resulting unrealized gains and losses recorded on the income statement as a component of purchased power expense. At settlement, realized gains or losses are also recorded on the income statement as a component of purchased power expense. Cleco Cajun entered into other commodity derivative contracts during the three months ended March 31, 2020. 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 for gas related derivative contracts or purchased power for power related derivative contracts. At settlement, realized gains or losses are also recorded on the income statement as a component of fuel expense for gas related derivative contracts or purchased power for power related derivative contracts. For more information on FTRs and other commodity derivatives, see Note 7 — “Fair Value Accounting — Commodity Contracts.” Cleco may also enter into contracts to mitigate the volatility in interest rate risk. These contracts include, but are not limited to, interest rate swaps and treasury rate locks. For each reporting period presented, the Registrants did not enter into any contracts to mitigate the volatility in interest rate risk. | 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, 2019. 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 annually 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 Intangible assets include Cleco Katrina/Rita’s right to bill and collect storm recovery charges, fair value adjustments for long-term wholesale power supply agreements as well as a fair value adjustment for the valuation of the Cleco trade name. Intangible liabilities also include fair value adjustments for long-term wholesale power supply agreements and a fair value adjustment for the LTSA assumed for maintenance services related to the Cottonwood Plant. The 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. Impairment will be 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 will be 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 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 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 through the ratemaking process. Regulatory assets and liabilities are amortized consistent with the treatment of the related cost in the ratemaking process. Pursuant to this regulatory approval, 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. As part of the Cleco Cajun Transaction, Cleco recognized $15.3 million of AROs primarily related to the retirement of Cleco Cajun’s ash management areas. At December 31, 2019, management’s analysis confirmed that no additional adjustments were needed to update Cleco or Cleco Power’s ARO balance. For more information on Cleco Power’s current AROs, see Note 6 — “Regulatory Assets and Liabilities — AROs.” 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, 2019, and 2018 were $168.6 million and $7.2 million, respectively. The amounts of unamortized computer software costs on Cleco Power’s Consolidated Balance Sheets at December 31, 2019, and 2018 were $166.2 million and $5.8 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, 2019, 2018, and 2017 is shown in the following tables: Cleco FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2019 2018 2017 Amortization $ 4,917 $ 2,154 $ 2,367 Cleco Power FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2019 2018 2017 Amortization $ 4,321 $ 1,607 $ 1,887 Upon retirement or disposition, the cost of Cleco Power and Cleco Cajun’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 6 – 95 10 – 95 Distribution 15 – 50 15 – 50 Transmission 5 – 55 5 – 55 Other utility plant 2 – 45 5 – 45 Other property, plant, and equipment 5 – 45 5 – 45 At December 31, 2019, and 2018, Cleco and Cleco Power’s property, plant, and equipment consisted of the following: Cleco AT DEC. 31, (THOUSANDS) 2019 2018 Utility plants Generation $ 2,812,843 $ 1,949,042 Distribution 1,153,086 1,081,650 Transmission 660,279 519,269 Other utility plant 350,683 174,010 Other property, plant, and equipment 5,364 4,506 Total property, plant, and equipment 4,982,255 3,728,477 Accumulated depreciation (454,874 ) (303,727 ) Net property, plant, and equipment $ 4,527,381 $ 3,424,750 Cleco Power AT DEC. 31, (THOUSANDS) 2019 2018 Regulated utility plants Generation $ 2,633,590 $ 2,476,733 Distribution 1,593,104 1,523,885 Transmission 805,701 731,432 Other utility plant 457,062 282,954 Total property, plant, and equipment 5,489,457 5,015,004 Accumulated depreciation (1,905,031 ) (1,804,563 ) Net property, plant, and equipment $ 3,584,426 $ 3,210,441 On February 4, 2019, Cleco acquired $741.2 million of unregulated property, plant, and equipment as a result of the Cleco Cajun Transaction. These assets were recorded at fair market value at the date of the acquisition. For more information on the Cleco Cajun Transaction, see Note 3 — “Business Combinations.” During 2019, Cleco Power’s regulated utility property, plant, and equipment increased primarily due to the in-service of the START project, St. Mary Clean Energy Center project, Terrebonne to Bayou Vista Transmission project, Coughlin Pipeline project, and general installation and rehabilitation of transmission, distribution, and generation assets. 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, 2019, and 2018, Cleco Power had deferred $1.4 million, 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 Fuel inventory consists primarily of petroleum coke, coal, limestone, lignite, and natural gas used to generate electricity. 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. Both fuel inventory and materials and supplies are recorded at the lower of cost or market value using the average cost method and are issued from stock using the average cost of existing stock. Materials and supplies are recorded when purchased and subsequently charged to expense or capitalized to property, plant, and equipment when installed. Accounts Receivable Accounts receivable are recorded at the invoiced amount and do not bear interest. It is the policy of management to review the outstanding accounts receivable monthly, as well as the bad debt write-offs experienced in the past, and establish an allowance for doubtful accounts. Account balances are charged off against the allowance when management determines it is probable the receivable will not be recovered. 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 funded 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, 2019, and 2018, the general liability and workers compensation reserves together were $4.3 million and $4.8 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. 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. Cleco and Cleco Power’s restricted cash and cash equivalents consisted of: Cleco AT DEC. 31, (THOUSANDS) 2019 2018 Current Cleco Katrina/Rita’s storm recovery bonds $ 9,632 $ 9,505 Cleco Power’s charitable contributions 1,200 1,200 Cleco Power’s rate credit escrow 268 536 Total current 11,100 11,241 Non-current Diversified Lands’ mitigation escrow 21 21 Cleco Cajun’s defense fund 719 — Cleco Cajun’s margin deposits 100 — Cleco Power’s future storm restoration costs 12,269 15,391 Cleco Power’s charitable contributions 2,094 2,753 Cleco Power’s rate credit escrow — 505 Total non-current 15,203 18,670 Total restricted cash and cash equivalents $ 26,303 $ 29,911 Cleco Power AT DEC. 31, (THOUSANDS) 2019 2018 Current Cleco Katrina/Rita’s storm recovery bonds $ 9,632 $ 9,505 Charitable contributions 1,200 1,200 Rate credit escrow 268 536 Total current 11,100 11,241 Non-current Future storm restoration costs 12,269 15,391 Charitable contributions 2,094 2,753 Rate credit escrow — 505 Total non-current 14,363 18,649 Total restricted cash and cash equivalents $ 25,463 $ 29,890 Cleco Katrina/Rita has the right to bill and collect storm restoration costs from Cleco Power’s customers. As cash is collected, it is restricted for payment of administration fees, interest, and principal on storm recovery bonds. During 2019, Cleco Katrina/Rita collected $22.2 million net of administration fees and remitted $20.6 million for scheduled storm recovery bond principal payments and $1.5 million for related interest payments. As part of the Cleco Cajun Transaction, Cleco acquired restricted cash of $0.7 million to be used by Cleco Cajun’s cooperative customers for defense funds in the event of potential takeovers. There is no further obligation of Cleco with respect to such expenses, including the replenishment of the fund. 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 probable. There were no impairments recorded for 2019, 2018, or 2017. For more information on Cleco’s equity investments, see Note 14 — “Variable Interest Entities.” 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. Excise 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/Excise 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 and Cleco Power’s Consolidated Statements of Income but are reflected at gross amounts on Cleco and Cleco Power’s Consolidated Balance Sheets as a receivable until the tax is collected and as a payable until the liability is paid. Cleco currently does not have any excise taxes 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. The composite AFUDC rate, including borrowed and other funds, was 10.71% on a pretax basis (8.37% net of tax) for 2019, 9.58% on a pretax basis (7.08% net of tax) for 2018, and 11.07% on a pretax basis (6.81% net of tax) for 2017. 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.” Derivatives and Other Risk Management Activity Cleco’s Energy Market Risk Management Policy authorizes hedging of commodity price risk with physical or financially settled derivative instruments. Some of these contracts may qualify for the normal purchase, normal sale (NPNS) exception under derivative accounting guidance. Contracts that do not qualify for NPNS accounting treatment or are not elected for NPNS accounting treatment are marked-to-market and recorded on the balance sheet at their fair value. Cleco Power and Cleco Cajun are awarded and/or purchase FTRs in auctions facilitated by MISO. The majority of these FTRs are purchased in annual auctions during the second quarter, but additional FTRs may be purchased in monthly auctions. FTRs represent economic hedges of future congestion charges that will be incurred in serving customer load. FTRs are derivatives not designated as hedging instruments for accounting purposes. Cleco Power’s FTRs are marked-to-market with the resulting unrealized gains or losses deferred as a component of deferred fuel assets or liabilities in accordance with regulatory policy. At settlement, realized gains or losses are included in the FAC and reflected on customers’ bills as a component of the fuel charge. Cleco Cajun’s FTRs are marked-to-market with the resulting unrealized gains and losses recorded on the income statement as a component of purchased power expense. At settlement, realized gains or losses are also recorded on the income statement as a component of purchased power expense. Cleco Cajun entered into other commodity derivative contracts during 2019. 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 — 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 accounts for leases in accordance with accounting guidance effective January 1, 2019. For more information on this guidance, see — “Recent Authoritative Guidance.” Cleco determines if a contract is a lease at its inception. If a contract is determined to be a lease, Cleco recognizes a ROU asset and lease liability at the commencement date based on the present value of lease payments over the lease term. The present value of the lease payments is determined by using the implicit interest rate if readily determinable. Cleco’s incremental borrowing rate for a term similar to the duration of the lease based on information available at the commencement date is used if the implicit interest rate is not readily determinable. Cleco recognizes ROU assets and lease liabilities for leasing arrangements with terms greater than one year. Except for the marine transportation asset class, Cleco accounts for lease and non-lease components in a contract as a single lease component for all classes of underlying assets. Cleco’s marine transportation contracts, which include barges and towboats, contain non-lease components, such as maintenance and labor. Cleco allocates the consideration in these contracts between lease and non-lease components based on estimates of fair value from third parties that typically execute leases for this class of assets. Expense for a lessee operating lease is recognized as a single lease cost on a straight-line basis over the lease term and reflected in the appropriate income statement line item based on the leased asset’s function. Income for a lessor operating lease is recognized as a single lease income item on a straight-line basis over the lease term and reflected in the appropriate income statement line item based on the lease asset’s function. Recent Authoritative Guidance In February 2016, FASB amended the guidance to account for leases. Effective January 1, 2019, Cleco adopted the amended guidance using the optional transition method that allows an entity to recognize a cumulative-effect adjustment to the opening balance of retained earnings at the date of adoption, apply the new disclosure requirements beginning in the period of adoption, and continue to present comparative period information as required under previous guidance. In addition, Cleco elected the transition practical expedient that permits an entity to not reassess prior conclusions about lease identification, lease classification, and initial direct costs under the new standard, as well as the practical expedient that permits entities to not assess existing land easements under the new standard. Adoption of this standard resulted in the recognition of ROU assets and lease liabilities for Cleco and Cleco Power’s operating leases of $16.1 million and $15.9 million, respectively. There was no impact to retained earnings as a result of adopting this standard. Adoption of this standard did not materially impact the Registrants’ results of operations or liquidity, and their accounting for finance leases is substantially unchanged. For more information on Cleco’s lease obligations, see Note 4 — “Leases.” In June 2016, FASB amended the guidance for the measurement of credit losses on receivables and certain other assets. The guidance requires use of a current expected loss model, which may result in earlier recognition of credit losses. The adoption of this guidance is effective for fiscal years beginning after December 15, 2019, including interim periods within those years. Management does not expect this guidance to have a significant impact on the results of operations, financial condition, or cash flows of the Registrants. In August 2018, FASB issued guidance that allows for the deferral of certain implementation costs incurred in a cloud computing arrangement. The adoption of this guidance is effective for annual reporting periods beginning after December 15, 2019, including interim periods within those years. Early adoption is permitted. Management does not expect this guidance to have significant impact on the results of operations, financial condition, or cash flows of the Registrants. |
Business Combinations (FY)
Business Combinations (FY) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Business Combinations [Abstract] | ||
Business Combinations | Note 2 — 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. Accounting for the Cleco Cajun Transaction As consideration for all of the outstanding membership interest in South Central Generating, Cleco paid cash of approximately $962.2 million, which represents the $1.0 billion acquisition price net of working capital and other adjustments of $37.8 million. 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) AT FEB. 4, 2019 Current assets Cash and cash equivalents $ 146,494 Customer and other accounts receivable 49,809 Fuel inventory 22,060 Materials and supplies 25,659 Energy risk management assets 4,193 Other current assets 10,056 Non-current assets Property, plant, and equipment, net 741,203 Prepayments 36,166 Restricted cash and cash equivalents 707 Intangible assets 98,900 Other deferred charges 133 Total assets acquired 1,135,380 Current liabilities Accounts payable 38,478 Taxes payable 723 Energy risk management liabilities 241 Other current liabilities 14,570 Non-current liabilities Accumulated deferred federal and state income taxes, net 7,165 Deferred lease revenue 58,300 Intangible liabilities 38,300 Asset retirement obligations 15,323 Operating lease liabilities 110 Total liabilities assumed 173,210 Total purchase price consideration $ 962,170 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 three months ended March 31, 2020. Pro forma Impact of the Cleco Cajun Transaction The following table includes the unaudited pro forma financial information reflecting the consolidated results of operations of Cleco as if the Cleco Cajun Transaction had taken place on January 1, 2018. The pro forma net income for the three months ended March 31, 2019, was adjusted to exclude nonrecurring transaction-related expenses of $3.9 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 date indicated, or the future consolidated results of operations of the combined companies. Unaudited Pro Forma Financial Information (THOUSANDS) FOR THE THREE MONTHS ENDED MAR. 31, 2019 Operating revenue, net $ 381,796 Net income $ 32,986 | 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. As a result, Cleco Cajun owns: • a 176-MW natural-gas-fired generating station located in Sterlington, Louisiana, • a 220-MW natural-gas-fired facility and a 210-MW natural-gas-fired peaking facility, both located in Jarreau, Louisiana, • a 580-MW coal-fired generating facility, a 540-MW natural-gas-fired generating station, and 58% of a 588-MW coal-fired generating station all located in New Roads, Louisiana, • 225 MW of a 300-MW natural-gas-fired peaking facility located in Jennings, Louisiana, • a 1,263-MW natural-gas-fired generating station located in Deweyville, Texas (the Cottonwood Plant), • wholesale contracts to provide electricity and capacity to nine Louisiana cooperatives, three municipalities across Arkansas, Louisiana, and Texas, and one investor-owned utility, • transmission assets, which consist of equipment and land required to connect the generation stations and the wholesale customers to the transmission grid, and • current assets consisting of cash, inventory, receivables and other miscellaneous assets. Cleco Cajun, NRG Energy, and South Central Generating each made customary representations, warranties and covenants in the Cleco Cajun Transaction, which include customary indemnification provisions. Cleco Holdings has agreed to guarantee the obligations of Cleco Cajun, subject to certain limitations. In addition, a lease agreement was executed and delivered between Cottonwood Energy and a special-purpose entity that is a subsidiary of NRG Energy pursuant to which NRG Energy will lease back the Cottonwood Plant and will operate it no later than May 2025. Upon closing, Cottonwood Energy became a subsidiary of Cleco Cajun. Regulatory Matters In January 2019, the LPSC approved the Cleco Cajun Transaction. Approval of the transaction was conditioned upon certain commitments, including holding Cleco Power ratepayers harmless for any adverse impacts, increased costs of debt or equity, and credit rating downgrades attributable to the Cleco Cajun Transaction; the repayment of $400.0 million of Cleco Holdings’ debt by 2024; and a $4.0 million annual reduction to Cleco Power’s retail customer rates. For more information about the debt and rate reduction commitments, see Note 9 — “Debt” and Note 6 — “Regulatory Assets and Liabilities,” respectively. South Central Generating In 2017, Louisiana Generating received insurance settlement proceeds for costs incurred to resolve a lawsuit which was brought by the EPA and the LDEQ against Louisiana Generating related to Big Cajun II, Unit 3. Entergy Gulf States, as co-owner of Big Cajun II, Unit 3, is expected to be allocated a portion of the insurance settlement proceeds. Any amount allocated to Entergy Gulf States will be determined by ongoing litigation and negotiations. South Central Generating estimated this amount to be $10.0 million. As part of the Cleco Cajun Transaction, Cleco Cajun assumed the $10.0 million contingent liability and NRG Energy indemnified Cleco for losses associated with this litigation matter. As a result, Cleco also recorded a $10.0 million indemnification asset, which was included in the purchase price allocation. Prior to the Cleco Cajun Transaction, South Central Generating was involved in various litigation matters, including environmental and contract proceedings, before various courts regarding matters arising out of the ordinary course of business. Management is unable to estimate any potential losses that Cleco Cajun may ultimately be responsible for with respect to any one of these matters. As part of the Cleco Cajun Transaction, NRG Energy indemnified Cleco for losses, as of the closing date, associated with matters that existed as of the closing date, including pending litigation. Accounting for the Cleco Cajun Transaction As consideration for all of the outstanding membership interest in South Central Generating, Cleco paid cash of approximately $962.2 million, which represents the $1.0 billion acquisition price net of working capital and other adjustments of $37.8 million. In connection with the Cleco Cajun Transaction on February 4, 2019, Cleco Holdings borrowed $300.0 million under a bridge loan agreement and $100.0 million under a term loan agreement. Both loan agreements are variable rate debt and have a three-year term. Both loan agreements contain certain financial covenants, including requiring Cleco Holdings to maintain (i) a debt to capital ratio (as defined in the applicable agreement) below 65% and (ii) a rating applicable to Cleco’s senior debt rating (as defined in the applicable agreement). On September 11, 2019, Cleco Holdings refinanced the remaining amounts due under the $300.0 million bridge loan agreement and a portion of the $100.0 million term loan agreement with the proceeds from the private placement of $300.0 million aggregate principal amount of senior notes. For more information, see Note 9 — “Debt.” Also, in connection with the Cleco Cajun Transaction, Cleco Holdings increased its credit facility capacity by $75.0 million, for a total capacity of $175.0 million. All other terms remained the same. Also in connection with the Cleco Cajun Transaction on February 4, 2019, Cleco Holdings made a $75.0 million draw on its credit facility, which was repaid on February 5, 2019. The remaining cash required to finance the transaction consisted of an equity contribution from Cleco Group of $384.9 million and $102.3 million from cash on hand at Cleco Holdings. Cleco Cajun accounted for the Cleco Cajun Transaction as a business combination, and accordingly, the assets acquired and liabilities assumed were recorded at their estimated fair values as of the date of the acquisition. Cleco made certain measurement period adjustments at June 30, 2019. The following chart presents Cleco’s current purchase price allocation: Purchase Price Allocation (THOUSANDS) AT FEB. 4, 2019 Current assets Cash and cash equivalents $ 146,494 Customer and other accounts receivable 49,809 Fuel inventory 22,060 Materials and supplies 25,659 Energy risk management assets 4,193 Other current assets 10,056 Non-current assets Property, plant, and equipment, net 741,203 Prepayments 36,166 Restricted cash and cash equivalents 707 Intangible assets 98,900 Other deferred charges 133 Total assets acquired 1,135,380 Current liabilities Accounts payable 38,478 Taxes payable 723 Energy risk management liabilities 241 Other current liabilities 14,570 Non-current liabilities Accumulated deferred federal and state income taxes, net 7,165 Deferred lease revenue 58,300 Intangible liabilities 38,300 Asset retirement obligations 15,323 Operating lease liabilities 110 Total liabilities assumed 173,210 Total purchase price consideration $ 962,170 The fair values of Cleco Cajun’s acquired assets and assumed liabilities were determined based on significant estimates and assumptions, including projected future cash flows and discount rates reflecting risk inherent in those future cash flows. There were also estimates made to determine the expected useful lives of each class of assets acquired. On the date of the acquisition, 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 of seven years. 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. Valuations were performed to assess the fair value of certain assets acquired and liabilities assumed and were considered preliminary as a result of the short time period between the closing of the acquisition and the end of the first quarter of 2019. Accounting guidance provides that the allocation of the purchase price may be modified up to one year from the date of the acquisition as more information becomes available. These final valuations and assessments have been completed by the end of 2019. During the second quarter of 2019, certain modifications were made to the preliminary valuations as of February 4, 2019, due to the refinement of valuation models, assumptions, and inputs. The measurement period adjustments were based upon information obtained about facts and circumstances that existed at the acquisition date that, if known, would have affected the measurement of the amounts recognized at that date. Measurement Period Adjustments (THOUSANDS) AT JUNE 30, 2019 Current assets Customer and other accounts receivable $ 1,408 Other current assets $ 56 Non-current assets Property, plant, and equipment, net $ 13,297 Prepayments $ (56 ) Intangible assets $ (3,600 ) Other deferred charges $ 1 Current liabilities Accounts payable $ 3,022 Energy risk management liabilities $ (1 ) Other current liabilities $ 327 Non-current liabilities Accumulated deferred federal and state income taxes, net $ 421 Deferred lease revenue $ (3,600 ) Intangible liabilities $ 6,400 Asset retirement obligations $ 4,534 Operating lease liabilities $ 3 The measurement period adjustments resulted in an increase in electric operations revenue of $0.5 million, a decrease in other operations revenue of $0.1 million, and an increase in depreciation expense of $0.2 million recorded for the three months ended June 30, 2019. During the fourth quarter of 2019, Cleco completed its evaluation and determination of the fair value of assets and liabilities acquired in the Cleco Cajun Transaction. No modifications were made to the valuation during the third or fourth quarters of 2019. Consequently, no measurement period adjustments were made. Pro forma Impact of the Cleco Cajun Transaction The following table includes the unaudited pro forma financial information reflecting the consolidated results of operations of Cleco as if the Cleco Cajun Transaction had taken place on January 1, 2018. The pro forma net income for the year ended December 31, 2019, was adjusted to exclude nonrecurring transaction-related expenses of $4.7 million. The pro forma net income for the year ended December 31, 2018, includes nonrecurring transaction-related expenses. The unaudited pro forma financial information presented in the following table is not necessarily indicative of the consolidated results of operations that would have been achieved had the transaction taken place on the dates indicated, or the future consolidated results of operations of the combined companies. Unaudited Pro Forma Financial Information FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2019 2018 Operating revenue, net $ 1,660,362 $ 1,668,022 Net income $ 154,898 $ 170,224 |
Leases (FY)
Leases (FY) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | ||
Leases | Note 4 — Leases Cleco maintains operating and finance leases in its ordinary course of business activities. 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 entity with lessor arrangements. Cleco Cajun’s lease income under the Cottonwood Sale Leaseback for the three months ended March 31, 2020, and 2019, was as follows: FOR THE THREE MONTHS ENDED MAR. 31, (THOUSANDS) 2020 2019 Fixed payments $ 10,000 $ 6,667 Variable payments 5,566 3,151 Amortization of deferred lease liability (1) 2,302 1,440 Total lease income $ 17,868 $ 11,258 (1) | Note 4—Leases Cleco maintains operating and finance leases in its ordinary course of business activities. Effective January 1, 2019, Cleco adopted new guidance which requires organizations to recognize lease assets and lease liabilities on the balance sheet and disclose key information about leasing arrangements. A lease is deemed to exist when the right to control the use of identified property, plant, or equipment is conveyed through a contract for a certain period of time and consideration is paid. For more information on how leases are identified and on the new guidance, see Note 2 — “Summary of Significant Accounting Policies — Leases” and “— Recent Authoritative Guidance.” Operating Leases Cleco Power leases utility systems from two municipalities and one non-municipal public body. The first municipal lease had a term of 10 years and was set to expire on August 11, 2021. On July 9, 2019, this municipal lease was renewed for an additional term of 10 years and expires on August 11, 2031. The second municipal lease has a term of 10 years and expires on May 13, 2028. The non-municipal lease has a term of 27 years and expires on July 31, 2039. Each utility system lease contains fixed and variable components, as well as provisions for extensions. Cleco Power has leases for 200 railcars for coal transportation. One lease for 115 railcars expires on March 31, 2021, and the other lease for 85 railcars expires on March 31, 2020. Cleco Cajun has a lease for 135 railcars for coal transportation, which commenced in February 2019 and was a short-term lease with an initial term of 12 months. On January 27, 2020, this lease was renewed and expires on March 31, 2021. This lease renews for additional one-month terms unless Cleco Cajun chooses to terminate. Cleco reassesses its need for the railcars upon the expiration of each term. Cleco pays a monthly rental fee per car. The railcar leases do not contain contingent rent payments. Cleco Power has leases for three towboats in order to transport petroleum coke to Madison Unit 3. Each of the towboat leases has a term of 10 years and expires on March 31, 2028. Under these agreements, the rates are adjusted annually per the Producer Price Index. Each lease contains provisions for a five-year extension. Cleco and Cleco Power’s remaining operating leases provide for office and operating facilities, office equipment, and tower rentals. The following is a schedule by year of future minimum lease payments due under Cleco and Cleco Power’s long-term operating leases together with the present value of the net minimum lease payments as of December 31, 2019: (THOUSANDS) CLECO POWER CLECO Years ending Dec. 31, 2020 $ 3,960 $ 3,994 2021 3,409 3,443 2022 3,256 3,287 2023 3,220 3,249 2024 3,216 3,235 Thereafter 18,618 18,618 Total minimum lease payments 35,679 35,826 Less: amount representing interest 7,086 7,069 Present value of net minimum operating lease payments $ 28,593 $ 28,757 Current liabilities $ 2,935 $ 2,978 Non-current liabilities $ 25,658 $ 25,779 The following table is a summary of expected operating lease payments for Cleco and Cleco Power at December 31, 2018: (THOUSANDS) CLECO POWER CLECO HOLDINGS TOTAL Years ending Dec. 31, 2019 $ 4,030 $ 120 $ 4,150 2020 3,890 — 3,890 2021 2,789 — 2,789 2022 1,239 — 1,239 2023 1,214 — 1,214 Thereafter 7,235 — 7,235 Total operating lease payments $ 20,397 $ 120 $ 20,517 Finance Lease Prior to September 2017, Cleco Power had an agreement with Savage Services for barges in order to transport petroleum coke and limestone to Madison Unit 3 that met the accounting definition of a finance lease. In September 2017, Cleco Power entered into a new agreement for use of the barges on a month-to-month basis that met the accounting definition of an operating lease. In April 2018, Cleco Power entered into an agreement with Savage Inland Marine for continued use of the 42 barges used to transport petroleum coke through March 2033. The agreement meets the accounting definition of a finance lease. The barge lease rate contains both a fixed and variable component, of which the latter is adjusted every third anniversary of the agreement for estimated executory costs. If the barges are idle, the lessor is required to attempt to sublease the barges to third parties with the revenue reducing Cleco Power’s lease payment. This agreement contains a provision for early termination upon the occurrence of any one of four cancellation events. For the years ended December 31, 2019, 2018, and 2017, Cleco Power paid $2.2 million, $2.0 million, and $2.5 million, respectively, in lease payments. For the years ended December 31, 2019, 2018, and 2017, Cleco Power received $1.7 million, $0.5 million, and $0.3 million, respectively, of revenue from subleases. The following is an analysis of the leased property under the finance lease: (THOUSANDS) AT DEC. 31, 2019 AT DEC. 31, 2018 Barges $ 16,800 $ 16,800 Accumulated amortization (1,960 ) (840 ) Net finance lease $ 14,840 $ 15,960 The following is a schedule by year of future minimum lease payments due under the finance lease together with the present value of the net minimum lease payments as of December 31, 2019: (THOUSANDS) Years ending Dec. 31, 2020 $ 2,203 2021 2,203 2022 2,203 2023 2,203 2024 2,203 Thereafter 17,675 Total minimum lease payments 28,690 Less: amount representing interest 12,829 Present value of net minimum finance lease payments $ 15,861 Current liabilities $ 617 Non-current liabilities $ 15,244 The following is a schedule by year of future minimum lease payments due under the finance lease together with the present value of the net minimum lease payments as of December 31, 2018: (THOUSANDS) Years ending Dec. 31, 2019 $ 2,611 2020 2,611 2021 2,611 2022 2,611 2023 2,611 Thereafter 23,655 Total minimum lease payments 36,710 Less: executory costs 5,817 Net minimum lease payments 30,893 Less: amount representing interest 14,475 Present value of net minimum lease payments $ 16,418 Current liabilities $ 557 Non-current liabilities $ 15,861 Additional Lessee Disclosures Cleco and Cleco Power’s total lease cost includes amounts on the income statement, as well as amounts capitalized as part of property, plant, or equipment or inventory. The following tables reflect total lease costs for Cleco and Cleco Power for the year ended December 31, 2019: Cleco Power (THOUSANDS) FOR THE YEAR ENDED DEC. 31, 2019 Finance lease cost Amortization of ROU assets $ 1,120 Interest on lease liabilities 1,646 Operating lease cost 4,303 Variable lease cost 515 Total lease cost $ 7,584 Cleco (THOUSANDS) FOR THE YEAR ENDED DEC. 31, 2019 Finance lease cost Amortization of ROU assets $ 1,120 Interest on lease liabilities 1,646 Operating lease cost 4,528 Variable lease cost 515 Total lease cost $ 7,809 The following tables present additional information related to Cleco and Cleco Power’s operating and finance leases as of and for the year ended December 31, 2019: AT DEC. 31, 2019 (THOUSANDS) BALANCE SHEET LINE ITEM CLECO POWER CLECO Supplemental balance sheet information ROU assets Operating Operating lease right of use assets $ 28,633 $ 28,791 Finance Property, plant, and equipment 14,840 14,840 Total ROU assets $ 43,473 $ 43,631 Current lease liabilities Operating Other current liabilities $ 2,935 $ 2,978 Finance Long-term debt and finance leases due within one year 617 617 Non-current lease liabilities Operating Operating lease liabilities 25,658 25,779 Finance Long-term debt and finance leases, net 15,244 15,244 Total lease liabilities $ 44,454 $ 44,618 Cleco Power (THOUSANDS) FOR THE YEAR ENDED DEC. 31, 2019 Supplemental cash flow information Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 4,203 Operating cash flows from finance leases $ 1,646 Financing cash flows from finance leases $ 557 ROU assets obtained in exchange for new lease liabilities $ 15,749 Cleco (THOUSANDS) FOR THE YEAR ENDED DEC. 31, 2019 Supplemental cash flow information Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 4,452 Operating cash flows from finance leases $ 1,646 Financing cash flows from finance leases $ 557 ROU assets obtained in exchange for new lease liabilities $ 15,881 AT DEC. 31, 2019 (THOUSANDS) CLECO POWER CLECO Other supplemental information Operating leases Weighted-average remaining lease term 10.8 years 10.8 years Weighted-average discount rate 4.31 % 4.31 % Finance leases Weighted-average remaining lease term 13.3 years 13.3 years Weighted-average discount rate 10.18 % 10.18 % Lessor Agreements Upon the closing of the Cleco Cajun Transaction, Cleco assumed two lessor contracts leasing land to farmers for a term of one year. Both of these lessor contracts are classified as operating leases. For more information on the Cleco Cajun Transaction, see Note 3 — “Business Combinations.” 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 entity with lessor arrangements. Cleco Cajun’s lease income under the Cottonwood Sale Leaseback for the year ended December 31, 2019, was as follows: (THOUSANDS) FOR THE YEAR ENDED DEC. 31, 2019 Fixed payments $ 36,667 Variable payments 20,415 Amortization of deferred lease liability (1) 8,438 Total lease income $ 65,520 (1) The remaining minimum lease payments to be received under the Cottonwood Sale Leaseback are as follows: (THOUSANDS) Years ending Dec. 31, 2020 $ 40,000 2021 40,000 2022 40,000 2023 40,000 2024 40,000 Thereafter 16,667 Total payments $ 216,667 Depreciation expense associated with Cleco’s property under the Cottonwood Sale Leaseback for the year ended December 31, 2019, was $22.7 million. Cleco calculated depreciation on a straight-line basis over the useful life of the asset. Property associated with the Cottonwood Sale Leaseback was as follows: (THOUSANDS) AT DEC. 31, 2019 Property, plant, and equipment $ 540,409 Accumulated depreciation (22,741 ) Net property, plant, and equipment $ 517,668 |
Leases | Note 4 — Leases Cleco maintains operating and finance leases in its ordinary course of business activities. 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 entity with lessor arrangements. Cleco Cajun’s lease income under the Cottonwood Sale Leaseback for the three months ended March 31, 2020, and 2019, was as follows: FOR THE THREE MONTHS ENDED MAR. 31, (THOUSANDS) 2020 2019 Fixed payments $ 10,000 $ 6,667 Variable payments 5,566 3,151 Amortization of deferred lease liability (1) 2,302 1,440 Total lease income $ 17,868 $ 11,258 (1) | Note 4—Leases Cleco maintains operating and finance leases in its ordinary course of business activities. Effective January 1, 2019, Cleco adopted new guidance which requires organizations to recognize lease assets and lease liabilities on the balance sheet and disclose key information about leasing arrangements. A lease is deemed to exist when the right to control the use of identified property, plant, or equipment is conveyed through a contract for a certain period of time and consideration is paid. For more information on how leases are identified and on the new guidance, see Note 2 — “Summary of Significant Accounting Policies — Leases” and “— Recent Authoritative Guidance.” Operating Leases Cleco Power leases utility systems from two municipalities and one non-municipal public body. The first municipal lease had a term of 10 years and was set to expire on August 11, 2021. On July 9, 2019, this municipal lease was renewed for an additional term of 10 years and expires on August 11, 2031. The second municipal lease has a term of 10 years and expires on May 13, 2028. The non-municipal lease has a term of 27 years and expires on July 31, 2039. Each utility system lease contains fixed and variable components, as well as provisions for extensions. Cleco Power has leases for 200 railcars for coal transportation. One lease for 115 railcars expires on March 31, 2021, and the other lease for 85 railcars expires on March 31, 2020. Cleco Cajun has a lease for 135 railcars for coal transportation, which commenced in February 2019 and was a short-term lease with an initial term of 12 months. On January 27, 2020, this lease was renewed and expires on March 31, 2021. This lease renews for additional one-month terms unless Cleco Cajun chooses to terminate. Cleco reassesses its need for the railcars upon the expiration of each term. Cleco pays a monthly rental fee per car. The railcar leases do not contain contingent rent payments. Cleco Power has leases for three towboats in order to transport petroleum coke to Madison Unit 3. Each of the towboat leases has a term of 10 years and expires on March 31, 2028. Under these agreements, the rates are adjusted annually per the Producer Price Index. Each lease contains provisions for a five-year extension. Cleco and Cleco Power’s remaining operating leases provide for office and operating facilities, office equipment, and tower rentals. The following is a schedule by year of future minimum lease payments due under Cleco and Cleco Power’s long-term operating leases together with the present value of the net minimum lease payments as of December 31, 2019: (THOUSANDS) CLECO POWER CLECO Years ending Dec. 31, 2020 $ 3,960 $ 3,994 2021 3,409 3,443 2022 3,256 3,287 2023 3,220 3,249 2024 3,216 3,235 Thereafter 18,618 18,618 Total minimum lease payments 35,679 35,826 Less: amount representing interest 7,086 7,069 Present value of net minimum operating lease payments $ 28,593 $ 28,757 Current liabilities $ 2,935 $ 2,978 Non-current liabilities $ 25,658 $ 25,779 The following table is a summary of expected operating lease payments for Cleco and Cleco Power at December 31, 2018: (THOUSANDS) CLECO POWER CLECO HOLDINGS TOTAL Years ending Dec. 31, 2019 $ 4,030 $ 120 $ 4,150 2020 3,890 — 3,890 2021 2,789 — 2,789 2022 1,239 — 1,239 2023 1,214 — 1,214 Thereafter 7,235 — 7,235 Total operating lease payments $ 20,397 $ 120 $ 20,517 Finance Lease Prior to September 2017, Cleco Power had an agreement with Savage Services for barges in order to transport petroleum coke and limestone to Madison Unit 3 that met the accounting definition of a finance lease. In September 2017, Cleco Power entered into a new agreement for use of the barges on a month-to-month basis that met the accounting definition of an operating lease. In April 2018, Cleco Power entered into an agreement with Savage Inland Marine for continued use of the 42 barges used to transport petroleum coke through March 2033. The agreement meets the accounting definition of a finance lease. The barge lease rate contains both a fixed and variable component, of which the latter is adjusted every third anniversary of the agreement for estimated executory costs. If the barges are idle, the lessor is required to attempt to sublease the barges to third parties with the revenue reducing Cleco Power’s lease payment. This agreement contains a provision for early termination upon the occurrence of any one of four cancellation events. For the years ended December 31, 2019, 2018, and 2017, Cleco Power paid $2.2 million, $2.0 million, and $2.5 million, respectively, in lease payments. For the years ended December 31, 2019, 2018, and 2017, Cleco Power received $1.7 million, $0.5 million, and $0.3 million, respectively, of revenue from subleases. The following is an analysis of the leased property under the finance lease: (THOUSANDS) AT DEC. 31, 2019 AT DEC. 31, 2018 Barges $ 16,800 $ 16,800 Accumulated amortization (1,960 ) (840 ) Net finance lease $ 14,840 $ 15,960 The following is a schedule by year of future minimum lease payments due under the finance lease together with the present value of the net minimum lease payments as of December 31, 2019: (THOUSANDS) Years ending Dec. 31, 2020 $ 2,203 2021 2,203 2022 2,203 2023 2,203 2024 2,203 Thereafter 17,675 Total minimum lease payments 28,690 Less: amount representing interest 12,829 Present value of net minimum finance lease payments $ 15,861 Current liabilities $ 617 Non-current liabilities $ 15,244 The following is a schedule by year of future minimum lease payments due under the finance lease together with the present value of the net minimum lease payments as of December 31, 2018: (THOUSANDS) Years ending Dec. 31, 2019 $ 2,611 2020 2,611 2021 2,611 2022 2,611 2023 2,611 Thereafter 23,655 Total minimum lease payments 36,710 Less: executory costs 5,817 Net minimum lease payments 30,893 Less: amount representing interest 14,475 Present value of net minimum lease payments $ 16,418 Current liabilities $ 557 Non-current liabilities $ 15,861 Additional Lessee Disclosures Cleco and Cleco Power’s total lease cost includes amounts on the income statement, as well as amounts capitalized as part of property, plant, or equipment or inventory. The following tables reflect total lease costs for Cleco and Cleco Power for the year ended December 31, 2019: Cleco Power (THOUSANDS) FOR THE YEAR ENDED DEC. 31, 2019 Finance lease cost Amortization of ROU assets $ 1,120 Interest on lease liabilities 1,646 Operating lease cost 4,303 Variable lease cost 515 Total lease cost $ 7,584 Cleco (THOUSANDS) FOR THE YEAR ENDED DEC. 31, 2019 Finance lease cost Amortization of ROU assets $ 1,120 Interest on lease liabilities 1,646 Operating lease cost 4,528 Variable lease cost 515 Total lease cost $ 7,809 The following tables present additional information related to Cleco and Cleco Power’s operating and finance leases as of and for the year ended December 31, 2019: AT DEC. 31, 2019 (THOUSANDS) BALANCE SHEET LINE ITEM CLECO POWER CLECO Supplemental balance sheet information ROU assets Operating Operating lease right of use assets $ 28,633 $ 28,791 Finance Property, plant, and equipment 14,840 14,840 Total ROU assets $ 43,473 $ 43,631 Current lease liabilities Operating Other current liabilities $ 2,935 $ 2,978 Finance Long-term debt and finance leases due within one year 617 617 Non-current lease liabilities Operating Operating lease liabilities 25,658 25,779 Finance Long-term debt and finance leases, net 15,244 15,244 Total lease liabilities $ 44,454 $ 44,618 Cleco Power (THOUSANDS) FOR THE YEAR ENDED DEC. 31, 2019 Supplemental cash flow information Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 4,203 Operating cash flows from finance leases $ 1,646 Financing cash flows from finance leases $ 557 ROU assets obtained in exchange for new lease liabilities $ 15,749 Cleco (THOUSANDS) FOR THE YEAR ENDED DEC. 31, 2019 Supplemental cash flow information Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 4,452 Operating cash flows from finance leases $ 1,646 Financing cash flows from finance leases $ 557 ROU assets obtained in exchange for new lease liabilities $ 15,881 AT DEC. 31, 2019 (THOUSANDS) CLECO POWER CLECO Other supplemental information Operating leases Weighted-average remaining lease term 10.8 years 10.8 years Weighted-average discount rate 4.31 % 4.31 % Finance leases Weighted-average remaining lease term 13.3 years 13.3 years Weighted-average discount rate 10.18 % 10.18 % Lessor Agreements Upon the closing of the Cleco Cajun Transaction, Cleco assumed two lessor contracts leasing land to farmers for a term of one year. Both of these lessor contracts are classified as operating leases. For more information on the Cleco Cajun Transaction, see Note 3 — “Business Combinations.” 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 entity with lessor arrangements. Cleco Cajun’s lease income under the Cottonwood Sale Leaseback for the year ended December 31, 2019, was as follows: (THOUSANDS) FOR THE YEAR ENDED DEC. 31, 2019 Fixed payments $ 36,667 Variable payments 20,415 Amortization of deferred lease liability (1) 8,438 Total lease income $ 65,520 (1) The remaining minimum lease payments to be received under the Cottonwood Sale Leaseback are as follows: (THOUSANDS) Years ending Dec. 31, 2020 $ 40,000 2021 40,000 2022 40,000 2023 40,000 2024 40,000 Thereafter 16,667 Total payments $ 216,667 Depreciation expense associated with Cleco’s property under the Cottonwood Sale Leaseback for the year ended December 31, 2019, was $22.7 million. Cleco calculated depreciation on a straight-line basis over the useful life of the asset. Property associated with the Cottonwood Sale Leaseback was as follows: (THOUSANDS) AT DEC. 31, 2019 Property, plant, and equipment $ 540,409 Accumulated depreciation (22,741 ) Net property, plant, and equipment $ 517,668 |
Revenue Recognition (FY)
Revenue Recognition (FY) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | ||
Revenue Recognition | Note 5 — Revenue Recognition 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 transaction, see Note 2 — “Business Combinations.” Operating revenue, net for the three months ended March 31, 2020, and 2019, was as follows: FOR THE THREE MONTHS ENDED MAR. 31, 2020 (THOUSANDS) CLECO POWER CLECO CAJUN OTHER ELIMINATIONS TOTAL Revenue from contracts with customers Retail revenue Residential (1) $ 81,571 $ — $ — $ — $ 81,571 Commercial (1) 61,110 — — — 61,110 Industrial (1) 32,210 — — — 32,210 Other retail (1) 3,461 — — — 3,461 Surcharge 2,443 — — — 2,443 Electric customer credits (8,340 ) — — — (8,340 ) Total retail revenue 172,455 — — — 172,455 Wholesale, net 42,229 (1) 89,147 (2,420 ) (2) — 128,956 Transmission, net 12,069 12,931 (3) — (1,818 ) 23,182 Other 3,695 (4) — 1 — 3,696 Affiliate (5) 1,106 161 29,278 (30,545 ) — Total revenue from contracts with customers 231,554 102,239 26,859 (32,363 ) 328,289 Revenue unrelated to contracts with customers Other 1,406 (6) 17,877 (7) — — 19,283 Total revenue unrelated to contracts with customers 1,406 17,877 — — 19,283 Operating revenue, net $ 232,960 $ 120,116 $ 26,859 $ (32,363 ) $ 347,572 (1) (2) (3) (4) (5) (6) (7) FOR THE THREE MONTHS ENDED MAR. 31, 2019 (THOUSANDS) CLECO POWER CLECO CAJUN OTHER ELIMINATIONS TOTAL Revenue from contracts with customers Retail revenue Residential (1) $ 87,148 $ — $ — $ — $ 87,148 Commercial (1) 65,380 — — — 65,380 Industrial (1) 37,870 — — — 37,870 Other retail (1) 3,681 — — — 3,681 Surcharge 5,321 — — — 5,321 Electric customer credits (8,160 ) — — — (8,160 ) Total retail revenue 191,240 — — — 191,240 Wholesale, net 55,546 (1) 58,191 (2,420 ) (2) — 111,317 Transmission 12,579 8,727 — — 21,306 Other 6,851 (3) (26 ) 2 — 6,827 Affiliate (4) 300 — 26,535 (26,835 ) — Total revenue from contracts with customers 266,516 66,892 24,117 (26,835 ) 330,690 Revenue unrelated to contracts with customers Other 2,229 (5) 11,267 (6) — — 13,496 Total revenue unrelated to contracts with customers 2,229 11,267 — — 13,496 Operating revenue, net $ 268,745 $ 78,159 $ 24,117 $ (26,835 ) $ 344,186 (1) (2) (3) (4) (5) (6) Cleco and Cleco Power have unsatisfied performance obligations with durations ranging between 1 and 15 years that primarily relate to stand-ready obligations as part of fixed capacity minimums. At March 31, 2020, Cleco and Cleco Power had $80.7 million of unsatisfied performance obligations that will be recognized as revenue over the term of such contracts as the stand-ready obligation to provide energy is provided. | 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 last meter reading 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 accrued estimated refunds to Cleco Power’s retail customers for the tax related benefits of the TCJA. Wholesale Revenue Cleco’s wholesale revenue is generated primarily through the sale of energy and capacity to cooperatives, municipalities, and the MISO transmission provider. Cleco also enters into transactions through MISO for spot energy sales which are transacted in the Day-Ahead Energy and Operating Reserves Market and the Real-Time Energy and Operating Reserves Market. The electricity revenue performance obligations, representing both energy and capacity, are satisfied as a series of performance obligations, and progress towards satisfaction of the performance obligations are measured using an output method. The energy performance obligation measure of progress is based on kWh delivered. The capacity performance obligation measure of progress is based on time elapsed and is recognized each month as Cleco’s generating units stand ready to deliver electricity to the customer. Cleco recognizes wholesale revenue, inclusive of both performance obligations, under the invoice practical expedient for the amount Cleco has the right to invoice. Cleco, through Cleco Power and Cleco Cajun, charges its wholesale customers market based rates that are subject to FERC’s triennial market power analysis. 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 is recognized upon delivery of the transmission service. For Cleco Power, revenue from the transmission of electricity is recorded based on a FERC-approved annual formula rate mechanism. This mechanism provides for an annual filing of revenue requirements with rates effective June 1 of each year. For Cleco Cajun, revenue from the transmission of electricity is recorded based on a FERC-approved annual filing rate mechanism effective June 1 of each year. Cleco Cajun charges transmission rates based on its cost to provide transmission services. Other Revenue Other revenue from contracts with customers, which is not a significant source of Cleco’s revenue, includes Cleco Power’s Teche Unit 3 SSR revenue and miscellaneous fees. The performance obligation under these contracts is satisfied and revenue is recognized as control of the products is delivered or services are rendered. Revenue Unrelated to Contracts with Customers Cleco’s energy-related transactions with the following characteristics qualify as derivative contracts and are recorded pursuant to derivatives and hedging accounting guidance: a) their value is based on the notional amount or payment provisions of an underlying asset; b) they require no or a diminutive initial net investment; and c) their terms require or permit net settlement. Cleco Cajun’s other revenue includes fixed lease payments and certain variable payments for costs paid by NRG Energy on behalf of Cleco. For more information on the Cottonwood lease agreement, see Note 4 — “Leases — Lessor Agreements — Disaggregated Revenue Upon the completion of the Cleco Cajun Transaction on February 4, 2019, Cleco Cajun became a new reportable segment. For more information on the transaction, see Note 3 — “Business Combinations.” Operating revenue, net for the year ended December 31, 2019, and 2018, was as follows: 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, net 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. FOR THE YEAR ENDED DEC. 31, 2018 (THOUSANDS) CLECO POWER OTHER ELIMINATIONS TOTAL Revenue from contracts with customers Retail revenue Residential (1) $ 435,610 $ — $ — $ 435,610 Commercial (1) 288,791 — — 288,791 Industrial (1) 167,001 — — 167,001 Other retail (1) 15,582 — — 15,582 Surcharge 23,138 — — 23,138 Electric customer credits (33,195 ) — — (33,195 Total retail revenue 896,927 — — 896,927 Wholesale, net (1) 219,598 (9,680 ) (2) — 209,918 Transmission 54,531 — — 54,531 Other (3) 27,800 2 — 27,802 Affiliate (4) 874 74,591 (75,465 ) — Total revenue from contracts with customers 1,199,730 64,913 (75,465 ) 1,189,178 Revenue unrelated to contracts with customers Other (5) 41,866 — — 41,866 Total revenue unrelated to contracts with customers 41,866 — — 41,866 Operating revenue, net $ 1,241,596 $ 64,913 $ (75,465 ) $ 1,231,044 (1) Includes fuel recovery revenue. (2) Amortization of intangible assets related to wholesale power supply agreements. (3) Other revenue from contracts with customers includes $18.2 million of other miscellaneous fee revenue and $9.6 million of Teche Unit 3 SSR revenue. (4) Affiliate revenue from contracts with customers includes interdepartmental rents and support services. This revenue is eliminated upon consolidation. (5) Includes realized gains associated with FTRs of $39.3 million and LCFC revenue of $2.6 million. Cleco and Cleco Power have unsatisfied performance obligations with durations ranging between 1 and 15 years that primarily relate to stand-ready obligations as part of fixed capacity minimums. Cleco and Cleco Power have elected to not disclose the value of unsatisfied variable performance obligations as part of their application of the right to invoice practical expedient. At December 31, 2019, Cleco and Cleco Power had $30.8 million of unsatisfied performance obligations that will be recognized as revenue over the term of the contracts as the stand-ready obligation to provide energy is provided. |
Regulatory Assets and Liabiliti
Regulatory Assets and Liabilities (FY) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
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 on regulated operations. The following table summarizes Cleco Power’s regulatory assets and liabilities: Cleco Power (THOUSANDS) AT MAR. 31, 2020 AT DEC. 31, 2019 Regulatory assets (liabilities) Deferred taxes, net $ (146,225 ) $ (146,948 ) Interest costs 3,896 3,958 AROs 3,815 3,668 Postretirement costs 147,889 151,543 Tree trimming costs 11,384 11,341 Training costs 6,202 6,241 Surcredits, net (1) 72 145 AMI deferred revenue requirement 3,000 3,136 Emergency declarations 948 1,349 Production operations and maintenance expenses 6,756 7,985 AFUDC equity gross-up (1) 71,992 72,766 Acadia Unit 1 acquisition costs 2,098 2,124 Financing costs 7,461 7,554 Coughlin transaction costs 899 906 Corporate franchise tax, net (1,145 ) (1,145 ) Non-service cost of postretirement benefits 7,551 6,739 Energy efficiency 2,820 2,820 Accumulated deferred fuel 16,353 22,910 Other, net (1,039 ) (4,543 ) Total regulatory assets, net $ 144,727 $ 152,549 (1) The following table summarizes Cleco’s net regulatory assets and liabilities: Cleco (THOUSANDS) AT MAR. 31, 2020 AT DEC. 31, 2019 Total Cleco Power regulatory assets, net $ 144,727 $ 152,549 2016 Merger adjustments (1) Fair value of long-term debt 125,105 127,977 Postretirement costs 16,902 17,399 Financing costs 7,849 7,935 Debt issuance costs 5,504 5,665 Total Cleco regulatory assets, net $ 300,087 $ 311,525 (1) | 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, (THOUSANDS) 2019 2018 REMAINING RECOVERY PERIOD (YRS.) Regulatory assets (liabilities) Deferred taxes, net (146,948 ) (155,537 ) * Mining costs — 1,274 — Interest costs 3,958 4,208 * AROs 3,668 3,099 * Postretirement costs 151,543 140,245 * Tree trimming costs 11,341 9,069 * Training costs 6,241 6,396 40 Surcredits, net (1) 145 289 * AMI deferred revenue requirement 3,136 3,681 6 Emergency declarations 1,349 2,980 * Production operations and maintenance expenses 7,985 12,245 * AFUDC equity gross-up (1) 72,766 71,952 * Acadia Unit 1 acquisition costs 2,124 2,230 20 Financing costs 7,554 7,923 * Coughlin transaction costs 906 938 29.5 Corporate franchise tax, net (1,145 ) 1,416 * Non-service cost of postretirement benefits 6,739 4,629 * Energy efficiency 2,820 2,585 * Accumulated deferred fuel 22,910 20,112 * Other, net (4,543 ) (4,979 ) * Total regulatory assets, net $ 152,549 $ 134,755 (1) * For information related to the remaining recovery periods, refer to the following disclosures for each specific regulatory asset. The following table summarizes Cleco’s net regulatory assets and liabilities: Cleco AT DEC. 31, (THOUSANDS) 2019 2018 Total Cleco Power regulatory assets, net $ 152,549 $ 134,755 2016 Merger adjustments (1) Fair value of long-term debt 127,977 138,701 Postretirement costs 17,399 19,387 Financing costs 7,935 8,279 Debt issuance costs 5,665 6,252 Total Cleco regulatory assets, net $ 311,525 $ 307,374 (1) Income Taxes 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 President signed the TCJA. 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. In 2017, Cleco and Cleco Power made an estimate for the remeasurement of ADIT based upon the new tax rate, which resulted in a provisional regulatory liability of $348.6 million. During the fourth quarter of 2018, Cleco Power recorded the final remeasurements, which resulted in an additional regulatory liability of $26.4 million for a total of $375.0 million at December 31, 2018. No additional regulatory liability was accrued at December 31, 2019. For more information on the status of the TCJA regulatory liability, see Note 13 — “Regulation and Rates — TCJA.” Mining Costs Cleco Power operates a generating unit jointly owned with SWEPCO that uses lignite as its primary fuel source. Cleco Power, along with SWEPCO, maintains a lignite mining agreement with DHLC, the operator of the Dolet Hills Mine. As ordered by the LPSC, Cleco Power’s retail customers received fuel cost savings through the year 2011, while actual mining costs above a certain percentage of the benchmark price were deferred. These deferred costs could be recovered from retail customers through the FAC only when the actual mining costs were below a certain percentage of the benchmark price. In 2006, Cleco Power recognized that there was a possibility it may not recover all or part of the lignite mining costs it had deferred and sought relief from the LPSC. In 2007, the LPSC approved a settlement agreement between Cleco Power, SWEPCO, and the LPSC Staff authorizing Cleco Power to recover the existing deferred mining cost balance, including interest, over 11.5 years. In connection with its 2009 approval of the Oxbow Lignite Mine acquisition, the LPSC agreed to discontinue benchmarking and the corresponding potential to defer future lignite mining costs while preserving the previously authorized recovery of the legacy deferred fuel balance. At June 30, 2019, Cleco Power had fully recovered the existing deferred mining costs, plus interest. 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. 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 of Cleco Power’s AROs, see Note 2 — “Summary of Significant Accounting Policies — AROs.” 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 eight years as of December 31, 2019, 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.” 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 to be fully amortized by 2026. 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. Surcredits, Net Cleco Power has recorded surcredits as the result of a settlement with the LPSC that addressed, among other things, the recovery of the storm damages related to hurricanes and uncertain tax positions. In the settlement, Cleco Power was required to implement surcredits to provide ratepayers with the economic benefit of the carrying charges of certain ADIT liabilities at a rate of return which was set by the LPSC. The settlement, through a true-up mechanism, allows the surcredits to be adjusted to reflect the actual tax deductions allowed by the IRS. Cleco Power recorded a true-up to the surcredits to reflect the actual tax deductions allowed by the IRS for storm damages and uncertain tax positions. As a result of the true-ups, Cleco Power recorded a regulatory asset that represents excess surcredits refunded to customers that were collected from ratepayers and amortized over a four-year period, through June 2018. Cleco Power began collecting the balance as part of the July 1, 2019, FRP rate adjustment. 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. 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 and expects the regulatory assets to be fully amortized by June 2021. 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 $45.0 million, adjusted annually for a growth factor (deferral threshold). The amount of the regulatory asset is capped at $23.0 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 no deferral in 2019. In December 2018, Cleco Power deferred $8.0 million as a regulatory asset. 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. 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. 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. 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. 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. 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. 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. Other Regulatory Assets (Liabilities), Net At December 31, 2019, Other, net consisted of a $4.7 million regulatory liability for over collections related to the St. Mary Clean Energy project and a $0.8 million regulatory liability for an LPSC Cleco Cajun Transaction commitment. These regulatory liabilities were offset by a $1.0 million regulatory asset for the Coughlin Pipeline revenue requirement. On July 1, 2018, Cleco Power began collecting the revenue requirement related to the St. Mary Clean Energy Center project based on an expected commercial operation date in the third quarter of 2018. The project was commercially operational in August 2019. Cleco Power recorded a regulatory liability for the over collections due to the delay of the commercial operations. On July 1, 2019, Cleco Power’s rates were adjusted by the amount of the over-collection and Cleco Power began amortizing the regulatory asset over 12 months. In January 2019, the LPSC approved the Cleco Cajun Transaction. Approval of the Cleco Cajun Transaction was conditioned upon certain commitments, including a $4.0 million annual reduction to Cleco Power’s retail customer rates. For the period from February 4, 2019, to June 30, 2019, Cleco Power recorded a regulatory liability for the annual reduction until the July 1, 2019 FRP rate adjustment reflected the annual savings. Also on July 1, 2019, Cleco Power began amortizing the regulatory liability over 12 months. In June 2017, the LPSC approved the establishment of a regulatory asset upon the completion of the Coughlin Pipeline project for the revenue requirement associated with the project until Cleco Power seeks recovery in the new FRP, which is anticipated to be effective July 1, 2020. The project was placed in service on September 6, 2019. Cleco Power anticipates collecting this amount over 12 months beginning July 1, 2020, subject to regulatory approval of Cleco Power’s new FRP. 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 2019, approximately 76% of Cleco Power’s total fuel cost was regulated by the LPSC. 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 can 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. |
Jointly Owned Generation Units
Jointly Owned Generation Units (FY) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019, 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, 2019 (THOUSANDS, EXCEPT PERCENTAGES AND MW) RODEMACHER UNIT 2 DOLET HILLS BAYOU COVE BIG CAJUN II - UNIT 3 TOTAL Utility plant in service $ 72,840 $ 179,909 $ 42,438 $ 33,291 $ 328,478 Accumulated depreciation $ 7,690 $ 22,159 $ 2,090 $ 2,163 $ 34,102 Construction work in progress $ 539 $ 5,435 $ — $ 329 $ 6,303 Ownership interest percentage 30 % 50 % 75 % 58 % Capacity (MW) 523 (1) 650 (1) 300 (2) 588 (2) Ownership interest (MW) 157 325 225 341 (1) (2) Cleco Power AT DEC. 31, 2019 (THOUSANDS, EXCEPT PERCENTAGES AND MW) RODEMACHER UNIT 2 DOLET HILLS TOTAL Utility plant in service $ 147,020 $ 397,406 $ 544,426 Accumulated depreciation $ 81,870 $ 239,655 $ 321,525 Construction work in progress $ 539 $ 5,435 $ 5,974 Ownership interest percentage 30 % 50 % Nameplate capacity (MW) 523 650 Ownership interest (MW) 157 325 |
Fair Value Accounting (FY)
Fair Value Accounting (FY) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | ||
Fair Value Accounting | Note 7 — Fair Value Accounting The amounts reflected on Cleco and Cleco Power’s Condensed Consolidated Balance Sheets at March 31, 2020, and December 31, 2019, for cash equivalents, restricted cash equivalents, accounts receivable, other accounts receivable, short-term debt, and accounts payable approximate fair value because of their short-term nature. Cleco applies the provisions of the fair value measurement standard to its non-recurring, non-financial measurements including business combinations, as well as impairment related to goodwill and other long-lived assets. The following tables summarize the carrying value and estimated market value of Cleco and Cleco Power’s financial instruments not measured at fair value on Cleco and Cleco Power’s Condensed Consolidated Balance Sheets: Cleco AT MAR. 31, 2020 AT DEC. 31, 2019 (THOUSANDS) CARRYING VALUE* FAIR VALUE CARRYING VALUE* FAIR VALUE Long-term debt $ 3,174,821 $ 3,295,214 $ 3,188,664 $ 3,371,915 * The carrying value of long-term debt does not include deferred issuance costs of $13.2 million at March 31, 2020, and $13.7 million at December 31, 2019. Cleco Power AT MAR. 31, 2020 AT DEC. 31, 2019 (THOUSANDS) CARRYING VALUE* FAIR VALUE CARRYING VALUE* FAIR VALUE Long-term debt $ 1,369,716 $ 1,696,053 $ 1,380,688 $ 1,601,865 * The carrying value of long-term debt does not include deferred issuance costs of $7.2 million at March 31, 2020, and $7.4 million at December 31, 2019. In order to fund capital requirements, Cleco issues fixed and variable rate long-term debt with various tenors. The fair value of this class fluctuates as the market interest rates for fixed and variable rate debt with similar tenors and credit ratings change. The fair value of the debt could also change from period to period due to changes in the credit rating of the Cleco entity by which the debt was issued. The fair value of long-term debt is classified as Level 2 in the fair value hierarchy. Fair Value Measurements and Disclosures Cleco classifies assets and liabilities that are measured at their fair value according to three different levels depending on the inputs used in determining fair value. The following tables disclose for Cleco and Cleco Power the fair value of financial assets and liabilities measured on a recurring basis: Cleco FAIR VALUE MEASUREMENTS AT REPORTING DATE (THOUSANDS) AT MAR. 31, 2020 QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) AT DEC. 31, 2019 QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) Asset description Institutional money market funds $ 352,549 $ — $ 352,549 $ — $ 129,643 $ — $ 129,643 $ — FTRs 1,779 — — 1,779 6,822 — — 6,822 Other commodity derivatives 213 — 213 — 201 — 201 — Total assets $ 354,541 $ — $ 352,762 $ 1,779 $ 136,666 $ — $ 129,844 $ 6,822 Liability description FTRs $ 683 $ — $ — $ 683 $ 1,044 $ — $ — $ 1,044 Other commodity derivatives 12,494 — 12,494 — 5,373 — 5,373 — Total liabilities $ 13,177 $ — $ 12,494 $ 683 $ 6,417 $ — $ 5,373 $ 1,044 Cleco Power FAIR VALUE MEASUREMENTS AT REPORTING DATE (THOUSANDS) AT MAR. 31, 2020 QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) AT DEC. 31, 2019 QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) Asset description Institutional money market funds $ 198,006 $ — $ 198,006 $ — $ 74,903 $ — $ 74,903 $ — FTRs 1,673 — — 1,673 6,311 — — 6,311 Total assets $ 199,679 $ — $ 198,006 $ 1,673 $ 81,214 $ — $ 74,903 $ 6,311 Liability description FTRs $ 524 $ — $ — $ 524 $ 586 $ — $ — $ 586 Total liabilities $ 524 $ — $ — $ 524 $ 586 $ — $ — $ 586 The following tables summarize the net changes in the net fair value of FTR assets and liabilities classified as Level 3 in the fair value hierarchy for Cleco and Cleco Power: Cleco FOR THE THREE MONTHS ENDED MAR. 31, (THOUSANDS) 2020 2019 Beginning balance $ 5,778 $ 22,887 Unrealized losses* (1,398 ) (1,917 ) Purchases 466 5,237 Settlements (3,750 ) (18,397 ) Ending balance $ 1,096 $ 7,810 * Cleco Power’s unrealized losses are reported through Accumulated deferred fuel on Cleco’s Condensed Consolidated Balance Sheet. Cleco Cajun’s unrealized (losses) gains are reported through Purchased power on Cleco’s Condensed Consolidated Income Statement. Cleco Power FOR THE THREE MONTHS ENDED MAR. 31, (THOUSANDS) 2020 2019 Beginning balance $ 5,725 $ 22,887 Unrealized losses* (1,311 ) (2,939 ) Purchases 466 1,286 Settlements (3,731 ) (16,422 ) Ending balance $ 1,149 $ 4,812 * Unrealized losses are reported through Accumulated deferred fuel on Cleco Power’s Condensed Consolidated Balance Sheet. The following tables quantify the significant unobservable inputs used in developing the fair value of Level 3 positions for Cleco and Cleco Power as of March 31, 2020, and December 31, 2019: Cleco FAIR VALUE VALUATION TECHNIQUE SIGNIFICANT UNOBSERVABLE INPUTS FORWARD PRICE RANGE (THOUSANDS, EXCEPT FORWARD PRICE RANGE) ASSETS LIABILITIES LOW HIGH FTRs at Mar. 31, 2020 $ 1,779 $ 683 RTO auction pricing FTR price - per MWh $ (1.40 ) $ 2.93 FTRs at Dec. 31, 2019 $ 6,822 $ 1,044 RTO auction pricing FTR price - per MWh $ (2.57 ) $ 2.86 Cleco Power FAIR VALUE VALUATION TECHNIQUE SIGNIFICANT UNOBSERVABLE INPUTS FORWARD PRICE RANGE (THOUSANDS, EXCEPT FORWARD PRICE RANGE) ASSETS LIABILITIES LOW HIGH FTRs at Mar. 31, 2020 $ 1,673 $ 524 RTO auction pricing FTR price - per MWh $ (1.40 ) $ 2.93 FTRs at Dec. 31, 2019 $ 6,311 $ 586 RTO auction pricing FTR price - per MWh $ (2.04 ) $ 2.86 Cleco utilizes different valuation techniques for fair value calculations. In order to measure the fair value for Level 1 assets and liabilities, Cleco obtains the closing price from published indices in active markets for the various instruments and multiplies this price by the appropriate number of instruments held. Level 2 fair values are determined by obtaining the closing price of similar assets and liabilities from published indices in active markets. Institutional money market funds assets are discounted to the current period using a U.S. Treasury published interest rate as a proxy for a risk-free rate of return. Level 3 fair values occur in situations in which there is little, if any, market activity for the asset or liability at the measurement date and prices are not observable. Cleco has consistently applied the Level 2 and Level 3 fair value techniques from fiscal period to fiscal period. Significant increases or decreases in any of those inputs in isolation would result in a significantly different fair value measurement. The assets and liabilities reported at fair value are grouped into classes based on the underlying nature and risks associated with the individual asset or liability. At March 31, 2020, 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 institutional money market funds in cash and cash equivalents and restricted cash and cash equivalents as recorded on Cleco and Cleco Power’s Condensed Consolidated Balance Sheets at March 31, 2020, and December 31, 2019: Cleco (THOUSANDS) AT MAR. 31, 2020 AT DEC. 31, 2019 Cash and cash equivalents $ 338,611 $ 103,409 Current restricted cash and cash equivalents $ 4,054 $ 11,100 Non-current restricted cash and cash equivalents $ 9,883 $ 15,134 Cleco Power (THOUSANDS) AT MAR. 31, 2020 AT DEC. 31, 2019 Cash and cash equivalents $ 184,911 $ 49,509 Current restricted cash and cash equivalents $ 4,054 $ 11,100 Non-current restricted cash and cash equivalents $ 9,041 $ 14,294 If the money market funds failed to perform under the terms of the investments, Cleco and Cleco Power would be exposed to a loss of the invested amounts. Collateral on these types of investments is not required by either Cleco or Cleco Power. The Level 2 institutional money market funds asset consists of a single class. In order to capture interest income and minimize risk, cash is invested in money market funds that invest primarily in short-term securities issued by the U.S. Treasury to maintain liquidity and achieve the goal of a net asset value of a dollar. The risks associated with this class are counterparty risk of the fund manager and risk of price volatility associated with the underlying securities of the fund. Other commodity derivatives include fixed price physical forwards and swap transactions. These contracts contain counterparty credit risk because they are transacted directly with a counterparty and are not cleared on an exchange. With respect to any open trading contracts that Cleco has entered into or may enter into in the future, Cleco may be required to provide credit support or pay liquidated damages under such contracts. 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. These other commodity derivatives are recorded at fair value and categorized as Level 2 because pricing is indexed to other contracts. Cleco Power and Cleco Cajun’s FTRs were priced using MISO’s monthly auction prices. Forward seasonal periods are not included in every monthly auction; therefore, the average of the most recent seasonal auction prices is used for monthly valuation. FTRs are categorized as Level 3 fair value measurements because the only relevant pricing available comes from MISO auctions, which occur monthly in the Multi-Period Monthly Auction. During the three months ended March 31, 2020, and the year ended December 31, 2019, Cleco did not experience any transfers between levels within the fair value hierarchy. Commodity Contracts The following tables present the fair values of derivative instruments and their respective line items as recorded on Cleco and Cleco Power’s Condensed Consolidated Balance Sheets at March 31, 2020, and December 31, 2019: Cleco DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS (THOUSANDS) BALANCE SHEET LINE ITEM AT MAR. 31, 2020 AT DEC. 31, 2019 Commodity-related contracts FTRs Current Energy risk management assets $ 1,779 $ 6,822 Current Energy risk management liabilities (683 ) (1,044 ) Other commodity derivatives Current Energy risk management assets 213 201 Current Energy risk management liabilities (9,014 ) (3,069 ) Non-current Other deferred credits (3,480 ) (2,304 ) Commodity-related contracts, net $ (11,185 ) $ 606 Cleco Power DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS (THOUSANDS) BALANCE SHEET LINE ITEM AT MAR. 31, 2020 AT DEC. 31, 2019 Commodity-related contracts FTRs Current Energy risk management assets $ 1,673 $ 6,311 Current Energy risk management liabilities (524 ) (586 ) Commodity-related contracts, net $ 1,149 $ 5,725 The following tables present the effect of derivatives not designated as hedging instruments on Cleco and Cleco Power’s Condensed Consolidated Statements of Income for the three months ended March 31, 2020, and 2019: Cleco AMOUNT OF GAIN(LOSS) RECOGNIZED IN INCOME ON DERIVATIVES FOR THE THREE MONTHS ENDED MAR. 31, (THOUSANDS) INCOME STATEMENT LINE ITEM 2020 2019 Commodity-related contracts FTRs (1) Electric operations $ 1,396 $ 5,209 FTRs (1) Purchased power (381 ) (3,324 ) Other commodity derivatives Fuel used for electric generation (7,108 ) — Total $ (6,093 ) $ 1,885 (1) Cleco Power AMOUNT OF GAIN(LOSS) RECOGNIZED IN INCOME ON DERIVATIVES FOR THE THREE MONTHS ENDED MAR. 31, (THOUSANDS) INCOME STATEMENT LINE ITEM 2020 2019 Commodity-related contracts FTRs (1) Electric operations $ 1,396 $ 5,206 FTRs (1) Purchased power (751 ) (1,983 ) Total $ 645 $ 3,223 (1) The total volume of FTRs that Cleco Power had outstanding at March 31, 2020, and December 31, 2019, was 3.4 million MWh and 9.2 million MWh, respectively. The total volume of FTRs that Cleco had outstanding at March 31, 2020, and December 31, 2019, was 5.4 million MWh and 14.6 million MWh, respectively. The total volume of other commodity derivatives Cleco had outstanding at March 31, 2020, and December 31, 2019, was 54.8 million MMBtus and 58.5 million MMBtus, respectively. | Note 8 — Fair Value Accounting The amounts reflected in Cleco and Cleco Power’s Consolidated Balance Sheets at December 31, 2019, and 2018, for cash equivalents, restricted cash equivalents, accounts receivable, other accounts receivable, short-term debt, and accounts payable approximate fair value because of their short-term nature. Cleco applies the provisions of the fair value measurement standard to its non-recurring, non-financial measurements including business combinations as well as impairment related to goodwill and other long-lived assets. The following tables summarize the carrying value and estimated market value of Cleco and Cleco Power’s financial instruments not measured at fair value on Cleco and Cleco Power’s Consolidated Balance Sheets: Cleco AT DEC. 31, 2019 2018 (THOUSANDS) CARRYING VALUE* FAIR VALUE CARRYING VALUE* FAIR VALUE Long-term debt $ 3,188,664 $ 3,371,915 $ 2,889,631 $ 2,859,924 *The carrying value of long-term debt does not include deferred issuance costs of $13.7 million at December 31, 2019, and $10.3 million at December 31, 2018. Cleco Power AT DEC. 31, 2019 2018 (THOUSANDS) CARRYING VALUE* FAIR VALUE CARRYING VALUE* FAIR VALUE Long-term debt $ 1,380,688 $ 1,601,865 $ 1,400,930 $ 1,517,152 * The carrying value of long-term debt does not include deferred issuance costs of $7.4 million at December 31, 2019, and $8.3 million at December 31, 2018. Long-term debt liability consists of a single class. In order to fund capital requirements, Cleco issues fixed and variable rate long-term debt with various tenors. The fair value of this class fluctuates as the market interest rates for fixed and variable rate debt with similar tenors and credit ratings change. The fair value of the debt could also change from period to period due to changes in the credit rating of the Cleco entity by which the debt was issued. The fair value of long-term debt is classified as Level 2 in the fair value hierarchy. Fair Value Measurements and Disclosures Cleco classifies assets and liabilities that are measured at their fair value according to three different levels depending on the inputs used in determining fair value. The following tables disclose for Cleco and Cleco Power the fair value of financial assets and liabilities measured on a recurring basis: Cleco FAIR VALUE MEASUREMENTS AT REPORTING DATE (THOUSANDS) AT DEC. 31, 2019 QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) AT DEC. 31, 2018 QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) Asset Description Institutional money market funds $ 129,643 $ — $ 129,643 $ — $ 133,722 $ — $ 133,722 $ — FTRs 6,822 — — 6,822 23,355 — — 23,355 Other commodity derivatives 201 — 201 — — — — — Total assets $ 136,666 $ — $ 129,844 $ 6,822 $ 157,077 $ — $ 133,722 $ 23,355 Liability Description FTRs $ 1,044 $ — $ — $ 1,044 $ 468 $ — $ — $ 468 Other commodity derivatives 5,373 — 5,373 — — $ — $ — $ — Total liabilities $ 6,417 $ — $ 5,373 $ 1,044 $ 468 $ — $ — $ 468 Cleco Power FAIR VALUE MEASUREMENTS AT REPORTING DATE (THOUSANDS) AT DEC. 31, 2019 QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) AT DEC. 31, 2018 QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) Asset Description Institutional money market funds $ 74,903 $ — $ 74,903 $ — $ 55,900 $ — $ 55,900 $ — FTRs 6,311 — — 6,311 23,355 — — 23,355 Total assets $ 81,214 $ — $ 74,903 $ 6,311 $ 79,255 $ — $ 55,900 $ 23,355 Liability Description FTRs $ 586 $ — $ — $ 586 $ 468 $ — $ — $ 468 Total liabilities $ 586 $ — $ — $ 586 $ 468 $ — $ — $ 468 The following tables summarize the net changes in the net fair value of FTR assets and liabilities classified as Level 3 in the fair value hierarchy for Cleco and Cleco Power: Cleco FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2019 2018 Beginning balance $ 22,887 $ 7,044 Unrealized (losses) gains * (1,659 ) 11,865 Purchases 27,881 28,185 Settlements (43,331 ) (24,207 ) Ending balance $ 5,778 $ 22,887 * Cleco Power’s unrealized (losses) gains are reported through Accumulated deferred fuel on Cleco’s Consolidated Balance Sheet. Cleco Cajun’s unrealized (losses) gains are reported through Purchased power on Cleco’s Consolidated Income Statement. Cleco Power FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2019 2018 Beginning balance $ 22,887 $ 7,044 Unrealized (losses) gains * (945 ) 11,865 Purchases 21,609 28,185 Settlements (37,826 ) (24,207 ) Ending balance $ 5,725 $ 22,887 * Unrealized gains (losses) are reported through Accumulated deferred fuel on Cleco Power’s Consolidated Balance Sheets. 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, 2019: Cleco FAIR VALUE VALUATION TECHNIQUE SIGNIFICANT UNOBSERVABLE INPUTS FORWARD PRICE RANGE (THOUSANDS, EXCEPT DOLLAR PER MWh) Assets Liabilities Low High FTRs at December 31, 2019 $ 6,822 $ 1,044 RTO auction pricing FTR price - per MWh $ (2.57 ) $ 2.86 FTRs at December 31, 2018 $ 23,355 $ 468 RTO auction pricing FTR price - per MWh $ (4.40 ) $ 15.10 Cleco Power FAIR VALUE VALUATION TECHNIQUE SIGNIFICANT UNOBSERVABLE INPUTS FORWARD PRICE RANGE (THOUSANDS, EXCEPT DOLLAR PER MWh) Assets Liabilities Low High FTRs at December 31, 2019 $ 6,311 $ 586 RTO auction pricing FTR price - per MWh $ (2.04 ) $ 2.86 FTRs at December 31, 2018 $ 23,355 $ 468 RTO auction pricing FTR price - per MWh $ (4.40 ) $ 15.10 Cleco utilizes different valuation techniques for fair value calculations. In order to measure the fair value for Level 1 assets and liabilities, Cleco obtains the closing price from published indices in active markets for the various instruments and multiplies this price by the appropriate volume of instruments held. Level 2 fair values are determined by obtaining the closing price of similar assets and liabilities from published indices in active markets. Institutional money market funds assets are discounted to the current period using a U.S. Treasury published interest rate as a proxy for a risk-free rate of return. Level 3 fair values occur in situations in which there is little, if any, market activity for the asset or liability at the measurement date and prices are not observable. Cleco has consistently applied the Level 2 and Level 3 fair value techniques from fiscal period to fiscal period. Significant increases or decreases in any of those inputs in isolation would result in a significantly different fair value measurement. The assets and liabilities reported at fair value are grouped into classes based on the underlying nature and risks associated with the individual asset or liability. At December 31, 2019, Cleco and Cleco Power were exposed to concentrations of credit risk through their short-term investments classified as cash equivalents and restricted cash equivalents. The institutional money market funds were reported on Cleco’s Consolidated Balance Sheets in cash and cash equivalents, current restricted cash and cash equivalents, and non-current restricted cash and cash equivalents of $103.4 million, $11.1 million, and $15.1 million, respectively, at December 31, 2019, and $103.8 million, $11.2 million, and $18.7 million, respectively, at December 31, 2018. At Cleco Power, the institutional money market funds were reported on Cleco Power’s Consolidated Balance Sheets in cash and cash equivalents, current restricted cash and cash equivalents, and non-current restricted cash and cash equivalents of $49.5 million, $11.1 million, and $14.3 million, respectively, at December 31, 2019, and $26.1 million, $11.2 million, and $18.6 million, respectively, at December 31, 2018. If the money market funds failed to perform under the terms of the investments, Cleco and Cleco Power would be exposed to a loss of the invested amounts. Collateral on these types of investments is not required by either Cleco or Cleco Power. The Level 2 institutional money market funds asset consists of a single class. In order to capture interest income and minimize risk, cash is invested in money market funds that invest primarily in short-term securities issued by the U. S. Treasury to maintain liquidity and achieve the goal of a net asset value of a dollar. The risks associated with this class are counterparty risk of the fund manager and risk of price volatility associated with the underlying securities of the fund. Other commodity derivatives include fixed price physical forwards and swap transactions. These contracts contain counterparty credit risk because they are transacted directly with a counterparty and are not cleared on an exchange. These other commodity derivatives are recorded at fair value and categorized as Level 2 because pricing is indexed to other contracts. Cleco Power and Cleco Cajun’s FTRs were priced using MISO’s monthly auction prices. Forward seasonal periods are not included in every monthly auction; therefore, the average of the most recent seasonal auction prices is used for monthly valuation. FTRs are categorized as Level 3 fair value measurements because the only relevant pricing available comes from MISO auctions, which occur monthly in the Multi-Period Monthly Auction. During the years ended December 31, 2019, and 2018, Cleco did not experience any transfers between levels within the fair value hierarchy. Commodity Contracts The following tables present the fair values of derivative instruments and their respective line items as recorded on Cleco and Cleco Power’s Consolidated Balance Sheets at December 31, 2019, and 2018: Cleco DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS (THOUSANDS) BALANCE SHEET AT DEC. 31, 2019 AT DEC. 31, 2018 Commodity related contracts FTRs Current Energy risk management assets $ 6,822 $ 23,355 Current Energy risk management liabilities 1,044 468 Other commodity derivatives Current Energy risk management assets 201 — Current Energy risk management liabilities 3,069 — Non-current Other deferred credits 2,304 — Commodity-related contracts, net $ 606 $ 22,887 Cleco Power DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS (THOUSANDS) BALANCE SHEET AT DEC. 31, 2019 AT DEC. 31, 2018 Commodity related contracts FTRs Current Energy risk management assets $ 6,311 $ 23,355 Current Energy risk management liabilities 586 468 Commodity-related contracts, net $ 5,725 $ 22,887 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, 2019, 2018, and 2017: Cleco AMOUNT OF GAIN/(LOSS) RECOGNIZED IN INCOME ON DERIVATIVES FOR THE YEAR ENDED DEC. 31, (THOUSANDS) DERIVATIVES 2019 2018 2017 Commodity contracts FTRs (1) Electric operations $ 13,043 $ 39,659 $ 23,826 FTRs (1) Purchased power (15,685 ) (4,566 ) (5,509 Other commodity derivatives Fuel used for electric generation (5,172 ) — — Total $ (7,814 ) $ 35,093 $ 18,317 (1) Cleco Power AMOUNT OF GAIN/(LOSS) FOR THE YEAR ENDED DEC. 31, (THOUSANDS) DERIVATIVES 2019 2018 2017 Commodity contracts FTRs (1) Electric operations $ 13,047 $ 39,659 $ 23,826 FTRs (1) Purchased power (6,066 ) (4,566 ) (5,509 ) Total $ 6,981 $ 35,093 $ 18,317 (1) The total volume of FTRs that Cleco Power had outstanding at December 31, 2019, and 2018 was 9.2 million MWh and 8.7 million MWh, respectively. The total volume of FTRs that Cleco had outstanding at December 31, 2019, and 2018 was 14.6 million MWh and 8.7 million MWh, respectively. At December 31, 2019, Cleco had 58.5 million MMBtus outstanding in other commodity derivatives. |
Debt (FY)
Debt (FY) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Debt Disclosure [Abstract] | ||
Debt | Note 8 — Debt On March 2, 2020, Cleco Power made the final $11.1 million principal payment and completed the repayment in full of its Cleco Katrina/Rita storm recovery bonds issued in March 2008. On May 1, 2020, Cleco Power repriced at a mandatory tender date its $50.0 million 2008 series A GO Zone bonds and entered into a new interest rate period with a mandatory tender date of May 1, 2025. The interest rate for the new interest rate period is fixed at 2.50% per annum. At March 31, 2020, Cleco Holdings had $88.0 million of borrowings outstanding under its $175.0 million credit facility at an all-in interest rate of 2.50%. The borrowing costs under the facility are equal to LIBOR plus 1.75% or ABR plus 0.75%, plus commitment fees of 0.275%. At March 31, 2020, Cleco Power had $150.0 million of borrowings outstanding under its $300.0 million credit facility at an all-in interest rate of 1.875%. The borrowing costs under the facility are equal to LIBOR plus 1.125% or ABR plus 0.125%, plus commitment fees of 0.125%. | Note 9 — Debt Cleco Power’s total indebtedness as of December 31, 2019, and 2018 was as follows: Cleco Power AT DEC. 31, (THOUSANDS) 2019 2018 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 Series A GO Zone bonds, 2.00%, due 2038, mandatory tender in 2020 50,000 50,000 Series B GO Zone bonds, 4.25%, due 2038 50,000 50,000 Cleco Katrina/Rita’s storm recovery bonds, 5.61%, due 2023 11,055 31,625 Total bonds 1,386,055 1,406,625 Finance leases Barge lease obligations 15,861 16,418 Gross amount of long-term debt and finance leases 1,401,916 1,423,043 Less: long-term debt due within one year 60,970 20,571 Less: finance leases classified as long-term debt due within one year 617 557 Unamortized debt discount (5,368 ) (5,695 ) Unamortized debt issuance costs (7,589 ) (8,446 ) Total long-term debt and finance leases, net $ 1,327,372 $ 1,387,774 Cleco’s total indebtedness as of December 31, 2019, and 2018 was as follows: Cleco AT DEC. 31, (THOUSANDS) 2019 2018 Total Cleco Power long term debt and finance leases, net $ 1,327,372 $ 1,387,774 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 — Senior notes, 4.973%, due 2046 350,000 350,000 Bank term loan, variable rate, due 2021 300,000 300,000 Bank term loan, variable rate, due 2021 30,000 — Long-term debt due within one year (64,398 ) — Unamortized debt issuance costs (1) (6,271 ) (1,989 ) Fair value adjustment 127,976 138,700 Total Cleco long-term debt and finance leases, net $ 3,064,679 $ 2,874,485 (1) The principal amounts payable under long-term debt agreements for each year through 2024 and thereafter are as follows: (THOUSANDS) CLECO CLECO POWER For the year ending Dec. 31 2020 (1) $ 11,055 $ 11,055 2021 $ 330,000 $ — 2022 $ 25,000 $ 25,000 2023 $ 265,000 $ 100,000 2024 $ 50,000 $ 50,000 Thereafter $ 2,385,000 $ 1,200,000 (1) The principal amounts payable under the finance lease agreement for each year through 2024 and thereafter are as follows: (THOUSANDS) CLECO CLECO POWER For the year ending Dec. 31 2020 $ 617 $ 617 2021 $ 682 $ 682 2022 $ 755 $ 755 2023 $ 836 $ 836 2024 $ 925 $ 925 Thereafter $ 12,046 $ 12,046 Cleco Power Debt Cleco Power had no short-term debt outstanding at December 31, 2019, and 2018. At December 31, 2019, Cleco Power’s long-term debt and finance leases outstanding was $1.39 billion, of which $61.6 million was due within one year. The long-term debt due within one year at December 31, 2019, primarily represents $50.0 million of GO Zone bonds with a mandatory tender in May 2020 and $11.0 million of principal payments for the Cleco Katrina/Rita storm recovery bonds. On March 2, 2020, Cleco Power completed the repayment of its Cleco Katrina/Rita storm recovery bonds issued in March 2008. Cleco Debt Cleco had no short-term debt outstanding at December 31, 2019, and 2018. At December 31, 2019, Cleco’s long-term debt and finance leases outstanding was $3.19 billion, of which $126.0 million was due within one year. The long-term debt due within one year at December 31, 2019, primarily represents $63.3 million of principal payments on Cleco Holdings’ debt as required by the Cleco Cajun Transaction commitments to the LPSC, $50.0 million of GO Zone bonds with a mandatory tender in May 2020, and $11.0 million of principal payments for the Cleco Katrina/Rita storm recovery bonds. In connection with the Cleco Cajun Transaction on February 4, 2019, Cleco Holdings borrowed $300.0 million under a new bridge loan agreement and $100.0 million under a new term loan agreement. Both loan agreements are variable rate debt and have a three-year term. Both loan agreements contain certain financial covenants, including requiring Cleco Holdings to maintain (i) a debt to capital ratio (as defined in the applicable agreement) below 65% and (ii) a rating applicable to Cleco’s senior debt rating (as defined in the applicable agreement). On September 11, 2019, Cleco Holdings completed the private placement of $300.0 million aggregate principal amount of its 3.375% senior notes due September 15, 2029. The proceeds from the issuance were used to repay the remaining amounts due under the $300.0 million bridge loan agreement and to repay a portion of the $100.0 million term loan agreement. The senior notes are governed by an indenture entered into between Cleco Holdings and a trustee. The indenture contains certain covenants that restrict Cleco Holdings’ ability to merge, consolidate, transfer, or lease all or substantially all of its assets or create or incur certain liens. Upon approval of the Cleco Cajun Transaction, commitments were made to the LPSC by Cleco, including repayment of $400.0 million of Cleco Holdings’ debt by December 31, 2024. As of December 31, 2019, 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, 2019, Cleco had two separate revolving credit facilities, one for Cleco Holdings in the amount of $175.0 million and one for Cleco Power in the amount of $300.0 million, with a maximum aggregate capacity of $475.0 million. In connection with the Cleco Cajun Transaction, on February 4, 2019, Cleco Holdings increased its credit facility capacity by $75.0 million, for a total credit facility of $175.0 million. The credit facility includes restrictive financial covenants and expires in 2021. Under covenants contained in Cleco Holdings’ credit facility, Cleco is required to maintain total indebtedness less than or equal to 65% of total capitalization. At December 31, 2019, $1.01 billion of Cleco’s member’s equity was unrestricted. At December 31, 2019, Cleco Holdings was in compliance with the covenants of its credit facility. The borrowing costs under Cleco Holdings’ credit facility are equal to LIBOR plus 1.75% or ABR plus 0.75%, plus commitment fees of 0.275%. If Cleco Holding’s credit ratings were to be downgraded one level, Cleco Holdings could be required to pay higher fees and additional interest of 0.075% and 0.50%, respectively, under the pricing levels of its credit facility. At December 31, 2019, Cleco Power had a $300.0 million credit facility. The credit facility includes restrictive financial covenants and expires in 2021. Under covenants contained in Cleco Power’s credit facility, Cleco Power is required to maintain total indebtedness less than or equal to 65% of total capitalization. At December 31, 2019, $989.0 million of Cleco Power’s member’s equity was unrestricted. At December 31, 2019, Cleco Power was in compliance with the covenants in its credit facility. The borrowing costs under Cleco Power’s credit facility are equal to LIBOR plus 1.125% or ABR plus 0.125%, plus commitment fees of 0.125%. If Cleco Power’s credit ratings were to be downgraded one level, Cleco Power could be required to pay higher fees and additional interest of 0.05% and 0.125%, respectively, under the pricing levels of its credit facility. If Cleco Holdings or Cleco Power were to default under the covenants in their respective 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 credit facility or other debt agreements, Cleco Holdings would be considered in default under its credit facility. |
Pension Plan and Employee Benef
Pension Plan and Employee Benefits (FY) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Retirement Benefits [Abstract] | ||
Pension Plan and Employee Benefits | Note 9 — Pension Plan and Employee Benefits Pension Plan and Other Benefits Plan Employees hired before August 1, 2007, are covered by a non-contributory, defined benefit pension plan. In September 2019, Cleco made a $12.3 million discretionary contribution to the pension plan. Based on updated funding assumptions at December 31, 2019, management estimates that $66.5 million in pension contributions will be required through 2024. Cleco expects to make a $15.5 million minimum required contribution to the pension plan in 2020. Cleco Power is the plan sponsor and Support Group is the plan administrator. The plan was amended on February 4, 2019, to include certain former NRG Energy employees who are now Cleco Cajun employees. The Cleco Cajun employees are eligible to participate as a cash balance participant and are credited with all service that was credited to them under the NRG Pension Plan as of February 4, 2019. Benefits under the plan amendment reflect an employee’s years of service, age at retirement, and accrued benefit at retirement. Cleco’s retirees may be eligible to receive Other Benefits. Dependents of Cleco’s retirees may also be eligible to receive Other Benefits with the exception of life insurance benefits. The non-service components of net periodic pension and Other Benefits cost are included in Other income (expense), net within Cleco and Cleco Power’s Condensed Consolidated Statements of Income. The components of net periodic pension and Other Benefits cost for the three months ended March 31, 2020, and 2019 were as follows: PENSION BENEFITS OTHER BENEFITS FOR THE THREE MONTHS ENDED MAR. 31, FOR THE THREE MONTHS ENDED MAR. 31, (THOUSANDS) 2020 2019 2020 2019 Components of periodic benefit costs Service cost $ 2,328 $ 2,067 $ 508 $ 288 Interest cost 5,130 5,650 410 400 Expected return on plan assets (6,245 ) (6,622 ) — — Amortizations Prior period service credit (15 ) (18 ) — — Net loss (gain) 3,672 1,875 339 (45 ) Net periodic benefit cost $ 4,870 $ 2,952 $ 1,257 $ 643 Because Cleco Power is the pension plan sponsor and the related trust holds the assets, the net unfunded status of the pension plan is reflected at Cleco Power. The liability of Cleco’s other subsidiaries is transferred with a like amount of assets to Cleco Power monthly. The expense of the pension plan related to Cleco’s other subsidiaries for the three months ended March 31, 2020, was $0.4 million. The expense of the pension plan related to Cleco’s other subsidiaries for the three months ended March 31, 2019, was $0.5 million. Cleco Holdings is the plan sponsor for the other benefit plans. There are no assets set aside in a trust, and the liabilities are reported on the individual subsidiaries’ financial statements. The expense related to other benefits reflected in Cleco Power’s Condensed Consolidated Statements of Income for the three months ended March 31, 2020, was $1.2 million. The expense related to other benefits reflected in Cleco Power’s Condensed Consolidated Statements of Income for the three months ended March 31, 2019, was $0.7 million. The current and non-current portions of the Other Benefits liability for Cleco and Cleco Power at March 31, 2020, and December 31, 2019, were as follows: Cleco (THOUSANDS) AT MAR. 31, 2020 AT DEC. 31, 2019 Current $ 4,401 $ 4,401 Non-current $ 48,175 $ 48,321 Cleco Power (THOUSANDS) AT MAR. 31, 2020 AT DEC. 31, 2019 Current $ 3,815 $ 3,815 Non-current $ 41,994 $ 42,080 SERP Certain Cleco officers are covered by SERP. Cleco does not fund the SERP liability, but instead pays for current benefits out of the general funds available. Cleco Power has formed a rabbi trust. The life insurance policies issued on SERP participants designate the rabbi trust as the beneficiary. Market conditions could have a significant impact on the cash surrender value of the life insurance policies. Proceeds from the life insurance policies are expected to be used to pay the SERP participants’ death benefits, as well as future SERP payments. However, because SERP is a non-qualified plan, the assets of the trust could be used to satisfy general creditors of Cleco Power in the event of insolvency. All SERP benefits are paid out of the general cash available of the respective companies that employed the officer. Cleco Power is the plan sponsor and Support Group is the plan administrator. The non-service components of net periodic benefit cost related to SERP are included in Other income (expense), net within Cleco and Cleco Power’s Condensed Consolidated Statements of Income. The components of the net periodic benefit cost related to SERP for the three months ended March 31, 2020, and 2019 were as follows: FOR THE THREE MONTHS ENDED MAR. 31, (THOUSANDS) 2020 2019 Components of periodic benefit costs Service cost $ 95 $ 113 Interest cost 733 825 Amortizations Prior period service credit (40 ) (35 ) Net loss 757 392 Net periodic benefit cost $ 1,545 $ 1,295 The expense related to SERP reflected on Cleco Power’s Condensed Consolidated Statements of Income for the three months ended March 31, 2020, was $0.2 million. The expense related to SERP reflected on Cleco Power’s Condensed Consolidated Statements of Income for the three months ended March 31, 2019, was $0.3 million. Liabilities relating to SERP are reported on the individual subsidiaries’ financial statements. The current and non-current portions of the SERP liability for Cleco and Cleco Power at March 31, 2020, and December 31, 2019, were as follows: Cleco (THOUSANDS) AT MAR. 31, 2020 AT DEC. 31, 2019 Current $ 4,599 $ 4,599 Non-current $ 84,219 $ 84,529 Cleco Power (THOUSANDS) AT MAR. 31, 2020 AT DEC. 31, 2019 Current $ 760 $ 760 Non-current $ 13,863 $ 13,964 401(k) Plan Cleco’s 401(k) Plan is intended to provide active, eligible employees with voluntary, long-term savings and investment opportunities. The 401(k) Plan is a defined contribution plan and is subject to the applicable provisions of the Employee Retirement Income Security Act of 1974. In accordance with the 401(k) Plan, employer contributions are made in the form of cash. Cash contributions are invested in proportion to the participant’s voluntary contribution investment choices. Participation in the Plan is voluntary, and active Cleco employees are eligible to participate. Cleco’s 401(k) Plan was amended upon the close of the Cleco Cajun Transaction to include Cleco Cajun employees. Cleco’s 401(k) Plan expense for the three months ended March 31, 2020, and 2019 was as follows: FOR THE THREE MONTHS ENDED MAR. 31, (THOUSANDS) 2020 2019 401(k) Plan expense $ 3,256 $ 2,267 Cleco Power is the plan sponsor for the 401(k) Plan. The expense of the 401(k) Plan related to Cleco’s other subsidiaries for the three months ended March 31, 2020, and 2019 was as follows: FOR THE THREE MONTHS ENDED MAR. 31, (THOUSANDS) 2020 2019 401(k) Plan expense $ 1,662 $ 930 | 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 calendar years during the last ten years of employment with Cleco. Cleco’s policy is to base its contributions to the employee pension plan upon actuarial computations utilizing the projected unit credit method, subject to the IRS’s full funding limitation. On September 12, 2019, Cleco made a $12.3 million discretionary contribution to the pension plan. Cleco did not make any required or discretionary contributions to the pension plan in 2018 or 2017. Cleco expects to make $83.0 million discretionary contributions in 2020, which would reduce the future required contributions. The required contributions are driven by liability funding target percentages set by law which could cause the required contributions to be uneven among the years. Based on funding assumptions at December 31, 2019, management estimates that $61.8 million in pension contributions will be required through 2024. Future discretionary contributions may be made depending on changes in assumptions, the ability to utilize the contribution as a tax deduction, and requirements concerning recognizing a minimum pension liability. Adverse changes in assumptions or adverse actual events could cause additional minimum contributions. The ultimate amount and timing of the contributions may be affected by changes in the discount rate, changes in the funding regulations, and actual returns on fund assets. Cleco Power is the plan sponsor and Support Group is the plan administrator. 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. 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, 2019, and 2018 are presented in the following table: PENSION BENEFITS OTHER BENEFITS FOR THE YEAR ENDED DEC. 31, FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2019 2018 2019 2018 Change in benefit obligation Benefit obligation at beginning of period $ 530,936 $ 567,215 $ 40,455 $ 43,203 Service cost 8,414 9,507 1,191 1,320 Interest cost 22,485 20,860 1,646 1,465 Plan participants’ contributions — — 1,229 1,224 Actuarial loss (gain) 73,655 (42,935 ) 13,897 (1,106 ) Expenses paid (2,933 ) (2,786 ) — — Benefits paid (22,234 ) (20,925 ) (5,696 ) (5,651 ) Benefit obligation at end of period 610,323 530,936 52,722 40,455 Change in plan assets Fair value of plan assets at beginning of period 391,933 444,089 — — Actual return on plan assets 81,081 (28,884 ) — — Employer contributions 12,250 — — — Expenses paid (2,933 ) (2,786 ) — — Adjustment — 439 — — Benefits paid (22,234 ) (20,925 ) — — Fair value of plan assets at end of period 460,097 391,933 — — Unfunded status $ (150,226 ) $ (139,003 ) $ (52,722 ) $ (40,455 ) The employee pension plan accumulated benefit obligation at December 31, 2019, and 2018 is presented in the following table: PENSION BENEFITS AT DEC. 31, (THOUSANDS) 2019 2018 Accumulated benefit obligation $ 568,354 $ 491,522 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, 2019, and 2018: PENSION BENEFITS OTHER BENEFITS AT DEC. 31, AT DEC. 31, (THOUSANDS) 2019 2018 2019 2018 Net actuarial loss (gain) occurring during period $ 19,075 $ 9,722 $ 13,897 $ (1,106 ) Net actuarial loss amortized during period $ 7,849 $ 12,313 $ 21 $ 135 Prior service credit amortized during period $ (71 ) $ (71 ) $ — $ — The following table presents net actuarial gains/losses and prior service costs/credits 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 and the amounts expected to be recognized in 2020 for the employee pension plan and Other Benefits plans at December 31, 2020, 2019, and 2018: PENSION BENEFITS OTHER BENEFITS AT DEC. 31, AT DEC. 31, (THOUSANDS) 2020 2019 2018 2020 2019 2018 Net actuarial loss $ 14,824 $ 151,603 $ 140,377 $ 1,355 $ 15,732 $ 1,814 Prior service credit $ (60 ) $ (60 ) $ (131 ) $ — $ — $ — 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 2019, 2018, and 2017 are as follows: PENSION BENEFITS OTHER BENEFITS FOR THE YEAR ENDED DEC. 31, FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2019 2018 2017 2019 2018 2017 Components of periodic benefit costs Service cost $ 8,414 $ 9,507 $ 9,039 $ 1,191 $ 1,320 1,446 Interest cost 22,485 20,860 21,648 1,646 1,465 1,569 Expected return on plan assets (26,502 ) (23,773 ) (24,064 ) — — — Amortizations Prior service credit (71 ) (71 ) (71 ) — — — Net loss (gain) 7,849 12,312 10,008 21 135 (50 ) Net periodic benefit cost $ 12,175 $ 18,835 $ 16,560 2,858 $ 2,920 $ 2,965 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, 2019, 2018, and 2017 was $2.2 million, $2.0 million, and $1.8 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, 2019, 2018, and 2017 was $3.1 million, $3.3 million, and $3.3 million, respectively. The current and non-current portions of the Other Benefits liability for Cleco and Cleco Power at December 31, 2019, and 2018 are as follows: Cleco AT DEC. 31, (THOUSANDS) 2019 2018 Current $ 4,401 $ 4,130 Non-current $ 48,321 $ 36,325 Cleco Power AT DEC. 31, (THOUSANDS) 2019 2018 Current $ 3,815 $ 3,584 Non-current $ 42,080 $ 31,694 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, 2019 2018 2019 2018 Weighted-average assumptions used to determine the benefit obligation Discount rate 3.43 % 4.35 % 3.25 % 4.16 % Rate of compensation increase 2.81 % 2.93 % N/A N/A PENSION BENEFITS OTHER BENEFITS FOR THE YEAR ENDED DEC. 31, FOR THE YEAR ENDED DEC. 31, 2019 2018 2017 2019 2018 2017 Weighted-average assumptions used to determine the net benefit cost Discount rate 4.35 % 3.73 % 4.27 % 4.16 % 3.47 % 3.81 % Expected return on plan assets 6.55 % 5.86 % 6.08 % N/A N/A N/A Rate of compensation increase 2.81 % 2.93 % 2.98 % 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. The result was also compared to the expected rate of return of other comparable plans. 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 2020 periodic expense, Cleco decreased the expected long-term return on plan assets to 5.91%. Cleco expects pension expense to increase in 2020 by approximately $6.0 million due to a decrease in the discount rate and a decrease 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, 2019, 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 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, 2019, and 2018. The following tables disclose the pension plan’s fair value of financial assets measured on a recurring basis: (THOUSANDS) AT DEC. 31, 2019 QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) Asset Description Cash equivalents $ 4,810 $ — $ 4,810 $ — Government securities 19,517 — 19,517 — Mutual funds Domestic 102,184 102,184 — — International 53,041 53,041 — — Real estate funds 18,017 — — 18,017 Corporate debt 157,109 — 157,109 — Total $ 354,678 $ 155,225 $ 181,436 $ 18,017 Investments measured at net asset value* 103,326 Interest accrual 2,093 Total net assets $ 460,097 *Investments measured at net asset value consist of Common/collective trust. (THOUSANDS) AT DEC. 31, 2018 QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) Asset Description Cash equivalents $ 2,471 $ — $ 2,471 $ — Common stock 13,111 13,111 — — Government securities 19,831 — 19,831 — Mutual funds Domestic 79,210 79,210 — — International 43,418 43,418 — — Real estate funds 20,298 — — 20,298 Corporate debt 138,391 — 138,391 — Total $ 316,730 $ 135,739 $ 160,693 $ 20,298 Investments measured at net asset value* 73,100 Interest accrual 2,103 Total net assets $ 391,933 *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, 2019, and 2018: (THOUSANDS) Balance, Dec. 31, 2017 $ 19,195 Realized losses 29 Unrealized gains 391 Purchases 710 Sales (27 ) Balance, Dec. 31, 2018 $ 20,298 Realized gains 370 Unrealized losses (1,727 ) Purchases 759 Sales (1,683 ) Balance, Dec. 31, 2019 $ 18,017 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 2019, the return on plan assets was 22.17% compared to an expected long-term return of 6.55%. The 2018 return on pension plan assets was (7.31)% compared to an expected long-term return of 5.86%. As of December 31, 2019, 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 three- to five-year 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, Customer Index related to Multi-Asset Credit asset class, Bloomberg Barclays Capital Long Credit Index, Bloomberg Barclays 15+ Year Treasury STRIPS, 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 of a 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 in any one economic sector should not exceed the lesser of three times the sector’s weighting in the S&P 500 Index or 35% of the portfolio. • Equity holdings should represent at least 90% 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 entities denominated in U.S. dollars are limited to 10%. Securities denominated in currencies other than U.S. dollars are not permitted. • The purchase of securities on margin and short sales is prohibited. International Equity - Developed Markets Portfolios • Equity holdings of 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 stocks should be owned. • Equity holdings in any industry sector should not exceed 35%. • 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 should not exceed 10% of the manager’s portfolio. • A minimum of 30 individual stocks should be owned. • Equity holdings of a single industry should not exceed 25%. • Equity investments must represent at least 75% of the manager’s portfolio. • A minimum of three countries should be represented within the manager’s portfolio. • Illiquid securities which are not readily marketable may represent no more than 10% of the manager’s portfolio. • 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 • Permitted assets include U.S. government and agency securities, corporate securities, mortgage-backed securities, investment-grade private placements, surplus notes, trust preferred, e-caps and hybrids, money-market securities, and senior and subordinated debt. • At least 90% of securities must be U.S. dollar denominated. • At least 70% of the securities must be investment-grade credit. • Securities must have a maximum position size of 5% for A rated securities and 3% for BBB rated securities. • The duration of the portfolio must be within +/- 1 year of benchmark. • 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 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 and Treasury STRIPS manger(s) are exempt from the prohibition on derivatives use, due to the nature of long duration fixed income management. Currency hedging is permitted for international investing. The investment manager of affiliated securities 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, 2019: PERCENT OF TOTAL PLAN ASSETS AT DEC. 31, 2019 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 2020 and remains at 5.0% thereafter. The rate used for 2019 was also 5.0%. Assumed health care cost trend rates have a limited effect on the amount reported for Cleco’s health care plans. A one-percentage point change in assumed health care cost trend rates would have the following effects on Other Benefits: ONE-PERCENTAGE POINT (THOUSANDS) INCREASE DECREASE Effect on total of service and interest cost components $ 14 $ (16 ) Effect on postretirement benefit obligation $ 205 $ (229 ) The projected benefit payments for the employee pension plan and Other Benefits obligation plan for each year through 2024 and the next five years thereafter are listed in the following table: (THOUSANDS) PENSION BENEFITS OTHER BENEFITS, GROSS For the year ending Dec. 31, 2020 $ 24,065 $ 4,472 2021 $ 25,293 $ 4,498 2022 $ 26,541 $ 4,554 2023 $ 27,709 $ 4,536 2024 $ 28,741 $ 4,531 Next five years $ 158,810 $ 21,706 SERP Certain Cleco officers are covered by SERP. In 2014, SERP was closed to new participants; however, with regard to current SERP participants, including former employees or their beneficiaries, all terms of SERP will continue, other than as described below. SERP is a non-qualified, non-contributory, defined benefit pension plan. Generally, benefits under the plan reflect an employee’s years of service, age at retirement, and the sum of (a) the highest base salary paid out over the last five calendar years and (b) the average of the five highest cash bonuses paid during the 60 months prior to retirement. SERP benefits are reduced by retirement benefits received from any other defined benefit pension plan, supplemental executive retirement plan, or Cleco contributions under the enhanced 401(k) Plan to the extent such contributions exceed the amount the employee would have received under the terms of the original 401(k) Plan. Two executive officers’ SERP benefits were capped as of December 31, 2017, with regard to final compensation; however, adjustments will continue with regard to age and tenure with Cleco. Additionally, these executive officers had their annual bonuses set at target rather than actual awards for 2017 for the average incentive award portion of their SERP benefit calculation. A third executive officer’s SERP benefit amount will be set at a specified amount based upon the year of separation. Management reviews current market trends as it evaluates Cleco’s future compensation strategy. Cleco does not fund the SERP liability, but instead pays for current benefits out of the general funds available. Cleco Power has formed a rabbi trust. The life insurance policies issued on SERP participants designate the rabbi trust as the beneficiary. Market conditions could have a significant impact on the cash surrender value of the life insurance policies. Proceeds from the life insurance policies are expected to be used to pay the SERP participants’ death benefits, as well as future SERP payments. However, because SERP is a non-qualified plan, the assets of the trust could be used to satisfy general creditors of Cleco Power in the event of insolvency. All SERP benefits are paid out of the general cash available of the respective companies that employed the officer. Cleco Power is the plan sponsor and Support Group is the plan administrator. SERP’s funded status at December 31, 2019, and 2018 is presented in the following table: SERP BENEFITS FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2019 2018 Change in benefit obligation Benefit obligation at beginning of period $ 78,414 $ 84,339 Service cost 330 542 Interest cost 3,326 3,077 Actuarial loss (gain) 11,608 (5,163 ) Benefits paid (4,550 ) (4,381 ) Benefit obligation at end of period $ 89,128 $ 78,414 SERP’s accumulated benefit obligation at December 31, 2019, and 2018 is presented in the following table: SERP BENEFITS AT DEC. 31, (THOUSANDS) 2019 2018 Accumulated benefit obligation $ 89,128 $ 78,414 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, 2019, and 2018: SERP BENEFITS FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2019 2018 Net actuarial loss (gain) occurring during year $ 11,608 $ (5,163 ) Net actuarial loss amortized during year $ 1,544 $ 2,913 Prior service credit amortized during year $ (160 ) $ (160 ) 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 and the amounts expected to be recognized in 2020 for SERP at December 31, 2020, 2019, and 2018: SERP BENEFITS AT DEC. 31, (THOUSANDS) 2020 2019 2018 Net actuarial loss $ 3,171 $ 28,731 $ 17,261 Prior service credit $ (160 ) $ (1,678 ) $ (1,837 ) 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 2019, 2018, and 2017 are as follows: SERP BENEFITS FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2019 2018 2017 Components of periodic benefit costs Service cost $ 330 $ 542 $ 494 Interest cost 3,326 3,077 3,239 Amortizations Prior service credit (160 ) (160 ) (190 ) Net loss 1,544 2,913 2,105 Net periodic benefit cost 5,040 6,372 5,648 Special/contractual termination benefits — — 315 Total benefit cost $ 5,040 $ 6,372 $ 5,963 There was a remeasurement of SERP at March 30, 2017, to reflect a special termination benefit resulting from an executive officer’s separation agreement. On the date of the remeasurement, the discount rate decreased from 4.22% to 4.08%. This remeasurement resulted in a special termination benefit for the executive officer of $0.3 million. The 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, 2019 2018 Weighted-average assumptions used to determine the benefit obligation Discount rate 3.37 % 4.34 % Rate of compensation increase 5.00 % 5.00 % SERP BENEFITS JAN. 1, 2019 - DEC. 31, 2019 JAN. 1, 2018 - DEC. 31, 2018 MAR. 31, 2017 - DEC. 31, 2017 JAN. 1, 2017 - MAR. 30, 2017 Weighted-average assumptions used to determine the net benefit cost Discount rate 4.34 % 3.70 % 4.08 % 4.22 % Rate of compensation increase 5.00 % 5.00 % 5.00 % 5.00 % The expense related to SERP reflected on Cleco Power’s Consolidated Statements of Income for the years ended December 31, 2019, 2018, and 2017 was $0.8 million, $1.4 million, and $1.3 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, 2019, and 2018 are as follows: Cleco AT DEC. 31, (THOUSANDS) 2019 2018 Current $ 4,599 $ 4,478 Non-current $ 84,529 $ 73,936 Cleco Power AT DEC. 31, (THOUSANDS) 2019 2018 Current $ 760 $ 930 Non-current $ 13,964 $ 12,025 The projected benefit payments for SERP for each year through 2024 and the next five years thereafter are shown in the following table: (THOUSANDS) 2020 2021 2022 2023 2024 NEXT FIVE YEARS SERP $ 4,662 $ 4,689 $ 4,698 $ 4,710 $ 4,753 $ 24,861 401(k) Plan Cleco’s 401(k) Plan is intended to provide active, eligible employees with voluntary, long-term savings and investment opportunities. The 401(k) Plan is a defined contribution plan and is subject to the applicable provisions of the Employee Retirement Income Security Act of 1974. In accordance with the 401(k) Plan, employer contributions are made in the form of cash. Cash contributions are invested in proportion to the participant’s voluntary contribution investment choices. Participation in the Plan is voluntary and active Cleco employees are eligible to participate. Cleco’s 401(k) was amended upon the close of the Cleco Cajun Transaction to include Cleco Cajun employees. Cleco’s 401(k) Plan expense for the years ended December 31, 2019, 2018, and 2017 was as follows: FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2019 2018 2017 401(k) Plan expense $ 7,861 $ 5,884 $ 5,386 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, 2019, 2018, and 2017 was as follows: FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2019 2018 2017 401(k) Plan expense $ 3,408 $ 1,066 $ 888 |
Income Taxes (FY)
Income Taxes (FY) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Income Taxes | Note 10 — Income Taxes Effective Tax Rates The following tables summarize the effective income tax rates for Cleco and Cleco Power for the three months ended March 31, 2020, and 2019: Cleco FOR THE THREE MONTHS ENDED MAR. 31, 2020 2019 Effective tax rate 19.8 % 22.6 % Cleco Power FOR THE THREE MONTHS ENDED MAR. 31, 2020 2019 Effective tax rate 22.0 % 23.0 % For the three months ended March 31, 2020, and 2019, the effective income tax rates for both Cleco and Cleco Power were different than the federal statutory rate primarily due to permanent tax differences; the flowthrough of tax benefits, including AFUDC equity; and state tax expense. Net Operating Loss For the 2019 tax year, Cleco created approximately $551.4 million and $82.6 million of federal and state net operating losses, respectively, primarily due to the Cleco Cajun Transaction. The federal net operating loss may be carried forward indefinitely, and state net operating loss carryforwards will begin to expire in 2039. Cleco considers it more likely than not that these income tax losses will be utilized to reduce future income tax payments and utilize the entire net operating loss carryforward within the statutory deadlines. Uncertain Tax Positions Cleco classifies all interest related to uncertain tax positions as a component of interest payable and interest expense. At March 31, 2020, and December 31, 2019, Cleco and Cleco Power had no liability for uncertain tax positions or interest payable related to uncertain tax positions. Cleco estimates that it is reasonably possible that the balance of unrecognized tax benefits as of March 31, 2020, for Cleco and Cleco Power would be unchanged in the next 12 months. The settlement of open tax years could involve the payment of additional taxes, and/or the recognition of tax benefits, which may have an effect on Cleco’s effective tax rate. Income Tax Audits Cleco participates in the IRS’s Compliance Assurance Process in which financial results are examined and agreed upon prior to filing the federal consolidated tax return. While the statute of limitations remains open for tax years 2016, 2017, and 2018, management believes the likelihood of further examination by the IRS is remote. The state income tax years 2016, 2017, and 2018 remain subject to examination by the Louisiana Department of Revenue. Cleco classifies income tax penalties as a component of other expense. For the three months ended March 31, 2020, and 2019, no penalties were recognized. Coronavirus Aid, Relief and Economic Security (CARES Act) On March 27, 2020, the CARES Act was enacted and signed into law in response to the COVID-19 pandemic. Among other provisions, the CARES Act includes modifications on the limitations of business interest for the 2019 and 2020 tax years. The modifications increase the allowable business interest deduction from 30% to 50% of adjusted taxable income. The modification increased Cleco’s allowable interest expense deduction and, as a result, decreased taxable income, creating larger net operating loss carryforwards for the tax year ended December 31, 2019. As a result of the CARES Act, Cleco does not expect any disallowed interest for the 2019 and 2020 tax years. | Note 11 — Income Taxes Cleco For the years ended December 31, 2019, and 2018, income tax expense was higher than the amount computed by applying the statutory federal rate. For the year ended December 31, 2017, income tax expense was lower than the amount computed by applying the statutory federal rate. The differences are as follows: FOR THE YEAR ENDED DEC. 31, (THOUSANDS, EXCEPT PERCENTAGES) 2019 2018 2017 Income before tax $ 195,830 $ 123,819 $ 145,159 Statutory rate 21.0 % 21.0 % 35.0 % Tax expense at federal statutory rate $ 41,124 $ 26,002 $ 50,806 Increase (decrease) Plant differences, including AFUDC flowthrough (4,687 ) (401 ) 743 State income taxes, net of federal benefit 9,565 6,288 5,047 Return to accrual adjustment (3,963 ) (193 ) (608 ) TCJA — (19 ) (46,291 ) NMTC — (1,578 ) 313 Other, net 1,126 (717 ) (2,931 ) Total tax expense $ 43,165 $ 29,382 $ 7,079 Effective rate 22.0 % 23.7 % 4.9 % Information about current and deferred income tax expense is as follows: FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2019 2018 2017 Current federal income tax expense $ 1,600 $ 15,304 $ 46,520 Deferred federal income tax expense (benefit) 37,963 5,863 (47,329 ) Amortization of accumulated deferred investment tax credits (191 ) (236 ) (662 ) Total federal income tax expense (benefit) $ 39,372 $ 20,931 $ (1,471 ) Current state income tax expense 1,675 7,771 3,187 Deferred state income tax expense 2,118 680 5,363 Total state income tax expense $ 3,793 $ 8,451 $ 8,550 Total federal and state income tax expense $ 43,165 $ 29,382 $ 7,079 Items charged or credited directly to member’s equity Federal deferred (5,130 ) 1,408 (2,380 ) State deferred (1,678 ) 460 (384 ) Total tax (benefit) expense from items charged directly to member’s equity $ (6,808 ) $ 1,868 $ (2,764 ) Total federal and state income tax expense $ 36,357 $ 31,250 $ 4,315 The balance of accumulated deferred federal and state income tax assets and liabilities at December 31, 2019, and 2018 was comprised of the following: AT DEC. 31, (THOUSANDS) 2019 2018 Depreciation and property basis differences $ (862,263 ) $ (664,996 ) Net operating loss carryforward 120,955 — NMTC 92,364 86,673 Fuel costs (3,984 ) (8,339 ) Other comprehensive income 10,612 640 Regulated operations regulatory liability, net 34,836 39,808 Postretirement benefits 22,691 19,580 Merger fair value adjustments (52,957 ) (56,725 ) Other (19,312 ) (24,671 ) Accumulated deferred federal and state income taxes, net $ (657,058 ) $ (608,030 ) Valuation Allowance Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. As of December 31, 2019, and 2018, Cleco had a deferred tax asset resulting from NMTC carryforwards of $92.4 million and $86.9 million, respectively. If the NMTC carryforwards are not utilized, they will begin to expire in 2029. Management considers it more likely than not that all deferred tax assets related to NMTC carryforwards will be realized; therefore, no valuation allowance has been recorded. Net Operating Losses For the 2019 tax year, Cleco created approximately $536.5 million and $68.7 million of federal and state net operating losses, respectively, primarily due to the Cleco Cajun Transaction. The federal net operating loss may be carried forward indefinitely, and state net operating loss carryforwards will begin to expire in 2039. Cleco considers it more likely than not that these income tax losses will be utilized to reduce future income tax payments and utilize the entire net operating loss carryforward within the statutory deadlines. Cleco Power For the years ended December 31, 2019, and 2018, income tax expense was higher than the amount computed by applying the statutory rate. For the year ended December 31, 2017, income tax expense was lower than the amount computed by applying the statutory federal rate to income before tax. The differences are as follows: FOR THE YEAR ENDED DEC. 31, (THOUSANDS, EXCEPT PERCENTAGES) 2019 2018 2017 Income before tax $ 193,714 $ 218,181 $ 218,069 Statutory rate 21.0 % 21.0 % 35.0 % Tax expense at federal statutory rate $ 40,680 $ 45,818 $ 76,324 Increase (decrease) Plant differences, including AFUDC flowthrough (4,687 ) (401 ) 743 State income taxes, net of federal benefit 11,683 11,080 7,583 Return to accrual adjustment (2,008 ) 483 (284 ) TCJA — (19 ) (14,292 ) Other, net (216 ) (1,037 ) (2,743 ) Total taxes $ 45,452 $ 55,924 $ 67,331 Effective rate 23.5 % 25.6 % 30.9 % Information about current and deferred income tax expense is as follows: FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2019 2018 2017 Current federal income tax expense $ 14,781 $ 44,411 $ 87,433 Deferred federal income tax expense (benefit) 22,443 (9,033 ) (29,190 ) Amortization of accumulated deferred investment tax credits (191 ) (236 ) (662 ) Total federal income tax expense $ 37,033 $ 35,142 $ 57,581 Current state income tax expense 9,063 23,293 14,751 Deferred state income tax benefit (644 ) (2,511 ) (5,001 ) Total state income tax expense $ 8,419 $ 20,782 $ 9,750 Total federal and state income taxes $ 45,452 $ 55,924 $ 67,331 Items charged or credited directly to members’ equity Federal deferred (2,500 ) 797 (141 ) State deferred (818 ) 261 (23 ) Total tax (benefit) expense from items charged directly to member’s equity $ (3,318 ) $ 1,058 $ (164 ) Total federal and state income tax expense $ 42,134 $ 56,982 $ 67,167 The balance of accumulated deferred federal and state income tax assets and liabilities at December 31, 2019, and 2018 was comprised of the following: AT DEC. 31, (THOUSANDS) 2019 2018 Depreciation and property basis differences $ (705,423 ) $ (666,224 ) Net operating loss carryforward 2,714 — Fuel costs (5,608 ) (8,339 ) Other comprehensive income 7,510 4,192 Regulated operations regulatory liability, net 34,836 39,808 Postretirement benefits 10,044 11,081 Other (1,907 ) (11,283 ) Accumulated deferred federal and state income taxes, net $ (657,834 ) $ (630,765 ) 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. Management considers it more likely than not that all deferred tax assets will be realized; therefore, no valuation allowance has been recorded. Uncertain Tax Positions Cleco classifies all interest related to uncertain tax positions as a component of interest payable and interest expense. At December 31, 2019, and 2018, Cleco and Cleco Power had no interest payable related to uncertain tax positions. For the years ended December 31, 2019, 2018, and 2017, Cleco and Cleco Power had no interest expense related to uncertain tax positions. At December 31, 2019, and 2018, Cleco and Cleco Power had no liability for unrecognized tax positions. Cleco estimates that it is reasonably possible that the balance of unrecognized tax benefits as of December 31, 2019, for Cleco and Cleco Power would be unchanged in the next 12 months. The settlement of open tax years could involve the payment of additional taxes, and/or the recognition of tax benefits, which may affect Cleco’s effective income tax rate. Income Tax Audits Cleco participates in the IRS’s Compliance Assurance Process in which financial results are examined and agreed upon prior to filing federal consolidated tax returns. The 2018 federal income tax year remains subject to examination by the IRS. While the statute of limitations remains open for tax years 2016 and 2017 until 2020 and 2021, respectively, management believes the likelihood of further examination by the IRS is remote. The state income tax years 2016, 2017, and 2018 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, 2019, and 2018, no penalties were recognized. TCJA On December 22, 2017, the President signed into law the TCJA. 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%. The SEC Staff recognized the complexity of reflecting the impacts of the TCJA and issued guidance which clarified accounting for income taxes and allowed for up to one year to complete the required analysis and accounting (the measurement period). During the fourth quarter of 2018, Cleco finalized the remeasurement of and accounting for the effects of the TCJA, which resulted in a total net reduction in the ADIT liability for Cleco and Cleco Power of $421.2 million and $389.3 million, respectively. For more information on the regulatory treatment of the TCJA regulatory liability, see Note 6 — “Regulatory Assets and Liabilities — Income Taxes” and Note 13 — “Regulation and Rates — TCJA.” Additionally, as a result of the TCJA, effective for tax years beginning after December 31, 2017, corporations are no longer subject to the alternative minimum tax (AMT). For companies with unused AMT credits, the credits may be carried forward and used as refundable credits for tax years beginning after 2017, but before 2022. Cleco expects its unused AMT credits will be fully utilized by December 31, 2021. During 2018, Cleco’s $7.6 million of unused tax credits were reclassed from Accumulated deferred federal and state income taxes, net to Taxes payable, net and Other deferred charges on Cleco’s Consolidated Balance Sheets. At December 31, 2019, and 2018, Cleco had $1.4 million and $3.8 million in AMT credits recorded in Taxes payable, net on Cleco’s Consolidated Balance Sheets for the current amount of credits expected to be utilized. At December 31, 2019, and 2018, Cleco had $1.4 million and $3.8 million in non-current AMT credits recorded in Other deferred charges on Cleco’s Consolidated Balance Sheets. |
Disclosures about Segments (FY)
Disclosures about Segments (FY) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting [Abstract] | ||
Disclosures about Segments | Note 11 — Disclosures about Segments Cleco’s reportable segments are based on its method of internal reporting, which disaggregates business units by its first-tier subsidiary. Cleco’s reportable segments are Cleco Power and Cleco Cajun. Each reportable segment engages in business activities from which it earns revenue and incurs expenses. Segment managers report periodically to Cleco’s CEO with discrete financial information and, at least quarterly, present discrete financial information to Cleco and Cleco Power’s Boards of Managers. The reportable segment prepares budgets that are presented to and approved by Cleco and Cleco Power’s Boards of Managers. The column shown as Other in the following tables includes the holding company, a shared services subsidiary, 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 transaction, see Note 2 — “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. Management evaluates the performance of its segments and allocates resources to them based on segment profit and the requirements to implement strategic initiatives and projects to meet current business objectives. Material intercompany transactions occur on a regular basis. These intercompany transactions relate primarily to joint and common administrative support services as well as transmission services provided by Cleco Power to Cleco Cajun. Segment Information For The Three Months Ended Mar. 31, 2020 (THOUSANDS) CLECO POWER CLECO CAJUN OTHER ELIMINATIONS CONSOLIDATED Revenue Electric operations $ 224,430 $ 89,147 $ (2,420 ) $ — $ 311,157 Other operations 15,764 30,961 1 (1,818 ) 44,908 Affiliate revenue 1,106 161 29,278 (30,545 ) — Electric customer credits (8,340 ) (153 ) — — (8,493 ) Operating revenue, net $ 232,960 $ 120,116 $ 26,859 $ (32,363 ) $ 347,572 Depreciation and amortization $ 43,677 $ 10,103 $ 2,094 $ (1 ) $ 55,873 Interest income $ 954 $ 155 $ 100 $ (52 ) $ 1,157 Interest charges $ 18,581 $ 10 $ 16,610 $ (52 ) $ 35,149 Federal and state income tax expense (benefit) $ 3,338 $ 6,421 $ (8,197 ) $ — $ 1,562 Net income (loss) $ 11,831 $ 19,535 $ (25,039 ) $ 1 $ 6,328 Additions to property, plant, and equipment $ 61,477 $ 3,341 $ 806 $ — $ 65,624 Equity investment in investees $ 17,072 $ — $ — $ — $ 17,072 Goodwill $ 1,490,797 $ — $ — $ — $ 1,490,797 Total segment assets $ 6,098,446 $ 1,020,099 $ 616,068 $ (58,418 ) $ 7,676,195 2019 (THOUSANDS) CLECO POWER CLECO CAJUN OTHER ELIMINATIONS CONSOLIDATED Revenue Electric operations $ 257,175 $ 58,194 $ (2,420 ) $ — $ 312,949 Other operations 19,430 19,965 2 — 39,397 Affiliate revenue 300 — 26,535 (26,835 ) — Electric customer credits (8,160 ) — — — (8,160 ) Operating revenue, net $ 268,745 $ 78,159 $ 24,117 $ (26,835 ) $ 344,186 Depreciation and amortization $ 42,377 $ 5,410 $ 2,069 $ — $ 49,856 Interest income $ 994 $ 254 $ 417 $ (174 ) $ 1,491 Interest charges $ 17,145 $ — $ 17,028 $ (174 ) $ 33,999 Federal and state income tax expense (benefit) $ 7,998 $ 3,529 $ (5,540 ) $ (1 ) $ 5,986 Net income (loss) $ 26,712 $ 11,056 $ (17,210 ) $ (1 ) $ 20,557 Additions to property, plant, and equipment $ 81,040 $ 1,530 $ 1,109 $ — $ 83,679 Equity investment in investees (1) $ 17,072 $ — $ — $ — $ 17,072 Goodwill (1) $ 1,490,797 $ — $ — $ — $ 1,490,797 Total segment assets (1) $ 5,967,327 $ 1,011,591 $ 546,096 $ (48,716 ) $ 7,476,298 (1) | Note 12 — Disclosures about Segment 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 with discrete financial information and, at least quarterly, present discrete financial information to Cleco and Cleco Power’s Boards of Managers. The reportable segment prepares budgets that are presented to and approved by Cleco and Cleco Power’s Boards of Managers. The column shown as Other in the following tables includes the holding company, a shared services subsidiary, an investment subsidiary, and a subsidiary formed to facilitate the Cleco Cajun Transaction. Upon the completion of the Cleco Cajun Transaction on February 4, 2019, Cleco Cajun became a new reportable segment. For more information on the transaction, see Note 3 — “Business Combinations.” The financial results in the following tables are presented on an accrual basis. The historical segment information was not recast because the Cleco Cajun segment only consists of the newly acquired business. There were no other changes to Cleco’s existing reportable segments. Management evaluates the performance of its segments and allocates resources to them based on segment profit and the requirements to implement strategic initiatives and projects to meet current business objectives. Material intercompany transactions occur on a regular basis. These intercompany transactions relate primarily to joint and common administrative support services as well as transmission services provided by Cleco Power to Cleco Cajun. SEGMENT INFORMATION FOR THE YEAR ENDED DEC. 31, 2019 (THOUSANDS) CLECO POWER CLECO CAJUN OTHER ELIMINATIONS CONSOLIDATED Revenue Electric operations $ 1,130,928 $ 375,489 $ (9,680 ) $ (1 ) $ 1,496,736 Other operations 72,833 117,468 2 (7,471 ) 182,832 Affiliate revenue 3,125 108 109,067 (112,300 ) — Electric customer credits (38,516 ) (1,447 ) — — (39,963 ) Operating revenue, net $ 1,168,370 $ 491,618 $ 99,389 $ (119,772 ) $ 1,639,605 Depreciation and amortization $ 172,471 $ 35,544 $ 8,305 $ — $ 216,320 Merger transaction and commitment costs $ — $ — $ 7,668 $ — $ 7,668 Interest income $ 4,744 $ 987 $ 974 $ (615 ) $ 6,090 Interest charges $ 71,279 $ 35 $ 70,611 $ (616 ) $ 141,309 Net income (loss) $ 148,262 $ 69,411 $ (65,009 ) $ 1 $ 152,665 Additions to property, plant, and equipment $ 313,962 $ 9,174 $ 655 $ — $ 323,791 Equity investment in investee $ 17,072 $ — $ — $ — $ 17,072 Goodwill $ 1,490,797 $ — $ — $ — $ 1,490,797 Total segment assets $ 5,967,327 $ 1,011,591 $ 546,096 $ (48,716 ) $ 7,476,298 FOR THE YEAR ENDED DEC. 31, 2018 (THOUSANDS) CLECO POWER OTHER ELIMINATIONS CONSOLIDATED Revenue Electric operations $ 1,191,587 $ (9,680 ) $ — $ 1,181,907 Other operations 82,330 2 — 82,332 Affiliate revenue 874 74,591 (75,465 ) — Electric customer credits (33,195 ) — — (33,195 ) Operating revenue, net $ 1,241,596 $ 64,913 $ (75,465 ) $ 1,231,044 Depreciation and amortization $ 162,069 $ 8,344 $ 1 $ 170,414 Merger transaction and commitment costs $ — $ 19,514 $ — $ 19,514 Interest income $ 5,052 $ 1,338 $ (317 ) $ 6,073 Interest charges $ 71,303 $ 55,659 $ (320 ) $ 126,642 Federal and state income tax expense (benefit) $ 55,924 $ (26,541 ) $ (1 ) $ 29,382 Net income (loss) $ 162,257 $ (67,819 ) $ (1 ) $ 94,437 Additions to property, plant, and equipment $ 289,153 $ 1,908 $ — $ 291,061 Equity investment in investee $ 18,172 $ — $ — $ 18,172 Goodwill $ 1,490,797 $ — $ — $ 1,490,797 Total segment assets $ 5,839,853 $ 633,756 $ (36,795 ) $ 6,436,814 FOR THE YEAR ENDED DEC. 31, 2017 (THOUSANDS) CLECO POWER OTHER ELIMINATIONS CONSOLIDATED Revenue Electric operations $ 1,108,389 $ (10,757 ) $ — $ 1,097,632 Other operations 77,522 2,058 — 79,580 Affiliate revenue 851 57,168 (58,019 ) — Electric customer credits (1,566 ) — — (1,566 ) Operating revenue, net $ 1,185,196 $ 48,469 $ (58,019 ) $ 1,175,646 Depreciation and amortization $ 158,415 $ 8,439 $ — $ 166,854 Merger transaction and commitment costs $ — $ 5,445 $ (293 ) $ 5,152 Interest income $ 1,283 $ 316 $ (175 ) $ 1,424 Interest charges $ 69,362 $ 53,725 $ (174 ) $ 122,913 Federal and state income tax expense (benefit) $ 67,331 $ (60,252 ) $ — $ 7,079 Net income (loss) $ 150,738 $ (12,659 ) $ 1 $ 138,080 Additions to property, plant, and equipment $ 235,252 $ 1,680 $ — $ 236,932 Equity investment in investee $ 18,172 $ — $ — $ 18,172 Goodwill $ 1,490,797 $ — $ — $ 1,490,797 Total segment assets $ 5,679,538 $ 619,943 $ (21,099 ) $ 6,278,382 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 (FY)
Regulation and Rates (FY) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Regulated Operations [Abstract] | ||
Regulation and Rates | Note 12 — Regulation and Rates At March 31, 2020, Provision for rate refund on Cleco and Cleco Power’s Condensed Consolidated Balance Sheets consisted primarily of $19.7 million for the estimated refund for the tax-related benefits from the TCJA, $3.5 million for the estimated refund related to the FERC audit, $2.2 million for the cost of service savings refunds, and $1.0 million for the change in transmission ROE. For more information about the FERC audit, see Note 14 — “Litigation, Other Commitments and Contingencies, and Disclosures about Guarantees — Litigation — FERC Audit.” Transmission ROE Two complaints were filed with FERC seeking to reduce the ROE component of the transmission rates that MISO transmission owners, including Cleco, may collect under the MISO tariff. As of Cleco Power h FRP Cleco Power’s annual retail earnings are subject to an FRP that was approved by the LPSC in June 2014. Under the terms of Cleco Power’s current FRP, Cleco Power is allowed to earn a target ROE of 10.0%, while providing the opportunity to earn up to 10.9%. Additionally, 60.0% of retail earnings between 10.9% and 11.75%, and all retail earnings over 11.75%, are required to be refunded to customers. The amount of credits due to customers, if any, is determined by Cleco Power and the LPSC, annually. Credits are typically included on customers’ bills the following summer, but the amount and timing of the refunds are ultimately subject to LPSC approval. On June 28, 2019, Cleco Power filed an application with the LPSC for a new FRP, with anticipated new rates being effective July 1, 2020. Cleco Power has responded to several sets of data requests relating to the new FRP. Cleco Power must file annual monitoring reports no later than October 31 for the 12-month period ending June 30. In January 2020, Cleco Power reached an agreement with the LPSC Staff regarding the treatment and realignment of SSR revenue between base and fuel revenue that resulted in $2.3 million of refunds for the 2018 monitoring report and confirmed no refunds for the 2017 monitoring report. The settlement also applies to treatment of SSR revenues for the 2019 monitoring report. The 2017 monitoring report was approved by the LPSC Staff on February 19, 2020. Cleco Power refunded the $2.3 million for the 2018 monitoring report in March 2020 as agreed to in the settlement of the 2017 monitoring report. On April 30, 2020, the LPSC filed the uncontested Joint Report and Draft Order on Cleco Power’s FRP for the 12 months ended June 30, 2018. The conclusions were an earnings-related refund of $2.3 million, which was refunded on March 2020 bills, and no adjustments to rider FRP. Cleco Power expects approval on the 2018 monitoring report in the second quarter of 2020. Cleco Power has also responded to data requests relating to the 2019 FRP monitoring report. Cleco Power’s monitoring reports also included a $1.2 million annual cost of service savings as a result of the 2016 Merger Commitments. The cost of service savings are not subject to the target ROE or any sharing mechanism. The cost of service savings are refunded annually in September and will continue until Cleco Power’s next FRP is in effect, which is expected in July 2020. At March 31, 2020, Cleco Power had $2.2 million accrued for the estimated cost of service savings refunds. 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 is being credited to customers over 12 months beginning August 1, 2019. At March 31, 2020, Cleco Power had $19.7 million accrued for the estimated federal tax-related benefits from the TCJA and $1.6 million accrued in related interest. Also, 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 application for its next FRP, which was filed on June 28, 2019. SSR In September 2016, Cleco Power filed an Attachment Y with MISO requesting retirement of Teche Unit 3 effective April 1, 2017. MISO conducted a study which determined the proposed retirement of Teche Unit 3 would result in violations of specific applicable reliability standards for which no mitigation is available. As a result, MISO designated Teche Unit 3 as an SSR unit until such time that an appropriate alternative solution could be implemented to mitigate reliability issues. One mitigating factor identified was Cleco Power’s Terrebonne to Bayou Vista Transmission project, 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. Cleco Power expects Teche Unit 3 to be available to run until the estimated 2021 in-service date of the Bayou Vista to Segura Transmission project, at which time Cleco Power does not expect to offer the unit into MISO, barring any grid or customer reliability issues or other similar reasons. At March 31, 2020, Cleco Power had $6.1 million accrued for the net capital refund for capital expenditures paid for by third parties while operating under the SSR agreement. As part of the settlement, one of the load serving entities agreed to reimburse Cleco Power for their portion of the capital refund. Management is unable to determine the timing of the capital refund. | Note 13 — Regulation and Rates At December 31, 2019, Provision for rate refund on Cleco and Cleco Power’s Consolidated Balance Sheets consisted primarily of $28.7 million for the estimated refund for the tax-related benefits from the TCJA, $3.5 million for the estimated refund related to the FERC audit, $2.3 million for the estimated FRP refunds, $1.9 million for the cost of service savings refunds, and $1.0 million for potential reductions to the transmission ROE. For more information about the FERC audit, see Note 15 — “Litigation, Other Commitments and Contingencies, and Disclosures about Guarantees — Litigation — FERC Audit.” Transmission ROE Two complaints were filed with FERC seeking to reduce the ROE component of the transmission rates that MISO transmission owners, including Cleco Power, may collect under the MISO tariff. As of December 31, 2019, Cleco Power had $1.0 million accrued for the change in ROE. For more information on the ROE complaint, see Note 15 — “Litigation, Other Commitments and Contingencies, and Disclosures about Guarantees — Litigation — Transmission ROE.” FRP Cleco Power’s annual retail earnings are subject to an FRP that was approved by the LPSC in June 2014. Under the terms of Cleco Power’s current FRP, Cleco Power is allowed to earn a target ROE of 10.0%, while providing the opportunity to earn up to 10.9%. Additionally, 60% of retail earnings between 10.9% and 11.75%, and all retail earnings over 11.75% are required to be refunded to customers. The amount of credits due to customers, if any, is determined by Cleco Power and the LPSC annually. Credits are typically included on customers’ bills the following summer, but the amount and timing of the refunds are ultimately subject to LPSC approval. On June 28, 2019, Cleco Power filed an application with the LPSC for a new FRP, with anticipated new rates being effective July 1, 2020. Cleco Power has responded to several sets of data requests relating to the new FRP. Cleco Power must file annual monitoring reports no later than October 31 for the 12-month period ending June 30. In January 2020, Cleco Power reached an agreement with the LPSC Staff regarding the treatment and realignment of SSR revenue between base and fuel revenue that resulted in $2.3 million of refunds for the 2018 monitoring report and confirmed no refunds for the 2017 monitoring report. The settlement also applies to treatment of SSR revenues for the 2019 monitoring report. The 2017 monitoring report was approved by the LPSC Staff on February 19, 2020. Cleco Power expects to refund the $2.3 million for the 2018 monitoring report in March 2020. Cleco Power has responded to data requests relating to the 2019 FRP monitoring report. Cleco Power’s monitoring reports also include a $1.2 million annual cost of service savings as a result of the 2016 Merger Commitments. The cost of service savings are not subject to the target ROE or any sharing mechanism. The cost of service savings are refunded annually in September and will continue until Cleco Power’s next FRP is in effect, which is expected in July 2020. At December 31, 2019, Cleco Power had $1.9 million accrued for the estimated cost of service savings refunds. 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. On July 10, 2019, the LPSC approved Cleco Power’s rate refund of $79.2 million, plus interest, for the reduction in the statutory federal tax rate for the period from January 2018 to June 2020. The refund is being credited to customers over 12 months beginning August 1, 2019. At December 31, 2019, Cleco Power had $28.7 million accrued for the estimated federal tax-related benefits from the TCJA and $2.4 million accrued in related interest. Also on July 10, 2019, the LPSC approved Cleco Power’s motion to address the rate redesign and the regulatory liability for excess ADIT, resulting from the enactment of the TCJA, in Cleco Power’s application for its next FRP, which was filed on June 28, 2019. 2016 Merger Commitments On March 28, 2016, the LPSC approved the 2016 Merger. The LPSC’s written order approving the 2016 Merger was issued on April 7, 2016. Approval of the 2016 Merger was conditioned upon certain commitments, including $136.0 million of customer rate credits. As of December 31, 2019, Cleco Power had issued $135.9 million of customer rate credits. Also included in the 2016 Merger Commitments were $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, 2019, Cleco Power had $3.9 million remaining accrued for the 2016 Merger Commitments discussed above. 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 can be implemented to mitigate reliability issues. One mitigating factor identified was Cleco Power’s Terrebonne to Bayou Vista Transmission project. The Terrebonne to Bayou Vista project was completed in April 2019. Cleco Power received a termination notice, effective April 30, 2019, and filed paperwork to withdraw the filed Attachment Y. While operating as an SSR unit, Cleco Power received monthly payments that included recovery of expenses, including capital expenditures, related to the operations of Teche Unit 3. Additionally, MISO allocated SSR costs to the load serving entities that required the operation of the SSR unit, including Cleco Power. These payments and cost allocations were finalized as part of a MISO SSR settlement approved in December 2018. Cleco Power operated Teche Unit 3 as an SSR unit from April 2017 through April 2019. Cleco Power expects Teche Unit 3 to be available to run until the estimated 2021 in-service date of Bayou Vista to Segura Transmission project, at which time, Cleco Power does not expect to offer the unit into MISO, barring any grid or customer reliability issues or other similar reasons. At December 31, 2019, Cleco Power had $6.1 million accrued for the net capital refund for capital expenditures paid for by third parties while operating under the SSR agreement. As part of the settlement, one of the load serving entities agreed to reimburse Cleco Power for their portion of the capital refund. Management is unable to determine the timing of the capital refund. |
Variable Interest Entities (FY)
Variable Interest Entities (FY) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Variable Interest Entities | Note 13 — Variable Interest Entities Cleco and Cleco Power apply the equity method of accounting to report the investment in Oxbow in the consolidated financial statements. Under the equity method, the assets and liabilities of this entity are reported as Equity investment in investee on Cleco and Cleco Power’s Condensed Consolidated Balance Sheets. The revenue and expenses (excluding income taxes) of this entity are netted and reported as equity income or loss from investees on Cleco and Cleco Power’s Condensed Consolidated Statements of Income. Oxbow is owned 50% by Cleco Power and 50% by SWEPCO. Cleco Power is not the primary beneficiary because it shares the power to control Oxbow’s significant activities with SWEPCO. Cleco Power’s current assessment of its maximum exposure to loss related to Oxbow at March 31, 2020 The following table presents the components of Cleco Power’s equity investment in Oxbow: INCEPTION TO DATE (THOUSANDS) AT MAR. 31, 2020 AT DEC. 31, 2019 Purchase price $ 12,873 $ 12,873 Cash contributions 6,399 6,399 Dividends (2,200 ) (2,200 ) Total equity investment in investee $ 17,072 $ 17,072 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: (THOUSANDS) AT MAR. 31, 2020 AT DEC. 31, 2019 Oxbow’s net assets/liabilities $ 34,145 $ 34,145 Cleco Power’s 50% equity $ 17,072 $ 17,072 Cleco Power’s maximum exposure to loss $ 17,072 $ 17,072 The following table contains summarized financial information for Oxbow: FOR THE THREE MONTHS ENDED MAR. 31, (THOUSANDS) 2020 2019 Operating revenue $ 1,882 $ 1,958 Operating expenses 1,882 1,958 Income before taxes $ — $ — DHLC mines lignite reserves at Oxbow through the Amended Lignite Mining Agreement. The lignite reserves are intended to be used to provide fuel to the Dolet Hills Power Station. For more information on DHLC and the Oxbow mine, see Note 14 — 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. | 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, 2019, consisted of its equity investment of $17.1 million. During 2019, Cleco Power received $1.1 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) 2019 2018 Purchase price $ 12,873 $ 12,873 Cash contributions 6,399 6,399 Dividend received (2,200 ) (1,100 ) Total equity investment in investee $ 17,072 $ 18,172 The following table compares the carrying amount of Oxbow’s assets and liabilities with Cleco Power’s maximum exposure to loss related to its investment in Oxbow: AT DEC. 31, (THOUSANDS) 2019 2018 Oxbow’s net assets/liabilities $ 34,145 $ 36,345 Cleco Power’s 50% equity $ 17,072 $ 18,172 Cleco Power’s maximum exposure to loss $ 17,072 $ 18,172 The following tables contain summarized financial information for Oxbow: AT DEC. 31, (THOUSANDS) 2019 2018 Current assets $ 2,239 $ 4,128 Property, plant, and equipment, net 23,738 25,186 Other assets 9,364 9,405 Total assets $ 35,341 $ 38,719 Current liabilities $ 1,196 $ 2,374 Partners’ capital 34,145 36,345 Total liabilities and partners’ capital $ 35,341 $ 38,719 FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2019 2018 2017 Operating revenue $ 8,886 $ 6,992 $ 4,189 Operating expenses 8,886 6,992 4,189 Income before taxes $ — $ — $ — DHLC mines lignite reserves at Oxbow through the Amended Lignite Mining Agreement. The lignite reserves are intended to be used to provide fuel to the Dolet Hills Power Station. For more information on DHLC, 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 (FY) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Litigation, Other Commitments and Contingencies, and Disclosures about Guarantees | Note 14 — Litigation, Other Commitments and Contingencies, and Disclosures about Guarantees Litigation 2016 Merger In connection with the 2016 Merger, four actions were filed in the 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 • Moore v. Macquarie Infrastructure and Real Assets • Trahan v. Williamson • L’Herisson v. Macquarie Infrastructure and Real Assets In November 2014, the plaintiff in the Braunstein The three actions filed in the Civil District Court for Orleans Parish were captioned as follows: • Butler v. Cleco Corporation • Creative Life Services, Inc. v. Cleco Corporation • Cashen v. Cleco Corporation 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 Butler and Cashen Butler Cashen Creative Life Services 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, and 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. Cleco believes that the allegations of the petitions in each action are without merit and that it has substantial meritorious defenses to the claims set forth in each of the petitions. Gulf Coast Spinning In September 2015, a potential customer sued Cleco for failure to fully perform an alleged verbal agreement to lend or otherwise fund its startup costs to the extent of $6.5 million. Gulf Coast Spinning Company, LLC (Gulf Coast), the primary plaintiff, alleges that Cleco promised to assist it in raising approximately $60.0 million, which Gulf Coast needed to construct a cotton spinning facility near Bunkie, Louisiana. According to the petition filed by Gulf Coast in the 12 th Cleco filed an Exception of No Cause of Action arguing that the case should be dismissed. The District Court denied Cleco’s exception in December 2015, after considering briefs and arguments. In January 2016, Cleco appealed the District Court’s denial of its exception by filing with the Third Circuit Court of Appeal. In June 2016, the Third Circuit Court of Appeal denied the request to have the case dismissed. In July 2016, Cleco filed a writ to the Louisiana Supreme Court seeking a review of the District Court’s denial of Cleco’s exception. In November 2016, the Louisiana Supreme Court denied Cleco’s writ application. In February 2016, the parties agreed to a stay of all proceedings pending discussions concerning settlement. In May 2016, the District Court lifted the stay at the request of Gulf Coast. The parties are currently participating in discovery. Cleco believes the allegations of the petition are contradicted by the written documents executed by Gulf Coast, are otherwise without merit, and that it has substantial meritorious defenses to the claims alleged by Gulf Coast. Sabine River Flood In March 2017, Cleco was served with a summons in Perry Bonin, Ace Chandler, and Michael Manuel, et al v. Sabine River Authority of Texas and Sabine River Authority of Louisiana The suit was removed to federal court in Texas. The new federal case is Perry Bonin, et al. v. Sabine River Authority of Texas et al. Bonin In March 2018, approximately 26 other individual plaintiffs filed a petition against Cleco Power and other defendants in Larry Addison, et al. v. Sabine River Authority of Texas, et al. Larry Addison, et al. v. Sabine River Authority of Texas, et al Bonin Bonin Addison Bonin 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. In January 2019, Cleco Power was served with a summons in Saulsbury Industries, Inc. v. Cabot Corporation and Cleco Power LLC On October 10, 2019, Cleco Power was served with a summons in Saulsbury Industries, Inc. v. Cabot Corporation and Cleco Power LLC LPSC Audits Fuel Audit Generally, Cleco Power’s cost of fuel used for electric generation and the cost of purchased power are recovered through the LPSC-established FAC that enables Cleco Power to pass on to its customers substantially all such charges. Recovery of FAC costs is subject to periodic fuel audits by the LPSC. The LPSC FAC General Order issued in November 1997, in Docket No. U-21497 provides that an audit of FAC filings will be performed at least every other year. Cleco Power has FAC filings for January 2018 and thereafter that remain subject to audit. On April 21, 2020, Cleco Power received notice from the LPSC of its filing for Request For Proposals to hire outside consultants to perform the FAC audit for the period of January 2018 to December 2019. The total amount of fuel expense expected to be included in the audit is $565.8 million. Management is unable to predict or give a reasonable estimate of the possible range of the disallowance, if any, related to these filings. Historically, the disallowances have not been material. If a disallowance of fuel cost is ordered resulting in a refund, any such refund could have a material adverse effect on the results of operations, financial condition, or cash flows of the Registrants. Environmental Audit In 2009, the LPSC issued Docket No. U-29380 Subdocket A, which provides Cleco Power an EAC to recover from its customers certain costs of environmental compliance. The costs eligible for recovery are prudently incurred air emissions credits associated with complying with federal, state, and local air emission regulations that apply to the generation of electricity reduced by the sale of such allowances. Also eligible for recovery are variable emission mitigation costs, which are the costs of reagents such as ammonia and limestone that are a part of the fuel mix used to reduce air emissions, among other things. Cleco Power has EAC filings for January 2018 and thereafter that remain subject to audit. On March 11, 2020, Cleco Power received notice from the LPSC of its filing for Request For Proposals to hire outside consultants to perform the EAC audit for the period of January 2018 to December 2019. The total amount of environmental expense expected to be included in the audit is $26.2 million. 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 Mercury and Air Toxics Standards (MATS). In June 2015, the U.S. Supreme Court remanded the MATS rule to the D.C. Circuit Court of Appeals. In December 2015, the D.C. Circuit Court of Appeals remanded the rule to the EPA; however, the D.C. Circuit Court of Appeals did not vacate this rule. In April 2016, the EPA released a final supplemental finding that, even considering costs, it is appropriate and necessary to regulate hazardous air pollutants. By the June 2016 deadline, six petitions were filed with the U.S. Court of Appeals for the D.C. Circuit Court of Appeals for review of the EPA’s findings. At the request of the EPA, in April 2017, the court issued an order holding the cases in abeyance pending the EPA’s review of its supplemental finding. These expenses are also eligible for recovery through Cleco Power’s EAC and are subject to periodic review by the LPSC. FERC Audit Generally, Cleco Power records wholesale transmission revenue through approved formula rates, Attachment O of the MISO tariff and certain grandfathered agreements. The calculation of the rate formulas, as well as FERC accounting and reporting requirements, are subject to periodic audits by FERC. In March 2018, the Division of Audits and Accounting, within the Office of Enforcement of FERC, initiated an audit of Cleco Power for the period of January 1, 2014, through June 30, 2019. On September 27, 2019, Cleco Power received the final audit report, which indicated 12 findings of noncompliance with a combination of FERC accounting and reporting requirements and computation of revenue requirements along with 59 recommendations associated with the audit period. Cleco Power submitted a plan for implementing the audit recommendations on October 28, 2019. Cleco Power also submitted the refund analysis on November 7, 2019, which resulted in an estimated refund of $3.5 million related to the FERC audit findings, pending final assessment by the FERC Division of Audits and Accounting. This amount was recorded in Provision for rate refund on Cleco and Cleco Power’s Condensed Consolidated Balance Sheets at March 31, 2020. Cleco Power anticipates this amount to be refunded to its wholesale transmission customers as a reduction in Attachment O and grandfathered agreement rates over 12 months beginning June 1, 2020. Transmission ROE Two complaints were filed with FERC seeking to reduce the ROE component of the transmission rates that MISO transmission owners, including Cleco, may collect under the MISO tariff. The complaints sought to reduce the 12.38% ROE used in MISO’s transmission rates to a proposed 6.68%. The complaints covered the period December 2013 through May 2016. 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. Cleco Power is unable to determine when a final FERC Order will be issued. As of March 31, 2020, Cleco Power had $1.0 million accrued for the change in the ROE. 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. Beginning January 1, 2020, the collection of the adder is being included in MISO’s transmission rates for a total ROE of 10.38%. South Central Generating In 2017, Louisiana Generating received insurance settlement proceeds for costs incurred to resolve a lawsuit which was brought by the EPA and the LDEQ against Louisiana Generating related to Big Cajun II, Unit 3. Entergy Gulf States, as co-owner of Big Cajun II, Unit 3, is expected to be allocated a portion of the insurance settlement proceeds. Any amount allocated to Entergy Gulf States will be determined by ongoing litigation and negotiations. South Central Generating estimated this amount to be $10.0 million. As part of the Cleco Cajun Transaction, Cleco Cajun assumed the $10.0 million contingent liability and NRG Energy indemnified Cleco for losses associated with this litigation matter. As a result, Cleco also recorded a $10.0 million indemnification asset, which was included in the purchase price allocation. Prior to the Cleco Cajun Transaction, South Central Generating was involved in various litigation matters, including environmental and contract proceedings, before various courts regarding matters arising out of the ordinary course of business. Management is unable to estimate any potential losses that Cleco Cajun may ultimately be responsible for with respect to any one of these matters. 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 March 31, 2020, believes the probable and reasonably estimable liabilities based on the eventual disposition of these matters are $5.1 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 and Evangeline as a result of the transfer of Coughlin to Cleco Power. The maximum amount of the potential payment to Cleco Power, Cleco Holdings, and Evangeline for their respective indemnifications is $40.0 million, except for indemnifications relating to the fundamental organizational structure of each respective entity, of which the maximum amount is $400.0 million. Management does not expect to be required to make any payments under these indemnifications. As part of the Amended Lignite Mining Agreement, Cleco Power and SWEPCO, joint owners of Dolet Hills Power Station, have agreed to pay the loan and lease principal obligations of the lignite miner, DHLC, when due if DHLC does not have sufficient funds or credit to pay. Any amounts paid on behalf of the miner would be credited by the lignite miner against future invoices for lignite delivered. The maximum projected payment by Cleco Power under this guarantee is estimated to be $83.0 million; however, the Amended Lignite Mining Agreement does not contain a cap. The projection is based on the forecasted loan and lease obligations to be incurred by DHLC, primarily for purchases of equipment. Cleco Power has the right to dispute the incurrence of loan and lease obligations through the review of the mining plan before the incurrence of such loan and lease obligations. In April 2020, Cleco Power and SWEPCO mutually agreed to not 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 closure is subject to LPSC review and approval. 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. At March 31, 2020, Cleco Holdings had a $34.5 million letter of credit to MISO pursuant to energy market requirements related to Cleco Cajun’s participation in MISO. The letter of credit automatically renews each year and has no impact on the Cleco Holdings’ 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. Other Commitments Cleco has accrued for liabilities related to third parties, employee medical benefits, and AROs. Risks and Uncertainties Cleco could be subject to possible adverse consequences if Cleco’s counterparties fail to perform their obligations or if Cleco or its affiliates are not in compliance with loan agreements or bond indentures. Access to capital markets is a significant source of funding for both short- and long-term capital requirements not satisfied by operating cash flows. Changes in the regulatory environment or market forces could cause Cleco to determine its assets have suffered an other-than-temporary decline in value, whereby an impairment would be required and Cleco’s financial condition could be materially adversely affected. Cleco Power and Cleco Cajun are participants in the MISO market. Energy prices in the MISO market are based on LMP, which includes a component directly related to congestion on the transmission system. Pricing zones with greater transmission congestion may have higher LMPs. Physical transmission constraints present in the MISO market could increase energy costs within pricing zones. Cleco Power and Cleco Cajun use FTRs to mitigate transmission congestion price risks. Changes to anticipated transmission paths may result in an unexpected increase in energy costs. On March 1, 2019, Cleco Power began to operate Dolet Hills Power Station from June through September of each year; however, Dolet Hills Power Station will continue to be available to operate in other months, if needed. In January 2020, Cleco Power’s joint owner in Dolet Hills Power Station unilaterally entered into a settlement with the Arkansas Public Service Commission to seek regulatory approval to retire the Dolet Hills Power Station by the end of 2026. This settlement does not bind Cleco Power to agree to retire the Dolet Hills Power Station by 2026. In April 2020, Cleco Power and SWEPCO mutually agreed to not 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, subject to LPSC review and approval. Early closure of the mines would most likely result in increased costs billed through fuel, which management currently believes are recoverable. Management does not believe an early closure of the mines would have an adverse impact on the recovery value of the plant. Cleco Power has the ability to secure alternative fuel sources and expects to have sufficient lignite fuel available to continue seasonal operations of the Dolet Hills Power Station through at least the 2020 and 2021 seasonal operations periods. Also in April 2020, Cleco Power announced its intent to seek regulatory approval to retire the Dolet Hills Power Station at the end of 2021, subject to recovery mechanisms. This does not bind Cleco Power to a specific retirement plan and Cleco Power will continue to evaluate the cost of operating the Dolet Hills Power Station compared with other alternatives and decide the best course of action for the Dolet Hills Power Station within the LPSC regulatory requirements and recovery mechanisms. | 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 9th Judicial District Court for Rapides Parish, Louisiana and three actions were filed in the Civil District Court for Orleans Parish, Louisiana. The petitions in each action generally alleged, among other things, that the members of Cleco Corporation’s Board of Directors breached their fiduciary duties by, among other things, conducting an allegedly inadequate sale process, agreeing to the 2016 Merger at a price that allegedly undervalued Cleco, and failing to disclose material information about the 2016 Merger. The petitions also alleged that Cleco Partners, Cleco Corporation, Merger Sub, and in some cases, certain of the investors in Cleco Partners either aided and abetted or entered into a civil conspiracy to advance those supposed breaches of duty. The petitions seek various remedies, including monetary damages, which includes attorneys’ fees and expenses. The four actions filed in the 9th Judicial District Court for Rapides Parish are captioned as follows: • Braunstein v. Cleco Corporation • Moore v. Macquarie Infrastructure and Real Assets, No. 251,417C (filed October 30, 2014), • Trahan v. Williamson • L’Herisson v. Macquarie Infrastructure and Real Assets In November 2014, the plaintiff in the Braunstein The three actions filed in the Civil District Court for Orleans Parish are captioned as follows: • Butler v. Cleco Corporation • Creative Life Services, Inc. v. Cleco Corporation • Cashen v. Cleco Corporation Both the Butler Cashen Creative Life Services Butler Butler Creative Life Services Creative Life Services Butler and Cashen In February 2015, the 9th Judicial District Court for Rapides Parish held a hearing on a motion for preliminary injunction filed by plaintiffs Moore L’Herisson Trahan In March 2016 and May 2016, the plaintiffs filed their Third Consolidated Amended Verified Derivative Petition for Damages and Preliminary and Permanent Injunction and their Fourth Verified Consolidated Amended Class Action Petition, respectively. The fourth petition eliminated the request for preliminary and permanent injunction and also named an additional executive officer as a defendant. Cleco filed exceptions seeking dismissal of the amended Petition. A hearing was held in September 2016 and the District Court granted the exceptions filed by Cleco and dismissed all claims asserted by the former shareholders. The plaintiffs appealed the District Court’s ruling to the Louisiana Third Circuit Court of Appeal. The Third Circuit Court of Appeal heard oral arguments in the case in September 2017. In December 2017, the Third Circuit Court of Appeal issued an order reversing and remanding the case to the District Court for further proceedings. In January 2018, Cleco filed a writ with the Louisiana Supreme Court seeking review of the Third Circuit Court of Appeal’s decision. The writ was denied in March 2018 and the parties are engaged in discovery in the District Court. In November 2018, Cleco filed exceptions of no cause of action and res judicata, seeking to dismiss all claims. The District Court denied the exceptions on January 14, 2019. A hearing on the plaintiff’s request for certification of a class was scheduled for August 26, 2019; however, prior to the hearing, the parties reached an agreement to certify a limited class. Cleco believes that the allegations of the petitions in each action are without merit and that it has substantial meritorious defenses to the claims set forth in each of the petitions. Gulf Coast Spinning In September 2015, a potential customer sued Cleco for failure to fully perform an alleged verbal agreement to lend or otherwise fund its startup costs to the extent of $6.5 million. Gulf Coast Spinning Company, LLC (Gulf Coast), the primary plaintiff, alleges that Cleco promised to assist it in raising approximately $60.0 million, which Gulf Coast needed to construct a cotton spinning facility near Bunkie, Louisiana. According to the petition filed by Gulf Coast in the 12 th Cleco filed an Exception of No Cause of Action arguing that the case should be dismissed. The District Court denied Cleco’s exception in December 2015, after considering briefs and arguments. In January 2016, Cleco appealed the District Court’s denial of its exception by filing with the Third Circuit Court of Appeal. In June 2016, the Third Circuit Court of Appeal denied the request to have the case dismissed. In July 2016, Cleco filed a writ to the Louisiana Supreme Court seeking a review of the District Court’s denial of Cleco’s exception. In November 2016, the Louisiana Supreme Court denied Cleco’s writ application. In February 2016, the parties agreed to a stay of all proceedings pending discussions concerning settlement. In May 2016, the District Court lifted the stay at the request of Gulf Coast. The parties are currently participating in discovery. Cleco believes the allegations of the petition are contradicted by the written documents executed by Gulf Coast, are otherwise without merit, and that it has substantial meritorious defenses to the claims alleged by Gulf Coast. Sabine River Flood In March 2017, Cleco was served with a summons in Perry Bonin, Ace Chandler, and Michael Manuel, et al v. Sabine River Authority of Texas and Sabine River Authority of Louisiana The suit was removed to federal court in Texas. The new federal case is Perry Bonin, et al. v. Sabine River Authority of Texas et al. Bonin Case In March 2018, approximately 26 other individual plaintiffs filed a petition against Cleco Power and other defendants in Larry Addison, et al. v. Sabine River Authority of Texas, et al. Larry Addison, et al. v. Sabine River Authority of Texas, et al Bonin Case Bonin Case Addison Case Bonin Case Dispute with Saulsbury Industries In October 2018, Cleco Power sued Saulsbury Industries, Inc., the former general contractor for the St. Mary Clean Energy Center project, seeking damages for Saulsbury Industries, Inc.’s failure to complete the St. Mary Clean Energy Center project on time and for costs incurred by Cleco Power in hiring a replacement general contractor. The action was filed in the 9th Judicial District Court for Rapides Parish, No. 263339. Saulsbury Industries, Inc. removed the case to the U.S. District Court for the Western District of Louisiana, on March 1, 2019. In January 2019, Cleco Power was served with a summons in Saulsbury Industries, Inc. v. Cabot Corporation and Cleco Power LLC On October 10, 2019, Cleco Power was served with a summons in Saulsbury Industries, Inc. v. Cabot Corporation and Cleco Power LLC LPSC Audits Fuel Audit Generally, Cleco Power’s cost of fuel used for electric generation and the cost of purchased power are recovered through the LPSC-established FAC that enables Cleco Power to pass on to its customers substantially all such charges. Recovery of FAC costs is subject to periodic fuel audits by the LPSC. The LPSC FAC General Order issued in November 1997, in Docket No. U-21497 provides that an audit of FAC filings will be performed at least every other year. In March 2018, Cleco Power received notice of an FAC audit from the LPSC for the period of January 2016, to December 2017. The total amount of fuel expense included in the audit was $536.2 million. In August 2018, the LPSC Staff issued its audit report which recommended no disallowance of fuel costs. On April 26, 2019, the report was approved by the LPSC. Cleco Power has FAC filings for January 2018 and thereafter that remain subject to audit. Management is unable to predict or give a reasonable estimate of the possible range of the disallowance, if any, related to these filings. Historically, the disallowances have not been material. If a disallowance of fuel cost is ordered resulting in a refund, any such refund could have a material adverse effect on the results of operations, financial condition or cash flows of the Registrants. Environmental Audit In 2009, the LPSC issued Docket No. U-29380 Subdocket A, which provides Cleco Power an EAC to recover from its customers certain costs of environmental compliance. The costs eligible for recovery are prudently incurred air emissions credits associated with complying with federal, state, and local air emission regulations that apply to the generation of electricity reduced by the sale of such allowances. Also eligible for recovery are variable emission mitigation costs, which are the costs of reagents such as ammonia and limestone that are a part of the fuel mix used to reduce air emissions, among other things. In May 2018, Cleco Power received notice of an EAC audit from the LPSC for the period of January 2016 to December 2017. The total amount of environmental expense included in this audit was $30.7 million. On July 16, 2019, the LPSC Staff issued its audit report, which recommended no disallowance of environmental costs. On September 11, 2019, the report was approved by the LPSC. Cleco Power has EAC filings for January 2018 and thereafter that remain subject to audit. 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. In June 2015, the U.S. Supreme Court remanded the MATS rule to the D.C. Circuit Court of Appeals. In December 2015, the D.C. Circuit Court of Appeals remanded the rule to the EPA; however, the D.C. Circuit Court of Appeals did not vacate this rule. In April 2016, the EPA released a final supplemental finding that, even considering costs, it is appropriate and necessary to regulate hazardous air pollutants. By the June 2016 deadline, six petitions were filed with the U.S. Court of Appeals for the D.C. Circuit Court of Appeals for review of the EPA’s findings. At the request of the EPA, in April 2017, the court issued an order holding the cases in abeyance pending the EPA’s review of its supplemental finding. These expenses are also eligible for recovery through Cleco Power’s EAC and are subject to periodic review by the LPSC. FERC Audit Generally, Cleco Power records wholesale transmission revenue through approved formula rates. Attachment O of the MISO tariff and certain grandfathered agreements. The calculation of the rate formulas, as well as FERC accounting and reporting requirements, are subject to periodic audits by FERC. In March 2018, the Division of Audits and Accounting, within the Office of Enforcement of FERC, initiated an audit of Cleco Power for the period of January 1, 2014, through June 30, 2019. On September 27, 2019, Cleco Power received the final audit report, which indicated 12 findings of noncompliance with a combination of FERC accounting and reporting requirements and computation of revenue requirements along with 59 recommendations associated with the audit period. Cleco Power submitted a plan for implementing the audit recommendations on October 28, 2019. Cleco Power also submitted the refund analysis on November 7, 2019, which resulted in an estimated refund of $3.5 million related to the FERC audit findings, pending final assessment by the FERC Division of Audits and Accounting. This amount was recorded in Provision for rate refund on Cleco and Cleco Power’s Consolidated Balance Sheets at December 31, 2019. Cleco Power anticipates this amount to be refunded to its wholesale transmission customers as a reduction in Attachment O and grandfathered agreement rates over 12 months beginning June 1, 2020. Transmission ROE Two complaints were filed with FERC seeking to reduce the ROE component of the transmission rates that MISO transmission owners, including Cleco, may collect under the MISO tariff. The complaints sought to reduce the 12.38% ROE used in MISO’s transmission rates to a proposed 6.68%. The complaints covered the period December 2013 through May 2016. 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. Cleco Power is unable to determine when a final FERC Order will be issued. As of December 31, 2019, Cleco Power had $1.0 million accrued for the change in the ROE. 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. Beginning January 1, 2020, the collection of the adder is being included in MISO’s transmission rates for a total ROE of 10.38%. South Central Generating In 2017, Louisiana Generating received insurance settlement proceeds for costs incurred to resolve a lawsuit which was brought by the EPA and the LDEQ against Louisiana Generating related to Big Cajun II, Unit 3. Entergy Gulf States, as co-owner of Big Cajun II, Unit 3, is expected to be allocated a portion of the insurance settlement proceeds. Any amount allocated to Entergy Gulf States will be determined by ongoing litigation and negotiations. South Central Generating estimated this amount to be $10.0 million. As part of the Cleco Cajun Transaction, Cleco Cajun assumed the $10.0 million contingent liability and NRG Energy indemnified Cleco for losses associated with this litigation matter. As a result, Cleco also recorded a $10.0 million indemnification asset, which was included in the purchase price allocation. Prior to the Cleco Cajun Transaction, South Central Generating was involved in various litigation matters, including environmental and contract proceedings, before various courts regarding matters arising out of the ordinary course of business. Management is unable to estimate any potential losses that Cleco Cajun may ultimately be responsible for with respect to any one of these matters. 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, 2019, believes the probable and reasonably estimable liabilities based on the eventual disposition of these matters is $5.0 million and has accrued this amount. Off-Balance Sheet Commitments 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 and Evangeline as a result of the transfer of Coughlin to Cleco Power. The maximum amount of the potential payment to Cleco Power, Cleco Holdings, and Evangeline for their respective indemnifications is $40.0 million, except for indemnifications relating to the fundamental organizational structure of each respective entity, of which the maximum amount is $400.0 million. Management does not expect to be required to make any payments under these indemnifications. As part of the Amended Lignite Mining Agreement, Cleco Power and SWEPCO, joint owners of Dolet Hills Power Station, have agreed to pay the loan and lease principal obligations of the lignite miner, DHLC, when due if DHLC does not have sufficient funds or credit to pay. Any amounts paid on behalf of the miner would be credited by the lignite miner against future invoices for lignite delivered. The maximum projected payment by Cleco Power under this guarantee is estimated to be $86.4 million; however, the Amended Lignite Mining Agreement does not contain a cap. The projection is based on the forecasted loan and lease obligations to be incurred by DHLC, primarily for purchases of equipment. Cleco Power has the right to dispute the incurrence of loan and lease obligations through the review of the mining plan before the incurrence of such loan and lease obligations. The Amended Lignite Mining Agreement is not expected to terminate pursuant to its terms until 2036 and does not affect the amount the Registrants can borrow under their credit facilities. Currently, management does not expect to be required to pay DHLC under this guarantee. At December 31, 2019, Cleco Holdings had a $34.5 million letter of credit to MISO pursuant to energy market requirements related to Cleco Cajun’s participation in MISO. The letter of credit automatically renews each year and has no impact on the Cleco Holdings’ 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, 2019. Cleco Power and Cleco Cajun have several unconditional long-term purchase obligations primarily related to the purchase of petroleum coke, limestone, 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, 2019, is as follows: (THOUSANDS) CLECO POWER CLECO For the year ending Dec. 31, 2020 $ 28,741 $ 89,490 2021 29,832 35,986 2022 18,025 19,311 2023 7,751 8,782 2024 7,740 9,829 Thereafter 13,242 14,474 Total long-term purchase obligations $ 105,331 $ 177,872 Cleco’s payments under these agreements for the years ended December 31, 2019, 2018, and 2017 were $94.8 million, $70.5 million, and $47.0 million, respectively. Cleco Power’s payments under these agreements for the years ended December 31, 2019, 2018, and 2017 were $35.3 million, $60.7 million, and $44.2 million, respectively. Other Cleco has accrued for liabilities related to third parties, employee medical benefits, and AROs. For more information on AROs, see Note 2 — “Summary of Significant Accounting Policies — AROs” and Note 6 — “Regulatory Assets and Liabilities — AROs.” Risks and Uncertainties Cleco could be subject to possible adverse consequences if Cleco’s counterparties fail to perform their obligations or if Cleco or its affiliates are not in compliance with loan agreements or bond indentures. Access to capital markets is a significant source of funding for both short- and long-term capital requirements not satisfied by operating cash flows. Changes in the regulatory environment or market forces could cause Cleco to determine its assets have suffered an other-than-temporary decline in value, whereby an impairment would be required and Cleco’s financial condition could be materially adversely affected. Cleco Power and Cleco Cajun are participants in the MISO market. Energy prices in the MISO market are based on LMP, which includes a component directly related to congestion on the transmission system. Pricing zones with greater transmission congestion may have higher LMPs. Physical transmission constraints present in the MISO market could increase energy costs within pricing zones. Cleco Power and Cleco Cajun use FTRs to mitigate transmission congestion price risks. Changes to anticipated transmission paths may result in an unexpected increase in energy costs. On March 1, 2019, Cleco Power began to operate Dolet Hills Power Station from June through September of each year; however, Dolet Hills Power Station will continue to be available to operate in other months, as needed. Cleco Power will continue to evaluate the cost of operating the Dolet Hills Power Station compared with other alternatives and decide the best course of action for the Dolet Hills Power Station within the LPSC regulatory requirements and recovery mechanism. In January 2020, Cleco Power’s joint owner in Dolet Hills Power Station unilaterally entered into a settlement with the Arkansas Public Service Commission to seek regulatory approval to retire the Dolet Hills Power Station by the end of 2026. While this settlement does not bind Cleco Power to agree to retire the Dolet Hills Power Station by 2026, management is unable to predict the effects an early closure agreement would have on the recovery value of the plant. In addition, Cleco Power and its joint owner are in discussions around their joint venture in the Oxbow mine and their obligations under the associated mining agreement with Dolet Hills Lignite Company. Any early closure of the mine could result in increased costs billed through fuel, which management currently believes are recoverable. |
Affiliate Transactions (FY)
Affiliate Transactions (FY) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Related Party Transactions [Abstract] | ||
Affiliate Transactions | Note 15 — Affiliate Transactions At March 31, 2020, Cleco had an affiliate payable of $33.8 million to Cleco Group primarily for affiliate settlement of taxes payable. Cleco Power has balances that are payable to or due from its affiliates. The following table is a summary of those balances: AT MAR. 31, 2020 AT DEC. 31, 2019 (THOUSANDS) ACCOUNTS RECEIVABLE ACCOUNTS PAYABLE ACCOUNTS RECEIVABLE ACCOUNTS PAYABLE Cleco Holdings $ 10,420 $ 170 $ 10,351 $ 194 Support Group 1,082 10,197 3,172 13,890 Cleco Cajun 535 119 958 39 Total $ 12,037 $ 10,486 $ 14,481 $ 14,123 | 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 is 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 charges only fully loaded costs. All charges and revenues from consolidated affiliates were eliminated in Cleco’s Consolidated Statements of Income for the years ending December 31, 2019, 2018, and 2017. At December 31, 2019, Cleco Holdings had accounts payable of $33.8 million due from Cleco Group primarily for affiliate settlement of taxes payable. At December 31, 2018, Cleco Holdings had no accounts payable due to Cleco Group. For the year ended December 31, , Cleco Holdings made no 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) 2019 2018 2017 Support Group Other operations and maintenance $ 73,090 $ 56,669 $ 50,572 Taxes other than income taxes $ (73 ) $ 6 $ (13 ) Other expense $ 64 $ 290 $ 255 Cleco Holdings Other expense $ — $ 1,007 $ 361 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) 2019 2018 2017 Other operations revenue Cleco Cajun $ 7,471 $ — $ — Affiliate revenue Support Group 3,088 874 851 Cleco Cajun 37 — — Other income Cleco Holdings 149 1,092 494 Total $ 10,745 $ 1,966 $ 1,345 Cleco Power had the following affiliate receivable and payable balances associated with the service agreements: AT DEC. 31, 2019 2018 (THOUSANDS) ACCOUNTS RECEIVABLE ACCOUNTS PAYABLE ACCOUNTS RECEIVABLE ACCOUNTS PAYABLE Cleco Holdings $ 10,351 $ 194 $ 699 $ 88 Support Group 3,172 13,890 2,619 7,755 Cleco Cajun 958 39 — — Total $ 14,481 $ 14,123 $ 3,318 $ 7,843 During 2019, 2018, and 2017, Cleco Power made $20.0 million, $121.4 million, and $135.0 million, respectively, of distribution payments to Cleco Holdings. Cleco Power received no equity contributions from Cleco Holdings in 2019, 2018, and 2017. 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 2019 and 2018: FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2019 2018 Support Group $ 1,316 $ 1,963 Cleco Cajun $ 239 $ — |
Intangible Assets, Intangible L
Intangible Assets, Intangible Liabilities, and Goodwill (FY) | 12 Months Ended |
Dec. 31, 2019 | |
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 includes $176.0 million for the right to bill and collect storm recovery charges from customers of Cleco Power and $1.5 million of financing costs. This intangible asset is expected to be fully amortized in 2020. The intangible asset’s expected amortization expense is based on the estimated collections from Cleco Power’s customers. At the end of its life, the asset will have no residual value. Cleco Katrina/Rita records amortization expense based on actual collections. At the date of the 2016 Merger, the gross balance of the Cleco Katrina/Rita intangible asset for Cleco was adjusted to be net of accumulated amortization, as no accumulated amortization existed at such date. As a result of the 2016 Merger, fair value adjustments were recorded on Cleco’s Consolidated Balance Sheet for the valuation of the Cleco trade name and long-term wholesale power supply agreements. At the end of their life, these intangible assets will have no residual value. The trade name intangible asset is being amortized over its estimated economic useful life of 20 years. The intangible assets related to the power supply agreements are amortized over the remaining life of each applicable contract ranging between 3 years and 15 years and the amortization is included in Electric operations on Cleco’s Consolidated Statements of Income. 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. The fair value of intangible assets of $98.9 million and intangible liabilities of $14.2 million was reflected in the purchase price allocation. At the end of their life, these intangible assets and liabilities will have no residual value. These intangibles are amortized over the remaining life of each applicable contract ranging between two years and eight years. The amortization is included in Electric operations on Cleco’s Consolidated Statement of Income. As part of the Cleco Cajun Transaction, Cleco assumed an LTSA for maintenance services related to the Cottonwood Plant. An intangible liability of $24.1 million was reflected in the purchase price allocation and is being amortized using the straight-line method over the estimated remaining life of the LTSA of seven years. The amortization is included as a reduction to the LTSA prepayments on Cleco’s 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) 2019 2018 2017 Intangible assets Cleco Katrina/Rita right to bill and collect storm recover charges $ 20,576 $ 20,608 $ 16,772 Trade name $ 255 $ 255 $ 255 Power supply agreements $ 24,273 $ 9,680 $ 10,757 Intangible liabilities LTSA $ 3,194 $ — $ — Power supply agreements $ 3,234 $ — $ — No impairments for intangibles in the table above for 2019, 2018, and 2017. Cleco Power FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2019 2018 2017 Cleco Katrina/Rita right to bill and collect storm recovery charges $ 20,576 $ 20,608 $ 16,772 The following tables summarize the balances for intangible assets and liabilities subject to amortization for Cleco and Cleco Power: Cleco AT DEC. 31, (THOUSANDS) 2019 2018 Intangible assets Cleco Katrina/Rita right to bill and collect storm recovery charges $ 70,594 $ 70,594 Trade name 5,100 5,100 Power supply agreements 184,004 85,104 Total intangible assets carrying amount 259,698 160,798 Intangible liabilities LTSA 24,100 — Power supply agreements 14,200 — Total intangible liabilities carrying amount 38,300 — Net intangible assets carrying amount 221,398 160,798 Accumulated amortization (115,167 ) (76,491 ) Net intangible assets subject to amortization $ 106,231 $ 84,307 Cleco Power AT DEC. 31, (THOUSANDS) 2019 2018 Cleco Katrina/Rita right to bill and collect storm recovery charges $ 177,537 $ 177,537 Accumulated amortization (177,020 ) (156,444 ) Net intangible assets subject to amortization $ 517 $ 21,093 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, 2020 $ 26,372 $ (7,012 ) 2021 $ 25,855 $ (5,862 ) 2022 $ 25,855 $ (5,041 ) 2023 $ 25,855 $ ( 5,041 ) 2024 $ 29,459 $ (5,041 ) Thereafter $ 4,707 $ (3,875 ) Cleco Power expects to recognize $0.5 million of amortization expense related to intangible assets on its Consolidated Statement of Income in 2020. 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 segment. Goodwill is required to be tested for impairment at the reporting segment level on an annual basis and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting segment below its carrying value. Application of the goodwill impairment test requires significant judgments, including the identification of reporting segments, assignments of assets and liabilities to reporting segments, assignment of goodwill to reporting segments, and the determination of the fair value of the reporting segments. Cleco conducted its 2019 annual impairment test using an August 1, 2019, measurement date. The fair value of the Cleco Power reporting segment was estimated using a weighted combination of the income approach, which estimates fair value based on discounted cash flows, and the market approach, which estimates fair value based on market comparables within the utility and energy industries. Significant assumptions used in these fair value estimates include estimation of future cash flows related to capital expenditures, long-term rate of growth, and weighted-average cost of capital or discount rate. Changes in these assumptions could materially affect the determination of fair value and goodwill impairment at Cleco Power. Based on the tests performed, management has determined that there was no impairment of Cleco Power’s goodwill for 2019. Management estimated the fair value of Cleco Power’s equity to be $3.97 billion at the August 1, 2019, measurement date. The carrying value of Cleco Power’s equity was approximately $3.40 billion with the excess of the fair value over the carrying value representing 16.8% or $570.4 million. There were no accumulated impairment charges. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss (FY) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Equity [Abstract] | ||
Accumulated Other Comprehensive Loss | Note 17 — Accumulated Other Comprehensive Loss The components of accumulated other comprehensive loss are summarized in the following tables for Cleco and Cleco Power. All amounts are reported net of income taxes. Amounts in parentheses indicate debits. Cleco FOR THE THREE MONTHS ENDED MAR. 31, 2020 (THOUSANDS) POSTRETIREMENT BENEFIT NET LOSS Balances, beginning of period $ (17,513 ) Amounts reclassified from AOCI Amortization of postretirement benefit net gain 414 Balances, Mar. 31, 2020 $ (17,099 ) FOR THE THREE MONTHS ENDED MAR. 31, 2019 (THOUSANDS) POSTRETIREMENT BENEFIT NET GAIN Balances, beginning of period $ 1,786 Amounts reclassified from AOCI Amortization of postretirement benefit net loss (135 ) Balances, Mar. 31, 2019 $ 1,651 Cleco Power FOR THE THREE MONTHS ENDED MAR. 31, 2020 (THOUSANDS) POSTRETIREMENT NET LOSS ON CASH TOTAL AOCI Balances, beginning of period $ (16,717 ) $ (5,868 ) $ (22,585 ) Amounts reclassified from AOCI Amortization of postretirement benefit net loss 426 — 426 Reclassification of net loss to interest charges — 64 64 Balances, Mar. 31, 2020 $ (16,291 ) $ (5,804 ) $ (22,095 ) FOR THE THREE MONTHS ENDED MAR. 31, 2019 (THOUSANDS) POSTRETIREMENT NET LOSS ON CASH FLOW TOTAL AOCI Balances, beginning of period $ (7,060 ) $ (6,122 ) $ (13,182 ) Amounts reclassified from AOCI Amortization of postretirement benefit net loss 156 — 156 Reclassification of net loss to interest charges — 64 64 Balances, Mar. 31, 2019 $ (6,904 ) $ (6,058 ) $ (12,962 ) | 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, 2016 $ 1,500 Other comprehensive income before reclassifications Postretirement benefit adjustments incurred during the year (3,898 ) Amounts reclassified from accumulated other comprehensive income Amortization of postretirement benefit net gain (523 ) Balances, Dec. 31, 2017 $ (2,921 ) Other comprehensive income before reclassifications Postretirement benefit adjustments incurred during the year 3,681 Amounts reclassified from accumulated other comprehensive income Amortization of postretirement benefit net loss 1,615 Reclassification of effect of tax rate change (589 ) 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 loss (422 ) Balances, Dec. 31, 2019 $ (17,513 ) Cleco Power (THOUSANDS) POSTRETIREMENT BENEFIT NET (LOSS) GAIN NET (LOSS) GAIN ON CASH FLOW HEDGES TOTAL AOCI Balances, Dec. 31, 2016 $ (7,905 ) $ (5,517 ) $ (13,422 ) Other comprehensive loss before reclassifications Postretirement benefit adjustments incurred during the year (948 ) — (948 ) Amounts reclassified from accumulated other comprehensive loss Amortization of postretirement benefit net loss 476 — 476 Reclassification of net loss to interest charges — 211 211 Balances, Dec. 31, 2017 $ (8,377 ) $ (5,306 ) $ (13,683 ) Other comprehensive loss before reclassifications Postretirement benefit adjustments incurred during the year 954 — 954 Amounts reclassified from accumulated other comprehensive loss Amortization of postretirement benefit net loss 1,789 — 1,789 Reclassification of net loss to interest charges — 254 254 Reclassification of effect of tax rate change (1,426 ) (1,070 ) (2,496 ) 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 gain to interest charges — 254 254 Balances, Dec. 31, 2019 $ (16,717 ) $ (5,868 ) $ (22,585 ) |
Miscellaneous Financial Informa
Miscellaneous Financial Information (Unaudited) (FY) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Miscellaneous Financial Information (Unaudited) | Note 19 — Miscellaneous Financial Information (Unaudited) Cleco Quarterly information for Cleco for 2019 and 2018 is shown in the following tables: 2019 (THOUSANDS) 1ST QUARTER 2ND QUARTER 3RD QUARTER 4TH QUARTER Operating revenue, net $ 344,186 $ 397,873 $ 487,971 $ 409,575 Operating income $ 50,586 $ 87,196 $ 101,539 $ 75,573 Net income $ 20,557 $ 44,746 $ 55,565 $ 31,797 2018 (THOUSANDS) 1ST QUARTER 2ND QUARTER 3RD QUARTER 4TH QUARTER Operating revenue, net $ 276,760 $ 299,261 $ 358,256 $ 296,767 Operating income $ 44,734 $ 63,709 $ 86,110 $ 50,004 Net income $ 10,861 $ 25,839 $ 47,360 $ 10,377 Distributions to member $ 19,500 $ 20,400 $ 20,600 $ 10,850 Cleco Power Quarterly information for Cleco Power for 2019 and 2018 is shown in the following tables: 2019 (THOUSANDS) 1ST QUARTER 2ND QUARTER 3RD QUARTER 4TH QUARTER Operating revenue, net $ 268,745 $ 272,972 $ 344,977 $ 281,676 Operating income $ 44,905 $ 75,446 $ 78,132 $ 49,985 Net income $ 26,712 $ 49,356 $ 51,527 $ 20,667 Distributions to member $ — $ — $ — $ 20,000 2018 (THOUSANDS) 1ST QUARTER 2ND QUARTER 3RD QUARTER 4TH QUARTER Operating revenue, net $ 279,387 $ 301,901 $ 360,899 $ 299,409 Operating income $ 50,521 $ 72,602 $ 96,063 $ 59,786 Net income $ 26,004 $ 43,020 $ 63,336 $ 29,897 Distributions to member $ 28,000 $ 43,000 $ 50,400 $ — |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Q1) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Accounting Policies [Abstract] | ||
Summary of Significant Accounting Policies | Note 1 — Summary of Significant Accounting Policies Principles of Consolidation The accompanying condensed consolidated financial statements of Cleco include the accounts of Cleco and its majority-owned subsidiaries after elimination of intercompany accounts and transactions. Cleco’s condensed consolidated financial statements include the financial results of Cleco Cajun from the closing of the Cleco Cajun Transaction on February 4, 2019, through March 31, 2020. For more information about the Cleco Cajun Transaction, see Note 2 — “Business Combinations.” Basis of Presentation The condensed consolidated financial statements of Cleco and Cleco Power have been prepared in accordance with GAAP for interim financial information and with the instructions to the Form 10-Q and Regulation S-X. Accordingly, these condensed consolidated financial statements do not include all of the information and notes required by GAAP for annual financial statements. The year-end condensed consolidated balance sheet data was derived from audited financial statements. Because the interim condensed consolidated financial statements and the accompanying notes do not include all of the information and notes required by GAAP for annual financial statements, the condensed consolidated financial statements and other information included in this Quarterly Report on Form 10-Q should be read in conjunction with the consolidated financial statements and accompanying notes in the Registrants’ Combined Annual Report on Form 10-K for the fiscal year ended December 31, 2019. These condensed consolidated financial statements, in the opinion of management, reflect all normal recurring adjustments that are necessary to fairly state the financial position and results of operations of Cleco and Cleco Power. Amounts reported in Cleco and Cleco Power’s interim financial statements are not necessarily indicative of amounts expected for the annual periods due to the effects of seasonal temperature variations on energy consumption, regulatory rulings, the timing of maintenance on electric generating units, changes in mark-to-market valuations, changing commodity prices, discrete income tax items, and other factors. On March 11, 2020, the World Health Organization declared the current outbreak of COVID-19 to be a global pandemic, and on March 13, 2020, the U.S. declared a national emergency. In response to these declarations and the rapid spread of COVID-19, federal, state and local governments have 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. Cleco has modified some of its business operations, as these restrictions have significantly impacted many sectors of the economy, including record levels of unemployment, with businesses, nonprofit organizations, and governmental entities modifying, curtailing, or ceasing normal operations. Cleco has also modified certain business practices to conform to government restrictions and best practices encouraged by the Centers for Disease Control and Prevention, the World Health Organization, and other governmental and regulatory authorities. 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 at this time, due to numerous uncertainties. 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 development of effective treatments, the duration of the outbreak, 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. In preparing financial statements that conform to GAAP, management must make estimates and assumptions that affect the reported amounts of assets and liabilities, the reported amounts of revenues and expenses, and the disclosure of contingent assets and liabilities at the date of the financial statements. Actual results could differ from those estimates. For information on recent authoritative guidance and its effect on financial results, see Note 3 — “Recent Authoritative Guidance.” Restricted Cash and Cash Equivalents Various agreements to which Cleco is subject contain covenants that restrict its use of cash. As certain provisions under these agreements are met, cash is transferred out of related escrow accounts and becomes available for its intended purposes and/or general corporate purposes. Cleco and Cleco Power’s restricted cash and cash equivalents consisted of the following: Cleco (THOUSANDS) AT MAR. 31, 2020 AT DEC. 31, 2019 Current Cleco Katrina/Rita’s storm recovery bonds $ 2,623 $ 9,632 Cleco Power’s charitable contributions 1,200 1,200 Cleco Power’s rate credit escrow 231 268 Total current 4,054 11,100 Non-current Diversified Lands’ mitigation escrow 23 21 Cleco Cajun’s defense fund 720 719 Cleco Cajun’s margin deposits 100 100 Cleco Power’s future storm restoration costs 8,315 12,269 Cleco Power’s charitable contributions 741 2,094 Total non-current 9,899 15,203 Total restricted cash and cash equivalents $ 13,953 $ 26,303 Cleco Power (THOUSANDS) AT MAR. 31, 2020 AT DEC. 31, 2019 Current Cleco Katrina/Rita’s storm recovery bonds $ 2,623 $ 9,632 Charitable contributions 1,200 1,200 Rate credit escrow 231 268 Total current 4,054 11,100 Non-current Future storm restoration costs 8,315 12,269 Charitable contributions 741 2,094 Total non-current 9,056 14,363 Total restricted cash and cash equivalents $ 13,110 $ 25,463 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 storm recovery bonds. The change from December 31, 2019, to March 31, 2020, was due to Cleco Katrina/Rita using $11.1 million for the final storm recovery bond principal payment and $0.3 million for the related final interest payment, partially offset by collections of $4.4 million net of administration fees. The remaining $2.6 million of restricted cash is expected to be used for final administrative and winding up activities of Cleco Katrina/Rita. 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. While the LPSC has issued a moratorium on disconnects of customers for nonpayment on March 13, 2020, and Cleco’s service territory experienced a recent decline in the economy related to the COVID-19 outbreak, the economic outlook at March 31, 2020, was still within range of Cleco’s 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 RECEIVABLE OTHERS * TOTAL Balances, Dec. 31, 2019 $ 3,005 $ 1,250 $ 4,255 CECL adoption 71 — 71 Current period provision 2,498 388 2,886 Charge-offs (4,092 ) — (4,092 ) Recovery 641 — 641 Balances, Mar. 31, 2020 $ 2,123 $ 1,638 $ 3,761 * Cleco Power (THOUSANDS) ACCOUNTS RECEIVABLE Balances, Dec. 31, 2019 $ 3,005 CECL adoption 71 Current period provision 2,498 Charge-offs (4,092 ) Recovery 641 Balances, Mar. 31, 2020 $ 2,123 Fair Value Measurements and Disclosures Various accounting pronouncements require certain assets and liabilities to be measured at their fair values. Some assets and liabilities are required to be measured at their fair value each reporting period, while others are required to be measured only one time, generally the date of acquisition or debt issuance. Cleco and Cleco Power disclose the fair value of certain assets and liabilities by one of three levels when required for recognition purposes. For more information about fair value levels, see Note 7 — “Fair Value Accounting.” Derivatives and Other Risk Management Activity Cleco’s Energy Market Risk Management Policy authorizes hedging of commodity price risk with physical or financially settled derivative instruments. Some of these contracts may qualify for the normal purchase, normal sale (NPNS) exception under derivative accounting guidance. Contracts that do not qualify for NPNS accounting treatment or are not elected for NPNS accounting treatment are marked-to-market and recorded on the balance sheet at their fair value. Additionally, Cleco Power and Cleco Cajun are awarded and/or purchase FTRs in auctions facilitated by MISO. FTRs represent economic hedges of future congestion charges that will be incurred in serving customer load. FTRs are derivatives not designated as hedging instruments for accounting purposes. Cleco Power’s FTRs are marked-to-market with the resulting unrealized gains or losses deferred as a component of deferred fuel assets or liabilities in accordance with regulatory policy. At settlement, realized gains or losses are included in the FAC and reflected on customers’ bills as a component of the fuel charge. Cleco Cajun’s FTRs are marked-to-market with the resulting unrealized gains and losses recorded on the income statement as a component of purchased power expense. At settlement, realized gains or losses are also recorded on the income statement as a component of purchased power expense. Cleco Cajun entered into other commodity derivative contracts during the three months ended March 31, 2020. 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 for gas related derivative contracts or purchased power for power related derivative contracts. At settlement, realized gains or losses are also recorded on the income statement as a component of fuel expense for gas related derivative contracts or purchased power for power related derivative contracts. For more information on FTRs and other commodity derivatives, see Note 7 — “Fair Value Accounting — Commodity Contracts.” Cleco may also enter into contracts to mitigate the volatility in interest rate risk. These contracts include, but are not limited to, interest rate swaps and treasury rate locks. For each reporting period presented, the Registrants did not enter into any contracts to mitigate the volatility in interest rate risk. | 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, 2019. 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 annually 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 Intangible assets include Cleco Katrina/Rita’s right to bill and collect storm recovery charges, fair value adjustments for long-term wholesale power supply agreements as well as a fair value adjustment for the valuation of the Cleco trade name. Intangible liabilities also include fair value adjustments for long-term wholesale power supply agreements and a fair value adjustment for the LTSA assumed for maintenance services related to the Cottonwood Plant. The 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. Impairment will be 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 will be 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 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 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 through the ratemaking process. Regulatory assets and liabilities are amortized consistent with the treatment of the related cost in the ratemaking process. Pursuant to this regulatory approval, 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. As part of the Cleco Cajun Transaction, Cleco recognized $15.3 million of AROs primarily related to the retirement of Cleco Cajun’s ash management areas. At December 31, 2019, management’s analysis confirmed that no additional adjustments were needed to update Cleco or Cleco Power’s ARO balance. For more information on Cleco Power’s current AROs, see Note 6 — “Regulatory Assets and Liabilities — AROs.” 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, 2019, and 2018 were $168.6 million and $7.2 million, respectively. The amounts of unamortized computer software costs on Cleco Power’s Consolidated Balance Sheets at December 31, 2019, and 2018 were $166.2 million and $5.8 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, 2019, 2018, and 2017 is shown in the following tables: Cleco FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2019 2018 2017 Amortization $ 4,917 $ 2,154 $ 2,367 Cleco Power FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2019 2018 2017 Amortization $ 4,321 $ 1,607 $ 1,887 Upon retirement or disposition, the cost of Cleco Power and Cleco Cajun’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 6 – 95 10 – 95 Distribution 15 – 50 15 – 50 Transmission 5 – 55 5 – 55 Other utility plant 2 – 45 5 – 45 Other property, plant, and equipment 5 – 45 5 – 45 At December 31, 2019, and 2018, Cleco and Cleco Power’s property, plant, and equipment consisted of the following: Cleco AT DEC. 31, (THOUSANDS) 2019 2018 Utility plants Generation $ 2,812,843 $ 1,949,042 Distribution 1,153,086 1,081,650 Transmission 660,279 519,269 Other utility plant 350,683 174,010 Other property, plant, and equipment 5,364 4,506 Total property, plant, and equipment 4,982,255 3,728,477 Accumulated depreciation (454,874 ) (303,727 ) Net property, plant, and equipment $ 4,527,381 $ 3,424,750 Cleco Power AT DEC. 31, (THOUSANDS) 2019 2018 Regulated utility plants Generation $ 2,633,590 $ 2,476,733 Distribution 1,593,104 1,523,885 Transmission 805,701 731,432 Other utility plant 457,062 282,954 Total property, plant, and equipment 5,489,457 5,015,004 Accumulated depreciation (1,905,031 ) (1,804,563 ) Net property, plant, and equipment $ 3,584,426 $ 3,210,441 On February 4, 2019, Cleco acquired $741.2 million of unregulated property, plant, and equipment as a result of the Cleco Cajun Transaction. These assets were recorded at fair market value at the date of the acquisition. For more information on the Cleco Cajun Transaction, see Note 3 — “Business Combinations.” During 2019, Cleco Power’s regulated utility property, plant, and equipment increased primarily due to the in-service of the START project, St. Mary Clean Energy Center project, Terrebonne to Bayou Vista Transmission project, Coughlin Pipeline project, and general installation and rehabilitation of transmission, distribution, and generation assets. 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, 2019, and 2018, Cleco Power had deferred $1.4 million, 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 Fuel inventory consists primarily of petroleum coke, coal, limestone, lignite, and natural gas used to generate electricity. 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. Both fuel inventory and materials and supplies are recorded at the lower of cost or market value using the average cost method and are issued from stock using the average cost of existing stock. Materials and supplies are recorded when purchased and subsequently charged to expense or capitalized to property, plant, and equipment when installed. Accounts Receivable Accounts receivable are recorded at the invoiced amount and do not bear interest. It is the policy of management to review the outstanding accounts receivable monthly, as well as the bad debt write-offs experienced in the past, and establish an allowance for doubtful accounts. Account balances are charged off against the allowance when management determines it is probable the receivable will not be recovered. 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 funded 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, 2019, and 2018, the general liability and workers compensation reserves together were $4.3 million and $4.8 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. 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. Cleco and Cleco Power’s restricted cash and cash equivalents consisted of: Cleco AT DEC. 31, (THOUSANDS) 2019 2018 Current Cleco Katrina/Rita’s storm recovery bonds $ 9,632 $ 9,505 Cleco Power’s charitable contributions 1,200 1,200 Cleco Power’s rate credit escrow 268 536 Total current 11,100 11,241 Non-current Diversified Lands’ mitigation escrow 21 21 Cleco Cajun’s defense fund 719 — Cleco Cajun’s margin deposits 100 — Cleco Power’s future storm restoration costs 12,269 15,391 Cleco Power’s charitable contributions 2,094 2,753 Cleco Power’s rate credit escrow — 505 Total non-current 15,203 18,670 Total restricted cash and cash equivalents $ 26,303 $ 29,911 Cleco Power AT DEC. 31, (THOUSANDS) 2019 2018 Current Cleco Katrina/Rita’s storm recovery bonds $ 9,632 $ 9,505 Charitable contributions 1,200 1,200 Rate credit escrow 268 536 Total current 11,100 11,241 Non-current Future storm restoration costs 12,269 15,391 Charitable contributions 2,094 2,753 Rate credit escrow — 505 Total non-current 14,363 18,649 Total restricted cash and cash equivalents $ 25,463 $ 29,890 Cleco Katrina/Rita has the right to bill and collect storm restoration costs from Cleco Power’s customers. As cash is collected, it is restricted for payment of administration fees, interest, and principal on storm recovery bonds. During 2019, Cleco Katrina/Rita collected $22.2 million net of administration fees and remitted $20.6 million for scheduled storm recovery bond principal payments and $1.5 million for related interest payments. As part of the Cleco Cajun Transaction, Cleco acquired restricted cash of $0.7 million to be used by Cleco Cajun’s cooperative customers for defense funds in the event of potential takeovers. There is no further obligation of Cleco with respect to such expenses, including the replenishment of the fund. 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 probable. There were no impairments recorded for 2019, 2018, or 2017. For more information on Cleco’s equity investments, see Note 14 — “Variable Interest Entities.” 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. Excise 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/Excise 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 and Cleco Power’s Consolidated Statements of Income but are reflected at gross amounts on Cleco and Cleco Power’s Consolidated Balance Sheets as a receivable until the tax is collected and as a payable until the liability is paid. Cleco currently does not have any excise taxes 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. The composite AFUDC rate, including borrowed and other funds, was 10.71% on a pretax basis (8.37% net of tax) for 2019, 9.58% on a pretax basis (7.08% net of tax) for 2018, and 11.07% on a pretax basis (6.81% net of tax) for 2017. 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.” Derivatives and Other Risk Management Activity Cleco’s Energy Market Risk Management Policy authorizes hedging of commodity price risk with physical or financially settled derivative instruments. Some of these contracts may qualify for the normal purchase, normal sale (NPNS) exception under derivative accounting guidance. Contracts that do not qualify for NPNS accounting treatment or are not elected for NPNS accounting treatment are marked-to-market and recorded on the balance sheet at their fair value. Cleco Power and Cleco Cajun are awarded and/or purchase FTRs in auctions facilitated by MISO. The majority of these FTRs are purchased in annual auctions during the second quarter, but additional FTRs may be purchased in monthly auctions. FTRs represent economic hedges of future congestion charges that will be incurred in serving customer load. FTRs are derivatives not designated as hedging instruments for accounting purposes. Cleco Power’s FTRs are marked-to-market with the resulting unrealized gains or losses deferred as a component of deferred fuel assets or liabilities in accordance with regulatory policy. At settlement, realized gains or losses are included in the FAC and reflected on customers’ bills as a component of the fuel charge. Cleco Cajun’s FTRs are marked-to-market with the resulting unrealized gains and losses recorded on the income statement as a component of purchased power expense. At settlement, realized gains or losses are also recorded on the income statement as a component of purchased power expense. Cleco Cajun entered into other commodity derivative contracts during 2019. 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 — 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 accounts for leases in accordance with accounting guidance effective January 1, 2019. For more information on this guidance, see — “Recent Authoritative Guidance.” Cleco determines if a contract is a lease at its inception. If a contract is determined to be a lease, Cleco recognizes a ROU asset and lease liability at the commencement date based on the present value of lease payments over the lease term. The present value of the lease payments is determined by using the implicit interest rate if readily determinable. Cleco’s incremental borrowing rate for a term similar to the duration of the lease based on information available at the commencement date is used if the implicit interest rate is not readily determinable. Cleco recognizes ROU assets and lease liabilities for leasing arrangements with terms greater than one year. Except for the marine transportation asset class, Cleco accounts for lease and non-lease components in a contract as a single lease component for all classes of underlying assets. Cleco’s marine transportation contracts, which include barges and towboats, contain non-lease components, such as maintenance and labor. Cleco allocates the consideration in these contracts between lease and non-lease components based on estimates of fair value from third parties that typically execute leases for this class of assets. Expense for a lessee operating lease is recognized as a single lease cost on a straight-line basis over the lease term and reflected in the appropriate income statement line item based on the leased asset’s function. Income for a lessor operating lease is recognized as a single lease income item on a straight-line basis over the lease term and reflected in the appropriate income statement line item based on the lease asset’s function. Recent Authoritative Guidance In February 2016, FASB amended the guidance to account for leases. Effective January 1, 2019, Cleco adopted the amended guidance using the optional transition method that allows an entity to recognize a cumulative-effect adjustment to the opening balance of retained earnings at the date of adoption, apply the new disclosure requirements beginning in the period of adoption, and continue to present comparative period information as required under previous guidance. In addition, Cleco elected the transition practical expedient that permits an entity to not reassess prior conclusions about lease identification, lease classification, and initial direct costs under the new standard, as well as the practical expedient that permits entities to not assess existing land easements under the new standard. Adoption of this standard resulted in the recognition of ROU assets and lease liabilities for Cleco and Cleco Power’s operating leases of $16.1 million and $15.9 million, respectively. There was no impact to retained earnings as a result of adopting this standard. Adoption of this standard did not materially impact the Registrants’ results of operations or liquidity, and their accounting for finance leases is substantially unchanged. For more information on Cleco’s lease obligations, see Note 4 — “Leases.” In June 2016, FASB amended the guidance for the measurement of credit losses on receivables and certain other assets. The guidance requires use of a current expected loss model, which may result in earlier recognition of credit losses. The adoption of this guidance is effective for fiscal years beginning after December 15, 2019, including interim periods within those years. Management does not expect this guidance to have a significant impact on the results of operations, financial condition, or cash flows of the Registrants. In August 2018, FASB issued guidance that allows for the deferral of certain implementation costs incurred in a cloud computing arrangement. The adoption of this guidance is effective for annual reporting periods beginning after December 15, 2019, including interim periods within those years. Early adoption is permitted. Management does not expect this guidance to have significant impact on the results of operations, financial condition, or cash flows of the Registrants. |
Business Combinations (Q1)
Business Combinations (Q1) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Business Combinations [Abstract] | ||
Business Combinations | Note 2 — 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. Accounting for the Cleco Cajun Transaction As consideration for all of the outstanding membership interest in South Central Generating, Cleco paid cash of approximately $962.2 million, which represents the $1.0 billion acquisition price net of working capital and other adjustments of $37.8 million. 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) AT FEB. 4, 2019 Current assets Cash and cash equivalents $ 146,494 Customer and other accounts receivable 49,809 Fuel inventory 22,060 Materials and supplies 25,659 Energy risk management assets 4,193 Other current assets 10,056 Non-current assets Property, plant, and equipment, net 741,203 Prepayments 36,166 Restricted cash and cash equivalents 707 Intangible assets 98,900 Other deferred charges 133 Total assets acquired 1,135,380 Current liabilities Accounts payable 38,478 Taxes payable 723 Energy risk management liabilities 241 Other current liabilities 14,570 Non-current liabilities Accumulated deferred federal and state income taxes, net 7,165 Deferred lease revenue 58,300 Intangible liabilities 38,300 Asset retirement obligations 15,323 Operating lease liabilities 110 Total liabilities assumed 173,210 Total purchase price consideration $ 962,170 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 three months ended March 31, 2020. Pro forma Impact of the Cleco Cajun Transaction The following table includes the unaudited pro forma financial information reflecting the consolidated results of operations of Cleco as if the Cleco Cajun Transaction had taken place on January 1, 2018. The pro forma net income for the three months ended March 31, 2019, was adjusted to exclude nonrecurring transaction-related expenses of $3.9 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 date indicated, or the future consolidated results of operations of the combined companies. Unaudited Pro Forma Financial Information (THOUSANDS) FOR THE THREE MONTHS ENDED MAR. 31, 2019 Operating revenue, net $ 381,796 Net income $ 32,986 | 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. As a result, Cleco Cajun owns: • a 176-MW natural-gas-fired generating station located in Sterlington, Louisiana, • a 220-MW natural-gas-fired facility and a 210-MW natural-gas-fired peaking facility, both located in Jarreau, Louisiana, • a 580-MW coal-fired generating facility, a 540-MW natural-gas-fired generating station, and 58% of a 588-MW coal-fired generating station all located in New Roads, Louisiana, • 225 MW of a 300-MW natural-gas-fired peaking facility located in Jennings, Louisiana, • a 1,263-MW natural-gas-fired generating station located in Deweyville, Texas (the Cottonwood Plant), • wholesale contracts to provide electricity and capacity to nine Louisiana cooperatives, three municipalities across Arkansas, Louisiana, and Texas, and one investor-owned utility, • transmission assets, which consist of equipment and land required to connect the generation stations and the wholesale customers to the transmission grid, and • current assets consisting of cash, inventory, receivables and other miscellaneous assets. Cleco Cajun, NRG Energy, and South Central Generating each made customary representations, warranties and covenants in the Cleco Cajun Transaction, which include customary indemnification provisions. Cleco Holdings has agreed to guarantee the obligations of Cleco Cajun, subject to certain limitations. In addition, a lease agreement was executed and delivered between Cottonwood Energy and a special-purpose entity that is a subsidiary of NRG Energy pursuant to which NRG Energy will lease back the Cottonwood Plant and will operate it no later than May 2025. Upon closing, Cottonwood Energy became a subsidiary of Cleco Cajun. Regulatory Matters In January 2019, the LPSC approved the Cleco Cajun Transaction. Approval of the transaction was conditioned upon certain commitments, including holding Cleco Power ratepayers harmless for any adverse impacts, increased costs of debt or equity, and credit rating downgrades attributable to the Cleco Cajun Transaction; the repayment of $400.0 million of Cleco Holdings’ debt by 2024; and a $4.0 million annual reduction to Cleco Power’s retail customer rates. For more information about the debt and rate reduction commitments, see Note 9 — “Debt” and Note 6 — “Regulatory Assets and Liabilities,” respectively. South Central Generating In 2017, Louisiana Generating received insurance settlement proceeds for costs incurred to resolve a lawsuit which was brought by the EPA and the LDEQ against Louisiana Generating related to Big Cajun II, Unit 3. Entergy Gulf States, as co-owner of Big Cajun II, Unit 3, is expected to be allocated a portion of the insurance settlement proceeds. Any amount allocated to Entergy Gulf States will be determined by ongoing litigation and negotiations. South Central Generating estimated this amount to be $10.0 million. As part of the Cleco Cajun Transaction, Cleco Cajun assumed the $10.0 million contingent liability and NRG Energy indemnified Cleco for losses associated with this litigation matter. As a result, Cleco also recorded a $10.0 million indemnification asset, which was included in the purchase price allocation. Prior to the Cleco Cajun Transaction, South Central Generating was involved in various litigation matters, including environmental and contract proceedings, before various courts regarding matters arising out of the ordinary course of business. Management is unable to estimate any potential losses that Cleco Cajun may ultimately be responsible for with respect to any one of these matters. As part of the Cleco Cajun Transaction, NRG Energy indemnified Cleco for losses, as of the closing date, associated with matters that existed as of the closing date, including pending litigation. Accounting for the Cleco Cajun Transaction As consideration for all of the outstanding membership interest in South Central Generating, Cleco paid cash of approximately $962.2 million, which represents the $1.0 billion acquisition price net of working capital and other adjustments of $37.8 million. In connection with the Cleco Cajun Transaction on February 4, 2019, Cleco Holdings borrowed $300.0 million under a bridge loan agreement and $100.0 million under a term loan agreement. Both loan agreements are variable rate debt and have a three-year term. Both loan agreements contain certain financial covenants, including requiring Cleco Holdings to maintain (i) a debt to capital ratio (as defined in the applicable agreement) below 65% and (ii) a rating applicable to Cleco’s senior debt rating (as defined in the applicable agreement). On September 11, 2019, Cleco Holdings refinanced the remaining amounts due under the $300.0 million bridge loan agreement and a portion of the $100.0 million term loan agreement with the proceeds from the private placement of $300.0 million aggregate principal amount of senior notes. For more information, see Note 9 — “Debt.” Also, in connection with the Cleco Cajun Transaction, Cleco Holdings increased its credit facility capacity by $75.0 million, for a total capacity of $175.0 million. All other terms remained the same. Also in connection with the Cleco Cajun Transaction on February 4, 2019, Cleco Holdings made a $75.0 million draw on its credit facility, which was repaid on February 5, 2019. The remaining cash required to finance the transaction consisted of an equity contribution from Cleco Group of $384.9 million and $102.3 million from cash on hand at Cleco Holdings. Cleco Cajun accounted for the Cleco Cajun Transaction as a business combination, and accordingly, the assets acquired and liabilities assumed were recorded at their estimated fair values as of the date of the acquisition. Cleco made certain measurement period adjustments at June 30, 2019. The following chart presents Cleco’s current purchase price allocation: Purchase Price Allocation (THOUSANDS) AT FEB. 4, 2019 Current assets Cash and cash equivalents $ 146,494 Customer and other accounts receivable 49,809 Fuel inventory 22,060 Materials and supplies 25,659 Energy risk management assets 4,193 Other current assets 10,056 Non-current assets Property, plant, and equipment, net 741,203 Prepayments 36,166 Restricted cash and cash equivalents 707 Intangible assets 98,900 Other deferred charges 133 Total assets acquired 1,135,380 Current liabilities Accounts payable 38,478 Taxes payable 723 Energy risk management liabilities 241 Other current liabilities 14,570 Non-current liabilities Accumulated deferred federal and state income taxes, net 7,165 Deferred lease revenue 58,300 Intangible liabilities 38,300 Asset retirement obligations 15,323 Operating lease liabilities 110 Total liabilities assumed 173,210 Total purchase price consideration $ 962,170 The fair values of Cleco Cajun’s acquired assets and assumed liabilities were determined based on significant estimates and assumptions, including projected future cash flows and discount rates reflecting risk inherent in those future cash flows. There were also estimates made to determine the expected useful lives of each class of assets acquired. On the date of the acquisition, 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 of seven years. 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. Valuations were performed to assess the fair value of certain assets acquired and liabilities assumed and were considered preliminary as a result of the short time period between the closing of the acquisition and the end of the first quarter of 2019. Accounting guidance provides that the allocation of the purchase price may be modified up to one year from the date of the acquisition as more information becomes available. These final valuations and assessments have been completed by the end of 2019. During the second quarter of 2019, certain modifications were made to the preliminary valuations as of February 4, 2019, due to the refinement of valuation models, assumptions, and inputs. The measurement period adjustments were based upon information obtained about facts and circumstances that existed at the acquisition date that, if known, would have affected the measurement of the amounts recognized at that date. Measurement Period Adjustments (THOUSANDS) AT JUNE 30, 2019 Current assets Customer and other accounts receivable $ 1,408 Other current assets $ 56 Non-current assets Property, plant, and equipment, net $ 13,297 Prepayments $ (56 ) Intangible assets $ (3,600 ) Other deferred charges $ 1 Current liabilities Accounts payable $ 3,022 Energy risk management liabilities $ (1 ) Other current liabilities $ 327 Non-current liabilities Accumulated deferred federal and state income taxes, net $ 421 Deferred lease revenue $ (3,600 ) Intangible liabilities $ 6,400 Asset retirement obligations $ 4,534 Operating lease liabilities $ 3 The measurement period adjustments resulted in an increase in electric operations revenue of $0.5 million, a decrease in other operations revenue of $0.1 million, and an increase in depreciation expense of $0.2 million recorded for the three months ended June 30, 2019. During the fourth quarter of 2019, Cleco completed its evaluation and determination of the fair value of assets and liabilities acquired in the Cleco Cajun Transaction. No modifications were made to the valuation during the third or fourth quarters of 2019. Consequently, no measurement period adjustments were made. Pro forma Impact of the Cleco Cajun Transaction The following table includes the unaudited pro forma financial information reflecting the consolidated results of operations of Cleco as if the Cleco Cajun Transaction had taken place on January 1, 2018. The pro forma net income for the year ended December 31, 2019, was adjusted to exclude nonrecurring transaction-related expenses of $4.7 million. The pro forma net income for the year ended December 31, 2018, includes nonrecurring transaction-related expenses. The unaudited pro forma financial information presented in the following table is not necessarily indicative of the consolidated results of operations that would have been achieved had the transaction taken place on the dates indicated, or the future consolidated results of operations of the combined companies. Unaudited Pro Forma Financial Information FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2019 2018 Operating revenue, net $ 1,660,362 $ 1,668,022 Net income $ 154,898 $ 170,224 |
Recent Authoritative Guidance (
Recent Authoritative Guidance (Q1) | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Authoritative Guidance | Note 3 — Recent Authoritative Guidance In June 2016, FASB amended the guidance for the measurement of credit losses on receivables and certain other assets. In-scope items for Cleco include unbilled revenue, trade receivables, notes receivables, other accounts receivables, and guarantees. The guidance requires use of a current expected loss model, which may result in earlier recognition of credit losses. Effective January 1, 2020, Cleco adopted the amended guidance using the prospective transition method. Adoption of this standard resulted in a $0.1 million increase in credit loss reserves related to unbilled revenue and trade receivables. The current expected credit loss model did not impact reserves related to any other in-scope items. For more information on Cleco’s accounting for credit losses, see Note 1 — “Summary of Significant Accounting Policies — Reserves for Credit Losses.” In August 2018, FASB issued guidance that allows for the deferral of certain implementation costs incurred in a cloud computing arrangement. Effective January 1, 2020, Cleco adopted the guidance using the prospective transition method. Adoption of this guidance did not materially impact the Registrants’ results of operations, financial condition, or cash flows. In March 2020, FASB issued amendments that are elective and apply to all entities, subject to 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 amendments include 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 amendment became effective March 12, 2020. Management is evaluating this guidance and the impact it may have on the Registrants’ results of operations, financial condition, or cash flows. |
Leases (Q1)
Leases (Q1) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | ||
Leases | Note 4 — Leases Cleco maintains operating and finance leases in its ordinary course of business activities. 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 entity with lessor arrangements. Cleco Cajun’s lease income under the Cottonwood Sale Leaseback for the three months ended March 31, 2020, and 2019, was as follows: FOR THE THREE MONTHS ENDED MAR. 31, (THOUSANDS) 2020 2019 Fixed payments $ 10,000 $ 6,667 Variable payments 5,566 3,151 Amortization of deferred lease liability (1) 2,302 1,440 Total lease income $ 17,868 $ 11,258 (1) | Note 4—Leases Cleco maintains operating and finance leases in its ordinary course of business activities. Effective January 1, 2019, Cleco adopted new guidance which requires organizations to recognize lease assets and lease liabilities on the balance sheet and disclose key information about leasing arrangements. A lease is deemed to exist when the right to control the use of identified property, plant, or equipment is conveyed through a contract for a certain period of time and consideration is paid. For more information on how leases are identified and on the new guidance, see Note 2 — “Summary of Significant Accounting Policies — Leases” and “— Recent Authoritative Guidance.” Operating Leases Cleco Power leases utility systems from two municipalities and one non-municipal public body. The first municipal lease had a term of 10 years and was set to expire on August 11, 2021. On July 9, 2019, this municipal lease was renewed for an additional term of 10 years and expires on August 11, 2031. The second municipal lease has a term of 10 years and expires on May 13, 2028. The non-municipal lease has a term of 27 years and expires on July 31, 2039. Each utility system lease contains fixed and variable components, as well as provisions for extensions. Cleco Power has leases for 200 railcars for coal transportation. One lease for 115 railcars expires on March 31, 2021, and the other lease for 85 railcars expires on March 31, 2020. Cleco Cajun has a lease for 135 railcars for coal transportation, which commenced in February 2019 and was a short-term lease with an initial term of 12 months. On January 27, 2020, this lease was renewed and expires on March 31, 2021. This lease renews for additional one-month terms unless Cleco Cajun chooses to terminate. Cleco reassesses its need for the railcars upon the expiration of each term. Cleco pays a monthly rental fee per car. The railcar leases do not contain contingent rent payments. Cleco Power has leases for three towboats in order to transport petroleum coke to Madison Unit 3. Each of the towboat leases has a term of 10 years and expires on March 31, 2028. Under these agreements, the rates are adjusted annually per the Producer Price Index. Each lease contains provisions for a five-year extension. Cleco and Cleco Power’s remaining operating leases provide for office and operating facilities, office equipment, and tower rentals. The following is a schedule by year of future minimum lease payments due under Cleco and Cleco Power’s long-term operating leases together with the present value of the net minimum lease payments as of December 31, 2019: (THOUSANDS) CLECO POWER CLECO Years ending Dec. 31, 2020 $ 3,960 $ 3,994 2021 3,409 3,443 2022 3,256 3,287 2023 3,220 3,249 2024 3,216 3,235 Thereafter 18,618 18,618 Total minimum lease payments 35,679 35,826 Less: amount representing interest 7,086 7,069 Present value of net minimum operating lease payments $ 28,593 $ 28,757 Current liabilities $ 2,935 $ 2,978 Non-current liabilities $ 25,658 $ 25,779 The following table is a summary of expected operating lease payments for Cleco and Cleco Power at December 31, 2018: (THOUSANDS) CLECO POWER CLECO HOLDINGS TOTAL Years ending Dec. 31, 2019 $ 4,030 $ 120 $ 4,150 2020 3,890 — 3,890 2021 2,789 — 2,789 2022 1,239 — 1,239 2023 1,214 — 1,214 Thereafter 7,235 — 7,235 Total operating lease payments $ 20,397 $ 120 $ 20,517 Finance Lease Prior to September 2017, Cleco Power had an agreement with Savage Services for barges in order to transport petroleum coke and limestone to Madison Unit 3 that met the accounting definition of a finance lease. In September 2017, Cleco Power entered into a new agreement for use of the barges on a month-to-month basis that met the accounting definition of an operating lease. In April 2018, Cleco Power entered into an agreement with Savage Inland Marine for continued use of the 42 barges used to transport petroleum coke through March 2033. The agreement meets the accounting definition of a finance lease. The barge lease rate contains both a fixed and variable component, of which the latter is adjusted every third anniversary of the agreement for estimated executory costs. If the barges are idle, the lessor is required to attempt to sublease the barges to third parties with the revenue reducing Cleco Power’s lease payment. This agreement contains a provision for early termination upon the occurrence of any one of four cancellation events. For the years ended December 31, 2019, 2018, and 2017, Cleco Power paid $2.2 million, $2.0 million, and $2.5 million, respectively, in lease payments. For the years ended December 31, 2019, 2018, and 2017, Cleco Power received $1.7 million, $0.5 million, and $0.3 million, respectively, of revenue from subleases. The following is an analysis of the leased property under the finance lease: (THOUSANDS) AT DEC. 31, 2019 AT DEC. 31, 2018 Barges $ 16,800 $ 16,800 Accumulated amortization (1,960 ) (840 ) Net finance lease $ 14,840 $ 15,960 The following is a schedule by year of future minimum lease payments due under the finance lease together with the present value of the net minimum lease payments as of December 31, 2019: (THOUSANDS) Years ending Dec. 31, 2020 $ 2,203 2021 2,203 2022 2,203 2023 2,203 2024 2,203 Thereafter 17,675 Total minimum lease payments 28,690 Less: amount representing interest 12,829 Present value of net minimum finance lease payments $ 15,861 Current liabilities $ 617 Non-current liabilities $ 15,244 The following is a schedule by year of future minimum lease payments due under the finance lease together with the present value of the net minimum lease payments as of December 31, 2018: (THOUSANDS) Years ending Dec. 31, 2019 $ 2,611 2020 2,611 2021 2,611 2022 2,611 2023 2,611 Thereafter 23,655 Total minimum lease payments 36,710 Less: executory costs 5,817 Net minimum lease payments 30,893 Less: amount representing interest 14,475 Present value of net minimum lease payments $ 16,418 Current liabilities $ 557 Non-current liabilities $ 15,861 Additional Lessee Disclosures Cleco and Cleco Power’s total lease cost includes amounts on the income statement, as well as amounts capitalized as part of property, plant, or equipment or inventory. The following tables reflect total lease costs for Cleco and Cleco Power for the year ended December 31, 2019: Cleco Power (THOUSANDS) FOR THE YEAR ENDED DEC. 31, 2019 Finance lease cost Amortization of ROU assets $ 1,120 Interest on lease liabilities 1,646 Operating lease cost 4,303 Variable lease cost 515 Total lease cost $ 7,584 Cleco (THOUSANDS) FOR THE YEAR ENDED DEC. 31, 2019 Finance lease cost Amortization of ROU assets $ 1,120 Interest on lease liabilities 1,646 Operating lease cost 4,528 Variable lease cost 515 Total lease cost $ 7,809 The following tables present additional information related to Cleco and Cleco Power’s operating and finance leases as of and for the year ended December 31, 2019: AT DEC. 31, 2019 (THOUSANDS) BALANCE SHEET LINE ITEM CLECO POWER CLECO Supplemental balance sheet information ROU assets Operating Operating lease right of use assets $ 28,633 $ 28,791 Finance Property, plant, and equipment 14,840 14,840 Total ROU assets $ 43,473 $ 43,631 Current lease liabilities Operating Other current liabilities $ 2,935 $ 2,978 Finance Long-term debt and finance leases due within one year 617 617 Non-current lease liabilities Operating Operating lease liabilities 25,658 25,779 Finance Long-term debt and finance leases, net 15,244 15,244 Total lease liabilities $ 44,454 $ 44,618 Cleco Power (THOUSANDS) FOR THE YEAR ENDED DEC. 31, 2019 Supplemental cash flow information Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 4,203 Operating cash flows from finance leases $ 1,646 Financing cash flows from finance leases $ 557 ROU assets obtained in exchange for new lease liabilities $ 15,749 Cleco (THOUSANDS) FOR THE YEAR ENDED DEC. 31, 2019 Supplemental cash flow information Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 4,452 Operating cash flows from finance leases $ 1,646 Financing cash flows from finance leases $ 557 ROU assets obtained in exchange for new lease liabilities $ 15,881 AT DEC. 31, 2019 (THOUSANDS) CLECO POWER CLECO Other supplemental information Operating leases Weighted-average remaining lease term 10.8 years 10.8 years Weighted-average discount rate 4.31 % 4.31 % Finance leases Weighted-average remaining lease term 13.3 years 13.3 years Weighted-average discount rate 10.18 % 10.18 % Lessor Agreements Upon the closing of the Cleco Cajun Transaction, Cleco assumed two lessor contracts leasing land to farmers for a term of one year. Both of these lessor contracts are classified as operating leases. For more information on the Cleco Cajun Transaction, see Note 3 — “Business Combinations.” 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 entity with lessor arrangements. Cleco Cajun’s lease income under the Cottonwood Sale Leaseback for the year ended December 31, 2019, was as follows: (THOUSANDS) FOR THE YEAR ENDED DEC. 31, 2019 Fixed payments $ 36,667 Variable payments 20,415 Amortization of deferred lease liability (1) 8,438 Total lease income $ 65,520 (1) The remaining minimum lease payments to be received under the Cottonwood Sale Leaseback are as follows: (THOUSANDS) Years ending Dec. 31, 2020 $ 40,000 2021 40,000 2022 40,000 2023 40,000 2024 40,000 Thereafter 16,667 Total payments $ 216,667 Depreciation expense associated with Cleco’s property under the Cottonwood Sale Leaseback for the year ended December 31, 2019, was $22.7 million. Cleco calculated depreciation on a straight-line basis over the useful life of the asset. Property associated with the Cottonwood Sale Leaseback was as follows: (THOUSANDS) AT DEC. 31, 2019 Property, plant, and equipment $ 540,409 Accumulated depreciation (22,741 ) Net property, plant, and equipment $ 517,668 |
Leases | Note 4 — Leases Cleco maintains operating and finance leases in its ordinary course of business activities. 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 entity with lessor arrangements. Cleco Cajun’s lease income under the Cottonwood Sale Leaseback for the three months ended March 31, 2020, and 2019, was as follows: FOR THE THREE MONTHS ENDED MAR. 31, (THOUSANDS) 2020 2019 Fixed payments $ 10,000 $ 6,667 Variable payments 5,566 3,151 Amortization of deferred lease liability (1) 2,302 1,440 Total lease income $ 17,868 $ 11,258 (1) | Note 4—Leases Cleco maintains operating and finance leases in its ordinary course of business activities. Effective January 1, 2019, Cleco adopted new guidance which requires organizations to recognize lease assets and lease liabilities on the balance sheet and disclose key information about leasing arrangements. A lease is deemed to exist when the right to control the use of identified property, plant, or equipment is conveyed through a contract for a certain period of time and consideration is paid. For more information on how leases are identified and on the new guidance, see Note 2 — “Summary of Significant Accounting Policies — Leases” and “— Recent Authoritative Guidance.” Operating Leases Cleco Power leases utility systems from two municipalities and one non-municipal public body. The first municipal lease had a term of 10 years and was set to expire on August 11, 2021. On July 9, 2019, this municipal lease was renewed for an additional term of 10 years and expires on August 11, 2031. The second municipal lease has a term of 10 years and expires on May 13, 2028. The non-municipal lease has a term of 27 years and expires on July 31, 2039. Each utility system lease contains fixed and variable components, as well as provisions for extensions. Cleco Power has leases for 200 railcars for coal transportation. One lease for 115 railcars expires on March 31, 2021, and the other lease for 85 railcars expires on March 31, 2020. Cleco Cajun has a lease for 135 railcars for coal transportation, which commenced in February 2019 and was a short-term lease with an initial term of 12 months. On January 27, 2020, this lease was renewed and expires on March 31, 2021. This lease renews for additional one-month terms unless Cleco Cajun chooses to terminate. Cleco reassesses its need for the railcars upon the expiration of each term. Cleco pays a monthly rental fee per car. The railcar leases do not contain contingent rent payments. Cleco Power has leases for three towboats in order to transport petroleum coke to Madison Unit 3. Each of the towboat leases has a term of 10 years and expires on March 31, 2028. Under these agreements, the rates are adjusted annually per the Producer Price Index. Each lease contains provisions for a five-year extension. Cleco and Cleco Power’s remaining operating leases provide for office and operating facilities, office equipment, and tower rentals. The following is a schedule by year of future minimum lease payments due under Cleco and Cleco Power’s long-term operating leases together with the present value of the net minimum lease payments as of December 31, 2019: (THOUSANDS) CLECO POWER CLECO Years ending Dec. 31, 2020 $ 3,960 $ 3,994 2021 3,409 3,443 2022 3,256 3,287 2023 3,220 3,249 2024 3,216 3,235 Thereafter 18,618 18,618 Total minimum lease payments 35,679 35,826 Less: amount representing interest 7,086 7,069 Present value of net minimum operating lease payments $ 28,593 $ 28,757 Current liabilities $ 2,935 $ 2,978 Non-current liabilities $ 25,658 $ 25,779 The following table is a summary of expected operating lease payments for Cleco and Cleco Power at December 31, 2018: (THOUSANDS) CLECO POWER CLECO HOLDINGS TOTAL Years ending Dec. 31, 2019 $ 4,030 $ 120 $ 4,150 2020 3,890 — 3,890 2021 2,789 — 2,789 2022 1,239 — 1,239 2023 1,214 — 1,214 Thereafter 7,235 — 7,235 Total operating lease payments $ 20,397 $ 120 $ 20,517 Finance Lease Prior to September 2017, Cleco Power had an agreement with Savage Services for barges in order to transport petroleum coke and limestone to Madison Unit 3 that met the accounting definition of a finance lease. In September 2017, Cleco Power entered into a new agreement for use of the barges on a month-to-month basis that met the accounting definition of an operating lease. In April 2018, Cleco Power entered into an agreement with Savage Inland Marine for continued use of the 42 barges used to transport petroleum coke through March 2033. The agreement meets the accounting definition of a finance lease. The barge lease rate contains both a fixed and variable component, of which the latter is adjusted every third anniversary of the agreement for estimated executory costs. If the barges are idle, the lessor is required to attempt to sublease the barges to third parties with the revenue reducing Cleco Power’s lease payment. This agreement contains a provision for early termination upon the occurrence of any one of four cancellation events. For the years ended December 31, 2019, 2018, and 2017, Cleco Power paid $2.2 million, $2.0 million, and $2.5 million, respectively, in lease payments. For the years ended December 31, 2019, 2018, and 2017, Cleco Power received $1.7 million, $0.5 million, and $0.3 million, respectively, of revenue from subleases. The following is an analysis of the leased property under the finance lease: (THOUSANDS) AT DEC. 31, 2019 AT DEC. 31, 2018 Barges $ 16,800 $ 16,800 Accumulated amortization (1,960 ) (840 ) Net finance lease $ 14,840 $ 15,960 The following is a schedule by year of future minimum lease payments due under the finance lease together with the present value of the net minimum lease payments as of December 31, 2019: (THOUSANDS) Years ending Dec. 31, 2020 $ 2,203 2021 2,203 2022 2,203 2023 2,203 2024 2,203 Thereafter 17,675 Total minimum lease payments 28,690 Less: amount representing interest 12,829 Present value of net minimum finance lease payments $ 15,861 Current liabilities $ 617 Non-current liabilities $ 15,244 The following is a schedule by year of future minimum lease payments due under the finance lease together with the present value of the net minimum lease payments as of December 31, 2018: (THOUSANDS) Years ending Dec. 31, 2019 $ 2,611 2020 2,611 2021 2,611 2022 2,611 2023 2,611 Thereafter 23,655 Total minimum lease payments 36,710 Less: executory costs 5,817 Net minimum lease payments 30,893 Less: amount representing interest 14,475 Present value of net minimum lease payments $ 16,418 Current liabilities $ 557 Non-current liabilities $ 15,861 Additional Lessee Disclosures Cleco and Cleco Power’s total lease cost includes amounts on the income statement, as well as amounts capitalized as part of property, plant, or equipment or inventory. The following tables reflect total lease costs for Cleco and Cleco Power for the year ended December 31, 2019: Cleco Power (THOUSANDS) FOR THE YEAR ENDED DEC. 31, 2019 Finance lease cost Amortization of ROU assets $ 1,120 Interest on lease liabilities 1,646 Operating lease cost 4,303 Variable lease cost 515 Total lease cost $ 7,584 Cleco (THOUSANDS) FOR THE YEAR ENDED DEC. 31, 2019 Finance lease cost Amortization of ROU assets $ 1,120 Interest on lease liabilities 1,646 Operating lease cost 4,528 Variable lease cost 515 Total lease cost $ 7,809 The following tables present additional information related to Cleco and Cleco Power’s operating and finance leases as of and for the year ended December 31, 2019: AT DEC. 31, 2019 (THOUSANDS) BALANCE SHEET LINE ITEM CLECO POWER CLECO Supplemental balance sheet information ROU assets Operating Operating lease right of use assets $ 28,633 $ 28,791 Finance Property, plant, and equipment 14,840 14,840 Total ROU assets $ 43,473 $ 43,631 Current lease liabilities Operating Other current liabilities $ 2,935 $ 2,978 Finance Long-term debt and finance leases due within one year 617 617 Non-current lease liabilities Operating Operating lease liabilities 25,658 25,779 Finance Long-term debt and finance leases, net 15,244 15,244 Total lease liabilities $ 44,454 $ 44,618 Cleco Power (THOUSANDS) FOR THE YEAR ENDED DEC. 31, 2019 Supplemental cash flow information Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 4,203 Operating cash flows from finance leases $ 1,646 Financing cash flows from finance leases $ 557 ROU assets obtained in exchange for new lease liabilities $ 15,749 Cleco (THOUSANDS) FOR THE YEAR ENDED DEC. 31, 2019 Supplemental cash flow information Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 4,452 Operating cash flows from finance leases $ 1,646 Financing cash flows from finance leases $ 557 ROU assets obtained in exchange for new lease liabilities $ 15,881 AT DEC. 31, 2019 (THOUSANDS) CLECO POWER CLECO Other supplemental information Operating leases Weighted-average remaining lease term 10.8 years 10.8 years Weighted-average discount rate 4.31 % 4.31 % Finance leases Weighted-average remaining lease term 13.3 years 13.3 years Weighted-average discount rate 10.18 % 10.18 % Lessor Agreements Upon the closing of the Cleco Cajun Transaction, Cleco assumed two lessor contracts leasing land to farmers for a term of one year. Both of these lessor contracts are classified as operating leases. For more information on the Cleco Cajun Transaction, see Note 3 — “Business Combinations.” 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 entity with lessor arrangements. Cleco Cajun’s lease income under the Cottonwood Sale Leaseback for the year ended December 31, 2019, was as follows: (THOUSANDS) FOR THE YEAR ENDED DEC. 31, 2019 Fixed payments $ 36,667 Variable payments 20,415 Amortization of deferred lease liability (1) 8,438 Total lease income $ 65,520 (1) The remaining minimum lease payments to be received under the Cottonwood Sale Leaseback are as follows: (THOUSANDS) Years ending Dec. 31, 2020 $ 40,000 2021 40,000 2022 40,000 2023 40,000 2024 40,000 Thereafter 16,667 Total payments $ 216,667 Depreciation expense associated with Cleco’s property under the Cottonwood Sale Leaseback for the year ended December 31, 2019, was $22.7 million. Cleco calculated depreciation on a straight-line basis over the useful life of the asset. Property associated with the Cottonwood Sale Leaseback was as follows: (THOUSANDS) AT DEC. 31, 2019 Property, plant, and equipment $ 540,409 Accumulated depreciation (22,741 ) Net property, plant, and equipment $ 517,668 |
Leases | Note 4 — Leases Cleco maintains operating and finance leases in its ordinary course of business activities. 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 entity with lessor arrangements. Cleco Cajun’s lease income under the Cottonwood Sale Leaseback for the three months ended March 31, 2020, and 2019, was as follows: FOR THE THREE MONTHS ENDED MAR. 31, (THOUSANDS) 2020 2019 Fixed payments $ 10,000 $ 6,667 Variable payments 5,566 3,151 Amortization of deferred lease liability (1) 2,302 1,440 Total lease income $ 17,868 $ 11,258 (1) |
Revenue Recognition (Q1)
Revenue Recognition (Q1) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | ||
Revenue Recognition | Note 5 — Revenue Recognition 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 transaction, see Note 2 — “Business Combinations.” Operating revenue, net for the three months ended March 31, 2020, and 2019, was as follows: FOR THE THREE MONTHS ENDED MAR. 31, 2020 (THOUSANDS) CLECO POWER CLECO CAJUN OTHER ELIMINATIONS TOTAL Revenue from contracts with customers Retail revenue Residential (1) $ 81,571 $ — $ — $ — $ 81,571 Commercial (1) 61,110 — — — 61,110 Industrial (1) 32,210 — — — 32,210 Other retail (1) 3,461 — — — 3,461 Surcharge 2,443 — — — 2,443 Electric customer credits (8,340 ) — — — (8,340 ) Total retail revenue 172,455 — — — 172,455 Wholesale, net 42,229 (1) 89,147 (2,420 ) (2) — 128,956 Transmission, net 12,069 12,931 (3) — (1,818 ) 23,182 Other 3,695 (4) — 1 — 3,696 Affiliate (5) 1,106 161 29,278 (30,545 ) — Total revenue from contracts with customers 231,554 102,239 26,859 (32,363 ) 328,289 Revenue unrelated to contracts with customers Other 1,406 (6) 17,877 (7) — — 19,283 Total revenue unrelated to contracts with customers 1,406 17,877 — — 19,283 Operating revenue, net $ 232,960 $ 120,116 $ 26,859 $ (32,363 ) $ 347,572 (1) (2) (3) (4) (5) (6) (7) FOR THE THREE MONTHS ENDED MAR. 31, 2019 (THOUSANDS) CLECO POWER CLECO CAJUN OTHER ELIMINATIONS TOTAL Revenue from contracts with customers Retail revenue Residential (1) $ 87,148 $ — $ — $ — $ 87,148 Commercial (1) 65,380 — — — 65,380 Industrial (1) 37,870 — — — 37,870 Other retail (1) 3,681 — — — 3,681 Surcharge 5,321 — — — 5,321 Electric customer credits (8,160 ) — — — (8,160 ) Total retail revenue 191,240 — — — 191,240 Wholesale, net 55,546 (1) 58,191 (2,420 ) (2) — 111,317 Transmission 12,579 8,727 — — 21,306 Other 6,851 (3) (26 ) 2 — 6,827 Affiliate (4) 300 — 26,535 (26,835 ) — Total revenue from contracts with customers 266,516 66,892 24,117 (26,835 ) 330,690 Revenue unrelated to contracts with customers Other 2,229 (5) 11,267 (6) — — 13,496 Total revenue unrelated to contracts with customers 2,229 11,267 — — 13,496 Operating revenue, net $ 268,745 $ 78,159 $ 24,117 $ (26,835 ) $ 344,186 (1) (2) (3) (4) (5) (6) Cleco and Cleco Power have unsatisfied performance obligations with durations ranging between 1 and 15 years that primarily relate to stand-ready obligations as part of fixed capacity minimums. At March 31, 2020, Cleco and Cleco Power had $80.7 million of unsatisfied performance obligations that will be recognized as revenue over the term of such contracts as the stand-ready obligation to provide energy is provided. | 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 last meter reading 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 accrued estimated refunds to Cleco Power’s retail customers for the tax related benefits of the TCJA. Wholesale Revenue Cleco’s wholesale revenue is generated primarily through the sale of energy and capacity to cooperatives, municipalities, and the MISO transmission provider. Cleco also enters into transactions through MISO for spot energy sales which are transacted in the Day-Ahead Energy and Operating Reserves Market and the Real-Time Energy and Operating Reserves Market. The electricity revenue performance obligations, representing both energy and capacity, are satisfied as a series of performance obligations, and progress towards satisfaction of the performance obligations are measured using an output method. The energy performance obligation measure of progress is based on kWh delivered. The capacity performance obligation measure of progress is based on time elapsed and is recognized each month as Cleco’s generating units stand ready to deliver electricity to the customer. Cleco recognizes wholesale revenue, inclusive of both performance obligations, under the invoice practical expedient for the amount Cleco has the right to invoice. Cleco, through Cleco Power and Cleco Cajun, charges its wholesale customers market based rates that are subject to FERC’s triennial market power analysis. 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 is recognized upon delivery of the transmission service. For Cleco Power, revenue from the transmission of electricity is recorded based on a FERC-approved annual formula rate mechanism. This mechanism provides for an annual filing of revenue requirements with rates effective June 1 of each year. For Cleco Cajun, revenue from the transmission of electricity is recorded based on a FERC-approved annual filing rate mechanism effective June 1 of each year. Cleco Cajun charges transmission rates based on its cost to provide transmission services. Other Revenue Other revenue from contracts with customers, which is not a significant source of Cleco’s revenue, includes Cleco Power’s Teche Unit 3 SSR revenue and miscellaneous fees. The performance obligation under these contracts is satisfied and revenue is recognized as control of the products is delivered or services are rendered. Revenue Unrelated to Contracts with Customers Cleco’s energy-related transactions with the following characteristics qualify as derivative contracts and are recorded pursuant to derivatives and hedging accounting guidance: a) their value is based on the notional amount or payment provisions of an underlying asset; b) they require no or a diminutive initial net investment; and c) their terms require or permit net settlement. Cleco Cajun’s other revenue includes fixed lease payments and certain variable payments for costs paid by NRG Energy on behalf of Cleco. For more information on the Cottonwood lease agreement, see Note 4 — “Leases — Lessor Agreements — Disaggregated Revenue Upon the completion of the Cleco Cajun Transaction on February 4, 2019, Cleco Cajun became a new reportable segment. For more information on the transaction, see Note 3 — “Business Combinations.” Operating revenue, net for the year ended December 31, 2019, and 2018, was as follows: 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, net 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. FOR THE YEAR ENDED DEC. 31, 2018 (THOUSANDS) CLECO POWER OTHER ELIMINATIONS TOTAL Revenue from contracts with customers Retail revenue Residential (1) $ 435,610 $ — $ — $ 435,610 Commercial (1) 288,791 — — 288,791 Industrial (1) 167,001 — — 167,001 Other retail (1) 15,582 — — 15,582 Surcharge 23,138 — — 23,138 Electric customer credits (33,195 ) — — (33,195 Total retail revenue 896,927 — — 896,927 Wholesale, net (1) 219,598 (9,680 ) (2) — 209,918 Transmission 54,531 — — 54,531 Other (3) 27,800 2 — 27,802 Affiliate (4) 874 74,591 (75,465 ) — Total revenue from contracts with customers 1,199,730 64,913 (75,465 ) 1,189,178 Revenue unrelated to contracts with customers Other (5) 41,866 — — 41,866 Total revenue unrelated to contracts with customers 41,866 — — 41,866 Operating revenue, net $ 1,241,596 $ 64,913 $ (75,465 ) $ 1,231,044 (1) Includes fuel recovery revenue. (2) Amortization of intangible assets related to wholesale power supply agreements. (3) Other revenue from contracts with customers includes $18.2 million of other miscellaneous fee revenue and $9.6 million of Teche Unit 3 SSR revenue. (4) Affiliate revenue from contracts with customers includes interdepartmental rents and support services. This revenue is eliminated upon consolidation. (5) Includes realized gains associated with FTRs of $39.3 million and LCFC revenue of $2.6 million. Cleco and Cleco Power have unsatisfied performance obligations with durations ranging between 1 and 15 years that primarily relate to stand-ready obligations as part of fixed capacity minimums. Cleco and Cleco Power have elected to not disclose the value of unsatisfied variable performance obligations as part of their application of the right to invoice practical expedient. At December 31, 2019, Cleco and Cleco Power had $30.8 million of unsatisfied performance obligations that will be recognized as revenue over the term of the contracts as the stand-ready obligation to provide energy is provided. |
Regulatory Assets and Liabili_2
Regulatory Assets and Liabilities (Q1) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Regulated Operations [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 on regulated operations. The following table summarizes Cleco Power’s regulatory assets and liabilities: Cleco Power (THOUSANDS) AT MAR. 31, 2020 AT DEC. 31, 2019 Regulatory assets (liabilities) Deferred taxes, net $ (146,225 ) $ (146,948 ) Interest costs 3,896 3,958 AROs 3,815 3,668 Postretirement costs 147,889 151,543 Tree trimming costs 11,384 11,341 Training costs 6,202 6,241 Surcredits, net (1) 72 145 AMI deferred revenue requirement 3,000 3,136 Emergency declarations 948 1,349 Production operations and maintenance expenses 6,756 7,985 AFUDC equity gross-up (1) 71,992 72,766 Acadia Unit 1 acquisition costs 2,098 2,124 Financing costs 7,461 7,554 Coughlin transaction costs 899 906 Corporate franchise tax, net (1,145 ) (1,145 ) Non-service cost of postretirement benefits 7,551 6,739 Energy efficiency 2,820 2,820 Accumulated deferred fuel 16,353 22,910 Other, net (1,039 ) (4,543 ) Total regulatory assets, net $ 144,727 $ 152,549 (1) The following table summarizes Cleco’s net regulatory assets and liabilities: Cleco (THOUSANDS) AT MAR. 31, 2020 AT DEC. 31, 2019 Total Cleco Power regulatory assets, net $ 144,727 $ 152,549 2016 Merger adjustments (1) Fair value of long-term debt 125,105 127,977 Postretirement costs 16,902 17,399 Financing costs 7,849 7,935 Debt issuance costs 5,504 5,665 Total Cleco regulatory assets, net $ 300,087 $ 311,525 (1) | 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, (THOUSANDS) 2019 2018 REMAINING RECOVERY PERIOD (YRS.) Regulatory assets (liabilities) Deferred taxes, net (146,948 ) (155,537 ) * Mining costs — 1,274 — Interest costs 3,958 4,208 * AROs 3,668 3,099 * Postretirement costs 151,543 140,245 * Tree trimming costs 11,341 9,069 * Training costs 6,241 6,396 40 Surcredits, net (1) 145 289 * AMI deferred revenue requirement 3,136 3,681 6 Emergency declarations 1,349 2,980 * Production operations and maintenance expenses 7,985 12,245 * AFUDC equity gross-up (1) 72,766 71,952 * Acadia Unit 1 acquisition costs 2,124 2,230 20 Financing costs 7,554 7,923 * Coughlin transaction costs 906 938 29.5 Corporate franchise tax, net (1,145 ) 1,416 * Non-service cost of postretirement benefits 6,739 4,629 * Energy efficiency 2,820 2,585 * Accumulated deferred fuel 22,910 20,112 * Other, net (4,543 ) (4,979 ) * Total regulatory assets, net $ 152,549 $ 134,755 (1) * For information related to the remaining recovery periods, refer to the following disclosures for each specific regulatory asset. The following table summarizes Cleco’s net regulatory assets and liabilities: Cleco AT DEC. 31, (THOUSANDS) 2019 2018 Total Cleco Power regulatory assets, net $ 152,549 $ 134,755 2016 Merger adjustments (1) Fair value of long-term debt 127,977 138,701 Postretirement costs 17,399 19,387 Financing costs 7,935 8,279 Debt issuance costs 5,665 6,252 Total Cleco regulatory assets, net $ 311,525 $ 307,374 (1) Income Taxes 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 President signed the TCJA. 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. In 2017, Cleco and Cleco Power made an estimate for the remeasurement of ADIT based upon the new tax rate, which resulted in a provisional regulatory liability of $348.6 million. During the fourth quarter of 2018, Cleco Power recorded the final remeasurements, which resulted in an additional regulatory liability of $26.4 million for a total of $375.0 million at December 31, 2018. No additional regulatory liability was accrued at December 31, 2019. For more information on the status of the TCJA regulatory liability, see Note 13 — “Regulation and Rates — TCJA.” Mining Costs Cleco Power operates a generating unit jointly owned with SWEPCO that uses lignite as its primary fuel source. Cleco Power, along with SWEPCO, maintains a lignite mining agreement with DHLC, the operator of the Dolet Hills Mine. As ordered by the LPSC, Cleco Power’s retail customers received fuel cost savings through the year 2011, while actual mining costs above a certain percentage of the benchmark price were deferred. These deferred costs could be recovered from retail customers through the FAC only when the actual mining costs were below a certain percentage of the benchmark price. In 2006, Cleco Power recognized that there was a possibility it may not recover all or part of the lignite mining costs it had deferred and sought relief from the LPSC. In 2007, the LPSC approved a settlement agreement between Cleco Power, SWEPCO, and the LPSC Staff authorizing Cleco Power to recover the existing deferred mining cost balance, including interest, over 11.5 years. In connection with its 2009 approval of the Oxbow Lignite Mine acquisition, the LPSC agreed to discontinue benchmarking and the corresponding potential to defer future lignite mining costs while preserving the previously authorized recovery of the legacy deferred fuel balance. At June 30, 2019, Cleco Power had fully recovered the existing deferred mining costs, plus interest. 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. 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 of Cleco Power’s AROs, see Note 2 — “Summary of Significant Accounting Policies — AROs.” 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 eight years as of December 31, 2019, 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.” 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 to be fully amortized by 2026. 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. Surcredits, Net Cleco Power has recorded surcredits as the result of a settlement with the LPSC that addressed, among other things, the recovery of the storm damages related to hurricanes and uncertain tax positions. In the settlement, Cleco Power was required to implement surcredits to provide ratepayers with the economic benefit of the carrying charges of certain ADIT liabilities at a rate of return which was set by the LPSC. The settlement, through a true-up mechanism, allows the surcredits to be adjusted to reflect the actual tax deductions allowed by the IRS. Cleco Power recorded a true-up to the surcredits to reflect the actual tax deductions allowed by the IRS for storm damages and uncertain tax positions. As a result of the true-ups, Cleco Power recorded a regulatory asset that represents excess surcredits refunded to customers that were collected from ratepayers and amortized over a four-year period, through June 2018. Cleco Power began collecting the balance as part of the July 1, 2019, FRP rate adjustment. 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. 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 and expects the regulatory assets to be fully amortized by June 2021. 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 $45.0 million, adjusted annually for a growth factor (deferral threshold). The amount of the regulatory asset is capped at $23.0 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 no deferral in 2019. In December 2018, Cleco Power deferred $8.0 million as a regulatory asset. 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. 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. 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. 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. 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. 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. 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. Other Regulatory Assets (Liabilities), Net At December 31, 2019, Other, net consisted of a $4.7 million regulatory liability for over collections related to the St. Mary Clean Energy project and a $0.8 million regulatory liability for an LPSC Cleco Cajun Transaction commitment. These regulatory liabilities were offset by a $1.0 million regulatory asset for the Coughlin Pipeline revenue requirement. On July 1, 2018, Cleco Power began collecting the revenue requirement related to the St. Mary Clean Energy Center project based on an expected commercial operation date in the third quarter of 2018. The project was commercially operational in August 2019. Cleco Power recorded a regulatory liability for the over collections due to the delay of the commercial operations. On July 1, 2019, Cleco Power’s rates were adjusted by the amount of the over-collection and Cleco Power began amortizing the regulatory asset over 12 months. In January 2019, the LPSC approved the Cleco Cajun Transaction. Approval of the Cleco Cajun Transaction was conditioned upon certain commitments, including a $4.0 million annual reduction to Cleco Power’s retail customer rates. For the period from February 4, 2019, to June 30, 2019, Cleco Power recorded a regulatory liability for the annual reduction until the July 1, 2019 FRP rate adjustment reflected the annual savings. Also on July 1, 2019, Cleco Power began amortizing the regulatory liability over 12 months. In June 2017, the LPSC approved the establishment of a regulatory asset upon the completion of the Coughlin Pipeline project for the revenue requirement associated with the project until Cleco Power seeks recovery in the new FRP, which is anticipated to be effective July 1, 2020. The project was placed in service on September 6, 2019. Cleco Power anticipates collecting this amount over 12 months beginning July 1, 2020, subject to regulatory approval of Cleco Power’s new FRP. 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 2019, approximately 76% of Cleco Power’s total fuel cost was regulated by the LPSC. 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 can 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. |
Fair Value Accounting (Q1)
Fair Value Accounting (Q1) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | ||
Fair Value Accounting | Note 7 — Fair Value Accounting The amounts reflected on Cleco and Cleco Power’s Condensed Consolidated Balance Sheets at March 31, 2020, and December 31, 2019, for cash equivalents, restricted cash equivalents, accounts receivable, other accounts receivable, short-term debt, and accounts payable approximate fair value because of their short-term nature. Cleco applies the provisions of the fair value measurement standard to its non-recurring, non-financial measurements including business combinations, as well as impairment related to goodwill and other long-lived assets. The following tables summarize the carrying value and estimated market value of Cleco and Cleco Power’s financial instruments not measured at fair value on Cleco and Cleco Power’s Condensed Consolidated Balance Sheets: Cleco AT MAR. 31, 2020 AT DEC. 31, 2019 (THOUSANDS) CARRYING VALUE* FAIR VALUE CARRYING VALUE* FAIR VALUE Long-term debt $ 3,174,821 $ 3,295,214 $ 3,188,664 $ 3,371,915 * The carrying value of long-term debt does not include deferred issuance costs of $13.2 million at March 31, 2020, and $13.7 million at December 31, 2019. Cleco Power AT MAR. 31, 2020 AT DEC. 31, 2019 (THOUSANDS) CARRYING VALUE* FAIR VALUE CARRYING VALUE* FAIR VALUE Long-term debt $ 1,369,716 $ 1,696,053 $ 1,380,688 $ 1,601,865 * The carrying value of long-term debt does not include deferred issuance costs of $7.2 million at March 31, 2020, and $7.4 million at December 31, 2019. In order to fund capital requirements, Cleco issues fixed and variable rate long-term debt with various tenors. The fair value of this class fluctuates as the market interest rates for fixed and variable rate debt with similar tenors and credit ratings change. The fair value of the debt could also change from period to period due to changes in the credit rating of the Cleco entity by which the debt was issued. The fair value of long-term debt is classified as Level 2 in the fair value hierarchy. Fair Value Measurements and Disclosures Cleco classifies assets and liabilities that are measured at their fair value according to three different levels depending on the inputs used in determining fair value. The following tables disclose for Cleco and Cleco Power the fair value of financial assets and liabilities measured on a recurring basis: Cleco FAIR VALUE MEASUREMENTS AT REPORTING DATE (THOUSANDS) AT MAR. 31, 2020 QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) AT DEC. 31, 2019 QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) Asset description Institutional money market funds $ 352,549 $ — $ 352,549 $ — $ 129,643 $ — $ 129,643 $ — FTRs 1,779 — — 1,779 6,822 — — 6,822 Other commodity derivatives 213 — 213 — 201 — 201 — Total assets $ 354,541 $ — $ 352,762 $ 1,779 $ 136,666 $ — $ 129,844 $ 6,822 Liability description FTRs $ 683 $ — $ — $ 683 $ 1,044 $ — $ — $ 1,044 Other commodity derivatives 12,494 — 12,494 — 5,373 — 5,373 — Total liabilities $ 13,177 $ — $ 12,494 $ 683 $ 6,417 $ — $ 5,373 $ 1,044 Cleco Power FAIR VALUE MEASUREMENTS AT REPORTING DATE (THOUSANDS) AT MAR. 31, 2020 QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) AT DEC. 31, 2019 QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) Asset description Institutional money market funds $ 198,006 $ — $ 198,006 $ — $ 74,903 $ — $ 74,903 $ — FTRs 1,673 — — 1,673 6,311 — — 6,311 Total assets $ 199,679 $ — $ 198,006 $ 1,673 $ 81,214 $ — $ 74,903 $ 6,311 Liability description FTRs $ 524 $ — $ — $ 524 $ 586 $ — $ — $ 586 Total liabilities $ 524 $ — $ — $ 524 $ 586 $ — $ — $ 586 The following tables summarize the net changes in the net fair value of FTR assets and liabilities classified as Level 3 in the fair value hierarchy for Cleco and Cleco Power: Cleco FOR THE THREE MONTHS ENDED MAR. 31, (THOUSANDS) 2020 2019 Beginning balance $ 5,778 $ 22,887 Unrealized losses* (1,398 ) (1,917 ) Purchases 466 5,237 Settlements (3,750 ) (18,397 ) Ending balance $ 1,096 $ 7,810 * Cleco Power’s unrealized losses are reported through Accumulated deferred fuel on Cleco’s Condensed Consolidated Balance Sheet. Cleco Cajun’s unrealized (losses) gains are reported through Purchased power on Cleco’s Condensed Consolidated Income Statement. Cleco Power FOR THE THREE MONTHS ENDED MAR. 31, (THOUSANDS) 2020 2019 Beginning balance $ 5,725 $ 22,887 Unrealized losses* (1,311 ) (2,939 ) Purchases 466 1,286 Settlements (3,731 ) (16,422 ) Ending balance $ 1,149 $ 4,812 * Unrealized losses are reported through Accumulated deferred fuel on Cleco Power’s Condensed Consolidated Balance Sheet. The following tables quantify the significant unobservable inputs used in developing the fair value of Level 3 positions for Cleco and Cleco Power as of March 31, 2020, and December 31, 2019: Cleco FAIR VALUE VALUATION TECHNIQUE SIGNIFICANT UNOBSERVABLE INPUTS FORWARD PRICE RANGE (THOUSANDS, EXCEPT FORWARD PRICE RANGE) ASSETS LIABILITIES LOW HIGH FTRs at Mar. 31, 2020 $ 1,779 $ 683 RTO auction pricing FTR price - per MWh $ (1.40 ) $ 2.93 FTRs at Dec. 31, 2019 $ 6,822 $ 1,044 RTO auction pricing FTR price - per MWh $ (2.57 ) $ 2.86 Cleco Power FAIR VALUE VALUATION TECHNIQUE SIGNIFICANT UNOBSERVABLE INPUTS FORWARD PRICE RANGE (THOUSANDS, EXCEPT FORWARD PRICE RANGE) ASSETS LIABILITIES LOW HIGH FTRs at Mar. 31, 2020 $ 1,673 $ 524 RTO auction pricing FTR price - per MWh $ (1.40 ) $ 2.93 FTRs at Dec. 31, 2019 $ 6,311 $ 586 RTO auction pricing FTR price - per MWh $ (2.04 ) $ 2.86 Cleco utilizes different valuation techniques for fair value calculations. In order to measure the fair value for Level 1 assets and liabilities, Cleco obtains the closing price from published indices in active markets for the various instruments and multiplies this price by the appropriate number of instruments held. Level 2 fair values are determined by obtaining the closing price of similar assets and liabilities from published indices in active markets. Institutional money market funds assets are discounted to the current period using a U.S. Treasury published interest rate as a proxy for a risk-free rate of return. Level 3 fair values occur in situations in which there is little, if any, market activity for the asset or liability at the measurement date and prices are not observable. Cleco has consistently applied the Level 2 and Level 3 fair value techniques from fiscal period to fiscal period. Significant increases or decreases in any of those inputs in isolation would result in a significantly different fair value measurement. The assets and liabilities reported at fair value are grouped into classes based on the underlying nature and risks associated with the individual asset or liability. At March 31, 2020, 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 institutional money market funds in cash and cash equivalents and restricted cash and cash equivalents as recorded on Cleco and Cleco Power’s Condensed Consolidated Balance Sheets at March 31, 2020, and December 31, 2019: Cleco (THOUSANDS) AT MAR. 31, 2020 AT DEC. 31, 2019 Cash and cash equivalents $ 338,611 $ 103,409 Current restricted cash and cash equivalents $ 4,054 $ 11,100 Non-current restricted cash and cash equivalents $ 9,883 $ 15,134 Cleco Power (THOUSANDS) AT MAR. 31, 2020 AT DEC. 31, 2019 Cash and cash equivalents $ 184,911 $ 49,509 Current restricted cash and cash equivalents $ 4,054 $ 11,100 Non-current restricted cash and cash equivalents $ 9,041 $ 14,294 If the money market funds failed to perform under the terms of the investments, Cleco and Cleco Power would be exposed to a loss of the invested amounts. Collateral on these types of investments is not required by either Cleco or Cleco Power. The Level 2 institutional money market funds asset consists of a single class. In order to capture interest income and minimize risk, cash is invested in money market funds that invest primarily in short-term securities issued by the U.S. Treasury to maintain liquidity and achieve the goal of a net asset value of a dollar. The risks associated with this class are counterparty risk of the fund manager and risk of price volatility associated with the underlying securities of the fund. Other commodity derivatives include fixed price physical forwards and swap transactions. These contracts contain counterparty credit risk because they are transacted directly with a counterparty and are not cleared on an exchange. With respect to any open trading contracts that Cleco has entered into or may enter into in the future, Cleco may be required to provide credit support or pay liquidated damages under such contracts. 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. These other commodity derivatives are recorded at fair value and categorized as Level 2 because pricing is indexed to other contracts. Cleco Power and Cleco Cajun’s FTRs were priced using MISO’s monthly auction prices. Forward seasonal periods are not included in every monthly auction; therefore, the average of the most recent seasonal auction prices is used for monthly valuation. FTRs are categorized as Level 3 fair value measurements because the only relevant pricing available comes from MISO auctions, which occur monthly in the Multi-Period Monthly Auction. During the three months ended March 31, 2020, and the year ended December 31, 2019, Cleco did not experience any transfers between levels within the fair value hierarchy. Commodity Contracts The following tables present the fair values of derivative instruments and their respective line items as recorded on Cleco and Cleco Power’s Condensed Consolidated Balance Sheets at March 31, 2020, and December 31, 2019: Cleco DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS (THOUSANDS) BALANCE SHEET LINE ITEM AT MAR. 31, 2020 AT DEC. 31, 2019 Commodity-related contracts FTRs Current Energy risk management assets $ 1,779 $ 6,822 Current Energy risk management liabilities (683 ) (1,044 ) Other commodity derivatives Current Energy risk management assets 213 201 Current Energy risk management liabilities (9,014 ) (3,069 ) Non-current Other deferred credits (3,480 ) (2,304 ) Commodity-related contracts, net $ (11,185 ) $ 606 Cleco Power DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS (THOUSANDS) BALANCE SHEET LINE ITEM AT MAR. 31, 2020 AT DEC. 31, 2019 Commodity-related contracts FTRs Current Energy risk management assets $ 1,673 $ 6,311 Current Energy risk management liabilities (524 ) (586 ) Commodity-related contracts, net $ 1,149 $ 5,725 The following tables present the effect of derivatives not designated as hedging instruments on Cleco and Cleco Power’s Condensed Consolidated Statements of Income for the three months ended March 31, 2020, and 2019: Cleco AMOUNT OF GAIN(LOSS) RECOGNIZED IN INCOME ON DERIVATIVES FOR THE THREE MONTHS ENDED MAR. 31, (THOUSANDS) INCOME STATEMENT LINE ITEM 2020 2019 Commodity-related contracts FTRs (1) Electric operations $ 1,396 $ 5,209 FTRs (1) Purchased power (381 ) (3,324 ) Other commodity derivatives Fuel used for electric generation (7,108 ) — Total $ (6,093 ) $ 1,885 (1) Cleco Power AMOUNT OF GAIN(LOSS) RECOGNIZED IN INCOME ON DERIVATIVES FOR THE THREE MONTHS ENDED MAR. 31, (THOUSANDS) INCOME STATEMENT LINE ITEM 2020 2019 Commodity-related contracts FTRs (1) Electric operations $ 1,396 $ 5,206 FTRs (1) Purchased power (751 ) (1,983 ) Total $ 645 $ 3,223 (1) The total volume of FTRs that Cleco Power had outstanding at March 31, 2020, and December 31, 2019, was 3.4 million MWh and 9.2 million MWh, respectively. The total volume of FTRs that Cleco had outstanding at March 31, 2020, and December 31, 2019, was 5.4 million MWh and 14.6 million MWh, respectively. The total volume of other commodity derivatives Cleco had outstanding at March 31, 2020, and December 31, 2019, was 54.8 million MMBtus and 58.5 million MMBtus, respectively. | Note 8 — Fair Value Accounting The amounts reflected in Cleco and Cleco Power’s Consolidated Balance Sheets at December 31, 2019, and 2018, for cash equivalents, restricted cash equivalents, accounts receivable, other accounts receivable, short-term debt, and accounts payable approximate fair value because of their short-term nature. Cleco applies the provisions of the fair value measurement standard to its non-recurring, non-financial measurements including business combinations as well as impairment related to goodwill and other long-lived assets. The following tables summarize the carrying value and estimated market value of Cleco and Cleco Power’s financial instruments not measured at fair value on Cleco and Cleco Power’s Consolidated Balance Sheets: Cleco AT DEC. 31, 2019 2018 (THOUSANDS) CARRYING VALUE* FAIR VALUE CARRYING VALUE* FAIR VALUE Long-term debt $ 3,188,664 $ 3,371,915 $ 2,889,631 $ 2,859,924 *The carrying value of long-term debt does not include deferred issuance costs of $13.7 million at December 31, 2019, and $10.3 million at December 31, 2018. Cleco Power AT DEC. 31, 2019 2018 (THOUSANDS) CARRYING VALUE* FAIR VALUE CARRYING VALUE* FAIR VALUE Long-term debt $ 1,380,688 $ 1,601,865 $ 1,400,930 $ 1,517,152 * The carrying value of long-term debt does not include deferred issuance costs of $7.4 million at December 31, 2019, and $8.3 million at December 31, 2018. Long-term debt liability consists of a single class. In order to fund capital requirements, Cleco issues fixed and variable rate long-term debt with various tenors. The fair value of this class fluctuates as the market interest rates for fixed and variable rate debt with similar tenors and credit ratings change. The fair value of the debt could also change from period to period due to changes in the credit rating of the Cleco entity by which the debt was issued. The fair value of long-term debt is classified as Level 2 in the fair value hierarchy. Fair Value Measurements and Disclosures Cleco classifies assets and liabilities that are measured at their fair value according to three different levels depending on the inputs used in determining fair value. The following tables disclose for Cleco and Cleco Power the fair value of financial assets and liabilities measured on a recurring basis: Cleco FAIR VALUE MEASUREMENTS AT REPORTING DATE (THOUSANDS) AT DEC. 31, 2019 QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) AT DEC. 31, 2018 QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) Asset Description Institutional money market funds $ 129,643 $ — $ 129,643 $ — $ 133,722 $ — $ 133,722 $ — FTRs 6,822 — — 6,822 23,355 — — 23,355 Other commodity derivatives 201 — 201 — — — — — Total assets $ 136,666 $ — $ 129,844 $ 6,822 $ 157,077 $ — $ 133,722 $ 23,355 Liability Description FTRs $ 1,044 $ — $ — $ 1,044 $ 468 $ — $ — $ 468 Other commodity derivatives 5,373 — 5,373 — — $ — $ — $ — Total liabilities $ 6,417 $ — $ 5,373 $ 1,044 $ 468 $ — $ — $ 468 Cleco Power FAIR VALUE MEASUREMENTS AT REPORTING DATE (THOUSANDS) AT DEC. 31, 2019 QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) AT DEC. 31, 2018 QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) Asset Description Institutional money market funds $ 74,903 $ — $ 74,903 $ — $ 55,900 $ — $ 55,900 $ — FTRs 6,311 — — 6,311 23,355 — — 23,355 Total assets $ 81,214 $ — $ 74,903 $ 6,311 $ 79,255 $ — $ 55,900 $ 23,355 Liability Description FTRs $ 586 $ — $ — $ 586 $ 468 $ — $ — $ 468 Total liabilities $ 586 $ — $ — $ 586 $ 468 $ — $ — $ 468 The following tables summarize the net changes in the net fair value of FTR assets and liabilities classified as Level 3 in the fair value hierarchy for Cleco and Cleco Power: Cleco FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2019 2018 Beginning balance $ 22,887 $ 7,044 Unrealized (losses) gains * (1,659 ) 11,865 Purchases 27,881 28,185 Settlements (43,331 ) (24,207 ) Ending balance $ 5,778 $ 22,887 * Cleco Power’s unrealized (losses) gains are reported through Accumulated deferred fuel on Cleco’s Consolidated Balance Sheet. Cleco Cajun’s unrealized (losses) gains are reported through Purchased power on Cleco’s Consolidated Income Statement. Cleco Power FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2019 2018 Beginning balance $ 22,887 $ 7,044 Unrealized (losses) gains * (945 ) 11,865 Purchases 21,609 28,185 Settlements (37,826 ) (24,207 ) Ending balance $ 5,725 $ 22,887 * Unrealized gains (losses) are reported through Accumulated deferred fuel on Cleco Power’s Consolidated Balance Sheets. 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, 2019: Cleco FAIR VALUE VALUATION TECHNIQUE SIGNIFICANT UNOBSERVABLE INPUTS FORWARD PRICE RANGE (THOUSANDS, EXCEPT DOLLAR PER MWh) Assets Liabilities Low High FTRs at December 31, 2019 $ 6,822 $ 1,044 RTO auction pricing FTR price - per MWh $ (2.57 ) $ 2.86 FTRs at December 31, 2018 $ 23,355 $ 468 RTO auction pricing FTR price - per MWh $ (4.40 ) $ 15.10 Cleco Power FAIR VALUE VALUATION TECHNIQUE SIGNIFICANT UNOBSERVABLE INPUTS FORWARD PRICE RANGE (THOUSANDS, EXCEPT DOLLAR PER MWh) Assets Liabilities Low High FTRs at December 31, 2019 $ 6,311 $ 586 RTO auction pricing FTR price - per MWh $ (2.04 ) $ 2.86 FTRs at December 31, 2018 $ 23,355 $ 468 RTO auction pricing FTR price - per MWh $ (4.40 ) $ 15.10 Cleco utilizes different valuation techniques for fair value calculations. In order to measure the fair value for Level 1 assets and liabilities, Cleco obtains the closing price from published indices in active markets for the various instruments and multiplies this price by the appropriate volume of instruments held. Level 2 fair values are determined by obtaining the closing price of similar assets and liabilities from published indices in active markets. Institutional money market funds assets are discounted to the current period using a U.S. Treasury published interest rate as a proxy for a risk-free rate of return. Level 3 fair values occur in situations in which there is little, if any, market activity for the asset or liability at the measurement date and prices are not observable. Cleco has consistently applied the Level 2 and Level 3 fair value techniques from fiscal period to fiscal period. Significant increases or decreases in any of those inputs in isolation would result in a significantly different fair value measurement. The assets and liabilities reported at fair value are grouped into classes based on the underlying nature and risks associated with the individual asset or liability. At December 31, 2019, Cleco and Cleco Power were exposed to concentrations of credit risk through their short-term investments classified as cash equivalents and restricted cash equivalents. The institutional money market funds were reported on Cleco’s Consolidated Balance Sheets in cash and cash equivalents, current restricted cash and cash equivalents, and non-current restricted cash and cash equivalents of $103.4 million, $11.1 million, and $15.1 million, respectively, at December 31, 2019, and $103.8 million, $11.2 million, and $18.7 million, respectively, at December 31, 2018. At Cleco Power, the institutional money market funds were reported on Cleco Power’s Consolidated Balance Sheets in cash and cash equivalents, current restricted cash and cash equivalents, and non-current restricted cash and cash equivalents of $49.5 million, $11.1 million, and $14.3 million, respectively, at December 31, 2019, and $26.1 million, $11.2 million, and $18.6 million, respectively, at December 31, 2018. If the money market funds failed to perform under the terms of the investments, Cleco and Cleco Power would be exposed to a loss of the invested amounts. Collateral on these types of investments is not required by either Cleco or Cleco Power. The Level 2 institutional money market funds asset consists of a single class. In order to capture interest income and minimize risk, cash is invested in money market funds that invest primarily in short-term securities issued by the U. S. Treasury to maintain liquidity and achieve the goal of a net asset value of a dollar. The risks associated with this class are counterparty risk of the fund manager and risk of price volatility associated with the underlying securities of the fund. Other commodity derivatives include fixed price physical forwards and swap transactions. These contracts contain counterparty credit risk because they are transacted directly with a counterparty and are not cleared on an exchange. These other commodity derivatives are recorded at fair value and categorized as Level 2 because pricing is indexed to other contracts. Cleco Power and Cleco Cajun’s FTRs were priced using MISO’s monthly auction prices. Forward seasonal periods are not included in every monthly auction; therefore, the average of the most recent seasonal auction prices is used for monthly valuation. FTRs are categorized as Level 3 fair value measurements because the only relevant pricing available comes from MISO auctions, which occur monthly in the Multi-Period Monthly Auction. During the years ended December 31, 2019, and 2018, Cleco did not experience any transfers between levels within the fair value hierarchy. Commodity Contracts The following tables present the fair values of derivative instruments and their respective line items as recorded on Cleco and Cleco Power’s Consolidated Balance Sheets at December 31, 2019, and 2018: Cleco DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS (THOUSANDS) BALANCE SHEET AT DEC. 31, 2019 AT DEC. 31, 2018 Commodity related contracts FTRs Current Energy risk management assets $ 6,822 $ 23,355 Current Energy risk management liabilities 1,044 468 Other commodity derivatives Current Energy risk management assets 201 — Current Energy risk management liabilities 3,069 — Non-current Other deferred credits 2,304 — Commodity-related contracts, net $ 606 $ 22,887 Cleco Power DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS (THOUSANDS) BALANCE SHEET AT DEC. 31, 2019 AT DEC. 31, 2018 Commodity related contracts FTRs Current Energy risk management assets $ 6,311 $ 23,355 Current Energy risk management liabilities 586 468 Commodity-related contracts, net $ 5,725 $ 22,887 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, 2019, 2018, and 2017: Cleco AMOUNT OF GAIN/(LOSS) RECOGNIZED IN INCOME ON DERIVATIVES FOR THE YEAR ENDED DEC. 31, (THOUSANDS) DERIVATIVES 2019 2018 2017 Commodity contracts FTRs (1) Electric operations $ 13,043 $ 39,659 $ 23,826 FTRs (1) Purchased power (15,685 ) (4,566 ) (5,509 Other commodity derivatives Fuel used for electric generation (5,172 ) — — Total $ (7,814 ) $ 35,093 $ 18,317 (1) Cleco Power AMOUNT OF GAIN/(LOSS) FOR THE YEAR ENDED DEC. 31, (THOUSANDS) DERIVATIVES 2019 2018 2017 Commodity contracts FTRs (1) Electric operations $ 13,047 $ 39,659 $ 23,826 FTRs (1) Purchased power (6,066 ) (4,566 ) (5,509 ) Total $ 6,981 $ 35,093 $ 18,317 (1) The total volume of FTRs that Cleco Power had outstanding at December 31, 2019, and 2018 was 9.2 million MWh and 8.7 million MWh, respectively. The total volume of FTRs that Cleco had outstanding at December 31, 2019, and 2018 was 14.6 million MWh and 8.7 million MWh, respectively. At December 31, 2019, Cleco had 58.5 million MMBtus outstanding in other commodity derivatives. |
Debt (Q1)
Debt (Q1) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Debt Disclosure [Abstract] | ||
Debt | Note 8 — Debt On March 2, 2020, Cleco Power made the final $11.1 million principal payment and completed the repayment in full of its Cleco Katrina/Rita storm recovery bonds issued in March 2008. On May 1, 2020, Cleco Power repriced at a mandatory tender date its $50.0 million 2008 series A GO Zone bonds and entered into a new interest rate period with a mandatory tender date of May 1, 2025. The interest rate for the new interest rate period is fixed at 2.50% per annum. At March 31, 2020, Cleco Holdings had $88.0 million of borrowings outstanding under its $175.0 million credit facility at an all-in interest rate of 2.50%. The borrowing costs under the facility are equal to LIBOR plus 1.75% or ABR plus 0.75%, plus commitment fees of 0.275%. At March 31, 2020, Cleco Power had $150.0 million of borrowings outstanding under its $300.0 million credit facility at an all-in interest rate of 1.875%. The borrowing costs under the facility are equal to LIBOR plus 1.125% or ABR plus 0.125%, plus commitment fees of 0.125%. | Note 9 — Debt Cleco Power’s total indebtedness as of December 31, 2019, and 2018 was as follows: Cleco Power AT DEC. 31, (THOUSANDS) 2019 2018 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 Series A GO Zone bonds, 2.00%, due 2038, mandatory tender in 2020 50,000 50,000 Series B GO Zone bonds, 4.25%, due 2038 50,000 50,000 Cleco Katrina/Rita’s storm recovery bonds, 5.61%, due 2023 11,055 31,625 Total bonds 1,386,055 1,406,625 Finance leases Barge lease obligations 15,861 16,418 Gross amount of long-term debt and finance leases 1,401,916 1,423,043 Less: long-term debt due within one year 60,970 20,571 Less: finance leases classified as long-term debt due within one year 617 557 Unamortized debt discount (5,368 ) (5,695 ) Unamortized debt issuance costs (7,589 ) (8,446 ) Total long-term debt and finance leases, net $ 1,327,372 $ 1,387,774 Cleco’s total indebtedness as of December 31, 2019, and 2018 was as follows: Cleco AT DEC. 31, (THOUSANDS) 2019 2018 Total Cleco Power long term debt and finance leases, net $ 1,327,372 $ 1,387,774 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 — Senior notes, 4.973%, due 2046 350,000 350,000 Bank term loan, variable rate, due 2021 300,000 300,000 Bank term loan, variable rate, due 2021 30,000 — Long-term debt due within one year (64,398 ) — Unamortized debt issuance costs (1) (6,271 ) (1,989 ) Fair value adjustment 127,976 138,700 Total Cleco long-term debt and finance leases, net $ 3,064,679 $ 2,874,485 (1) The principal amounts payable under long-term debt agreements for each year through 2024 and thereafter are as follows: (THOUSANDS) CLECO CLECO POWER For the year ending Dec. 31 2020 (1) $ 11,055 $ 11,055 2021 $ 330,000 $ — 2022 $ 25,000 $ 25,000 2023 $ 265,000 $ 100,000 2024 $ 50,000 $ 50,000 Thereafter $ 2,385,000 $ 1,200,000 (1) The principal amounts payable under the finance lease agreement for each year through 2024 and thereafter are as follows: (THOUSANDS) CLECO CLECO POWER For the year ending Dec. 31 2020 $ 617 $ 617 2021 $ 682 $ 682 2022 $ 755 $ 755 2023 $ 836 $ 836 2024 $ 925 $ 925 Thereafter $ 12,046 $ 12,046 Cleco Power Debt Cleco Power had no short-term debt outstanding at December 31, 2019, and 2018. At December 31, 2019, Cleco Power’s long-term debt and finance leases outstanding was $1.39 billion, of which $61.6 million was due within one year. The long-term debt due within one year at December 31, 2019, primarily represents $50.0 million of GO Zone bonds with a mandatory tender in May 2020 and $11.0 million of principal payments for the Cleco Katrina/Rita storm recovery bonds. On March 2, 2020, Cleco Power completed the repayment of its Cleco Katrina/Rita storm recovery bonds issued in March 2008. Cleco Debt Cleco had no short-term debt outstanding at December 31, 2019, and 2018. At December 31, 2019, Cleco’s long-term debt and finance leases outstanding was $3.19 billion, of which $126.0 million was due within one year. The long-term debt due within one year at December 31, 2019, primarily represents $63.3 million of principal payments on Cleco Holdings’ debt as required by the Cleco Cajun Transaction commitments to the LPSC, $50.0 million of GO Zone bonds with a mandatory tender in May 2020, and $11.0 million of principal payments for the Cleco Katrina/Rita storm recovery bonds. In connection with the Cleco Cajun Transaction on February 4, 2019, Cleco Holdings borrowed $300.0 million under a new bridge loan agreement and $100.0 million under a new term loan agreement. Both loan agreements are variable rate debt and have a three-year term. Both loan agreements contain certain financial covenants, including requiring Cleco Holdings to maintain (i) a debt to capital ratio (as defined in the applicable agreement) below 65% and (ii) a rating applicable to Cleco’s senior debt rating (as defined in the applicable agreement). On September 11, 2019, Cleco Holdings completed the private placement of $300.0 million aggregate principal amount of its 3.375% senior notes due September 15, 2029. The proceeds from the issuance were used to repay the remaining amounts due under the $300.0 million bridge loan agreement and to repay a portion of the $100.0 million term loan agreement. The senior notes are governed by an indenture entered into between Cleco Holdings and a trustee. The indenture contains certain covenants that restrict Cleco Holdings’ ability to merge, consolidate, transfer, or lease all or substantially all of its assets or create or incur certain liens. Upon approval of the Cleco Cajun Transaction, commitments were made to the LPSC by Cleco, including repayment of $400.0 million of Cleco Holdings’ debt by December 31, 2024. As of December 31, 2019, 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, 2019, Cleco had two separate revolving credit facilities, one for Cleco Holdings in the amount of $175.0 million and one for Cleco Power in the amount of $300.0 million, with a maximum aggregate capacity of $475.0 million. In connection with the Cleco Cajun Transaction, on February 4, 2019, Cleco Holdings increased its credit facility capacity by $75.0 million, for a total credit facility of $175.0 million. The credit facility includes restrictive financial covenants and expires in 2021. Under covenants contained in Cleco Holdings’ credit facility, Cleco is required to maintain total indebtedness less than or equal to 65% of total capitalization. At December 31, 2019, $1.01 billion of Cleco’s member’s equity was unrestricted. At December 31, 2019, Cleco Holdings was in compliance with the covenants of its credit facility. The borrowing costs under Cleco Holdings’ credit facility are equal to LIBOR plus 1.75% or ABR plus 0.75%, plus commitment fees of 0.275%. If Cleco Holding’s credit ratings were to be downgraded one level, Cleco Holdings could be required to pay higher fees and additional interest of 0.075% and 0.50%, respectively, under the pricing levels of its credit facility. At December 31, 2019, Cleco Power had a $300.0 million credit facility. The credit facility includes restrictive financial covenants and expires in 2021. Under covenants contained in Cleco Power’s credit facility, Cleco Power is required to maintain total indebtedness less than or equal to 65% of total capitalization. At December 31, 2019, $989.0 million of Cleco Power’s member’s equity was unrestricted. At December 31, 2019, Cleco Power was in compliance with the covenants in its credit facility. The borrowing costs under Cleco Power’s credit facility are equal to LIBOR plus 1.125% or ABR plus 0.125%, plus commitment fees of 0.125%. If Cleco Power’s credit ratings were to be downgraded one level, Cleco Power could be required to pay higher fees and additional interest of 0.05% and 0.125%, respectively, under the pricing levels of its credit facility. If Cleco Holdings or Cleco Power were to default under the covenants in their respective 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 credit facility or other debt agreements, Cleco Holdings would be considered in default under its credit facility. |
Pension Plan and Employee Ben_2
Pension Plan and Employee Benefits (Q1) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Retirement Benefits [Abstract] | ||
Pension Plan and Employee Benefits | Note 9 — Pension Plan and Employee Benefits Pension Plan and Other Benefits Plan Employees hired before August 1, 2007, are covered by a non-contributory, defined benefit pension plan. In September 2019, Cleco made a $12.3 million discretionary contribution to the pension plan. Based on updated funding assumptions at December 31, 2019, management estimates that $66.5 million in pension contributions will be required through 2024. Cleco expects to make a $15.5 million minimum required contribution to the pension plan in 2020. Cleco Power is the plan sponsor and Support Group is the plan administrator. The plan was amended on February 4, 2019, to include certain former NRG Energy employees who are now Cleco Cajun employees. The Cleco Cajun employees are eligible to participate as a cash balance participant and are credited with all service that was credited to them under the NRG Pension Plan as of February 4, 2019. Benefits under the plan amendment reflect an employee’s years of service, age at retirement, and accrued benefit at retirement. Cleco’s retirees may be eligible to receive Other Benefits. Dependents of Cleco’s retirees may also be eligible to receive Other Benefits with the exception of life insurance benefits. The non-service components of net periodic pension and Other Benefits cost are included in Other income (expense), net within Cleco and Cleco Power’s Condensed Consolidated Statements of Income. The components of net periodic pension and Other Benefits cost for the three months ended March 31, 2020, and 2019 were as follows: PENSION BENEFITS OTHER BENEFITS FOR THE THREE MONTHS ENDED MAR. 31, FOR THE THREE MONTHS ENDED MAR. 31, (THOUSANDS) 2020 2019 2020 2019 Components of periodic benefit costs Service cost $ 2,328 $ 2,067 $ 508 $ 288 Interest cost 5,130 5,650 410 400 Expected return on plan assets (6,245 ) (6,622 ) — — Amortizations Prior period service credit (15 ) (18 ) — — Net loss (gain) 3,672 1,875 339 (45 ) Net periodic benefit cost $ 4,870 $ 2,952 $ 1,257 $ 643 Because Cleco Power is the pension plan sponsor and the related trust holds the assets, the net unfunded status of the pension plan is reflected at Cleco Power. The liability of Cleco’s other subsidiaries is transferred with a like amount of assets to Cleco Power monthly. The expense of the pension plan related to Cleco’s other subsidiaries for the three months ended March 31, 2020, was $0.4 million. The expense of the pension plan related to Cleco’s other subsidiaries for the three months ended March 31, 2019, was $0.5 million. Cleco Holdings is the plan sponsor for the other benefit plans. There are no assets set aside in a trust, and the liabilities are reported on the individual subsidiaries’ financial statements. The expense related to other benefits reflected in Cleco Power’s Condensed Consolidated Statements of Income for the three months ended March 31, 2020, was $1.2 million. The expense related to other benefits reflected in Cleco Power’s Condensed Consolidated Statements of Income for the three months ended March 31, 2019, was $0.7 million. The current and non-current portions of the Other Benefits liability for Cleco and Cleco Power at March 31, 2020, and December 31, 2019, were as follows: Cleco (THOUSANDS) AT MAR. 31, 2020 AT DEC. 31, 2019 Current $ 4,401 $ 4,401 Non-current $ 48,175 $ 48,321 Cleco Power (THOUSANDS) AT MAR. 31, 2020 AT DEC. 31, 2019 Current $ 3,815 $ 3,815 Non-current $ 41,994 $ 42,080 SERP Certain Cleco officers are covered by SERP. Cleco does not fund the SERP liability, but instead pays for current benefits out of the general funds available. Cleco Power has formed a rabbi trust. The life insurance policies issued on SERP participants designate the rabbi trust as the beneficiary. Market conditions could have a significant impact on the cash surrender value of the life insurance policies. Proceeds from the life insurance policies are expected to be used to pay the SERP participants’ death benefits, as well as future SERP payments. However, because SERP is a non-qualified plan, the assets of the trust could be used to satisfy general creditors of Cleco Power in the event of insolvency. All SERP benefits are paid out of the general cash available of the respective companies that employed the officer. Cleco Power is the plan sponsor and Support Group is the plan administrator. The non-service components of net periodic benefit cost related to SERP are included in Other income (expense), net within Cleco and Cleco Power’s Condensed Consolidated Statements of Income. The components of the net periodic benefit cost related to SERP for the three months ended March 31, 2020, and 2019 were as follows: FOR THE THREE MONTHS ENDED MAR. 31, (THOUSANDS) 2020 2019 Components of periodic benefit costs Service cost $ 95 $ 113 Interest cost 733 825 Amortizations Prior period service credit (40 ) (35 ) Net loss 757 392 Net periodic benefit cost $ 1,545 $ 1,295 The expense related to SERP reflected on Cleco Power’s Condensed Consolidated Statements of Income for the three months ended March 31, 2020, was $0.2 million. The expense related to SERP reflected on Cleco Power’s Condensed Consolidated Statements of Income for the three months ended March 31, 2019, was $0.3 million. Liabilities relating to SERP are reported on the individual subsidiaries’ financial statements. The current and non-current portions of the SERP liability for Cleco and Cleco Power at March 31, 2020, and December 31, 2019, were as follows: Cleco (THOUSANDS) AT MAR. 31, 2020 AT DEC. 31, 2019 Current $ 4,599 $ 4,599 Non-current $ 84,219 $ 84,529 Cleco Power (THOUSANDS) AT MAR. 31, 2020 AT DEC. 31, 2019 Current $ 760 $ 760 Non-current $ 13,863 $ 13,964 401(k) Plan Cleco’s 401(k) Plan is intended to provide active, eligible employees with voluntary, long-term savings and investment opportunities. The 401(k) Plan is a defined contribution plan and is subject to the applicable provisions of the Employee Retirement Income Security Act of 1974. In accordance with the 401(k) Plan, employer contributions are made in the form of cash. Cash contributions are invested in proportion to the participant’s voluntary contribution investment choices. Participation in the Plan is voluntary, and active Cleco employees are eligible to participate. Cleco’s 401(k) Plan was amended upon the close of the Cleco Cajun Transaction to include Cleco Cajun employees. Cleco’s 401(k) Plan expense for the three months ended March 31, 2020, and 2019 was as follows: FOR THE THREE MONTHS ENDED MAR. 31, (THOUSANDS) 2020 2019 401(k) Plan expense $ 3,256 $ 2,267 Cleco Power is the plan sponsor for the 401(k) Plan. The expense of the 401(k) Plan related to Cleco’s other subsidiaries for the three months ended March 31, 2020, and 2019 was as follows: FOR THE THREE MONTHS ENDED MAR. 31, (THOUSANDS) 2020 2019 401(k) Plan expense $ 1,662 $ 930 | 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 calendar years during the last ten years of employment with Cleco. Cleco’s policy is to base its contributions to the employee pension plan upon actuarial computations utilizing the projected unit credit method, subject to the IRS’s full funding limitation. On September 12, 2019, Cleco made a $12.3 million discretionary contribution to the pension plan. Cleco did not make any required or discretionary contributions to the pension plan in 2018 or 2017. Cleco expects to make $83.0 million discretionary contributions in 2020, which would reduce the future required contributions. The required contributions are driven by liability funding target percentages set by law which could cause the required contributions to be uneven among the years. Based on funding assumptions at December 31, 2019, management estimates that $61.8 million in pension contributions will be required through 2024. Future discretionary contributions may be made depending on changes in assumptions, the ability to utilize the contribution as a tax deduction, and requirements concerning recognizing a minimum pension liability. Adverse changes in assumptions or adverse actual events could cause additional minimum contributions. The ultimate amount and timing of the contributions may be affected by changes in the discount rate, changes in the funding regulations, and actual returns on fund assets. Cleco Power is the plan sponsor and Support Group is the plan administrator. 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. 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, 2019, and 2018 are presented in the following table: PENSION BENEFITS OTHER BENEFITS FOR THE YEAR ENDED DEC. 31, FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2019 2018 2019 2018 Change in benefit obligation Benefit obligation at beginning of period $ 530,936 $ 567,215 $ 40,455 $ 43,203 Service cost 8,414 9,507 1,191 1,320 Interest cost 22,485 20,860 1,646 1,465 Plan participants’ contributions — — 1,229 1,224 Actuarial loss (gain) 73,655 (42,935 ) 13,897 (1,106 ) Expenses paid (2,933 ) (2,786 ) — — Benefits paid (22,234 ) (20,925 ) (5,696 ) (5,651 ) Benefit obligation at end of period 610,323 530,936 52,722 40,455 Change in plan assets Fair value of plan assets at beginning of period 391,933 444,089 — — Actual return on plan assets 81,081 (28,884 ) — — Employer contributions 12,250 — — — Expenses paid (2,933 ) (2,786 ) — — Adjustment — 439 — — Benefits paid (22,234 ) (20,925 ) — — Fair value of plan assets at end of period 460,097 391,933 — — Unfunded status $ (150,226 ) $ (139,003 ) $ (52,722 ) $ (40,455 ) The employee pension plan accumulated benefit obligation at December 31, 2019, and 2018 is presented in the following table: PENSION BENEFITS AT DEC. 31, (THOUSANDS) 2019 2018 Accumulated benefit obligation $ 568,354 $ 491,522 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, 2019, and 2018: PENSION BENEFITS OTHER BENEFITS AT DEC. 31, AT DEC. 31, (THOUSANDS) 2019 2018 2019 2018 Net actuarial loss (gain) occurring during period $ 19,075 $ 9,722 $ 13,897 $ (1,106 ) Net actuarial loss amortized during period $ 7,849 $ 12,313 $ 21 $ 135 Prior service credit amortized during period $ (71 ) $ (71 ) $ — $ — The following table presents net actuarial gains/losses and prior service costs/credits 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 and the amounts expected to be recognized in 2020 for the employee pension plan and Other Benefits plans at December 31, 2020, 2019, and 2018: PENSION BENEFITS OTHER BENEFITS AT DEC. 31, AT DEC. 31, (THOUSANDS) 2020 2019 2018 2020 2019 2018 Net actuarial loss $ 14,824 $ 151,603 $ 140,377 $ 1,355 $ 15,732 $ 1,814 Prior service credit $ (60 ) $ (60 ) $ (131 ) $ — $ — $ — 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 2019, 2018, and 2017 are as follows: PENSION BENEFITS OTHER BENEFITS FOR THE YEAR ENDED DEC. 31, FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2019 2018 2017 2019 2018 2017 Components of periodic benefit costs Service cost $ 8,414 $ 9,507 $ 9,039 $ 1,191 $ 1,320 1,446 Interest cost 22,485 20,860 21,648 1,646 1,465 1,569 Expected return on plan assets (26,502 ) (23,773 ) (24,064 ) — — — Amortizations Prior service credit (71 ) (71 ) (71 ) — — — Net loss (gain) 7,849 12,312 10,008 21 135 (50 ) Net periodic benefit cost $ 12,175 $ 18,835 $ 16,560 2,858 $ 2,920 $ 2,965 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, 2019, 2018, and 2017 was $2.2 million, $2.0 million, and $1.8 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, 2019, 2018, and 2017 was $3.1 million, $3.3 million, and $3.3 million, respectively. The current and non-current portions of the Other Benefits liability for Cleco and Cleco Power at December 31, 2019, and 2018 are as follows: Cleco AT DEC. 31, (THOUSANDS) 2019 2018 Current $ 4,401 $ 4,130 Non-current $ 48,321 $ 36,325 Cleco Power AT DEC. 31, (THOUSANDS) 2019 2018 Current $ 3,815 $ 3,584 Non-current $ 42,080 $ 31,694 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, 2019 2018 2019 2018 Weighted-average assumptions used to determine the benefit obligation Discount rate 3.43 % 4.35 % 3.25 % 4.16 % Rate of compensation increase 2.81 % 2.93 % N/A N/A PENSION BENEFITS OTHER BENEFITS FOR THE YEAR ENDED DEC. 31, FOR THE YEAR ENDED DEC. 31, 2019 2018 2017 2019 2018 2017 Weighted-average assumptions used to determine the net benefit cost Discount rate 4.35 % 3.73 % 4.27 % 4.16 % 3.47 % 3.81 % Expected return on plan assets 6.55 % 5.86 % 6.08 % N/A N/A N/A Rate of compensation increase 2.81 % 2.93 % 2.98 % 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. The result was also compared to the expected rate of return of other comparable plans. 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 2020 periodic expense, Cleco decreased the expected long-term return on plan assets to 5.91%. Cleco expects pension expense to increase in 2020 by approximately $6.0 million due to a decrease in the discount rate and a decrease 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, 2019, 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 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, 2019, and 2018. The following tables disclose the pension plan’s fair value of financial assets measured on a recurring basis: (THOUSANDS) AT DEC. 31, 2019 QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) Asset Description Cash equivalents $ 4,810 $ — $ 4,810 $ — Government securities 19,517 — 19,517 — Mutual funds Domestic 102,184 102,184 — — International 53,041 53,041 — — Real estate funds 18,017 — — 18,017 Corporate debt 157,109 — 157,109 — Total $ 354,678 $ 155,225 $ 181,436 $ 18,017 Investments measured at net asset value* 103,326 Interest accrual 2,093 Total net assets $ 460,097 *Investments measured at net asset value consist of Common/collective trust. (THOUSANDS) AT DEC. 31, 2018 QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) Asset Description Cash equivalents $ 2,471 $ — $ 2,471 $ — Common stock 13,111 13,111 — — Government securities 19,831 — 19,831 — Mutual funds Domestic 79,210 79,210 — — International 43,418 43,418 — — Real estate funds 20,298 — — 20,298 Corporate debt 138,391 — 138,391 — Total $ 316,730 $ 135,739 $ 160,693 $ 20,298 Investments measured at net asset value* 73,100 Interest accrual 2,103 Total net assets $ 391,933 *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, 2019, and 2018: (THOUSANDS) Balance, Dec. 31, 2017 $ 19,195 Realized losses 29 Unrealized gains 391 Purchases 710 Sales (27 ) Balance, Dec. 31, 2018 $ 20,298 Realized gains 370 Unrealized losses (1,727 ) Purchases 759 Sales (1,683 ) Balance, Dec. 31, 2019 $ 18,017 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 2019, the return on plan assets was 22.17% compared to an expected long-term return of 6.55%. The 2018 return on pension plan assets was (7.31)% compared to an expected long-term return of 5.86%. As of December 31, 2019, 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 three- to five-year 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, Customer Index related to Multi-Asset Credit asset class, Bloomberg Barclays Capital Long Credit Index, Bloomberg Barclays 15+ Year Treasury STRIPS, 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 of a 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 in any one economic sector should not exceed the lesser of three times the sector’s weighting in the S&P 500 Index or 35% of the portfolio. • Equity holdings should represent at least 90% 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 entities denominated in U.S. dollars are limited to 10%. Securities denominated in currencies other than U.S. dollars are not permitted. • The purchase of securities on margin and short sales is prohibited. International Equity - Developed Markets Portfolios • Equity holdings of 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 stocks should be owned. • Equity holdings in any industry sector should not exceed 35%. • 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 should not exceed 10% of the manager’s portfolio. • A minimum of 30 individual stocks should be owned. • Equity holdings of a single industry should not exceed 25%. • Equity investments must represent at least 75% of the manager’s portfolio. • A minimum of three countries should be represented within the manager’s portfolio. • Illiquid securities which are not readily marketable may represent no more than 10% of the manager’s portfolio. • 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 • Permitted assets include U.S. government and agency securities, corporate securities, mortgage-backed securities, investment-grade private placements, surplus notes, trust preferred, e-caps and hybrids, money-market securities, and senior and subordinated debt. • At least 90% of securities must be U.S. dollar denominated. • At least 70% of the securities must be investment-grade credit. • Securities must have a maximum position size of 5% for A rated securities and 3% for BBB rated securities. • The duration of the portfolio must be within +/- 1 year of benchmark. • 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 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 and Treasury STRIPS manger(s) are exempt from the prohibition on derivatives use, due to the nature of long duration fixed income management. Currency hedging is permitted for international investing. The investment manager of affiliated securities 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, 2019: PERCENT OF TOTAL PLAN ASSETS AT DEC. 31, 2019 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 2020 and remains at 5.0% thereafter. The rate used for 2019 was also 5.0%. Assumed health care cost trend rates have a limited effect on the amount reported for Cleco’s health care plans. A one-percentage point change in assumed health care cost trend rates would have the following effects on Other Benefits: ONE-PERCENTAGE POINT (THOUSANDS) INCREASE DECREASE Effect on total of service and interest cost components $ 14 $ (16 ) Effect on postretirement benefit obligation $ 205 $ (229 ) The projected benefit payments for the employee pension plan and Other Benefits obligation plan for each year through 2024 and the next five years thereafter are listed in the following table: (THOUSANDS) PENSION BENEFITS OTHER BENEFITS, GROSS For the year ending Dec. 31, 2020 $ 24,065 $ 4,472 2021 $ 25,293 $ 4,498 2022 $ 26,541 $ 4,554 2023 $ 27,709 $ 4,536 2024 $ 28,741 $ 4,531 Next five years $ 158,810 $ 21,706 SERP Certain Cleco officers are covered by SERP. In 2014, SERP was closed to new participants; however, with regard to current SERP participants, including former employees or their beneficiaries, all terms of SERP will continue, other than as described below. SERP is a non-qualified, non-contributory, defined benefit pension plan. Generally, benefits under the plan reflect an employee’s years of service, age at retirement, and the sum of (a) the highest base salary paid out over the last five calendar years and (b) the average of the five highest cash bonuses paid during the 60 months prior to retirement. SERP benefits are reduced by retirement benefits received from any other defined benefit pension plan, supplemental executive retirement plan, or Cleco contributions under the enhanced 401(k) Plan to the extent such contributions exceed the amount the employee would have received under the terms of the original 401(k) Plan. Two executive officers’ SERP benefits were capped as of December 31, 2017, with regard to final compensation; however, adjustments will continue with regard to age and tenure with Cleco. Additionally, these executive officers had their annual bonuses set at target rather than actual awards for 2017 for the average incentive award portion of their SERP benefit calculation. A third executive officer’s SERP benefit amount will be set at a specified amount based upon the year of separation. Management reviews current market trends as it evaluates Cleco’s future compensation strategy. Cleco does not fund the SERP liability, but instead pays for current benefits out of the general funds available. Cleco Power has formed a rabbi trust. The life insurance policies issued on SERP participants designate the rabbi trust as the beneficiary. Market conditions could have a significant impact on the cash surrender value of the life insurance policies. Proceeds from the life insurance policies are expected to be used to pay the SERP participants’ death benefits, as well as future SERP payments. However, because SERP is a non-qualified plan, the assets of the trust could be used to satisfy general creditors of Cleco Power in the event of insolvency. All SERP benefits are paid out of the general cash available of the respective companies that employed the officer. Cleco Power is the plan sponsor and Support Group is the plan administrator. SERP’s funded status at December 31, 2019, and 2018 is presented in the following table: SERP BENEFITS FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2019 2018 Change in benefit obligation Benefit obligation at beginning of period $ 78,414 $ 84,339 Service cost 330 542 Interest cost 3,326 3,077 Actuarial loss (gain) 11,608 (5,163 ) Benefits paid (4,550 ) (4,381 ) Benefit obligation at end of period $ 89,128 $ 78,414 SERP’s accumulated benefit obligation at December 31, 2019, and 2018 is presented in the following table: SERP BENEFITS AT DEC. 31, (THOUSANDS) 2019 2018 Accumulated benefit obligation $ 89,128 $ 78,414 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, 2019, and 2018: SERP BENEFITS FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2019 2018 Net actuarial loss (gain) occurring during year $ 11,608 $ (5,163 ) Net actuarial loss amortized during year $ 1,544 $ 2,913 Prior service credit amortized during year $ (160 ) $ (160 ) 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 and the amounts expected to be recognized in 2020 for SERP at December 31, 2020, 2019, and 2018: SERP BENEFITS AT DEC. 31, (THOUSANDS) 2020 2019 2018 Net actuarial loss $ 3,171 $ 28,731 $ 17,261 Prior service credit $ (160 ) $ (1,678 ) $ (1,837 ) 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 2019, 2018, and 2017 are as follows: SERP BENEFITS FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2019 2018 2017 Components of periodic benefit costs Service cost $ 330 $ 542 $ 494 Interest cost 3,326 3,077 3,239 Amortizations Prior service credit (160 ) (160 ) (190 ) Net loss 1,544 2,913 2,105 Net periodic benefit cost 5,040 6,372 5,648 Special/contractual termination benefits — — 315 Total benefit cost $ 5,040 $ 6,372 $ 5,963 There was a remeasurement of SERP at March 30, 2017, to reflect a special termination benefit resulting from an executive officer’s separation agreement. On the date of the remeasurement, the discount rate decreased from 4.22% to 4.08%. This remeasurement resulted in a special termination benefit for the executive officer of $0.3 million. The 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, 2019 2018 Weighted-average assumptions used to determine the benefit obligation Discount rate 3.37 % 4.34 % Rate of compensation increase 5.00 % 5.00 % SERP BENEFITS JAN. 1, 2019 - DEC. 31, 2019 JAN. 1, 2018 - DEC. 31, 2018 MAR. 31, 2017 - DEC. 31, 2017 JAN. 1, 2017 - MAR. 30, 2017 Weighted-average assumptions used to determine the net benefit cost Discount rate 4.34 % 3.70 % 4.08 % 4.22 % Rate of compensation increase 5.00 % 5.00 % 5.00 % 5.00 % The expense related to SERP reflected on Cleco Power’s Consolidated Statements of Income for the years ended December 31, 2019, 2018, and 2017 was $0.8 million, $1.4 million, and $1.3 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, 2019, and 2018 are as follows: Cleco AT DEC. 31, (THOUSANDS) 2019 2018 Current $ 4,599 $ 4,478 Non-current $ 84,529 $ 73,936 Cleco Power AT DEC. 31, (THOUSANDS) 2019 2018 Current $ 760 $ 930 Non-current $ 13,964 $ 12,025 The projected benefit payments for SERP for each year through 2024 and the next five years thereafter are shown in the following table: (THOUSANDS) 2020 2021 2022 2023 2024 NEXT FIVE YEARS SERP $ 4,662 $ 4,689 $ 4,698 $ 4,710 $ 4,753 $ 24,861 401(k) Plan Cleco’s 401(k) Plan is intended to provide active, eligible employees with voluntary, long-term savings and investment opportunities. The 401(k) Plan is a defined contribution plan and is subject to the applicable provisions of the Employee Retirement Income Security Act of 1974. In accordance with the 401(k) Plan, employer contributions are made in the form of cash. Cash contributions are invested in proportion to the participant’s voluntary contribution investment choices. Participation in the Plan is voluntary and active Cleco employees are eligible to participate. Cleco’s 401(k) was amended upon the close of the Cleco Cajun Transaction to include Cleco Cajun employees. Cleco’s 401(k) Plan expense for the years ended December 31, 2019, 2018, and 2017 was as follows: FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2019 2018 2017 401(k) Plan expense $ 7,861 $ 5,884 $ 5,386 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, 2019, 2018, and 2017 was as follows: FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2019 2018 2017 401(k) Plan expense $ 3,408 $ 1,066 $ 888 |
Income Taxes (Q1)
Income Taxes (Q1) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Income Taxes | Note 10 — Income Taxes Effective Tax Rates The following tables summarize the effective income tax rates for Cleco and Cleco Power for the three months ended March 31, 2020, and 2019: Cleco FOR THE THREE MONTHS ENDED MAR. 31, 2020 2019 Effective tax rate 19.8 % 22.6 % Cleco Power FOR THE THREE MONTHS ENDED MAR. 31, 2020 2019 Effective tax rate 22.0 % 23.0 % For the three months ended March 31, 2020, and 2019, the effective income tax rates for both Cleco and Cleco Power were different than the federal statutory rate primarily due to permanent tax differences; the flowthrough of tax benefits, including AFUDC equity; and state tax expense. Net Operating Loss For the 2019 tax year, Cleco created approximately $551.4 million and $82.6 million of federal and state net operating losses, respectively, primarily due to the Cleco Cajun Transaction. The federal net operating loss may be carried forward indefinitely, and state net operating loss carryforwards will begin to expire in 2039. Cleco considers it more likely than not that these income tax losses will be utilized to reduce future income tax payments and utilize the entire net operating loss carryforward within the statutory deadlines. Uncertain Tax Positions Cleco classifies all interest related to uncertain tax positions as a component of interest payable and interest expense. At March 31, 2020, and December 31, 2019, Cleco and Cleco Power had no liability for uncertain tax positions or interest payable related to uncertain tax positions. Cleco estimates that it is reasonably possible that the balance of unrecognized tax benefits as of March 31, 2020, for Cleco and Cleco Power would be unchanged in the next 12 months. The settlement of open tax years could involve the payment of additional taxes, and/or the recognition of tax benefits, which may have an effect on Cleco’s effective tax rate. Income Tax Audits Cleco participates in the IRS’s Compliance Assurance Process in which financial results are examined and agreed upon prior to filing the federal consolidated tax return. While the statute of limitations remains open for tax years 2016, 2017, and 2018, management believes the likelihood of further examination by the IRS is remote. The state income tax years 2016, 2017, and 2018 remain subject to examination by the Louisiana Department of Revenue. Cleco classifies income tax penalties as a component of other expense. For the three months ended March 31, 2020, and 2019, no penalties were recognized. Coronavirus Aid, Relief and Economic Security (CARES Act) On March 27, 2020, the CARES Act was enacted and signed into law in response to the COVID-19 pandemic. Among other provisions, the CARES Act includes modifications on the limitations of business interest for the 2019 and 2020 tax years. The modifications increase the allowable business interest deduction from 30% to 50% of adjusted taxable income. The modification increased Cleco’s allowable interest expense deduction and, as a result, decreased taxable income, creating larger net operating loss carryforwards for the tax year ended December 31, 2019. As a result of the CARES Act, Cleco does not expect any disallowed interest for the 2019 and 2020 tax years. | Note 11 — Income Taxes Cleco For the years ended December 31, 2019, and 2018, income tax expense was higher than the amount computed by applying the statutory federal rate. For the year ended December 31, 2017, income tax expense was lower than the amount computed by applying the statutory federal rate. The differences are as follows: FOR THE YEAR ENDED DEC. 31, (THOUSANDS, EXCEPT PERCENTAGES) 2019 2018 2017 Income before tax $ 195,830 $ 123,819 $ 145,159 Statutory rate 21.0 % 21.0 % 35.0 % Tax expense at federal statutory rate $ 41,124 $ 26,002 $ 50,806 Increase (decrease) Plant differences, including AFUDC flowthrough (4,687 ) (401 ) 743 State income taxes, net of federal benefit 9,565 6,288 5,047 Return to accrual adjustment (3,963 ) (193 ) (608 ) TCJA — (19 ) (46,291 ) NMTC — (1,578 ) 313 Other, net 1,126 (717 ) (2,931 ) Total tax expense $ 43,165 $ 29,382 $ 7,079 Effective rate 22.0 % 23.7 % 4.9 % Information about current and deferred income tax expense is as follows: FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2019 2018 2017 Current federal income tax expense $ 1,600 $ 15,304 $ 46,520 Deferred federal income tax expense (benefit) 37,963 5,863 (47,329 ) Amortization of accumulated deferred investment tax credits (191 ) (236 ) (662 ) Total federal income tax expense (benefit) $ 39,372 $ 20,931 $ (1,471 ) Current state income tax expense 1,675 7,771 3,187 Deferred state income tax expense 2,118 680 5,363 Total state income tax expense $ 3,793 $ 8,451 $ 8,550 Total federal and state income tax expense $ 43,165 $ 29,382 $ 7,079 Items charged or credited directly to member’s equity Federal deferred (5,130 ) 1,408 (2,380 ) State deferred (1,678 ) 460 (384 ) Total tax (benefit) expense from items charged directly to member’s equity $ (6,808 ) $ 1,868 $ (2,764 ) Total federal and state income tax expense $ 36,357 $ 31,250 $ 4,315 The balance of accumulated deferred federal and state income tax assets and liabilities at December 31, 2019, and 2018 was comprised of the following: AT DEC. 31, (THOUSANDS) 2019 2018 Depreciation and property basis differences $ (862,263 ) $ (664,996 ) Net operating loss carryforward 120,955 — NMTC 92,364 86,673 Fuel costs (3,984 ) (8,339 ) Other comprehensive income 10,612 640 Regulated operations regulatory liability, net 34,836 39,808 Postretirement benefits 22,691 19,580 Merger fair value adjustments (52,957 ) (56,725 ) Other (19,312 ) (24,671 ) Accumulated deferred federal and state income taxes, net $ (657,058 ) $ (608,030 ) Valuation Allowance Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. As of December 31, 2019, and 2018, Cleco had a deferred tax asset resulting from NMTC carryforwards of $92.4 million and $86.9 million, respectively. If the NMTC carryforwards are not utilized, they will begin to expire in 2029. Management considers it more likely than not that all deferred tax assets related to NMTC carryforwards will be realized; therefore, no valuation allowance has been recorded. Net Operating Losses For the 2019 tax year, Cleco created approximately $536.5 million and $68.7 million of federal and state net operating losses, respectively, primarily due to the Cleco Cajun Transaction. The federal net operating loss may be carried forward indefinitely, and state net operating loss carryforwards will begin to expire in 2039. Cleco considers it more likely than not that these income tax losses will be utilized to reduce future income tax payments and utilize the entire net operating loss carryforward within the statutory deadlines. Cleco Power For the years ended December 31, 2019, and 2018, income tax expense was higher than the amount computed by applying the statutory rate. For the year ended December 31, 2017, income tax expense was lower than the amount computed by applying the statutory federal rate to income before tax. The differences are as follows: FOR THE YEAR ENDED DEC. 31, (THOUSANDS, EXCEPT PERCENTAGES) 2019 2018 2017 Income before tax $ 193,714 $ 218,181 $ 218,069 Statutory rate 21.0 % 21.0 % 35.0 % Tax expense at federal statutory rate $ 40,680 $ 45,818 $ 76,324 Increase (decrease) Plant differences, including AFUDC flowthrough (4,687 ) (401 ) 743 State income taxes, net of federal benefit 11,683 11,080 7,583 Return to accrual adjustment (2,008 ) 483 (284 ) TCJA — (19 ) (14,292 ) Other, net (216 ) (1,037 ) (2,743 ) Total taxes $ 45,452 $ 55,924 $ 67,331 Effective rate 23.5 % 25.6 % 30.9 % Information about current and deferred income tax expense is as follows: FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2019 2018 2017 Current federal income tax expense $ 14,781 $ 44,411 $ 87,433 Deferred federal income tax expense (benefit) 22,443 (9,033 ) (29,190 ) Amortization of accumulated deferred investment tax credits (191 ) (236 ) (662 ) Total federal income tax expense $ 37,033 $ 35,142 $ 57,581 Current state income tax expense 9,063 23,293 14,751 Deferred state income tax benefit (644 ) (2,511 ) (5,001 ) Total state income tax expense $ 8,419 $ 20,782 $ 9,750 Total federal and state income taxes $ 45,452 $ 55,924 $ 67,331 Items charged or credited directly to members’ equity Federal deferred (2,500 ) 797 (141 ) State deferred (818 ) 261 (23 ) Total tax (benefit) expense from items charged directly to member’s equity $ (3,318 ) $ 1,058 $ (164 ) Total federal and state income tax expense $ 42,134 $ 56,982 $ 67,167 The balance of accumulated deferred federal and state income tax assets and liabilities at December 31, 2019, and 2018 was comprised of the following: AT DEC. 31, (THOUSANDS) 2019 2018 Depreciation and property basis differences $ (705,423 ) $ (666,224 ) Net operating loss carryforward 2,714 — Fuel costs (5,608 ) (8,339 ) Other comprehensive income 7,510 4,192 Regulated operations regulatory liability, net 34,836 39,808 Postretirement benefits 10,044 11,081 Other (1,907 ) (11,283 ) Accumulated deferred federal and state income taxes, net $ (657,834 ) $ (630,765 ) 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. Management considers it more likely than not that all deferred tax assets will be realized; therefore, no valuation allowance has been recorded. Uncertain Tax Positions Cleco classifies all interest related to uncertain tax positions as a component of interest payable and interest expense. At December 31, 2019, and 2018, Cleco and Cleco Power had no interest payable related to uncertain tax positions. For the years ended December 31, 2019, 2018, and 2017, Cleco and Cleco Power had no interest expense related to uncertain tax positions. At December 31, 2019, and 2018, Cleco and Cleco Power had no liability for unrecognized tax positions. Cleco estimates that it is reasonably possible that the balance of unrecognized tax benefits as of December 31, 2019, for Cleco and Cleco Power would be unchanged in the next 12 months. The settlement of open tax years could involve the payment of additional taxes, and/or the recognition of tax benefits, which may affect Cleco’s effective income tax rate. Income Tax Audits Cleco participates in the IRS’s Compliance Assurance Process in which financial results are examined and agreed upon prior to filing federal consolidated tax returns. The 2018 federal income tax year remains subject to examination by the IRS. While the statute of limitations remains open for tax years 2016 and 2017 until 2020 and 2021, respectively, management believes the likelihood of further examination by the IRS is remote. The state income tax years 2016, 2017, and 2018 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, 2019, and 2018, no penalties were recognized. TCJA On December 22, 2017, the President signed into law the TCJA. 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%. The SEC Staff recognized the complexity of reflecting the impacts of the TCJA and issued guidance which clarified accounting for income taxes and allowed for up to one year to complete the required analysis and accounting (the measurement period). During the fourth quarter of 2018, Cleco finalized the remeasurement of and accounting for the effects of the TCJA, which resulted in a total net reduction in the ADIT liability for Cleco and Cleco Power of $421.2 million and $389.3 million, respectively. For more information on the regulatory treatment of the TCJA regulatory liability, see Note 6 — “Regulatory Assets and Liabilities — Income Taxes” and Note 13 — “Regulation and Rates — TCJA.” Additionally, as a result of the TCJA, effective for tax years beginning after December 31, 2017, corporations are no longer subject to the alternative minimum tax (AMT). For companies with unused AMT credits, the credits may be carried forward and used as refundable credits for tax years beginning after 2017, but before 2022. Cleco expects its unused AMT credits will be fully utilized by December 31, 2021. During 2018, Cleco’s $7.6 million of unused tax credits were reclassed from Accumulated deferred federal and state income taxes, net to Taxes payable, net and Other deferred charges on Cleco’s Consolidated Balance Sheets. At December 31, 2019, and 2018, Cleco had $1.4 million and $3.8 million in AMT credits recorded in Taxes payable, net on Cleco’s Consolidated Balance Sheets for the current amount of credits expected to be utilized. At December 31, 2019, and 2018, Cleco had $1.4 million and $3.8 million in non-current AMT credits recorded in Other deferred charges on Cleco’s Consolidated Balance Sheets. |
Disclosures about Segments (Q1)
Disclosures about Segments (Q1) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting [Abstract] | ||
Disclosures about Segments | Note 11 — Disclosures about Segments Cleco’s reportable segments are based on its method of internal reporting, which disaggregates business units by its first-tier subsidiary. Cleco’s reportable segments are Cleco Power and Cleco Cajun. Each reportable segment engages in business activities from which it earns revenue and incurs expenses. Segment managers report periodically to Cleco’s CEO with discrete financial information and, at least quarterly, present discrete financial information to Cleco and Cleco Power’s Boards of Managers. The reportable segment prepares budgets that are presented to and approved by Cleco and Cleco Power’s Boards of Managers. The column shown as Other in the following tables includes the holding company, a shared services subsidiary, 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 transaction, see Note 2 — “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. Management evaluates the performance of its segments and allocates resources to them based on segment profit and the requirements to implement strategic initiatives and projects to meet current business objectives. Material intercompany transactions occur on a regular basis. These intercompany transactions relate primarily to joint and common administrative support services as well as transmission services provided by Cleco Power to Cleco Cajun. Segment Information For The Three Months Ended Mar. 31, 2020 (THOUSANDS) CLECO POWER CLECO CAJUN OTHER ELIMINATIONS CONSOLIDATED Revenue Electric operations $ 224,430 $ 89,147 $ (2,420 ) $ — $ 311,157 Other operations 15,764 30,961 1 (1,818 ) 44,908 Affiliate revenue 1,106 161 29,278 (30,545 ) — Electric customer credits (8,340 ) (153 ) — — (8,493 ) Operating revenue, net $ 232,960 $ 120,116 $ 26,859 $ (32,363 ) $ 347,572 Depreciation and amortization $ 43,677 $ 10,103 $ 2,094 $ (1 ) $ 55,873 Interest income $ 954 $ 155 $ 100 $ (52 ) $ 1,157 Interest charges $ 18,581 $ 10 $ 16,610 $ (52 ) $ 35,149 Federal and state income tax expense (benefit) $ 3,338 $ 6,421 $ (8,197 ) $ — $ 1,562 Net income (loss) $ 11,831 $ 19,535 $ (25,039 ) $ 1 $ 6,328 Additions to property, plant, and equipment $ 61,477 $ 3,341 $ 806 $ — $ 65,624 Equity investment in investees $ 17,072 $ — $ — $ — $ 17,072 Goodwill $ 1,490,797 $ — $ — $ — $ 1,490,797 Total segment assets $ 6,098,446 $ 1,020,099 $ 616,068 $ (58,418 ) $ 7,676,195 2019 (THOUSANDS) CLECO POWER CLECO CAJUN OTHER ELIMINATIONS CONSOLIDATED Revenue Electric operations $ 257,175 $ 58,194 $ (2,420 ) $ — $ 312,949 Other operations 19,430 19,965 2 — 39,397 Affiliate revenue 300 — 26,535 (26,835 ) — Electric customer credits (8,160 ) — — — (8,160 ) Operating revenue, net $ 268,745 $ 78,159 $ 24,117 $ (26,835 ) $ 344,186 Depreciation and amortization $ 42,377 $ 5,410 $ 2,069 $ — $ 49,856 Interest income $ 994 $ 254 $ 417 $ (174 ) $ 1,491 Interest charges $ 17,145 $ — $ 17,028 $ (174 ) $ 33,999 Federal and state income tax expense (benefit) $ 7,998 $ 3,529 $ (5,540 ) $ (1 ) $ 5,986 Net income (loss) $ 26,712 $ 11,056 $ (17,210 ) $ (1 ) $ 20,557 Additions to property, plant, and equipment $ 81,040 $ 1,530 $ 1,109 $ — $ 83,679 Equity investment in investees (1) $ 17,072 $ — $ — $ — $ 17,072 Goodwill (1) $ 1,490,797 $ — $ — $ — $ 1,490,797 Total segment assets (1) $ 5,967,327 $ 1,011,591 $ 546,096 $ (48,716 ) $ 7,476,298 (1) | Note 12 — Disclosures about Segment 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 with discrete financial information and, at least quarterly, present discrete financial information to Cleco and Cleco Power’s Boards of Managers. The reportable segment prepares budgets that are presented to and approved by Cleco and Cleco Power’s Boards of Managers. The column shown as Other in the following tables includes the holding company, a shared services subsidiary, an investment subsidiary, and a subsidiary formed to facilitate the Cleco Cajun Transaction. Upon the completion of the Cleco Cajun Transaction on February 4, 2019, Cleco Cajun became a new reportable segment. For more information on the transaction, see Note 3 — “Business Combinations.” The financial results in the following tables are presented on an accrual basis. The historical segment information was not recast because the Cleco Cajun segment only consists of the newly acquired business. There were no other changes to Cleco’s existing reportable segments. Management evaluates the performance of its segments and allocates resources to them based on segment profit and the requirements to implement strategic initiatives and projects to meet current business objectives. Material intercompany transactions occur on a regular basis. These intercompany transactions relate primarily to joint and common administrative support services as well as transmission services provided by Cleco Power to Cleco Cajun. SEGMENT INFORMATION FOR THE YEAR ENDED DEC. 31, 2019 (THOUSANDS) CLECO POWER CLECO CAJUN OTHER ELIMINATIONS CONSOLIDATED Revenue Electric operations $ 1,130,928 $ 375,489 $ (9,680 ) $ (1 ) $ 1,496,736 Other operations 72,833 117,468 2 (7,471 ) 182,832 Affiliate revenue 3,125 108 109,067 (112,300 ) — Electric customer credits (38,516 ) (1,447 ) — — (39,963 ) Operating revenue, net $ 1,168,370 $ 491,618 $ 99,389 $ (119,772 ) $ 1,639,605 Depreciation and amortization $ 172,471 $ 35,544 $ 8,305 $ — $ 216,320 Merger transaction and commitment costs $ — $ — $ 7,668 $ — $ 7,668 Interest income $ 4,744 $ 987 $ 974 $ (615 ) $ 6,090 Interest charges $ 71,279 $ 35 $ 70,611 $ (616 ) $ 141,309 Net income (loss) $ 148,262 $ 69,411 $ (65,009 ) $ 1 $ 152,665 Additions to property, plant, and equipment $ 313,962 $ 9,174 $ 655 $ — $ 323,791 Equity investment in investee $ 17,072 $ — $ — $ — $ 17,072 Goodwill $ 1,490,797 $ — $ — $ — $ 1,490,797 Total segment assets $ 5,967,327 $ 1,011,591 $ 546,096 $ (48,716 ) $ 7,476,298 FOR THE YEAR ENDED DEC. 31, 2018 (THOUSANDS) CLECO POWER OTHER ELIMINATIONS CONSOLIDATED Revenue Electric operations $ 1,191,587 $ (9,680 ) $ — $ 1,181,907 Other operations 82,330 2 — 82,332 Affiliate revenue 874 74,591 (75,465 ) — Electric customer credits (33,195 ) — — (33,195 ) Operating revenue, net $ 1,241,596 $ 64,913 $ (75,465 ) $ 1,231,044 Depreciation and amortization $ 162,069 $ 8,344 $ 1 $ 170,414 Merger transaction and commitment costs $ — $ 19,514 $ — $ 19,514 Interest income $ 5,052 $ 1,338 $ (317 ) $ 6,073 Interest charges $ 71,303 $ 55,659 $ (320 ) $ 126,642 Federal and state income tax expense (benefit) $ 55,924 $ (26,541 ) $ (1 ) $ 29,382 Net income (loss) $ 162,257 $ (67,819 ) $ (1 ) $ 94,437 Additions to property, plant, and equipment $ 289,153 $ 1,908 $ — $ 291,061 Equity investment in investee $ 18,172 $ — $ — $ 18,172 Goodwill $ 1,490,797 $ — $ — $ 1,490,797 Total segment assets $ 5,839,853 $ 633,756 $ (36,795 ) $ 6,436,814 FOR THE YEAR ENDED DEC. 31, 2017 (THOUSANDS) CLECO POWER OTHER ELIMINATIONS CONSOLIDATED Revenue Electric operations $ 1,108,389 $ (10,757 ) $ — $ 1,097,632 Other operations 77,522 2,058 — 79,580 Affiliate revenue 851 57,168 (58,019 ) — Electric customer credits (1,566 ) — — (1,566 ) Operating revenue, net $ 1,185,196 $ 48,469 $ (58,019 ) $ 1,175,646 Depreciation and amortization $ 158,415 $ 8,439 $ — $ 166,854 Merger transaction and commitment costs $ — $ 5,445 $ (293 ) $ 5,152 Interest income $ 1,283 $ 316 $ (175 ) $ 1,424 Interest charges $ 69,362 $ 53,725 $ (174 ) $ 122,913 Federal and state income tax expense (benefit) $ 67,331 $ (60,252 ) $ — $ 7,079 Net income (loss) $ 150,738 $ (12,659 ) $ 1 $ 138,080 Additions to property, plant, and equipment $ 235,252 $ 1,680 $ — $ 236,932 Equity investment in investee $ 18,172 $ — $ — $ 18,172 Goodwill $ 1,490,797 $ — $ — $ 1,490,797 Total segment assets $ 5,679,538 $ 619,943 $ (21,099 ) $ 6,278,382 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 (Q1)
Regulation and Rates (Q1) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Regulated Operations [Abstract] | ||
Regulation and Rates | Note 12 — Regulation and Rates At March 31, 2020, Provision for rate refund on Cleco and Cleco Power’s Condensed Consolidated Balance Sheets consisted primarily of $19.7 million for the estimated refund for the tax-related benefits from the TCJA, $3.5 million for the estimated refund related to the FERC audit, $2.2 million for the cost of service savings refunds, and $1.0 million for the change in transmission ROE. For more information about the FERC audit, see Note 14 — “Litigation, Other Commitments and Contingencies, and Disclosures about Guarantees — Litigation — FERC Audit.” Transmission ROE Two complaints were filed with FERC seeking to reduce the ROE component of the transmission rates that MISO transmission owners, including Cleco, may collect under the MISO tariff. As of Cleco Power h FRP Cleco Power’s annual retail earnings are subject to an FRP that was approved by the LPSC in June 2014. Under the terms of Cleco Power’s current FRP, Cleco Power is allowed to earn a target ROE of 10.0%, while providing the opportunity to earn up to 10.9%. Additionally, 60.0% of retail earnings between 10.9% and 11.75%, and all retail earnings over 11.75%, are required to be refunded to customers. The amount of credits due to customers, if any, is determined by Cleco Power and the LPSC, annually. Credits are typically included on customers’ bills the following summer, but the amount and timing of the refunds are ultimately subject to LPSC approval. On June 28, 2019, Cleco Power filed an application with the LPSC for a new FRP, with anticipated new rates being effective July 1, 2020. Cleco Power has responded to several sets of data requests relating to the new FRP. Cleco Power must file annual monitoring reports no later than October 31 for the 12-month period ending June 30. In January 2020, Cleco Power reached an agreement with the LPSC Staff regarding the treatment and realignment of SSR revenue between base and fuel revenue that resulted in $2.3 million of refunds for the 2018 monitoring report and confirmed no refunds for the 2017 monitoring report. The settlement also applies to treatment of SSR revenues for the 2019 monitoring report. The 2017 monitoring report was approved by the LPSC Staff on February 19, 2020. Cleco Power refunded the $2.3 million for the 2018 monitoring report in March 2020 as agreed to in the settlement of the 2017 monitoring report. On April 30, 2020, the LPSC filed the uncontested Joint Report and Draft Order on Cleco Power’s FRP for the 12 months ended June 30, 2018. The conclusions were an earnings-related refund of $2.3 million, which was refunded on March 2020 bills, and no adjustments to rider FRP. Cleco Power expects approval on the 2018 monitoring report in the second quarter of 2020. Cleco Power has also responded to data requests relating to the 2019 FRP monitoring report. Cleco Power’s monitoring reports also included a $1.2 million annual cost of service savings as a result of the 2016 Merger Commitments. The cost of service savings are not subject to the target ROE or any sharing mechanism. The cost of service savings are refunded annually in September and will continue until Cleco Power’s next FRP is in effect, which is expected in July 2020. At March 31, 2020, Cleco Power had $2.2 million accrued for the estimated cost of service savings refunds. 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 is being credited to customers over 12 months beginning August 1, 2019. At March 31, 2020, Cleco Power had $19.7 million accrued for the estimated federal tax-related benefits from the TCJA and $1.6 million accrued in related interest. Also, 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 application for its next FRP, which was filed on June 28, 2019. SSR In September 2016, Cleco Power filed an Attachment Y with MISO requesting retirement of Teche Unit 3 effective April 1, 2017. MISO conducted a study which determined the proposed retirement of Teche Unit 3 would result in violations of specific applicable reliability standards for which no mitigation is available. As a result, MISO designated Teche Unit 3 as an SSR unit until such time that an appropriate alternative solution could be implemented to mitigate reliability issues. One mitigating factor identified was Cleco Power’s Terrebonne to Bayou Vista Transmission project, 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. Cleco Power expects Teche Unit 3 to be available to run until the estimated 2021 in-service date of the Bayou Vista to Segura Transmission project, at which time Cleco Power does not expect to offer the unit into MISO, barring any grid or customer reliability issues or other similar reasons. At March 31, 2020, Cleco Power had $6.1 million accrued for the net capital refund for capital expenditures paid for by third parties while operating under the SSR agreement. As part of the settlement, one of the load serving entities agreed to reimburse Cleco Power for their portion of the capital refund. Management is unable to determine the timing of the capital refund. | Note 13 — Regulation and Rates At December 31, 2019, Provision for rate refund on Cleco and Cleco Power’s Consolidated Balance Sheets consisted primarily of $28.7 million for the estimated refund for the tax-related benefits from the TCJA, $3.5 million for the estimated refund related to the FERC audit, $2.3 million for the estimated FRP refunds, $1.9 million for the cost of service savings refunds, and $1.0 million for potential reductions to the transmission ROE. For more information about the FERC audit, see Note 15 — “Litigation, Other Commitments and Contingencies, and Disclosures about Guarantees — Litigation — FERC Audit.” Transmission ROE Two complaints were filed with FERC seeking to reduce the ROE component of the transmission rates that MISO transmission owners, including Cleco Power, may collect under the MISO tariff. As of December 31, 2019, Cleco Power had $1.0 million accrued for the change in ROE. For more information on the ROE complaint, see Note 15 — “Litigation, Other Commitments and Contingencies, and Disclosures about Guarantees — Litigation — Transmission ROE.” FRP Cleco Power’s annual retail earnings are subject to an FRP that was approved by the LPSC in June 2014. Under the terms of Cleco Power’s current FRP, Cleco Power is allowed to earn a target ROE of 10.0%, while providing the opportunity to earn up to 10.9%. Additionally, 60% of retail earnings between 10.9% and 11.75%, and all retail earnings over 11.75% are required to be refunded to customers. The amount of credits due to customers, if any, is determined by Cleco Power and the LPSC annually. Credits are typically included on customers’ bills the following summer, but the amount and timing of the refunds are ultimately subject to LPSC approval. On June 28, 2019, Cleco Power filed an application with the LPSC for a new FRP, with anticipated new rates being effective July 1, 2020. Cleco Power has responded to several sets of data requests relating to the new FRP. Cleco Power must file annual monitoring reports no later than October 31 for the 12-month period ending June 30. In January 2020, Cleco Power reached an agreement with the LPSC Staff regarding the treatment and realignment of SSR revenue between base and fuel revenue that resulted in $2.3 million of refunds for the 2018 monitoring report and confirmed no refunds for the 2017 monitoring report. The settlement also applies to treatment of SSR revenues for the 2019 monitoring report. The 2017 monitoring report was approved by the LPSC Staff on February 19, 2020. Cleco Power expects to refund the $2.3 million for the 2018 monitoring report in March 2020. Cleco Power has responded to data requests relating to the 2019 FRP monitoring report. Cleco Power’s monitoring reports also include a $1.2 million annual cost of service savings as a result of the 2016 Merger Commitments. The cost of service savings are not subject to the target ROE or any sharing mechanism. The cost of service savings are refunded annually in September and will continue until Cleco Power’s next FRP is in effect, which is expected in July 2020. At December 31, 2019, Cleco Power had $1.9 million accrued for the estimated cost of service savings refunds. 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. On July 10, 2019, the LPSC approved Cleco Power’s rate refund of $79.2 million, plus interest, for the reduction in the statutory federal tax rate for the period from January 2018 to June 2020. The refund is being credited to customers over 12 months beginning August 1, 2019. At December 31, 2019, Cleco Power had $28.7 million accrued for the estimated federal tax-related benefits from the TCJA and $2.4 million accrued in related interest. Also on July 10, 2019, the LPSC approved Cleco Power’s motion to address the rate redesign and the regulatory liability for excess ADIT, resulting from the enactment of the TCJA, in Cleco Power’s application for its next FRP, which was filed on June 28, 2019. 2016 Merger Commitments On March 28, 2016, the LPSC approved the 2016 Merger. The LPSC’s written order approving the 2016 Merger was issued on April 7, 2016. Approval of the 2016 Merger was conditioned upon certain commitments, including $136.0 million of customer rate credits. As of December 31, 2019, Cleco Power had issued $135.9 million of customer rate credits. Also included in the 2016 Merger Commitments were $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, 2019, Cleco Power had $3.9 million remaining accrued for the 2016 Merger Commitments discussed above. 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 can be implemented to mitigate reliability issues. One mitigating factor identified was Cleco Power’s Terrebonne to Bayou Vista Transmission project. The Terrebonne to Bayou Vista project was completed in April 2019. Cleco Power received a termination notice, effective April 30, 2019, and filed paperwork to withdraw the filed Attachment Y. While operating as an SSR unit, Cleco Power received monthly payments that included recovery of expenses, including capital expenditures, related to the operations of Teche Unit 3. Additionally, MISO allocated SSR costs to the load serving entities that required the operation of the SSR unit, including Cleco Power. These payments and cost allocations were finalized as part of a MISO SSR settlement approved in December 2018. Cleco Power operated Teche Unit 3 as an SSR unit from April 2017 through April 2019. Cleco Power expects Teche Unit 3 to be available to run until the estimated 2021 in-service date of Bayou Vista to Segura Transmission project, at which time, Cleco Power does not expect to offer the unit into MISO, barring any grid or customer reliability issues or other similar reasons. At December 31, 2019, Cleco Power had $6.1 million accrued for the net capital refund for capital expenditures paid for by third parties while operating under the SSR agreement. As part of the settlement, one of the load serving entities agreed to reimburse Cleco Power for their portion of the capital refund. Management is unable to determine the timing of the capital refund. |
Variable Interest Entities (Q1)
Variable Interest Entities (Q1) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Variable Interest Entities | Note 13 — Variable Interest Entities Cleco and Cleco Power apply the equity method of accounting to report the investment in Oxbow in the consolidated financial statements. Under the equity method, the assets and liabilities of this entity are reported as Equity investment in investee on Cleco and Cleco Power’s Condensed Consolidated Balance Sheets. The revenue and expenses (excluding income taxes) of this entity are netted and reported as equity income or loss from investees on Cleco and Cleco Power’s Condensed Consolidated Statements of Income. Oxbow is owned 50% by Cleco Power and 50% by SWEPCO. Cleco Power is not the primary beneficiary because it shares the power to control Oxbow’s significant activities with SWEPCO. Cleco Power’s current assessment of its maximum exposure to loss related to Oxbow at March 31, 2020 The following table presents the components of Cleco Power’s equity investment in Oxbow: INCEPTION TO DATE (THOUSANDS) AT MAR. 31, 2020 AT DEC. 31, 2019 Purchase price $ 12,873 $ 12,873 Cash contributions 6,399 6,399 Dividends (2,200 ) (2,200 ) Total equity investment in investee $ 17,072 $ 17,072 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: (THOUSANDS) AT MAR. 31, 2020 AT DEC. 31, 2019 Oxbow’s net assets/liabilities $ 34,145 $ 34,145 Cleco Power’s 50% equity $ 17,072 $ 17,072 Cleco Power’s maximum exposure to loss $ 17,072 $ 17,072 The following table contains summarized financial information for Oxbow: FOR THE THREE MONTHS ENDED MAR. 31, (THOUSANDS) 2020 2019 Operating revenue $ 1,882 $ 1,958 Operating expenses 1,882 1,958 Income before taxes $ — $ — DHLC mines lignite reserves at Oxbow through the Amended Lignite Mining Agreement. The lignite reserves are intended to be used to provide fuel to the Dolet Hills Power Station. For more information on DHLC and the Oxbow mine, see Note 14 — 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. | 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, 2019, consisted of its equity investment of $17.1 million. During 2019, Cleco Power received $1.1 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) 2019 2018 Purchase price $ 12,873 $ 12,873 Cash contributions 6,399 6,399 Dividend received (2,200 ) (1,100 ) Total equity investment in investee $ 17,072 $ 18,172 The following table compares the carrying amount of Oxbow’s assets and liabilities with Cleco Power’s maximum exposure to loss related to its investment in Oxbow: AT DEC. 31, (THOUSANDS) 2019 2018 Oxbow’s net assets/liabilities $ 34,145 $ 36,345 Cleco Power’s 50% equity $ 17,072 $ 18,172 Cleco Power’s maximum exposure to loss $ 17,072 $ 18,172 The following tables contain summarized financial information for Oxbow: AT DEC. 31, (THOUSANDS) 2019 2018 Current assets $ 2,239 $ 4,128 Property, plant, and equipment, net 23,738 25,186 Other assets 9,364 9,405 Total assets $ 35,341 $ 38,719 Current liabilities $ 1,196 $ 2,374 Partners’ capital 34,145 36,345 Total liabilities and partners’ capital $ 35,341 $ 38,719 FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2019 2018 2017 Operating revenue $ 8,886 $ 6,992 $ 4,189 Operating expenses 8,886 6,992 4,189 Income before taxes $ — $ — $ — DHLC mines lignite reserves at Oxbow through the Amended Lignite Mining Agreement. The lignite reserves are intended to be used to provide fuel to the Dolet Hills Power Station. For more information on DHLC, 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_2
Litigation, Other Commitments and Contingencies, and Disclosures about Guarantees (Q1) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Litigation, Other Commitments and Contingencies, and Disclosures about Guarantees | Note 14 — Litigation, Other Commitments and Contingencies, and Disclosures about Guarantees Litigation 2016 Merger In connection with the 2016 Merger, four actions were filed in the 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 • Moore v. Macquarie Infrastructure and Real Assets • Trahan v. Williamson • L’Herisson v. Macquarie Infrastructure and Real Assets In November 2014, the plaintiff in the Braunstein The three actions filed in the Civil District Court for Orleans Parish were captioned as follows: • Butler v. Cleco Corporation • Creative Life Services, Inc. v. Cleco Corporation • Cashen v. Cleco Corporation 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 Butler and Cashen Butler Cashen Creative Life Services 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, and 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. Cleco believes that the allegations of the petitions in each action are without merit and that it has substantial meritorious defenses to the claims set forth in each of the petitions. Gulf Coast Spinning In September 2015, a potential customer sued Cleco for failure to fully perform an alleged verbal agreement to lend or otherwise fund its startup costs to the extent of $6.5 million. Gulf Coast Spinning Company, LLC (Gulf Coast), the primary plaintiff, alleges that Cleco promised to assist it in raising approximately $60.0 million, which Gulf Coast needed to construct a cotton spinning facility near Bunkie, Louisiana. According to the petition filed by Gulf Coast in the 12 th Cleco filed an Exception of No Cause of Action arguing that the case should be dismissed. The District Court denied Cleco’s exception in December 2015, after considering briefs and arguments. In January 2016, Cleco appealed the District Court’s denial of its exception by filing with the Third Circuit Court of Appeal. In June 2016, the Third Circuit Court of Appeal denied the request to have the case dismissed. In July 2016, Cleco filed a writ to the Louisiana Supreme Court seeking a review of the District Court’s denial of Cleco’s exception. In November 2016, the Louisiana Supreme Court denied Cleco’s writ application. In February 2016, the parties agreed to a stay of all proceedings pending discussions concerning settlement. In May 2016, the District Court lifted the stay at the request of Gulf Coast. The parties are currently participating in discovery. Cleco believes the allegations of the petition are contradicted by the written documents executed by Gulf Coast, are otherwise without merit, and that it has substantial meritorious defenses to the claims alleged by Gulf Coast. Sabine River Flood In March 2017, Cleco was served with a summons in Perry Bonin, Ace Chandler, and Michael Manuel, et al v. Sabine River Authority of Texas and Sabine River Authority of Louisiana The suit was removed to federal court in Texas. The new federal case is Perry Bonin, et al. v. Sabine River Authority of Texas et al. Bonin In March 2018, approximately 26 other individual plaintiffs filed a petition against Cleco Power and other defendants in Larry Addison, et al. v. Sabine River Authority of Texas, et al. Larry Addison, et al. v. Sabine River Authority of Texas, et al Bonin Bonin Addison Bonin 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. In January 2019, Cleco Power was served with a summons in Saulsbury Industries, Inc. v. Cabot Corporation and Cleco Power LLC On October 10, 2019, Cleco Power was served with a summons in Saulsbury Industries, Inc. v. Cabot Corporation and Cleco Power LLC LPSC Audits Fuel Audit Generally, Cleco Power’s cost of fuel used for electric generation and the cost of purchased power are recovered through the LPSC-established FAC that enables Cleco Power to pass on to its customers substantially all such charges. Recovery of FAC costs is subject to periodic fuel audits by the LPSC. The LPSC FAC General Order issued in November 1997, in Docket No. U-21497 provides that an audit of FAC filings will be performed at least every other year. Cleco Power has FAC filings for January 2018 and thereafter that remain subject to audit. On April 21, 2020, Cleco Power received notice from the LPSC of its filing for Request For Proposals to hire outside consultants to perform the FAC audit for the period of January 2018 to December 2019. The total amount of fuel expense expected to be included in the audit is $565.8 million. Management is unable to predict or give a reasonable estimate of the possible range of the disallowance, if any, related to these filings. Historically, the disallowances have not been material. If a disallowance of fuel cost is ordered resulting in a refund, any such refund could have a material adverse effect on the results of operations, financial condition, or cash flows of the Registrants. Environmental Audit In 2009, the LPSC issued Docket No. U-29380 Subdocket A, which provides Cleco Power an EAC to recover from its customers certain costs of environmental compliance. The costs eligible for recovery are prudently incurred air emissions credits associated with complying with federal, state, and local air emission regulations that apply to the generation of electricity reduced by the sale of such allowances. Also eligible for recovery are variable emission mitigation costs, which are the costs of reagents such as ammonia and limestone that are a part of the fuel mix used to reduce air emissions, among other things. Cleco Power has EAC filings for January 2018 and thereafter that remain subject to audit. On March 11, 2020, Cleco Power received notice from the LPSC of its filing for Request For Proposals to hire outside consultants to perform the EAC audit for the period of January 2018 to December 2019. The total amount of environmental expense expected to be included in the audit is $26.2 million. 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 Mercury and Air Toxics Standards (MATS). In June 2015, the U.S. Supreme Court remanded the MATS rule to the D.C. Circuit Court of Appeals. In December 2015, the D.C. Circuit Court of Appeals remanded the rule to the EPA; however, the D.C. Circuit Court of Appeals did not vacate this rule. In April 2016, the EPA released a final supplemental finding that, even considering costs, it is appropriate and necessary to regulate hazardous air pollutants. By the June 2016 deadline, six petitions were filed with the U.S. Court of Appeals for the D.C. Circuit Court of Appeals for review of the EPA’s findings. At the request of the EPA, in April 2017, the court issued an order holding the cases in abeyance pending the EPA’s review of its supplemental finding. These expenses are also eligible for recovery through Cleco Power’s EAC and are subject to periodic review by the LPSC. FERC Audit Generally, Cleco Power records wholesale transmission revenue through approved formula rates, Attachment O of the MISO tariff and certain grandfathered agreements. The calculation of the rate formulas, as well as FERC accounting and reporting requirements, are subject to periodic audits by FERC. In March 2018, the Division of Audits and Accounting, within the Office of Enforcement of FERC, initiated an audit of Cleco Power for the period of January 1, 2014, through June 30, 2019. On September 27, 2019, Cleco Power received the final audit report, which indicated 12 findings of noncompliance with a combination of FERC accounting and reporting requirements and computation of revenue requirements along with 59 recommendations associated with the audit period. Cleco Power submitted a plan for implementing the audit recommendations on October 28, 2019. Cleco Power also submitted the refund analysis on November 7, 2019, which resulted in an estimated refund of $3.5 million related to the FERC audit findings, pending final assessment by the FERC Division of Audits and Accounting. This amount was recorded in Provision for rate refund on Cleco and Cleco Power’s Condensed Consolidated Balance Sheets at March 31, 2020. Cleco Power anticipates this amount to be refunded to its wholesale transmission customers as a reduction in Attachment O and grandfathered agreement rates over 12 months beginning June 1, 2020. Transmission ROE Two complaints were filed with FERC seeking to reduce the ROE component of the transmission rates that MISO transmission owners, including Cleco, may collect under the MISO tariff. The complaints sought to reduce the 12.38% ROE used in MISO’s transmission rates to a proposed 6.68%. The complaints covered the period December 2013 through May 2016. 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. Cleco Power is unable to determine when a final FERC Order will be issued. As of March 31, 2020, Cleco Power had $1.0 million accrued for the change in the ROE. 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. Beginning January 1, 2020, the collection of the adder is being included in MISO’s transmission rates for a total ROE of 10.38%. South Central Generating In 2017, Louisiana Generating received insurance settlement proceeds for costs incurred to resolve a lawsuit which was brought by the EPA and the LDEQ against Louisiana Generating related to Big Cajun II, Unit 3. Entergy Gulf States, as co-owner of Big Cajun II, Unit 3, is expected to be allocated a portion of the insurance settlement proceeds. Any amount allocated to Entergy Gulf States will be determined by ongoing litigation and negotiations. South Central Generating estimated this amount to be $10.0 million. As part of the Cleco Cajun Transaction, Cleco Cajun assumed the $10.0 million contingent liability and NRG Energy indemnified Cleco for losses associated with this litigation matter. As a result, Cleco also recorded a $10.0 million indemnification asset, which was included in the purchase price allocation. Prior to the Cleco Cajun Transaction, South Central Generating was involved in various litigation matters, including environmental and contract proceedings, before various courts regarding matters arising out of the ordinary course of business. Management is unable to estimate any potential losses that Cleco Cajun may ultimately be responsible for with respect to any one of these matters. 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 March 31, 2020, believes the probable and reasonably estimable liabilities based on the eventual disposition of these matters are $5.1 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 and Evangeline as a result of the transfer of Coughlin to Cleco Power. The maximum amount of the potential payment to Cleco Power, Cleco Holdings, and Evangeline for their respective indemnifications is $40.0 million, except for indemnifications relating to the fundamental organizational structure of each respective entity, of which the maximum amount is $400.0 million. Management does not expect to be required to make any payments under these indemnifications. As part of the Amended Lignite Mining Agreement, Cleco Power and SWEPCO, joint owners of Dolet Hills Power Station, have agreed to pay the loan and lease principal obligations of the lignite miner, DHLC, when due if DHLC does not have sufficient funds or credit to pay. Any amounts paid on behalf of the miner would be credited by the lignite miner against future invoices for lignite delivered. The maximum projected payment by Cleco Power under this guarantee is estimated to be $83.0 million; however, the Amended Lignite Mining Agreement does not contain a cap. The projection is based on the forecasted loan and lease obligations to be incurred by DHLC, primarily for purchases of equipment. Cleco Power has the right to dispute the incurrence of loan and lease obligations through the review of the mining plan before the incurrence of such loan and lease obligations. In April 2020, Cleco Power and SWEPCO mutually agreed to not 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 closure is subject to LPSC review and approval. 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. At March 31, 2020, Cleco Holdings had a $34.5 million letter of credit to MISO pursuant to energy market requirements related to Cleco Cajun’s participation in MISO. The letter of credit automatically renews each year and has no impact on the Cleco Holdings’ 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. Other Commitments Cleco has accrued for liabilities related to third parties, employee medical benefits, and AROs. Risks and Uncertainties Cleco could be subject to possible adverse consequences if Cleco’s counterparties fail to perform their obligations or if Cleco or its affiliates are not in compliance with loan agreements or bond indentures. Access to capital markets is a significant source of funding for both short- and long-term capital requirements not satisfied by operating cash flows. Changes in the regulatory environment or market forces could cause Cleco to determine its assets have suffered an other-than-temporary decline in value, whereby an impairment would be required and Cleco’s financial condition could be materially adversely affected. Cleco Power and Cleco Cajun are participants in the MISO market. Energy prices in the MISO market are based on LMP, which includes a component directly related to congestion on the transmission system. Pricing zones with greater transmission congestion may have higher LMPs. Physical transmission constraints present in the MISO market could increase energy costs within pricing zones. Cleco Power and Cleco Cajun use FTRs to mitigate transmission congestion price risks. Changes to anticipated transmission paths may result in an unexpected increase in energy costs. On March 1, 2019, Cleco Power began to operate Dolet Hills Power Station from June through September of each year; however, Dolet Hills Power Station will continue to be available to operate in other months, if needed. In January 2020, Cleco Power’s joint owner in Dolet Hills Power Station unilaterally entered into a settlement with the Arkansas Public Service Commission to seek regulatory approval to retire the Dolet Hills Power Station by the end of 2026. This settlement does not bind Cleco Power to agree to retire the Dolet Hills Power Station by 2026. In April 2020, Cleco Power and SWEPCO mutually agreed to not 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, subject to LPSC review and approval. Early closure of the mines would most likely result in increased costs billed through fuel, which management currently believes are recoverable. Management does not believe an early closure of the mines would have an adverse impact on the recovery value of the plant. Cleco Power has the ability to secure alternative fuel sources and expects to have sufficient lignite fuel available to continue seasonal operations of the Dolet Hills Power Station through at least the 2020 and 2021 seasonal operations periods. Also in April 2020, Cleco Power announced its intent to seek regulatory approval to retire the Dolet Hills Power Station at the end of 2021, subject to recovery mechanisms. This does not bind Cleco Power to a specific retirement plan and Cleco Power will continue to evaluate the cost of operating the Dolet Hills Power Station compared with other alternatives and decide the best course of action for the Dolet Hills Power Station within the LPSC regulatory requirements and recovery mechanisms. | 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 9th Judicial District Court for Rapides Parish, Louisiana and three actions were filed in the Civil District Court for Orleans Parish, Louisiana. The petitions in each action generally alleged, among other things, that the members of Cleco Corporation’s Board of Directors breached their fiduciary duties by, among other things, conducting an allegedly inadequate sale process, agreeing to the 2016 Merger at a price that allegedly undervalued Cleco, and failing to disclose material information about the 2016 Merger. The petitions also alleged that Cleco Partners, Cleco Corporation, Merger Sub, and in some cases, certain of the investors in Cleco Partners either aided and abetted or entered into a civil conspiracy to advance those supposed breaches of duty. The petitions seek various remedies, including monetary damages, which includes attorneys’ fees and expenses. The four actions filed in the 9th Judicial District Court for Rapides Parish are captioned as follows: • Braunstein v. Cleco Corporation • Moore v. Macquarie Infrastructure and Real Assets, No. 251,417C (filed October 30, 2014), • Trahan v. Williamson • L’Herisson v. Macquarie Infrastructure and Real Assets In November 2014, the plaintiff in the Braunstein The three actions filed in the Civil District Court for Orleans Parish are captioned as follows: • Butler v. Cleco Corporation • Creative Life Services, Inc. v. Cleco Corporation • Cashen v. Cleco Corporation Both the Butler Cashen Creative Life Services Butler Butler Creative Life Services Creative Life Services Butler and Cashen In February 2015, the 9th Judicial District Court for Rapides Parish held a hearing on a motion for preliminary injunction filed by plaintiffs Moore L’Herisson Trahan In March 2016 and May 2016, the plaintiffs filed their Third Consolidated Amended Verified Derivative Petition for Damages and Preliminary and Permanent Injunction and their Fourth Verified Consolidated Amended Class Action Petition, respectively. The fourth petition eliminated the request for preliminary and permanent injunction and also named an additional executive officer as a defendant. Cleco filed exceptions seeking dismissal of the amended Petition. A hearing was held in September 2016 and the District Court granted the exceptions filed by Cleco and dismissed all claims asserted by the former shareholders. The plaintiffs appealed the District Court’s ruling to the Louisiana Third Circuit Court of Appeal. The Third Circuit Court of Appeal heard oral arguments in the case in September 2017. In December 2017, the Third Circuit Court of Appeal issued an order reversing and remanding the case to the District Court for further proceedings. In January 2018, Cleco filed a writ with the Louisiana Supreme Court seeking review of the Third Circuit Court of Appeal’s decision. The writ was denied in March 2018 and the parties are engaged in discovery in the District Court. In November 2018, Cleco filed exceptions of no cause of action and res judicata, seeking to dismiss all claims. The District Court denied the exceptions on January 14, 2019. A hearing on the plaintiff’s request for certification of a class was scheduled for August 26, 2019; however, prior to the hearing, the parties reached an agreement to certify a limited class. Cleco believes that the allegations of the petitions in each action are without merit and that it has substantial meritorious defenses to the claims set forth in each of the petitions. Gulf Coast Spinning In September 2015, a potential customer sued Cleco for failure to fully perform an alleged verbal agreement to lend or otherwise fund its startup costs to the extent of $6.5 million. Gulf Coast Spinning Company, LLC (Gulf Coast), the primary plaintiff, alleges that Cleco promised to assist it in raising approximately $60.0 million, which Gulf Coast needed to construct a cotton spinning facility near Bunkie, Louisiana. According to the petition filed by Gulf Coast in the 12 th Cleco filed an Exception of No Cause of Action arguing that the case should be dismissed. The District Court denied Cleco’s exception in December 2015, after considering briefs and arguments. In January 2016, Cleco appealed the District Court’s denial of its exception by filing with the Third Circuit Court of Appeal. In June 2016, the Third Circuit Court of Appeal denied the request to have the case dismissed. In July 2016, Cleco filed a writ to the Louisiana Supreme Court seeking a review of the District Court’s denial of Cleco’s exception. In November 2016, the Louisiana Supreme Court denied Cleco’s writ application. In February 2016, the parties agreed to a stay of all proceedings pending discussions concerning settlement. In May 2016, the District Court lifted the stay at the request of Gulf Coast. The parties are currently participating in discovery. Cleco believes the allegations of the petition are contradicted by the written documents executed by Gulf Coast, are otherwise without merit, and that it has substantial meritorious defenses to the claims alleged by Gulf Coast. Sabine River Flood In March 2017, Cleco was served with a summons in Perry Bonin, Ace Chandler, and Michael Manuel, et al v. Sabine River Authority of Texas and Sabine River Authority of Louisiana The suit was removed to federal court in Texas. The new federal case is Perry Bonin, et al. v. Sabine River Authority of Texas et al. Bonin Case In March 2018, approximately 26 other individual plaintiffs filed a petition against Cleco Power and other defendants in Larry Addison, et al. v. Sabine River Authority of Texas, et al. Larry Addison, et al. v. Sabine River Authority of Texas, et al Bonin Case Bonin Case Addison Case Bonin Case Dispute with Saulsbury Industries In October 2018, Cleco Power sued Saulsbury Industries, Inc., the former general contractor for the St. Mary Clean Energy Center project, seeking damages for Saulsbury Industries, Inc.’s failure to complete the St. Mary Clean Energy Center project on time and for costs incurred by Cleco Power in hiring a replacement general contractor. The action was filed in the 9th Judicial District Court for Rapides Parish, No. 263339. Saulsbury Industries, Inc. removed the case to the U.S. District Court for the Western District of Louisiana, on March 1, 2019. In January 2019, Cleco Power was served with a summons in Saulsbury Industries, Inc. v. Cabot Corporation and Cleco Power LLC On October 10, 2019, Cleco Power was served with a summons in Saulsbury Industries, Inc. v. Cabot Corporation and Cleco Power LLC LPSC Audits Fuel Audit Generally, Cleco Power’s cost of fuel used for electric generation and the cost of purchased power are recovered through the LPSC-established FAC that enables Cleco Power to pass on to its customers substantially all such charges. Recovery of FAC costs is subject to periodic fuel audits by the LPSC. The LPSC FAC General Order issued in November 1997, in Docket No. U-21497 provides that an audit of FAC filings will be performed at least every other year. In March 2018, Cleco Power received notice of an FAC audit from the LPSC for the period of January 2016, to December 2017. The total amount of fuel expense included in the audit was $536.2 million. In August 2018, the LPSC Staff issued its audit report which recommended no disallowance of fuel costs. On April 26, 2019, the report was approved by the LPSC. Cleco Power has FAC filings for January 2018 and thereafter that remain subject to audit. Management is unable to predict or give a reasonable estimate of the possible range of the disallowance, if any, related to these filings. Historically, the disallowances have not been material. If a disallowance of fuel cost is ordered resulting in a refund, any such refund could have a material adverse effect on the results of operations, financial condition or cash flows of the Registrants. Environmental Audit In 2009, the LPSC issued Docket No. U-29380 Subdocket A, which provides Cleco Power an EAC to recover from its customers certain costs of environmental compliance. The costs eligible for recovery are prudently incurred air emissions credits associated with complying with federal, state, and local air emission regulations that apply to the generation of electricity reduced by the sale of such allowances. Also eligible for recovery are variable emission mitigation costs, which are the costs of reagents such as ammonia and limestone that are a part of the fuel mix used to reduce air emissions, among other things. In May 2018, Cleco Power received notice of an EAC audit from the LPSC for the period of January 2016 to December 2017. The total amount of environmental expense included in this audit was $30.7 million. On July 16, 2019, the LPSC Staff issued its audit report, which recommended no disallowance of environmental costs. On September 11, 2019, the report was approved by the LPSC. Cleco Power has EAC filings for January 2018 and thereafter that remain subject to audit. 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. In June 2015, the U.S. Supreme Court remanded the MATS rule to the D.C. Circuit Court of Appeals. In December 2015, the D.C. Circuit Court of Appeals remanded the rule to the EPA; however, the D.C. Circuit Court of Appeals did not vacate this rule. In April 2016, the EPA released a final supplemental finding that, even considering costs, it is appropriate and necessary to regulate hazardous air pollutants. By the June 2016 deadline, six petitions were filed with the U.S. Court of Appeals for the D.C. Circuit Court of Appeals for review of the EPA’s findings. At the request of the EPA, in April 2017, the court issued an order holding the cases in abeyance pending the EPA’s review of its supplemental finding. These expenses are also eligible for recovery through Cleco Power’s EAC and are subject to periodic review by the LPSC. FERC Audit Generally, Cleco Power records wholesale transmission revenue through approved formula rates. Attachment O of the MISO tariff and certain grandfathered agreements. The calculation of the rate formulas, as well as FERC accounting and reporting requirements, are subject to periodic audits by FERC. In March 2018, the Division of Audits and Accounting, within the Office of Enforcement of FERC, initiated an audit of Cleco Power for the period of January 1, 2014, through June 30, 2019. On September 27, 2019, Cleco Power received the final audit report, which indicated 12 findings of noncompliance with a combination of FERC accounting and reporting requirements and computation of revenue requirements along with 59 recommendations associated with the audit period. Cleco Power submitted a plan for implementing the audit recommendations on October 28, 2019. Cleco Power also submitted the refund analysis on November 7, 2019, which resulted in an estimated refund of $3.5 million related to the FERC audit findings, pending final assessment by the FERC Division of Audits and Accounting. This amount was recorded in Provision for rate refund on Cleco and Cleco Power’s Consolidated Balance Sheets at December 31, 2019. Cleco Power anticipates this amount to be refunded to its wholesale transmission customers as a reduction in Attachment O and grandfathered agreement rates over 12 months beginning June 1, 2020. Transmission ROE Two complaints were filed with FERC seeking to reduce the ROE component of the transmission rates that MISO transmission owners, including Cleco, may collect under the MISO tariff. The complaints sought to reduce the 12.38% ROE used in MISO’s transmission rates to a proposed 6.68%. The complaints covered the period December 2013 through May 2016. 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. Cleco Power is unable to determine when a final FERC Order will be issued. As of December 31, 2019, Cleco Power had $1.0 million accrued for the change in the ROE. 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. Beginning January 1, 2020, the collection of the adder is being included in MISO’s transmission rates for a total ROE of 10.38%. South Central Generating In 2017, Louisiana Generating received insurance settlement proceeds for costs incurred to resolve a lawsuit which was brought by the EPA and the LDEQ against Louisiana Generating related to Big Cajun II, Unit 3. Entergy Gulf States, as co-owner of Big Cajun II, Unit 3, is expected to be allocated a portion of the insurance settlement proceeds. Any amount allocated to Entergy Gulf States will be determined by ongoing litigation and negotiations. South Central Generating estimated this amount to be $10.0 million. As part of the Cleco Cajun Transaction, Cleco Cajun assumed the $10.0 million contingent liability and NRG Energy indemnified Cleco for losses associated with this litigation matter. As a result, Cleco also recorded a $10.0 million indemnification asset, which was included in the purchase price allocation. Prior to the Cleco Cajun Transaction, South Central Generating was involved in various litigation matters, including environmental and contract proceedings, before various courts regarding matters arising out of the ordinary course of business. Management is unable to estimate any potential losses that Cleco Cajun may ultimately be responsible for with respect to any one of these matters. 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, 2019, believes the probable and reasonably estimable liabilities based on the eventual disposition of these matters is $5.0 million and has accrued this amount. Off-Balance Sheet Commitments 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 and Evangeline as a result of the transfer of Coughlin to Cleco Power. The maximum amount of the potential payment to Cleco Power, Cleco Holdings, and Evangeline for their respective indemnifications is $40.0 million, except for indemnifications relating to the fundamental organizational structure of each respective entity, of which the maximum amount is $400.0 million. Management does not expect to be required to make any payments under these indemnifications. As part of the Amended Lignite Mining Agreement, Cleco Power and SWEPCO, joint owners of Dolet Hills Power Station, have agreed to pay the loan and lease principal obligations of the lignite miner, DHLC, when due if DHLC does not have sufficient funds or credit to pay. Any amounts paid on behalf of the miner would be credited by the lignite miner against future invoices for lignite delivered. The maximum projected payment by Cleco Power under this guarantee is estimated to be $86.4 million; however, the Amended Lignite Mining Agreement does not contain a cap. The projection is based on the forecasted loan and lease obligations to be incurred by DHLC, primarily for purchases of equipment. Cleco Power has the right to dispute the incurrence of loan and lease obligations through the review of the mining plan before the incurrence of such loan and lease obligations. The Amended Lignite Mining Agreement is not expected to terminate pursuant to its terms until 2036 and does not affect the amount the Registrants can borrow under their credit facilities. Currently, management does not expect to be required to pay DHLC under this guarantee. At December 31, 2019, Cleco Holdings had a $34.5 million letter of credit to MISO pursuant to energy market requirements related to Cleco Cajun’s participation in MISO. The letter of credit automatically renews each year and has no impact on the Cleco Holdings’ 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, 2019. Cleco Power and Cleco Cajun have several unconditional long-term purchase obligations primarily related to the purchase of petroleum coke, limestone, 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, 2019, is as follows: (THOUSANDS) CLECO POWER CLECO For the year ending Dec. 31, 2020 $ 28,741 $ 89,490 2021 29,832 35,986 2022 18,025 19,311 2023 7,751 8,782 2024 7,740 9,829 Thereafter 13,242 14,474 Total long-term purchase obligations $ 105,331 $ 177,872 Cleco’s payments under these agreements for the years ended December 31, 2019, 2018, and 2017 were $94.8 million, $70.5 million, and $47.0 million, respectively. Cleco Power’s payments under these agreements for the years ended December 31, 2019, 2018, and 2017 were $35.3 million, $60.7 million, and $44.2 million, respectively. Other Cleco has accrued for liabilities related to third parties, employee medical benefits, and AROs. For more information on AROs, see Note 2 — “Summary of Significant Accounting Policies — AROs” and Note 6 — “Regulatory Assets and Liabilities — AROs.” Risks and Uncertainties Cleco could be subject to possible adverse consequences if Cleco’s counterparties fail to perform their obligations or if Cleco or its affiliates are not in compliance with loan agreements or bond indentures. Access to capital markets is a significant source of funding for both short- and long-term capital requirements not satisfied by operating cash flows. Changes in the regulatory environment or market forces could cause Cleco to determine its assets have suffered an other-than-temporary decline in value, whereby an impairment would be required and Cleco’s financial condition could be materially adversely affected. Cleco Power and Cleco Cajun are participants in the MISO market. Energy prices in the MISO market are based on LMP, which includes a component directly related to congestion on the transmission system. Pricing zones with greater transmission congestion may have higher LMPs. Physical transmission constraints present in the MISO market could increase energy costs within pricing zones. Cleco Power and Cleco Cajun use FTRs to mitigate transmission congestion price risks. Changes to anticipated transmission paths may result in an unexpected increase in energy costs. On March 1, 2019, Cleco Power began to operate Dolet Hills Power Station from June through September of each year; however, Dolet Hills Power Station will continue to be available to operate in other months, as needed. Cleco Power will continue to evaluate the cost of operating the Dolet Hills Power Station compared with other alternatives and decide the best course of action for the Dolet Hills Power Station within the LPSC regulatory requirements and recovery mechanism. In January 2020, Cleco Power’s joint owner in Dolet Hills Power Station unilaterally entered into a settlement with the Arkansas Public Service Commission to seek regulatory approval to retire the Dolet Hills Power Station by the end of 2026. While this settlement does not bind Cleco Power to agree to retire the Dolet Hills Power Station by 2026, management is unable to predict the effects an early closure agreement would have on the recovery value of the plant. In addition, Cleco Power and its joint owner are in discussions around their joint venture in the Oxbow mine and their obligations under the associated mining agreement with Dolet Hills Lignite Company. Any early closure of the mine could result in increased costs billed through fuel, which management currently believes are recoverable. |
Affiliate Transactions (Q1)
Affiliate Transactions (Q1) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Related Party Transactions [Abstract] | ||
Affiliate Transactions | Note 15 — Affiliate Transactions At March 31, 2020, Cleco had an affiliate payable of $33.8 million to Cleco Group primarily for affiliate settlement of taxes payable. Cleco Power has balances that are payable to or due from its affiliates. The following table is a summary of those balances: AT MAR. 31, 2020 AT DEC. 31, 2019 (THOUSANDS) ACCOUNTS RECEIVABLE ACCOUNTS PAYABLE ACCOUNTS RECEIVABLE ACCOUNTS PAYABLE Cleco Holdings $ 10,420 $ 170 $ 10,351 $ 194 Support Group 1,082 10,197 3,172 13,890 Cleco Cajun 535 119 958 39 Total $ 12,037 $ 10,486 $ 14,481 $ 14,123 | 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 is 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 charges only fully loaded costs. All charges and revenues from consolidated affiliates were eliminated in Cleco’s Consolidated Statements of Income for the years ending December 31, 2019, 2018, and 2017. At December 31, 2019, Cleco Holdings had accounts payable of $33.8 million due from Cleco Group primarily for affiliate settlement of taxes payable. At December 31, 2018, Cleco Holdings had no accounts payable due to Cleco Group. For the year ended December 31, , Cleco Holdings made no 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) 2019 2018 2017 Support Group Other operations and maintenance $ 73,090 $ 56,669 $ 50,572 Taxes other than income taxes $ (73 ) $ 6 $ (13 ) Other expense $ 64 $ 290 $ 255 Cleco Holdings Other expense $ — $ 1,007 $ 361 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) 2019 2018 2017 Other operations revenue Cleco Cajun $ 7,471 $ — $ — Affiliate revenue Support Group 3,088 874 851 Cleco Cajun 37 — — Other income Cleco Holdings 149 1,092 494 Total $ 10,745 $ 1,966 $ 1,345 Cleco Power had the following affiliate receivable and payable balances associated with the service agreements: AT DEC. 31, 2019 2018 (THOUSANDS) ACCOUNTS RECEIVABLE ACCOUNTS PAYABLE ACCOUNTS RECEIVABLE ACCOUNTS PAYABLE Cleco Holdings $ 10,351 $ 194 $ 699 $ 88 Support Group 3,172 13,890 2,619 7,755 Cleco Cajun 958 39 — — Total $ 14,481 $ 14,123 $ 3,318 $ 7,843 During 2019, 2018, and 2017, Cleco Power made $20.0 million, $121.4 million, and $135.0 million, respectively, of distribution payments to Cleco Holdings. Cleco Power received no equity contributions from Cleco Holdings in 2019, 2018, and 2017. 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 2019 and 2018: FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2019 2018 Support Group $ 1,316 $ 1,963 Cleco Cajun $ 239 $ — |
Intangible Assets and Liabiliti
Intangible Assets and Liabilities (Q1) | 3 Months Ended |
Mar. 31, 2020 | |
Intangible Assets And Liabilities Disclosure [Abstract] | |
Intangible Assets and Liabilities | Note 16 — Intangible Assets and Liabilities During 2008, Cleco Katrina/Rita acquired a $177.5 million intangible asset which includes $176.0 million for the right to bill and collect storm recovery charges from customers of Cleco Power and $1.5 million of financing costs. This intangible asset 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 Condensed Consolidated Balance Sheet for the valuation of the Cleco trade name and long-term wholesale power supply agreements. At the end of their life, these intangible assets will have no residual value. The trade name intangible asset is being amortized over its estimated economic useful life of 20 years. The intangible assets related to the power supply agreements are amortized over the estimated life of each applicable contract ranging between 7 and 19 years and the amortization is included in Electric operations on Cleco’s Condensed Consolidated Statements of Income. As a result of the Cleco Cajun Transaction, fair value adjustments were recorded on Cleco’s Condensed Consolidated Balance Sheet for the difference between the contract and market price of acquired long-term wholesale power agreements. The fair value of intangible assets of $98.9 million and intangible liabilities of $14.2 million was reflected in the purchase price allocation. At the end of their life, these intangible assets and liabilities will have no residual value. These intangibles are amortized over the estimated life of each applicable contract ranging between 2 and 8 years. The amortization is included in Electric operations on Cleco’s Condensed Consolidated Statements of Income. As part of the Cleco Cajun Transaction, Cleco assumed an LTSA for maintenance services related to the Cottonwood Plant. An intangible liability of $24.1 million was reflected in the purchase price allocation and 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 Condensed Consolidated Balance Sheet. For more information on the fair value adjustments of intangible assets and liabilities related to the Cleco Cajun Transaction, see Note 2 — “Business Combinations.” The following tables present Cleco and Cleco Power’s amortization of intangible assets and liabilities: Cleco FOR THE THREE MONTHS ENDED MAR. 31, (THOUSANDS) 2020 2019 Intangible assets Cleco Katrina/Rita right to bill and collect storm recovery charges $ 517 $ 4,870 Trade name $ 64 $ 64 Power supply agreements $ 6,400 $ 5,190 Intangible liabilities LTSA $ 871 $ 581 Power supply agreements $ 882 $ 211 Cleco Power FOR THE THREE MONTHS ENDED MAR. 31, (THOUSANDS) 2020 2019 Cleco Katrina/Rita right to bill and collect storm recovery charges $ 517 $ 4,870 The following tables summarize the balances for intangible assets and liabilities subject to amortization for Cleco and Cleco Power: Cleco (THOUSANDS) AT MAR. 31, 2020 AT DEC. 31, 2019 Intangible assets Cleco Katrina/Rita right to bill and collect storm recovery charges $ 70,594 $ 70,594 Trade name 5,100 5,100 Power supply agreements 184,004 184,004 Total intangible assets carrying amount 259,698 259,698 Intangible liabilities LTSA 24,100 24,100 Power supply agreements 14,200 14,200 Total intangible liability carrying amount 38,300 38,300 Net intangible assets carrying amount 221,398 221,398 Accumulated amortization (120,395 ) (115,167 ) Net intangible assets subject to amortization $ 101,003 $ 106,231 Cleco Power (THOUSANDS) AT MAR. 31, 2020 AT DEC. 31, 2019 Cleco Katrina/Rita right to bill and collect storm recovery charges $ 177,537 $ 177,537 Accumulated amortization (177,537 ) (177,020 ) Net intangible assets subject to amortization $ — $ 517 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Q1) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Equity [Abstract] | ||
Accumulated Other Comprehensive Loss | Note 17 — Accumulated Other Comprehensive Loss The components of accumulated other comprehensive loss are summarized in the following tables for Cleco and Cleco Power. All amounts are reported net of income taxes. Amounts in parentheses indicate debits. Cleco FOR THE THREE MONTHS ENDED MAR. 31, 2020 (THOUSANDS) POSTRETIREMENT BENEFIT NET LOSS Balances, beginning of period $ (17,513 ) Amounts reclassified from AOCI Amortization of postretirement benefit net gain 414 Balances, Mar. 31, 2020 $ (17,099 ) FOR THE THREE MONTHS ENDED MAR. 31, 2019 (THOUSANDS) POSTRETIREMENT BENEFIT NET GAIN Balances, beginning of period $ 1,786 Amounts reclassified from AOCI Amortization of postretirement benefit net loss (135 ) Balances, Mar. 31, 2019 $ 1,651 Cleco Power FOR THE THREE MONTHS ENDED MAR. 31, 2020 (THOUSANDS) POSTRETIREMENT NET LOSS ON CASH TOTAL AOCI Balances, beginning of period $ (16,717 ) $ (5,868 ) $ (22,585 ) Amounts reclassified from AOCI Amortization of postretirement benefit net loss 426 — 426 Reclassification of net loss to interest charges — 64 64 Balances, Mar. 31, 2020 $ (16,291 ) $ (5,804 ) $ (22,095 ) FOR THE THREE MONTHS ENDED MAR. 31, 2019 (THOUSANDS) POSTRETIREMENT NET LOSS ON CASH FLOW TOTAL AOCI Balances, beginning of period $ (7,060 ) $ (6,122 ) $ (13,182 ) Amounts reclassified from AOCI Amortization of postretirement benefit net loss 156 — 156 Reclassification of net loss to interest charges — 64 64 Balances, Mar. 31, 2019 $ (6,904 ) $ (6,058 ) $ (12,962 ) | 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, 2016 $ 1,500 Other comprehensive income before reclassifications Postretirement benefit adjustments incurred during the year (3,898 ) Amounts reclassified from accumulated other comprehensive income Amortization of postretirement benefit net gain (523 ) Balances, Dec. 31, 2017 $ (2,921 ) Other comprehensive income before reclassifications Postretirement benefit adjustments incurred during the year 3,681 Amounts reclassified from accumulated other comprehensive income Amortization of postretirement benefit net loss 1,615 Reclassification of effect of tax rate change (589 ) 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 loss (422 ) Balances, Dec. 31, 2019 $ (17,513 ) Cleco Power (THOUSANDS) POSTRETIREMENT BENEFIT NET (LOSS) GAIN NET (LOSS) GAIN ON CASH FLOW HEDGES TOTAL AOCI Balances, Dec. 31, 2016 $ (7,905 ) $ (5,517 ) $ (13,422 ) Other comprehensive loss before reclassifications Postretirement benefit adjustments incurred during the year (948 ) — (948 ) Amounts reclassified from accumulated other comprehensive loss Amortization of postretirement benefit net loss 476 — 476 Reclassification of net loss to interest charges — 211 211 Balances, Dec. 31, 2017 $ (8,377 ) $ (5,306 ) $ (13,683 ) Other comprehensive loss before reclassifications Postretirement benefit adjustments incurred during the year 954 — 954 Amounts reclassified from accumulated other comprehensive loss Amortization of postretirement benefit net loss 1,789 — 1,789 Reclassification of net loss to interest charges — 254 254 Reclassification of effect of tax rate change (1,426 ) (1,070 ) (2,496 ) 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 gain to interest charges — 254 254 Balances, Dec. 31, 2019 $ (16,717 ) $ (5,868 ) $ (22,585 ) |
Schedule I Financial Statements
Schedule I Financial Statements of Cleco Holdings (Parent Company Only) (FY) | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule I Financial Statements of Cleco Holdings (Parent Company Only) | SCHEDULE Condensed Statements of Income FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2019 2018 2017 Operating expenses Administrative and general $ 3,263 $ 1,269 $ 602 Merger transaction costs 7,803 19,514 5,152 Other operating expense 130 318 260 Total operating expenses 11,196 21,101 6,014 Operating loss (11,196 ) (21,101 ) (6,014 ) Equity income from subsidiaries, net of tax 205,187 ) 149,543 170,706 Interest, net (70,252 ) (54,635 ) (53,684 ) Other income (expense), net 8,568 (1,687 ) 3,978 Income before income taxes 132,307 72,120 114,986 Federal and state income tax benefit (20,358 ) (22,317 ) (23,094 ) Net income $ 152,665 $ 94,437 $ 138,080 The accompanying notes are an integral part of the condensed financial statements. Condensed Statements of Comprehensive Income FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2019 2018 2017 Net Income $ 152,665 $ 94,437 $ 138,080 Other comprehensive (loss) income, net of tax Postretirement benefits (loss) gain (net of tax benefit of $6,808, tax expense of $1,868, and tax benefit of $2,764, respectively) (19,299 ) (5,296 ) (4,421 ) Total other comprehensive (loss) income, net of tax (19,299 ) (5,296 ) (4,421 ) Comprehensive income, net of tax $ 133,366 $ 99,733 $ 133,659 The accompanying notes are an integral part of the condensed financial statements. Condensed Balance Sheets AT DEC. 31, (THOUSANDS) 2019 2018 Assets Current assets Cash and cash equivalents $ 15,008 $ 76,938 Accounts receivable - affiliate 14,231 8,374 Other accounts receivable 2,650 2,755 Taxes receivable, net 6,726 7,046 Cash surrender value of trust-owned life insurance policies 68,523 59,894 Total current assets 107,138 155,007 Equity investment in subsidiaries 4,150,953 3,247,809 Accumulated deferred federal and state income taxes, net 127,655 101,015 Other deferred charges 1,831 4,532 Total assets 4,387,577 3,508,363 Liabilities and member’s equity Liabilities Current liabilities Long-term debt due within one year $ 63,300 $ — Accounts payable 1,448 1,322 Accounts payable - affiliate 47,184 18,047 Interest accrued 11,005 7,576 Deferred compensation 12,115 10,753 Other current liabilities 274 273 Total current liabilities 135,326 37,971 Postretirement benefit obligations 4,481 3,894 Long-term debt, net 1,604,764 1,341,758 Total liabilities 1,744,571 1,383,623 Commitments and contingencies (Note 6) Member’s equity 2,643,006 2,124,740 Total liabilities and member’s equity $ 4,387,577 $ 3,508,363 The accompanying notes are an integral part of the condensed financial statements. Condensed Statements of Cash Flows FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2019 2018 2017 Operating activities Net cash provided by operating activities $ 189,644 $ 97,614 $ 124,817 Investing activities Return of equity investment in tax credit fund 1,625 2,775 7,502 Contribution to subsidiary (962,170 ) (1,250 ) — Other investing — 442 (630 ) Net cash (used in) provided by investing activities (960,545 ) 1,967 6,872 Financing activities Draws on credit facility 75,000 — 73,000 Payments on credit facility (75,000 ) — (73,000 ) Issuance of long-term debt 700,000 — — Repayment of long-term debt (370,000 ) — — Payment of financing costs (5,929 ) (25 ) (269 ) Contribution from member 384,900 — — Distributions to member — (71,350 ) (84,065 ) Net cash provided by (used in) financing activities 708,971 (71,375 ) (84,334 ) Net (decrease) increase in cash and cash equivalents (61,930 ) 28,206 47,355 Cash and cash equivalents at beginning of period 76,938 48,732 1,377 Cash and cash equivalents at end of period $ 15,008 $ 76,938 $ 48,732 Supplementary cash flow information Interest paid, net of amount capitalized $ 56,768 $ 53,798 $ 52,026 Income taxes (refunded) paid, net $ (19 ) $ 2 $ (6 ) Supplementary non-cash investing and financing activity Non-cash contribution to subsidiary, net of tax $ — $ 3,865 $ — The accompanying notes are an integral part of the condensed financial statements. CLECO HOLDINGS (Parent Company Only) Notes to 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, 2019, Cleco Holdings’ restricted net assets of consolidated subsidiaries were $1.26 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 “Financial Statements and Supplementary Data — Notes to the Financial Statements — Note 2 — 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, 2019, and 2018, Cleco Holdings had no short-term debt outstanding. At December 31, 2019, Cleco Holding’s long-term debt outstanding was $1.67 billion, of which $63.3 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. In connection with the Cleco Cajun Transaction on February 4, 2019, Cleco Holdings borrowed $300.0 million under a new bridge loan agreement and $100.0 million under a new term loan agreement. Both loan agreements are variable rate debt and have a three-year term. Both loan agreements contain certain financial covenants, including requiring Cleco Holdings to maintain (i) a debt to capital ratio (as defined in the applicable agreement) below 65% and (ii) a rating applicable to Cleco Holdings’ senior debt rating (as defined in the applicable agreement). On September 11, 2019, Cleco Holdings completed the private placement of $300.0 million aggregate principal amount of its 3.375% senior notes due September 15, 2029. The proceeds from the issuance were used to repay the remaining amounts due under the $300.0 million bridge loan agreement and to repay a portion of the $100.0 million term loan agreement. The senior notes are governed by an indenture entered into between Cleco Holdings and a trustee. The indenture contains certain covenants that restrict Cleco Holdings’ ability to merge, consolidate, transfer, or lease all or substantially all of its assets or create or incur certain liens. Upon approval of the Cleco Cajun Transaction, commitments were made to the LPSC by Cleco Holdings, including repayment of $400.0 million of Cleco Holdings’ debt by December 31, 2024. As of December 31, 2019, 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 In connection with the Cleco Cajun Transaction, Cleco Holdings increased its credit facility capacity by $75.0 million, for a total credit facility of $175.0 million. All other terms remained the same. The principal amounts payable under long-term debt agreements for each year through 2024 and thereafter are as follows: AMOUNTS PAYABLE UNDER LONG-TERM DEBT ARRANGEMENTS (THOUSANDS) For the year ending Dec. 31, 2020 $ — 2021 $ 330,000 2022 $ — 2023 $ 165,000 2024 $ — Thereafter $ 1,185,000 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% 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 2019, 2018, and 2017: FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2019 2018 2017 Cleco Power $ 20,000 $ 121,400 $ 135,000 Cleco Cajun 205,000 — — Perryville — 225 6,850 Attala — 217 7,160 Total $ 225,000 $ 121,842 $ 149,010 During both years ended December 31, 2019, and 2017, Cleco Holdings made no non-cash equity contributions to affiliates. During the year ended December 31, 2018, Cleco Holdings made $1.8 million and $2.1 million in non-cash equity contributions to Perryville and Attala, respectively. 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 year ended December 31, 2018, Cleco Holdings made $1.3 million of contributions to Cleco Cajun. During the year ended December 31, 2017, Cleco Holdings made no cash contributions to affiliates. During the year ended December 31, 2019, Cleco Holdings received $384.9 million equity contributions from Cleco Group. During both years ended December 31, 2018, and 2017, Cleco Holdings received no equity contributions from Cleco Group. During the year ended December 31, 2019, Cleco Holdings made no distribution payments to Cleco Group. During the years ended December 31, 2018, and 2017, Cleco Holdings made $71.4 million and $84.1 million, respectively, of 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) 2019 2018 2017 Federal and state income tax benefit $ (20,358 ) $ (22,317 ) $ (23,094 ) Equity income from subsidiaries - federal and state income tax expense $ 63,523 $ 51,699 $ 30,173 For information regarding the TCJA, see “Financial Statements and Supplementary Data — Notes to the Financial Statements — Note 11 — Income Taxes — TCJA.” Note 5 — Commitments and Contingencies For information regarding commitments and contingencies related to Cleco Holdings, see “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 (FY) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 $ 814 $ 2,323 $ 132 $ 3,005 Year Ended Dec. 31, 2018 $ 1,457 $ 977 $ 1,620 $ 814 Year Ended Dec. 31, 2017 $ 7,199 $ 4,179 $ 9,921 $ 1,457 (1) (THOUSANDS) BALANCE AT BEGINNING OF PERIOD ADDITIONS DEDUCTIONS BALANCE AT END OF PERIOD (1) Unrestricted Storm Reserve Year Ended Dec. 31, 2019 $ 3,672 $ 4,000 $ 6,572 $ 1,100 Year Ended Dec. 31, 2018 $ 4,186 $ — $ 514 $ 3,672 Year Ended Dec. 31, 2017 $ 2,607 $ 4,000 $ 2,421 $ 4,186 Restricted Storm Reserve Year Ended Dec. 31, 2019 $ 15,485 $ 800 $ 4,000 $ 12,285 Year Ended Dec. 31, 2018 $ 14,469 $ 1,016 $ — $ 15,485 Year Ended Dec. 31, 2017 $ 17,385 $ 1,084 $ 4,000 $ 14,469 (1) 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, 2019 $ 814 $ 2,323 $ 132 $ 3,005 Year Ended Dec. 31, 2018 $ 1,457 $ 977 $ 1,620 $ 814 Year Ended Dec. 31, 2017 $ 7,199 $ 4,179 $ 9,921 $ 1,457 (1) (THOUSANDS) BALANCE AT BEGINNING OF PERIOD ADDITIONS DEDUCTIONS BALANCE AT END OF PERIOD (1) Unrestricted Storm Reserve Year Ended Dec. 31, 2019 $ 3,672 $ 4,000 $ 6,572 $ 1,100 Year Ended Dec. 31, 2018 $ 4,186 $ — $ 514 $ 3,672 Year Ended Dec. 31, 2017 $ 2,607 $ 4,000 $ 2,421 $ 4,186 Restricted Storm Reserve Year Ended Dec. 31, 2019 $ 15,485 $ 800 $ 4,000 $ 12,285 Year Ended Dec. 31, 2018 $ 14,469 $ 1,016 $ — $ 15,485 Year Ended Dec. 31, 2017 $ 17,385 $ 1,084 $ 4,000 $ 14,469 (1) |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (FY) (Policies) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Accounting Policies [Abstract] | ||
Use of Estimates | 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 | Principles of Consolidation The accompanying condensed consolidated financial statements of Cleco include the accounts of Cleco and its majority-owned subsidiaries after elimination of intercompany accounts and transactions. Cleco’s condensed consolidated financial statements include the financial results of Cleco Cajun from the closing of the Cleco Cajun Transaction on February 4, 2019, through March 31, 2020. For more information about the Cleco Cajun Transaction, see Note 2 — “Business Combinations.” | 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, 2019. For more information on the Cleco Cajun Transaction, see Note 3 — “Business Combinations.” |
Goodwill | 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 annually 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.” | |
Inatangible Assets and Liabilities | Intangible Assets and Liabilities Intangible assets include Cleco Katrina/Rita’s right to bill and collect storm recovery charges, fair value adjustments for long-term wholesale power supply agreements as well as a fair value adjustment for the valuation of the Cleco trade name. Intangible liabilities also include fair value adjustments for long-term wholesale power supply agreements and a fair value adjustment for the LTSA assumed for maintenance services related to the Cottonwood Plant. The 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. Impairment will be 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 will be 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 | Basis of Presentation The condensed consolidated financial statements of Cleco and Cleco Power have been prepared in accordance with GAAP for interim financial information and with the instructions to the Form 10-Q and Regulation S-X. Accordingly, these condensed consolidated financial statements do not include all of the information and notes required by GAAP for annual financial statements. The year-end condensed consolidated balance sheet data was derived from audited financial statements. Because the interim condensed consolidated financial statements and the accompanying notes do not include all of the information and notes required by GAAP for annual financial statements, the condensed consolidated financial statements and other information included in this Quarterly Report on Form 10-Q should be read in conjunction with the consolidated financial statements and accompanying notes in the Registrants’ Combined Annual Report on Form 10-K for the fiscal year ended December 31, 2019. These condensed consolidated financial statements, in the opinion of management, reflect all normal recurring adjustments that are necessary to fairly state the financial position and results of operations of Cleco and Cleco Power. Amounts reported in Cleco and Cleco Power’s interim financial statements are not necessarily indicative of amounts expected for the annual periods due to the effects of seasonal temperature variations on energy consumption, regulatory rulings, the timing of maintenance on electric generating units, changes in mark-to-market valuations, changing commodity prices, discrete income tax items, and other factors. On March 11, 2020, the World Health Organization declared the current outbreak of COVID-19 to be a global pandemic, and on March 13, 2020, the U.S. declared a national emergency. In response to these declarations and the rapid spread of COVID-19, federal, state and local governments have 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. Cleco has modified some of its business operations, as these restrictions have significantly impacted many sectors of the economy, including record levels of unemployment, with businesses, nonprofit organizations, and governmental entities modifying, curtailing, or ceasing normal operations. Cleco has also modified certain business practices to conform to government restrictions and best practices encouraged by the Centers for Disease Control and Prevention, the World Health Organization, and other governmental and regulatory authorities. 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 at this time, due to numerous uncertainties. 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 development of effective treatments, the duration of the outbreak, 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. In preparing financial statements that conform to GAAP, management must make estimates and assumptions that affect the reported amounts of assets and liabilities, the reported amounts of revenues and expenses, and the disclosure of contingent assets and liabilities at the date of the financial statements. Actual results could differ from those estimates. For information on recent authoritative guidance and its effect on financial results, see Note 3 — “Recent Authoritative Guidance.” | 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 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 on regulated operations. | 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 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 through the ratemaking process. Regulatory assets and liabilities are amortized consistent with the treatment of the related cost in the ratemaking process. Pursuant to this regulatory approval, 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 | 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. As part of the Cleco Cajun Transaction, Cleco recognized $15.3 million of AROs primarily related to the retirement of Cleco Cajun’s ash management areas. At December 31, 2019, management’s analysis confirmed that no additional adjustments were needed to update Cleco or Cleco Power’s ARO balance. For more information on Cleco Power’s current AROs, see Note 6 — “Regulatory Assets and Liabilities — AROs.” | |
Property, Plant, and Equipment | 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, 2019, and 2018 were $168.6 million and $7.2 million, respectively. The amounts of unamortized computer software costs on Cleco Power’s Consolidated Balance Sheets at December 31, 2019, and 2018 were $166.2 million and $5.8 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, 2019, 2018, and 2017 is shown in the following tables: Cleco FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2019 2018 2017 Amortization $ 4,917 $ 2,154 $ 2,367 Cleco Power FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2019 2018 2017 Amortization $ 4,321 $ 1,607 $ 1,887 Upon retirement or disposition, the cost of Cleco Power and Cleco Cajun’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 6 – 95 10 – 95 Distribution 15 – 50 15 – 50 Transmission 5 – 55 5 – 55 Other utility plant 2 – 45 5 – 45 Other property, plant, and equipment 5 – 45 5 – 45 At December 31, 2019, and 2018, Cleco and Cleco Power’s property, plant, and equipment consisted of the following: Cleco AT DEC. 31, (THOUSANDS) 2019 2018 Utility plants Generation $ 2,812,843 $ 1,949,042 Distribution 1,153,086 1,081,650 Transmission 660,279 519,269 Other utility plant 350,683 174,010 Other property, plant, and equipment 5,364 4,506 Total property, plant, and equipment 4,982,255 3,728,477 Accumulated depreciation (454,874 ) (303,727 ) Net property, plant, and equipment $ 4,527,381 $ 3,424,750 Cleco Power AT DEC. 31, (THOUSANDS) 2019 2018 Regulated utility plants Generation $ 2,633,590 $ 2,476,733 Distribution 1,593,104 1,523,885 Transmission 805,701 731,432 Other utility plant 457,062 282,954 Total property, plant, and equipment 5,489,457 5,015,004 Accumulated depreciation (1,905,031 ) (1,804,563 ) Net property, plant, and equipment $ 3,584,426 $ 3,210,441 On February 4, 2019, Cleco acquired $741.2 million of unregulated property, plant, and equipment as a result of the Cleco Cajun Transaction. These assets were recorded at fair market value at the date of the acquisition. For more information on the Cleco Cajun Transaction, see Note 3 — “Business Combinations.” During 2019, Cleco Power’s regulated utility property, plant, and equipment increased primarily due to the in-service of the START project, St. Mary Clean Energy Center project, Terrebonne to Bayou Vista Transmission project, Coughlin Pipeline project, and general installation and rehabilitation of transmission, distribution, and generation assets. | |
Deferred Project Costs | 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, 2019, and 2018, Cleco Power had deferred $1.4 million, 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 | Fuel Inventory and Materials and Supplies Fuel inventory consists primarily of petroleum coke, coal, limestone, lignite, and natural gas used to generate electricity. 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. Both fuel inventory and materials and supplies are recorded at the lower of cost or market value using the average cost method and are issued from stock using the average cost of existing stock. Materials and supplies are recorded when purchased and subsequently charged to expense or capitalized to property, plant, and equipment when installed. | |
Accounts Receivable | Accounts Receivable Accounts receivable are recorded at the invoiced amount and do not bear interest. It is the policy of management to review the outstanding accounts receivable monthly, as well as the bad debt write-offs experienced in the past, and establish an allowance for doubtful accounts. Account balances are charged off against the allowance when management determines it is probable the receivable will not be recovered. | |
Reserves | 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 funded 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, 2019, and 2018, the general liability and workers compensation reserves together were $4.3 million and $4.8 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. | |
Cash Equivalents | 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 | Restricted Cash and Cash Equivalents Various agreements to which Cleco is subject contain covenants that restrict its use of cash. As certain provisions under these agreements are met, cash is transferred out of related escrow accounts and becomes available for its intended purposes and/or general corporate purposes. Cleco and Cleco Power’s restricted cash and cash equivalents consisted of the following: Cleco (THOUSANDS) AT MAR. 31, 2020 AT DEC. 31, 2019 Current Cleco Katrina/Rita’s storm recovery bonds $ 2,623 $ 9,632 Cleco Power’s charitable contributions 1,200 1,200 Cleco Power’s rate credit escrow 231 268 Total current 4,054 11,100 Non-current Diversified Lands’ mitigation escrow 23 21 Cleco Cajun’s defense fund 720 719 Cleco Cajun’s margin deposits 100 100 Cleco Power’s future storm restoration costs 8,315 12,269 Cleco Power’s charitable contributions 741 2,094 Total non-current 9,899 15,203 Total restricted cash and cash equivalents $ 13,953 $ 26,303 Cleco Power (THOUSANDS) AT MAR. 31, 2020 AT DEC. 31, 2019 Current Cleco Katrina/Rita’s storm recovery bonds $ 2,623 $ 9,632 Charitable contributions 1,200 1,200 Rate credit escrow 231 268 Total current 4,054 11,100 Non-current Future storm restoration costs 8,315 12,269 Charitable contributions 741 2,094 Total non-current 9,056 14,363 Total restricted cash and cash equivalents $ 13,110 $ 25,463 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 storm recovery bonds. The change from December 31, 2019, to March 31, 2020, was due to Cleco Katrina/Rita using $11.1 million for the final storm recovery bond principal payment and $0.3 million for the related final interest payment, partially offset by collections of $4.4 million net of administration fees. The remaining $2.6 million of restricted cash is expected to be used for final administrative and winding up activities of Cleco Katrina/Rita. | 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: Cleco AT DEC. 31, (THOUSANDS) 2019 2018 Current Cleco Katrina/Rita’s storm recovery bonds $ 9,632 $ 9,505 Cleco Power’s charitable contributions 1,200 1,200 Cleco Power’s rate credit escrow 268 536 Total current 11,100 11,241 Non-current Diversified Lands’ mitigation escrow 21 21 Cleco Cajun’s defense fund 719 — Cleco Cajun’s margin deposits 100 — Cleco Power’s future storm restoration costs 12,269 15,391 Cleco Power’s charitable contributions 2,094 2,753 Cleco Power’s rate credit escrow — 505 Total non-current 15,203 18,670 Total restricted cash and cash equivalents $ 26,303 $ 29,911 Cleco Power AT DEC. 31, (THOUSANDS) 2019 2018 Current Cleco Katrina/Rita’s storm recovery bonds $ 9,632 $ 9,505 Charitable contributions 1,200 1,200 Rate credit escrow 268 536 Total current 11,100 11,241 Non-current Future storm restoration costs 12,269 15,391 Charitable contributions 2,094 2,753 Rate credit escrow — 505 Total non-current 14,363 18,649 Total restricted cash and cash equivalents $ 25,463 $ 29,890 Cleco Katrina/Rita has the right to bill and collect storm restoration costs from Cleco Power’s customers. As cash is collected, it is restricted for payment of administration fees, interest, and principal on storm recovery bonds. During 2019, Cleco Katrina/Rita collected $22.2 million net of administration fees and remitted $20.6 million for scheduled storm recovery bond principal payments and $1.5 million for related interest payments. As part of the Cleco Cajun Transaction, Cleco acquired restricted cash of $0.7 million to be used by Cleco Cajun’s cooperative customers for defense funds in the event of potential takeovers. There is no further obligation of Cleco with respect to such expenses, including the replenishment of the fund. |
Equity Investments | Cleco and Cleco Power apply the equity method of accounting to report the investment in Oxbow in the consolidated financial statements. Under the equity method, the assets and liabilities of this entity are reported as Equity investment in investee on Cleco and Cleco Power’s Condensed Consolidated Balance Sheets. The revenue and expenses (excluding income taxes) of this entity are netted and reported as equity income or loss from investees on Cleco and Cleco Power’s Condensed Consolidated Statements of Income. | 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 probable. There were no impairments recorded for 2019, 2018, or 2017. For more information on Cleco’s equity investments, see Note 14 — “Variable Interest Entities.” |
Income Taxes | 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 | Cleco classifies all interest related to uncertain tax positions as a component of interest payable and interest expense.Cleco classifies income tax penalties as a component of other expense. | 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 | 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 | 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. Excise 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/Excise 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 and Cleco Power’s Consolidated Statements of Income but are reflected at gross amounts on Cleco and Cleco Power’s Consolidated Balance Sheets as a receivable until the tax is collected and as a payable until the liability is paid. Cleco currently does not have any excise taxes 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 | 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. The composite AFUDC rate, including borrowed and other funds, was 10.71% on a pretax basis (8.37% net of tax) for 2019, 9.58% on a pretax basis (7.08% net of tax) for 2018, and 11.07% on a pretax basis (6.81% net of tax) for 2017. | |
Fair Value Measurements and Disclosures | Fair Value Measurements and Disclosures Various accounting pronouncements require certain assets and liabilities to be measured at their fair values. Some assets and liabilities are required to be measured at their fair value each reporting period, while others are required to be measured only one time, generally the date of acquisition or debt issuance. Cleco and Cleco Power disclose the fair value of certain assets and liabilities by one of three levels when required for recognition purposes. For more information about fair value levels, see Note 7 — “Fair Value Accounting.” | 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.” |
Derivatives and Other Risk Management Activity | 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. Additionally, Cleco Power and Cleco Cajun are awarded and/or purchase FTRs in auctions facilitated by MISO. FTRs represent economic hedges of future congestion charges that will be incurred in serving customer load. FTRs are derivatives not designated as hedging instruments for accounting purposes. Cleco Power’s FTRs are marked-to-market with the resulting unrealized gains or losses deferred as a component of deferred fuel assets or liabilities in accordance with regulatory policy. At settlement, realized gains or losses are included in the FAC and reflected on customers’ bills as a component of the fuel charge. Cleco Cajun’s FTRs are marked-to-market with the resulting unrealized gains and losses recorded on the income statement as a component of purchased power expense. At settlement, realized gains or losses are also recorded on the income statement as a component of purchased power expense. Cleco Cajun entered into other commodity derivative contracts during the three months ended March 31, 2020. 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 for gas related derivative contracts or purchased power for power related derivative contracts. At settlement, realized gains or losses are also recorded on the income statement as a component of fuel expense for gas related derivative contracts or purchased power for power related derivative contracts. For more information on FTRs and other commodity derivatives, see Note 7 — “Fair Value Accounting — Commodity Contracts.” Cleco may also enter into contracts to mitigate the volatility in interest rate risk. These contracts include, but are not limited to, interest rate swaps and treasury rate locks. For each reporting period presented, the Registrants did not enter into any contracts to mitigate the volatility in interest rate risk. | Derivatives and Other Risk Management Activity Cleco’s Energy Market Risk Management Policy authorizes hedging of commodity price risk with physical or financially settled derivative instruments. Some of these contracts may qualify for the normal purchase, normal sale (NPNS) exception under derivative accounting guidance. Contracts that do not qualify for NPNS accounting treatment or are not elected for NPNS accounting treatment are marked-to-market and recorded on the balance sheet at their fair value. Cleco Power and Cleco Cajun are awarded and/or purchase FTRs in auctions facilitated by MISO. The majority of these FTRs are purchased in annual auctions during the second quarter, but additional FTRs may be purchased in monthly auctions. FTRs represent economic hedges of future congestion charges that will be incurred in serving customer load. FTRs are derivatives not designated as hedging instruments for accounting purposes. Cleco Power’s FTRs are marked-to-market with the resulting unrealized gains or losses deferred as a component of deferred fuel assets or liabilities in accordance with regulatory policy. At settlement, realized gains or losses are included in the FAC and reflected on customers’ bills as a component of the fuel charge. Cleco Cajun’s FTRs are marked-to-market with the resulting unrealized gains and losses recorded on the income statement as a component of purchased power expense. At settlement, realized gains or losses are also recorded on the income statement as a component of purchased power expense. Cleco Cajun entered into other commodity derivative contracts during 2019. 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 — 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 | 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 | Leases Cleco accounts for leases in accordance with accounting guidance effective January 1, 2019. For more information on this guidance, see — “Recent Authoritative Guidance.” Cleco determines if a contract is a lease at its inception. If a contract is determined to be a lease, Cleco recognizes a ROU asset and lease liability at the commencement date based on the present value of lease payments over the lease term. The present value of the lease payments is determined by using the implicit interest rate if readily determinable. Cleco’s incremental borrowing rate for a term similar to the duration of the lease based on information available at the commencement date is used if the implicit interest rate is not readily determinable. Cleco recognizes ROU assets and lease liabilities for leasing arrangements with terms greater than one year. Except for the marine transportation asset class, Cleco accounts for lease and non-lease components in a contract as a single lease component for all classes of underlying assets. Cleco’s marine transportation contracts, which include barges and towboats, contain non-lease components, such as maintenance and labor. Cleco allocates the consideration in these contracts between lease and non-lease components based on estimates of fair value from third parties that typically execute leases for this class of assets. Expense for a lessee operating lease is recognized as a single lease cost on a straight-line basis over the lease term and reflected in the appropriate income statement line item based on the leased asset’s function. Income for a lessor operating lease is recognized as a single lease income item on a straight-line basis over the lease term and reflected in the appropriate income statement line item based on the lease asset’s function. | |
Leases | Leases Cleco accounts for leases in accordance with accounting guidance effective January 1, 2019. For more information on this guidance, see — “Recent Authoritative Guidance.” Cleco determines if a contract is a lease at its inception. If a contract is determined to be a lease, Cleco recognizes a ROU asset and lease liability at the commencement date based on the present value of lease payments over the lease term. The present value of the lease payments is determined by using the implicit interest rate if readily determinable. Cleco’s incremental borrowing rate for a term similar to the duration of the lease based on information available at the commencement date is used if the implicit interest rate is not readily determinable. Cleco recognizes ROU assets and lease liabilities for leasing arrangements with terms greater than one year. Except for the marine transportation asset class, Cleco accounts for lease and non-lease components in a contract as a single lease component for all classes of underlying assets. Cleco’s marine transportation contracts, which include barges and towboats, contain non-lease components, such as maintenance and labor. Cleco allocates the consideration in these contracts between lease and non-lease components based on estimates of fair value from third parties that typically execute leases for this class of assets. Expense for a lessee operating lease is recognized as a single lease cost on a straight-line basis over the lease term and reflected in the appropriate income statement line item based on the leased asset’s function. Income for a lessor operating lease is recognized as a single lease income item on a straight-line basis over the lease term and reflected in the appropriate income statement line item based on the lease asset’s function. | |
Recent Authoritative Guidance | In June 2016, FASB amended the guidance for the measurement of credit losses on receivables and certain other assets. In-scope items for Cleco include unbilled revenue, trade receivables, notes receivables, other accounts receivables, and guarantees. The guidance requires use of a current expected loss model, which may result in earlier recognition of credit losses. Effective January 1, 2020, Cleco adopted the amended guidance using the prospective transition method. Adoption of this standard resulted in a $0.1 million increase in credit loss reserves related to unbilled revenue and trade receivables. The current expected credit loss model did not impact reserves related to any other in-scope items. For more information on Cleco’s accounting for credit losses, see Note 1 — “Summary of Significant Accounting Policies — Reserves for Credit Losses.” In August 2018, FASB issued guidance that allows for the deferral of certain implementation costs incurred in a cloud computing arrangement. Effective January 1, 2020, Cleco adopted the guidance using the prospective transition method. Adoption of this guidance did not materially impact the Registrants’ results of operations, financial condition, or cash flows. In March 2020, FASB issued amendments that are elective and apply to all entities, subject to 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 amendments include 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 amendment became effective March 12, 2020. Management is evaluating this guidance and the impact it may have on the Registrants’ results of operations, financial condition, or cash flows. | Recent Authoritative Guidance In February 2016, FASB amended the guidance to account for leases. Effective January 1, 2019, Cleco adopted the amended guidance using the optional transition method that allows an entity to recognize a cumulative-effect adjustment to the opening balance of retained earnings at the date of adoption, apply the new disclosure requirements beginning in the period of adoption, and continue to present comparative period information as required under previous guidance. In addition, Cleco elected the transition practical expedient that permits an entity to not reassess prior conclusions about lease identification, lease classification, and initial direct costs under the new standard, as well as the practical expedient that permits entities to not assess existing land easements under the new standard. Adoption of this standard resulted in the recognition of ROU assets and lease liabilities for Cleco and Cleco Power’s operating leases of $16.1 million and $15.9 million, respectively. There was no impact to retained earnings as a result of adopting this standard. Adoption of this standard did not materially impact the Registrants’ results of operations or liquidity, and their accounting for finance leases is substantially unchanged. For more information on Cleco’s lease obligations, see Note 4 — “Leases.” In June 2016, FASB amended the guidance for the measurement of credit losses on receivables and certain other assets. The guidance requires use of a current expected loss model, which may result in earlier recognition of credit losses. The adoption of this guidance is effective for fiscal years beginning after December 15, 2019, including interim periods within those years. Management does not expect this guidance to have a significant impact on the results of operations, financial condition, or cash flows of the Registrants. In August 2018, FASB issued guidance that allows for the deferral of certain implementation costs incurred in a cloud computing arrangement. The adoption of this guidance is effective for annual reporting periods beginning after December 15, 2019, including interim periods within those years. Early adoption is permitted. Management does not expect this guidance to have significant impact on the results of operations, financial condition, or cash flows of the Registrants. |
Revenue Recognition (FY) (Polic
Revenue Recognition (FY) (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
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 last meter reading 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 accrued estimated refunds to Cleco Power’s retail customers for the tax related benefits of the TCJA. Wholesale Revenue Cleco’s wholesale revenue is generated primarily through the sale of energy and capacity to cooperatives, municipalities, and the MISO transmission provider. Cleco also enters into transactions through MISO for spot energy sales which are transacted in the Day-Ahead Energy and Operating Reserves Market and the Real-Time Energy and Operating Reserves Market. The electricity revenue performance obligations, representing both energy and capacity, are satisfied as a series of performance obligations, and progress towards satisfaction of the performance obligations are measured using an output method. The energy performance obligation measure of progress is based on kWh delivered. The capacity performance obligation measure of progress is based on time elapsed and is recognized each month as Cleco’s generating units stand ready to deliver electricity to the customer. Cleco recognizes wholesale revenue, inclusive of both performance obligations, under the invoice practical expedient for the amount Cleco has the right to invoice. Cleco, through Cleco Power and Cleco Cajun, charges its wholesale customers market based rates that are subject to FERC’s triennial market power analysis. 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 is recognized upon delivery of the transmission service. For Cleco Power, revenue from the transmission of electricity is recorded based on a FERC-approved annual formula rate mechanism. This mechanism provides for an annual filing of revenue requirements with rates effective June 1 of each year. For Cleco Cajun, revenue from the transmission of electricity is recorded based on a FERC-approved annual filing rate mechanism effective June 1 of each year. Cleco Cajun charges transmission rates based on its cost to provide transmission services. Other Revenue Other revenue from contracts with customers, which is not a significant source of Cleco’s revenue, includes Cleco Power’s Teche Unit 3 SSR revenue and miscellaneous fees. The performance obligation under these contracts is satisfied and revenue is recognized as control of the products is delivered or services are rendered. |
Pension Plan and Employee Ben_3
Pension Plan and Employee Benefits (FY) (Policies) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Retirement Benefits [Abstract] | ||
Pension Plan and Employee Benefits | Employees hired before August 1, 2007, are covered by a non-contributory, defined benefit pension plan. In September 2019, Cleco made a $12.3 million discretionary contribution to the pension plan. Based on updated funding assumptions at December 31, 2019, management estimates that $66.5 million in pension contributions will be required through 2024. Cleco expects to make a $15.5 million minimum required contribution to the pension plan in 2020. Cleco Power is the plan sponsor and Support Group is the plan administrator. The plan was amended on February 4, 2019, to include certain former NRG Energy employees who are now Cleco Cajun employees. The Cleco Cajun employees are eligible to participate as a cash balance participant and are credited with all service that was credited to them under the NRG Pension Plan as of February 4, 2019. Benefits under the plan amendment reflect an employee’s years of service, age at retirement, and accrued benefit at retirement. Cleco’s retirees may be eligible to receive Other Benefits. Dependents of Cleco’s retirees may also be eligible to receive Other Benefits with the exception of life insurance benefits. The non-service components of net periodic pension and Other Benefits cost are included in Other income (expense), net within Cleco and Cleco Power’s Condensed Consolidated Statements of Income. Certain Cleco officers are covered by SERP. Cleco does not fund the SERP liability, but instead pays for current benefits out of the general funds available. Cleco Power has formed a rabbi trust. The life insurance policies issued on SERP participants designate the rabbi trust as the beneficiary. Market conditions could have a significant impact on the cash surrender value of the life insurance policies. Proceeds from the life insurance policies are expected to be used to pay the SERP participants’ death benefits, as well as future SERP payments. However, because SERP is a non-qualified plan, the assets of the trust could be used to satisfy general creditors of Cleco Power in the event of insolvency. All SERP benefits are paid out of the general cash available of the respective companies that employed the officer. Cleco Power is the plan sponsor and Support Group is the plan administrator. The non-service components of net periodic benefit cost related to SERP are included in Other income (expense), net within Cleco and Cleco Power’s Condensed Consolidated Statements of Income.Cleco’s 401(k) Plan is intended to provide active, eligible employees with voluntary, long-term savings and investment opportunities. The 401(k) Plan is a defined contribution plan and is subject to the applicable provisions of the Employee Retirement Income Security Act of 1974. In accordance with the 401(k) Plan, employer contributions are made in the form of cash. Cash contributions are invested in proportion to the participant’s voluntary contribution investment choices. Participation in the Plan is voluntary, and active Cleco employees are eligible to participate. | Pension Plan and Other Benefits Plan Employees hired before August 1, 2007, are covered by a non-contributory, defined benefit pension plan. In September 2019, Cleco made a $12.3 million discretionary contribution to the pension plan. Based on updated funding assumptions at December 31, 2019, management estimates that $66.5 million in pension contributions will be required through 2024. Cleco expects to make a $15.5 million minimum required contribution to the pension plan in 2020. Cleco Power is the plan sponsor and Support Group is the plan administrator. The plan was amended on February 4, 2019, to include certain former NRG Energy employees who are now Cleco Cajun employees. The Cleco Cajun employees are eligible to participate as a cash balance participant and are credited with all service that was credited to them under the NRG Pension Plan as of February 4, 2019. Benefits under the plan amendment reflect an employee’s years of service, age at retirement, and accrued benefit at retirement. Cleco’s retirees may be eligible to receive Other Benefits. Dependents of Cleco’s retirees may also be eligible to receive Other Benefits with the exception of life insurance benefits. The non-service components of net periodic pension and Other Benefits cost are included in Other income (expense), net within Cleco and Cleco Power’s Condensed Consolidated Statements of Income. Certain Cleco officers are covered by SERP. Cleco does not fund the SERP liability, but instead pays for current benefits out of the general funds available. Cleco Power has formed a rabbi trust. The life insurance policies issued on SERP participants designate the rabbi trust as the beneficiary. Market conditions could have a significant impact on the cash surrender value of the life insurance policies. Proceeds from the life insurance policies are expected to be used to pay the SERP participants’ death benefits, as well as future SERP payments. However, because SERP is a non-qualified plan, the assets of the trust could be used to satisfy general creditors of Cleco Power in the event of insolvency. All SERP benefits are paid out of the general cash available of the respective companies that employed the officer. Cleco Power is the plan sponsor and Support Group is the plan administrator. The non-service components of net periodic benefit cost related to SERP are included in Other income (expense), net within Cleco and Cleco Power’s Condensed Consolidated Statements of Income.Cleco’s 401(k) Plan is intended to provide active, eligible employees with voluntary, long-term savings and investment opportunities. The 401(k) Plan is a defined contribution plan and is subject to the applicable provisions of the Employee Retirement Income Security Act of 1974. In accordance with the 401(k) Plan, employer contributions are made in the form of cash. Cash contributions are invested in proportion to the participant’s voluntary contribution investment choices. Participation in the Plan is voluntary, and active Cleco employees are eligible to participate. |
Disclosures about Segments (F_2
Disclosures about Segments (FY) (Policies) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting [Abstract] | ||
Segment Reporting | The financial results in the following tables are presented on an accrual basis. Management evaluates the performance of its segments and allocates resources to them based on segment profit and the requirements to implement strategic initiatives and projects to meet current business objectives. Material intercompany transactions occur on a regular basis. These intercompany transactions relate primarily to joint and common administrative support services as well as transmission services provided by Cleco Power to Cleco Cajun. | The financial results in the following tables are presented on an accrual basis. The historical segment information was not recast because the Cleco Cajun segment only consists of the newly acquired business. There were no other changes to Cleco’s existing reportable segments. Management evaluates the performance of its segments and allocates resources to them based on segment profit and the requirements to implement strategic initiatives and projects to meet current business objectives. Material intercompany transactions occur on a regular basis. These intercompany transactions relate primarily to joint and common administrative support services as well as transmission services provided by Cleco Power to Cleco Cajun. |
Variable Interest Entities (F_2
Variable Interest Entities (FY) (Policies) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Variable Interest Entities | Cleco and Cleco Power apply the equity method of accounting to report the investment in Oxbow in the consolidated financial statements. Under the equity method, the assets and liabilities of this entity are reported as Equity investment in investee on Cleco and Cleco Power’s Condensed Consolidated Balance Sheets. The revenue and expenses (excluding income taxes) of this entity are netted and reported as equity income or loss from investees on Cleco and Cleco Power’s Condensed Consolidated Statements of Income. | 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. |
Intangible Assets, Intangible_2
Intangible Assets, Intangible Liabilities, and Goodwill (FY) (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | During 2008, Cleco Katrina/Rita acquired a $177.5 million intangible asset which includes $176.0 million for the right to bill and collect storm recovery charges from customers of Cleco Power and $1.5 million of financing costs. This intangible asset is expected to be fully amortized in 2020. The intangible asset’s expected amortization expense is based on the estimated collections from Cleco Power’s customers. At the end of its life, the asset will have no residual value. 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. The fair value of intangible assets of $98.9 million and intangible liabilities of $14.2 million was reflected in the purchase price allocation. At the end of their life, these intangible assets and liabilities will have no residual value. These intangibles are amortized over the remaining life of each applicable contract ranging between two years and eight years. The amortization is included in Electric operations on Cleco’s Consolidated Statement of Income. |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Q1) (Policies) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Accounting Policies [Abstract] | ||
Principles of Consolidation | Principles of Consolidation The accompanying condensed consolidated financial statements of Cleco include the accounts of Cleco and its majority-owned subsidiaries after elimination of intercompany accounts and transactions. Cleco’s condensed consolidated financial statements include the financial results of Cleco Cajun from the closing of the Cleco Cajun Transaction on February 4, 2019, through March 31, 2020. For more information about the Cleco Cajun Transaction, see Note 2 — “Business Combinations.” | 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, 2019. For more information on the Cleco Cajun Transaction, see Note 3 — “Business Combinations.” |
Basis of Presentation | Basis of Presentation The condensed consolidated financial statements of Cleco and Cleco Power have been prepared in accordance with GAAP for interim financial information and with the instructions to the Form 10-Q and Regulation S-X. Accordingly, these condensed consolidated financial statements do not include all of the information and notes required by GAAP for annual financial statements. The year-end condensed consolidated balance sheet data was derived from audited financial statements. Because the interim condensed consolidated financial statements and the accompanying notes do not include all of the information and notes required by GAAP for annual financial statements, the condensed consolidated financial statements and other information included in this Quarterly Report on Form 10-Q should be read in conjunction with the consolidated financial statements and accompanying notes in the Registrants’ Combined Annual Report on Form 10-K for the fiscal year ended December 31, 2019. These condensed consolidated financial statements, in the opinion of management, reflect all normal recurring adjustments that are necessary to fairly state the financial position and results of operations of Cleco and Cleco Power. Amounts reported in Cleco and Cleco Power’s interim financial statements are not necessarily indicative of amounts expected for the annual periods due to the effects of seasonal temperature variations on energy consumption, regulatory rulings, the timing of maintenance on electric generating units, changes in mark-to-market valuations, changing commodity prices, discrete income tax items, and other factors. On March 11, 2020, the World Health Organization declared the current outbreak of COVID-19 to be a global pandemic, and on March 13, 2020, the U.S. declared a national emergency. In response to these declarations and the rapid spread of COVID-19, federal, state and local governments have 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. Cleco has modified some of its business operations, as these restrictions have significantly impacted many sectors of the economy, including record levels of unemployment, with businesses, nonprofit organizations, and governmental entities modifying, curtailing, or ceasing normal operations. Cleco has also modified certain business practices to conform to government restrictions and best practices encouraged by the Centers for Disease Control and Prevention, the World Health Organization, and other governmental and regulatory authorities. 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 at this time, due to numerous uncertainties. 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 development of effective treatments, the duration of the outbreak, 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. In preparing financial statements that conform to GAAP, management must make estimates and assumptions that affect the reported amounts of assets and liabilities, the reported amounts of revenues and expenses, and the disclosure of contingent assets and liabilities at the date of the financial statements. Actual results could differ from those estimates. For information on recent authoritative guidance and its effect on financial results, see Note 3 — “Recent Authoritative Guidance.” | 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. |
Restricted Cash and 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 corporate purposes. Cleco and Cleco Power’s restricted cash and cash equivalents consisted of the following: Cleco (THOUSANDS) AT MAR. 31, 2020 AT DEC. 31, 2019 Current Cleco Katrina/Rita’s storm recovery bonds $ 2,623 $ 9,632 Cleco Power’s charitable contributions 1,200 1,200 Cleco Power’s rate credit escrow 231 268 Total current 4,054 11,100 Non-current Diversified Lands’ mitigation escrow 23 21 Cleco Cajun’s defense fund 720 719 Cleco Cajun’s margin deposits 100 100 Cleco Power’s future storm restoration costs 8,315 12,269 Cleco Power’s charitable contributions 741 2,094 Total non-current 9,899 15,203 Total restricted cash and cash equivalents $ 13,953 $ 26,303 Cleco Power (THOUSANDS) AT MAR. 31, 2020 AT DEC. 31, 2019 Current Cleco Katrina/Rita’s storm recovery bonds $ 2,623 $ 9,632 Charitable contributions 1,200 1,200 Rate credit escrow 231 268 Total current 4,054 11,100 Non-current Future storm restoration costs 8,315 12,269 Charitable contributions 741 2,094 Total non-current 9,056 14,363 Total restricted cash and cash equivalents $ 13,110 $ 25,463 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 storm recovery bonds. The change from December 31, 2019, to March 31, 2020, was due to Cleco Katrina/Rita using $11.1 million for the final storm recovery bond principal payment and $0.3 million for the related final interest payment, partially offset by collections of $4.4 million net of administration fees. The remaining $2.6 million of restricted cash is expected to be used for final administrative and winding up activities of Cleco Katrina/Rita. | 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: Cleco AT DEC. 31, (THOUSANDS) 2019 2018 Current Cleco Katrina/Rita’s storm recovery bonds $ 9,632 $ 9,505 Cleco Power’s charitable contributions 1,200 1,200 Cleco Power’s rate credit escrow 268 536 Total current 11,100 11,241 Non-current Diversified Lands’ mitigation escrow 21 21 Cleco Cajun’s defense fund 719 — Cleco Cajun’s margin deposits 100 — Cleco Power’s future storm restoration costs 12,269 15,391 Cleco Power’s charitable contributions 2,094 2,753 Cleco Power’s rate credit escrow — 505 Total non-current 15,203 18,670 Total restricted cash and cash equivalents $ 26,303 $ 29,911 Cleco Power AT DEC. 31, (THOUSANDS) 2019 2018 Current Cleco Katrina/Rita’s storm recovery bonds $ 9,632 $ 9,505 Charitable contributions 1,200 1,200 Rate credit escrow 268 536 Total current 11,100 11,241 Non-current Future storm restoration costs 12,269 15,391 Charitable contributions 2,094 2,753 Rate credit escrow — 505 Total non-current 14,363 18,649 Total restricted cash and cash equivalents $ 25,463 $ 29,890 Cleco Katrina/Rita has the right to bill and collect storm restoration costs from Cleco Power’s customers. As cash is collected, it is restricted for payment of administration fees, interest, and principal on storm recovery bonds. During 2019, Cleco Katrina/Rita collected $22.2 million net of administration fees and remitted $20.6 million for scheduled storm recovery bond principal payments and $1.5 million for related interest payments. As part of the Cleco Cajun Transaction, Cleco acquired restricted cash of $0.7 million to be used by Cleco Cajun’s cooperative customers for defense funds in the event of potential takeovers. There is no further obligation of Cleco with respect to such expenses, including the replenishment of the fund. |
Reserves for Credit Losses | 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. While the LPSC has issued a moratorium on disconnects of customers for nonpayment on March 13, 2020, and Cleco’s service territory experienced a recent decline in the economy related to the COVID-19 outbreak, the economic outlook at March 31, 2020, was still within range of Cleco’s 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 RECEIVABLE OTHERS * TOTAL Balances, Dec. 31, 2019 $ 3,005 $ 1,250 $ 4,255 CECL adoption 71 — 71 Current period provision 2,498 388 2,886 Charge-offs (4,092 ) — (4,092 ) Recovery 641 — 641 Balances, Mar. 31, 2020 $ 2,123 $ 1,638 $ 3,761 * Cleco Power (THOUSANDS) ACCOUNTS RECEIVABLE Balances, Dec. 31, 2019 $ 3,005 CECL adoption 71 Current period provision 2,498 Charge-offs (4,092 ) Recovery 641 Balances, Mar. 31, 2020 $ 2,123 | |
Fair Value Measurements and Disclosures | Fair Value Measurements and Disclosures Various accounting pronouncements require certain assets and liabilities to be measured at their fair values. Some assets and liabilities are required to be measured at their fair value each reporting period, while others are required to be measured only one time, generally the date of acquisition or debt issuance. Cleco and Cleco Power disclose the fair value of certain assets and liabilities by one of three levels when required for recognition purposes. For more information about fair value levels, see Note 7 — “Fair Value Accounting.” | 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.” |
Derivatives and Other Risk Management Activity | 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. Additionally, Cleco Power and Cleco Cajun are awarded and/or purchase FTRs in auctions facilitated by MISO. FTRs represent economic hedges of future congestion charges that will be incurred in serving customer load. FTRs are derivatives not designated as hedging instruments for accounting purposes. Cleco Power’s FTRs are marked-to-market with the resulting unrealized gains or losses deferred as a component of deferred fuel assets or liabilities in accordance with regulatory policy. At settlement, realized gains or losses are included in the FAC and reflected on customers’ bills as a component of the fuel charge. Cleco Cajun’s FTRs are marked-to-market with the resulting unrealized gains and losses recorded on the income statement as a component of purchased power expense. At settlement, realized gains or losses are also recorded on the income statement as a component of purchased power expense. Cleco Cajun entered into other commodity derivative contracts during the three months ended March 31, 2020. 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 for gas related derivative contracts or purchased power for power related derivative contracts. At settlement, realized gains or losses are also recorded on the income statement as a component of fuel expense for gas related derivative contracts or purchased power for power related derivative contracts. For more information on FTRs and other commodity derivatives, see Note 7 — “Fair Value Accounting — Commodity Contracts.” Cleco may also enter into contracts to mitigate the volatility in interest rate risk. These contracts include, but are not limited to, interest rate swaps and treasury rate locks. For each reporting period presented, the Registrants did not enter into any contracts to mitigate the volatility in interest rate risk. | Derivatives and Other Risk Management Activity Cleco’s Energy Market Risk Management Policy authorizes hedging of commodity price risk with physical or financially settled derivative instruments. Some of these contracts may qualify for the normal purchase, normal sale (NPNS) exception under derivative accounting guidance. Contracts that do not qualify for NPNS accounting treatment or are not elected for NPNS accounting treatment are marked-to-market and recorded on the balance sheet at their fair value. Cleco Power and Cleco Cajun are awarded and/or purchase FTRs in auctions facilitated by MISO. The majority of these FTRs are purchased in annual auctions during the second quarter, but additional FTRs may be purchased in monthly auctions. FTRs represent economic hedges of future congestion charges that will be incurred in serving customer load. FTRs are derivatives not designated as hedging instruments for accounting purposes. Cleco Power’s FTRs are marked-to-market with the resulting unrealized gains or losses deferred as a component of deferred fuel assets or liabilities in accordance with regulatory policy. At settlement, realized gains or losses are included in the FAC and reflected on customers’ bills as a component of the fuel charge. Cleco Cajun’s FTRs are marked-to-market with the resulting unrealized gains and losses recorded on the income statement as a component of purchased power expense. At settlement, realized gains or losses are also recorded on the income statement as a component of purchased power expense. Cleco Cajun entered into other commodity derivative contracts during 2019. 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 — Commodity Contracts.” Cleco may also enter into contracts to mitigate the volatility in interest rate risk. These contracts include, but are not limited to, interest rate swaps and treasury rate locks. For each reporting period presented, the Registrants did not enter into any contracts to mitigate the volatility in interest rate risk. |
Recent Authoritative Guidance_2
Recent Authoritative Guidance (Q1) (Policies) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Accounting Changes and Error Corrections [Abstract] | ||
Recent Authoritative Guidance | In June 2016, FASB amended the guidance for the measurement of credit losses on receivables and certain other assets. In-scope items for Cleco include unbilled revenue, trade receivables, notes receivables, other accounts receivables, and guarantees. The guidance requires use of a current expected loss model, which may result in earlier recognition of credit losses. Effective January 1, 2020, Cleco adopted the amended guidance using the prospective transition method. Adoption of this standard resulted in a $0.1 million increase in credit loss reserves related to unbilled revenue and trade receivables. The current expected credit loss model did not impact reserves related to any other in-scope items. For more information on Cleco’s accounting for credit losses, see Note 1 — “Summary of Significant Accounting Policies — Reserves for Credit Losses.” In August 2018, FASB issued guidance that allows for the deferral of certain implementation costs incurred in a cloud computing arrangement. Effective January 1, 2020, Cleco adopted the guidance using the prospective transition method. Adoption of this guidance did not materially impact the Registrants’ results of operations, financial condition, or cash flows. In March 2020, FASB issued amendments that are elective and apply to all entities, subject to 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 amendments include 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 amendment became effective March 12, 2020. Management is evaluating this guidance and the impact it may have on the Registrants’ results of operations, financial condition, or cash flows. | Recent Authoritative Guidance In February 2016, FASB amended the guidance to account for leases. Effective January 1, 2019, Cleco adopted the amended guidance using the optional transition method that allows an entity to recognize a cumulative-effect adjustment to the opening balance of retained earnings at the date of adoption, apply the new disclosure requirements beginning in the period of adoption, and continue to present comparative period information as required under previous guidance. In addition, Cleco elected the transition practical expedient that permits an entity to not reassess prior conclusions about lease identification, lease classification, and initial direct costs under the new standard, as well as the practical expedient that permits entities to not assess existing land easements under the new standard. Adoption of this standard resulted in the recognition of ROU assets and lease liabilities for Cleco and Cleco Power’s operating leases of $16.1 million and $15.9 million, respectively. There was no impact to retained earnings as a result of adopting this standard. Adoption of this standard did not materially impact the Registrants’ results of operations or liquidity, and their accounting for finance leases is substantially unchanged. For more information on Cleco’s lease obligations, see Note 4 — “Leases.” In June 2016, FASB amended the guidance for the measurement of credit losses on receivables and certain other assets. The guidance requires use of a current expected loss model, which may result in earlier recognition of credit losses. The adoption of this guidance is effective for fiscal years beginning after December 15, 2019, including interim periods within those years. Management does not expect this guidance to have a significant impact on the results of operations, financial condition, or cash flows of the Registrants. In August 2018, FASB issued guidance that allows for the deferral of certain implementation costs incurred in a cloud computing arrangement. The adoption of this guidance is effective for annual reporting periods beginning after December 15, 2019, including interim periods within those years. Early adoption is permitted. Management does not expect this guidance to have significant impact on the results of operations, financial condition, or cash flows of the Registrants. |
Regulatory Assets and Liabili_3
Regulatory Assets and Liabilities (Q1) (Policies) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Regulated Operations [Abstract] | ||
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 on regulated operations. | 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 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 through the ratemaking process. Regulatory assets and liabilities are amortized consistent with the treatment of the related cost in the ratemaking process. Pursuant to this regulatory approval, 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.” |
Pension Plan and Employee Ben_4
Pension Plan and Employee Benefits (Q1) (Policies) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Retirement Benefits [Abstract] | ||
Pension Plan and Employee Benefits | Employees hired before August 1, 2007, are covered by a non-contributory, defined benefit pension plan. In September 2019, Cleco made a $12.3 million discretionary contribution to the pension plan. Based on updated funding assumptions at December 31, 2019, management estimates that $66.5 million in pension contributions will be required through 2024. Cleco expects to make a $15.5 million minimum required contribution to the pension plan in 2020. Cleco Power is the plan sponsor and Support Group is the plan administrator. The plan was amended on February 4, 2019, to include certain former NRG Energy employees who are now Cleco Cajun employees. The Cleco Cajun employees are eligible to participate as a cash balance participant and are credited with all service that was credited to them under the NRG Pension Plan as of February 4, 2019. Benefits under the plan amendment reflect an employee’s years of service, age at retirement, and accrued benefit at retirement. Cleco’s retirees may be eligible to receive Other Benefits. Dependents of Cleco’s retirees may also be eligible to receive Other Benefits with the exception of life insurance benefits. The non-service components of net periodic pension and Other Benefits cost are included in Other income (expense), net within Cleco and Cleco Power’s Condensed Consolidated Statements of Income. Certain Cleco officers are covered by SERP. Cleco does not fund the SERP liability, but instead pays for current benefits out of the general funds available. Cleco Power has formed a rabbi trust. The life insurance policies issued on SERP participants designate the rabbi trust as the beneficiary. Market conditions could have a significant impact on the cash surrender value of the life insurance policies. Proceeds from the life insurance policies are expected to be used to pay the SERP participants’ death benefits, as well as future SERP payments. However, because SERP is a non-qualified plan, the assets of the trust could be used to satisfy general creditors of Cleco Power in the event of insolvency. All SERP benefits are paid out of the general cash available of the respective companies that employed the officer. Cleco Power is the plan sponsor and Support Group is the plan administrator. The non-service components of net periodic benefit cost related to SERP are included in Other income (expense), net within Cleco and Cleco Power’s Condensed Consolidated Statements of Income.Cleco’s 401(k) Plan is intended to provide active, eligible employees with voluntary, long-term savings and investment opportunities. The 401(k) Plan is a defined contribution plan and is subject to the applicable provisions of the Employee Retirement Income Security Act of 1974. In accordance with the 401(k) Plan, employer contributions are made in the form of cash. Cash contributions are invested in proportion to the participant’s voluntary contribution investment choices. Participation in the Plan is voluntary, and active Cleco employees are eligible to participate. | Pension Plan and Other Benefits Plan Employees hired before August 1, 2007, are covered by a non-contributory, defined benefit pension plan. In September 2019, Cleco made a $12.3 million discretionary contribution to the pension plan. Based on updated funding assumptions at December 31, 2019, management estimates that $66.5 million in pension contributions will be required through 2024. Cleco expects to make a $15.5 million minimum required contribution to the pension plan in 2020. Cleco Power is the plan sponsor and Support Group is the plan administrator. The plan was amended on February 4, 2019, to include certain former NRG Energy employees who are now Cleco Cajun employees. The Cleco Cajun employees are eligible to participate as a cash balance participant and are credited with all service that was credited to them under the NRG Pension Plan as of February 4, 2019. Benefits under the plan amendment reflect an employee’s years of service, age at retirement, and accrued benefit at retirement. Cleco’s retirees may be eligible to receive Other Benefits. Dependents of Cleco’s retirees may also be eligible to receive Other Benefits with the exception of life insurance benefits. The non-service components of net periodic pension and Other Benefits cost are included in Other income (expense), net within Cleco and Cleco Power’s Condensed Consolidated Statements of Income. Certain Cleco officers are covered by SERP. Cleco does not fund the SERP liability, but instead pays for current benefits out of the general funds available. Cleco Power has formed a rabbi trust. The life insurance policies issued on SERP participants designate the rabbi trust as the beneficiary. Market conditions could have a significant impact on the cash surrender value of the life insurance policies. Proceeds from the life insurance policies are expected to be used to pay the SERP participants’ death benefits, as well as future SERP payments. However, because SERP is a non-qualified plan, the assets of the trust could be used to satisfy general creditors of Cleco Power in the event of insolvency. All SERP benefits are paid out of the general cash available of the respective companies that employed the officer. Cleco Power is the plan sponsor and Support Group is the plan administrator. The non-service components of net periodic benefit cost related to SERP are included in Other income (expense), net within Cleco and Cleco Power’s Condensed Consolidated Statements of Income.Cleco’s 401(k) Plan is intended to provide active, eligible employees with voluntary, long-term savings and investment opportunities. The 401(k) Plan is a defined contribution plan and is subject to the applicable provisions of the Employee Retirement Income Security Act of 1974. In accordance with the 401(k) Plan, employer contributions are made in the form of cash. Cash contributions are invested in proportion to the participant’s voluntary contribution investment choices. Participation in the Plan is voluntary, and active Cleco employees are eligible to participate. |
Income Taxes (Q1) (Policies)
Income Taxes (Q1) (Policies) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Investment Tax 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 expense. | 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. |
Disclosures about Segments (Q_2
Disclosures about Segments (Q1) (Policies) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting [Abstract] | ||
Segment Reporting | The financial results in the following tables are presented on an accrual basis. Management evaluates the performance of its segments and allocates resources to them based on segment profit and the requirements to implement strategic initiatives and projects to meet current business objectives. Material intercompany transactions occur on a regular basis. These intercompany transactions relate primarily to joint and common administrative support services as well as transmission services provided by Cleco Power to Cleco Cajun. | The financial results in the following tables are presented on an accrual basis. The historical segment information was not recast because the Cleco Cajun segment only consists of the newly acquired business. There were no other changes to Cleco’s existing reportable segments. Management evaluates the performance of its segments and allocates resources to them based on segment profit and the requirements to implement strategic initiatives and projects to meet current business objectives. Material intercompany transactions occur on a regular basis. These intercompany transactions relate primarily to joint and common administrative support services as well as transmission services provided by Cleco Power to Cleco Cajun. |
Variable Interest Entities (Q_2
Variable Interest Entities (Q1) (Policies) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Equity Method Investments | Cleco and Cleco Power apply the equity method of accounting to report the investment in Oxbow in the consolidated financial statements. Under the equity method, the assets and liabilities of this entity are reported as Equity investment in investee on Cleco and Cleco Power’s Condensed Consolidated Balance Sheets. The revenue and expenses (excluding income taxes) of this entity are netted and reported as equity income or loss from investees on Cleco and Cleco Power’s Condensed Consolidated Statements of Income. | 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 probable. There were no impairments recorded for 2019, 2018, or 2017. For more information on Cleco’s equity investments, see Note 14 — “Variable Interest Entities.” |
Variable Interest Entities | Cleco and Cleco Power apply the equity method of accounting to report the investment in Oxbow in the consolidated financial statements. Under the equity method, the assets and liabilities of this entity are reported as Equity investment in investee on Cleco and Cleco Power’s Condensed Consolidated Balance Sheets. The revenue and expenses (excluding income taxes) of this entity are netted and reported as equity income or loss from investees on Cleco and Cleco Power’s Condensed Consolidated Statements of Income. | 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_5
Summary of Significant Accounting Policies (FY) (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Accounting Policies [Line Items] | ||
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, 2019, 2018, and 2017 is shown in the following tables: Cleco FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2019 2018 2017 Amortization $ 4,917 $ 2,154 $ 2,367 Cleco Power FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2019 2018 2017 Amortization $ 4,321 $ 1,607 $ 1,887 The following tables present Cleco and Cleco Power’s amortization of intangible assets and liabilities: Cleco FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2019 2018 2017 Intangible assets Cleco Katrina/Rita right to bill and collect storm recover charges $ 20,576 $ 20,608 $ 16,772 Trade name $ 255 $ 255 $ 255 Power supply agreements $ 24,273 $ 9,680 $ 10,757 Intangible liabilities LTSA $ 3,194 $ — $ — Power supply agreements $ 3,234 $ — $ — | |
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 6 – 95 10 – 95 Distribution 15 – 50 15 – 50 Transmission 5 – 55 5 – 55 Other utility plant 2 – 45 5 – 45 Other property, plant, and equipment 5 – 45 5 – 45 At December 31, 2019, and 2018, Cleco and Cleco Power’s property, plant, and equipment consisted of the following: Cleco AT DEC. 31, (THOUSANDS) 2019 2018 Utility plants Generation $ 2,812,843 $ 1,949,042 Distribution 1,153,086 1,081,650 Transmission 660,279 519,269 Other utility plant 350,683 174,010 Other property, plant, and equipment 5,364 4,506 Total property, plant, and equipment 4,982,255 3,728,477 Accumulated depreciation (454,874 ) (303,727 ) Net property, plant, and equipment $ 4,527,381 $ 3,424,750 | |
Restricted Cash and Cash Equivalents | Cleco and Cleco Power’s restricted cash and cash equivalents consisted of the following: Cleco (THOUSANDS) AT MAR. 31, 2020 AT DEC. 31, 2019 Current Cleco Katrina/Rita’s storm recovery bonds $ 2,623 $ 9,632 Cleco Power’s charitable contributions 1,200 1,200 Cleco Power’s rate credit escrow 231 268 Total current 4,054 11,100 Non-current Diversified Lands’ mitigation escrow 23 21 Cleco Cajun’s defense fund 720 719 Cleco Cajun’s margin deposits 100 100 Cleco Power’s future storm restoration costs 8,315 12,269 Cleco Power’s charitable contributions 741 2,094 Total non-current 9,899 15,203 Total restricted cash and cash equivalents $ 13,953 $ 26,303 | Cleco and Cleco Power’s restricted cash and cash equivalents consisted of: Cleco AT DEC. 31, (THOUSANDS) 2019 2018 Current Cleco Katrina/Rita’s storm recovery bonds $ 9,632 $ 9,505 Cleco Power’s charitable contributions 1,200 1,200 Cleco Power’s rate credit escrow 268 536 Total current 11,100 11,241 Non-current Diversified Lands’ mitigation escrow 21 21 Cleco Cajun’s defense fund 719 — Cleco Cajun’s margin deposits 100 — Cleco Power’s future storm restoration costs 12,269 15,391 Cleco Power’s charitable contributions 2,094 2,753 Cleco Power’s rate credit escrow — 505 Total non-current 15,203 18,670 Total restricted cash and cash equivalents $ 26,303 $ 29,911 |
Cleco Power | ||
Accounting Policies [Line Items] | ||
Amortization of Computer Software | Cleco Power FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2019 2018 2017 Amortization $ 4,321 $ 1,607 $ 1,887 Cleco Power FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2019 2018 2017 Cleco Katrina/Rita right to bill and collect storm recovery charges $ 20,576 $ 20,608 $ 16,772 | |
Property, Plant, and Equipment | Cleco Power AT DEC. 31, (THOUSANDS) 2019 2018 Regulated utility plants Generation $ 2,633,590 $ 2,476,733 Distribution 1,593,104 1,523,885 Transmission 805,701 731,432 Other utility plant 457,062 282,954 Total property, plant, and equipment 5,489,457 5,015,004 Accumulated depreciation (1,905,031 ) (1,804,563 ) Net property, plant, and equipment $ 3,584,426 $ 3,210,441 | |
Restricted Cash and Cash Equivalents | Cleco Power (THOUSANDS) AT MAR. 31, 2020 AT DEC. 31, 2019 Current Cleco Katrina/Rita’s storm recovery bonds $ 2,623 $ 9,632 Charitable contributions 1,200 1,200 Rate credit escrow 231 268 Total current 4,054 11,100 Non-current Future storm restoration costs 8,315 12,269 Charitable contributions 741 2,094 Total non-current 9,056 14,363 Total restricted cash and cash equivalents $ 13,110 $ 25,463 | Cleco Power AT DEC. 31, (THOUSANDS) 2019 2018 Current Cleco Katrina/Rita’s storm recovery bonds $ 9,632 $ 9,505 Charitable contributions 1,200 1,200 Rate credit escrow 268 536 Total current 11,100 11,241 Non-current Future storm restoration costs 12,269 15,391 Charitable contributions 2,094 2,753 Rate credit escrow — 505 Total non-current 14,363 18,649 Total restricted cash and cash equivalents $ 25,463 $ 29,890 |
Business Combinations (FY) (Tab
Business Combinations (FY) (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Business Combinations [Abstract] | ||
Assets Acquired and Liabilities Assumed and Measurement Period Adjustments | 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) AT FEB. 4, 2019 Current assets Cash and cash equivalents $ 146,494 Customer and other accounts receivable 49,809 Fuel inventory 22,060 Materials and supplies 25,659 Energy risk management assets 4,193 Other current assets 10,056 Non-current assets Property, plant, and equipment, net 741,203 Prepayments 36,166 Restricted cash and cash equivalents 707 Intangible assets 98,900 Other deferred charges 133 Total assets acquired 1,135,380 Current liabilities Accounts payable 38,478 Taxes payable 723 Energy risk management liabilities 241 Other current liabilities 14,570 Non-current liabilities Accumulated deferred federal and state income taxes, net 7,165 Deferred lease revenue 58,300 Intangible liabilities 38,300 Asset retirement obligations 15,323 Operating lease liabilities 110 Total liabilities assumed 173,210 Total purchase price consideration $ 962,170 The 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 | Purchase Price Allocation (THOUSANDS) AT FEB. 4, 2019 Current assets Cash and cash equivalents $ 146,494 Customer and other accounts receivable 49,809 Fuel inventory 22,060 Materials and supplies 25,659 Energy risk management assets 4,193 Other current assets 10,056 Non-current assets Property, plant, and equipment, net 741,203 Prepayments 36,166 Restricted cash and cash equivalents 707 Intangible assets 98,900 Other deferred charges 133 Total assets acquired 1,135,380 Current liabilities Accounts payable 38,478 Taxes payable 723 Energy risk management liabilities 241 Other current liabilities 14,570 Non-current liabilities Accumulated deferred federal and state income taxes, net 7,165 Deferred lease revenue 58,300 Intangible liabilities 38,300 Asset retirement obligations 15,323 Operating lease liabilities 110 Total liabilities assumed 173,210 Total purchase price consideration $ 962,170 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 |
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 date indicated, or the future consolidated results of operations of the combined companies. Unaudited Pro Forma Financial Information (THOUSANDS) FOR THE THREE MONTHS ENDED MAR. 31, 2019 Operating revenue, net $ 381,796 Net income $ 32,986 | 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 2018 Operating revenue, net $ 1,660,362 $ 1,668,022 Net income $ 154,898 $ 170,224 |
Leases (FY) (Tables)
Leases (FY) (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Lessor, Lease, Description [Line Items] | ||
Future Minimum Lease Payments Due Under Long-Term Operating Leases | The following is a schedule by year of future minimum lease payments due under Cleco and Cleco Power’s long-term operating leases together with the present value of the net minimum lease payments as of December 31, 2019: (THOUSANDS) CLECO POWER CLECO Years ending Dec. 31, 2020 $ 3,960 $ 3,994 2021 3,409 3,443 2022 3,256 3,287 2023 3,220 3,249 2024 3,216 3,235 Thereafter 18,618 18,618 Total minimum lease payments 35,679 35,826 Less: amount representing interest 7,086 7,069 Present value of net minimum operating lease payments $ 28,593 $ 28,757 Current liabilities $ 2,935 $ 2,978 Non-current liabilities $ 25,658 $ 25,779 | |
Summary of Expected Operating Lease Payments | The following table is a summary of expected operating lease payments for Cleco and Cleco Power at December 31, 2018: (THOUSANDS) CLECO POWER CLECO HOLDINGS TOTAL Years ending Dec. 31, 2019 $ 4,030 $ 120 $ 4,150 2020 3,890 — 3,890 2021 2,789 — 2,789 2022 1,239 — 1,239 2023 1,214 — 1,214 Thereafter 7,235 — 7,235 Total operating lease payments $ 20,397 $ 120 $ 20,517 | |
Analysis of Leased Property Under Finance Leases, Supplemental Balance Sheet Information, and Property Associated with Sale Leaseback | The following is an analysis of the leased property under the finance lease: (THOUSANDS) AT DEC. 31, 2019 AT DEC. 31, 2018 Barges $ 16,800 $ 16,800 Accumulated amortization (1,960 ) (840 ) Net finance lease $ 14,840 $ 15,960 Property associated with the Cottonwood Sale Leaseback was as follows: (THOUSANDS) AT DEC. 31, 2019 Property, plant, and equipment $ 540,409 Accumulated depreciation (22,741 ) Net property, plant, and equipment $ 517,668 | |
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, 2019: (THOUSANDS) Years ending Dec. 31, 2020 $ 2,203 2021 2,203 2022 2,203 2023 2,203 2024 2,203 Thereafter 17,675 Total minimum lease payments 28,690 Less: amount representing interest 12,829 Present value of net minimum finance lease payments $ 15,861 Current liabilities $ 617 Non-current liabilities $ 15,244 | |
Future Minimum Lease Payments Due Under Finance Lease as of Prior Year | The following is a schedule by year of future minimum lease payments due under the finance lease together with the present value of the net minimum lease payments as of December 31, 2018: (THOUSANDS) Years ending Dec. 31, 2019 $ 2,611 2020 2,611 2021 2,611 2022 2,611 2023 2,611 Thereafter 23,655 Total minimum lease payments 36,710 Less: executory costs 5,817 Net minimum lease payments 30,893 Less: amount representing interest 14,475 Present value of net minimum lease payments $ 16,418 Current liabilities $ 557 Non-current liabilities $ 15,861 The principal amounts payable under the finance lease agreement for each year through 2024 and thereafter are as follows: (THOUSANDS) CLECO CLECO POWER For the year ending Dec. 31 2020 $ 617 $ 617 2021 $ 682 $ 682 2022 $ 755 $ 755 2023 $ 836 $ 836 2024 $ 925 $ 925 Thereafter $ 12,046 $ 12,046 | |
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 year ended December 31, 2019: Cleco Power (THOUSANDS) FOR THE YEAR ENDED DEC. 31, 2019 Finance lease cost Amortization of ROU assets $ 1,120 Interest on lease liabilities 1,646 Operating lease cost 4,303 Variable lease cost 515 Total lease cost $ 7,584 Cleco (THOUSANDS) FOR THE YEAR ENDED DEC. 31, 2019 Finance lease cost Amortization of ROU assets $ 1,120 Interest on lease liabilities 1,646 Operating lease cost 4,528 Variable lease cost 515 Total lease cost $ 7,809 The following tables present additional information related to Cleco and Cleco Power’s operating and finance leases as of and for the year ended December 31, 2019: AT DEC. 31, 2019 (THOUSANDS) BALANCE SHEET LINE ITEM CLECO POWER CLECO Supplemental balance sheet information ROU assets Operating Operating lease right of use assets $ 28,633 $ 28,791 Finance Property, plant, and equipment 14,840 14,840 Total ROU assets $ 43,473 $ 43,631 Current lease liabilities Operating Other current liabilities $ 2,935 $ 2,978 Finance Long-term debt and finance leases due within one year 617 617 Non-current lease liabilities Operating Operating lease liabilities 25,658 25,779 Finance Long-term debt and finance leases, net 15,244 15,244 Total lease liabilities $ 44,454 $ 44,618 Cleco Power (THOUSANDS) FOR THE YEAR ENDED DEC. 31, 2019 Supplemental cash flow information Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 4,203 Operating cash flows from finance leases $ 1,646 Financing cash flows from finance leases $ 557 ROU assets obtained in exchange for new lease liabilities $ 15,749 | |
Lease Income Under Cottonwood Sale Leaseback | Cleco Cajun’s lease income under the Cottonwood Sale Leaseback for the three months ended March 31, 2020, and 2019, was as follows: FOR THE THREE MONTHS ENDED MAR. 31, (THOUSANDS) 2020 2019 Fixed payments $ 10,000 $ 6,667 Variable payments 5,566 3,151 Amortization of deferred lease liability (1) 2,302 1,440 Total lease income $ 17,868 $ 11,258 (1) | Cleco Cajun is Cleco’s only entity with lessor arrangements. Cleco Cajun’s lease income under the Cottonwood Sale Leaseback for the year ended December 31, 2019, was as follows: (THOUSANDS) FOR THE YEAR ENDED DEC. 31, 2019 Fixed payments $ 36,667 Variable payments 20,415 Amortization of deferred lease liability (1) 8,438 Total lease income $ 65,520 (1) |
Remaining Minimum Lease Payments To Be Received | The remaining minimum lease payments to be received under the Cottonwood Sale Leaseback are as follows: (THOUSANDS) Years ending Dec. 31, 2020 $ 40,000 2021 40,000 2022 40,000 2023 40,000 2024 40,000 Thereafter 16,667 Total payments $ 216,667 | |
CLECO POWER | ||
Lessor, Lease, Description [Line Items] | ||
Total Lease Costs, Supplemental Cash Flow Information, and Other Supplemental Information | Cleco Power (THOUSANDS) FOR THE YEAR ENDED DEC. 31, 2019 Finance lease cost Amortization of ROU assets $ 1,120 Interest on lease liabilities 1,646 Operating lease cost 4,303 Variable lease cost 515 Total lease cost $ 7,584 Cleco (THOUSANDS) FOR THE YEAR ENDED DEC. 31, 2019 Supplemental cash flow information Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 4,452 Operating cash flows from finance leases $ 1,646 Financing cash flows from finance leases $ 557 ROU assets obtained in exchange for new lease liabilities $ 15,881 AT DEC. 31, 2019 (THOUSANDS) CLECO POWER CLECO Other supplemental information Operating leases Weighted-average remaining lease term 10.8 years 10.8 years Weighted-average discount rate 4.31 % 4.31 % Finance leases Weighted-average remaining lease term 13.3 years 13.3 years Weighted-average discount rate 10.18 % 10.18 % |
Revenue Recognition (FY) (Table
Revenue Recognition (FY) (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | ||
Disaggregation of Revenue | Operating revenue, net for the three months ended March 31, 2020, and 2019, was as follows: FOR THE THREE MONTHS ENDED MAR. 31, 2020 (THOUSANDS) CLECO POWER CLECO CAJUN OTHER ELIMINATIONS TOTAL Revenue from contracts with customers Retail revenue Residential (1) $ 81,571 $ — $ — $ — $ 81,571 Commercial (1) 61,110 — — — 61,110 Industrial (1) 32,210 — — — 32,210 Other retail (1) 3,461 — — — 3,461 Surcharge 2,443 — — — 2,443 Electric customer credits (8,340 ) — — — (8,340 ) Total retail revenue 172,455 — — — 172,455 Wholesale, net 42,229 (1) 89,147 (2,420 ) (2) — 128,956 Transmission, net 12,069 12,931 (3) — (1,818 ) 23,182 Other 3,695 (4) — 1 — 3,696 Affiliate (5) 1,106 161 29,278 (30,545 ) — Total revenue from contracts with customers 231,554 102,239 26,859 (32,363 ) 328,289 Revenue unrelated to contracts with customers Other 1,406 (6) 17,877 (7) — — 19,283 Total revenue unrelated to contracts with customers 1,406 17,877 — — 19,283 Operating revenue, net $ 232,960 $ 120,116 $ 26,859 $ (32,363 ) $ 347,572 (1) (2) (3) (4) (5) (6) (7) FOR THE THREE MONTHS ENDED MAR. 31, 2019 (THOUSANDS) CLECO POWER CLECO CAJUN OTHER ELIMINATIONS TOTAL Revenue from contracts with customers Retail revenue Residential (1) $ 87,148 $ — $ — $ — $ 87,148 Commercial (1) 65,380 — — — 65,380 Industrial (1) 37,870 — — — 37,870 Other retail (1) 3,681 — — — 3,681 Surcharge 5,321 — — — 5,321 Electric customer credits (8,160 ) — — — (8,160 ) Total retail revenue 191,240 — — — 191,240 Wholesale, net 55,546 (1) 58,191 (2,420 ) (2) — 111,317 Transmission 12,579 8,727 — — 21,306 Other 6,851 (3) (26 ) 2 — 6,827 Affiliate (4) 300 — 26,535 (26,835 ) — Total revenue from contracts with customers 266,516 66,892 24,117 (26,835 ) 330,690 Revenue unrelated to contracts with customers Other 2,229 (5) 11,267 (6) — — 13,496 Total revenue unrelated to contracts with customers 2,229 11,267 — — 13,496 Operating revenue, net $ 268,745 $ 78,159 $ 24,117 $ (26,835 ) $ 344,186 (1) (2) (3) (4) (5) (6) | Operating revenue, net for the year ended December 31, 2019, and 2018, was as follows: 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, net 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. FOR THE YEAR ENDED DEC. 31, 2018 (THOUSANDS) CLECO POWER OTHER ELIMINATIONS TOTAL Revenue from contracts with customers Retail revenue Residential (1) $ 435,610 $ — $ — $ 435,610 Commercial (1) 288,791 — — 288,791 Industrial (1) 167,001 — — 167,001 Other retail (1) 15,582 — — 15,582 Surcharge 23,138 — — 23,138 Electric customer credits (33,195 ) — — (33,195 Total retail revenue 896,927 — — 896,927 Wholesale, net (1) 219,598 (9,680 ) (2) — 209,918 Transmission 54,531 — — 54,531 Other (3) 27,800 2 — 27,802 Affiliate (4) 874 74,591 (75,465 ) — Total revenue from contracts with customers 1,199,730 64,913 (75,465 ) 1,189,178 Revenue unrelated to contracts with customers Other (5) 41,866 — — 41,866 Total revenue unrelated to contracts with customers 41,866 — — 41,866 Operating revenue, net $ 1,241,596 $ 64,913 $ (75,465 ) $ 1,231,044 (1) Includes fuel recovery revenue. (2) Amortization of intangible assets related to wholesale power supply agreements. (3) Other revenue from contracts with customers includes $18.2 million of other miscellaneous fee revenue and $9.6 million of Teche Unit 3 SSR revenue. (4) Affiliate revenue from contracts with customers includes interdepartmental rents and support services. This revenue is eliminated upon consolidation. (5) Includes realized gains associated with FTRs of $39.3 million and LCFC revenue of $2.6 million. |
Regulatory Assets and Liabili_4
Regulatory Assets and Liabilities (FY) (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Regulatory Assets and Liabilities [Line Items] | ||
Schedule of Regulatory Assets | The following table summarizes Cleco’s net regulatory assets and liabilities: Cleco (THOUSANDS) AT MAR. 31, 2020 AT DEC. 31, 2019 Total Cleco Power regulatory assets, net $ 144,727 $ 152,549 2016 Merger adjustments (1) Fair value of long-term debt 125,105 127,977 Postretirement costs 16,902 17,399 Financing costs 7,849 7,935 Debt issuance costs 5,504 5,665 Total Cleco regulatory assets, net $ 300,087 $ 311,525 (1) | The following table summarizes Cleco’s net regulatory assets and liabilities: Cleco AT DEC. 31, (THOUSANDS) 2019 2018 Total Cleco Power regulatory assets, net $ 152,549 $ 134,755 2016 Merger adjustments (1) Fair value of long-term debt 127,977 138,701 Postretirement costs 17,399 19,387 Financing costs 7,935 8,279 Debt issuance costs 5,665 6,252 Total Cleco regulatory assets, net $ 311,525 $ 307,374 (1) |
Schedule of Regulatory Liabilities | The following table summarizes Cleco’s net regulatory assets and liabilities: Cleco AT DEC. 31, (THOUSANDS) 2019 2018 Total Cleco Power regulatory assets, net $ 152,549 $ 134,755 2016 Merger adjustments (1) Fair value of long-term debt 127,977 138,701 Postretirement costs 17,399 19,387 Financing costs 7,935 8,279 Debt issuance costs 5,665 6,252 Total Cleco regulatory assets, net $ 311,525 $ 307,374 (1) | |
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 (THOUSANDS) AT MAR. 31, 2020 AT DEC. 31, 2019 Regulatory assets (liabilities) Deferred taxes, net $ (146,225 ) $ (146,948 ) Interest costs 3,896 3,958 AROs 3,815 3,668 Postretirement costs 147,889 151,543 Tree trimming costs 11,384 11,341 Training costs 6,202 6,241 Surcredits, net (1) 72 145 AMI deferred revenue requirement 3,000 3,136 Emergency declarations 948 1,349 Production operations and maintenance expenses 6,756 7,985 AFUDC equity gross-up (1) 71,992 72,766 Acadia Unit 1 acquisition costs 2,098 2,124 Financing costs 7,461 7,554 Coughlin transaction costs 899 906 Corporate franchise tax, net (1,145 ) (1,145 ) Non-service cost of postretirement benefits 7,551 6,739 Energy efficiency 2,820 2,820 Accumulated deferred fuel 16,353 22,910 Other, net (1,039 ) (4,543 ) Total regulatory assets, net $ 144,727 $ 152,549 (1) | The following table summarizes Cleco Power’s regulatory assets and liabilities: Cleco Power AT DEC. 31, (THOUSANDS) 2019 2018 REMAINING RECOVERY PERIOD (YRS.) Regulatory assets (liabilities) Deferred taxes, net (146,948 ) (155,537 ) * Mining costs — 1,274 — Interest costs 3,958 4,208 * AROs 3,668 3,099 * Postretirement costs 151,543 140,245 * Tree trimming costs 11,341 9,069 * Training costs 6,241 6,396 40 Surcredits, net (1) 145 289 * AMI deferred revenue requirement 3,136 3,681 6 Emergency declarations 1,349 2,980 * Production operations and maintenance expenses 7,985 12,245 * AFUDC equity gross-up (1) 72,766 71,952 * Acadia Unit 1 acquisition costs 2,124 2,230 20 Financing costs 7,554 7,923 * Coughlin transaction costs 906 938 29.5 Corporate franchise tax, net (1,145 ) 1,416 * Non-service cost of postretirement benefits 6,739 4,629 * Energy efficiency 2,820 2,585 * Accumulated deferred fuel 22,910 20,112 * Other, net (4,543 ) (4,979 ) * Total regulatory assets, net $ 152,549 $ 134,755 (1) * For information related to the remaining recovery periods, refer to the following disclosures for each specific regulatory asset. |
Schedule of Regulatory Liabilities | The following table summarizes Cleco Power’s regulatory assets and liabilities: Cleco Power (THOUSANDS) AT MAR. 31, 2020 AT DEC. 31, 2019 Regulatory assets (liabilities) Deferred taxes, net $ (146,225 ) $ (146,948 ) Interest costs 3,896 3,958 AROs 3,815 3,668 Postretirement costs 147,889 151,543 Tree trimming costs 11,384 11,341 Training costs 6,202 6,241 Surcredits, net (1) 72 145 AMI deferred revenue requirement 3,000 3,136 Emergency declarations 948 1,349 Production operations and maintenance expenses 6,756 7,985 AFUDC equity gross-up (1) 71,992 72,766 Acadia Unit 1 acquisition costs 2,098 2,124 Financing costs 7,461 7,554 Coughlin transaction costs 899 906 Corporate franchise tax, net (1,145 ) (1,145 ) Non-service cost of postretirement benefits 7,551 6,739 Energy efficiency 2,820 2,820 Accumulated deferred fuel 16,353 22,910 Other, net (1,039 ) (4,543 ) Total regulatory assets, net $ 144,727 $ 152,549 (1) | The following table summarizes Cleco Power’s regulatory assets and liabilities: Cleco Power AT DEC. 31, (THOUSANDS) 2019 2018 REMAINING RECOVERY PERIOD (YRS.) Regulatory assets (liabilities) Deferred taxes, net (146,948 ) (155,537 ) * Mining costs — 1,274 — Interest costs 3,958 4,208 * AROs 3,668 3,099 * Postretirement costs 151,543 140,245 * Tree trimming costs 11,341 9,069 * Training costs 6,241 6,396 40 Surcredits, net (1) 145 289 * AMI deferred revenue requirement 3,136 3,681 6 Emergency declarations 1,349 2,980 * Production operations and maintenance expenses 7,985 12,245 * AFUDC equity gross-up (1) 72,766 71,952 * Acadia Unit 1 acquisition costs 2,124 2,230 20 Financing costs 7,554 7,923 * Coughlin transaction costs 906 938 29.5 Corporate franchise tax, net (1,145 ) 1,416 * Non-service cost of postretirement benefits 6,739 4,629 * Energy efficiency 2,820 2,585 * Accumulated deferred fuel 22,910 20,112 * Other, net (4,543 ) (4,979 ) * Total regulatory assets, net $ 152,549 $ 134,755 (1) * For information related to the remaining recovery periods, refer to the following disclosures for each specific regulatory asset. |
Jointly Owned Generation Unit_2
Jointly Owned Generation Units (FY) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Jointly Owned Utility Plant Interests [Line Items] | |
Jointly Owned Generation Units | At December 31, 2019, 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, 2019 (THOUSANDS, EXCEPT PERCENTAGES AND MW) RODEMACHER UNIT 2 DOLET HILLS BAYOU COVE BIG CAJUN II - UNIT 3 TOTAL Utility plant in service $ 72,840 $ 179,909 $ 42,438 $ 33,291 $ 328,478 Accumulated depreciation $ 7,690 $ 22,159 $ 2,090 $ 2,163 $ 34,102 Construction work in progress $ 539 $ 5,435 $ — $ 329 $ 6,303 Ownership interest percentage 30 % 50 % 75 % 58 % Capacity (MW) 523 (1) 650 (1) 300 (2) 588 (2) Ownership interest (MW) 157 325 225 341 (1) (2) |
Cleco Power | |
Jointly Owned Utility Plant Interests [Line Items] | |
Jointly Owned Generation Units | Cleco Power AT DEC. 31, 2019 (THOUSANDS, EXCEPT PERCENTAGES AND MW) RODEMACHER UNIT 2 DOLET HILLS TOTAL Utility plant in service $ 147,020 $ 397,406 $ 544,426 Accumulated depreciation $ 81,870 $ 239,655 $ 321,525 Construction work in progress $ 539 $ 5,435 $ 5,974 Ownership interest percentage 30 % 50 % Nameplate capacity (MW) 523 650 Ownership interest (MW) 157 325 |
Fair Value Accounting (FY) (Tab
Fair Value Accounting (FY) (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Fair Value [Line Items] | ||
Fair Value By Balance Sheet Grouping | The following tables summarize the carrying value and estimated market value of Cleco and Cleco Power’s financial instruments not measured at fair value on Cleco and Cleco Power’s Condensed Consolidated Balance Sheets: Cleco AT MAR. 31, 2020 AT DEC. 31, 2019 (THOUSANDS) CARRYING VALUE* FAIR VALUE CARRYING VALUE* FAIR VALUE Long-term debt $ 3,174,821 $ 3,295,214 $ 3,188,664 $ 3,371,915 * The carrying value of long-term debt does not include deferred issuance costs of $13.2 million at March 31, 2020, and $13.7 million at December 31, 2019. | 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, 2019 2018 (THOUSANDS) CARRYING VALUE* FAIR VALUE CARRYING VALUE* FAIR VALUE Long-term debt $ 3,188,664 $ 3,371,915 $ 2,889,631 $ 2,859,924 *The carrying value of long-term debt does not include deferred issuance costs of $13.7 million at December 31, 2019, and $10.3 million at December 31, 2018. |
Fair Value of Financial Assets and Liabilities Measured On A Recurring Basis | The following tables disclose for Cleco and Cleco Power the fair value of financial assets and liabilities measured on a recurring basis: Cleco FAIR VALUE MEASUREMENTS AT REPORTING DATE (THOUSANDS) AT MAR. 31, 2020 QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) AT DEC. 31, 2019 QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) Asset description Institutional money market funds $ 352,549 $ — $ 352,549 $ — $ 129,643 $ — $ 129,643 $ — FTRs 1,779 — — 1,779 6,822 — — 6,822 Other commodity derivatives 213 — 213 — 201 — 201 — Total assets $ 354,541 $ — $ 352,762 $ 1,779 $ 136,666 $ — $ 129,844 $ 6,822 Liability description FTRs $ 683 $ — $ — $ 683 $ 1,044 $ — $ — $ 1,044 Other commodity derivatives 12,494 — 12,494 — 5,373 — 5,373 — Total liabilities $ 13,177 $ — $ 12,494 $ 683 $ 6,417 $ — $ 5,373 $ 1,044 | The following tables disclose for Cleco and Cleco Power the fair value of financial assets and liabilities measured on a recurring basis: Cleco FAIR VALUE MEASUREMENTS AT REPORTING DATE (THOUSANDS) AT DEC. 31, 2019 QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) AT DEC. 31, 2018 QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) Asset Description Institutional money market funds $ 129,643 $ — $ 129,643 $ — $ 133,722 $ — $ 133,722 $ — FTRs 6,822 — — 6,822 23,355 — — 23,355 Other commodity derivatives 201 — 201 — — — — — Total assets $ 136,666 $ — $ 129,844 $ 6,822 $ 157,077 $ — $ 133,722 $ 23,355 Liability Description FTRs $ 1,044 $ — $ — $ 1,044 $ 468 $ — $ — $ 468 Other commodity derivatives 5,373 — 5,373 — — $ — $ — $ — Total liabilities $ 6,417 $ — $ 5,373 $ 1,044 $ 468 $ — $ — $ 468 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation | The following tables summarize the net changes in the net fair value of FTR assets and liabilities classified as Level 3 in the fair value hierarchy for Cleco and Cleco Power: Cleco FOR THE THREE MONTHS ENDED MAR. 31, (THOUSANDS) 2020 2019 Beginning balance $ 5,778 $ 22,887 Unrealized losses* (1,398 ) (1,917 ) Purchases 466 5,237 Settlements (3,750 ) (18,397 ) Ending balance $ 1,096 $ 7,810 * Cleco Power’s unrealized losses are reported through Accumulated deferred fuel on Cleco’s Condensed Consolidated Balance Sheet. Cleco Cajun’s unrealized (losses) gains are reported through Purchased power on Cleco’s Condensed Consolidated Income Statement. | 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) 2019 2018 Beginning balance $ 22,887 $ 7,044 Unrealized (losses) gains * (1,659 ) 11,865 Purchases 27,881 28,185 Settlements (43,331 ) (24,207 ) Ending balance $ 5,778 $ 22,887 * Cleco Power’s unrealized (losses) gains are reported through Accumulated deferred fuel on Cleco’s Consolidated Balance Sheet. Cleco Cajun’s unrealized (losses) gains are reported through Purchased power on Cleco’s Consolidated Income Statement. |
Fair Value Measurement Inputs and Valuation Techniques | 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 March 31, 2020, and December 31, 2019: Cleco FAIR VALUE VALUATION TECHNIQUE SIGNIFICANT UNOBSERVABLE INPUTS FORWARD PRICE RANGE (THOUSANDS, EXCEPT FORWARD PRICE RANGE) ASSETS LIABILITIES LOW HIGH FTRs at Mar. 31, 2020 $ 1,779 $ 683 RTO auction pricing FTR price - per MWh $ (1.40 ) $ 2.93 FTRs at Dec. 31, 2019 $ 6,822 $ 1,044 RTO auction pricing FTR price - per MWh $ (2.57 ) $ 2.86 | 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, 2019: Cleco FAIR VALUE VALUATION TECHNIQUE SIGNIFICANT UNOBSERVABLE INPUTS FORWARD PRICE RANGE (THOUSANDS, EXCEPT DOLLAR PER MWh) Assets Liabilities Low High FTRs at December 31, 2019 $ 6,822 $ 1,044 RTO auction pricing FTR price - per MWh $ (2.57 ) $ 2.86 FTRs at December 31, 2018 $ 23,355 $ 468 RTO auction pricing FTR price - per MWh $ (4.40 ) $ 15.10 |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The following tables present the fair values of derivative instruments and their respective line items as recorded on Cleco and Cleco Power’s Condensed Consolidated Balance Sheets at March 31, 2020, and December 31, 2019: Cleco DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS (THOUSANDS) BALANCE SHEET LINE ITEM AT MAR. 31, 2020 AT DEC. 31, 2019 Commodity-related contracts FTRs Current Energy risk management assets $ 1,779 $ 6,822 Current Energy risk management liabilities (683 ) (1,044 ) Other commodity derivatives Current Energy risk management assets 213 201 Current Energy risk management liabilities (9,014 ) (3,069 ) Non-current Other deferred credits (3,480 ) (2,304 ) Commodity-related contracts, net $ (11,185 ) $ 606 | |
Effect of Derivatives On Consolidated Statements of Income | The following tables present the effect of derivatives not designated as hedging instruments on Cleco and Cleco Power’s Condensed Consolidated Statements of Income for the three months ended March 31, 2020, and 2019: Cleco AMOUNT OF GAIN(LOSS) RECOGNIZED IN INCOME ON DERIVATIVES FOR THE THREE MONTHS ENDED MAR. 31, (THOUSANDS) INCOME STATEMENT LINE ITEM 2020 2019 Commodity-related contracts FTRs (1) Electric operations $ 1,396 $ 5,209 FTRs (1) Purchased power (381 ) (3,324 ) Other commodity derivatives Fuel used for electric generation (7,108 ) — Total $ (6,093 ) $ 1,885 (1) | |
Derivatives Not Designated as Hedging Instrument | ||
Fair Value [Line Items] | ||
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | 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, 2019, and 2018: Cleco DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS (THOUSANDS) BALANCE SHEET AT DEC. 31, 2019 AT DEC. 31, 2018 Commodity related contracts FTRs Current Energy risk management assets $ 6,822 $ 23,355 Current Energy risk management liabilities 1,044 468 Other commodity derivatives Current Energy risk management assets 201 — Current Energy risk management liabilities 3,069 — Non-current Other deferred credits 2,304 — Commodity-related contracts, net $ 606 $ 22,887 | |
Effect of Derivatives On Consolidated Statements of Income | 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, 2019, 2018, and 2017: Cleco AMOUNT OF GAIN/(LOSS) RECOGNIZED IN INCOME ON DERIVATIVES FOR THE YEAR ENDED DEC. 31, (THOUSANDS) DERIVATIVES 2019 2018 2017 Commodity contracts FTRs (1) Electric operations $ 13,043 $ 39,659 $ 23,826 FTRs (1) Purchased power (15,685 ) (4,566 ) (5,509 Other commodity derivatives Fuel used for electric generation (5,172 ) — — Total $ (7,814 ) $ 35,093 $ 18,317 (1) Cleco Power AMOUNT OF GAIN/(LOSS) FOR THE YEAR ENDED DEC. 31, (THOUSANDS) DERIVATIVES 2019 2018 2017 Commodity contracts FTRs (1) Electric operations $ 13,047 $ 39,659 $ 23,826 FTRs (1) Purchased power (6,066 ) (4,566 ) (5,509 ) Total $ 6,981 $ 35,093 $ 18,317 | |
Cleco Power | ||
Fair Value [Line Items] | ||
Fair Value By Balance Sheet Grouping | Cleco Power AT MAR. 31, 2020 AT DEC. 31, 2019 (THOUSANDS) CARRYING VALUE* FAIR VALUE CARRYING VALUE* FAIR VALUE Long-term debt $ 1,369,716 $ 1,696,053 $ 1,380,688 $ 1,601,865 * The carrying value of long-term debt does not include deferred issuance costs of $7.2 million at March 31, 2020, and $7.4 million at December 31, 2019. | Cleco Power AT DEC. 31, 2019 2018 (THOUSANDS) CARRYING VALUE* FAIR VALUE CARRYING VALUE* FAIR VALUE Long-term debt $ 1,380,688 $ 1,601,865 $ 1,400,930 $ 1,517,152 * The carrying value of long-term debt does not include deferred issuance costs of $7.4 million at December 31, 2019, and $8.3 million at December 31, 2018. |
Fair Value of Financial Assets and Liabilities Measured On A Recurring Basis | Cleco Power FAIR VALUE MEASUREMENTS AT REPORTING DATE (THOUSANDS) AT MAR. 31, 2020 QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) AT DEC. 31, 2019 QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) Asset description Institutional money market funds $ 198,006 $ — $ 198,006 $ — $ 74,903 $ — $ 74,903 $ — FTRs 1,673 — — 1,673 6,311 — — 6,311 Total assets $ 199,679 $ — $ 198,006 $ 1,673 $ 81,214 $ — $ 74,903 $ 6,311 Liability description FTRs $ 524 $ — $ — $ 524 $ 586 $ — $ — $ 586 Total liabilities $ 524 $ — $ — $ 524 $ 586 $ — $ — $ 586 | Cleco Power FAIR VALUE MEASUREMENTS AT REPORTING DATE (THOUSANDS) AT DEC. 31, 2019 QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) AT DEC. 31, 2018 QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) Asset Description Institutional money market funds $ 74,903 $ — $ 74,903 $ — $ 55,900 $ — $ 55,900 $ — FTRs 6,311 — — 6,311 23,355 — — 23,355 Total assets $ 81,214 $ — $ 74,903 $ 6,311 $ 79,255 $ — $ 55,900 $ 23,355 Liability Description FTRs $ 586 $ — $ — $ 586 $ 468 $ — $ — $ 468 Total liabilities $ 586 $ — $ — $ 586 $ 468 $ — $ — $ 468 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation | Cleco Power FOR THE THREE MONTHS ENDED MAR. 31, (THOUSANDS) 2020 2019 Beginning balance $ 5,725 $ 22,887 Unrealized losses* (1,311 ) (2,939 ) Purchases 466 1,286 Settlements (3,731 ) (16,422 ) Ending balance $ 1,149 $ 4,812 * Unrealized losses are reported through Accumulated deferred fuel on Cleco Power’s Condensed Consolidated Balance Sheet. | Cleco Power FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2019 2018 Beginning balance $ 22,887 $ 7,044 Unrealized (losses) gains * (945 ) 11,865 Purchases 21,609 28,185 Settlements (37,826 ) (24,207 ) Ending balance $ 5,725 $ 22,887 * Unrealized gains (losses) are reported through Accumulated deferred fuel on Cleco Power’s Consolidated Balance Sheets. |
Fair Value Measurement Inputs and Valuation Techniques | Cleco Power FAIR VALUE VALUATION TECHNIQUE SIGNIFICANT UNOBSERVABLE INPUTS FORWARD PRICE RANGE (THOUSANDS, EXCEPT FORWARD PRICE RANGE) ASSETS LIABILITIES LOW HIGH FTRs at Mar. 31, 2020 $ 1,673 $ 524 RTO auction pricing FTR price - per MWh $ (1.40 ) $ 2.93 FTRs at Dec. 31, 2019 $ 6,311 $ 586 RTO auction pricing FTR price - per MWh $ (2.04 ) $ 2.86 | Cleco Power FAIR VALUE VALUATION TECHNIQUE SIGNIFICANT UNOBSERVABLE INPUTS FORWARD PRICE RANGE (THOUSANDS, EXCEPT DOLLAR PER MWh) Assets Liabilities Low High FTRs at December 31, 2019 $ 6,311 $ 586 RTO auction pricing FTR price - per MWh $ (2.04 ) $ 2.86 FTRs at December 31, 2018 $ 23,355 $ 468 RTO auction pricing FTR price - per MWh $ (4.40 ) $ 15.10 |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | Cleco Power DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS (THOUSANDS) BALANCE SHEET LINE ITEM AT MAR. 31, 2020 AT DEC. 31, 2019 Commodity-related contracts FTRs Current Energy risk management assets $ 1,673 $ 6,311 Current Energy risk management liabilities (524 ) (586 ) Commodity-related contracts, net $ 1,149 $ 5,725 | |
Effect of Derivatives On Consolidated Statements of Income | Cleco Power AMOUNT OF GAIN(LOSS) RECOGNIZED IN INCOME ON DERIVATIVES FOR THE THREE MONTHS ENDED MAR. 31, (THOUSANDS) INCOME STATEMENT LINE ITEM 2020 2019 Commodity-related contracts FTRs (1) Electric operations $ 1,396 $ 5,206 FTRs (1) Purchased power (751 ) (1,983 ) Total $ 645 $ 3,223 (1) | |
Cleco Power | Derivatives Not Designated as Hedging Instrument | ||
Fair Value [Line Items] | ||
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | Cleco Power DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS (THOUSANDS) BALANCE SHEET AT DEC. 31, 2019 AT DEC. 31, 2018 Commodity related contracts FTRs Current Energy risk management assets $ 6,311 $ 23,355 Current Energy risk management liabilities 586 468 Commodity-related contracts, net $ 5,725 $ 22,887 | |
Effect of Derivatives On Consolidated Statements of Income | Cleco Power AMOUNT OF GAIN/(LOSS) FOR THE YEAR ENDED DEC. 31, (THOUSANDS) DERIVATIVES 2019 2018 2017 Commodity contracts FTRs (1) Electric operations $ 13,047 $ 39,659 $ 23,826 FTRs (1) Purchased power (6,066 ) (4,566 ) (5,509 ) Total $ 6,981 $ 35,093 $ 18,317 (1) |
Debt (FY) (Tables)
Debt (FY) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Instrument [Line Items] | |
Total Indebtedness | Cleco’s total indebtedness as of December 31, 2019, and 2018 was as follows: Cleco AT DEC. 31, (THOUSANDS) 2019 2018 Total Cleco Power long term debt and finance leases, net $ 1,327,372 $ 1,387,774 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 — Senior notes, 4.973%, due 2046 350,000 350,000 Bank term loan, variable rate, due 2021 300,000 300,000 Bank term loan, variable rate, due 2021 30,000 — Long-term debt due within one year (64,398 ) — Unamortized debt issuance costs (1) (6,271 ) (1,989 ) Fair value adjustment 127,976 138,700 Total Cleco long-term debt and finance leases, net $ 3,064,679 $ 2,874,485 (1) |
Future Amounts Payable Under Long-Term Debt Agreements | The principal amounts payable under long-term debt agreements for each year through 2024 and thereafter are as follows: (THOUSANDS) CLECO CLECO POWER For the year ending Dec. 31 2020 (1) $ 11,055 $ 11,055 2021 $ 330,000 $ — 2022 $ 25,000 $ 25,000 2023 $ 265,000 $ 100,000 2024 $ 50,000 $ 50,000 Thereafter $ 2,385,000 $ 1,200,000 (1) As of December 31, 2019, 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 |
Schedule of Future Minimum Lease Payments for Capital Leases | The following is a schedule by year of future minimum lease payments due under the finance lease together with the present value of the net minimum lease payments as of December 31, 2018: (THOUSANDS) Years ending Dec. 31, 2019 $ 2,611 2020 2,611 2021 2,611 2022 2,611 2023 2,611 Thereafter 23,655 Total minimum lease payments 36,710 Less: executory costs 5,817 Net minimum lease payments 30,893 Less: amount representing interest 14,475 Present value of net minimum lease payments $ 16,418 Current liabilities $ 557 Non-current liabilities $ 15,861 The principal amounts payable under the finance lease agreement for each year through 2024 and thereafter are as follows: (THOUSANDS) CLECO CLECO POWER For the year ending Dec. 31 2020 $ 617 $ 617 2021 $ 682 $ 682 2022 $ 755 $ 755 2023 $ 836 $ 836 2024 $ 925 $ 925 Thereafter $ 12,046 $ 12,046 |
Cleco Power | |
Debt Instrument [Line Items] | |
Total Indebtedness | Cleco Power’s total indebtedness as of December 31, 2019, and 2018 was as follows: Cleco Power AT DEC. 31, (THOUSANDS) 2019 2018 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 Series A GO Zone bonds, 2.00%, due 2038, mandatory tender in 2020 50,000 50,000 Series B GO Zone bonds, 4.25%, due 2038 50,000 50,000 Cleco Katrina/Rita’s storm recovery bonds, 5.61%, due 2023 11,055 31,625 Total bonds 1,386,055 1,406,625 Finance leases Barge lease obligations 15,861 16,418 Gross amount of long-term debt and finance leases 1,401,916 1,423,043 Less: long-term debt due within one year 60,970 20,571 Less: finance leases classified as long-term debt due within one year 617 557 Unamortized debt discount (5,368 ) (5,695 ) Unamortized debt issuance costs (7,589 ) (8,446 ) Total long-term debt and finance leases, net $ 1,327,372 $ 1,387,774 |
Pension Plan and Employee Ben_5
Pension Plan and Employee Benefits (FY) (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
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, 2019, and 2018 are presented in the following table: PENSION BENEFITS OTHER BENEFITS FOR THE YEAR ENDED DEC. 31, FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2019 2018 2019 2018 Change in benefit obligation Benefit obligation at beginning of period $ 530,936 $ 567,215 $ 40,455 $ 43,203 Service cost 8,414 9,507 1,191 1,320 Interest cost 22,485 20,860 1,646 1,465 Plan participants’ contributions — — 1,229 1,224 Actuarial loss (gain) 73,655 (42,935 ) 13,897 (1,106 ) Expenses paid (2,933 ) (2,786 ) — — Benefits paid (22,234 ) (20,925 ) (5,696 ) (5,651 ) Benefit obligation at end of period 610,323 530,936 52,722 40,455 Change in plan assets Fair value of plan assets at beginning of period 391,933 444,089 — — Actual return on plan assets 81,081 (28,884 ) — — Employer contributions 12,250 — — — Expenses paid (2,933 ) (2,786 ) — — Adjustment — 439 — — Benefits paid (22,234 ) (20,925 ) — — Fair value of plan assets at end of period 460,097 391,933 — — Unfunded status $ (150,226 ) $ (139,003 ) $ (52,722 ) $ (40,455 ) SERP’s funded status at December 31, 2019, and 2018 is presented in the following table: SERP BENEFITS FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2019 2018 Change in benefit obligation Benefit obligation at beginning of period $ 78,414 $ 84,339 Service cost 330 542 Interest cost 3,326 3,077 Actuarial loss (gain) 11,608 (5,163 ) Benefits paid (4,550 ) (4,381 ) Benefit obligation at end of period $ 89,128 $ 78,414 | |
Accumulated Benefit Obligation | The employee pension plan accumulated benefit obligation at December 31, 2019, and 2018 is presented in the following table: PENSION BENEFITS AT DEC. 31, (THOUSANDS) 2019 2018 Accumulated benefit obligation $ 568,354 $ 491,522 SERP’s accumulated benefit obligation at December 31, 2019, and 2018 is presented in the following table: SERP BENEFITS AT DEC. 31, (THOUSANDS) 2019 2018 Accumulated benefit obligation $ 89,128 $ 78,414 | |
Schedule of Amounts Recognized in Balance Sheet | The current and non-current portions of the Other Benefits liability for Cleco and Cleco Power at March 31, 2020, and December 31, 2019, were as follows: Cleco (THOUSANDS) AT MAR. 31, 2020 AT DEC. 31, 2019 Current $ 4,401 $ 4,401 Non-current $ 48,175 $ 48,321 The current and non-current portions of the SERP liability for Cleco and Cleco Power at March 31, 2020, and December 31, 2019, were as follows: Cleco (THOUSANDS) AT MAR. 31, 2020 AT DEC. 31, 2019 Current $ 4,599 $ 4,599 Non-current $ 84,219 $ 84,529 | The current and non-current portions of the Other Benefits liability for Cleco and Cleco Power at December 31, 2019, and 2018 are as follows: Cleco AT DEC. 31, (THOUSANDS) 2019 2018 Current $ 4,401 $ 4,130 Non-current $ 48,321 $ 36,325 The current and non-current portions of the SERP liability for Cleco and Cleco Power at December 31, 2019, and 2018 are as follows: Cleco AT DEC. 31, (THOUSANDS) 2019 2018 Current $ 4,599 $ 4,478 Non-current $ 84,529 $ 73,936 |
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, 2019, and 2018: PENSION BENEFITS OTHER BENEFITS AT DEC. 31, AT DEC. 31, (THOUSANDS) 2019 2018 2019 2018 Net actuarial loss (gain) occurring during period $ 19,075 $ 9,722 $ 13,897 $ (1,106 ) Net actuarial loss amortized during period $ 7,849 $ 12,313 $ 21 $ 135 Prior service credit amortized during period $ (71 ) $ (71 ) $ — $ — 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, 2019, and 2018: SERP BENEFITS FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2019 2018 Net actuarial loss (gain) occurring during year $ 11,608 $ (5,163 ) Net actuarial loss amortized during year $ 1,544 $ 2,913 Prior service credit amortized during year $ (160 ) $ (160 ) | |
Amounts Recognized in Accumulated Other Comprehensive Income | The following table presents net actuarial gains/losses and prior service costs/credits 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 and the amounts expected to be recognized in 2020 for the employee pension plan and Other Benefits plans at December 31, 2020, 2019, and 2018: PENSION BENEFITS OTHER BENEFITS AT DEC. 31, AT DEC. 31, (THOUSANDS) 2020 2019 2018 2020 2019 2018 Net actuarial loss $ 14,824 $ 151,603 $ 140,377 $ 1,355 $ 15,732 $ 1,814 Prior service credit $ (60 ) $ (60 ) $ (131 ) $ — $ — $ — 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 and the amounts expected to be recognized in 2020 for SERP at December 31, 2020, 2019, and 2018: SERP BENEFITS AT DEC. 31, (THOUSANDS) 2020 2019 2018 Net actuarial loss $ 3,171 $ 28,731 $ 17,261 Prior service credit $ (160 ) $ (1,678 ) $ (1,837 ) | |
Components of Net Periodic Pension and Other Benefit Costs | The components of net periodic pension and Other Benefits cost for the three months ended March 31, 2020, and 2019 were as follows: PENSION BENEFITS OTHER BENEFITS FOR THE THREE MONTHS ENDED MAR. 31, FOR THE THREE MONTHS ENDED MAR. 31, (THOUSANDS) 2020 2019 2020 2019 Components of periodic benefit costs Service cost $ 2,328 $ 2,067 $ 508 $ 288 Interest cost 5,130 5,650 410 400 Expected return on plan assets (6,245 ) (6,622 ) — — Amortizations Prior period service credit (15 ) (18 ) — — Net loss (gain) 3,672 1,875 339 (45 ) Net periodic benefit cost $ 4,870 $ 2,952 $ 1,257 $ 643 FOR THE THREE MONTHS ENDED MAR. 31, (THOUSANDS) 2020 2019 Components of periodic benefit costs Service cost $ 95 $ 113 Interest cost 733 825 Amortizations Prior period service credit (40 ) (35 ) Net loss 757 392 Net periodic benefit cost $ 1,545 $ 1,295 | 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 2019, 2018, and 2017 are as follows: PENSION BENEFITS OTHER BENEFITS FOR THE YEAR ENDED DEC. 31, FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2019 2018 2017 2019 2018 2017 Components of periodic benefit costs Service cost $ 8,414 $ 9,507 $ 9,039 $ 1,191 $ 1,320 1,446 Interest cost 22,485 20,860 21,648 1,646 1,465 1,569 Expected return on plan assets (26,502 ) (23,773 ) (24,064 ) — — — Amortizations Prior service credit (71 ) (71 ) (71 ) — — — Net loss (gain) 7,849 12,312 10,008 21 135 (50 ) Net periodic benefit cost $ 12,175 $ 18,835 $ 16,560 2,858 $ 2,920 $ 2,965 The components of the net SERP costs for 2019, 2018, and 2017 are as follows: SERP BENEFITS FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2019 2018 2017 Components of periodic benefit costs Service cost $ 330 $ 542 $ 494 Interest cost 3,326 3,077 3,239 Amortizations Prior service credit (160 ) (160 ) (190 ) Net loss 1,544 2,913 2,105 Net periodic benefit cost 5,040 6,372 5,648 Special/contractual termination benefits — — 315 Total benefit cost $ 5,040 $ 6,372 $ 5,963 |
Weighted-Average Assumptions Used to Determine Benefit Obligation and Net Periodic Costs | 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, 2019 2018 2019 2018 Weighted-average assumptions used to determine the benefit obligation Discount rate 3.43 % 4.35 % 3.25 % 4.16 % Rate of compensation increase 2.81 % 2.93 % N/A N/A PENSION BENEFITS OTHER BENEFITS FOR THE YEAR ENDED DEC. 31, FOR THE YEAR ENDED DEC. 31, 2019 2018 2017 2019 2018 2017 Weighted-average assumptions used to determine the net benefit cost Discount rate 4.35 % 3.73 % 4.27 % 4.16 % 3.47 % 3.81 % Expected return on plan assets 6.55 % 5.86 % 6.08 % N/A N/A N/A Rate of compensation increase 2.81 % 2.93 % 2.98 % N/A N/A N/A 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, 2019 2018 Weighted-average assumptions used to determine the benefit obligation Discount rate 3.37 % 4.34 % Rate of compensation increase 5.00 % 5.00 % SERP BENEFITS JAN. 1, 2019 - DEC. 31, 2019 JAN. 1, 2018 - DEC. 31, 2018 MAR. 31, 2017 - DEC. 31, 2017 JAN. 1, 2017 - MAR. 30, 2017 Weighted-average assumptions used to determine the net benefit cost Discount rate 4.34 % 3.70 % 4.08 % 4.22 % Rate of compensation increase 5.00 % 5.00 % 5.00 % 5.00 % | |
Fair Value Allocation of Pension Plan Assets | There have been no changes in the methodologies for determining fair value at December 31, 2019, and 2018. The following tables disclose the pension plan’s fair value of financial assets measured on a recurring basis: (THOUSANDS) AT DEC. 31, 2019 QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) Asset Description Cash equivalents $ 4,810 $ — $ 4,810 $ — Government securities 19,517 — 19,517 — Mutual funds Domestic 102,184 102,184 — — International 53,041 53,041 — — Real estate funds 18,017 — — 18,017 Corporate debt 157,109 — 157,109 — Total $ 354,678 $ 155,225 $ 181,436 $ 18,017 Investments measured at net asset value* 103,326 Interest accrual 2,093 Total net assets $ 460,097 *Investments measured at net asset value consist of Common/collective trust. (THOUSANDS) AT DEC. 31, 2018 QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) Asset Description Cash equivalents $ 2,471 $ — $ 2,471 $ — Common stock 13,111 13,111 — — Government securities 19,831 — 19,831 — Mutual funds Domestic 79,210 79,210 — — International 43,418 43,418 — — Real estate funds 20,298 — — 20,298 Corporate debt 138,391 — 138,391 — Total $ 316,730 $ 135,739 $ 160,693 $ 20,298 Investments measured at net asset value* 73,100 Interest accrual 2,103 Total net assets $ 391,933 *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, 2019: PERCENT OF TOTAL PLAN ASSETS AT DEC. 31, 2019 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 % | |
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, 2019, and 2018: (THOUSANDS) Balance, Dec. 31, 2017 $ 19,195 Realized losses 29 Unrealized gains 391 Purchases 710 Sales (27 ) Balance, Dec. 31, 2018 $ 20,298 Realized gains 370 Unrealized losses (1,727 ) Purchases 759 Sales (1,683 ) Balance, Dec. 31, 2019 $ 18,017 | |
Assumed Health Care Cost Trend Rates | A one-percentage point change in assumed health care cost trend rates would have the following effects on Other Benefits: ONE-PERCENTAGE POINT (THOUSANDS) INCREASE DECREASE Effect on total of service and interest cost components $ 14 $ (16 ) Effect on postretirement benefit obligation $ 205 $ (229 ) | |
Projected Benefit Payments and Projected Receipts | The projected benefit payments for the employee pension plan and Other Benefits obligation plan for each year through 2024 and the next five years thereafter are listed in the following table: (THOUSANDS) PENSION BENEFITS OTHER BENEFITS, GROSS For the year ending Dec. 31, 2020 $ 24,065 $ 4,472 2021 $ 25,293 $ 4,498 2022 $ 26,541 $ 4,554 2023 $ 27,709 $ 4,536 2024 $ 28,741 $ 4,531 Next five years $ 158,810 $ 21,706 The projected benefit payments for SERP for each year through 2024 and the next five years thereafter are shown in the following table: (THOUSANDS) 2020 2021 2022 2023 2024 NEXT FIVE YEARS SERP $ 4,662 $ 4,689 $ 4,698 $ 4,710 $ 4,753 $ 24,861 | |
401(k) Plan Expense | Cleco’s 401(k) Plan expense for the three months ended March 31, 2020, and 2019 was as follows: FOR THE THREE MONTHS ENDED MAR. 31, (THOUSANDS) 2020 2019 401(k) Plan expense $ 3,256 $ 2,267 The expense of the 401(k) Plan related to Cleco’s other subsidiaries for the three months ended March 31, 2020, and 2019 was as follows: FOR THE THREE MONTHS ENDED MAR. 31, (THOUSANDS) 2020 2019 401(k) Plan expense $ 1,662 $ 930 | Cleco’s 401(k) Plan expense for the years ended December 31, 2019, 2018, and 2017 was as follows: FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2019 2018 2017 401(k) Plan expense $ 7,861 $ 5,884 $ 5,386 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, 2019, 2018, and 2017 was as follows: FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2019 2018 2017 401(k) Plan expense $ 3,408 $ 1,066 $ 888 |
Cleco Power | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Schedule of Amounts Recognized in Balance Sheet | Cleco Power (THOUSANDS) AT MAR. 31, 2020 AT DEC. 31, 2019 Current $ 3,815 $ 3,815 Non-current $ 41,994 $ 42,080 Cleco Power (THOUSANDS) AT MAR. 31, 2020 AT DEC. 31, 2019 Current $ 760 $ 760 Non-current $ 13,863 $ 13,964 | Cleco Power AT DEC. 31, (THOUSANDS) 2019 2018 Current $ 3,815 $ 3,584 Non-current $ 42,080 $ 31,694 Cleco Power AT DEC. 31, (THOUSANDS) 2019 2018 Current $ 760 $ 930 Non-current $ 13,964 $ 12,025 |
Income Taxes (FY) (Tables)
Income Taxes (FY) (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Income Taxes [Line Items] | ||
Effective Income Tax Rate Reconciliation | The following tables summarize the effective income tax rates for Cleco and Cleco Power for the three months ended March 31, 2020, and 2019: Cleco FOR THE THREE MONTHS ENDED MAR. 31, 2020 2019 Effective tax rate 19.8 % 22.6 % | The differences are as follows: FOR THE YEAR ENDED DEC. 31, (THOUSANDS, EXCEPT PERCENTAGES) 2019 2018 2017 Income before tax $ 195,830 $ 123,819 $ 145,159 Statutory rate 21.0 % 21.0 % 35.0 % Tax expense at federal statutory rate $ 41,124 $ 26,002 $ 50,806 Increase (decrease) Plant differences, including AFUDC flowthrough (4,687 ) (401 ) 743 State income taxes, net of federal benefit 9,565 6,288 5,047 Return to accrual adjustment (3,963 ) (193 ) (608 ) TCJA — (19 ) (46,291 ) NMTC — (1,578 ) 313 Other, net 1,126 (717 ) (2,931 ) Total tax expense $ 43,165 $ 29,382 $ 7,079 Effective rate 22.0 % 23.7 % 4.9 % |
Current and Deferred Income Tax Expense | Information about current and deferred income tax expense is as follows: FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2019 2018 2017 Current federal income tax expense $ 1,600 $ 15,304 $ 46,520 Deferred federal income tax expense (benefit) 37,963 5,863 (47,329 ) Amortization of accumulated deferred investment tax credits (191 ) (236 ) (662 ) Total federal income tax expense (benefit) $ 39,372 $ 20,931 $ (1,471 ) Current state income tax expense 1,675 7,771 3,187 Deferred state income tax expense 2,118 680 5,363 Total state income tax expense $ 3,793 $ 8,451 $ 8,550 Total federal and state income tax expense $ 43,165 $ 29,382 $ 7,079 Items charged or credited directly to member’s equity Federal deferred (5,130 ) 1,408 (2,380 ) State deferred (1,678 ) 460 (384 ) Total tax (benefit) expense from items charged directly to member’s equity $ (6,808 ) $ 1,868 $ (2,764 ) Total federal and state income tax expense $ 36,357 $ 31,250 $ 4,315 | |
Deferred Tax Assets and Liabilities | The balance of accumulated deferred federal and state income tax assets and liabilities at December 31, 2019, and 2018 was comprised of the following: AT DEC. 31, (THOUSANDS) 2019 2018 Depreciation and property basis differences $ (862,263 ) $ (664,996 ) Net operating loss carryforward 120,955 — NMTC 92,364 86,673 Fuel costs (3,984 ) (8,339 ) Other comprehensive income 10,612 640 Regulated operations regulatory liability, net 34,836 39,808 Postretirement benefits 22,691 19,580 Merger fair value adjustments (52,957 ) (56,725 ) Other (19,312 ) (24,671 ) Accumulated deferred federal and state income taxes, net $ (657,058 ) $ (608,030 ) | |
Cleco Power | ||
Income Taxes [Line Items] | ||
Effective Income Tax Rate Reconciliation | Cleco Power FOR THE THREE MONTHS ENDED MAR. 31, 2020 2019 Effective tax rate 22.0 % 23.0 % | The differences are as follows: FOR THE YEAR ENDED DEC. 31, (THOUSANDS, EXCEPT PERCENTAGES) 2019 2018 2017 Income before tax $ 193,714 $ 218,181 $ 218,069 Statutory rate 21.0 % 21.0 % 35.0 % Tax expense at federal statutory rate $ 40,680 $ 45,818 $ 76,324 Increase (decrease) Plant differences, including AFUDC flowthrough (4,687 ) (401 ) 743 State income taxes, net of federal benefit 11,683 11,080 7,583 Return to accrual adjustment (2,008 ) 483 (284 ) TCJA — (19 ) (14,292 ) Other, net (216 ) (1,037 ) (2,743 ) Total taxes $ 45,452 $ 55,924 $ 67,331 Effective rate 23.5 % 25.6 % 30.9 % |
Current and Deferred Income Tax Expense | Information about current and deferred income tax expense is as follows: FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2019 2018 2017 Current federal income tax expense $ 14,781 $ 44,411 $ 87,433 Deferred federal income tax expense (benefit) 22,443 (9,033 ) (29,190 ) Amortization of accumulated deferred investment tax credits (191 ) (236 ) (662 ) Total federal income tax expense $ 37,033 $ 35,142 $ 57,581 Current state income tax expense 9,063 23,293 14,751 Deferred state income tax benefit (644 ) (2,511 ) (5,001 ) Total state income tax expense $ 8,419 $ 20,782 $ 9,750 Total federal and state income taxes $ 45,452 $ 55,924 $ 67,331 Items charged or credited directly to members’ equity Federal deferred (2,500 ) 797 (141 ) State deferred (818 ) 261 (23 ) Total tax (benefit) expense from items charged directly to member’s equity $ (3,318 ) $ 1,058 $ (164 ) Total federal and state income tax expense $ 42,134 $ 56,982 $ 67,167 | |
Deferred Tax Assets and Liabilities | The balance of accumulated deferred federal and state income tax assets and liabilities at December 31, 2019, and 2018 was comprised of the following: AT DEC. 31, (THOUSANDS) 2019 2018 Depreciation and property basis differences $ (705,423 ) $ (666,224 ) Net operating loss carryforward 2,714 — Fuel costs (5,608 ) (8,339 ) Other comprehensive income 7,510 4,192 Regulated operations regulatory liability, net 34,836 39,808 Postretirement benefits 10,044 11,081 Other (1,907 ) (11,283 ) Accumulated deferred federal and state income taxes, net $ (657,834 ) $ (630,765 ) |
Disclosures about Segments (F_3
Disclosures about Segments (FY) (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting [Abstract] | ||
Segment Information | 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 Three Months Ended Mar. 31, 2020 (THOUSANDS) CLECO POWER CLECO CAJUN OTHER ELIMINATIONS CONSOLIDATED Revenue Electric operations $ 224,430 $ 89,147 $ (2,420 ) $ — $ 311,157 Other operations 15,764 30,961 1 (1,818 ) 44,908 Affiliate revenue 1,106 161 29,278 (30,545 ) — Electric customer credits (8,340 ) (153 ) — — (8,493 ) Operating revenue, net $ 232,960 $ 120,116 $ 26,859 $ (32,363 ) $ 347,572 Depreciation and amortization $ 43,677 $ 10,103 $ 2,094 $ (1 ) $ 55,873 Interest income $ 954 $ 155 $ 100 $ (52 ) $ 1,157 Interest charges $ 18,581 $ 10 $ 16,610 $ (52 ) $ 35,149 Federal and state income tax expense (benefit) $ 3,338 $ 6,421 $ (8,197 ) $ — $ 1,562 Net income (loss) $ 11,831 $ 19,535 $ (25,039 ) $ 1 $ 6,328 Additions to property, plant, and equipment $ 61,477 $ 3,341 $ 806 $ — $ 65,624 Equity investment in investees $ 17,072 $ — $ — $ — $ 17,072 Goodwill $ 1,490,797 $ — $ — $ — $ 1,490,797 Total segment assets $ 6,098,446 $ 1,020,099 $ 616,068 $ (58,418 ) $ 7,676,195 2019 (THOUSANDS) CLECO POWER CLECO CAJUN OTHER ELIMINATIONS CONSOLIDATED Revenue Electric operations $ 257,175 $ 58,194 $ (2,420 ) $ — $ 312,949 Other operations 19,430 19,965 2 — 39,397 Affiliate revenue 300 — 26,535 (26,835 ) — Electric customer credits (8,160 ) — — — (8,160 ) Operating revenue, net $ 268,745 $ 78,159 $ 24,117 $ (26,835 ) $ 344,186 Depreciation and amortization $ 42,377 $ 5,410 $ 2,069 $ — $ 49,856 Interest income $ 994 $ 254 $ 417 $ (174 ) $ 1,491 Interest charges $ 17,145 $ — $ 17,028 $ (174 ) $ 33,999 Federal and state income tax expense (benefit) $ 7,998 $ 3,529 $ (5,540 ) $ (1 ) $ 5,986 Net income (loss) $ 26,712 $ 11,056 $ (17,210 ) $ (1 ) $ 20,557 Additions to property, plant, and equipment $ 81,040 $ 1,530 $ 1,109 $ — $ 83,679 Equity investment in investees (1) $ 17,072 $ — $ — $ — $ 17,072 Goodwill (1) $ 1,490,797 $ — $ — $ — $ 1,490,797 Total segment assets (1) $ 5,967,327 $ 1,011,591 $ 546,096 $ (48,716 ) $ 7,476,298 (1) | SEGMENT INFORMATION FOR THE YEAR ENDED DEC. 31, 2019 (THOUSANDS) CLECO POWER CLECO CAJUN OTHER ELIMINATIONS CONSOLIDATED Revenue Electric operations $ 1,130,928 $ 375,489 $ (9,680 ) $ (1 ) $ 1,496,736 Other operations 72,833 117,468 2 (7,471 ) 182,832 Affiliate revenue 3,125 108 109,067 (112,300 ) — Electric customer credits (38,516 ) (1,447 ) — — (39,963 ) Operating revenue, net $ 1,168,370 $ 491,618 $ 99,389 $ (119,772 ) $ 1,639,605 Depreciation and amortization $ 172,471 $ 35,544 $ 8,305 $ — $ 216,320 Merger transaction and commitment costs $ — $ — $ 7,668 $ — $ 7,668 Interest income $ 4,744 $ 987 $ 974 $ (615 ) $ 6,090 Interest charges $ 71,279 $ 35 $ 70,611 $ (616 ) $ 141,309 Net income (loss) $ 148,262 $ 69,411 $ (65,009 ) $ 1 $ 152,665 Additions to property, plant, and equipment $ 313,962 $ 9,174 $ 655 $ — $ 323,791 Equity investment in investee $ 17,072 $ — $ — $ — $ 17,072 Goodwill $ 1,490,797 $ — $ — $ — $ 1,490,797 Total segment assets $ 5,967,327 $ 1,011,591 $ 546,096 $ (48,716 ) $ 7,476,298 FOR THE YEAR ENDED DEC. 31, 2018 (THOUSANDS) CLECO POWER OTHER ELIMINATIONS CONSOLIDATED Revenue Electric operations $ 1,191,587 $ (9,680 ) $ — $ 1,181,907 Other operations 82,330 2 — 82,332 Affiliate revenue 874 74,591 (75,465 ) — Electric customer credits (33,195 ) — — (33,195 ) Operating revenue, net $ 1,241,596 $ 64,913 $ (75,465 ) $ 1,231,044 Depreciation and amortization $ 162,069 $ 8,344 $ 1 $ 170,414 Merger transaction and commitment costs $ — $ 19,514 $ — $ 19,514 Interest income $ 5,052 $ 1,338 $ (317 ) $ 6,073 Interest charges $ 71,303 $ 55,659 $ (320 ) $ 126,642 Federal and state income tax expense (benefit) $ 55,924 $ (26,541 ) $ (1 ) $ 29,382 Net income (loss) $ 162,257 $ (67,819 ) $ (1 ) $ 94,437 Additions to property, plant, and equipment $ 289,153 $ 1,908 $ — $ 291,061 Equity investment in investee $ 18,172 $ — $ — $ 18,172 Goodwill $ 1,490,797 $ — $ — $ 1,490,797 Total segment assets $ 5,839,853 $ 633,756 $ (36,795 ) $ 6,436,814 FOR THE YEAR ENDED DEC. 31, 2017 (THOUSANDS) CLECO POWER OTHER ELIMINATIONS CONSOLIDATED Revenue Electric operations $ 1,108,389 $ (10,757 ) $ — $ 1,097,632 Other operations 77,522 2,058 — 79,580 Affiliate revenue 851 57,168 (58,019 ) — Electric customer credits (1,566 ) — — (1,566 ) Operating revenue, net $ 1,185,196 $ 48,469 $ (58,019 ) $ 1,175,646 Depreciation and amortization $ 158,415 $ 8,439 $ — $ 166,854 Merger transaction and commitment costs $ — $ 5,445 $ (293 ) $ 5,152 Interest income $ 1,283 $ 316 $ (175 ) $ 1,424 Interest charges $ 69,362 $ 53,725 $ (174 ) $ 122,913 Federal and state income tax expense (benefit) $ 67,331 $ (60,252 ) $ — $ 7,079 Net income (loss) $ 150,738 $ (12,659 ) $ 1 $ 138,080 Additions to property, plant, and equipment $ 235,252 $ 1,680 $ — $ 236,932 Equity investment in investee $ 18,172 $ — $ — $ 18,172 Goodwill $ 1,490,797 $ — $ — $ 1,490,797 Total segment assets $ 5,679,538 $ 619,943 $ (21,099 ) $ 6,278,382 |
Variable Interest Entities (F_3
Variable Interest Entities (FY) (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Variable Interest Entity [Line Items] | ||
Equity Method Investments | The following table presents the components of Cleco Power’s equity investment in Oxbow: AT DEC. 31, INCEPTION TO DATE (THOUSANDS) 2019 2018 Purchase price $ 12,873 $ 12,873 Cash contributions 6,399 6,399 Dividend received (2,200 ) (1,100 ) Total equity investment in investee $ 17,072 $ 18,172 The following tables contain summarized financial information for Oxbow: AT DEC. 31, (THOUSANDS) 2019 2018 Current assets $ 2,239 $ 4,128 Property, plant, and equipment, net 23,738 25,186 Other assets 9,364 9,405 Total assets $ 35,341 $ 38,719 Current liabilities $ 1,196 $ 2,374 Partners’ capital 34,145 36,345 Total liabilities and partners’ capital $ 35,341 $ 38,719 FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2019 2018 2017 Operating revenue $ 8,886 $ 6,992 $ 4,189 Operating expenses 8,886 6,992 4,189 Income before taxes $ — $ — $ — | |
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) 2019 2018 Oxbow’s net assets/liabilities $ 34,145 $ 36,345 Cleco Power’s 50% equity $ 17,072 $ 18,172 Cleco Power’s maximum exposure to loss $ 17,072 $ 18,172 | |
Cleco Power | ||
Variable Interest Entity [Line Items] | ||
Equity Method Investments | The following table presents the components of Cleco Power’s equity investment in Oxbow: INCEPTION TO DATE (THOUSANDS) AT MAR. 31, 2020 AT DEC. 31, 2019 Purchase price $ 12,873 $ 12,873 Cash contributions 6,399 6,399 Dividends (2,200 ) (2,200 ) Total equity investment in investee $ 17,072 $ 17,072 The following table contains summarized financial information for Oxbow: FOR THE THREE MONTHS ENDED MAR. 31, (THOUSANDS) 2020 2019 Operating revenue $ 1,882 $ 1,958 Operating expenses 1,882 1,958 Income before taxes $ — $ — | |
Comparison of Investee's Assets and Liabilities with Maximum Exposure to Loss | The following table compares the carrying amount of Oxbow’s assets and liabilities with Cleco Power’s maximum exposure to loss related to its investment in Oxbow: (THOUSANDS) AT MAR. 31, 2020 AT DEC. 31, 2019 Oxbow’s net assets/liabilities $ 34,145 $ 34,145 Cleco Power’s 50% equity $ 17,072 $ 17,072 Cleco Power’s maximum exposure to loss $ 17,072 $ 17,072 |
Litigation, Other Commitments_3
Litigation, Other Commitments and Contingencies, and Disclosures about Guarantees (FY) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future Payments under Long-Term Purchase Obligations | The aggregate amount of payments required under such obligations at December 31, 2019, is as follows: (THOUSANDS) CLECO POWER CLECO For the year ending Dec. 31, 2020 $ 28,741 $ 89,490 2021 29,832 35,986 2022 18,025 19,311 2023 7,751 8,782 2024 7,740 9,829 Thereafter 13,242 14,474 Total long-term purchase obligations $ 105,331 $ 177,872 |
Affiliate Transactions (FY) (Ta
Affiliate Transactions (FY) (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
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) 2019 2018 2017 Support Group Other operations and maintenance $ 73,090 $ 56,669 $ 50,572 Taxes other than income taxes $ (73 ) $ 6 $ (13 ) Other expense $ 64 $ 290 $ 255 Cleco Holdings Other expense $ — $ 1,007 $ 361 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) 2019 2018 2017 Other operations revenue Cleco Cajun $ 7,471 $ — $ — Affiliate revenue Support Group 3,088 874 851 Cleco Cajun 37 — — Other income Cleco Holdings 149 1,092 494 Total $ 10,745 $ 1,966 $ 1,345 Cleco Power had the following affiliate receivable and payable balances associated with the service agreements: AT DEC. 31, 2019 2018 (THOUSANDS) ACCOUNTS RECEIVABLE ACCOUNTS PAYABLE ACCOUNTS RECEIVABLE ACCOUNTS PAYABLE Cleco Holdings $ 10,351 $ 194 $ 699 $ 88 Support Group 3,172 13,890 2,619 7,755 Cleco Cajun 958 39 — — Total $ 14,481 $ 14,123 $ 3,318 $ 7,843 The following table shows the expense of the pension plan related to Cleco Power’s affiliates for the years ended 2019 and 2018: FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2019 2018 Support Group $ 1,316 $ 1,963 Cleco Cajun $ 239 $ — | |
Cleco Power | ||
Affiliate Transaction [Line Items] | ||
Schedule of Related Party Transactions | The following table is a summary of those balances: AT MAR. 31, 2020 AT DEC. 31, 2019 (THOUSANDS) ACCOUNTS RECEIVABLE ACCOUNTS PAYABLE ACCOUNTS RECEIVABLE ACCOUNTS PAYABLE Cleco Holdings $ 10,420 $ 170 $ 10,351 $ 194 Support Group 1,082 10,197 3,172 13,890 Cleco Cajun 535 119 958 39 Total $ 12,037 $ 10,486 $ 14,481 $ 14,123 |
Intangible Assets, Intangible_3
Intangible Assets, Intangible Liabilities, and Goodwill (FY) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Finite-Lived Intangible Assets [Line Items] | |
Schedule of Amortization of Intangible Assets | 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, 2019, 2018, and 2017 is shown in the following tables: Cleco FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2019 2018 2017 Amortization $ 4,917 $ 2,154 $ 2,367 Cleco Power FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2019 2018 2017 Amortization $ 4,321 $ 1,607 $ 1,887 The following tables present Cleco and Cleco Power’s amortization of intangible assets and liabilities: Cleco FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2019 2018 2017 Intangible assets Cleco Katrina/Rita right to bill and collect storm recover charges $ 20,576 $ 20,608 $ 16,772 Trade name $ 255 $ 255 $ 255 Power supply agreements $ 24,273 $ 9,680 $ 10,757 Intangible liabilities LTSA $ 3,194 $ — $ — Power supply agreements $ 3,234 $ — $ — |
Intangible Assets Subject to Amortization | The following tables summarize the balances for intangible assets and liabilities subject to amortization for Cleco and Cleco Power: Cleco AT DEC. 31, (THOUSANDS) 2019 2018 Intangible assets Cleco Katrina/Rita right to bill and collect storm recovery charges $ 70,594 $ 70,594 Trade name 5,100 5,100 Power supply agreements 184,004 85,104 Total intangible assets carrying amount 259,698 160,798 Intangible liabilities LTSA 24,100 — Power supply agreements 14,200 — Total intangible liabilities carrying amount 38,300 — Net intangible assets carrying amount 221,398 160,798 Accumulated amortization (115,167 ) (76,491 ) Net intangible assets subject to amortization $ 106,231 $ 84,307 |
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, 2020 $ 26,372 $ (7,012 ) 2021 $ 25,855 $ (5,862 ) 2022 $ 25,855 $ (5,041 ) 2023 $ 25,855 $ ( 5,041 ) 2024 $ 29,459 $ (5,041 ) Thereafter $ 4,707 $ (3,875 ) |
Cleco Power | |
Finite-Lived Intangible Assets [Line Items] | |
Schedule of Amortization of Intangible Assets | Cleco Power FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2019 2018 2017 Amortization $ 4,321 $ 1,607 $ 1,887 Cleco Power FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2019 2018 2017 Cleco Katrina/Rita right to bill and collect storm recovery charges $ 20,576 $ 20,608 $ 16,772 |
Intangible Assets Subject to Amortization | Cleco Power AT DEC. 31, (THOUSANDS) 2019 2018 Cleco Katrina/Rita right to bill and collect storm recovery charges $ 177,537 $ 177,537 Accumulated amortization (177,020 ) (156,444 ) Net intangible assets subject to amortization $ 517 $ 21,093 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (FY) (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Accumulated Other Comprehensive Loss [Line Items] | ||
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 FOR THE THREE MONTHS ENDED MAR. 31, 2020 (THOUSANDS) POSTRETIREMENT BENEFIT NET LOSS Balances, beginning of period $ (17,513 ) Amounts reclassified from AOCI Amortization of postretirement benefit net gain 414 Balances, Mar. 31, 2020 $ (17,099 ) FOR THE THREE MONTHS ENDED MAR. 31, 2019 (THOUSANDS) POSTRETIREMENT BENEFIT NET GAIN Balances, beginning of period $ 1,786 Amounts reclassified from AOCI Amortization of postretirement benefit net loss (135 ) Balances, Mar. 31, 2019 $ 1,651 | All amounts are reported net of income taxes. Amounts in parentheses indicate debits. Cleco (THOUSANDS) POSTRETIREMENT BENEFIT NET GAIN (LOSS) Balances, Dec. 31, 2016 $ 1,500 Other comprehensive income before reclassifications Postretirement benefit adjustments incurred during the year (3,898 ) Amounts reclassified from accumulated other comprehensive income Amortization of postretirement benefit net gain (523 ) Balances, Dec. 31, 2017 $ (2,921 ) Other comprehensive income before reclassifications Postretirement benefit adjustments incurred during the year 3,681 Amounts reclassified from accumulated other comprehensive income Amortization of postretirement benefit net loss 1,615 Reclassification of effect of tax rate change (589 ) 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 loss (422 ) Balances, Dec. 31, 2019 $ (17,513 ) Cleco Power (THOUSANDS) POSTRETIREMENT BENEFIT NET (LOSS) GAIN NET (LOSS) GAIN ON CASH FLOW HEDGES TOTAL AOCI Balances, Dec. 31, 2016 $ (7,905 ) $ (5,517 ) $ (13,422 ) Other comprehensive loss before reclassifications Postretirement benefit adjustments incurred during the year (948 ) — (948 ) Amounts reclassified from accumulated other comprehensive loss Amortization of postretirement benefit net loss 476 — 476 Reclassification of net loss to interest charges — 211 211 Balances, Dec. 31, 2017 $ (8,377 ) $ (5,306 ) $ (13,683 ) Other comprehensive loss before reclassifications Postretirement benefit adjustments incurred during the year 954 — 954 Amounts reclassified from accumulated other comprehensive loss Amortization of postretirement benefit net loss 1,789 — 1,789 Reclassification of net loss to interest charges — 254 254 Reclassification of effect of tax rate change (1,426 ) (1,070 ) (2,496 ) 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 gain to interest charges — 254 254 Balances, Dec. 31, 2019 $ (16,717 ) $ (5,868 ) $ (22,585 ) |
Cleco Power | ||
Accumulated Other Comprehensive Loss [Line Items] | ||
Components of Accumulated Other Comprehensive Loss | Cleco Power FOR THE THREE MONTHS ENDED MAR. 31, 2020 (THOUSANDS) POSTRETIREMENT NET LOSS ON CASH TOTAL AOCI Balances, beginning of period $ (16,717 ) $ (5,868 ) $ (22,585 ) Amounts reclassified from AOCI Amortization of postretirement benefit net loss 426 — 426 Reclassification of net loss to interest charges — 64 64 Balances, Mar. 31, 2020 $ (16,291 ) $ (5,804 ) $ (22,095 ) FOR THE THREE MONTHS ENDED MAR. 31, 2019 (THOUSANDS) POSTRETIREMENT NET LOSS ON CASH FLOW TOTAL AOCI Balances, beginning of period $ (7,060 ) $ (6,122 ) $ (13,182 ) Amounts reclassified from AOCI Amortization of postretirement benefit net loss 156 — 156 Reclassification of net loss to interest charges — 64 64 Balances, Mar. 31, 2019 $ (6,904 ) $ (6,058 ) $ (12,962 ) | Cleco Power (THOUSANDS) POSTRETIREMENT BENEFIT NET (LOSS) GAIN NET (LOSS) GAIN ON CASH FLOW HEDGES TOTAL AOCI Balances, Dec. 31, 2016 $ (7,905 ) $ (5,517 ) $ (13,422 ) Other comprehensive loss before reclassifications Postretirement benefit adjustments incurred during the year (948 ) — (948 ) Amounts reclassified from accumulated other comprehensive loss Amortization of postretirement benefit net loss 476 — 476 Reclassification of net loss to interest charges — 211 211 Balances, Dec. 31, 2017 $ (8,377 ) $ (5,306 ) $ (13,683 ) Other comprehensive loss before reclassifications Postretirement benefit adjustments incurred during the year 954 — 954 Amounts reclassified from accumulated other comprehensive loss Amortization of postretirement benefit net loss 1,789 — 1,789 Reclassification of net loss to interest charges — 254 254 Reclassification of effect of tax rate change (1,426 ) (1,070 ) (2,496 ) 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 gain to interest charges — 254 254 Balances, Dec. 31, 2019 $ (16,717 ) $ (5,868 ) $ (22,585 ) |
Miscellaneous Financial Infor_2
Miscellaneous Financial Information (Unaudited) (FY) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Information [Line Items] | |
Quarterly Financial Information | Quarterly information for Cleco for 2019 and 2018 is shown in the following tables: 2019 (THOUSANDS) 1ST QUARTER 2ND QUARTER 3RD QUARTER 4TH QUARTER Operating revenue, net $ 344,186 $ 397,873 $ 487,971 $ 409,575 Operating income $ 50,586 $ 87,196 $ 101,539 $ 75,573 Net income $ 20,557 $ 44,746 $ 55,565 $ 31,797 2018 (THOUSANDS) 1ST QUARTER 2ND QUARTER 3RD QUARTER 4TH QUARTER Operating revenue, net $ 276,760 $ 299,261 $ 358,256 $ 296,767 Operating income $ 44,734 $ 63,709 $ 86,110 $ 50,004 Net income $ 10,861 $ 25,839 $ 47,360 $ 10,377 Distributions to member $ 19,500 $ 20,400 $ 20,600 $ 10,850 |
Cleco Power | |
Quarterly Information [Line Items] | |
Quarterly Financial Information | Quarterly information for Cleco Power for 2019 and 2018 is shown in the following tables: 2019 (THOUSANDS) 1ST QUARTER 2ND QUARTER 3RD QUARTER 4TH QUARTER Operating revenue, net $ 268,745 $ 272,972 $ 344,977 $ 281,676 Operating income $ 44,905 $ 75,446 $ 78,132 $ 49,985 Net income $ 26,712 $ 49,356 $ 51,527 $ 20,667 Distributions to member $ — $ — $ — $ 20,000 2018 (THOUSANDS) 1ST QUARTER 2ND QUARTER 3RD QUARTER 4TH QUARTER Operating revenue, net $ 279,387 $ 301,901 $ 360,899 $ 299,409 Operating income $ 50,521 $ 72,602 $ 96,063 $ 59,786 Net income $ 26,004 $ 43,020 $ 63,336 $ 29,897 Distributions to member $ 28,000 $ 43,000 $ 50,400 $ — |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Q1) (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted Cash and Cash Equivalents | Cleco and Cleco Power’s restricted cash and cash equivalents consisted of the following: Cleco (THOUSANDS) AT MAR. 31, 2020 AT DEC. 31, 2019 Current Cleco Katrina/Rita’s storm recovery bonds $ 2,623 $ 9,632 Cleco Power’s charitable contributions 1,200 1,200 Cleco Power’s rate credit escrow 231 268 Total current 4,054 11,100 Non-current Diversified Lands’ mitigation escrow 23 21 Cleco Cajun’s defense fund 720 719 Cleco Cajun’s margin deposits 100 100 Cleco Power’s future storm restoration costs 8,315 12,269 Cleco Power’s charitable contributions 741 2,094 Total non-current 9,899 15,203 Total restricted cash and cash equivalents $ 13,953 $ 26,303 | Cleco and Cleco Power’s restricted cash and cash equivalents consisted of: Cleco AT DEC. 31, (THOUSANDS) 2019 2018 Current Cleco Katrina/Rita’s storm recovery bonds $ 9,632 $ 9,505 Cleco Power’s charitable contributions 1,200 1,200 Cleco Power’s rate credit escrow 268 536 Total current 11,100 11,241 Non-current Diversified Lands’ mitigation escrow 21 21 Cleco Cajun’s defense fund 719 — Cleco Cajun’s margin deposits 100 — Cleco Power’s future storm restoration costs 12,269 15,391 Cleco Power’s charitable contributions 2,094 2,753 Cleco Power’s rate credit escrow — 505 Total non-current 15,203 18,670 Total restricted cash and cash equivalents $ 26,303 $ 29,911 |
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 RECEIVABLE OTHERS * TOTAL Balances, Dec. 31, 2019 $ 3,005 $ 1,250 $ 4,255 CECL adoption 71 — 71 Current period provision 2,498 388 2,886 Charge-offs (4,092 ) — (4,092 ) Recovery 641 — 641 Balances, Mar. 31, 2020 $ 2,123 $ 1,638 $ 3,761 | |
Changes in Allowance for Credit Losses, Other | The table below presents the changes in the allowance for credit losses by receivable for Cleco and Cleco Power: Cleco (THOUSANDS) ACCOUNTS RECEIVABLE OTHERS * TOTAL Balances, Dec. 31, 2019 $ 3,005 $ 1,250 $ 4,255 CECL adoption 71 — 71 Current period provision 2,498 388 2,886 Charge-offs (4,092 ) — (4,092 ) Recovery 641 — 641 Balances, Mar. 31, 2020 $ 2,123 $ 1,638 $ 3,761 | |
Cleco Power | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted Cash and Cash Equivalents | Cleco Power (THOUSANDS) AT MAR. 31, 2020 AT DEC. 31, 2019 Current Cleco Katrina/Rita’s storm recovery bonds $ 2,623 $ 9,632 Charitable contributions 1,200 1,200 Rate credit escrow 231 268 Total current 4,054 11,100 Non-current Future storm restoration costs 8,315 12,269 Charitable contributions 741 2,094 Total non-current 9,056 14,363 Total restricted cash and cash equivalents $ 13,110 $ 25,463 | Cleco Power AT DEC. 31, (THOUSANDS) 2019 2018 Current Cleco Katrina/Rita’s storm recovery bonds $ 9,632 $ 9,505 Charitable contributions 1,200 1,200 Rate credit escrow 268 536 Total current 11,100 11,241 Non-current Future storm restoration costs 12,269 15,391 Charitable contributions 2,094 2,753 Rate credit escrow — 505 Total non-current 14,363 18,649 Total restricted cash and cash equivalents $ 25,463 $ 29,890 |
Changes in Allowance for Credit Losses, Accounts Receivable | Cleco Power (THOUSANDS) ACCOUNTS RECEIVABLE Balances, Dec. 31, 2019 $ 3,005 CECL adoption 71 Current period provision 2,498 Charge-offs (4,092 ) Recovery 641 Balances, Mar. 31, 2020 $ 2,123 |
Business Combinations (Q1) (Tab
Business Combinations (Q1) (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Business Combinations [Abstract] | ||
Assets Acquired and Liabilities Assumed and Measurement Period Adjustments | 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) AT FEB. 4, 2019 Current assets Cash and cash equivalents $ 146,494 Customer and other accounts receivable 49,809 Fuel inventory 22,060 Materials and supplies 25,659 Energy risk management assets 4,193 Other current assets 10,056 Non-current assets Property, plant, and equipment, net 741,203 Prepayments 36,166 Restricted cash and cash equivalents 707 Intangible assets 98,900 Other deferred charges 133 Total assets acquired 1,135,380 Current liabilities Accounts payable 38,478 Taxes payable 723 Energy risk management liabilities 241 Other current liabilities 14,570 Non-current liabilities Accumulated deferred federal and state income taxes, net 7,165 Deferred lease revenue 58,300 Intangible liabilities 38,300 Asset retirement obligations 15,323 Operating lease liabilities 110 Total liabilities assumed 173,210 Total purchase price consideration $ 962,170 The 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 | Purchase Price Allocation (THOUSANDS) AT FEB. 4, 2019 Current assets Cash and cash equivalents $ 146,494 Customer and other accounts receivable 49,809 Fuel inventory 22,060 Materials and supplies 25,659 Energy risk management assets 4,193 Other current assets 10,056 Non-current assets Property, plant, and equipment, net 741,203 Prepayments 36,166 Restricted cash and cash equivalents 707 Intangible assets 98,900 Other deferred charges 133 Total assets acquired 1,135,380 Current liabilities Accounts payable 38,478 Taxes payable 723 Energy risk management liabilities 241 Other current liabilities 14,570 Non-current liabilities Accumulated deferred federal and state income taxes, net 7,165 Deferred lease revenue 58,300 Intangible liabilities 38,300 Asset retirement obligations 15,323 Operating lease liabilities 110 Total liabilities assumed 173,210 Total purchase price consideration $ 962,170 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 |
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 date indicated, or the future consolidated results of operations of the combined companies. Unaudited Pro Forma Financial Information (THOUSANDS) FOR THE THREE MONTHS ENDED MAR. 31, 2019 Operating revenue, net $ 381,796 Net income $ 32,986 | 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 2018 Operating revenue, net $ 1,660,362 $ 1,668,022 Net income $ 154,898 $ 170,224 |
Leases (Q1) (Tables)
Leases (Q1) (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | ||
Lease Income Under Cottonwood Sale Leaseback | Cleco Cajun’s lease income under the Cottonwood Sale Leaseback for the three months ended March 31, 2020, and 2019, was as follows: FOR THE THREE MONTHS ENDED MAR. 31, (THOUSANDS) 2020 2019 Fixed payments $ 10,000 $ 6,667 Variable payments 5,566 3,151 Amortization of deferred lease liability (1) 2,302 1,440 Total lease income $ 17,868 $ 11,258 (1) | Cleco Cajun is Cleco’s only entity with lessor arrangements. Cleco Cajun’s lease income under the Cottonwood Sale Leaseback for the year ended December 31, 2019, was as follows: (THOUSANDS) FOR THE YEAR ENDED DEC. 31, 2019 Fixed payments $ 36,667 Variable payments 20,415 Amortization of deferred lease liability (1) 8,438 Total lease income $ 65,520 (1) |
Revenue Recognition (Q1) (Table
Revenue Recognition (Q1) (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | ||
Disaggregation of Revenue | Operating revenue, net for the three months ended March 31, 2020, and 2019, was as follows: FOR THE THREE MONTHS ENDED MAR. 31, 2020 (THOUSANDS) CLECO POWER CLECO CAJUN OTHER ELIMINATIONS TOTAL Revenue from contracts with customers Retail revenue Residential (1) $ 81,571 $ — $ — $ — $ 81,571 Commercial (1) 61,110 — — — 61,110 Industrial (1) 32,210 — — — 32,210 Other retail (1) 3,461 — — — 3,461 Surcharge 2,443 — — — 2,443 Electric customer credits (8,340 ) — — — (8,340 ) Total retail revenue 172,455 — — — 172,455 Wholesale, net 42,229 (1) 89,147 (2,420 ) (2) — 128,956 Transmission, net 12,069 12,931 (3) — (1,818 ) 23,182 Other 3,695 (4) — 1 — 3,696 Affiliate (5) 1,106 161 29,278 (30,545 ) — Total revenue from contracts with customers 231,554 102,239 26,859 (32,363 ) 328,289 Revenue unrelated to contracts with customers Other 1,406 (6) 17,877 (7) — — 19,283 Total revenue unrelated to contracts with customers 1,406 17,877 — — 19,283 Operating revenue, net $ 232,960 $ 120,116 $ 26,859 $ (32,363 ) $ 347,572 (1) (2) (3) (4) (5) (6) (7) FOR THE THREE MONTHS ENDED MAR. 31, 2019 (THOUSANDS) CLECO POWER CLECO CAJUN OTHER ELIMINATIONS TOTAL Revenue from contracts with customers Retail revenue Residential (1) $ 87,148 $ — $ — $ — $ 87,148 Commercial (1) 65,380 — — — 65,380 Industrial (1) 37,870 — — — 37,870 Other retail (1) 3,681 — — — 3,681 Surcharge 5,321 — — — 5,321 Electric customer credits (8,160 ) — — — (8,160 ) Total retail revenue 191,240 — — — 191,240 Wholesale, net 55,546 (1) 58,191 (2,420 ) (2) — 111,317 Transmission 12,579 8,727 — — 21,306 Other 6,851 (3) (26 ) 2 — 6,827 Affiliate (4) 300 — 26,535 (26,835 ) — Total revenue from contracts with customers 266,516 66,892 24,117 (26,835 ) 330,690 Revenue unrelated to contracts with customers Other 2,229 (5) 11,267 (6) — — 13,496 Total revenue unrelated to contracts with customers 2,229 11,267 — — 13,496 Operating revenue, net $ 268,745 $ 78,159 $ 24,117 $ (26,835 ) $ 344,186 (1) (2) (3) (4) (5) (6) | Operating revenue, net for the year ended December 31, 2019, and 2018, was as follows: 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, net 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. FOR THE YEAR ENDED DEC. 31, 2018 (THOUSANDS) CLECO POWER OTHER ELIMINATIONS TOTAL Revenue from contracts with customers Retail revenue Residential (1) $ 435,610 $ — $ — $ 435,610 Commercial (1) 288,791 — — 288,791 Industrial (1) 167,001 — — 167,001 Other retail (1) 15,582 — — 15,582 Surcharge 23,138 — — 23,138 Electric customer credits (33,195 ) — — (33,195 Total retail revenue 896,927 — — 896,927 Wholesale, net (1) 219,598 (9,680 ) (2) — 209,918 Transmission 54,531 — — 54,531 Other (3) 27,800 2 — 27,802 Affiliate (4) 874 74,591 (75,465 ) — Total revenue from contracts with customers 1,199,730 64,913 (75,465 ) 1,189,178 Revenue unrelated to contracts with customers Other (5) 41,866 — — 41,866 Total revenue unrelated to contracts with customers 41,866 — — 41,866 Operating revenue, net $ 1,241,596 $ 64,913 $ (75,465 ) $ 1,231,044 (1) Includes fuel recovery revenue. (2) Amortization of intangible assets related to wholesale power supply agreements. (3) Other revenue from contracts with customers includes $18.2 million of other miscellaneous fee revenue and $9.6 million of Teche Unit 3 SSR revenue. (4) Affiliate revenue from contracts with customers includes interdepartmental rents and support services. This revenue is eliminated upon consolidation. (5) Includes realized gains associated with FTRs of $39.3 million and LCFC revenue of $2.6 million. |
Regulatory Assets and Liabili_5
Regulatory Assets and Liabilities (Q1) (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Regulatory Assets [Line Items] | ||
Schedule of Regulatory Assets | The following table summarizes Cleco’s net regulatory assets and liabilities: Cleco (THOUSANDS) AT MAR. 31, 2020 AT DEC. 31, 2019 Total Cleco Power regulatory assets, net $ 144,727 $ 152,549 2016 Merger adjustments (1) Fair value of long-term debt 125,105 127,977 Postretirement costs 16,902 17,399 Financing costs 7,849 7,935 Debt issuance costs 5,504 5,665 Total Cleco regulatory assets, net $ 300,087 $ 311,525 (1) | The following table summarizes Cleco’s net regulatory assets and liabilities: Cleco AT DEC. 31, (THOUSANDS) 2019 2018 Total Cleco Power regulatory assets, net $ 152,549 $ 134,755 2016 Merger adjustments (1) Fair value of long-term debt 127,977 138,701 Postretirement costs 17,399 19,387 Financing costs 7,935 8,279 Debt issuance costs 5,665 6,252 Total Cleco regulatory assets, net $ 311,525 $ 307,374 (1) |
Schedule of Regulatory Liabilities | The following table summarizes Cleco’s net regulatory assets and liabilities: Cleco AT DEC. 31, (THOUSANDS) 2019 2018 Total Cleco Power regulatory assets, net $ 152,549 $ 134,755 2016 Merger adjustments (1) Fair value of long-term debt 127,977 138,701 Postretirement costs 17,399 19,387 Financing costs 7,935 8,279 Debt issuance costs 5,665 6,252 Total Cleco regulatory assets, net $ 311,525 $ 307,374 (1) | |
Cleco Power | ||
Regulatory Assets [Line Items] | ||
Schedule of Regulatory Assets | The following table summarizes Cleco Power’s regulatory assets and liabilities: Cleco Power (THOUSANDS) AT MAR. 31, 2020 AT DEC. 31, 2019 Regulatory assets (liabilities) Deferred taxes, net $ (146,225 ) $ (146,948 ) Interest costs 3,896 3,958 AROs 3,815 3,668 Postretirement costs 147,889 151,543 Tree trimming costs 11,384 11,341 Training costs 6,202 6,241 Surcredits, net (1) 72 145 AMI deferred revenue requirement 3,000 3,136 Emergency declarations 948 1,349 Production operations and maintenance expenses 6,756 7,985 AFUDC equity gross-up (1) 71,992 72,766 Acadia Unit 1 acquisition costs 2,098 2,124 Financing costs 7,461 7,554 Coughlin transaction costs 899 906 Corporate franchise tax, net (1,145 ) (1,145 ) Non-service cost of postretirement benefits 7,551 6,739 Energy efficiency 2,820 2,820 Accumulated deferred fuel 16,353 22,910 Other, net (1,039 ) (4,543 ) Total regulatory assets, net $ 144,727 $ 152,549 (1) | The following table summarizes Cleco Power’s regulatory assets and liabilities: Cleco Power AT DEC. 31, (THOUSANDS) 2019 2018 REMAINING RECOVERY PERIOD (YRS.) Regulatory assets (liabilities) Deferred taxes, net (146,948 ) (155,537 ) * Mining costs — 1,274 — Interest costs 3,958 4,208 * AROs 3,668 3,099 * Postretirement costs 151,543 140,245 * Tree trimming costs 11,341 9,069 * Training costs 6,241 6,396 40 Surcredits, net (1) 145 289 * AMI deferred revenue requirement 3,136 3,681 6 Emergency declarations 1,349 2,980 * Production operations and maintenance expenses 7,985 12,245 * AFUDC equity gross-up (1) 72,766 71,952 * Acadia Unit 1 acquisition costs 2,124 2,230 20 Financing costs 7,554 7,923 * Coughlin transaction costs 906 938 29.5 Corporate franchise tax, net (1,145 ) 1,416 * Non-service cost of postretirement benefits 6,739 4,629 * Energy efficiency 2,820 2,585 * Accumulated deferred fuel 22,910 20,112 * Other, net (4,543 ) (4,979 ) * Total regulatory assets, net $ 152,549 $ 134,755 (1) * For information related to the remaining recovery periods, refer to the following disclosures for each specific regulatory asset. |
Schedule of Regulatory Liabilities | The following table summarizes Cleco Power’s regulatory assets and liabilities: Cleco Power (THOUSANDS) AT MAR. 31, 2020 AT DEC. 31, 2019 Regulatory assets (liabilities) Deferred taxes, net $ (146,225 ) $ (146,948 ) Interest costs 3,896 3,958 AROs 3,815 3,668 Postretirement costs 147,889 151,543 Tree trimming costs 11,384 11,341 Training costs 6,202 6,241 Surcredits, net (1) 72 145 AMI deferred revenue requirement 3,000 3,136 Emergency declarations 948 1,349 Production operations and maintenance expenses 6,756 7,985 AFUDC equity gross-up (1) 71,992 72,766 Acadia Unit 1 acquisition costs 2,098 2,124 Financing costs 7,461 7,554 Coughlin transaction costs 899 906 Corporate franchise tax, net (1,145 ) (1,145 ) Non-service cost of postretirement benefits 7,551 6,739 Energy efficiency 2,820 2,820 Accumulated deferred fuel 16,353 22,910 Other, net (1,039 ) (4,543 ) Total regulatory assets, net $ 144,727 $ 152,549 (1) | The following table summarizes Cleco Power’s regulatory assets and liabilities: Cleco Power AT DEC. 31, (THOUSANDS) 2019 2018 REMAINING RECOVERY PERIOD (YRS.) Regulatory assets (liabilities) Deferred taxes, net (146,948 ) (155,537 ) * Mining costs — 1,274 — Interest costs 3,958 4,208 * AROs 3,668 3,099 * Postretirement costs 151,543 140,245 * Tree trimming costs 11,341 9,069 * Training costs 6,241 6,396 40 Surcredits, net (1) 145 289 * AMI deferred revenue requirement 3,136 3,681 6 Emergency declarations 1,349 2,980 * Production operations and maintenance expenses 7,985 12,245 * AFUDC equity gross-up (1) 72,766 71,952 * Acadia Unit 1 acquisition costs 2,124 2,230 20 Financing costs 7,554 7,923 * Coughlin transaction costs 906 938 29.5 Corporate franchise tax, net (1,145 ) 1,416 * Non-service cost of postretirement benefits 6,739 4,629 * Energy efficiency 2,820 2,585 * Accumulated deferred fuel 22,910 20,112 * Other, net (4,543 ) (4,979 ) * Total regulatory assets, net $ 152,549 $ 134,755 (1) * For information related to the remaining recovery periods, refer to the following disclosures for each specific regulatory asset. |
Fair Value Accounting (Q1) (Tab
Fair Value Accounting (Q1) (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying Value and Estimated Fair Value | The following tables summarize the carrying value and estimated market value of Cleco and Cleco Power’s financial instruments not measured at fair value on Cleco and Cleco Power’s Condensed Consolidated Balance Sheets: Cleco AT MAR. 31, 2020 AT DEC. 31, 2019 (THOUSANDS) CARRYING VALUE* FAIR VALUE CARRYING VALUE* FAIR VALUE Long-term debt $ 3,174,821 $ 3,295,214 $ 3,188,664 $ 3,371,915 * The carrying value of long-term debt does not include deferred issuance costs of $13.2 million at March 31, 2020, and $13.7 million at December 31, 2019. | 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, 2019 2018 (THOUSANDS) CARRYING VALUE* FAIR VALUE CARRYING VALUE* FAIR VALUE Long-term debt $ 3,188,664 $ 3,371,915 $ 2,889,631 $ 2,859,924 *The carrying value of long-term debt does not include deferred issuance costs of $13.7 million at December 31, 2019, and $10.3 million at December 31, 2018. |
Fair Value of Financial Assets and Liabilities Measured On A Recurring Basis | The following tables disclose for Cleco and Cleco Power the fair value of financial assets and liabilities measured on a recurring basis: Cleco FAIR VALUE MEASUREMENTS AT REPORTING DATE (THOUSANDS) AT MAR. 31, 2020 QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) AT DEC. 31, 2019 QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) Asset description Institutional money market funds $ 352,549 $ — $ 352,549 $ — $ 129,643 $ — $ 129,643 $ — FTRs 1,779 — — 1,779 6,822 — — 6,822 Other commodity derivatives 213 — 213 — 201 — 201 — Total assets $ 354,541 $ — $ 352,762 $ 1,779 $ 136,666 $ — $ 129,844 $ 6,822 Liability description FTRs $ 683 $ — $ — $ 683 $ 1,044 $ — $ — $ 1,044 Other commodity derivatives 12,494 — 12,494 — 5,373 — 5,373 — Total liabilities $ 13,177 $ — $ 12,494 $ 683 $ 6,417 $ — $ 5,373 $ 1,044 | The following tables disclose for Cleco and Cleco Power the fair value of financial assets and liabilities measured on a recurring basis: Cleco FAIR VALUE MEASUREMENTS AT REPORTING DATE (THOUSANDS) AT DEC. 31, 2019 QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) AT DEC. 31, 2018 QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) Asset Description Institutional money market funds $ 129,643 $ — $ 129,643 $ — $ 133,722 $ — $ 133,722 $ — FTRs 6,822 — — 6,822 23,355 — — 23,355 Other commodity derivatives 201 — 201 — — — — — Total assets $ 136,666 $ — $ 129,844 $ 6,822 $ 157,077 $ — $ 133,722 $ 23,355 Liability Description FTRs $ 1,044 $ — $ — $ 1,044 $ 468 $ — $ — $ 468 Other commodity derivatives 5,373 — 5,373 — — $ — $ — $ — Total liabilities $ 6,417 $ — $ 5,373 $ 1,044 $ 468 $ — $ — $ 468 |
Net Changes in Net Fair Value of FTR Assets and Liabilities Classified as Level 3 | The following tables summarize the net changes in the net fair value of FTR assets and liabilities classified as Level 3 in the fair value hierarchy for Cleco and Cleco Power: Cleco FOR THE THREE MONTHS ENDED MAR. 31, (THOUSANDS) 2020 2019 Beginning balance $ 5,778 $ 22,887 Unrealized losses* (1,398 ) (1,917 ) Purchases 466 5,237 Settlements (3,750 ) (18,397 ) Ending balance $ 1,096 $ 7,810 * Cleco Power’s unrealized losses are reported through Accumulated deferred fuel on Cleco’s Condensed Consolidated Balance Sheet. Cleco Cajun’s unrealized (losses) gains are reported through Purchased power on Cleco’s Condensed Consolidated Income Statement. | 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) 2019 2018 Beginning balance $ 22,887 $ 7,044 Unrealized (losses) gains * (1,659 ) 11,865 Purchases 27,881 28,185 Settlements (43,331 ) (24,207 ) Ending balance $ 5,778 $ 22,887 * Cleco Power’s unrealized (losses) gains are reported through Accumulated deferred fuel on Cleco’s Consolidated Balance Sheet. Cleco Cajun’s unrealized (losses) gains are reported through Purchased power on Cleco’s Consolidated Income Statement. |
Significant Unobservable Inputs Used in Developing Fair Value of Level 3 Positions | The following tables quantify the significant unobservable inputs used in developing the fair value of Level 3 positions for Cleco and Cleco Power as of March 31, 2020, and December 31, 2019: Cleco FAIR VALUE VALUATION TECHNIQUE SIGNIFICANT UNOBSERVABLE INPUTS FORWARD PRICE RANGE (THOUSANDS, EXCEPT FORWARD PRICE RANGE) ASSETS LIABILITIES LOW HIGH FTRs at Mar. 31, 2020 $ 1,779 $ 683 RTO auction pricing FTR price - per MWh $ (1.40 ) $ 2.93 FTRs at Dec. 31, 2019 $ 6,822 $ 1,044 RTO auction pricing FTR price - per MWh $ (2.57 ) $ 2.86 | 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, 2019: Cleco FAIR VALUE VALUATION TECHNIQUE SIGNIFICANT UNOBSERVABLE INPUTS FORWARD PRICE RANGE (THOUSANDS, EXCEPT DOLLAR PER MWh) Assets Liabilities Low High FTRs at December 31, 2019 $ 6,822 $ 1,044 RTO auction pricing FTR price - per MWh $ (2.57 ) $ 2.86 FTRs at December 31, 2018 $ 23,355 $ 468 RTO auction pricing FTR price - per MWh $ (4.40 ) $ 15.10 |
Institutional Money Market Funds | The following tables present the institutional money market funds in cash and cash equivalents and restricted cash and cash equivalents as recorded on Cleco and Cleco Power’s Condensed Consolidated Balance Sheets at March 31, 2020, and December 31, 2019: Cleco (THOUSANDS) AT MAR. 31, 2020 AT DEC. 31, 2019 Cash and cash equivalents $ 338,611 $ 103,409 Current restricted cash and cash equivalents $ 4,054 $ 11,100 Non-current restricted cash and cash equivalents $ 9,883 $ 15,134 | |
Fair Value of Derivative Instruments as Recorded in Condensed Consolidated Balance Sheets | The following tables present the fair values of derivative instruments and their respective line items as recorded on Cleco and Cleco Power’s Condensed Consolidated Balance Sheets at March 31, 2020, and December 31, 2019: Cleco DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS (THOUSANDS) BALANCE SHEET LINE ITEM AT MAR. 31, 2020 AT DEC. 31, 2019 Commodity-related contracts FTRs Current Energy risk management assets $ 1,779 $ 6,822 Current Energy risk management liabilities (683 ) (1,044 ) Other commodity derivatives Current Energy risk management assets 213 201 Current Energy risk management liabilities (9,014 ) (3,069 ) Non-current Other deferred credits (3,480 ) (2,304 ) Commodity-related contracts, net $ (11,185 ) $ 606 | |
Amount of Gain (Loss) Recognized in Income on Derivatives | The following tables present the effect of derivatives not designated as hedging instruments on Cleco and Cleco Power’s Condensed Consolidated Statements of Income for the three months ended March 31, 2020, and 2019: Cleco AMOUNT OF GAIN(LOSS) RECOGNIZED IN INCOME ON DERIVATIVES FOR THE THREE MONTHS ENDED MAR. 31, (THOUSANDS) INCOME STATEMENT LINE ITEM 2020 2019 Commodity-related contracts FTRs (1) Electric operations $ 1,396 $ 5,209 FTRs (1) Purchased power (381 ) (3,324 ) Other commodity derivatives Fuel used for electric generation (7,108 ) — Total $ (6,093 ) $ 1,885 (1) | |
Cleco Power | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying Value and Estimated Fair Value | Cleco Power AT MAR. 31, 2020 AT DEC. 31, 2019 (THOUSANDS) CARRYING VALUE* FAIR VALUE CARRYING VALUE* FAIR VALUE Long-term debt $ 1,369,716 $ 1,696,053 $ 1,380,688 $ 1,601,865 * The carrying value of long-term debt does not include deferred issuance costs of $7.2 million at March 31, 2020, and $7.4 million at December 31, 2019. | Cleco Power AT DEC. 31, 2019 2018 (THOUSANDS) CARRYING VALUE* FAIR VALUE CARRYING VALUE* FAIR VALUE Long-term debt $ 1,380,688 $ 1,601,865 $ 1,400,930 $ 1,517,152 * The carrying value of long-term debt does not include deferred issuance costs of $7.4 million at December 31, 2019, and $8.3 million at December 31, 2018. |
Fair Value of Financial Assets and Liabilities Measured On A Recurring Basis | Cleco Power FAIR VALUE MEASUREMENTS AT REPORTING DATE (THOUSANDS) AT MAR. 31, 2020 QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) AT DEC. 31, 2019 QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) Asset description Institutional money market funds $ 198,006 $ — $ 198,006 $ — $ 74,903 $ — $ 74,903 $ — FTRs 1,673 — — 1,673 6,311 — — 6,311 Total assets $ 199,679 $ — $ 198,006 $ 1,673 $ 81,214 $ — $ 74,903 $ 6,311 Liability description FTRs $ 524 $ — $ — $ 524 $ 586 $ — $ — $ 586 Total liabilities $ 524 $ — $ — $ 524 $ 586 $ — $ — $ 586 | Cleco Power FAIR VALUE MEASUREMENTS AT REPORTING DATE (THOUSANDS) AT DEC. 31, 2019 QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) AT DEC. 31, 2018 QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) Asset Description Institutional money market funds $ 74,903 $ — $ 74,903 $ — $ 55,900 $ — $ 55,900 $ — FTRs 6,311 — — 6,311 23,355 — — 23,355 Total assets $ 81,214 $ — $ 74,903 $ 6,311 $ 79,255 $ — $ 55,900 $ 23,355 Liability Description FTRs $ 586 $ — $ — $ 586 $ 468 $ — $ — $ 468 Total liabilities $ 586 $ — $ — $ 586 $ 468 $ — $ — $ 468 |
Net Changes in Net Fair Value of FTR Assets and Liabilities Classified as Level 3 | Cleco Power FOR THE THREE MONTHS ENDED MAR. 31, (THOUSANDS) 2020 2019 Beginning balance $ 5,725 $ 22,887 Unrealized losses* (1,311 ) (2,939 ) Purchases 466 1,286 Settlements (3,731 ) (16,422 ) Ending balance $ 1,149 $ 4,812 * Unrealized losses are reported through Accumulated deferred fuel on Cleco Power’s Condensed Consolidated Balance Sheet. | Cleco Power FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2019 2018 Beginning balance $ 22,887 $ 7,044 Unrealized (losses) gains * (945 ) 11,865 Purchases 21,609 28,185 Settlements (37,826 ) (24,207 ) Ending balance $ 5,725 $ 22,887 * Unrealized gains (losses) are reported through Accumulated deferred fuel on Cleco Power’s Consolidated Balance Sheets. |
Significant Unobservable Inputs Used in Developing Fair Value of Level 3 Positions | Cleco Power FAIR VALUE VALUATION TECHNIQUE SIGNIFICANT UNOBSERVABLE INPUTS FORWARD PRICE RANGE (THOUSANDS, EXCEPT FORWARD PRICE RANGE) ASSETS LIABILITIES LOW HIGH FTRs at Mar. 31, 2020 $ 1,673 $ 524 RTO auction pricing FTR price - per MWh $ (1.40 ) $ 2.93 FTRs at Dec. 31, 2019 $ 6,311 $ 586 RTO auction pricing FTR price - per MWh $ (2.04 ) $ 2.86 | Cleco Power FAIR VALUE VALUATION TECHNIQUE SIGNIFICANT UNOBSERVABLE INPUTS FORWARD PRICE RANGE (THOUSANDS, EXCEPT DOLLAR PER MWh) Assets Liabilities Low High FTRs at December 31, 2019 $ 6,311 $ 586 RTO auction pricing FTR price - per MWh $ (2.04 ) $ 2.86 FTRs at December 31, 2018 $ 23,355 $ 468 RTO auction pricing FTR price - per MWh $ (4.40 ) $ 15.10 |
Institutional Money Market Funds | Cleco Power (THOUSANDS) AT MAR. 31, 2020 AT DEC. 31, 2019 Cash and cash equivalents $ 184,911 $ 49,509 Current restricted cash and cash equivalents $ 4,054 $ 11,100 Non-current restricted cash and cash equivalents $ 9,041 $ 14,294 | |
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 MAR. 31, 2020 AT DEC. 31, 2019 Commodity-related contracts FTRs Current Energy risk management assets $ 1,673 $ 6,311 Current Energy risk management liabilities (524 ) (586 ) Commodity-related contracts, net $ 1,149 $ 5,725 | |
Amount of Gain (Loss) Recognized in Income on Derivatives | Cleco Power AMOUNT OF GAIN(LOSS) RECOGNIZED IN INCOME ON DERIVATIVES FOR THE THREE MONTHS ENDED MAR. 31, (THOUSANDS) INCOME STATEMENT LINE ITEM 2020 2019 Commodity-related contracts FTRs (1) Electric operations $ 1,396 $ 5,206 FTRs (1) Purchased power (751 ) (1,983 ) Total $ 645 $ 3,223 (1) |
Pension Plan and Employee Ben_6
Pension Plan and Employee Benefits (Q1) (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Net Periodic Pension and Other Benefits Cost | The components of net periodic pension and Other Benefits cost for the three months ended March 31, 2020, and 2019 were as follows: PENSION BENEFITS OTHER BENEFITS FOR THE THREE MONTHS ENDED MAR. 31, FOR THE THREE MONTHS ENDED MAR. 31, (THOUSANDS) 2020 2019 2020 2019 Components of periodic benefit costs Service cost $ 2,328 $ 2,067 $ 508 $ 288 Interest cost 5,130 5,650 410 400 Expected return on plan assets (6,245 ) (6,622 ) — — Amortizations Prior period service credit (15 ) (18 ) — — Net loss (gain) 3,672 1,875 339 (45 ) Net periodic benefit cost $ 4,870 $ 2,952 $ 1,257 $ 643 FOR THE THREE MONTHS ENDED MAR. 31, (THOUSANDS) 2020 2019 Components of periodic benefit costs Service cost $ 95 $ 113 Interest cost 733 825 Amortizations Prior period service credit (40 ) (35 ) Net loss 757 392 Net periodic benefit cost $ 1,545 $ 1,295 | 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 2019, 2018, and 2017 are as follows: PENSION BENEFITS OTHER BENEFITS FOR THE YEAR ENDED DEC. 31, FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2019 2018 2017 2019 2018 2017 Components of periodic benefit costs Service cost $ 8,414 $ 9,507 $ 9,039 $ 1,191 $ 1,320 1,446 Interest cost 22,485 20,860 21,648 1,646 1,465 1,569 Expected return on plan assets (26,502 ) (23,773 ) (24,064 ) — — — Amortizations Prior service credit (71 ) (71 ) (71 ) — — — Net loss (gain) 7,849 12,312 10,008 21 135 (50 ) Net periodic benefit cost $ 12,175 $ 18,835 $ 16,560 2,858 $ 2,920 $ 2,965 The components of the net SERP costs for 2019, 2018, and 2017 are as follows: SERP BENEFITS FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2019 2018 2017 Components of periodic benefit costs Service cost $ 330 $ 542 $ 494 Interest cost 3,326 3,077 3,239 Amortizations Prior service credit (160 ) (160 ) (190 ) Net loss 1,544 2,913 2,105 Net periodic benefit cost 5,040 6,372 5,648 Special/contractual termination benefits — — 315 Total benefit cost $ 5,040 $ 6,372 $ 5,963 |
Current and Non-Current Portions of Other Benefits Liability | The current and non-current portions of the Other Benefits liability for Cleco and Cleco Power at March 31, 2020, and December 31, 2019, were as follows: Cleco (THOUSANDS) AT MAR. 31, 2020 AT DEC. 31, 2019 Current $ 4,401 $ 4,401 Non-current $ 48,175 $ 48,321 The current and non-current portions of the SERP liability for Cleco and Cleco Power at March 31, 2020, and December 31, 2019, were as follows: Cleco (THOUSANDS) AT MAR. 31, 2020 AT DEC. 31, 2019 Current $ 4,599 $ 4,599 Non-current $ 84,219 $ 84,529 | The current and non-current portions of the Other Benefits liability for Cleco and Cleco Power at December 31, 2019, and 2018 are as follows: Cleco AT DEC. 31, (THOUSANDS) 2019 2018 Current $ 4,401 $ 4,130 Non-current $ 48,321 $ 36,325 The current and non-current portions of the SERP liability for Cleco and Cleco Power at December 31, 2019, and 2018 are as follows: Cleco AT DEC. 31, (THOUSANDS) 2019 2018 Current $ 4,599 $ 4,478 Non-current $ 84,529 $ 73,936 |
Expense of the 401(k) Plan | Cleco’s 401(k) Plan expense for the three months ended March 31, 2020, and 2019 was as follows: FOR THE THREE MONTHS ENDED MAR. 31, (THOUSANDS) 2020 2019 401(k) Plan expense $ 3,256 $ 2,267 The expense of the 401(k) Plan related to Cleco’s other subsidiaries for the three months ended March 31, 2020, and 2019 was as follows: FOR THE THREE MONTHS ENDED MAR. 31, (THOUSANDS) 2020 2019 401(k) Plan expense $ 1,662 $ 930 | Cleco’s 401(k) Plan expense for the years ended December 31, 2019, 2018, and 2017 was as follows: FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2019 2018 2017 401(k) Plan expense $ 7,861 $ 5,884 $ 5,386 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, 2019, 2018, and 2017 was as follows: FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2019 2018 2017 401(k) Plan expense $ 3,408 $ 1,066 $ 888 |
Cleco Power | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Current and Non-Current Portions of Other Benefits Liability | Cleco Power (THOUSANDS) AT MAR. 31, 2020 AT DEC. 31, 2019 Current $ 3,815 $ 3,815 Non-current $ 41,994 $ 42,080 Cleco Power (THOUSANDS) AT MAR. 31, 2020 AT DEC. 31, 2019 Current $ 760 $ 760 Non-current $ 13,863 $ 13,964 | Cleco Power AT DEC. 31, (THOUSANDS) 2019 2018 Current $ 3,815 $ 3,584 Non-current $ 42,080 $ 31,694 Cleco Power AT DEC. 31, (THOUSANDS) 2019 2018 Current $ 760 $ 930 Non-current $ 13,964 $ 12,025 |
Income Taxes (Q1) (Tables)
Income Taxes (Q1) (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Effective Income Tax Rate [Line Items] | ||
Effective Income Tax Rates | The following tables summarize the effective income tax rates for Cleco and Cleco Power for the three months ended March 31, 2020, and 2019: Cleco FOR THE THREE MONTHS ENDED MAR. 31, 2020 2019 Effective tax rate 19.8 % 22.6 % | The differences are as follows: FOR THE YEAR ENDED DEC. 31, (THOUSANDS, EXCEPT PERCENTAGES) 2019 2018 2017 Income before tax $ 195,830 $ 123,819 $ 145,159 Statutory rate 21.0 % 21.0 % 35.0 % Tax expense at federal statutory rate $ 41,124 $ 26,002 $ 50,806 Increase (decrease) Plant differences, including AFUDC flowthrough (4,687 ) (401 ) 743 State income taxes, net of federal benefit 9,565 6,288 5,047 Return to accrual adjustment (3,963 ) (193 ) (608 ) TCJA — (19 ) (46,291 ) NMTC — (1,578 ) 313 Other, net 1,126 (717 ) (2,931 ) Total tax expense $ 43,165 $ 29,382 $ 7,079 Effective rate 22.0 % 23.7 % 4.9 % |
Cleco Power | ||
Effective Income Tax Rate [Line Items] | ||
Effective Income Tax Rates | Cleco Power FOR THE THREE MONTHS ENDED MAR. 31, 2020 2019 Effective tax rate 22.0 % 23.0 % | The differences are as follows: FOR THE YEAR ENDED DEC. 31, (THOUSANDS, EXCEPT PERCENTAGES) 2019 2018 2017 Income before tax $ 193,714 $ 218,181 $ 218,069 Statutory rate 21.0 % 21.0 % 35.0 % Tax expense at federal statutory rate $ 40,680 $ 45,818 $ 76,324 Increase (decrease) Plant differences, including AFUDC flowthrough (4,687 ) (401 ) 743 State income taxes, net of federal benefit 11,683 11,080 7,583 Return to accrual adjustment (2,008 ) 483 (284 ) TCJA — (19 ) (14,292 ) Other, net (216 ) (1,037 ) (2,743 ) Total taxes $ 45,452 $ 55,924 $ 67,331 Effective rate 23.5 % 25.6 % 30.9 % |
Disclosures about Segments (Q_3
Disclosures about Segments (Q1) (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting [Abstract] | ||
Segment Information | 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 Three Months Ended Mar. 31, 2020 (THOUSANDS) CLECO POWER CLECO CAJUN OTHER ELIMINATIONS CONSOLIDATED Revenue Electric operations $ 224,430 $ 89,147 $ (2,420 ) $ — $ 311,157 Other operations 15,764 30,961 1 (1,818 ) 44,908 Affiliate revenue 1,106 161 29,278 (30,545 ) — Electric customer credits (8,340 ) (153 ) — — (8,493 ) Operating revenue, net $ 232,960 $ 120,116 $ 26,859 $ (32,363 ) $ 347,572 Depreciation and amortization $ 43,677 $ 10,103 $ 2,094 $ (1 ) $ 55,873 Interest income $ 954 $ 155 $ 100 $ (52 ) $ 1,157 Interest charges $ 18,581 $ 10 $ 16,610 $ (52 ) $ 35,149 Federal and state income tax expense (benefit) $ 3,338 $ 6,421 $ (8,197 ) $ — $ 1,562 Net income (loss) $ 11,831 $ 19,535 $ (25,039 ) $ 1 $ 6,328 Additions to property, plant, and equipment $ 61,477 $ 3,341 $ 806 $ — $ 65,624 Equity investment in investees $ 17,072 $ — $ — $ — $ 17,072 Goodwill $ 1,490,797 $ — $ — $ — $ 1,490,797 Total segment assets $ 6,098,446 $ 1,020,099 $ 616,068 $ (58,418 ) $ 7,676,195 2019 (THOUSANDS) CLECO POWER CLECO CAJUN OTHER ELIMINATIONS CONSOLIDATED Revenue Electric operations $ 257,175 $ 58,194 $ (2,420 ) $ — $ 312,949 Other operations 19,430 19,965 2 — 39,397 Affiliate revenue 300 — 26,535 (26,835 ) — Electric customer credits (8,160 ) — — — (8,160 ) Operating revenue, net $ 268,745 $ 78,159 $ 24,117 $ (26,835 ) $ 344,186 Depreciation and amortization $ 42,377 $ 5,410 $ 2,069 $ — $ 49,856 Interest income $ 994 $ 254 $ 417 $ (174 ) $ 1,491 Interest charges $ 17,145 $ — $ 17,028 $ (174 ) $ 33,999 Federal and state income tax expense (benefit) $ 7,998 $ 3,529 $ (5,540 ) $ (1 ) $ 5,986 Net income (loss) $ 26,712 $ 11,056 $ (17,210 ) $ (1 ) $ 20,557 Additions to property, plant, and equipment $ 81,040 $ 1,530 $ 1,109 $ — $ 83,679 Equity investment in investees (1) $ 17,072 $ — $ — $ — $ 17,072 Goodwill (1) $ 1,490,797 $ — $ — $ — $ 1,490,797 Total segment assets (1) $ 5,967,327 $ 1,011,591 $ 546,096 $ (48,716 ) $ 7,476,298 (1) | SEGMENT INFORMATION FOR THE YEAR ENDED DEC. 31, 2019 (THOUSANDS) CLECO POWER CLECO CAJUN OTHER ELIMINATIONS CONSOLIDATED Revenue Electric operations $ 1,130,928 $ 375,489 $ (9,680 ) $ (1 ) $ 1,496,736 Other operations 72,833 117,468 2 (7,471 ) 182,832 Affiliate revenue 3,125 108 109,067 (112,300 ) — Electric customer credits (38,516 ) (1,447 ) — — (39,963 ) Operating revenue, net $ 1,168,370 $ 491,618 $ 99,389 $ (119,772 ) $ 1,639,605 Depreciation and amortization $ 172,471 $ 35,544 $ 8,305 $ — $ 216,320 Merger transaction and commitment costs $ — $ — $ 7,668 $ — $ 7,668 Interest income $ 4,744 $ 987 $ 974 $ (615 ) $ 6,090 Interest charges $ 71,279 $ 35 $ 70,611 $ (616 ) $ 141,309 Net income (loss) $ 148,262 $ 69,411 $ (65,009 ) $ 1 $ 152,665 Additions to property, plant, and equipment $ 313,962 $ 9,174 $ 655 $ — $ 323,791 Equity investment in investee $ 17,072 $ — $ — $ — $ 17,072 Goodwill $ 1,490,797 $ — $ — $ — $ 1,490,797 Total segment assets $ 5,967,327 $ 1,011,591 $ 546,096 $ (48,716 ) $ 7,476,298 FOR THE YEAR ENDED DEC. 31, 2018 (THOUSANDS) CLECO POWER OTHER ELIMINATIONS CONSOLIDATED Revenue Electric operations $ 1,191,587 $ (9,680 ) $ — $ 1,181,907 Other operations 82,330 2 — 82,332 Affiliate revenue 874 74,591 (75,465 ) — Electric customer credits (33,195 ) — — (33,195 ) Operating revenue, net $ 1,241,596 $ 64,913 $ (75,465 ) $ 1,231,044 Depreciation and amortization $ 162,069 $ 8,344 $ 1 $ 170,414 Merger transaction and commitment costs $ — $ 19,514 $ — $ 19,514 Interest income $ 5,052 $ 1,338 $ (317 ) $ 6,073 Interest charges $ 71,303 $ 55,659 $ (320 ) $ 126,642 Federal and state income tax expense (benefit) $ 55,924 $ (26,541 ) $ (1 ) $ 29,382 Net income (loss) $ 162,257 $ (67,819 ) $ (1 ) $ 94,437 Additions to property, plant, and equipment $ 289,153 $ 1,908 $ — $ 291,061 Equity investment in investee $ 18,172 $ — $ — $ 18,172 Goodwill $ 1,490,797 $ — $ — $ 1,490,797 Total segment assets $ 5,839,853 $ 633,756 $ (36,795 ) $ 6,436,814 FOR THE YEAR ENDED DEC. 31, 2017 (THOUSANDS) CLECO POWER OTHER ELIMINATIONS CONSOLIDATED Revenue Electric operations $ 1,108,389 $ (10,757 ) $ — $ 1,097,632 Other operations 77,522 2,058 — 79,580 Affiliate revenue 851 57,168 (58,019 ) — Electric customer credits (1,566 ) — — (1,566 ) Operating revenue, net $ 1,185,196 $ 48,469 $ (58,019 ) $ 1,175,646 Depreciation and amortization $ 158,415 $ 8,439 $ — $ 166,854 Merger transaction and commitment costs $ — $ 5,445 $ (293 ) $ 5,152 Interest income $ 1,283 $ 316 $ (175 ) $ 1,424 Interest charges $ 69,362 $ 53,725 $ (174 ) $ 122,913 Federal and state income tax expense (benefit) $ 67,331 $ (60,252 ) $ — $ 7,079 Net income (loss) $ 150,738 $ (12,659 ) $ 1 $ 138,080 Additions to property, plant, and equipment $ 235,252 $ 1,680 $ — $ 236,932 Equity investment in investee $ 18,172 $ — $ — $ 18,172 Goodwill $ 1,490,797 $ — $ — $ 1,490,797 Total segment assets $ 5,679,538 $ 619,943 $ (21,099 ) $ 6,278,382 |
Variable Interest Entities (Q_3
Variable Interest Entities (Q1) (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Variable Interest Entity [Line Items] | ||
Equity Method Investments | The following table presents the components of Cleco Power’s equity investment in Oxbow: AT DEC. 31, INCEPTION TO DATE (THOUSANDS) 2019 2018 Purchase price $ 12,873 $ 12,873 Cash contributions 6,399 6,399 Dividend received (2,200 ) (1,100 ) Total equity investment in investee $ 17,072 $ 18,172 The following tables contain summarized financial information for Oxbow: AT DEC. 31, (THOUSANDS) 2019 2018 Current assets $ 2,239 $ 4,128 Property, plant, and equipment, net 23,738 25,186 Other assets 9,364 9,405 Total assets $ 35,341 $ 38,719 Current liabilities $ 1,196 $ 2,374 Partners’ capital 34,145 36,345 Total liabilities and partners’ capital $ 35,341 $ 38,719 FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2019 2018 2017 Operating revenue $ 8,886 $ 6,992 $ 4,189 Operating expenses 8,886 6,992 4,189 Income before taxes $ — $ — $ — | |
Carrying Amount of Assets and Liabilities with Maximum Exposure to Loss | The following table compares the carrying amount of Oxbow’s assets and liabilities with Cleco Power’s maximum exposure to loss related to its investment in Oxbow: AT DEC. 31, (THOUSANDS) 2019 2018 Oxbow’s net assets/liabilities $ 34,145 $ 36,345 Cleco Power’s 50% equity $ 17,072 $ 18,172 Cleco Power’s maximum exposure to loss $ 17,072 $ 18,172 | |
Cleco Power | ||
Variable Interest Entity [Line Items] | ||
Equity Method Investments | The following table presents the components of Cleco Power’s equity investment in Oxbow: INCEPTION TO DATE (THOUSANDS) AT MAR. 31, 2020 AT DEC. 31, 2019 Purchase price $ 12,873 $ 12,873 Cash contributions 6,399 6,399 Dividends (2,200 ) (2,200 ) Total equity investment in investee $ 17,072 $ 17,072 The following table contains summarized financial information for Oxbow: FOR THE THREE MONTHS ENDED MAR. 31, (THOUSANDS) 2020 2019 Operating revenue $ 1,882 $ 1,958 Operating expenses 1,882 1,958 Income before taxes $ — $ — | |
Carrying Amount of Assets and Liabilities with Maximum Exposure to Loss | The following table compares the carrying amount of Oxbow’s assets and liabilities with Cleco Power’s maximum exposure to loss related to its investment in Oxbow: (THOUSANDS) AT MAR. 31, 2020 AT DEC. 31, 2019 Oxbow’s net assets/liabilities $ 34,145 $ 34,145 Cleco Power’s 50% equity $ 17,072 $ 17,072 Cleco Power’s maximum exposure to loss $ 17,072 $ 17,072 |
Affiliate Transactions (Q1) (Ta
Affiliate Transactions (Q1) (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Related Party Transaction [Line Items] | ||
Summary of Balances Payable To or Due From Affiliates | 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) 2019 2018 2017 Support Group Other operations and maintenance $ 73,090 $ 56,669 $ 50,572 Taxes other than income taxes $ (73 ) $ 6 $ (13 ) Other expense $ 64 $ 290 $ 255 Cleco Holdings Other expense $ — $ 1,007 $ 361 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) 2019 2018 2017 Other operations revenue Cleco Cajun $ 7,471 $ — $ — Affiliate revenue Support Group 3,088 874 851 Cleco Cajun 37 — — Other income Cleco Holdings 149 1,092 494 Total $ 10,745 $ 1,966 $ 1,345 Cleco Power had the following affiliate receivable and payable balances associated with the service agreements: AT DEC. 31, 2019 2018 (THOUSANDS) ACCOUNTS RECEIVABLE ACCOUNTS PAYABLE ACCOUNTS RECEIVABLE ACCOUNTS PAYABLE Cleco Holdings $ 10,351 $ 194 $ 699 $ 88 Support Group 3,172 13,890 2,619 7,755 Cleco Cajun 958 39 — — Total $ 14,481 $ 14,123 $ 3,318 $ 7,843 The following table shows the expense of the pension plan related to Cleco Power’s affiliates for the years ended 2019 and 2018: FOR THE YEAR ENDED DEC. 31, (THOUSANDS) 2019 2018 Support Group $ 1,316 $ 1,963 Cleco Cajun $ 239 $ — | |
Cleco Power | ||
Related Party Transaction [Line Items] | ||
Summary of Balances Payable To or Due From Affiliates | The following table is a summary of those balances: AT MAR. 31, 2020 AT DEC. 31, 2019 (THOUSANDS) ACCOUNTS RECEIVABLE ACCOUNTS PAYABLE ACCOUNTS RECEIVABLE ACCOUNTS PAYABLE Cleco Holdings $ 10,420 $ 170 $ 10,351 $ 194 Support Group 1,082 10,197 3,172 13,890 Cleco Cajun 535 119 958 39 Total $ 12,037 $ 10,486 $ 14,481 $ 14,123 |
Intangible Assets and Liabili_2
Intangible Assets and Liabilities (Q1) (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Finite-Lived Intangible Assets [Line Items] | |
Schedule of Amortization of Intangible Assets and Liabilities | The following tables present Cleco and Cleco Power’s amortization of intangible assets and liabilities: Cleco FOR THE THREE MONTHS ENDED MAR. 31, (THOUSANDS) 2020 2019 Intangible assets Cleco Katrina/Rita right to bill and collect storm recovery charges $ 517 $ 4,870 Trade name $ 64 $ 64 Power supply agreements $ 6,400 $ 5,190 Intangible liabilities LTSA $ 871 $ 581 Power supply agreements $ 882 $ 211 |
Schedule of Finite-Lived Intangible Assets and Liabilities | The following tables summarize the balances for intangible assets and liabilities subject to amortization for Cleco and Cleco Power: Cleco (THOUSANDS) AT MAR. 31, 2020 AT DEC. 31, 2019 Intangible assets Cleco Katrina/Rita right to bill and collect storm recovery charges $ 70,594 $ 70,594 Trade name 5,100 5,100 Power supply agreements 184,004 184,004 Total intangible assets carrying amount 259,698 259,698 Intangible liabilities LTSA 24,100 24,100 Power supply agreements 14,200 14,200 Total intangible liability carrying amount 38,300 38,300 Net intangible assets carrying amount 221,398 221,398 Accumulated amortization (120,395 ) (115,167 ) Net intangible assets subject to amortization $ 101,003 $ 106,231 |
Cleco Power | |
Finite-Lived Intangible Assets [Line Items] | |
Schedule of Amortization of Intangible Assets and Liabilities | Cleco Power FOR THE THREE MONTHS ENDED MAR. 31, (THOUSANDS) 2020 2019 Cleco Katrina/Rita right to bill and collect storm recovery charges $ 517 $ 4,870 |
Schedule of Finite-Lived Intangible Assets and Liabilities | Cleco Power (THOUSANDS) AT MAR. 31, 2020 AT DEC. 31, 2019 Cleco Katrina/Rita right to bill and collect storm recovery charges $ 177,537 $ 177,537 Accumulated amortization (177,537 ) (177,020 ) Net intangible assets subject to amortization $ — $ 517 |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss (Q1) (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Accumulated Other Comprehensive Loss [Line Items] | ||
Schedule of Accumulated Other Comprehensive Income Loss | The components of accumulated other comprehensive loss are summarized in the following tables for Cleco and Cleco Power. All amounts are reported net of income taxes. Amounts in parentheses indicate debits. Cleco FOR THE THREE MONTHS ENDED MAR. 31, 2020 (THOUSANDS) POSTRETIREMENT BENEFIT NET LOSS Balances, beginning of period $ (17,513 ) Amounts reclassified from AOCI Amortization of postretirement benefit net gain 414 Balances, Mar. 31, 2020 $ (17,099 ) FOR THE THREE MONTHS ENDED MAR. 31, 2019 (THOUSANDS) POSTRETIREMENT BENEFIT NET GAIN Balances, beginning of period $ 1,786 Amounts reclassified from AOCI Amortization of postretirement benefit net loss (135 ) Balances, Mar. 31, 2019 $ 1,651 | All amounts are reported net of income taxes. Amounts in parentheses indicate debits. Cleco (THOUSANDS) POSTRETIREMENT BENEFIT NET GAIN (LOSS) Balances, Dec. 31, 2016 $ 1,500 Other comprehensive income before reclassifications Postretirement benefit adjustments incurred during the year (3,898 ) Amounts reclassified from accumulated other comprehensive income Amortization of postretirement benefit net gain (523 ) Balances, Dec. 31, 2017 $ (2,921 ) Other comprehensive income before reclassifications Postretirement benefit adjustments incurred during the year 3,681 Amounts reclassified from accumulated other comprehensive income Amortization of postretirement benefit net loss 1,615 Reclassification of effect of tax rate change (589 ) 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 loss (422 ) Balances, Dec. 31, 2019 $ (17,513 ) Cleco Power (THOUSANDS) POSTRETIREMENT BENEFIT NET (LOSS) GAIN NET (LOSS) GAIN ON CASH FLOW HEDGES TOTAL AOCI Balances, Dec. 31, 2016 $ (7,905 ) $ (5,517 ) $ (13,422 ) Other comprehensive loss before reclassifications Postretirement benefit adjustments incurred during the year (948 ) — (948 ) Amounts reclassified from accumulated other comprehensive loss Amortization of postretirement benefit net loss 476 — 476 Reclassification of net loss to interest charges — 211 211 Balances, Dec. 31, 2017 $ (8,377 ) $ (5,306 ) $ (13,683 ) Other comprehensive loss before reclassifications Postretirement benefit adjustments incurred during the year 954 — 954 Amounts reclassified from accumulated other comprehensive loss Amortization of postretirement benefit net loss 1,789 — 1,789 Reclassification of net loss to interest charges — 254 254 Reclassification of effect of tax rate change (1,426 ) (1,070 ) (2,496 ) 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 gain to interest charges — 254 254 Balances, Dec. 31, 2019 $ (16,717 ) $ (5,868 ) $ (22,585 ) |
Cleco Power | ||
Accumulated Other Comprehensive Loss [Line Items] | ||
Schedule of Accumulated Other Comprehensive Income Loss | Cleco Power FOR THE THREE MONTHS ENDED MAR. 31, 2020 (THOUSANDS) POSTRETIREMENT NET LOSS ON CASH TOTAL AOCI Balances, beginning of period $ (16,717 ) $ (5,868 ) $ (22,585 ) Amounts reclassified from AOCI Amortization of postretirement benefit net loss 426 — 426 Reclassification of net loss to interest charges — 64 64 Balances, Mar. 31, 2020 $ (16,291 ) $ (5,804 ) $ (22,095 ) FOR THE THREE MONTHS ENDED MAR. 31, 2019 (THOUSANDS) POSTRETIREMENT NET LOSS ON CASH FLOW TOTAL AOCI Balances, beginning of period $ (7,060 ) $ (6,122 ) $ (13,182 ) Amounts reclassified from AOCI Amortization of postretirement benefit net loss 156 — 156 Reclassification of net loss to interest charges — 64 64 Balances, Mar. 31, 2019 $ (6,904 ) $ (6,058 ) $ (12,962 ) | Cleco Power (THOUSANDS) POSTRETIREMENT BENEFIT NET (LOSS) GAIN NET (LOSS) GAIN ON CASH FLOW HEDGES TOTAL AOCI Balances, Dec. 31, 2016 $ (7,905 ) $ (5,517 ) $ (13,422 ) Other comprehensive loss before reclassifications Postretirement benefit adjustments incurred during the year (948 ) — (948 ) Amounts reclassified from accumulated other comprehensive loss Amortization of postretirement benefit net loss 476 — 476 Reclassification of net loss to interest charges — 211 211 Balances, Dec. 31, 2017 $ (8,377 ) $ (5,306 ) $ (13,683 ) Other comprehensive loss before reclassifications Postretirement benefit adjustments incurred during the year 954 — 954 Amounts reclassified from accumulated other comprehensive loss Amortization of postretirement benefit net loss 1,789 — 1,789 Reclassification of net loss to interest charges — 254 254 Reclassification of effect of tax rate change (1,426 ) (1,070 ) (2,496 ) 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 gain to interest charges — 254 254 Balances, Dec. 31, 2019 $ (16,717 ) $ (5,868 ) $ (22,585 ) |
The Company (FY) (Details)
The Company (FY) (Details) | Dec. 31, 2019generation_unitgenerationCustomersEntityMW |
Organization, Consolidation and Presentation of Financial Statements [Line Items] | |
Number of transmission interconnection facility subsidiaries | Entity | 2 |
Cleco Power | |
Organization, Consolidation and Presentation of Financial Statements [Line Items] | |
Number of generating units owned | generation | 10 |
Nameplate capacity of all generating units (MW) | 3,360 |
Approximate number of customers served | Customers | 288 |
Ownership interest in lignite entity | 50.00% |
Cleco Cajun | |
Organization, Consolidation and Presentation of Financial Statements [Line Items] | |
Number of generating units owned | generation_unit | 8 |
Nameplate capacity of all generating units (MW) | 3,555 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Asset Retirement Obligation (FY) (Details) | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Asset Retirement Obligation [Line Items] | |
Increase (decrease) to ARO | $ 0 |
Cleco Power | |
Asset Retirement Obligation [Line Items] | |
Increase (decrease) to ARO | 0 |
Cleco Cajun | |
Asset Retirement Obligation [Line Items] | |
Increase (decrease) to ARO | $ 15,300,000 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Property, Plant, and Equipment (FY) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2020 | Feb. 04, 2019 | |
Public Utility, Property, Plant and Equipment [Line Items] | |||||
Capitalized software, net | $ 168,600 | $ 7,000 | |||
Capitalized software costs, amortization | 4,917 | 2,154 | $ 2,367 | ||
Property, plant and equipment, net | 4,645,011 | 3,778,795 | $ 4,656,262 | ||
Utility plants | |||||
Generation | 2,812,843 | 1,949,042 | |||
Distribution | 1,153,086 | 1,081,650 | |||
Transmission | 660,279 | 519,269 | |||
Other utility plant | 350,683 | 174,010 | |||
Other property, plant, and equipment | 5,364 | 4,506 | |||
Total property, plant, and equipment | 4,982,255 | 3,728,477 | 5,038,241 | ||
Accumulated depreciation | (454,874) | (303,727) | (503,554) | ||
Net property, plant, and equipment | $ 4,527,381 | 3,424,750 | $ 4,534,687 | ||
Minimum | |||||
Estimated Useful Lives (in years) | |||||
Utility Plants, Generation | 6 years | ||||
Utility Plants, Distribution | 15 years | ||||
Utility Plants, Transmission | 5 years | ||||
Utility Plants, Other utility plant | 2 years | ||||
Other property, plant, and equipment (in years) | 5 years | ||||
Maximum | |||||
Estimated Useful Lives (in years) | |||||
Utility Plants, Generation | 95 years | ||||
Utility Plants, Distribution | 50 years | ||||
Utility Plants, Transmission | 55 years | ||||
Utility Plants, Other utility plant | 45 years | ||||
Other property, plant, and equipment (in years) | 45 years | ||||
Cleco Power | |||||
Public Utility, Property, Plant and Equipment [Line Items] | |||||
Capitalized software, net | $ 166,200 | 5,800 | |||
Capitalized software costs, amortization | 4,321 | 1,607 | $ 1,887 | ||
Utility plants | |||||
Generation | 2,633,590 | 2,476,733 | |||
Distribution | 1,593,104 | 1,523,885 | |||
Transmission | 805,701 | 731,432 | |||
Other utility plant | 457,062 | 282,954 | |||
Total property, plant, and equipment | 5,489,457 | 5,015,004 | |||
Accumulated depreciation | (1,905,031) | (1,804,563) | |||
Net property, plant, and equipment | $ 3,584,426 | $ 3,210,441 | |||
Cleco Power | Minimum | |||||
Estimated Useful Lives (in years) | |||||
Utility Plants, Generation | 10 years | ||||
Utility Plants, Distribution | 15 years | ||||
Utility Plants, Transmission | 5 years | ||||
Utility Plants, Other utility plant | 5 years | ||||
Other property, plant, and equipment (in years) | 5 years | ||||
Cleco Power | Maximum | |||||
Estimated Useful Lives (in years) | |||||
Utility Plants, Generation | 95 years | ||||
Utility Plants, Distribution | 50 years | ||||
Utility Plants, Transmission | 55 years | ||||
Utility Plants, Other utility plant | 45 years | ||||
Other property, plant, and equipment (in years) | 45 years | ||||
Cleco Cajun | |||||
Public Utility, Property, Plant and Equipment [Line Items] | |||||
Property, plant and equipment, net | $ 741,200 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Deferred Project Costs (FY) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Cleco Power | ||
Accounting Policies [Line Items] | ||
Deferred project costs | $ 1.4 | $ 1.4 |
Summary of Significant Accou_10
Summary of Significant Accounting Policies - Reserves (FY) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Cleco Holdings | ||
Accounting Policies [Line Items] | ||
General liability and workers compensation reserves | $ 4.3 | $ 4.8 |
Summary of Significant Accou_11
Summary of Significant Accounting Policies - Restricted Cash and Cash Equivalents (FY) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2020 | Dec. 31, 2019 | Feb. 04, 2019 | Dec. 31, 2018 | |
Restricted Cash and Cash Equivalents [Abstract] | ||||
Current | $ 4,054 | $ 11,100 | $ 11,241 | |
Non-current | 9,899 | 15,203 | 18,670 | |
Total restricted cash and cash equivalents | 13,953 | 26,303 | 29,911 | |
Cleco Katrina/Rita's storm recovery bonds | ||||
Restricted Cash and Cash Equivalents [Abstract] | ||||
Current | 2,623 | 9,632 | 9,505 | |
Cleco Power's charitable contributions | ||||
Restricted Cash and Cash Equivalents [Abstract] | ||||
Current | 1,200 | 1,200 | 1,200 | |
Non-current | 741 | 2,094 | 2,753 | |
Cleco Power's rate credit escrow | ||||
Restricted Cash and Cash Equivalents [Abstract] | ||||
Current | 231 | 268 | 536 | |
Non-current | 0 | 505 | ||
Diversified Lands' mitigation escrow | ||||
Restricted Cash and Cash Equivalents [Abstract] | ||||
Non-current | 23 | 21 | 21 | |
Cleco Cajun's defense fund | ||||
Restricted Cash and Cash Equivalents [Abstract] | ||||
Non-current | 720 | 719 | 0 | |
Cleco Cajun's margin deposits | ||||
Restricted Cash and Cash Equivalents [Abstract] | ||||
Non-current | 100 | 100 | 0 | |
Cleco Power's future storm restoration costs | ||||
Restricted Cash and Cash Equivalents [Abstract] | ||||
Non-current | 8,315 | 12,269 | 15,391 | |
Katrina Rita Bond Principal Payments | ||||
Restricted Cash and Cash Equivalents [Abstract] | ||||
Collections | 20,600 | |||
Katrina Rita Bond Interest Payments | ||||
Restricted Cash and Cash Equivalents [Abstract] | ||||
Payments | 11,100 | 1,500 | ||
Katrina/Rita Storm Recovery Collections, Net of Administration Fees | ||||
Restricted Cash and Cash Equivalents [Abstract] | ||||
Administration fees received | 22,200 | |||
Payments | 300 | |||
Cleco Power | ||||
Restricted Cash and Cash Equivalents [Abstract] | ||||
Current | 4,054 | 11,100 | 11,241 | |
Non-current | 9,056 | 14,363 | 18,649 | |
Total restricted cash and cash equivalents | 13,110 | 25,463 | 29,890 | |
Cleco Power | Cleco Katrina/Rita's storm recovery bonds | ||||
Restricted Cash and Cash Equivalents [Abstract] | ||||
Current | 2,623 | 9,632 | 9,505 | |
Cleco Power | Cleco Power's charitable contributions | ||||
Restricted Cash and Cash Equivalents [Abstract] | ||||
Current | 1,200 | 1,200 | 1,200 | |
Non-current | 741 | 2,094 | 2,753 | |
Cleco Power | Cleco Power's rate credit escrow | ||||
Restricted Cash and Cash Equivalents [Abstract] | ||||
Current | 231 | 268 | 536 | |
Non-current | 0 | 505 | ||
Cleco Power | Cleco Power's future storm restoration costs | ||||
Restricted Cash and Cash Equivalents [Abstract] | ||||
Non-current | $ 8,315 | $ 12,269 | $ 15,391 | |
NRG South Central | ||||
Restricted Cash and Cash Equivalents [Abstract] | ||||
Restricted cash and cash equivalents | $ 707 |
Summary of Significant Accou_12
Summary of Significant Accounting Policies - Equity Investments (FY) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accounting Policies [Abstract] | |||
Impairments | $ 0 | $ 0 | $ 0 |
Summary of Significant Accou_13
Summary of Significant Accounting Policies - AFUDC (FY) (Details) - Cleco Power | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Public Utilities, General Disclosures [Line Items] | |||
Composite AFUDC rate, including borrowed and other funds, pre-tax | 10.71% | 9.58% | 11.07% |
Public utilities, rate net of tax | 8.37% | 7.08% | 6.81% |
Summary of Significant Accou_14
Summary of Significant Accounting Policies - Recent Authoritative Guidance Narrative (FY) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease assets | $ 28,447 | $ 28,791 | $ 0 |
Operating lease liability | 28,757 | ||
Accounting Standards Update 2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease assets | 16,100 | ||
Operating lease liability | 16,100 | ||
Cleco Power | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease assets | 28,633 | $ 0 | |
Cleco Power | Accounting Standards Update 2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease assets | 15,900 | ||
Operating lease liability | $ 15,900 |
Business Combinations - Narrati
Business Combinations - Narrative (FY) (Details) | Feb. 04, 2019USD ($)Investor_owned_utilityMunicipalityCooperativeMW | Jan. 31, 2019USD ($) | Mar. 31, 2020USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Business Acquisition [Line Items] | ||||||||
Repayments of long-term debt | $ 390,571,000 | $ 19,193,000 | $ 17,896,000 | |||||
Proceeds from long-term lines of credit | $ 238,000,000 | $ 108,000,000 | 108,000,000 | 0 | 179,000,000 | |||
Regulated operating revenue, electric, non-nuclear | 311,157,000 | 312,949,000 | 1,496,736,000 | 1,181,907,000 | 1,097,632,000 | |||
Decrease in other operating income | (44,908,000) | (39,397,000) | (182,832,000) | (82,332,000) | (79,580,000) | |||
Depreciation and amortization | $ 55,873,000 | 49,856,000 | 216,320,000 | 170,414,000 | 166,854,000 | |||
NRG South Central | ||||||||
Business Acquisition [Line Items] | ||||||||
Repayments of long-term debt | $ 400,000,000 | $ 400,000,000 | ||||||
Business combination, indemnification assets, amount as of acquisition date | 10,000,000 | |||||||
Business combination, liabilities arising from contingencies, amount recognized | 10,000,000 | 10,000,000 | ||||||
Purchase price consideration | 962,200,000 | |||||||
Cash paid | 1,000,000,000 | |||||||
Working capital adjustment | 37,800,000 | |||||||
Intangible liabilities | 38,300,000 | |||||||
Business combination, deferred revenue | 58,300,000 | |||||||
Business combination, finite-lived intangibles | 98,900,000 | |||||||
Net income | 32,986,000 | 154,898,000 | 170,224,000 | |||||
Power supply agreements | ||||||||
Business Acquisition [Line Items] | ||||||||
Business combination, finite-lived intangibles | $ 98,900,000 | |||||||
Cleco Cajun | ||||||||
Business Acquisition [Line Items] | ||||||||
Number of customers served | Investor_owned_utility | 1 | |||||||
Cleco Cajun | NRG South Central | ||||||||
Business Acquisition [Line Items] | ||||||||
Business combination, indemnification assets, amount as of acquisition date | 10,000,000 | |||||||
Business combination, liabilities arising from contingencies, amount recognized | 10,000,000 | |||||||
Cleco Power | ||||||||
Business Acquisition [Line Items] | ||||||||
Repayments of long-term debt | 20,571,000 | 19,193,000 | 17,896,000 | |||||
Public utilities, requested rate increase (decrease), amount | (4,000,000) | |||||||
Proceeds from long-term lines of credit | 33,000,000 | 0 | 106,000,000 | |||||
Regulated operating revenue, electric, non-nuclear | 1,130,928,000 | 1,191,587,000 | 1,108,389,000 | |||||
Decrease in other operating income | (72,833,000) | (82,330,000) | (77,522,000) | |||||
Depreciation and amortization | 172,471,000 | $ 162,069,000 | $ 158,415,000 | |||||
Cleco Holdings | ||||||||
Business Acquisition [Line Items] | ||||||||
Debt instrument, term | 3 years | |||||||
Debt to capital ratio | 0.65 | |||||||
Cleco Holdings | NRG South Central | ||||||||
Business Acquisition [Line Items] | ||||||||
Cash paid | $ 102,300,000 | |||||||
Cleco Group | NRG South Central | ||||||||
Business Acquisition [Line Items] | ||||||||
Business combination, equity interests issued and issuable | $ 384,900,000 | |||||||
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 | |||||||
Jennings, Louisiana | Cleco Cajun | ||||||||
Business Acquisition [Line Items] | ||||||||
Number of megawatts in station or facility (mw) | MW | 225 | |||||||
Jennings, Louisiana | Natural-gas-fired Peaking Facility | Cleco Cajun | ||||||||
Business Acquisition [Line Items] | ||||||||
Number of megawatts in station or facility (mw) | MW | 300 | |||||||
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 | 3 | |||||||
Jointly Owned Electricity Generation Plant | New Roads, Louisiana | Coal-fired Generating Station | Cleco Cajun | ||||||||
Business Acquisition [Line Items] | ||||||||
Number of megawatts in station or facility (mw) | MW | 588 | |||||||
Ownership interest percentage | 58.00% | |||||||
Bridge Loan | Cleco Holdings | ||||||||
Business Acquisition [Line Items] | ||||||||
Debt instrument, face amount | $ 300,000,000 | |||||||
Loans Payable | Cleco Holdings | ||||||||
Business Acquisition [Line Items] | ||||||||
Debt instrument, face amount | 100,000,000 | |||||||
Fair Value Adjustments | NRG South Central | ||||||||
Business Acquisition [Line Items] | ||||||||
Regulated operating revenue, electric, non-nuclear | $ 500,000 | |||||||
Decrease in other operating income | 100,000 | |||||||
Depreciation and amortization | $ 200,000 | |||||||
Acquisition-related Costs | NRG South Central | ||||||||
Business Acquisition [Line Items] | ||||||||
Net income | $ 3,900,000 | $ 4,700,000 | ||||||
Revolving Credit Facility | Cleco Holdings | ||||||||
Business Acquisition [Line Items] | ||||||||
Proceeds from credit facility | 75,000,000 | |||||||
Line of credit facility, maximum borrowing capacity | 175,000,000 | |||||||
Proceeds from long-term lines of credit | 75,000,000 | |||||||
Power supply agreements | ||||||||
Business Acquisition [Line Items] | ||||||||
Intangible liabilities | 14,200,000 | |||||||
Acquired finite-lived intangible liabilities, weighted average useful life | 7 years | |||||||
Power supply agreements | NRG South Central | ||||||||
Business Acquisition [Line Items] | ||||||||
Intangible liabilities | $ 14,200,000 | |||||||
LTSA | ||||||||
Business Acquisition [Line Items] | ||||||||
Acquired finite-lived intangible liabilities, weighted average useful life | 7 years | |||||||
LTSA | NRG South Central | ||||||||
Business Acquisition [Line Items] | ||||||||
Intangible liabilities | $ 24,100,000 | |||||||
Acquired finite-lived intangible liabilities, weighted average useful life | 7 years |
Business Combinations - Purchas
Business Combinations - Purchase Price Allocation (FY) (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 (FY) (Details) - NRG South Central $ in Thousands | 3 Months Ended |
Jun. 30, 2019USD ($) | |
Current assets | |
Customer and other accounts receivable | $ 1,408 |
Other current assets | 56 |
Non-current assets | |
Property, plant, and equipment, net | 13,297 |
Prepayments | (56) |
Intangible assets | (3,600) |
Other deferred charges | 1 |
Current liabilities | |
Accounts payable | 3,022 |
Energy risk management liabilities | (1) |
Other current liabilities | 327 |
Non-current liabilities | |
Accumulated deferred federal and state income taxes, net | 421 |
Deferred lease revenue | (3,600) |
Intangible liabilities | 6,400 |
Asset retirement obligations | 4,534 |
Operating lease liabilities | $ 3 |
Business Combinations - Pro For
Business Combinations - Pro Forma Information (FY) (Details) - NRG South Central - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Business Acquisition [Line Items] | |||
Operating revenue, net | $ 381,796 | $ 1,660,362 | $ 1,668,022 |
Net income | $ 32,986 | $ 154,898 | $ 170,224 |
Leases - Operating Lease (FY) (
Leases - Operating Lease (FY) (Details) | Dec. 31, 2019 | Dec. 31, 2019Municipality | Dec. 31, 2019Non_municipal_public_body | Dec. 31, 2019Railcar | Dec. 31, 2019Towboat | Jul. 09, 2019 |
Cleco Power | ||||||
Operating Leased Assets [Line Items] | ||||||
Operating lease, number of lessors | 2 | 1 | ||||
Cleco Power | Railroad Transportation Equipment | ||||||
Operating Leased Assets [Line Items] | ||||||
Lessee, operating lease, number of leased assets | 200 | |||||
Cleco Power | Maritime Equipment | ||||||
Operating Leased Assets [Line Items] | ||||||
Term of operating lease (in years) | 10 years | |||||
Lessee, operating lease, renewal term | 5 years | |||||
Lessee, operating lease, number of leased assets | Towboat | 3 | |||||
Cleco Cajun | Railroad Transportation Equipment | ||||||
Operating Leased Assets [Line Items] | ||||||
Term of operating lease (in years) | 12 months | |||||
Lessee, operating lease, renewal term | 1 month | |||||
Lessee, operating lease, number of leased assets | 135 | |||||
Municipality One | Cleco Power | Utility System | ||||||
Operating Leased Assets [Line Items] | ||||||
Term of operating lease (in years) | 10 years | |||||
Lessee, operating lease, renewal term | 10 years | |||||
Municipality Two | Cleco Power | Utility System | ||||||
Operating Leased Assets [Line Items] | ||||||
Term of operating lease (in years) | 10 years | |||||
Non-Municipal Public Body | Cleco Power | Utility System | ||||||
Operating Leased Assets [Line Items] | ||||||
Term of operating lease (in years) | 27 years | |||||
Operating Lease, Expiring March 31, 2021 | Cleco Power | Railroad Transportation Equipment | ||||||
Operating Leased Assets [Line Items] | ||||||
Lessee, operating lease, number of leased assets | 115 | |||||
Operating Lease, Expiring March 31, 2020 | Cleco Power | Railroad Transportation Equipment | ||||||
Operating Leased Assets [Line Items] | ||||||
Lessee, operating lease, number of leased assets | 85 |
Leases - Future Minimum Lease P
Leases - Future Minimum Lease Payments Due Under Long-Term Operating Leases (FY) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Years ending Dec. 31, | |||
2020 | $ 3,994 | ||
2021 | 3,443 | ||
2022 | 3,287 | ||
2023 | 3,249 | ||
2024 | 3,235 | ||
Thereafter | 18,618 | ||
Total minimum lease payments | 35,826 | ||
Less: amount representing interest | 7,069 | ||
Present value of net minimum operating lease payments | 28,757 | ||
Current liabilities | 2,978 | ||
Non-current liabilities | $ 25,119 | 25,779 | $ 0 |
CLECO POWER | |||
Years ending Dec. 31, | |||
2020 | 3,960 | ||
2021 | 3,409 | ||
2022 | 3,256 | ||
2023 | 3,220 | ||
2024 | 3,216 | ||
Thereafter | 18,618 | ||
Total minimum lease payments | 35,679 | ||
Less: amount representing interest | 7,086 | ||
Present value of net minimum operating lease payments | 28,593 | ||
Current liabilities | 2,935 | ||
Non-current liabilities | $ 25,658 |
Leases - Summary of Expected Op
Leases - Summary of Expected Operating Lease Payments as of Prior Year (FY) (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Years ending Dec. 31, | |
2019 | $ 4,150 |
2020 | 3,890 |
2021 | 2,789 |
2022 | 1,239 |
2023 | 1,214 |
Thereafter | 7,235 |
Total operating lease payments | 20,517 |
Cleco Holdings | |
Years ending Dec. 31, | |
2019 | 120 |
2020 | 0 |
2021 | 0 |
2022 | 0 |
2023 | 0 |
Thereafter | 0 |
Total operating lease payments | 120 |
Cleco Power | |
Years ending Dec. 31, | |
2019 | 4,030 |
2020 | 3,890 |
2021 | 2,789 |
2022 | 1,239 |
2023 | 1,214 |
Thereafter | 7,235 |
Total operating lease payments | $ 20,397 |
Leases - Finance Lease (FY) (De
Leases - Finance Lease (FY) (Details) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019USD ($)Event | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Apr. 30, 2018Barge | |
Finance lease, number of cancellation events triggering early termination | Event | 1 | |||
Finance lease, number of cancellation events | Event | 4 | |||
Cleco Power | ||||
Finance lease, principal interest | $ | $ 2.2 | $ 2 | $ 2.5 | |
Sublease income | $ | $ 1.7 | $ 0.5 | $ 0.3 | |
Maritime Equipment | Cleco Power | ||||
Finance lease, number of leased assets | Barge | 42 |
Leases - Analysis of Leased Pro
Leases - Analysis of Leased Property Under Finance Leases (FY) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Lessor, Lease, Description [Line Items] | ||
Net finance lease | $ 14,840 | |
CLECO POWER | ||
Lessor, Lease, Description [Line Items] | ||
Barges | 16,800 | $ 16,800 |
Accumulated amortization | (1,960) | (840) |
Net finance lease | $ 14,840 | $ 15,960 |
Leases - Future Minimum Lease_2
Leases - Future Minimum Lease Payments Due Under Finance Lease (FY) (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Years ending Dec. 31, | |
2020 | $ 617 |
2021 | 682 |
2022 | 755 |
2023 | 836 |
2024 | 925 |
Thereafter | 12,046 |
Current liabilities | 617 |
Non-current liabilities | 15,244 |
CLECO POWER | |
Years ending Dec. 31, | |
2020 | 2,203 |
2021 | 2,203 |
2022 | 2,203 |
2023 | 2,203 |
2024 | 2,203 |
Thereafter | 17,675 |
Total minimum lease payments | 28,690 |
Less: amount representing interest | 12,829 |
Present value of net minimum finance lease payments | 15,861 |
Current liabilities | 617 |
Non-current liabilities | $ 15,244 |
Leases - Future Minimum Lease_3
Leases - Future Minimum Lease Payments Due Under Finance Lease as of Prior Year (FY) (Details) - CLECO POWER $ in Thousands | Dec. 31, 2018USD ($) |
Years ending Dec. 31, | |
2019 | $ 2,611 |
2020 | 2,611 |
2021 | 2,611 |
2022 | 2,611 |
2023 | 2,611 |
Thereafter | 23,655 |
Total minimum lease payments | 36,710 |
Less: executory costs | 5,817 |
Net minimum lease payments | 30,893 |
Less: amount representing interest | 14,475 |
Present value of net minimum lease payments | 16,418 |
Current liabilities | 557 |
Non-current liabilities | $ 15,861 |
Leases - Total Lease Costs (FY)
Leases - Total Lease Costs (FY) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Finance lease cost | |
Amortization of ROU assets | $ 1,120 |
Interest on lease liabilities | 1,646 |
Operating lease cost | 4,528 |
Variable lease cost | 515 |
Total lease cost | 7,809 |
CLECO POWER | |
Finance lease cost | |
Amortization of ROU assets | 1,120 |
Interest on lease liabilities | 1,646 |
Operating lease cost | 4,303 |
Variable lease cost | 515 |
Total lease cost | $ 7,584 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet and Cash Flow Information and Other Supplemental Information (FY) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Mar. 31, 2020 | Dec. 31, 2018 | |
ROU assets | |||
Operating | $ 28,791 | $ 28,447 | $ 0 |
Finance | 14,840 | ||
Total ROU assets | 43,631 | ||
Current lease liabilities | |||
Operating | 2,978 | ||
Finance lease, current liabilities | 617 | ||
Non-current lease liabilities | |||
Operating | 25,779 | $ 25,119 | 0 |
Finance | 15,244 | ||
Total lease liabilities | 44,618 | ||
Cash paid for amounts included in the measurement of lease liabilities | |||
Operating cash flows from operating leases | 4,452 | ||
Operating cash flows from finance leases | 1,646 | ||
Financing cash flows from finance leases | 557 | ||
ROU assets obtained in exchange for new lease liabilities | $ 15,881 | ||
Operating leases | |||
Weighted-average remaining lease term | 10 years 9 months 18 days | ||
Weighted-average discount rate | 4.31% | ||
Finance leases | |||
Weighted-average remaining lease term | 13 years 3 months 18 days | ||
Weighted-average discount rate | 10.18% | ||
Cleco Power | |||
ROU assets | |||
Operating | $ 28,633 | 0 | |
Finance | 14,840 | ||
Total ROU assets | 43,473 | ||
Current lease liabilities | |||
Operating | 2,935 | ||
Finance lease, current liabilities | 617 | ||
Non-current lease liabilities | |||
Operating | 25,658 | $ 0 | |
Finance | 15,244 | ||
Total lease liabilities | 44,454 | ||
Cash paid for amounts included in the measurement of lease liabilities | |||
Operating cash flows from operating leases | 4,203 | ||
Operating cash flows from finance leases | 1,646 | ||
Financing cash flows from finance leases | 557 | ||
ROU assets obtained in exchange for new lease liabilities | $ 15,749 | ||
Operating leases | |||
Weighted-average remaining lease term | 10 years 9 months 18 days | ||
Weighted-average discount rate | 4.31% | ||
Finance leases | |||
Weighted-average remaining lease term | 13 years 3 months 18 days | ||
Weighted-average discount rate | 10.18% |
Leases - Lessor Agreements (FY)
Leases - Lessor Agreements (FY) (Details) | Dec. 31, 2019Contract |
Leases [Abstract] | |
Number of contracts | 2 |
Lease term | 1 year |
Leases - Cottonwood Sale Leaseb
Leases - Cottonwood Sale Leaseback Agreement (FY) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Fixed lease payments per year | $ 40 |
Sale leaseback transaction, depreciation expense | $ 22.7 |
Leases - Lease Income Under Cot
Leases - Lease Income Under Cottonwood Sale Leaseback (FY) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Fixed payments | $ 36,667 |
Variable payments | 20,415 |
Amortization of deferred lease liability | 8,438 |
Total lease income | $ 65,520 |
Leases - Remaining Minimum Leas
Leases - Remaining Minimum Lease Payments To Be Received (FY) (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Years ending Dec. 31, | |
2020 | $ 40,000 |
2021 | 40,000 |
2022 | 40,000 |
2023 | 40,000 |
2024 | 40,000 |
Thereafter | 16,667 |
Total payments | $ 216,667 |
Leases - Property Associated wi
Leases - Property Associated with Sale Leaseback (FY) (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Leases [Abstract] | |
Property, plant, and equipment | $ 540,409 |
Accumulated depreciation | (22,741) |
Net property, plant, and equipment | $ 517,668 |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (FY) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | ||
Payment terms | 20 days | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Unsatisfied performance obligations | $ 30.8 | $ 80.7 |
Cleco Power | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Unsatisfied performance obligations | $ 30.8 |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Revenue (FY) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from contracts with customers | $ 328,289 | $ 330,690 | $ 1,561,424 | $ 1,189,178 | ||||||||
Total revenue from contracts with customers | ||||||||||||
Other | 19,283 | 13,496 | 78,181 | 41,866 | ||||||||
Total revenue unrelated to contracts with customers | 19,283 | 13,496 | 78,181 | 41,866 | ||||||||
Operating revenue, net | 347,572 | $ 409,575 | $ 487,971 | $ 397,873 | 344,186 | $ 296,767 | $ 358,256 | $ 299,261 | $ 276,760 | 1,639,605 | 1,231,044 | $ 1,175,646 |
Electric customer credits | 8,493 | 8,160 | 39,963 | 33,195 | 1,566 | |||||||
Sales-type lease, lease income | 65,520 | |||||||||||
Recognition of deferred lease income | 2,301 | 1,440 | 8,439 | 0 | 0 | |||||||
Total retail revenue | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from contracts with customers | 172,455 | 191,240 | 855,448 | 896,927 | ||||||||
Residential | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from contracts with customers | 81,571 | 87,148 | 415,242 | 435,610 | ||||||||
Commercial | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from contracts with customers | 61,110 | 65,380 | 289,197 | 288,791 | ||||||||
Industrial | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from contracts with customers | 32,210 | 37,870 | 149,711 | 167,001 | ||||||||
Other retail | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from contracts with customers | 3,461 | 3,681 | 15,046 | 15,582 | ||||||||
Surcharge | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from contracts with customers | 2,443 | 5,321 | 22,132 | 23,138 | ||||||||
Electric customer credits | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from contracts with customers | (8,340) | (8,160) | (35,880) | (33,195) | ||||||||
Wholesale, net | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from contracts with customers | 128,956 | 111,317 | 591,932 | 209,918 | ||||||||
Transmission, net | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from contracts with customers | 23,182 | 21,306 | 94,718 | 54,531 | ||||||||
Other | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from contracts with customers | 3,696 | 6,827 | 19,326 | 27,802 | ||||||||
Affiliate | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 | ||||||||
Cleco Power | ||||||||||||
Total revenue from contracts with customers | ||||||||||||
Recognition of deferred lease income | 1,400 | |||||||||||
Cleco Power | Other | ||||||||||||
Total revenue from contracts with customers | ||||||||||||
Other miscellaneous fee revenue | 16,100 | 18,200 | ||||||||||
Cleco Power | Lost contribution to fixed cost | ||||||||||||
Total revenue from contracts with customers | ||||||||||||
Other | (2,600) | 200 | 2,600 | |||||||||
Cleco Power | SSR | Other | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from contracts with customers | 2,400 | 3,200 | 9,600 | |||||||||
CLECO CAJUN | ||||||||||||
Total revenue from contracts with customers | ||||||||||||
Sales-type lease, lease income | 9,800 | |||||||||||
Recognition of deferred lease income | 2,300 | 8,400 | ||||||||||
Operating Segments | Cleco Power | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from contracts with customers | 231,554 | 266,516 | 1,155,749 | 1,199,730 | ||||||||
Total revenue from contracts with customers | ||||||||||||
Other | 1,406 | 2,229 | 12,621 | 41,866 | ||||||||
Total revenue unrelated to contracts with customers | 1,406 | 2,229 | 12,621 | 41,866 | ||||||||
Operating revenue, net | 232,960 | 268,745 | 1,168,370 | 1,241,596 | 1,185,196 | |||||||
Electric customer credits | 8,340 | 8,160 | 38,516 | 33,195 | 1,566 | |||||||
Operating Segments | Cleco Power | Total retail revenue | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from contracts with customers | 172,455 | 191,240 | 855,448 | 896,927 | ||||||||
Operating Segments | Cleco Power | Residential | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from contracts with customers | 81,571 | 87,148 | 415,242 | 435,610 | ||||||||
Operating Segments | Cleco Power | Commercial | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from contracts with customers | 61,110 | 65,380 | 289,197 | 288,791 | ||||||||
Operating Segments | Cleco Power | Industrial | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from contracts with customers | 32,210 | 37,870 | 149,711 | 167,001 | ||||||||
Operating Segments | Cleco Power | Other retail | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from contracts with customers | 3,461 | 3,681 | 15,046 | 15,582 | ||||||||
Operating Segments | Cleco Power | Surcharge | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from contracts with customers | 2,443 | 5,321 | 22,132 | 23,138 | ||||||||
Operating Segments | Cleco Power | Electric customer credits | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from contracts with customers | (8,340) | (8,160) | (35,880) | (33,195) | ||||||||
Operating Segments | Cleco Power | Wholesale, net | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from contracts with customers | 42,229 | 55,546 | 226,978 | 219,598 | ||||||||
Operating Segments | Cleco Power | Transmission, net | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from contracts with customers | 12,069 | 12,579 | 50,874 | 54,531 | ||||||||
Total revenue from contracts with customers | ||||||||||||
Electric customer credits | 2,600 | |||||||||||
Operating Segments | Cleco Power | Other | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from contracts with customers | 3,695 | 6,851 | 19,324 | 27,800 | ||||||||
Total revenue from contracts with customers | ||||||||||||
Other miscellaneous fee revenue | 3,700 | 4,400 | ||||||||||
Operating Segments | Cleco Power | Affiliate | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from contracts with customers | 1,106 | 300 | 3,125 | 874 | ||||||||
Operating Segments | CLECO CAJUN | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from contracts with customers | 102,239 | 66,892 | 426,058 | |||||||||
Total revenue from contracts with customers | ||||||||||||
Other | 17,877 | 11,267 | 65,560 | |||||||||
Total revenue unrelated to contracts with customers | 17,877 | 11,267 | 65,560 | |||||||||
Operating revenue, net | 120,116 | 78,159 | 491,618 | |||||||||
Electric customer credits | 153 | 0 | ||||||||||
Sales-type lease, lease income | 15,600 | 57,100 | ||||||||||
Operating Segments | CLECO CAJUN | Total retail revenue | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from contracts with customers | 0 | 0 | 0 | |||||||||
Operating Segments | CLECO CAJUN | Residential | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from contracts with customers | 0 | 0 | 0 | |||||||||
Operating Segments | CLECO CAJUN | Commercial | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from contracts with customers | 0 | 0 | 0 | |||||||||
Operating Segments | CLECO CAJUN | Industrial | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from contracts with customers | 0 | 0 | 0 | |||||||||
Operating Segments | CLECO CAJUN | Other retail | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from contracts with customers | 0 | 0 | 0 | |||||||||
Operating Segments | CLECO CAJUN | Surcharge | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from contracts with customers | 0 | 0 | 0 | |||||||||
Operating Segments | CLECO CAJUN | Electric customer credits | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from contracts with customers | 0 | 0 | 0 | |||||||||
Operating Segments | CLECO CAJUN | Wholesale, net | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from contracts with customers | 89,147 | 58,191 | 374,635 | |||||||||
Total revenue from contracts with customers | ||||||||||||
Electric customer credits | 800 | |||||||||||
Operating Segments | CLECO CAJUN | Transmission, net | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from contracts with customers | 12,931 | 8,727 | 51,315 | |||||||||
Total revenue from contracts with customers | ||||||||||||
Electric customer credits | 200 | 700 | ||||||||||
Operating Segments | CLECO CAJUN | Other | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from contracts with customers | 0 | (26) | 0 | |||||||||
Operating Segments | CLECO CAJUN | Affiliate | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from contracts with customers | 161 | 0 | 108 | |||||||||
OTHER | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from contracts with customers | 26,859 | 24,117 | 99,389 | 64,913 | ||||||||
Total revenue from contracts with customers | ||||||||||||
Other | 0 | 0 | 0 | 0 | ||||||||
Total revenue unrelated to contracts with customers | 0 | 0 | 0 | 0 | ||||||||
Operating revenue, net | 26,859 | 24,117 | 99,389 | 64,913 | 48,469 | |||||||
Electric customer credits | 0 | 0 | 0 | 0 | 0 | |||||||
OTHER | Total retail revenue | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 | ||||||||
OTHER | Residential | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 | ||||||||
OTHER | Commercial | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 | ||||||||
OTHER | Industrial | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 | ||||||||
OTHER | Other retail | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 | ||||||||
OTHER | Surcharge | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 | ||||||||
OTHER | Electric customer credits | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 | ||||||||
OTHER | Wholesale, net | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from contracts with customers | (2,420) | (2,420) | (9,680) | (9,680) | ||||||||
OTHER | Transmission, net | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 | ||||||||
OTHER | Other | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from contracts with customers | 1 | 2 | 2 | 2 | ||||||||
OTHER | Affiliate | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from contracts with customers | 29,278 | 26,535 | 109,067 | 74,591 | ||||||||
ELIMINATIONS | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from contracts with customers | (32,363) | (26,835) | (119,772) | (75,465) | ||||||||
Total revenue from contracts with customers | ||||||||||||
Other | 0 | 0 | 0 | 0 | ||||||||
Total revenue unrelated to contracts with customers | 0 | 0 | 0 | 0 | ||||||||
Operating revenue, net | (32,363) | (26,835) | (119,772) | (75,465) | (58,019) | |||||||
Electric customer credits | 0 | 0 | 0 | 0 | $ 0 | |||||||
ELIMINATIONS | Total retail revenue | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 | ||||||||
ELIMINATIONS | Residential | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 | ||||||||
ELIMINATIONS | Commercial | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 | ||||||||
ELIMINATIONS | Industrial | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 | ||||||||
ELIMINATIONS | Other retail | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 | ||||||||
ELIMINATIONS | Surcharge | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 | ||||||||
ELIMINATIONS | Electric customer credits | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 | ||||||||
ELIMINATIONS | Wholesale, net | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from contracts with customers | 0 | 0 | (1) | 0 | ||||||||
ELIMINATIONS | Transmission, net | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from contracts with customers | (1,818) | 0 | (7,471) | 0 | ||||||||
ELIMINATIONS | Other | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 | ||||||||
ELIMINATIONS | Affiliate | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from contracts with customers | (30,545) | (26,835) | (112,300) | (75,465) | ||||||||
Price Risk Derivative | Cleco Power | ||||||||||||
Total revenue from contracts with customers | ||||||||||||
Other | $ 1,400 | $ 4,800 | ||||||||||
Price Risk Derivative | Cleco Power | Other | ||||||||||||
Total revenue from contracts with customers | ||||||||||||
Other | $ 12,400 | $ 39,300 |
Revenue Recognition - Remaining
Revenue Recognition - Remaining Performance Obligations (FY) (Details) | Dec. 31, 2019 |
Minimum | |
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 | 15 years |
Regulatory Assets and Liabili_6
Regulatory Assets and Liabilities - Summary of Regulatory Assets and Liabilities (FY) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Mar. 31, 2020 | Dec. 31, 2018 | Dec. 31, 2017 | |
Regulatory Assets and Liabilities [Line Items] | ||||
Total regulatory assets, net | $ 311,525 | $ 300,087 | $ 307,374 | |
Postretirement costs | ||||
Regulatory Assets and Liabilities [Line Items] | ||||
Regulatory assets | 17,399 | 16,902 | 19,387 | |
Financing costs | ||||
Regulatory Assets and Liabilities [Line Items] | ||||
Regulatory assets | 7,935 | 7,849 | 8,279 | |
Fair value of long-term debt | ||||
Regulatory Assets and Liabilities [Line Items] | ||||
Regulatory assets | 127,977 | 125,105 | 138,701 | |
Debt issuance costs | ||||
Regulatory Assets and Liabilities [Line Items] | ||||
Regulatory assets | 5,665 | 5,504 | 6,252 | |
TCJA | ||||
Regulatory Assets and Liabilities [Line Items] | ||||
Regulatory liabilities | (375,000) | (375,000) | $ (348,600) | |
Cleco Power | ||||
Regulatory Assets and Liabilities [Line Items] | ||||
Regulatory liabilities | (4,700) | |||
Regulatory assets | 1,000 | |||
Total regulatory assets, net | 152,549 | 144,727 | 134,755 | |
Cleco Power | Mining costs | ||||
Regulatory Assets and Liabilities [Line Items] | ||||
Regulatory assets | 0 | 1,274 | ||
Cleco Power | Interest costs | ||||
Regulatory Assets and Liabilities [Line Items] | ||||
Regulatory assets | 3,958 | 3,896 | 4,208 | |
Cleco Power | AROs | ||||
Regulatory Assets and Liabilities [Line Items] | ||||
Regulatory assets | 3,668 | 3,815 | 3,099 | |
Cleco Power | Postretirement costs | ||||
Regulatory Assets and Liabilities [Line Items] | ||||
Regulatory assets | 151,543 | 147,889 | 140,245 | |
Cleco Power | Tree trimming costs | ||||
Regulatory Assets and Liabilities [Line Items] | ||||
Regulatory assets | 11,341 | 11,384 | 9,069 | |
Cleco Power | Training costs | ||||
Regulatory Assets and Liabilities [Line Items] | ||||
Regulatory assets | $ 6,241 | 6,202 | 6,396 | |
REMAINING RECOVERY PERIOD (YRS.) | 40 years | |||
Cleco Power | Surcredits, net | ||||
Regulatory Assets and Liabilities [Line Items] | ||||
Regulatory assets | $ 145 | 72 | 289 | |
Cleco Power | AMI deferred revenue requirement | ||||
Regulatory Assets and Liabilities [Line Items] | ||||
Regulatory assets | $ 3,136 | 3,000 | 3,681 | |
REMAINING RECOVERY PERIOD (YRS.) | 6 years | |||
Cleco Power | Emergency declarations | ||||
Regulatory Assets and Liabilities [Line Items] | ||||
Regulatory assets | $ 1,349 | 948 | 2,980 | |
Cleco Power | Production operations and maintenance expenses | ||||
Regulatory Assets and Liabilities [Line Items] | ||||
Regulatory assets | 7,985 | 6,756 | 12,245 | |
Cleco Power | AFUDC equity gross-up | ||||
Regulatory Assets and Liabilities [Line Items] | ||||
Regulatory assets | 72,766 | 71,992 | 71,952 | |
Cleco Power | Acquisition costs or Transaction costs | ||||
Regulatory Assets and Liabilities [Line Items] | ||||
Regulatory assets | $ 2,124 | 2,098 | 2,230 | |
REMAINING RECOVERY PERIOD (YRS.) | 20 years | |||
Cleco Power | Acquisition costs or Transaction costs | Natural Gas Processing Plant | ||||
Regulatory Assets and Liabilities [Line Items] | ||||
Regulatory assets | $ 906 | 899 | 938 | |
REMAINING RECOVERY PERIOD (YRS.) | 29 years 6 months | |||
Cleco Power | Financing costs | ||||
Regulatory Assets and Liabilities [Line Items] | ||||
Regulatory assets | $ 7,554 | 7,461 | 7,923 | |
Cleco Power | Corporate franchise tax, net | ||||
Regulatory Assets and Liabilities [Line Items] | ||||
Regulatory liabilities | (1,145) | |||
Regulatory assets | 1,416 | |||
Cleco Power | Non-service cost of postretirement benefits | ||||
Regulatory Assets and Liabilities [Line Items] | ||||
Regulatory assets | 6,739 | 7,551 | 4,629 | |
Cleco Power | Energy efficiency | ||||
Regulatory Assets and Liabilities [Line Items] | ||||
Regulatory assets | 2,820 | 2,820 | 2,585 | |
Cleco Power | Accumulated deferred fuel | ||||
Regulatory Assets and Liabilities [Line Items] | ||||
Regulatory assets | 22,910 | 16,353 | 20,112 | |
Cleco Power | Other, net | ||||
Regulatory Assets and Liabilities [Line Items] | ||||
Regulatory liabilities | (4,543) | (4,979) | ||
Cleco Power | Total regulatory (liabilities) assets - deferred taxes, net | ||||
Regulatory Assets and Liabilities [Line Items] | ||||
Regulatory liabilities | $ (146,948) | $ (146,225) | $ (155,537) |
Regulatory Assets and Liabili_7
Regulatory Assets and Liabilities - Narrative (FY) (Details) $ in Thousands | Apr. 13, 2013Instrument | Jan. 31, 2019USD ($) | Dec. 31, 2018USD ($) | May 31, 2013USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2011USD ($)treasury_rate_lock | Mar. 31, 2020USD ($) | Dec. 31, 2017USD ($) | Oct. 31, 2016USD ($) |
Treasury Lock | ||||||||||
Regulatory Assets and Liabilities [Line Items] | ||||||||||
Number of instruments settled | Instrument | 2 | |||||||||
Postretirement costs | ||||||||||
Regulatory Assets and Liabilities [Line Items] | ||||||||||
Regulatory assets | $ 19,387 | $ 19,387 | $ 17,399 | $ 16,902 | ||||||
Financing costs | ||||||||||
Regulatory Assets and Liabilities [Line Items] | ||||||||||
Regulatory assets | 8,279 | 8,279 | 7,935 | 7,849 | ||||||
TCJA | ||||||||||
Regulatory Assets and Liabilities [Line Items] | ||||||||||
Regulatory liability | 375,000 | 375,000 | 375,000 | $ 348,600 | ||||||
Net retail portion of franchise taxes paid | 26,400 | |||||||||
Cleco Power | ||||||||||
Regulatory Assets and Liabilities [Line Items] | ||||||||||
Regulatory liability | 4,700 | |||||||||
Regulatory assets | 1,000 | |||||||||
Annual reduction to retail customer rates | $ 4,000 | |||||||||
Cleco Power | Treasury Lock | ||||||||||
Regulatory Assets and Liabilities [Line Items] | ||||||||||
Number of treasury locks | treasury_rate_lock | 2 | |||||||||
Loss on settlements | $ 26,800 | |||||||||
Cleco Power | Interest Rate Swap | ||||||||||
Regulatory Assets and Liabilities [Line Items] | ||||||||||
Loss on settlements | $ 3,300 | |||||||||
Cleco Power | Mining costs | ||||||||||
Regulatory Assets and Liabilities [Line Items] | ||||||||||
Amortization period | 11 years 6 months | |||||||||
Regulatory assets | 1,274 | 1,274 | $ 0 | |||||||
Cleco Power | Postretirement costs | ||||||||||
Regulatory Assets and Liabilities [Line Items] | ||||||||||
Amortization period | 8 years | |||||||||
Regulatory assets | 140,245 | 140,245 | $ 151,543 | 147,889 | ||||||
Cleco Power | Tree trimming costs | ||||||||||
Regulatory Assets and Liabilities [Line Items] | ||||||||||
Maximum amount of costs approved to defer | $ 10,900 | |||||||||
Regulatory assets | 9,069 | 9,069 | $ 11,341 | 11,384 | ||||||
Cleco Power | Training costs | ||||||||||
Regulatory Assets and Liabilities [Line Items] | ||||||||||
Amortization period | 50 years | |||||||||
Regulatory assets | 6,396 | 6,396 | $ 6,241 | 6,202 | ||||||
Cleco Power | Surcredits, net | ||||||||||
Regulatory Assets and Liabilities [Line Items] | ||||||||||
Amortization period | 4 years | |||||||||
Regulatory assets | 289 | 289 | $ 145 | 72 | ||||||
Cleco Power | AMI deferred revenue requirement | ||||||||||
Regulatory Assets and Liabilities [Line Items] | ||||||||||
Regulatory assets | 3,681 | 3,681 | 3,136 | 3,000 | ||||||
Cleco Power | Emergency declarations | ||||||||||
Regulatory Assets and Liabilities [Line Items] | ||||||||||
Regulatory assets | 2,980 | 2,980 | $ 1,349 | 948 | ||||||
Cleco Power | Production O&M Expenses | ||||||||||
Regulatory Assets and Liabilities [Line Items] | ||||||||||
Amortization period | 3 years | |||||||||
Retail jurisdictional portion | $ 45,000 | |||||||||
Increase in other regulatory asset | 8,000 | |||||||||
Cleco Power | Production O&M Expenses | Maximum | ||||||||||
Regulatory Assets and Liabilities [Line Items] | ||||||||||
Regulatory assets | $ 23,000 | |||||||||
Cleco Power | Acquisition costs or Transaction costs | ||||||||||
Regulatory Assets and Liabilities [Line Items] | ||||||||||
Amortization period | 30 years | |||||||||
Regulatory assets | 2,230 | 2,230 | $ 2,124 | 2,098 | ||||||
Cleco Power | Acquisition costs or Transaction costs | Natural Gas Processing Plant | ||||||||||
Regulatory Assets and Liabilities [Line Items] | ||||||||||
Amortization period | 35 years | |||||||||
Regulatory assets | 938 | 938 | $ 906 | 899 | ||||||
Cleco Power | Financing costs | ||||||||||
Regulatory Assets and Liabilities [Line Items] | ||||||||||
Regulatory assets | 7,923 | 7,923 | 7,554 | 7,461 | ||||||
Cleco Power | Financing costs | Treasury Lock | ||||||||||
Regulatory Assets and Liabilities [Line Items] | ||||||||||
Regulatory assets | $ 7,400 | |||||||||
Cleco Power | Financing costs | Interest Rate Swap | ||||||||||
Regulatory Assets and Liabilities [Line Items] | ||||||||||
Regulatory assets | $ 2,900 | |||||||||
Cleco Power | Corporate franchise tax, net | ||||||||||
Regulatory Assets and Liabilities [Line Items] | ||||||||||
Regulatory liability | $ 1,145 | |||||||||
Amortization period | 12 months | |||||||||
Regulatory assets | 1,416 | 1,416 | ||||||||
Cleco Power | Energy efficiency | ||||||||||
Regulatory Assets and Liabilities [Line Items] | ||||||||||
Amortization period | 4 years | |||||||||
Regulatory assets | 2,585 | 2,585 | $ 2,820 | 2,820 | ||||||
Cleco Power | Accumulated deferred fuel | ||||||||||
Regulatory Assets and Liabilities [Line Items] | ||||||||||
Regulatory assets | $ 20,112 | $ 20,112 | $ 22,910 | $ 16,353 | ||||||
Percentage of total fuel cost regulated by the LPSC (in hundredths) | 76.00% | |||||||||
Cleco Cajun | LPSC | ||||||||||
Regulatory Assets and Liabilities [Line Items] | ||||||||||
Regulatory liability | $ 800 | |||||||||
Annual reduction to retail customer rates | $ 4,000 |
Jointly Owned Generation Unit_3
Jointly Owned Generation Units (FY) (Details) $ in Thousands | Dec. 31, 2019USD ($)MW |
Jointly Owned Utility Plant Interests [Line Items] | |
Utility plant in service | $ 328,478 |
Accumulated depreciation | 34,102 |
Construction work in progress | 6,303 |
RODEMACHER UNIT 2 | |
Jointly Owned Utility Plant Interests [Line Items] | |
Utility plant in service | 72,840 |
Accumulated depreciation | 7,690 |
Construction work in progress | $ 539 |
Ownership interest percentage | 30.00% |
Nameplate capacity (MW) | MW | 523 |
Ownership interest (MW) | MW | 157 |
DOLET HILLS | |
Jointly Owned Utility Plant Interests [Line Items] | |
Utility plant in service | $ 179,909 |
Accumulated depreciation | 22,159 |
Construction work in progress | $ 5,435 |
Ownership interest percentage | 50.00% |
Nameplate capacity (MW) | MW | 650 |
Ownership interest (MW) | MW | 325 |
BAYOU COVE | |
Jointly Owned Utility Plant Interests [Line Items] | |
Utility plant in service | $ 42,438 |
Accumulated depreciation | 2,090 |
Construction work in progress | $ 0 |
Ownership interest percentage | 75.00% |
Nameplate 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 | $ 33,291 |
Accumulated depreciation | 2,163 |
Construction work in progress | $ 329 |
Ownership interest percentage | 58.00% |
Nameplate capacity (MW) | MW | 588 |
Ownership interest (MW) | MW | 341 |
Cleco Power | |
Jointly Owned Utility Plant Interests [Line Items] | |
Utility plant in service | $ 544,426 |
Accumulated depreciation | 321,525 |
Construction work in progress | 5,974 |
Cleco Power | RODEMACHER UNIT 2 | |
Jointly Owned Utility Plant Interests [Line Items] | |
Utility plant in service | 147,020 |
Accumulated depreciation | 81,870 |
Construction work in progress | $ 539 |
Ownership interest percentage | 30.00% |
Nameplate capacity (MW) | MW | 523 |
Ownership interest (MW) | MW | 157 |
Cleco Power | DOLET HILLS | |
Jointly Owned Utility Plant Interests [Line Items] | |
Utility plant in service | $ 397,406 |
Accumulated depreciation | 239,655 |
Construction work in progress | $ 5,435 |
Ownership interest percentage | 50.00% |
Nameplate capacity (MW) | MW | 650 |
Ownership interest (MW) | MW | 325 |
Fair Value Accounting - Carryin
Fair Value Accounting - Carrying Value and Estimated Fair Value (FY) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Deferred debt issuance costs not included in the carrying value of long-term debt | $ 13,200 | $ 13,700 | $ 10,300 |
CARRYING VALUE | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt | 3,174,821 | 3,188,664 | 2,889,631 |
FAIR VALUE | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt | 3,295,214 | 3,371,915 | 2,859,924 |
Cleco Power | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Deferred debt issuance costs not included in the carrying value of long-term debt | 7,200 | 7,400 | 8,300 |
Cleco Power | CARRYING VALUE | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt | 1,369,716 | 1,380,688 | 1,400,930 |
Cleco Power | FAIR VALUE | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt | $ 1,696,053 | $ 1,601,865 | $ 1,517,152 |
Fair Value Accounting - Fair Va
Fair Value Accounting - Fair Value of Financial Assets and Liabilities Measured On A Recurring Basis (FY) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Asset Description | |||
Institutional money market funds | $ 129,643 | $ 133,722 | |
Total assets | 136,666 | 157,077 | |
Liability Description | |||
Total liabilities | 6,417 | 468 | |
QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) | |||
Asset Description | |||
Institutional money market funds | 0 | 0 | |
Total assets | 0 | 0 | |
Liability Description | |||
Total liabilities | 0 | 0 | |
SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) | |||
Asset Description | |||
Institutional money market funds | 129,643 | 133,722 | |
Total assets | 129,844 | 133,722 | |
Liability Description | |||
Total liabilities | 5,373 | 0 | |
SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | |||
Asset Description | |||
Institutional money market funds | 0 | 0 | |
Total assets | 6,822 | 23,355 | |
Liability Description | |||
Total liabilities | 1,044 | 468 | |
Measured On A Recurring Basis | |||
Asset Description | |||
Institutional money market funds | $ 352,549 | 129,643 | |
Total assets | 354,541 | 136,666 | |
Liability Description | |||
Total liabilities | 13,177 | 6,417 | |
Measured On A Recurring Basis | QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) | |||
Asset Description | |||
Institutional money market funds | 0 | 0 | |
Total assets | 0 | 0 | |
Liability Description | |||
Total liabilities | 0 | 0 | |
Measured On A Recurring Basis | SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) | |||
Asset Description | |||
Institutional money market funds | 352,549 | 129,643 | |
Total assets | 352,762 | 129,844 | |
Liability Description | |||
Total liabilities | 12,494 | 5,373 | |
Measured On A Recurring Basis | SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | |||
Asset Description | |||
Institutional money market funds | 0 | 0 | |
Assets | 1,779 | 6,822 | 23,355 |
Total assets | 1,779 | 6,822 | |
Liability Description | |||
Liabilities | 683 | 1,044 | 468 |
Total liabilities | 683 | 1,044 | |
Cleco Power | |||
Asset Description | |||
Institutional money market funds | 74,903 | 55,900 | |
Total assets | 81,214 | 79,255 | |
Liability Description | |||
Total liabilities | 586 | 468 | |
Cleco Power | QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) | |||
Asset Description | |||
Institutional money market funds | 0 | 0 | |
Total assets | 0 | 0 | |
Liability Description | |||
Total liabilities | 0 | 0 | |
Cleco Power | SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) | |||
Asset Description | |||
Institutional money market funds | 74,903 | 55,900 | |
Total assets | 74,903 | 55,900 | |
Liability Description | |||
Total liabilities | 0 | 0 | |
Cleco Power | SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | |||
Asset Description | |||
Institutional money market funds | 0 | 0 | |
Total assets | 6,311 | 23,355 | |
Liability Description | |||
Total liabilities | 586 | 468 | |
Cleco Power | Measured On A Recurring Basis | |||
Asset Description | |||
Institutional money market funds | 198,006 | 74,903 | |
Assets | 1,673 | 6,311 | |
Total assets | 199,679 | 81,214 | |
Liability Description | |||
Liabilities | 524 | 586 | |
Total liabilities | 524 | 586 | |
Cleco Power | Measured On A Recurring Basis | QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) | |||
Asset Description | |||
Institutional money market funds | 0 | 0 | |
Assets | 0 | 0 | |
Total assets | 0 | 0 | |
Liability Description | |||
Liabilities | 0 | 0 | |
Total liabilities | 0 | 0 | |
Cleco Power | Measured On A Recurring Basis | SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) | |||
Asset Description | |||
Institutional money market funds | 198,006 | 74,903 | |
Assets | 0 | 0 | |
Total assets | 198,006 | 74,903 | |
Liability Description | |||
Liabilities | 0 | 0 | |
Total liabilities | 0 | 0 | |
Cleco Power | Measured On A Recurring Basis | SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | |||
Asset Description | |||
Institutional money market funds | 0 | 0 | |
Assets | 1,673 | 6,311 | 23,355 |
Total assets | 1,673 | 6,311 | |
Liability Description | |||
Liabilities | 524 | 586 | 468 |
Total liabilities | 524 | 586 | |
Financial Transmission Right | |||
Asset Description | |||
Assets | 6,822 | 23,355 | |
Liability Description | |||
Liabilities | 1,044 | 468 | |
Financial Transmission Right | QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) | |||
Asset Description | |||
Assets | 0 | 0 | |
Liability Description | |||
Liabilities | 0 | 0 | |
Financial Transmission Right | SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) | |||
Asset Description | |||
Assets | 0 | 0 | |
Liability Description | |||
Liabilities | 0 | 0 | |
Financial Transmission Right | SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | |||
Asset Description | |||
Assets | 6,822 | 23,355 | |
Liability Description | |||
Liabilities | 1,044 | 468 | |
Financial Transmission Right | Measured On A Recurring Basis | |||
Asset Description | |||
Assets | 1,779 | 6,822 | |
Liability Description | |||
Liabilities | 683 | 1,044 | |
Financial Transmission Right | Measured On A Recurring Basis | QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) | |||
Asset Description | |||
Assets | 0 | 0 | |
Liability Description | |||
Liabilities | 0 | 0 | |
Financial Transmission Right | Measured On A Recurring Basis | SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) | |||
Asset Description | |||
Assets | 0 | 0 | |
Liability Description | |||
Liabilities | 0 | 0 | |
Financial Transmission Right | Measured On A Recurring Basis | SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | |||
Asset Description | |||
Assets | 1,779 | 6,822 | |
Liability Description | |||
Liabilities | 683 | 1,044 | |
Financial Transmission Right | Cleco Power | |||
Asset Description | |||
Assets | 6,311 | 23,355 | |
Liability Description | |||
Liabilities | 586 | 468 | |
Financial Transmission Right | Cleco Power | QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) | |||
Asset Description | |||
Assets | 0 | 0 | |
Liability Description | |||
Liabilities | 0 | 0 | |
Financial Transmission Right | Cleco Power | SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) | |||
Asset Description | |||
Assets | 0 | 0 | |
Liability Description | |||
Liabilities | 0 | 0 | |
Financial Transmission Right | Cleco Power | SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | |||
Asset Description | |||
Assets | 6,311 | 23,355 | |
Liability Description | |||
Liabilities | 586 | 468 | |
Other Commodity Derivatives | |||
Asset Description | |||
Assets | 201 | 0 | |
Liability Description | |||
Liabilities | 5,373 | 0 | |
Other Commodity Derivatives | QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) | |||
Asset Description | |||
Assets | 0 | 0 | |
Liability Description | |||
Liabilities | 0 | 0 | |
Other Commodity Derivatives | SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) | |||
Asset Description | |||
Assets | 201 | 0 | |
Liability Description | |||
Liabilities | 5,373 | 0 | |
Other Commodity Derivatives | SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | |||
Asset Description | |||
Assets | 0 | 0 | |
Liability Description | |||
Liabilities | 0 | $ 0 | |
Other Commodity Derivatives | Measured On A Recurring Basis | |||
Asset Description | |||
Assets | 213 | 201 | |
Liability Description | |||
Liabilities | 12,494 | 5,373 | |
Other Commodity Derivatives | Measured On A Recurring Basis | QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) | |||
Asset Description | |||
Assets | 0 | 0 | |
Liability Description | |||
Liabilities | 0 | 0 | |
Other Commodity Derivatives | Measured On A Recurring Basis | SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) | |||
Asset Description | |||
Assets | 213 | 201 | |
Liability Description | |||
Liabilities | 12,494 | 5,373 | |
Other Commodity Derivatives | Measured On A Recurring Basis | SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | |||
Asset Description | |||
Assets | 0 | 0 | |
Liability Description | |||
Liabilities | $ 0 | $ 0 |
Fair Value Accounting - Fair _2
Fair Value Accounting - Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation (FY) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Beginning balance | $ 5,778 | $ 22,887 | $ 22,887 | $ 7,044 |
Unrealized (losses) gains | (1,659) | 11,865 | ||
Purchases | 27,881 | 28,185 | ||
Settlements | (43,331) | (24,207) | ||
Ending balance | 5,778 | 22,887 | ||
Cleco Power | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Beginning balance | 5,725 | 22,887 | 22,887 | 7,044 |
Unrealized (losses) gains | (945) | 11,865 | ||
Purchases | 21,609 | 28,185 | ||
Settlements | (37,826) | (24,207) | ||
Ending balance | 5,725 | 22,887 | ||
Price Risk Derivative | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Beginning balance | 5,778 | 22,887 | 22,887 | |
Unrealized (losses) gains | (1,398) | (1,917) | ||
Purchases | 466 | 5,237 | ||
Settlements | (3,750) | (18,397) | ||
Ending balance | 1,096 | 7,810 | 5,778 | 22,887 |
Price Risk Derivative | Cleco Power | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Beginning balance | 5,725 | 22,887 | 22,887 | |
Unrealized (losses) gains | (1,311) | (2,939) | ||
Purchases | 466 | 1,286 | ||
Settlements | (3,731) | (16,422) | ||
Ending balance | $ 1,149 | $ 4,812 | $ 5,725 | $ 22,887 |
Fair Value Accounting - Fair _3
Fair Value Accounting - Fair Value Measurement Inputs and Valuation Techniques (FY) (Details) $ in Thousands | Mar. 31, 2020USD ($)$ / MW | Dec. 31, 2019USD ($)$ / MW | Dec. 31, 2018USD ($)$ / MW |
Minimum | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Forward price range (usd per MWh) | $ / MW | (1.40) | (2.57) | (4.40) |
Maximum | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Forward price range (usd per MWh) | $ / MW | 2.93 | 2.86 | 15.10 |
Measured On A Recurring Basis | SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Assets | $ 1,779 | $ 6,822 | $ 23,355 |
Liabilities | $ 683 | $ 1,044 | $ 468 |
Cleco Power | Minimum | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Forward price range (usd per MWh) | $ / MW | (1.40) | (2.04) | (4.40) |
Cleco Power | Maximum | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Forward price range (usd per MWh) | $ / MW | 2.93 | 2.86 | 15.10 |
Cleco Power | Measured On A Recurring Basis | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Assets | $ 1,673 | $ 6,311 | |
Liabilities | 524 | 586 | |
Cleco Power | Measured On A Recurring Basis | SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Assets | 1,673 | 6,311 | $ 23,355 |
Liabilities | $ 524 | $ 586 | $ 468 |
Fair Value Accounting - Narrati
Fair Value Accounting - Narrative (FY) (Details) $ in Thousands, MWh in Millions | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2020USD ($)MMBTU | Mar. 31, 2020USD ($)MWh | Dec. 31, 2019USD ($)MMBTU | Dec. 31, 2019USD ($)MWh | Dec. 31, 2018USD ($)MWh | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Cash equivalents | $ 338,611 | $ 338,611 | $ 103,400 | $ 103,400 | $ 103,800 |
Fair value transfers, amount | $ 0 | $ 0 | $ 0 | ||
Energy of other commodity derivatives held (MWh / MMBtu) | 54,800,000 | 5.4 | 58.5 | 14.6 | 8.7 |
Restricted Cash and Cash Equivalents, Current | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Restricted cash and cash equivalents | $ 4,054 | $ 4,054 | $ 11,100 | $ 11,100 | $ 11,200 |
Restricted Cash and Cash Equivalents, Noncurrent | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Restricted cash and cash equivalents | 9,883 | 9,883 | 15,100 | 15,100 | 19,000 |
Cleco Power | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Cash equivalents | 184,911 | $ 184,911 | 49,500 | $ 49,500 | $ 26,100 |
Energy of other commodity derivatives held (MWh / MMBtu) | MWh | 3.4 | 9.2 | 8.7 | ||
Cleco Power | Restricted Cash and Cash Equivalents, Current | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Restricted cash and cash equivalents | 4,054 | $ 4,054 | 11,100 | $ 11,100 | $ 11,200 |
Cleco Power | Restricted Cash and Cash Equivalents, Noncurrent | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Restricted cash and cash equivalents | $ 9,041 | $ 9,041 | $ 14,300 | $ 14,300 | $ 18,600 |
Fair Value Accounting - Schedul
Fair Value Accounting - Schedule of Derivative Instruments in Statement of Financial Position, Fair Value (FY) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Commodity-related contracts | |||
Commodity-related contracts, net | $ 606 | $ 22,887 | |
Derivatives Not Designated as Hedging Instrument | |||
Commodity-related contracts | |||
Commodity-related contracts, net | $ (11,185) | 606 | |
Price Risk Derivative | Energy risk management assets | |||
Commodity-related contracts | |||
Energy risk management assets | 6,822 | 23,355 | |
Price Risk Derivative | Energy risk management liabilities | |||
Commodity-related contracts | |||
Energy risk management liabilities | 1,044 | 468 | |
Price Risk Derivative | Derivatives Not Designated as Hedging Instrument | |||
Commodity-related contracts | |||
Energy risk management assets | 1,779 | 6,822 | |
Energy risk management liabilities | 683 | 1,044 | |
Cleco Power | |||
Commodity-related contracts | |||
Commodity-related contracts, net | 5,725 | 22,887 | |
Cleco Power | Price Risk Derivative | Energy risk management assets | |||
Commodity-related contracts | |||
Energy risk management assets | 6,311 | 23,355 | |
Cleco Power | Price Risk Derivative | Energy risk management liabilities | |||
Commodity-related contracts | |||
Energy risk management liabilities | 586 | 468 | |
Cleco Power | Price Risk Derivative | Derivatives Not Designated as Hedging Instrument | |||
Commodity-related contracts | |||
Energy risk management assets | 1,673 | 6,311 | |
Energy risk management liabilities | 524 | 586 | |
Commodity-related contracts, net | $ 1,149 | 5,725 | |
Other Commodity Derivatives | |||
Commodity-related contracts | |||
Other commodity derivative asset | 201 | 0 | |
Other commodity derivatives | 5,373 | 0 | |
Other deferred credits | 2,304 | 0 | |
Other Commodity Derivatives | Price Risk Derivative | Energy risk management assets | |||
Commodity-related contracts | |||
Other commodity derivative asset | 201 | 0 | |
Other Commodity Derivatives | Price Risk Derivative | Energy risk management liabilities | |||
Commodity-related contracts | |||
Other commodity derivatives | $ 3,069 | $ 0 |
Fair Value Accounting - Effect
Fair Value Accounting - Effect of Derivatives On Consolidated Statements of Income (FY) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Net gain (loss) recognized in income on derivatives | $ (7,814) | $ 35,093 | $ 18,317 | ||
Electric operations | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Amount of gain recognized in income on derivatives | 13,043 | 39,659 | 23,826 | ||
Purchased power | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Amount of loss recognized in income on derivatives | (15,685) | (4,566) | (5,509) | ||
Fuel used for electric generation | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Amount of loss recognized in income on derivatives | (5,172) | 0 | 0 | ||
Derivatives Not Designated as Hedging Instrument | Price Risk Derivative | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Net gain (loss) recognized in income on derivatives | $ (6,093) | $ 1,885 | |||
Derivatives Not Designated as Hedging Instrument | Price Risk Derivative | Electric operations | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Amount of gain recognized in income on derivatives | 1,396 | 5,209 | |||
Derivatives Not Designated as Hedging Instrument | Price Risk Derivative | Purchased power | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Amount of loss recognized in income on derivatives | (381) | (3,324) | |||
Derivatives Not Designated as Hedging Instrument | Price Risk Derivative | Fuel used for electric generation | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Amount of loss recognized in income on derivatives | (7,108) | 0 | |||
Accumulated Deferred Fuel | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Unrealized gains (losses) associated with FTRs | (1,700) | 11,900 | (1,400) | ||
Accumulated Deferred Fuel | Derivatives Not Designated as Hedging Instrument | Price Risk Derivative | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Unrealized gains (losses) associated with FTRs | (1,300) | (2,900) | |||
Cleco Power | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Net gain (loss) recognized in income on derivatives | 6,981 | 35,093 | 18,317 | ||
Cleco Power | Electric operations | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Amount of gain recognized in income on derivatives | 13,047 | 39,659 | 23,826 | ||
Cleco Power | Purchased power | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Amount of loss recognized in income on derivatives | (6,066) | (4,566) | (5,509) | ||
Cleco Power | Derivatives Not Designated as Hedging Instrument | Price Risk Derivative | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Net gain (loss) recognized in income on derivatives | 645 | 3,223 | |||
Cleco Power | Derivatives Not Designated as Hedging Instrument | Price Risk Derivative | Electric operations | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Amount of gain recognized in income on derivatives | 1,396 | 5,206 | |||
Cleco Power | Derivatives Not Designated as Hedging Instrument | Price Risk Derivative | Purchased power | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Amount of loss recognized in income on derivatives | (751) | (1,983) | |||
Cleco Power | Accumulated Deferred Fuel | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Unrealized gains (losses) associated with FTRs | $ (900) | $ 11,900 | $ (1,400) | ||
Cleco Power | Accumulated Deferred Fuel | Derivatives Not Designated as Hedging Instrument | Price Risk Derivative | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Unrealized gains (losses) associated with FTRs | $ (1,300) | $ (2,900) |
Debt - Total Indebtedness (FY)
Debt - Total Indebtedness (FY) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | |||
Total Long-term debt and finance Leases, net | $ 3,064,679 | $ 2,874,485 | |
Finance lease, current liabilities | 617 | ||
Unamortized debt issuance costs | $ (13,200) | (13,700) | (10,300) |
Cleco Power | |||
Debt Instrument [Line Items] | |||
Total Long-term debt and finance Leases, net | 1,327,372 | 1,387,774 | |
Total bonds | 1,386,055 | 1,406,625 | |
Barge lease obligations | 15,861 | ||
Barge lease obligations | 16,418 | ||
Gross amount of long-term debt and finance leases | 1,401,916 | 1,423,043 | |
Less: long-term debt due within one year | 60,970 | 20,571 | |
Finance lease, current liabilities | 617 | ||
Less: finance leases classified as long-term debt due within one year | 557 | ||
Unamortized debt discount | (5,368) | (5,695) | |
Unamortized debt issuance costs | (7,589) | (8,446) | |
Unamortized debt issuance costs | $ (7,200) | $ (7,400) | (8,300) |
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 | Series A GO Zone bonds, 2.00%, due 2038, mandatory tender in 2020 | |||
Debt Instrument [Line Items] | |||
Interest rate | 2.00% | ||
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 | Cleco Katrina/Rita's storm recovery bonds, 5.61%, due 2023 | |||
Debt Instrument [Line Items] | |||
Interest rate | 5.61% | ||
Total bonds | $ 11,055 | 31,625 | |
Cleco Holdings | |||
Debt Instrument [Line Items] | |||
Unamortized debt issuance costs | (11,900) | (8,200) | |
Long-term debt due within one year | (64,398) | 0 | |
Unamortized debt issuance costs | (6,271) | (1,989) | |
Fair value adjustment | 127,976 | 138,700 | |
Deferred debt issuance costs eliminated as a result of the 2016 Merger | $ 5,600 | 6,300 | |
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% | ||
Total bonds | $ 300,000 | 0 | |
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, due 2021 | |||
Debt Instrument [Line Items] | |||
Bank term loan, variable rate, due 2021 | 300,000 | 300,000 | |
Cleco Holdings | Bank term loan, due 2021 | |||
Debt Instrument [Line Items] | |||
Bank term loan, variable rate, due 2021 | $ 30,000 | $ 0 |
Debt - Future Amounts Payable U
Debt - Future Amounts Payable Under Long-Term Debt Agreements (FY) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Long-term debt and finance leases, net | $ 3,064,679 | $ 2,874,485 |
For the year ending Dec. 31, | ||
2020 | 617 | |
2021 | 682 | |
2022 | 755 | |
2023 | 836 | |
2024 | 925 | |
Thereafter | 12,046 | |
Cleco Power | ||
Debt Instrument [Line Items] | ||
Long-term debt and finance leases, net | 1,327,372 | $ 1,387,774 |
For the year ending Dec. 31, | ||
2020 | 617 | |
2021 | 682 | |
2022 | 755 | |
2023 | 836 | |
2024 | 925 | |
Thereafter | 12,046 | |
Long-term Debt Agreements | ||
For the year ending Dec. 31, | ||
2020 | 11,055 | |
2021 | 330,000 | |
2022 | 25,000 | |
2023 | 265,000 | |
2024 | 50,000 | |
Thereafter | 2,385,000 | |
Long-term Debt Agreements | Cleco Power | ||
For the year ending Dec. 31, | ||
2020 | 11,055 | |
2021 | 0 | |
2022 | 25,000 | |
2023 | 100,000 | |
2024 | 50,000 | |
Thereafter | $ 1,200,000 |
Debt - Narrative (FY) (Details)
Debt - Narrative (FY) (Details) | Feb. 04, 2019USD ($) | Jan. 31, 2019USD ($) | Sep. 11, 2019USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Mar. 31, 2020USD ($) |
Debt [Line Items] | |||||||
Short-term debt outstanding | $ 0 | $ 0 | $ 238,000,000 | ||||
Long-term debt outstanding | 3,190,000,000 | ||||||
Long Term Debt And Finance Lease Obligations Current | 125,986,000 | 21,128,000 | |||||
Long-term debt outstanding, due within one year | 125,986,000 | $ 63,932,000 | |||||
Repayments of long-term debt | 390,571,000 | 19,193,000 | $ 17,896,000 | ||||
Cleco Cajun Transaction commitments | |||||||
Debt [Line Items] | |||||||
Long-term debt outstanding, due within one year | 63,300,000 | ||||||
Cleco Katrina/Rita's storm recovery bonds | |||||||
Debt [Line Items] | |||||||
Long-term debt outstanding, due within one year | 11,000,000 | ||||||
Cleco Power | |||||||
Debt [Line Items] | |||||||
Short-term debt outstanding | 0 | 0 | |||||
Long-term debt outstanding | 1,390,000,000 | ||||||
Long Term Debt And Finance Lease Obligations Current | 61,587,000 | 21,128,000 | |||||
Long-term debt outstanding, due within one year | 61,600,000 | ||||||
Repayments of long-term debt | 20,571,000 | $ 19,193,000 | $ 17,896,000 | ||||
Cleco Power | Cleco Katrina/Rita's storm recovery bonds | |||||||
Debt [Line Items] | |||||||
Long-term debt outstanding, due within one year | 11,000,000 | ||||||
Cleco Holdings | |||||||
Debt [Line Items] | |||||||
Debt term | 3 years | ||||||
Debt to capital ratio | 0.65 | ||||||
Cleco Holdings | Bank Term Loan Agreement | |||||||
Debt [Line Items] | |||||||
Repayments of long-term debt | $ 100,000,000 | ||||||
Cleco Holdings | Senior Notes 3.375% Due September 15, 2029 | |||||||
Debt [Line Items] | |||||||
Aggregate principal amount | $ 300,000,000 | ||||||
Interest rate | 3.375% | ||||||
Cleco Holdings | Bridge Loan Agreement | |||||||
Debt [Line Items] | |||||||
Repayments of long-term debt | $ 300,000,000 | ||||||
Unsecured Debt | GO Zone Bond, Maturing 2038 | |||||||
Debt [Line Items] | |||||||
Aggregate principal amount | $ 50,000,000 | ||||||
Loans Payable | Cleco Holdings | |||||||
Debt [Line Items] | |||||||
Debt term | 3 years | ||||||
Debt to capital ratio | 0.65 | ||||||
Loans Payable | Cleco Holdings | Bank Term Loan Agreement | |||||||
Debt [Line Items] | |||||||
Aggregate principal amount | $ 100,000,000 | ||||||
Loans Payable | Cleco Holdings | Bridge Loan Agreement | |||||||
Debt [Line Items] | |||||||
Aggregate principal amount | 300,000,000 | ||||||
NRG South Central | |||||||
Debt [Line Items] | |||||||
Repayments of long-term debt | $ 400,000,000 | $ 400,000,000 |
Debt - Cumulative Minimum Princ
Debt - Cumulative Minimum Principal Amounts Committed to be Repaid (FY) (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Debt Disclosure [Abstract] | |
2019 | $ 66,700 |
2020 | 133,300 |
2021 | 200,000 |
2022 | 267,700 |
2023 | 333,300 |
2024 | $ 400,000 |
Debt - Credit Facilities (FY) (
Debt - Credit Facilities (FY) (Details) | Feb. 05, 2019USD ($) | Feb. 04, 2019USD ($) | Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Line of Credit Facility [Line Items] | |||||||
Payments on credit facilities | $ 0 | $ 108,000,000 | $ 108,000,000 | $ 0 | $ 179,000,000 | ||
Line of Credit | |||||||
Line of Credit Facility [Line Items] | |||||||
Unrestricted member's equity | 1,010,000,000 | ||||||
Cleco Holdings | |||||||
Line of Credit Facility [Line Items] | |||||||
Ratio of total indebtedness to total capitalization | 0.65 | ||||||
Cleco Holdings | Line of Credit | |||||||
Line of Credit Facility [Line Items] | |||||||
Maximum borrowing capacity | $ 175,000,000 | ||||||
Line of credit facility, remaining borrowing capacity | $ 475,000,000 | ||||||
Increase in credit facility capacity | $ 75,000,000 | ||||||
Commitment fees | 0.275% | ||||||
Higher fees if downgraded | 0.075% | ||||||
Additional interest if downgraded | 0.50% | ||||||
Payments on credit facilities | $ 75,000,000 | ||||||
Cleco Holdings | Line of Credit | Maximum | |||||||
Line of Credit Facility [Line Items] | |||||||
Ratio of total indebtedness to total capitalization | 0.65 | ||||||
Cleco Holdings | Line of Credit | ABR | |||||||
Line of Credit Facility [Line Items] | |||||||
Basis spread on variable rate | 0.75% | ||||||
Cleco Holdings | Line of Credit | LIBOR | |||||||
Line of Credit Facility [Line Items] | |||||||
Basis spread on variable rate | 1.75% | ||||||
Cleco Power | |||||||
Line of Credit Facility [Line Items] | |||||||
Payments on credit facilities | $ 33,000,000 | $ 0 | $ 106,000,000 | ||||
Cleco Power | Maximum | |||||||
Line of Credit Facility [Line Items] | |||||||
Ratio of total indebtedness to total capitalization | 0.65 | ||||||
Cleco Power | Line of Credit | |||||||
Line of Credit Facility [Line Items] | |||||||
Maximum borrowing capacity | $ 300,000,000 | ||||||
Unrestricted member's equity | $ 989,000,000 | ||||||
Higher fees if downgraded | 0.05% | ||||||
Additional interest if downgraded | 0.125% | ||||||
Cleco Power | Line of Credit | Maximum | |||||||
Line of Credit Facility [Line Items] | |||||||
Ratio of total indebtedness to total capitalization | 0.65 | ||||||
Cleco Power | Line of Credit | ABR | |||||||
Line of Credit Facility [Line Items] | |||||||
Basis spread on variable rate | 0.125% | ||||||
Cleco Power | Line of Credit | LIBOR | |||||||
Line of Credit Facility [Line Items] | |||||||
Basis spread on variable rate | 1.125% |
Pension Plan and Employee Ben_7
Pension Plan and Employee Benefits - Narrative (FY) (Details) | Sep. 12, 2019USD ($) | Mar. 30, 2017USD ($) | Sep. 30, 2019USD ($) | Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($)Bonus | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($)executive_officer | Mar. 29, 2017 |
PENSION BENEFITS | ||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||
Consecutive calendar years | 5 years | |||||||||
Most recent period of employment | 10 years | |||||||||
Employer contributions | $ 12,300,000 | $ 12,300,000 | $ 12,250,000 | $ 0 | ||||||
Estimated pension contributions required through 2024 | $ 66,500,000 | 61,800,000 | ||||||||
Net periodic benefit cost | 4,870,000 | $ 2,952,000 | $ 12,175,000 | $ 18,835,000 | $ 16,560,000 | |||||
Expected return on plan assets | 6.55% | 5.86% | 6.08% | |||||||
Actual return on plan assets | 22.17% | (7.31%) | ||||||||
Discount rate | 3.43% | 4.35% | ||||||||
OTHER BENEFITS | ||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||
Employer contributions | $ 0 | $ 0 | ||||||||
Net periodic benefit cost | 1,257,000 | 643,000 | 2,858,000 | $ 2,920,000 | $ 2,965,000 | |||||
Assets set aside in a trust | 0 | $ 0 | ||||||||
Assumed health care cost trend rates for next fiscal year | 5.00% | 5.00% | ||||||||
Ultimate health care trend rate | 5.00% | |||||||||
Discount rate | 3.25% | 4.16% | ||||||||
SERP BENEFITS | ||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||
Consecutive calendar years | 5 years | |||||||||
Most recent period of employment | 60 months | |||||||||
Net periodic benefit cost | 1,545,000 | 1,295,000 | $ 5,040,000 | $ 6,372,000 | $ 5,963,000 | |||||
Number of highest cash bonuses | Bonus | 5 | |||||||||
Number of executive officers with capped benefits | executive_officer | 2 | |||||||||
Discount rate | 4.08% | 3.37% | 4.34% | 4.22% | ||||||
Special/contractual termination benefits | $ (300,000) | $ 0 | $ 0 | $ (315,000) | ||||||
Cleco Power | PENSION BENEFITS | ||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||
Employer contributions | 83,000,000 | |||||||||
Cleco Power | OTHER BENEFITS | ||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||
Net periodic benefit cost | 1,200,000 | 700,000 | 3,100,000 | 3,300,000 | 3,300,000 | |||||
Cleco Power | SERP BENEFITS | ||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||
Net periodic benefit cost | 200,000 | 300,000 | 800,000 | 1,400,000 | 1,300,000 | |||||
Support Group | PENSION BENEFITS | ||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||
Net periodic benefit cost | $ 400,000 | $ 500,000 | $ 2,200,000 | $ 2,000,000 | $ 1,800,000 | |||||
Forecast [Member] | PENSION BENEFITS | ||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||
Expected return on plan assets | 5.91% | |||||||||
Increase in expected pension costs | $ 6,000,000 |
Pension Plan and Employee Ben_8
Pension Plan and Employee Benefits - Benefit Obligation, Plan Assets, and Funded Status (FY) (Details) - USD ($) | Sep. 12, 2019 | Sep. 30, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
PENSION BENEFITS | |||||||
Change in benefit obligation | |||||||
Benefit obligation at beginning of period | $ 610,323,000 | $ 530,936,000 | $ 530,936,000 | $ 567,215,000 | |||
Service cost | 2,328,000 | 2,067,000 | 8,414,000 | 9,507,000 | $ 9,039,000 | ||
Interest cost | 5,130,000 | 5,650,000 | 22,485,000 | 20,860,000 | 21,648,000 | ||
Plan participants' contributions | 0 | 0 | |||||
Actuarial loss (gain) | 73,655,000 | (42,935,000) | |||||
Expenses paid | (2,933,000) | (2,786,000) | |||||
Benefits paid | (22,234,000) | (20,925,000) | |||||
Benefit obligation at end of period | 610,323,000 | 530,936,000 | 567,215,000 | ||||
Change in plan assets | |||||||
Fair value of plan assets at beginning of period | 460,097,000 | 391,933,000 | 391,933,000 | 444,089,000 | |||
Actual return on plan assets | 81,081,000 | (28,884,000) | |||||
Employer contributions | $ 12,300,000 | $ 12,300,000 | 12,250,000 | 0 | |||
Expenses paid | (2,933,000) | (2,786,000) | |||||
Adjustment | 0 | 439,000 | |||||
Benefits paid | (22,234,000) | (20,925,000) | |||||
Fair value of plan assets at end of period | 460,097,000 | 391,933,000 | 444,089,000 | ||||
Unfunded status | (150,226,000) | (139,003,000) | |||||
Accumulated benefit obligation | 568,354,000 | 491,522,000 | |||||
OTHER BENEFITS | |||||||
Change in benefit obligation | |||||||
Benefit obligation at beginning of period | 52,722,000 | 40,455,000 | 40,455,000 | 43,203,000 | |||
Service cost | 508,000 | 288,000 | 1,191,000 | 1,320,000 | 1,446,000 | ||
Interest cost | 410,000 | 400,000 | 1,646,000 | 1,465,000 | 1,569,000 | ||
Plan participants' contributions | 1,229,000 | 1,224,000 | |||||
Actuarial loss (gain) | 13,897,000 | (1,106,000) | |||||
Expenses paid | 0 | 0 | |||||
Benefits paid | (5,696,000) | (5,651,000) | |||||
Benefit obligation at end of period | 52,722,000 | 40,455,000 | 43,203,000 | ||||
Change in plan assets | |||||||
Fair value of plan assets at beginning of period | 0 | 0 | 0 | 0 | |||
Actual return on plan assets | 0 | 0 | |||||
Employer contributions | 0 | 0 | |||||
Expenses paid | 0 | 0 | |||||
Adjustment | 0 | 0 | |||||
Benefits paid | 0 | 0 | |||||
Fair value of plan assets at end of period | 0 | 0 | 0 | ||||
Unfunded status | (52,722,000) | (40,455,000) | |||||
SERP BENEFITS | |||||||
Change in benefit obligation | |||||||
Benefit obligation at beginning of period | 89,128,000 | 78,414,000 | 78,414,000 | 84,339,000 | |||
Service cost | 95,000 | 113,000 | 330,000 | 542,000 | 494,000 | ||
Interest cost | $ 733,000 | $ 825,000 | 3,326,000 | 3,077,000 | 3,239,000 | ||
Actuarial loss (gain) | 11,608,000 | (5,163,000) | |||||
Benefits paid | (4,550,000) | (4,381,000) | |||||
Benefit obligation at end of period | 89,128,000 | 78,414,000 | $ 84,339,000 | ||||
Change in plan assets | |||||||
Accumulated benefit obligation | $ 89,128,000 | $ 78,414,000 |
Pension Plan and Employee Ben_9
Pension Plan and Employee Benefits - Amounts Recognized in Other Comprehensive Income (FY) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
PENSION BENEFITS | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial loss (gain) occurring during period | $ 19,075 | $ 9,722 |
Net actuarial loss amortized during period | 7,849 | 12,313 |
Prior service credit amortized during period | (71) | (71) |
Expected net actuarial loss (gain) | 14,824 | |
Expected prior service credit | (60) | |
Net actuarial loss | 151,603 | 140,377 |
Prior service credit | (60) | (131) |
OTHER BENEFITS | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial loss (gain) occurring during period | 13,897 | (1,106) |
Net actuarial loss amortized during period | 21 | 135 |
Prior service credit amortized during period | 0 | 0 |
Expected net actuarial loss (gain) | 1,355 | |
Expected prior service credit | 0 | |
Net actuarial loss | 15,732 | 1,814 |
Prior service credit | 0 | 0 |
SERP BENEFITS | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial loss (gain) occurring during period | 11,608 | (5,163) |
Net actuarial loss amortized during period | 1,544 | 2,913 |
Prior service credit amortized during period | (160) | (160) |
Expected net actuarial loss (gain) | 3,171 | |
Expected prior service credit | (160) | |
Net actuarial loss | 28,731 | 17,261 |
Prior service credit | $ (1,678) | $ (1,837) |
Pension Plan and Employee Be_10
Pension Plan and Employee Benefits - Components of Periodic Benefit Costs and Weighted-Average Assumptions (FY) (Details) - USD ($) $ in Thousands | Mar. 30, 2017 | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Mar. 29, 2017 |
Weighted-average assumptions used to determine the benefit obligation | |||||||||
Rate of compensation increase | 2.81% | 2.93% | |||||||
Weighted-average assumptions used to determine the net benefit cost | |||||||||
Rate of compensation increase | 2.81% | 2.93% | 2.98% | ||||||
PENSION BENEFITS | |||||||||
Components of periodic benefit costs | |||||||||
Service cost | $ 2,328 | $ 2,067 | $ 8,414 | $ 9,507 | $ 9,039 | ||||
Interest cost | 5,130 | 5,650 | 22,485 | 20,860 | 21,648 | ||||
Expected return on plan assets | (6,245) | (6,622) | (26,502) | (23,773) | (24,064) | ||||
Amortizations | |||||||||
Prior service credit | (15) | (18) | (71) | (71) | (71) | ||||
Net loss (gain) | 3,672 | 1,875 | 7,849 | 12,312 | 10,008 | ||||
Net periodic benefit cost | 4,870 | 2,952 | $ 12,175 | $ 18,835 | $ 16,560 | ||||
Weighted-average assumptions used to determine the benefit obligation | |||||||||
Discount rate | 3.43% | 4.35% | |||||||
Weighted-average assumptions used to determine the net benefit cost | |||||||||
Discount rate | 4.35% | 3.73% | 4.27% | ||||||
Expected return on plan assets | 6.55% | 5.86% | 6.08% | ||||||
OTHER BENEFITS | |||||||||
Components of periodic benefit costs | |||||||||
Service cost | 508 | 288 | $ 1,191 | $ 1,320 | $ 1,446 | ||||
Interest cost | 410 | 400 | 1,646 | 1,465 | 1,569 | ||||
Expected return on plan assets | 0 | 0 | 0 | 0 | 0 | ||||
Amortizations | |||||||||
Prior service credit | 0 | 0 | 0 | 0 | 0 | ||||
Net loss (gain) | 339 | (45) | 21 | 135 | (50) | ||||
Net periodic benefit cost | 1,257 | 643 | $ 2,858 | $ 2,920 | $ 2,965 | ||||
Weighted-average assumptions used to determine the benefit obligation | |||||||||
Discount rate | 3.25% | 4.16% | |||||||
Weighted-average assumptions used to determine the net benefit cost | |||||||||
Discount rate | 4.16% | 3.47% | 3.81% | ||||||
SERP BENEFITS | |||||||||
Components of periodic benefit costs | |||||||||
Service cost | 95 | 113 | $ 330 | $ 542 | $ 494 | ||||
Interest cost | 733 | 825 | 3,326 | 3,077 | 3,239 | ||||
Amortizations | |||||||||
Prior service credit | (40) | (35) | (160) | (160) | (190) | ||||
Net loss (gain) | 757 | 392 | 1,544 | 2,913 | 2,105 | ||||
Net periodic benefit cost | 5,040 | 6,372 | 5,648 | ||||||
Special/contractual termination benefits | $ 300 | 0 | 0 | 315 | |||||
Net periodic benefit cost | $ 1,545 | $ 1,295 | $ 5,040 | $ 6,372 | $ 5,963 | ||||
Weighted-average assumptions used to determine the benefit obligation | |||||||||
Discount rate | 4.08% | 3.37% | 4.34% | 4.22% | |||||
Rate of compensation increase | 5.00% | 5.00% | |||||||
Weighted-average assumptions used to determine the net benefit cost | |||||||||
Discount rate | 4.22% | 4.08% | 4.34% | 3.70% | |||||
Rate of compensation increase | 5.00% | 5.00% | 5.00% | 5.00% |
Pension Plan and Employee Be_11
Pension Plan and Employee Benefits - Amounts Recognized in Balance Sheet (FY) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Defined Benefit Plan Disclosure [Line Items] | |||
Non-current | $ 283,830 | $ 283,075 | $ 249,264 |
OTHER BENEFITS | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Current | 4,401 | 4,401 | 4,130 |
Non-current | 48,175 | 48,321 | 36,325 |
SERP BENEFITS | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Current | 4,599 | 4,599 | |
Non-current | 84,219 | 84,529 | |
SERP, current | 4,599 | 4,478 | |
SERP, noncurrent | 84,529 | 73,936 | |
Cleco Power | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Non-current | 207,293 | 206,270 | |
Cleco Power | OTHER BENEFITS | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Current | 3,815 | 3,815 | 3,584 |
Non-current | 41,994 | 42,080 | 31,694 |
Cleco Power | SERP BENEFITS | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Current | 760 | 760 | |
Non-current | $ 13,863 | 13,964 | |
SERP, current | 760 | 930 | |
SERP, noncurrent | $ 13,964 | $ 12,025 |
Pension Plan and Employee Be_12
Pension Plan and Employee Benefits - Fair Value of Pension Plan Assets (FY) (Details) - PENSION BENEFITS - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 354,678 | $ 316,730 | |
Interest accrual | 2,093 | 2,103 | |
Total net assets | 460,097 | 391,933 | $ 444,089 |
Cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 4,810 | 2,471 | |
Common stock | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 13,111 | ||
Government securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 19,517 | 19,831 | |
Mutual funds, Domestic | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 102,184 | 79,210 | |
Mutual funds, International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 53,041 | 43,418 | |
Real estate funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 18,017 | 20,298 | |
Total net assets | 18,017 | 20,298 | $ 19,195 |
Corporate debt | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 157,109 | 138,391 | |
QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 155,225 | 135,739 | |
QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) | Cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) | Common stock | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 13,111 | ||
QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) | Government securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) | Mutual funds, Domestic | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 102,184 | 79,210 | |
QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) | Mutual funds, International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 53,041 | 43,418 | |
QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) | Real estate funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) | Corporate debt | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 181,436 | 160,693 | |
SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) | Cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 4,810 | 2,471 | |
SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) | Common stock | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) | Government securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 19,517 | 19,831 | |
SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) | Mutual funds, Domestic | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) | Mutual funds, International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) | Real estate funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) | Corporate debt | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 157,109 | 138,391 | |
SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 18,017 | 20,298 | |
SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | Cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | Common stock | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | Government securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | Mutual funds, Domestic | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | Mutual funds, International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | Real estate funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 18,017 | 20,298 | |
SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | Corporate debt | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Investments measured at net asset value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 103,326 | $ 73,100 |
Pension Plan and Employee Be_13
Pension Plan and Employee Benefits - Unobservable Input Reconciliation (FY) (Details) - PENSION BENEFITS - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation[Roll Forward] | ||
Fair value of plan assets at beginning of period | $ 391,933 | $ 444,089 |
Fair value of plan assets at end of period | 460,097 | 391,933 |
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 | 20,298 | 19,195 |
Realized gains (losses) | 370 | 29 |
Unrealized gains | (1,727) | 391 |
Purchases | 759 | 710 |
Sales | (1,683) | (27) |
Fair value of plan assets at end of period | $ 18,017 | $ 20,298 |
Pension Plan and Employee Be_14
Pension Plan and Employee Benefits - Pension Plan Investment Objectives (FY) (Details) - PENSION BENEFITS | Dec. 31, 2019 |
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_15
Pension Plan and Employee Benefits - Assumed Health Care Cost Trend Rates (FY) (Details) - OTHER BENEFITS $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |
Effect of one-percentage point increase on total of service and interest cost components | $ 14 |
Effect of one-percentage point decrease on total of service and interest cost components | (16) |
Effect of one-percentage point increase on postretirement benefit obligation | 205 |
Effect of one-percentage point decrease on postretirement benefit obligation | $ (229) |
Pension Plan and Employee Be_16
Pension Plan and Employee Benefits - Projected Benefit Payments and Projected Receipts (FY) (Details) $ in Thousands | Dec. 31, 2019USD ($) |
PENSION BENEFITS | |
For the year ending Dec. 31, | |
2020 | $ 24,065 |
2021 | 25,293 |
2022 | 26,541 |
2023 | 27,709 |
2024 | 28,741 |
Next five years | 158,810 |
OTHER BENEFITS | |
For the year ending Dec. 31, | |
2020 | 4,472 |
2021 | 4,498 |
2022 | 4,554 |
2023 | 4,536 |
2024 | 4,531 |
Next five years | 21,706 |
SERP BENEFITS | |
For the year ending Dec. 31, | |
2020 | 4,662 |
2021 | 4,689 |
2022 | 4,698 |
2023 | 4,710 |
2024 | 4,753 |
Next five years | $ 24,861 |
Pension Plan and Employee Be_17
Pension Plan and Employee Benefits - 401 (K) Plans (FY) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Contribution Plan Disclosure [Line Items] | |||||
401(k) Plan expense | $ 3,256 | $ 2,267 | $ 7,861 | $ 5,884 | $ 5,386 |
Support Group | |||||
Defined Contribution Plan Disclosure [Line Items] | |||||
401(k) Plan expense | $ 1,662 | $ 930 | $ 3,408 | $ 1,066 | $ 888 |
Income Taxes - Effective Tax Ra
Income Taxes - Effective Tax Rate Reconciliation (FY) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Effective Income Tax Rate [Line Items] | |||||
Income before tax | $ 7,890 | $ 26,543 | $ 195,830 | $ 123,819 | $ 145,159 |
Statutory rate | 21.00% | 21.00% | 35.00% | ||
Tax expense at federal statutory rate | $ 41,124 | $ 26,002 | $ 50,806 | ||
Increase (decrease) | |||||
Effective Income Tax Rate Reconciliation, Other Adjustments, Amount | (4,687) | (401) | 743 | ||
State income taxes, net of federal benefit | 9,565 | 6,288 | 5,047 | ||
Return to accrual adjustment | (3,963) | (193) | (608) | ||
TCJA | 0 | (19) | (46,291) | ||
NMTC | 0 | (1,578) | 313 | ||
Other, net | 1,126 | (717) | (2,931) | ||
Total tax expense | $ 1,562 | $ 5,986 | $ 43,165 | $ 29,382 | $ 7,079 |
Effective rate | 19.80% | 22.60% | 22.00% | 23.70% | 4.90% |
Cleco Power | |||||
Effective Income Tax Rate [Line Items] | |||||
Income before tax | $ 193,714 | $ 218,181 | $ 218,069 | ||
Statutory rate | 21.00% | 21.00% | 35.00% | ||
Tax expense at federal statutory rate | $ 40,680 | $ 45,818 | $ 76,324 | ||
Increase (decrease) | |||||
Effective Income Tax Rate Reconciliation, Other Adjustments, Amount | (4,687) | (401) | 743 | ||
State income taxes, net of federal benefit | 11,683 | 11,080 | 7,583 | ||
Return to accrual adjustment | (2,008) | 483 | (284) | ||
TCJA | 0 | (19) | (14,292) | ||
Other, net | (216) | (1,037) | (2,743) | ||
Total tax expense | $ 45,452 | $ 55,924 | $ 67,331 | ||
Effective rate | 22.00% | 23.00% | 23.50% | 25.60% | 30.90% |
Income Taxes - Current and Defe
Income Taxes - Current and Deferred Income Tax Expense (FY) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Components of Income Tax Expense [Line Items] | |||||
Current federal income tax expense | $ 1,600 | $ 15,304 | $ 46,520 | ||
Deferred federal income tax expense (benefit) | 37,963 | 5,863 | (47,329) | ||
Amortization of accumulated deferred investment tax credits | (191) | (236) | (662) | ||
Total federal income tax expense (benefit) | 39,372 | 20,931 | (1,471) | ||
Current state income tax expense | 1,675 | 7,771 | 3,187 | ||
Deferred state income tax expense | 2,118 | 680 | 5,363 | ||
Total state income tax expense | 3,793 | 8,451 | 8,550 | ||
Total tax expense | $ 1,562 | $ 5,986 | 43,165 | 29,382 | 7,079 |
Items charged or credited directly to member's equity | |||||
Total tax (benefit) expense from items charged directly to member's equity | (6,808) | 1,868 | (2,764) | ||
Total federal and state income tax expense | 36,357 | 31,250 | 4,315 | ||
Federal deferred | |||||
Items charged or credited directly to member's equity | |||||
Total tax (benefit) expense from items charged directly to member's equity | (5,130) | 1,408 | (2,380) | ||
State deferred | |||||
Items charged or credited directly to member's equity | |||||
Total tax (benefit) expense from items charged directly to member's equity | (1,678) | 460 | (384) | ||
Cleco Power | |||||
Components of Income Tax Expense [Line Items] | |||||
Current federal income tax expense | 14,781 | 44,411 | 87,433 | ||
Deferred federal income tax expense (benefit) | 22,443 | (9,033) | (29,190) | ||
Amortization of accumulated deferred investment tax credits | (191) | (236) | (662) | ||
Total federal income tax expense (benefit) | 37,033 | 35,142 | 57,581 | ||
Current state income tax expense | 9,063 | 23,293 | 14,751 | ||
Deferred state income tax expense | (644) | (2,511) | (5,001) | ||
Total state income tax expense | 8,419 | 20,782 | 9,750 | ||
Total tax expense | 45,452 | 55,924 | 67,331 | ||
Items charged or credited directly to member's equity | |||||
Total tax (benefit) expense from items charged directly to member's equity | (3,318) | 1,058 | (164) | ||
Total federal and state income tax expense | 42,134 | 56,982 | 67,167 | ||
Cleco Power | Federal deferred | |||||
Items charged or credited directly to member's equity | |||||
Total tax (benefit) expense from items charged directly to member's equity | (2,500) | 797 | (141) | ||
Cleco Power | State deferred | |||||
Items charged or credited directly to member's equity | |||||
Total tax (benefit) expense from items charged directly to member's equity | $ (818) | $ 261 | $ (23) |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (FY) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Accumulated Deferred Federal and State Income Tax Assets and Liabilities [Line Items] | ||
Depreciation and property basis differences | $ (862,263) | $ (664,996) |
Net operating loss carryforward | 120,955 | 0 |
NMTC | 92,364 | 86,673 |
Fuel costs | (3,984) | (8,339) |
Other comprehensive income | 10,612 | 640 |
Regulated operations regulatory liability, net | 34,836 | 39,808 |
Postretirement benefits | 22,691 | 19,580 |
Merger fair value adjustments | (52,957) | (56,725) |
Other | (19,312) | (24,671) |
Accumulated deferred federal and state income taxes, net | (657,058) | (608,030) |
Cleco Power | ||
Accumulated Deferred Federal and State Income Tax Assets and Liabilities [Line Items] | ||
Depreciation and property basis differences | (705,423) | (666,224) |
Net operating loss carryforward | 2,714 | 0 |
Fuel costs | (5,608) | (8,339) |
Other comprehensive income | 7,510 | 4,192 |
Regulated operations regulatory liability, net | 34,836 | 39,808 |
Postretirement benefits | 10,044 | 11,081 |
Other | (1,907) | (11,283) |
Accumulated deferred federal and state income taxes, net | $ (657,834) | $ (630,765) |
Income Taxes - Narrative (FY) (
Income Taxes - Narrative (FY) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Valuation Allowance [Line Items] | ||||||
Interest payable related to uncertain tax positions | $ 0 | $ 0 | $ 0 | |||
Interest expense related to uncertain tax positions | 0 | 0 | $ 0 | |||
Liability for uncertain tax positions | $ 0 | 0 | 0 | 0 | ||
Penalties recognized | 0 | $ 0 | 0 | 0 | ||
Decreased ADIT liability | (421,200,000) | |||||
Accumulated deferred federal and state income taxes, net | (655,027,000) | (608,030,000) | (657,058,000) | (608,030,000) | ||
Taxes payable, net | 23,902,000 | 43,674,000 | 8,931,000 | 43,674,000 | ||
Other deferred charges | 30,474,000 | 20,846,000 | 27,222,000 | 20,846,000 | ||
Scenario, Adjustment | ||||||
Valuation Allowance [Line Items] | ||||||
Accrued Income Taxes, Current And Other Liabilities, Noncurrent | 2,800,000 | |||||
Accumulated deferred federal and state income taxes, net | 7,600,000 | 7,600,000 | ||||
Taxes payable, net | 3,800,000 | 1,400,000 | 3,800,000 | |||
Other deferred charges | 3,800,000 | 1,400,000 | 3,800,000 | |||
NMTC | ||||||
Valuation Allowance [Line Items] | ||||||
NMTC carryforwards | 92,400,000 | |||||
Net operating loss carryforwards | 86,900,000 | 86,900,000 | ||||
Valuation allowance | 0 | |||||
Cleco Power | ||||||
Valuation Allowance [Line Items] | ||||||
Valuation allowance | 0 | |||||
Interest payable related to uncertain tax positions | 0 | 0 | 0 | 0 | ||
Interest expense related to uncertain tax positions | 0 | 0 | $ 0 | |||
Liability for uncertain tax positions | $ 0 | 0 | 0 | 0 | ||
Decreased ADIT liability | (389,300,000) | |||||
Accumulated deferred federal and state income taxes, net | (630,765,000) | (657,834,000) | (630,765,000) | |||
Taxes payable, net | 48,177,000 | 38,888,000 | 48,177,000 | |||
Other deferred charges | $ 18,345,000 | 20,187,000 | $ 18,345,000 | |||
Federal | ||||||
Valuation Allowance [Line Items] | ||||||
Net operating loss carryforwards | 551,400,000 | |||||
Federal | Scenario, Adjustment | ||||||
Valuation Allowance [Line Items] | ||||||
Net operating loss carryforwards | 536,500,000 | |||||
State | ||||||
Valuation Allowance [Line Items] | ||||||
Net operating loss carryforwards | 82,600,000 | |||||
State | Scenario, Adjustment | ||||||
Valuation Allowance [Line Items] | ||||||
Net operating loss carryforwards | $ 68,700,000 |
Disclosures about Segments (F_4
Disclosures about Segments (FY) (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2019USD ($)Reportingunit | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Revenue | ||||||||||||
Electric operations | $ 311,157 | $ 312,949 | $ 1,496,736 | $ 1,181,907 | $ 1,097,632 | |||||||
Other operations | 44,908 | 39,397 | 182,832 | 82,332 | 79,580 | |||||||
Affiliate revenue | 0 | 0 | 0 | 0 | 0 | |||||||
Electric customer credits | (8,493) | (8,160) | (39,963) | (33,195) | (1,566) | |||||||
Operating revenue, net | 347,572 | $ 409,575 | $ 487,971 | $ 397,873 | 344,186 | $ 296,767 | $ 358,256 | $ 299,261 | $ 276,760 | 1,639,605 | 1,231,044 | 1,175,646 |
Depreciation and amortization | 55,873 | 49,856 | 216,320 | 170,414 | 166,854 | |||||||
Merger transaction and commitment costs | 2,775 | 4,990 | 7,668 | 19,514 | 5,152 | |||||||
Interest income | 1,157 | 1,491 | 6,090 | 6,073 | 1,424 | |||||||
Interest charges | 35,149 | 33,999 | 141,309 | 126,642 | 122,913 | |||||||
Federal and state income tax expense (benefit) | 1,562 | 5,986 | 43,165 | 29,382 | 7,079 | |||||||
Net income | 6,328 | 31,797 | $ 55,565 | $ 44,746 | 20,557 | 10,377 | $ 47,360 | $ 25,839 | $ 10,861 | 152,665 | 94,437 | 138,080 |
Additions to property, plant, and equipment | 65,624 | 83,679 | 323,791 | 291,061 | 236,932 | |||||||
Equity investment in investee | 17,072 | 17,072 | 18,172 | 17,072 | 18,172 | 18,172 | ||||||
Goodwill | 1,490,797 | 1,490,797 | 1,490,797 | 1,490,797 | 1,490,797 | 1,490,797 | ||||||
Total segment assets | 7,676,195 | 7,476,298 | 6,436,814 | $ 7,476,298 | 6,436,814 | 6,278,382 | ||||||
Cleco Power | ||||||||||||
Revenue | ||||||||||||
Number of reporting units | Reportingunit | 1 | |||||||||||
Operating Segments | Cleco Power | ||||||||||||
Revenue | ||||||||||||
Electric operations | 224,430 | 257,175 | $ 1,130,928 | 1,191,587 | 1,108,389 | |||||||
Other operations | 15,764 | 19,430 | 72,833 | 82,330 | 77,522 | |||||||
Affiliate revenue | 1,106 | 300 | 3,125 | 874 | 851 | |||||||
Electric customer credits | (8,340) | (8,160) | (38,516) | (33,195) | (1,566) | |||||||
Operating revenue, net | 232,960 | 268,745 | 1,168,370 | 1,241,596 | 1,185,196 | |||||||
Depreciation and amortization | 43,677 | 42,377 | 172,471 | 162,069 | 158,415 | |||||||
Merger transaction and commitment costs | 0 | 0 | 0 | |||||||||
Interest income | 954 | 994 | 4,744 | 5,052 | 1,283 | |||||||
Interest charges | 18,581 | 17,145 | 71,279 | 71,303 | 69,362 | |||||||
Federal and state income tax expense (benefit) | 3,338 | 7,998 | 55,924 | 67,331 | ||||||||
Net income | 11,831 | 26,712 | 148,262 | 162,257 | 150,738 | |||||||
Additions to property, plant, and equipment | 61,477 | 81,040 | 313,962 | 289,153 | 235,252 | |||||||
Equity investment in investee | 17,072 | 17,072 | 18,172 | 17,072 | 18,172 | 18,172 | ||||||
Goodwill | 1,490,797 | 1,490,797 | 1,490,797 | 1,490,797 | 1,490,797 | 1,490,797 | ||||||
Total segment assets | 6,098,446 | 5,967,327 | 5,839,853 | 5,967,327 | 5,839,853 | 5,679,538 | ||||||
Operating Segments | Cleco Cajun | ||||||||||||
Revenue | ||||||||||||
Electric operations | 375,489 | |||||||||||
Other operations | 117,468 | |||||||||||
Affiliate revenue | 108 | |||||||||||
Electric customer credits | (1,447) | |||||||||||
Operating revenue, net | 491,618 | |||||||||||
Depreciation and amortization | 35,544 | |||||||||||
Merger transaction and commitment costs | 0 | |||||||||||
Interest income | 987 | |||||||||||
Interest charges | 35 | |||||||||||
Net income | 69,411 | |||||||||||
Additions to property, plant, and equipment | 9,174 | |||||||||||
Equity investment in investee | 0 | 0 | ||||||||||
Goodwill | 0 | 0 | ||||||||||
Total segment assets | 1,011,591 | 1,011,591 | ||||||||||
Other | ||||||||||||
Revenue | ||||||||||||
Electric operations | (2,420) | (2,420) | (9,680) | (9,680) | (10,757) | |||||||
Other operations | 1 | 2 | 2 | 2 | 2,058 | |||||||
Affiliate revenue | 29,278 | 26,535 | 109,067 | 74,591 | 57,168 | |||||||
Electric customer credits | 0 | 0 | 0 | 0 | 0 | |||||||
Operating revenue, net | 26,859 | 24,117 | 99,389 | 64,913 | 48,469 | |||||||
Depreciation and amortization | 2,094 | 2,069 | 8,305 | 8,344 | 8,439 | |||||||
Merger transaction and commitment costs | 7,668 | 19,514 | 5,445 | |||||||||
Interest income | 100 | 417 | 974 | 1,338 | 316 | |||||||
Interest charges | 16,610 | 17,028 | 70,611 | 55,659 | 53,725 | |||||||
Federal and state income tax expense (benefit) | (8,197) | (5,540) | (26,541) | (60,252) | ||||||||
Net income | (25,039) | (17,210) | (65,009) | (67,819) | (12,659) | |||||||
Additions to property, plant, and equipment | 806 | 1,109 | 655 | 1,908 | 1,680 | |||||||
Equity investment in investee | 0 | 0 | 0 | 0 | 0 | 0 | ||||||
Goodwill | 0 | 0 | 0 | 0 | 0 | 0 | ||||||
Total segment assets | 616,068 | 546,096 | 633,756 | 546,096 | 633,756 | 619,943 | ||||||
Eliminations | ||||||||||||
Revenue | ||||||||||||
Electric operations | 0 | 0 | (1) | 0 | 0 | |||||||
Other operations | (1,818) | 0 | (7,471) | 0 | 0 | |||||||
Affiliate revenue | (30,545) | (26,835) | (112,300) | (75,465) | (58,019) | |||||||
Electric customer credits | 0 | 0 | 0 | 0 | 0 | |||||||
Operating revenue, net | (32,363) | (26,835) | (119,772) | (75,465) | (58,019) | |||||||
Depreciation and amortization | (1) | 0 | 0 | 1 | 0 | |||||||
Merger transaction and commitment costs | 0 | 0 | (293) | |||||||||
Interest income | (52) | (174) | (615) | (317) | (175) | |||||||
Interest charges | (52) | (174) | (616) | (320) | (174) | |||||||
Federal and state income tax expense (benefit) | 0 | (1) | (1) | 0 | ||||||||
Net income | 1 | (1) | 1 | (1) | 1 | |||||||
Additions to property, plant, and equipment | 0 | $ 0 | 0 | 0 | 0 | |||||||
Equity investment in investee | 0 | 0 | 0 | 0 | 0 | 0 | ||||||
Goodwill | 0 | 0 | 0 | 0 | 0 | 0 | ||||||
Total segment assets | $ (58,418) | $ (48,716) | $ (36,795) | $ (48,716) | $ (36,795) | $ (21,099) |
Regulation and Rates (FY) (Deta
Regulation and Rates (FY) (Details) - USD ($) | Apr. 07, 2016 | Jun. 30, 2014 | Mar. 31, 2020 | Dec. 31, 2019 | Nov. 07, 2019 | Jul. 31, 2019 | Jul. 10, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Jun. 30, 2017 |
Public Utilities, General Disclosures [Line Items] | |||||||||||
Provision for rate refund | $ 29,735,000 | $ 38,903,000 | $ 35,842,000 | ||||||||
Cleco Power | |||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||
Estimated refund for the tax-related benefits from the TCJA | 19,700,000 | 28,700,000 | |||||||||
Provision for rate refund | 28,921,000 | 38,241,000 | $ 79,200,000 | $ 79,200,000 | $ 35,842,000 | ||||||
Customer refund liability, accrued interest | 1,600,000 | 2,400,000 | |||||||||
Merger commitments | 3,900,000 | ||||||||||
Cleco Power | FERC | |||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||
Provision for rate refund | 3,500,000 | 3,500,000 | $ 3,500,000 | ||||||||
Cleco Power | FERC | Transmission return on equity | |||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||
Provision for rate refund | $ 1,000,000 | 1,000,000 | |||||||||
Cleco Power | LPSC | FRP | |||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||
Return on equity established by FERC | 10.00% | 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 | 10.90% | 10.90% | |||||||||
Return on equity for customer refund, high range | 11.75% | 11.75% | |||||||||
Cleco Power | LPSC | 2017 FRP Monitoring Report | |||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||
Provision for rate refund | $ 0 | ||||||||||
Cleco Power | LPSC | 2018 FRP Monitoring Report | |||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||
Provision for rate refund | $ 2,300,000 | ||||||||||
Cleco Power | Maximum | LPSC | FRP | |||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||
Return on equity established by FERC | 10.90% | 10.90% | |||||||||
Cleco Power | Rate credits | LPSC | |||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||
Merger commitments | $ 136,000,000 | ||||||||||
Rate credits issued to customers | 135,900,000 | ||||||||||
Cleco Power | Contributions for economic development | LPSC | |||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||
Merger commitments | $ 2,500,000 | ||||||||||
Disbursement period | 5 years | ||||||||||
Cleco Power | Economic development contribution | LPSC | |||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||
Merger commitments | $ 7,000,000 | ||||||||||
Cleco Power | Charitable contributions to be disbursed over five years | LPSC | |||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||
Merger commitments | $ 6,000,000 | ||||||||||
Disbursement period | 5 years | ||||||||||
Cleco Power | Cost savings | 2017 FRP Monitoring Report | |||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||
Provision for rate refund | 1,900,000 | ||||||||||
Cleco Power | Cost savings | 2019 FRP Monitoring Report | |||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||
Provision for rate refund | $ 2,200,000 | $ 1,200,000 | |||||||||
Cleco Power | Cost savings | LPSC | |||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||
Refunds submitted to MISO | $ 6,100,000 |
Variable Interest Entities (F_4
Variable Interest Entities (FY) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Variable Interest Entity [Line Items] | |||||
Equity investment in investee | $ 17,072 | $ 17,072 | $ 18,172 | $ 18,172 | |
Equity method investment, return of capital | 1,100 | 0 | 500 | ||
Components of equity method investments [Abstract] | |||||
Equity investment in investee | 17,072 | 17,072 | 18,172 | 18,172 | |
Cleco Power | |||||
Variable Interest Entity [Line Items] | |||||
Equity investment in investee | 17,072 | 17,072 | 18,172 | ||
Equity method investment, return of capital | 1,100 | 0 | 500 | ||
Components of equity method investments [Abstract] | |||||
Purchase price | 12,873 | 12,873 | 12,873 | ||
Cash contributions | 6,399 | 6,399 | 6,399 | ||
Dividend received | (2,200) | (2,200) | (1,100) | ||
Equity investment in investee | 17,072 | 17,072 | 18,172 | ||
Comparison of carrying amount of assets and liabilities to maximum loss exposure [Abstract] | |||||
Oxbow's net assets/liabilities | 34,145 | 34,145 | 36,345 | ||
Summarized financial information [Abstract] | |||||
Current assets | 2,239 | 4,128 | |||
Total assets | 35,341 | 38,719 | |||
Current liabilities | 1,196 | 2,374 | |||
Partners' capital | 34,145 | 34,145 | 36,345 | ||
Total liabilities and partners' capital | 35,341 | 38,719 | |||
Operating revenue | 1,882 | $ 1,958 | 8,886 | 6,992 | 4,189 |
Operating expenses | 1,882 | 1,958 | 8,886 | 6,992 | 4,189 |
Income before taxes | $ 0 | $ 0 | 0 | 0 | $ 0 |
Cleco Power | Property, plant, and equipment, net | |||||
Summarized financial information [Abstract] | |||||
Noncurrent assets | 23,738 | 25,186 | |||
Cleco Power | Other assets | |||||
Summarized financial information [Abstract] | |||||
Noncurrent assets | $ 9,364 | 9,405 | |||
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% | ||||
Comparison of carrying amount of assets and liabilities to maximum loss exposure [Abstract] | |||||
Cleco Power's 50% equity | $ 17,072 | $ 17,072 | 18,172 | ||
Cleco Power's maximum exposure to loss | $ 17,072 | $ 17,072 | $ 18,172 |
Litigation, Other Commitments_4
Litigation, Other Commitments and Contingencies, and Disclosures about Guarantees - Litigation (FY) (Details) | Jan. 01, 2020 | Mar. 07, 2018Plaintiff | Sep. 30, 2016 | Jun. 30, 2016petition | Apr. 13, 2016Claim | Mar. 31, 2018Plaintiff | Sep. 30, 2016 | Jun. 30, 2016petition | Sep. 30, 2015USD ($) | Dec. 31, 2014Claim | Nov. 30, 2014 | Nov. 30, 2013 | Dec. 31, 2016Claim | Dec. 31, 2017USD ($) | May 31, 2016 | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($)generation_unitgeneration | Nov. 07, 2019USD ($) | Sep. 27, 2019findingrecommendation | Jul. 31, 2019USD ($) | Jul. 10, 2019USD ($) | Feb. 04, 2019USD ($) | Dec. 31, 2018USD ($) | Aug. 31, 2018USD ($) | Mar. 31, 2017generation_unit |
Litigation [Line Items] | |||||||||||||||||||||||||
Provision for rate refund | $ 29,735,000 | $ 38,903,000 | $ 35,842,000 | ||||||||||||||||||||||
Accrual for various litigation matters | 5,100,000 | $ 5,000,000 | |||||||||||||||||||||||
Gulf Coast Spinning start up costs | |||||||||||||||||||||||||
Litigation [Line Items] | |||||||||||||||||||||||||
Startup costs | $ 6,500,000 | ||||||||||||||||||||||||
Gulf Coast Spinning construction of cotton spinning facility | |||||||||||||||||||||||||
Litigation [Line Items] | |||||||||||||||||||||||||
Startup costs | $ 60,000,000 | ||||||||||||||||||||||||
MISO Transmission Rates | FERC | |||||||||||||||||||||||||
Litigation [Line Items] | |||||||||||||||||||||||||
Requested rate increase | 0.50% | ||||||||||||||||||||||||
Cleco Power | |||||||||||||||||||||||||
Litigation [Line Items] | |||||||||||||||||||||||||
Number of generating units owned | generation | 10 | ||||||||||||||||||||||||
Provision for rate refund | 28,921,000 | $ 38,241,000 | $ 79,200,000 | $ 79,200,000 | $ 35,842,000 | ||||||||||||||||||||
Cleco Power | FERC | |||||||||||||||||||||||||
Litigation [Line Items] | |||||||||||||||||||||||||
Number of findings | finding | 12 | ||||||||||||||||||||||||
Number of recommendations | recommendation | 59 | ||||||||||||||||||||||||
Provision for rate refund | 3,500,000 | 3,500,000 | $ 3,500,000 | ||||||||||||||||||||||
Accrual for various litigation matters | 1,000,000 | 1,000,000 | |||||||||||||||||||||||
Cleco Power | LPSC Jan 2016 To Dec 2017 EAC Audit | |||||||||||||||||||||||||
Litigation [Line Items] | |||||||||||||||||||||||||
Environmental expenses included in audit | $ 30,700,000 | ||||||||||||||||||||||||
Cleco Power | MISO Transmission Rates | |||||||||||||||||||||||||
Litigation [Line Items] | |||||||||||||||||||||||||
Return on equity proposed/recommended | 10.38% | 10.32% | 9.70% | 10.32% | 9.70% | ||||||||||||||||||||
Cleco Power | MISO Transmission Rates | FERC | |||||||||||||||||||||||||
Litigation [Line Items] | |||||||||||||||||||||||||
Return on equity established by FERC | 12.38% | 12.38% | |||||||||||||||||||||||
Return on equity proposed/recommended | 9.88% | 9.88% | 6.68% | 6.68% | |||||||||||||||||||||
Requested rate increase | 0.50% | ||||||||||||||||||||||||
Cleco Power | LPSC 2016-2017 Fuel Audit | |||||||||||||||||||||||||
Litigation [Line Items] | |||||||||||||||||||||||||
Fuel expenses included in audit | 536,200,000 | ||||||||||||||||||||||||
Cost disallowance in audit, excluding interest | $ 0 | ||||||||||||||||||||||||
Cleco Power | LPSC Nov 2010-Dec 2015 EAC Audit | |||||||||||||||||||||||||
Litigation [Line Items] | |||||||||||||||||||||||||
Number of petitions filed with the U.S. court of appeals | petition | 6 | 6 | |||||||||||||||||||||||
Cleco Power | Transmission return on equity | FERC | |||||||||||||||||||||||||
Litigation [Line Items] | |||||||||||||||||||||||||
Provision for rate refund | $ 1,000,000 | $ 1,000,000 | |||||||||||||||||||||||
Cleco Cajun | |||||||||||||||||||||||||
Litigation [Line Items] | |||||||||||||||||||||||||
Number of generating units owned | generation_unit | 8 | ||||||||||||||||||||||||
Actions filed in the 9th Judicial District Court | Alleged Breach of Fiduciary Duties | |||||||||||||||||||||||||
Litigation [Line Items] | |||||||||||||||||||||||||
Number of actions filed | Claim | 4 | 4 | |||||||||||||||||||||||
Actions filed in the Civil District Court | Alleged Breach of Fiduciary Duties | |||||||||||||||||||||||||
Litigation [Line Items] | |||||||||||||||||||||||||
Number of actions filed | Claim | 3 | 3 | 3 | ||||||||||||||||||||||
Pending Litigation | Perry Bonin, Ace Chandler, and Michael Manuel, et al v. Sabine River Authority of Texas and Sabine River Authority of Louisiana, No. B-160173-C | |||||||||||||||||||||||||
Litigation [Line Items] | |||||||||||||||||||||||||
Number of generation units failed to repair | generation_unit | 1 | ||||||||||||||||||||||||
Number of generating units owned | generation_unit | 2 | ||||||||||||||||||||||||
Pending Litigation | Larry Addison, Et Al. V. Sabine River Authority Of Texas, Et Al | |||||||||||||||||||||||||
Litigation [Line Items] | |||||||||||||||||||||||||
Number of plaintiffs | Plaintiff | 26 | 26 | |||||||||||||||||||||||
NRG South Central | |||||||||||||||||||||||||
Litigation [Line Items] | |||||||||||||||||||||||||
Contingent liability | 10,000,000 | $ 10,000,000 | |||||||||||||||||||||||
Indemnification assets | $ 10,000,000 | ||||||||||||||||||||||||
NRG South Central | Cleco Cajun | |||||||||||||||||||||||||
Litigation [Line Items] | |||||||||||||||||||||||||
Contingent liability | 10,000,000 | ||||||||||||||||||||||||
Indemnification assets | $ 10,000,000 | ||||||||||||||||||||||||
Subsequent Event | Cleco Power | MISO Transmission Rates | |||||||||||||||||||||||||
Litigation [Line Items] | |||||||||||||||||||||||||
Return on equity proposed/recommended | 10.38% |
Litigation, Other Commitments_5
Litigation, Other Commitments and Contingencies, and Disclosures about Guarantees - Off-Balance Sheet Commitments and Guarantees (FY) (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Guarantor Obligations [Line Items] | ||
Assets held as collateral for third parties | $ 0 | $ 0 |
Performance Guarantee | ||
Guarantor Obligations [Line Items] | ||
Maximum amount of potential payment | 42,400,000 | 42,400,000 |
Indemnification Agreement | ||
Guarantor Obligations [Line Items] | ||
Maximum amount of potential payment | 40,000,000 | 40,000,000 |
Indemnification Agreement, Including Fundamental Organizational Structure | ||
Guarantor Obligations [Line Items] | ||
Maximum amount of potential payment | 400,000,000 | 400,000,000 |
Cleco Power | ||
Guarantor Obligations [Line Items] | ||
Assets held as collateral for third parties | 0 | |
Cleco Power | Indemnification Agreement | ||
Guarantor Obligations [Line Items] | ||
Maximum amount of potential payment | 40,000,000 | 40,000,000 |
Cleco Power | Indemnification Agreement, Including Fundamental Organizational Structure | ||
Guarantor Obligations [Line Items] | ||
Maximum amount of potential payment | 400,000,000 | 400,000,000 |
Cleco Power | Guarantee Issued to Entergy Mississippi on behalf of Attala | ||
Guarantor Obligations [Line Items] | ||
Maximum amount of potential payment | $ 83,000,000 | |
Letters of credit | 86,400,000 | |
Letter of Credit | Cleco Power | ||
Guarantor Obligations [Line Items] | ||
Letters of credit | $ 34,500,000 |
Litigation, Other Commitments_6
Litigation, Other Commitments and Contingencies, and Disclosures about Guarantees - Long-Term Purchase Obligations (FY) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
FUTURE PAYMENTS UNDER LONG-TERM PURCHASE OBLIGATIONS | |||
2020 | $ 89,490,000 | ||
2021 | 35,986,000 | ||
2022 | 19,311,000 | ||
2023 | 8,782,000 | ||
2024 | 9,829,000 | ||
Thereafter | 14,474,000 | ||
Total long-term purchase obligations | 177,872,000 | ||
Payments under long-term purchase obligations | 35,300,000 | $ 60,700,000 | $ 44,200,000 |
Cleco Power | |||
FUTURE PAYMENTS UNDER LONG-TERM PURCHASE OBLIGATIONS | |||
2020 | 28,741,000 | ||
2021 | 29,832,000 | ||
2022 | 18,025,000 | ||
2023 | 7,751,000 | ||
2024 | 7,740,000 | ||
Thereafter | 13,242,000 | ||
Total long-term purchase obligations | 105,331,000 | ||
Payments under long-term purchase obligations | 94,800,000 | $ 94,800,000 | $ 47,000,000 |
Cleco Holdings | Purchase of coal, petroleum coke, limestone, entergy capacity and energy delivery facilities | |||
FUTURE PAYMENTS UNDER LONG-TERM PURCHASE OBLIGATIONS | |||
Total long-term purchase obligations | $ 0 |
Affiliate Transactions (FY) (De
Affiliate Transactions (FY) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||||
Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Affiliate Transaction [Line Items] | ||||||||||||
Accounts payable - affiliate | $ 33,780,000 | $ 33,780,000 | $ 0 | $ 33,780,000 | $ 0 | |||||||
Distributions to member | 10,850,000 | $ 20,600,000 | $ 20,400,000 | $ 19,500,000 | 71,350,000 | $ 84,065,000 | ||||||
Affiliate revenue | 0 | $ 0 | 0 | 0 | 0 | |||||||
Contributions from member | 384,900,000 | 384,900,000 | ||||||||||
Cleco Cajun | Pension plan | ||||||||||||
Affiliate Transaction [Line Items] | ||||||||||||
Charges from each affiliate | 239,000 | 0 | ||||||||||
Cleco Holdings | ||||||||||||
Affiliate Transaction [Line Items] | ||||||||||||
Accounts payable - affiliate | 33,800,000 | 3,200,000 | 33,800,000 | 3,200,000 | ||||||||
Cleco Holdings | ||||||||||||
Affiliate Transaction [Line Items] | ||||||||||||
Accounts payable - affiliate | 0 | 0 | ||||||||||
Cleco Holdings | Cleco Holdings | ||||||||||||
Affiliate Transaction [Line Items] | ||||||||||||
Distributions to member | 0 | 71,400,000 | ||||||||||
Cleco Power | ||||||||||||
Affiliate Transaction [Line Items] | ||||||||||||
Accounts receivable - affiliate | 12,037,000 | 14,481,000 | 3,318,000 | 14,481,000 | 3,318,000 | |||||||
Accounts payable - affiliate | 10,486,000 | 14,123,000 | 7,843,000 | 14,123,000 | 7,843,000 | |||||||
Distributions to member | 20,000,000 | $ 0 | $ 0 | $ 0 | 0 | $ 50,400,000 | $ 43,000,000 | $ 28,000,000 | 20,000,000 | 121,400,000 | 135,000,000 | |
Affiliate revenue | 3,125,000 | 874,000 | 851,000 | |||||||||
Total | 10,745,000 | 1,966,000 | 1,345,000 | |||||||||
Cleco Power | Support Group | ||||||||||||
Affiliate Transaction [Line Items] | ||||||||||||
Accounts receivable - affiliate | 1,082,000 | 3,172,000 | 2,619,000 | 3,172,000 | 2,619,000 | |||||||
Accounts payable - affiliate | 10,197,000 | 13,890,000 | 7,755,000 | 13,890,000 | 7,755,000 | |||||||
Affiliate revenue | 3,088,000 | 874,000 | 851,000 | |||||||||
Cleco Power | Support Group | Pension plan | ||||||||||||
Affiliate Transaction [Line Items] | ||||||||||||
Charges from each affiliate | 1,316,000 | 1,963,000 | ||||||||||
Cleco Power | Support Group | Other operations and maintenance | ||||||||||||
Affiliate Transaction [Line Items] | ||||||||||||
Charges from each affiliate | 73,090,000 | 56,669,000 | 50,572,000 | |||||||||
Cleco Power | Support Group | Taxes other than income taxes | ||||||||||||
Affiliate Transaction [Line Items] | ||||||||||||
Charges from each affiliate | (73,000) | 6,000 | (13,000) | |||||||||
Cleco Power | Support Group | Other expense | ||||||||||||
Affiliate Transaction [Line Items] | ||||||||||||
Charges from each affiliate | 64,000 | 290,000 | 255,000 | |||||||||
Cleco Power | Cleco Cajun | ||||||||||||
Affiliate Transaction [Line Items] | ||||||||||||
Accounts receivable - affiliate | 535,000 | 958,000 | 0 | 958,000 | 0 | |||||||
Accounts payable - affiliate | 119,000 | 39,000 | 0 | 39,000 | 0 | |||||||
Other operations revenue | 7,471,000 | 0 | 0 | |||||||||
Affiliate revenue | 37,000 | 0 | 0 | |||||||||
Cleco Power | Cleco Holdings | ||||||||||||
Affiliate Transaction [Line Items] | ||||||||||||
Accounts receivable - affiliate | 10,420,000 | 10,351,000 | 699,000 | 10,351,000 | 699,000 | |||||||
Accounts payable - affiliate | $ 170,000 | $ 194,000 | $ 88,000 | 194,000 | 88,000 | |||||||
Distributions to member | 20,000,000 | 121,400,000 | 135,000,000 | |||||||||
Other income | 149,000 | 1,092,000 | 494,000 | |||||||||
Contributions from member | 0 | 0 | 0 | |||||||||
Cleco Power | Cleco Holdings | Other expense | ||||||||||||
Affiliate Transaction [Line Items] | ||||||||||||
Charges from each affiliate | $ 0 | $ 1,007,000 | $ 361,000 |
Intangible Assets, Intangible_4
Intangible Assets, Intangible Liabilities, and Goodwill - Narrative (FY) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||
Mar. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2008 | Aug. 01, 2019 | Mar. 31, 2019 | Feb. 04, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Acquired Finite-Lived Intangible Assets [Line Items] | |||||||||
Expected amortization in the year 2020 | $ 26,372,000 | ||||||||
Goodwill | $ 1,490,797,000 | 1,490,797,000 | $ 1,490,797,000 | $ 1,490,797,000 | |||||
Carrying value of equity | 2,649,748,000 | 2,643,006,000 | $ 2,530,062,000 | 2,124,740,000 | 2,096,357,000 | $ 2,046,763,000 | |||
Cleco Katrina/Rita | |||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||||||
Residual value | 0 | ||||||||
Cleco Power | |||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||||||
Expected amortization in the year 2020 | 500,000 | ||||||||
Impairment of goodwill | 0 | ||||||||
Equity, fair value | $ 3,970,000,000 | ||||||||
Carrying value of equity | $ 1,725,713,000 | $ 1,713,392,000 | $ 3,400,000,000 | $ 1,621,465,000 | $ 1,594,533,000 | $ 1,550,679,000 | $ 1,535,202,000 | ||
Excess of the fair value over the carrying value, percent | 16.80% | ||||||||
Excess of the fair value over the carrying value | $ 570,400,000 | ||||||||
Accumulated impairment charges | $ 0 | ||||||||
LTSA | |||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||||||
Intangible liabilities | $ 24,100,000 | ||||||||
Trade name | |||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||||||
Intangible asset expected useful life (in years) | 20 years | ||||||||
Residual value | $ 0 | ||||||||
Financing costs | Cleco Katrina/Rita | |||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||||||
Acquired intangible asset | $ 1,500,000 | ||||||||
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 | ||||||||
LTSA | |||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||||||
Intangible liabilities | 24,100,000 | ||||||||
Transmission Service Agreement | |||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||||||
Preliminary fair value of intangible liabilities | $ 14,200,000 |
Intangible Assets, Intangible_5
Intangible Assets, Intangible Liabilities, and Goodwill - Schedule of Amortization of Intangible Assets and Liabilities (FY) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Impairments for intangibles | $ 0 | $ 0 | $ 0 | ||
Cleco Katrina/Rita right to bill and collect storm recovery charges | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Amortization of intangible assets | $ 517,000 | $ 4,870,000 | |||
Trade name | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Amortization of intangible assets | 64,000 | 64,000 | |||
Power supply agreements | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Impairments for intangibles | 3,234,000 | 0 | 0 | ||
LTSA | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Impairments for intangibles | $ 3,194,000 | $ 0 | $ 0 | ||
Cleco Power | Cleco Katrina/Rita right to bill and collect storm recovery charges | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Amortization of intangible assets | $ 517,000 | $ 4,870,000 |
Intangible Assets, Intangible_6
Intangible Assets, Intangible Liabilities, and Goodwill - Intangible Assets Subject to Amortization (FY) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets, gross | $ 259,698 | $ 259,698 | $ 160,798 |
Intangible liabilities, gross | 38,300 | 38,300 | 0 |
Net intangible assets carrying amount | 221,398 | 221,398 | 160,798 |
Accumulated amortization | (120,395) | (115,167) | (76,491) |
Net intangible assets subject to amortization | 101,003 | 106,231 | 84,307 |
Cleco Katrina/Rita right to bill and collect storm recovery charges | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets, gross | 70,594 | 70,594 | |
Trade name | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets, gross | 5,100 | 5,100 | |
Power supply agreements | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible liabilities, gross | 14,200 | 0 | |
LTSA | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible liabilities, gross | 24,100 | $ 0 | |
Cleco Power | Cleco Katrina/Rita right to bill and collect storm recovery charges | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets, gross | 177,537 | 177,537 | |
LTSA | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible liabilities, gross | $ 24,100 | $ 24,100 |
Intangible Assets, Intangible_7
Intangible Assets, Intangible Liabilities, and Goodwill - Expected Amortization Expense (FY) (Details) $ in Thousands | Dec. 31, 2019USD ($) |
INTANGIBLE ASSETS | |
2020 | $ 26,372 |
2021 | 25,855 |
2022 | 25,855 |
2023 | 25,855 |
2024 | 29,459 |
Thereafter | 4,707 |
INTANGIBLE LIABILITIES | |
2020 | (7,012) |
2021 | (5,862) |
2022 | (5,041) |
2023 | (5,041) |
2024 | (5,041) |
Thereafter | $ (3,875) |
Accumulated Other Comprehensi_5
Accumulated Other Comprehensive Loss (FY) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Balances, beginning of period | $ 2,643,006,000 | $ 2,124,740,000 | $ 2,124,740,000 | $ 2,096,357,000 | $ 2,046,763,000 |
Amounts reclassified from accumulated other comprehensive loss | |||||
Reclassification of net gain to interest charges | 0 | ||||
Balances, end of period | 2,649,748,000 | 2,530,062,000 | 2,643,006,000 | 2,124,740,000 | 2,096,357,000 |
Cleco Power | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Balances, beginning of period | 1,713,392,000 | 1,594,533,000 | 1,594,533,000 | 1,550,679,000 | 1,535,202,000 |
Other comprehensive income before reclassifications | |||||
Postretirement benefit adjustments incurred during the year | (10,344,000) | 954,000 | (948,000) | ||
Amounts reclassified from accumulated other comprehensive loss | |||||
Amortization of postretirement benefit net loss | 687,000 | 1,789,000 | 476,000 | ||
Reclassification of net gain to interest charges | 254,000 | 254,000 | 211,000 | ||
Reclassification of effect of tax rate change | (2,496,000) | ||||
Balances, end of period | 1,725,713,000 | 1,621,465,000 | 1,713,392,000 | 1,594,533,000 | 1,550,679,000 |
POSTRETIREMENT BENEFIT NET GAIN (LOSS) | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Balances, beginning of period | (17,513,000) | 1,786,000 | 1,786,000 | (2,921,000) | 1,500,000 |
Other comprehensive income before reclassifications | |||||
Postretirement benefit adjustments incurred during the year | (18,877,000) | 3,681,000 | (3,898,000) | ||
Amounts reclassified from accumulated other comprehensive loss | |||||
Amortization of postretirement benefit net loss | 414,000 | (135,000) | (422,000) | 1,615,000 | (523,000) |
Reclassification of effect of tax rate change | (589,000) | ||||
Balances, end of period | (17,099,000) | 1,651,000 | (17,513,000) | 1,786,000 | (2,921,000) |
POSTRETIREMENT BENEFIT NET GAIN (LOSS) | Cleco Power | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Balances, beginning of period | (16,717,000) | (7,060,000) | (7,060,000) | (8,377,000) | (7,905,000) |
Other comprehensive income before reclassifications | |||||
Postretirement benefit adjustments incurred during the year | (10,344,000) | 954,000 | (948,000) | ||
Amounts reclassified from accumulated other comprehensive loss | |||||
Amortization of postretirement benefit net loss | 426,000 | 156,000 | 687,000 | 1,789,000 | 476,000 |
Reclassification of net gain to interest charges | 0 | 0 | |||
Reclassification of effect of tax rate change | (1,426,000) | ||||
Balances, end of period | (16,291,000) | (6,904,000) | (16,717,000) | (7,060,000) | (8,377,000) |
NET (LOSS) GAIN ON CASH FLOW HEDGES | Cleco Power | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Balances, beginning of period | (5,868,000) | (6,122,000) | (6,122,000) | (5,306,000) | (5,517,000) |
Amounts reclassified from accumulated other comprehensive loss | |||||
Reclassification of net gain to interest charges | 254,000 | 254,000 | 211,000 | ||
Reclassification of effect of tax rate change | (1,070,000) | ||||
Balances, end of period | (5,868,000) | (6,122,000) | (5,306,000) | ||
TOTAL AOCI | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Balances, beginning of period | (17,513,000) | 1,786,000 | 1,786,000 | (2,921,000) | 1,500,000 |
Amounts reclassified from accumulated other comprehensive loss | |||||
Reclassification of effect of tax rate change | (589,000) | ||||
Balances, end of period | (17,099,000) | 1,651,000 | (17,513,000) | 1,786,000 | (2,921,000) |
TOTAL AOCI | Cleco Power | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Balances, beginning of period | (22,585,000) | (13,182,000) | (13,182,000) | (13,683,000) | (13,422,000) |
Amounts reclassified from accumulated other comprehensive loss | |||||
Reclassification of effect of tax rate change | (2,496,000) | ||||
Balances, end of period | $ (22,095,000) | $ (12,962,000) | $ (22,585,000) | $ (13,182,000) | $ (13,683,000) |
Miscellaneous Financial Infor_3
Miscellaneous Financial Information (Unaudited) (FY) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||||
Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Information [Line Items] | ||||||||||||
Operating revenue, net | $ 347,572,000 | $ 409,575,000 | $ 487,971,000 | $ 397,873,000 | $ 344,186,000 | $ 296,767,000 | $ 358,256,000 | $ 299,261,000 | $ 276,760,000 | $ 1,639,605,000 | $ 1,231,044,000 | $ 1,175,646,000 |
Operating income | 54,665,000 | 75,573,000 | 101,539,000 | 87,196,000 | 50,586,000 | 50,004,000 | 86,110,000 | 63,709,000 | 44,734,000 | 314,894,000 | 244,557,000 | 265,227,000 |
Net income | $ 6,328,000 | 31,797,000 | 55,565,000 | 44,746,000 | 20,557,000 | 10,377,000 | 47,360,000 | 25,839,000 | 10,861,000 | 152,665,000 | 94,437,000 | 138,080,000 |
Distributions to member | 10,850,000 | 20,600,000 | 20,400,000 | 19,500,000 | 71,350,000 | 84,065,000 | ||||||
Cleco Power | ||||||||||||
Quarterly Information [Line Items] | ||||||||||||
Operating revenue, net | 281,676,000 | 344,977,000 | 272,972,000 | 268,745,000 | 299,409,000 | 360,899,000 | 301,901,000 | 279,387,000 | ||||
Operating income | 49,985,000 | 78,132,000 | 75,446,000 | 44,905,000 | 59,786,000 | 96,063,000 | 72,602,000 | 50,521,000 | ||||
Net income | 20,667,000 | 51,527,000 | 49,356,000 | 26,712,000 | 29,897,000 | 63,336,000 | 43,020,000 | 26,004,000 | ||||
Distributions to member | $ 20,000,000 | $ 0 | $ 0 | $ 0 | $ 0 | $ 50,400,000 | $ 43,000,000 | $ 28,000,000 | $ 20,000,000 | $ 121,400,000 | $ 135,000,000 |
Summary of Significant Accou_15
Summary of Significant Accounting Policies - Restricted Cash and Cash Equivalents (Q1) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2020 | Dec. 31, 2019 | Feb. 04, 2019 | Dec. 31, 2018 | |
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Current | $ 4,054 | $ 11,100 | $ 11,241 | |
Non-current | 9,899 | 15,203 | 18,670 | |
Total restricted cash and cash equivalents | 13,953 | 26,303 | 29,911 | |
Remaining restricted cash to be used for final administration and winding up activities | 2,600 | |||
South Central Generating | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Restricted cash acquired | $ 707 | |||
Cleco Katrina/Rita's storm recovery bonds | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Current | 2,623 | 9,632 | 9,505 | |
Charitable contributions | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Current | 1,200 | 1,200 | 1,200 | |
Non-current | 741 | 2,094 | 2,753 | |
Rate credit escrow | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Current | 231 | 268 | 536 | |
Non-current | 0 | 505 | ||
Diversified Lands' mitigation escrow | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Non-current | 23 | 21 | 21 | |
Cleco Cajun's defense fund | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Non-current | 720 | 719 | 0 | |
Cleco Cajun's margin deposits | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Non-current | 100 | 100 | 0 | |
Future storm restoration costs | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Non-current | 8,315 | 12,269 | 15,391 | |
Cleco Katrina/Rita scheduled storm recovery bond principal payments | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Payments for investment in restricted cash from pollution control bond | 11,100 | 1,500 | ||
Cleco Katrina/Rita related interest payments | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Payments for investment in restricted cash from pollution control bond | 300 | |||
Cleco Katrina/Rita administration fees | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Payments from distribution in restricted cash from pollution control bond | 4,400 | |||
Cleco Power | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Current | 4,054 | 11,100 | 11,241 | |
Non-current | 9,056 | 14,363 | 18,649 | |
Total restricted cash and cash equivalents | 13,110 | 25,463 | 29,890 | |
Cleco Power | Cleco Katrina/Rita's storm recovery bonds | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Current | 2,623 | 9,632 | 9,505 | |
Cleco Power | Charitable contributions | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Current | 1,200 | 1,200 | 1,200 | |
Non-current | 741 | 2,094 | 2,753 | |
Cleco Power | Rate credit escrow | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Current | 231 | 268 | 536 | |
Non-current | 0 | 505 | ||
Cleco Power | Future storm restoration costs | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Non-current | $ 8,315 | $ 12,269 | $ 15,391 |
Summary of Significant Accou_16
Summary of Significant Accounting Policies - Changes in Allowance for Credit Losses (Q1) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
ACCOUNTS RECEIVABLE | ||||
Balances, Dec. 31, 2019 | $ 3,005 | |||
Current period provision | 2,498 | $ 2,348 | $ 797 | $ 2,778 |
Charge-offs | (4,092) | |||
Recovery | 641 | |||
Balances, Mar. 31, 2020 | 2,123 | 3,005 | ||
OTHERS | ||||
Balances, Dec. 31, 2019 | 1,250 | |||
Current period provision | 388 | |||
Charge-offs | 0 | |||
Recovery | 0 | |||
Balances, Mar. 31, 2020 | 1,638 | 1,250 | ||
TOTAL | ||||
Balances, Dec. 31, 2019 | 4,255 | |||
Current period provision | 2,886 | |||
Charge-offs | (4,092) | |||
Recovery | 641 | |||
Balances, Mar. 31, 2020 | 3,761 | 4,255 | ||
Accounting Standards Update 2016-13 | ||||
ACCOUNTS RECEIVABLE | ||||
CECL adoption | 71 | 71 | ||
TOTAL | ||||
CECL adoption | 71 | 71 | ||
Cleco Power | ||||
ACCOUNTS RECEIVABLE | ||||
Balances, Dec. 31, 2019 | 3,005 | |||
Current period provision | 2,498 | |||
Charge-offs | (4,092) | |||
Recovery | 641 | |||
Balances, Mar. 31, 2020 | 2,123 | $ 3,005 | ||
Cleco Power | Accounting Standards Update 2016-13 | ||||
ACCOUNTS RECEIVABLE | ||||
CECL adoption | 71 | |||
TOTAL | ||||
CECL adoption | $ 71 |
Business Combinations - Narra_2
Business Combinations - Narrative (Q1) (Details) - USD ($) $ in Thousands | Feb. 04, 2019 | Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | |||||||
Electric operations | $ 311,157 | $ 312,949 | $ 1,496,736 | $ 1,181,907 | $ 1,097,632 | ||
Decrease in other operations revenue | (44,908) | (39,397) | (182,832) | (82,332) | (79,580) | ||
Depreciation and amortization | $ 55,873 | 49,856 | 216,320 | 170,414 | $ 166,854 | ||
South Central Generating | |||||||
Business Acquisition [Line Items] | |||||||
Consideration transferred | $ 962,200 | ||||||
Acquisition price | 1,000,000 | ||||||
Working capital and other adjustments | $ 37,800 | ||||||
Pro forma net income | 32,986 | 154,898 | $ 170,224 | ||||
South Central Generating | Fair Value Adjustments | |||||||
Business Acquisition [Line Items] | |||||||
Electric operations | $ 500 | ||||||
Decrease in other operations revenue | 100 | ||||||
Depreciation and amortization | $ 200 | ||||||
South Central Generating | Transaction-related expenses | |||||||
Business Acquisition [Line Items] | |||||||
Pro forma net income | $ 3,900 | $ 4,700 |
Business Combinations - Assets
Business Combinations - Assets Acquired and Liabilities Assumed (Q1) (Details) - South Central Generating $ in Thousands | Feb. 04, 2019USD ($) |
Current assets | |
Cash and cash equivalents | $ 146,494 |
Customer and other accounts receivable | 49,809 |
Energy risk management assets | 4,193 |
Other current assets | 10,056 |
Non-current assets | |
Property, plant, and equipment, net | 741,203 |
Prepayments | 36,166 |
Restricted cash and cash equivalents | 707 |
Intangible assets | 98,900 |
Other deferred charges | 133 |
Total assets acquired | 1,135,380 |
Current liabilities | |
Accounts payable | 38,478 |
Taxes payable | 723 |
Energy risk management liabilities | 241 |
Other current liabilities | 14,570 |
Non-current liabilities | |
Accumulated deferred federal and state income taxes, net | 7,165 |
Deferred lease revenue | 58,300 |
Intangible liabilities | 38,300 |
Asset retirement obligations | 15,323 |
Operating lease liabilities | 110 |
Total liabilities assumed | 173,210 |
Total purchase price consideration | 962,170 |
Fuel Inventory | |
Current assets | |
Inventory | 22,060 |
Materials and supplies | |
Current assets | |
Inventory | $ 25,659 |
Business Combinations - Measure
Business Combinations - Measurement Period Adjustments (Q1) (Details) - South Central Generating $ in Thousands | 3 Months Ended |
Jun. 30, 2019USD ($) | |
Current assets | |
Customer and other accounts receivable | $ 1,408 |
Other current assets | 56 |
Non-current assets | |
Property, plant, and equipment, net | 13,297 |
Prepayments | (56) |
Intangible assets | (3,600) |
Other deferred charges | 1 |
Current liabilities | |
Accounts payable | 3,022 |
Energy risk management liabilities | (1) |
Other current liabilities | 327 |
Non-current liabilities | |
Accumulated deferred federal and state income taxes, net | 421 |
Deferred lease revenue | (3,600) |
Intangible liabilities | 6,400 |
Asset retirement obligations | 4,534 |
Operating lease liabilities | $ 3 |
Business Combinations - Unaudit
Business Combinations - Unaudited Pro Forma Information (Q1) (Details) - South Central Generating - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Business Acquisition [Line Items] | |||
Operating revenue, net | $ 381,796 | $ 1,660,362 | $ 1,668,022 |
Net income | $ 32,986 | $ 154,898 | $ 170,224 |
Recent Authoritative Guidance_3
Recent Authoritative Guidance (Q1) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Accounting Standards Update 2016-13 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
CECL adoption | $ 71 | $ 71 |
Leases - Cottonwood Sale Leas_2
Leases - Cottonwood Sale Leaseback Agreement (Q1) (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Lessor, Lease, Description [Line Items] | ||
Fixed lease payments per year | $ 40 | |
Cottonwood Energy | ||
Lessor, Lease, Description [Line Items] | ||
Fixed lease payments per year | $ 40 |
Leases - Lease Income Under C_2
Leases - Lease Income Under Cottonwood Sale Leaseback (Q1) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Lessor, Lease, Description [Line Items] | |||
Fixed payments | $ 36,667 | ||
Variable payments | 20,415 | ||
Amortization of deferred lease liability | 8,438 | ||
Total lease income | $ 65,520 | ||
Cleco Cajun | |||
Lessor, Lease, Description [Line Items] | |||
Fixed payments | $ 10,000 | $ 6,667 | |
Variable payments | 5,566 | 3,151 | |
Amortization of deferred lease liability | 2,302 | 1,440 | |
Total lease income | $ 17,868 | $ 11,258 |
Revenue Recognition - Disaggr_2
Revenue Recognition - Disaggregation of Revenue (Q1) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | ||||||||||||
Total revenue from contracts with customers | $ 328,289 | $ 330,690 | $ 1,561,424 | $ 1,189,178 | ||||||||
Revenue unrelated to contracts with customers | ||||||||||||
Other | 19,283 | 13,496 | 78,181 | 41,866 | ||||||||
Total revenue unrelated to contracts with customers | 19,283 | 13,496 | 78,181 | 41,866 | ||||||||
Operating revenue, net | 347,572 | $ 409,575 | $ 487,971 | $ 397,873 | 344,186 | $ 296,767 | $ 358,256 | $ 299,261 | $ 276,760 | 1,639,605 | 1,231,044 | $ 1,175,646 |
Electric customer credits | 8,493 | 8,160 | 39,963 | 33,195 | 1,566 | |||||||
Lease revenue | 65,520 | |||||||||||
Deferred lease amortization | 2,301 | 1,440 | 8,439 | 0 | 0 | |||||||
Total retail revenue | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Total revenue from contracts with customers | 172,455 | 191,240 | 855,448 | 896,927 | ||||||||
Residential | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Total revenue from contracts with customers | 81,571 | 87,148 | 415,242 | 435,610 | ||||||||
Commercial | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Total revenue from contracts with customers | 61,110 | 65,380 | 289,197 | 288,791 | ||||||||
Industrial | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Total revenue from contracts with customers | 32,210 | 37,870 | 149,711 | 167,001 | ||||||||
Other retail | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Total revenue from contracts with customers | 3,461 | 3,681 | 15,046 | 15,582 | ||||||||
Surcharge | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Total revenue from contracts with customers | 2,443 | 5,321 | 22,132 | 23,138 | ||||||||
Electric customer credits | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Total revenue from contracts with customers | (8,340) | (8,160) | (35,880) | (33,195) | ||||||||
Wholesale, net | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Total revenue from contracts with customers | 128,956 | 111,317 | 591,932 | 209,918 | ||||||||
Transmission | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Total revenue from contracts with customers | 23,182 | 21,306 | 94,718 | 54,531 | ||||||||
Other | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Total revenue from contracts with customers | 3,696 | 6,827 | 19,326 | 27,802 | ||||||||
Affiliate | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Total revenue from contracts with customers | 0 | 0 | 0 | 0 | ||||||||
Cleco Power | ||||||||||||
Revenue unrelated to contracts with customers | ||||||||||||
Deferred lease amortization | 1,400 | |||||||||||
Cleco Power | Other | ||||||||||||
Revenue unrelated to contracts with customers | ||||||||||||
Other miscellaneous fee revenue | 16,100 | 18,200 | ||||||||||
Cleco Power | LCFC | ||||||||||||
Revenue unrelated to contracts with customers | ||||||||||||
Other | (2,600) | 200 | 2,600 | |||||||||
Cleco Power | Price Risk Derivative | ||||||||||||
Revenue unrelated to contracts with customers | ||||||||||||
Other | 1,400 | 4,800 | ||||||||||
Cleco Power | Price Risk Derivative | Other | ||||||||||||
Revenue unrelated to contracts with customers | ||||||||||||
Other | 12,400 | 39,300 | ||||||||||
Cleco Power | SSR | Other | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Total revenue from contracts with customers | 2,400 | 3,200 | 9,600 | |||||||||
CLECO CAJUN | ||||||||||||
Revenue unrelated to contracts with customers | ||||||||||||
Lease revenue | 9,800 | |||||||||||
Deferred lease amortization | 2,300 | 8,400 | ||||||||||
Operating Segments | Cleco Power | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Total revenue from contracts with customers | 231,554 | 266,516 | 1,155,749 | 1,199,730 | ||||||||
Revenue unrelated to contracts with customers | ||||||||||||
Other | 1,406 | 2,229 | 12,621 | 41,866 | ||||||||
Total revenue unrelated to contracts with customers | 1,406 | 2,229 | 12,621 | 41,866 | ||||||||
Operating revenue, net | 232,960 | 268,745 | 1,168,370 | 1,241,596 | 1,185,196 | |||||||
Electric customer credits | 8,340 | 8,160 | 38,516 | 33,195 | 1,566 | |||||||
Operating Segments | Cleco Power | Total retail revenue | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Total revenue from contracts with customers | 172,455 | 191,240 | 855,448 | 896,927 | ||||||||
Operating Segments | Cleco Power | Residential | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Total revenue from contracts with customers | 81,571 | 87,148 | 415,242 | 435,610 | ||||||||
Operating Segments | Cleco Power | Commercial | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Total revenue from contracts with customers | 61,110 | 65,380 | 289,197 | 288,791 | ||||||||
Operating Segments | Cleco Power | Industrial | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Total revenue from contracts with customers | 32,210 | 37,870 | 149,711 | 167,001 | ||||||||
Operating Segments | Cleco Power | Other retail | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Total revenue from contracts with customers | 3,461 | 3,681 | 15,046 | 15,582 | ||||||||
Operating Segments | Cleco Power | Surcharge | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Total revenue from contracts with customers | 2,443 | 5,321 | 22,132 | 23,138 | ||||||||
Operating Segments | Cleco Power | Electric customer credits | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Total revenue from contracts with customers | (8,340) | (8,160) | (35,880) | (33,195) | ||||||||
Operating Segments | Cleco Power | Wholesale, net | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Total revenue from contracts with customers | 42,229 | 55,546 | 226,978 | 219,598 | ||||||||
Operating Segments | Cleco Power | Transmission | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Total revenue from contracts with customers | 12,069 | 12,579 | 50,874 | 54,531 | ||||||||
Revenue unrelated to contracts with customers | ||||||||||||
Electric customer credits | 2,600 | |||||||||||
Operating Segments | Cleco Power | Other | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Total revenue from contracts with customers | 3,695 | 6,851 | 19,324 | 27,800 | ||||||||
Revenue unrelated to contracts with customers | ||||||||||||
Other miscellaneous fee revenue | 3,700 | 4,400 | ||||||||||
Operating Segments | Cleco Power | Affiliate | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Total revenue from contracts with customers | 1,106 | 300 | 3,125 | 874 | ||||||||
Operating Segments | CLECO CAJUN | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Total revenue from contracts with customers | 102,239 | 66,892 | 426,058 | |||||||||
Revenue unrelated to contracts with customers | ||||||||||||
Other | 17,877 | 11,267 | 65,560 | |||||||||
Total revenue unrelated to contracts with customers | 17,877 | 11,267 | 65,560 | |||||||||
Operating revenue, net | 120,116 | 78,159 | 491,618 | |||||||||
Electric customer credits | 153 | 0 | ||||||||||
Lease revenue | 15,600 | 57,100 | ||||||||||
Operating Segments | CLECO CAJUN | Total retail revenue | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Total revenue from contracts with customers | 0 | 0 | 0 | |||||||||
Operating Segments | CLECO CAJUN | Residential | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Total revenue from contracts with customers | 0 | 0 | 0 | |||||||||
Operating Segments | CLECO CAJUN | Commercial | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Total revenue from contracts with customers | 0 | 0 | 0 | |||||||||
Operating Segments | CLECO CAJUN | Industrial | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Total revenue from contracts with customers | 0 | 0 | 0 | |||||||||
Operating Segments | CLECO CAJUN | Other retail | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Total revenue from contracts with customers | 0 | 0 | 0 | |||||||||
Operating Segments | CLECO CAJUN | Surcharge | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Total revenue from contracts with customers | 0 | 0 | 0 | |||||||||
Operating Segments | CLECO CAJUN | Electric customer credits | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Total revenue from contracts with customers | 0 | 0 | 0 | |||||||||
Operating Segments | CLECO CAJUN | Wholesale, net | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Total revenue from contracts with customers | 89,147 | 58,191 | 374,635 | |||||||||
Revenue unrelated to contracts with customers | ||||||||||||
Electric customer credits | 800 | |||||||||||
Operating Segments | CLECO CAJUN | Transmission | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Total revenue from contracts with customers | 12,931 | 8,727 | 51,315 | |||||||||
Revenue unrelated to contracts with customers | ||||||||||||
Electric customer credits | 200 | 700 | ||||||||||
Operating Segments | CLECO CAJUN | Other | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Total revenue from contracts with customers | 0 | (26) | 0 | |||||||||
Operating Segments | CLECO CAJUN | Affiliate | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Total revenue from contracts with customers | 161 | 0 | 108 | |||||||||
OTHER | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Total revenue from contracts with customers | 26,859 | 24,117 | 99,389 | 64,913 | ||||||||
Revenue unrelated to contracts with customers | ||||||||||||
Other | 0 | 0 | 0 | 0 | ||||||||
Total revenue unrelated to contracts with customers | 0 | 0 | 0 | 0 | ||||||||
Operating revenue, net | 26,859 | 24,117 | 99,389 | 64,913 | 48,469 | |||||||
Electric customer credits | 0 | 0 | 0 | 0 | 0 | |||||||
OTHER | Total retail revenue | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Total revenue from contracts with customers | 0 | 0 | 0 | 0 | ||||||||
OTHER | Residential | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Total revenue from contracts with customers | 0 | 0 | 0 | 0 | ||||||||
OTHER | Commercial | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Total revenue from contracts with customers | 0 | 0 | 0 | 0 | ||||||||
OTHER | Industrial | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Total revenue from contracts with customers | 0 | 0 | 0 | 0 | ||||||||
OTHER | Other retail | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Total revenue from contracts with customers | 0 | 0 | 0 | 0 | ||||||||
OTHER | Surcharge | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Total revenue from contracts with customers | 0 | 0 | 0 | 0 | ||||||||
OTHER | Electric customer credits | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Total revenue from contracts with customers | 0 | 0 | 0 | 0 | ||||||||
OTHER | Wholesale, net | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Total revenue from contracts with customers | (2,420) | (2,420) | (9,680) | (9,680) | ||||||||
OTHER | Transmission | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Total revenue from contracts with customers | 0 | 0 | 0 | 0 | ||||||||
OTHER | Other | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Total revenue from contracts with customers | 1 | 2 | 2 | 2 | ||||||||
OTHER | Affiliate | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Total revenue from contracts with customers | 29,278 | 26,535 | 109,067 | 74,591 | ||||||||
ELIMINATIONS | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Total revenue from contracts with customers | (32,363) | (26,835) | (119,772) | (75,465) | ||||||||
Revenue unrelated to contracts with customers | ||||||||||||
Other | 0 | 0 | 0 | 0 | ||||||||
Total revenue unrelated to contracts with customers | 0 | 0 | 0 | 0 | ||||||||
Operating revenue, net | (32,363) | (26,835) | (119,772) | (75,465) | (58,019) | |||||||
Electric customer credits | 0 | 0 | 0 | 0 | $ 0 | |||||||
ELIMINATIONS | Total retail revenue | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Total revenue from contracts with customers | 0 | 0 | 0 | 0 | ||||||||
ELIMINATIONS | Residential | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Total revenue from contracts with customers | 0 | 0 | 0 | 0 | ||||||||
ELIMINATIONS | Commercial | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Total revenue from contracts with customers | 0 | 0 | 0 | 0 | ||||||||
ELIMINATIONS | Industrial | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Total revenue from contracts with customers | 0 | 0 | 0 | 0 | ||||||||
ELIMINATIONS | Other retail | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Total revenue from contracts with customers | 0 | 0 | 0 | 0 | ||||||||
ELIMINATIONS | Surcharge | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Total revenue from contracts with customers | 0 | 0 | 0 | 0 | ||||||||
ELIMINATIONS | Electric customer credits | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Total revenue from contracts with customers | 0 | 0 | 0 | 0 | ||||||||
ELIMINATIONS | Wholesale, net | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Total revenue from contracts with customers | 0 | 0 | (1) | 0 | ||||||||
ELIMINATIONS | Transmission | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Total revenue from contracts with customers | (1,818) | 0 | (7,471) | 0 | ||||||||
ELIMINATIONS | Other | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Total revenue from contracts with customers | 0 | 0 | 0 | 0 | ||||||||
ELIMINATIONS | Affiliate | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Total revenue from contracts with customers | $ (30,545) | $ (26,835) | $ (112,300) | $ (75,465) |
Revenue Recognition - Narrati_2
Revenue Recognition - Narrative (Q1) (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Revenue from Contract with Customer [Abstract] | ||
Unsatisfied performance obligations | $ 80.7 | $ 30.8 |
Minimum | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Unsatisfied performance obligation durations | 1 year | |
Maximum | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Unsatisfied performance obligation durations | 15 years | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-04-01 | Minimum | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Unsatisfied performance obligation durations | 1 year | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-04-01 | Maximum | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Unsatisfied performance obligation durations | 15 years |
Regulatory Assets and Liabili_8
Regulatory Assets and Liabilities - Schedule of Regulatory Liabilities (Q1) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Regulatory Liabilities [Line Items] | |||
Total regulatory assets, net | $ 300,087 | $ 311,525 | $ 307,374 |
Cleco Power | |||
Regulatory Liabilities [Line Items] | |||
Regulatory liabilities | (4,700) | ||
Regulatory assets | 1,000 | ||
Total regulatory assets, net | 144,727 | 152,549 | 134,755 |
Cleco Power | Deferred taxes, net | |||
Regulatory Liabilities [Line Items] | |||
Regulatory liabilities | (146,225) | (146,948) | $ (155,537) |
Cleco Power | Corporate franchise tax, net | |||
Regulatory Liabilities [Line Items] | |||
Regulatory liabilities | (1,145) | (1,145) | |
Cleco Power | Other, net | |||
Regulatory Liabilities [Line Items] | |||
Regulatory liabilities | $ (1,039) | $ (4,543) |
Regulatory Assets and Liabili_9
Regulatory Assets and Liabilities - Schedule of Regulatory Assets (Q1) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Regulatory Assets and Liabilities [Line Items] | |||
Total regulatory assets, net | $ 300,087 | $ 311,525 | $ 307,374 |
Fair value of long-term debt | |||
Regulatory Assets and Liabilities [Line Items] | |||
Regulatory assets | 125,105 | 127,977 | 138,701 |
Postretirement costs | |||
Regulatory Assets and Liabilities [Line Items] | |||
Regulatory assets | 16,902 | 17,399 | 19,387 |
Financing costs | |||
Regulatory Assets and Liabilities [Line Items] | |||
Regulatory assets | 7,849 | 7,935 | 8,279 |
Debt issuance costs | |||
Regulatory Assets and Liabilities [Line Items] | |||
Regulatory assets | 5,504 | 5,665 | 6,252 |
Cleco Power | |||
Regulatory Assets and Liabilities [Line Items] | |||
Regulatory assets | 1,000 | ||
Regulatory Liabilities | (4,700) | ||
Total regulatory assets, net | 144,727 | 152,549 | 134,755 |
Cleco Power | Interest costs | |||
Regulatory Assets and Liabilities [Line Items] | |||
Regulatory assets | 3,896 | 3,958 | 4,208 |
Cleco Power | AROs | |||
Regulatory Assets and Liabilities [Line Items] | |||
Regulatory assets | 3,815 | 3,668 | 3,099 |
Cleco Power | Postretirement costs | |||
Regulatory Assets and Liabilities [Line Items] | |||
Regulatory assets | 147,889 | 151,543 | 140,245 |
Cleco Power | Tree trimming costs | |||
Regulatory Assets and Liabilities [Line Items] | |||
Regulatory assets | 11,384 | 11,341 | 9,069 |
Cleco Power | Training costs | |||
Regulatory Assets and Liabilities [Line Items] | |||
Regulatory assets | 6,202 | 6,241 | 6,396 |
Cleco Power | Surcredits, net | |||
Regulatory Assets and Liabilities [Line Items] | |||
Regulatory assets | 72 | 145 | 289 |
Cleco Power | AMI deferred revenue requirement | |||
Regulatory Assets and Liabilities [Line Items] | |||
Regulatory assets | 3,000 | 3,136 | 3,681 |
Cleco Power | Emergency declarations | |||
Regulatory Assets and Liabilities [Line Items] | |||
Regulatory assets | 948 | 1,349 | 2,980 |
Cleco Power | Production operations and maintenance expenses | |||
Regulatory Assets and Liabilities [Line Items] | |||
Regulatory assets | 6,756 | 7,985 | 12,245 |
Cleco Power | AFUDC equity gross-up | |||
Regulatory Assets and Liabilities [Line Items] | |||
Regulatory assets | 71,992 | 72,766 | 71,952 |
Cleco Power | Acquisition/ transaction costs | |||
Regulatory Assets and Liabilities [Line Items] | |||
Regulatory assets | 2,098 | 2,124 | 2,230 |
Cleco Power | Acquisition/ transaction costs | Coughlin transaction costs | |||
Regulatory Assets and Liabilities [Line Items] | |||
Regulatory assets | 899 | 906 | 938 |
Cleco Power | Financing costs | |||
Regulatory Assets and Liabilities [Line Items] | |||
Regulatory assets | 7,461 | 7,554 | 7,923 |
Cleco Power | Non-service cost of postretirement benefits | |||
Regulatory Assets and Liabilities [Line Items] | |||
Regulatory assets | 7,551 | 6,739 | 4,629 |
Cleco Power | Energy efficiency | |||
Regulatory Assets and Liabilities [Line Items] | |||
Regulatory assets | 2,820 | 2,820 | 2,585 |
Cleco Power | Accumulated deferred fuel | |||
Regulatory Assets and Liabilities [Line Items] | |||
Regulatory assets | $ 16,353 | $ 22,910 | $ 20,112 |
Fair Value Accounting - Carry_2
Fair Value Accounting - Carrying Value and Estimated Fair Value (Q1) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Deferred debt issuance costs not included in the carrying value of long-term debt | $ 13,200 | $ 13,700 | $ 10,300 |
CARRYING VALUE | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt | 3,174,821 | 3,188,664 | 2,889,631 |
FAIR VALUE | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt | 3,295,214 | 3,371,915 | 2,859,924 |
Cleco Power | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Deferred debt issuance costs not included in the carrying value of long-term debt | 7,200 | 7,400 | 8,300 |
Cleco Power | CARRYING VALUE | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt | 1,369,716 | 1,380,688 | 1,400,930 |
Cleco Power | FAIR VALUE | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt | $ 1,696,053 | $ 1,601,865 | $ 1,517,152 |
Fair Value Accounting - Fair _4
Fair Value Accounting - Fair Value of Financial Assets and Liabilities Measured On A Recurring Basis (Q1) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Asset description | |||
Institutional money market funds | $ 129,643 | $ 133,722 | |
Total assets | 136,666 | 157,077 | |
Liability description | |||
Total liabilities | 6,417 | 468 | |
FTRs | |||
Asset description | |||
FTRs and other commodity derivatives | 6,822 | 23,355 | |
Liability description | |||
FTRs and other commodity derivatives | 1,044 | 468 | |
Other commodity derivatives | |||
Asset description | |||
FTRs and other commodity derivatives | 201 | 0 | |
Liability description | |||
FTRs and other commodity derivatives | 5,373 | 0 | |
QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) | |||
Asset description | |||
Institutional money market funds | 0 | 0 | |
Total assets | 0 | 0 | |
Liability description | |||
Total liabilities | 0 | 0 | |
QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) | FTRs | |||
Asset description | |||
FTRs and other commodity derivatives | 0 | 0 | |
Liability description | |||
FTRs and other commodity derivatives | 0 | 0 | |
QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) | Other commodity derivatives | |||
Asset description | |||
FTRs and other commodity derivatives | 0 | 0 | |
Liability description | |||
FTRs and other commodity derivatives | 0 | 0 | |
SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) | |||
Asset description | |||
Institutional money market funds | 129,643 | 133,722 | |
Total assets | 129,844 | 133,722 | |
Liability description | |||
Total liabilities | 5,373 | 0 | |
SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) | FTRs | |||
Asset description | |||
FTRs and other commodity derivatives | 0 | 0 | |
Liability description | |||
FTRs and other commodity derivatives | 0 | 0 | |
SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) | Other commodity derivatives | |||
Asset description | |||
FTRs and other commodity derivatives | 201 | 0 | |
Liability description | |||
FTRs and other commodity derivatives | 5,373 | 0 | |
SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | |||
Asset description | |||
Institutional money market funds | 0 | 0 | |
Total assets | 6,822 | 23,355 | |
Liability description | |||
Total liabilities | 1,044 | 468 | |
SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | FTRs | |||
Asset description | |||
FTRs and other commodity derivatives | 6,822 | 23,355 | |
Liability description | |||
FTRs and other commodity derivatives | 1,044 | 468 | |
SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | Other commodity derivatives | |||
Asset description | |||
FTRs and other commodity derivatives | 0 | 0 | |
Liability description | |||
FTRs and other commodity derivatives | 0 | 0 | |
Measured On A Recurring Basis | |||
Asset description | |||
Institutional money market funds | $ 352,549 | 129,643 | |
Total assets | 354,541 | 136,666 | |
Liability description | |||
Total liabilities | 13,177 | 6,417 | |
Measured On A Recurring Basis | FTRs | |||
Asset description | |||
FTRs and other commodity derivatives | 1,779 | 6,822 | |
Liability description | |||
FTRs and other commodity derivatives | 683 | 1,044 | |
Measured On A Recurring Basis | Other commodity derivatives | |||
Asset description | |||
FTRs and other commodity derivatives | 213 | 201 | |
Liability description | |||
FTRs and other commodity derivatives | 12,494 | 5,373 | |
Measured On A Recurring Basis | QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) | |||
Asset description | |||
Institutional money market funds | 0 | 0 | |
Total assets | 0 | 0 | |
Liability description | |||
Total liabilities | 0 | 0 | |
Measured On A Recurring Basis | QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) | FTRs | |||
Asset description | |||
FTRs and other commodity derivatives | 0 | 0 | |
Liability description | |||
FTRs and other commodity derivatives | 0 | 0 | |
Measured On A Recurring Basis | QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) | Other commodity derivatives | |||
Asset description | |||
FTRs and other commodity derivatives | 0 | 0 | |
Liability description | |||
FTRs and other commodity derivatives | 0 | 0 | |
Measured On A Recurring Basis | SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) | |||
Asset description | |||
Institutional money market funds | 352,549 | 129,643 | |
Total assets | 352,762 | 129,844 | |
Liability description | |||
Total liabilities | 12,494 | 5,373 | |
Measured On A Recurring Basis | SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) | FTRs | |||
Asset description | |||
FTRs and other commodity derivatives | 0 | 0 | |
Liability description | |||
FTRs and other commodity derivatives | 0 | 0 | |
Measured On A Recurring Basis | SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) | Other commodity derivatives | |||
Asset description | |||
FTRs and other commodity derivatives | 213 | 201 | |
Liability description | |||
FTRs and other commodity derivatives | 12,494 | 5,373 | |
Measured On A Recurring Basis | SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | |||
Asset description | |||
Institutional money market funds | 0 | 0 | |
FTRs and other commodity derivatives | 1,779 | 6,822 | 23,355 |
Total assets | 1,779 | 6,822 | |
Liability description | |||
FTRs and other commodity derivatives | 683 | 1,044 | 468 |
Total liabilities | 683 | 1,044 | |
Measured On A Recurring Basis | SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | FTRs | |||
Asset description | |||
FTRs and other commodity derivatives | 1,779 | 6,822 | |
Liability description | |||
FTRs and other commodity derivatives | 683 | 1,044 | |
Measured On A Recurring Basis | SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | Other commodity derivatives | |||
Asset description | |||
FTRs and other commodity derivatives | 0 | 0 | |
Liability description | |||
FTRs and other commodity derivatives | 0 | 0 | |
Cleco Power | |||
Asset description | |||
Institutional money market funds | 74,903 | 55,900 | |
Total assets | 81,214 | 79,255 | |
Liability description | |||
Total liabilities | 586 | 468 | |
Cleco Power | FTRs | |||
Asset description | |||
FTRs and other commodity derivatives | 6,311 | 23,355 | |
Liability description | |||
FTRs and other commodity derivatives | 586 | 468 | |
Cleco Power | QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) | |||
Asset description | |||
Institutional money market funds | 0 | 0 | |
Total assets | 0 | 0 | |
Liability description | |||
Total liabilities | 0 | 0 | |
Cleco Power | QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) | FTRs | |||
Asset description | |||
FTRs and other commodity derivatives | 0 | 0 | |
Liability description | |||
FTRs and other commodity derivatives | 0 | 0 | |
Cleco Power | SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) | |||
Asset description | |||
Institutional money market funds | 74,903 | 55,900 | |
Total assets | 74,903 | 55,900 | |
Liability description | |||
Total liabilities | 0 | 0 | |
Cleco Power | SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) | FTRs | |||
Asset description | |||
FTRs and other commodity derivatives | 0 | 0 | |
Liability description | |||
FTRs and other commodity derivatives | 0 | 0 | |
Cleco Power | SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | |||
Asset description | |||
Institutional money market funds | 0 | 0 | |
Total assets | 6,311 | 23,355 | |
Liability description | |||
Total liabilities | 586 | 468 | |
Cleco Power | SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | FTRs | |||
Asset description | |||
FTRs and other commodity derivatives | 6,311 | 23,355 | |
Liability description | |||
FTRs and other commodity derivatives | 586 | 468 | |
Cleco Power | Measured On A Recurring Basis | |||
Asset description | |||
Institutional money market funds | 198,006 | 74,903 | |
FTRs and other commodity derivatives | 1,673 | 6,311 | |
Total assets | 199,679 | 81,214 | |
Liability description | |||
FTRs and other commodity derivatives | 524 | 586 | |
Total liabilities | 524 | 586 | |
Cleco Power | Measured On A Recurring Basis | QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) | |||
Asset description | |||
Institutional money market funds | 0 | 0 | |
FTRs and other commodity derivatives | 0 | 0 | |
Total assets | 0 | 0 | |
Liability description | |||
FTRs and other commodity derivatives | 0 | 0 | |
Total liabilities | 0 | 0 | |
Cleco Power | Measured On A Recurring Basis | SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) | |||
Asset description | |||
Institutional money market funds | 198,006 | 74,903 | |
FTRs and other commodity derivatives | 0 | 0 | |
Total assets | 198,006 | 74,903 | |
Liability description | |||
FTRs and other commodity derivatives | 0 | 0 | |
Total liabilities | 0 | 0 | |
Cleco Power | Measured On A Recurring Basis | SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | |||
Asset description | |||
Institutional money market funds | 0 | 0 | |
FTRs and other commodity derivatives | 1,673 | 6,311 | 23,355 |
Total assets | 1,673 | 6,311 | |
Liability description | |||
FTRs and other commodity derivatives | 524 | 586 | $ 468 |
Total liabilities | $ 524 | $ 586 |
Fair Value Accounting - Net Cha
Fair Value Accounting - Net Changes in Net Fair Value of FTR Assets and Liabilities Classified as Level 3 (Q1) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Beginning balance | $ 5,778 | $ 22,887 | $ 22,887 | $ 7,044 |
Unrealized (losses) gains | (1,659) | 11,865 | ||
Purchases | 27,881 | 28,185 | ||
Settlements | (43,331) | (24,207) | ||
Ending balance | 5,778 | 22,887 | ||
Price Risk Derivative | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Beginning balance | 5,778 | 22,887 | 22,887 | |
Unrealized (losses) gains | (1,398) | (1,917) | ||
Purchases | 466 | 5,237 | ||
Settlements | (3,750) | (18,397) | ||
Ending balance | 1,096 | 7,810 | 5,778 | 22,887 |
Cleco Power | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Beginning balance | 5,725 | 22,887 | 22,887 | 7,044 |
Unrealized (losses) gains | (945) | 11,865 | ||
Purchases | 21,609 | 28,185 | ||
Settlements | (37,826) | (24,207) | ||
Ending balance | 5,725 | 22,887 | ||
Cleco Power | Price Risk Derivative | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Beginning balance | 5,725 | 22,887 | 22,887 | |
Unrealized (losses) gains | (1,311) | (2,939) | ||
Purchases | 466 | 1,286 | ||
Settlements | (3,731) | (16,422) | ||
Ending balance | $ 1,149 | $ 4,812 | $ 5,725 | $ 22,887 |
Fair Value Accounting - Signifi
Fair Value Accounting - Significant Unobservable Inputs Used in Developing Fair Value of Level 3 Positions (Q1) (Details) $ in Thousands | Mar. 31, 2020USD ($)$ / MW | Dec. 31, 2019USD ($)$ / MW | Dec. 31, 2018USD ($)$ / MW |
Minimum | |||
FAIR VALUE | |||
FORWARD PRICE RANGE (usd per mwh) | $ / MW | (1.40) | (2.57) | (4.40) |
Maximum | |||
FAIR VALUE | |||
FORWARD PRICE RANGE (usd per mwh) | $ / MW | 2.93 | 2.86 | 15.10 |
Measured On A Recurring Basis | Level 3 | |||
FAIR VALUE | |||
Assets | $ 1,779 | $ 6,822 | $ 23,355 |
Liabilities | $ 683 | $ 1,044 | $ 468 |
Cleco Power | Minimum | |||
FAIR VALUE | |||
FORWARD PRICE RANGE (usd per mwh) | $ / MW | (1.40) | (2.04) | (4.40) |
Cleco Power | Maximum | |||
FAIR VALUE | |||
FORWARD PRICE RANGE (usd per mwh) | $ / MW | 2.93 | 2.86 | 15.10 |
Cleco Power | Measured On A Recurring Basis | |||
FAIR VALUE | |||
Assets | $ 1,673 | $ 6,311 | |
Liabilities | 524 | 586 | |
Cleco Power | Measured On A Recurring Basis | Level 3 | |||
FAIR VALUE | |||
Assets | 1,673 | 6,311 | $ 23,355 |
Liabilities | $ 524 | $ 586 | $ 468 |
Fair Value Accounting - Institu
Fair Value Accounting - Institutional Money Market Funds (Q1) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | |||
Cash and cash equivalents | $ 338,611 | $ 103,400 | $ 103,800 |
Current restricted cash and cash equivalents | |||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | |||
Restricted cash and cash equivalents | 4,054 | 11,100 | 11,200 |
Non-current restricted cash and cash equivalents | |||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | |||
Restricted cash and cash equivalents | 9,883 | 15,100 | 19,000 |
Cleco Power | |||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | |||
Cash and cash equivalents | 184,911 | 49,500 | 26,100 |
Cleco Power | Current restricted cash and cash equivalents | |||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | |||
Restricted cash and cash equivalents | 4,054 | 11,100 | 11,200 |
Cleco Power | Non-current restricted cash and cash equivalents | |||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | |||
Restricted cash and cash equivalents | $ 9,041 | $ 14,300 | $ 18,600 |
Fair Value Accounting - Fair _5
Fair Value Accounting - Fair Value of Derivative Instruments as Recorded in Condensed Consolidated Balance Sheets (Q1) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Commodity-related contracts | |||
Commodity-related contracts, net | $ 606 | $ 22,887 | |
Derivatives Not Designated as Hedging Instrument | |||
Commodity-related contracts | |||
Commodity-related contracts, net | $ (11,185) | 606 | |
Derivatives Not Designated as Hedging Instrument | Price Risk Derivative | |||
Commodity-related contracts | |||
Energy risk management assets | 1,779 | 6,822 | |
Energy risk management liabilities | (683) | (1,044) | |
Derivatives Not Designated as Hedging Instrument | Other commodity derivatives | |||
Commodity-related contracts | |||
Energy risk management assets | 213 | 201 | |
Energy risk management liabilities | (9,014) | (3,069) | |
Other deferred credits | (3,480) | (2,304) | |
Cleco Power | |||
Commodity-related contracts | |||
Commodity-related contracts, net | 5,725 | $ 22,887 | |
Cleco Power | Derivatives Not Designated as Hedging Instrument | Price Risk Derivative | |||
Commodity-related contracts | |||
Energy risk management assets | 1,673 | 6,311 | |
Energy risk management liabilities | (524) | (586) | |
Commodity-related contracts, net | $ 1,149 | $ 5,725 |
Fair Value Accounting - Amount
Fair Value Accounting - Amount of Gain (Loss) Recognized in Income on Derivatives (Q1) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Commodity-related contracts | |||||
Net gain (loss) recognized in income on derivatives | $ (7,814) | $ 35,093 | $ 18,317 | ||
Accumulated deferred fuel | |||||
Commodity-related contracts | |||||
Unrealized losses associated with FTRs | 1,700 | (11,900) | 1,400 | ||
Electric operations | |||||
Commodity-related contracts | |||||
Gain recognized in income on derivatives | 13,043 | 39,659 | 23,826 | ||
Purchased power | |||||
Commodity-related contracts | |||||
Loss recognized in income on derivatives | (15,685) | (4,566) | (5,509) | ||
Fuel used for electric generation | |||||
Commodity-related contracts | |||||
Loss recognized in income on derivatives | (5,172) | 0 | 0 | ||
Derivatives Not Designated as Hedging Instrument | Price Risk Derivative | |||||
Commodity-related contracts | |||||
Net gain (loss) recognized in income on derivatives | $ (6,093) | $ 1,885 | |||
Derivatives Not Designated as Hedging Instrument | Price Risk Derivative | Accumulated deferred fuel | |||||
Commodity-related contracts | |||||
Unrealized losses associated with FTRs | 1,300 | 2,900 | |||
Derivatives Not Designated as Hedging Instrument | Price Risk Derivative | Electric operations | |||||
Commodity-related contracts | |||||
Gain recognized in income on derivatives | 1,396 | 5,209 | |||
Derivatives Not Designated as Hedging Instrument | Price Risk Derivative | Purchased power | |||||
Commodity-related contracts | |||||
Loss recognized in income on derivatives | (381) | (3,324) | |||
Derivatives Not Designated as Hedging Instrument | Price Risk Derivative | Fuel used for electric generation | |||||
Commodity-related contracts | |||||
Loss recognized in income on derivatives | (7,108) | 0 | |||
Cleco Power | |||||
Commodity-related contracts | |||||
Net gain (loss) recognized in income on derivatives | 6,981 | 35,093 | 18,317 | ||
Cleco Power | Accumulated deferred fuel | |||||
Commodity-related contracts | |||||
Unrealized losses associated with FTRs | 900 | (11,900) | 1,400 | ||
Cleco Power | Electric operations | |||||
Commodity-related contracts | |||||
Gain recognized in income on derivatives | 13,047 | 39,659 | 23,826 | ||
Cleco Power | Purchased power | |||||
Commodity-related contracts | |||||
Loss recognized in income on derivatives | $ (6,066) | $ (4,566) | $ (5,509) | ||
Cleco Power | Derivatives Not Designated as Hedging Instrument | Price Risk Derivative | |||||
Commodity-related contracts | |||||
Net gain (loss) recognized in income on derivatives | 645 | 3,223 | |||
Cleco Power | Derivatives Not Designated as Hedging Instrument | Price Risk Derivative | Accumulated deferred fuel | |||||
Commodity-related contracts | |||||
Unrealized losses associated with FTRs | 1,300 | 2,900 | |||
Cleco Power | Derivatives Not Designated as Hedging Instrument | Price Risk Derivative | Electric operations | |||||
Commodity-related contracts | |||||
Gain recognized in income on derivatives | 1,396 | 5,206 | |||
Cleco Power | Derivatives Not Designated as Hedging Instrument | Price Risk Derivative | Purchased power | |||||
Commodity-related contracts | |||||
Loss recognized in income on derivatives | $ (751) | $ (1,983) |
Fair Value Accounting - Narra_2
Fair Value Accounting - Narrative (Q1) (Details) MWh in Millions | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2020MMBTU | Mar. 31, 2020MWh | Dec. 31, 2019MMBTU | Dec. 31, 2019MWh | Dec. 31, 2018MWh | |
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | |||||
Volume outstanding | 54,800,000 | 5.4 | 58.5 | 14.6 | 8.7 |
Cleco Power | |||||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | |||||
Volume outstanding | 3.4 | 9.2 | 8.7 |
Debt (Q1) (Details)
Debt (Q1) (Details) - USD ($) | Mar. 02, 2020 | Mar. 31, 2020 | Mar. 31, 2019 | May 01, 2020 | Dec. 31, 2019 |
Debt [Line Items] | |||||
Final principal payment | $ 11,055,000 | $ 10,382,000 | |||
Cleco Katrina/Rita's storm recovery bonds | |||||
Debt [Line Items] | |||||
Final principal payment | $ 11,100,000 | ||||
Cleco Power | |||||
Debt [Line Items] | |||||
Final principal payment | $ 11,055,000 | $ 10,382,000 | |||
Cleco Power | 2008 series A GO Zone bonds | |||||
Debt [Line Items] | |||||
Debt instrument, interest rate | 2.00% | ||||
Cleco Power | Line of credit | |||||
Debt [Line Items] | |||||
Debt instrument, interest rate | 1.875% | ||||
Borrowings outstanding | $ 150,000,000 | ||||
Commitment fees | 0.125% | ||||
Maximum borrowing capacity | $ 300,000,000 | ||||
Cleco Power | Line of credit | LIBOR | |||||
Debt [Line Items] | |||||
Basis spread on variable rate | 1.125% | ||||
Cleco Power | Line of credit | ABR | |||||
Debt [Line Items] | |||||
Basis spread on variable rate | 0.125% | ||||
Cleco Holdings | Line of credit | |||||
Debt [Line Items] | |||||
Debt instrument, interest rate | 2.50% | ||||
Borrowings outstanding | $ 88,000,000 | ||||
Commitment fees | 0.275% | ||||
Maximum borrowing capacity | $ 175,000,000 | ||||
Cleco Holdings | Line of credit | LIBOR | |||||
Debt [Line Items] | |||||
Basis spread on variable rate | 1.75% | ||||
Cleco Holdings | Line of credit | ABR | |||||
Debt [Line Items] | |||||
Basis spread on variable rate | 0.75% | ||||
Subsequent Event | Cleco Power | 2008 series A GO Zone bonds | |||||
Debt [Line Items] | |||||
Aggregate principal amount | $ 50,000,000 | ||||
Debt instrument, interest rate | 2.50% |
Pension Plan and Employee Be_18
Pension Plan and Employee Benefits - Narrative (Q1) (Details) - USD ($) | Sep. 12, 2019 | Sep. 30, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Pension Plan | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Discretionary contribution | $ 12,300,000 | $ 12,300,000 | $ 12,250,000 | $ 0 | |||
Pension contributions required through 2024 | $ 66,500,000 | 61,800,000 | |||||
Expected contributions in 2020 | 15,500,000 | ||||||
Defined benefit plan contributions by employer | 4,870,000 | $ 2,952,000 | 12,175,000 | 18,835,000 | $ 16,560,000 | ||
Other Benefits Plan | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Discretionary contribution | 0 | 0 | |||||
Defined benefit plan contributions by employer | 1,257,000 | 643,000 | 2,858,000 | 2,920,000 | 2,965,000 | ||
Assets held-in-trust, noncurrent | 0 | 0 | |||||
SERP | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Defined benefit plan contributions by employer | 1,545,000 | 1,295,000 | 5,040,000 | 6,372,000 | 5,963,000 | ||
Cleco Power | Pension Plan | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Discretionary contribution | 83,000,000 | ||||||
Cleco Power | Other Benefits Plan | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Defined benefit plan contributions by employer | 1,200,000 | 700,000 | 3,100,000 | 3,300,000 | 3,300,000 | ||
Cleco Power | SERP | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Defined benefit plan contributions by employer | 200,000 | 300,000 | 800,000 | 1,400,000 | 1,300,000 | ||
Other Subsidiaries | Pension Plan | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Defined benefit plan contributions by employer | $ 400,000 | $ 500,000 | $ 2,200,000 | $ 2,000,000 | $ 1,800,000 |
Pension Plan and Employee Be_19
Pension Plan and Employee Benefits - Net Periodic Pension and Benefits Cost (Q1) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
PENSION BENEFITS | |||||
Components of periodic benefit costs | |||||
Service cost | $ 2,328 | $ 2,067 | $ 8,414 | $ 9,507 | $ 9,039 |
Interest cost | 5,130 | 5,650 | 22,485 | 20,860 | 21,648 |
Expected return on plan assets | (6,245) | (6,622) | (26,502) | (23,773) | (24,064) |
Amortizations | |||||
Prior period service credit | (15) | (18) | (71) | (71) | (71) |
Net loss (gain) | 3,672 | 1,875 | 7,849 | 12,312 | 10,008 |
Net periodic benefit cost | 4,870 | 2,952 | 12,175 | 18,835 | 16,560 |
OTHER BENEFITS | |||||
Components of periodic benefit costs | |||||
Service cost | 508 | 288 | 1,191 | 1,320 | 1,446 |
Interest cost | 410 | 400 | 1,646 | 1,465 | 1,569 |
Expected return on plan assets | 0 | 0 | 0 | 0 | 0 |
Amortizations | |||||
Prior period service credit | 0 | 0 | 0 | 0 | 0 |
Net loss (gain) | 339 | (45) | 21 | 135 | (50) |
Net periodic benefit cost | 1,257 | 643 | 2,858 | 2,920 | 2,965 |
SERP | |||||
Components of periodic benefit costs | |||||
Service cost | 95 | 113 | 330 | 542 | 494 |
Interest cost | 733 | 825 | 3,326 | 3,077 | 3,239 |
Amortizations | |||||
Prior period service credit | (40) | (35) | (160) | (160) | (190) |
Net loss (gain) | 757 | 392 | 1,544 | 2,913 | 2,105 |
Net periodic benefit cost | $ 1,545 | $ 1,295 | $ 5,040 | $ 6,372 | $ 5,963 |
Pension Plan and Employee Be_20
Pension Plan and Employee Benefits - Current and Non-Current Portions of the Other Benefits Liability (Q1) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Defined Benefit Plan Disclosure [Line Items] | |||
Non-current | $ 283,830 | $ 283,075 | $ 249,264 |
Other Benefits Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Current | 4,401 | 4,401 | 4,130 |
Non-current | 48,175 | 48,321 | 36,325 |
Cleco Power | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Non-current | 207,293 | 206,270 | |
Cleco Power | Other Benefits Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Current | 3,815 | 3,815 | 3,584 |
Non-current | $ 41,994 | $ 42,080 | $ 31,694 |
Pension Plan and Employee Be_21
Pension Plan and Employee Benefits - Current and Non-Current Portions of SERP Liability (Q1) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Defined Benefit Plan Disclosure [Line Items] | |||
Non-current | $ 283,830 | $ 283,075 | $ 249,264 |
SERP Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Current | 4,599 | 4,599 | |
Non-current | 84,219 | 84,529 | |
Cleco Power | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Non-current | 207,293 | 206,270 | |
Cleco Power | SERP Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Current | 760 | 760 | |
Non-current | $ 13,863 | $ 13,964 |
Pension Plan and Employee Be_22
Pension Plan and Employee Benefits - 401 (K) Plans (Q1) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Contribution Plan Disclosure [Line Items] | |||||
401(k) Plan expense | $ 3,256 | $ 2,267 | $ 7,861 | $ 5,884 | $ 5,386 |
Other Subsidiaries | |||||
Defined Contribution Plan Disclosure [Line Items] | |||||
401(k) Plan expense | $ 1,662 | $ 930 | $ 3,408 | $ 1,066 | $ 888 |
Income Taxes - Effective Tax _2
Income Taxes - Effective Tax Rate Reconciliation (Q1) (Details) | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Effective Income Tax Rate [Line Items] | |||||
Effective tax rate | 19.80% | 22.60% | 22.00% | 23.70% | 4.90% |
Cleco Power | |||||
Effective Income Tax Rate [Line Items] | |||||
Effective tax rate | 22.00% | 23.00% | 23.50% | 25.60% | 30.90% |
Income Taxes - Narrative (Q1) (
Income Taxes - Narrative (Q1) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Contingency [Line Items] | ||||
Liability for uncertain tax positions | $ 0 | $ 0 | $ 0 | |
Interest payable related to uncertain tax positions | 0 | 0 | ||
Penalties | 0 | $ 0 | 0 | 0 |
Federal | ||||
Income Tax Contingency [Line Items] | ||||
Net operating losses | 551,400,000 | |||
State | ||||
Income Tax Contingency [Line Items] | ||||
Net operating losses | 82,600,000 | |||
Cleco Power | ||||
Income Tax Contingency [Line Items] | ||||
Liability for uncertain tax positions | 0 | 0 | 0 | |
Interest payable related to uncertain tax positions | $ 0 | $ 0 | $ 0 |
Disclosures about Segments (Q_4
Disclosures about Segments (Q1) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue | ||||||||||||
Electric operations | $ 311,157 | $ 312,949 | $ 1,496,736 | $ 1,181,907 | $ 1,097,632 | |||||||
Other operations | 44,908 | 39,397 | 182,832 | 82,332 | 79,580 | |||||||
Affiliate revenue | 0 | 0 | 0 | 0 | 0 | |||||||
Electric customer credits | (8,493) | (8,160) | (39,963) | (33,195) | (1,566) | |||||||
Operating revenue, net | 347,572 | $ 409,575 | $ 487,971 | $ 397,873 | 344,186 | $ 296,767 | $ 358,256 | $ 299,261 | $ 276,760 | 1,639,605 | 1,231,044 | 1,175,646 |
Depreciation and amortization | 55,873 | 49,856 | 216,320 | 170,414 | 166,854 | |||||||
Interest income | 1,157 | 1,491 | 6,090 | 6,073 | 1,424 | |||||||
Interest charges | 35,149 | 33,999 | 141,309 | 126,642 | 122,913 | |||||||
Federal and state income tax expense (benefit) | 1,562 | 5,986 | 43,165 | 29,382 | 7,079 | |||||||
Net income (loss) | 6,328 | 31,797 | $ 55,565 | $ 44,746 | 20,557 | 10,377 | $ 47,360 | $ 25,839 | $ 10,861 | 152,665 | 94,437 | 138,080 |
Additions to property, plant, and equipment | 65,624 | 83,679 | 323,791 | 291,061 | 236,932 | |||||||
Equity investment in investee | 17,072 | 17,072 | 18,172 | 17,072 | 18,172 | 18,172 | ||||||
Goodwill | 1,490,797 | 1,490,797 | 1,490,797 | 1,490,797 | 1,490,797 | 1,490,797 | ||||||
Total segment assets | 7,676,195 | 7,476,298 | 6,436,814 | 7,476,298 | 6,436,814 | 6,278,382 | ||||||
Operating Segments | Cleco Power | ||||||||||||
Revenue | ||||||||||||
Electric operations | 224,430 | 257,175 | 1,130,928 | 1,191,587 | 1,108,389 | |||||||
Other operations | 15,764 | 19,430 | 72,833 | 82,330 | 77,522 | |||||||
Affiliate revenue | 1,106 | 300 | 3,125 | 874 | 851 | |||||||
Electric customer credits | (8,340) | (8,160) | (38,516) | (33,195) | (1,566) | |||||||
Operating revenue, net | 232,960 | 268,745 | 1,168,370 | 1,241,596 | 1,185,196 | |||||||
Depreciation and amortization | 43,677 | 42,377 | 172,471 | 162,069 | 158,415 | |||||||
Interest income | 954 | 994 | 4,744 | 5,052 | 1,283 | |||||||
Interest charges | 18,581 | 17,145 | 71,279 | 71,303 | 69,362 | |||||||
Federal and state income tax expense (benefit) | 3,338 | 7,998 | 55,924 | 67,331 | ||||||||
Net income (loss) | 11,831 | 26,712 | 148,262 | 162,257 | 150,738 | |||||||
Additions to property, plant, and equipment | 61,477 | 81,040 | 313,962 | 289,153 | 235,252 | |||||||
Equity investment in investee | 17,072 | 17,072 | 18,172 | 17,072 | 18,172 | 18,172 | ||||||
Goodwill | 1,490,797 | 1,490,797 | 1,490,797 | 1,490,797 | 1,490,797 | 1,490,797 | ||||||
Total segment assets | 6,098,446 | 5,967,327 | 5,839,853 | 5,967,327 | 5,839,853 | 5,679,538 | ||||||
Operating Segments | CLECO CAJUN | ||||||||||||
Revenue | ||||||||||||
Electric operations | 89,147 | 58,194 | ||||||||||
Other operations | 30,961 | 19,965 | ||||||||||
Affiliate revenue | 161 | 0 | ||||||||||
Electric customer credits | (153) | 0 | ||||||||||
Operating revenue, net | 120,116 | 78,159 | 491,618 | |||||||||
Depreciation and amortization | 10,103 | 5,410 | ||||||||||
Interest income | 155 | 254 | ||||||||||
Interest charges | 10 | 0 | ||||||||||
Federal and state income tax expense (benefit) | 6,421 | 3,529 | ||||||||||
Net income (loss) | 19,535 | 11,056 | ||||||||||
Additions to property, plant, and equipment | 3,341 | 1,530 | ||||||||||
Equity investment in investee | 0 | 0 | 0 | |||||||||
Goodwill | 0 | 0 | 0 | |||||||||
Total segment assets | 1,020,099 | 1,011,591 | 1,011,591 | |||||||||
OTHER | ||||||||||||
Revenue | ||||||||||||
Electric operations | (2,420) | (2,420) | (9,680) | (9,680) | (10,757) | |||||||
Other operations | 1 | 2 | 2 | 2 | 2,058 | |||||||
Affiliate revenue | 29,278 | 26,535 | 109,067 | 74,591 | 57,168 | |||||||
Electric customer credits | 0 | 0 | 0 | 0 | 0 | |||||||
Operating revenue, net | 26,859 | 24,117 | 99,389 | 64,913 | 48,469 | |||||||
Depreciation and amortization | 2,094 | 2,069 | 8,305 | 8,344 | 8,439 | |||||||
Interest income | 100 | 417 | 974 | 1,338 | 316 | |||||||
Interest charges | 16,610 | 17,028 | 70,611 | 55,659 | 53,725 | |||||||
Federal and state income tax expense (benefit) | (8,197) | (5,540) | (26,541) | (60,252) | ||||||||
Net income (loss) | (25,039) | (17,210) | (65,009) | (67,819) | (12,659) | |||||||
Additions to property, plant, and equipment | 806 | 1,109 | 655 | 1,908 | 1,680 | |||||||
Equity investment in investee | 0 | 0 | 0 | 0 | 0 | 0 | ||||||
Goodwill | 0 | 0 | 0 | 0 | 0 | 0 | ||||||
Total segment assets | 616,068 | 546,096 | 633,756 | 546,096 | 633,756 | 619,943 | ||||||
ELIMINATIONS | ||||||||||||
Revenue | ||||||||||||
Electric operations | 0 | 0 | (1) | 0 | 0 | |||||||
Other operations | (1,818) | 0 | (7,471) | 0 | 0 | |||||||
Affiliate revenue | (30,545) | (26,835) | (112,300) | (75,465) | (58,019) | |||||||
Electric customer credits | 0 | 0 | 0 | 0 | 0 | |||||||
Operating revenue, net | (32,363) | (26,835) | (119,772) | (75,465) | (58,019) | |||||||
Depreciation and amortization | (1) | 0 | 0 | 1 | 0 | |||||||
Interest income | (52) | (174) | (615) | (317) | (175) | |||||||
Interest charges | (52) | (174) | (616) | (320) | (174) | |||||||
Federal and state income tax expense (benefit) | 0 | (1) | (1) | 0 | ||||||||
Net income (loss) | 1 | (1) | 1 | (1) | 1 | |||||||
Additions to property, plant, and equipment | 0 | $ 0 | 0 | 0 | 0 | |||||||
Equity investment in investee | 0 | 0 | 0 | 0 | 0 | 0 | ||||||
Goodwill | 0 | 0 | 0 | 0 | 0 | 0 | ||||||
Total segment assets | $ (58,418) | $ (48,716) | $ (36,795) | $ (48,716) | $ (36,795) | $ (21,099) |
Regulation and Rates (Q1) (Deta
Regulation and Rates (Q1) (Details) - USD ($) | 1 Months Ended | 3 Months Ended | ||||||||
Jun. 30, 2014 | Mar. 31, 2020 | Dec. 31, 2019 | Nov. 07, 2019 | Jul. 31, 2019 | Jul. 10, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | |
Regulation and Rates [Line Items] | ||||||||||
Refund due to customers | $ 29,735,000 | $ 38,903,000 | $ 35,842,000 | |||||||
Cleco Power | ||||||||||
Regulation and Rates [Line Items] | ||||||||||
Estimated refund for the tax-related benefits from the TCJA | 19,700,000 | 28,700,000 | ||||||||
Refund due to customers | 28,921,000 | 38,241,000 | $ 79,200,000 | $ 79,200,000 | $ 35,842,000 | |||||
Accrual for related interest | 1,600,000 | 2,400,000 | ||||||||
Accrual for net capital refund for capital expenditures paid for by third parties | 4,700,000 | |||||||||
Cleco Power | FERC | ||||||||||
Regulation and Rates [Line Items] | ||||||||||
Refund due to customers | 3,500,000 | 3,500,000 | $ 3,500,000 | |||||||
Cleco Power | LPSC | Merger Commitments, cost savings | ||||||||||
Regulation and Rates [Line Items] | ||||||||||
Accrual for net capital refund for capital expenditures paid for by third parties | 6,100,000 | |||||||||
Cleco Power | 2019 FRP Monitoring Report [Member] | Merger Commitments, cost savings | ||||||||||
Regulation and Rates [Line Items] | ||||||||||
Refund due to customers | 2,200,000 | $ 1,200,000 | ||||||||
Cleco Power | 2017 FRP Monitoring report [Member] | Merger Commitments, cost savings | ||||||||||
Regulation and Rates [Line Items] | ||||||||||
Refund due to customers | 1,900,000 | |||||||||
Cleco Power | 2017 FRP Monitoring report [Member] | LPSC | ||||||||||
Regulation and Rates [Line Items] | ||||||||||
Refund due to customers | $ 0 | |||||||||
Cleco Power | Transmission return on equity [Member] | FERC | ||||||||||
Regulation and Rates [Line Items] | ||||||||||
Refund due to customers | $ 1,000,000 | $ 1,000,000 | ||||||||
Cleco Power | FRP [Member] | LPSC | ||||||||||
Regulation and Rates [Line Items] | ||||||||||
Target ROE allowed by FRP | 10.00% | 10.00% | ||||||||
Percentage of retail earnings within range to be returned to customers (in hundredths) | 60.00% | 60.00% | ||||||||
ROE for customer credit, low range | 10.90% | 10.90% | ||||||||
ROE for customer credit, high range | 11.75% | 11.75% | ||||||||
Cleco Power | FRP [Member] | LPSC | Maximum | ||||||||||
Regulation and Rates [Line Items] | ||||||||||
Target ROE allowed by FRP | 10.90% | 10.90% | ||||||||
Cleco Power | 2018 FRP Monitoring Report | LPSC | ||||||||||
Regulation and Rates [Line Items] | ||||||||||
Refund due to customers | $ 2,300,000 | |||||||||
Cleco Power | 2017 FRP Monitoring Report, Cost of Service Savings | LPSC | ||||||||||
Regulation and Rates [Line Items] | ||||||||||
Refund due to customers | $ 1,200,000 |
Variable Interest Entities - Na
Variable Interest Entities - Narrative (Q1) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Variable Interest Entity [Line Items] | ||||
Equity investment in investee | $ 17,072 | $ 17,072 | $ 18,172 | $ 18,172 |
Cleco Power | ||||
Variable Interest Entity [Line Items] | ||||
Equity investment in investee | $ 17,072 | $ 17,072 | $ 18,172 | |
Cleco Power | Oxbow | ||||
Variable Interest Entity [Line Items] | ||||
Ownership percentage by Cleco Power (in hundredths) | 50.00% | 50.00% | ||
Ownership percentage by other parties (in hundredths) | 50.00% |
Variable Interest Entities - Eq
Variable Interest Entities - Equity Method Investments (Q1) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Schedule of Equity Method Investments [Line Items] | |||||
Equity investment in investee | $ 17,072 | $ 17,072 | $ 18,172 | $ 18,172 | |
Cleco Power | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Purchase price | 12,873 | 12,873 | 12,873 | ||
Cash contributions | 6,399 | 6,399 | 6,399 | ||
Dividends | (2,200) | (2,200) | (1,100) | ||
Equity investment in investee | 17,072 | 17,072 | 18,172 | ||
Operating revenue | 1,882 | $ 1,958 | 8,886 | 6,992 | 4,189 |
Operating expenses | 1,882 | 1,958 | 8,886 | 6,992 | 4,189 |
Income before taxes | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Variable Interest Entities - Ca
Variable Interest Entities - Carrying Amount of Assets and Liabilities with Maximum Exposure to Loss (Q1) (Details) - Cleco Power - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Variable Interest Entity [Line Items] | |||
Oxbow's net assets/liabilities | $ 34,145 | $ 34,145 | $ 36,345 |
Oxbow | |||
Variable Interest Entity [Line Items] | |||
Cleco Power's 50% equity | 17,072 | 17,072 | 18,172 |
Cleco Power's maximum exposure to loss | $ 17,072 | $ 17,072 | $ 18,172 |
Litigation, Other Commitments_7
Litigation, Other Commitments and Contingencies, and Disclosures about Guarantees - Litigation (Q1) (Details) | Mar. 11, 2020USD ($) | Jan. 01, 2020 | Nov. 07, 2019USD ($) | Mar. 07, 2018Plaintiff | Sep. 30, 2016 | Jun. 30, 2016petition | Apr. 13, 2016Claim | Mar. 31, 2018Plaintiff | Sep. 30, 2016 | Jun. 30, 2016petition | Sep. 30, 2015USD ($) | Dec. 31, 2014Claim | Nov. 30, 2014 | Nov. 30, 2013 | Dec. 31, 2016Claim | Dec. 31, 2019USD ($)generation | May 31, 2016 | Mar. 31, 2020USD ($) | Sep. 27, 2019findingrecommendation | Feb. 04, 2019USD ($) | Dec. 31, 2017USD ($) | Mar. 31, 2017generation_unit |
Loss Contingencies [Line Items] | ||||||||||||||||||||||
Loss contingency, estimate of possible loss | $ 5,000,000 | $ 5,100,000 | ||||||||||||||||||||
South Central Generating | ||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||
Indemnification assets | $ 10,000,000 | |||||||||||||||||||||
Contingent liability | $ 10,000,000 | $ 10,000,000 | ||||||||||||||||||||
FERC | MISO Transmission Rates | ||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||
Public utilities, requested rate increase (decrease), percentage (in hundredths) | 0.50% | |||||||||||||||||||||
Gulf Coast Spinning start up costs | ||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||
Allegations by plaintiff, failure to perform | $ 6,500,000 | |||||||||||||||||||||
Gulf Coast Spinning construction of cotton spinning facility | ||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||
Allegations by plaintiff, failure to perform | $ 60,000,000 | |||||||||||||||||||||
Actions filed in the 9th Judicial District Court | Alleged Breach of Fiduciary Duties | ||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||
Number of actions filed | Claim | 4 | 4 | ||||||||||||||||||||
Actions filed in the Civil District Court | Alleged Breach of Fiduciary Duties | ||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||
Number of actions filed | Claim | 3 | 3 | 3 | |||||||||||||||||||
Perry Bonin, Ace Chandler, and Michael Manuel, et al v. Sabine River Authority of Texas and Sabine River Authority of Louisiana, No. B-160173-C | Pending Litigation | ||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||
Number of generation units failed to repair | generation_unit | 1 | |||||||||||||||||||||
Number of generation units owned | generation_unit | 2 | |||||||||||||||||||||
Larry Addison, Et Al. V. Sabine River Authority Of Texas, Et Al | Pending Litigation | ||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||
Number of plaintiffs | Plaintiff | 26 | 26 | ||||||||||||||||||||
Cleco Power | ||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||
Number of generation units owned | generation | 10 | |||||||||||||||||||||
Cleco Power | LPSC 2018-2019 Fuel Audit | ||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||
Fuel expense | $ 565,800,000 | |||||||||||||||||||||
Cleco Power | LPSC Nov 2010-Dec 2015 EAC Audit | ||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||
Number of petitions filed with the U.S. Court of Appeals | petition | 6 | 6 | ||||||||||||||||||||
Cleco Power | MISO Transmission Rates | ||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||
Public utilities, proposed return on equity, percentage (in hundredths) | 10.38% | 10.32% | 9.70% | 10.32% | 9.70% | |||||||||||||||||
Cleco Power | LPSC | ||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||
Environmental expense | $ 26,200,000 | |||||||||||||||||||||
Cleco Power | FERC | ||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||
Number of findings | finding | 12 | |||||||||||||||||||||
Number of recommendations | recommendation | 59 | |||||||||||||||||||||
Estimated refund interest amount | $ 3,500,000 | |||||||||||||||||||||
Loss contingency, estimate of possible loss | $ 1,000,000 | $ 1,000,000 | ||||||||||||||||||||
Cleco Power | FERC | MISO Transmission Rates | ||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||
Public utilities, approved return on equity, percentage (In hundredths) | 12.38% | 12.38% | ||||||||||||||||||||
Public utilities, proposed return on equity, percentage (in hundredths) | 9.88% | 9.88% | 6.68% | 6.68% | ||||||||||||||||||
Public utilities, requested rate increase (decrease), percentage (in hundredths) | 0.50% |
Litigation, Other Commitments_8
Litigation, Other Commitments and Contingencies, and Disclosures about Guarantees - Off-Balance Sheet Commitments and Guarantees (Q1) (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Guarantor Obligations [Line Items] | ||
Guarantor obligations, collateral held directly or by third parties, amount | $ 0 | $ 0 |
Performance Guarantee | ||
Guarantor Obligations [Line Items] | ||
Guarantor obligations, maximum exposure, undiscounted | 42,400,000 | 42,400,000 |
Indemnification Agreement | ||
Guarantor Obligations [Line Items] | ||
Guarantor obligations, maximum exposure, undiscounted | 40,000,000 | 40,000,000 |
Indemnification Agreement including fundamental organizational structure | ||
Guarantor Obligations [Line Items] | ||
Guarantor obligations, maximum exposure, undiscounted | 400,000,000 | 400,000,000 |
Cleco Power | ||
Guarantor Obligations [Line Items] | ||
Guarantor obligations, collateral held directly or by third parties, amount | 0 | |
Cleco Power | Indemnification Agreement | ||
Guarantor Obligations [Line Items] | ||
Guarantor obligations, maximum exposure, undiscounted | 40,000,000 | 40,000,000 |
Cleco Power | Indemnification Agreement including fundamental organizational structure | ||
Guarantor Obligations [Line Items] | ||
Guarantor obligations, maximum exposure, undiscounted | 400,000,000 | 400,000,000 |
Cleco Power | Financial Guarantee | ||
Guarantor Obligations [Line Items] | ||
Guarantor obligations, maximum exposure, undiscounted | 83,000,000 | |
Letters of credit | $ 86,400,000 | |
Cleco Holdings | Letters of Credit | ||
Guarantor Obligations [Line Items] | ||
Letters of credit | $ 34,500,000 |
Affiliate Transactions - Narrat
Affiliate Transactions - Narrative (Q1) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Related Party Transactions [Abstract] | |||
Accounts payable - affiliate | $ 33,780 | $ 33,780 | $ 0 |
Affiliate Transactions - Summar
Affiliate Transactions - Summary of Balances Payable To or Due From Affiliates (Q1) (Details) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Related Party Transaction [Line Items] | |||
ACCOUNTS PAYABLE | $ 33,780,000 | $ 33,780,000 | $ 0 |
Cleco Holdings | |||
Related Party Transaction [Line Items] | |||
ACCOUNTS PAYABLE | 33,800,000 | 3,200,000 | |
Cleco Power | |||
Related Party Transaction [Line Items] | |||
ACCOUNTS RECEIVABLE | 12,037,000 | 14,481,000 | 3,318,000 |
ACCOUNTS PAYABLE | 10,486,000 | 14,123,000 | 7,843,000 |
Cleco Power | Cleco Holdings | |||
Related Party Transaction [Line Items] | |||
ACCOUNTS RECEIVABLE | 10,420,000 | 10,351,000 | 699,000 |
ACCOUNTS PAYABLE | 170,000 | 194,000 | 88,000 |
Cleco Power | Support Group | |||
Related Party Transaction [Line Items] | |||
ACCOUNTS RECEIVABLE | 1,082,000 | 3,172,000 | 2,619,000 |
ACCOUNTS PAYABLE | 10,197,000 | 13,890,000 | 7,755,000 |
Cleco Power | Cleco Cajun | |||
Related Party Transaction [Line Items] | |||
ACCOUNTS RECEIVABLE | 535,000 | 958,000 | 0 |
ACCOUNTS PAYABLE | $ 119,000 | $ 39,000 | $ 0 |
Intangible Assets and Liabili_3
Intangible Assets and Liabilities - Narrative (Q1) (Details) - USD ($) | Feb. 04, 2019 | Mar. 31, 2020 | Dec. 31, 2008 |
Power supply agreements | |||
Finite-Lived Intangible Assets [Line Items] | |||
Preliminary fair value of intangible liabilities | $ 14,200,000 | ||
Intangible liabilities, residual value | $ 0 | ||
Intangible liabilities, remaining life | 7 years | ||
LTSA | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible liabilities | $ 24,100,000 | ||
Intangible liabilities, remaining life | 7 years | ||
Trade name | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets, residual value | $ 0 | ||
Finite-lived intangible asset, useful life | 20 years | ||
Power supply agreements | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets, residual value | $ 0 | $ 0 | |
Preliminary fair value of intangible assets | $ 98,900,000 | ||
Power supply agreements | Minimum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible asset, useful life | 7 years | ||
Intangible assets, remaining life | 2 years | ||
Power supply agreements | Maximum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible asset, useful life | 19 years | ||
Intangible assets, remaining life | 8 years | ||
Cleco Katrina/Rita | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets, residual value | $ 0 | ||
Cleco Katrina/Rita | Cleco Katrina/Rita right to bill and collect storm recovery charges | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets acquired | $ 177,500,000 | ||
Cleco Katrina/Rita | Cleco Katrina/Rita right to bill and collect storm recovery charges from customers, net of financing costs | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets acquired | 176,000,000 | ||
Cleco Katrina/Rita | Financing costs | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets acquired | $ 1,500,000 |
Intangible Assets and Liabili_4
Intangible Assets and Liabilities - Schedule of Amortization of Intangible Assets and Liabilities (Q1) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
LTSA | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization of intangible liabilities | $ 871 | $ 581 |
Power supply agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization of intangible liabilities | 882 | 211 |
Cleco Katrina/Rita right to bill and collect storm recovery charges | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization of intangible assets | 517 | 4,870 |
Cleco Katrina/Rita right to bill and collect storm recovery charges | Cleco Power | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization of intangible assets | 517 | 4,870 |
Trade name | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization of intangible assets | 64 | 64 |
Power supply agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization of intangible assets | $ 6,400 | $ 5,190 |
Intangible Assets and Liabili_5
Intangible Assets and Liabilities - Schedule of Finite-Lived Intangible Assets and Liabilities (Q1) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Finite-Lived Intangible Assets [Line Items] | |||
Total intangible assets carrying amount | $ 259,698 | $ 259,698 | $ 160,798 |
Total intangible liability carrying amount | 38,300 | 38,300 | 0 |
Net intangible assets carrying amount | 221,398 | 221,398 | 160,798 |
Accumulated amortization | (120,395) | (115,167) | (76,491) |
Net intangible assets subject to amortization | 101,003 | 106,231 | 84,307 |
Net intangible assets subject to amortization | 131,122 | 138,103 | $ 84,307 |
LTSA | |||
Finite-Lived Intangible Assets [Line Items] | |||
Total intangible liability carrying amount | 24,100 | 24,100 | |
Power supply agreements | |||
Finite-Lived Intangible Assets [Line Items] | |||
Total intangible liability carrying amount | 14,200 | 14,200 | |
Cleco Katrina/Rita right to bill and collect storm recovery charges | |||
Finite-Lived Intangible Assets [Line Items] | |||
Total intangible assets carrying amount | 70,594 | 70,594 | |
Cleco Katrina/Rita right to bill and collect storm recovery charges | Cleco Power | |||
Finite-Lived Intangible Assets [Line Items] | |||
Total intangible assets carrying amount | 177,537 | 177,537 | |
Accumulated amortization | (177,537) | (177,020) | |
Net intangible assets subject to amortization | 0 | 517 | |
Trade name | |||
Finite-Lived Intangible Assets [Line Items] | |||
Total intangible assets carrying amount | 5,100 | 5,100 | |
Power supply agreements | |||
Finite-Lived Intangible Assets [Line Items] | |||
Total intangible assets carrying amount | $ 184,004 | $ 184,004 |
Accumulated Other Comprehensi_6
Accumulated Other Comprehensive Loss (Q1) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Balances, beginning of period | $ 2,643,006,000 | $ 2,124,740,000 | $ 2,124,740,000 | $ 2,096,357,000 | $ 2,046,763,000 |
Amounts reclassified from accumulated AOCI | |||||
Balances, end of period | 2,649,748,000 | 2,530,062,000 | 2,643,006,000 | 2,124,740,000 | 2,096,357,000 |
TOTAL AOCI | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Balances, beginning of period | (17,513,000) | 1,786,000 | 1,786,000 | (2,921,000) | 1,500,000 |
Amounts reclassified from accumulated AOCI | |||||
Balances, end of period | (17,099,000) | 1,651,000 | (17,513,000) | 1,786,000 | (2,921,000) |
POSTRETIREMENT BENEFIT NET LOSS | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Balances, beginning of period | (17,513,000) | 1,786,000 | 1,786,000 | (2,921,000) | 1,500,000 |
Amounts reclassified from accumulated AOCI | |||||
Amounts reclassified from AOCI | 414,000 | (135,000) | (422,000) | 1,615,000 | (523,000) |
Balances, end of period | (17,099,000) | 1,651,000 | (17,513,000) | 1,786,000 | (2,921,000) |
Cleco Power | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Balances, beginning of period | 1,713,392,000 | 1,594,533,000 | 1,594,533,000 | 1,550,679,000 | 1,535,202,000 |
Amounts reclassified from accumulated AOCI | |||||
Amounts reclassified from AOCI | 687,000 | 1,789,000 | 476,000 | ||
Balances, end of period | 1,725,713,000 | 1,621,465,000 | 1,713,392,000 | 1,594,533,000 | 1,550,679,000 |
Cleco Power | TOTAL AOCI | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Balances, beginning of period | (22,585,000) | (13,182,000) | (13,182,000) | (13,683,000) | (13,422,000) |
Amounts reclassified from accumulated AOCI | |||||
Balances, end of period | (22,095,000) | (12,962,000) | (22,585,000) | (13,182,000) | (13,683,000) |
Cleco Power | POSTRETIREMENT BENEFIT NET LOSS | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Balances, beginning of period | (16,717,000) | (7,060,000) | (7,060,000) | (8,377,000) | (7,905,000) |
Amounts reclassified from accumulated AOCI | |||||
Amounts reclassified from AOCI | 426,000 | 156,000 | 687,000 | 1,789,000 | 476,000 |
Balances, end of period | (16,291,000) | (6,904,000) | (16,717,000) | (7,060,000) | $ (8,377,000) |
Cleco Power | NET LOSS ON CASH FLOW HEDGES | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Balances, beginning of period | (5,868,000) | (6,122,000) | (6,122,000) | ||
Amounts reclassified from accumulated AOCI | |||||
Amounts reclassified from AOCI | 64,000 | 64,000 | |||
Balances, end of period | $ (5,804,000) | $ (6,058,000) | $ (5,868,000) | $ (6,122,000) |
Schedule I Financial Statemen_2
Schedule I Financial Statements of Cleco Holdings (Parent Company Only) - Condensed Statements of Income (FY) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating expenses | ||||||||||||
Merger transaction costs | $ 2,775 | $ 4,990 | $ 7,668 | $ 19,514 | $ 5,152 | |||||||
Total operating expenses | 292,907 | 293,600 | 1,324,711 | 986,487 | 910,419 | |||||||
Operating income | 54,665 | $ 75,573 | $ 101,539 | $ 87,196 | 50,586 | $ 50,004 | $ 86,110 | $ 63,709 | $ 44,734 | 314,894 | 244,557 | 265,227 |
Other income (expense), net | (12,709) | 2,777 | 758 | (14,328) | (6,899) | |||||||
Income before income taxes | 7,890 | 26,543 | 195,830 | 123,819 | 145,159 | |||||||
Federal and state income tax expense | 1,562 | 5,986 | 43,165 | 29,382 | 7,079 | |||||||
Net income | $ 6,328 | $ 31,797 | $ 55,565 | $ 44,746 | $ 20,557 | $ 10,377 | $ 47,360 | $ 25,839 | $ 10,861 | 152,665 | 94,437 | 138,080 |
Cleco Holdings | ||||||||||||
Operating expenses | ||||||||||||
Administrative and general | 3,263 | 1,269 | 602 | |||||||||
Merger transaction costs | 7,803 | 19,514 | 5,152 | |||||||||
Other operating expense | 130 | 318 | 260 | |||||||||
Total operating expenses | 11,196 | 21,101 | 6,014 | |||||||||
Operating income | (11,196) | (21,101) | (6,014) | |||||||||
Equity income from subsidiaries, net of tax | 205,187 | 149,543 | 170,706 | |||||||||
Interest, net | (70,252) | (54,635) | (53,684) | |||||||||
Other income (expense), net | 8,568 | (1,687) | 3,978 | |||||||||
Income before income taxes | 132,307 | 72,120 | 114,986 | |||||||||
Federal and state income tax expense | (20,358) | (22,317) | (23,094) | |||||||||
Net income | $ 152,665 | $ 94,437 | $ 138,080 |
Schedule I Financial Statemen_3
Schedule I Financial Statements of Cleco Holdings (Parent Company Only) - Condensed Statements of Comprehensive Income (FY) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Condensed Statements of Comprehensive Income [Abstract] | ||||||||||||
Net income (loss) | $ 6,328 | $ 31,797 | $ 55,565 | $ 44,746 | $ 20,557 | $ 10,377 | $ 47,360 | $ 25,839 | $ 10,861 | $ 152,665 | $ 94,437 | $ 138,080 |
Other comprehensive income (loss), net of tax | ||||||||||||
Postretirement benefits gain (loss), net of tax expense (benefit) | 414 | (135) | (19,299) | 5,296 | (4,421) | |||||||
Total other comprehensive (loss) income, net of tax | 414 | (135) | (19,299) | 5,296 | (4,421) | |||||||
Comprehensive income, net of tax | $ 6,742 | $ 20,422 | 133,366 | 99,733 | 133,659 | |||||||
Cleco Holdings | ||||||||||||
Condensed Statements of Comprehensive Income [Abstract] | ||||||||||||
Net income (loss) | 152,665 | 94,437 | 138,080 | |||||||||
Other comprehensive income (loss), net of tax | ||||||||||||
Postretirement benefits gain (loss), net of tax expense (benefit) | (19,299) | 5,296 | (4,421) | |||||||||
Total other comprehensive (loss) income, net of tax | (19,299) | 5,296 | (4,421) | |||||||||
Comprehensive income, net of tax | $ 133,366 | $ 99,733 | $ 133,659 |
Schedule I Financial Statemen_4
Schedule I Financial Statements of Cleco Holdings (Parent Company Only) - Condensed Statements of Comprehensive Income Parenthetical (FY) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Condensed Financial Statements, Captions [Line Items] | |||||
Net tax expense (benefit) of amortization of post-retirement benefit net losses | $ 146 | $ (47) | $ (6,808) | $ 1,868 | $ (2,764) |
Cleco Holdings | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Net tax expense (benefit) of amortization of post-retirement benefit net losses | $ (6,808) | $ 1,868 | $ (2,764) |
Schedule I Financial Statemen_5
Schedule I Financial Statements of Cleco Holdings (Parent Company Only) - Condensed Balance Sheets (FY) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets | ||||||
Cash and cash equivalents | $ 350,231 | $ 116,292 | $ 110,175 | |||
Other accounts receivable | 29,485 | 35,731 | 27,196 | |||
Cash surrender value of trust-owned life insurance policies | 75,411 | 86,096 | 80,391 | |||
Total current assets | 847,151 | 638,075 | 564,962 | |||
Equity investment in subsidiaries | 17,072 | 17,072 | 18,172 | $ 18,172 | ||
Other deferred charges | 37,394 | 39,668 | 37,701 | |||
Total assets | 7,676,195 | 7,476,298 | 6,436,814 | 6,278,382 | ||
Current liabilities | ||||||
Accounts payable | 104,091 | 158,863 | 156,589 | |||
Accounts payable - affiliate | 33,780 | 33,780 | 0 | |||
Interest accrued | 41,731 | 19,001 | 15,828 | |||
Deferred compensation | 9,371 | 12,115 | 10,753 | |||
Other current liabilities | 45,699 | 44,683 | 30,536 | |||
Total current liabilities | 663,040 | 511,339 | 379,050 | |||
Postretirement benefit obligations | 283,830 | 283,075 | 249,264 | |||
Total liabilities | 5,026,447 | 4,833,292 | 4,312,074 | |||
Commitments and contingencies (Note 6) | ||||||
Member's equity | ||||||
Member's equity | 2,649,748 | 2,643,006 | $ 2,530,062 | 2,124,740 | $ 2,096,357 | $ 2,046,763 |
Total liabilities and member's equity | $ 7,676,195 | 7,476,298 | 6,436,814 | |||
Cleco Holdings | ||||||
Current assets | ||||||
Cash and cash equivalents | 15,008 | 76,938 | ||||
Accounts receivable - affiliate | 14,231 | 8,374 | ||||
Other accounts receivable | 2,650 | 2,755 | ||||
Taxes receivable, net | 6,726 | 7,046 | ||||
Cash surrender value of trust-owned life insurance policies | 68,523 | 59,894 | ||||
Total current assets | 107,138 | 155,007 | ||||
Equity investment in subsidiaries | 4,150,953 | 3,247,809 | ||||
Accumulated deferred federal and state income taxes, net | 127,655 | 101,015 | ||||
Other deferred charges | 1,831 | 4,532 | ||||
Total assets | 4,387,577 | 3,508,363 | ||||
Current liabilities | ||||||
Long-term debt due within one year | 63,300 | 0 | ||||
Accounts payable | 1,448 | 1,322 | ||||
Accounts payable - affiliate | 47,184 | 18,047 | ||||
Interest accrued | 11,005 | 7,576 | ||||
Deferred compensation | 12,115 | 10,753 | ||||
Other current liabilities | 274 | 273 | ||||
Total current liabilities | 135,326 | 37,971 | ||||
Postretirement benefit obligations | 4,481 | 3,894 | ||||
Long-term debt, net | 1,604,764 | 1,341,758 | ||||
Total liabilities | 1,744,571 | 1,383,623 | ||||
Member's equity | ||||||
Member's equity | 2,643,006 | 2,124,740 | ||||
Total liabilities and member's equity | $ 4,387,577 | $ 3,508,363 |
Schedule I Financial Statemen_6
Schedule I Financial Statements of Cleco Holdings (Parent Company Only) - Condensed Statements of Cash Flows (FY) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||||
Operating activities | |||||||||
Net cash provided by operating activities | $ 60,206 | $ 108,129 | $ 430,119 | $ 317,761 | $ 265,428 | ||||
Investing activities | |||||||||
Return on equity investment in investee | 1,100 | 0 | 500 | ||||||
Other investing | 285 | 299 | 574 | 397 | (630) | ||||
Net cash (used in) provided by investing activities | (65,413) | (892,661) | (1,115,423) | (288,160) | (203,554) | ||||
Financing activities | |||||||||
Draws on credit facilities | 238,000 | 108,000 | 108,000 | 0 | 179,000 | ||||
Payments on credit facilities | 0 | (108,000) | (108,000) | 0 | (179,000) | ||||
Issuances of long-term debt | 700,000 | 50,000 | 125,000 | ||||||
Repayments of long-term debt | (390,571) | (19,193) | (17,896) | ||||||
Payment of financing costs | 0 | (3,785) | (5,959) | (791) | (463) | ||||
Contribution from member | 0 | 384,900 | |||||||
Distributions to member | 0 | (71,350) | (84,065) | ||||||
Net cash provided by (used in) financing activities | 226,796 | 770,599 | 687,813 | (41,717) | 20,757 | ||||
Net increase (decrease) in cash, cash equivalents, restricted cash, and restricted cash equivalents | 2,509 | (12,116) | 82,631 | ||||||
Cash, cash equivalents, restricted cash, and restricted cash equivalents at beginning of period | 142,595 | [1],[2] | 140,086 | [2] | 140,086 | [2] | 152,202 | 69,571 | |
Cash, cash equivalents, restricted cash, and restricted cash equivalents at end of period | 364,184 | [3] | 126,153 | 142,595 | [1],[2] | 140,086 | [2] | 152,202 | |
Supplementary cash flow information | |||||||||
Interest paid, net of amount capitalized | 9,077 | 5,752 | 130,988 | 124,154 | 118,009 | ||||
Cleco Holdings | |||||||||
Operating activities | |||||||||
Net cash provided by operating activities | 189,644 | 97,614 | 124,817 | ||||||
Investing activities | |||||||||
Return on equity investment in investee | 1,625 | 2,775 | 7,502 | ||||||
Contribution to subsidiary | (962,170) | (1,250) | 0 | ||||||
Other investing | 0 | 442 | (630) | ||||||
Net cash (used in) provided by investing activities | (960,545) | 1,967 | 6,872 | ||||||
Financing activities | |||||||||
Draws on credit facilities | 75,000 | 0 | 73,000 | ||||||
Payments on credit facilities | (75,000) | 0 | (73,000) | ||||||
Issuances of long-term debt | 700,000 | 0 | 0 | ||||||
Repayments of long-term debt | (370,000) | 0 | 0 | ||||||
Payment of financing costs | (5,929) | (25) | (269) | ||||||
Contribution from member | 384,900 | 0 | 0 | ||||||
Distributions to member | 0 | (71,350) | (84,065) | ||||||
Net cash provided by (used in) financing activities | 708,971 | (71,375) | (84,334) | ||||||
Net increase (decrease) in cash, cash equivalents, restricted cash, and restricted cash equivalents | (61,930) | 28,206 | 47,355 | ||||||
Cash, cash equivalents, restricted cash, and restricted cash equivalents at beginning of period | $ 15,008 | $ 76,938 | 76,938 | 48,732 | 1,377 | ||||
Cash, cash equivalents, restricted cash, and restricted cash equivalents at end of period | 15,008 | 76,938 | 48,732 | ||||||
Supplementary cash flow information | |||||||||
Interest paid, net of amount capitalized | 56,768 | 53,798 | 52,026 | ||||||
Income taxes (refunded) paid, net | (19) | 2 | (6) | ||||||
Supplementary non-cash investing and financing activities | |||||||||
Non-cash contribution to subsidiary, net of tax | $ 0 | $ 3,865 | $ 0 | ||||||
[1] | Includes cash and cash equivalents of $110,175, current restricted cash and cash equivalents of $11,241, and non-current restricted cash and cash equivalents of $18,670. | ||||||||
[2] | Includes cash and cash equivalents of $116,292, current restricted cash and cash equivalents of $11,100, and non-current restricted cash and cash equivalents of $15,203. | ||||||||
[3] | Includes cash and cash equivalents of $350,231, current restricted cash and cash equivalents of $4,054, and non-current restricted cash and cash equivalents of $9,899. |
Schedule I Financial Statemen_7
Schedule I Financial Statements of Cleco Holdings (Parent Company Only) - Summary of Significant Accounting Policies (FY) (Details) - Cleco Holdings $ in Millions | Dec. 31, 2019USD ($) |
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 | $ 1,260 |
Schedule I Financial Statemen_8
Schedule I Financial Statements of Cleco Holdings (Parent Company Only) - Debt (FY) (Details) | Feb. 05, 2019USD ($) | Feb. 04, 2019USD ($) | Jan. 31, 2019USD ($) | Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) | Sep. 11, 2019USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Condensed Financial Statements, Captions [Line Items] | |||||||||
Short-term debt outstanding | $ 238,000,000 | $ 0 | $ 0 | ||||||
Long-term debt outstanding | 3,190,000,000 | ||||||||
Long-term debt and capital leases due within one year | 63,932,000 | 125,986,000 | |||||||
Repayments of long-term debt | 390,571,000 | 19,193,000 | $ 17,896,000 | ||||||
Payments on credit facilities | $ 0 | $ 108,000,000 | 108,000,000 | 0 | 179,000,000 | ||||
For the year ending Dec. 31, | |||||||||
2020 | 133,300,000 | ||||||||
2021 | 200,000,000 | ||||||||
2022 | 267,700,000 | ||||||||
2023 | 333,300,000 | ||||||||
Cleco Holdings | |||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||
Short-term debt outstanding | 0 | 0 | |||||||
Long-term debt outstanding | 1,670,000,000 | ||||||||
Long-term debt and capital leases due within one year | 63,300,000 | ||||||||
Debt term | 3 years | ||||||||
Repayments of long-term debt | 370,000,000 | 0 | 0 | ||||||
Payments on credit facilities | 75,000,000 | $ 0 | $ 73,000,000 | ||||||
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, | |||||||||
2020 | 0 | ||||||||
2021 | 330,000,000 | ||||||||
2022 | 0 | ||||||||
2023 | 165,000,000 | ||||||||
2024 | 0 | ||||||||
Thereafter | $ 1,185,000,000 | ||||||||
Cleco Holdings | Bridge Loan Agreement | |||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||
Repayments of long-term debt | $ 300,000,000 | ||||||||
Cleco Holdings | Bank Term Loan Agreement | |||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||
Repayments of long-term debt | 100,000,000 | ||||||||
Line of Credit | Cleco Holdings | |||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||
Increase in credit facility capacity | $ 75,000,000 | ||||||||
Maximum borrowing capacity | $ 175,000,000 | ||||||||
Cleco Holdings | |||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||
Debt term | 3 years | ||||||||
Debt to capital ratio | 0.65 | ||||||||
Cleco Holdings | Senior Notes 3.375% Due September 15, 2029 | |||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||
Aggregate principal amount | $ 300,000,000 | ||||||||
Interest rate | 3.375% | ||||||||
Cleco Holdings | Bridge Loan Agreement | |||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||
Repayments of long-term debt | $ 300,000,000 | ||||||||
Cleco Holdings | Bank Term Loan Agreement | |||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||
Repayments of long-term debt | $ 100,000,000 | ||||||||
Cleco Holdings | Line of Credit | |||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||
Increase in credit facility capacity | $ 75,000,000 | ||||||||
Maximum borrowing capacity | 175,000,000 | ||||||||
Payments on credit facilities | $ 75,000,000 | ||||||||
Cleco Holdings | Bridge Loan | |||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||
Aggregate principal amount | 300,000,000 | ||||||||
Cleco Holdings | Term Loan | |||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||
Aggregate principal amount | 100,000,000 | ||||||||
NRG South Central | |||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||
Repayments of long-term debt | 400,000,000 | $ 400,000,000 | |||||||
Revolving Credit Facility | Cleco Holdings | |||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||
Payments on credit facilities | $ 75,000,000 | ||||||||
Revolving Credit Facility | Cleco Holdings | |||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||
Maximum borrowing capacity | $ 175,000,000 |
Schedule I Financial Statemen_9
Schedule I Financial Statements of Cleco Holdings (Parent Company Only) - Cash Distributions and Equity Contributions (FY) (Details) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Contribution from member/parent | $ 384,900,000 | $ 384,900,000 | |||||||||
Distributions to member | $ 10,850,000 | $ 20,600,000 | $ 20,400,000 | $ 19,500,000 | $ 71,350,000 | $ 84,065,000 | |||||
Cleco Power | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Distributions to member | $ 20,000,000 | $ 0 | $ 0 | $ 0 | $ 0 | $ 50,400,000 | $ 43,000,000 | $ 28,000,000 | 20,000,000 | 121,400,000 | 135,000,000 |
Cleco Power | Cleco Holdings | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Contribution from member/parent | 0 | 0 | 0 | ||||||||
Distributions to member | $ 20,000,000 | 121,400,000 | 135,000,000 | ||||||||
Cleco Power | Maximum | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Ratio of total indebtedness to total capitalization | 0.65 | 0.65 | |||||||||
Cleco Holdings | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Cash distributions received from affiliates | $ 225,000,000 | 121,842,000 | 149,010,000 | ||||||||
Contribution to subsidiary | 962,170,000 | 1,250,000 | 0 | ||||||||
Cleco Holdings | Cleco Power | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Cash distributions received from affiliates | 20,000,000 | 121,400,000 | 135,000,000 | ||||||||
Cleco Holdings | Cleco Cajun | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Cash distributions received from affiliates | 205,000,000 | 0 | 0 | ||||||||
Cleco Holdings | Perryville | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Cash distributions received from affiliates | 0 | 225,000 | 6,850,000 | ||||||||
Contribution to subsidiary | 1,800,000 | ||||||||||
Cleco Holdings | Attala | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Cash distributions received from affiliates | 0 | 217,000 | 7,160,000 | ||||||||
Contribution to subsidiary | 2,100,000 | ||||||||||
Cleco Holdings | Cleco Holdings | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Contributions made to affiliates | 0 | 0 | |||||||||
Contribution from member/parent | 384,900,000 | 0 | 0 | ||||||||
Distributions to member | 0 | 71,400,000 | $ 84,100,000 | ||||||||
Cleco Holdings | Limited Liability Company | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Contributions made to affiliates | $ 962,200,000 | $ 1,300,000 |
Schedule I Financial Stateme_10
Schedule I Financial Statements of Cleco Holdings (Parent Company Only) - Income Taxes (FY) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Contingency [Line Items] | |||||
Federal and state income tax benefit | $ 1,562 | $ 5,986 | $ 43,165 | $ 29,382 | $ 7,079 |
Cleco Holdings | |||||
Income Tax Contingency [Line Items] | |||||
Federal and state income tax benefit | (20,358) | (22,317) | (23,094) | ||
Equity income from subsidiaries - federal and state income tax expense | $ 63,523 | $ 51,699 | $ 30,173 |
Schedule II Valuation and Qua_2
Schedule II Valuation and Qualifying Accounts (FY) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Allowance for Uncollectible Accounts | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
BALANCE AT BEGINNING OF PERIOD | $ 814 | $ 1,457 | $ 7,199 |
ADDITIONS | 2,323 | 977 | 4,179 |
DEDUCTIONS | 132 | 1,620 | 9,921 |
BALANCE AT END OF PERIOD | 3,005 | 814 | 1,457 |
Allowance for Uncollectible Accounts | Cleco Power | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
BALANCE AT BEGINNING OF PERIOD | 814 | 1,457 | 7,199 |
ADDITIONS | 2,323 | 977 | 4,179 |
DEDUCTIONS | 132 | 1,620 | 9,921 |
BALANCE AT END OF PERIOD | 3,005 | 814 | 1,457 |
Unrestricted Storm Reserve | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
BALANCE AT BEGINNING OF PERIOD | 3,672 | 4,186 | 2,607 |
ADDITIONS | 4,000 | 0 | 4,000 |
DEDUCTIONS | 6,572 | 514 | 2,421 |
BALANCE AT END OF PERIOD | 1,100 | 3,672 | 4,186 |
Unrestricted Storm Reserve | Cleco Power | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
BALANCE AT BEGINNING OF PERIOD | 3,672 | 4,186 | 2,607 |
ADDITIONS | 4,000 | 0 | 4,000 |
DEDUCTIONS | 6,572 | 514 | 2,421 |
BALANCE AT END OF PERIOD | 1,100 | 3,672 | 4,186 |
Restricted Storm Reserve | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
BALANCE AT BEGINNING OF PERIOD | 15,485 | 14,469 | 17,385 |
ADDITIONS | 800 | 1,016 | 1,084 |
DEDUCTIONS | 4,000 | 0 | 4,000 |
BALANCE AT END OF PERIOD | 12,285 | 15,485 | 14,469 |
Restricted Storm Reserve | Cleco Power | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
BALANCE AT BEGINNING OF PERIOD | 15,485 | 14,469 | 17,385 |
ADDITIONS | 800 | 1,016 | 1,084 |
DEDUCTIONS | 4,000 | 0 | 4,000 |
BALANCE AT END OF PERIOD | $ 12,285 | $ 15,485 | $ 14,469 |