Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2020 | May 12, 2020 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2020 | |
Document Transition Report | false | |
Entity File Number | 1-15759 | |
Entity Registrant Name | CLECO CORPORATE HOLDINGS LLC | |
Entity Incorporation, State or Country Code | LA | |
Entity Tax Identification Number | 72-1445282 | |
Entity Address, Address Line One | 2030 Donahue Ferry Road | |
Entity Address, City or Town | Pineville | |
Entity Address, State or Province | LA | |
Entity Address, Postal Zip Code | 71360-5226 | |
City Area Code | 318 | |
Local Phone Number | 484-7400 | |
Entity Current Reporting Status | No | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 0 | |
Entity Central Index Key | 0001089819 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Cleco Power | ||
Entity Information [Line Items] | ||
Entity File Number | 1-05663 | |
Entity Registrant Name | CLECO POWER LLC | |
Entity Incorporation, State or Country Code | LA | |
Entity Tax Identification Number | 72-0244480 | |
Entity Address, Address Line One | 2030 Donahue Ferry Road | |
Entity Address, City or Town | Pineville | |
Entity Address, State or Province | LA | |
Entity Address, Postal Zip Code | 71360-5226 | |
City Area Code | 318 | |
Local Phone Number | 484-7400 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 0 | |
Entity Central Index Key | 0000018672 | |
Current Fiscal Year End Date | --12-31 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Operating revenue | ||
Electric operations | $ 311,157 | $ 312,949 |
Other operations | 44,908 | 39,397 |
Affiliate revenue | 0 | 0 |
Gross operating revenue | 356,065 | 352,346 |
Electric customer credits | (8,493) | (8,160) |
Operating revenue, net | 347,572 | 344,186 |
Operating expenses | ||
Fuel used for electric generation | 76,637 | 104,054 |
Purchased power | 66,320 | 60,099 |
Other operations and maintenance | 74,766 | 60,731 |
Depreciation and amortization | 55,873 | 49,856 |
Taxes other than income taxes | 16,536 | 13,870 |
Merger transaction and commitment costs | 2,775 | 4,990 |
Total operating expenses | 292,907 | 293,600 |
Operating income | 54,665 | 50,586 |
Interest income | 1,157 | 1,491 |
Allowance for equity funds used during construction | (74) | 5,688 |
Other income (expense), net | (12,709) | 2,777 |
Interest charges | ||
Interest charges, net | 35,328 | 36,115 |
Allowance for borrowed funds used during construction | (179) | (2,116) |
Total interest charges | 35,149 | 33,999 |
Income before income taxes | 7,890 | 26,543 |
Federal and state income tax expense | 1,562 | 5,986 |
Net income | 6,328 | 20,557 |
CLECO POWER | ||
Operating revenue | ||
Electric operations | 224,430 | 257,175 |
Other operations | 15,764 | 19,430 |
Affiliate revenue | 1,106 | 300 |
Gross operating revenue | 241,300 | 276,905 |
Electric customer credits | (8,340) | (8,160) |
Operating revenue, net | 232,960 | 268,745 |
Operating expenses | ||
Fuel used for electric generation | 61,064 | 94,131 |
Purchased power | 23,462 | 29,654 |
Other operations and maintenance | 56,944 | 47,700 |
Depreciation and amortization | 43,677 | 42,377 |
Taxes other than income taxes | 12,276 | 9,978 |
Total operating expenses | 197,423 | 223,840 |
Operating income | 35,537 | 44,905 |
Interest income | 954 | 994 |
Allowance for equity funds used during construction | (74) | 5,688 |
Other income (expense), net | (2,667) | 268 |
Interest charges | ||
Interest charges, net | 18,760 | 19,261 |
Allowance for borrowed funds used during construction | (179) | (2,116) |
Total interest charges | 18,581 | 17,145 |
Income before income taxes | 15,169 | 34,710 |
Federal and state income tax expense | 3,338 | 7,998 |
Net income | $ 11,831 | $ 26,712 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Net income | $ 6,328 | $ 20,557 |
Other comprehensive (loss) income, net of tax | ||
Postretirement benefits gain (loss), net of tax expense (benefit) | 414 | (135) |
Total other comprehensive (loss) income, net of tax | 414 | (135) |
Comprehensive income, net of tax | 6,742 | 20,422 |
CLECO POWER | ||
Net income | 11,831 | 26,712 |
Other comprehensive (loss) income, net of tax | ||
Postretirement benefits gain (loss), net of tax expense (benefit) | 426 | 156 |
Amortization of interest rate derivatives to earnings | 64 | 64 |
Total other comprehensive (loss) income, net of tax | 490 | 220 |
Comprehensive income, net of tax | $ 12,321 | $ 26,932 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Tax (expense) benefit of postretirement benefits gain (loss) | $ (146) | $ 47 |
CLECO POWER | ||
Tax (expense) benefit of postretirement benefits gain (loss) | (152) | (55) |
Tax expense on amortization of interest rate derivatives to earnings | $ 22 | $ 22 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (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/utility, 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 |
CLECO POWER | ||
Current assets | ||
Cash and cash equivalents | 189,423 | 55,489 |
Restricted cash and cash equivalents | 4,054 | 11,100 |
Customer accounts receivable (less allowance for credit losses) | 30,735 | 39,165 |
Accounts receivable - affiliate | 12,037 | 14,481 |
Other accounts receivable | 24,852 | 24,604 |
Unbilled revenue | 30,434 | 33,207 |
Fuel inventory, at average cost | 80,459 | 59,602 |
Materials and supplies, at average cost | 93,544 | 91,941 |
Energy risk management assets | 1,673 | 6,311 |
Accumulated deferred fuel | 16,353 | 22,910 |
Cash surrender value of company-/trust-owned life insurance policies | 17,614 | 17,574 |
Prepayments | 4,469 | 4,786 |
Regulatory assets | 10,907 | 10,973 |
Other current assets | 646 | 655 |
Total current assets | 517,200 | 392,798 |
Property/Utility, plant, and equipment | ||
Property, plant, and equipment | 5,542,292 | 5,489,457 |
Accumulated depreciation | (1,941,674) | (1,905,031) |
Net property, plant, and equipment | 3,600,618 | 3,584,426 |
Construction work in progress | 114,710 | 111,687 |
Total property/utility, plant, and equipment, net | 3,715,328 | 3,696,113 |
Equity investment in investee | 17,072 | 17,072 |
Prepayments | 1,686 | 2,693 |
Operating lease right of use assets | 27,883 | 28,633 |
Restricted cash and cash equivalents | 9,056 | 14,363 |
Note receivable | 15,031 | 15,198 |
Regulatory assets | 267,602 | 272,289 |
Other deferred charges | 36,791 | 37,371 |
Total assets | 4,607,649 | 4,476,530 |
Current liabilities | ||
Short-term debt | 150,000 | 0 |
Long-term debt and finance leases due within one year | 632 | 61,587 |
Accounts payable | 77,892 | 110,096 |
Accounts payable - affiliate | 10,486 | 14,123 |
Customer deposits | 59,192 | 58,289 |
Provision for rate refund | 28,921 | 38,241 |
Taxes payable, net | 46,988 | 38,888 |
Interest accrued | 23,232 | 7,972 |
Energy risk management liabilities | 524 | 586 |
Regulatory liabilities - other | 3,910 | 6,675 |
Other current liabilities | 22,497 | 22,802 |
Total current liabilities | 424,274 | 359,259 |
Long-term liabilities and deferred credits | ||
Accumulated deferred federal and state income taxes, net | 664,071 | 657,834 |
Postretirement benefit obligations | 207,293 | 206,270 |
Regulatory liabilities - deferred taxes, net | 146,225 | 146,948 |
Restricted storm reserve | 8,324 | 12,285 |
Asset retirement obligations | 7,441 | 7,325 |
Operating lease liabilities | 25,001 | 25,658 |
Other deferred credits | 21,875 | 20,187 |
Total long-term liabilities and deferred credits | 1,080,230 | 1,076,507 |
Long-term debt and finance leases, net | 1,377,432 | 1,327,372 |
Total capitalization | 3,103,145 | 3,040,764 |
Commitments and contingencies (Note 14) | ||
Member’s equity | ||
Member’s equity | 1,725,713 | 1,713,392 |
Total liabilities and member’s equity | $ 4,607,649 | $ 4,476,530 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Customer accounts receivable, allowance for credit losses | $ 2,123 | $ 3,005 |
CLECO POWER | ||
Customer accounts receivable, allowance for credit losses | $ 2,123 | $ 3,005 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (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 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 | 142,595 | [1] | 140,086 |
Cash, cash equivalents, restricted cash, and restricted cash equivalents at end of period | 364,184 | [2] | 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 | |
CLECO POWER | |||
Operating activities | |||
Net income | 11,831 | 26,712 | |
Adjustments to reconcile net income to net cash provided by operating activities | |||
Depreciation and amortization | 45,079 | 43,739 | |
Provision for credit losses | 2,569 | 316 | |
Allowance for equity funds used during construction | 74 | (5,688) | |
Deferred income taxes | 5,341 | (2,386) | |
Deferred fuel costs | 7,626 | 13,869 | |
Cash surrender value of company-/trust-owned life insurance | (40) | 3,044 | |
Changes in assets and liabilities | |||
Accounts receivable | 3,452 | (8,045) | |
Accounts receivable - affiliate | 2,863 | 1,687 | |
Unbilled revenue | 2,773 | 5,109 | |
Fuel inventory and materials and supplies | (22,429) | (6,147) | |
Prepayments | 1,209 | 965 | |
Accounts payable | (33,749) | (10,704) | |
Accounts payable - affiliate | (3,817) | 8,422 | |
Customer deposits | 2,731 | 2,598 | |
Provision for merger commitments | (1,295) | (732) | |
Postretirement benefit obligations | 1,181 | 394 | |
Regulatory assets and liabilities, net | (1,218) | 4,676 | |
Other deferred accounts | (3,452) | (840) | |
Taxes accrued | 7,691 | (22,895) | |
Interest accrued | 15,260 | 16,868 | |
Other operating | 370 | (993) | |
Net cash provided by operating activities | 44,050 | 69,969 | |
Investing activities | |||
Additions to property, plant, and equipment | (61,477) | (81,040) | |
Allowance for equity funds used during construction | (74) | 5,688 | |
Other investing | 285 | 299 | |
Net cash used in investing activities | (61,266) | (75,053) | |
Financing activities | |||
Draws on credit facilities | 150,000 | 33,000 | |
Payments on credit facilities | 0 | (33,000) | |
Repayment of long-term debt | (11,055) | (10,382) | |
Other financing | (148) | (142) | |
Net cash provided by (used in) financing activities | 138,797 | (10,524) | |
Net (decrease) increase in cash, cash equivalents, restricted cash, and restricted cash equivalents | 121,581 | (15,608) | |
Cash, cash equivalents, restricted cash, and restricted cash equivalents at beginning of period | 80,952 | [3] | 61,877 |
Cash, cash equivalents, restricted cash, and restricted cash equivalents at end of period | 202,533 | [4] | 46,269 |
Supplementary cash flow information | |||
Interest paid, net of amount capitalized | 605 | 1,348 | |
Supplementary non-cash investing and financing activities | |||
Accrued additions to property, plant, and equipment | $ 11,015 | $ 49,477 | |
[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 $350,231, current restricted cash and cash equivalents of $4,054, and non-current restricted cash and cash equivalents of $9,899. | ||
[3] | Includes cash and cash equivalents of $55,489, current restricted cash and cash equivalents of $11,100, and non-current restricted cash and cash equivalents of $14,363. | ||
[4] | Includes cash and cash equivalents of $189,423, current restricted cash and cash equivalents of $4,054, and non-current restricted cash and cash equivalents of $9,056. |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Cash and cash equivalents | $ 350,231 | $ 116,292 |
Restricted cash and cash equivalents, current | 4,054 | 11,100 |
Restricted cash and cash equivalents, noncurrent | 9,899 | 15,203 |
CLECO POWER | ||
Cash and cash equivalents | 189,423 | 55,489 |
Restricted cash and cash equivalents, current | 4,054 | 11,100 |
Restricted cash and cash equivalents, noncurrent | $ 9,056 | $ 14,363 |
Condensed Consolidated Statem_6
Condensed Consolidated Statements of Changes in Member’s Equity (Unaudited) - USD ($) $ in Thousands | Total | MEMBERSHIP INTEREST | RETAINED EARNINGS | AOCI | CLECO POWER | CLECO POWERMEMBERSHIP INTEREST | CLECO POWERAOCI |
Balances, beginning of period at Dec. 31, 2018 | $ 2,124,740 | $ 2,069,376 | $ 53,578 | $ 1,786 | $ 1,594,533 | $ 1,607,715 | $ (13,182) |
Increase (Decrease) in Equity [Roll Forward] | |||||||
Contribution from member | 384,900 | 384,900 | |||||
Net income | 20,557 | 20,557 | 26,712 | 26,712 | |||
Other comprehensive income (loss), net of tax | (135) | (135) | 220 | 220 | |||
Balances, end of period at Mar. 31, 2019 | 2,530,062 | 2,069,376 | 459,035 | 1,651 | 1,621,465 | 1,634,427 | (12,962) |
Balances, beginning of period at Dec. 31, 2019 | 2,643,006 | 2,069,376 | 591,143 | (17,513) | 1,713,392 | 1,735,977 | (22,585) |
Increase (Decrease) in Equity [Roll Forward] | |||||||
Net income | 6,328 | 6,328 | 11,831 | 11,831 | |||
Other comprehensive income (loss), net of tax | 414 | 414 | 490 | 490 | |||
Balances, end of period at Mar. 31, 2020 | $ 2,649,748 | $ 2,069,376 | $ 597,471 | $ (17,099) | $ 1,725,713 | $ 1,747,808 | $ (22,095) |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2020 | |
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 * Loan held at Diversified Lands that is fully reserved for at March 31, 2020. 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. |
Business Combinations
Business Combinations | 3 Months Ended |
Mar. 31, 2020 | |
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 |
Recent Authoritative Guidance
Recent Authoritative Guidance | 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
Leases | 3 Months Ended |
Mar. 31, 2020 | |
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) Consists of the deferred lease revenue resulting from the fair value of the lease between Cottonwood Energy and a special-purpose entity that is a subsidiary of NRG Energy. For more information, see Note 2 — “Business Combinations.” |
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) Consists of the deferred lease revenue resulting from the fair value of the lease between Cottonwood Energy and a special-purpose entity that is a subsidiary of NRG Energy. For more information, see Note 2 — “Business Combinations.” |
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) Consists of the deferred lease revenue resulting from the fair value of the lease between Cottonwood Energy and a special-purpose entity that is a subsidiary of NRG Energy. For more information, see Note 2 — “Business Combinations.” |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2020 | |
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) Includes fuel recovery revenue. (2) Amortization of intangible assets related to Cleco Power’s wholesale power supply agreements. (3) Includes $0.2 million of electric customer credits. (4) Includes $3.7 million of other miscellaneous fee revenue. (5) Includes interdepartmental rents and support services. This revenue is eliminated upon consolidation. (6) Includes realized gains associated with FTRs of $1.4 million . (7) Includes $15.6 million in lease revenue related to the Cottonwood Sale Leaseback and $2.3 million of deferred lease revenue amortization. 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) Includes fuel recovery revenue. (2) Amortization of intangible assets related to Cleco Power’s wholesale power supply agreements. (3) Includes $4.4 million of other miscellaneous fee revenue and $2.4 million of Teche Unit 3 SSR revenue at Cleco Power. (4) Includes interdepartmental rents and support services. This revenue is eliminated upon consolidation. (5) Includes realized gains associated with FTRs of $4.8 million and the reversal of the LCFC revenue of $(2.6) million . (6) Includes $9.8 million in lease revenue related to the Cottonwood Sale Leaseback and $1.4 million of deferred lease revenue amortization. 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. |
Regulatory Assets and Liabiliti
Regulatory Assets and Liabilities | 3 Months Ended |
Mar. 31, 2020 | |
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) Represents regulatory assets for past expenditures that were not earning a return on investment at March 31, 2020, and December 31, 2019, respectively. All other assets are earning a return on investment. 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) Cleco regulatory assets include acquisition accounting adjustments as a result of the 2016 Merger. |
Fair Value Accounting
Fair Value Accounting | 3 Months Ended |
Mar. 31, 2020 | |
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 no t experience any transfers between levels within the fair value hierarchy. Commodity Contracts The following tables present the fair values of derivative instruments and their respective line items as recorded on Cleco and Cleco Power’s Condensed Consolidated Balance Sheets at 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) For the three months ended March 31, 2020 , unrealized losses associated with FTRs for Cleco Power of $1.3 million were reported through Accumulated deferred fuel on the balance sheet. For the three months ended March 31, 2019 , unrealized losses associated with FTRs for Cleco Power of $2.9 million were reported through Accumulated deferred fuel on the balance sheet. Cleco Power AMOUNT OF GAIN(LOSS) RECOGNIZED IN INCOME ON DERIVATIVES FOR THE THREE MONTHS ENDED 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) For the three months ended March 31, 2020 , unrealized losses associated with FTRs of $1.3 million were reported through Accumulated deferred fuel on the balance sheet. For the three months ended March 31, 2019 , unrealized losses associated with FTRs of $2.9 million were reported through Accumulated deferred fuel on the balance sheet. 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. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2020 | |
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% . |
Pension Plan and Employee Benef
Pension Plan and Employee Benefits | 3 Months Ended |
Mar. 31, 2020 | |
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 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2020 | |
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. |
Disclosures about Segments
Disclosures about Segments | 3 Months Ended |
Mar. 31, 2020 | |
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) Balances as of December 31, 2019 |
Regulation and Rates
Regulation and Rates | 3 Months Ended |
Mar. 31, 2020 | |
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 March 31, 2020 , Cleco Power h ad $1.0 million accrued for the change in ROE. For more information on the ROE complaints, see Note 14 — “Litigation, Other Commitments and Contingencies, and Disclosures about Guarantees — Litigation — Transmission ROE.” FRP Cleco Power’s annual retail earnings are subject to an FRP that was approved by the LPSC in June 2014. Under the terms of Cleco Power’s current FRP, Cleco Power is allowed to earn a target ROE of 10.0% , while providing the opportunity to earn up to 10.9% . Additionally, 60.0% of retail earnings between 10.9% and 11.75% , and all retail earnings over 11.75% , are required to be refunded to customers. The amount of credits due to customers, if any, is determined by Cleco Power and the LPSC, annually. Credits are typically included on customers’ bills the following summer, but the amount and timing of the refunds are ultimately subject to LPSC approval. On June 28, 2019, Cleco Power filed an application with the LPSC for a new FRP, with anticipated new rates being effective July 1, 2020. Cleco Power has responded to several sets of data requests relating to the new FRP. Cleco Power must file annual monitoring reports no later than October 31 for the 12-month period ending June 30. 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. |
Variable Interest Entities
Variable Interest Entities | 3 Months Ended |
Mar. 31, 2020 | |
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 , consisted of its equity investment of $17.1 million . 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. |
Litigation, Other Commitments a
Litigation, Other Commitments and Contingencies, and Disclosures about Guarantees | 3 Months Ended |
Mar. 31, 2020 | |
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 , No. 251,383B (filed October 27, 2014), • Moore v. Macquarie Infrastructure and Real Assets , No. 251,417C (filed October 30, 2014), • Trahan v. Williamson , No. 251,456C (filed November 5, 2014), and • L’Herisson v. Macquarie Infrastructure and Real Assets , No. 251,515F (filed November 14, 2014). In November 2014, the plaintiff in the Braunstein action moved for a dismissal of the action without prejudice, and that motion was granted in November 2014. In December 2014, the Court consolidated the remaining three actions and appointed interim co-lead counsel, and dismissed the investors in Cleco Partners as defendants, per agreement of the parties. Also, in December 2014, the plaintiffs in the consolidated action filed a Consolidated Amended Verified Derivative and Class Action Petition for Damages and Preliminary and Permanent Injunction. The three actions filed in the Civil District Court for Orleans Parish were captioned as follows: • Butler v. Cleco Corporation , No. 2014-10776 (filed November 7, 2014), • Creative Life Services, Inc. v. Cleco Corporation , No. 2014-11098 (filed November 19, 2014), and • Cashen v. Cleco Corporation , No. 2014-11236 (filed November 21, 2014). In December 2014, the directors and Cleco filed declinatory exceptions in each action on the basis that each action was improperly brought in Orleans Parish and should either be transferred to the Ninth Judicial District Court for Rapides Parish or dismissed. Also, in December 2014, the plaintiffs in each action jointly filed a motion to consolidate the three actions pending in Orleans Parish and to appoint interim co-lead plaintiffs and co-lead counsel. In January 2015, the Court in the Creative Life Services case sustained the defendants’ declinatory exceptions and dismissed the case so that it could be transferred to the Ninth Judicial District Court for Rapides Parish. In February 2015, the plaintiffs in Butler and Cashen also consented to the dismissal of their cases from Orleans Parish so they could be transferred to the Ninth Judicial District Court for Rapides Parish. By operation of the December 2014 order of the Ninth Judicial District Court for Rapides Parish, the Butler , Cashen , and Creative Life Services actions were consolidated into the actions pending in Rapides Parish. In February 2015, the Ninth Judicial District Court for Rapides Parish held a hearing on a motion for preliminary injunction filed by plaintiffs in the consolidated action seeking to enjoin the shareholder vote for approval of the Merger Agreement. The District Court heard and denied the plaintiffs’ motion. In June 2015, the plaintiffs filed their Second Consolidated Amended Verified Derivative and Class Action Petition. Cleco filed exceptions seeking dismissal of the second amended petition in July 2015. The LPSC voted to approve the 2016 Merger before the Court could consider the plaintiffs’ peremptory exceptions. In March 2016 and May 2016, the plaintiffs filed their Third Consolidated Amended Verified Derivative Petition for Damages and Preliminary and Permanent Injunction and their Fourth Verified Consolidated Amended Class Action Petition, respectively. The fourth amended petition, which remains the operative petition and was filed after the 2016 Merger closed, eliminated the request for preliminary and permanent injunction and also named an additional executive officer as a defendant. The defendants filed exceptions seeking dismissal of the fourth amended Petition. In September 2016, 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 Judicial District Court for Avoyelles Parish, Louisiana (the “District Court”), Cleco made such promises of funding assistance in order to cultivate a new industrial electric customer which would increase its revenues under a power supply agreement that it executed with Gulf Coast. Gulf Coast seeks unspecified damages arising from its inability to raise sufficient funds to complete the project, including lost profits. Cleco filed an Exception of No Cause of Action arguing that the case should be dismissed. The District Court denied Cleco’s exception in December 2015, after considering briefs and arguments. In January 2016, Cleco appealed the District Court’s denial of its exception by filing with the Third Circuit Court of Appeal. In June 2016, the Third Circuit Court of Appeal denied the request to have the case dismissed. In July 2016, Cleco filed a writ to the Louisiana Supreme Court seeking a review of the District Court’s denial of Cleco’s exception. In November 2016, the Louisiana Supreme Court denied Cleco’s writ application. In February 2016, the parties agreed to a stay of all proceedings pending discussions concerning settlement. In May 2016, the District Court lifted the stay at the request of Gulf Coast. The parties are currently participating in discovery. Cleco believes the allegations of the petition are contradicted by the written documents executed by Gulf Coast, are otherwise without merit, and that it has substantial meritorious defenses to the claims alleged by Gulf Coast. Sabine River Flood In March 2017, Cleco was served with a summons in Perry Bonin, Ace Chandler, and Michael Manuel, et al v. Sabine River Authority of Texas and Sabine River Authority of Louisiana , No. B-160173-C. The action was filed in the 163rd Judicial District Court for Orange County, Texas, and relates to flooding that occurred in Texas and Louisiana in March 2016. The plaintiffs have alleged that the flooding was the result of the release of water from the Toledo Bend spillway gates into the Sabine River. While the plaintiffs have made numerous allegations, they have specifically alleged that Cleco Power, included as one of several companies and governmental bodies, failed to repair one of the two hydroelectric generators at the Toledo Bend Dam, which in turn contributed to the flooding. Cleco Power does not operate the hydroelectric generator. The suit was removed to federal court in Texas. The new federal case is Perry Bonin, et al. v. Sabine River Authority of Texas et al. , No. 17-cv-134, U.S. District Court for the Eastern District of Texas ( Bonin Case). The plaintiffs moved to remand the case to state court, but the district court found that the case raises a substantial federal question and denied the motion to remand. Cleco Power, along with its co-defendants, filed a motion to dismiss on various grounds, primarily arguing that the plaintiffs’ claims are preempted because they infringe on FERC’s exclusive control of dam operations. The district court granted the motion to dismiss in part, declining to rule on some of the arguments raised by the defendants, and granted the plaintiffs leave to amend their complaint. The plaintiffs filed a Fifth Amended Complaint in March 2018. Cleco Power filed a new motion to dismiss the plaintiffs’ claims. In March 2018, approximately 26 other individual plaintiffs filed a petition against Cleco Power and other defendants in Larry Addison, et al. v. Sabine River Authority of Texas, et al. , No. D180096-C. The action was filed in the 260th Judicial District Court for Orange County, Texas. The defendants removed the case to federal court in April 2018. The new federal case is Larry Addison, et al. v. Sabine River Authority of Texas, et al ., No. 18-cv-153, U.S. District Court for the Eastern District of Texas. The allegations are essentially identical to those in the Bonin Case. Also, in April 2018, Cleco Power filed a motion to dismiss on the same grounds that previously were successful in the Bonin Case. In July 2018, the district court entered an order consolidating the Addison Case with the Bonin Case. Management believes that both cases, as they relate to Cleco Power, have no merit. In August 2018, the Judge entered an order requiring the plaintiffs to file a more definitive statement to clarify the plaintiffs’ claims. In response thereto, the plaintiffs filed a Sixth Amended Petition in September 2018. Cleco Power filed a response in October 2018. All claims were dismissed against Cleco Power by ruling of the Judge on March 18, 2019. The plaintiffs filed an appeal of the dismissal with the United States Court of Appeals for the Fifth Circuit. The case is fully briefed before the Fifth Circuit Court of Appeals, and an oral argument was scheduled for the week of March 30, 2020; however, oral arguments have been delayed due to impacts from the COVID-19 pandemic. 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 , in the U.S. District Court for the Western District of Louisiana. Saulsbury Industries, Inc. alleging that Cleco Power and Cabot Corporation caused delays in the St. Mary Clean Energy Center project, resulting in alleged impacts to Saulsbury Industries, Inc.’s direct and indirect costs. On June 5, 2019, Cleco Power and Cabot Corporation each filed separate motions to dismiss. On October 24, 2019, the District Court denied Cleco’s motion as premature and ruled that Saulsbury Industries, Inc. had six weeks to conduct discovery on specified jurisdictional issues. The current procedural posture of the Western District of Louisiana case reflects a recognition by Cleco Power and Saulsbury Industries, Inc. that subject matter jurisdiction has not been established in relation to Cleco Power and Saulsbury Industries, Inc. and that this action, insofar as it relates to Cleco Power and Saulsbury Industries, Inc., will not proceed in federal court. On October 10, 2019, Cleco Power was served with a summons in Saulsbury Industries, Inc. v. Cabot Corporation and Cleco Power LLC in the 16th Judicial District Court for St. Mary Parish, No. 133910-A. Saulsbury Industries, Inc. asserted the same claim as the Western District Litigation and further asserts claims for payment on an open account. On December 9, 2019, Cleco moved to stay the case, arguing that the Rapides Parish suit should proceed. On February 14, 2020, the court granted Cleco’s motion, which stay order remains in place until lifted. 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. |
Affiliate Transactions
Affiliate Transactions | 3 Months Ended |
Mar. 31, 2020 | |
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 |
Intangible Assets and Liabiliti
Intangible Assets and Liabilities | 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 Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Mar. 31, 2020 | |
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 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 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 ) |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
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 |
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 |
Restricted Cash and Cash Equivalents | 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.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. |
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 |
Fair Value Measurements and Disclosures | Various accounting pronouncements require certain assets and liabilities to be measured at their fair values. Some assets and liabilities are required to be measured at their fair value each reporting period, while others are required to be measured only one time, generally the date of acquisition or debt issuance. Cleco and Cleco Power disclose the fair value of certain assets and liabilities by one of three levels when required for recognition purposes. |
Derivatives and Other Risk Management Activity | Cleco’s Energy Market Risk Management Policy authorizes hedging of commodity price risk with physical or financially settled derivative instruments. Some of these contracts may qualify for the normal purchase, normal sale (NPNS) exception under derivative accounting guidance. Contracts that do not qualify for NPNS accounting treatment or are not elected for NPNS accounting treatment are marked-to-market and recorded on the balance sheet at their fair value. 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. |
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. |
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. |
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. 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 |
Income Taxes | Cleco classifies income tax penalties as a component of other expense.Cleco classifies all interest related to uncertain tax positions as a component of interest payable and interest expense. |
Segment Reporting | The financial results in the following tables are presented on an accrual basis. Management evaluates the performance of its 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. |
Equity Method Investments | Cleco and Cleco Power apply the equity method of accounting to report the investment in Oxbow in the consolidated financial statements. Under the equity method, the assets and liabilities of this entity are reported as Equity investment in investee on Cleco and Cleco Power’s Condensed Consolidated Balance Sheets. The revenue and expenses (excluding income taxes) of this entity are netted and reported as equity income or loss from investees on Cleco and Cleco Power’s Condensed Consolidated Statements of Income. |
Variable Interest Entities | Cleco and Cleco Power apply the equity method of accounting to report the investment in Oxbow in the consolidated financial statements. Under the equity method, the assets and liabilities of this entity are reported as Equity investment in investee on Cleco and Cleco Power’s Condensed Consolidated Balance Sheets. The revenue and expenses (excluding income taxes) of this entity are netted and reported as equity income or loss from investees on Cleco and Cleco Power’s Condensed Consolidated Statements of Income. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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 |
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 * Loan held at Diversified Lands that is fully reserved for at March 31, 2020. |
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 |
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 (Tables)
Business Combinations (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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 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 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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) Consists of the deferred lease revenue resulting from the fair value of the lease between Cottonwood Energy and a special-purpose entity that is a subsidiary of NRG Energy. For more information, see Note 2 — “Business Combinations.” |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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) Includes fuel recovery revenue. (2) Amortization of intangible assets related to Cleco Power’s wholesale power supply agreements. (3) Includes $0.2 million of electric customer credits. (4) Includes $3.7 million of other miscellaneous fee revenue. (5) Includes interdepartmental rents and support services. This revenue is eliminated upon consolidation. (6) Includes realized gains associated with FTRs of $1.4 million . (7) Includes $15.6 million in lease revenue related to the Cottonwood Sale Leaseback and $2.3 million of deferred lease revenue amortization. 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) Includes fuel recovery revenue. (2) Amortization of intangible assets related to Cleco Power’s wholesale power supply agreements. (3) Includes $4.4 million of other miscellaneous fee revenue and $2.4 million of Teche Unit 3 SSR revenue at Cleco Power. (4) Includes interdepartmental rents and support services. This revenue is eliminated upon consolidation. (5) Includes realized gains associated with FTRs of $4.8 million and the reversal of the LCFC revenue of $(2.6) million . (6) Includes $9.8 million in lease revenue related to the Cottonwood Sale Leaseback and $1.4 million of deferred lease revenue amortization. |
Regulatory Assets and Liabili_2
Regulatory Assets and Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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) Cleco regulatory assets include acquisition accounting adjustments as a result of the 2016 Merger. |
CLECO POWER | |
Regulatory Assets [Line Items] | |
Schedule of Regulatory Assets | The following table summarizes Cleco Power’s regulatory assets and liabilities: 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) Represents regulatory assets for past expenditures that were not earning a return on investment at March 31, 2020, and December 31, 2019, respectively. All other assets are earning a return on investment. |
Schedule of Regulatory Liabilities | The following table summarizes Cleco Power’s regulatory assets and liabilities: 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) Represents regulatory assets for past expenditures that were not earning a return on investment at March 31, 2020, and December 31, 2019, respectively. All other assets are earning a return on investment. |
Fair Value Accounting (Tables)
Fair Value Accounting (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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 . |
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 |
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. |
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 |
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) For the three months ended March 31, 2020 , unrealized losses associated with FTRs for Cleco Power of $1.3 million were reported through Accumulated deferred fuel on the balance sheet. For the three months ended March 31, 2019 , unrealized losses associated with FTRs for Cleco Power of $2.9 million |
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 . |
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 |
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. |
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 |
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) For the three months ended March 31, 2020 , unrealized losses associated with FTRs of $1.3 million were reported through Accumulated deferred fuel on the balance sheet. For the three months ended March 31, 2019 , unrealized losses associated with FTRs of $2.9 million were reported through Accumulated deferred fuel on the balance sheet. |
Pension Plan and Employee Ben_2
Pension Plan and Employee Benefits (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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 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 |
Current and Non-Current Portions of Other Benefits Liability | The current and non-current portions of the SERP liability for Cleco and Cleco Power at 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 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 |
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 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 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 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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 % |
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 % |
Disclosures about Segments (Tab
Disclosures about Segments (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | 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) Balances as of December 31, 2019 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) - CLECO POWER | 3 Months Ended |
Mar. 31, 2020 | |
Variable Interest Entity [Line Items] | |
Equity Method Investments | 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 $ — $ — 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 |
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 (Tables)
Affiliate Transactions (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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 (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_2
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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 |
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 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 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 ) |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Restricted Cash and Cash Equivalents (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Dec. 31, 2019 | Feb. 04, 2019 | |
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Current | $ 4,054 | $ 11,100 | |
Non-current | 9,899 | 15,203 | |
Total restricted cash and cash equivalents | 13,953 | 26,303 | |
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 | |
Charitable contributions | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Current | 1,200 | 1,200 | |
Non-current | 741 | 2,094 | |
Rate credit escrow | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Current | 231 | 268 | |
Diversified Lands’ mitigation escrow | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Non-current | 23 | 21 | |
Cleco Cajun’s defense fund | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Non-current | 720 | 719 | |
Cleco Cajun’s margin deposits | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Non-current | 100 | 100 | |
Future storm restoration costs | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Non-current | 8,315 | 12,269 | |
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 | ||
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 | |
Non-current | 9,056 | 14,363 | |
Total restricted cash and cash equivalents | 13,110 | 25,463 | |
CLECO POWER | Cleco Katrina/Rita’s storm recovery bonds | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Current | 2,623 | 9,632 | |
CLECO POWER | Charitable contributions | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Current | 1,200 | 1,200 | |
Non-current | 741 | 2,094 | |
CLECO POWER | Rate credit escrow | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Current | 231 | 268 | |
CLECO POWER | Future storm restoration costs | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Non-current | $ 8,315 | $ 12,269 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Changes in Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Jan. 01, 2020 | |
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 | |
OTHERS | ||
Balances, Dec. 31, 2019 | 1,250 | |
Current period provision | 388 | |
Charge-offs | 0 | |
Recovery | 0 | |
Balances, Mar. 31, 2020 | 1,638 | |
TOTAL | ||
Balances, Dec. 31, 2019 | 4,255 | |
Current period provision | 2,886 | |
Charge-offs | (4,092) | |
Recovery | 641 | |
Balances, Mar. 31, 2020 | 3,761 | |
Accounting Standards Update 2016-13 | ||
ACCOUNTS RECEIVABLE | ||
CECL adoption | $ 71 | |
TOTAL | ||
CECL adoption | 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 | |
CLECO POWER | Accounting Standards Update 2016-13 | ||
ACCOUNTS RECEIVABLE | ||
CECL adoption | 71 | |
TOTAL | ||
CECL adoption | $ 71 |
Business Combinations - Narrati
Business Combinations - Narrative (Details) - USD ($) $ in Thousands | Feb. 04, 2019 | Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 |
Business Acquisition [Line Items] | ||||
Electric operations | $ 311,157 | $ 312,949 | ||
Decrease in other operations revenue | (44,908) | (39,397) | ||
Depreciation and amortization | $ 55,873 | 49,856 | ||
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 | |||
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 |
Business Combinations - Assets
Business Combinations - Assets Acquired and Liabilities Assumed (Details) - South Central Generating $ in Thousands | Feb. 04, 2019USD ($) |
Current assets | |
Cash and cash equivalents | $ 146,494 |
Customer and other accounts receivable | 49,809 |
Energy risk management assets | 4,193 |
Other current assets | 10,056 |
Non-current assets | |
Property, plant, and equipment, net | 741,203 |
Prepayments | 36,166 |
Restricted cash and cash equivalents | 707 |
Intangible assets | 98,900 |
Other deferred charges | 133 |
Total assets acquired | 1,135,380 |
Current liabilities | |
Accounts payable | 38,478 |
Taxes payable | 723 |
Energy risk management liabilities | 241 |
Other current liabilities | 14,570 |
Non-current liabilities | |
Accumulated deferred federal and state income taxes, net | 7,165 |
Deferred lease revenue | 58,300 |
Intangible liabilities | 38,300 |
Asset retirement obligations | 15,323 |
Operating lease liabilities | 110 |
Total liabilities assumed | 173,210 |
Total purchase price consideration | 962,170 |
Fuel inventory | |
Current assets | |
Inventory | 22,060 |
Materials and supplies | |
Current assets | |
Inventory | $ 25,659 |
Business Combinations - Measure
Business Combinations - Measurement Period Adjustments (Details) - South Central Generating $ in Thousands | 3 Months Ended |
Jun. 30, 2019USD ($) | |
Current assets | |
Customer and other accounts receivable | $ 1,408 |
Other current assets | 56 |
Non-current assets | |
Property, plant, and equipment, net | 13,297 |
Prepayments | (56) |
Intangible assets | (3,600) |
Other deferred charges | 1 |
Current liabilities | |
Accounts payable | 3,022 |
Energy risk management liabilities | (1) |
Other current liabilities | 327 |
Non-current liabilities | |
Accumulated deferred federal and state income taxes, net | 421 |
Deferred lease revenue | (3,600) |
Intangible liabilities | 6,400 |
Asset retirement obligations | 4,534 |
Operating lease liabilities | $ 3 |
Business Combinations - Unaudit
Business Combinations - Unaudited Pro Forma Information (Details) - South Central Generating $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Business Acquisition [Line Items] | |
Operating revenue, net | $ 381,796 |
Net income | $ 32,986 |
Recent Authoritative Guidance (
Recent Authoritative Guidance (Details) $ in Thousands | Jan. 01, 2020USD ($) |
Accounting Standards Update 2016-13 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
CECL adoption | $ 71 |
Leases - Cottonwood Sale Leaseb
Leases - Cottonwood Sale Leaseback Agreement (Details) $ in Millions | Mar. 31, 2020USD ($) |
Cottonwood Energy | |
Lessor, Lease, Description [Line Items] | |
Fixed lease payments per year | $ 40 |
Leases - Lease Income Under Cot
Leases - Lease Income Under Cottonwood Sale Leaseback (Details) - Cleco Cajun - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
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 - Disaggreg
Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | $ 328,289 | $ 330,690 |
Revenue unrelated to contracts with customers | ||
Other | 19,283 | 13,496 |
Total revenue unrelated to contracts with customers | 19,283 | 13,496 |
Operating revenue, net | 347,572 | 344,186 |
Electric customer credits | 8,493 | 8,160 |
Deferred lease amortization | 2,301 | 1,440 |
Total retail revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 172,455 | 191,240 |
Residential | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 81,571 | 87,148 |
Commercial | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 61,110 | 65,380 |
Industrial | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 32,210 | 37,870 |
Other retail | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 3,461 | 3,681 |
Surcharge | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 2,443 | 5,321 |
Electric customer credits | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | (8,340) | (8,160) |
Wholesale, net | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 128,956 | 111,317 |
Transmission | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 23,182 | 21,306 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 3,696 | 6,827 |
Affiliate | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 0 | 0 |
CLECO POWER | ||
Revenue unrelated to contracts with customers | ||
Deferred lease amortization | 1,400 | |
CLECO POWER | LCFC | ||
Revenue unrelated to contracts with customers | ||
Other | (2,600) | |
CLECO POWER | Price Risk Derivative | ||
Revenue unrelated to contracts with customers | ||
Other | 1,400 | 4,800 |
CLECO POWER | SSR | Other | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 2,400 | |
CLECO CAJUN | ||
Revenue unrelated to contracts with customers | ||
Lease revenue | 9,800 | |
Deferred lease amortization | 2,300 | |
Operating Segments | CLECO POWER | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 231,554 | 266,516 |
Revenue unrelated to contracts with customers | ||
Other | 1,406 | 2,229 |
Total revenue unrelated to contracts with customers | 1,406 | 2,229 |
Operating revenue, net | 232,960 | 268,745 |
Electric customer credits | 8,340 | 8,160 |
Operating Segments | CLECO POWER | Total retail revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 172,455 | 191,240 |
Operating Segments | CLECO POWER | Residential | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 81,571 | 87,148 |
Operating Segments | CLECO POWER | Commercial | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 61,110 | 65,380 |
Operating Segments | CLECO POWER | Industrial | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 32,210 | 37,870 |
Operating Segments | CLECO POWER | Other retail | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 3,461 | 3,681 |
Operating Segments | CLECO POWER | Surcharge | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 2,443 | 5,321 |
Operating Segments | CLECO POWER | Electric customer credits | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | (8,340) | (8,160) |
Operating Segments | CLECO POWER | Wholesale, net | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 42,229 | 55,546 |
Operating Segments | CLECO POWER | Transmission | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 12,069 | 12,579 |
Operating Segments | CLECO POWER | Other | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 3,695 | 6,851 |
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 |
Operating Segments | CLECO CAJUN | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 102,239 | 66,892 |
Revenue unrelated to contracts with customers | ||
Other | 17,877 | 11,267 |
Total revenue unrelated to contracts with customers | 17,877 | 11,267 |
Operating revenue, net | 120,116 | 78,159 |
Electric customer credits | 153 | 0 |
Lease revenue | 15,600 | |
Operating Segments | CLECO CAJUN | Total retail revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 0 | 0 |
Operating Segments | CLECO CAJUN | Residential | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 0 | 0 |
Operating Segments | CLECO CAJUN | Commercial | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 0 | 0 |
Operating Segments | CLECO CAJUN | Industrial | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 0 | 0 |
Operating Segments | CLECO CAJUN | Other retail | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 0 | 0 |
Operating Segments | CLECO CAJUN | Surcharge | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 0 | 0 |
Operating Segments | CLECO CAJUN | Electric customer credits | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 0 | 0 |
Operating Segments | CLECO CAJUN | Wholesale, net | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 89,147 | 58,191 |
Operating Segments | CLECO CAJUN | Transmission | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 12,931 | 8,727 |
Revenue unrelated to contracts with customers | ||
Electric customer credits | 200 | |
Operating Segments | CLECO CAJUN | Other | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 0 | (26) |
Operating Segments | CLECO CAJUN | Affiliate | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 161 | 0 |
OTHER | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 26,859 | 24,117 |
Revenue unrelated to contracts with customers | ||
Other | 0 | 0 |
Total revenue unrelated to contracts with customers | 0 | 0 |
Operating revenue, net | 26,859 | 24,117 |
Electric customer credits | 0 | 0 |
OTHER | Total retail revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 0 | 0 |
OTHER | Residential | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 0 | 0 |
OTHER | Commercial | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 0 | 0 |
OTHER | Industrial | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 0 | 0 |
OTHER | Other retail | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 0 | 0 |
OTHER | Surcharge | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 0 | 0 |
OTHER | Electric customer credits | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 0 | 0 |
OTHER | Wholesale, net | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | (2,420) | (2,420) |
OTHER | Transmission | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 0 | 0 |
OTHER | Other | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 1 | 2 |
OTHER | Affiliate | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 29,278 | 26,535 |
ELIMINATIONS | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | (32,363) | (26,835) |
Revenue unrelated to contracts with customers | ||
Other | 0 | 0 |
Total revenue unrelated to contracts with customers | 0 | 0 |
Operating revenue, net | (32,363) | (26,835) |
Electric customer credits | 0 | 0 |
ELIMINATIONS | Total retail revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 0 | 0 |
ELIMINATIONS | Residential | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 0 | 0 |
ELIMINATIONS | Commercial | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 0 | 0 |
ELIMINATIONS | Industrial | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 0 | 0 |
ELIMINATIONS | Other retail | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 0 | 0 |
ELIMINATIONS | Surcharge | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 0 | 0 |
ELIMINATIONS | Electric customer credits | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 0 | 0 |
ELIMINATIONS | Wholesale, net | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 0 | 0 |
ELIMINATIONS | Transmission | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | (1,818) | 0 |
ELIMINATIONS | Other | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 0 | 0 |
ELIMINATIONS | Affiliate | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | $ (30,545) | $ (26,835) |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) $ in Millions | Mar. 31, 2020USD ($) |
Revenue from Contract with Customer [Abstract] | |
Unsatisfied performance obligations | $ 80.7 |
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_3
Regulatory Assets and Liabilities - Schedule of Regulatory Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Regulatory Liabilities [Line Items] | ||
Total regulatory assets, net | $ 300,087 | $ 311,525 |
CLECO POWER | ||
Regulatory Liabilities [Line Items] | ||
Total regulatory assets, net | 144,727 | 152,549 |
CLECO POWER | Deferred taxes, net | ||
Regulatory Liabilities [Line Items] | ||
Regulatory liabilities | (146,225) | (146,948) |
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_4
Regulatory Assets and Liabilities - Schedule of Regulatory Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Regulatory Assets [Line Items] | ||
Total regulatory assets, net | $ 300,087 | $ 311,525 |
Fair value of long-term debt | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | 125,105 | 127,977 |
Postretirement costs | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | 16,902 | 17,399 |
Financing costs | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | 7,849 | 7,935 |
Debt issuance costs | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | 5,504 | 5,665 |
CLECO POWER | ||
Regulatory Assets [Line Items] | ||
Total regulatory assets, net | 144,727 | 152,549 |
CLECO POWER | Interest costs | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | 3,896 | 3,958 |
CLECO POWER | AROs | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | 3,815 | 3,668 |
CLECO POWER | Postretirement costs | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | 147,889 | 151,543 |
CLECO POWER | Tree trimming costs | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | 11,384 | 11,341 |
CLECO POWER | Training costs | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | 6,202 | 6,241 |
CLECO POWER | Surcredits, net | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | 72 | 145 |
CLECO POWER | AMI deferred revenue requirement | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | 3,000 | 3,136 |
CLECO POWER | Emergency declarations | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | 948 | 1,349 |
CLECO POWER | Production operations and maintenance expenses | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | 6,756 | 7,985 |
CLECO POWER | AFUDC equity gross-up | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | 71,992 | 72,766 |
CLECO POWER | Acquisition/ transaction costs | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | 2,098 | 2,124 |
CLECO POWER | Acquisition/ transaction costs | Coughlin transaction costs | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | 899 | 906 |
CLECO POWER | Financing costs | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | 7,461 | 7,554 |
CLECO POWER | Non-service cost of postretirement benefits | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | 7,551 | 6,739 |
CLECO POWER | Energy efficiency | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | 2,820 | 2,820 |
CLECO POWER | Accumulated deferred fuel | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | $ 16,353 | $ 22,910 |
Fair Value Accounting - Carryin
Fair Value Accounting - Carrying Value and Estimated Fair Value (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
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 |
CARRYING VALUE | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | 3,174,821 | 3,188,664 |
FAIR VALUE | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | 3,295,214 | 3,371,915 |
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 |
CLECO POWER | CARRYING VALUE | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | 1,369,716 | 1,380,688 |
CLECO POWER | FAIR VALUE | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | $ 1,696,053 | $ 1,601,865 |
Fair Value Accounting - Fair Va
Fair Value Accounting - Fair Value of Financial Assets and Liabilities Measured On A Recurring Basis (Details) - Measured On A Recurring Basis - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Asset description | ||
Institutional money market funds | $ 352,549 | $ 129,643 |
Total assets | 354,541 | 136,666 |
Liability description | ||
Total liabilities | 13,177 | 6,417 |
FTRs | ||
Asset description | ||
FTRs and other commodity derivatives | 1,779 | 6,822 |
Liability description | ||
FTRs and other commodity derivatives | 683 | 1,044 |
Other commodity derivatives | ||
Asset description | ||
FTRs and other commodity derivatives | 213 | 201 |
Liability description | ||
FTRs and other commodity derivatives | 12,494 | 5,373 |
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 | 352,549 | 129,643 |
Total assets | 352,762 | 129,844 |
Liability description | ||
Total liabilities | 12,494 | 5,373 |
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 | 213 | 201 |
Liability description | ||
FTRs and other commodity derivatives | 12,494 | 5,373 |
SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | ||
Asset description | ||
Institutional money market funds | 0 | 0 |
FTRs and other commodity derivatives | 1,779 | 6,822 |
Total assets | 1,779 | 6,822 |
Liability description | ||
FTRs and other commodity derivatives | 683 | 1,044 |
Total liabilities | 683 | 1,044 |
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 |
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 | 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 | QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) | ||
Asset description | ||
Institutional money market funds | 0 | 0 |
FTRs and other commodity derivatives | 0 | 0 |
Total assets | 0 | 0 |
Liability description | ||
FTRs and other commodity derivatives | 0 | 0 |
Total liabilities | 0 | 0 |
CLECO POWER | SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) | ||
Asset description | ||
Institutional money market funds | 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 | SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | ||
Asset description | ||
Institutional money market funds | 0 | 0 |
FTRs and other commodity derivatives | 1,673 | 6,311 |
Total assets | 1,673 | 6,311 |
Liability description | ||
FTRs and other commodity derivatives | 524 | 586 |
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 (Details) - Price Risk Derivative - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
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 | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
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 |
Fair Value Accounting - Signifi
Fair Value Accounting - Significant Unobservable Inputs Used in Developing Fair Value of Level 3 Positions (Details) $ in Thousands | Mar. 31, 2020USD ($)$ / MW | Dec. 31, 2019USD ($)$ / MW |
Minimum | ||
FAIR VALUE | ||
FORWARD PRICE RANGE (usd per mwh) | $ / MW | (1.40) | (2.57) |
Maximum | ||
FAIR VALUE | ||
FORWARD PRICE RANGE (usd per mwh) | $ / MW | 2.93 | 2.86 |
Measured On A Recurring Basis | Level 3 | ||
FAIR VALUE | ||
ASSETS | $ 1,779 | $ 6,822 |
LIABILITIES | $ 683 | $ 1,044 |
CLECO POWER | Minimum | ||
FAIR VALUE | ||
FORWARD PRICE RANGE (usd per mwh) | $ / MW | (1.40) | (2.04) |
CLECO POWER | Maximum | ||
FAIR VALUE | ||
FORWARD PRICE RANGE (usd per mwh) | $ / MW | 2.93 | 2.86 |
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 |
LIABILITIES | $ 524 | $ 586 |
Fair Value Accounting - Institu
Fair Value Accounting - Institutional Money Market Funds (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | $ 338,611 | $ 103,409 |
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 |
Non-current restricted cash and cash equivalents | ||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||
Restricted cash and cash equivalents | 9,883 | 15,134 |
CLECO POWER | ||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 184,911 | 49,509 |
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 |
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 | $ 14,294 |
Fair Value Accounting - Fair _2
Fair Value Accounting - Fair Value of Derivative Instruments as Recorded in Condensed Consolidated Balance Sheets (Details) - DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Commodity-related contracts | ||
Commodity-related contracts, net | $ (11,185) | $ 606 |
Price Risk Derivative | ||
Commodity-related contracts | ||
Energy risk management assets | 1,779 | 6,822 |
Energy risk management liabilities | (683) | (1,044) |
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 | 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 (Details) - DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS - Price Risk Derivative - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Commodity-related contracts | ||
Net gain (loss) recognized in income on derivatives | $ (6,093) | $ 1,885 |
Accumulated deferred fuel | ||
Commodity-related contracts | ||
Unrealized losses associated with FTRs | 1,300 | 2,900 |
Electric operations | ||
Commodity-related contracts | ||
Gain recognized in income on derivatives | 1,396 | 5,209 |
Purchased power | ||
Commodity-related contracts | ||
Loss recognized in income on derivatives | (381) | (3,324) |
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 | 645 | 3,223 |
CLECO POWER | Accumulated deferred fuel | ||
Commodity-related contracts | ||
Unrealized losses associated with FTRs | 1,300 | 2,900 |
CLECO POWER | Electric operations | ||
Commodity-related contracts | ||
Gain recognized in income on derivatives | 1,396 | 5,206 |
CLECO POWER | Purchased power | ||
Commodity-related contracts | ||
Loss recognized in income on derivatives | $ (751) | $ (1,983) |
Fair Value Accounting - Narrati
Fair Value Accounting - Narrative (Details) MWh in Millions, MMBTU in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2020MMBTU | Mar. 31, 2020MWh | Dec. 31, 2019MMBTU | Dec. 31, 2019MWh | |
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||||
Volume outstanding | 54.8 | 5.4 | 58.5 | 14.6 |
CLECO POWER | ||||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||||
Volume outstanding | 3.4 | 9.2 |
Debt (Details)
Debt (Details) - USD ($) | Mar. 02, 2020 | Mar. 31, 2020 | Mar. 31, 2019 | May 01, 2020 |
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 | 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 Ben_3
Pension Plan and Employee Benefits - Narrative (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |
Sep. 30, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Pension Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Discretionary contribution | $ 12,300,000 | |||
Pension contributions required through 2024 | $ 66,500,000 | |||
Expected contributions in 2020 | $ 15,500,000 | |||
Defined benefit plan contributions by employer | 4,870,000 | $ 2,952,000 | ||
Other Benefits Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan contributions by employer | 1,257,000 | 643,000 | ||
Assets held-in-trust, noncurrent | 0 | |||
SERP | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan contributions by employer | 1,545,000 | 1,295,000 | ||
CLECO POWER | Other Benefits Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan contributions by employer | 1,200,000 | 700,000 | ||
CLECO POWER | SERP | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan contributions by employer | 200,000 | 300,000 | ||
Other Subsidiaries | Pension Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan contributions by employer | $ 400,000 | $ 500,000 |
Pension Plan and Employee Ben_4
Pension Plan and Employee Benefits - Net Periodic Pension and Benefits Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
PENSION BENEFITS | ||
Components of periodic benefit costs | ||
Service cost | $ 2,328 | $ 2,067 |
Interest cost | 5,130 | 5,650 |
Expected return on plan assets | (6,245) | (6,622) |
Amortizations | ||
Prior period service credit | (15) | (18) |
Net loss (gain) | 3,672 | 1,875 |
Net periodic benefit cost | 4,870 | 2,952 |
OTHER BENEFITS | ||
Components of periodic benefit costs | ||
Service cost | 508 | 288 |
Interest cost | 410 | 400 |
Expected return on plan assets | 0 | 0 |
Amortizations | ||
Prior period service credit | 0 | 0 |
Net loss (gain) | 339 | (45) |
Net periodic benefit cost | 1,257 | 643 |
SERP | ||
Components of periodic benefit costs | ||
Service cost | 95 | 113 |
Interest cost | 733 | 825 |
Amortizations | ||
Prior period service credit | (40) | (35) |
Net loss (gain) | 757 | 392 |
Net periodic benefit cost | $ 1,545 | $ 1,295 |
Pension Plan and Employee Ben_5
Pension Plan and Employee Benefits - Current and Non-Current Portions of the Other Benefits Liability (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Defined Benefit Plan Disclosure [Line Items] | ||
Non-current | $ 283,830 | $ 283,075 |
Other Benefits Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Current | 4,401 | 4,401 |
Non-current | 48,175 | 48,321 |
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 |
Non-current | $ 41,994 | $ 42,080 |
Pension Plan and Employee Ben_6
Pension Plan and Employee Benefits - Current and Non-Current Portions of SERP Liability (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Defined Benefit Plan Disclosure [Line Items] | ||
Non-current | $ 283,830 | $ 283,075 |
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 Ben_7
Pension Plan and Employee Benefits - 401 (K) Plans (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Defined Contribution Plan Disclosure [Line Items] | ||
401(k) Plan expense | $ 3,256 | $ 2,267 |
Other Subsidiaries | ||
Defined Contribution Plan Disclosure [Line Items] | ||
401(k) Plan expense | $ 1,662 | $ 930 |
Income Taxes - Effective Tax Ra
Income Taxes - Effective Tax Rate Reconciliation (Details) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Effective Income Tax Rate [Line Items] | ||
Effective tax rate | 19.80% | 22.60% |
CLECO POWER | ||
Effective Income Tax Rate [Line Items] | ||
Effective tax rate | 22.00% | 23.00% |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Uncertain Tax Positions [Line Items] | |||
Liability for uncertain tax positions | $ 0 | $ 0 | |
Interest payable related to uncertain tax positions | 0 | ||
Penalties | 0 | $ 0 | |
Federal | |||
Uncertain Tax Positions [Line Items] | |||
Net operating losses | 551,400,000 | ||
State | |||
Uncertain Tax Positions [Line Items] | |||
Net operating losses | 82,600,000 | ||
CLECO POWER | |||
Uncertain Tax Positions [Line Items] | |||
Liability for uncertain tax positions | 0 | 0 | |
Interest payable related to uncertain tax positions | $ 0 | $ 0 |
Disclosures about Segments (Det
Disclosures about Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Revenue | |||
Electric operations | $ 311,157 | $ 312,949 | |
Other operations | 44,908 | 39,397 | |
Affiliate revenue | 0 | 0 | |
Electric customer credits | (8,493) | (8,160) | |
Operating revenue, net | 347,572 | 344,186 | |
Depreciation and amortization | 55,873 | 49,856 | |
Interest income | 1,157 | 1,491 | |
Interest charges | 35,149 | 33,999 | |
Federal and state income tax expense (benefit) | 1,562 | 5,986 | |
Net income (loss) | 6,328 | 20,557 | |
Additions to property, plant, and equipment | 65,624 | 83,679 | |
Equity investment in investees | 17,072 | $ 17,072 | |
Goodwill | 1,490,797 | 1,490,797 | |
Total segment assets | 7,676,195 | 7,476,298 | |
Operating Segments | CLECO POWER | |||
Revenue | |||
Electric operations | 224,430 | 257,175 | |
Other operations | 15,764 | 19,430 | |
Affiliate revenue | 1,106 | 300 | |
Electric customer credits | (8,340) | (8,160) | |
Operating revenue, net | 232,960 | 268,745 | |
Depreciation and amortization | 43,677 | 42,377 | |
Interest income | 954 | 994 | |
Interest charges | 18,581 | 17,145 | |
Federal and state income tax expense (benefit) | 3,338 | 7,998 | |
Net income (loss) | 11,831 | 26,712 | |
Additions to property, plant, and equipment | 61,477 | 81,040 | |
Equity investment in investees | 17,072 | 17,072 | |
Goodwill | 1,490,797 | 1,490,797 | |
Total segment assets | 6,098,446 | 5,967,327 | |
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 | |
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 investees | 0 | 0 | |
Goodwill | 0 | 0 | |
Total segment assets | 1,020,099 | 1,011,591 | |
OTHER | |||
Revenue | |||
Electric operations | (2,420) | (2,420) | |
Other operations | 1 | 2 | |
Affiliate revenue | 29,278 | 26,535 | |
Electric customer credits | 0 | 0 | |
Operating revenue, net | 26,859 | 24,117 | |
Depreciation and amortization | 2,094 | 2,069 | |
Interest income | 100 | 417 | |
Interest charges | 16,610 | 17,028 | |
Federal and state income tax expense (benefit) | (8,197) | (5,540) | |
Net income (loss) | (25,039) | (17,210) | |
Additions to property, plant, and equipment | 806 | 1,109 | |
Equity investment in investees | 0 | 0 | |
Goodwill | 0 | 0 | |
Total segment assets | 616,068 | 546,096 | |
ELIMINATIONS | |||
Revenue | |||
Electric operations | 0 | 0 | |
Other operations | (1,818) | 0 | |
Affiliate revenue | (30,545) | (26,835) | |
Electric customer credits | 0 | 0 | |
Operating revenue, net | (32,363) | (26,835) | |
Depreciation and amortization | (1) | 0 | |
Interest income | (52) | (174) | |
Interest charges | (52) | (174) | |
Federal and state income tax expense (benefit) | 0 | (1) | |
Net income (loss) | 1 | (1) | |
Additions to property, plant, and equipment | 0 | $ 0 | |
Equity investment in investees | 0 | 0 | |
Goodwill | 0 | 0 | |
Total segment assets | $ (58,418) | $ (48,716) |
Regulation and Rates (Details)
Regulation and Rates (Details) - USD ($) | 3 Months Ended | ||||
Mar. 31, 2020 | Dec. 31, 2019 | Jul. 31, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Regulation and Rates [Line Items] | |||||
Refund due to customers | $ 29,735,000 | $ 38,903,000 | |||
CLECO POWER | |||||
Regulation and Rates [Line Items] | |||||
Estimated refund for the tax-related benefits from the TCJA | 19,700,000 | ||||
Refund due to customers | 28,921,000 | $ 38,241,000 | $ 79,200,000 | ||
Accrual for related interest | 1,600,000 | ||||
CLECO POWER | FERC | |||||
Regulation and Rates [Line Items] | |||||
Refund due to customers | 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 | Merger Commitments, cost savings | |||||
Regulation and Rates [Line Items] | |||||
Refund due to customers | 2,200,000 | ||||
CLECO POWER | 2017 FRP Monitoring Report | LPSC | |||||
Regulation and Rates [Line Items] | |||||
Refund due to customers | $ 0 | ||||
CLECO POWER | Transmission return on equity | FERC | |||||
Regulation and Rates [Line Items] | |||||
Refund due to customers | $ 1,000,000 | ||||
CLECO POWER | FRP | LPSC | |||||
Regulation and Rates [Line Items] | |||||
Target ROE allowed by FRP | 10.00% | ||||
Percentage of retail earnings within range to be returned to customers (in hundredths) | 60.00% | ||||
ROE for customer credit, low range | 10.90% | ||||
ROE for customer credit, high range | 11.75% | ||||
CLECO POWER | FRP | LPSC | Maximum | |||||
Regulation and Rates [Line Items] | |||||
Target ROE allowed by FRP | 10.90% | ||||
CLECO POWER | 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 (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Variable Interest Entity [Line Items] | ||
Equity investment in investee | $ 17,072 | $ 17,072 |
CLECO POWER | ||
Variable Interest Entity [Line Items] | ||
Equity investment in investee | $ 17,072 | $ 17,072 |
CLECO POWER | Oxbow | ||
Variable Interest Entity [Line Items] | ||
Ownership percentage by Cleco Power (in hundredths) | 50.00% | |
Ownership percentage by other parties (in hundredths) | 50.00% |
Variable Interest Entities - Eq
Variable Interest Entities - Equity Method Investments (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Schedule of Equity Method Investments [Line Items] | |||
Total equity investment in investee | $ 17,072 | $ 17,072 | |
CLECO POWER | |||
Schedule of Equity Method Investments [Line Items] | |||
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 | |
Operating revenue | 1,882 | $ 1,958 | |
Operating expenses | 1,882 | 1,958 | |
Income before taxes | $ 0 | $ 0 |
Variable Interest Entities - Ca
Variable Interest Entities - Carrying Amount of Assets and Liabilities with Maximum Exposure to Loss (Details) - CLECO POWER - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Variable Interest Entity [Line Items] | ||
Oxbow’s net assets/liabilities | $ 34,145 | $ 34,145 |
Oxbow | ||
Variable Interest Entity [Line Items] | ||
Cleco Power’s 50% equity | 17,072 | 17,072 |
Cleco Power’s maximum exposure to loss | $ 17,072 | $ 17,072 |
Litigation, Other Commitments_2
Litigation, Other Commitments and Contingencies, and Disclosures about Guarantees - Litigation (Details) $ in Millions | Mar. 11, 2020USD ($) | Jan. 01, 2020 | Nov. 07, 2019USD ($) | Mar. 31, 2018plaintiff | Sep. 30, 2016 | Jun. 30, 2016petition | Sep. 30, 2015USD ($) | Dec. 31, 2014claim | Nov. 30, 2014 | Dec. 31, 2016claim | Dec. 31, 2019USD ($) | May 31, 2016 | Mar. 31, 2020USD ($) | Sep. 27, 2019findingrecommendation | Feb. 04, 2019USD ($) | Mar. 31, 2017generation_unit |
Loss Contingencies [Line Items] | ||||||||||||||||
Loss contingency, estimate of possible loss | $ 5.1 | |||||||||||||||
South Central Generating | ||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||
Indemnification asset | $ 10 | |||||||||||||||
Contingent liability | $ 10 | |||||||||||||||
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 | $ 6.5 | |||||||||||||||
Gulf Coast Spinning construction of cotton spinning facility | ||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||
Allegations by plaintiff, failure to perform | $ 60 | |||||||||||||||
Actions filed in the 9th Judicial District Court | Alleged Breach of Fiduciary Duties | ||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||
Number of actions filed | claim | 4 | |||||||||||||||
Actions filed in the Civil District Court | Alleged Breach of Fiduciary Duties | ||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||
Number of actions filed | claim | 3 | 3 | ||||||||||||||
Perry Bonin, Ace Chandler, and Michael Manuel, et al v. Sabine River Authority of Texas and Sabine River Authority of Louisiana, No. B-160173-C | Pending Litigation | ||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||
Number of generation units failed to repair | generation_unit | 1 | |||||||||||||||
Number of generation units owned | generation_unit | 2 | |||||||||||||||
Larry Addison, Et Al. V. Sabine River Authority Of Texas, Et Al | Pending Litigation | ||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||
Number of plaintiffs | plaintiff | 26 | |||||||||||||||
CLECO POWER | LPSC 2018-2019 Fuel Audit | ||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||
Fuel expense | $ 565.8 | |||||||||||||||
CLECO POWER | LPSC Nov 2010-Dec 2015 EAC Audit | ||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||
Number of petitions filed with the U.S. Court of Appeals | petition | 6 | |||||||||||||||
CLECO POWER | MISO Transmission Rates | ||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||
Public utilities, proposed return on equity, percentage (in hundredths) | 10.38% | 10.32% | 9.70% | |||||||||||||
CLECO POWER | LPSC | ||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||
Environmental expense | $ 26.2 | |||||||||||||||
CLECO POWER | FERC | ||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||
Number of findings | finding | 12 | |||||||||||||||
Number of recommendations | recommendation | 59 | |||||||||||||||
Estimated refund interest amount | $ 3.5 | |||||||||||||||
Loss contingency, estimate of possible loss | $ 1 | |||||||||||||||
CLECO POWER | FERC | MISO Transmission Rates | ||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||
Public utilities, approved return on equity, percentage (In hundredths) | 12.38% | |||||||||||||||
Public utilities, proposed return on equity, percentage (in hundredths) | 9.88% | 6.68% |
Litigation, Other Commitments_3
Litigation, Other Commitments and Contingencies, and Disclosures about Guarantees - Off-Balance Sheet Commitments and Guarantees (Details) | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Guarantor Obligations [Line Items] | |
Guarantor obligations, collateral held directly or by third parties, amount | $ 0 |
Performance Guarantee | |
Guarantor Obligations [Line Items] | |
Guarantor obligations, maximum exposure, undiscounted | 42,400,000 |
Indemnification Agreement | |
Guarantor Obligations [Line Items] | |
Guarantor obligations, maximum exposure, undiscounted | 40,000,000 |
Indemnification Agreement including fundamental organizational structure | |
Guarantor Obligations [Line Items] | |
Guarantor obligations, maximum exposure, undiscounted | 400,000,000 |
CLECO POWER | |
Guarantor Obligations [Line Items] | |
Guarantor obligations, collateral held directly or by third parties, amount | 0 |
CLECO POWER | Indemnification Agreement | |
Guarantor Obligations [Line Items] | |
Guarantor obligations, maximum exposure, undiscounted | 40,000,000 |
CLECO POWER | Indemnification Agreement including fundamental organizational structure | |
Guarantor Obligations [Line Items] | |
Guarantor obligations, maximum exposure, undiscounted | 400,000,000 |
CLECO POWER | Financial Guarantee | |
Guarantor Obligations [Line Items] | |
Guarantor obligations, maximum exposure, undiscounted | 83,000,000 |
CLECO HOLDINGS | Letters of Credit | |
Guarantor Obligations [Line Items] | |
Letters of credit | $ 34,500,000 |
Affiliate Transactions - Narrat
Affiliate Transactions - Narrative (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Related Party Transactions [Abstract] | ||
Accounts payable - affiliate | $ 33,780 | $ 33,780 |
Affiliate Transactions - Summar
Affiliate Transactions - Summary of Balances Payable To or Due From Affiliates (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Related Party Transaction [Line Items] | ||
ACCOUNTS PAYABLE | $ 33,780 | $ 33,780 |
CLECO POWER | ||
Related Party Transaction [Line Items] | ||
ACCOUNTS RECEIVABLE | 12,037 | 14,481 |
ACCOUNTS PAYABLE | 10,486 | 14,123 |
CLECO POWER | Cleco Holdings | ||
Related Party Transaction [Line Items] | ||
ACCOUNTS RECEIVABLE | 10,420 | 10,351 |
ACCOUNTS PAYABLE | 170 | 194 |
CLECO POWER | Support Group | ||
Related Party Transaction [Line Items] | ||
ACCOUNTS RECEIVABLE | 1,082 | 3,172 |
ACCOUNTS PAYABLE | 10,197 | 13,890 |
CLECO POWER | Cleco Cajun | ||
Related Party Transaction [Line Items] | ||
ACCOUNTS RECEIVABLE | 535 | 958 |
ACCOUNTS PAYABLE | $ 119 | $ 39 |
Intangible Assets and Liabili_3
Intangible Assets and Liabilities - Narrative (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 (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 (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Finite-Lived Intangible Assets [Line Items] | ||
Total intangible assets carrying amount | $ 259,698 | $ 259,698 |
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 |
Net intangible assets subject to amortization | 131,122 | 138,103 |
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_3
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balances, beginning of period | $ 2,643,006 | $ 2,124,740 |
Amounts reclassified from accumulated AOCI | ||
Balances, end of period | 2,649,748 | 2,530,062 |
TOTAL AOCI | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balances, beginning of period | (17,513) | 1,786 |
Amounts reclassified from accumulated AOCI | ||
Balances, end of period | (17,099) | 1,651 |
POSTRETIREMENT BENEFIT NET LOSS | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balances, beginning of period | (17,513) | 1,786 |
Amounts reclassified from accumulated AOCI | ||
Amounts reclassified from AOCI | 414 | (135) |
Balances, end of period | (17,099) | 1,651 |
CLECO POWER | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balances, beginning of period | 1,713,392 | 1,594,533 |
Amounts reclassified from accumulated AOCI | ||
Balances, end of period | 1,725,713 | 1,621,465 |
CLECO POWER | TOTAL AOCI | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balances, beginning of period | (22,585) | (13,182) |
Amounts reclassified from accumulated AOCI | ||
Balances, end of period | (22,095) | (12,962) |
CLECO POWER | POSTRETIREMENT BENEFIT NET LOSS | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balances, beginning of period | (16,717) | (7,060) |
Amounts reclassified from accumulated AOCI | ||
Amounts reclassified from AOCI | 426 | 156 |
Balances, end of period | (16,291) | (6,904) |
CLECO POWER | NET LOSS ON CASH FLOW HEDGES | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balances, beginning of period | (5,868) | (6,122) |
Amounts reclassified from accumulated AOCI | ||
Amounts reclassified from AOCI | 64 | 64 |
Balances, end of period | $ (5,804) | $ (6,058) |