Affiliate Transactions

12 Months Ended

Dec. 31, 2011

Related Party Transactions [Abstract]

Affiliate Transactions

Affiliate Transactions

Cleco

At December 31, 2011, Cleco had no affiliate balances that were payable to or due from its non-consolidated affiliates. Cleco had affiliate balances that were not eliminated as of December 31, 2010. The balances were not eliminated due to the use of the equity method of accounting for Acadia. For information on the Acadia equity investments, see Note 12 — “Variable Interest Entities.”

Cleco entered into service agreements with affiliates that provide Cleco access to professional services and goods. Services and goods provided by Cleco Power are charged at management’s estimate of fair market value or fully loaded cost, whichever is higher. Services provided to Cleco Power are charged at management’s estimate of fair market value or fully loaded cost, whichever is lower, with the exception of Support Group, which charges only fully loaded cost in order to comply with Cleco’s affiliate policy.

Affiliate goods and services received by Cleco primarily involve services provided by Support Group. Support Group provides joint and common administrative support services in the areas of information technology; finance, cash management, accounting and auditing; human resources; corporate communications; project consulting; risk management; strategic and corporate development; legal, ethics and regulatory compliance; facilities management; supply chain and inventory management and other administrative services. Prior to December 24, 2011, Generation Services provided electric power plant operations and maintenance expertise.

On January 1, 2010, Cleco implemented the amended authoritative guidance with respect to the consolidation of Perryville, Attala, and Evangeline. These entities’ assets, liabilities, revenues, expenses, and cash flows are presented on the corresponding line items of Cleco’s consolidated financial statements prospectively. Prior to January 2010, the equity method of accounting was used for Perryville, Attala, and Evangeline. Therefore, these entities were presented on the consolidated financial statements as one line item corresponding to Cleco’s equity investment in them. For more information on the consolidation of these entities, see Note 2 — “Summary of Significant Accounting Policies — Recent Authoritative Guidance” and Note 12 — “Variable Interest Entities.”

A summary of charges from each affiliate included in Cleco Corporation’s Consolidated Statements of Income for 2009 follows. There were no charges from affiliates for 2011 and 2010.

(THOUSANDS)	FOR THE YEAR ENDED DECEMBER 31, 2009
Support Group
Other operations		$	2,417
Maintenance		$	38
Taxes other than income taxes		$	(18	)
Other expenses		$	17
Cleco Power
Other operations		$	29
Maintenance		$	30
Generation Services
Other operations		$	3,365
Maintenance		$	4,157
CLE Intrastate
Fuel purchased		$	917

Following is a reconciliation of Cleco affiliate revenue.

	FOR THE YEAR ENDED DECEMBER 31,
(THOUSANDS)	2011		2010		2009
Evangeline	$	—	$	—	$	5,999
Perryville	—		—		81
Attala	—		—		3
Acadia	202		1,564		5,378
Total	$	202	$	1,564	$	11,461

At December 31, 2011, Cleco Corporation had no affiliate receivable or payable balances from its non-consolidated affiliates. At December 31, 2010, the affiliate receivable balance from Acadia was $0.8 million and the payable balance to Acadia was $0.2 million associated with the service agreements between Cleco Corporation and its affiliates.

Cleco Power

Cleco Power entered into service agreements with affiliates that provide Cleco Power access to professional services and goods. The services and goods are charged to Cleco Power at management’s estimate of fair market value or fully loaded cost, whichever is lower, with the exception of Support Group, which charges only fully loaded cost in order to comply with Cleco’s affiliate policy.

Affiliate goods and services received by Cleco Power primarily involve services provided by Support Group. Support Group provides joint and common administrative support services in the areas of information technology; finance, cash management, accounting and auditing; human resources; corporate communications; project consulting; risk management; strategic and corporate development; legal, ethics and regulatory compliance; facilities management; supply chain and inventory management and other administrative services. A summary of charges from each affiliate included in Cleco Power’s Consolidated Statements of Income follows.

	FOR THE YEAR ENDED DECEMBER 31,
(THOUSANDS)	2011			2010			2009
Support Group
Other operations	$	43,124		$	39,633		$	36,593
Maintenance	$	1,625		$	1,650		$	1,916
Taxes other than income taxes	$	(1	)	$	(5	)	$	(199	)
Other expenses	$	1,244		$	1,050		$	1,080
Evangeline
Other expenses	$	4		$	—		$	—
Diversified Lands
Other expenses	$	82		$	19		$	4

Cleco Power also entered into agreements to provide goods and services to affiliated companies. The goods and services are charged by Cleco Power at fully loaded cost or management’s estimate of fair market value, whichever is higher, in order to comply with Cleco’s affiliate policy. The majority of the services provided by Cleco Power to affiliates relates to the lease of office space to Support Group. Following is a reconciliation of Cleco Power’s affiliate revenue.

	FOR THE YEAR ENDED DECEMBER 31,
(THOUSANDS)	2011		2010		2009
Support Group	$	1,349	$	1,332	$	1,352
Midstream	$	14	$	13	$	20
Evangeline	$	26	$	26	$	22
Acadia	$	—	$	—	$	1
Total	$	1,389	$	1,371	$	1,395

Cleco Power had the following affiliate receivable and payable balances associated with the service agreements between Cleco Power and its affiliates.

					AT DECEMBER 31,
			2011				2010
(THOUSANDS)	ACCOUNTS RECEIVABLE		ACCOUNTS PAYABLE		ACCOUNTS RECEIVABLE		ACCOUNTS PAYABLE
Cleco Corporation	$	18	$	827	$	348	$	1,145
Support Group	2,207		8,066		1,536		6,646
Midstream	24		5		5		2
Evangeline	12		214		3		—
Generation Services	—		—		18		2
Diversified Lands	20		3		14		—
Acadia	124		196		810		150
Others	—		—		4		—
Total	$	2,405	$	9,311	$	2,738	$	7,945

During 2011, 2010, and 2009, Cleco Power made $130.0 million, $150.0 million, and $30.0 million of distribution payments to Cleco Corporation, respectively.

During 2010, Cleco Power received $225.7 million in non-cash equity contributions from Cleco Corporation relating to Acadia Unit 1. Cleco Power received no equity contributions from Cleco Corporation in 2011 or 2009. 

Affiliates that participate in the defined benefit pension plan sponsored by Cleco Power transfer their liability and an equal amount of cash on a periodic basis to Cleco Power. The following table shows the amounts transferred by affiliates during 2011 and 2010.

	FOR THE YEAR ENDED DECEMBER 31,
(THOUSANDS)	2011		2010
Support Group	$	1,844	$	1,678
Generation Services	220		220
Midstream	37		25
Total	$	2,101	$	1,923