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Fair Value Accounting (Tables)

12 Months Ended

Dec. 31, 2011



Cleco
					AT DECEMBER 31,
			2011				2010
(THOUSANDS)	CARRYING VALUE		ESTIMATED FAIR VALUE		CARRYING VALUE		ESTIMATED FAIR VALUE
Financial instruments not marked-to-market
Cash and cash equivalents	$	93,576	$	93,576	$	191,128	$	191,128
Restricted cash	$	35,828	$	35,828	$	41,048	$	41,048
Long-term debt, excluding debt issuance costs	$	1,354,567	$	1,542,867	$	1,403,835	$	1,462,063
Preferred stock not subject to mandatory redemption	$	—	$	—	$	1,029	$	844

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 and within the scope of the authoritative guidance for fair value measurements and disclosures.



Cleco
	CLECO CONSOLIDATED FAIR VALUE MEASUREMENTS AT REPORTING DATE USING:
(THOUSANDS)	AT DECEMBER 31, 2011		QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1)		SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2)		SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3)		AT DECEMBER 31, 2010		QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1)		SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2)		SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3)
Asset Description
Energy market derivatives	$	—	$	—	$	—	$	—	$	97	$	—	$	97	$	—
Institutional money market funds	119,327		—		119,327		—		229,748		—		229,748		—
Total assets	$	119,327	$	—	$	119,327	$	—	$	229,845	$	—	$	229,845	$	—
Liability Description
Energy market derivatives	$	5,336	$	—	$	5,336	$	—	$	15,245	$	3,317	$	11,928	$	—
Interest rate derivatives	3,330		—		3,330		—		—		—		—		—
Total liabilities	$	8,666	$	—	$	8,666	$	—	$	15,245	$	3,317	$	11,928	$	—

Fair Values of Derivative Instruments

The following table presents the fair values of derivative instruments and their respective line items as recorded on Cleco Corporation and Cleco Power’s Consolidated Balance Sheets as of December 31, 2011, and 2010:



	DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS
	LIABILITY DERIVATIVES
(THOUSANDS)	BALANCE SHEET LINE ITEM	AT DECEMBER 31, 2011			AT DECEMBER 31, 2010
Commodity contracts
Fuel cost hedges:
Current	Energy risk management liability, net	$	(5,336	)	$	(13,497	)
Long-term	Other deferred credits	—			(1,651		)
Total		$	(5,336	)	$	(15,148	)

Effect of Derivatives On Consolidated Statements of Income

The following table presents the effect of derivatives not designated as hedging instruments on Cleco Corporation and

Cleco Power’s Consolidated Statements of Income for the years December 31, 2011, 2010, and 2009.



					FOR THE YEAR ENDED DECEMBER 31,
		2011			2010				2009
(THOUSANDS)	LOSS IN INCOME OF DERIVATIVES LINE ITEM	AMOUNT OF LOSS RECOGNIZED IN INCOME ON DERIVATIVES			AMOUNT OF LOSS RECOGNIZED IN INCOME ON DERIVATIVES				AMOUNT OF LOSS RECOGNIZED IN INCOME ON DERIVATIVES
Commodity contracts
Economic hedges	Other operations revenue	$	—		$	(667	)	⁽¹⁾	$	(1,805	)	⁽¹⁾
Fuel cost hedges⁽²⁾	Fuel used for electric generation	(18,119		)	(36,818		)		$	(92,609	)
Total		$	(18,119	)	$	(37,485	)		$	(94,414	)

⁽¹⁾For the year ended December 31, 2010 and 2009, Cleco recognized $0.4 million of mark-to-market gains and $0.2 million of mark-to market losses, respectively. related to economic hedges.

⁽²⁾In accordance with the authoritative guidance for regulated operations, an additional $5.3 million of unrealized losses and $1.2 million of deferred losses associated with fuel cost hedges are reported in Accumulated Deferred Fuel on the balance sheet as of December 31, 2011, compared to $15.1 million of unrealized losses and $1.6 million of deferred losses as of December 31, 2010 and to $24.9 million of unrealized losses and $2.6 million of deferred losses associated with fuel costs hedges as of December 31, 2009. As gains and losses are realized in future periods, they will be recorded as Fuel Used for Electric Generation on the Income Statement

The following table presents the effect of derivatives designated as hedging instruments on Cleco Corporation and Cleco Power’s Consolidated Statements of Income for the years ended December 31, 2011, 2010, and 2009:



													FOR THE YEAR ENDED DECEMBER 31,
				2011					2010						2009
(THOUSANDS)	AMOUNT OF LOSS RECOGNIZED IN OCI			AMOUNT OF NET GAIN RECLASSIFIED FROM ACCUMULATED OCI INTO INCOME (EFFECTIVE PORTION)			AMOUNT OF GAIN RECOGNIZED IN OCI		AMOUNT OF NET LOSS RECLASSIFIED FROM ACCUMULATED OCI INTO INCOME (EFFECTIVE PORTION)				AMOUNT OF GAIN RECOGNIZED IN OCI		AMOUNT OF NET LOSS RECLASSIFIED FROM ACCUMULATED OCI INTO INCOME (EFFECTIVE PORTION)
Interest rate derivatives⁽¹⁾	$	(25,661	)	$	334	*	$	4,739	$	(512	)	*	$	3,138	$	(285	)	*

* The (loss) gain reclassified from accumulated OCI into income is reflected in interest charges.

⁽¹⁾ In November 2010, an interest rate swap was terminated. The remaining $1.1 million of losses in accumulated OCI was reclassified to other expense

Cleco Power [Member]

Fair Value [Line Items]

Fair Value By Balance Sheet Grouping



Cleco Power
					AT DECEMBER 31,
			2011				2010
(THOUSANDS)	CARRYING VALUE		ESTIMATED FAIR VALUE		CARRYING VALUE		ESTIMATED FAIR VALUE
Financial instruments not marked-to-market
Cash and cash equivalents	$	67,458	$	67,458	$	184,912	$	184,912
Restricted cash	$	35,731	$	35,731	$	40,951	$	40,951
Long-term debt, excluding debt issuance costs	$	1,344,567	$	1,532,867	$	1,388,835	$	1,447,063

Fair Value of Financial Assets and Liabilities Measured On A Recurring Basis



Cleco Power
	CLECO POWER FAIR VALUE MEASUREMENTS AT REPORTING DATE USING:
(THOUSANDS)	AT DECEMBER 31, 2011		QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1)		SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2)		SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3)		AT DECEMBER 31, 2010		QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1)		SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2)		SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3)
Asset Description
Energy market derivatives	$	—	$	—	$	—	$	—	$	97	$	—	$	97	$	—
Institutional money market funds	100,331		—		100,331		—		224,451		—		224,451		—
Total assets	$	100,331	$	—	$	100,331	$	—	$	224,548	$	—	$	224,548	$	—
Liability Description
Energy market derivatives	$	5,336	$	—	$	5,336	$	—	$	15,245	$	3,317	$	11,928	$	—
Interest rate derivatives	3,330		—		3,330		—		—		—		—		—
Total liabilities	$	8,666	$	—	$	8,666	$	—	$	15,245	$	3,317	$	11,928	$	—

- Definition

Tabular disclosure of the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments, assets, and liabilities. Such certain disclosures about the financial instruments, assets, and liabilities include: (1) the fair value of the required items together with their carrying amounts (as appropriate) and (2) the methodology and assumptions used in developing such estimates of fair value.

+ References

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-Publisher FASB

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+ Details

- Definition

Tabular disclosure of the location and amount of gains and losses reported in the statement of financial performance, or when applicable, the statement of financial position. For example, (a) gains and losses recognized in the income statement on derivative instruments designated and qualifying as hedging instruments in fair value hedges and related hedged items designated and qualifying in fair value hedges and (b) gains and losses initially recognized in other comprehensive income on derivative instruments designated and qualifying as cash flow hedges.

+ References+ Details

- Definition

Tabular disclosure of the location and fair value amounts of derivative instruments (and nonderivative instruments that are designated and qualify as hedging instruments) reported in the statement of financial position.

+ References+ Details