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Fair Value Accounting (Tables)

3 Months Ended

Mar. 31, 2012

The following tables summarize the carrying value and estimated market value of Cleco and Cleco Power’s financial instruments subject to fair value accounting.



Cleco
	AT MARCH 31, 2012				AT DECEMBER 31, 2011
(THOUSANDS)	CARRYING VALUE		ESTIMATED FAIR VALUE		CARRYING VALUE		ESTIMATED FAIR VALUE
Financial instruments not marked-to-market
Cash and cash equivalents	$	47,249	$	47,249	$	93,576	$	93,576
Restricted cash	$	30,580	$	30,580	$	35,828	$	35,828
Long-term debt, excluding debt issuance costs	$	1,326,720	$	1,483,939	$	1,354,567	$	1,542,867

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 or disclosed 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 MARCH 31, 2012		QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1)		SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2)		SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3)		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)
Asset Description
Institutional money market funds	$	70,380	$	—	$	70,380	$	—	$	119,327	$	—	$	119,327	$	—
Interest rate derivatives	1,326		—		1,326		—		—		—		—		—
Total assets	$	71,706	$	—	$	71,706	$	—	$	119,327	$	—	$	119,327	$	—
Liability Description
Energy market derivatives	$	3,308	$	—	$	3,308	$	—	$	5,336	$	—	$	5,336	$	—
Interest rate derivatives	—		—		—		—		3,330		—		3,330		—
Long-term debt	1,483,939		—		1,483,939		—		1,542,867		—		1,542,867		—
Total liabilities	$	1,487,247	$	—	$	1,487,247	$	—	$	1,551,533	$	—	$	1,551,533	$	—

Fair Values of Derivative Instruments

The following table presents the fair values of derivative instruments and their respective line items as recorded on Cleco and Cleco Power’s Condensed Consolidated Balance Sheets as of March 31, 2012, and December 31, 2011:



	DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS
	LIABILITY DERIVATIVES
(THOUSANDS) FAIR VALUE	BALANCE SHEET LINE ITEM	AT MARCH 31, 2012			AT DECEMBER 31, 2011
Commodity contracts
Fuel cost hedges:
Current	Energy risk management liability, net	$	(3,308	)	$	(5,336	)
Total		$	(3,308	)	$	(5,336	)

Effect of Derivatives On Consolidated Statements of Income

The following table presents the effect of derivatives designated as hedging instruments on Cleco and Cleco Power’s Condensed Consolidated Statements of Income for the three months ended March 31, 2012, and 2011:



						FOR THE THREE MONTHS ENDED MARCH 31,
	2012					2011
(THOUSANDS)	AMOUNT OF GAIN RECOGNIZED IN OCI		AMOUNT OF GAIN RECLASSIFIED FROM ACCUMULATED OCI INTO INCOME (EFFECTIVE PORTION)			AMOUNT OF GAIN RECOGNIZED IN OCI		AMOUNT OF GAIN RECLASSIFIED FROM ACCUMULATED OCI INTO INCOME (EFFECTIVE PORTION)
Interest rate derivatives ⁽¹⁾	$	4,657	$	1	*	$	—	$	89	*
* The gain reclassified from accumulated OCI into income (effective portion) is reflected in interest charges.
⁽¹⁾ During the three months ended March 31, 2012, Cleco recorded $2.6 million of ineffectiveness related to the interest rate derivatives as a regulatory asset.

The following table presents 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, 2012, and 2011:



	FOR THE THREE MONTHS ENDED MARCH 31,
		2012			2011
(THOUSANDS)	LOSS IN INCOME OF DERIVATIVES LINE ITEM	AMOUNT OF LOSS RECOGNIZED IN INCOME ON DERIVATIVES			AMOUNT OF LOSS RECOGNIZED IN INCOME ON DERIVATIVES
Commodity contracts
Fuel cost hedges⁽¹⁾	Fuel used for electric generation	$	(3,484	)	$	(3,794	)
Total		$	(3,484	)	$	(3,794	)
⁽¹⁾In accordance with the authoritative guidance for regulated operations, an additional $3.3 million of unrealized losses and $1.7 million of deferred losses associated with fuel cost hedges are reported in Accumulated Deferred Fuel on the balance sheet as of March 31, 2012, compared to $5.3 million of unrealized losses and $1.2 million of deferred losses associated with fuel cost hedges as of December 31, 2011. As gains and losses are realized in future periods, they will be recorded as Fuel Used for Electric Generation on the income statement.

Cleco Power [Member]

Fair Value [Line Items]

Fair Value By Balance Sheet Grouping



Cleco Power
	AT MARCH 31, 2012				AT DECEMBER 31, 2011
(THOUSANDS)	CARRYING VALUE		ESTIMATED FAIR VALUE		CARRYING VALUE		ESTIMATED FAIR VALUE
Financial instruments not marked-to-market
Cash and cash equivalents	$	35,885	$	35,885	$	67,458	$	67,458
Restricted cash	$	30,484	$	30,484	$	35,731	$	35,731
Long-term debt, excluding debt issuance costs	$	1,326,720	$	1,483,939	$	1,344,567	$	1,532,867

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 MARCH 31, 2012		QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1)		SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2)		SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3)		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)
Asset Description
Institutional money market funds	$	63,483	$	—	$	63,483	$	—	$	100,331	$	—	$	100,331	$	—
Interest rate derivatives	1,326		$	—	1,326		—		—		—		—		—
Total assets	$	64,809	$	—	$	64,809	$	—	$	100,331	$	—	$	100,331	$	—
Liability Description
Energy market derivatives	$	3,308	$	—	$	3,308	$	—	$	5,336	$	—	$	5,336	$	—
Interest rate derivatives	—		—		—		—		3,330		—		3,330		—
Long-term debt	1,483,939		—		1,483,939		—		1,532,867		—		1,532,867		—
Total liabilities	$	1,487,247	$	—	$	1,487,247	$	—	$	1,541,533	$	—	$	1,541,533	$	—

- 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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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

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-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ 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