Louisiana (State or other jurisdiction of incorporation or organization) | 72-1445282 (I.R.S. Employer Identification No.) | |
2030 Donahue Ferry Road, Pineville, Louisiana (Address of principal executive offices) | 71360-5226 (Zip Code) | |
Registrant’s telephone number, including area code: (318) 484-7400 | ||
Securities registered pursuant to Section 12(b) of the Act: | ||
Title of each class | Name of each exchange on which registered | |
Common Stock, $1.00 par value, and associated rights to purchase Preferred Stock | New York Stock Exchange | |
Securities registered pursuant to Section 12(g) of the Act: | ||
Title of each class | ||
4.50% Cumulative Preferred Stock, $100 Par Value |
Louisiana (State or other jurisdiction of incorporation or organization) | 72-0244480 (I.R.S. Employer Identification No.) | |
2030 Donahue Ferry Road, Pineville, Louisiana (Address of principal executive offices) | 71360-5226 (Zip Code) | |
Registrant’s telephone number, including area code: (318) 484-7400 | ||
Securities registered pursuant to Section 12(b) of the Act: | ||
Title of each class | Name of each exchange on which registered | |
6.50% Senior Notes due 2035 | New York Stock Exchange | |
Securities registered pursuant to Section 12(g) of the Act: | ||
Title of each class | ||
Membership Interests | ||
Cleco Power LLC, a wholly owned subsidiary of Cleco Corporation, meets the conditions set forth in General Instruction (I)(1)(a) and (b) of Form 10-K and is therefore filing this Form 10-K with the reduced disclosure format. | ||
Indicate by check mark if Cleco Corporation is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes x No ¨ | ||
Indicate by check mark if Cleco Power LLC is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ¨ No x | ||
Indicate by check mark if the Registrants are not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ¨ No x | ||
Indicate by check mark whether the Registrants: (1) have filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrants were required to file such reports) and (2) have been subject to such filing requirements for the past 90 days. Yes x No ¨ | ||
Indicate by check mark whether the Registrants have submitted electronically and posted on their corporate website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the Registrants were required to submit and post such files). Yes x No ¨ | ||
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of each of the Registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. ¨ | ||
Indicate by check mark whether Cleco Corporation is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one): Large accelerated filer x Accelerated filer ¨ Non-accelerated filer ¨ (Do not check if a smaller reporting company) Smaller reporting company ¨ | ||
Indicate by check mark whether Cleco Power LLC is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definitions of “large accelerated filer,” accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one): Large accelerated filer ¨ Accelerated filer ¨ Non-accelerated filer x (Do not check if a smaller reporting company) Smaller reporting company ¨ | ||
Indicate by check mark whether the Registrants are shell companies (as defined in Rule 12b-2 of the Exchange Act) Yes ¨ No x |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
PAGE | ||
ITEM 4. | Mine Safety Disclosures | |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
GLOSSARY OF TERMS |
ABBREVIATION OR ACRONYM | DEFINITION |
401(k) Plan | Cleco Power 401(k) Savings and Investment Plan |
ABR | Alternate Base Rate which is the greater of the prime rate, the federal funds effective rate plus 0.50%, or the LIBOR plus 1.0% |
Acadia | Acadia Power Partners, LLC, a wholly owned subsidiary of APH. Acadia no longer owns any materials and supply inventory, property, plant, and equipment, or land as a result of the disposition of Acadia Unit 2 to Entergy Louisiana on April 29, 2011. From February 23, 2010 to April 29, 2011, Acadia was owned 100% by Cajun and consisted of Acadia Unit 2. Prior to February 23, 2010, Acadia was 50% owned by APH and 50% owned by Cajun and consisted of Acadia Unit 1 and Acadia Unit 2. |
Acadia Unit 1 | Cleco Power’s 580-MW unit, combined cycle, natural gas-fired power plant located at the Acadia Power Station near Eunice, Louisiana. Prior to February 2010, Acadia Unit 1 was owned by Acadia. |
Acadia Unit 2 | Entergy Louisiana’s 580-MW unit, combined cycle, natural gas-fired power plant located at the Acadia Power Station near Eunice, Louisiana. Prior to April 29, 2011, Acadia Unit 2 was owned by Acadia. |
Acadiana Load Pocket | An area in south central Louisiana that has experienced transmission constraints caused by local load and lack of generation. Transmission within the Acadiana Load Pocket is owned by several entities, including Cleco Power. |
AFUDC | Allowance for Funds Used During Construction |
Amended EPC Contract | Amended and Restated EPC Contract between Cleco Power and Shaw, executed on May 12, 2006, for engineering, procurement, and construction of Madison Unit 3, as amended by Amendment No. 1 thereto effective March 9, 2007, Amendment No. 2 thereto dated as of July 2, 2008, Amendment No. 3 thereto dated as of July 22, 2009, and Amendment No. 4 thereto dated October 19, 2009. |
Amended Lignite Mining Agreement | Amended and restated lignite mining agreement effective December 29, 2009 |
AMI | Advanced Metering Infrastructure |
APH | Acadia Power Holdings LLC, a wholly owned subsidiary of Midstream |
ARO | Asset Retirement Obligation |
Attala | Attala Transmission LLC, a wholly owned subsidiary of Cleco Corporation |
Brame Energy Center | A facility consisting of Nesbitt Unit 1, Rodemacher Unit 2, and Madison Unit 3. On June 11, 2010, Rodemacher Power Station was renamed Brame Energy Center. |
CAA | Clean Air Act |
Cajun | Cajun Gas Energy L.L.C., a wholly owned subsidiary of third parties. In conjunction with the disposition of Acadia Unit 2 on April 29, 2011, APH no longer has any ownership interest in Cajun. From February 23, 2010 to April 29, 2011, Cajun was 50% owned by APH and 50% owned by third parties. Prior to February 23, 2010, Cajun was 100% owned by third parties. |
CERCLA | The Comprehensive Environmental Response, Compensation, and Liability Act of 1980 |
CCN | Certificate of Public Convenience and Necessity |
CLE Intrastate | CLE Intrastate Pipeline Company LLC, a wholly owned subsidiary of Evangeline |
Cleco Innovations LLC | A wholly owned subsidiary of Cleco Corporation |
Cleco Katrina/Rita | Cleco Katrina/Rita Hurricane Recovery Funding LLC, a wholly owned subsidiary of Cleco Power |
CO2 | Carbon dioxide |
Coughlin | Coughlin Power Station, a combined-cycle, natural gas-fired power plant located in Evangeline Parish, Louisiana |
CSAPR | The Cross-State Air Pollution Rule |
DHLC | Dolet Hills Lignite Company, LLC, a wholly owned subsidiary of SWEPCO |
Diversified Lands | Diversified Lands LLC, a wholly owned subsidiary of Cleco Innovations LLC |
Dodd-Frank Act | The Dodd-Frank Wall Street Reform and Consumer Protection Act, signed into law on July 21, 2010. |
DOE | United States Department of Energy |
EAC | Environmental Adjustment Clause |
Entergy | Entergy Corporation |
Entergy Arkansas | Entergy Arkansas, Inc. |
Entergy Gulf States | Entergy Gulf States Louisiana, L.L.C., formerly Entergy Gulf States, Inc. |
Entergy Louisiana | Entergy Louisiana, LLC |
Entergy Mississippi | Entergy Mississippi, Inc. |
Entergy Services | Entergy Services, Inc., as agent for Entergy Louisiana and Entergy Gulf States |
EPA | United States Environmental Protection Agency |
ERO | Electric Reliability Organization |
ESPP | Cleco Corporation Employee Stock Purchase Plan |
Evangeline | Cleco Evangeline LLC, a wholly owned subsidiary of Midstream |
Evangeline 2010 Tolling Agreement | Capacity Sale and Tolling Agreement between Evangeline and JPMVEC, which was executed in February 2010 and expired on December 31, 2011 |
Evangeline Restructuring Agreement | Purchase, Sale and Restructuring Agreement entered into on February 22, 2010, by Evangeline and JPMVEC |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
ABBREVIATION OR ACRONYM | DEFINITION |
Evangeline Tolling Agreement | Capacity Sale and Tolling Agreement between Evangeline and BE Louisiana LLC (as successor to Williams Power Company, Inc.) which was set to expire in 2020 and was terminated in February 2010. In September 2008, BE Louisiana LLC was merged into JPMVEC. |
FAC | Fuel Adjustment Clause |
FASB | Financial Accounting Standards Board |
FERC | Federal Energy Regulatory Commission |
FRP | Formula Rate Plan |
GAAP | Generally Accepted Accounting Principles in the United States |
GDP-IPD | Gross Domestic Product – Implicit Price Deflator |
Generation Services | Cleco Generation Services LLC, a wholly owned subsidiary of Midstream |
GO Zone | Gulf Opportunity Zone Act of 2005 (Public Law 109-135) |
ICT | Independent Coordinator of Transmission |
Interconnection Agreement | One of two Interconnection Agreement and Real Estate Agreements, one between Attala and Entergy Mississippi, and the other between Perryville and Entergy Louisiana |
IRP | Integrated Resource Planning |
IRS | Internal Revenue Service |
ISO | Independent System Operator |
JPMVEC | J.P. Morgan Ventures Energy Corporation. In September 2008, BE Louisiana LLC (an indirect wholly owned subsidiary of JPMorgan Chase & Co.) was merged into JPMVEC. |
kWh | Kilowatt-hour(s) as applicable |
LDEQ | Louisiana Department of Environmental Quality |
LIBOR | London Inter-Bank Offer Rate |
Lignite Mining Agreement | Dolet Hills Mine Lignite Mining Agreement, dated as of May 31, 2001 |
LPSC | Louisiana Public Service Commission |
LTICP | Cleco Corporation Long-Term Incentive Compensation Plans |
Madison Unit 3 | A 600-MW solid-fuel generating unit at Cleco Power’s plant site in Boyce, Louisiana that commenced commercial operation on February 12, 2010. |
MATS | Mercury and Air Toxics Standards |
Midstream | Cleco Midstream Resources LLC, a wholly owned subsidiary of Cleco Corporation |
MISO | Midwest Independent Transmission System Operator |
MMBtu | Million British thermal units |
Moody’s | Moody’s Investors Service |
MW | Megawatt(s) as applicable |
MWh | Megawatt-hour(s) as applicable |
NAC | North American Coal Corporation |
NERC | North American Electric Reliability Corporation |
NMTC Fund | USB NMTC Fund 2008-1 LLC was formed to invest in projects qualifying for New Markets Tax Credits and Solar Projects |
Not Meaningful | A percentage comparison of these items is not statistically meaningful because the percentage difference is greater than 1,000% |
NO2 | Nitrogen dioxide |
NOx | Nitrogen oxides |
OATT | Open Access Transmission Tariff |
OCI | Other Comprehensive Income |
Oxbow | Oxbow Lignite Company, LLC, 50% owned by Cleco Power and 50% owned by SWEPCO |
PCAOB | Public Company Accounting Oversight Board |
PCB | Polychlorinated biphenyl |
PEH | Perryville Energy Holdings LLC, a wholly owned subsidiary of Midstream |
Perryville | Perryville Energy Partners, L.L.C., a wholly owned subsidiary of Cleco Corporation |
Perryville and PEH Bankruptcy Court | U.S. Bankruptcy Court for the Western District of Louisiana, Alexandria Division |
PLR | Private Letter Ruling |
Power Purchase Agreement | Power Purchase Agreement, dated as of January 28, 2004, between Perryville and Entergy Services |
PPACA | Patient Protection and Affordable Care Act (HR 3590) |
PRP | Potentially responsible party |
Registrant(s) | Cleco Corporation and Cleco Power |
RFP | Request for Proposal |
RTO | Regional Transmission Organization |
Sale Agreement | Purchase and Sale Agreement, dated as of January 28, 2004, between Perryville and Entergy Louisiana |
SEC | Securities and Exchange Commission |
SERP | Cleco Corporation Supplemental Executive Retirement Plan |
Shaw | Shaw Contractors, Inc., a subsidiary of The Shaw Group Inc. |
SO2 | Sulfur dioxide |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
ABBREVIATION OR ACRONYM | DEFINITION |
SPP | Southwest Power Pool |
SPP RE | Southwest Power Pool Regional Entity |
Support Group | Cleco Support Group LLC, a wholly owned subsidiary of Cleco Corporation |
SWEPCO | Southwestern Electric Power Company, a wholly owned subsidiary of American Electric Power Company, Inc. |
Teche | Teche Electric Cooperative, Inc. |
VaR | Value-at-Risk |
VIE | Variable Interest Entity |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS |
• | factors affecting utility operations, such as unusual weather conditions or other natural phenomena, catastrophic weather-related damage (such as hurricanes and other storms or severe drought conditions), unscheduled generation outages, unanticipated maintenance or repairs, unanticipated changes to fuel cost, fuel supply costs or availability constraints due to higher demand, shortages, transportation problems, or other developments, fuel mix of Cleco’s generation facilities, decreased customer load, environmental incidents, environmental compliance costs, and power transmission system constraints, |
• | Cleco Corporation’s holding company structure and its dependence on the earnings, dividends, or distributions from its subsidiaries to meet its debt obligations and pay dividends on its common stock, |
• | Cleco Power’s ability to maintain its right to sell wholesale generation at market-based rates within its control area, |
• | dependence of Cleco Power for energy from sources other than its facilities and future sources of such additional energy, |
• | nonperformance by and creditworthiness of counterparties under power purchase agreements, or the restructuring of those agreements, including possible termination, |
• | nonperformance by and creditworthiness of the guarantor counterparty of the NMTC Fund, |
• | regulatory factors such as changes in rate-setting policies, recovery of investments made under traditional regulation, recovery of storm restoration costs, the frequency and timing of rate increases or decreases, the results of |
• | reliance on third parties for determination of Cleco Power’s commitments and obligations to markets for generation resources and reliance on third party transmission services, |
• | financial or regulatory accounting principles or policies imposed by FASB, the SEC, the PCAOB, FERC, the LPSC, or similar entities with regulatory or accounting oversight, |
• | economic conditions, including the ability of customers to continue paying utility bills, related growth and/or down-sizing of businesses in Cleco’s service area, monetary fluctuations, changes in commodity prices, and inflation rates, |
• | the current global and U.S. economic environment, |
• | credit ratings of Cleco Corporation and Cleco Power, |
• | ability to remain in compliance with debt covenants, |
• | changing market conditions and a variety of other factors associated with physical energy, financial transactions, and energy service activities, including, but not limited to, price, basis, credit, liquidity, volatility, capacity, transmission, interest rates, and warranty risks, |
• | the availability and use of alternative sources of energy and technologies, |
• | the imposition of energy efficiency requirements or increased conservation efforts of customers, |
• | reliability of Cleco Power’s and Midstream’s generating facilities, |
• | acts of terrorism, cyber attacks, data security breaches or other attempts to disrupt Cleco’s business or the business of third parties, or other man-made disasters, |
• | availability or cost of capital resulting from changes in Cleco’s business or financial condition, interest rates, or market perceptions of the electric utility industry and energy-related industries, |
• | changes in tax laws or disallowances of uncertain tax positions that may result in a change to tax benefits or expenses, |
• | employee work force factors, including work stoppages and changes in key executives, |
• | legal, environmental, and regulatory delays and other obstacles associated with mergers, acquisitions, reorganizations, investments in joint ventures, or other capital projects, including the AMI project, |
• | costs and other effects of legal and administrative proceedings, settlements, investigations, claims and other matters, |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
• | changes in federal, state, or local laws, and changes in tax laws or rates, or regulating policies, |
• | the impact of current or future environmental laws and regulations, including those related to greenhouse gases and energy efficiency that could limit or terminate the operation of certain generating units, increase costs, or reduce customer demand for electricity, |
• | ability of Cleco Power to recover from its customers the costs of compliance with environmental laws and regulations, and |
• | ability of the Dolet Hills lignite reserve to provide sufficient fuel to the Dolet Hills Power Station until at least 2026. |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
PART I |
ITEM 1. BUSINESS |
GENERAL |
OPERATIONS |
(THOUSANDS) | 2012 | 2011 | 2010 | ||||||||
Revenue | |||||||||||
Electric operations | $ | 944,169 | $ | 1,051,956 | $ | 1,086,102 | |||||
Other operations | 48,156 | 50,948 | 42,578 | ||||||||
Electric customer credits | (630 | ) | (6,811 | ) | (9,596 | ) | |||||
Affiliate revenue | 1,372 | 1,389 | 1,371 | ||||||||
Operating revenue, net | $ | 993,067 | $ | 1,097,482 | $ | 1,120,455 | |||||
Depreciation expense | $ | 125,486 | $ | 115,634 | $ | 107,966 | |||||
Interest charges | $ | 80,502 | $ | 97,090 | $ | 78,731 | |||||
Interest income | $ | 333 | $ | 630 | $ | 379 | |||||
Federal and state income taxes | $ | 68,133 | $ | 69,409 | $ | 75,107 | |||||
Segment profit | $ | 146,848 | $ | 142,835 | $ | 147,405 | |||||
Additions to long-lived assets | $ | 222,104 | $ | 201,980 | $ | 449,052 | |||||
Equity investment in investee | $ | 14,532 | $ | 14,532 | $ | 13,073 | |||||
Segment assets | $ | 3,871,729 | $ | 3,726,471 | $ | 3,795,227 |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
GENERATING STATION | YEAR OF INITIAL OPERATION | NAMEPLATE CAPACITY (MW) | (1) | NET CAPACITY (MW) (2) | TYPE OF FUEL USED FOR GENERATION | GENERATION TYPE | ||
Brame Energy Center | ||||||||
Nesbitt Unit 1 | 1975 | 440 | 422 | natural gas | steam | |||
Rodemacher Unit 2 | 1982 | 157 | (3) | 148 | coal/natural gas | steam | ||
Madison Unit 3 | 2010 | 641 | 628 | petroleum coke/coal/biomass | steam | |||
Acadia Unit 1 | 2002 | 580 | 562 | natural gas | combined cycle | |||
Teche Unit 1 | 1953 | 23 | 18 | natural gas | steam | |||
Teche Unit 3 | 1971 | 359 | 297 | natural gas | steam | |||
Teche Unit 4 | 2011 | 33 | 34 | natural gas | combustion | |||
Dolet Hills Power Station | 1986 | 325 | (4) | 319 | lignite/natural gas | steam | ||
Franklin Gas Turbine | 1973 | 7 | 8 | natural gas | combustion | |||
Total generating capability | 2,565 | 2,436 |
PERIOD | THOUSAND MWh | PERCENT OF TOTAL ENERGY REQUIREMENTS | ||
2012 | 9,143 | 81.3 | ||
2011 | 10,025 | 86.5 | ||
2010 | 8,753 | 74.7 | ||
2009 | 4,943 | 46.4 | ||
2008 | 4,747 | 44.3 |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
LIGNITE | COAL | NATURAL GAS | BIOMASS | PETROLEUM COKE | |||||||||||||||||||||||||||||
YEAR | COST PER MWh | PERCENT OF GENERATION | COST PER MWh | PERCENT OF GENERATION | COST PER MWh | PERCENT OF GENERATION | COST PER MWh | PERCENT OF GENERATION | COST PER MWh | PERCENT OF GENERATION | WEIGHTED AVERAGE COST PER MWh | ||||||||||||||||||||||
2012 | $ | 36.36 | 25.2 | $ | 33.03 | 17.0 | $ | 27.81 | 45.8 | $ | 17.74 | * | $ | 23.54 | 12.0 | $ | 30.37 | ||||||||||||||||
2011 | $ | 30.99 | 23.6 | $ | 29.48 | 15.6 | $ | 46.39 | 33.8 | $ | 65.06 | * | $ | 31.70 | 27.0 | $ | 36.12 | ||||||||||||||||
2010 | $ | 27.56 | 26.9 | $ | 27.35 | 12.1 | $ | 55.61 | 40.4 | $ | — | — | $ | 23.14 | 20.6 | $ | 37.96 | ||||||||||||||||
2009 | $ | 26.04 | 45.1 | $ | 27.10 | 21.5 | $ | 105.22 | 33.1 | $ | — | — | $ | 34.64 | 0.3 | $ | 52.49 | ||||||||||||||||
2008 | $ | 24.09 | 51.3 | $ | 27.50 | 18.4 | $ | 108.48 | 30.3 | $ | — | — | $ | — | — | $ | 50.27 | ||||||||||||||||
* Not meaningful |
PERIOD | COST PER MWh | THOUSAND MWh | PERCENT OF TOTAL ENERGY REQUIREMENTS | |||||
2012 | $ | 27.43 | 2,098 | 18.7 | ||||
2011 | $ | 38.94 | 1,569 | 13.5 | ||||
2010 | $ | 43.66 | 2,966 | 25.3 | ||||
2009 | $ | 34.57 | 5,712 | 53.6 | ||||
2008 | $ | 73.72 | 5,959 | 55.7 |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
NATURAL GAS SUPPLIER | 2012 PURCHASES (MMBtu) | AVERAGE AMOUNT PURCHASED PER DAY (MMBtu) | PERCENT OF TOTAL NATURAL GAS USED | |||||
Gavilon, LLC | 13,253,475 | 36,300 | 35.6 | % | ||||
Shell Energy North America | 7,205,000 | 19,700 | 19.3 | % | ||||
ConocoPhillips Company | 4,711,651 | 12,900 | 12.7 | % | ||||
ChevronTexaco | 3,528,286 | 9,700 | 9.5 | % | ||||
Southwestern Energy Services | 2,071,800 | 6,700 | 6.6 | % | ||||
Citigroup Energy Inc. | 1,720,732 | 4,700 | 4.6 | % | ||||
Tauber Oil Company | 783,703 | 2,100 | 2.1 | % | ||||
Others | 3,561,050 | 9,800 | 9.6 | % | ||||
Total | 36,835,697 | 101,900 | 100.0 | % |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
(THOUSANDS) | 2012 | 2011 | 2010 | ||||||||
Revenue | |||||||||||
Tolling operations | $ | 25,559 | $ | 19,004 | $ | 26,067 | |||||
Other operations | 3 | 9 | 3 | ||||||||
Affiliate revenue | — | 45 | 960 | ||||||||
Operating revenue, net | $ | 25,562 | $ | 19,058 | $ | 27,030 | |||||
Depreciation expense | $ | 6,006 | $ | 5,872 | $ | 5,779 | |||||
Interest charges | $ | 770 | $ | (28,996 | ) | $ | 7,140 | ||||
Equity income from investees, before tax | $ | — | $ | 62,053 | $ | 38,848 | |||||
Gain on toll settlement | $ | — | $ | — | $ | 148,402 | |||||
Federal and state income tax expense | $ | 6,404 | $ | 44,637 | $ | 71,255 | |||||
Segment profit | $ | 9,155 | $ | 42,792 | $ | 114,467 | |||||
Additions to long-lived assets | $ | 8,759 | $ | 8,437 | $ | 2,113 | |||||
Equity investment in investees | $ | — | $ | — | $ | 73,648 | |||||
Total segment assets | $ | 215,342 | $ | 233,891 | $ | 316,166 |
• | Evangeline, which owns and operates Coughlin, a combined-cycle natural gas-fired power plant and owns a natural gas interconnection that allows for access to the natural gas supply market. |
• | APH, which prior to April 29, 2011, owned a 50% indirect interest in Acadia, a combined-cycle natural gas-fired power plant. |
• | Generation Services, which prior to December 24, 2011, offered power station operations and maintenance services. Its customers were Evangeline and Acadia. On December 24, 2011, Generation Services’ employees were transferred to Midstream. |
GENERATING STATION | COMMENCEMENT OF COMMERCIAL OPERATION | NAMEPLATE CAPACITY (MW) | NET CAPACITY (MW) | TYPE OF FUEL USED FOR GENERATION | ||||||
Coughlin Unit 6 | 2000 | 264 | 259 | (1) | natural gas | |||||
Coughlin Unit 7 | 2000 | 511 | 494 | (1) | natural gas | |||||
Total capacity | 775 | 753 | ||||||||
(1) Based on capacity testing of generating units performed in December 2012. |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
REGULATORY MATTERS, INDUSTRY DEVELOPMENTS, AND FRANCHISES |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
DATE | CITY | TERM | NUMBER OF CUSTOMERS | |||
July 2011 | Opelousas | 10 years | 10,000 | |||
July 2011 | Colfax | 30 years | 800 | |||
November 2011 | Keachi | 30 years | 60 | |||
November 2011 | Patterson | 22 years | 2,760 | |||
December 2011 | Baldwin | 22 years | 945 | |||
April 2012 | Oakdale | 27 years | 3,300 | |||
April 2012 | Slidell | 33 years | 15,900 | |||
May 2012 | Berwick | 22 years | 2,600 | |||
October 2012 | Basile | 30 years | 900 | |||
October 2012 | Campti | 30 years | 600 |
• | the ability of electric utilities to recover stranded costs, |
• | the role of electric utilities, independent power producers, and competitive bidding in the purchase, construction, and operation of new generating capacity, |
• | the pricing of transmission service on an electric utility’s transmission system, or the cost of transmission services provided by an RTO/ISO, |
• | FERC’s assessment of market power and utilities’ ability to buy generation assets, |
• | mandatory transmission reliability standards, |
• | FERC rulemakings encouraging migration of utility operations to RTOs, |
• | the authority of FERC to grant utilities the power of eminent domain, |
• | increasing requirements for renewable energy sources, |
• | demand response and energy efficiency standards, |
• | comprehensive multi-emissions environmental regulation in the areas of air, water, and waste, |
• | regulation of greenhouse gas emissions, |
• | FERC’s increased ability to impose financial penalties, |
• | the American Recovery and Reinvestment Act of 2009, |
• | the Dodd-Frank Act, and |
• | the SEC’s requirement that financial statements be prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board by U.S. issuers for purposes of their filings with the SEC. |
ENVIRONMENTAL MATTERS |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
SUBSIDIARY (THOUSANDS) | ENVIRONMENTAL CAPITAL EXPENDITURES FOR 2012 | PROJECTED ENVIRONMENTAL CAPITAL EXPENDITURES FOR 2013 | |||||
Cleco Power | $ | 16,096 | $ | 87,474 | |||
Evangeline | 7 | — | |||||
Total | $ | 16,103 | $ | 87,474 |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
ITEM 1A. RISK FACTORS |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
ITEM 1B. UNRESOLVED STAFF COMMENTS |
ITEM 2. PROPERTIES |
CLECO CORPORATION |
CLECO POWER |
MIDSTREAM |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
ITEM 3. LEGAL PROCEEDINGS |
CLECO |
CLECO POWER |
ITEM 4. MINE SAFETY DISCLOSURES |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
NAME OF EXECUTIVE | POSITION AND FIVE-YEAR EMPLOYMENT HISTORY |
Bruce A. Williamson Cleco Corporation Cleco Power | President and Chief Executive Officer since July 2011; Chairman, President and Chief Executive Officer, Dynegy, Inc. from 2004 to 2011. Chief Executive Officer since July 2011. (Age 53; one year of service) |
Darren J. Olagues Cleco Corporation Cleco Power Midstream | Senior Vice President, Chief Financial Officer since July 2012; Senior Vice President, Chief Financial Officer and Treasurer from November 2011 to July 2012; Senior Vice President and Chief Financial Officer from May 2009 to November 2011. Senior Vice President from July 2007 to May 2009. (Age 42; 5 years of service) |
Wade A. Hoefling Cleco Corporation Cleco Power | Senior Vice President, General Counsel & Director - Regulatory Compliance since April 2008; Senior Vice President, General Counsel, Director - Regulatory Compliance and Assistant Corporate Secretary from January 2007 to April 2008. (Age 57; 6 years of service) |
Judy P. Miller Cleco Corporation Cleco Power | Senior Vice President - Corporate Services and Internal Audit since November 2011; Corporate Secretary from January 2004 to November 2011. (Age 55; 28 years of service) |
Keith D. Crump Cleco Power | Senior Vice President - Commercial Operations since March 2012; Group Vice President from March 2010 to March 2012; Vice President - Regulatory, Retail Operations and Resource Planning from March 2007 to March 2010. (Age 51; 23 years of service) |
William G. Fontenot Cleco Power | Senior Vice President - Utility Operations since March 2012; Group Vice President from March 2010 to March 2012; Vice President - Regulated Generation Development from July 2005 to March 2010. (Age 50; 26 years of service) |
Thomas R. Miller Cleco Corporation Cleco Power | Vice President - Treasurer since July 2012; Senior Vice President & Treasurer, Solar Trust of America LLC from October 2010 to July 2012; Vice President, Treasury, Exelon Corporation from June 2002 to August 2010. (Age 52; less than one year of service) |
Anthony L. Bunting Cleco Power | Vice President - Transmission & Distribution Operations since October 2012; Vice President - Customer Services and Energy Delivery from October 2004 to October 2012. (Age 53; 21 years of service) |
Robert R. LaBorde, Jr. Cleco Corporation Cleco Power | Vice President - Strategic Planning, Development and Environmental Policy from November 2011 to November 2012; General Manager - Environmental Services from August 2006 to November 2011. Vice President - Generation Operations since November 2012. (Age 45; 21 years of service) |
Terry L. Taylor Cleco Corporation Cleco Power | Controller and Chief Accounting Officer since November 2011; Assistant Controller from August 2006 to November 2011. (Age 58; 12 years of service) |
Julia E. Callis Cleco Corporation Cleco Power | Associate General Counsel and Corporate Secretary since November 2011; Senior Attorney from August 2007 to November 2011. (Age 44; 5 years of service) |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
PART II |
ITEM 5. MARKET FOR REGISTRANTS’ COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND CLECO CORPORATION’S PURCHASES OF EQUITY SECURITIES |
CLECO CORPORATION |
CLECO POWER |
ITEM 6. SELECTED FINANCIAL DATA |
CLECO |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
(THOUSANDS, EXCEPT PER SHARE AND PERCENTAGES) | 2012 | 2011 | 2010 | 2009 | 2008 | ||||||||||||||
Operating revenue (loss), net (excluding intercompany revenue) | |||||||||||||||||||
Cleco Power | $ | 991,695 | $ | 1,096,093 | $ | 1,119,084 | $ | 842,227 | $ | 1,069,674 | |||||||||
Midstream | 25,562 | 19,013 | 27,030 | 8,749 | 7,921 | ||||||||||||||
Other | (23,560 | ) | 2,207 | 2,552 | 2,782 | 2,603 | |||||||||||||
Total | $ | 993,697 | $ | 1,117,313 | $ | 1,148,666 | $ | 853,758 | $ | 1,080,198 | |||||||||
Income before income taxes | $ | 228,975 | $ | 298,745 | $ | 397,889 | $ | 115,886 | $ | 120,598 | |||||||||
Net income applicable to common stock | $ | 163,648 | $ | 195,710 | $ | 255,345 | $ | 106,261 | $ | 102,095 | |||||||||
Basic earnings per share applicable to common stock | $ | 2.71 | $ | 3.24 | $ | 4.23 | $ | 1.77 | $ | 1.70 | |||||||||
Diluted earnings per share applicable to common stock | $ | 2.70 | $ | 3.22 | $ | 4.20 | $ | 1.76 | $ | 1.70 | |||||||||
Capitalization | |||||||||||||||||||
Common shareholders’ equity | 54.39 | % | 51.50 | % | 48.46 | % | 45.77 | % | 48.89 | % | |||||||||
Preferred stock | — | — | 0.04 | % | 0.04 | % | 0.05 | % | |||||||||||
Long-term debt | 45.61 | % | 48.50 | % | 51.50 | % | 54.19 | % | 51.06 | % | |||||||||
Common shareholders’ equity | $ | 1,499,213 | $ | 1,419,857 | $ | 1,317,178 | $ | 1,115,043 | $ | 1,059,836 | |||||||||
Preferred stock | $ | — | $ | — | $ | 1,029 | $ | 1,029 | $ | 1,029 | |||||||||
Long-term debt, net | $ | 1,257,258 | $ | 1,337,056 | $ | 1,399,709 | $ | 1,320,299 | $ | 1,106,819 | |||||||||
Total assets | $ | 4,147,349 | $ | 4,050,202 | $ | 4,161,430 | $ | 3,696,479 | $ | 3,346,143 | |||||||||
Cash dividends declared per common share | $ | 1.30 | $ | 1.1225 | $ | 0.975 | $ | 0.90 | $ | 0.90 |
CLECO POWER |
ITEM 7. MANAGEMENT DISCUSSIONS AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
OVERVIEW |
• | Cleco Power, a regulated electric utility company, which owns 9 generating units with a total nameplate capacity of 2,565 MW and serves approximately 283,000 customers in Louisiana through its retail business and 10 communities across Louisiana and Mississippi through wholesale power contracts, and |
• | Midstream, a wholesale energy business, which owns Evangeline (which owns and operates Coughlin). |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
RESULTS OF OPERATIONS |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
Cleco Consolidated Results of Operations — Year ended December 31, 2012, Compared to Year ended December 31, 2011 | ||||||||||||||
FOR THE YEAR ENDED DEC. 31, | ||||||||||||||
FAVORABLE/(UNFAVORABLE) | ||||||||||||||
(THOUSANDS) | 2012 | 2011 | VARIANCE | CHANGE | ||||||||||
Operating revenue, net | $ | 993,697 | $ | 1,117,313 | $ | (123,616 | ) | (11.1 | )% | |||||
Operating expenses | 712,046 | 819,066 | 107,020 | 13.1 | % | |||||||||
Operating income | $ | 281,651 | $ | 298,247 | $ | (16,596 | ) | (5.6 | )% | |||||
Allowance for other funds used during construction | $ | 6,711 | $ | 4,947 | $ | 1,764 | 35.7 | % | ||||||
Equity income from investees, before tax | $ | — | $ | 62,050 | $ | (62,050 | ) | (100.0 | )% | |||||
Other income | $ | 29,117 | $ | 8,914 | $ | 20,203 | 226.6 | % | ||||||
Interest charges | $ | 84,156 | $ | 70,658 | $ | (13,498 | ) | (19.1 | )% | |||||
Federal and state income taxes | $ | 65,327 | $ | 102,897 | $ | 37,570 | 36.5 | % | ||||||
Net income applicable to common stock | $ | 163,648 | $ | 195,710 | $ | (32,062 | ) | (16.4 | )% |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
• | imposition of federal and/or state renewable portfolio standards, |
• | imposition of energy efficiency mandates, |
• | legislative and regulatory changes, |
• | increases in environmental regulations and compliance costs, |
• | cost of power impacted by the price movement of natural gas, the addition of solid-fuel plants which could increase or decrease costs depending on environmental regulations and commodity costs, and the addition of new generation capacity, |
• | increase in capital and operations and maintenance costs due to higher construction and labor costs, |
• | changes in electric rates compared to customers’ ability to pay, |
• | access to transmission systems, |
• | need for additional transmission capacity for reliability purposes, |
• | changes in the credit markets and global economy, |
• | implementation of automated metering initiatives or advanced metering technologies, and |
• | integration into MISO. |
Cleco Power’s Results of Operations — Year ended December 31, 2012, Compared to Year ended December 31, 2011 | |||||||||||||||
FOR THE YEAR ENDED DEC. 31, | |||||||||||||||
FAVORABLE/(UNFAVORABLE) | |||||||||||||||
(THOUSANDS) | 2012 | 2011 | VARIANCE | CHANGE | |||||||||||
Operating revenue | |||||||||||||||
Base | $ | 606,577 | $ | 605,024 | $ | 1,553 | 0.3 | % | |||||||
Fuel cost recovery | 337,592 | 446,932 | (109,340 | ) | (24.5 | )% | |||||||||
Electric customer credits | (630 | ) | (6,811 | ) | 6,181 | 90.8 | % | ||||||||
Other operations | 48,156 | 50,948 | (2,792 | ) | (5.5 | )% | |||||||||
Affiliate revenue | 1,372 | 1,389 | (17 | ) | (1.2 | )% | |||||||||
Operating revenue, net | $ | 993,067 | $ | 1,097,482 | $ | (104,415 | ) | (9.5 | )% | ||||||
Operating expenses | |||||||||||||||
Fuel used for electric generation – recoverable | 277,605 | 379,771 | 102,166 | 26.9 | % | ||||||||||
Power purchased for utility customers – recoverable | 59,989 | 67,167 | 7,178 | 10.7 | % | ||||||||||
FAC non-recoverable fuel and power purchased | 21,338 | 6,778 | (14,560 | ) | (214.8 | )% | |||||||||
Other operations | 115,072 | 116,988 | 1,916 | 1.6 | % | ||||||||||
Maintenance | 72,386 | 74,603 | 2,217 | 3.0 | % | ||||||||||
Depreciation | 125,486 | 115,634 | (9,852 | ) | (8.5 | )% | |||||||||
Taxes other than income taxes | 33,999 | 32,157 | (1,842 | ) | (5.7 | )% | |||||||||
Gain on sale of assets | (2 | ) | (9 | ) | (7 | ) | 77.8 | % | |||||||
Total operating expenses | $ | 705,873 | $ | 793,089 | $ | 87,216 | 11.0 | % | |||||||
Operating income | $ | 287,194 | $ | 304,393 | $ | (17,199 | ) | (5.7 | )% | ||||||
Allowance for other funds used during construction | $ | 6,711 | $ | 4,947 | $ | 1,764 | 35.7 | % | |||||||
Other income | $ | 5,847 | $ | 3,163 | $ | 2,684 | 84.9 | % | |||||||
Interest charges | $ | 80,502 | $ | 97,090 | $ | 16,588 | 17.1 | % | |||||||
Federal and state income taxes | $ | 68,133 | $ | 69,409 | $ | 1,276 | 1.8 | % | |||||||
Net income | $ | 146,848 | $ | 142,835 | $ | 4,013 | 2.8 | % |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
• | lower interest charges, |
• | lower electric customer credits, |
• | lower other operations and maintenance expenses, |
• | higher other income, |
• | higher allowance for other funds used during construction, |
• | higher base revenue, and |
• | lower income taxes. |
• | higher FAC non-recoverable fuel and power purchased, |
• | higher depreciation expense, |
• | lower other operations revenue, and |
• | higher taxes other than income taxes. |
FOR THE YEAR ENDED DEC. 31, | ||||||||
FAVORABLE/ | ||||||||
(MILLION kWh) | 2012 | 2011 | (UNFAVORABLE) | |||||
Electric sales | ||||||||
Residential | 3,624 | 3,877 | (6.5 | )% | ||||
Commercial | 2,655 | 2,650 | 0.2 | % | ||||
Industrial | 2,311 | 2,366 | (2.3 | )% | ||||
Other retail | 133 | 134 | (0.7 | )% | ||||
Total retail | 8,723 | 9,027 | (3.4 | )% | ||||
Sales for resale | 1,934 | 1,888 | 2.4 | % | ||||
Unbilled | (43 | ) | (139 | ) | 69.1 | % | ||
Total retail and wholesale customer sales | 10,614 | 10,776 | (1.5 | )% |
FOR THE YEAR ENDED DEC. 31, | ||||||||||
FAVORABLE/ | ||||||||||
(THOUSANDS) | 2012 | 2011 | (UNFAVORABLE) | |||||||
Electric sales | ||||||||||
Residential | $ | 281,378 | $ | 294,076 | (4.3 | )% | ||||
Commercial | 181,093 | 179,786 | 0.7 | % | ||||||
Industrial | 85,675 | 85,965 | (0.3 | )% | ||||||
Other retail | 9,908 | 9,815 | 0.9 | % | ||||||
Surcharge | 9,133 | 10,695 | (14.6 | )% | ||||||
Other | (6,252 | ) | (6,426 | ) | 2.7 | % | ||||
Total retail | $ | 560,935 | $ | 573,911 | (2.3 | )% | ||||
Sales for resale | 47,767 | 45,633 | 4.7 | % | ||||||
Unbilled | (2,125 | ) | (14,520 | ) | 85.4 | % | ||||
Total retail and wholesale customer sales | $ | 606,577 | $ | 605,024 | 0.3 | % |
FOR THE YEAR ENDED DEC. 31, | ||||||||||||||
2012 CHANGE | ||||||||||||||
2012 | 2011 | NORMAL | PRIOR YEAR | NORMAL | ||||||||||
Cooling degree-days | 3,189 | 3,255 | 2,779 | (2.0 | )% | 14.8 | % | |||||||
Heating degree-days | 1,018 | 1,510 | 1,545 | (32.6 | )% | (34.1 | )% |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
Midstream’s Results of Operations — Year ended December 31, 2012, Compared to Year ended December 31, 2011 | ||||||||||||||
FOR THE YEAR ENDED DEC. 31, | ||||||||||||||
FAVORABLE/(UNFAVORABLE) | ||||||||||||||
(THOUSANDS) | 2012 | 2011 | VARIANCE | CHANGE | ||||||||||
Operating revenue | ||||||||||||||
Tolling operations | $ | 25,559 | $ | 19,004 | $ | 6,555 | 34.5 | % | ||||||
Other operations | 3 | 9 | (6 | ) | (66.7 | )% | ||||||||
Affiliate revenue | — | 45 | (45 | ) | (100.0 | )% | ||||||||
Total operating revenue | $ | 25,562 | $ | 19,058 | $ | 6,504 | 34.1 | % | ||||||
Operating expenses | ||||||||||||||
Fuel used for electric generation | $ | 304 | $ | — | $ | (304 | ) | — | ||||||
Power purchased for utility customers | 9 | — | (9 | ) | — | |||||||||
Other operations | 7,786 | 8,408 | 622 | 7.4 | % | |||||||||
Maintenance | 13,693 | 7,204 | (6,489 | ) | (90.1 | )% | ||||||||
Depreciation | 6,006 | 5,872 | (134 | ) | (2.3 | )% | ||||||||
Taxes other than income taxes | 2,559 | 2,399 | (160 | ) | (6.7 | )% | ||||||||
Loss on sales of assets | 64 | 404 | 340 | 84.2 | % | |||||||||
Total operating expenses | $ | 30,421 | $ | 24,287 | $ | (6,134 | ) | (25.3 | )% | |||||
Operating loss | $ | (4,859 | ) | $ | (5,229 | ) | $ | 370 | 7.1 | % | ||||
Equity income from investees, before tax | $ | — | $ | 62,053 | $ | (62,053 | ) | (100.0 | )% | |||||
Other income | $ | 21,216 | $ | 1,619 | $ | 19,597 | * | |||||||
Interest charges (income) | $ | 770 | $ | (28,996 | ) | $ | (29,766 | ) | (102.7 | )% | ||||
Federal and state income tax expense | $ | 6,404 | $ | 44,637 | $ | 38,233 | 85.7 | % | ||||||
Net income | $ | 9,155 | $ | 42,792 | $ | (33,637 | ) | (78.6 | )% | |||||
* Not meaningful |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
Cleco Consolidated Results of Operations — Year ended December 31, 2011, Compared to Year ended December 31, 2010 | ||||||||||||||
FOR THE YEAR ENDED DEC. 31, | ||||||||||||||
FAVORABLE/(UNFAVORABLE) | ||||||||||||||
(THOUSANDS) | 2011 | 2010 | VARIANCE | CHANGE | ||||||||||
Operating revenue, net | $ | 1,117,313 | $ | 1,148,666 | $ | (31,353 | ) | (2.7 | )% | |||||
Operating expenses | 819,066 | 855,707 | 36,641 | 4.3 | % | |||||||||
Operating income | $ | 298,247 | $ | 292,959 | $ | 5,288 | 1.8 | % | ||||||
Allowance for other funds used during construction | $ | 4,947 | $ | 12,413 | $ | (7,466 | ) | (60.1 | )% | |||||
Equity income from investees, before tax | $ | 62,050 | $ | 38,849 | $ | 23,201 | 59.7 | % | ||||||
Gain on toll settlement | $ | — | $ | 148,402 | $ | (148,402 | ) | (100.0 | )% | |||||
Other income | $ | 8,914 | $ | 5,242 | $ | 3,672 | 70.0 | % | ||||||
Other expense | $ | (5,646 | ) | $ | (4,609 | ) | $ | (1,037 | ) | (22.5 | )% | |||
Interest charges | $ | 70,658 | $ | 95,776 | $ | 25,118 | 26.2 | % | ||||||
Federal and state income taxes | $ | 102,897 | $ | 142,498 | $ | 39,601 | 27.8 | % | ||||||
Net income applicable to common stock | $ | 195,710 | $ | 255,345 | $ | (59,635 | ) | (23.4 | )% |
Cleco Power’s Results of Operations — Year ended December 31, 2011, Compared to Year ended December 31, 2010 | ||||||||||||||
FOR THE YEAR ENDED DEC. 31, | ||||||||||||||
FAVORABLE/(UNFAVORABLE) | ||||||||||||||
(THOUSANDS) | 2011 | 2010 | VARIANCE | CHANGE | ||||||||||
Operating revenue | ||||||||||||||
Base | $ | 605,024 | $ | 592,676 | $ | 12,348 | 2.1 | % | ||||||
Fuel cost recovery | 446,932 | 493,426 | (46,494 | ) | (9.4 | )% | ||||||||
Electric customer credits | (6,811 | ) | (9,596 | ) | 2,785 | 29.0 | % | |||||||
Other operations | 50,948 | 42,578 | 8,370 | 19.7 | % | |||||||||
Affiliate revenue | 1,389 | 1,371 | 18 | 1.3 | % | |||||||||
Operating revenue, net | $ | 1,097,482 | $ | 1,120,455 | $ | (22,973 | ) | (2.1 | )% | |||||
Operating expenses | ||||||||||||||
Fuel used for electric generation – recoverable | $ | 379,771 | $ | 355,425 | $ | (24,346 | ) | (6.8 | )% | |||||
Power purchased for utility customers – recoverable | 67,167 | 138,051 | 70,884 | 51.3 | % | |||||||||
FAC non-recoverable fuel and power purchased | 6,778 | 14,226 | 7,448 | 52.4 | % | |||||||||
Other operations | 116,988 | 109,678 | (7,310 | ) | (6.7 | )% | ||||||||
Maintenance | 74,603 | 72,048 | (2,555 | ) | (3.5 | )% | ||||||||
Depreciation | 115,634 | 107,966 | (7,668 | ) | (7.1 | )% | ||||||||
Taxes other than income taxes | 32,157 | 32,744 | 587 | 1.8 | % | |||||||||
(Gain) loss on sale of assets | (9 | ) | 47 | 56 | 119.1 | % | ||||||||
Total operating expenses | $ | 793,089 | $ | 830,185 | $ | 37,096 | 4.5 | % | ||||||
Operating income | $ | 304,393 | $ | 290,270 | $ | 14,123 | 4.9 | % | ||||||
Allowance for other funds used during construction | $ | 4,947 | $ | 12,413 | $ | (7,466 | ) | (60.1 | )% | |||||
Other income | $ | 3,163 | $ | 2,007 | $ | 1,156 | 57.6 | % | ||||||
Interest charges | $ | 97,090 | $ | 78,731 | $ | (18,359 | ) | (23.3 | )% | |||||
Federal and state income taxes | $ | 69,409 | $ | 75,107 | $ | 5,698 | 7.6 | % | ||||||
Net income | $ | 142,835 | $ | 147,405 | $ | (4,570 | ) | (3.1 | )% |
• | higher interest charges, |
• | higher other operations and maintenance expenses, |
• | lower allowance for other funds used during construction, and |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
• | higher depreciation expense. |
• | higher base revenue, |
• | higher other operations revenue, |
• | lower FAC non-recoverable fuel and power purchased, |
• | lower electric customer credits, and |
• | lower income taxes. |
FOR THE YEAR ENDED DEC. 31, | ||||||||
FAVORABLE/ | ||||||||
(MILLION kWh) | 2011 | 2010 | (UNFAVORABLE) | |||||
Electric sales | ||||||||
Residential | 3,877 | 3,978 | (2.5 | )% | ||||
Commercial | 2,650 | 2,605 | 1.7 | % | ||||
Industrial | 2,366 | 2,271 | 4.2 | % | ||||
Other retail | 134 | 138 | (2.9 | )% | ||||
Total retail | 9,027 | 8,992 | 0.4 | % | ||||
Sales for resale | 1,888 | 1,983 | (4.8 | )% | ||||
Unbilled | (139 | ) | 46 | (402.2 | )% | |||
Total retail and wholesale customer sales | 10,776 | 11,021 | (2.2 | )% |
FOR THE YEAR ENDED DEC. 31, | ||||||||||
FAVORABLE/ | ||||||||||
(THOUSANDS) | 2011 | 2010 | (UNFAVORABLE) | |||||||
Electric sales | ||||||||||
Residential | $ | 294,076 | $ | 271,781 | 8.2 | % | ||||
Commercial | 179,786 | 160,039 | 12.3 | % | ||||||
Industrial | 85,965 | 78,158 | 10.0 | % | ||||||
Other retail | 9,815 | 9,186 | 6.8 | % | ||||||
Storm surcharge | 10,695 | 8,888 | 20.3 | % | ||||||
Other | (6,426 | ) | (6,005 | ) | (7.0 | )% | ||||
Total retail | $ | 573,911 | $ | 522,047 | 9.9 | % | ||||
Sales for resale | 45,633 | 47,954 | (4.8 | )% | ||||||
Unbilled | (14,520 | ) | 22,675 | (164.0 | )% | |||||
Total retail and wholesale customer sales | $ | 605,024 | $ | 592,676 | 2.1 | % |
FOR THE YEAR ENDED DEC. 31, | ||||||||||||||
2011 CHANGE | ||||||||||||||
2011 | 2010 | NORMAL | PRIOR YEAR | NORMAL | ||||||||||
Cooling degree-days | 3,255 | 3,150 | 2,689 | 3.3 | % | 21.0 | % | |||||||
Heating degree-days | 1,510 | 1,967 | 1,620 | (23.2 | )% | (6.8 | )% |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
Midstream’s Results of Operations — Year ended December 31, 2011, Compared to Year ended December 31, 2010 | ||||||||||||||
FOR THE YEAR ENDED DEC. 31, | ||||||||||||||
FAVORABLE/(UNFAVORABLE) | ||||||||||||||
(THOUSANDS) | 2011 | 2010 | VARIANCE | CHANGE | ||||||||||
Operating revenue | ||||||||||||||
Tolling operations | $ | 19,004 | $ | 26,067 | $ | (7,063 | ) | (27.1 | )% | |||||
Other operations | 9 | 3 | 6 | 200.0 | % | |||||||||
Affiliate revenue | 45 | 960 | (915 | ) | (95.3 | )% | ||||||||
Total operating revenue | $ | 19,058 | $ | 27,030 | $ | (7,972 | ) | (29.5 | )% | |||||
Operating expenses | ||||||||||||||
Other operations | $ | 8,408 | $ | 8,082 | $ | (326 | ) | (4.0 | )% | |||||
Maintenance | 7,204 | 8,868 | 1,664 | 18.8 | % | |||||||||
Depreciation | 5,872 | 5,779 | (93 | ) | (1.6 | )% | ||||||||
Taxes other than income taxes | 2,399 | 342 | (2,057 | ) | (601.5 | )% | ||||||||
Loss on sales of assets | 404 | 387 | (17 | ) | (4.4 | )% | ||||||||
Total operating expenses | $ | 24,287 | $ | 23,458 | $ | (829 | ) | (3.5 | )% | |||||
Operating (loss) income | $ | (5,229 | ) | $ | 3,572 | $ | (8,801 | ) | (246.4 | )% | ||||
Equity income from investees, before tax | $ | 62,053 | $ | 38,848 | $ | 23,205 | 59.7 | % | ||||||
Gain on toll settlement | $ | — | $ | 148,402 | $ | (148,402 | ) | (100.0 | )% | |||||
Interest (income) charges | $ | (28,996 | ) | $ | 7,140 | $ | 36,136 | 506.1 | % | |||||
Federal and state income tax expense | $ | 44,637 | $ | 71,255 | $ | 26,618 | 37.4 | % | ||||||
Net income | $ | 42,792 | $ | 114,467 | $ | (71,675 | ) | (62.6 | )% |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
CLECO POWER LLC — NARRATIVE ANALYSIS OF RESULTS OF OPERATIONS |
CRITICAL ACCOUNTING POLICIES |
• | Cleco accounts for pension and other postretirement benefits under applicable GAAP. To determine assets, liabilities, income, and expense relating to pension and other postretirement benefits, management must make assumptions about future trends. Assumptions and estimates include, but are not limited to, discount rate, expected return on plan assets, future rate of compensation increases, and medical inflation trend rates. These assumptions are reviewed and updated on an annual basis. Changes in the rates from year to year and newly-enacted laws could have a material effect on Cleco’s financial condition and results of operations by changing the recorded assets, liabilities, income, expense, or required funding of the pension plan obligation. One component of pension expense is the expected return on plan assets. It is an assumed percentage return on the market-related value of plan assets. The market-related value of plan assets differs from the fair value of plan assets by the amount of deferred asset gains or losses. Actual asset returns that differ from the expected return on plan assets are deferred and recognized in the market-related value of assets on a straight-line basis over a five-year period. The 2012 return on plan assets was 15.2% compared to an expected long-term return of 6.6%. For 2011, the return on plan assets was 8.7% compared to an expected long-term return of 7.8%. For the calculation of the 2013 periodic expense, Cleco is increasing the expected long-term return on plan |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
• | Income tax expense and related balance sheet amounts are comprised of a “current” portion and a “deferred” portion. The current portion represents Cleco’s estimate of the income taxes payable or receivable for the current year. The deferred portion represents Cleco’s estimate of the future income tax effects of events that have been recognized in the financial statements or income tax returns in the current or prior years. Cleco makes assumptions and estimates when it records income taxes, such as its ability to deduct items on its tax returns, the timing of the deduction, and the effect of regulation by the LPSC on income taxes. Cleco’s income tax expense and related assets and liabilities could be affected by changes in its assumptions and estimates and by ultimate resolution of assumptions and estimates with taxing authorities. The actual results may differ from the estimated results based on these assumptions and may have a material effect on Cleco’s results of operations. For more information about Cleco Corporation’s income taxes, see Item 8, “Financial Statements and Supplementary Data — Notes to the Financial Statements — Note 9 — Income Taxes.” |
• | Cleco Corporation consolidates entities as required by GAAP. Generally, a parent consolidates entities in which it controls, either directly or indirectly, the majority of the voting interest. Additionally, a parent could be required to consolidate an entity in which it does not control a majority voting interest if the subsidiary is a variable interest entity and meets certain criteria making the parent the primary beneficiary of an entity. An entity is a variable interest entity if it lacks the ability to finance its activities without support from other parties, if its owners lack controlling financial interest in the entity, or if the entity either conducts substantially all of its activities with or on behalf of an investor or if voting rights are disproportional to risks and rewards. While consolidation or the equity method of accounting will not affect net income applicable to common shareholders, it may affect specific line items within the income statement, such as revenue, specific expense line items, and income from equity investees. Consolidation or the equity method of accounting of an entity will affect specific balance sheet items such as property, plant, and equipment, and long-term debt, which will cause changes in total assets and total liabilities. Shareholders’ equity should not be affected by consolidation or the equity method of accounting of entities. Effective January 1, 2010, the requirements for consolidation changed, requiring Cleco Corporation to consolidate Perryville, Attala, and Evangeline which had been previously accounted for using the equity method. |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
• | Part of the compensation employees and directors receive is in the form of equity instruments. The instruments may take the form of restricted stock, stock equivalent units, or other types of equity instruments as described in the compensatory plans. Cleco recognizes equity compensation at the grant date fair value for instruments settled in equity and reporting date fair value for equity compensation settled in cash. Estimates used in the calculation require management judgments and could cause volatility in earnings. For more information on stock-based compensation, see Item 8, “Financial Statements and Supplemental Data — Notes to the Financial Statements — Note 7 — Common and Preferred Stock — Common Stock — Stock-Based Compensation.” |
• | The LPSC determines the ability of Cleco Power to recover prudent costs incurred in developing long-lived assets. If the LPSC were to rule that the cost of current or future long-lived assets was imprudent and not recoverable, Cleco Power could be required to write down the imprudent cost and incur a corresponding impairment loss. At December 31, 2012, the carrying value of Cleco Power’s long-lived assets was $2.64 billion. Currently, Cleco Power has concluded that none of its long-lived assets are impaired. |
• | Cleco Power has concluded it is probable that regulatory assets can be recovered from ratepayers in future rates. At December 31, 2012, Cleco Power had $510.7 million in regulatory assets, net of regulatory liabilities. Actions by the LPSC could limit the recovery of these regulatory assets, causing Cleco Power to record a loss on some or all of the regulatory assets. For more information on the LPSC and regulatory assets, see Item 8, “Financial Statements and Supplementary Data — Notes to the Financial Statements — Note 2 — Summary of Significant Accounting Policies — Regulation,” Note 3 — “Regulatory Assets and Liabilities,” and “— Financial Condition — Regulatory and Other Matters — Lignite Deferral.” |
• | The LPSC determines the amount and type of fuel and purchased power costs that Cleco Power can charge customers through the FAC. Changes in the determination of allowable costs already incurred by Cleco Power could cause material changes in fuel revenue. For the years ended December 31, 2012, 2011, and 2010, Cleco Power reported fuel revenue of $337.6 million, $446.9 million, and $493.4 million, respectively. |
• | Certain triggering events could cause Midstream to determine that its long-lived assets may be impaired according to applicable accounting guidance. Triggering events which apply to long-lived assets include, but are not limited to, a significant decrease in the market value of long-lived assets, a significant change in legal factors, such as adverse changes in environmental laws, or a current operating or cash flow loss combined with a projection of continued losses in the future. Any impairment calculated is subject to many assumptions and estimations. Management must make assumptions about expected future cash flows, long-term interest rates, estimates about the probability of the occurrence of future events, and estimates of market value of assets without a readily observable market price. Differences between the estimate made at a particular balance sheet date and actual events could cause material adjustments to an impairment charge. In February 2010, a triggering event occurred at Evangeline when the long-term Evangeline Tolling Agreement was terminated. An impairment charge was not recorded since the undiscounted expected future net cash flows exceeded the carrying value of Evangeline’s property, plant, and equipment. |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
• | At December 31, 2012, Midstream had $8.2 million in indemnification liabilities related to the Acadia Unit 1 and Acadia Unit 2 transactions. The indemnification liabilities contain management’s assumptions and estimates concerning the amount, timing, and probability of potential payments. If those assumptions and estimates do not reflect actual results, then certain triggering events could cause Midstream to make payments in excess of the liability, which could result in additional expenses. For more information regarding these transactions, see Item 8, “Financial Statements and Supplementary Data — Notes to the Financial Statements — Note 14 — Litigation, Other Commitments and Contingencies, and Disclosures about Guarantees — Disclosures about Guarantees.” |
FINANCIAL CONDITION |
SENIOR UNSECURED DEBT | |||
MOODY’S | STANDARD & POOR’S | ||
Cleco Corporation | Baa3 | BBB- | |
Cleco Power | Baa2 | BBB |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
AT DEC. 31, | |||||||
(THOUSANDS) | 2012 | 2011 | |||||
Diversified Lands’ mitigation escrow | $ | 97 | $ | 97 | |||
Cleco Katrina/Rita’s storm recovery bonds | 8,781 | 8,761 | |||||
Cleco Power’s future storm restoration costs | 5,343 | 24,876 | |||||
Cleco Power’s renewable energy grant | — | 381 | |||||
Cleco Power’s NOx allowance escrow | — | 1,713 | |||||
Total restricted cash and cash equivalents | $ | 14,221 | $ | 35,828 |
• | $75.4 million net decrease in current tax liabilities and uncertain tax positions and related interest charges expected to be settled in the next 12 months, |
• | $24.8 million decrease in accounts payable, |
• | $24.8 million decrease in regulatory liabilities, |
• | $6.3 million increase in cash surrender value of company and trust-owned life insurance policies, |
• | $5.7 million increase in accumulated deferred fuel, |
• | $5.3 million decrease in energy risk management liabilities, and |
• | $5.0 million increase in fuel inventories. |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
• | $65.0 million increase in long-term debt due within one year and |
• | $62.6 million decrease in cash and cash equivalents as discussed above. |
• | $98.0 million net decrease in current tax liabilities and uncertain tax positions and related interest charges expected to be settled in the next 12 months, |
• | $23.5 million decrease in accounts payable, |
• | $24.8 million decrease in regulatory liabilities, |
• | $5.7 million increase in accumulated deferred fuel, |
• | $5.3 million decrease in energy risk management liabilities, and |
• | $5.0 million increase in fuel inventories. |
• | $65.0 million increase in long-term debt due within one year and |
• | $44.1 million decrease in cash and cash equivalents as discussed above. |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
• | the absence of the return on equity investment in Acadia of $58.7 million, |
• | the absence of 2011 fuel oil inventory sales of $31.5 million, |
• | higher vendor payments of $29.2 million, |
• | higher deferred fuel costs of $12.9 million, |
• | higher expenditures for other fuel inventories and related transportation of $12.4 million, |
• | the absence of $10.9 million cash received in exchange for accepting the contingent sale liability related to the Acadia Unit 2 transaction in 2011, and |
• | lower collection of receivables of $5.4 million. |
• | the absence of pension plan contributions of $60.0 million, |
• | lower tax payments of $47.3 million, and |
• | lower payments for gas and power purchases of $11.5 million. |
• | return on equity investment in Acadia of $58.7 million, |
• | absence of 2010 Madison Unit 3 construction carrying costs, Acadia Unit 1 acquisition costs, rate case costs, and IRP/FRP costs of $47.2 million, |
• | higher collection of receivables of $30.6 million, |
• | fuel oil inventory sales of $31.5 million, |
• | lower income taxes paid of $28.9 million, |
• | lower petroleum coke inventory purchases of $23.3 million due to the build-up of inventory in 2010, |
• | lower natural gas purchases of $3.9 million due to the build-up of inventory in 2010, and |
• | lower postretirement plan carrying costs of $2.4 million. |
• | higher pension plan contributions of $55.0 million, |
• | absence of the 2010 collection of a $28.0 million long-term receivable related to the Evangeline Restructuring Agreement, |
• | higher coal inventory purchases of $16.7 million, |
• | absence of the 2010 cash portion of the gain related to the Evangeline Restructuring Agreement of $18.5 million, and |
• | higher vendor payments of $9.3 million. |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
• | the absence of 2011 fuel oil inventory sales of $31.5 million, |
• | higher vendor payments of $27.9 million, |
• | higher deferred fuel costs of $12.9 million, |
• | higher expenditures for other fuel inventories and related transportation of $12.4 million, and |
• | lower customer deposits of $1.5 million. |
• | lower pension plan contributions of $60.0 million, |
• | lower payments for gas and power purchases of $11.5 million, |
• | the absence of tax credits purchased in 2011 of $4.2 million, and |
• | lower tax payments of $2.9 million. |
• | absence of 2010 Madison 3 construction carrying costs, Acadia Unit 1 acquisition costs, rate case costs, and IRP/FRP costs of $47.2 million, |
• | higher collection of receivables of $31.6 million, |
• | fuel oil inventory sales of $31.5 million, |
• | lower petroleum coke inventory purchases of $23.3 million due to the build-up of inventory in 2010, |
• | lower payments to affiliates of $19.2 million, |
• | lower natural gas purchases of $3.9 million due to the build-up of inventory in 2010, and |
• | lower postretirement plan carrying costs of $2.4 million. |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
• | higher pension plan contributions of $55.0 million, |
• | higher coal inventory purchases of $16.7 million, and |
• | higher vendor payments of $11.0 million. |
Cleco | |||||||||||||
PROJECT (THOUSANDS) | 2013 | % | 2013-2017 | % | |||||||||
Other environmental | $ | 2,000 | 1 | % | $ | 13,000 | 2 | % | |||||
AMI | 17,000 | 7 | % | 17,000 | 2 | % | |||||||
MATS | 83,000 | 35 | % | 105,000 | 14 | % | |||||||
New business | 27,000 | 11 | % | 142,000 | 20 | % | |||||||
General (1) | 111,000 | 46 | % | 453,000 | 62 | % | |||||||
Total capital expenditures | $ | 240,000 | 100 | % | $ | 730,000 | 100 | % | |||||
Debt payments | 89,000 | 229,000 | |||||||||||
Total capital expenditures and debt payments | $ | 329,000 | $ | 959,000 | |||||||||
(1) Refers to the rehabilitation of older transmission, distribution, and generation assets at Cleco Power, plant maintenance at Coughlin, and hardware and software upgrades at Support Group. |
Cleco Power | |||||||||||||
PROJECT (THOUSANDS) | 2013 | % | 2013-2017 | % | |||||||||
Other environmental | $ | 2,000 | 1 | % | $ | 13,000 | 2 | % | |||||
AMI | 17,000 | 7 | % | 17,000 | 2 | % | |||||||
MATS | 83,000 | 36 | % | 105,000 | 15 | % | |||||||
New business | 27,000 | 12 | % | 142,000 | 20 | % | |||||||
General (1) | 103,000 | 44 | % | 436,000 | 61 | % | |||||||
Total capital expenditures | $ | 232,000 | 100 | % | $ | 713,000 | 100 | % | |||||
Debt payments | 89,000 | 204,000 | |||||||||||
Total capital expenditures and debt payments | $ | 321,000 | $ | 917,000 | |||||||||
(1) Refers to the rehabilitation of older transmission, distribution, and generation assets at Cleco Power. |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
PAYMENTS DUE BY PERIOD | |||||||||||||||||||
CONTRACTUAL OBLIGATIONS (THOUSANDS) | TOTAL | LESS THAN ONE YEAR | 1-3 YEARS | 3-5 YEARS | MORE THAN 5 YEARS | ||||||||||||||
Cleco Corporation | |||||||||||||||||||
Long-term debt obligations (1) | $ | 27,361 | $ | 25,625 | $ | 1,250 | $ | 486 | $ | — | |||||||||
Operating lease obligations (3) | 14 | 9 | 5 | — | — | ||||||||||||||
Purchase obligations (4) | 61,406 | 27,490 | 33,366 | 537 | 13 | ||||||||||||||
Other long-term liabilities (5) | 14,237 | 1,573 | 5,726 | 2,043 | 4,895 | ||||||||||||||
Pension obligations (6) | 177,372 | 5,557 | 12,002 | 13,241 | 146,572 | ||||||||||||||
Total Cleco Corporation | $ | 280,390 | $ | 60,254 | $ | 52,349 | $ | 16,307 | $ | 151,480 | |||||||||
Cleco Power | |||||||||||||||||||
Long-term debt obligations (1) | $ | 2,701,632 | $ | 169,039 | $ | 235,053 | $ | 166,367 | $ | 2,131,173 | |||||||||
Capital lease obligations (2) | 11,350 | 2,171 | 4,753 | 4,426 | — | ||||||||||||||
Operating lease obligations (3) | 53,978 | 9,333 | 19,886 | 21,002 | 3,757 | ||||||||||||||
Purchase obligations (4) | 552,671 | 253,120 | 212,477 | 86,825 | 249 | ||||||||||||||
Other long-term liabilities (5) | 202,501 | 14,543 | 32,613 | 38,653 | 116,692 | ||||||||||||||
Total Cleco Power | $ | 3,522,132 | $ | 448,206 | $ | 504,782 | $ | 317,273 | $ | 2,251,871 | |||||||||
Midstream | |||||||||||||||||||
Purchase obligations (4) | $ | 3,198 | $ | 1,398 | $ | 1,200 | $ | 600 | $ | — | |||||||||
Total Midstream | $ | 3,198 | $ | 1,398 | $ | 1,200 | $ | 600 | $ | — | |||||||||
Total long-term debt obligations (1) | $ | 2,728,993 | $ | 194,664 | $ | 236,303 | $ | 166,853 | $ | 2,131,173 | |||||||||
Total capital lease obligations (2) | $ | 11,350 | $ | 2,171 | $ | 4,753 | $ | 4,426 | $ | — | |||||||||
Total operating lease obligations (3) | $ | 53,992 | $ | 9,342 | $ | 19,891 | $ | 21,002 | $ | 3,757 | |||||||||
Total purchase obligations (4) | $ | 617,275 | $ | 282,008 | $ | 247,043 | $ | 87,962 | $ | 262 | |||||||||
Total other long-term liabilities (5) | $ | 216,738 | $ | 16,116 | $ | 38,339 | $ | 40,696 | $ | 121,587 | |||||||||
Total pension obligations (6) | $ | 177,372 | $ | 5,557 | $ | 12,002 | $ | 13,241 | $ | 146,572 | |||||||||
Total | $ | 3,805,720 | $ | 509,858 | $ | 558,331 | $ | 334,180 | $ | 2,403,351 |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
UNCERTAIN TAX POSITIONS (THOUSANDS) | AT DEC. 31, 2012 | ||||
Tax liability | 3,126 | ||||
Interest | 1,420 | ||||
Total* | $ | 4,546 | |||
Cleco | 4,546 | (1) | |||
Cleco Power | 3,606 | (2) | |||
Midstream | 1,794 | (3) | |||
*Uncertain federal and state tax positions as of December 31, 2012, that will be settled at some future date with the IRS and Louisiana Department of Revenue. (1) Includes interest of $1,420 (2) Includes interest of $3,358 3) Includes interest of ($1,085) |
AT DEC. 31, 2012 | |||||||||||
(THOUSANDS) | FACE AMOUNT | REDUCTIONS | NET AMOUNT | ||||||||
Cleco Corporation | |||||||||||
Guarantee issued to Entergy Mississippi on behalf of Attala | $ | 500 | $ | — | $ | 500 | |||||
Cleco Power | |||||||||||
Obligations under standby letter of credit issued to the Louisiana Department of Labor | 3,725 | — | 3,725 | ||||||||
Total | $ | 4,225 | $ | — | $ | 4,225 |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
AT DEC. 31, 2012 | |||||||||||||||||||
AMOUNT OF COMMITMENT EXPIRATION PER PERIOD | |||||||||||||||||||
(THOUSANDS) | NET AMOUNT COMMITTED | LESS THAN ONE YEAR | 1-3 YEARS | 3-5 YEARS | MORE THAN 5 YEARS | ||||||||||||||
Off-balance sheet commitments | $ | 4,225 | $ | 3,725 | $ | — | $ | — | $ | 500 | |||||||||
On-balance sheet guarantees | 12,156 | 7,250 | 900 | — | 4,006 | ||||||||||||||
Total | $ | 16,381 | $ | 10,975 | $ | 900 | $ | — | $ | 4,506 |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
Risk Overview |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
FOR THE YEAR ENDED DEC. 31, 2012 | AT DEC. 31, | ||||||||||||||||||
(THOUSANDS) | HIGH | LOW | AVERAGE | 2012 | 2011 | ||||||||||||||
Fuel cost hedges | $ | 382.0 | $ | — | $ | 125.1 | $ | — | $ | 196.1 |
Cleco Power |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA |
Report of Independent Registered Public Accounting Firm |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
CLECO CORPORATION |
Consolidated Statements of Income | |||||||||||
FOR THE YEAR ENDED DEC. 31, | |||||||||||
(THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS) | 2012 | 2011 | 2010 | ||||||||
Operating revenue | |||||||||||
Electric operations | $ | 944,169 | $ | 1,051,956 | $ | 1,086,102 | |||||
Tolling operations | — | 19,004 | 26,067 | ||||||||
Other operations | 50,158 | 52,962 | 44,529 | ||||||||
Affiliate revenue | — | 202 | 1,564 | ||||||||
Gross operating revenue | 994,327 | 1,124,124 | 1,158,262 | ||||||||
Electric customer credits | (630 | ) | (6,811 | ) | (9,596 | ) | |||||
Operating revenue, net | 993,697 | 1,117,313 | 1,148,666 | ||||||||
Operating expenses | |||||||||||
Fuel used for electric generation | 280,553 | 383,254 | 363,550 | ||||||||
Power purchased for utility customers | 53,134 | 70,462 | 144,152 | ||||||||
Other operations | 120,898 | 123,849 | 117,229 | ||||||||
Maintenance | 86,488 | 82,076 | 81,228 | ||||||||
Depreciation | 132,407 | 122,578 | 114,584 | ||||||||
Taxes other than income taxes | 38,515 | 36,356 | 34,626 | ||||||||
Loss on sale of assets | 51 | 491 | 338 | ||||||||
Total operating expenses | 712,046 | 819,066 | 855,707 | ||||||||
Operating income | 281,651 | 298,247 | 292,959 | ||||||||
Interest income | 346 | 891 | 409 | ||||||||
Allowance for other funds used during construction | 6,711 | 4,947 | 12,413 | ||||||||
Equity income from investees, before tax | — | 62,050 | 38,849 | ||||||||
Gain on toll settlement | — | — | 148,402 | ||||||||
Other income | 29,117 | 8,914 | 5,242 | ||||||||
Other expense | (4,694 | ) | (5,646 | ) | (4,609 | ) | |||||
Interest charges | |||||||||||
Interest charges, including amortization of debt expense, premium, and discount, net | 86,448 | 72,445 | 100,339 | ||||||||
Allowance for borrowed funds used during construction | (2,292 | ) | (1,787 | ) | (4,563 | ) | |||||
Total interest charges | 84,156 | 70,658 | 95,776 | ||||||||
Income before income taxes | 228,975 | 298,745 | 397,889 | ||||||||
Federal and state income tax expense | 65,327 | 102,897 | 142,498 | ||||||||
Net income | 163,648 | 195,848 | 255,391 | ||||||||
Preferred dividends requirements | — | 26 | 46 | ||||||||
Preferred stock redemption costs | — | 112 | — | ||||||||
Net income applicable to common stock | $ | 163,648 | $ | 195,710 | $ | 255,345 | |||||
Average number of basic common shares outstanding | 60,370,588 | 60,488,740 | 60,431,142 | ||||||||
Average number of diluted common shares outstanding | 60,628,129 | 60,833,564 | 60,754,589 | ||||||||
Basic earnings per share | |||||||||||
Net income applicable to common stock | $ | 2.71 | $ | 3.24 | $ | 4.23 | |||||
Diluted earnings per share | |||||||||||
Net income applicable to common stock | $ | 2.70 | $ | 3.22 | $ | 4.20 | |||||
Cash dividends paid per share of common stock | $ | 1.30 | $ | 1.1225 | $ | 0.975 | |||||
The accompanying notes are an integral part of the consolidated financial statements. |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
CLECO CORPORATION |
Consolidated Statements of Comprehensive Income | |||||||||||
FOR THE YEAR ENDED DEC. 31, | |||||||||||
(THOUSANDS) | 2012 | 2011 | 2010 | ||||||||
Net income | $ | 163,648 | $ | 195,848 | $ | 255,391 | |||||
Other comprehensive loss, net of tax: | |||||||||||
Amortization of postretirement benefit net loss (gain) (net of tax expense of $1,200 in 2012 and $605 in 2011, and tax benefit of $20 in 2010) | 2,117 | 1,213 | (31 | ) | |||||||
Postretirement benefit loss incurred during the year (net of tax benefit of $5,430 in 2012 and $949 in 2011, and tax expense of $131 in 2010) | (8,682 | ) | (1,721 | ) | (4,241 | ) | |||||
Cash flow hedges: | |||||||||||
Net derivative gain (loss) (net of tax expense of $271 in 2012 and $1,823 in 2010, and tax benefit of $9,873 in 2011) | 433 | (15,788 | ) | 2,916 | |||||||
Reclassification of net loss (gain) to interest charges (net of tax expense of $23 in 2012 and $197 in 2010, and tax benefit of $129 in 2011) | 37 | (205 | ) | 315 | |||||||
Reclassification of ineffectiveness to regulatory asset (net of tax expense of $1,166 in 2012) | 1,864 | — | — | ||||||||
Reclassification of net loss to other expense (net of tax expense of $434 in 2010) | — | — | 694 | ||||||||
Total other comprehensive loss, net of tax | (4,231 | ) | (16,501 | ) | (347 | ) | |||||
Comprehensive income, net of tax | $ | 159,417 | $ | 179,347 | $ | 255,044 | |||||
The accompanying notes are an integral part of the consolidated financial statements. |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
CLECO CORPORATION |
Consolidated Balance Sheets | |||||||
AT DEC. 31, | |||||||
(THOUSANDS) | 2012 | 2011 | |||||
Assets | |||||||
Current assets | |||||||
Cash and cash equivalents | $ | 31,020 | $ | 93,576 | |||
Restricted cash and cash equivalents | 8,781 | 8,761 | |||||
Customer accounts receivable (less allowance for doubtful accounts of $1,105 in 2012 and $1,128 in 2011) | 39,293 | 37,813 | |||||
Other accounts receivable (less allowance for doubtful accounts of $0 in 2012 and $8 in 2011) | 37,741 | 42,051 | |||||
Taxes receivable, net | 34,612 | 44,584 | |||||
Unbilled revenue | 28,662 | 30,129 | |||||
Fuel inventory, at average cost | 46,867 | 41,845 | |||||
Material and supplies inventory, at average cost | 58,232 | 53,714 | |||||
Accumulated deferred federal and state income taxes, net | 79,353 | 29,249 | |||||
Accumulated deferred fuel | 7,833 | 2,136 | |||||
Cash surrender value of company-/trust-owned life insurance policies | 57,346 | 51,073 | |||||
Prepayments | 5,951 | 5,384 | |||||
Regulatory assets – other | 11,095 | 13,028 | |||||
Other current assets | 552 | 3,442 | |||||
Total current assets | 447,338 | 456,785 | |||||
Property, plant and equipment | |||||||
Property, plant, and equipment | 4,140,194 | 4,023,655 | |||||
Accumulated depreciation | (1,311,273 | ) | (1,230,783 | ) | |||
Net property, plant, and equipment | 2,828,921 | 2,792,872 | |||||
Construction work in progress | 180,540 | 101,027 | |||||
Total property, plant and equipment, net | 3,009,461 | 2,893,899 | |||||
Equity investment in investees | 14,540 | 14,540 | |||||
Prepayments | 4,261 | 4,770 | |||||
Restricted cash and cash equivalents, less current portion | 5,440 | 27,067 | |||||
Restricted investments | 10,852 | — | |||||
Regulatory assets and liabilities – deferred taxes, net | 210,445 | 214,421 | |||||
Regulatory assets – other | 289,570 | 269,444 | |||||
Net investment in direct financing lease | 13,542 | 13,633 | |||||
Intangible asset | 120,545 | 133,595 | |||||
Other deferred charges | 21,355 | 22,048 | |||||
Total assets | $ | 4,147,349 | $ | 4,050,202 | |||
The accompanying notes are an integral part of the consolidated financial statements. |
(Continued on next page) |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
CLECO CORPORATION |
Consolidated Balance Sheets (Continued) | |||||||
AT DEC. 31, | |||||||
(THOUSANDS) | 2012 | 2011 | |||||
Liabilities and shareholders’ equity | |||||||
Liabilities | |||||||
Current liabilities | |||||||
Long-term debt due within one year | $ | 91,140 | $ | 26,099 | |||
Accounts payable | 102,695 | 127,467 | |||||
Customer deposits | 45,553 | 43,091 | |||||
Provision for rate refund | 4,165 | 7,323 | |||||
Interest accrued | 12,957 | 22,642 | |||||
Energy risk management liabilities, net | — | 5,336 | |||||
Interest rate risk management liability | 2,627 | 3,330 | |||||
Regulatory liabilities - other | 8,255 | 33,019 | |||||
Deferred compensation | 9,626 | 8,302 | |||||
Uncertain tax positions | 686 | 27,239 | |||||
Other current liabilities | 16,926 | 17,154 | |||||
Total current liabilities | 294,630 | 321,002 | |||||
Deferred credits | |||||||
Accumulated deferred federal and state income taxes, net | 762,992 | 649,926 | |||||
Accumulated deferred investment tax credits | 6,252 | 7,432 | |||||
Postretirement benefit obligations | 186,746 | 133,274 | |||||
Regulatory liabilities – other | — | 7,303 | |||||
Restricted storm reserve | 16,285 | 24,880 | |||||
Uncertain tax positions | 2,184 | 23,494 | |||||
Tax credit fund investment, net | 78,840 | 61,507 | |||||
Contingent sale obligations | 8,150 | 29,357 | |||||
Other deferred credits | 34,799 | 35,114 | |||||
Total deferred credits | 1,096,248 | 972,287 | |||||
Long-term debt, net | 1,257,258 | 1,337,056 | |||||
Total liabilities | 2,648,136 | 2,630,345 | |||||
Commitments and Contingencies (Note 14) | |||||||
Shareholders’ equity | |||||||
Common shareholders’ equity | |||||||
Common stock, $1 par value, authorized 100,000,000 shares, issued 60,961,570 and 60,702,342 shares and outstanding 60,355,545 and 60,291,939 shares at December 31, 2012 and 2011, respectively | 60,962 | 60,702 | |||||
Premium on common stock | 416,619 | 409,904 | |||||
Retained earnings | 1,075,074 | 990,605 | |||||
Treasury stock, at cost, 606,025 and 410,403 shares at December 31, 2012 and 2011, respectively | (21,072 | ) | (13,215 | ) | |||
Accumulated other comprehensive loss | (32,370 | ) | (28,139 | ) | |||
Total shareholders’ equity | 1,499,213 | 1,419,857 | |||||
Total liabilities and shareholders’ equity | $ | 4,147,349 | $ | 4,050,202 | |||
The accompanying notes are an integral part of the consolidated financial statements. |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
CLECO CORPORATION |
Consolidated Statements of Cash Flows | |||||||||||
FOR THE YEAR ENDED DEC. 31, | |||||||||||
(THOUSANDS) | 2012 | 2011 | 2010 | ||||||||
Operating activities | |||||||||||
Net income | $ | 163,648 | $ | 195,848 | $ | 255,391 | |||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | 162,430 | 160,765 | 168,363 | ||||||||
Gain on forgiveness of debt | — | — | (129,870 | ) | |||||||
Return on equity investment in investees | — | 58,665 | — | ||||||||
Income from equity investments | — | (62,050 | ) | (38,849 | ) | ||||||
Unearned compensation expense | 6,180 | 7,416 | 5,587 | ||||||||
Allowance for other funds used during construction | (6,711 | ) | (4,947 | ) | (12,413 | ) | |||||
Net deferred income taxes | 19,930 | 23,618 | 54,873 | ||||||||
Deferred fuel costs | (12,222 | ) | 653 | 21,086 | |||||||
Cash surrender value of company-/trust-owned life insurance | (3,300 | ) | 1,687 | (2,759 | ) | ||||||
Changes in assets and liabilities: | |||||||||||
Accounts receivable | (11,543 | ) | (19,146 | ) | (12,503 | ) | |||||
Unbilled revenue | 1,468 | 14,520 | (22,675 | ) | |||||||
Fuel, materials and supplies inventory | (9,539 | ) | 35,442 | (7,465 | ) | ||||||
Prepayments | (59 | ) | 1,520 | (2,316 | ) | ||||||
Accounts payable | (23,016 | ) | (3,618 | ) | 8,140 | ||||||
Customer deposits | 11,167 | 12,693 | 12,313 | ||||||||
Long-term receivable | — | — | 27,976 | ||||||||
Postretirement benefit obligations | 7,485 | (55,529 | ) | 2,975 | |||||||
Regulatory assets and liabilities, net | (31,043 | ) | (43,131 | ) | (88,333 | ) | |||||
Contingent sale obligations | — | 10,900 | 4,714 | ||||||||
Other deferred accounts | (15,695 | ) | 4,305 | (114 | ) | ||||||
Taxes accrued | 9,786 | 5,171 | (34,266 | ) | |||||||
Interest accrued | (6,676 | ) | (38,103 | ) | 2,466 | ||||||
Energy risk management assets and liabilities, net | 38 | 4,646 | 7,885 | ||||||||
Other operating | 777 | (1,264 | ) | (3,307 | ) | ||||||
Net cash provided by operating activities | 263,105 | 310,061 | 216,899 | ||||||||
Investing activities | |||||||||||
Additions to property, plant, and equipment | (245,033 | ) | (202,405 | ) | (306,883 | ) | |||||
Allowance for other funds used during construction | 6,711 | 4,947 | 12,413 | ||||||||
Property, plant, and equipment grants | 16,647 | 2,788 | — | ||||||||
Insurance reimbursement for property loss | 5,454 | 4,482 | — | ||||||||
Return of equity investment in investees | — | 89,654 | — | ||||||||
Equity investment in investees | — | (1,460 | ) | (8,700 | ) | ||||||
Return of equity investment in tax credit fund | 37,652 | 33,430 | — | ||||||||
Contributions to tax credit fund | (59,645 | ) | (43,921 | ) | (35,871 | ) | |||||
Repayment of company-owned life insurance loan | — | — | (14,355 | ) | |||||||
Transfer of cash from restricted accounts | 21,607 | 5,220 | 45,535 | ||||||||
Purchase of restricted investments | (11,966 | ) | — | — | |||||||
Sale of restricted investments | 1,348 | — | — | ||||||||
Other investing | (1,939 | ) | 3,549 | (770 | ) | ||||||
Net cash used in investing activities | (229,164 | ) | (103,716 | ) | (308,631 | ) | |||||
(Continued on next page) |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
CLECO CORPORATION |
Consolidated Statements of Cash Flows (Continued) | |||||||||||
FOR THE YEAR ENDED DEC. 31, | |||||||||||
(THOUSANDS) | 2012 | 2011 | 2010 | ||||||||
Financing activities | |||||||||||
Issuance of short-term debt | — | — | 150,000 | ||||||||
Retirement of short-term debt | — | (150,000 | ) | — | |||||||
Draws on credit facility | 25,000 | 95,000 | 20,000 | ||||||||
Payments on credit facility | (10,000 | ) | (100,000 | ) | (100,000 | ) | |||||
Issuance of long-term debt | 50,000 | 100,000 | 247,245 | ||||||||
Retirement of long-term debt | (74,368 | ) | (12,269 | ) | (120,867 | ) | |||||
Repurchase of long-term debt | — | (132,000 | ) | — | |||||||
Repurchase of common stock | (8,007 | ) | (13,009 | ) | — | ||||||
Settlement of treasury rate lock | — | (18,636 | ) | 5,675 | |||||||
Dividends paid on common stock | (78,844 | ) | (68,023 | ) | (58,988 | ) | |||||
Other financing | (278 | ) | (4,960 | ) | (5,398 | ) | |||||
Net cash (used in) provided by financing activities | (96,497 | ) | (303,897 | ) | 137,667 | ||||||
Net (decrease) increase in cash and cash equivalents | (62,556 | ) | (97,552 | ) | 45,935 | ||||||
Cash and cash equivalents at beginning of period | 93,576 | 191,128 | 145,193 | ||||||||
Cash and cash equivalents at end of period | $ | 31,020 | $ | 93,576 | $ | 191,128 | |||||
Supplementary cash flow information | |||||||||||
Interest paid (net of amount capitalized) | $ | 80,823 | $ | 87,359 | $ | 90,773 | |||||
Interest paid on treasury rate lock settlement | $ | — | $ | 8,128 | $ | — | |||||
Income taxes (refunded) paid, net | $ | (624 | ) | $ | 46,636 | $ | 75,498 | ||||
Supplementary non-cash investing and financing activities | |||||||||||
Accrued additions to property, plant, and equipment | $ | 16,102 | $ | 17,525 | $ | 6,032 | |||||
Issuance of common stock – ESPP | $ | 340 | $ | 328 | $ | 299 | |||||
Non-cash additions to property, plant, and equipment | $ | 21,559 | $ | 7,824 | $ | 152,067 | |||||
Non-cash return of investment | $ | — | $ | — | $ | 152,067 | |||||
Non-cash contribution to subsidiary, net of tax | $ | — | $ | — | $ | 225,732 | |||||
The accompanying notes are an integral part of the consolidated financial statements. |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
Consolidated Statements of Changes in Common Shareholders’ Equity | |||||||||||||||||||||||||||||
COMMON STOCK | PREMIUM ON COMMON STOCK | RETAINED EARNINGS | TREASURY STOCK | ACCUMULATED OTHER COMPREHENSIVE LOSS | TOTAL COMMON EQUITY | ||||||||||||||||||||||||
(THOUSANDS, EXCEPT SHARE AMOUNTS) | SHARES | AMOUNT | SHARES | COST | |||||||||||||||||||||||||
Balances, Dec. 31, 2009 | 60,277,462 | $ | 60,277 | $ | 399,148 | $ | 667,220 | (18,094 | ) | $ | (311 | ) | $ | (11,291 | ) | $ | 1,115,043 | ||||||||||||
Common stock issued for compensatory plans | 262,162 | 263 | 6,129 | — | — | — | — | 6,392 | |||||||||||||||||||||
Issuance of treasury stock | — | — | 36 | — | 4,596 | 37 | — | 73 | |||||||||||||||||||||
Dividend requirements, preferred stock, net | — | — | — | (46 | ) | — | — | — | (46 | ) | |||||||||||||||||||
Dividends on common stock, $0.975 per share | — | — | — | (59,328 | ) | — | — | — | (59,328 | ) | |||||||||||||||||||
Net income | — | — | — | 255,391 | — | — | — | 255,391 | |||||||||||||||||||||
Other comprehensive loss, net of tax | — | — | — | — | — | — | (347 | ) | (347 | ) | |||||||||||||||||||
Balances, Dec. 31, 2010 | 60,539,624 | $ | 60,540 | $ | 405,313 | $ | 863,237 | (13,498 | ) | $ | (274 | ) | $ | (11,638 | ) | $ | 1,317,178 | ||||||||||||
Common stock issued for compensatory plans | 162,718 | 162 | 4,523 | — | — | — | — | 4,685 | |||||||||||||||||||||
Issuance of treasury stock | — | — | 68 | — | 3,095 | 68 | — | 136 | |||||||||||||||||||||
Repurchase of treasury stock | — | — | — | — | (400,000 | ) | (13,009 | ) | — | (13,009 | ) | ||||||||||||||||||
Dividend requirements, preferred stock, net | — | — | — | (26 | ) | — | — | — | (26 | ) | |||||||||||||||||||
Stock redemption costs, preferred stock, net | — | — | — | (112 | ) | — | — | — | (112 | ) | |||||||||||||||||||
Dividends on common stock, $1.1225 per share | — | — | — | (68,342 | ) | — | — | — | (68,342 | ) | |||||||||||||||||||
Net income | — | — | — | 195,848 | — | — | — | 195,848 | |||||||||||||||||||||
Other comprehensive loss, net of tax | — | — | — | — | — | — | (16,501 | ) | (16,501 | ) | |||||||||||||||||||
Balances, Dec. 31, 2011 | 60,702,342 | $ | 60,702 | $ | 409,904 | $ | 990,605 | (410,403 | ) | $ | (13,215 | ) | $ | (28,139 | ) | $ | 1,419,857 | ||||||||||||
Common stock issued for compensatory plans | 259,228 | 260 | 6,701 | — | — | — | — | 6,961 | |||||||||||||||||||||
Issuance of treasury stock | — | — | 14 | — | 4,378 | 150 | — | 164 | |||||||||||||||||||||
Repurchase of treasury stock | — | — | — | — | (200,000 | ) | (8,007 | ) | — | (8,007 | ) | ||||||||||||||||||
Dividends on common stock, $1.30 per share | — | — | — | (79,179 | ) | — | — | — | (79,179 | ) | |||||||||||||||||||
Net income | — | — | — | 163,648 | — | — | — | 163,648 | |||||||||||||||||||||
Other comprehensive loss, net of tax | — | — | — | — | — | — | (4,231 | ) | (4,231 | ) | |||||||||||||||||||
Balances, Dec. 31, 2012 | 60,961,570 | $ | 60,962 | $ | 416,619 | $ | 1,075,074 | (606,025 | ) | $ | (21,072 | ) | $ | (32,370 | ) | $ | 1,499,213 | ||||||||||||
The accompanying notes are an integral part of the consolidated financial statements. |
Report of Independent Registered Public Accounting Firm |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
CLECO POWER |
Consolidated Statements of Income | |||||||||||
FOR THE YEAR ENDED DEC. 31, | |||||||||||
(THOUSANDS) | 2012 | 2011 | 2010 | ||||||||
Operating revenue | |||||||||||
Electric operations | $ | 944,169 | $ | 1,051,956 | $ | 1,086,102 | |||||
Other operations | 48,156 | 50,948 | 42,578 | ||||||||
Affiliate revenue | 1,372 | 1,389 | 1,371 | ||||||||
Gross operating revenue | 993,697 | 1,104,293 | 1,130,051 | ||||||||
Electric customer credits | (630 | ) | (6,811 | ) | (9,596 | ) | |||||
Operating revenue, net | 993,067 | 1,097,482 | 1,120,455 | ||||||||
Operating expenses | |||||||||||
Fuel used for electric generation | 280,249 | 383,254 | 363,550 | ||||||||
Power purchased for utility customers | 78,683 | 70,462 | 144,152 | ||||||||
Other operations | 115,072 | 116,988 | 109,678 | ||||||||
Maintenance | 72,386 | 74,603 | 72,048 | ||||||||
Depreciation | 125,486 | 115,634 | 107,966 | ||||||||
Taxes other than income taxes | 33,999 | 32,157 | 32,744 | ||||||||
(Gain) loss on sale of assets | (2 | ) | (9 | ) | 47 | ||||||
Total operating expenses | 705,873 | 793,089 | 830,185 | ||||||||
Operating income | 287,194 | 304,393 | 290,270 | ||||||||
Interest income | 333 | 630 | 379 | ||||||||
Allowance for other funds used during construction | 6,711 | 4,947 | 12,413 | ||||||||
Other income | 5,847 | 3,163 | 2,007 | ||||||||
Other expense | (4,602 | ) | (3,799 | ) | (3,826 | ) | |||||
Interest charges | |||||||||||
Interest charges, including amortization of debt expense, premium, and discount, net | 82,794 | 98,877 | 83,294 | ||||||||
Allowance for borrowed funds used during construction | (2,292 | ) | (1,787 | ) | (4,563 | ) | |||||
Total interest charges | 80,502 | 97,090 | 78,731 | ||||||||
Income before income taxes | 214,981 | 212,244 | 222,512 | ||||||||
Federal and state income taxes | 68,133 | 69,409 | 75,107 | ||||||||
Net income | $ | 146,848 | $ | 142,835 | $ | 147,405 | |||||
The accompanying notes are an integral part of the consolidated financial statements. |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
CLECO POWER |
Consolidated Statements of Comprehensive Income | |||||||||||
FOR THE YEAR ENDED DEC. 31, | |||||||||||
(THOUSANDS) | 2012 | 2011 | 2010 | ||||||||
Net income | $ | 146,848 | $ | 142,835 | $ | 147,405 | |||||
Other comprehensive loss, net of tax: | |||||||||||
Amortization of postretirement benefit net loss (gain) (net of tax expense of $618 in 2012 and $303 in 2011 and tax benefit of $239 in 2010) | 1,160 | 692 | (381 | ) | |||||||
Postretirement benefit loss incurred during the year (net of tax benefit of $2,054 in 2012 and $266 in 2011 and tax expense of $725 in 2010) | (3,285 | ) | (595 | ) | (2,607 | ) | |||||
Cash flow hedges: | |||||||||||
Net derivative gain (loss) (net of tax expense of $271 in 2012 and $1,823 in 2010, and tax benefit of $9,873 in 2011) | 433 | (15,788 | ) | 2,916 | |||||||
Reclassification of net loss (gain) to interest charges (net of tax expense of $23 in 2012 and $197 in 2010, and tax benefit of $129 in 2011) | 37 | (205 | ) | 315 | |||||||
Reclassification of ineffectiveness to regulatory asset (net of tax expense of $1,166 in 2012) | 1,864 | — | — | ||||||||
Reclassification of net loss to other expense (net of tax expense of $434 in 2010) | — | — | 694 | ||||||||
Total other comprehensive income (loss), net of tax | 209 | (15,896 | ) | 937 | |||||||
Comprehensive income, net of tax | $ | 147,057 | $ | 126,939 | $ | 148,342 | |||||
The accompanying notes are an integral part of the consolidated financial statements. |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
CLECO POWER |
Consolidated Balance Sheets | |||||||
AT DEC. 31, | |||||||
(THOUSANDS) | 2012 | 2011 | |||||
Assets | |||||||
Utility plant and equipment | |||||||
Property, plant, and equipment | $ | 3,871,940 | $ | 3,759,541 | |||
Accumulated depreciation | (1,227,078 | ) | (1,153,004 | ) | |||
Net property, plant, and equipment | 2,644,862 | 2,606,537 | |||||
Construction work in progress | 176,584 | 97,595 | |||||
Total utility plant, net | 2,821,446 | 2,704,132 | |||||
Current assets | |||||||
Cash and cash equivalents | 23,368 | 67,458 | |||||
Restricted cash and cash equivalents | 8,781 | 8,761 | |||||
Customer accounts receivable (less allowance for doubtful accounts of $1,105 in 2012 and $1,128 in 2011) | 39,293 | 37,813 | |||||
Accounts receivable – affiliate | 2,991 | 2,405 | |||||
Other accounts receivable (less allowance for doubtful accounts of $0 in 2012 and $8 in 2011) | 37,562 | 35,618 | |||||
Taxes receivable, net | — | 3,197 | |||||
Unbilled revenue | 28,662 | 30,129 | |||||
Fuel inventory, at average cost | 46,867 | 41,845 | |||||
Material and supplies inventory, at average cost | 55,472 | 51,132 | |||||
Accumulated deferred federal and state income taxes, net | 87,286 | 19,829 | |||||
Accumulated deferred fuel | 7,833 | 2,136 | |||||
Cash surrender value of company-owned life insurance policies | 20,842 | 20,433 | |||||
Prepayments | 4,415 | 4,155 | |||||
Regulatory assets – other | 11,095 | 13,028 | |||||
Other current assets | 371 | 375 | |||||
Total current assets | 374,838 | 338,314 | |||||
Equity investment in investee | 14,532 | 14,532 | |||||
Prepayments | 4,261 | 4,770 | |||||
Restricted cash and cash equivalents, less current portion | 5,343 | 26,970 | |||||
Restricted investments | 10,852 | — | |||||
Regulatory assets and liabilities – deferred taxes, net | 210,445 | 214,421 | |||||
Regulatory assets – other | 289,570 | 269,444 | |||||
Intangible asset | 120,545 | 133,595 | |||||
Other deferred charges | 19,897 | 20,293 | |||||
Total assets | $ | 3,871,729 | $ | 3,726,471 | |||
(Continued on next page) |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
CLECO POWER |
Consolidated Balance Sheets (Continued) | |||||||
AT DEC. 31, | |||||||
(THOUSANDS) | 2012 | 2011 | |||||
Liabilities and member’s equity | |||||||
Member’s equity | $ | 1,319,919 | $ | 1,230,862 | |||
Long-term debt, net | 1,232,258 | 1,327,056 | |||||
Total capitalization | 2,552,177 | 2,557,918 | |||||
Current liabilities | |||||||
Long-term debt due within one year | 91,140 | 26,099 | |||||
Accounts payable | 89,782 | 113,250 | |||||
Accounts payable – affiliate | 10,097 | 9,311 | |||||
Customer deposits | 45,553 | 43,091 | |||||
Provision for rate refund | 4,165 | 7,323 | |||||
Taxes payable | 1,328 | — | |||||
Interest accrued | 13,893 | 22,540 | |||||
Energy risk management liabilities, net | — | 5,336 | |||||
Interest rate risk management liability | 2,627 | 3,330 | |||||
Regulatory liabilities – other | 8,255 | 33,019 | |||||
Uncertain tax positions | — | 27,465 | |||||
Other current liabilities | 11,746 | 11,193 | |||||
Total current liabilities | 278,586 | 301,957 | |||||
Commitments and Contingencies (Note 14) | |||||||
Deferred credits | |||||||
Accumulated deferred federal and state income taxes, net | 845,769 | 675,835 | |||||
Accumulated deferred investment tax credits | 6,252 | 7,432 | |||||
Postretirement benefit obligations | 137,637 | 94,147 | |||||
Regulatory liabilities – other | — | 7,303 | |||||
Restricted storm reserve | 16,285 | 24,880 | |||||
Uncertain tax positions | 222 | 19,906 | |||||
Other deferred credits | 34,801 | 37,093 | |||||
Total deferred credits | 1,040,966 | 866,596 | |||||
Total liabilities and member’s equity | $ | 3,871,729 | $ | 3,726,471 | |||
The accompanying notes are an integral part of the consolidated financial statements. |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
CLECO POWER |
Consolidated Statements of Cash Flows | |||||||||||
FOR THE YEAR ENDED DEC. 31, | |||||||||||
(THOUSANDS) | 2012 | 2011 | 2010 | ||||||||
Operating activities | |||||||||||
Net income | $ | 146,848 | $ | 142,835 | $ | 147,405 | |||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | 137,053 | 127,109 | 119,940 | ||||||||
Unearned compensation expense | 1,587 | 1,796 | 1,846 | ||||||||
Allowance for other funds used during construction | (6,711 | ) | (4,947 | ) | (12,413 | ) | |||||
Net deferred income taxes | 57,364 | 45,608 | 34,555 | ||||||||
Deferred fuel costs | (12,222 | ) | 653 | 21,086 | |||||||
Cash surrender value of company-owned life insurance | (409 | ) | (383 | ) | (345 | ) | |||||
Changes in assets and liabilities: | |||||||||||
Accounts receivable | (12,290 | ) | (18,206 | ) | (12,608 | ) | |||||
Unbilled revenue | 1,468 | 14,520 | (22,675 | ) | |||||||
Fuel, materials and supplies inventory | (9,361 | ) | 35,673 | (7,202 | ) | ||||||
Prepayments | 249 | 1,294 | (2,016 | ) | |||||||
Accounts payable | (22,874 | ) | (4,498 | ) | 8,907 | ||||||
Accounts and notes payable, affiliate | (122 | ) | 600 | (18,598 | ) | ||||||
Customer deposits | 11,167 | 12,693 | 12,313 | ||||||||
Postretirement benefit obligations | 5,947 | (57,531 | ) | 647 | |||||||
Regulatory assets and liabilities, net | (31,043 | ) | (43,131 | ) | (88,333 | ) | |||||
Other deferred accounts | (19,989 | ) | (2,399 | ) | (10,009 | ) | |||||
Taxes accrued | 4,503 | 926 | (7,561 | ) | |||||||
Interest accrued | (5,431 | ) | (5,609 | ) | 1,594 | ||||||
Energy risk management assets and liabilities, net | 38 | 4,646 | 7,885 | ||||||||
Other operating | (1,672 | ) | 109 | (1,933 | ) | ||||||
Net cash provided by operating activities | 244,100 | 251,758 | 172,485 | ||||||||
Investing activities | |||||||||||
Additions to property, plant, and equipment | (238,943 | ) | (184,615 | ) | (150,937 | ) | |||||
Allowance for other funds used during construction | 6,711 | 4,947 | 12,413 | ||||||||
Property, plant, and equipment grants | 16,647 | 2,788 | — | ||||||||
Equity investment in investees | — | (1,460 | ) | (200 | ) | ||||||
Repayment of company-owned life insurance loan | — | — | (14,355 | ) | |||||||
Transfer of cash from restricted accounts | 21,607 | 5,220 | 15,404 | ||||||||
Purchase of restricted investments | (11,966 | ) | — | — | |||||||
Sale of restricted investments | 1,348 | — | — | ||||||||
Other investing | 1,039 | 886 | 1,277 | ||||||||
Net cash used in investing activities | (203,557 | ) | (172,234 | ) | (136,398 | ) | |||||
(Continued on next page) |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
CLECO POWER |
Consolidated Statements of Cash Flows (Continued) | |||||||||||
FOR THE YEAR ENDED DECEMBER 31, | |||||||||||
(THOUSANDS) | 2012 | 2011 | 2010 | ||||||||
Financing activities | |||||||||||
Draws on credit facility | — | 60,000 | — | ||||||||
Payments on credit facility | — | (60,000 | ) | — | |||||||
Issuance of long-term debt | 50,000 | 100,000 | 247,245 | ||||||||
Retirement of long-term debt | (74,368 | ) | (12,269 | ) | (85,704 | ) | |||||
Repurchase of long-term debt | — | (132,000 | ) | — | |||||||
Settlement of treasury rate lock | — | (18,636 | ) | 5,675 | |||||||
Distribution to parent | (58,000 | ) | (130,000 | ) | (150,000 | ) | |||||
Other financing | (2,265 | ) | (4,073 | ) | (6,504 | ) | |||||
Net cash (used in) provided by financing activities | (84,633 | ) | (196,978 | ) | 10,712 | ||||||
Net (decrease) increase in cash and cash equivalents | (44,090 | ) | (117,454 | ) | 46,799 | ||||||
Cash and cash equivalents at beginning of period | 67,458 | 184,912 | 138,113 | ||||||||
Cash and cash equivalents at end of period | $ | 23,368 | $ | 67,458 | $ | 184,912 | |||||
Supplementary cash flow information | |||||||||||
Interest paid (net of amount capitalized) | $ | 80,729 | $ | 85,607 | $ | 79,044 | |||||
Interest paid on treasury rate lock settlement | $ | — | $ | 8,128 | $ | — | |||||
Income taxes (refunded) paid, net | $ | (711 | ) | $ | 2,233 | $ | (5,425 | ) | |||
Supplementary non-cash investing and financing activities | |||||||||||
Accrued additions to property, plant, and equipment | $ | 15,547 | $ | 21,007 | $ | 5,697 | |||||
Non-cash additions to property, plant, and equipment | $ | 21,559 | $ | 7,824 | $ | 304,134 | |||||
The accompanying notes are an integral part of the consolidated financial statements. |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
CLECO POWER |
Consolidated Statements of Changes in Member’s Equity | |||||||||||
(THOUSANDS) | MEMBER’S EQUITY | ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME | TOTAL MEMBER’S EQUITY | ||||||||
Balances, Dec. 31, 2009 | $ | 1,015,520 | $ | (5,671 | ) | $ | 1,009,849 | ||||
Other comprehensive income, net of tax | — | 937 | 937 | ||||||||
Distribution to parent | (150,000 | ) | — | (150,000 | ) | ||||||
Non-cash property donation, net of tax | 225,732 | — | 225,732 | ||||||||
Net income | 147,405 | — | 147,405 | ||||||||
Balances, Dec. 31, 2010 | 1,238,657 | (4,734 | ) | 1,233,923 | |||||||
Other comprehensive loss, net of tax | — | (15,896 | ) | (15,896 | ) | ||||||
Distribution to parent | (130,000 | ) | — | (130,000 | ) | ||||||
Net income | 142,835 | — | 142,835 | ||||||||
Balances, Dec. 31, 2011 | 1,251,492 | (20,630 | ) | 1,230,862 | |||||||
Other comprehensive income, net of tax | — | 209 | 209 | ||||||||
Distribution to parent | (58,000 | ) | — | (58,000 | ) | ||||||
Net income | 146,848 | — | 146,848 | ||||||||
Balances, Dec. 31, 2012 | $ | 1,340,340 | $ | (20,421 | ) | $ | 1,319,919 | ||||
The accompanying notes are an integral part of the consolidated financial statements. |
Index to Applicable Notes to the Financial Statements of Registrants |
Note 1 | The Company | Cleco Corporation and Cleco Power |
Note 2 | Summary of Significant Accounting Policies | Cleco Corporation and Cleco Power |
Note 3 | Regulatory Assets and Liabilities | Cleco Corporation and Cleco Power |
Note 4 | Jointly Owned Generation Units | Cleco Corporation and Cleco Power |
Note 5 | Fair Value Accounting | Cleco Corporation and Cleco Power |
Note 6 | Debt | Cleco Corporation and Cleco Power |
Note 7 | Common and Preferred Stock | Cleco Corporation and Cleco Power |
Note 8 | Pension Plan and Employee Benefits | Cleco Corporation and Cleco Power |
Note 9 | Income Taxes | Cleco Corporation and Cleco Power |
Note 10 | Disclosures about Segments | Cleco Corporation |
Note 11 | Electric Customer Credits | Cleco Corporation and Cleco Power |
Note 12 | Variable Interest Entities | Cleco Corporation and Cleco Power |
Note 13 | Operating Leases | Cleco Corporation and Cleco Power |
Note 14 | Litigation, Other Commitments and Contingencies, and Disclosures about Guarantees | Cleco Corporation and Cleco Power |
Note 15 | Affiliate Transactions | Cleco Corporation and Cleco Power |
Note 16 | Intangible Asset | Cleco Corporation and Cleco Power |
Note 17 | Evangeline Transactions | Cleco Corporation |
Note 18 | Acadia Transactions | Cleco Corporation and Cleco Power |
Note 19 | Storm Restoration | Cleco Corporation and Cleco Power |
Note 20 | Accumulated Other Comprehensive Loss | Cleco Corporation and Cleco Power |
Note 21 | Miscellaneous Financial Information (Unaudited) | Cleco Corporation and Cleco Power |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
Notes to the Financial Statements |
Note 1 — The Company |
• | Cleco Power, a regulated electric utility subsidiary, which owns 9 generating units with a total nameplate capacity of 2,565 MW and serves approximately 283,000 customers in Louisiana through its retail business and 10 communities across Louisiana and Mississippi through wholesale power contracts. Cleco Power also owns a 50% interest in an entity that owns lignite reserves. Cleco Power owns all of the outstanding membership interests in Cleco Katrina/Rita, a special purpose entity, that is consolidated with Cleco Power in its financial statements. |
• | Midstream is a wholesale energy subsidiary regulated by FERC which owns Evangeline (which owns and operates Coughlin). |
• | Cleco Corporation’s other operations consist of a holding company, two transmission interconnection facility subsidiaries, a shared services subsidiary, and an investment subsidiary. |
Note 2 — Summary of Significant Accounting Policies |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
Cleco | |||||||||||||||
FOR THE YEAR ENDED | |||||||||||||||
2010 | 2011 | ||||||||||||||
(THOUSANDS) | AS REPORTED | AS ADJUSTED | AS REPORTED | AS ADJUSTED | |||||||||||
Accounts receivable | $ | (16,156 | ) | $ | (12,503 | ) | $ | (15,798 | ) | $ | (19,146 | ) | |||
Other deferred accounts | $ | 1,813 | $ | (114 | ) | $ | (1,084 | ) | $ | 4,305 | |||||
Net cash provided by operating activities | $ | 215,173 | * | $ | 216,899 | $ | 308,020 | $ | 310,061 | ||||||
Additions to property, plant, and equipment | $ | (305,157 | )* | $ | (306,883 | ) | $ | (200,364 | )** | $ | (202,405 | ) | |||
Net cash used in investing activities | $ | (306,905 | )* | $ | (308,631 | ) | $ | (101,675 | ) | $ | (103,716 | ) | |||
Net increase in cash and cash equivalents | $ | 45,935 | $ | 45,935 | $ | (97,552 | ) | $ | (97,552 | ) | |||||
Cash and cash equivalents at the beginning of the period | $ | 145,193 | $ | 145,193 | $ | 191,128 | $ | 191,128 | |||||||
Cash and cash equivalents at the end of the period | $ | 191,128 | $ | 191,128 | $ | 93,576 | $ | 93,576 | |||||||
* These amounts were previously revised in the Registrants’ Combined Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2011. | |||||||||||||||
**These amounts differ with the amounts previously reported in the Registrants’ Combined Annual Report on Form 10-K for the fiscal year ended December 31, 2011, due to Insurance reimbursement for property loss being shown separately from Additions to property, plant, and equipment in order to conform to the presentation used in the 2012 financial statements. |
Cleco Power | |||||||||||||||
FOR THE YEAR ENDED | |||||||||||||||
2010 | 2011 | ||||||||||||||
(THOUSANDS) | AS REPORTED | AS ADJUSTED | AS REPORTED | AS ADJUSTED | |||||||||||
Accounts receivable | $ | (16,261 | ) | $ | (12,608 | ) | $ | (14,858 | ) | $ | (18,206 | ) | |||
Other deferred accounts | $ | (8,082 | ) | $ | (10,009 | ) | $ | (7,788 | ) | $ | (2,399 | ) | |||
Net cash provided by operating activities | $ | 170,759 | * | $ | 172,485 | $ | 249,717 | $ | 251,758 | ||||||
Additions to property, plant, and equipment | $ | (149,211 | )* | $ | (150,937 | ) | $ | (182,574 | ) | $ | (184,615 | ) | |||
Net cash used in investing activities | $ | (134,672 | )* | $ | (136,398 | ) | $ | (170,193 | ) | $ | (172,234 | ) | |||
Net increase in cash and cash equivalents | $ | 46,799 | $ | 46,799 | $ | (117,454 | ) | $ | (117,454 | ) | |||||
Cash and cash equivalents at the beginning of the period | $ | 138,113 | $ | 138,113 | $ | 184,912 | $ | 184,912 | |||||||
Cash and cash equivalents at the end of the period | $ | 184,912 | $ | 184,912 | $ | 67,458 | $ | 67,458 | |||||||
* These amounts were previously revised in the Registrants’ Combined Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2011. |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
YEARS | |
Utility plant | 5-58 |
Other | 5-44 |
AT DEC. 31, | |||||||
(THOUSANDS) | 2012 | 2011 | |||||
Regulated utility plants | $ | 3,871,940 | $ | 3,759,541 | |||
Other | 268,254 | 264,114 | |||||
Total property, plant, and equipment | 4,140,194 | 4,023,655 | |||||
Accumulated depreciation | (1,311,273 | ) | (1,230,783 | ) | |||
Net property, plant, and equipment | $ | 2,828,921 | $ | 2,792,872 |
AT DEC. 31, | |||||||
(THOUSANDS) | 2012 | 2011 | |||||
Acadia Unit 1 | |||||||
Plant acquisition adjustment | $ | 95,578 | $ | 95,578 | |||
Less: accumulated amortization | 9,018 | 5,836 | |||||
Net plant acquisition adjustment | $ | 86,560 | $ | 89,742 | |||
Teche | |||||||
Plant acquisition adjustment | $ | 5,359 | $ | 5,359 | |||
Less: accumulated amortization | 3,979 | 3,724 | |||||
Net plant acquisition adjustment | $ | 1,380 | $ | 1,635 |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
• | both counterparties use the respective transmission facilities to move electricity from its power plants to the regional transmission grid, |
• | neither counterparty has another avenue to move electricity from its respective power plants to the regional transmission grid, |
• | the stream of payments was approved by the FERC through respective rate orders, and |
• | both counterparties serve retail and wholesale customers in their respective service territories under LPSC oversight that allows recovery of prudent costs, of which, the stream of payments under the direct financing leases appear to be prudent. |
AT DEC. 31, | |||||||
(THOUSANDS) | 2012 | 2011 | |||||
Diversified Lands’ mitigation escrow | $ | 97 | $ | 97 | |||
Cleco Katrina/Rita’s storm recovery bonds | 8,781 | 8,761 | |||||
Cleco Power’s future storm restoration costs | 5,343 | 24,876 | |||||
Cleco Power’s renewable energy grant | — | 381 | |||||
Cleco Power’s NOx allowance escrow | — | 1,713 | |||||
Total restricted cash and cash equivalents | $ | 14,221 | $ | 35,828 |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
FOR THE YEAR ENDED DEC. 31, | ||||||||||||||||||||||||||||||||
2012 | 2011 | 2010 | ||||||||||||||||||||||||||||||
(THOUSANDS, EXCEPT SHARES AND PER SHARE AMOUNTS) | INCOME | SHARES | PER SHARE AMOUNT | INCOME | SHARES | PER SHARE AMOUNT | INCOME | SHARES | PER SHARE AMOUNT | |||||||||||||||||||||||
Income from continuing operations | $ | 163,648 | $ | 195,848 | $ | 255,391 | ||||||||||||||||||||||||||
Deduct: non-participating stock dividends (4.5% preferred stock) | — | 26 | 46 | |||||||||||||||||||||||||||||
Deduct: non-participating stock redemption costs (4.5% preferred stock) | — | 112 | — | |||||||||||||||||||||||||||||
Basic net income applicable to common stock | $ | 163,648 | 60,370,588 | $ | 2.71 | $ | 195,710 | 60,488,740 | $ | 3.24 | $ | 255,345 | 60,431,142 | $ | 4.23 | |||||||||||||||||
Effect of dilutive securities | ||||||||||||||||||||||||||||||||
Add: stock option grants | 4,154 | 20,647 | 32,080 | |||||||||||||||||||||||||||||
Add: restricted stock (LTICP) | 253,387 | 324,177 | 291,367 | |||||||||||||||||||||||||||||
Diluted net income applicable to common stock | $ | 163,648 | 60,628,129 | $ | 2.70 | $ | 195,710 | 60,833,564 | $ | 3.22 | $ | 255,345 | 60,754,589 | $ | 4.20 |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
Note 3 — Regulatory Assets and Liabilities |
AT DEC. 31, | REMAINING RECOVERY PERIOD | RETURN ON EQUITY | |||||||||
(THOUSANDS) | 2012 | 2011 | |||||||||
Total federal regulatory asset — income taxes | $ | 24,222 | $ | 34,127 | N/A | ||||||
Total state regulatory asset — income taxes | 57,480 | 51,720 | N/A | ||||||||
AFUDC | 132,267 | 132,802 | N/A | ||||||||
Total investment tax credit | (3,524 | ) | (4,228 | ) | N/A | ||||||
Total regulatory assets — deferred taxes, net | 210,445 | 214,421 | |||||||||
Mining costs | 16,569 | 19,117 | 6.5 yrs. | No | |||||||
Interest costs | 6,304 | 6,667 | 27 yrs. | No | |||||||
Asset removal costs | 867 | 829 | 37 yrs. | No | |||||||
Postretirement plan costs | 156,458 | 132,556 | N/A | No | |||||||
Tree trimming costs | 5,656 | 8,371 | 2 yrs. | Yes | |||||||
Training costs | 7,330 | 7,486 | 47 yrs. | Yes | |||||||
Storm surcredits, net | 6,211 | 9,254 | 10 yrs. | No | |||||||
Construction carrying costs | 4,697 | 10,883 | 0.75 yrs. | No | |||||||
Lignite mining agreement contingency | 3,781 | 3,781 | N/A | No | |||||||
Power purchase agreement capacity costs | 6,217 | — | 2.5 yrs. | Yes | |||||||
AMI deferred revenue requirement | 1,483 | — | 15 yrs. | Yes | |||||||
AFUDC equity gross-up | 74,158 | 74,346 | N/A | No | |||||||
Rate case costs | 581 | 1,117 | 1 yr. | No | |||||||
Acadia Unit 1 acquisition costs | 2,865 | 2,971 | 27 yrs. | No | |||||||
IRP/RFP costs | 39 | 508 | — | No | |||||||
AMI pilot costs | 22 | 153 | 0.5 yrs. | No | |||||||
Financing costs | 7,282 | 4,433 | 29 yrs. | No | |||||||
Biomass costs | 145 | — | 5 yrs. | No | |||||||
Total regulatory assets - other | 300,665 | 282,472 | |||||||||
Construction carrying costs | (8,255 | ) | (40,322 | ) | 0.6 yrs. | No | |||||
Fuel and purchased power | 7,833 | 2,136 | N/A | No | |||||||
Total regulatory assets, net | $ | 510,688 | $ | 458,707 |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
Note 4 — Jointly Owned Generation Units |
AT DEC. 31, 2012 | |||||||||||
(DOLLAR AMOUNTS IN THOUSANDS) | RODEMACHER UNIT #2 | DOLET HILLS | TOTAL | ||||||||
Utility plant in service | $ | 92,011 | $ | 305,010 | $ | 397,021 | |||||
Accumulated depreciation | $ | 69,600 | $ | 199,138 | $ | 268,738 | |||||
Ownership | 30 | % | 50 | % | |||||||
Nameplate capacity (MW) | 523 | 650 | |||||||||
Cleco Power’s ownership interest (MW) | 157 | 325 |
Note 5 — Fair Value Accounting |
Cleco | |||||||||||||||
AT DEC. 31, | |||||||||||||||
2012 | 2011 | ||||||||||||||
(THOUSANDS) | CARRYING VALUE | ESTIMATED FAIR VALUE | CARRYING VALUE | ESTIMATED FAIR VALUE | |||||||||||
Financial instruments not marked-to-market | |||||||||||||||
Cash and cash equivalents | $ | 31,020 | $ | 31,020 | $ | 93,576 | $ | 93,576 | |||||||
Restricted cash and cash equivalents | $ | 14,221 | $ | 14,221 | $ | 35,828 | $ | 35,828 | |||||||
Long-term debt, excluding debt issuance costs | $ | 1,345,198 | $ | 1,579,674 | $ | 1,354,567 | $ | 1,542,867 |
Cleco Power | |||||||||||||||
AT DEC. 31, | |||||||||||||||
2012 | 2011 | ||||||||||||||
(THOUSANDS) | CARRYING VALUE | ESTIMATED FAIR VALUE | CARRYING VALUE | ESTIMATED FAIR VALUE | |||||||||||
Financial instruments not marked-to-market | |||||||||||||||
Cash and cash equivalents | $ | 23,368 | $ | 23,368 | $ | 67,458 | $ | 67,458 | |||||||
Restricted cash and cash equivalents | $ | 14,124 | $ | 14,124 | $ | 35,731 | $ | 35,731 | |||||||
Long-term debt, excluding debt issuance costs | $ | 1,320,198 | $ | 1,554,674 | $ | 1,344,567 | $ | 1,532,867 |
• | U.S. treasury securities, |
• | U.S. federal agency and U.S. government-sponsored entity debt, |
• | Tax-exempt short-term securities of a state, territory, or a possession of the U.S., |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
• | Certificates of deposit, banker’s acceptances and time deposits, |
• | Corporate notes and bonds, fixed or floating rate, and covered bonds, |
• | Commercial paper, |
• | Asset backed securities with a minimum long-term rating of AA by Standard & Poor’s and Aaa by Moody’s, |
• | U.S. government mortgage securities with a short average life with a minimum long-term rating of AA by Standard & Poor’s and Aaa by Moody’s, |
• | Repurchase agreements with the primary government securities dealers or financial institutions in which Cleco deposits and/or concentrates cash, and |
• | Money market funds which must have at least $15.0 billion in assets under management; must have been in existence for not less than two years; must have a minimum rating of AAA by Standard & Poor’s and Aaa by Moody’s and must be compliant with the SEC rule 2a-7 which restricts the quality, maturity, and diversity of investments by money market funds. |
AT DEC. 31, 2012 | ||||||||||||||||
(THOUSANDS) | AMORTIZED COST | TOTAL UNREALIZED GAINS (1) | TOTAL UNREALIZED LOSSES (1) | FAIR VALUE | ||||||||||||
Municipal bonds | $ | 10,228 | $ | 3 | $ | 28 | $ | 10,203 | ||||||||
Commercial paper | 649 | — | — | 649 | ||||||||||||
Total available-for-sale securities | $ | 10,877 | $ | 3 | $ | 28 | $ | 10,852 |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
LESS THAN 12 MONTHS | 12 MONTHS OR LONGER | ||||||||||||||
(THOUSANDS) | AGGREGATE UNREALIZED LOSS | AGGREGATE RELATED FAIR VALUE | AGGREGATE UNREALIZED LOSS | AGGREGATE RELATED FAIR VALUE | |||||||||||
Municipal bonds | $ | 28 | $ | 8,359 | $ | — | $ | — |
(THOUSANDS) | AT DEC. 31, 2012 | ||
One year or less | $ | 6,204 | |
Over one year through five years | 4,648 | ||
Total fair value | $ | 10,852 |
Cleco | |||||||||||||||||||||||||||||||
CLECO CONSOLIDATED FAIR VALUE MEASUREMENTS AT REPORTING DATE USING: | |||||||||||||||||||||||||||||||
(THOUSANDS) | AT DEC. 31, 2012 | QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) | SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) | SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | AT DEC. 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 | $ | 39,489 | $ | — | $ | 39,489 | $ | — | $ | 118,951 | $ | — | $ | 118,951 | $ | — | |||||||||||||||
Municipal bonds | 10,203 | — | 10,203 | — | — | — | — | — | |||||||||||||||||||||||
Total assets | $ | 49,692 | $ | — | $ | 49,692 | $ | — | $ | 118,951 | $ | — | $ | 118,951 | $ | — | |||||||||||||||
Liability Description | |||||||||||||||||||||||||||||||
Energy market derivatives | $ | — | $ | — | $ | — | $ | — | $ | 5,336 | $ | — | $ | 5,336 | $ | — | |||||||||||||||
Interest rate derivatives | 2,627 | — | 2,627 | — | 3,330 | — | 3,330 | — | |||||||||||||||||||||||
Long-term debt | 1,579,674 | 1,579,674 | 1,542,867 | 1,542,867 | |||||||||||||||||||||||||||
Total liabilities | $ | 1,582,301 | $ | — | $ | 1,582,301 | $ | — | $ | 1,551,533 | $ | — | $ | 1,551,533 | $ | — |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
Cleco Power | |||||||||||||||||||||||||||||||
CLECO POWER FAIR VALUE MEASUREMENTS AT REPORTING DATE USING: | |||||||||||||||||||||||||||||||
(THOUSANDS) | AT DEC. 31, 2012 | QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) | SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) | SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | AT DEC. 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 | $ | 33,292 | $ | — | $ | 33,292 | $ | — | $ | 99,955 | $ | — | $ | 99,955 | $ | — | |||||||||||||||
Municipal bonds | 10,203 | — | 10,203 | — | — | — | — | — | |||||||||||||||||||||||
Total assets | $ | 43,495 | $ | — | $ | 43,495 | $ | — | $ | 99,955 | $ | — | $ | 99,955 | $ | — | |||||||||||||||
Liability Description | |||||||||||||||||||||||||||||||
Energy market derivatives | $ | — | $ | — | $ | — | $ | — | $ | 5,336 | $ | — | $ | 5,336 | $ | — | |||||||||||||||
Interest rate derivatives | 2,627 | — | 2,627 | — | 3,330 | — | 3,330 | — | |||||||||||||||||||||||
Long-term debt | 1,554,674 | 1,554,674 | 1,532,867 | 1,532,867 | |||||||||||||||||||||||||||
Total liabilities | $ | 1,557,301 | $ | — | $ | 1,557,301 | $ | — | $ | 1,541,533 | $ | — | $ | 1,541,533 | $ | — |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS | |||||||||
LIABILITY DERIVATIVES | |||||||||
(THOUSANDS) | BALANCE SHEET LINE ITEM | AT DEC. 31, 2012 | AT DEC. 31, 2011 | ||||||
Commodity contracts | |||||||||
Fuel cost hedges: | |||||||||
Current | Energy risk management liabilities, net | $ | — | $ | (5,336 | ) | |||
Total | $ | — | $ | (5,336 | ) |
FOR THE YEAR ENDED DEC. 31, | ||||||||||||||
2012 | 2011 | 2010 | ||||||||||||
(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) | |||||
Fuel cost hedges(2) | Fuel used for electric generation | (8,277 | ) | (18,119 | ) | $ | (36,818 | ) | ||||||
Total | $ | (8,277 | ) | $ | (18,119 | ) | $ | (37,485 | ) |
FOR THE YEAR ENDED DEC. 31, | |||||||||||||||||||||||
2012 | 2011 | 2010 | |||||||||||||||||||||
(THOUSANDS) | AMOUNT OF GAIN RECOGNIZED IN OCI | AMOUNT OF NET LOSS RECLASSIFIED FROM ACCUMULATED OCI INTO INCOME (EFFECTIVE PORTION) | 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) | |||||||||||||||||
Interest rate derivatives(1) | $ | 704 | $ | (60 | )* | $ | (25,661 | ) | $ | 334 | * | $ | 4,739 | $ | (512 | )* |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
AT DEC. 31, | |||||||
(THOUSANDS) | 2012 | 2011 | |||||
Bonds | |||||||
Cleco Power’s senior notes, 5.375%, due 2013 | $ | 75,000 | $ | 75,000 | |||
Cleco Power’s senior notes, 4.95%, due 2015 | 50,000 | 50,000 | |||||
Cleco Power’s senior notes, 6.65%, due 2018 | 250,000 | 250,000 | |||||
Cleco Power’s senior notes, 4.33%, due 2027 | 50,000 | — | |||||
Cleco Power’s senior notes, 6.50%, due 2035 | 295,000 | 295,000 | |||||
Cleco Power’s senior notes, 5.942%, due 2040 | 250,000 | 250,000 | |||||
Cleco Power’s senior notes, 5.988%, due 2041 | 100,000 | 100,000 | |||||
Cleco Power’s pollution control revenue bonds, 5.875%, due 2029, callable after September 1, 2009 | — | 61,260 | |||||
Cleco Power’s solid waste disposal facility bonds, 4.70%, due 2036, callable after November 1, 2016 | 60,000 | 60,000 | |||||
Cleco Power’s solid waste disposal facility bonds, 5.25%, due 2037, mandatory tender on March 1, 2013 | 60,000 | 60,000 | |||||
Cleco Katrina/Rita’s storm recovery bonds, 4.41%, due 2020 | 62,598 | 75,707 | |||||
Cleco Katrina/Rita’s storm recovery bonds, 5.61%, due 2023 | 67,600 | 67,600 | |||||
Total bonds | 1,320,198 | 1,344,567 | |||||
Other long-term debt | |||||||
Cleco Corporation’s credit facility draws | 25,000 | 10,000 | |||||
Barge lease obligations, ending December 31, 2017 | 11,350 | 17,538 | |||||
Gross amount of long-term debt | 1,356,548 | 1,372,105 | |||||
Less: long-term debt due within one year | 88,969 | 24,258 | |||||
Less: lease obligations classified as long-term debt due within one year | 2,171 | 1,841 | |||||
Unamortized premium and discount, net | (8,150 | ) | (8,950 | ) | |||
Total long-term debt, net | $ | 1,257,258 | $ | 1,337,056 |
(THOUSANDS) | ||||
Amounts payable under long-term debt agreements | ||||
2013 | $ | 88,969 | ||
2014 | $ | 14,876 | ||
2015 | $ | 90,824 | ||
2016 | $ | 16,814 | ||
2017 | $ | 17,896 | ||
Thereafter | $ | 1,115,819 |
(THOUSANDS) | ||||
Amounts payable under capital lease agreements | ||||
2013 | $ | 2,171 | ||
2014 | $ | 2,305 | ||
2015 | $ | 2,448 | ||
2016 | $ | 2,607 | ||
2017 | $ | 1,819 |
AT DEC. 31, | |||||||
(THOUSANDS) | 2012 | 2011 | |||||
Bonds | |||||||
Senior notes, 5.375%, due 2013 | $ | 75,000 | $ | 75,000 | |||
Senior notes, 4.95%, due 2015 | 50,000 | 50,000 | |||||
Senior notes, 6.65%, due 2018 | 250,000 | 250,000 | |||||
Senior notes, 4.33%, due 2027 | 50,000 | — | |||||
Senior notes, 6.50%, due 2035 | 295,000 | 295,000 | |||||
Senior notes, 5.942%, due 2040 | 250,000 | 250,000 | |||||
Senior notes, 5.988%, due 2041 | 100,000 | 100,000 | |||||
Pollution control revenue bonds, 5.875%, due 2029, callable after September 1, 2009 | — | 61,260 | |||||
Solid waste disposal facility bonds, 4.70%, due 2036, callable after November 1, 2016 | 60,000 | 60,000 | |||||
Solid waste disposal facility bonds, 5.25%, due 2037, mandatory tender on March 1, 2013 | 60,000 | 60,000 | |||||
Cleco Katrina/Rita’s storm recovery bonds, 4.41%, due 2020 | 62,598 | 75,707 | |||||
Cleco Katrina/Rita’s storm recovery bonds, 5.61%, due 2023 | 67,600 | 67,600 | |||||
Total bonds | 1,320,198 | 1,344,567 | |||||
Other long-term debt | |||||||
Barge lease obligations, ending December 31, 2017 | 11,350 | 17,538 | |||||
Gross amount of long-term debt | 1,331,548 | 1,362,105 | |||||
Less: long-term debt due within one year | 88,969 | 24,258 | |||||
Less: lease obligations classified as long-term debt due within one year | 2,171 | 1,841 | |||||
Unamortized premium and discount, net | (8,150 | ) | (8,950 | ) | |||
Total long-term debt, net | $ | 1,232,258 | $ | 1,327,056 |
(THOUSANDS) | ||||
Amounts payable under long-term debt agreements | ||||
2013 | $ | 88,969 | ||
2014 | $ | 14,876 | ||
2015 | $ | 65,824 | ||
2016 | $ | 16,814 | ||
2017 | $ | 17,896 | ||
Thereafter | $ | 1,115,819 |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
(THOUSANDS) | ||||
Amounts payable under capital lease agreements | ||||
2013 | $ | 2,171 | ||
2014 | $ | 2,305 | ||
2015 | $ | 2,448 | ||
2016 | $ | 2,607 | ||
2017 | $ | 1,819 |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
Note 7 — Common and Preferred Stock |
SHARES | WEIGHTED- AVERAGE EXERCISE PRICE | WEIGHTED- AVERAGE REMAINING CONTRACTUAL TERM (YEARS) | AGGREGATE INTRINSIC VALUE (THOUSANDS) | ||||||||||
Outstanding at January 1, 2012 | 94,070 | $ | 21.12 | 14.92 | $ | 1,597 | |||||||
Exercised | (94,070 | ) | $ | 21.12 | $ | 1,765 | |||||||
Forfeited | — | $ | — | ||||||||||
Outstanding at December 31, 2012 | — | $ | — | — | $ | — | |||||||
Exercisable at December 31, 2012 | — | $ | — | — | $ | — |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
SHARES | WEIGHTED-AVERAGE GRANT-DATE FAIR VALUE | UNITS | WEIGHTED-AVERAGE FAIR VALUE | ||||||||||
NON-VESTED STOCK | COMMON STOCK EQUIVALENT UNITS | ||||||||||||
Non-vested at January 1, 2012 | 370,731 | $ | 31.27 | 59,884 | $ | 42.22 | |||||||
Granted | 148,186 | $ | 38.41 | — | $ | — | |||||||
Vested | (114,061 | ) | $ | 26.97 | (52,986 | ) | $ | 42.22 | |||||
Forfeited | (55,081 | ) | $ | 34.93 | (6,898 | ) | $ | 42.22 | |||||
Non-vested at December 31, 2012 | 349,775 | $ | 35.12 | — | $ | — |
AT DEC. 31, | |||||||||||||||||||||||
2012 | 2011 | 2010 | |||||||||||||||||||||
NON-VESTED STOCK | COMMON STOCK EQUIVALENT UNITS | NON-VESTED STOCK | COMMON STOCK EQUIVALENT UNITS | NON-VESTED STOCK | COMMON STOCK EQUIVALENT UNITS | ||||||||||||||||||
Expected term (in years) (1) | 3.0 | — | 3.0 | — | 3.0 | 3.0 | |||||||||||||||||
Volatility of Cleco stock (2) | 21.5 | % | — | % | 28.5 | % | — | % | 30.6 | % | 28.6 | % | |||||||||||
Correlation between Cleco stock volatility and peer group | 66.0 | % | — | % | 63.2 | % | — | % | 60.6 | % | 62.5 | % | |||||||||||
Expected dividend yield | 3.3 | % | — | % | 3.3 | % | — | % | 3.5 | % | 3.9 | % | |||||||||||
Weighted average fair value (Monte Carlo model) | $ | 41.56 | $ | — | $ | 34.88 | $ | — | $ | 27.92 | $ | 32.81 |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
CLECO | CLECO POWER | ||||||||||||||||||||||
FOR THE YEAR ENDED DEC. 31, | FOR THE YEAR ENDED DEC. 31, | ||||||||||||||||||||||
(THOUSANDS) | 2012 | 2011 | 2010 | 2012 | 2011 | 2010 | |||||||||||||||||
Equity classification | |||||||||||||||||||||||
Non-vested stock (1) | $ | 4,429 | $ | 3,391 | $ | 2,276 | $ | 1,074 | $ | 678 | $ | 575 | |||||||||||
Stock options (1) | 11 | 103 | 51 | — | — | — | |||||||||||||||||
Total equity classification | $ | 4,440 | $ | 3,494 | $ | 2,327 | $ | 1,074 | $ | 678 | $ | 575 | |||||||||||
Liability classification | |||||||||||||||||||||||
Common stock equivalent units | $ | 1,506 | $ | 3,509 | $ | 2,812 | $ | 609 | $ | 1,118 | $ | 1,271 | |||||||||||
Total pre-tax compensation expense | $ | 5,946 | $ | 7,003 | $ | 5,139 | $ | 1,683 | $ | 1,796 | $ | 1,846 | |||||||||||
Tax benefit (excluding income tax gross-up) | $ | 2,288 | $ | 2,695 | $ | 1,977 | $ | 648 | $ | 691 | $ | 710 |
Note 8 — Pension Plan and Employee Benefits |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
PENSION BENEFITS | OTHER BENEFITS | |||||||||||||||
(THOUSANDS) | 2012 | 2011 | 2012 | 2011 | ||||||||||||
Change in benefit obligation | ||||||||||||||||
Benefit obligation at beginning of year | $ | 361,986 | $ | 330,342 | $ | 42,680 | $ | 41,444 | ||||||||
Service cost | 8,312 | 8,390 | 1,461 | 1,532 | ||||||||||||
Interest cost | 18,254 | 17,629 | 2,239 | 1,818 | ||||||||||||
Plan participants’ contributions | — | — | 1,308 | 1,251 | ||||||||||||
Actuarial loss | 58,109 | 19,452 | 2,462 | 141 | ||||||||||||
Expenses paid | (1,511 | ) | (1,208 | ) | — | — | ||||||||||
Medicare D | — | — | — | 206 | ||||||||||||
Other adjustments (1) | — | — | — | 452 | ||||||||||||
Benefits paid | (13,581 | ) | (12,619 | ) | (4,581 | ) | (4,164 | ) | ||||||||
Benefit obligation at end of year | 431,569 | 361,986 | 45,569 | 42,680 | ||||||||||||
Change in plan assets | ||||||||||||||||
Fair value of plan assets at beginning of year | 312,395 | 242,513 | — | — | ||||||||||||
Actual return on plan assets | 46,738 | 23,709 | — | — | ||||||||||||
Employer contributions | — | 60,000 | — | — | ||||||||||||
Expenses paid | (1,511 | ) | (1,208 | ) | — | — | ||||||||||
Benefits paid | (13,581 | ) | (12,619 | ) | — | — | ||||||||||
Fair value of plan assets at end of year | 344,041 | 312,395 | — | — | ||||||||||||
Unfunded status | $ | (87,528 | ) | $ | (49,591 | ) | $ | (45,569 | ) | $ | (42,680 | ) |
PENSION BENEFITS | |||||||
(THOUSANDS) | 2012 | 2011 | |||||
Accumulated benefit obligation | $ | 387,776 | $ | 330,193 |
PENSION BENEFITS | OTHER BENEFITS | ||||||||||||||
(THOUSANDS) | 2012 | 2011 | 2012 | 2011 | |||||||||||
Net actuarial loss occurring during year | $ | 32,177 | $ | 20,389 | $ | 2,461 | $ | 141 | |||||||
Net actuarial loss amortized during year | $ | 8,346 | $ | 5,556 | $ | 1,479 | $ | 1,010 | |||||||
Transition obligation amortized during year | $ | — | $ | — | $ | 20 | $ | 20 | |||||||
Prior service (credit) amortized during year | $ | (71 | ) | $ | (71 | ) | $ | — | $ | (206 | ) |
PENSION BENEFITS | OTHER BENEFITS | ||||||||||||||||||||||
(THOUSANDS) | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||||
Net actuarial loss | $ | 12,513 | $ | 157,017 | $ | 133,186 | $ | 1,176 | (1) | $ | 13,602 | $ | 12,620 | ||||||||||
Transition obligation | $ | — | $ | — | $ | — | $ | 20 | $ | 35 | $ | 55 | |||||||||||
Prior service (credit) | $ | (71 | ) | $ | (559 | ) | $ | (630 | ) | $ | — | $ | — | $ | — |
PENSION BENEFITS | OTHER BENEFITS | ||||||||||||||||||||||
(THOUSANDS) | 2012 | 2011 | 2010 | 2012 | 2011 | 2010 | |||||||||||||||||
Components of periodic benefit costs | |||||||||||||||||||||||
Service cost | $ | 8,312 | $ | 8,390 | $ | 7,451 | $ | 1,461 | $ | 1,532 | $ | 1,511 | |||||||||||
Interest cost | 18,254 | 17,629 | 17,145 | 2,239 | 1,818 | 1,965 | |||||||||||||||||
Expected return on plan assets | (20,806 | ) | (24,646 | ) | (20,229 | ) | — | — | — | ||||||||||||||
Amortizations: | |||||||||||||||||||||||
Transition obligation | — | — | — | 20 | 20 | 20 | |||||||||||||||||
Prior period service cost | (71 | ) | (71 | ) | (71 | ) | — | (206 | ) | (2,021 | ) | ||||||||||||
Net loss | 8,346 | 5,556 | 3,156 | 1,479 | 1,010 | 972 | |||||||||||||||||
Net periodic benefit cost | $ | 14,035 | $ | 6,858 | $ | 7,452 | $ | 5,199 | $ | 4,174 | $ | 2,447 |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
PENSION BENEFITS | OTHER BENEFITS | ||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||
Weighted-average assumptions used to determine the benefit obligation as of December 31: | |||||||||||
Discount rate | 4.19 | % | 5.08 | % | 3.54 | % | 4.51 | % | |||
Rate of compensation increase | 3.334 | % | 3.415 | % | N/A | N/A |
PENSION BENEFITS | OTHER BENEFITS | ||||||||||||
2012 | 2011 | 2010 | 2012 | 2011 | 2010 | ||||||||
Weighted-average assumptions used to determine the net benefit cost (income) for the year ended December 31: | |||||||||||||
Discount rate | 5.08 | % | 5.43 | % | 5.91 | % | 4.51 | % | 4.61 | % | 5.29 | % | |
Expected return on plan assets | 6.61 | % | 7.80 | % | 7.80 | % | N/A | N/A | N/A | ||||
Rate of compensation increase | 3.373 | % | 4.119 | % | 4.265 | % | N/A | N/A | N/A |
• | Level 1 – unadjusted quoted prices in active, liquid markets for the identical asset or liability, |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
• | Level 2 – quoted prices for similar assets and liabilities in active markets or other inputs that are observable for the asset or liability, including inputs that can be corroborated by observable market data, observable interest rate yield curves and volatilities, and |
• | Level 3 – unobservable inputs based upon the entities own assumptions. |
(THOUSANDS) | AT DEC. 31, 2012 | QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) | SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) | SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | ||||||||||||
Asset Description | ||||||||||||||||
Cash and cash equivalents | $ | 6,336 | $ | — | $ | 6,336 | $ | — | ||||||||
Common stock | 16,319 | 16,319 | — | — | ||||||||||||
Preferred stock | 379 | 379 | — | — | ||||||||||||
Obligations of U.S. Government and U.S. Government Agencies | 32,734 | — | 32,734 | — | ||||||||||||
Mutual funds | 25,042 | 25,042 | — | — | ||||||||||||
Common/collective trust fund | ||||||||||||||||
Domestic equity | 54,198 | — | 54,198 | — | ||||||||||||
International equity | 39,943 | — | 39,943 | — | ||||||||||||
Real estate funds | 17,341 | — | — | 17,341 | ||||||||||||
Hedge fund-of-funds | 2,587 | — | — | 2,587 | ||||||||||||
Corporate debt | 147,013 | — | 147,013 | — | ||||||||||||
Total | $ | 341,892 | $ | 41,740 | $ | 280,224 | $ | 19,928 | ||||||||
Interest accrual | 2,149 | |||||||||||||||
Total net assets | $ | 344,041 |
(THOUSANDS) | AT DEC. 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 | |||||||||||||||||
Cash and cash equivalents | $ | 7,775 | $ | — | $ | 7,775 | $ | — | |||||||||
Common stock | 15,242 | — | 15,242 | — | |||||||||||||
Preferred stock | 291 | — | 291 | — | |||||||||||||
Obligations of U.S. Government and U.S. Government Agencies | 28,501 | — | 28,501 | — | |||||||||||||
Mutual funds | 9,144 | 9,144 | — | — | |||||||||||||
Common/collective trust fund | |||||||||||||||||
Domestic equity | 63,864 | — | 63,864 | — | |||||||||||||
International equity | 30,813 | — | 30,813 | — | |||||||||||||
Real estate funds | 16,349 | — | — | 16,349 | |||||||||||||
Hedge fund-of-funds | 2,892 | — | — | 2,892 | |||||||||||||
Corporate debt | 135,326 | — | 135,326 | — | |||||||||||||
Total | $ | 310,197 | $ | 9,144 | $ | 281,812 | $ | 19,241 | |||||||||
Interest accrual | 2,198 | — | |||||||||||||||
Total net assets | $ | 312,395 |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
(THOUSANDS) | REAL ESTATE FUNDS | HEDGE FUND OF FUNDS | TOTAL | ||||||||
December 31, 2010 | $ | 14,568 | $ | 3,271 | $ | 17,839 | |||||
Realized gain | — | 17 | 17 | ||||||||
Unrealized gain | 1,454 | 77 | 1,531 | ||||||||
Purchases | 327 | 327 | |||||||||
Sales | — | (473 | ) | (473 | ) | ||||||
December 31, 2011 | $ | 16,349 | $ | 2,892 | $ | 19,241 | |||||
Realized gain | — | 2 | 2 | ||||||||
Unrealized gain | 734 | 130 | 864 | ||||||||
Purchases | 258 | — | 258 | ||||||||
Sales | — | (437 | ) | (437 | ) | ||||||
December 31, 2012 | $ | 17,341 | $ | 2,587 | $ | 19,928 |
• | Exceed the assumed rate of return on plan assets, and |
• | Exceed the annualized total return of a customized index consisting of a mixture of Standard & Poor’s 500 Index; Russell 2500 Index, Morgan Stanley Capital International Europe, Australia, Far East Index; Morgan Stanley Capital International Emerging Markets Index, Barclays Capital Long Credit Index, Barclays Capital Long Government/Credit Index, |
• | Equity holdings of a single company must not exceed 10% of the manager’s portfolio. |
• | A minimum of 25 stocks should be owned. |
• | Equity holdings in a single sector should not exceed the lesser of three times the sector’s weighting in the Standard & Poor’s 500 Index or 35% of the portfolio. |
• | Equity holdings should represent at least 90% of the portfolio. |
• | Marketable common stocks, preferred stocks convertible into common stocks, and fixed income securities convertible into common stocks are the only permissible equity investments. |
• | Securities in foreign entities denominated in U.S. dollars are limited to 10%. Securities denominated in currencies other than U.S. dollars are not permitted. |
• | The purchase of securities on margin and short sales is prohibited. |
• | Equity holdings of a single company should not exceed 5% of the manager’s portfolio. |
• | A minimum of 30 stocks should be owned. |
• | Equity holdings in a single sector should not exceed 35%. |
• | A minimum of 50% of the countries within the MSCI EAFE Index should be represented within the portfolio. The allocation to an individual country should not exceed the lesser of 30% or 5 times the country’s weighting within the MSCI EAFE Index. |
• | Currency hedging decisions are at the discretion of the investment manager. |
• | Equity holdings in any single company should not exceed 10% of the manager’s portfolio. |
• | A minimum of 30 individual stocks should be owned. |
• | Equity holdings of a single industry should not exceed 25%. |
• | Equity investments must represent at least 75% of the manager’s portfolio. |
• | A minimum of three countries should be represented within the manager’s portfolio. |
• | Illiquid securities which are not readily marketable may represent no more than 10% of the manager’s portfolio. |
• | Currency hedging decisions are at the discretion of the investment manager. |
• | Only U.S. Dollar denominated assets permitted, including U.S. government and agency securities, corporate securities, structured securities, other interest bearing securities, and short-term investments. |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
• | At least 85% of the debt securities should be investment grade securities (BBB- by Standard & Poor’s or Baa3 by Moody’s) or higher. |
• | Debt holdings of a single issue or issuer must not exceed 5% of the manager’s portfolio. |
• | Aggregate net notional exposure of futures, options, and swaps must not exceed 30% of the manager’s portfolio. Manager will only execute swaps with counterparties whose credit rating is A2/A or better. |
• | Margin purchases or leverage is prohibited. |
• | Permitted assets include U.S. government and agency securities, corporate securities, mortgage-backed securities, investment-grade private placements, surplus notes, trust preferred, e-caps, and hybrids, money-market securities, and senior and subordinated debt. |
• | At least 90% of securities must be U.S. Dollar denominated. |
• | At least 70% of the securities must be investment-grade credit. |
• | Maximum position size of 5% or A rated securities and 3% for BBB rated securities. |
• | Real estate funds should be invested primarily in direct equity positions, with debt and other investments representing less than 25% of the fund. |
• | Leverage should be no more than 70% of the market value of the fund. |
• | Investments should be focused on existing income-producing properties, with land and development properties representing less than 40% of the fund. |
• | The fund should be invested in a minimum of 20 individual partnerships. |
• | No individual partnership should exceed 10% of the fund-of-funds. |
• | The fund should be diversified across several different “styles” of partnerships, including event-driven strategies, fixed income arbitrage and trading, and other arbitrage strategies. The fund generally should not be invested in emerging markets, short-term only, traditional Commodity Trading Advisor’s or derivative-only strategies. |
• | Debt portfolios and hedge fund-of-funds are exempt from the prohibition on derivative use. |
• | Execution of target allocation rebalancing may be implemented through short to intermediate-term use of derivatives overlay strategies. |
• | The notional value of derivative positions shall not exceed 20% of the total pension fund’s value at any given time. |
PERCENT OF TOTAL PLAN ASSETS* | ||||||||
MINIMUM | TARGET | MAXIMUM | ||||||
Return-seeking | ||||||||
Domestic equity | 21 | % | ||||||
International equity | 18 | % | ||||||
Real estate | 8 | % | ||||||
Hedge fund-of-funds | 2 | % | ||||||
Total return-seeking | 43 | % | 49 | % | 53 | % | ||
Liability hedging | ||||||||
Fixed income- long government/credit | 17 | % | ||||||
Fixed income - long credit | 36 | % | ||||||
Total liability hedging | 47 | % | 53 | % | 57 | % | ||
*Minimums and maximums within subcategories not intended to equal total for category. |
AT DECEMBER 31, | |||||||
(THOUSANDS) | 2012 | 2011 | |||||
Components of other benefit costs: | |||||||
(Increase) reduction in interest cost | $ | (8 | ) | $ | (24 | ) | |
Reduction in net loss amortization | 199 | 195 | |||||
Reduction in prior period service cost amortization | — | 50 | |||||
Reduction in net other benefit cost | $ | 191 | $ | 221 |
ONE-PERCENTAGE POINT | |||||||
(THOUSANDS) | INCREASE | DECREASE | |||||
Effect on total of service and interest cost components | $ | 14 | $ | (34 | ) | ||
Effect on postretirement benefit obligation | $ | 318 | $ | (670 | ) |
(THOUSANDS) | PENSION BENEFITS | OTHER BENEFITS, GROSS | MEDICARE D, RECEIPTS | ||||||||
2013 | $ | 14,905 | $ | 3,060 | $ | 194 | |||||
2014 | $ | 15,742 | $ | 3,279 | $ | — | |||||
2015 | $ | 16,570 | $ | 3,496 | $ | — | |||||
2016 | $ | 17,562 | $ | 3,680 | $ | — | |||||
2017 | $ | 18,695 | $ | 3,821 | $ | — | |||||
Next five years | $ | 112,906 | $ | 19,863 | $ | — |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
SERP BENEFITS | |||||||
(THOUSANDS) | 2012 | 2011 | |||||
Change in benefit obligation | |||||||
Benefit obligation at beginning of year | $ | 46,264 | $ | 42,160 | |||
Service cost | 1,487 | 1,566 | |||||
Interest cost | 2,526 | 2,105 | |||||
Actuarial loss | 11,651 | 2,529 | |||||
Benefits paid | (2,506 | ) | (2,096 | ) | |||
Benefit obligation at end of year | $ | 59,422 | $ | 46,264 |
SERP BENEFITS | |||||||
(THOUSANDS) | 2012 | 2011 | |||||
Accumulated benefit obligation | $ | 53,350 | $ | 42,410 |
SERP BENEFITS | |||||||
(THOUSANDS) | 2012 | 2011 | |||||
Net actuarial loss occurring during year | $ | 11,651 | $ | 2,529 | |||
Net actuarial loss amortized during year | $ | 1,764 | $ | 940 | |||
Prior service cost amortized during year | $ | 54 | $ | 54 |
SERP BENEFITS | |||||||||||
(THOUSANDS) | 2013 | 2012 | 2011 | ||||||||
Net actuarial loss | $ | 2,155 | $ | 25,444 | $ | 15,588 | |||||
Prior service cost | $ | 54 | $ | 280 | $ | 334 |
SERP BENEFITS | |||||||||||
(THOUSANDS) | 2012 | 2011 | 2010 | ||||||||
Components of periodic benefit costs: | |||||||||||
Service cost | $ | 1,487 | $ | 1,566 | $ | 1,531 | |||||
Interest cost | 2,526 | 2,105 | 2,122 | ||||||||
Amortizations: | |||||||||||
Prior period service cost | 54 | 54 | 54 | ||||||||
Net loss | 1,764 | 940 | 924 | ||||||||
Net periodic benefit cost | $ | 5,831 | $ | 4,665 | $ | 4,631 |
SERP | |||||
2012 | 2011 | ||||
Weighted-average assumptions used to determine the benefit obligation as of December 31: | |||||
Discount rate | 4.17 | % | 4.99 | % | |
Rate of compensation increase | 5.00 | % | 5.00 | % |
SERP | ||||||||
2012 | 2011 | 2010 | ||||||
Weighted-average assumptions used to determine the net benefit cost (income) for the year ended December 31: | ||||||||
Discount rate | 4.99 | % | 5.26 | % | 5.78 | % | ||
Rate of compensation increase | 5.00 | % | 5.00 | % | 5.00 | % |
(THOUSANDS) | 2013 | 2014 | 2015 | 2016 | 2017 | NEXT FIVE YEARS | |||||||||||||||||
SERP | $ | 2,503 | $ | 2,531 | $ | 2,774 | $ | 2,997 | $ | 3,078 | $ | 18,279 |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
FOR THE YEAR ENDED DEC. 31, | |||||||||||
(THOUSANDS) | 2012 | 2011 | 2010 | ||||||||
401(k) Plan expense | $ | 4,375 | $ | 3,917 | $ | 3,709 |
Note 9 — Income Taxes |
FOR THE YEAR ENDED DEC. 31, | |||||||||||
(THOUSANDS, EXCEPT FOR %) | 2012 | 2011 | 2010 | ||||||||
Income before tax | $ | 228,975 | $ | 298,745 | $ | 397,889 | |||||
Statutory rate | 35.0 | % | 35.0 | % | 35.0 | % | |||||
Tax at federal statutory rate | $ | 80,141 | $ | 104,561 | $ | 139,261 | |||||
Increase (decrease): | |||||||||||
Plant differences, including AFUDC flowthrough | (1,222 | ) | (1,758 | ) | (7,757 | ) | |||||
Amortization of investment tax credits | (1,180 | ) | (1,238 | ) | (1,285 | ) | |||||
State income taxes | (218 | ) | 2,155 | 11,897 | |||||||
Tax settlement | — | 10,782 | — | ||||||||
New Markets Tax Credits | (9,261 | ) | (4,697 | ) | — | ||||||
Other | (2,933 | ) | (6,908 | ) | 382 | ||||||
Total taxes | $ | 65,327 | $ | 102,897 | $ | 142,498 | |||||
Effective Rate | 28.5 | % | 34.4 | % | 35.8 | % |
FOR THE YEAR ENDED DEC. 31, | |||||||||||
(THOUSANDS) | 2012 | 2011 | 2010 | ||||||||
Current federal income tax expense | $ | 47,768 | $ | 77,659 | $ | 75,337 | |||||
Deferred federal income tax expense | 21,724 | 26,577 | 56,047 | ||||||||
Amortization of accumulated deferred investment tax credits | (1,180 | ) | (1,238 | ) | (1,285 | ) | |||||
Total federal income tax expense | $ | 68,312 | $ | 102,998 | $ | 130,099 | |||||
Current state income tax (benefit) expense | (1,192 | ) | 2,857 | 13,572 | |||||||
Deferred state income tax benefit | (1,793 | ) | (2,958 | ) | (1,173 | ) | |||||
Total state income tax (benefit) expense | $ | (2,985 | ) | $ | (101 | ) | $ | 12,399 | |||
Total federal and state income tax expense | $ | 65,327 | $ | 102,897 | $ | 142,498 | |||||
Items charged or credited directly to shareholders’ equity | |||||||||||
Federal deferred | (2,386 | ) | (8,908 | ) | 2,210 | ||||||
State deferred | (385 | ) | (1,439 | ) | 357 | ||||||
Total tax expense (benefit) from items charged directly to shareholders’ equity | $ | (2,771 | ) | $ | (10,347 | ) | $ | 2,567 | |||
Total federal and state income tax expense | $ | 62,556 | $ | 92,550 | $ | 145,065 |
AT DEC. 31, | |||||||
(THOUSANDS) | 2012 | 2011 | |||||
Depreciation and property basis differences | $ | (822,831 | ) | $ | (594,135 | ) | |
Net operating loss carryforward | 139,036 | 18,542 | |||||
New Markets Tax Credits | 82,584 | 36,398 | |||||
Fuel costs | (9,400 | ) | (6,135 | ) | |||
Deferred carrying charges | 1,369 | 11,327 | |||||
SERP – other comprehensive income | 19,392 | 16,621 | |||||
Regulated operations regulatory liability, net | (75,046 | ) | (83,965 | ) | |||
Postretirement benefits other than pension | (2,275 | ) | (9,486 | ) | |||
Other | (16,468 | ) | (9,844 | ) | |||
Accumulated deferred federal and state income taxes | $ | (683,639 | ) | $ | (620,677 | ) |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
FOR THE YEAR ENDED DEC. 31, | |||||||||||
(THOUSANDS, EXCEPT FOR %) | 2012 | 2011 | 2010 | ||||||||
Income before tax | $ | 214,981 | $ | 212,244 | $ | 222,512 | |||||
Statutory rate | 35.0 | % | 35.0 | % | 35.0 | % | |||||
Tax at federal statutory rate | $ | 75,243 | $ | 74,285 | $ | 77,879 | |||||
Increase (decrease): | |||||||||||
Plant differences, including AFUDC flowthrough | (1,222 | ) | (1,758 | ) | (7,757 | ) | |||||
Amortization of investment tax credits | (1,180 | ) | (1,238 | ) | (1,285 | ) | |||||
State income taxes | (705 | ) | (853 | ) | 5,798 | ||||||
Other | (4,003 | ) | (1,027 | ) | 472 | ||||||
Total tax expense | $ | 68,133 | $ | 69,409 | $ | 75,107 | |||||
Effective Rate | 31.7 | % | 32.7 | % | 33.8 | % |
FOR THE YEAR ENDED DEC. 31, | |||||||||||
(THOUSANDS) | 2012 | 2011 | 2010 | ||||||||
Current federal income tax expense | $ | 13,008 | $ | 23,347 | $ | 35,132 | |||||
Deferred federal income tax expense | 59,008 | 47,763 | 40,237 | ||||||||
Amortization of accumulated deferred investment tax credits | (1,180 | ) | (1,238 | ) | (1,285 | ) | |||||
Total federal income tax expense | $ | 70,836 | $ | 69,872 | $ | 74,084 | |||||
Current state income tax (benefit) expense | (1,060 | ) | 1,691 | 6,704 | |||||||
Deferred state income tax benefit | (1,643 | ) | (2,154 | ) | (5,681 | ) | |||||
Total state income tax (benefit) expense | $ | (2,703 | ) | $ | (463 | ) | $ | 1,023 | |||
Total federal and state income taxes | $ | 68,133 | $ | 69,409 | $ | 75,107 | |||||
Items charged or credited directly to shareholders’ equity | |||||||||||
Federal deferred | 20 | (8,580 | ) | 2,532 | |||||||
State deferred | 3 | (1,386 | ) | 409 | |||||||
Total tax expense (benefit) from items charged directly to shareholders’ equity | $ | 23 | $ | (9,966 | ) | $ | 2,941 | ||||
Total federal and state income tax expense | $ | 68,156 | $ | 59,443 | $ | 78,048 |
AT DEC. 31, | |||||||
(THOUSANDS) | 2012 | 2011 | |||||
Depreciation and property basis differences | $ | (804,133 | ) | $ | (592,634 | ) | |
Net operating loss carryforward | 127,742 | 16,390 | |||||
Fuel costs | (9,389 | ) | (6,125 | ) | |||
Deferred carrying charges | 1,369 | 11,327 | |||||
SERP - other comprehensive income | 11,961 | 11,984 | |||||
Regulated operations regulatory liability, net | (75,046 | ) | (83,965 | ) | |||
Postretirement benefits other than pension | (13,442 | ) | (22,461 | ) | |||
Other | 2,455 | 9,478 | |||||
Accumulated deferred federal and state income taxes | $ | (758,483 | ) | $ | (656,006 | ) |
AT DEC. 31, | |||||||
(THOUSANDS) | 2012 | 2011 | |||||
Interest payable | |||||||
Cleco Corporation | $ | 1,420 | $ | 13,843 | |||
Cleco Power | $ | 3,358 | $ | 17,327 |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
FOR THE YEAR ENDED DEC. 31, | |||||||||||
(THOUSANDS) | 2012 | 2011 | 2010 | ||||||||
Interest charges | |||||||||||
Cleco Corporation | $ | (9,223 | ) | $ | (27,175 | ) | $ | 3,930 | |||
Cleco Power | $ | (11,648 | ) | $ | 2,116 | $ | (5,448 | ) |
Cleco | ||||
(THOUSANDS) | LIABILITY FOR UNRECOGNIZED TAX BENEFITS | |||
Balance at January 1, 2010 | $ | 129,235 | ||
Reduction for tax positions of current period | (5,738 | ) | ||
Additions for tax positions of prior years | 511 | |||
Reduction for tax positions of prior years | (6,146 | ) | ||
Reduction for settlement with tax authority | (15,077 | ) | ||
Reduction for lapse of statute of limitations | — | |||
Balance at December 31, 2010 | $ | 102,785 | ||
Reduction for tax positions of current period | (4,129 | ) | ||
Additions for tax positions of prior years | 11,031 | |||
Reduction for tax positions of prior years | (8,670 | ) | ||
Reduction for settlement with tax authority | (44,782 | ) | ||
Reduction for lapse of statute of limitations | — | |||
Balance at December 31, 2011 | $ | 56,235 | ||
Reduction for tax positions of current period | — | |||
Additions for tax positions of prior years | — | |||
Reduction for tax positions of prior years | — | |||
Reduction for settlement with tax authority | (53,109 | ) | ||
Reduction for lapse of statute of limitations | — | |||
Balance at December 31, 2012 | $ | 3,126 |
Cleco Power | ||||
(THOUSANDS) | LIABILITY FOR UNRECOGNIZED TAX BENEFITS | |||
Balance at January 1, 2010 | $ | 84,360 | ||
Reduction for tax positions of current period | (2,202 | ) | ||
Additions for tax positions of prior years | 3 | |||
Reduction for tax positions of prior years | (6,109 | ) | ||
Reduction for settlement with tax authority | (15,077 | ) | ||
Reduction for lapse of statute of limitations | — | |||
Balance at December 31, 2010 | $ | 60,975 | ||
Reduction for tax positions of current period | (4,018 | ) | ||
Additions for tax positions of prior years | 4,271 | |||
Reduction for tax positions of prior years | (8,670 | ) | ||
Reduction for settlement with tax authority | — | |||
Reduction for lapse of statute of limitations | — | |||
Balance at December 31, 2011 | $ | 52,558 | ||
Reduction for tax positions of current period | — | |||
Additions for tax positions of prior years | — | |||
Reduction for tax positions of prior years | — | |||
Reduction for settlement with tax authority | (52,310 | ) | ||
Reduction for lapse of statute of limitations | — | |||
Balance at December 31, 2012 | $ | 248 |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
Note 10 — Disclosures about Segments |
SEGMENT INFORMATION | |||||||||||||||||||
2012 (THOUSANDS) | CLECO POWER | MIDSTREAM | RECONCILING ITEMS | ELIMINATIONS | CONSOLIDATED | ||||||||||||||
Revenue | |||||||||||||||||||
Electric operations | $ | 944,169 | $ | — | $ | — | $ | — | $ | 944,169 | |||||||||
Tolling operations | — | 25,559 | — | (25,559 | ) | — | |||||||||||||
Other operations | 48,156 | 3 | 1,998 | 1 | 50,158 | ||||||||||||||
Electric customer credits | (630 | ) | — | — | — | (630 | ) | ||||||||||||
Affiliate revenue | 1,372 | — | 52,063 | (53,435 | ) | — | |||||||||||||
Operating revenue, net | $ | 993,067 | $ | 25,562 | $ | 54,061 | $ | (78,993 | ) | $ | 993,697 | ||||||||
Depreciation | $ | 125,486 | $ | 6,006 | $ | 916 | $ | (1 | ) | $ | 132,407 | ||||||||
Interest charges | $ | 80,502 | $ | 770 | $ | 2,269 | $ | 615 | $ | 84,156 | |||||||||
Interest income | $ | 333 | $ | — | $ | (602 | ) | $ | 615 | $ | 346 | ||||||||
Federal and state income tax expense (benefit) | $ | 68,133 | $ | 6,404 | $ | (9,210 | ) | $ | — | $ | 65,327 | ||||||||
Segment profit | $ | 146,848 | $ | 9,155 | $ | 7,645 | $ | — | $ | 163,648 | |||||||||
Additions to long-lived assets | $ | 222,104 | $ | 8,759 | $ | 1,861 | $ | — | $ | 232,724 | |||||||||
Equity investment in investees | $ | 14,532 | $ | — | $ | 8 | $ | — | $ | 14,540 | |||||||||
Total segment assets | $ | 3,871,729 | $ | 215,342 | $ | 201,678 | $ | (141,400 | ) | $ | 4,147,349 |
2011 (THOUSANDS) | CLECO POWER | MIDSTREAM | RECONCILING ITEMS | ELIMINATIONS | CONSOLIDATED | ||||||||||||||
Revenue | |||||||||||||||||||
Electric operations | $ | 1,051,956 | $ | — | $ | — | $ | — | $ | 1,051,956 | |||||||||
Tolling operations | — | 19,004 | — | — | 19,004 | ||||||||||||||
Other operations | 50,948 | 9 | 2,011 | (6 | ) | 52,962 | |||||||||||||
Electric customer credits | (6,811 | ) | — | — | — | (6,811 | ) | ||||||||||||
Affiliate revenue | 1,389 | 45 | 53,068 | (54,300 | ) | 202 | |||||||||||||
Operating revenue, net | $ | 1,097,482 | $ | 19,058 | $ | 55,079 | $ | (54,306 | ) | $ | 1,117,313 | ||||||||
Depreciation | $ | 115,634 | $ | 5,872 | $ | 1,072 | $ | — | $ | 122,578 | |||||||||
Interest charges | $ | 97,090 | $ | (28,996 | ) | $ | 2,405 | $ | 159 | $ | 70,658 | ||||||||
Interest income | $ | 630 | $ | 25 | $ | 77 | $ | 159 | $ | 891 | |||||||||
Equity income from investees, before tax | $ | — | $ | 62,053 | $ | (3 | ) | $ | — | $ | 62,050 | ||||||||
Federal and state income tax expense (benefit) | $ | 69,409 | $ | 44,637 | $ | (11,149 | ) | $ | — | $ | 102,897 | ||||||||
Segment profit (1) | $ | 142,835 | $ | 42,792 | $ | 10,221 | $ | — | $ | 195,848 | |||||||||
Additions to long-lived assets | $ | 201,980 | $ | 8,437 | $ | 1,278 | $ | — | $ | 211,695 | |||||||||
Equity investment in investees | $ | 14,532 | $ | — | $ | 8 | $ | — | $ | 14,540 | |||||||||
Total segment assets | $ | 3,726,471 | $ | 233,891 | $ | 201,074 | $ | (111,234 | ) | $ | 4,050,202 | ||||||||
(1) Reconciliation of segment profit to consolidated profit: | Segment profit | $ | 195,848 | ||||||||||||||||
Unallocated items: | |||||||||||||||||||
Preferred dividends requirements | 26 | ||||||||||||||||||
Preferred stock redemption costs | 112 | ||||||||||||||||||
Net income applicable to common stock | $ | 195,710 |
2010 (THOUSANDS) | CLECO POWER | MIDSTREAM | RECONCILING ITEMS | ELIMINATIONS | CONSOLIDATED | ||||||||||||||
Revenue | |||||||||||||||||||
Electric operations | $ | 1,086,102 | $ | — | $ | — | $ | — | $ | 1,086,102 | |||||||||
Tolling operations | — | 26,067 | — | — | 26,067 | ||||||||||||||
Other operations | 42,578 | 3 | 1,959 | (11 | ) | 44,529 | |||||||||||||
Electric customer credits | (9,596 | ) | — | — | — | (9,596 | ) | ||||||||||||
Affiliate revenue | 1,371 | 960 | 47,924 | (48,691 | ) | 1,564 | |||||||||||||
Operating revenue, net | $ | 1,120,455 | $ | 27,030 | $ | 49,883 | $ | (48,702 | ) | $ | 1,148,666 | ||||||||
Depreciation | $ | 107,966 | $ | 5,779 | $ | 838 | $ | 1 | $ | 114,584 | |||||||||
Interest charges | $ | 78,731 | $ | 7,140 | $ | 10,551 | $ | (646 | ) | $ | 95,776 | ||||||||
Interest income | $ | 379 | $ | — | $ | 675 | $ | (645 | ) | $ | 409 | ||||||||
Equity income from investees, before tax | $ | — | $ | 38,848 | $ | 1 | $ | — | $ | 38,849 | |||||||||
Gain on toll settlement | $ | — | $ | 148,402 | $ | — | $ | — | $ | 148,402 | |||||||||
Federal and state income tax expense (benefit) | $ | 75,107 | $ | 71,255 | $ | (3,864 | ) | $ | — | $ | 142,498 | ||||||||
Segment profit (loss)(1) | $ | 147,405 | $ | 114,467 | $ | (6,480 | ) | $ | (1 | ) | $ | 255,391 | |||||||
Additions to long-lived assets | $ | 449,052 | $ | 2,113 | $ | 2,056 | $ | — | $ | 453,221 | |||||||||
Equity investment in investees | $ | 13,073 | $ | 73,648 | $ | 11 | $ | — | $ | 86,732 | |||||||||
Total segment assets | $ | 3,795,227 | $ | 316,166 | $ | 401,663 | $ | (351,626 | ) | $ | 4,161,430 | ||||||||
(1) Reconciliation of segment profit to consolidated profit: | Segment profit | $ | 255,391 | ||||||||||||||||
Unallocated items: | |||||||||||||||||||
Preferred dividends requirements | 46 | ||||||||||||||||||
Net income applicable to common stock | $ | 255,345 |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
Note 11 — Electric Customer Credits |
Note 12 — Variable Interest Entities |
(THOUSANDS) | AT DEC. 31, 2010 | ||
Current assets | $ | 7,133 | |
Property, plant, and equipment, net | 203,793 | ||
Total assets | $ | 210,926 | |
Current liabilities | $ | 1,950 | |
Other liabilities | 9,429 | ||
Partners’ capital | 199,547 | ||
Total liabilities and partners’ capital | $ | 210,926 |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
(THOUSANDS) | FOR THE YEAR ENDED DEC. 31, 2011* | ||
Operating revenue | $ | 5,227 | |
Operating expenses | 5,914 | ||
Gain on sale of assets | 71,422 | ||
Other income | 929 | ||
Income before taxes | $ | 71,664 |
FOR THE YEAR ENDED DEC. 31, | |||||||||||
(THOUSANDS) | 2012 | 2011 | 2010 | ||||||||
Cajun | $ | — | $ | 62,053 | $ | 38,848 | |||||
Subsidiaries less than 100% owned by Innovations LLC | — | (3 | ) | 1 | |||||||
Total equity income | $ | — | $ | 62,050 | $ | 38,849 |
AT DEC. 31, | |||||||
INCEPTION TO DATE (THOUSANDS) | 2012 | 2011 | |||||
Purchase price | $ | 12,873 | $ | 12,873 | |||
Cash contributions | 1,659 | 1,659 | |||||
Total equity investment in investee | $ | 14,532 | $ | 14,532 |
AT DEC. 31, | |||||||
(THOUSANDS) | 2012 | 2011 | |||||
Oxbow’s net assets/liabilities | $ | 29,065 | $ | 29,065 | |||
Cleco Power’s 50% equity | $ | 14,532 | $ | 14,532 | |||
Cleco’s maximum exposure to loss | $ | 14,532 | $ | 14,532 |
AT DEC. 31, | |||||||
(THOUSANDS) | 2012 | 2011 | |||||
Current assets | $ | 1,814 | $ | 1,711 | |||
Property, plant, and equipment, net | 23,029 | 23,339 | |||||
Other assets | 4,248 | 4,128 | |||||
Total assets | $ | 29,091 | $ | 29,178 | |||
Current liabilities | $ | 26 | $ | 40 | |||
Other liabilities | — | 73 | |||||
Partners’ capital | 29,065 | 29,065 | |||||
Total liabilities and partners’ capital | $ | 29,091 | $ | 29,178 |
FOR THE YEAR ENDED DEC. 31, | |||||||||||
(THOUSANDS) | 2012 | 2011 | 2010 | ||||||||
Operating revenue | $ | 1,126 | $ | 1,781 | $ | 931 | |||||
Operating expenses | 1,126 | 1,781 | 931 | ||||||||
Income before taxes | $ | — | $ | — | $ | — |
Note 13 — Operating Leases |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
YEAR ENDING DEC. 31, | |||||||||||
(THOUSANDS) | CLECO | CLECO POWER | TOTAL | ||||||||
2013 | $ | 10 | $ | 9,333 | $ | 9,343 | |||||
2014 | 4 | 9,977 | 9,981 | ||||||||
2015 | — | 9,909 | 9,909 | ||||||||
2016 | — | 9,575 | 9,575 | ||||||||
2017 | — | 11,427 | 11,427 | ||||||||
Thereafter | — | 3,757 | 3,757 | ||||||||
Total operating lease payments | $ | 14 | $ | 53,978 | $ | 53,992 |
Note 14 — Litigation, Other Commitments and Contingencies, and Disclosures about Guarantees |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
AT DEC. 31, 2012 | |||||||||||
(THOUSANDS) | FACE AMOUNT | REDUCTIONS | NET AMOUNT | ||||||||
Cleco Corporation | |||||||||||
Guarantee issued to Entergy Mississippi on behalf of Attala | $ | 500 | $ | — | $ | 500 | |||||
Cleco Power | |||||||||||
Obligations under standby letter of credit issued to the Louisiana Department of Labor | 3,725 | — | 3,725 | ||||||||
Total | $ | 4,225 | $ | — | $ | 4,225 |
• | environmental costs that were caused by events occurring before the closing of the transaction, |
• | claims against Cleco Power for liabilities retained by Acadia, |
• | certain conditions of Acadia Unit 1 that were discovered prior to September 30, 2010, and |
• | breach of fundamental representations of Acadia, such as legal existence, ownership of Acadia Unit 1 and valid authorization to dispose of Acadia Unit 1. |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
• | environmental costs that were caused by events occurring before the closing of the transaction, |
• | claims against Entergy Louisiana for liabilities retained by Acadia, |
• | certain conditions of Acadia Unit 2 that were discovered prior to September 30, 2010, and |
• | breach of fundamental representations of Acadia, such as legal existence, ownership of Acadia Unit 2, and valid authorization to dispose of Acadia Unit 2. |
AT DEC. 31, 2012 | |||||||||||||||||||
AMOUNT OF COMMITMENT EXPIRATION PER PERIOD | |||||||||||||||||||
(THOUSANDS) | NET AMOUNT COMMITTED | LESS THAN ONE YEAR | 1-3 YEARS | 3-5 YEARS | MORE THAN 5 YEARS | ||||||||||||||
Off-balance sheet commitments | $ | 4,225 | $ | 3,725 | $ | — | $ | — | $ | 500 | |||||||||
On-balance sheet guarantees | 12,156 | 7,250 | 900 | — | 4,006 | ||||||||||||||
Total | $ | 16,381 | $ | 10,975 | $ | 900 | $ | — | $ | 4,506 |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
YEAR ENDING DEC. 31, | (THOUSANDS) | |||
2013 | $ | 66,657 | ||
2014 | 36,425 | |||
2015 | 14,182 | |||
2016 | 15,673 | |||
2017 | 16,375 | |||
Thereafter | $ | 15,424 | ||
Total long-term purchase obligations | $ | 164,736 |
(THOUSANDS) | CONTRIBUTION | |||
2013 | $ | 50,822 | ||
2014 | 39,059 | |||
2015 | 12,975 | |||
2016 | 11,890 | |||
2017 | 3,292 | |||
Total | $ | 118,038 |
(THOUSANDS) | ||||
Equity contributions, imputed interest rate 6% | ||||
Principal payment schedule above: | $ | 118,038 | ||
Less: unamortized discount | 10,513 | |||
Total | $ | 107,525 |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
AT DEC. 31, | ||||||||
CLASSES OF PROPERTY (THOUSANDS) | 2012 | 2011 | ||||||
Barges | $ | 11,350 | $ | 22,050 | ||||
Less: accumulated amortization | — | 6,567 | ||||||
Net capital leases | $ | 11,350 | $ | 15,483 |
(THOUSANDS) | ||||
Years ending December 31, | ||||
2013 | $ | 3,725 | ||
2014 | 3,725 | |||
2015 | 3,725 | |||
2016 | 3,735 | |||
2017 | 2,480 | |||
Total minimum lease payments | $ | 17,390 | ||
Less: executory costs | 4,347 | |||
Net minimum lease payments | $ | 13,043 | ||
Less: amount representing interest | 1,693 | |||
Present value of net minimum lease payments | $ | 11,350 | ||
Current liabilities | $ | 2,171 | ||
Non-current liabilities | $ | 9,179 |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
Note 15 — Affiliate Transactions |
FOR THE YEAR ENDED DEC. 31, | |||||||||||
(THOUSANDS) | 2012 | 2011 | 2010 | ||||||||
Acadia | $ | — | $ | 202 | $ | 1,564 | |||||
Total | $ | — | $ | 202 | $ | 1,564 |
FOR THE YEAR ENDED DEC. 31, | |||||||||||
(THOUSANDS) | 2012 | 2011 | 2010 | ||||||||
Support Group | |||||||||||
Other operations | $ | 43,171 | $ | 43,124 | $ | 39,633 | |||||
Maintenance | $ | 1,437 | $ | 1,625 | $ | 1,650 | |||||
Taxes other than income taxes | $ | (54 | ) | $ | (1 | ) | $ | (5 | ) | ||
Other expenses | $ | 932 | $ | 1,244 | $ | 1,050 | |||||
Evangeline | |||||||||||
Purchased power expense | $ | 25,559 | $ | — | $ | — | |||||
Other expenses | $ | — | $ | 4 | $ | — | |||||
Diversified Lands | |||||||||||
Other expenses | $ | — | $ | 82 | $ | 19 |
FOR THE YEAR ENDED DEC. 31, | |||||||||||
(THOUSANDS) | 2012 | 2011 | 2010 | ||||||||
Affiliate revenue | |||||||||||
Support Group | $ | 1,335 | $ | 1,349 | $ | 1,332 | |||||
Midstream | 14 | 14 | 13 | ||||||||
Evangeline | 23 | 26 | 26 | ||||||||
Total affiliate revenue | $ | 1,372 | $ | 1,389 | $ | 1,371 | |||||
Other income | |||||||||||
Cleco Corporation | $ | — | $ | 10 | $ | 118 | |||||
Support Group | — | — | 4 | ||||||||
Evangeline | 11 | 12 | 24 | ||||||||
Diversified Lands | 17 | 124 | 122 | ||||||||
Perryville | 6 | 4 | 5 | ||||||||
Attala | 6 | 5 | 4 | ||||||||
Total other income | $ | 40 | $ | 155 | $ | 277 | |||||
Total | $ | 1,412 | $ | 1,544 | $ | 1,648 |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
AT DEC. 31, | |||||||||||||||
2012 | 2011 | ||||||||||||||
(THOUSANDS) | ACCOUNTS RECEIVABLE | ACCOUNTS PAYABLE | ACCOUNTS RECEIVABLE | ACCOUNTS PAYABLE | |||||||||||
Cleco Corporation | $ | 139 | $ | 1,140 | $ | 18 | $ | 827 | |||||||
Support Group | 2,777 | 7,528 | 2,207 | 8,066 | |||||||||||
Midstream | 27 | 5 | 24 | 5 | |||||||||||
Evangeline | 6 | 1,401 | 12 | 214 | |||||||||||
Diversified Lands | 42 | 23 | 20 | 3 | |||||||||||
Acadia | — | — | 124 | 196 | |||||||||||
Total | $ | 2,991 | $ | 10,097 | $ | 2,405 | $ | 9,311 |
FOR THE YEAR ENDED DEC. 31, | ||||||
(THOUSANDS) | 2012 | 2011 | ||||
Support Group | $ | 1,881 | $ | 1,844 | ||
Generation Services | — | 220 | ||||
Midstream | 280 | 37 | ||||
Total | $ | 2,161 | $ | 2,101 |
Note 16 — Intangible Asset |
AT DEC. 31, | |||||||
(THOUSANDS) | 2012 | 2011 | |||||
Gross carrying amount | $ | 177,537 | $ | 177,537 | |||
Accumulated amortization | 56,992 | 43,942 | |||||
Intangible asset | $ | 120,545 | $ | 133,595 |
(THOUSANDS) | ||||
Expected amortization expense | ||||
2013 | $ | 14,026 | ||
2014 | $ | 14,931 | ||
2015 | $ | 15,876 | ||
2016 | $ | 16,864 | ||
2017 | $ | 18,009 | ||
Thereafter | $ | 40,839 |
Note 17 — Evangeline Transactions |
• | the tolling agreement was a market-based tolling agreement, for Coughlin Units 6 and 7, ending on December 31, 2011, with an option for JPMVEC to extend the term through December 31, 2012. The agreement also gave Evangeline the right to terminate its Coughlin Unit 6 obligations prior to the expiration of the term. JPMVEC did not exercise the option to extend the tolling agreement, |
• | $126.6 million of Evangeline’s 8.82% Senior Secured bonds due 2019, owned by JPMVEC, were transferred to Evangeline and subsequently retired and $5.3 million of accrued interest associated with the bonds transferred to Evangeline was eliminated, |
• | JPMVEC paid Evangeline $56.7 million, and |
• | JPMVEC returned Cleco Corporation’s $15.0 million letter of credit issued under the Evangeline Tolling Agreement and the letter of credit was canceled. |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
Note 18 — Acadia Transactions |
• | Cleco Power acquired Acadia Unit 1 and half of the common facilities for $304.0 million, |
• | Cleco Power recognized $78.4 million of deferred taxes on the transaction, |
• | Acadia recognized a gain of $82.0 million, |
• | APH received $6.8 million from third parties in return for APH’s indemnification against the third parties’ 50% share of Acadia’s liabilities and other obligations related to the Cleco Power transaction, and |
• | Cleco Power owns and operates Acadia Unit 1. Prior to April 29, 2011, Cleco Power operated Acadia Unit 2 on behalf of Acadia. On April 29, 2011, Acadia completed its disposition of Acadia Unit 2 to Entergy Louisiana. Cleco Power now operates Acadia Unit 2 on behalf of Entergy Louisiana. |
• | Entergy Louisiana acquired Acadia Unit 2 for $298.8 million, |
• | In exchange for $10.9 million, APH indemnified the third-party owners of Cajun and their affiliates against 50% of Acadia’s liabilities and other obligations related to the Acadia Unit 2 transaction, |
• | APH recognized a gain of $62.0 million, which included $26.2 million of equity income that represents the 2007 investment impairment charge of $45.9 million, partially offset by $19.7 million of capitalized interest during the construction of Acadia, |
• | APH received 100% ownership in Acadia in exchange for its 50% interest in Cajun, and Acadia became a consolidated subsidiary of APH, and |
• | Cleco Power operates Acadia Unit 2 on behalf of Entergy Louisiana. |
Note 19 — Storm Restoration |
Note 20 — Accumulated Other Comprehensive Loss |
Cleco | |||||||||||||||
(THOUSANDS) | NET (LOSS) GAIN ON PRIOR SERVICE COST | POSTRETIREMENT BENEFIT NET LOSS | NET GAIN (LOSS) ON CASH FLOW HEDGES | TOTAL ACCUMULATED OTHER COMPREHENSIVE LOSS | |||||||||||
Balances, Dec. 31, 2009 | $ | (9,794 | ) | $ | (3,602 | ) | $ | 2,105 | $ | (11,291 | ) | ||||
Current-period change | (31 | ) | (4,241 | ) | 3,925 | (347 | ) | ||||||||
Balances, Dec. 31, 2010 | $ | (9,825 | ) | $ | (7,843 | ) | $ | 6,030 | $ | (11,638 | ) | ||||
Current-period change | 1,213 | (1,721 | ) | (15,993 | ) | (16,501 | ) | ||||||||
Balances, Dec. 31, 2011 | $ | (8,612 | ) | $ | (9,564 | ) | $ | (9,963 | ) | $ | (28,139 | ) | |||
Current-period change | 2,117 | (8,682 | ) | 2,334 | (4,231 | ) | |||||||||
Balances, Dec. 31, 2012 | $ | (6,495 | ) | $ | (18,246 | ) | $ | (7,629 | ) | $ | (32,370 | ) |
Cleco Power | |||||||||||||||
(THOUSANDS) | NET (LOSS) GAIN ON PRIOR SERVICE COST | POSTRETIREMENT BENEFIT NET LOSS | NET GAIN (LOSS) ON CASH FLOW HEDGES | TOTAL ACCUMULATED OTHER COMPREHENSIVE (LOSS) GAIN | |||||||||||
Balances, Dec. 31, 2009 | $ | (5,698 | ) | $ | (2,078 | ) | $ | 2,105 | $ | (5,671 | ) | ||||
Current-period change | (381 | ) | (2,607 | ) | 3,925 | 937 | |||||||||
Balances, Dec. 31, 2010 | $ | (6,079 | ) | $ | (4,685 | ) | $ | 6,030 | $ | (4,734 | ) | ||||
Current-period change | 692 | (595 | ) | (15,993 | ) | (15,896 | ) | ||||||||
Balances, Dec. 31, 2011 | $ | (5,387 | ) | $ | (5,280 | ) | $ | (9,963 | ) | $ | (20,630 | ) | |||
Current-period change | 1,160 | (3,285 | ) | 2,334 | 209 | ||||||||||
Balances, Dec. 31, 2012 | $ | (4,227 | ) | $ | (8,565 | ) | $ | (7,629 | ) | $ | (20,421 | ) |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
Note 21 — Miscellaneous Financial Information (Unaudited) |
2012 | |||||||||||||||
(THOUSANDS, EXCEPT PER SHARE AMOUNTS) | 1ST QUARTER | 2ND QUARTER | 3RD QUARTER | 4TH QUARTER | |||||||||||
Operating revenue, net | $ | 222,773 | $ | 240,123 | $ | 297,372 | $ | 233,431 | |||||||
Operating income | $ | 54,294 | $ | 74,243 | $ | 103,347 | $ | 49,766 | |||||||
Net income applicable to common stock | $ | 30,031 | $ | 46,686 | $ | 63,818 | $ | 23,112 | |||||||
Basic net income per average share | $ | 0.50 | $ | 0.77 | $ | 1.06 | $ | 0.38 | |||||||
Diluted net income per average common share | $ | 0.50 | $ | 0.77 | $ | 1.05 | $ | 0.38 | |||||||
Dividends paid per common share | $ | 0.3125 | $ | 0.3125 | $ | 0.3375 | $ | 0.3375 | |||||||
Market sales price per share | |||||||||||||||
High | $ | 40.10 | $ | 42.45 | $ | 45.30 | $ | 43.75 | |||||||
Low | $ | 36.15 | $ | 38.16 | $ | 40.09 | $ | 38.46 |
2011 | |||||||||||||||
(THOUSANDS, EXCEPT PER SHARE AMOUNTS) | 1ST QUARTER | 2ND QUARTER | 3RD QUARTER | 4TH QUARTER | |||||||||||
Operating revenue, net | $ | 253,690 | $ | 272,923 | $ | 351,581 | $ | 239,119 | |||||||
Operating income | $ | 64,518 | $ | 69,581 | $ | 115,500 | $ | 48,647 | |||||||
Net income applicable to common stock | $ | 29,004 | $ | 70,221 | $ | 65,842 | $ | 30,643 | |||||||
Basic net income per average share | $ | 0.48 | $ | 1.16 | $ | 1.09 | $ | 0.51 | |||||||
Diluted net income per average common share | $ | 0.48 | $ | 1.15 | $ | 1.08 | $ | 0.51 | |||||||
Dividends paid per common share | $ | 0.25 | $ | 0.28 | $ | 0.28 | $ | 0.3125 | |||||||
Market sales price per share | |||||||||||||||
High | $ | 34.51 | $ | 35.66 | $ | 36.14 | $ | 38.31 | |||||||
Low | $ | 30.56 | $ | 33.68 | $ | 30.06 | $ | 32.36 |
2012 | |||||||||||||||
(THOUSANDS) | 1ST QUARTER | 2ND QUARTER | 3RD QUARTER | 4TH QUARTER | |||||||||||
Operating revenue, net | $ | 222,620 | $ | 239,967 | $ | 297,212 | $ | 233,269 | |||||||
Operating income | $ | 58,306 | $ | 76,792 | $ | 97,510 | $ | 54,584 | |||||||
Net income | $ | 26,805 | $ | 37,284 | $ | 57,783 | $ | 24,975 | |||||||
Distribution to Cleco Corporation (as sole member) | $ | 30,000 | $ | 10,000 | $ | 18,000 | $ | — |
2011 | |||||||||||||||
(THOUSANDS) | 1ST QUARTER | 2ND QUARTER | 3RD QUARTER | 4TH QUARTER | |||||||||||
Operating revenue, net | $ | 250,623 | $ | 268,464 | $ | 342,296 | $ | 236,099 | |||||||
Operating income | $ | 67,105 | $ | 74,834 | $ | 109,495 | $ | 52,959 | |||||||
Net income | $ | 30,030 | $ | 35,694 | $ | 53,833 | $ | 23,278 | |||||||
Distribution to Cleco Corporation (as sole member) | $ | 50,000 | $ | — | $ | 50,000 | $ | 30,000 |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE |
ITEM 9A. CONTROLS AND PROCEDURES |
ITEM 9B. OTHER INFORMATION |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
PART III |
ITEM 10. DIRECTORS, EXECUTIVE OFFICERS, AND CORPORATE GOVERNANCE OF THE REGISTRANTS |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
NAME OF DIRECTOR | AGES AS OF FEBRUARY 19, 2013 |
J. Patrick Garrett | Age 69; Elected 1981 Retired President and Chief Executive Officer, Windsor Food Company, Ltd., Houston, TX Chairman of the Board and Chairman of the Nominating/Governance Committee |
Elton R. King | Age 66; Elected 1999 Retired President of Network and Carrier Services Group, BellSouth Telecommunications, Inc., Atlanta, GA. Also retired President and Chief Executive Officer of Visual Networks, Inc. Member of the Finance and Nominating/Governance Committees |
Logan W. Kruger | Age 62; Elected 2008 President and CEO, SUN Gold Limited, Jersey, Channel Islands United Kingdom. Former President, Chief Executive Officer and Director of Century Aluminum Company, Monterey, CA Member of the Audit and Compensation Committees |
William L. Marks | Age 69; Elected 2001 Retired Chairman and Chief Executive Officer, Whitney Holding Corporation and Whitney National Bank, New Orleans, LA Chairman of the Finance Committee and member of the Compensation Committee |
Peter M. Scott III | Age 63; Elected 2009 Retired Executive Vice President and Chief Financial Officer, Progress Energy, Inc., Raleigh, NC. Also retired President and Chief Executive Officer of Progress Energy Service Company, LLC Chairman of the Audit Committee and member of the Compensation Committee |
Shelley Stewart Jr. | Age 59; Elected 2010 Vice President, Sourcing and Logistics/Chief Procurement Officer, E.I. du Pont de Nemours & Company, Wilmington, DE; former Senior Vice President, Operational Excellence & Chief Procurement Officer, Tyco International Limited, Princeton, NJ Member of the Audit and Nominating/Governance Committees |
William H. Walker Jr. | Age 67; Elected 1996 Retired Chairman, Howard Weil, Inc., New Orleans, LA Chairman of the Compensation Committee and member of the Finance and Nominating/Governance Committees |
Bruce A. Williamson | Age 53; Elected 2011 President and Chief Executive Officer, Cleco Corporation, Pineville, LA since July 2011 Chairman, President and Chief Executive Officer, Dynegy, Inc. from 2004 to 2011 |
ITEM 11. EXECUTIVE COMPENSATION |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS |
PLAN CATEGORY | NUMBER OF SECURITIES TO BE ISSUED UPON EXERCISE OF OUTSTANDING OPTIONS, WARRANTS OR RIGHTS | WEIGHTED-AVERAGE EXERCISE PRICE OF OUTSTANDING OPTIONS, WARRANTS AND RIGHTS | NUMBER OF SECURITIES REMAINING AVAILABLE FOR FUTURE ISSUANCE UNDER EQUITY COMPENSATION PLANS (EXCLUDING SECURITIES REFLECTED IN COLUMN (a)) | ||||||||
(a) | (b) | (c) | |||||||||
Equity compensation plans approved by security holders | |||||||||||
ESPP | 2,188 | (1) | $ | 38.01 | 418,527 | ||||||
LTICP | — | $ | — | 1,635,384 | (2) | ||||||
Total | 2,188 | $ | 38.01 | 2,053,911 |
ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE |
ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
PART IV |
ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES | ||
FORM 10-K ANNUAL REPORT | ||
Financial Statement Schedules other than those shown in the above index are omitted because they are either not required or are not applicable or the required information is shown in the Consolidated Financial Statements and Notes thereto | ||
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
CLECO | SEC FILE OR REGISTRATION NUMBER | REGISTRATION STATEMENT OR REPORT | EXHIBIT NUMBER | ||
3(a)(1) | Amended and Restated Articles of Incorporation of the Company, dated November 2, 2010 | 1-15759 | 8-K(11/2/10) | 3.1 | |
* | 3(b)(1) | Bylaws of Cleco Corporation, revised effective January 24, 2013 | |||
4(a)(1) | Indenture of Mortgage dated as of July 1, 1950, between Cleco Power (as successor) and First National Bank of New Orleans, as Trustee | 1-5663 | 10-K(1997) | 4(a)(1) | |
4(a)(2) | Eighteenth Supplemental Indenture dated as of December 1, 1982, to Exhibit 4(a)(1) | 1-5663 | 10-K(1993) | 4(a)(8) | |
4(a)(3) | Nineteenth Supplemental Indenture dated as of January 1, 1983, to Exhibit 4(a)(1) | 1-5663 | 10-K(1993) | 4(a)(9) | |
4(a)(4) | Twenty-Sixth Supplemental Indenture dated as of March 15, 1990, to Exhibit 4(a)(1) | 1-5663 | 8-K(3/90) | 4(a)(27) | |
4(b)(1) | Indenture between Cleco Power (as successor) and Bankers Trust Company, as Trustee, dated as of October 1, 1988 | 33-24896 | S-3(10/11/88) | 4(b) | |
4(b)(2) | Agreement Appointing Successor Trustee dated as of April 1, 1996, by and among Central Louisiana Electric Company, Inc., Bankers Trust Company, and The Bank of New York | 333-02895 | S-3(4/29/96) | 4(a)(2) | |
4(b)(3) | First Supplemental Indenture, dated as of December 1, 2000, between Cleco Utility Group Inc. and the Bank of New York | 333-52540 | S-3/A(1/26/01) | 4(a)(2) | |
4(b)(4) | Second Supplemental Indenture, dated as of January 1, 2001, between Cleco Power LLC and The Bank of New York | 333-52540 | S-3/A(1/26/01) | 4(a)(3) | |
4(b)(5) | Third Supplemental Indenture, dated as of April 26, 2001, between Cleco Power LLC and the Bank of New York | 1-5663 | 8-K(4/26/01) | 4(a) | |
4(b)(6) | Sixth Supplemental Indenture, dated as of April 28, 2003, between Cleco Power LLC and the Bank of New York providing for the issuance of $75,000,000 principal amount of 5.375% Notes due May 1, 2013 | 1-5663 | 8-K(4/28/03) | 4.1 | |
4(b)(7) | Seventh Supplemental Indenture, dated as of July 6, 2005, between Cleco Power LLC and the Bank of New York Trust Company, N.A. | 1-5663 | 8-K(7/6/05) | 4.1 | |
4(b)(8) | Eighth Supplemental Indenture, dated as of November 30, 2005, between Cleco Power LLC and the Bank of New York Trust Company, N.A. | 1-5663 | 8-K(11/28/05) | 4.1 | |
4(b)(9) | Ninth Supplemental Indenture, dated as of June 3, 2008, between Cleco Power LLC and The Bank of New York Trust Company, N.A. | 1-5663 | 8-K(6/2/08) | 4.1 | |
4(b)(10) | Tenth Supplemental Indenture, dated as of November 13, 2009, between Cleco Power LLC and The Bank of New York Mellon Trust Company, N.A. (as successor trustee) | 1-5663 | 8-K(11/12/09) | 4.1 | |
4(b)(11) | Eleventh Supplemental Indenture, dated as of November 15, 2010, between Cleco Power LLC and The Bank of New York Mellon Trust Company, N.A. (as successor trustee) | 1-5663 | 8-K(11/15/10) | 4.1 | |
4(c) | Agreement Under Regulation S-K Item 601(b)(4)(iii)(A) | 1-5663 | 10-Q(9/99) | 4(c) | |
** | 10(a)(1) | 2000 Long-Term Incentive Compensation Plan | 333-71643-01 | 2000 Proxy Statement(3/00) | A |
** | 10(a)(2) | 2000 Long-Term Incentive Compensation Plan, Amendment Number 1, Effective as of December 12, 2003 | 1-15759 | 10-Q(3/05) | 10(a) |
** | 10(a)(3) | 2000 Long-Term Incentive Compensation Plan, Amendment Number 2, Effective as of July 23, 2004 | 1-15759 | 10-Q(9/04) | 10(a) |
** | 10(a)(4) | 2000 Long-Term Incentive Compensation Plan, Amendment Number 3, Dated as of January 28, 2005 | 1-15759 | 10-Q(3/05) | 10(b) |
** | 10(a)(5) | 2000 Long-Term Incentive Compensation Plan, Amendment Number 4, Dated as of November 4, 2008 | 1-15759 | 10-K(2008) | 10(a)(6) |
** | 10(a)(6) | 2000 Long-Term Incentive Compensation Plan, Amendment Number 5, Dated as of December 8, 2008 | 1-15759 | 8-K(12/9/08) | 10.1 |
** | 10(a)(7) | 2000 Long-Term Incentive Compensation Plan, Administrative Procedure No. 1 | 1-15759 | 10-K(2005) | 10(a)(6) |
** | 10(a)(8) | 2010 Long-Term Incentive Compensation Plan, effective as of January 1, 2010 | 1-15759 | 2009 Proxy Statement (3/12/09) | C |
** | 10(a)(9) | Cleco Corporation 2010 Long-Term Incentive Compensation Plan Amendment, effective October 28, 2011 | 1-15759 | 10-Q(9/11) | 10.4 |
** | 10(a)(10) | Form of Notice and Acceptance of Directors’ Grant of Nonqualified Stock Options under Cleco’s 2000 Long-Term Incentive Compensation Plan | 1-15759 | 10-Q(6/00) | 10(a) |
** | 10(a)(11) | Form of Notice and Acceptance of Grant of Nonqualified Stock Options, with fixed option price under Cleco’s 2000 Long-Term Incentive Compensation Plan | 1-15759 | 10-Q(6/00) | 10(c) |
** | 10(a)(12) | Form of Notice and Acceptance of Grant of Nonqualified Stock Options, with variable option price under Cleco’s 2000 Long-Term Incentive Compensation Plan | 1-15759 | 10-Q(6/00) | 10(d) |
** | 10(a)(13) | Form of Notice and Acceptance of Director’s Grant of Nonqualified Stock Option | 1-5663 | 10-Q(9/01) | 10 |
10(a)(14) | Form of Notice and Acceptance of Grant of Restricted Stock under Cleco’s 2000 Long-Term Incentive Compensation Plan | 1-15759 | 10-Q(6/00) | 10(b) | |
10(a)(15) | Form of Notice and Acceptance of Grant of Restricted Stock and Allocation of Opportunity Shares | 1-15759 | 10-Q(9/05) | 10(c) | |
10(a)(16) | Form of Notice and Acceptance of Grant of Restricted Stock and Common Stock Equivalent Units and Allocation of Opportunity Shares and Opportunity Common Stock Equivalent Units – 2007 Performance Cycle | 1-15759 | 10-K(2006) | 10(n)(3) | |
10(a)(17) | Form of Notice and Acceptance of Grant of Restricted Stock and Common Stock Equivalent Units and Allocation of Opportunity Shares and Opportunity Common Stock Equivalent Units – 2008 Performance Cycle | 1-15759 | 10-K(2007) | 10(m)(4) | |
10(a)(18) | Form of Notice and Acceptance of Grant of Restricted Stock and Common Stock Equivalent Units and Allocation of Opportunity Shares and Opportunity Common Stock Equivalent Units – 2009 Performance Cycle | 1-15759 | 10-K(2008) | 10(m)(4) | |
10(a)(19) | Form of Notice and Acceptance of Grant of Restricted Stock and Common Stock Equivalent Units and Allocation of Opportunity Shares and Opportunity Common Stock Equivalent Units – 2010 Performance Cycle | 1-15759 | 10-K(2009) | 10(g)(2) | |
10(a)(20) | Form of Notice and Acceptance of Grant of Restricted Stock and Common Stock Equivalent Units and Allocation of Opportunity Shares and Opportunity Common Stock Equivalent Units – 2011 Performance Cycle | 1-15759 | 10-K(2010) | 10(a)(19) | |
10(a)(21) | Form of Notice and Acceptance of Grant of Restricted Stock and Common Stock Equivalent Units and Allocation of Opportunity Shares and Opportunity Common Stock Equivalent Units – 2012 Performance Cycle | 1-15759 | 10-K(2011) | 10(a)(23) | |
* | 10(a)(22) | Form of Notice and Acceptance of Grant of Restricted Stock and Common Stock Equivalent Units and Allocation of Opportunity Shares and Opportunity Common Stock Equivalent Units – 2013 Performance Cycle | |||
10(a)(23) | Form of Notice and Acceptance of Grant of Restricted Stock under Cleco Corporation 2010 Long-Term Incentive Compensation Plan | 1-15759 | 8-K(2/1/11) | 10.1 | |
10(a)(24) | Notice and Acceptance of Award of Restricted Stock under Cleco Corporation 2010 Long-Term Incentive Compensation Plan, by and between Cleco Corporation and Michael H. Madison | 1-15759 | 8-K(2/1/11) | 10.2 |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
CLECO | SEC FILE OR REGISTRATION NUMBER | REGISTRATION STATEMENT OR REPORT | EXHIBIT NUMBER | ||
** | 10(a)(25) | Notice and Acceptance of Award of Restricted Stock under Cleco Corporation 2010 Long-Term Incentive Compensation Plan, by and between Cleco Corporation and Bruce A. Williamson | 1-15759 | 10-Q(3/12) | 10.1 |
** | 10(a)(26) | Notice and Acceptance of Award of Restricted Stock under Cleco Corporation 2010 Long-Term Incentive Compensation Plan, by and between Cleco Corporation and Bruce A. Williamson | 1-15759 | 8-K(1/24/13) | 10.1 |
* | 10(a)(27) | Notice and Acceptance of Award of Restricted Stock under Cleco Corporation 2010 Long-Term Incentive Compensation Plan, by and between Darren J. Olagues, Judy P. Miller, and Keith D. Crump | |||
** | 10(b)(1) | Deferred Compensation Plan for Directors | 1-5663 | 10-K(1992) | 10(n) |
** | 10(b)(2) | Summary of Director Compensation, Benefits and Policies, last revised on July 29, 2011 | 1-15759 | 10-Q(9/11) | 10.3 |
** | 10(c)(1) | Supplemental Executive Retirement Plan | 1-5663 | 10-K(1992) | 10(o)(1) |
** | 10(c)(2) | First Amendment to Supplemental Executive Retirement Plan effective July 1, 1999 | 1-15759 | 10-K(2003) | 10(e)(1)(a) |
** | 10(c)(3) | Second Amendment to Supplemental Executive Retirement Plan dated July 28, 2000 | 1-15759 | 10-K(2003) | 10(e)(1)(b) |
** | 10(c)(4) | Supplemental Executive Retirement Plan Amended and Restated January 1, 2009 | 1-15759 | 10-K(2008) | 10(f)(4) |
** | 10(c)(5) | Supplemental Executive Retirement Plan (Amended and Restated January 1, 2009), Amendment No. 1 | 1-15759 | 8-K(12/9/08) | 10.3 |
** | 10(c)(6) | Supplemental Executive Retirement Trust dated December 13, 2000 | 1-15759 | 10-K(2003) | 10(e)(1)(c) |
** | 10(c)(7) | Supplemental Executive Retirement Plan Participation Agreement between Cleco Corporation and Dilek Samil | 1-15759 | 10-K(2002) | 10(z)(1) |
** | 10(c)(8) | Supplemental Executive Retirement Plan Participation Agreement between Cleco Corporation and Michael H. Madison | 1-15759 | 10-K(2004) | 10(v)(3) |
** | 10(c)(9) | Cleco Corporation Supplemental Executive Retirement Plan Amendment, effective October 28, 2011 | 1-15759 | 10-Q(9/11) | 10.2 |
** | 10(d)(1) | Executive Employment Agreement Compliance Addendum – Code Section 409A, effective January 1, 2009 | 1-15759 | 8-K(12/9/08) | 10.4 |
** | 10(d)(2) | Form of Cleco Corporation Executive Employment Agreement (Level 1) | 1-15759 | 8-K(1/9/09) | 10.1 |
** | 10(d)(3) | Separation Agreement between Cleco Corporation and Dilek Samil, dated October 22, 2010 | 1-15759 | 8-K(10/22/10) | 10.1 |
** | 10(d)(4) | Cleco Corporation Executive Severance Plan, effective October 28, 2011 | 1-15759 | 10-Q(9/11) | 3.1 |
** | 10(d)(5) | Executive Employment Agreement, dated April 21, 2011, by and between Cleco Corporation and Bruce A. Williamson | 1-15759 | 8-K(4/27/11) | 10.1 |
** | 10(d)(6) | Retirement Agreement, dated April 21, 2011, by and between Cleco Corporation and Michael H. Madison | 1-15759 | 8-K(4/27/11) | 10.2 |
** | 10(d)(7) | Waiver of 2012 salary increases by Bruce A. Williamson, President and Chief Executive Officer | 1-15759 | 10-K(2011) | 10(e)(14) |
10(e) | 401(k) Savings and Investment Plan Trust Agreement dated as of August 1, 1997, between UMB Bank, N.A. and Cleco | 1-5663 | 10-K(1997) | 10(m) | |
10(f)(1) | Cleco Corporation Employee Stock Purchase Plan | 333-44364 | S-8(8/23/00) | 4.3 | |
10(f)(2) | Employee Stock Purchase Plan, Amendment No. 1, dated January 22, 2004 | 1-15759 | 10-K(2003) | 10(s)(1) | |
10(f)(3) | Employee Stock Purchase Plan, Amendment No. 2, effective as of January 1, 2006 | 1-15759 | 10-Q(6/05) | 10(a) | |
10(f)(4) | Cleco Corporation Pay for Performance Plan | 1-15759 | 10-K(2011) | 10(g)(4) | |
* | 10(f)(5) | Cleco Corporation Pay for Performance Plan, As Amended and Restated December 3, 2012 | |||
** | 10(g)(1) | Cleco Corporation Deferred Compensation Plan | 333-59696 | S-8(4/27/01) | 4.3 |
** | 10(g)(2) | First Amendment to Cleco Corporation Deferred Compensation Plan | 1-15759 | 10-K(2008) | 10(n)(5) |
** | 10(g)(3) | Cleco Corporation Deferred Compensation Plan, Corrective Section 409A Amendment | 1-15759 | 8-K(12/9)08) | 10.2 |
10(g)(4) | Deferred Compensation Trust dated January 2001 | 1-15759 | 10-K(2003) | 10(u) | |
10(g)(5) | Cleco Corporation Deferred Compensation Plan Amendment, effective October 28, 2011 | 1-15759 | 10-Q(9/11) | 10.5 | |
10(h)(1) | Credit Agreement dated as of November 23, 2010 by and among Cleco Corporation, JPMorgan Chase Bank, N.A., as Administrative Agent, and the lenders and other parties thereto | 1-15759 | 8-K(11/30/10) | 10.1 | |
10(h)(2) | Loan Agreement dated as of February 19, 2010, among Cleco Corporation, JPMorgan Chase Bank, N.A., as Administrative Agent, and the lenders party thereto | 1-15759 | 10-K(2009) | 10(j)(3) | |
10(h)(3) | Amendment No. 1 Dated as of January 27, 2011 to Loan Agreement Dated as of February 19, 2010 | 1-15759 | 10-K(2010) | 10(i)(3) | |
10(h)(4) | First Amendment, dated as of October 7, 2011, to Credit Agreement dated as of November 23, 2010 by and among Cleco Corporation, JPMorgan Chase Bank, N.A., as Administrative Agent, and the lenders and other parties thereto | 1-15759 | 8-K(10/14/11) | 10.1 | |
10(h)(5) | Note Purchase Agreement dated May 8, 2012 by and among Cleco Power and the Purchasers listed on the signature pages thereto | 1-05663 | 8-K(05/09/12) | 10.1 | |
10(i) | Acadia Power Partners, LLC – Third Amended and Restated Limited Liability Company Agreement dated February 23, 2010 | 1-5759 | 10-K(2010) | 10(j) | |
* | 12(a) | Computation of Ratios of Earnings (loss) to Fixed Charges and of Earnings (loss) to Combined Fixed Charges and Preferred Stock Dividends | |||
* | 21 | Subsidiaries of the Registrant | |||
* | 23(a) | Consent of Independent Registered Public Accounting Firm | |||
* | 24(a) | Power of Attorney from each Director of Cleco Corporation whose signature is affixed to this Form 10-K for the fiscal year ended December 31, 2012 | |||
* | 31.1 | CEO Certification in accordance with section 302 of the Sarbanes-Oxley Act of 2002 | |||
* | 31.2 | CFO Certification in accordance with section 302 of the Sarbanes-Oxley Act of 2002 | |||
* | 32.1 | CEO Certification pursuant to section 906 of the Sarbanes-Oxley Act of 2002 | |||
* | 32.2 | CFO Certification pursuant to section 906 of the Sarbanes-Oxley Act of 2002 | |||
* | 95 | Mine Safety Disclosures | |||
* | 101.INS | XBRL Instance Document | |||
* | 101.SCH | XBRL Taxonomy Extension Schema | |||
* | 101.CAL | XBRL Taxonomy Extension Calculation Linkbase | |||
* | 101.DEF | XBRL Taxonomy Extension Definition Linkbase | |||
* | 101.LAB | XBRL Taxonomy Extension Label Linkbase | |||
* | 101.PRE | XBRL Taxonomy Extension Presentation Linkbase |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
CLECO POWER | SEC FILE OR REGISTRATION NUMBER | REGISTRATION STATEMENT OR REPORT | EXHIBIT NUMBER | ||
3(a) | First Amended and Restated Articles of Organization of Cleco Power LLC, dated April 30, 2010 | 1-5663 | 10-Q(3/10) | 3.2 | |
3(b) | First Amended and Restated Operating Agreement of Cleco Power LLC, dated April 30, 2010 | 1-5663 | 10-Q(3/10) | 3.3 | |
4(a)(1) | Indenture of Mortgage dated as of July 1, 1950, between the Company and First National Bank of New Orleans, as Trustee | 1-5663 | 10-K(1997) | 4(a)(1) | |
4(a)(2) | Eighteenth Supplemental Indenture dated as of December 1, 1982, to Exhibit 4(a)(1) | 1-5663 | 10-K(1993) | 4(a)(8) | |
4(a)(3) | Nineteenth Supplemental Indenture dated as of January 1, 1983, to Exhibit 4(a)(1) | 1-5663 | 10-K(1993) | 4(a)(9) | |
4(a)(4) | Twenty-Sixth Supplemental Indenture dated as of March 15, 1990, to Exhibit 4(a)(1) | 1-5663 | 8-K(3/90) | 4(a)(27) | |
4(b)(1) | Indenture between the Company and Bankers Trust Company, as Trustee, dated as of October 1, 1988 | 33-24896 | S-3(10/11/88) | 4(b) | |
4(b)(2) | Agreement Appointing Successor Trustee dated as of April 1, 1996, by and among Central Louisiana Electric Company, Inc., Bankers Trust Company, and The Bank of New York | 333-02895 | S-3(4/29/96) | 4(a)(2) | |
4(b)(3) | First Supplemental Indenture, dated as of December 1, 2000, between Cleco Utility Group Inc. and the Bank of New York | 333-52540 | S-3/A(1/26/01) | 4(a)(2) | |
4(b)(4) | Second Supplemental Indenture, dated as of January 1, 2001, between Cleco Power LLC and The Bank of New York | 333-52540 | S-3/A(1/26/01) | 4(a)(3) | |
4(b)(5) | Third Supplemental Indenture, dated as of April 26, 2001, between Cleco Power LLC and the Bank of New York | 1-5663 | 8-K(4/26/01) | 4(a) | |
4(b)(6) | Sixth Supplemental Indenture, dated as of April 28, 2003, between Cleco Power LLC and the Bank of New York providing for the issuance of $75,000,000 principal amount of 5.375% Notes due May 1, 2013 | 1-5663 | 8-K(4/28/03) | 4.1 | |
4(b)(7) | Seventh Supplemental Indenture, dated as of July 6, 2005, between Cleco Power LLC and the Bank of New York Trust Company, N.A. | 1-5663 | 8-K(7/6/05) | 4.1 | |
4(b)(8) | Eighth Supplemental Indenture, dated as of November 30, 2005, between Cleco Power LLC and the Bank of New York Trust Company, N.A. | 1-5663 | 8-K(11/28/05) | 4.1 | |
4(b)(9) | Ninth Supplemental Indenture, dated as of June 3, 2008, between Cleco Power LLC and The Bank of New York Trust Company, N.A. | 1-5663 | 8-K(6/2/08) | 4.1 | |
4(b)(10) | Tenth Supplemental Indenture, dated as of November 13, 2009, between Cleco Power LLC and The Bank of New York Mellon Trust Company, N.A. (as successor trustee) | 1-5663 | 8-K(11/12/09) | 4.1 | |
4(b)(11) | Eleventh Supplemental Indenture, dated as of November 15, 2010, between Cleco Power LLC and The Bank of New York Mellon Trust Company, N.A. (as successor trustee) | 1-5663 | 8-K(11/15/10) | 4.1 | |
4(c) | Agreement Under Regulation S-K Item 601(b)(4)(iii)(A) | 333-71643-01 | 10-Q(9/99) | 4(c) | |
4(d) | Loan Agreement, dated as of November 1, 2006, between Cleco Power LLC and the Rapides Finance Authority | 1-5663 | 8-K(11/27/06) | 4.1 | |
4(e) | Loan Agreement, dated as of November 1, 2007, between Cleco Power LLC and the Rapides Finance Authority | 1-5663 | 8-K(11/20/07) | 4.1 | |
4(f) | Loan Agreement, dated as of October 1, 2008, between Cleco Power LLC and the Rapides Finance Authority | 1-5663 | 10-Q(3/10) | 4.1 | |
4(g) | Loan Agreement, dated as of December 1, 2008, between Cleco Power LLC and the Louisiana Public Facilities Authority | 1-5663 | 10-Q(3/10) | 4.2 | |
** | 10(a)(1) | Supplemental Executive Retirement Plan | 1-5663 | 10-K(1992) | 10(o)(1) |
** | 10(a)(2) | Form of Cleco Corporation Executive Employment Agreement (Level 1) | 1-15759 | 8-K(1/9/09) | 10.1 |
10(b)(1) | 401(k) Savings and Investment Plan Trust Agreement dated as of August 1, 1997, between UMB Bank, N.A. and the Company | 1-5663 | 10-K(1997) | 10(m) | |
10(b)(2) | 401(k) Savings and Investment Plan, Stock Trust Agreement, Amendment Number 1, Effective January 1, 1999 | 1-5663 | 10-K(2009) | 10(b)(3) | |
10(b)(3) | 401(k) Savings and Investment Plan, Stock Trust Agreement, Amendment Number 2, Effective January 1, 2004 | 1-5663 | 10-Q(6/04) | 10(b) | |
10(b)(4) | 401(k) Savings and Investment Plan, Stock Trust Agreement, Amendment Number 3, Effective October 1, 2005 | 1-5663 | 10-Q(9/05) | 10(e) | |
10(b)(5) | 401(k) Savings and Investment Plan, Stock Trust Agreement, Amendment Number 4 (designated as Amendment Number 3 in exhibit 10(b), Effective January 1, 2007 | 1-5663 | 10-Q(3/07) | 10(b) | |
10(b)(6) | 401(k) Savings and Investment Plan, Amended and Restated Generally Effective November 1, 2010 | 1-5663 | 10-K(2010) | 10(b)(14) | |
10(b)(7) | 401(k) Savings and Investment Plan, As Amended and Restated Effective November 1, 2010, Amendment Number 1 | 1-5663 | 10-K(2011) | 10(b)(7) | |
10(c)(1) | Credit Agreement dated as of November 23, 2010 by and among Cleco Power LLC, JPMorgan Chase Bank, N.A., as Administrative Agent, and the lenders and other parties thereto | 1-5663 | 8-K(11/30/10) | 10.2 | |
10(c)(2) | First Amendment, dated as of October 7, 2011, to Credit Agreement dated as of November 23, 2010 by and among Cleco Power LLC, JPMorgan Chase Bank, N.A., as Administrative Agent, and the lenders and other parties thereto | 1-05663 | 8-K(10/14/11) | 10.2 | |
10(c)(3) | Notes Purchase Agreement dated as of December 16, 2011 among Cleco Power LLC, various financial institutions and Credit Agricole Securities (USA) Inc., JPMorgan Securities Inc. and KeyBanc Capital Markets Inc., as agents. | 1-05663 | 8-K(12/19/11) | 10.1 | |
10(c)(4) | Note Purchase Agreement dated May 8, 2012 by and among Cleco Power and the Purchasers listed on the signature pages thereto | 1-05663 | 8-K(05/09/12) | 10.1 | |
10(d)(1) | Storm Recovery Property Sale Agreement between Cleco Katrina/Rita Hurricane Recovery Funding LLC and Cleco Power LLC, dated March 6, 2008 | 1-5663 | 8-K(3/6/08) | 10.1 | |
10(d)(2) | Storm Recovery Property Servicing Agreement between Cleco Katrina/Rita Hurricane Recovery Funding LLC and Cleco Power LLC, dated March 6, 2008 | 1-5663 | 8-K(3/6/08) | 10.2 | |
10(d)(3) | Administration Agreement between Cleco Katrina/Rita Hurricane Recovery Funding LLC and Cleco Power LLC, dated March 6, 2008 | 1-5663 | 8-K(3/6/08) | 10.3 | |
* | 12(b) | Computation of Ratios of Earnings to Fixed Charges | |||
* | 23(b) | Consent of Independent Registered Public Accounting Firm | |||
* | 31.3 | CEO Certification in accordance with section 302 of the Sarbanes-Oxley Act of 2002 | |||
* | 31.4 | CFO Certification in accordance with section 302 of the Sarbanes-Oxley Act of 2002 | |||
* | 32.3 | CEO Certification pursuant to section 906 of the Sarbanes-Oxley Act of 2002 | |||
* | 32.4 | CFO Certification pursuant to section 906 of the Sarbanes-Oxley Act of 2002 | |||
* | 95 | Mine Safety Disclosures | |||
* | 101.INS | XBRL Instance Document | |||
* | 101.SCH | XBRL Taxonomy Extension Schema | |||
* | 101.CAL | XBRL Taxonomy Extension Calculation Linkbase | |||
* | 101.DEF | XBRL Taxonomy Extension Definition Linkbase | |||
* | 101.LAB | XBRL Taxonomy Extension Label Linkbase | |||
* | 101.PRE | XBRL Taxonomy Extension Presentation Linkbase |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
CLECO CORPORATION (Parent Company Only) | SCHEDULE I |
Condensed Statements of Income | |||||||||||
FOR THE YEAR ENDED DEC. 31, | |||||||||||
(THOUSANDS) | 2012 | 2011 | 2010 | ||||||||
Operating expenses | |||||||||||
Administrative and general | $ | 1,154 | $ | 1,184 | $ | 2,058 | |||||
Other operating expense | 362 | 650 | 447 | ||||||||
Total operating expenses | $ | 1,516 | $ | 1,834 | $ | 2,505 | |||||
Operating loss | (1,516 | ) | (1,834 | ) | (2,505 | ) | |||||
Equity income from subsidiaries, net of tax | 156,783 | 184,951 | 262,629 | ||||||||
Interest, net | (3,350 | ) | (2,874 | ) | (9,988 | ) | |||||
Other income | 2,068 | 4,647 | 1,440 | ||||||||
Other expense | (13 | ) | (2,230 | ) | (713 | ) | |||||
Income before income taxes | 153,972 | 182,660 | 250,863 | ||||||||
Income tax benefit | (9,676 | ) | (13,188 | ) | (4,528 | ) | |||||
Net income | 163,648 | 195,848 | 255,391 | ||||||||
Preferred dividends requirements | — | 26 | 46 | ||||||||
Preferred stock redemption costs | — | 112 | — | ||||||||
Net income applicable to common stock | $ | 163,648 | $ | 195,710 | $ | 255,345 | |||||
The accompanying notes are an integral part of the condensed financial statements. |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
CLECO CORPORATION (Parent Company Only) | SCHEDULE I |
Condensed Statements of Comprehensive Income | |||||||||||
FOR THE YEAR ENDED DEC. 31, | |||||||||||
(THOUSANDS) | 2012 | 2011 | 2010 | ||||||||
Net income | $ | 163,648 | $ | 195,848 | $ | 255,391 | |||||
Other comprehensive loss, net of tax: | |||||||||||
Amortization of postretirement benefit net loss (gain) (net of tax expense of $1,200 in 2012 and $605 in 2011, and tax benefit of $20 in 2010) | 2,117 | 1,213 | (31 | ) | |||||||
Postretirement benefit loss incurred during the year (net of tax benefit of $5,430 in 2012 and $949 in 2011, and tax expense of $131 in 2010) | (8,682 | ) | (1,721 | ) | (4,241 | ) | |||||
Cash flow hedges: | |||||||||||
Net derivative gain (loss) (net of tax expense of $271 in 2012 and $1,823 in 2010, and tax benefit of $9,873 in 2011) | 433 | (15,788 | ) | 2,916 | |||||||
Reclassification of net loss (gain) to interest charges (net of tax expense of $23 in 2012 and $197 in 2010, and tax benefit of $129 in 2011) | 37 | (205 | ) | 315 | |||||||
Reclassification of ineffectiveness to regulatory asset (net of tax expense of $1,166 in 2012) | 1,864 | — | — | ||||||||
Reclassification of net loss to other expense (net of tax expense of $434 in 2010) | — | — | 694 | ||||||||
Total other comprehensive loss, net of tax | (4,231 | ) | (16,501 | ) | (347 | ) | |||||
Comprehensive income, net of tax | $ | 159,417 | $ | 179,347 | $ | 255,044 | |||||
The accompanying notes are an integral part of the condensed financial statements. |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
CLECO CORPORATION (Parent Company Only) | SCHEDULE I |
Condensed Balance Sheets | |||||||
AT DEC. 31, | |||||||
(THOUSANDS) | 2012 | 2011 | |||||
Assets | |||||||
Current assets | |||||||
Cash and cash equivalents | $ | 7,418 | $ | 22,642 | |||
Accounts receivable - affiliate | 9,455 | 13,386 | |||||
Other accounts receivable | 1 | 1 | |||||
Taxes receivable, net | 30,920 | 8,431 | |||||
Accumulated deferred federal and state income taxes, net | — | 7,153 | |||||
Cash surrender value of life insurance policies | 36,504 | 30,639 | |||||
Total current assets | 84,298 | 82,252 | |||||
Equity investment in investees | 1,497,788 | 1,392,693 | |||||
Accumulated deferred federal and state income taxes, net | 91,359 | 35,675 | |||||
Other deferred charges | 1,721 | 3,414 | |||||
Total assets | $ | 1,675,166 | $ | 1,514,034 | |||
Liabilities and shareholders’ equity | |||||||
Liabilities | |||||||
Current liabilities | |||||||
Accounts payable | $ | 3,392 | $ | 86 | |||
Accounts payable - affiliate | 55,432 | 13,739 | |||||
Accumulated deferred federal and state income taxes, net | 2,926 | — | |||||
Other current liabilities | 10,363 | 8,817 | |||||
Total current liabilities | 72,113 | 22,642 | |||||
Tax credit fund investment, net | 78,840 | 61,507 | |||||
Other deferred credits | — | 28 | |||||
Long-term debt | 25,000 | 10,000 | |||||
Total liabilities | 175,953 | 94,177 | |||||
Commitments and Contingencies (Note 5) | |||||||
Shareholders’ equity | |||||||
Common shareholders’ equity | |||||||
Common stock, $1 par value, authorized 100,000,000 shares, issued 60,961,570 and 60,702,342 shares and outstanding 60,355,545 and 60,291,939 shares at December 31, 2012 and 2011, respectively | 60,962 | 60,702 | |||||
Premium on common stock | 416,619 | 409,904 | |||||
Retained earnings | 1,075,074 | 990,605 | |||||
Treasury stock, at cost, 606,025 and 410,403 shares at December 31, 2012 and 2011, respectively | (21,072 | ) | (13,215 | ) | |||
Accumulated other comprehensive loss | (32,370 | ) | (28,139 | ) | |||
Total shareholders’ equity | 1,499,213 | 1,419,857 | |||||
Total liabilities and shareholders’ equity | $ | 1,675,166 | $ | 1,514,034 | |||
The accompanying notes are an integral part of the condensed financial statements. |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
CLECO CORPORATION (Parent Company Only) | SCHEDULE I |
Condensed Statements of Cash Flows | |||||||||||
FOR THE YEAR ENDED DEC. 31, | |||||||||||
(THOUSANDS) | 2012 | 2011 | 2010 | ||||||||
Operating activities | |||||||||||
Net cash provided by operating activities | $ | 79,606 | $ | 175,624 | $ | 174,912 | |||||
Investing activities | |||||||||||
Additions to property, plant, and equipment, net | — | — | (152,067 | ) | |||||||
Contributions to tax credit fund | (59,645 | ) | (43,921 | ) | (35,871 | ) | |||||
Return of equity investment in tax credit fund | 37,652 | 33,430 | — | ||||||||
Return of equity investment in investees | — | 89,654 | — | ||||||||
Other investing | (2,973 | ) | (1,232 | ) | (2,900 | ) | |||||
Net cash (used in) provided by investing activities | (24,966 | ) | 77,931 | (190,838 | ) | ||||||
Financing activities | |||||||||||
Issuance of short-term debt | — | — | 150,000 | ||||||||
Retirement of short-term debt | — | (150,000 | ) | — | |||||||
Draws on credit facility | 25,000 | 35,000 | 20,000 | ||||||||
Payments on credit facility | (10,000 | ) | (40,000 | ) | (100,000 | ) | |||||
Repurchase of common stock | (8,007 | ) | (13,009 | ) | — | ||||||
Dividends paid on common stock | (78,844 | ) | (68,023 | ) | (58,988 | ) | |||||
Other financing | 1,987 | (201 | ) | 3,154 | |||||||
Net cash (used in) provided by financing activities | (69,864 | ) | (236,233 | ) | 14,166 | ||||||
Net (decrease) increase in cash and cash equivalents | (15,224 | ) | 17,322 | (1,760 | ) | ||||||
Cash and cash equivalents at beginning of period | 22,642 | 5,320 | 7,080 | ||||||||
Cash and cash equivalents at end of period | $ | 7,418 | $ | 22,642 | $ | 5,320 | |||||
Supplementary cash flow information | |||||||||||
Interest paid | $ | 95 | $ | 1,752 | $ | 8,205 | |||||
Income tax paid, net | $ | 59 | $ | 31,180 | $ | 80,905 | |||||
Supplementary non-cash investing and financing activity | |||||||||||
Issuance of common stock - ESPP | $ | 340 | $ | 328 | $ | 299 | |||||
Non-cash additions to property, plant, and equipment | $ | — | $ | — | $ | 152,067 | |||||
Non-cash return of investment | $ | — | $ | — | $ | 152,067 | |||||
Non-cash contribution to subsidiary, net of tax | $ | — | $ | — | $ | 225,732 | |||||
The accompanying notes are an integral part of the condensed financial statements. |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
CLECO CORPORATION (Parent Company Only) Notes to the Condensed Financial Statements |
Note 1 — Summary of Significant Accounting Policies |
Note 2 — Debt |
Note 3 — Cash Distributions and Equity Contributions |
AT DEC. 31, | |||||||||||
(THOUSANDS) | 2012 | 2011 | 2010 | ||||||||
Cleco Power | $ | 58,000 | $ | 130,000 | $ | 150,000 | |||||
Midstream | — | 159,819 | 32,300 | ||||||||
Diversified Lands | 2,900 | — | — | ||||||||
Perryville | 1,500 | 700 | 700 | ||||||||
Attala | 1,300 | 700 | 700 | ||||||||
Total | $ | 63,700 | $ | 291,219 | $ | 183,700 |
AT DEC. 31, | |||||||||||
(THOUSANDS) | 2012 | 2011 | 2010 | ||||||||
Cleco Power | $ | — | $ | — | $ | 225,732 | |||||
Midstream | 16,191 | 35,500 | 74,400 | ||||||||
Support Group | — | — | 20,000 | ||||||||
Perryville | — | 1,845 | — | ||||||||
Cleco Innovations | — | 3,000 | 456 | ||||||||
Total | $ | 16,191 | $ | 40,345 | $ | 320,588 |
Note 4 — Income Taxes |
Note 5 — Commitments and Contingencies |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
CLECO CORPORATION | SCHEDULE II |
VALUATION AND QUALIFYING ACCOUNTS Years Ended Dec. 31, 2012, 2011, and 2010 | |||||||||||||||
(THOUSANDS) | BALANCE AT BEGINNING OF PERIOD | ADDITIONS CHARGED TO COSTS AND EXPENSES | UNCOLLECTIBLE ACCOUNT WRITE-OFFS LESS RECOVERIES | BALANCE AT END OF PERIOD (1) | |||||||||||
Allowance for Uncollectible Accounts | |||||||||||||||
Year Ended Dec. 31, 2012 | $ | 1,136 | $ | 828 | $ | 859 | $ | 1,105 | |||||||
Year Ended Dec. 31, 2011 | $ | 3,455 | $ | 1,992 | $ | 4,311 | $ | 1,136 | |||||||
Year Ended Dec. 31, 2010 | $ | 1,173 | $ | 3,756 | $ | 1,474 | $ | 3,455 | |||||||
(1) Deducted in the consolidated balance sheet |
(THOUSANDS) | BALANCE AT BEGINNING OF PERIOD | ADDITIONS | DEDUCTIONS | BALANCE AT END OF PERIOD | |||||||||||
Unrestricted Storm Reserve | |||||||||||||||
Year Ended Dec. 31, 2012 | $ | 1,403 | $ | 10,968 | $ | 10,579 | $ | 1,792 | |||||||
Year Ended Dec. 31, 2011 | $ | 1,454 | $ | 2,000 | $ | 2,051 | $ | 1,403 | |||||||
Year Ended Dec. 31, 2010 | $ | 1,146 | $ | 543 | $ | 235 | $ | 1,454 | |||||||
Restricted Storm Reserve | |||||||||||||||
Year Ended Dec. 31, 2012 | $ | 24,880 | $ | 1,485 | $ | 10,080 | $ | 16,285 | |||||||
Year Ended Dec. 31, 2011 | $ | 25,993 | $ | 887 | $ | 2,000 | $ | 24,880 | |||||||
Year Ended Dec. 31, 2010 | $ | 25,434 | $ | 857 | $ | 298 | $ | 25,993 |
CLECO POWER | SCHEDULE II |
VALUATION AND QUALIFYING ACCOUNTS Years Ended Dec. 31, 2012, 2011, and 2010 | |||||||||||||||
(THOUSANDS) | BALANCE AT BEGINNING OF PERIOD | ADDITIONS CHARGED TO COSTS AND EXPENSES | UNCOLLECTIBLE ACCOUNT WRITE-OFFS LESS RECOVERIES | BALANCE AT END OF PERIOD (1) | |||||||||||
Allowance for Uncollectible Accounts | |||||||||||||||
Year Ended Dec. 31, 2012 | $ | 1,136 | $ | 828 | $ | 859 | $ | 1,105 | |||||||
Year Ended Dec. 31, 2011 | $ | 3,395 | $ | 1,972 | $ | 4,231 | $ | 1,136 | |||||||
Year Ended Dec. 31, 2010 | $ | 1,173 | $ | 3,696 | $ | 1,474 | $ | 3,395 | |||||||
(1) Deducted in the consolidated balance sheet |
(THOUSANDS) | BALANCE AT BEGINNING OF PERIOD | ADDITIONS | DEDUCTIONS | BALANCE AT END OF PERIOD | |||||||||||
Unrestricted Storm Reserve | |||||||||||||||
Year Ended Dec. 31, 2012 | $ | 1,403 | $ | 10,968 | $ | 10,579 | $ | 1,792 | |||||||
Year Ended Dec. 31, 2011 | $ | 1,454 | $ | 2,000 | $ | 2,051 | $ | 1,403 | |||||||
Year Ended Dec. 31, 2010 | $ | 1,146 | $ | 543 | $ | 235 | $ | 1,454 | |||||||
Restricted Storm Reserve | |||||||||||||||
Year Ended Dec. 31, 2012 | $ | 24,880 | $ | 1,485 | $ | 10,080 | $ | 16,285 | |||||||
Year Ended Dec. 31, 2011 | $ | 25,993 | $ | 887 | $ | 2,000 | $ | 24,880 | |||||||
Year Ended Dec. 31, 2010 | $ | 25,434 | $ | 857 | $ | 298 | $ | 25,993 |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
Signatures |
CLECO CORPORATION | ||
(Registrant) | ||
By: | /s/ Bruce A. Williamson | |
(Bruce A. Williamson) | ||
(President, Chief Executive Officer and Director) |
SIGNATURE | TITLE | DATE | |
/s/ Bruce A. Williamson | President, Chief Executive Officer and Director | February 19, 2013 | |
(Bruce A. Williamson) | (Principal Executive Officer) | ||
/s/ Darren J. Olagues | Senior Vice President - Chief Financial Officer | February 19, 2013 | |
(Darren J. Olagues) | (Principal Financial Officer) | ||
/s/ Terry L. Taylor | Controller & Chief Accounting Officer | February 19, 2013 | |
(Terry L. Taylor) | (Principal Accounting Officer) |
DIRECTORS* | ||
J. PATRICK GARRETT | ||
ELTON R. KING | ||
LOGAN W. KRUGER | ||
WILLIAM L. MARKS | ||
PETER M. SCOTT III | ||
SHELLEY STEWART, JR. | ||
WILLIAM H. WALKER, JR. |
*By: | /s/ Bruce A. Williamson | February 19, 2013 | ||
(Bruce A. Williamson, as Attorney-in-Fact) |
CLECO CORPORATION | ||
CLECO POWER | 2012 FORM 10-K |
Signatures |
CLECO POWER LLC | ||
(Registrant) | ||
By: | /s/ Bruce A. Williamson | |
(Bruce A. Williamson) | ||
(Chief Executive Officer and Sole Manager) |
SIGNATURE | TITLE | DATE | |
/s/ Bruce A. Williamson | Chief Executive Officer and Sole Manager | February 19, 2013 | |
(Bruce A. Williamson) | (Principal Executive Officer) | ||
/s/ Darren J. Olagues | Senior Vice President - Chief Financial Officer | February 19, 2013 | |
(Darren J. Olagues) | (Principal Financial Officer) | ||
/s/ Terry L. Taylor | Controller and Chief Accounting Officer | February 19, 2013 | |
(Terry L. Taylor) | (Principal Accounting Officer) |
ARTICLE I | Registered Office; Registered Agents; Corporate Seal | 1 | |
Section 1. | Registered Office and Registered Agent(s) | 1 | |
Section 2. | Corporate Seal | 1 | |
ARTICLE II | Shareholders | 1 | |
Section 1. | Place of Holding Meetings | 1 | |
Section 2. | Quorum; Adjournment of Meetings | 1 | |
(a) | General Rule | 1 | |
(b) | Special Rule | 1 | |
(c) | Adjournments | 2 | |
Section 3. | Annual Meeting | 2 | |
Section 4. | Special Meeting | 2 | |
Section 5. | Conduct of Meetings | 3 | |
Section 6. | Voting | 4 | |
Section 7. | Notice | 5 | |
Section 8. | Amendment of Articles of Incorporation | 8 | |
(a) | Shareholders Proposals | 8 | |
(b) | Effectiveness | 8 | |
Section 9. | Effectiveness of Other Amendments to Articles of Incorporation | 9 | |
Section 10. | General | 10 | |
ARTICLE III | Directors | 10 | |
Section 1. | Certain General Provisions | 10 | |
(a) | Number | 10 | |
(b) | Classifications | 10 | |
(c) | Nominations | 10 | |
(d) | Qualifications; Declaration of Vacancy | 12 | |
(e) | Removal | 13 | |
(f) | Powers | 14 | |
(g) | Change in Number of Directors | 15 | |
(h) | Rights of Preferred Shareholders, etc. | 15 | |
Section 2. | Filling of Vacancies | 15 | |
Section 3. | Annual and Regular Meetings | 15 | |
Section 4. | Special Meetings | 16 | |
Section 5. | Place of Meetings; Telephone Meetings | 16 | |
Section 6. | Quorum | 16 | |
Section 7. | Compensation | 16 | |
Section 8. | Committees | 16 | |
ARTICLE IV | Indemnification | 17 | |
Section 1. | Right to Indemnification - General | 17 |
Section 2. | Certain Provisions Respecting Indemnification for and Advancement of Expenses | 17 | |
Section 3. | Procedure for Determination of Entitlement to Indemnification | 18 | |
Section 4. | Presumptions and Effect of Certain Proceedings | 19 | |
Section 5. | Right of Claimant to Bring Suit | 19 | |
Section 6. | Non-Exclusivity and Survival of Rights | 20 | |
Section 7. | Definitions | 21 | |
ARTICLE V | Executive Committee | 22 | |
Section 1. | Election and Tenure | 22 | |
Section 2. | Executive Committee | 22 | |
Section 3. | Meetings | 22 | |
Section 4. | Compensation | 22 | |
ARTICLE VI | Audit Committee | 22 | |
Section 1. | Election and Tenure | 22 | |
Section 2. | Audit Committee | 22 | |
Section 3. | Meetings | 23 | |
Section 4. | Compensation | 23 | |
ARTICLE VII | Compensation Committee | 23 | |
Section 1. | Election and Tenure | 23 | |
Section 2. | Compensation Committee | 23 | |
Section 3. | Meetings | 23 | |
Section 4. | Compensation | 23 | |
ARTICLE VII.A. | Nominating/Governance Committee | 24 | |
Section 1. | Election and Tenure | 24 | |
Section 2. | Nominating/Governance Committee | 24 | |
Section 3. | Meetings | 24 | |
Section 4. | Compensation | 24 | |
ARTICLE VIII | Officers | 24 | |
Section 1. | Election, Tenure, and Compensation | 24 | |
Section 2. | Powers and Duties of Chairman of Board of Directors | 25 | |
Section 3. | Powers and Duties of President | 25 | |
Section 4. | Powers and Duties of Vice President | 25 | |
Section 5. | Powers and Duties of Secretary | 25 | |
Section 6. | Powers and Duties of Treasurer | 25 | |
Section 7. | Delegation of Duties | 26 | |
ARTICLE IX | Capital Stock | 26 | |
Section 1. | Stock Certificates | 26 | |
Section 2. | Lost or Destroyed Certificates | 26 | |
Section 3. | Transfer of Shares | 26 | |
Section 4. | Dividends | 27 | |
Section 5. | Closing Transfer Books; Fixing Record Date | 27 | |
ARTICLE X | Fair-Price Provisions | 27 | |
Section 1. | Definitions | 27 | |
Section 2. | Vote Required in Business Combinations | 30 | |
Section 3. | When Voting Requirements Not Applicable | 31 | |
(a) | Definitions | 31 | |
(b) | Conditions | 31 | |
(c) | Other Provisions | 34 | |
ARTICLE XI | Notices | 34 | |
Section 1. | Manner of Giving Notice | 34 | |
Section 2. | Waiver of Notice | 34 | |
ARTICLE XII | Miscellaneous | 35 | |
Section 1. | Fiscal Year | 35 | |
Section 2. | Checks and Drafts | 35 | |
Section 3. | Books and Records | 35 | |
Section 4. | Separability | 35 | |
ARTICLE XIII | Amendment of Bylaws | 35 | |
Section 1. | Voting | 35 | |
Section 2. | Shareholder Proposals | 35 | |
Section 3. | Effective Date | 36 | |
ARTICLE XIV | Other Amendments to Bylaws | 36 | |
Section 1. | Effective Date | 36 | |
ARTICLE XV | Control Share Acquisition Statute | 37 | |
Section 1. | 37 | ||
a. | Any restrictions, conditions or objectives, whether on transfer or otherwise, imposed with respect to your Restricted Stock will be deemed satisfied at the target level (your “Target Shares”), and any remaining rights to additional shares will then be forfeited and cancelled by the Company. |
b. | Your Dividend Equivalent Units will vest at the target level (your “Target Units”), and any remaining rights to the credit of additional equivalencies will be cancelled. |
Relative Rank | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 - 18 |
Percentile Rank | 100% | 94% | 88% | 82% | 76% | 71% | 65% | 59% | 53% | 47% | 41% | 35% | < 30th |
Payout as % of Target | 200% | 188% | 176% | 165% | 153% | 141% | 129% | 118% | 106% | 90% | 69% | 48% | 0% |
Peer Company Name * | Ticker Symbol |
AGL Resources, Inc. | AGL |
Allete, Inc. | ALE |
Aliant Energy Corporation | LNT |
Avista Corporation | AVA |
Black Hills Corporation | BKH |
Calpine Corporation | CPN |
El Paso Electric Company | EE |
Energen Corporation | EGN |
Great Plains Energy Inc. | GXP |
IDACORP Inc. | IDA |
Northwestern Corporation | NEW |
NV Energy, Inc. | NVE |
OGE Energy Corporation | OGE |
Pinnacle West Capital Corporation | PNW |
PNM Resources, Inc. | PNM |
Portland General Electric Company | POR |
TECO Energy, Inc. | TE |
UNS Energy Corporation | UNS |
Vectren Corporation | VVC |
a. | Shall determine the percentage of each Participant's Eligible Compensation that may be payable as an Award hereunder (a “Target Award”); |
b. | Shall determine the Company and Performance Goals applicable for the Determination Year; |
c. | Shall determine as to each Participant, the percentage of his or her aggregate Award that shall constitute the Company Component and the percentage that shall constitute the Performance Component, which determinations shall be set forth on Exhibit A hereto, as the same may be modified from time to time. |
d. | May specify a threshold level below which no Award shall be made and a maximum level above which no additional Award shall be made. Such threshold and maximum levels may be imposed with respect to Company Goals, Performance Goals, or the aggregate amount of any Award hereunder. |
a. | The term “Disability” means that a Participant is receiving long-term disability benefits under a separate plan or policy maintained by the Company. |
b. | The term “Retirement” means that a Participant has voluntarily separated from service with the Company and its affiliates; provided that at the time of such separation he or she has attained age 55. |
Employee Group | Company Goal Weighting | Performance Goal Weighting | Total |
CEO | 100% | NA | 100% |
Officers (EMT) | 80% | 20% | 100% |
Officers (VPs) | 70% | 30% | 100% |
General Managers | 60% | 40% | 100% |
Managers, Supervisors and Directors | 50% | 50% | 100% |
Exempt | 40% | 60% | 100% |
Non-Exempt | 20% | 80% | 100% |
Performance Factor | Description | Payout Ranges as a % of Target Award |
1 | Far Exceeds Expectations Performance far exceeds that expected; consistently makes significant contributions beyond goals and expectations. | 150% - 200% |
2 | Exceeds Expectations Results achieved exceed that expected; makes contributions beyond goals and expectations. | 100% - 150% |
3 | Meets Expectations Fully and consistently meets goals and expectations; fully competent. | 50% - 100% |
4 | Inconsistently Meets Expectations Needs improvement to reach competent level. | 0% - 50% |
5 | Does Not Meet Expectations Fails to achieve results expected or agreed to; requires more than expected supervision. | 0% |
Company Goal | Target | Weighting | Target Adjustments |
Earnings Per Share (EPS) | $2.420 | 70% | Below $2.239 - 0% $2.239 - 50% $2.420 - 100% $2.662 - 200% |
Customer Satisfaction | % of very satisfied customers 12 - 19 percentage points above the LA utility average | 10% | Below 12 - 0% 12-19 - 100% Above 19 - 200% |
SAFETY Personal Injuries | Incident rate ranks in top quartile of EEI companies | 5% | Below 2nd quartile - 0% 2nd quartile - 50% Top Quartile - 100% Top Decile - 200% |
SAFETY Vehicle Accidents | Accident rate ranks in top quartile of EEI companies | 5% | Below 2nd quartile - 0% 2nd quartile - 50% Top Quartile - 100% Top Decile - 200% |
Quality Performance Factor (QPF) | Gives the Committee discretion to consider the effect of external/economic factors on the quality of earnings | 10% | 0% - 200% |
TOTAL | 100% |
CLECO CORPORATION | EXHIBIT 12(a) |
Computation of Ratios of Earnings to Fixed Charges and of Earnings to Combined Fixed Charges and Preferred Stock Dividends |
UNAUDITED (THOUSANDS, EXCEPT RATIOS) | 2012 | 2011 | 2010 | 2009 | 2008 | |||||||||||||||
Earnings from continuing operations | $ | 163,648 | $ | 195,848 | $ | 255,391 | $ | 106,307 | $ | 102,141 | ||||||||||
Equity (income) loss and dividends from investees | — | (3,385 | ) | (38,849 | ) | 19,023 | 10,648 | |||||||||||||
Income tax expense | 65,327 | 102,897 | 142,498 | 9,579 | 18,457 | |||||||||||||||
Earnings from continuing operations before income taxes | $ | 228,975 | $ | 295,360 | $ | 359,040 | $ | 134,909 | $ | 131,246 | ||||||||||
Fixed charges: | ||||||||||||||||||||
Interest | $ | 83,064 | $ | 69,428 | $ | 97,325 | $ | 75,331 | $ | 69,800 | ||||||||||
Amortization of debt expense, premium, net | 3,156 | 3,017 | 3,014 | 1,897 | 2,242 | |||||||||||||||
Portion of rentals representative of an interest factor | 489 | 494 | 431 | 536 | 523 | |||||||||||||||
Interest of capitalized lease | 1,618 | 1,787 | 3,972 | 1,545 | — | |||||||||||||||
Total fixed charges | $ | 88,327 | $ | 74,726 | $ | 104,742 | $ | 79,309 | $ | 72,565 | ||||||||||
Earnings from continuing operations before income taxes | $ | 228,975 | $ | 295,360 | $ | 359,040 | $ | 134,909 | $ | 131,246 | ||||||||||
Plus: total fixed charges from above | 88,327 | 74,726 | 104,742 | 79,309 | 72,565 | |||||||||||||||
Plus: amortization of capitalized interest | 511 | 545 | 545 | 407 | 407 | |||||||||||||||
Earnings from continuing operations before income taxes and fixed charges | $ | 317,813 | $ | 370,631 | $ | 464,327 | $ | 214,625 | $ | 204,218 | ||||||||||
Ratio of earnings to fixed charges | 3.60 | x | 4.96 | x | 4.43 | x | 2.71 | x | 2.81 | x | ||||||||||
Total fixed charges from above | $ | 88,327 | $ | 74,726 | $ | 104,742 | $ | 79,309 | $ | 72,565 | ||||||||||
Preferred stock dividends | — | 40 | 72 | 50 | 55 | |||||||||||||||
Total fixed charges and preferred stock dividends | $ | 88,327 | $ | 74,766 | $ | 104,814 | $ | 79,359 | $ | 72,620 | ||||||||||
Ratio of earnings to combined fixed charges and preferred stock dividends | 3.60 | x | 4.96 | x | 4.43 | x | 2.70 | x | 2.81 | x |
CLECO POWER LLC | EXHIBIT 12(b) |
Computation of Ratios of Earnings to Fixed Charges |
UNAUDITED (THOUSANDS, EXCEPT RATIOS) | 2012 | 2011 | 2010 | 2009 | 2008 | |||||||||||||||
Earnings from continuing operations | $ | 146,848 | $ | 142,835 | $ | 147,405 | $ | 111,166 | $ | 113,832 | ||||||||||
Income taxes | 68,133 | 69,409 | 75,107 | 15,297 | 27,956 | |||||||||||||||
Earnings from continuing operations before income taxes | 214,981 | $ | 212,244 | $ | 222,512 | $ | 126,463 | $ | 141,788 | |||||||||||
Fixed charges: | ||||||||||||||||||||
Interest | $ | 81,515 | $ | 96,495 | $ | 81,015 | $ | 82,971 | $ | 65,033 | ||||||||||
Amortization of debt expense, premium, net | 2,819 | 2,382 | 2,279 | 1,764 | 1,892 | |||||||||||||||
Portion of rentals representative of an interest factor | 489 | 493 | 431 | 536 | 523 | |||||||||||||||
Interest of capitalized lease | 1,618 | 1,787 | 3,972 | 1,545 | — | |||||||||||||||
Total fixed charges | $ | 86,441 | $ | 101,157 | $ | 87,697 | $ | 86,816 | $ | 67,448 | ||||||||||
Earnings from continuing operations before income taxes | $ | 214,981 | $ | 212,244 | $ | 222,512 | $ | 126,463 | $ | 141,788 | ||||||||||
Total fixed charges from above | 86,441 | 101,157 | 87,697 | 86,816 | 67,448 | |||||||||||||||
Earnings from continuing operations before income taxes and fixed charges | $ | 301,422 | $ | 313,401 | $ | 310,209 | $ | 213,279 | $ | 209,236 | ||||||||||
Ratio of earnings to fixed charges | 3.49 | x | 3.10 | x | 3.54 | x | 2.46 | x | 3.10 | x |
CLECO CORPORATION | EXHIBIT 21 |
Subsidiaries of the Registrant as of December 31, 2012 |
SUBSIDIARIES OF REGISTRANT OR ORGANIZATION | STATE OF INCORPORATION | ||
Acadia Partners Pipeline, LLC | Louisiana | ||
Acadia Power Holdings LLC | Louisiana | ||
Acadia Power Partners, LLC | Delaware | ||
Attala Transmission LLC | Louisiana | ||
CLE Intrastate Pipeline Company LLC | Louisiana | ||
Cleco Evangeline LLC | Louisiana | ||
Cleco Generation Services LLC | Louisiana | ||
Cleco Innovations LLC | Louisiana | ||
Cleco Katrina/Rita Hurricane Recovery Funding LLC | Louisiana | ||
Cleco Midstream Resources LLC | Louisiana | ||
Cleco Power LLC | Louisiana | ||
Cleco Support Group LLC | Louisiana | ||
DeSoto Pipeline Company, Inc. | Louisiana | ||
Diversified Lands LLC | Louisiana | ||
Oxbow Lignite Company, LLC (50% interest) | Delaware | ||
Perryville Energy Partners, L.L.C. | Delaware |
CLECO CORPORATION | EXHIBIT 23(a) |
Consent of Independent Registered Public Accounting Firm |
/s/ PricewaterhouseCoopers LLP |
New Orleans, Louisiana |
February 19, 2013 |
CLECO POWER LLC | EXHIBIT 23(b) |
Consent of Independent Registered Public Accounting Firm |
/s/ PricewaterhouseCoopers LLP |
New Orleans, Louisiana |
February 19, 2013 |
/s/ J. Patrick Garrett | |
J. Patrick Garrett |
/s/ Elton R. King | |
Elton R. King |
/s/ Logan W. Kruger | |
Logan W. Kruger |
/s/ William L. Marks | |
William L. Marks |
/s/ Peter M. Scott III | |
Peter M. Scott III |
/s/ Shelley Stewart, Jr. | |
Shelley Stewart, Jr. |
/s/ William H. Walker, Jr. | |
William H. Walker, Jr. |
CLECO CORPORATION | EXHIBIT 31.1 |
Certification |
Date: | February 19, 2013 |
/s/ Bruce A. Williamson | |
Bruce A. Williamson President and Chief Executive Officer |
CLECO CORPORATION | EXHIBIT 31.2 |
Certification |
Date: | February 19, 2013 |
/s/ Darren J. Olagues | |
Darren J. Olagues Senior Vice President - Chief Financial Officer |
CLECO POWER LLC | EXHIBIT 31.3 |
Certification |
Date: | February 19, 2013 |
/s/ Bruce A. Williamson | |
Bruce A. Williamson Chief Executive Officer |
CLECO POWER LLC | EXHIBIT 31.4 |
Certification |
Date: | February 19, 2013 |
/s/ Darren J. Olagues | |
Darren J. Olagues Senior Vice President - Chief Financial Officer |
CLECO CORPORATION | EXHIBIT 32.1 |
Cleco Corporation | |
CERTIFICATION PURSUANT TO | |
18 U.S.C. SECTION 1350, | |
AS ADOPTED PURSUANT TO | |
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 |
(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; |
(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
Date: | February 19, 2013 |
/s/ Bruce A. Williamson | |
Bruce A. Williamson President and Chief Executive Officer |
CLECO CORPORATION | EXHIBIT 32.2 |
Cleco Corporation | |
CERTIFICATION PURSUANT TO | |
18 U.S.C. SECTION 1350, | |
AS ADOPTED PURSUANT TO | |
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 |
(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; |
(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
Date: | February 19, 2013 |
/s/ Darren J. Olagues | |
Darren J. Olagues Senior Vice President - Chief Financial Officer |
CLECO POWER LLC | EXHIBIT 32.3 |
Cleco Power LLC | |
CERTIFICATION PURSUANT TO | |
18 U.S.C. SECTION 1350, | |
AS ADOPTED PURSUANT TO | |
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 |
(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; |
(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
Date: | February 19, 2013 |
/s/ Bruce A. Williamson | |
Bruce A. Williamson President and Chief Executive Officer |
CLECO POWER LLC | EXHIBIT 32.4 |
Cleco Power LLC | |
CERTIFICATION PURSUANT TO | |
18 U.S.C. SECTION 1350, | |
AS ADOPTED PURSUANT TO | |
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 |
(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; |
(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
Date: | February 19, 2013 |
/s/ Darren J. Olagues | |
Darren J. Olagues Senior Vice President - Chief Financial Officer |
Common and Preferred Stock (Tables)
|
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2012
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Stock Option Activity | A summary of LTICP stock option activity during the year ended December 31, 2012, is presented in the following table.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Non-Vested Stock Activity | A summary of non-vested stock activity during the year ended December 31, 2012, is presented in the following table.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Assumptions of Non-Vested Stock | The fair value of shares of non-vested stock granted in 2012, 2011, and 2010 under the LTICP is estimated on the date of grant and the common stock equivalent units granted in 2010 under the LTICP are marked-to-market using the Monte Carlo simulation model with the assumptions listed in the following table.
(1) The expected term was based on the service period of the award. (2) The volatility rate is based on historical stock prices over an appropriate period, generally equal to the expected term. |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock Based Compensation | Pre-tax compensation expense reported by Cleco and Cleco Power relating to their share-based compensation plans is shown in the following table:
(1) For each of the years ended December 31, 2012, 2011, and 2010, compensation expense included in Cleco’s Consolidated Statements of Income related to non-forfeitable dividends paid on non-vested stock that is not expected to vest and stock options was $0.1 million |
Storm Restoration Storm Restoration (Details) (Cleco Power [Member], Hurricane Isaac [Member], USD $)
In Millions, unless otherwise specified |
Dec. 31, 2012
|
Sep. 02, 2012
|
Aug. 28, 2012
customer
|
---|---|---|---|
Cleco Power [Member] | Hurricane Isaac [Member]
|
|||
Storm Resotration [Line Items] | |||
Approximate Number of Customers Affected | 95,000 | ||
Percent of Customers Affected | 34.00% | ||
Percent of Customers Restored | 100.00% | ||
Cost of Storm Restoration | $ 24.0 | ||
Percent of Storm Restoration Costs Capitalized | 56.00% | ||
Capitalized Storm Restoration Costs | $ 13.6 |
Summary of Significant Accounting Policies, Plant Acquisition Adjustments (Details) (Cleco Power [Member], USD $)
In Thousands, unless otherwise specified |
Dec. 31, 2012
|
Dec. 31, 2011
|
---|---|---|
Acadia Unit 1 and Facilities Acquisition [Member]
|
||
Significant Acquisitions and Disposals [Line Items] | ||
Plant acquisition adjustment | $ 95,578 | $ 95,578 |
Less: accumulated amortization | 9,018 | 5,836 |
Net plant acquisition adjustment | 86,560 | 89,742 |
Teche Unit 4 Acquisition [Member]
|
||
Significant Acquisitions and Disposals [Line Items] | ||
Plant acquisition adjustment | 5,359 | 5,359 |
Less: accumulated amortization | 3,979 | 3,724 |
Net plant acquisition adjustment | $ 1,380 | $ 1,635 |
Accumulated Other Comprehensive Loss (Tables)
|
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2012
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Loss [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Accumulated Other Comprehensive Loss |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cleco Power [Member]
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Loss [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Accumulated Other Comprehensive Loss |
|
Debt, Short-Term Debt (Details) (USD $)
In Thousands, unless otherwise specified |
Dec. 31, 2012
|
Dec. 31, 2011
|
---|---|---|
Debt Disclosure [Abstract] | ||
Long-term Debt and Capital Lease Obligations, Current | $ 91,140 | $ 26,099 |
Short-term Debt [Line Items] | ||
Less: long-term debt due within one year | 88,969 | 24,258 |
Short-Term Debt [Abstract] | ||
Short-term debt outstanding | 0 | |
Cleco Power [Member]
|
||
Debt Disclosure [Abstract] | ||
Long-term Debt and Capital Lease Obligations, Current | 91,140 | 26,099 |
Short-term Debt [Line Items] | ||
Less: long-term debt due within one year | 88,969 | 24,258 |
Short-Term Debt [Abstract] | ||
Short-term debt outstanding | $ 0 |
Schedule I Financial Statements of Cleco Corporation, Debt (Details) (USD $)
|
12 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2012
|
Dec. 31, 2011
|
Dec. 31, 2010
|
Dec. 31, 2012
Line of Credit [Member]
|
Dec. 31, 2012
Line of Credit [Member]
Cleco Corporation's credit facility draws [Member]
|
Dec. 31, 2011
Line of Credit [Member]
Cleco Corporation's credit facility draws [Member]
|
Dec. 31, 2012
CLECO CORPORATION (Parent Company Only) [Member]
|
Dec. 31, 2011
CLECO CORPORATION (Parent Company Only) [Member]
|
Dec. 31, 2010
CLECO CORPORATION (Parent Company Only) [Member]
|
Feb. 04, 2013
CLECO CORPORATION (Parent Company Only) [Member]
Line of Credit [Member]
|
Jan. 28, 2013
CLECO CORPORATION (Parent Company Only) [Member]
Line of Credit [Member]
|
Oct. 07, 2011
CLECO CORPORATION (Parent Company Only) [Member]
Line of Credit [Member]
|
Nov. 30, 2010
CLECO CORPORATION (Parent Company Only) [Member]
Line of Credit [Member]
|
Dec. 31, 2012
CLECO CORPORATION (Parent Company Only) [Member]
Line of Credit [Member]
|
Feb. 04, 2013
CLECO CORPORATION (Parent Company Only) [Member]
Line of Credit [Member]
Cleco Corporation's credit facility draws [Member]
|
Jan. 28, 2013
CLECO CORPORATION (Parent Company Only) [Member]
Line of Credit [Member]
Cleco Corporation's credit facility draws [Member]
|
|
Debt [Abstract] | ||||||||||||||||
Short-term debt outstanding | $ 0 | $ 0 | ||||||||||||||
Retirement of short-term debt | 0 | 150,000,000 | 0 | 0 | 150,000,000 | 0 | ||||||||||
Long-term debt outstanding | 25,000,000 | 10,000,000 | ||||||||||||||
Maximum borrowing capacity | 550,000,000 | 250,000,000 | ||||||||||||||
Maturity date | Oct. 07, 2016 | |||||||||||||||
Interest rate description | LIBOR plus 1.50% or ABR | |||||||||||||||
Fees (in hundredths) | 0.25% | |||||||||||||||
Gross amount of long-term debt and capital lease obligations | 1,356,548,000 | 1,372,105,000 | ||||||||||||||
Amount outstanding | 25,000,000 | 10,000,000 | ||||||||||||||
Available borrowing capacity | 225,000,000 | |||||||||||||||
Repayments of Lines of Credit | $ 10,000,000 | $ 100,000,000 | $ 100,000,000 | $ 10,000,000 | $ 40,000,000 | $ 100,000,000 | $ 15,000,000 | $ 10,000,000 | $ 15,000,000 | $ 10,000,000 |
Summary of Significant Accounting Policies, Deferred Project Costs, Inventories, Accounts Receivable, Financing Receivables and Reserves (Details) (USD $)
|
Dec. 31, 2012
|
Dec. 31, 2011
|
---|---|---|
General and Administrative Costs in Inventory, Amount Incurred | $ 4,300,000 | $ 4,700,000 |
Accounts Receivable | ||
Allowance for doubtful accounts | 1,100,000 | 1,100,000 |
Financing Receivables | ||
Net investment in direct financing lease | 13,542,000 | 13,633,000 |
Reserves | ||
Percentage of total liabilities represented by general liability and workers compensation reserves (in hundredths) | 0.20% | 0.20% |
General and Administrative Costs in Inventory, Amount Remaining | 4,900,000 | 5,000,000 |
Cleco Power [Member]
|
||
Deferred Project Costs [Abstract] | ||
Resource planning projects | $ 1,200,000 | $ 1,200,000 |
Litigation, Other Commitments and Contingencies, and Disclosures about Guarantees Disclosures about Guarantees (Details) (USD $)
|
12 Months Ended | 12 Months Ended | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2012
|
Dec. 31, 2011
|
Dec. 31, 2012
Cleco Corporation [Member]
Guarantee Issued to Entergy Louisiana and Entergy Gulf States for Performance Obligations of Perryville [Member]
|
Dec. 31, 2012
Cleco Corporation [Member]
Guarantee Issued to Entergy Louisiana on behalf of Acadia [Member]
|
Dec. 31, 2012
Cleco Power [Member]
Lignite Mining Agreement Guarantee [Member]
|
Feb. 28, 2010
Cleco Power [Member]
Acadia Unit 1 Transaction [Member]
|
Dec. 31, 2012
Cleco Power [Member]
Guarantee Issued to Cleco Power on behalf of Acadia [Member]
|
Dec. 31, 2012
APH [Member]
Acadia Unit 1 Transaction [Member]
|
Dec. 31, 2011
APH [Member]
Acadia Unit 1 Transaction [Member]
|
Dec. 31, 2012
APH [Member]
Acadia Unit 2 Transaction [Member]
|
Apr. 29, 2011
APH [Member]
Acadia Unit 2 Transaction [Member]
|
Dec. 31, 2012
Acadia Power Partners [Member]
Acadia Unit 1 Transaction [Member]
|
Dec. 31, 2011
Acadia Power Partners [Member]
Acadia Unit 1 Transaction [Member]
|
Dec. 31, 2012
Acadia Power Partners [Member]
Acadia Unit 2 Transaction [Member]
|
Dec. 31, 2011
Acadia Power Partners [Member]
Acadia Unit 2 Transaction [Member]
|
|
Disclosures about Guarantees [Abstract] | |||||||||||||||
Liability recognized on the balance sheets | $ 12,156,000 | $ 200,000 | $ 3,800,000 | $ 6,800,000 | |||||||||||
Fair value of indemnification liability recorded | 13,500,000 | ||||||||||||||
Percentage of affiliates indemnification liability accepted by entity (in hundredths) | 50.00% | ||||||||||||||
Indemnification received from third parties | 6,800,000 | ||||||||||||||
Maximum residual value of indemnification obligation | 100,000 | 200,000 | |||||||||||||
Contingent sale obligations | 8,150,000 | 29,357,000 | 400,000 | 7,800,000 | 21,800,000 | ||||||||||
Income from contractual expiration of indemnification | 0 | 900,000 | 7,200,000 | 900,000 | 14,000,000 | 0 | |||||||||
Estimated maximum projected payment | 298,800,000 | 72,500,000 | 30,000,000 | 10,000,000 | |||||||||||
Off-balance sheet commitments, expected termination dates [Abstract] | |||||||||||||||
NET AMOUNT COMMITTED | 4,225,000 | 42,400,000 | |||||||||||||
LESS THAN ONE YEAR | 3,725,000 | ||||||||||||||
1-3 YEARS | 0 | ||||||||||||||
3-5 YEARS | 0 | ||||||||||||||
MORE THAN 5 YEARS | 500,000 | ||||||||||||||
On-balance sheet guarantees, expected termination dates [Abstract] | |||||||||||||||
NET AMOUNT COMMITTED | 12,156,000 | 200,000 | 3,800,000 | 6,800,000 | |||||||||||
LESS THAN ONE YEAR | 7,250,000 | ||||||||||||||
1-3 YEARS | 900,000 | ||||||||||||||
3-5 YEARS | 0 | ||||||||||||||
MORE THAN 5 YEARS | 4,006,000 | ||||||||||||||
Total off-balance sheet commitments and on-balance sheet guarantees, expected termination dates [Abstract] | |||||||||||||||
Total NET AMOUNT COMMITTED | 16,381,000 | ||||||||||||||
Total LESS THAN ONE YEAR | 10,975,000 | ||||||||||||||
Total 1-3 YEARS | 900,000 | ||||||||||||||
Total 3-5 YEARS | 0 | ||||||||||||||
Total MORE THAN 5 YEARS | $ 4,506,000 |
Affiliate Transactions (Tables)
|
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2012
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Related Party Transactions | The following table is a summary of affiliate revenue included in Cleco’s Consolidated Statements of Income.
The following table summarizes the cash distributions Cleco Corporation received from affiliates during 2012, 2011, and 2010.
The following table summarizes the contributions Cleco Corporation made to affiliates during 2012, 2011, and 2010.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cleco Power [Member]
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Related Party Transactions | The following table is a summary of charges from each affiliate included in Cleco Power’s Consolidated Statements of Income.
The following table shows the amounts transferred by affiliates during 2012 and 2011.
Cleco Power had the following affiliate receivable and payable balances associated with the service agreements.
The following table is a summary of revenue received from affiliates included in Cleco Power’s Consolidated Statements of Income.
|
Summary of Significant Accounting Policies (Policies)
|
12 Months Ended | ||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2012
|
|||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||
Use of Estimates | The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. |
||||||||||||||||
Principles of Consolidation | The accompanying consolidated financial statements of Cleco include the accounts of Cleco and its majority-owned subsidiaries after elimination of intercompany accounts and transactions. |
||||||||||||||||
Reclassification, Policy | Certain reclassifications have been made to the 2010 and 2011 financial statements to conform them to the presentation used in the 2012 financial statements. These reclassifications had no effect on Cleco Corporation’s net income applicable to common stock or total common shareholders’ equity or Cleco Power’s net income or total member’s equity. |
||||||||||||||||
Statements of Cash Flows | Cleco Corporation and Cleco Power’s Consolidated Statements of Cash Flows are prepared using the indirect method described in the authoritative guidance for the presentation of the statement of cash flows. This method requires that net income be adjusted to remove the effects of all deferrals and accruals of operating cash receipts and payments and the effects of all investing and financing cash flow items. Derivatives meeting the definition of an accounting hedge are classified in the same category as the item being hedged. |
||||||||||||||||
Regulation | Cleco Power maintains its accounts in accordance with the Uniform System of Accounts prescribed for electric utilities by FERC, as adopted by the LPSC. Cleco Power’s retail rates are regulated by the LPSC, and its rates for transmission services and wholesale power sales are regulated by FERC. Cleco Power follows the authoritative guidelines for industry regulated operations, which allows utilities to capitalize or defer certain costs based on regulatory approval, and management’s ongoing assessment that it is probable these items will be recovered through the ratemaking process. Pursuant to this authoritative guidance, Cleco Power has recorded regulatory assets and liabilities. For more information regarding the regulatory assets and liabilities recorded by Cleco Power, see Note 3 — “Regulatory Assets and Liabilities.” Any future plan adopted by the LPSC for purposes of transitioning utilities from LPSC regulation to retail competition may affect the regulatory assets and liabilities recorded by Cleco Power if the criteria for the application of the authoritative guidelines for industry regulated operations cannot continue to be met. At this time, Cleco cannot predict whether any legislation or regulation affecting Cleco Power will be enacted or adopted and, if enacted, what form such legislation or regulation may take. |
||||||||||||||||
Asset Retirement Obligation | Cleco Power has recorded asset retirement obligations (liabilities) in accordance with the authoritative guidance. This authoritative guidance requires an entity to record an ARO when there is a legal obligation under existing or enacted law, statute, written or oral contract, or by legal construction under the doctrine of promissory estoppel to incur costs to remove an asset when the asset is retired. These guidelines also require an ARO which is conditional on a future event to be recorded even if the event has not yet occurred. At the point the liability for asset retirement is incurred, the authoritative guidance requires capitalization of the costs to the related property, plant, and equipment asset. For AROs existing at the time of adoption, the statement requires capitalization of costs at the level that existed at the point of incurring the liability. These capitalized costs are depreciated over the same period as the related property asset. Cleco Power also defers the current depreciation of the asset retirement cost as a regulatory asset. Under the authoritative guidance, the initial ARO liability recorded is accreted to its present value each accounting period. Cleco Power defers this accretion as a regulatory asset based on its determination that these costs can be collected from customers. For more information on Cleco Power’s AROs, see Note 3 — “Regulatory Assets and Liabilities — Asset Removal Costs.” |
||||||||||||||||
Property, Plant and Equipment | Upon retirement or disposition, the cost of Cleco’s depreciable plant and the cost of removal, net of salvage value, are charged to accumulated depreciation. For Cleco’s other depreciable assets, upon disposition or retirement, the difference between the net book value of the property and any proceeds received for the property is recorded as a gain or loss on asset disposition on Cleco’s Consolidated Statements of Income. Any cost incurred to remove the asset is charged to expense. Property, plant, and equipment consist primarily of regulated utility generation and energy transmission assets. Regulated assets, utilized primarily for retail operations and electric transmission and distribution, are stated at the cost of construction, which includes certain materials, labor, payroll taxes and benefits, administrative and general costs, and the estimated cost of funds used during construction. Jointly owned assets are reflected in property, plant, and equipment at Cleco Power’s share of the cost to construct or purchase the assets. For information on jointly owned assets, see Note 4 — “Jointly Owned Generation Units.” Cleco’s cost of improvements to property, plant, and equipment is capitalized. Costs associated with repairs and major maintenance projects are expensed as incurred. Cleco capitalizes the cost to purchase or develop software for internal use. |
||||||||||||||||
Deferred Project Costs | Cleco Power defers costs related to the initial stage of a construction project during which time the feasibility of the construction of property, plant, and equipment is being investigated. |
||||||||||||||||
Inventories | Both fuel and materials and supplies inventories are stated at average cost and are issued from inventory using the average cost of existing inventory. |
||||||||||||||||
Accounts Receivable | Accounts receivable are recorded at the invoiced amount and do not bear interest. It is the policy of management to review the outstanding accounts receivable monthly, as well as the bad debt write-offs experienced in the past, and establish an allowance for doubtful accounts. Account balances are charged off against the allowance when management determines it is probable the receivable will not be recovered. |
||||||||||||||||
Financing Receivables | Each subsidiary leases its respective transmission assets to a single counterparty. Both counterparties are considered credit worthy and are expected to pay their obligations when due, thus, no allowance for credit loss has been recognized. Management bases this assessment on the following common factors of each counterparty:
Management monitors both entities for indication of adverse actions by their respective public service commissions and market conditions which would indicate an inability to pay their obligations under the direct financing leases when due. |
||||||||||||||||
Reserves | Cleco maintains property insurance on generating stations, buildings and contents, and substations. Cleco is self-insured for any damage to transmission and distribution lines. To mitigate the exposure to potential financial loss for damage to lines, Cleco maintains an LPSC-approved funded storm reserve. Cleco also maintains liability and workers’ compensation insurance to mitigate financial losses due to injuries and damages to the property of others. Cleco’s insurance covers claims that exceed certain self-insured limits. For claims that do not meet the limits to be covered by insurance, Cleco maintains reserves. |
||||||||||||||||
Cash Equivalents | Cleco considers highly liquid, marketable securities, and other similar instruments with original maturity dates of three months or less to be cash equivalents. |
||||||||||||||||
Restricted Cash | 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 |
||||||||||||||||
Equity Investments | Cleco reports its investment in unconsolidated affiliated companies on the equity method of accounting, as defined in the authoritative guidance on investments. The amounts reported on Cleco Corporation and Cleco Power’s Consolidated Balance Sheets represent assets contributed by Cleco Corporation or Cleco Power, plus their share of the net income of the affiliate, less any distributions of earnings (dividends) received from the affiliate. The revenues and expenses of these affiliates are netted and reported on one line item as equity income from investees on Cleco Corporation and Cleco Power’s Consolidated Statements of Income. For more information, see Note 12 — “Variable Interest Entities.” Cleco applies the provisions of the authoritative guidance on investments to account for equity method investment impairments. Under this standard, Cleco evaluates at each balance sheet date whether events and circumstances have occurred that indicate a possible other-than-temporary decline in the fair value of the investment and the possible inability to recover the carrying value through operations. Cleco uses estimates of the future cash flows from the investee and observable market transactions in order to calculate fair value and recoverability. An impairment is recognized when an other-than-temporary decline in market value occurs and recovery of the carrying value is not probable. |
||||||||||||||||
Income Taxes | Cleco accounts for income taxes under the asset and liability method. Cleco provides for federal and state income taxes currently payable, as well as for those deferred due to timing differences between reporting income and expenses for financial statement purposes versus tax purposes. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted income tax rates expected to be applied to taxable income in the years in which those temporary differences are expected to be recovered or settled. Cleco’s income tax expense and related regulatory assets and liabilities could be affected by changes in its assumptions and estimates and by ultimate resolution of assumptions and estimates with taxing authorities. Cleco files a federal consolidated income tax return for all wholly owned subsidiaries. Cleco computes its federal and state income taxes as if it were a standalone taxpayer. The LPSC generally requires Cleco Power to flow the effects of state income taxes immediately to customers. The LPSC specifically requires that the state tax benefits associated with the deductions related to storm damages be normalized. |
||||||||||||||||
Investment Tax Credits | Investment tax credits, which were deferred for financial statement purposes, are amortized to income over the estimated service lives of the properties that gave rise to the credits. |
||||||||||||||||
Debt Expenses, Premiums, and Discounts | Expenses, premiums, and discounts applicable to debt securities are amortized to income ratably over the lives of the related issues. Expenses and call premiums related to refinanced Cleco Power debt are deferred and amortized over the life of the new issue. |
||||||||||||||||
Revenue and Fuel Costs | Utility Revenue Revenue from sales of electricity is recognized based upon the amount of energy delivered. The costs of fuel and purchased power used for retail customers currently are recovered from customers through the FAC. These costs are subject to audit and final determination by regulators. Excise taxes and pass-through fees collected on the sale of electricity are not recorded in utility revenue. Unbilled Revenue Cleco Power accrues estimated revenue monthly for energy delivered since the latest billings. The monthly estimated unbilled revenue amounts are recorded as revenue and a receivable and are reversed the following month. Other Revenue Other revenue is recognized at the time products or services are provided to and accepted by customers. Franchise Fees Cleco Power collects a consumer fee for one of its franchise agreements. This fee is not recorded on Cleco’s income statement as revenue and expense, but is reflected at gross amounts on Cleco’s balance sheet as a receivable until it is collected and as a payable until the liability is paid. Cleco currently does not have any excise taxes reflected on its income statement. |
||||||||||||||||
Allowance for Funds Used During Construction (AFUDC) | The capitalization of AFUDC by Cleco Power is a utility accounting practice prescribed by FERC and the LPSC. AFUDC represents the estimated cost of financing construction and is not a current source of cash. Under regulatory practices, a return on and recovery of AFUDC is permitted in setting rates charged for utility services. |
||||||||||||||||
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 are required to disclose the fair value of certain assets and liabilities by one of three levels when required for recognition purposes under GAAP. Other financial assets and liabilities, such as long-term debt, are reported at their carrying values at their date of issuance on the consolidated balance sheets with their fair values disclosed without regard to the three levels. For more information about fair value levels, see Note 5 — “Fair Value Accounting.” |
||||||||||||||||
Fair Value, Transfers | Cleco has a policy which states that transfers between Levels 1, 2, and 3 are recognized at the end of a reporting period. During the years ended December 31, 2012, 2011, and 2010, Cleco did not experience any transfers between levels. |
||||||||||||||||
Risk Management | Market risk inherent in Cleco Power’s market risk-sensitive instruments and positions includes potential changes arising from changes in interest rates and the commodity market prices of power and natural gas on different energy exchanges. Cleco’s Energy Market Risk Management Policy authorizes the use of various derivative instruments, including exchange traded futures and option contracts, forward purchase and sales contracts, and swap transactions to reduce exposure to fluctuations in the price of power and natural gas. Cleco applies the authoritative guidance as it relates to derivatives and hedging to determine whether the market risk-sensitive instruments and positions are required to be marked-to-market. Generally, Cleco Power’s market risk-sensitive instruments and positions qualify for the normal-purchase, normal-sale exception to mark-to-market accounting because Cleco Power takes physical delivery and the instruments and positions are used to satisfy customer requirements. Cleco Power may enter into positions to mitigate the volatility in customer fuel costs. These positions are marked-to-market with the resulting gain or loss recorded on the balance sheet as a component of energy risk management assets or liabilities. Such gain or loss is deferred as a component of deferred fuel assets or liabilities. When these positions close, actual gains or losses will be included in the FAC and reflected on customers’ bills as a component of the fuel cost adjustment. Cleco and Cleco Power maintain a master netting agreement policy and monitor credit risk exposure through review of counterparty credit quality, counterparty credit exposure, and counterparty concentration levels. Cleco manages these risks by establishing appropriate credit and concentration limits on transactions with counterparties and by requiring contractual guarantees, cash deposits, or letters of credit from counterparties or their affiliates, as deemed necessary. Cleco Power has agreements in place with various counterparties that authorize the netting of financial buys and sells and contract payments to mitigate credit risk for transactions entered into for risk management purposes. Cleco has entered into various 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 these contracts in which Cleco is hedging the variability of cash flows related to forecasted transactions that qualify as cash flow hedges, the changes in the fair value of such derivative instruments are reported in other comprehensive income. To qualify for hedge accounting, the relationship between the hedging instrument and the hedged item must be documented to include the risk management objective and strategy and, at inception and on an ongoing basis, the effectiveness of the hedge in offsetting the changes in the cash flows of the item being hedged. Gains or losses accumulated in other comprehensive income are reclassified as earnings in the periods in which earnings are affected by the variability of the cash flows of the hedged item. The ineffective portions of hedges will be recognized in current-period earnings unless management determines that it is probable that the costs will be recovered through the rate making process. If management determines that it is probable that the costs will be recovered, then they will be recognized as a regulatory asset or liability and amortized to earnings over the life of the related debt. For those contracts in which Cleco is hedging the variability of cash flows related to forecasted transactions that do not qualify as cash flow hedges, the changes in the fair value of such derivative instruments will be recognized in current period earnings unless management determines that it is probable that the costs will be recovered through the rate-making process. If management determines that it is probable that the costs will be recovered, then they will be recognized as a regulatory asset or liability and amortized to earnings over the life of the related debt. For more information on the interest rate risk contracts, see Note 5 — “Fair Value Accounting — Interest Rate Derivatives.” |
||||||||||||||||
Regulatory Assets and Liabilities | Cleco Power follows the authoritative guidance on regulated operations, which allows utilities to capitalize or defer certain costs based on regulatory approval and management’s ongoing assessment that it is probable these items will be recovered 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 these authoritative guidelines. |
||||||||||||||||
Variable Interest Entity | Cleco reports its investments in VIEs in accordance with the authoritative guidance. Cleco and Cleco Power report the investment in Oxbow on the equity method of accounting. Under the equity method, the assets and liabilities of this entity are reported as equity investment in investees on Cleco Corporation and Cleco Power’s Consolidated Balance Sheets. The revenue and expenses (excluding income taxes) of this entity are netted and reported as equity income or loss from investees on Cleco Corporation and Cleco Power’s Consolidated Statements of Income |
||||||||||||||||
Share-based Compensation, Option and Incentive Plans Policy | Assuming achievement of vesting requirements is probable, stock-based compensation expense of non-vested stock is recorded during the service periods, which are generally three years, after which the restrictions lapse. All stock-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as an expense in the income statement over the award's requisite service period. Awards that vest pro rata during the requisite service period that contain only a service condition are defined as having a graded vesting schedule and could be treated as multiple awards with separate vesting schedules. However, Cleco has elected to treat grants with graded vesting schedules as one award and recognize the related compensation expense on a straight-line basis over the requisite service period. The ESPP does not contain optionality features beyond those listed by the authoritative guidance on stock-based compensation; therefore, Cleco is not required to recognize a fair-value expense related to the ESPP. |
Common and Preferred Stock, Stock-Based Compensation (Details) (USD $)
|
12 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|
Dec. 31, 2012
|
Dec. 31, 2011
|
Dec. 31, 2010
|
||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Pre-Tax Compensation Expense | $ 5,946,000 | $ 7,003,000 | $ 5,139,000 | |||||
Tax Benefit (excluding income tax gross-up) | 2,288,000 | 2,695,000 | 1,977,000 | |||||
Compensation expense, non-forfeitable dividends paid on non-vested stock not expected to vest and stock options | 100,000 | [1] | 100,000 | [1] | ||||
Amount of stock based compensation capitalized | 800,000 | 1,000,000 | ||||||
Non-vested share-based compensation arrangements expected to vest (in shares) | 145,146 | |||||||
Non-vested share-based compensation arrangements, average vesting period | 1 year 7 months | |||||||
Equity Classification [Member]
|
||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Pre-Tax Compensation Expense | 4,440,000 | 3,494,000 | 2,327,000 | |||||
Restricted Stock [Member]
|
||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Pre-Tax Compensation Expense | 4,429,000 | [1] | 3,391,000 | [1] | 2,276,000 | [1] | ||
Stock Options [Member]
|
||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Pre-Tax Compensation Expense | 11,000 | [1] | 103,000 | [1] | 51,000 | [1] | ||
Common Stock Equivalent Units [Member]
|
||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Pre-Tax Compensation Expense | 1,506,000 | 3,509,000 | 2,812,000 | |||||
Cleco Power [Member]
|
||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Pre-Tax Compensation Expense | 1,683,000 | 1,796,000 | 1,846,000 | |||||
Tax Benefit (excluding income tax gross-up) | 648,000 | 691,000 | 710,000 | |||||
Amount of stock based compensation capitalized | 600,000 | 700,000 | ||||||
Cleco Power [Member] | Equity Classification [Member]
|
||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Pre-Tax Compensation Expense | 1,074,000 | 678,000 | 575,000 | |||||
Cleco Power [Member] | Restricted Stock [Member]
|
||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Pre-Tax Compensation Expense | 1,074,000 | [1] | 678,000 | [1] | 575,000 | [1] | ||
Cleco Power [Member] | Stock Options [Member]
|
||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Pre-Tax Compensation Expense | 0 | 0 | 0 | |||||
Cleco Power [Member] | Common Stock Equivalent Units [Member]
|
||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Pre-Tax Compensation Expense | 609,000 | 1,118,000 | 1,271,000 | |||||
LTICP [Member]
|
||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Non-Vested Stock, total unrecognized before-tax compensation cost | $ 4,900,000 | |||||||
|
Schedule I Financial Statements of Cleco Corporation, Condensed Balance Sheets (Details) (USD $)
In Thousands, unless otherwise specified |
Dec. 31, 2012
|
Dec. 31, 2011
|
Dec. 31, 2010
|
Dec. 31, 2009
|
---|---|---|---|---|
Current assets | ||||
Cash and cash equivalents | $ 31,020 | $ 93,576 | $ 191,128 | $ 145,193 |
Other accounts receivable | 37,741 | 42,051 | ||
Taxes receivable, net | 34,612 | 44,584 | ||
Accumulated deferred federal and state income taxes, net | 79,353 | 29,249 | ||
Cash surrender value of life insurance policies | 57,346 | 51,073 | ||
Total current assets | 447,338 | 456,785 | ||
Equity investment in investees | 14,540 | 14,540 | 86,732 | |
Total assets | 4,147,349 | 4,050,202 | 4,161,430 | |
Current liabilities | ||||
Accounts payable | 102,695 | 127,467 | ||
Short-term debt | 0 | |||
Accumulated deferred federal and state income taxes, net | 762,992 | 649,926 | ||
Other current liabilities | 16,926 | 17,154 | ||
Total current liabilities | 294,630 | 321,002 | ||
Tax credit fund investment, net | 78,840 | 61,507 | ||
Deferred credits | 1,096,248 | 972,287 | ||
Total liabilities | 2,648,136 | 2,630,345 | ||
Commitments and Contingencies (Note 5) | ||||
Common shareholders' equity | ||||
Common stock | 60,962 | 60,702 | ||
Premium on common stock | 416,619 | 409,904 | ||
Retained earnings | 1,075,074 | 990,605 | ||
Treasury stock | (21,072) | (13,215) | ||
Accumulated other comprehensive loss | (32,370) | (28,139) | (11,638) | (11,291) |
Total shareholders' equity | 1,499,213 | 1,419,857 | ||
Total liabilities and shareholders' equity | 4,147,349 | 4,050,202 | ||
CLECO CORPORATION (Parent Company Only) [Member]
|
||||
Current assets | ||||
Cash and cash equivalents | 7,418 | 22,642 | 5,320 | 7,080 |
Accounts receivable - affiliate | 9,455 | 13,386 | ||
Other accounts receivable | 1 | 1 | ||
Taxes receivable, net | 30,920 | 8,431 | ||
Accumulated deferred federal and state income taxes, net | 0 | 7,153 | ||
Cash surrender value of life insurance policies | 36,504 | 30,639 | ||
Total current assets | 84,298 | 82,252 | ||
Equity investment in investees | 1,497,788 | 1,392,693 | ||
Accumulated deferred federal and state income taxes, net | 91,359 | 35,675 | ||
Deferred charges | 1,721 | 3,414 | ||
Total assets | 1,675,166 | 1,514,034 | ||
Current liabilities | ||||
Accounts payable | 3,392 | 86 | ||
Short-term debt | 0 | |||
Accounts payable - affiliate | 55,432 | 13,739 | ||
Accumulated deferred federal and state income taxes, net | 2,926 | 0 | ||
Other current liabilities | 10,363 | 8,817 | ||
Total current liabilities | 72,113 | 22,642 | ||
Tax credit fund investment, net | 78,840 | 61,507 | ||
Deferred credits | 0 | 28 | ||
Long-term debt | 25,000 | 10,000 | ||
Total liabilities | 175,953 | 94,177 | ||
Common shareholders' equity | ||||
Common stock | 60,962 | 60,702 | ||
Premium on common stock | 416,619 | 409,904 | ||
Retained earnings | 1,075,074 | 990,605 | ||
Treasury stock | (21,072) | (13,215) | ||
Accumulated other comprehensive loss | (32,370) | (28,139) | ||
Total shareholders' equity | 1,499,213 | 1,419,857 | ||
Total liabilities and shareholders' equity | $ 1,675,166 | $ 1,514,034 |
Schedule II Valuation and Qualifying Accounts (Details) (USD $)
In Thousands, unless otherwise specified |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2012
|
Dec. 31, 2011
|
Dec. 31, 2010
|
|
Allowance for Uncollectible Accounts [Member]
|
|||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of period | $ 1,136 | $ 3,455 | $ 1,173 |
Additions | 828 | 1,992 | 3,756 |
Uncollectible account write-offs less recoveries | 859 | 4,311 | 1,474 |
Balance at end of period | 1,105 | 1,136 | 3,455 |
Unrestricted Storm Reserve [Member]
|
|||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of period | 1,403 | 1,454 | 1,146 |
Additions | 10,968 | 2,000 | 543 |
Deductions | 10,579 | 2,051 | 235 |
Balance at end of period | 1,792 | 1,403 | 1,454 |
Restricted Storm Reserve [Member]
|
|||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of period | 24,880 | 25,993 | 25,434 |
Additions | 1,485 | 887 | 857 |
Deductions | 10,080 | 2,000 | 298 |
Balance at end of period | 16,285 | 24,880 | 25,993 |
Cleco Power [Member] | Allowance for Uncollectible Accounts [Member]
|
|||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of period | 1,136 | 3,395 | 1,173 |
Additions | 828 | 1,972 | 3,696 |
Uncollectible account write-offs less recoveries | 859 | 4,231 | 1,474 |
Balance at end of period | 1,105 | 1,136 | 3,395 |
Cleco Power [Member] | Unrestricted Storm Reserve [Member]
|
|||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of period | 1,403 | 1,454 | 1,146 |
Additions | 10,968 | 2,000 | 543 |
Deductions | 10,579 | 2,051 | 235 |
Balance at end of period | 1,792 | 1,403 | 1,454 |
Cleco Power [Member] | Restricted Storm Reserve [Member]
|
|||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of period | 24,880 | 25,993 | 25,434 |
Additions | 1,485 | 887 | 857 |
Deductions | 10,080 | 2,000 | 298 |
Balance at end of period | $ 16,285 | $ 24,880 | $ 25,993 |
Debt, Credit Facilities (Details) (USD $)
|
12 Months Ended | 0 Months Ended | 1 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | 12 Months Ended | 0 Months Ended | ||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2012
|
Dec. 31, 2011
|
Dec. 31, 2010
|
Dec. 31, 2012
Cleco Corporation [Member]
|
Dec. 31, 2011
Cleco Corporation [Member]
|
Dec. 31, 2010
Cleco Corporation [Member]
|
Dec. 31, 2012
Cleco Power [Member]
|
Dec. 31, 2011
Cleco Power [Member]
|
Dec. 31, 2010
Cleco Power [Member]
|
Dec. 31, 2012
Line of Credit [Member]
|
Feb. 04, 2013
Line of Credit [Member]
Cleco Corporation [Member]
|
Jan. 28, 2013
Line of Credit [Member]
Cleco Corporation [Member]
|
Oct. 07, 2011
Line of Credit [Member]
Cleco Corporation [Member]
|
Nov. 30, 2010
Line of Credit [Member]
Cleco Corporation [Member]
|
Dec. 31, 2012
Line of Credit [Member]
Cleco Corporation [Member]
|
Oct. 07, 2011
Line of Credit [Member]
Cleco Power [Member]
|
Oct. 31, 2011
Line of Credit [Member]
Cleco Power [Member]
|
Dec. 31, 2012
Line of Credit [Member]
Cleco Power [Member]
|
Dec. 31, 2012
Line of Credit [Member]
Cleco Corporation's credit facility draws [Member]
|
Dec. 31, 2011
Line of Credit [Member]
Cleco Corporation's credit facility draws [Member]
|
Feb. 04, 2013
Line of Credit [Member]
Cleco Corporation's credit facility draws [Member]
Cleco Corporation [Member]
|
Jan. 28, 2013
Line of Credit [Member]
Cleco Corporation's credit facility draws [Member]
Cleco Corporation [Member]
|
Dec. 31, 2012
Maximum [Member]
Cleco Power [Member]
|
Dec. 31, 2012
Maximum [Member]
Line of Credit [Member]
Cleco Corporation [Member]
|
|
Credit Facilities [Abstract] | ||||||||||||||||||||||||
Maximum borrowing capacity | $ 550,000,000 | $ 250,000,000 | $ 300,000,000 | |||||||||||||||||||||
Maturity date | Oct. 07, 2016 | Oct. 07, 2016 | ||||||||||||||||||||||
Interest rate description | LIBOR plus 1.50% or ABR | ABR | LIBOR plus 1.275% | |||||||||||||||||||||
Fees (in hundredths) | 0.25% | 0.00% | ||||||||||||||||||||||
Amount outstanding | 0 | 25,000,000 | 10,000,000 | |||||||||||||||||||||
Remaining borrowing capacity | 225,000,000 | 300,000,000 | ||||||||||||||||||||||
Draws on credit facility | 25,000,000 | 95,000,000 | 20,000,000 | 25,000,000 | 35,000,000 | 20,000,000 | 0 | 60,000,000 | 0 | 15,000,000 | 10,000,000 | |||||||||||||
Repayments of Lines of Credit | 10,000,000 | 100,000,000 | 100,000,000 | 10,000,000 | 40,000,000 | 100,000,000 | 0 | 60,000,000 | 0 | 15,000,000 | 10,000,000 | 15,000,000 | 10,000,000 | |||||||||||
Ratio of Indebtedness to Net Capital | 0.65 | 0.65 | ||||||||||||||||||||||
Unrestricted retained earnings | $ 623,700,000 | $ 758,300,000 | $ 623,700,000 | |||||||||||||||||||||
Covenant compliance status | in compliance | in compliance |
Pension Plan and Employee Benefits Pension Plan and Employee Benefits, 401 (K) Plans (Details) (USD $)
In Thousands, unless otherwise specified |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2012
|
Dec. 31, 2011
|
Dec. 31, 2010
|
|
401(k) Plan [Abstract] | |||
401 (k) Plan expense | $ 4,375 | $ 3,917 | $ 3,709 |
Other Subsidiaries [Member]
|
|||
401(k) Plan [Abstract] | |||
401 (k) Plan expense | $ 1,000 | $ 900 | $ 800 |
Summary of Significant Accounting Policies, Equity Investments, Revenue and Fuel Costs, AFUDC (Details)
|
12 Months Ended | ||||
---|---|---|---|---|---|
Apr. 29, 2011
APH [Member]
Acadia Power Partners [Member]
|
Apr. 29, 2011
APH [Member]
Cajun [Member]
|
Dec. 31, 2012
Cleco Power [Member]
|
Dec. 31, 2011
Cleco Power [Member]
|
Dec. 31, 2010
Cleco Power [Member]
|
|
Equity Income | |||||
Ownership interest (in hundredths) | 100.00% | ||||
AFUDC | |||||
Composite AFUDC rate, pre-tax (in hundredths) | 12.10% | 12.00% | 11.90% | ||
Composite AFUDC rate, net of tax (in hundredths) | 7.50% | 7.50% | 7.40% | ||
Ownership interest exchanged (in hundredths) | 50.00% |
Intangible Asset (Details) (USD $)
|
12 Months Ended | 12 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2012
|
Dec. 31, 2011
|
Dec. 31, 2010
|
Dec. 31, 2012
Right to bill and collect storm recovery charges from customers and financing costs [Member]
|
Dec. 31, 2011
Right to bill and collect storm recovery charges from customers and financing costs [Member]
|
Dec. 31, 2008
Right to bill and collect storm recovery charges from customers and financing costs [Member]
|
Dec. 31, 2008
Right to bill and collect storm recovery charges from customers [Member]
|
Dec. 31, 2008
Financing costs [Member]
|
Dec. 31, 2008
Minimum [Member]
Right to bill and collect storm recovery charges from customers and financing costs [Member]
|
Dec. 31, 2008
Maximum [Member]
Right to bill and collect storm recovery charges from customers and financing costs [Member]
|
|
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||||||
Acquired intangible asset | $ 177,500,000 | $ 176,000,000 | $ 1,500,000 | |||||||
Intangible asset expected useful life, minimum (in years) | 12 years | 15 years | ||||||||
Amortization expense | 13,100,000 | 11,800,000 | 11,700,000 | |||||||
Intangible asset, net [Abstract] | ||||||||||
Gross carrying amount | 177,537,000 | 177,537,000 | ||||||||
Accumulated amortization | 56,992,000 | 43,942,000 | ||||||||
Intangible asset | 120,545,000 | 133,595,000 | 120,545,000 | 133,595,000 | ||||||
Expected amortization expense | ||||||||||
For the year ending December 31, 2013 | 14,026,000 | |||||||||
For the year ending December 31, 2014 | 14,931,000 | |||||||||
For the year ending December 31, 2015 | 15,876,000 | |||||||||
For the year ending December 31, 2016 | 16,864,000 | |||||||||
For the year ending December 31, 2017 | 18,009,000 | |||||||||
After 2017 | $ 40,839,000 |
Common and Preferred Stock, Employee Stock Purchase Plan (Details) (USD $)
|
12 Months Ended |
---|---|
Dec. 31, 2012
|
|
Employee Stock Purchase Plan Disclosures [Line Items] | |
Employee Stock Ownership Plan (ESOP), Plan Description | Regular, full-time, and part-time employees of Cleco Corporation and its participating subsidiaries, except officers, general managers, and employees who own 5% or more of Cleco Corporation's stock, may participate in the ESPP. |
Employee Stock Purchase Plan [Member]
|
|
Employee Stock Purchase Plan Disclosures [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Discount from Market Price, Offering Date | 5.00% |
Share-based Compensation Arrangement by Share-based Payment Award, Maximum Number of Shares Per Employee | 62 |
Maximum number of shares of common stock which may be purchased under the ESPP (in shares) | 734,000 |
Number of shares of common stock available for purchase under the ESPP (in shares) | 418,527 |
Minimum [Member] | Employee Stock Purchase Plan [Member]
|
|
Employee Stock Purchase Plan Disclosures [Line Items] | |
Employee payroll deductions, minimum | 10 |
Maximum [Member] | Employee Stock Purchase Plan [Member]
|
|
Employee Stock Purchase Plan Disclosures [Line Items] | |
Employee payroll deductions maximum | 350 |
Pension Plan and Employee Benefits, Unobservable Input Reconciliation (Details) (Pension Benefits [Member], USD $)
In Thousands, unless otherwise specified |
12 Months Ended | |
---|---|---|
Dec. 31, 2012
|
Dec. 31, 2011
|
|
Fair value of plan assets [Roll Forward] | ||
Fair value of plan assets, end of period | $ 341,892 | $ 310,197 |
Preferred Stock [Member]
|
||
Fair value of plan assets [Roll Forward] | ||
Fair value of plan assets, end of period | 379 | 291 |
Real estate funds [Member]
|
||
Fair value of plan assets [Roll Forward] | ||
Fair value of plan assets, end of period | 17,341 | 16,349 |
Hedge Funds [Member]
|
||
Fair value of plan assets [Roll Forward] | ||
Fair value of plan assets, end of period | 2,587 | 2,892 |
Level 3 [Member]
|
||
Fair value of plan assets [Roll Forward] | ||
Fair value of plan assets, beginning of period | 19,241 | 17,839 |
Realized gain (loss) | 2 | 17 |
Unrealized gain (loss) | 864 | 1,531 |
Purchases, issuances, and settlements, net | 258 | 327 |
Transfer out | (437) | (473) |
Fair value of plan assets, end of period | 19,928 | 19,241 |
Level 3 [Member] | Preferred Stock [Member]
|
||
Fair value of plan assets [Roll Forward] | ||
Fair value of plan assets, end of period | 0 | 0 |
Level 3 [Member] | Real estate funds [Member]
|
||
Fair value of plan assets [Roll Forward] | ||
Fair value of plan assets, beginning of period | 16,349 | 14,568 |
Realized gain (loss) | 0 | 0 |
Unrealized gain (loss) | 734 | 1,454 |
Purchases, issuances, and settlements, net | 258 | 327 |
Transfer out | 0 | 0 |
Fair value of plan assets, end of period | 17,341 | 16,349 |
Level 3 [Member] | Hedge Funds [Member]
|
||
Fair value of plan assets [Roll Forward] | ||
Fair value of plan assets, beginning of period | 2,892 | 3,271 |
Realized gain (loss) | 2 | 17 |
Unrealized gain (loss) | 130 | 77 |
Purchases, issuances, and settlements, net | 0 | |
Transfer out | (437) | (473) |
Fair value of plan assets, end of period | $ 2,587 | $ 2,892 |
Common and Preferred Stock, Preferred Stock (Details) (Cumulative Preferred Stock, $100 Par Value, Not Subject to Mandatory Redemption 4.5% [Member], USD $)
|
12 Months Ended | |
---|---|---|
Dec. 31, 2011
|
Jun. 24, 2011
|
|
Cumulative Preferred Stock, $100 Par Value, Not Subject to Mandatory Redemption 4.5% [Member]
|
||
Preferred Stock [Abstract] | ||
Redemption date | Jun. 24, 2011 | |
Preferred stock redeemed (in shares) | 10,288 | |
Preferred stock not subject to mandatory redemption, dividend rate (in hundredths) | 4.50% | |
Redemption price (in dollars per share) | $ 101 | |
Redemption price, plus accrued and unpaid dividends to the redemption date (in dollars per share) | $ 101.296 |
Pension Plan and Employee Benefits, Pension Plan Asset Investment Objectives (Details)
|
12 Months Ended |
---|---|
Dec. 31, 2012
|
|
Defined Benefit Plan Disclosure [Line Items] | |
Maximum notional value of derivative positions of the total pension fund's value | 20.00% |
Pension Benefits [Member] | Domestic Equity [Member]
|
|
Investment asset allocation target percentage of total plan assets [Abstract] | |
Target plan allocations | 21.00% |
Pension Benefits [Member] | International Equity [Member]
|
|
Investment asset allocation target percentage of total plan assets [Abstract] | |
Target plan allocations | 18.00% |
Pension Benefits [Member] | Real estate funds [Member]
|
|
Investment asset allocation target percentage of total plan assets [Abstract] | |
Target plan allocations | 8.00% |
Pension Benefits [Member] | Hedge Funds [Member]
|
|
Investment asset allocation target percentage of total plan assets [Abstract] | |
Target plan allocations | 2.00% |
Pension Benefits [Member] | Return Seeking [Member]
|
|
Investment asset allocation target percentage of total plan assets [Abstract] | |
Target plan allocations, minimum | 43.00% |
Target plan allocations | 49.00% |
Target plan allocations, maximum | 53.00% |
Pension Benefits [Member] | Fixed income- long government/credit [Member]
|
|
Investment asset allocation target percentage of total plan assets [Abstract] | |
Target plan allocations | 17.00% |
Pension Benefits [Member] | Fixed income- long credit [Member]
|
|
Investment asset allocation target percentage of total plan assets [Abstract] | |
Target plan allocations | 36.00% |
Pension Benefits [Member] | Liability Hedging [Member]
|
|
Investment asset allocation target percentage of total plan assets [Abstract] | |
Target plan allocations, minimum | 47.00% |
Target plan allocations | 53.00% |
Target plan allocations, maximum | 57.00% |
Common and Preferred Stock, Long-Term Incentive Compensation Plan, Stock Options (Details) (USD $)
|
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2012
|
Dec. 31, 2011
|
Dec. 31, 2010
|
|
Stock Options, Outstanding [Roll Forward] | |||
Outstanding, beginning of period (in shares) | 94,070 | ||
Exercised (in shares) | 94,070 | ||
Forfeited (in shares) | 0 | ||
Outstanding, end of period (in shares) | 0 | 94,070 | |
Exercisable, end of period (in shares) | 0 | ||
Stock Options, Weighted Average Exercise Price [Roll Forward] | |||
Weighted average exercise price, outstanding, beginning of period (in dollars per share) | $ 21.12 | ||
Weighted average exercise price, exercised (in dollars per share) | $ 21.12 | ||
Weighted average exercise price, forfeited (in dollars per share) | $ 0.00 | ||
Weighted average exercise price, outstanding, end of period (in dollars per share) | $ 0.00 | $ 21.12 | |
Weighted average exercise price, exercisable, end of period (in dollars per share) | $ 0.00 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 0 years | ||
Stock Options, Weighted Average Remaining Contractual Term [Roll Forward] | |||
Weighted average remaining contractual term, outstanding, beginning of period (in years) | 0 years | 14 years 11 months | |
Weighted average remaining contractual term, outstanding, end of period (in years) | 0 years | 14 years 11 months | |
Stock Options, Aggregate Intrinsic Value [Roll Forward] | |||
Aggregate intrinsic value, outstanding, beginning of period | $ 1,597,000 | ||
Aggregate intrinsic value of options exercised during the year | 1,765,000 | ||
Aggregate intrinsic value, outstanding, end of period | 0 | 1,597,000 | |
Agregate instrinsic value, exercisable end of period | 0 | ||
Stock Options, Additional General Disclosures [Abstract] | |||
Stock Options, Outstanding (in shares) | 0 | 94,070 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0 | ||
Aggregate intrinsic value of options exercised during the year | 1,765,000 | ||
Stock Options [Member]
|
|||
Stock Options, Aggregate Intrinsic Value [Roll Forward] | |||
Aggregate intrinsic value of options exercised during the year | 1,800,000 | 500,000 | 1,100,000 |
Stock Options, Additional General Disclosures [Abstract] | |||
Aggregate intrinsic value of options exercised during the year | 1,800,000 | 500,000 | 1,100,000 |
Employee Service Share-based Compensation, Cash Received from Exercise of Stock Options | 2,000,000 | 900,000 | 3,200,000 |
Employee Service Share-based Compensation, Tax Benefit Realized from Exercise of Stock Options | $ 700,000 | $ 200,000 | $ 400,000 |
2000 Long-Term Incentive Compensation Plan [Member]
|
|||
Stock Options, Outstanding [Roll Forward] | |||
Outstanding, end of period (in shares) | 0 | ||
Stock Options, Additional General Disclosures [Abstract] | |||
Stock Options, Outstanding (in shares) | 0 |
Debt, Capital Lease Agreements (Details) (Barge lease obligations, ending December 31, 2017 [Member], Capital Lease Obligations [Member], USD $)
In Thousands, unless otherwise specified |
Dec. 31, 2012
|
---|---|
Debt Instrument [Line Items] | |
2013 | $ 2,171 |
2014 | 2,305 |
2015 | 2,448 |
2016 | 2,607 |
2017 | 1,819 |
Cleco Power [Member]
|
|
Debt Instrument [Line Items] | |
2013 | 2,171 |
2014 | 2,305 |
2015 | 2,448 |
2016 | 2,607 |
2017 | $ 1,819 |
Intangible Asset
|
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2012
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible Asset | During 2008, Cleco Katrina/Rita acquired a $177.5 million intangible asset which includes $176.0 million for the right to bill and collect storm recovery charges from customers of Cleco Power and $1.5 million of financing costs. This intangible asset is expected to have a life of 12 years, but could have a life of up to 15 years depending on the time period required to collect the required amount from Cleco Power’s customers. The intangible asset’s expected amortization expense is based on the estimated collections from Cleco Power’s customers. At the end of its life, this asset will have no residual value. During the years ended December 31, 2012, 2011, and 2010, Cleco Katrina/Rita recognized amortization expense of $13.1 million, $11.8 million, and $11.7 million, respectively, based on actual collections. The following table summarizes the intangible asset balance as of December 31, 2012 and 2011.
The following table summarizes the amortization expense expected to be recognized during each year through 2017 and thereafter.
|
Schedule I Financial Statements of Cleco Corporation Condensed Financial information of Parent company (Tables)
|
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2012
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Related Party Transactions | The following table is a summary of affiliate revenue included in Cleco’s Consolidated Statements of Income.
The following table summarizes the cash distributions Cleco Corporation received from affiliates during 2012, 2011, and 2010.
The following table summarizes the contributions Cleco Corporation made to affiliates during 2012, 2011, and 2010.
|
Disclosures about Segments (Tables)
|
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2012
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information |
|
Common and Preferred Stock, Stock-Based Plan Descriptions and Share Information (Details)
|
12 Months Ended |
---|---|
Dec. 31, 2012
|
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Number of stock-based plans | 2 |
Disclosures about Segments (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2012
entity
|
Sep. 30, 2012
|
Jun. 30, 2012
|
Mar. 31, 2012
|
Dec. 31, 2011
|
Sep. 30, 2011
|
Jun. 30, 2011
|
Mar. 31, 2011
|
Dec. 31, 2012
entity
|
Dec. 31, 2011
|
Dec. 31, 2010
|
|
Segment Reporting Information [Line Items] | |||||||||||
Number of transmission interconnection facility subsidiaries | 2 | 2 | |||||||||
Revenue | |||||||||||
Electric operations | $ 944,169 | $ 1,051,956 | $ 1,086,102 | ||||||||
Tolling operations | 0 | 19,004 | 26,067 | ||||||||
Other operations | 50,158 | 52,962 | 44,529 | ||||||||
Electric customer credits | (630) | (6,811) | (9,596) | ||||||||
Affiliate revenue | 0 | 202 | 1,564 | ||||||||
Operating revenue, net | 233,431 | 297,372 | 240,123 | 222,773 | 239,119 | 351,581 | 272,923 | 253,690 | 993,697 | 1,117,313 | 1,148,666 |
Depreciation | 132,407 | 122,578 | 114,584 | ||||||||
Interest charges | 84,156 | 70,658 | 95,776 | ||||||||
Interest income | 346 | 891 | 409 | ||||||||
Equity income (loss) from investees, before tax | 0 | 62,050 | 38,849 | ||||||||
Gain on toll settlement | 0 | 0 | 148,402 | ||||||||
Federal and state income tax expense | 65,327 | 102,897 | 142,498 | ||||||||
Segment profit (loss) | 163,648 | 195,848 | 255,391 | ||||||||
Additions to long-lived assets | 232,724 | 211,695 | 453,221 | ||||||||
Equity investment in investees | 14,540 | 14,540 | 14,540 | 14,540 | 86,732 | ||||||
Total segment assets | 4,147,349 | 4,050,202 | 4,147,349 | 4,050,202 | 4,161,430 | ||||||
Unallocated items: | |||||||||||
Preferred dividends requirements | 0 | 26 | 46 | ||||||||
Preferred stock redemption costs | 0 | 112 | 0 | ||||||||
Net income applicable to common stock | 23,112 | 63,818 | 46,686 | 30,031 | 30,643 | 65,842 | 70,221 | 29,004 | 163,648 | 195,710 | 255,345 |
Midstream [Member]
|
|||||||||||
Revenue | |||||||||||
Electric operations | 0 | 0 | 0 | ||||||||
Tolling operations | 25,559 | 19,004 | 26,067 | ||||||||
Other operations | 3 | 9 | 3 | ||||||||
Electric customer credits | 0 | 0 | 0 | ||||||||
Affiliate revenue | 0 | 45 | 960 | ||||||||
Operating revenue, net | 25,562 | 19,058 | 27,030 | ||||||||
Depreciation | 6,006 | 5,872 | 5,779 | ||||||||
Interest charges | 770 | (28,996) | 7,140 | ||||||||
Interest income | 0 | 25 | 0 | ||||||||
Equity income (loss) from investees, before tax | 62,053 | 38,848 | |||||||||
Gain on toll settlement | 148,402 | ||||||||||
Federal and state income tax expense | 6,404 | 44,637 | 71,255 | ||||||||
Segment profit (loss) | 9,155 | 42,792 | 114,467 | ||||||||
Additions to long-lived assets | 8,759 | 8,437 | 2,113 | ||||||||
Equity investment in investees | 0 | 0 | 0 | 0 | 73,648 | ||||||
Total segment assets | 215,342 | 233,891 | 215,342 | 233,891 | 316,166 | ||||||
Reconciling Items [Member]
|
|||||||||||
Revenue | |||||||||||
Electric operations | 0 | 0 | 0 | ||||||||
Tolling operations | 0 | 0 | 0 | ||||||||
Other operations | 1,998 | 2,011 | 1,959 | ||||||||
Electric customer credits | 0 | 0 | 0 | ||||||||
Affiliate revenue | 52,063 | 53,068 | 47,924 | ||||||||
Operating revenue, net | 54,061 | 55,079 | 49,883 | ||||||||
Depreciation | 916 | 1,072 | 838 | ||||||||
Interest charges | 2,269 | 2,405 | 10,551 | ||||||||
Interest income | (602) | 77 | 675 | ||||||||
Equity income (loss) from investees, before tax | (3) | 1 | |||||||||
Gain on toll settlement | 0 | ||||||||||
Federal and state income tax expense | (9,210) | (11,149) | (3,864) | ||||||||
Segment profit (loss) | 7,645 | 10,221 | (6,480) | ||||||||
Additions to long-lived assets | 1,861 | 1,278 | 2,056 | ||||||||
Equity investment in investees | 8 | 8 | 8 | 8 | 11 | ||||||
Total segment assets | 201,678 | 201,074 | 201,678 | 201,074 | 401,663 | ||||||
Eliminations [Member]
|
|||||||||||
Revenue | |||||||||||
Electric operations | 0 | 0 | 0 | ||||||||
Tolling operations | (25,559) | 0 | 0 | ||||||||
Other operations | 1 | (6) | (11) | ||||||||
Electric customer credits | 0 | 0 | 0 | ||||||||
Affiliate revenue | (53,435) | (54,300) | (48,691) | ||||||||
Operating revenue, net | (78,993) | (54,306) | (48,702) | ||||||||
Depreciation | (1) | 0 | 1 | ||||||||
Interest charges | 615 | 159 | (646) | ||||||||
Interest income | 615 | 159 | (645) | ||||||||
Equity income (loss) from investees, before tax | 0 | 0 | |||||||||
Gain on toll settlement | 0 | ||||||||||
Federal and state income tax expense | 0 | 0 | 0 | ||||||||
Segment profit (loss) | 0 | 0 | (1) | ||||||||
Additions to long-lived assets | 0 | 0 | 0 | ||||||||
Equity investment in investees | 0 | 0 | 0 | 0 | 0 | ||||||
Total segment assets | (141,400) | (111,234) | (141,400) | (111,234) | (351,626) | ||||||
Cleco Power [Member]
|
|||||||||||
Revenue | |||||||||||
Electric operations | 944,169 | 1,051,956 | 1,086,102 | ||||||||
Tolling operations | 0 | 0 | 0 | ||||||||
Other operations | 48,156 | 50,948 | 42,578 | ||||||||
Electric customer credits | (630) | (6,811) | (9,596) | ||||||||
Affiliate revenue | 1,372 | 1,389 | 1,371 | ||||||||
Operating revenue, net | 233,269 | 297,212 | 239,967 | 222,620 | 236,099 | 342,296 | 268,464 | 250,623 | 993,067 | 1,097,482 | 1,120,455 |
Depreciation | 125,486 | 115,634 | 107,966 | ||||||||
Interest charges | 80,502 | 97,090 | 78,731 | ||||||||
Interest income | 333 | 630 | 379 | ||||||||
Equity income (loss) from investees, before tax | 0 | 0 | |||||||||
Gain on toll settlement | 0 | ||||||||||
Federal and state income tax expense | 68,133 | 69,409 | 75,107 | ||||||||
Segment profit (loss) | 24,975 | 57,783 | 37,284 | 26,805 | 23,278 | 53,833 | 35,694 | 30,030 | 146,848 | 142,835 | 147,405 |
Additions to long-lived assets | 222,104 | 201,980 | 449,052 | ||||||||
Equity investment in investees | 14,532 | 14,532 | 14,532 | 14,532 | 13,073 | ||||||
Total segment assets | $ 3,871,729 | $ 3,726,471 | $ 3,871,729 | $ 3,726,471 | $ 3,795,227 |
Fair Value Accounting (Tables)
|
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2012
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value By Balance Sheet Grouping |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Available-for-sale Securities Reconciliation | The following table provides a reconciliation of Cleco Power’s available-for-sale debt securities from cost basis to fair value at December 31, 2012.
(1) Unrealized gains and losses are recorded to the restricted storm reserve. |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | The following table summarizes the debt securities that were in an unrealized loss position at December 31, 2012, but for which no other-than-temporary impairment was recognized:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Available-for-sale Securities | At December 31, 2012, the fair value of Cleco Power’s available-for-sale debt securities by contractual maturity was:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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, 2012 and 2011:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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, 2012, 2011, and 2010.
(1) For the year ended December 31, 2010, Cleco recognized a $0.4 million mark-to-market gain, related to economic hedges. (2) In accordance with the authoritative guidance for regulated operations, no unrealized losses and no deferred losses associated with fuel cost hedges are reported in Accumulated Deferred Fuel on the balance sheet as of December 31, 2012, compared to $5.3 million of unrealized losses and $1.2 million of deferred losses as of December 31, 2011, and $15.1 million of unrealized losses and $1.6 million of deferred losses associated with fuel costs hedges as of December 31, 2010. 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, 2012, 2011, and 2010:
* 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 |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Financial Assets and Liabilities Measured On A Recurring Basis |
|
Summary of Significant Accounting Policies, Reclassifications (Details) (USD $)
In Thousands, unless otherwise specified |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2012
|
Dec. 31, 2011
|
Dec. 31, 2010
|
|
Depreciation | $ 132,407 | $ 122,578 | $ 114,584 |
Reclassifications [Abstract] | |||
Accounts receivable | (11,543) | (19,146) | (12,503) |
Accounts payable | (23,016) | (3,618) | 8,140 |
Other deferred accounts | 15,695 | (4,305) | 114 |
Net cash provided by operating activities | 263,105 | 310,061 | 216,899 |
Additions to property, plant, and equipment | (245,033) | (202,405) | (306,883) |
Net cash used in investing activities | (229,164) | (103,716) | (308,631) |
Net increase in cash and cash equivalents | (62,556) | (97,552) | 45,935 |
Cash and cash equivalents at beginning of period | 93,576 | 191,128 | 145,193 |
Cash and cash equivalents at end of period | 31,020 | 93,576 | 191,128 |
Accrued additions to property, plant, and equipment | 16,102 | 17,525 | 6,032 |
Cash Flows Related To Contributions Received In Aid Of Construction Adjustment [Member]
|
|||
Reclassifications [Abstract] | |||
Accounts receivable | (19,146) | (12,503) | |
Other deferred accounts | 4,305 | (114) | |
Net cash provided by operating activities | 310,061 | 216,899 | |
Additions to property, plant, and equipment | (202,405) | (306,883) | |
Net cash used in investing activities | (103,716) | (308,631) | |
Net increase in cash and cash equivalents | (97,552) | 45,935 | |
Cash and cash equivalents at beginning of period | 191,128 | 145,193 | |
Cash and cash equivalents at end of period | 93,576 | 191,128 | |
Cash Flows Related To Contributions Received In Aid Of Construction Adjustment [Member] | As Reported [Member]
|
|||
Reclassifications [Abstract] | |||
Accounts receivable | (15,798) | (16,156) | |
Other deferred accounts | (1,084) | 1,813 | |
Net cash provided by operating activities | 308,020 | 215,173 | |
Additions to property, plant, and equipment | (200,364) | (305,157) | |
Net cash used in investing activities | (101,675) | (306,905) | |
Net increase in cash and cash equivalents | (97,552) | 45,935 | |
Cash and cash equivalents at beginning of period | 191,128 | 145,193 | |
Cash and cash equivalents at end of period | 93,576 | 191,128 | |
Cleco Power [Member]
|
|||
Depreciation | 125,486 | 115,634 | 107,966 |
Reclassifications [Abstract] | |||
Accounts receivable | (12,290) | (18,206) | (12,608) |
Accounts payable | (22,874) | (4,498) | 8,907 |
Other deferred accounts | 19,989 | 2,399 | 10,009 |
Net cash provided by operating activities | 244,100 | 251,758 | 172,485 |
Additions to property, plant, and equipment | (238,943) | (184,615) | (150,937) |
Net cash used in investing activities | (203,557) | (172,234) | (136,398) |
Net increase in cash and cash equivalents | (44,090) | (117,454) | 46,799 |
Cash and cash equivalents at beginning of period | 67,458 | 184,912 | 138,113 |
Cash and cash equivalents at end of period | 23,368 | 67,458 | 184,912 |
Accrued additions to property, plant, and equipment | 15,547 | 21,007 | 5,697 |
Cleco Power [Member] | Cash Flows Related To Contributions Received In Aid Of Construction Adjustment [Member]
|
|||
Reclassifications [Abstract] | |||
Accounts receivable | (18,206) | (12,608) | |
Other deferred accounts | (2,399) | (10,009) | |
Net cash provided by operating activities | 251,758 | 172,485 | |
Additions to property, plant, and equipment | (184,615) | (150,937) | |
Net cash used in investing activities | (172,234) | (136,398) | |
Net increase in cash and cash equivalents | (117,454) | 46,799 | |
Cash and cash equivalents at beginning of period | 184,912 | 138,113 | |
Cash and cash equivalents at end of period | 67,458 | 184,912 | |
Cleco Power [Member] | Cash Flows Related To Contributions Received In Aid Of Construction Adjustment [Member] | As Reported [Member]
|
|||
Reclassifications [Abstract] | |||
Accounts receivable | (14,858) | (16,261) | |
Other deferred accounts | (7,788) | (8,082) | |
Net cash provided by operating activities | 249,717 | 170,759 | |
Additions to property, plant, and equipment | (182,574) | (149,211) | |
Net cash used in investing activities | (170,193) | (134,672) | |
Net increase in cash and cash equivalents | (117,454) | 46,799 | |
Cash and cash equivalents at beginning of period | 184,912 | 138,113 | |
Cash and cash equivalents at end of period | 67,458 | 184,912 | |
ReclassificationOfPlantAcquisitionAdjustmentAmortization [Member]
|
|||
Depreciation | $ 2,800 | $ 2,400 |
Fair Value Accounting, Fair Values of Derivative Instruments (Details) (Derivatives Not Designated As Hedging Instruments [Member], USD $)
In Thousands, unless otherwise specified |
Dec. 31, 2012
|
Dec. 31, 2011
|
---|---|---|
Fair values of derivative instruments [Abstract] | ||
Total | $ 0 | $ (5,336) |
Energy Risk Management Liability, Net [Member] | Fuel Cost Hedges [Member]
|
||
Fair values of derivative instruments [Abstract] | ||
Current | $ 0 | $ (5,336) |
Acadia Transactions (Details) (USD $)
In Millions, unless otherwise specified |
Feb. 28, 2010
Cleco Power [Member]
Acadia Unit 1 and Facilities [Member]
|
Feb. 28, 2010
APH [Member]
Acadia Unit 1 and Facilities [Member]
|
Apr. 29, 2011
APH [Member]
Acadia Unit 2 and Facilities [Member]
|
Feb. 28, 2010
Acadia Power Partners [Member]
Acadia Unit 1 and Facilities [Member]
|
Apr. 29, 2011
Acadia Power Partners [Member]
Acadia Unit 2 and Facilities [Member]
|
Apr. 29, 2011
Acadia Power Partners [Member]
APH [Member]
|
Apr. 29, 2011
Cajun [Member]
APH [Member]
|
---|---|---|---|---|---|---|---|
Significant Acquisitions and Disposals [Line Items] | |||||||
Proceeds from plant disposition | $ (304.0) | $ (298.8) | |||||
Deferred taxes recognized | 78.4 | ||||||
Recognized gain on transaction | 62.0 | 82.0 | |||||
Indemnification against third parties | 6.8 | 10.9 | |||||
Third parties' share of entity's liabilities (in hundredths) | 50.00% | 50.00% | |||||
Net adjustment to equity income | 26.2 | ||||||
Impairment of investment | 45.9 | ||||||
Capitalized interest and other | $ 19.7 | ||||||
Ownership interest received (in hundredths) | 100.00% | ||||||
Ownership interest exchanged (in hundredths) | 50.00% |
Jointly Owned Generation Units (Details) (USD $)
|
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2012
|
Dec. 31, 2011
|
Dec. 31, 2010
|
|
Jointly Owned Utility Plant Interests [Line Items] | |||
Nameplate capacity (MW) | 2,565 | ||
Cleco Power [Member]
|
|||
Jointly Owned Utility Plant Interests [Line Items] | |||
Number of generation units jointly owned | 2 | ||
Utility plant in service | $ 397,021,000 | ||
Accumulated depreciation | 268,738,000 | ||
Cleco Power [Member] | Jointly Owned Electricity Generation Plant [Member]
|
|||
Jointly Owned Utility Plant Interests [Line Items] | |||
Operating and maintenance expenses associated with jointly owned generation units | 130,200,000 | 131,800,000 | 118,300,000 |
Fuel costs included in operating and maintenance expenses associated with jointly owned generation units | 107,900,000 | 109,200,000 | 97,900,000 |
Cleco Power [Member] | Rodemacher Unit #2 [Member]
|
|||
Jointly Owned Utility Plant Interests [Line Items] | |||
Utility plant in service | 92,011,000 | ||
Accumulated depreciation | 69,600,000 | ||
Ownership | 30.00% | ||
Nameplate capacity (MW) | 523 | ||
Cleco Power's ownership interest (MW) | 157 | ||
Cleco Power [Member] | Dolet Hills [Member]
|
|||
Jointly Owned Utility Plant Interests [Line Items] | |||
Utility plant in service | 305,010,000 | ||
Accumulated depreciation | $ 199,138,000 | ||
Ownership | 50.00% | ||
Nameplate capacity (MW) | 650 | ||
Cleco Power's ownership interest (MW) | 325 |
Intangible Asset (Tables)
|
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2012
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible Asset, Net | The following table summarizes the intangible asset balance as of December 31, 2012 and 2011.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expected Amortization Expense | The following table summarizes the amortization expense expected to be recognized during each year through 2017 and thereafter.
|
Consolidated Statements of Changes in Member's Equity (USD $)
In Thousands |
Total
|
Accumulated Other Comprehensive Income (Loss) [Member]
|
Cleco Power [Member]
|
Cleco Power [Member]
Member's Equity [Member]
|
Cleco Power [Member]
Accumulated Other Comprehensive Income (Loss) [Member]
|
---|---|---|---|---|---|
Member's Equity, Balance at Dec. 31, 2009 | $ 1,009,849 | $ 1,015,520 | $ (5,671) | ||
Other comprehensive income (loss), net of tax | (347) | (347) | 937 | 937 | |
Distribution to parent | (183,700) | (150,000) | (150,000) | ||
Non-cash property donation, net of tax | 225,732 | 225,732 | |||
Net income | 255,391 | 147,405 | 147,405 | ||
Member's Equity, Balance at Dec. 31, 2010 | 1,233,923 | 1,238,657 | (4,734) | ||
Distribution to parent | (50,000) | ||||
Net income | 30,030 | ||||
Member's Equity, Balance at Mar. 31, 2011 | |||||
Member's Equity, Balance at Dec. 31, 2010 | 1,233,923 | 1,238,657 | (4,734) | ||
Other comprehensive income (loss), net of tax | (16,501) | (16,501) | (15,896) | (15,896) | |
Distribution to parent | (291,219) | (130,000) | (130,000) | ||
Net income | 195,848 | 142,835 | 142,835 | ||
Member's Equity, Balance at Dec. 31, 2011 | 1,230,862 | 1,251,492 | (20,630) | ||
Member's Equity, Balance at Sep. 30, 2011 | |||||
Distribution to parent | (30,000) | ||||
Net income | 23,278 | ||||
Member's Equity, Balance at Dec. 31, 2011 | 1,230,862 | ||||
Distribution to parent | (30,000) | ||||
Net income | 26,805 | ||||
Member's Equity, Balance at Mar. 31, 2012 | |||||
Member's Equity, Balance at Dec. 31, 2011 | 1,230,862 | 1,251,492 | (20,630) | ||
Other comprehensive income (loss), net of tax | (4,231) | (4,231) | 209 | 209 | |
Distribution to parent | (63,700) | (58,000) | (58,000) | ||
Net income | 163,648 | 146,848 | 146,848 | ||
Member's Equity, Balance at Dec. 31, 2012 | 1,319,919 | 1,340,340 | (20,421) | ||
Member's Equity, Balance at Sep. 30, 2012 | |||||
Distribution to parent | 0 | ||||
Net income | 24,975 | ||||
Member's Equity, Balance at Dec. 31, 2012 | $ 1,319,919 |
Miscellaneous Financial Information (Unaudited), Dividends and Preferred Stock Redemption (Details) (Common Stock [Member], USD $)
|
1 Months Ended | ||||||
---|---|---|---|---|---|---|---|
Oct. 31, 2012
|
Jul. 31, 2012
|
Apr. 30, 2012
|
Jan. 31, 2012
|
Oct. 31, 2011
|
Apr. 30, 2011
|
Jan. 24, 2013
Subsequent Event [Member]
|
|
Dividends Payable [Line Items] | |||||||
Dividend payable (in dollars per share) | $ 0.3125 | $ 0.28 | $ 0.3375 | ||||
Common Stock, Dividends, Per Share, Declared | $ 0.3375 | $ 0.3375 | $ 0.3125 | $ 0.3125 |
Fair Value Accounting, Carrying Value and Estimated Fair Value (Details) (USD $)
In Thousands, unless otherwise specified |
Dec. 31, 2012
|
Dec. 31, 2011
|
---|---|---|
Carrying Value [Member]
|
||
Financial instruments not marked-to-market [Abstract] | ||
Cash and cash equivalents | $ 31,020 | $ 93,576 |
Restricted cash and cash equivalents | 14,221 | 35,828 |
Long-term debt, excluding debt issuance costs | 1,345,198 | 1,354,567 |
Estimated Fair Value [Member]
|
||
Financial instruments not marked-to-market [Abstract] | ||
Cash and cash equivalents | 31,020 | 93,576 |
Restricted cash and cash equivalents | 14,221 | 35,828 |
Long-term debt, excluding debt issuance costs | 1,579,674 | 1,542,867 |
Cleco Power [Member] | Carrying Value [Member]
|
||
Financial instruments not marked-to-market [Abstract] | ||
Cash and cash equivalents | 23,368 | 67,458 |
Restricted cash and cash equivalents | 14,124 | 35,731 |
Long-term debt, excluding debt issuance costs | 1,320,198 | 1,344,567 |
Cleco Power [Member] | Estimated Fair Value [Member]
|
||
Financial instruments not marked-to-market [Abstract] | ||
Cash and cash equivalents | 23,368 | 67,458 |
Restricted cash and cash equivalents | 14,124 | 35,731 |
Long-term debt, excluding debt issuance costs | $ 1,554,674 | $ 1,532,867 |