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Electric Customer Credits
12 Months Ended
Dec. 31, 2012
Regulated Operations [Abstract]  
Electric Customer Credits
The current amount of Cleco Power’s annual retail earnings is subject to the terms of an FRP established by the LPSC effective February 12, 2010. The 2010 FRP allows Cleco Power the opportunity to earn a target return on equity of 10.7%, including returning to retail customers 60.0% of retail earnings between 11.3% and 12.3% and all retail earnings over 12.3%. The amount of credits due customers, if any, is determined by Cleco Power and the LPSC annually. Cleco Power must file annual monitoring reports no later than October 31 for the 12-month period ending June 30. Cleco Power anticipates requesting an extension of its current FRP in a second quarter 2013 filing with the LPSC.
On October 31, 2011, Cleco Power filed its report for the 12 months ended June 30, 2011, which indicated that $5.1 million was due to be returned to customers. On July 18, 2012, the LPSC approved the monitoring report for the 12 months ended June 30, 2011. Cleco Power issued refunds for this filing on customers’ bills during the third quarter of 2012. On October 31, 2012, Cleco Power filed its report for the 12 months ended June 30, 2012. As of December 31, 2012, Cleco Power had accrued $1.7 million to be returned to customers based on the results for the 12-month period ended June 30, 2012. The ultimate amount of any customer refund is subject to LPSC approval. The accrual for estimated electric customer credits reflected on Cleco Corporation and Cleco Power’s Consolidated Balance Sheets at December 31, 2012 and 2011, was $4.2 million and $7.3 million, respectively.