Affiliate Transactions

12 Months Ended

Dec. 31, 2012

Related Party Transactions [Abstract]

Affiliate Transactions

Cleco

Cleco has entered into service agreements with affiliates to receive and to provide goods and professional services. Goods and services received by Cleco primarily involve services provided by Support Group. Support Group provides joint and common administrative support services in the areas of information technology; finance, cash management, accounting and auditing; human resources; investor relations; project consulting; risk management; strategic and corporate development; legal, ethics and regulatory compliance; facilities management; supply chain and inventory management and other administrative services. Midstream provides electric power plant operations and maintenance expertise. Prior to December 24, 2011, electric power plant operations and maintenance expertise services were provided by Generation Services.

Cleco is charged the higher of management’s estimated fair market value or fully loaded costs for goods and services provided by Cleco Power. Cleco, with the exception of Support Group, charges Cleco Power the lower of management’s estimated fair market value or fully loaded costs for goods and services provided in accordance with service agreements. Support Group charges only fully loaded costs.

In accordance with authoritative guidance, all charges from affiliates were eliminated in Cleco’s Consolidated Statements of Income for the years ending December 31, 2012, 2011, and 2010. Also, all affiliate revenue was eliminated in Cleco’s Consolidated Statement of Income for the year ended December 31, 2012.

The following table is a summary of affiliate revenue included in Cleco’s Consolidated Statements of Income.

	FOR THE YEAR ENDED DEC. 31,
(THOUSANDS)	2012		2011		2010
Acadia	$	—	$	202	$	1,564
Total	$	—	$	202	$	1,564

At December 31, 2012 and 2011, Cleco had no affiliate balances that were payable to or receivable from its non-consolidated affiliates.

Cleco Power

Cleco Power has entered into service agreements with affiliates to receive and to provide goods and professional services. Charges from affiliates included in Cleco Power’s Consolidated Statements of Income primarily involve services provided by Support Group in accordance with service agreements and power purchased from Evangeline. Support Group provides joint and common administrative support services in the areas of information technology; finance, cash management, accounting and auditing; human resources; corporate communications; project consulting; risk management; strategic and corporate development; legal, ethics and regulatory compliance; facilities management; supply chain and inventory management and other administrative services. For information on the power purchased from Evangeline, see Note 17 — “Evangeline Transactions.”

Affiliates, with the exception of Support Group, charge Cleco Power the lower of management’s estimated fair market value or fully loaded costs for goods and services provided in accordance with service agreements. Support Group charges only fully loaded costs. The following table is a summary of charges from each affiliate included in Cleco Power’s Consolidated Statements of Income.

	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

The majority of the services provided by Cleco Power relates to the lease of office space to Support Group. Cleco Power charges affiliates the higher of management’s estimated fair market value or fully loaded costs for goods and services provided in accordance with service agreements.

The following table is a summary of revenue received from affiliates included in Cleco Power’s Consolidated Statements of Income.

	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 Power had the following affiliate receivable and payable balances associated with the service agreements.

					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

During 2012, 2011, and 2010, Cleco Power made $58.0 million, $130.0 million, and $150.0 million of distribution payments to Cleco Corporation, respectively.

During 2010, Cleco Power received $225.7 million in non-cash equity contributions from Cleco Corporation relating to Acadia Unit 1. Cleco Power received no equity contributions from Cleco Corporation in 2012 or 2011. 

Affiliates that participate in the defined benefit pension plan sponsored by Cleco Power transfer their liability and an equal amount of cash on a periodic basis to Cleco Power. The following table shows the amounts transferred by affiliates during 2012 and 2011.

	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