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Fair Value Accounting (Tables)

12 Months Ended

Dec. 31, 2012



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

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.



	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

⁽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:



			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	$	—	$	—

Available-for-sale Securities

At December 31, 2012, the fair value of Cleco Power’s available-for-sale debt securities by contractual maturity was:



(THOUSANDS)	AT DEC. 31, 2012
One year or less	$	6,204
Over one year through five years	4,648
Total fair value	$	10,852

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

The following tables disclose for Cleco and Cleco Power the fair value of financial assets and liabilities measured or disclosed on a recurring basis and within the scope of the authoritative guidance for fair value measurements and disclosures.



Cleco
	CLECO CONSOLIDATED FAIR VALUE MEASUREMENTS AT REPORTING DATE USING:
(THOUSANDS)	AT 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	$	—

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:



	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	)

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.



					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	)

⁽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:



												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	)*

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

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

Cleco Power [Member]

Fair Value [Line Items]

Fair Value By Balance Sheet Grouping



Cleco Power
					AT 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

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



Cleco Power
	CLECO POWER FAIR VALUE MEASUREMENTS AT REPORTING DATE USING:
(THOUSANDS)	AT 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	$	—

- Definition

Tabular disclosure of available-for-sale securities which includes, but is not limited to, changes in the cost basis and fair value, fair value and gross unrealized gain (loss), fair values by type of security, contractual maturity and classification, amortized cost basis, contracts to acquire securities to be accounted for as available-for-sale, debt maturities, transfers to trading, change in net unrealized holding gain (loss) net of tax, continuous unrealized loss position fair value, aggregate losses qualitative disclosures, other than temporary impairment (OTTI) losses or other disclosures related to available for sale securities.

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- Definition

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

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+ Details

- Definition

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

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- Definition

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

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