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 o | ||
Indicate by check mark if Cleco Power LLC is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes o 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 o 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 o | ||
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 o | ||
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. x | ||
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 o Non-accelerated filer o (Do not check if a smaller reporting company) Smaller reporting company o | ||
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 o Accelerated filer o Non-accelerated filer x (Do not check if a smaller reporting company) Smaller reporting company o | ||
Indicate by check mark whether the Registrants are shell companies (as defined in Rule 12b-2 of the Exchange Act) Yes o No x |
CLECO CORPORATION | ||
CLECO POWER | 2013 FORM 10-K |
PAGE | ||
ITEM 4. | Mine Safety Disclosures | |
CLECO CORPORATION | ||
CLECO POWER | 2013 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 Acadia Power Holdings LLC, a wholly owned subsidiary of Midstream |
Acadia Unit 1 | Cleco Power’s 580-MW, combined cycle, natural gas-fired power plant located at the Acadia Power Station in Eunice, Louisiana |
Acadia Unit 2 | Entergy Louisiana’s 580-MW, combined cycle, natural gas-fired power plant located at the Acadia Power Station in Eunice, Louisiana |
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 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 |
ARRA | American Recovery and Reinvestment Act of 2009, an economic stimulus package passed by Congress in February 2009 |
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 |
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 |
CLE Intrastate | CLE Intrastate Pipeline Company LLC, a wholly owned subsidiary of Evangeline |
Cleco Innovations LLC | Previously a wholly owned subsidiary of Cleco Corporation. Dissolved effective June 24, 2013. |
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 775-MW combined-cycle, natural gas-fired power plant located in St. Landry, 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 Corporation |
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 |
Dolet Hills | A 650-MW lignite/natural gas generating unit at Cleco Power’s plant site in Mansfield, Louisiana. Cleco Power has a 50% ownership interest in the capacity of Dolet Hills. |
EAC | Environmental Adjustment Clause |
Entergy | Entergy Corporation |
Entergy Arkansas | Entergy Arkansas, Inc. |
Entergy Gulf States | Entergy Gulf States Louisiana, L.L.C. |
Entergy Louisiana | Entergy Louisiana, LLC |
Entergy Mississippi | Entergy Mississippi, Inc. |
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 |
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 |
CLECO CORPORATION | ||
CLECO POWER | 2013 FORM 10-K |
ABBREVIATION OR ACRONYM | DEFINITION |
FTRs | Financial transmission rights are used to provide a financial hedge to manage the risk of congestion cost in the Day-Ahead Energy and Operating Reserve Market. |
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 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 |
LMP | Locational Marginal Price |
LPSC | Louisiana Public Service Commission |
LTICP | Cleco Corporation Long-Term Incentive Compensation Plan |
Madison Unit 3 | A 600-MW solid-fuel generating unit at Cleco Power’s plant site in Boyce, Louisiana |
MATS | Mercury and Air Toxics Standards |
Midstream | Cleco Midstream Resources LLC, a wholly owned subsidiary of Cleco Corporation |
MISO | Midcontinent Independent System Operator, Inc. |
MMBtu | Million British thermal units |
Moody’s | Moody’s Investors Service, a credit rating agency |
MSCI EAFE Index | Morgan Stanley Capital International Europe, Australia, Far East Index |
MW | Megawatt(s) as applicable |
MWh | Megawatt-hour(s) as applicable |
NAC | North American Coal Corporation |
NERC | North American Electric Reliability Corporation |
NMTC | New Markets Tax Credit |
NMTC Fund | USB NMTC Fund 2008-1 LLC was formed to invest in projects qualifying for New Markets Tax Credits and Solar Projects |
NOAA | National Oceanic and Atmospheric Administration |
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 |
O&M | Operations and Maintenance |
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, previously a wholly owned subsidiary of Midstream. Dissolved effective December 9, 2010. |
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, Inc., as agent for Entergy Louisiana and Entergy Gulf States |
PPACA | Patient Protection and Affordable Care Act (HR 3590) |
PRP | Potentially responsible party |
Registrant(s) | Cleco Corporation and Cleco Power |
RFP | Request for Proposal |
Rodemacher Unit 2 | A 523-MW coal/natural gas generating unit at Cleco Power’s plant site in Boyce, Louisiana. Cleco Power has a 30% ownership interest in the capacity of Rodemacher Unit 2. |
RTO | Regional Transmission Organization |
Sale Agreement | Purchase and Sale Agreement, dated as of January 28, 2004, between Perryville and Entergy Louisiana |
S&P | Standard & Poor’s Ratings Services, a credit rating agency |
SEC | Securities and Exchange Commission |
SERP | Cleco Corporation Supplemental Executive Retirement Plan |
CLECO CORPORATION | ||
CLECO POWER | 2013 FORM 10-K |
ABBREVIATION OR ACRONYM | DEFINITION |
SO2 | Sulfur dioxide |
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 | 2013 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 and 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, |
• | Cleco Power’s dependence on 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, including the potential impact from the automatic reductions in U.S. federal government spending that went into effect in the first quarter of 2013, known as sequestration, the partial U.S. federal government shutdown in October 2013, and the ongoing debates related to the U.S. federal government budget and debt ceiling, |
• | 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, such as wind, solar, and distributed generation; |
• | 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, |
CLECO CORPORATION | ||
CLECO POWER | 2013 FORM 10-K |
• | legal, environmental, and regulatory delays and other obstacles associated with mergers, acquisitions, reorganizations, investments in joint ventures, or other capital projects, including the MATS project, and the transfer of Coughlin to Cleco Power, |
• | costs and other effects of legal and administrative proceedings, settlements, investigations, claims and other matters, |
• | 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, |
• | the ability of Cleco Power to recover from its customers the costs of compliance with environmental laws and regulations, including capital expenditures associated with MATS, and |
• | the ability of the Dolet Hills lignite reserve to provide sufficient fuel to the Dolet Hills Power Station until at least 2036. |
CLECO CORPORATION | ||
CLECO POWER | 2013 FORM 10-K |
PART I |
ITEM 1. BUSINESS |
GENERAL |
OPERATIONS |
(THOUSANDS) | 2013 | 2012 | 2011 | ||||||||
Revenue | |||||||||||
Electric operations | $ | 1,047,548 | $ | 944,169 | $ | 1,051,956 | |||||
Other operations | 48,909 | 48,156 | 50,948 | ||||||||
Electric customer credits | (1,836 | ) | (630 | ) | (6,811 | ) | |||||
Affiliate revenue | 1,338 | 1,372 | 1,389 | ||||||||
Operating revenue, net | $ | 1,095,959 | $ | 993,067 | $ | 1,097,482 | |||||
Depreciation expense | $ | 135,717 | $ | 125,486 | $ | 115,634 | |||||
Interest charges | $ | 82,677 | $ | 80,502 | $ | 97,090 | |||||
Interest income | $ | 1,100 | $ | 333 | $ | 630 | |||||
Federal and state income taxes | $ | 79,381 | $ | 68,133 | $ | 69,409 | |||||
Net income | $ | 150,410 | $ | 146,848 | $ | 142,835 | |||||
Additions to long-lived assets | $ | 184,684 | $ | 222,104 | $ | 201,980 | |||||
Equity investment in investee | $ | 14,532 | $ | 14,532 | $ | 14,532 | |||||
Segment assets | $ | 3,943,712 | $ | 3,871,729 | $ | 3,726,471 |
CLECO CORPORATION | ||
CLECO POWER | 2013 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 | 421 | natural gas | steam | |||
Rodemacher Unit 2 | 1982 | 157 | (3) | 147 | coal/natural gas | steam | ||
Madison Unit 3 | 2010 | 641 | 626 | petroleum coke/coal/natural gas/biomass capable | steam | |||
Acadia Unit 1 | 2002 | 580 | 568 | natural gas | combined cycle | |||
Teche Unit 1 | 1953 | 23 | 17 | natural gas | steam | |||
Teche Unit 3 | 1971 | 359 | 335 | natural gas | steam | |||
Teche Unit 4 | 2011 | 33 | 34 | natural gas | combustion | |||
Dolet Hills Power Station | 1986 | 325 | (4) | 321 | lignite/natural gas | steam | ||
Franklin Gas Turbine | 1973 | 7 | 8 | natural gas | combustion | |||
Total generating capability | 2,565 | 2,477 |
PERIOD | THOUSAND MWh | PERCENT OF TOTAL ENERGY REQUIREMENTS | ||
2013 | 9,736 | 83.8 | ||
2012 | 9,143 | 81.3 | ||
2011 | 10,025 | 86.5 | ||
2010 | 8,753 | 74.7 | ||
2009 | 4,943 | 46.4 |
CLECO CORPORATION | ||
CLECO POWER | 2013 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 | ||||||||||||||||||||||
2013 | $ | 42.44 | 15.6 | $ | 29.42 | 18.2 | $ | 34.60 | 34.4 | $ | — | — | $ | 21.54 | 31.8 | $ | 30.72 | ||||||||||||||||
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 | ||||||||||||||||
* Not meaningful |
PERIOD | COST PER MWh | THOUSAND MWh | PERCENT OF TOTAL ENERGY REQUIREMENTS | |||||
2013 | $ | 35.10 | 1,886 | 16.2 | ||||
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 |
CLECO CORPORATION | ||
CLECO POWER | 2013 FORM 10-K |
NATURAL GAS SUPPLIER | 2013 PURCHASES (MMBtu) | AVERAGE AMOUNT PURCHASED PER DAY (MMBtu) | PERCENT OF TOTAL NATURAL GAS USED | |||||
Gavilon, LLC | 7,156,546 | 19,607 | 24.0 | % | ||||
Chevron Natural Gas | 2,661,935 | 7,293 | 8.9 | % | ||||
Crosstex Gulf Coast Marketing | 2,010,215 | 5,507 | 6.7 | % | ||||
Southwestern Energy Services | 1,749,400 | 4,793 | 5.9 | % | ||||
Shell Energy North America | 1,679,821 | 4,602 | 5.6 | % | ||||
ConocoPhillips Company | 948,245 | 2,598 | 3.2 | % | ||||
Others | 13,652,839 | 37,404 | 45.7 | % | ||||
Total | 29,859,001 | 81,804 | 100.0 | % |
CLECO CORPORATION | ||
CLECO POWER | 2013 FORM 10-K |
(THOUSANDS) | 2013 | 2012 | 2011 | ||||||||
Revenue | |||||||||||
Tolling operations | $ | 31,670 | $ | 25,559 | $ | 19,004 | |||||
Other operations | 2 | 3 | 9 | ||||||||
Affiliate revenue | — | — | 45 | ||||||||
Operating revenue, net | $ | 31,672 | $ | 25,562 | $ | 19,058 | |||||
Depreciation expense | $ | 6,043 | $ | 6,006 | $ | 5,872 | |||||
Interest charges | $ | (331 | ) | $ | 770 | $ | (28,996 | ) | |||
Equity income from investees, before tax | $ | — | $ | — | $ | 62,053 | |||||
Federal and state income tax expense | $ | 7,110 | $ | 6,404 | $ | 44,637 | |||||
Net income | $ | 4,372 | $ | 9,155 | $ | 42,792 | |||||
Additions to long-lived assets | $ | 4,106 | $ | 8,759 | $ | 8,437 | |||||
Total segment assets | $ | 225,832 | $ | 215,342 | $ | 233,891 |
• | 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 | 255 | (1) | natural gas | ||||
Coughlin Unit 7 | 2000 | 511 | 488 | (1) | natural gas | ||||
Total capacity | 775 | 743 | |||||||
(1)Based on capacity testing of generating units performed in December 2012. These test results were corrected to the appropriate conditions. These amounts do not represent generating unit capacity for MISO planning reserve margins. |
CLECO CORPORATION | ||
CLECO POWER | 2013 FORM 10-K |
REGULATORY MATTERS, INDUSTRY DEVELOPMENTS, AND FRANCHISES |
CLECO CORPORATION | ||
CLECO POWER | 2013 FORM 10-K |
DATE | CITY/TOWN | TERM | NUMBER OF CUSTOMERS | |||
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 | |||
January 2013 | Many | 30 years | 1,659 | |||
March 2013 | Pine Prairie | 40 years | 429 | |||
April 2013 | Hessmer | 30 years | 453 | |||
May 2013 | Turkey Creek | 40 years | 185 | |||
June 2013 | Forest Hill | 30 years | 391 | |||
July 2013 | Cottonport | 30 years | 1,085 | |||
July 2013 | Moreauville | 30 years | 573 | |||
August 2013 | Mandeville | 30 years | 7,001 | |||
August 2013 | Oberlin | 30 years | 693 | |||
December 2013 | Leesville | 30 years | 3,694 |
• | 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, |
• | NERC’s imposition of additional reliability and cybersecurity standards, |
• | 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 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 | 2013 FORM 10-K |
SUBSIDIARY (THOUSANDS) | ENVIRONMENTAL CAPITAL EXPENDITURES FOR 2013 | PROJECTED ENVIRONMENTAL CAPITAL EXPENDITURES FOR 2014 | |||||
Cleco Power | $ | 56,855 | $ | 56,402 | * | ||
Evangeline | 31 | — | |||||
Total | $ | 56,886 | $ | 56,402 | |||
* Includes capital expenditures projected for Coughlin after March 2014. |
CLECO CORPORATION | ||
CLECO POWER | 2013 FORM 10-K |
CLECO CORPORATION | ||
CLECO POWER | 2013 FORM 10-K |
CLECO CORPORATION | ||
CLECO POWER | 2013 FORM 10-K |
ITEM 1A. RISK FACTORS |
CLECO CORPORATION | ||
CLECO POWER | 2013 FORM 10-K |
CLECO CORPORATION | ||
CLECO POWER | 2013 FORM 10-K |
CLECO CORPORATION | ||
CLECO POWER | 2013 FORM 10-K |
CLECO CORPORATION | ||
CLECO POWER | 2013 FORM 10-K |
CLECO CORPORATION | ||
CLECO POWER | 2013 FORM 10-K |
CLECO CORPORATION | ||
CLECO POWER | 2013 FORM 10-K |
CLECO CORPORATION | ||
CLECO POWER | 2013 FORM 10-K |
CLECO CORPORATION | ||
CLECO POWER | 2013 FORM 10-K |
ITEM 1B. UNRESOLVED STAFF COMMENTS |
ITEM 2. PROPERTIES |
CLECO CORPORATION |
CLECO POWER |
MIDSTREAM |
CLECO CORPORATION | ||
CLECO POWER | 2013 FORM 10-K |
ITEM 3. LEGAL PROCEEDINGS |
CLECO |
CLECO POWER |
ITEM 4. MINE SAFETY DISCLOSURES |
CLECO CORPORATION | ||
CLECO POWER | 2013 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 54; two years of service) |
Darren J. Olagues Cleco Power Cleco Corporation Cleco Power Midstream | President since August 2013. Senior Vice President, Chief Financial Officer from July 2012 to August 2013; 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 43; 6 years of service) |
Thomas R. Miller Cleco Corporation Cleco Power | Senior Vice President - Chief Financial Officer since August 2013; Vice President - Treasurer from July 2012 to August 2013; 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 53; one year of service) |
Wade A. Hoefling Cleco Corporation Cleco Power | Senior Vice President, General Counsel & Director - Regulatory Compliance since April 2008. (Age 58; 7 years of service) |
Judy P. Miller Cleco Corporation Cleco Power | Senior Vice President - Corporate Services and Information Technology since August 2013; Senior Vice President - Corporate Services and Internal Audit from November 2011 to August 2013; Corporate Secretary from January 2004 to November 2011. (Age 56; 29 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 52; 24 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 51; 27 years of service) |
Charles A. Mannix Cleco Corporation Cleco Power | Vice President - Tax & Treasurer since August 2013; General Manager of Tax and Strategic Planning from November 2011 to August 2013; Vice President - Tax & Treasurer from March 2008 to November 2011. (Age 55; 6 years 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 54; 22 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 46; 22 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 59; 13 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 45; 6 years of service) |
CLECO CORPORATION | ||
CLECO POWER | 2013 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 | 2013 FORM 10-K |
(THOUSANDS, EXCEPT PER SHARE AND PERCENTAGES) | 2013 | 2012 | 2011 | 2010 | 2009 | ||||||||||||||
Operating revenue (loss), net (excluding intercompany revenue) | |||||||||||||||||||
Cleco Power | $ | 1,094,621 | $ | 991,695 | $ | 1,096,093 | $ | 1,119,084 | $ | 842,227 | |||||||||
Midstream | 31,672 | 25,562 | 19,013 | 27,030 | 8,749 | ||||||||||||||
Other | (29,579 | ) | (23,560 | ) | 2,207 | 2,552 | 2,782 | ||||||||||||
Total | $ | 1,096,714 | $ | 993,697 | $ | 1,117,313 | $ | 1,148,666 | $ | 853,758 | |||||||||
Income before income taxes | $ | 240,260 | $ | 228,975 | $ | 298,745 | $ | 397,889 | $ | 115,886 | |||||||||
Net income applicable to common stock | $ | 160,685 | $ | 163,648 | $ | 195,710 | $ | 255,345 | $ | 106,261 | |||||||||
Basic earnings per share applicable to common stock | $ | 2.66 | $ | 2.71 | $ | 3.24 | $ | 4.23 | $ | 1.77 | |||||||||
Diluted earnings per share applicable to common stock | $ | 2.65 | $ | 2.70 | $ | 3.22 | $ | 4.20 | $ | 1.76 | |||||||||
Capitalization | |||||||||||||||||||
Common shareholders’ equity | 54.66 | % | 54.39 | % | 51.50 | % | 48.46 | % | 45.77 | % | |||||||||
Preferred stock | — | — | — | 0.04 | % | 0.04 | % | ||||||||||||
Long-term debt | 45.34 | % | 45.61 | % | 48.50 | % | 51.50 | % | 54.19 | % | |||||||||
Common shareholders’ equity | $ | 1,586,197 | $ | 1,499,213 | $ | 1,419,857 | $ | 1,317,178 | $ | 1,115,043 | |||||||||
Preferred stock | $ | — | $ | — | $ | — | $ | 1,029 | $ | 1,029 | |||||||||
Long-term debt, net | $ | 1,315,500 | $ | 1,257,258 | $ | 1,337,056 | $ | 1,399,709 | $ | 1,320,299 | |||||||||
Total assets | $ | 4,215,262 | $ | 4,147,349 | $ | 4,050,202 | $ | 4,161,430 | $ | 3,696,479 | |||||||||
Cash dividends declared per common share | $ | 1.425 | $ | 1.30 | $ | 1.1225 | $ | 0.975 | $ | 0.90 |
CLECO POWER |
ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
OVERVIEW |
• | Cleco Power, a regulated electric utility company, which owns nine generating units with a total nameplate capacity of 2,565 MW and serves approximately 284,000 customers in Louisiana through its retail business and supplies wholesale power in Louisiana and Mississippi, and |
• | Midstream, a wholesale energy business, owns Evangeline (which owns and operates Coughlin). Evangeline owns two generating units with a total nameplate capacity of 775 MW. During 2013, FERC and LPSC approval was granted to transfer Coughlin to Cleco Power. The transaction is expected to occur in March 2014. For additional information, see “— Financial Condition — Regulatory and Other Matters — Generation RFP — 2012 Long-Term RFP for Capacity and Energy Resources.” |
CLECO CORPORATION | ||
CLECO POWER | 2013 FORM 10-K |
RESULTS OF OPERATIONS |
CLECO CORPORATION | ||
CLECO POWER | 2013 FORM 10-K |
Cleco Consolidated Results of Operations — Year ended December 31, 2013, Compared to Year ended December 31, 2012 | ||||||||||||||
FOR THE YEAR ENDED DEC. 31, | ||||||||||||||
FAVORABLE/(UNFAVORABLE) | ||||||||||||||
(THOUSANDS) | 2013 | 2012 | VARIANCE | CHANGE | ||||||||||
Operating revenue, net | $ | 1,096,714 | $ | 993,697 | $ | 103,017 | 10.4 | % | ||||||
Operating expenses | 788,382 | 712,046 | (76,336 | ) | (10.7 | )% | ||||||||
Operating income | $ | 308,332 | $ | 281,651 | $ | 26,681 | 9.5 | % | ||||||
Allowance for other funds used during construction | $ | 4,081 | $ | 6,711 | $ | (2,630 | ) | (39.2 | )% | |||||
Other income | $ | 13,857 | $ | 29,117 | $ | (15,260 | ) | (52.4 | )% | |||||
Other expense | $ | (2,861 | ) | $ | (4,694 | ) | $ | 1,833 | 39.0 | % | ||||
Federal and state income taxes | $ | 79,575 | $ | 65,327 | $ | (14,248 | ) | (21.8 | )% | |||||
Net income applicable to common stock | $ | 160,685 | $ | 163,648 | $ | (2,963 | ) | (1.8 | )% |
CLECO CORPORATION | ||
CLECO POWER | 2013 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 and the addition of new generation capacity, |
• | transmission congestion costs, |
• | 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, |
• | changes in the credit markets and global economy, and |
• | integration of operations with MISO. |
CLECO CORPORATION | ||
CLECO POWER | 2013 FORM 10-K |
Cleco Power’s Results of Operations — Year ended December 31, 2013, Compared to Year ended December 31, 2012 | |||||||||||||||
FOR THE YEAR ENDED DEC. 31, | |||||||||||||||
FAVORABLE/(UNFAVORABLE) | |||||||||||||||
(THOUSANDS) | 2013 | 2012 | VARIANCE | CHANGE | |||||||||||
Operating revenue | |||||||||||||||
Base | $ | 654,015 | $ | 606,577 | $ | 47,438 | 7.8 | % | |||||||
Fuel cost recovery | 393,533 | 337,592 | 55,941 | 16.6 | % | ||||||||||
Electric customer credits | (1,836 | ) | (630 | ) | (1,206 | ) | (191.4 | )% | |||||||
Other operations | 48,909 | 48,156 | 753 | 1.6 | % | ||||||||||
Affiliate revenue | 1,338 | 1,372 | (34 | ) | (2.5 | )% | |||||||||
Operating revenue, net | $ | 1,095,959 | $ | 993,067 | $ | 102,892 | 10.4 | % | |||||||
Operating expenses | |||||||||||||||
Recoverable fuel used for electric generation | $ | 326,089 | $ | 277,605 | $ | (48,484 | ) | (17.5 | )% | ||||||
Recoverable power purchased for utility customers | 67,445 | 59,989 | (7,456 | ) | (12.4 | )% | |||||||||
FAC non-recoverable fuel and power purchased | 13,302 | 21,338 | 8,036 | 37.7 | % | ||||||||||
Other operations | 114,884 | 115,072 | 188 | 0.2 | % | ||||||||||
Maintenance | 85,638 | 72,386 | (13,252 | ) | (18.3 | )% | |||||||||
Depreciation | 135,717 | 125,486 | (10,231 | ) | (8.2 | )% | |||||||||
Taxes other than income taxes | 46,203 | 33,999 | (12,204 | ) | (35.9 | )% | |||||||||
Gain on sale of assets | — | (2 | ) | (2 | ) | (100.0 | )% | ||||||||
Total operating expenses | $ | 789,278 | $ | 705,873 | $ | (83,405 | ) | (11.8 | )% | ||||||
Operating income | $ | 306,681 | $ | 287,194 | $ | 19,487 | 6.8 | % | |||||||
Allowance for other funds used during construction | $ | 4,081 | $ | 6,711 | $ | (2,630 | ) | (39.2 | )% | ||||||
Other income | $ | 4,883 | $ | 5,847 | $ | (964 | ) | (16.5 | )% | ||||||
Interest charges | $ | 82,677 | $ | 80,502 | $ | (2,175 | ) | (2.7 | )% | ||||||
Federal and state income taxes | $ | 79,381 | $ | 68,133 | $ | (11,248 | ) | (16.5 | )% | ||||||
Net income | $ | 150,410 | $ | 146,848 | $ | 3,562 | 2.4 | % |
• | higher base revenue, |
• | lower FAC non-recoverable fuel and power purchased, and |
• | higher other operations revenue. |
• | higher maintenance expenses, |
• | higher taxes other than income taxes, |
• | higher income taxes, |
• | higher depreciation expense, |
• | lower allowance for other funds used during construction, |
• | higher interest charges, |
• | higher electric customer credits, and |
• | lower other income. |
FOR THE YEAR ENDED DEC. 31, | ||||||||
FAVORABLE/ | ||||||||
(MILLION kWh) | 2013 | 2012 | (UNFAVORABLE) | |||||
Electric sales | ||||||||
Residential | 3,714 | 3,624 | 2.5 | % | ||||
Commercial | 2,672 | 2,655 | 0.6 | % | ||||
Industrial | 2,322 | 2,311 | 0.5 | % | ||||
Other retail | 134 | 133 | 0.8 | % | ||||
Total retail | 8,842 | 8,723 | 1.4 | % | ||||
Sales for resale | 2,057 | 1,934 | 6.4 | % | ||||
Unbilled | 61 | (43 | ) | 241.9 | % | |||
Total retail and wholesale customer sales | 10,960 | 10,614 | 3.3 | % |
FOR THE YEAR ENDED DEC. 31, | ||||||||||
FAVORABLE/ | ||||||||||
(THOUSANDS) | 2013 | 2012 | (UNFAVORABLE) | |||||||
Electric sales | ||||||||||
Residential | $ | 297,158 | $ | 281,378 | 5.6 | % | ||||
Commercial | 189,807 | 181,093 | 4.8 | % | ||||||
Industrial | 91,093 | 85,675 | 6.3 | % | ||||||
Other retail | 10,590 | 9,908 | 6.9 | % | ||||||
Surcharge | 14,978 | 9,133 | 64.0 | % | ||||||
Other | (4,694 | ) | (6,252 | ) | 24.9 | % | ||||
Total retail | $ | 598,932 | $ | 560,935 | 6.8 | % | ||||
Sales for resale | 51,922 | 47,767 | 8.7 | % | ||||||
Unbilled | 3,161 | (2,125 | ) | 248.8 | % | |||||
Total retail and wholesale customer sales | $ | 654,015 | $ | 606,577 | 7.8 | % |
FOR THE YEAR ENDED DEC. 31, | ||||||||||||||
2013 CHANGE | ||||||||||||||
2013 | 2012 | NORMAL | PRIOR YEAR | NORMAL | ||||||||||
Cooling degree-days | 2,954 | 3,189 | 2,780 | (7.4 | )% | 6.3 | % | |||||||
Heating degree-days | 1,559 | 1,018 | 1,554 | 53.1 | % | 0.3 | % |
CLECO CORPORATION | ||
CLECO POWER | 2013 FORM 10-K |
CLECO CORPORATION | ||
CLECO POWER | 2013 FORM 10-K |
Midstream’s Results of Operations — Year ended December 31, 2013, Compared to Year ended December 31, 2012 | ||||||||||||||
FOR THE YEAR ENDED DEC. 31, | ||||||||||||||
FAVORABLE/(UNFAVORABLE) | ||||||||||||||
(THOUSANDS) | 2013 | 2012 | VARIANCE | CHANGE | ||||||||||
Operating revenue | ||||||||||||||
Tolling operations | $ | 31,670 | $ | 25,559 | $ | 6,111 | 23.9 | % | ||||||
Other operations | 2 | 3 | (1 | ) | (33.3 | )% | ||||||||
Total operating revenue | $ | 31,672 | $ | 25,562 | $ | 6,110 | 23.9 | % | ||||||
Operating expenses | ||||||||||||||
Fuel used for electric generation | $ | — | $ | 304 | $ | 304 | 100.0 | % | ||||||
Power purchased for utility customers | — | 9 | 9 | 100.0 | % | |||||||||
Other operations | 7,327 | 7,786 | 459 | 5.9 | % | |||||||||
Maintenance | 11,133 | 13,693 | 2,560 | 18.7 | % | |||||||||
Depreciation | 6,043 | 6,006 | (37 | ) | (0.6 | )% | ||||||||
Taxes other than income taxes | 2,406 | 2,559 | 153 | 6.0 | % | |||||||||
Loss on sale of assets | 847 | 64 | (783 | ) | * | |||||||||
Total operating expenses | $ | 27,756 | $ | 30,421 | $ | 2,665 | 8.8 | % | ||||||
Operating income (loss) | $ | 3,916 | $ | (4,859 | ) | $ | 8,775 | 180.6 | % | |||||
Other income | $ | 7,250 | $ | 21,216 | $ | (13,966 | ) | (65.8 | )% | |||||
Interest (income) charges | $ | (331 | ) | $ | 770 | $ | 1,101 | 143.0 | % | |||||
Federal and state income tax expense | $ | 7,110 | $ | 6,404 | $ | (706 | ) | (11.0 | )% | |||||
Net income | $ | 4,372 | $ | 9,155 | $ | (4,783 | ) | (52.2 | )% | |||||
* Not meaningful |
CLECO CORPORATION | ||
CLECO POWER | 2013 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 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 | ||||||||||||||
Recoverable fuel used for electric generation | $ | 277,605 | $ | 379,771 | $ | 102,166 | 26.9 | % | ||||||
Recoverable power purchased for utility customers | 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 | 2013 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 | % | ||||||
Storm 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 | 2013 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 | 2013 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 2013 return on plan assets was 5.7% compared to an expected long-term return of 6.78%. For 2012, the return on plan assets was 15.2% compared to an expected long-term return of 6.6%. For the calculation of the 2014 periodic expense, Cleco is decreasing the expected long-term return on plan assets to 6.76%. |
CLECO CORPORATION | ||
CLECO POWER | 2013 FORM 10-K |
ACTUARIAL ASSUMPTION (THOUSANDS) | CHANGE IN ASSUMPTION | CHANGE IN PROJECTED BENEFIT OBLIGATION | CHANGE IN ESTIMATED BENEFIT COST | ||||||
Discount rate | 0.5% increase | $ | (25,303 | ) | $ | (2,355 | ) | ||
0.5% decrease | 28,192 | 2,577 | |||||||
Salary scale | 0.5% increase | $ | 6,942 | $ | 1,335 | ||||
0.5% decrease | (6,272 | ) | (1,203 | ) | |||||
Expected return on assets | 0.5% increase | $ | — | $ | (1,813 | ) | |||
0.5% decrease | — | 1,813 |
• | 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 |
• | Cleco is currently involved in certain legal proceedings and management has estimated the probable costs for the resolution of these claims. These estimates are based on an analysis of potential results, assuming a combination of litigation and settlement assumptions. For more information on legal proceedings affecting Cleco, see Item 8, “Financial Statements and Supplemental Data — Notes to the Financial Statements — Note 14 — Litigation, Other Commitments and Contingencies, and Disclosures about Guarantees.” |
• | 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, 2013, the carrying value of Cleco Power’s long-lived assets was $2.79 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, 2013, Cleco Power had $481.0 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.” |
CLECO CORPORATION | ||
CLECO POWER | 2013 FORM 10-K |
• | 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, 2013, 2012, and 2011, Cleco Power reported fuel revenue of $393.5 million, $337.6 million, and $446.9 million, respectively. |
FINANCIAL CONDITION |
SENIOR UNSECURED DEBT | CORPORATE CREDIT | ||||
MOODY’S | S&P | S&P | |||
Cleco Corporation | *Baa3 | N/A | BBB+ | ||
Cleco Power | *Baa2 | BBB+ | N/A |
CLECO CORPORATION | ||
CLECO POWER | 2013 FORM 10-K |
AT DEC. 31, | |||||||
(THOUSANDS) | 2013 | 2012 | |||||
Diversified Lands’ mitigation escrow | $ | 21 | $ | 97 | |||
Cleco Katrina/Rita’s storm recovery bonds | 8,986 | 8,781 | |||||
Cleco Power’s future storm restoration costs | 4,726 | 5,343 | |||||
Cleco Power’s building renovation escrow | 286 | — | |||||
Total restricted cash and cash equivalents | $ | 14,019 | $ | 14,221 |
• | $74.0 million decrease in long-term debt due within one year, as discussed above, |
• | $14.0 million increase in fuel inventories primarily due to the timing of solid fuel delivery relative to solid fuel consumption which is driven by outage work and economic dispatch, |
• | $18.0 million increase in customer accounts receivable as a result of higher sales in December 2013 as compared to the same period in 2012, |
• | $8.6 million increase in energy risk management assets due to FTRs relating to Cleco Power’s integration into MISO, and |
CLECO CORPORATION | ||
CLECO POWER | 2013 FORM 10-K |
• | $7.4 million increase in cash surrender value of company and trust-owned life insurance policies. |
• | $42.1 million net decrease in current tax assets and uncertain tax positions and related interest charges expected to be settled in the next 12 months and |
• | $7.8 million increase in accounts payable primarily due to higher vendor balances for gas and power purchases. |
• | $74.0 million decrease in long-term debt due within one year, as discussed above, |
• | $14.0 million increase in fuel inventories primarily due to the timing of solid fuel delivery relative to solid fuel consumption which is driven by outage work and economic dispatch, |
• | $18.0 million increase in customer accounts receivable as a result of higher sales in December 2013 as compared to the same period in 2012, and |
• | $8.6 million increase in energy risk management assets due to FTRs relating to Cleco Power’s integration into MISO. |
• | $11.9 million net decrease in current tax assets and uncertain tax positions and related interest charges expected to be settled in the next 12 months and |
• | $9.0 million increase in accounts payable primarily due to higher vendor balances for gas and power purchases. |
CLECO CORPORATION | ||
CLECO POWER | 2013 FORM 10-K |
CLECO CORPORATION | ||
CLECO POWER | 2013 FORM 10-K |
• | higher income tax refunds of $46.8 million, |
• | lower refund of Madison Unit 3 carrying costs of $23.8 million, |
• | lower payments for gas and power purchases of $15.5 million, |
• | lower storm expenditures of $9.1 million, |
• | lower vendor payments of $7.4 million, and |
• | lower payroll of $5.0 million. |
• | higher pension plan contributions of $34.0 million and |
• | lower collection of receivables of $18.8 million. |
• | 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 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. |
• | lower return of investment in the NMTC Fund of $36.0 million, |
• | lower transfers of cash from restricted accounts of $21.4 million, and |
• | lower property, plant, and equipment grants received of $15.9 million. |
• | lower additions to property, plant, and equipment, net of AFUDC, of $53.8 million and |
• | lower contributions to the NMTC Fund of $8.6 million. |
• | absence of the 2011 return of investment in Acadia of $89.7 million, |
• | higher additions to property, plant, and equipment, net of AFUDC, of $40.9 million, |
• | higher contributions to the NMTC Fund of $15.7 million, and |
• | the purchase of restricted investments of $12.0 million. |
• | higher transfers of cash from restricted accounts of $16.4 million and |
• | higher property, plant, and equipment grants received of $13.9 million. |
• | higher repurchases of long-term debt of $60.0 million, |
• | higher retirements of long-term debt of $39.6 million, |
• | higher net payments on the credit facility of $15.0 million, consisting of higher payments of $218.0 million and higher draws of $203.0 million, and |
• | higher dividends paid on common stock of $7.5 million. |
• | higher issuance of long-term debt of $110.0 million and |
• | the absence of the 2012 repurchase of common stock of $8.0 million. |
• | absence of the 2011 repayment of a bank term loan of $150.0 million, |
• | the absence of the repurchase of long-term debt of $132.0 million, |
• | lower net payments on the credit facility of $20.0 million, consisting of lower payments of $90.0 million and lower draws of $70.0 million, |
• | the absence of the 2011 settlement of the treasury rate lock of $18.6 million, and |
• | lower repurchases of common stock of $5.0 million. |
• | higher retirements of long-term debt of $62.1 million, |
• | lower issuance of long-term debt of $50.0 million, and |
CLECO CORPORATION | ||
CLECO POWER | 2013 FORM 10-K |
• | higher dividends paid on common stock of $10.8 million. |
• | lower refund of Madison Unit 3 carrying costs of $23.8 million, |
• | lower payments for gas and power purchases of $15.5 million, |
• | lower storm expenditures of $9.1 million, |
• | lower vendor payments of $7.6 million, and |
• | lower payroll of $3.7 million. |
• | higher pension plan contributions of $34.0 million and |
• | lower collection of receivables of $18.2 million. |
• | the absence of 2011 fuel oil inventory sales of $31.5 million, |
• | higher vendor payments of $27.9 million, |
• | higher expenditures for other fuel inventories and related transportation of $12.4 million, and |
• | lower customer deposits of $1.5 million. |
• | the absence of 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. |
• | lower additions to property, plant, and equipment, net of AFUDC of $55.2 million and |
• | maturities of restricted investments of $6.8 million. |
• | lower transfers of cash from restricted accounts of $21.5 million and |
• | lower property, plant, and equipment grants received of $15.9 million. |
• | higher additions to property, plant, and equipment, net of AFUDC, of $52.6 million and |
• | purchases of restricted investments of $12.0 million. |
• | higher transfers of cash from restricted accounts of $16.4 million and |
• | higher property, plant, and equipment grants received of $13.9 million. |
• | higher repurchases of long-term debt of $60.0 million, |
• | higher distributions to Cleco Corporation of $47.0 million, and |
• | higher retirements of long-term debt of $39.6 million. |
• | higher issuance of long-term debt of $110.0 million and |
• | net draws on the credit facility of $20.0 million, consisting of draws of $180.0 million and payments of $160.0 million. |
• | absence of the 2011 repurchase of long-term debt of $132.0 million, |
• | lower distributions to Cleco Corporation of $72.0 million, and |
• | the absence of the 2011 settlement of the treasury rate lock of $18.6 million. |
• | higher repayments of long-term debt of $62.1 million and |
• | lower issuance of long-term debt of $50.0 million. |
CLECO CORPORATION | ||
CLECO POWER | 2013 FORM 10-K |
Cleco | |||||||||||||
PROJECT (THOUSANDS) | 2014 | % | 2014-2018 | % | |||||||||
Other environmental | $ | 2,000 | 1 | % | $ | 59,000 | 8 | % | |||||
MATS | 53,000 | 25 | % | 53,000 | 7 | % | |||||||
New business | 41,000 | 19 | % | 184,000 | 24 | % | |||||||
General (1) | 119,000 | 55 | % | 457,000 | 61 | % | |||||||
Total capital expenditures | $ | 215,000 | 100 | % | $ | 753,000 | 100 | % | |||||
Debt payments | 15,000 | 445,000 | |||||||||||
Total capital expenditures and debt payments | $ | 230,000 | $ | 1,198,000 | |||||||||
(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) | 2014 | % | 2014-2018 | % | |||||||||
Other environmental | $ | 2,000 | 1 | % | $ | 59,000 | 8 | % | |||||
MATS | 53,000 | 25 | % | 53,000 | 7 | % | |||||||
New business | 41,000 | 19 | % | 184,000 | 25 | % | |||||||
General (1) | 117,000 | 55 | % | 452,000 | 60 | % | |||||||
Total capital expenditures | $ | 213,000 | 100 | % | $ | 748,000 | 100 | % | |||||
Debt payments | 15,000 | 440,000 | |||||||||||
Total capital expenditures and debt payments | $ | 228,000 | $ | 1,188,000 | |||||||||
(1) Refers to the rehabilitation of older transmission, distribution, and generation assets at Cleco Power. |
CLECO CORPORATION | ||
CLECO POWER | 2013 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) | $ | 7,700 | $ | 5,563 | $ | 1,125 | $ | 1,012 | $ | — | |||||||||
Operating lease obligations (3) | 11 | 11 | — | — | — | ||||||||||||||
Purchase obligations (4) | 33,117 | 14,640 | 9,254 | 5,140 | 4,083 | ||||||||||||||
Other long-term liabilities (5) | 83,518 | 50,498 | 22,528 | 5,210 | 5,282 | ||||||||||||||
Pension and other benefits obligations (6) | 191,029 | 6,244 | 13,466 | 14,008 | 157,311 | ||||||||||||||
Total Cleco Corporation | $ | 315,375 | $ | 76,956 | $ | 46,373 | $ | 25,370 | $ | 166,676 | |||||||||
Cleco Power | |||||||||||||||||||
Long-term debt obligations (1) | $ | 2,858,249 | $ | 112,418 | $ | 266,510 | $ | 420,572 | $ | 2,058,749 | |||||||||
Capital lease obligations (2) | 17,316 | 4,109 | 9,531 | 3,676 | — | ||||||||||||||
Operating lease obligations (3) | 53,523 | 10,560 | 21,497 | 11,797 | 9,669 | ||||||||||||||
Purchase obligations (4) | 337,115 | 174,388 | 154,616 | 8,088 | 23 | ||||||||||||||
Other long-term liabilities (5) | 233,722 | 21,689 | 53,562 | 50,584 | 107,887 | ||||||||||||||
Total Cleco Power | $ | 3,499,925 | $ | 323,164 | $ | 505,716 | $ | 494,717 | $ | 2,176,328 | |||||||||
Midstream | |||||||||||||||||||
Purchase obligations (4) | $ | 6,613 | $ | 916 | $ | 1,793 | $ | 1,902 | $ | 2,002 | |||||||||
Total Midstream | $ | 6,613 | $ | 916 | $ | 1,793 | $ | 1,902 | $ | 2,002 | |||||||||
Total long-term debt obligations (1) | $ | 2,865,949 | $ | 117,981 | $ | 267,635 | $ | 421,584 | $ | 2,058,749 | |||||||||
Total capital lease obligations (2) | $ | 17,316 | $ | 4,109 | $ | 9,531 | $ | 3,676 | $ | — | |||||||||
Total operating lease obligations (3) | $ | 53,534 | $ | 10,571 | $ | 21,497 | $ | 11,797 | $ | 9,669 | |||||||||
Total purchase obligations (4) | $ | 376,845 | $ | 189,944 | $ | 165,663 | $ | 15,130 | $ | 6,108 | |||||||||
Total other long-term liabilities (5) | $ | 317,240 | $ | 72,187 | $ | 76,090 | $ | 55,794 | $ | 113,169 | |||||||||
Total pension and other benefits obligations (6) | $ | 191,029 | $ | 6,244 | $ | 13,466 | $ | 14,008 | $ | 157,311 | |||||||||
Total | $ | 3,821,913 | $ | 401,036 | $ | 553,882 | $ | 521,989 | $ | 2,345,006 |
UNCERTAIN TAX POSITIONS (THOUSANDS) | AT DEC. 31, 2013 | ||||
Tax liability | 5,071 | ||||
Interest | 88 | ||||
Total consolidated* | $ | 5,159 | |||
Cleco Power | 11 | (1) | |||
Midstream | 5,518 | (2) | |||
Other | (370 | ) | (3) | ||
* Uncertain federal and state tax positions as of December 31, 2013, that will be settled at some future date with the IRS and Louisiana Department of Revenue. (1) Entire amount of $11 represents interest (2) Includes interest of $447 (3) Entire amount of ($370) represents interest |
CLECO CORPORATION | ||
CLECO POWER | 2013 FORM 10-K |
AT DEC. 31, 2013 | |||||||||||
(THOUSANDS) | FACE AMOUNT | REDUCTIONS | NET AMOUNT | ||||||||
Cleco Corporation | |||||||||||
Guarantee issued to Entergy Mississippi on behalf of Attala | $ | 500 | $ | — | $ | 500 | |||||
Guarantee issued to Cleco Power on behalf of Evangeline | $ | 8,000 | — | $ | 8,000 | ||||||
Cleco Power | |||||||||||
Obligations under standby letter of credit issued to the Louisiana Department of Labor | 3,725 | — | 3,725 | ||||||||
Obligations under standby letter of credit issued to MISO | 1,000 | — | 1,000 | ||||||||
Total | $ | 13,225 | $ | — | $ | 13,225 |
CLECO CORPORATION | ||
CLECO POWER | 2013 FORM 10-K |
AT DEC. 31, 2013 | |||||||||||||||||||
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 | $ | 13,225 | $ | 3,725 | $ | 8,000 | $ | 1,000 | $ | 500 | |||||||||
On-balance sheet guarantees | 4,906 | — | 900 | — | 4,006 | ||||||||||||||
Total | $ | 18,131 | $ | 3,725 | $ | 8,900 | $ | 1,000 | $ | 4,506 |
CLECO CORPORATION | ||
CLECO POWER | 2013 FORM 10-K |
CLECO CORPORATION | ||
CLECO POWER | 2013 FORM 10-K |
CLECO CORPORATION | ||
CLECO POWER | 2013 FORM 10-K |
CLECO CORPORATION | ||
CLECO POWER | 2013 FORM 10-K |
ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
RISK OVERVIEW |
CLECO CORPORATION | ||
CLECO POWER | 2013 FORM 10-K |
CLECO POWER |
CLECO CORPORATION | ||
CLECO POWER | 2013 FORM 10-K |
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA |
Report of Independent Registered Public Accounting Firm |
CLECO CORPORATION | ||
CLECO POWER | 2013 FORM 10-K |
Report of Independent Registered Public Accounting Firm |
CLECO CORPORATION | ||
CLECO POWER | 2013 FORM 10-K |
CLECO CORPORATION | |||||||||||
Consolidated Statements of Income | |||||||||||
FOR THE YEAR ENDED DEC. 31, | |||||||||||
(THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS) | 2013 | 2012 | 2011 | ||||||||
Operating revenue | |||||||||||
Electric operations | $ | 1,047,548 | $ | 944,169 | $ | 1,051,956 | |||||
Tolling operations | — | — | 19,004 | ||||||||
Other operations | 51,002 | 50,158 | 52,962 | ||||||||
Affiliate revenue | — | — | 202 | ||||||||
Gross operating revenue | 1,098,550 | 994,327 | 1,124,124 | ||||||||
Electric customer credits | (1,836 | ) | (630 | ) | (6,811 | ) | |||||
Operating revenue, net | 1,096,714 | 993,697 | 1,117,313 | ||||||||
Operating expenses | |||||||||||
Fuel used for electric generation | 329,874 | 280,553 | 383,254 | ||||||||
Power purchased for utility customers | 45,292 | 53,134 | 70,462 | ||||||||
Other operations | 121,646 | 120,898 | 123,849 | ||||||||
Maintenance | 97,441 | 86,488 | 82,076 | ||||||||
Depreciation | 142,860 | 132,407 | 122,578 | ||||||||
Taxes other than income taxes | 50,469 | 38,515 | 36,356 | ||||||||
Loss on sale of assets | 800 | 51 | 491 | ||||||||
Total operating expenses | 788,382 | 712,046 | 819,066 | ||||||||
Operating income | 308,332 | 281,651 | 298,247 | ||||||||
Interest income | 1,105 | 346 | 891 | ||||||||
Allowance for other funds used during construction | 4,081 | 6,711 | 4,947 | ||||||||
Equity income from investees, before tax | — | — | 62,050 | ||||||||
Other income | 13,857 | 29,117 | 8,914 | ||||||||
Other expense | (2,861 | ) | (4,694 | ) | (5,646 | ) | |||||
Interest charges | |||||||||||
Interest charges, including amortization of debt expense, premium, and discount, net | 85,570 | 86,448 | 72,445 | ||||||||
Allowance for borrowed funds used during construction | (1,316 | ) | (2,292 | ) | (1,787 | ) | |||||
Total interest charges | 84,254 | 84,156 | 70,658 | ||||||||
Income before income taxes | 240,260 | 228,975 | 298,745 | ||||||||
Federal and state income tax expense | 79,575 | 65,327 | 102,897 | ||||||||
Net income | 160,685 | 163,648 | 195,848 | ||||||||
Preferred dividends requirements | — | — | 26 | ||||||||
Preferred stock redemption costs | — | — | 112 | ||||||||
Net income applicable to common stock | $ | 160,685 | $ | 163,648 | $ | 195,710 | |||||
Average number of basic common shares outstanding | 60,434,510 | 60,370,588 | 60,488,740 | ||||||||
Average number of diluted common shares outstanding | 60,720,090 | 60,628,129 | 60,833,564 | ||||||||
Basic earnings per share | |||||||||||
Net income applicable to common stock | $ | 2.66 | $ | 2.71 | $ | 3.24 | |||||
Diluted earnings per share | |||||||||||
Net income applicable to common stock | $ | 2.65 | $ | 2.70 | $ | 3.22 | |||||
The accompanying notes are an integral part of the consolidated financial statements. |
CLECO CORPORATION | ||
CLECO POWER | 2013 FORM 10-K |
CLECO CORPORATION | |||||||||||
Consolidated Statements of Comprehensive Income | |||||||||||
FOR THE YEAR ENDED DEC. 31, | |||||||||||
(THOUSANDS) | 2013 | 2012 | 2011 | ||||||||
Net income | $ | 160,685 | $ | 163,648 | $ | 195,848 | |||||
Other comprehensive income (loss), net of tax: | |||||||||||
Postretirement benefits gain (loss) (net of tax expense of $3,137 in 2013 and tax benefit of $4,230 in 2012 and $344 in 2011) | 5,016 | (6,565 | ) | (508 | ) | ||||||
Net gain (loss) on cash flow hedges (net of tax expense of $925 in 2013 and $1,460 in 2012, and tax benefit of $10,002 in 2011) | 1,478 | 2,334 | (15,993 | ) | |||||||
Total other comprehensive income (loss), net of tax | 6,494 | (4,231 | ) | (16,501 | ) | ||||||
Comprehensive income, net of tax | $ | 167,179 | $ | 159,417 | $ | 179,347 | |||||
The accompanying notes are an integral part of the consolidated financial statements. |
CLECO CORPORATION | ||
CLECO POWER | 2013 FORM 10-K |
CLECO CORPORATION | |||||||
Consolidated Balance Sheets | |||||||
AT DEC. 31, | |||||||
(THOUSANDS) | 2013 | 2012 | |||||
Assets | |||||||
Current assets | |||||||
Cash and cash equivalents | $ | 28,656 | $ | 31,020 | |||
Restricted cash and cash equivalents | 8,986 | 8,781 | |||||
Customer accounts receivable (less allowance for doubtful accounts of $849 in 2013 and $1,105 in 2012) | 50,567 | 39,293 | |||||
Other accounts receivable | 46,981 | 37,741 | |||||
Taxes receivable, net | — | 34,612 | |||||
Unbilled revenue | 31,166 | 28,662 | |||||
Fuel inventory, at average cost | 60,913 | 46,867 | |||||
Material and supplies inventory, at average cost | 62,811 | 58,232 | |||||
Energy risk management assets | 9,020 | — | |||||
Accumulated deferred federal and state income taxes, net | 94,179 | 79,353 | |||||
Accumulated deferred fuel | — | 7,833 | |||||
Cash surrender value of company-/trust-owned life insurance policies | 64,720 | 57,346 | |||||
Prepayments | 9,204 | 5,951 | |||||
Regulatory assets - other | 5,975 | 11,095 | |||||
Other current assets | 404 | 552 | |||||
Total current assets | 473,582 | 447,338 | |||||
Property, plant, and equipment | |||||||
Property, plant, and equipment | 4,326,522 | 4,140,194 | |||||
Accumulated depreciation | (1,351,223 | ) | (1,311,273 | ) | |||
Net property, plant, and equipment | 2,975,299 | 2,828,921 | |||||
Construction work in progress | 107,841 | 180,540 | |||||
Total property, plant, and equipment, net | 3,083,140 | 3,009,461 | |||||
Equity investment in investees | 14,540 | 14,540 | |||||
Prepayments | 4,510 | 4,261 | |||||
Restricted cash and cash equivalents | 5,033 | 5,440 | |||||
Restricted investments | 12,829 | 10,852 | |||||
Regulatory assets - deferred taxes, net | 229,173 | 210,445 | |||||
Regulatory assets - other | 249,677 | 289,570 | |||||
Net investment in direct financing lease | 13,523 | 13,542 | |||||
Intangible asset | 106,007 | 120,545 | |||||
Other deferred charges | 23,248 | 21,355 | |||||
Total assets | $ | 4,215,262 | $ | 4,147,349 | |||
The accompanying notes are an integral part of the consolidated financial statements. | |||||||
(Continued on next page) |
CLECO CORPORATION | ||
CLECO POWER | 2013 FORM 10-K |
CLECO CORPORATION | |||||||
Consolidated Balance Sheets | |||||||
AT DEC. 31, | |||||||
(THOUSANDS) | 2013 | 2012 | |||||
Liabilities and shareholders’ equity | |||||||
Liabilities | |||||||
Current liabilities | |||||||
Long-term debt due within one year | $ | 17,182 | $ | 91,140 | |||
Accounts payable | 110,544 | 102,695 | |||||
Customer deposits | 48,456 | 45,553 | |||||
Provision for rate refund | 3,533 | 4,165 | |||||
Taxes payable | 18,680 | — | |||||
Interest accrued | 12,188 | 12,957 | |||||
Accumulated deferred fuel | 3,869 | — | |||||
Energy risk management liabilities | 382 | — | |||||
Interest rate risk management liability | — | 2,627 | |||||
Regulatory liabilities - other | — | 8,255 | |||||
Deferred compensation | 11,081 | 9,626 | |||||
Uncertain tax positions | 4,610 | 686 | |||||
Other current liabilities | 12,948 | 16,926 | |||||
Total current liabilities | 243,473 | 294,630 | |||||
Long-term liabilities and deferred credits | |||||||
Accumulated deferred federal and state income taxes, net | 869,150 | 762,992 | |||||
Accumulated deferred investment tax credits | 5,144 | 6,252 | |||||
Postretirement benefit obligations | 103,483 | 186,746 | |||||
Restricted storm reserve | 17,646 | 16,285 | |||||
Uncertain tax positions | — | 2,184 | |||||
Tax credit fund investment, net | 41,840 | 78,840 | |||||
Contingent sale obligations | 900 | 8,150 | |||||
Other deferred credits | 31,929 | 34,799 | |||||
Total long-term liabilities and deferred credits | 1,070,092 | 1,096,248 | |||||
Long-term debt, net | 1,315,500 | 1,257,258 | |||||
Total liabilities | 2,629,065 | 2,648,136 | |||||
Commitments and Contingencies (Note 14) | |||||||
Shareholders’ equity | |||||||
Common shareholders’ equity | |||||||
Common stock, $1 par value, authorized 100,000,000 shares, issued 61,047,006 and 60,961,570 shares and outstanding 60,454,520 and 60,355,545 shares at December 31, 2013 and 2012, respectively | 61,047 | 60,962 | |||||
Premium on common stock | 422,624 | 416,619 | |||||
Retained earnings | 1,149,003 | 1,075,074 | |||||
Treasury stock, at cost, 592,486 and 606,025 shares at December 31, 2013 and 2012, respectively | (20,601 | ) | (21,072 | ) | |||
Accumulated other comprehensive loss | (25,876 | ) | (32,370 | ) | |||
Total shareholders’ equity | 1,586,197 | 1,499,213 | |||||
Total liabilities and shareholders’ equity | $ | 4,215,262 | $ | 4,147,349 | |||
The accompanying notes are an integral part of the consolidated financial statements. |
CLECO CORPORATION | ||
CLECO POWER | 2013 FORM 10-K |
CLECO CORPORATION | |||||||||||
Consolidated Statements of Cash Flows | |||||||||||
FOR THE YEAR ENDED DEC. 31, | |||||||||||
(THOUSANDS) | 2013 | 2012 | 2011 | ||||||||
Operating activities | |||||||||||
Net income | $ | 160,685 | $ | 163,648 | $ | 195,848 | |||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | 161,047 | 162,430 | 160,765 | ||||||||
Return on equity investment in investees | — | — | 58,665 | ||||||||
Income from equity investments | — | — | (62,050 | ) | |||||||
Unearned compensation expense | 6,446 | 6,180 | 7,416 | ||||||||
Allowance for other funds used during construction - equity | (4,081 | ) | (6,711 | ) | (4,947 | ) | |||||
Net deferred income taxes | 65,989 | 19,930 | 23,618 | ||||||||
Deferred fuel costs | 5,630 | (12,222 | ) | 653 | |||||||
Cash surrender value of company-/trust-owned life insurance | (3,669 | ) | (3,300 | ) | 1,687 | ||||||
Changes in assets and liabilities: | |||||||||||
Accounts receivable | (26,357 | ) | (11,543 | ) | (19,146 | ) | |||||
Unbilled revenue | (2,504 | ) | 1,468 | 14,520 | |||||||
Fuel, materials and supplies inventory | (18,626 | ) | (9,539 | ) | 35,442 | ||||||
Prepayments | (3,502 | ) | (59 | ) | 1,520 | ||||||
Accounts payable | (1,656 | ) | (23,016 | ) | (3,618 | ) | |||||
Customer deposits | 12,213 | 11,167 | 12,693 | ||||||||
Postretirement benefit obligations | (24,541 | ) | 7,485 | (55,529 | ) | ||||||
Regulatory assets and liabilities, net | (30,524 | ) | (31,043 | ) | (43,131 | ) | |||||
Contingent sale obligations | — | — | 10,900 | ||||||||
Other deferred accounts | (5,547 | ) | (15,695 | ) | 4,305 | ||||||
Taxes accrued | 53,197 | 9,786 | 5,171 | ||||||||
Interest accrued | (768 | ) | (6,676 | ) | (38,103 | ) | |||||
Energy risk management assets and liabilities, net | — | 38 | 4,646 | ||||||||
Other operating | (1,742 | ) | 777 | (1,264 | ) | ||||||
Net cash provided by operating activities | 341,690 | 263,105 | 310,061 | ||||||||
Investing activities | |||||||||||
Additions to property, plant, and equipment | (188,614 | ) | (245,033 | ) | (202,405 | ) | |||||
Allowance for other funds used during construction - equity | 4,081 | 6,711 | 4,947 | ||||||||
Property, plant, and equipment grants | 729 | 16,647 | 2,788 | ||||||||
Insurance reimbursement for property loss | 1,306 | 5,454 | 4,482 | ||||||||
Return of equity investment in investees | — | — | 89,654 | ||||||||
Premiums paid on company-/trust-owned life insurance | (3,705 | ) | (2,973 | ) | (2,972 | ) | |||||
Return of equity investment in tax credit fund | 1,619 | 37,652 | 33,430 | ||||||||
Contributions to tax credit fund | (51,011 | ) | (59,645 | ) | (43,921 | ) | |||||
Transfer of cash from restricted accounts | 201 | 21,607 | 5,220 | ||||||||
Purchase of restricted investments | (8,782 | ) | (11,966 | ) | — | ||||||
Maturity of restricted investments | 6,816 | — | — | ||||||||
Other investing | 1,144 | 2,382 | 5,061 | ||||||||
Net cash used in investing activities | (236,216 | ) | (229,164 | ) | (103,716 | ) | |||||
(Continued on next page) |
CLECO CORPORATION | ||
CLECO POWER | 2013 FORM 10-K |
CLECO CORPORATION | |||||||||||
Consolidated Statements of Cash Flows | |||||||||||
FOR THE YEAR ENDED DEC. 31, | |||||||||||
(THOUSANDS) | 2013 | 2012 | 2011 | ||||||||
Financing activities | |||||||||||
Retirement of short-term debt | — | — | (150,000 | ) | |||||||
Draws on credit facility | 228,000 | 25,000 | 95,000 | ||||||||
Payments on credit facility | (228,000 | ) | (10,000 | ) | (100,000 | ) | |||||
Issuance of long-term debt | 160,000 | 50,000 | 100,000 | ||||||||
Retirement of long-term debt | (113,969 | ) | (74,368 | ) | (12,269 | ) | |||||
Repurchase of long-term debt | (60,000 | ) | — | (132,000 | ) | ||||||
Repurchase of common stock | — | (8,007 | ) | (13,009 | ) | ||||||
Settlement of treasury rate lock | — | — | (18,636 | ) | |||||||
Settlement of interest rate swap | (3,269 | ) | — | — | |||||||
Dividends paid on common stock | (86,376 | ) | (78,844 | ) | (68,023 | ) | |||||
Other financing | (4,224 | ) | (278 | ) | (4,960 | ) | |||||
Net cash used in financing activities | (107,838 | ) | (96,497 | ) | (303,897 | ) | |||||
Net decrease in cash and cash equivalents | (2,364 | ) | (62,556 | ) | (97,552 | ) | |||||
Cash and cash equivalents at beginning of period | 31,020 | 93,576 | 191,128 | ||||||||
Cash and cash equivalents at end of period | $ | 28,656 | $ | 31,020 | $ | 93,576 | |||||
Supplementary cash flow information | |||||||||||
Interest paid (net of amount capitalized) | $ | 77,296 | $ | 80,823 | $ | 95,487 | |||||
Income taxes (refunded) paid, net | $ | (47,374 | ) | $ | (624 | ) | $ | 46,636 | |||
Supplementary non-cash investing and financing activities | |||||||||||
Accrued additions to property, plant, and equipment | $ | 18,627 | $ | 16,102 | $ | 17,525 | |||||
Issuance of common stock – ESPP | $ | 318 | $ | 340 | $ | 328 | |||||
Non-cash additions to property, plant, and equipment | $ | 1,280 | $ | 21,559 | $ | 7,824 | |||||
The accompanying notes are an integral part of the consolidated financial statements. |
CLECO CORPORATION | ||
CLECO POWER | 2013 FORM 10-K |
CLECO CORPORATION | |||||||||||||||||||||||||||||
Consolidated Statements of Changes in Common Shareholders’ Equity | |||||||||||||||||||||||||||||
COMMON STOCK | TREASURY STOCK | PREMIUM ON COMMON STOCK | RETAINED EARNINGS | ACCUMULATED OTHER COMPREHENSIVE LOSS | TOTAL COMMON SHAREHOLDERS’ EQUITY | ||||||||||||||||||||||||
(THOUSANDS, EXCEPT SHARE AMOUNTS) | SHARES | AMOUNT | SHARES | COST | |||||||||||||||||||||||||
Balances, Dec. 31, 2010 | 60,539,624 | $ | 60,540 | (13,498 | ) | $ | (274 | ) | $ | 405,313 | $ | 863,237 | $ | (11,638 | ) | $ | 1,317,178 | ||||||||||||
Common stock issued for compensatory plans | 162,718 | 162 | 3,095 | 68 | 4,591 | — | — | 4,821 | |||||||||||||||||||||
Repurchase of common 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 | (410,403 | ) | $ | (13,215 | ) | $ | 409,904 | $ | 990,605 | $ | (28,139 | ) | $ | 1,419,857 | ||||||||||||
Common stock issued for compensatory plans | 259,228 | 260 | 4,378 | 150 | 6,715 | — | — | 7,125 | |||||||||||||||||||||
Repurchase of common 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 | (606,025 | ) | $ | (21,072 | ) | $ | 416,619 | $ | 1,075,074 | $ | (32,370 | ) | $ | 1,499,213 | ||||||||||||
Common stock issued for compensatory plans | 85,436 | 85 | 13,539 | 471 | 6,005 | — | — | 6,561 | |||||||||||||||||||||
Dividends on common stock, $1.425 per share | — | — | — | — | — | (86,756 | ) | — | (86,756 | ) | |||||||||||||||||||
Net income | — | — | — | — | — | 160,685 | — | 160,685 | |||||||||||||||||||||
Other comprehensive income, net of tax | — | — | — | — | — | — | 6,494 | 6,494 | |||||||||||||||||||||
Balances, Dec. 31, 2013 | 61,047,006 | $ | 61,047 | (592,486 | ) | $ | (20,601 | ) | $ | 422,624 | $ | 1,149,003 | $ | (25,876 | ) | $ | 1,586,197 | ||||||||||||
The accompanying notes are an integral part of the consolidated financial statements. |
CLECO CORPORATION | ||
CLECO POWER | 2013 FORM 10-K |
Report of Independent Registered Public Accounting Firm |
CLECO CORPORATION | ||
CLECO POWER | 2013 FORM 10-K |
Report of Independent Registered Public Accounting Firm |
CLECO CORPORATION | ||
CLECO POWER | 2013 FORM 10-K |
CLECO POWER | |||||||||||
Consolidated Statements of Income | |||||||||||
FOR THE YEAR ENDED DEC. 31, | |||||||||||
(THOUSANDS) | 2013 | 2012 | 2011 | ||||||||
Operating revenue | |||||||||||
Electric operations | $ | 1,047,548 | $ | 944,169 | $ | 1,051,956 | |||||
Other operations | 48,909 | 48,156 | 50,948 | ||||||||
Affiliate revenue | 1,338 | 1,372 | 1,389 | ||||||||
Gross operating revenue | 1,097,795 | 993,697 | 1,104,293 | ||||||||
Electric customer credits | (1,836 | ) | (630 | ) | (6,811 | ) | |||||
Operating revenue, net | 1,095,959 | 993,067 | 1,097,482 | ||||||||
Operating expenses | |||||||||||
Fuel used for electric generation | 329,874 | 280,249 | 383,254 | ||||||||
Power purchased for utility customers | 76,962 | 78,683 | 70,462 | ||||||||
Other operations | 114,884 | 115,072 | 116,988 | ||||||||
Maintenance | 85,638 | 72,386 | 74,603 | ||||||||
Depreciation | 135,717 | 125,486 | 115,634 | ||||||||
Taxes other than income taxes | 46,203 | 33,999 | 32,157 | ||||||||
Gain on sale of assets | — | (2 | ) | (9 | ) | ||||||
Total operating expenses | 789,278 | 705,873 | 793,089 | ||||||||
Operating income | 306,681 | 287,194 | 304,393 | ||||||||
Interest income | 1,100 | 333 | 630 | ||||||||
Allowance for other funds used during construction | 4,081 | 6,711 | 4,947 | ||||||||
Other income | 4,883 | 5,847 | 3,163 | ||||||||
Other expense | (4,277 | ) | (4,602 | ) | (3,799 | ) | |||||
Interest charges | |||||||||||
Interest charges, including amortization of debt expense, premium, and discount, net | 83,993 | 82,794 | 98,877 | ||||||||
Allowance for borrowed funds used during construction | (1,316 | ) | (2,292 | ) | (1,787 | ) | |||||
Total interest charges | 82,677 | 80,502 | 97,090 | ||||||||
Income before income taxes | 229,791 | 214,981 | 212,244 | ||||||||
Federal and state income taxes | 79,381 | 68,133 | 69,409 | ||||||||
Net income | $ | 150,410 | $ | 146,848 | $ | 142,835 | |||||
The accompanying notes are an integral part of the consolidated financial statements. |
CLECO CORPORATION | ||
CLECO POWER | 2013 FORM 10-K |
CLECO POWER | |||||||||||
Consolidated Statements of Comprehensive Income | |||||||||||
FOR THE YEAR ENDED DEC. 31, | |||||||||||
(THOUSANDS) | 2013 | 2012 | 2011 | ||||||||
Net income | $ | 150,410 | $ | 146,848 | $ | 142,835 | |||||
Other comprehensive income (loss), net of tax: | |||||||||||
Postretirement benefits gain (loss) (net of tax expense of $2,355 in 2013 and $37 in 2011, and tax benefit of $1,436 in 2012) | 3,766 | (2,125 | ) | 97 | |||||||
Net gain (loss) on cash flow hedges (net of tax expense of $925 in 2013 and $1,460 in 2012, and tax benefit of $10,002 in 2011) | 1,478 | 2,334 | (15,993 | ) | |||||||
Total other comprehensive income (loss), net of tax | 5,244 | 209 | (15,896 | ) | |||||||
Comprehensive income, net of tax | $ | 155,654 | $ | 147,057 | $ | 126,939 | |||||
The accompanying notes are an integral part of the consolidated financial statements. |
CLECO CORPORATION | ||
CLECO POWER | 2013 FORM 10-K |
CLECO POWER | |||||||
Consolidated Balance Sheets | |||||||
AT DEC. 31, | |||||||
(THOUSANDS) | 2013 | 2012 | |||||
Assets | |||||||
Utility plant and equipment | |||||||
Property, plant, and equipment | $ | 4,052,774 | $ | 3,871,940 | |||
Accumulated depreciation | (1,260,843 | ) | (1,227,078 | ) | |||
Net property, plant, and equipment | 2,791,931 | 2,644,862 | |||||
Construction work in progress | 104,113 | 176,584 | |||||
Total utility plant, net | 2,896,044 | 2,821,446 | |||||
Current assets | |||||||
Cash and cash equivalents | 21,055 | 23,368 | |||||
Restricted cash and cash equivalents | 8,986 | 8,781 | |||||
Customer accounts receivable (less allowance for doubtful accounts of $849 in 2013 and $1,105 in 2012) | 50,567 | 39,293 | |||||
Accounts receivable - affiliate | 1,045 | 2,991 | |||||
Other accounts receivable | 46,939 | 37,562 | |||||
Unbilled revenue | 31,166 | 28,662 | |||||
Fuel inventory, at average cost | 60,913 | 46,867 | |||||
Material and supplies inventory, at average cost | 59,964 | 55,472 | |||||
Energy risk management assets | 9,020 | — | |||||
Accumulated deferred federal and state income taxes, net | 80,981 | 87,286 | |||||
Accumulated deferred fuel | — | 7,833 | |||||
Cash surrender value of company-owned life insurance policies | 19,326 | 20,842 | |||||
Prepayments | 7,074 | 4,415 | |||||
Regulatory assets - other | 5,975 | 11,095 | |||||
Other current assets | 388 | 371 | |||||
Total current assets | 403,399 | 374,838 | |||||
Equity investment in investee | 14,532 | 14,532 | |||||
Prepayments | 4,510 | 4,261 | |||||
Restricted cash and cash equivalents | 5,012 | 5,343 | |||||
Restricted investments | 12,829 | 10,852 | |||||
Regulatory assets - deferred taxes, net | 229,173 | 210,445 | |||||
Regulatory assets - other | 249,677 | 289,570 | |||||
Intangible asset | 106,007 | 120,545 | |||||
Other deferred charges | 22,529 | 19,897 | |||||
Total assets | $ | 3,943,712 | $ | 3,871,729 | |||
(Continued on next page) |
CLECO CORPORATION | ||
CLECO POWER | 2013 FORM 10-K |
CLECO POWER | |||||||
Consolidated Balance Sheets | |||||||
AT DEC. 31, | |||||||
(THOUSANDS) | 2013 | 2012 | |||||
Liabilities and member’s equity | |||||||
Member’s equity | $ | 1,370,573 | $ | 1,319,919 | |||
Long-term debt, net | 1,310,500 | 1,232,258 | |||||
Total capitalization | 2,681,073 | 2,552,177 | |||||
Current liabilities | |||||||
Long-term debt due within one year | 17,182 | 91,140 | |||||
Accounts payable | 98,785 | 89,782 | |||||
Accounts payable - affiliate | 8,386 | 10,097 | |||||
Customer deposits | 48,456 | 45,553 | |||||
Provision for rate refund | 3,533 | 4,165 | |||||
Taxes payable | 6,700 | 1,328 | |||||
Interest accrued | 13,589 | 13,893 | |||||
Accumulated deferred fuel | 3,869 | — | |||||
Energy risk management liabilities | 382 | — | |||||
Interest rate risk management liability | — | 2,627 | |||||
Regulatory liabilities - other | — | 8,255 | |||||
Other current liabilities | 9,791 | 11,746 | |||||
Total current liabilities | 210,673 | 278,586 | |||||
Commitments and Contingencies (Note 14) | |||||||
Long-term liabilities and deferred credits | |||||||
Accumulated deferred federal and state income taxes, net | 945,559 | 845,769 | |||||
Accumulated deferred investment tax credits | 5,144 | 6,252 | |||||
Postretirement benefit obligations | 52,953 | 137,637 | |||||
Restricted storm reserve | 17,646 | 16,285 | |||||
Uncertain tax positions | — | 222 | |||||
Other deferred credits | 30,664 | 34,801 | |||||
Total long-term liabilities and deferred credits | 1,051,966 | 1,040,966 | |||||
Total liabilities and member’s equity | $ | 3,943,712 | $ | 3,871,729 | |||
The accompanying notes are an integral part of the consolidated financial statements. |
CLECO CORPORATION | ||
CLECO POWER | 2013 FORM 10-K |
CLECO POWER | |||||||||||
Consolidated Statements of Cash Flows | |||||||||||
FOR THE YEAR ENDED DEC. 31, | |||||||||||
(THOUSANDS) | 2013 | 2012 | 2011 | ||||||||
Operating activities | |||||||||||
Net income | $ | 150,410 | $ | 146,848 | $ | 142,835 | |||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | 147,452 | 137,053 | 127,109 | ||||||||
Allowance for other funds used during construction - equity | (4,081 | ) | (6,711 | ) | (4,947 | ) | |||||
Net deferred income taxes | 81,534 | 57,364 | 45,608 | ||||||||
Deferred fuel costs | 5,630 | (12,222 | ) | 653 | |||||||
Changes in assets and liabilities: | |||||||||||
Accounts receivable | (26,491 | ) | (12,290 | ) | (18,206 | ) | |||||
Unbilled revenue | (2,504 | ) | 1,468 | 14,520 | |||||||
Fuel, materials and supplies inventory | (18,539 | ) | (9,361 | ) | 35,673 | ||||||
Accounts payable | (848 | ) | (22,874 | ) | (4,498 | ) | |||||
Accounts and notes payable, affiliate | (3,403 | ) | (122 | ) | 600 | ||||||
Customer deposits | 12,213 | 11,167 | 12,693 | ||||||||
Postretirement benefit obligations | (28,306 | ) | 5,947 | (57,531 | ) | ||||||
Regulatory assets and liabilities, net | (30,524 | ) | (31,043 | ) | (43,131 | ) | |||||
Other deferred accounts | (8,212 | ) | (19,989 | ) | (2,399 | ) | |||||
Taxes accrued | 5,372 | 4,503 | 926 | ||||||||
Interest accrued | (304 | ) | (5,431 | ) | (5,609 | ) | |||||
Energy risk management assets and liabilities, net | — | 38 | 4,646 | ||||||||
Other operating | 5 | (245 | ) | 2,816 | |||||||
Net cash provided by operating activities | 279,404 | 244,100 | 251,758 | ||||||||
Investing activities | |||||||||||
Additions to property, plant, and equipment | (181,154 | ) | (238,943 | ) | (184,615 | ) | |||||
Allowance for other funds used during construction - equity | 4,081 | 6,711 | 4,947 | ||||||||
Property, plant, and equipment grants | 729 | 16,647 | 2,788 | ||||||||
Transfer of cash from restricted accounts | 125 | 21,607 | 5,220 | ||||||||
Purchase of restricted investments | (8,782 | ) | (11,966 | ) | — | ||||||
Maturity of restricted investments | 6,816 | — | — | ||||||||
Other investing | 2,367 | 2,387 | (574 | ) | |||||||
Net cash used in investing activities | (175,818 | ) | (203,557 | ) | (172,234 | ) | |||||
Financing activities | |||||||||||
Draws on credit facility | 180,000 | — | 60,000 | ||||||||
Payments on credit facility | (160,000 | ) | — | (60,000 | ) | ||||||
Issuance of long-term debt | 160,000 | 50,000 | 100,000 | ||||||||
Retirement of long-term debt | (113,969 | ) | (74,368 | ) | (12,269 | ) | |||||
Repurchase of long-term debt | (60,000 | ) | — | (132,000 | ) | ||||||
Settlement of treasury rate lock | — | — | (18,636 | ) | |||||||
Settlement of interest rate swap | (3,269 | ) | — | — | |||||||
Distribution to parent | (105,000 | ) | (58,000 | ) | (130,000 | ) | |||||
Other financing | (3,661 | ) | (2,265 | ) | (4,073 | ) | |||||
Net cash used in financing activities | (105,899 | ) | (84,633 | ) | (196,978 | ) | |||||
Net decrease in cash and cash equivalents | (2,313 | ) | (44,090 | ) | (117,454 | ) | |||||
Cash and cash equivalents at beginning of period | 23,368 | 67,458 | 184,912 | ||||||||
Cash and cash equivalents at end of period | $ | 21,055 | $ | 23,368 | $ | 67,458 | |||||
Supplementary cash flow information | |||||||||||
Interest paid (net of amount capitalized) | $ | 77,079 | $ | 80,729 | $ | 93,735 | |||||
Income taxes (refunded) paid, net | $ | (456 | ) | $ | (711 | ) | $ | 2,233 | |||
Supplementary non-cash investing and financing activities | |||||||||||
Accrued additions to property, plant, and equipment | $ | 18,414 | $ | 15,547 | $ | 21,007 | |||||
Non-cash additions to property, plant, and equipment | $ | 1,280 | $ | 21,559 | $ | 7,824 | |||||
The accompanying notes are an integral part of the consolidated financial statements. |
CLECO CORPORATION | ||
CLECO POWER | 2013 FORM 10-K |
CLECO POWER | |||||||||||
Consolidated Statements of Changes in Member’s Equity | |||||||||||
(THOUSANDS) | RETAINED EARNINGS | ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME | TOTAL MEMBER’S EQUITY | ||||||||
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 | |||||||
Other comprehensive income, net of tax | — | 5,244 | 5,244 | ||||||||
Distribution to parent | (105,000 | ) | — | (105,000 | ) | ||||||
Net income | 150,410 | — | 150,410 | ||||||||
Balances, Dec. 31, 2013 | $ | 1,385,750 | $ | (15,177 | ) | $ | 1,370,573 | ||||
The accompanying notes are an integral part of the consolidated financial statements. |
CLECO CORPORATION | ||
CLECO POWER | 2013 FORM 10-K |
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 |
Notes to the Financial Statements |
Note 1 — The Company |
• | Cleco Power, a regulated electric utility subsidiary, which owns nine generating units with a total nameplate capacity of 2,565 MW and serves approximately 284,000 customers in Louisiana through its retail business and supplies wholesale power in Louisiana and Mississippi. 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). Evangeline owns two generating units with a total nameplate capacity of 775 MW. Midstream has entered into an agreement with Cleco Power to transfer Coughlin to Cleco Power. This transaction is expected to occur in March 2014. |
• | 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 | 2013 FORM 10-K |
FOR THE YEAR ENDED DEC. 31, 2011 | |||||||||||||||
CLECO | CLECO POWER | ||||||||||||||
(THOUSANDS) | AS REPORTED | AS ADJUSTED | AS REPORTED | AS ADJUSTED | |||||||||||
Accounts receivable | $ | (15,798 | ) | $ | (19,146 | ) | $ | (14,858 | ) | $ | (18,206 | ) | |||
Other deferred accounts | $ | (1,084 | ) | $ | 4,305 | $ | (7,788 | ) | $ | (2,399 | ) | ||||
Net cash provided by operating activities | $ | 308,020 | $ | 310,061 | $ | 249,717 | $ | 251,758 | |||||||
Additions to property, plant, and equipment | $ | (200,364 | )* | $ | (202,405 | ) | $ | (182,574 | ) | $ | (184,615 | ) | |||
Net cash used in investing activities | $ | (101,675 | ) | $ | (103,716 | ) | $ | (170,193 | ) | $ | (172,234 | ) | |||
Net decrease in cash and cash equivalents | $ | (97,552 | ) | $ | (97,552 | ) | $ | (117,454 | ) | $ | (117,454 | ) | |||
Cash and cash equivalents at beginning of period | $ | 191,128 | $ | 191,128 | $ | 184,912 | $ | 184,912 | |||||||
Cash and cash equivalents at end of period | $ | 93,576 | $ | 93,576 | $ | 67,458 | $ | 67,458 | |||||||
*This amount differs with the amount 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 2013 financial statements. |
CLECO CORPORATION | ||
CLECO POWER | 2013 FORM 10-K |
AT DEC. 31, | |||||||
(THOUSANDS) | 2013 | 2012 | |||||
Regulated utility plants | $ | 4,052,774 | $ | 3,871,940 | |||
Other | 273,748 | 268,254 | |||||
Total property, plant, and equipment | 4,326,522 | 4,140,194 | |||||
Accumulated depreciation | (1,351,223 | ) | (1,311,273 | ) | |||
Net property, plant, and equipment | $ | 2,975,299 | $ | 2,828,921 |
AT DEC. 31, | |||||||
(THOUSANDS) | 2013 | 2012 | |||||
Acadia Unit 1 | |||||||
Plant acquisition adjustment | $ | 95,578 | $ | 95,578 | |||
Less: accumulated amortization | 12,201 | 9,018 | |||||
Net plant acquisition adjustment | $ | 83,377 | $ | 86,560 | |||
Teche | |||||||
Plant acquisition adjustment | $ | 5,359 | $ | 5,359 | |||
Less: accumulated amortization | 4,234 | 3,979 | |||||
Net plant acquisition adjustment | $ | 1,125 | $ | 1,380 |
CLECO CORPORATION | ||
CLECO POWER | 2013 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) | 2013 | 2012 | |||||
Diversified Lands’ mitigation escrow | $ | 21 | $ | 97 | |||
Cleco Katrina/Rita’s storm recovery bonds | 8,986 | 8,781 | |||||
Cleco Power’s future storm restoration costs | 4,726 | 5,343 | |||||
Cleco Power’s building renovation escrow | 286 | — | |||||
Total restricted cash and cash equivalents | $ | 14,019 | $ | 14,221 |
CLECO CORPORATION | ||
CLECO POWER | 2013 FORM 10-K |
CLECO CORPORATION | ||
CLECO POWER | 2013 FORM 10-K |
CLECO CORPORATION | ||
CLECO POWER | 2013 FORM 10-K |
FOR THE YEAR ENDED DEC. 31, | ||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||||||||
(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 | $ | 160,685 | $ | 163,648 | $ | 195,848 | ||||||||||||||||||||||||||
Deduct: non-participating stock dividends (4.5% preferred stock) | — | — | 26 | |||||||||||||||||||||||||||||
Deduct: non-participating stock redemption costs (4.5% preferred stock) | — | — | 112 | |||||||||||||||||||||||||||||
Basic net income applicable to common stock | $ | 160,685 | 60,434,510 | $ | 2.66 | $ | 163,648 | 60,370,588 | $ | 2.71 | $ | 195,710 | 60,488,740 | $ | 3.24 | |||||||||||||||||
Effect of dilutive securities | ||||||||||||||||||||||||||||||||
Add: stock option grants | — | 4,154 | 20,647 | |||||||||||||||||||||||||||||
Add: restricted stock (LTICP) | 285,580 | 253,387 | 324,177 | |||||||||||||||||||||||||||||
Diluted net income applicable to common stock | $ | 160,685 | 60,720,090 | $ | 2.65 | $ | 163,648 | 60,628,129 | $ | 2.70 | $ | 195,710 | 60,833,564 | $ | 3.22 |
Note 3 — Regulatory Assets and Liabilities |
CLECO CORPORATION | ||
CLECO POWER | 2013 FORM 10-K |
AT DEC. 31, | REMAINING RECOVERY PERIOD | |||||||||
(THOUSANDS) | 2013 | 2012 | ||||||||
Total federal regulatory asset — income taxes | $ | 12,528 | $ | 24,222 | ||||||
Total state regulatory asset — income taxes | 89,050 | 57,480 | ||||||||
AFUDC | 130,488 | 132,267 | ||||||||
Total investment tax credit | (2,893 | ) | (3,524 | ) | ||||||
Total regulatory assets — deferred taxes, net | 229,173 | 210,445 | * | |||||||
Mining costs | 14,019 | 16,569 | 5.5 yrs. | |||||||
Interest costs | 5,943 | 6,304 | 26 yrs. | |||||||
Asset removal costs (1) | 936 | 867 | * | |||||||
Postretirement costs (1) | 93,333 | 156,458 | * | |||||||
Tree trimming costs | 4,840 | 5,656 | 5 yrs. | |||||||
Training costs | 7,175 | 7,330 | 46 yrs. | |||||||
Surcredits, net (2) | 16,738 | 6,211 | 9 yrs. | |||||||
Construction carrying costs | — | 4,697 | — | |||||||
Amended lignite mining agreement contingency (1) | 3,781 | 3,781 | * | |||||||
Power purchase agreement capacity costs | 9,749 | 6,217 | 1.5 yrs. | |||||||
AMI deferred revenue requirement | 4,682 | 1,483 | 14 yrs. | |||||||
Production O&M expenses | 8,459 | — | * | |||||||
AFUDC equity gross-up (2) | 73,306 | 74,158 | * | |||||||
Rate case costs | 45 | 581 | — | |||||||
Acadia Unit 1 acquisition costs | 2,760 | 2,865 | 26 yrs. | |||||||
IRP/RFP costs | — | 39 | — | |||||||
AMI pilot costs | — | 22 | — | |||||||
Financing costs | 9,772 | 7,282 | * | |||||||
Biomass costs | 114 | 145 | 4 yrs. | |||||||
Total regulatory assets - other | 255,652 | 300,665 | ||||||||
Construction carrying costs | — | (8,255 | ) | — | ||||||
Fuel and purchased power | (3,869 | ) | 7,833 | * | ||||||
Total regulatory assets, net | $ | 480,956 | $ | 510,688 | ||||||
(1)Represents regulatory assets where cash has not yet been expended; in which case, the assets are offset by liabilities that also do not incur a carrying cost. (2)Represents regulatory assets for past expenditures that were not earning a return on investment at December 31, 2013. * For information related to the remaining recovery periods, refer to the disclosures below for each specific regulatory asset. |
CLECO CORPORATION | ||
CLECO POWER | 2013 FORM 10-K |
CLECO CORPORATION | ||
CLECO POWER | 2013 FORM 10-K |
Note 4 — Jointly Owned Generation Units |
CLECO CORPORATION | ||
CLECO POWER | 2013 FORM 10-K |
AT DEC. 31, 2013 | |||||||||||
(DOLLAR AMOUNTS IN THOUSANDS) | RODEMACHER UNIT #2 | DOLET HILLS | TOTAL | ||||||||
Utility plant in service | $ | 95,746 | $ | 312,113 | $ | 407,859 | |||||
Accumulated depreciation | $ | 71,072 | $ | 205,768 | $ | 276,840 | |||||
Construction work in progress | $ | 16,585 | $ | 44,738 | $ | 61,323 | |||||
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, | |||||||||||||||
2013 | 2012 | ||||||||||||||
(THOUSANDS) | CARRYING VALUE | ESTIMATED FAIR VALUE | CARRYING VALUE | ESTIMATED FAIR VALUE | |||||||||||
Financial instruments not marked-to-market | |||||||||||||||
Cash equivalents | $ | 22,204 | $ | 22,204 | $ | 25,911 | $ | 25,911 | |||||||
Restricted cash equivalents | $ | 14,019 | $ | 14,019 | $ | 14,221 | $ | 14,221 | |||||||
Long-term debt, excluding debt issuance costs | $ | 1,331,230 | $ | 1,420,048 | $ | 1,345,198 | $ | 1,579,674 |
Cleco Power | |||||||||||||||
AT DEC. 31, | |||||||||||||||
2013 | 2012 | ||||||||||||||
(THOUSANDS) | CARRYING VALUE | ESTIMATED FAIR VALUE | CARRYING VALUE | ESTIMATED FAIR VALUE | |||||||||||
Financial instruments not marked-to-market | |||||||||||||||
Cash equivalents | $ | 14,900 | $ | 14,900 | $ | 18,600 | $ | 18,600 | |||||||
Restricted cash equivalents | $ | 13,998 | $ | 13,998 | $ | 14,124 | $ | 14,124 | |||||||
Long-term debt, excluding debt issuance costs | $ | 1,326,230 | $ | 1,415,048 | $ | 1,320,198 | $ | 1,554,674 |
Cleco | |||||||||||||||||||||||||||||||
CLECO CONSOLIDATED FAIR VALUE MEASUREMENTS AT REPORTING DATE USING: | |||||||||||||||||||||||||||||||
(THOUSANDS) | AT DEC. 31, 2013 | QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) | SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) | SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | 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 | |||||||||||||||||||||||||||||||
Institutional money market funds | $ | 36,100 | $ | — | $ | 36,100 | $ | — | $ | 38,840 | $ | — | $ | 38,840 | $ | — | |||||||||||||||
Commercial paper | 1,483 | — | 1,483 | — | 649 | — | 649 | — | |||||||||||||||||||||||
Municipal bonds | 9,831 | — | 9,831 | — | 10,203 | — | 10,203 | — | |||||||||||||||||||||||
Corporate bonds | 515 | — | 515 | — | — | — | — | — | |||||||||||||||||||||||
Federal agency mortgage-backed securities | 1,000 | — | 1,000 | — | — | — | — | — | |||||||||||||||||||||||
FTRs | 9,020 | — | — | 9,020 | — | — | — | — | |||||||||||||||||||||||
Total assets | $ | 57,949 | $ | — | $ | 48,929 | $ | 9,020 | $ | 49,692 | $ | — | $ | 49,692 | $ | — | |||||||||||||||
Liability Description | |||||||||||||||||||||||||||||||
Interest rate derivative | $ | — | $ | — | $ | — | $ | — | $ | 2,627 | $ | — | $ | 2,627 | $ | — | |||||||||||||||
Long-term debt | 1,420,048 | — | 1,420,048 | — | 1,579,674 | — | 1,579,674 | — | |||||||||||||||||||||||
FTRs | 382 | — | — | 382 | — | — | — | — | |||||||||||||||||||||||
Total liabilities | $ | 1,420,430 | $ | — | $ | 1,420,048 | $ | 382 | $ | 1,582,301 | $ | — | $ | 1,582,301 | $ | — |
CLECO CORPORATION | ||
CLECO POWER | 2013 FORM 10-K |
Cleco Power | |||||||||||||||||||||||||||||||
CLECO POWER FAIR VALUE MEASUREMENTS AT REPORTING DATE USING: | |||||||||||||||||||||||||||||||
(THOUSANDS) | AT DEC. 31, 2013 | QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) | SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) | SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | 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 | |||||||||||||||||||||||||||||||
Institutional money market funds | $ | 28,775 | $ | — | $ | 28,775 | $ | — | $ | 32,643 | $ | — | $ | 32,643 | $ | — | |||||||||||||||
Commercial paper | 1,483 | — | 1,483 | — | 649 | — | 649 | — | |||||||||||||||||||||||
Municipal bonds | 9,831 | — | 9,831 | — | 10,203 | — | 10,203 | — | |||||||||||||||||||||||
Corporate bonds | 515 | — | 515 | — | — | — | — | — | |||||||||||||||||||||||
Federal agency mortgage-backed securities | 1,000 | — | 1,000 | — | — | — | — | — | |||||||||||||||||||||||
FTRs | 9,020 | — | — | 9,020 | — | — | — | — | |||||||||||||||||||||||
Total assets | $ | 50,624 | $ | — | $ | 41,604 | $ | 9,020 | $ | 43,495 | $ | — | $ | 43,495 | $ | — | |||||||||||||||
Liability Description | |||||||||||||||||||||||||||||||
Interest rate derivative | $ | — | $ | — | $ | — | $ | — | $ | 2,627 | $ | — | $ | 2,627 | $ | — | |||||||||||||||
Long-term debt | 1,415,048 | — | 1,415,048 | — | 1,554,674 | — | 1,554,674 | — | |||||||||||||||||||||||
FTRs | 382 | — | — | 382 | — | — | — | — | |||||||||||||||||||||||
Total liabilities | $ | 1,415,430 | $ | — | $ | 1,415,048 | $ | 382 | $ | 1,557,301 | $ | — | $ | 1,557,301 | $ | — |
(THOUSANDS, EXCEPT DOLLAR PER MWh) | FAIR VALUE | VALUATION TECHNIQUE | SIGNIFICANT UNOBSERVABLE INPUTS | FORWARD PRICE RANGE | |||||||||||||||
Assets | Liabilities | Low | High | ||||||||||||||||
FTRs | $ | 9,020 | $ | 382 | Discounted cash flow | Estimated auction price | $ | (4.88 | ) | $ | 33.75 |
CLECO CORPORATION | ||
CLECO POWER | 2013 FORM 10-K |
AT DEC. 31, 2013 | AT DEC. 31, 2012 | ||||||||||||||||||||||||||||||
(THOUSANDS) | AMORTIZED COST | TOTAL UNREALIZED GAINS (1) | TOTAL UNREALIZED LOSSES (1) | FAIR VALUE | AMORTIZED COST | TOTAL UNREALIZED GAINS (1) | TOTAL UNREALIZED LOSSES (1) | FAIR VALUE | |||||||||||||||||||||||
Municipal bonds | $ | 9,838 | $ | 8 | $ | 15 | $ | 9,831 | $ | 10,228 | $ | 3 | $ | 28 | $ | 10,203 | |||||||||||||||
Corporate bonds | 513 | 2 | — | 515 | — | — | — | — | |||||||||||||||||||||||
Federal agency mortgage-backed securities | 1,000 | — | — | 1,000 | — | — | — | — | |||||||||||||||||||||||
Commercial paper | 1,483 | — | — | 1,483 | 649 | — | — | 649 | |||||||||||||||||||||||
Total available-for-sale securities | $ | 12,834 | $ | 10 | $ | 15 | $ | 12,829 | $ | 10,877 | $ | 3 | $ | 28 | $ | 10,852 |
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 | $ | 9 | $ | 3,156 | $ | 6 | $ | 2,622 |
CLECO CORPORATION | ||
CLECO POWER | 2013 FORM 10-K |
(THOUSANDS) | AT DEC. 31, 2013 | ||
One year or less | $ | 5,702 | |
Over one year through five years | 7,127 | ||
Total fair value | $ | 12,829 |
DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS | |||||||||
(THOUSANDS) | BALANCE SHEET LINE ITEM | AT DEC. 31, 2013 | AT DEC. 31, 2012 | ||||||
Commodity contracts | |||||||||
FTRs: | |||||||||
Current | Energy risk management assets | $ | 9,020 | $ | — | ||||
Current | Energy risk management liabilities | 382 | — | ||||||
Total | $ | 8,638 | $ | — |
FOR THE YEAR ENDED DEC. 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(THOUSANDS) | DERIVATIVES LINE ITEM | AMOUNT OF GAIN/(LOSS) RECOGNIZED IN INCOME ON DERIVATIVES | AMOUNT OF LOSS RECOGNIZED IN INCOME ON DERIVATIVES | AMOUNT OF LOSS RECOGNIZED IN INCOME ON DERIVATIVES | |||||||||
Commodity contracts | |||||||||||||
Fuel cost hedges(1) | Fuel used for electric generation | $ | — | $ | (8,277 | ) | $ | (18,119 | ) | ||||
FTRs(2) | Electric operations | 243 | — | — | |||||||||
FTRs(2) | Power purchased for utility customers | (19 | ) | — | — | ||||||||
Total | $ | 224 | $ | (8,277 | ) | $ | (18,119 | ) |
CLECO CORPORATION | ||
CLECO POWER | 2013 FORM 10-K |
FOR THE YEAR ENDED DEC. 31, | |||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||
(THOUSANDS) | AMOUNT OF GAIN RECOGNIZED IN OCI | AMOUNT OF NET LOSS 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) | AMOUNT OF LOSS RECOGNIZED IN OCI | AMOUNT OF NET GAIN RECLASSIFIED FROM ACCUMULATED OCI INTO INCOME (EFFECTIVE PORTION) | |||||||||||||||||
Interest rate derivatives | $ | 2,202 | $ | (251 | )* | $ | 704 | $ | (60 | )* | $ | (25,661 | ) | $ | 334 | * |
Note 6 — Debt |
AT DEC. 31, | |||||||
(THOUSANDS) | 2013 | 2012 | |||||
Bonds | |||||||
Cleco Power’s senior notes, 5.375%, due 2013 | $ | — | $ | 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 | 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 Series B GO Zone bonds, 4.25%, due 2038 | 50,000 | — | |||||
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 | |||||
Cleco Power’s Series A GO Zone bonds, due 2038, maturity tender on May 3, 2015 | 50,000 | — | |||||
Cleco Katrina/Rita’s storm recovery bonds, 4.41%, due 2020 | 48,630 | 62,598 | |||||
Cleco Katrina/Rita’s storm recovery bonds, 5.61%, due 2023 | 67,600 | 67,600 | |||||
Total bonds | 1,271,230 | 1,320,198 | |||||
Other long-term debt | |||||||
Cleco Corporation’s credit facility draws | 5,000 | 25,000 | |||||
Cleco Power’s bank term loan, due 2015 | 35,000 | — | |||||
Cleco Power’s credit facility draws | 20,000 | — | |||||
Barge lease obligations, ending 2017 | 9,179 | 11,350 | |||||
Gross amount of long-term debt | 1,340,409 | 1,356,548 | |||||
Less: long-term debt due within one year | 14,876 | 88,969 | |||||
Less: lease obligations classified as long-term debt due within one year | 2,305 | 2,171 | |||||
Unamortized discount | (7,728 | ) | (8,150 | ) | |||
Total long-term debt, net | $ | 1,315,500 | $ | 1,257,258 |
(THOUSANDS) | ||||
Amounts payable under long-term debt agreements | ||||
2014 | $ | 14,876 | ||
2015 | $ | 100,825 | ||
2016 | $ | 16,814 | ||
2017 | $ | 17,896 | ||
2018 | $ | 294,194 | ||
Thereafter | $ | 886,625 |
(THOUSANDS) | ||||
Amounts payable under capital lease agreements | ||||
2014 | $ | 2,305 | ||
2015 | $ | 2,448 | ||
2016 | $ | 2,607 | ||
2017 | $ | 1,819 |
CLECO CORPORATION | ||
CLECO POWER | 2013 FORM 10-K |
AT DEC. 31, | |||||||
(THOUSANDS) | 2013 | 2012 | |||||
Bonds | |||||||
Senior notes, 5.375%, due 2013 | $ | — | $ | 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 | 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 | |||||
Series B GO Zone bonds, 4.25%, due 2038 | 50,000 | — | |||||
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 | |||||
Series A GO Zone bonds, due 2038, maturity tender on May 3, 2015 | 50,000 | — | |||||
Cleco Katrina/Rita’s storm recovery bonds, 4.41%, due 2020 | 48,630 | 62,598 | |||||
Cleco Katrina/Rita’s storm recovery bonds, 5.61%, due 2023 | 67,600 | 67,600 | |||||
Total bonds | 1,271,230 | 1,320,198 | |||||
Other long-term debt | |||||||
Bank term loan, due 2015 | 35,000 | — | |||||
Credit facility draws | 20,000 | — | |||||
Barge lease obligations, ending 2017 | 9,179 | 11,350 | |||||
Gross amount of long-term debt | 1,335,409 | 1,331,548 | |||||
Less: long-term debt due within one year | 14,876 | 88,969 | |||||
Less: lease obligations classified as long-term debt due within one year | 2,305 | 2,171 | |||||
Unamortized discount | (7,728 | ) | (8,150 | ) | |||
Total long-term debt, net | $ | 1,310,500 | $ | 1,232,258 |
(THOUSANDS) | ||||
Amounts payable under long-term debt agreements | ||||
2014 | $ | 14,876 | ||
2015 | $ | 100,825 | ||
2016 | $ | 16,814 | ||
2017 | $ | 17,896 | ||
2018 | $ | 289,194 | ||
Thereafter | $ | 886,625 |
(THOUSANDS) | ||||
Amounts payable under capital lease agreements | ||||
2014 | $ | 2,305 | ||
2015 | $ | 2,448 | ||
2016 | $ | 2,607 | ||
2017 | $ | 1,819 |
CLECO CORPORATION | ||
CLECO POWER | 2013 FORM 10-K |
Note 7 — Common and Preferred Stock |
CLECO CORPORATION | ||
CLECO POWER | 2013 FORM 10-K |
SHARES | WEIGHTED-AVERAGE GRANT-DATE FAIR VALUE | |||||
Non-vested at January 1, 2013 | 349,775 | $ | 35.12 | |||
Granted | 139,048 | $ | 42.60 | |||
Vested | (147,825 | ) | $ | 34.90 | ||
Non-vested at December 31, 2013 | 340,998 | $ | 38.26 |
CLECO CORPORATION | ||
CLECO POWER | 2013 FORM 10-K |
AT DEC. 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Expected term (in years) (1) | 3.0 | 3.0 | 3.0 | ||||||||
Volatility of Cleco stock (2) | 18.1 | % | 21.5 | % | 28.5 | % | |||||
Correlation between Cleco stock volatility and peer group | 69.7 | % | 66.0 | % | 63.2 | % | |||||
Expected dividend yield | 3.2 | % | 3.3 | % | 3.3 | % | |||||
Weighted average fair value (Monte Carlo model) | $ | 42.66 | $ | 41.56 | $ | 34.88 |
CLECO | CLECO POWER | ||||||||||||||||||||||
FOR THE YEAR ENDED DEC. 31, | FOR THE YEAR ENDED DEC. 31, | ||||||||||||||||||||||
(THOUSANDS) | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||||
Equity classification | |||||||||||||||||||||||
Non-vested stock (1) | $ | 6,147 | $ | 4,429 | $ | 3,391 | $ | 1,754 | $ | 1,074 | $ | 678 | |||||||||||
Stock options (1) | — | 11 | 103 | — | — | — | |||||||||||||||||
Total equity classification | $ | 6,147 | $ | 4,440 | $ | 3,494 | $ | 1,754 | $ | 1,074 | $ | 678 | |||||||||||
Liability classification | |||||||||||||||||||||||
Common stock equivalent units | $ | 1 | $ | 1,506 | $ | 3,509 | $ | — | $ | 609 | $ | 1,118 | |||||||||||
Total pre-tax compensation expense | $ | 6,148 | $ | 5,946 | $ | 7,003 | $ | 1,754 | $ | 1,683 | $ | 1,796 | |||||||||||
Tax benefit (excluding income tax gross-up) | $ | 2,366 | $ | 2,288 | $ | 2,695 | $ | 675 | $ | 648 | $ | 691 |
Note 8 — Pension Plan and Employee Benefits |
CLECO CORPORATION | ||
CLECO POWER | 2013 FORM 10-K |
PENSION BENEFITS | OTHER BENEFITS | ||||||||||||||
(THOUSANDS) | 2013 | 2012 | 2013 | 2012 | |||||||||||
Change in benefit obligation | |||||||||||||||
Benefit obligation at beginning of year | $ | 431,569 | $ | 361,986 | $ | 45,569 | $ | 42,680 | |||||||
Service cost | 9,889 | 8,312 | 1,656 | 1,461 | |||||||||||
Interest cost | 17,940 | 18,254 | 1,568 | 2,239 | |||||||||||
Plan participants’ contributions | — | — | 1,241 | 1,308 | |||||||||||
Actuarial (gain) loss | (50,133 | ) | 58,109 | (1,768 | ) | 2,462 | |||||||||
Expenses paid | (1,916 | ) | (1,511 | ) | — | — | |||||||||
Medicare D | — | — | 194 | — | |||||||||||
Other adjustments | — | — | 601 | — | |||||||||||
Benefits paid | (14,861 | ) | (13,581 | ) | (5,221 | ) | (4,581 | ) | |||||||
Benefit obligation at end of year | 392,488 | 431,569 | 43,840 | 45,569 | |||||||||||
Change in plan assets | |||||||||||||||
Fair value of plan assets at beginning of year | 344,041 | 312,395 | — | — | |||||||||||
Actual return on plan assets | 23,291 | 46,738 | — | — | |||||||||||
Employer contributions | 34,000 | — | — | — | |||||||||||
Expenses paid | (1,916 | ) | (1,511 | ) | — | — | |||||||||
Benefits paid | (14,861 | ) | (13,581 | ) | — | — | |||||||||
Fair value of plan assets at end of year | 384,555 | 344,041 | — | — | |||||||||||
Unfunded status | $ | (7,933 | ) | $ | (87,528 | ) | $ | (43,840 | ) | $ | (45,569 | ) |
PENSION BENEFITS | |||||||
(THOUSANDS) | 2013 | 2012 | |||||
Accumulated benefit obligation | $ | 358,128 | $ | 387,776 |
PENSION BENEFITS | OTHER BENEFITS | ||||||||||||||
(THOUSANDS) | 2013 | 2012 | 2013 | 2012 | |||||||||||
Net actuarial (gain) loss occurring during year | $ | (49,978 | ) | $ | 32,177 | $ | (1,768 | ) | $ | 2,461 | |||||
Prior service cost occurring during year | $ | — | $ | — | $ | 601 | $ | — | |||||||
Net actuarial loss amortized during year | $ | 13,218 | $ | 8,346 | $ | 1,131 | $ | 1,479 | |||||||
Transition obligation amortized during year | $ | — | $ | — | $ | 20 | $ | 20 | |||||||
Prior service cost amortized during year | $ | (71 | ) | $ | (71 | ) | $ | — | $ | — |
CLECO CORPORATION | ||
CLECO POWER | 2013 FORM 10-K |
PENSION BENEFITS | OTHER BENEFITS | ||||||||||||||||||||||
(THOUSANDS) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||
Net actuarial loss | $ | 6,404 | $ | 93,821 | $ | 157,017 | $ | 854 | $ | 10,703 | $ | 13,602 | |||||||||||
Transition obligation | $ | — | $ | — | $ | — | $ | 16 | $ | 16 | $ | 35 | |||||||||||
Prior service (credit) cost | $ | (71 | ) | $ | (488 | ) | $ | (559 | ) | $ | 119 | $ | 601 | $ | — |
PENSION BENEFITS | OTHER BENEFITS | ||||||||||||||||||||||
(THOUSANDS) | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||||
Components of periodic benefit costs | |||||||||||||||||||||||
Service cost | $ | 9,889 | $ | 8,312 | $ | 8,390 | $ | 1,656 | $ | 1,461 | $ | 1,532 | |||||||||||
Interest cost | 17,940 | 18,254 | 17,629 | 1,568 | 2,239 | 1,818 | |||||||||||||||||
Expected return on plan assets | (23,446 | ) | (20,806 | ) | (24,646 | ) | — | — | — | ||||||||||||||
Amortizations: | |||||||||||||||||||||||
Transition obligation | — | — | — | 20 | 20 | 20 | |||||||||||||||||
Prior period service credit | (71 | ) | (71 | ) | (71 | ) | — | — | (206 | ) | |||||||||||||
Net loss | 13,218 | 8,346 | 5,556 | 1,131 | 1,479 | 1,010 | |||||||||||||||||
Net periodic benefit cost | $ | 17,530 | $ | 14,035 | $ | 6,858 | $ | 4,375 | $ | 5,199 | $ | 4,174 |
PENSION BENEFITS | OTHER BENEFITS | ||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||
Weighted-average assumptions used to determine the benefit obligation as of December 31: | |||||||||||
Discount rate | 5.14 | % | 4.19 | % | 4.46 | % | 3.54 | % | |||
Rate of compensation increase | 3.262 | % | 3.334 | % | N/A | N/A |
PENSION BENEFITS | OTHER BENEFITS | ||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||
Weighted-average assumptions used to determine the net benefit cost for the year ended December 31: | |||||||||||||
Discount rate | 4.19 | % | 5.08 | % | 5.43 | % | 3.54 | % | 4.51 | % | 4.61 | % | |
Expected return on plan assets | 6.78 | % | 6.61 | % | 7.80 | % | N/A | N/A | N/A | ||||
Rate of compensation increase | 3.262 | % | 3.373 | % | 4.119 | % | N/A | N/A | N/A |
CLECO CORPORATION | ||
CLECO POWER | 2013 FORM 10-K |
• | Level 1 – unadjusted quoted prices in active, liquid markets for the identical asset or liability, |
• | 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, 2013 | 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 | $ | 5,942 | $ | — | $ | 5,942 | $ | — | ||||||||
Common stock | 17,918 | 17,918 | — | — | ||||||||||||
Preferred stock | 939 | 939 | — | — | ||||||||||||
Obligations of U.S. Government and U.S. Government Agencies | 41,413 | — | 41,413 | — | ||||||||||||
Mutual funds | ||||||||||||||||
Domestic | 54,609 | 54,609 | — | — | ||||||||||||
International | 26,254 | 26,254 | — | — | ||||||||||||
Common/collective trust fund | 42,078 | — | 42,078 | — | ||||||||||||
Real estate funds | 17,928 | — | — | 17,928 | ||||||||||||
Hedge fund of funds | 1,740 | — | — | 1,740 | ||||||||||||
Corporate debt | 172,950 | — | 172,950 | — | ||||||||||||
Total | $ | 381,771 | $ | 99,720 | $ | 262,383 | $ | 19,668 | ||||||||
Interest accrual | 2,784 | |||||||||||||||
Total net assets | $ | 384,555 |
CLECO CORPORATION | ||
CLECO POWER | 2013 FORM 10-K |
(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 | ||||||||||||||||
Domestic | 54,198 | 54,198 | — | — | ||||||||||||
International | 25,042 | 25,042 | — | — | ||||||||||||
Common/collective trust fund | 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 | $ | 95,938 | $ | 226,026 | $ | 19,928 | ||||||||
Interest accrual | 2,149 | |||||||||||||||
Total net assets | $ | 344,041 |
(THOUSANDS) | REAL ESTATE FUNDS | HEDGE FUND OF FUNDS | TOTAL | ||||||||
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 | |||||
Realized gain | — | 12 | 12 | ||||||||
Unrealized gain | 128 | 71 | 199 | ||||||||
Purchases | 459 | — | 459 | ||||||||
Sales | — | (930 | ) | (930 | ) | ||||||
December 31, 2013 | $ | 17,928 | $ | 1,740 | $ | 19,668 |
• | Exceed the assumed rate of return on plan assets, and |
• | Exceed the annualized total return of a customized index consisting of a mixture of S&P 500 Index; Russell 2500 Index, MSCI EAFE Index; Morgan Stanley Capital International Emerging Markets Index, Barclays Capital Long Credit Index, Barclays Capital Long Government/Credit Index, National Council of Real Estate Investment Fiduciaries Index, and U.S. Treasury Bills plus 5%. |
• | 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 S&P 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. |
CLECO CORPORATION | ||
CLECO POWER | 2013 FORM 10-K |
• | 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. |
• | At least 85% of the debt securities should be investment grade securities (BBB- by S&P 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. |
• | The average weighted duration of portfolio security holdings, including derivative exposure, is expected to range within +/- 20% of the Barclays Long Gov/Credit Index duration. |
• | 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. |
• | Duration within +/- 1 year of benchmark. |
• | 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 | 17 | % | ||||||
International equity | 16 | % | ||||||
Real estate | 7 | % | ||||||
Hedge fund of funds | 2 | % | ||||||
Total return-seeking | 37 | % | 42 | % | 47 | % | ||
Liability hedging | ||||||||
Fixed income- long government/credit | 18 | % | ||||||
Fixed income - long credit | 40 | % | ||||||
Total liability hedging | 53 | % | 58 | % | 62 | % | ||
*Minimums and maximums within subcategories not intended to equal total for category. |
CLECO CORPORATION | ||
CLECO POWER | 2013 FORM 10-K |
AT DECEMBER 31, | |||||||
(THOUSANDS) | 2013 | 2012 | |||||
Components of other benefit costs: | |||||||
(Increase) in interest cost | $ | — | $ | (8 | ) | ||
Reduction in net loss amortization | — | 199 | |||||
Reduction in net other benefit cost | $ | — | $ | 191 |
ONE-PERCENTAGE POINT | |||||||
(THOUSANDS) | INCREASE | DECREASE | |||||
Effect on total of service and interest cost components | $ | 31 | $ | (11 | ) | ||
Effect on postretirement benefit obligation | $ | 291 | $ | (324 | ) |
(THOUSANDS) | PENSION BENEFITS | OTHER BENEFITS, GROSS | |||||
2014 | $ | 16,251 | $ | 3,557 | |||
2015 | $ | 17,037 | $ | 3,645 | |||
2016 | $ | 17,918 | $ | 3,789 | |||
2017 | $ | 19,025 | $ | 3,888 | |||
2018 | $ | 20,087 | $ | 3,985 | |||
Next five years | $ | 119,982 | $ | 19,813 |
SERP BENEFITS | |||||||
(THOUSANDS) | 2013 | 2012 | |||||
Change in benefit obligation | |||||||
Benefit obligation at beginning of year | $ | 59,422 | $ | 46,264 | |||
Service cost | 2,055 | 1,487 | |||||
Interest cost | 2,578 | 2,526 | |||||
Actuarial (gain) loss | (3,477 | ) | 11,651 | ||||
Benefits paid | (2,713 | ) | (2,506 | ) | |||
Benefit obligation at end of year | $ | 57,865 | $ | 59,422 |
SERP BENEFITS | |||||||
(THOUSANDS) | 2013 | 2012 | |||||
Accumulated benefit obligation | $ | 53,046 | $ | 53,350 |
SERP BENEFITS | |||||||
(THOUSANDS) | 2013 | 2012 | |||||
Net actuarial (gain) loss occurring during year | $ | (3,477 | ) | $ | 11,651 | ||
Net actuarial loss amortized during year | $ | 2,305 | $ | 1,764 | |||
Prior service cost amortized during year | $ | 54 | $ | 54 |
SERP BENEFITS | |||||||||||
(THOUSANDS) | 2014 | 2013 | 2012 | ||||||||
Net actuarial loss | $ | 1,396 | $ | 19,663 | $ | 25,444 | |||||
Prior service cost | $ | 54 | $ | 227 | $ | 280 |
CLECO CORPORATION | ||
CLECO POWER | 2013 FORM 10-K |
SERP BENEFITS | |||||||||||
(THOUSANDS) | 2013 | 2012 | 2011 | ||||||||
Components of periodic benefit costs: | |||||||||||
Service cost | $ | 2,055 | $ | 1,487 | $ | 1,566 | |||||
Interest cost | 2,578 | 2,526 | 2,105 | ||||||||
Amortizations: | |||||||||||
Prior period service cost | 54 | 54 | 54 | ||||||||
Net loss | 2,305 | 1,764 | 940 | ||||||||
Net periodic benefit cost | $ | 6,992 | $ | 5,831 | $ | 4,665 |
SERP | |||||
2013 | 2012 | ||||
Weighted-average assumptions used to determine the benefit obligation as of December 31: | |||||
Discount rate | 5.09 | % | 4.17 | % | |
Rate of compensation increase | 5.00 | % | 5.00 | % |
SERP | ||||||||
2013 | 2012 | 2011 | ||||||
Weighted-average assumptions used to determine the net benefit cost for the year ended December 31: | ||||||||
Discount rate | 4.17 | % | 4.99 | % | 5.26 | % | ||
Rate of compensation increase | 5.00 | % | 5.00 | % | 5.00 | % |
(THOUSANDS) | 2014 | 2015 | 2016 | 2017 | 2018 | NEXT FIVE YEARS | |||||||||||||||||
SERP | $ | 2,743 | $ | 3,011 | $ | 3,230 | $ | 3,277 | $ | 3,460 | $ | 20,169 |
FOR THE YEAR ENDED DEC. 31, | |||||||||||
(THOUSANDS) | 2013 | 2012 | 2011 | ||||||||
401(k) Plan expense | $ | 4,422 | $ | 4,375 | $ | 3,917 |
Note 9 — Income Taxes |
FOR THE YEAR ENDED DEC. 31, | |||||||||||
(THOUSANDS, EXCEPT FOR %) | 2013 | 2012 | 2011 | ||||||||
Income before tax | $ | 240,260 | $ | 228,975 | $ | 298,745 | |||||
Statutory rate | 35.0 | % | 35.0 | % | 35.0 | % | |||||
Tax at federal statutory rate | $ | 84,091 | $ | 80,141 | $ | 104,561 | |||||
Increase (decrease): | |||||||||||
Plant differences, including AFUDC flowthrough | 427 | (1,222 | ) | (1,758 | ) | ||||||
Amortization of investment tax credits | (1,108 | ) | (1,180 | ) | (1,238 | ) | |||||
State income taxes | 1,094 | (218 | ) | 2,155 | |||||||
Tax settlement | — | — | 10,782 | ||||||||
New markets tax credits | (4,806 | ) | (9,261 | ) | (4,697 | ) | |||||
Other | (123 | ) | (2,933 | ) | (6,908 | ) | |||||
Total taxes | $ | 79,575 | $ | 65,327 | $ | 102,897 | |||||
Effective Rate | 33.1 | % | 28.5 | % | 34.4 | % |
FOR THE YEAR ENDED DEC. 31, | |||||||||||
(THOUSANDS) | 2013 | 2012 | 2011 | ||||||||
Current federal income tax expense | $ | 15,672 | $ | 47,768 | $ | 77,659 | |||||
Deferred federal income tax expense | 65,237 | 21,724 | 26,577 | ||||||||
Amortization of accumulated deferred investment tax credits | (1,108 | ) | (1,180 | ) | (1,238 | ) | |||||
Total federal income tax expense | $ | 79,801 | $ | 68,312 | $ | 102,998 | |||||
Current state income tax (benefit) expense | (978 | ) | (1,192 | ) | 2,857 | ||||||
Deferred state income tax expense (benefit) | 752 | (1,793 | ) | (2,958 | ) | ||||||
Total state income tax benefit | $ | (226 | ) | $ | (2,985 | ) | $ | (101 | ) | ||
Total federal and state income tax expense | $ | 79,575 | $ | 65,327 | $ | 102,897 | |||||
Items charged or credited directly to shareholders’ equity | |||||||||||
Federal deferred | 3,497 | (2,386 | ) | (8,908 | ) | ||||||
State deferred | 565 | (385 | ) | (1,439 | ) | ||||||
Total tax expense (benefit) from items charged directly to shareholders’ equity | $ | 4,062 | $ | (2,771 | ) | $ | (10,347 | ) | |||
Total federal and state income tax expense | $ | 83,637 | $ | 62,556 | $ | 92,550 |
CLECO CORPORATION | ||
CLECO POWER | 2013 FORM 10-K |
AT DEC. 31, | |||||||
(THOUSANDS) | 2013 | 2012 | |||||
Depreciation and property basis differences | $ | (878,298 | ) | $ | (822,831 | ) | |
Net operating loss carryforward | 95,360 | 139,036 | |||||
New markets tax credits | 99,782 | 82,584 | |||||
Fuel costs | (7,229 | ) | (9,400 | ) | |||
Deferred carrying charges | — | 1,369 | |||||
SERP – other comprehensive income | 15,330 | 19,392 | |||||
Regulated operations regulatory liability, net | (84,702 | ) | (75,046 | ) | |||
Postretirement benefits other than pension | (5,075 | ) | (2,275 | ) | |||
Other | (10,139 | ) | (16,468 | ) | |||
Accumulated deferred federal and state income taxes | $ | (774,971 | ) | $ | (683,639 | ) |
FOR THE YEAR ENDED DEC. 31, | |||||||||||
(THOUSANDS, EXCEPT FOR %) | 2013 | 2012 | 2011 | ||||||||
Income before tax | $ | 229,791 | $ | 214,981 | $ | 212,244 | |||||
Statutory rate | 35.0 | % | 35.0 | % | 35.0 | % | |||||
Tax at federal statutory rate | $ | 80,427 | $ | 75,243 | $ | 74,285 | |||||
Increase (decrease): | |||||||||||
Plant differences, including AFUDC flowthrough | 427 | (1,222 | ) | (1,758 | ) | ||||||
Amortization of investment tax credits | (1,108 | ) | (1,180 | ) | (1,238 | ) | |||||
State income taxes | 730 | (705 | ) | (853 | ) | ||||||
Other | (1,095 | ) | (4,003 | ) | (1,027 | ) | |||||
Total taxes | $ | 79,381 | $ | 68,133 | $ | 69,409 | |||||
Effective Rate | 34.5 | % | 31.7 | % | 32.7 | % |
FOR THE YEAR ENDED DEC. 31, | |||||||||||
(THOUSANDS) | 2013 | 2012 | 2011 | ||||||||
Current federal income tax (benefit) expense | $ | (33 | ) | $ | 13,008 | $ | 23,347 | ||||
Deferred federal income tax expense | 81,188 | 59,008 | 47,763 | ||||||||
Amortization of accumulated deferred investment tax credits | (1,108 | ) | (1,180 | ) | (1,238 | ) | |||||
Total federal income tax expense | $ | 80,047 | $ | 70,836 | $ | 69,872 | |||||
Current state income tax (benefit) expense | (1,012 | ) | (1,060 | ) | 1,691 | ||||||
Deferred state income tax expense (benefit) | 346 | (1,643 | ) | (2,154 | ) | ||||||
Total state income tax benefit | $ | (666 | ) | $ | (2,703 | ) | $ | (463 | ) | ||
Total federal and state income taxes | $ | 79,381 | $ | 68,133 | $ | 69,409 | |||||
Items charged or credited directly to members’ equity | |||||||||||
Federal deferred | 2,824 | 20 | (8,580 | ) | |||||||
State deferred | 456 | 3 | (1,386 | ) | |||||||
Total tax expense (benefit) from items charged directly to member’s equity | $ | 3,280 | $ | 23 | $ | (9,966 | ) | ||||
Total federal and state income tax expense | $ | 82,661 | $ | 68,156 | $ | 59,443 |
AT DEC. 31, | |||||||
(THOUSANDS) | 2013 | 2012 | |||||
Depreciation and property basis differences | $ | (836,771 | ) | $ | (804,133 | ) | |
Net operating loss carryforward | 81,102 | 127,742 | |||||
Fuel costs | (7,229 | ) | (9,389 | ) | |||
Deferred carrying charges | — | 1,369 | |||||
SERP - other comprehensive income | 8,681 | 11,961 | |||||
Regulated operations regulatory liability, net | (84,702 | ) | (75,046 | ) | |||
Postretirement benefits other than pension | (19,056 | ) | (13,442 | ) | |||
Other | (6,603 | ) | 2,455 | ||||
Accumulated deferred federal and state income taxes | $ | (864,578 | ) | $ | (758,483 | ) |
CLECO CORPORATION | ||
CLECO POWER | 2013 FORM 10-K |
AT DEC. 31, | |||||||
(THOUSANDS) | 2013 | 2012 | |||||
Interest payable | |||||||
Cleco | $ | 88 | $ | 1,420 | |||
Cleco Power | $ | 11 | $ | 3,358 |
FOR THE YEAR ENDED DEC. 31, | |||||||||||
(THOUSANDS) | 2013 | 2012 | 2011 | ||||||||
Interest charges | |||||||||||
Cleco | $ | 154 | $ | (9,223 | ) | $ | (27,175 | ) | |||
Cleco Power | $ | 11 | $ | (11,648 | ) | $ | 2,116 |
Cleco | ||||
(THOUSANDS) | LIABILITY FOR UNRECOGNIZED TAX BENEFITS | |||
Balance at January 1, 2011 | $ | 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 | ||
Reduction for tax positions of current period | — | |||
Additions for tax positions of prior years | 2,193 | |||
Reduction for tax positions of prior years | (248 | ) | ||
Reduction for settlement with tax authority | — | |||
Reduction for lapse of statute of limitations | — | |||
Balance at December 31, 2013 | $ | 5,071 |
Cleco Power | ||||
(THOUSANDS) | LIABILITY FOR UNRECOGNIZED TAX BENEFITS | |||
Balance at January 1, 2011 | $ | 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 | ||
Reduction for tax positions of current period | — | |||
Additions for tax positions of prior years | — | |||
Reduction for tax positions of prior years | (248 | ) | ||
Reduction for settlement with tax authority | — | |||
Reduction for lapse of statute of limitations | — | |||
Balance at December 31, 2013 | $ | — |
CLECO CORPORATION | ||
CLECO POWER | 2013 FORM 10-K |
Note 10 — Disclosures about Segments |
SEGMENT INFORMATION | |||||||||||||||||||
2013 (THOUSANDS) | CLECO POWER | MIDSTREAM | OTHER | ELIMINATIONS | CONSOLIDATED | ||||||||||||||
Revenue | |||||||||||||||||||
Electric operations | $ | 1,047,548 | $ | — | $ | — | $ | — | $ | 1,047,548 | |||||||||
Tolling operations | — | 31,670 | — | (31,670 | ) | — | |||||||||||||
Other operations | 48,909 | 2 | 2,091 | — | 51,002 | ||||||||||||||
Electric customer credits | (1,836 | ) | — | — | — | (1,836 | ) | ||||||||||||
Affiliate revenue | 1,338 | — | 55,145 | (56,483 | ) | — | |||||||||||||
Operating revenue, net | $ | 1,095,959 | $ | 31,672 | $ | 57,236 | $ | (88,153 | ) | $ | 1,096,714 | ||||||||
Depreciation | $ | 135,717 | $ | 6,043 | $ | 1,100 | $ | — | $ | 142,860 | |||||||||
Interest charges | $ | 82,677 | $ | (331 | ) | $ | 1,274 | $ | 634 | $ | 84,254 | ||||||||
Interest income | $ | 1,100 | $ | — | $ | (628 | ) | $ | 633 | $ | 1,105 | ||||||||
Federal and state income tax expense (benefit) | $ | 79,381 | $ | 7,110 | $ | (6,917 | ) | $ | 1 | $ | 79,575 | ||||||||
Net income | $ | 150,410 | $ | 4,372 | $ | 5,903 | $ | — | $ | 160,685 | |||||||||
Additions to long-lived assets | $ | 184,684 | $ | 4,106 | $ | 3,086 | $ | — | $ | 191,876 | |||||||||
Equity investment in investees | $ | 14,532 | $ | — | $ | 8 | $ | — | $ | 14,540 | |||||||||
Total segment assets | $ | 3,943,712 | $ | 225,832 | $ | 88,234 | $ | (42,516 | ) | $ | 4,215,262 |
2012 (THOUSANDS) | CLECO POWER | MIDSTREAM | OTHER | 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 | ||||||||
Net income | $ | 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 |
CLECO CORPORATION | ||
CLECO POWER | 2013 FORM 10-K |
2011 (THOUSANDS) | CLECO POWER | MIDSTREAM | OTHER | 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 | ||||||||
Net income (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 net income to consolidated profit: | Net income | $ | 195,848 | ||||||||||||||||
Unallocated items: | |||||||||||||||||||
Preferred dividends requirements | 26 | ||||||||||||||||||
Preferred stock redemption costs | 112 | ||||||||||||||||||
Net income applicable to common stock | $ | 195,710 |
Note 11 — Electric Customer Credits |
Note 12 — Variable Interest Entities |
CLECO CORPORATION | ||
CLECO POWER | 2013 FORM 10-K |
(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 |
(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) | 2013 | 2012 | 2011 | ||||||||
Cajun | $ | — | $ | — | $ | 62,053 | |||||
Subsidiaries less than 100% owned by Diversified Lands | — | — | (3 | ) | |||||||
Total equity income | $ | — | $ | — | $ | 62,050 |
AT DEC. 31, | |||||||
INCEPTION TO DATE (THOUSANDS) | 2013 | 2012 | |||||
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) | 2013 | 2012 | |||||
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) | 2013 | 2012 | |||||
Current assets | $ | 2,289 | $ | 1,814 | |||
Property, plant, and equipment, net | 22,611 | 23,029 | |||||
Other assets | 4,256 | 4,248 | |||||
Total assets | $ | 29,156 | $ | 29,091 | |||
Current liabilities | $ | 91 | $ | 26 | |||
Partners’ capital | 29,065 | 29,065 | |||||
Total liabilities and partners’ capital | $ | 29,156 | $ | 29,091 |
FOR THE YEAR ENDED DEC. 31, | |||||||||||
(THOUSANDS) | 2013 | 2012 | 2011 | ||||||||
Operating revenue | $ | 2,558 | $ | 1,126 | $ | 1,781 | |||||
Operating expenses | 2,558 | 1,126 | 1,781 | ||||||||
Income before taxes | $ | — | $ | — | $ | — |
Note 13 — Operating Leases |
CLECO CORPORATION | ||
CLECO POWER | 2013 FORM 10-K |
YEAR ENDING DEC. 31, | |||||||||||
(THOUSANDS) | CLECO CORPORATION | CLECO POWER | TOTAL | ||||||||
2014 | $ | 11 | $ | 10,560 | $ | 10,571 | |||||
2015 | — | 10,713 | 10,713 | ||||||||
2016 | — | 10,784 | 10,784 | ||||||||
2017 | — | 8,789 | 8,789 | ||||||||
2018 | — | 3,009 | 3,009 | ||||||||
Thereafter | — | 9,669 | 9,669 | ||||||||
Total operating lease payments | $ | 11 | $ | 53,524 | $ | 53,535 |
Note 14 — Litigation, Other Commitments and Contingencies, and Disclosures about Guarantees |
CLECO CORPORATION | ||
CLECO POWER | 2013 FORM 10-K |
CLECO CORPORATION | ||
CLECO POWER | 2013 FORM 10-K |
AT DEC. 31, 2013 | |||||||||||
(THOUSANDS) | FACE AMOUNT | REDUCTIONS | NET AMOUNT | ||||||||
Cleco Corporation | |||||||||||
Guarantee issued to Entergy Mississippi on behalf of Attala | $ | 500 | $ | — | $ | 500 | |||||
Guarantee issued to Cleco Power on behalf of Evangeline | $ | 8,000 | $ | — | $ | 8,000 | |||||
Cleco Power | |||||||||||
Obligations under standby letter of credit issued to the Louisiana Department of Labor | 3,725 | — | 3,725 | ||||||||
Obligations under standby letter of credit issued to MISO | 1,000 | — | 1,000 | ||||||||
Total | $ | 13,225 | $ | — | $ | 13,225 |
CLECO CORPORATION | ||
CLECO POWER | 2013 FORM 10-K |
AT DEC. 31, 2013 | |||||||||||||||||||
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 | $ | 13,225 | $ | 3,725 | $ | 8,000 | $ | 1,000 | $ | 500 | |||||||||
On-balance sheet guarantees | 4,906 | — | 900 | — | 4,006 | ||||||||||||||
Total | $ | 18,131 | $ | 3,725 | $ | 8,900 | $ | 1,000 | $ | 4,506 |
YEAR ENDING DEC. 31, | (THOUSANDS) | |||
2014 | $ | 77,089 | ||
2015 | 14,980 | |||
2016 | 15,606 | |||
2017 | 17,262 | |||
2018 | 15,424 | |||
Total long-term purchase obligations | $ | 140,361 |
CLECO CORPORATION | ||
CLECO POWER | 2013 FORM 10-K |
(THOUSANDS) | CONTRIBUTION | |||
2014 | $ | 47,434 | ||
2015 | 11,195 | |||
2016 | 3,698 | |||
2017 | 2,914 | |||
Total | $ | 65,241 |
(THOUSANDS) | ||||
Equity contributions, imputed interest rate 6% | ||||
Principal payment schedule above: | $ | 65,241 | ||
Less: unamortized discount | 3,930 | |||
Total | $ | 61,311 |
AT DEC. 31, | ||||||||
CLASSES OF PROPERTY (THOUSANDS) | 2013 | 2012 | ||||||
Barges | $ | 8,918 | $ | 11,350 | ||||
Less: accumulated amortization | 2,171 | — | ||||||
Net capital leases | $ | 6,747 | $ | 11,350 |
CLECO CORPORATION | ||
CLECO POWER | 2013 FORM 10-K |
(THOUSANDS) | ||||
Years ending December 31, | ||||
2014 | $ | 3,725 | ||
2015 | 3,725 | |||
2016 | 3,735 | |||
2017 | 2,480 | |||
Total minimum lease payments | $ | 13,665 | ||
Less: executory costs | 3,416 | |||
Net minimum lease payments | $ | 10,249 | ||
Less: amount representing interest | 1,070 | |||
Present value of net minimum lease payments | $ | 9,179 | ||
Current liabilities | $ | 2,305 | ||
Non-current liabilities | $ | 6,874 |
Note 15 — Affiliate Transactions |
CLECO CORPORATION | ||
CLECO POWER | 2013 FORM 10-K |
FOR THE YEAR ENDED DEC. 31, | |||||||||||
(THOUSANDS) | 2013 | 2012 | 2011 | ||||||||
Support Group | |||||||||||
Other operations | $ | 48,694 | $ | 43,171 | $ | 43,124 | |||||
Maintenance | $ | 1,263 | $ | 1,437 | $ | 1,625 | |||||
Taxes other than income taxes | $ | (6 | ) | $ | (54 | ) | $ | (1 | ) | ||
Other expenses | $ | 306 | $ | 932 | $ | 1,244 | |||||
Evangeline | |||||||||||
Purchased power expense | $ | 31,670 | $ | 25,559 | $ | — | |||||
Other expenses | $ | 42 | $ | — | $ | 4 | |||||
Diversified Lands | |||||||||||
Other expenses | $ | 3 | $ | — | $ | 82 |
FOR THE YEAR ENDED DEC. 31, | |||||||||||
(THOUSANDS) | 2013 | 2012 | 2011 | ||||||||
Affiliate revenue | |||||||||||
Support Group | $ | 1,318 | $ | 1,335 | $ | 1,349 | |||||
Midstream | — | 14 | 14 | ||||||||
Evangeline | 20 | 23 | 26 | ||||||||
Total affiliate revenue | $ | 1,338 | $ | 1,372 | $ | 1,389 | |||||
Other income | |||||||||||
Cleco Corporation | $ | 26 | $ | — | $ | 10 | |||||
Evangeline | 68 | 11 | 12 | ||||||||
Diversified Lands | 45 | 17 | 124 | ||||||||
Perryville | 10 | 6 | 4 | ||||||||
Attala | 8 | 6 | 5 | ||||||||
Total other income | $ | 157 | $ | 40 | $ | 155 | |||||
Total | $ | 1,495 | $ | 1,412 | $ | 1,544 |
AT DEC. 31, | |||||||||||||||
2013 | 2012 | ||||||||||||||
(THOUSANDS) | ACCOUNTS RECEIVABLE | ACCOUNTS PAYABLE | ACCOUNTS RECEIVABLE | ACCOUNTS PAYABLE | |||||||||||
Cleco Corporation | $ | 379 | $ | 389 | $ | 139 | $ | 1,140 | |||||||
Support Group | 634 | 5,972 | 2,777 | 7,528 | |||||||||||
Midstream | 27 | 1 | 27 | 5 | |||||||||||
Evangeline | 4 | 2,024 | 6 | 1,401 | |||||||||||
Diversified Lands | 1 | — | 42 | 23 | |||||||||||
Total | $ | 1,045 | $ | 8,386 | $ | 2,991 | $ | 10,097 |
FOR THE YEAR ENDED DEC. 31, | ||||||
(THOUSANDS) | 2013 | 2012 | ||||
Support Group | $ | 2,193 | $ | 1,881 | ||
Midstream | 288 | 280 | ||||
Total | $ | 2,481 | $ | 2,161 |
Note 16 — Intangible Asset |
AT DEC. 31, | |||||||
(THOUSANDS) | 2013 | 2012 | |||||
Gross carrying amount | $ | 177,537 | $ | 177,537 | |||
Accumulated amortization | 71,530 | 56,992 | |||||
Intangible asset | $ | 106,007 | $ | 120,545 |
CLECO CORPORATION | ||
CLECO POWER | 2013 FORM 10-K |
(THOUSANDS) | ||||
Expected amortization expense | ||||
2014 | $ | 14,931 | ||
2015 | 15,876 | |||
2016 | 16,864 | |||
2017 | 18,009 | |||
2018 | 19,312 | |||
Thereafter | $ | 21,015 |
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. |
Note 18 — Acadia Transactions |
• | 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. |
• | 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, |
CLECO CORPORATION | ||
CLECO POWER | 2013 FORM 10-K |
• | 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) | POSTRETIREMENT BENEFIT NET (LOSS) GAIN | NET GAIN (LOSS) ON CASH FLOW HEDGES | TOTAL ACCUMULATED OTHER COMPREHENSIVE (LOSS) GAIN | ||||||||
Balances, Dec. 31, 2010 | $ | (17,668 | ) | $ | 6,030 | $ | (11,638 | ) | |||
Other comprehensive loss before reclassifications: | |||||||||||
Postretirement benefit adjustments incurred during the year | (1,721 | ) | — | (1,721 | ) | ||||||
Net derivative loss | — | (15,788 | ) | (15,788 | ) | ||||||
Amounts reclassified from accumulated other comprehensive loss: | |||||||||||
Amortization of postretirement benefit net loss | 1,213 | — | 1,213 | ||||||||
Reclassification of net gain to interest charges | — | (205 | ) | (205 | ) | ||||||
Net current-period other comprehensive loss | (508 | ) | (15,993 | ) | (16,501 | ) | |||||
Balances, Dec. 31, 2011 | $ | (18,176 | ) | $ | (9,963 | ) | $ | (28,139 | ) | ||
Other comprehensive (loss) income before reclassifications: | |||||||||||
Postretirement benefit adjustments incurred during the year | (8,682 | ) | — | (8,682 | ) | ||||||
Net derivative gain | — | 433 | 433 | ||||||||
Amounts reclassified from accumulated other comprehensive loss: | |||||||||||
Amortization of postretirement benefit net loss | 2,117 | — | 2,117 | ||||||||
Reclassification of net loss to interest charges | — | 37 | 37 | ||||||||
Reclassification of ineffectiveness to regulatory asset | — | 1,864 | 1,864 | ||||||||
Net current-period other comprehensive (loss) income | (6,565 | ) | 2,334 | (4,231 | ) | ||||||
Balances, Dec. 31, 2012 | $ | (24,741 | ) | $ | (7,629 | ) | $ | (32,370 | ) | ||
Other comprehensive income before reclassifications: | |||||||||||
Postretirement benefit adjustments incurred during the year | 2,857 | — | 2,857 | ||||||||
Net derivative gain | — | 1,355 | 1,355 | ||||||||
Amounts reclassified from accumulated other comprehensive income: | |||||||||||
Amortization of postretirement benefit net loss | 2,159 | — | 2,159 | ||||||||
Reclassification of net loss to interest charges | — | 154 | 154 | ||||||||
Reclassification of ineffectiveness to regulatory asset | — | (31 | ) | (31 | ) | ||||||
Net current-period other comprehensive income | 5,016 | 1,478 | 6,494 | ||||||||
Balances, Dec. 31, 2013 | $ | (19,725 | ) | $ | (6,151 | ) | $ | (25,876 | ) |
CLECO CORPORATION | ||
CLECO POWER | 2013 FORM 10-K |
Cleco Power | |||||||||||
(THOUSANDS) | POSTRETIREMENT BENEFIT NET (LOSS) GAIN | NET GAIN (LOSS) ON CASH FLOW HEDGES | TOTAL ACCUMULATED OTHER COMPREHENSIVE (LOSS) GAIN | ||||||||
Balances, Dec. 31, 2010 | $ | (10,764 | ) | $ | 6,030 | $ | (4,734 | ) | |||
Other comprehensive loss before reclassifications: | |||||||||||
Postretirement benefit adjustments incurred during the year | (595 | ) | — | (595 | ) | ||||||
Net derivative loss | — | (15,788 | ) | (15,788 | ) | ||||||
Amounts reclassified from accumulated other comprehensive loss: | |||||||||||
Amortization of postretirement benefit net loss | 692 | — | 692 | ||||||||
Reclassification of net gain to interest charges | — | (205 | ) | (205 | ) | ||||||
Net current-period other comprehensive loss | 97 | (15,993 | ) | (15,896 | ) | ||||||
Balances, Dec. 31, 2011 | $ | (10,667 | ) | $ | (9,963 | ) | $ | (20,630 | ) | ||
Other comprehensive (loss) income before reclassifications: | |||||||||||
Postretirement benefit adjustments incurred during the year | (3,285 | ) | — | (3,285 | ) | ||||||
Net derivative gain | — | 433 | 433 | ||||||||
Amounts reclassified from accumulated other comprehensive loss: | |||||||||||
Amortization of postretirement benefit net loss | 1,160 | — | 1,160 | ||||||||
Reclassification of net loss to interest charges | — | 37 | 37 | ||||||||
Reclassification of ineffectiveness to regulatory asset | — | 1,864 | 1,864 | ||||||||
Net current-period other comprehensive (loss) income | (2,125 | ) | 2,334 | 209 | |||||||
Balances, Dec. 31, 2012 | $ | (12,792 | ) | $ | (7,629 | ) | $ | (20,421 | ) | ||
Other comprehensive income before reclassifications: | |||||||||||
Postretirement benefit adjustments incurred during the year | 2,796 | — | 2,796 | ||||||||
Net derivative gain | — | 1,355 | 1,355 | ||||||||
Amounts reclassified from accumulated other comprehensive income: | |||||||||||
Amortization of postretirement benefit net loss | 970 | — | 970 | ||||||||
Reclassification of net loss to interest charges | — | 154 | 154 | ||||||||
Reclassification of ineffectiveness to regulatory asset | — | (31 | ) | (31 | ) | ||||||
Net current-period other comprehensive income | 3,766 | 1,478 | 5,244 | ||||||||
Balances, Dec. 31, 2013 | $ | (9,026 | ) | $ | (6,151 | ) | $ | (15,177 | ) |
CLECO CORPORATION | ||
CLECO POWER | 2013 FORM 10-K |
Note 21 — Miscellaneous Financial Information (Unaudited) |
2013 | |||||||||||||||
(THOUSANDS, EXCEPT PER SHARE AMOUNTS) | 1ST QUARTER | 2ND QUARTER | 3RD QUARTER | 4TH QUARTER | |||||||||||
Operating revenue, net | $ | 240,947 | $ | 263,894 | $ | 328,763 | $ | 263,109 | |||||||
Operating income | $ | 58,467 | $ | 74,754 | $ | 116,794 | $ | 58,314 | |||||||
Net income applicable to common stock | $ | 27,133 | $ | 42,032 | $ | 66,407 | $ | 25,112 | |||||||
Basic net income per average share | $ | 0.45 | $ | 0.70 | $ | 1.10 | $ | 0.42 | |||||||
Diluted net income per average common share | $ | 0.45 | $ | 0.69 | $ | 1.09 | $ | 0.41 | |||||||
Dividends paid per common share | $ | 0.3375 | $ | 0.3625 | $ | 0.3625 | $ | 0.3625 | |||||||
Market sales price per share | |||||||||||||||
High | $ | 47.17 | $ | 49.52 | $ | 50.42 | $ | 47.79 | |||||||
Low | $ | 40.39 | $ | 43.75 | $ | 43.76 | $ | 43.69 |
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 |
2013 | |||||||||||||||
(THOUSANDS) | 1ST QUARTER | 2ND QUARTER | 3RD QUARTER | 4TH QUARTER | |||||||||||
Operating revenue, net | $ | 240,778 | $ | 263,725 | $ | 328,556 | $ | 262,900 | |||||||
Operating income | $ | 61,765 | $ | 72,579 | $ | 111,663 | $ | 60,678 | |||||||
Net income | $ | 27,793 | $ | 34,464 | $ | 61,885 | $ | 26,268 | |||||||
Distribution to Cleco Corporation (as sole member) | $ | — | $ | 25,000 | $ | 50,000 | $ | 30,000 |
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 | $ | — |
CLECO CORPORATION | ||
CLECO POWER | 2013 FORM 10-K |
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE |
ITEM 9A. CONTROLS AND PROCEDURES |
CLECO CORPORATION | ||
CLECO POWER | 2013 FORM 10-K |
Report of Independent Registered Public Accounting Firm |
CLECO CORPORATION | ||
CLECO POWER | 2013 FORM 10-K |
Report of Independent Registered Public Accounting Firm |
CLECO CORPORATION | ||
CLECO POWER | 2013 FORM 10-K |
ITEM 9B. OTHER INFORMATION |
PART III |
ITEM 10. DIRECTORS, EXECUTIVE OFFICERS, AND CORPORATE GOVERNANCE OF THE REGISTRANTS |
CLECO CORPORATION | ||
CLECO POWER | 2013 FORM 10-K |
NAME OF DIRECTOR | AGES AS OF FEBRUARY 25, 2014 |
Vicky A. Bailey | Age 61; Elected 2013 President of Anderson Stratton International, LLC and Partner, BHMM Energy Services, LLC Member of the Audit and Nominating/Governance Committees |
J. Patrick Garrett | Age 70; Elected 1981 Retired President and Chief Executive Officer, Windsor Food Company, Ltd. Chairman of the Board |
Elton R. King | Age 67; Elected 1999 Retired President of Network and Carrier Services Group, BellSouth Telecommunications, Inc. and retired President and Chief Executive Officer of Visual Networks, Inc. Member of the Finance and Nominating/Governance Committees |
Logan W. Kruger | Age 63; Elected 2008 President and CEO, SUN Gold Limited and former President, Chief Executive Officer and Director of Century Aluminum Company Member of the Audit and Compensation Committees |
William L. Marks | Age 70; Elected 2001 Retired Chairman and Chief Executive Officer, Whitney Holding Corporation and Whitney National Bank Chairman of the Finance Committee and member of the Compensation Committee |
Peter M. Scott III | Age 64; Elected 2009 Retired Executive Vice President and Chief Financial Officer, Progress Energy, Inc. and 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 60; Elected 2010 Vice President, Sourcing and Logistics/Chief Procurement Officer, E.I. du Pont de Nemours & Company and former Senior Vice President, Operational Excellence & Chief Procurement Officer, Tyco International Limited Chairman of the Nominating/Governance Committee and member of the Audit Committee |
William H. Walker Jr. | Age 68; Elected 1996 Retired President and Director, Howard Weil, Inc. Chairman of the Compensation Committee and member of the Finance Committee |
Bruce A. Williamson | Age 54; Elected 2011 President and Chief Executive Officer, Cleco Corporation, since July 2011 Chairman, President and Chief Executive Officer, Dynegy, Inc. from 2004 to 2011 |
CLECO CORPORATION | ||
CLECO POWER | 2013 FORM 10-K |
ITEM 11. EXECUTIVE COMPENSATION |
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 | 1,772 | (1) | $ | 44.29 | 406,112 | ||||||
LTICP | — | $ | — | 1,448,013 | (2) | ||||||
Total | 1,772 | $ | 44.29 | 1,854,125 |
ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE |
ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES |
CLECO CORPORATION | ||
CLECO POWER | 2013 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 | 2013 FORM 10-K |
EXHIBITS | |||||
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(a)(2) | Articles of Amendment to the Amended and Restated Articles of Incorporation of Cleco Corporation, effective April 26, 2013 | 1-15759 | 10-Q(3/13) | 3.2 | |
3(b)(1) | Bylaws of Cleco Corporation, revised effective January 24, 2013 | 1-15759 | 10-K(2012) | 3(b)(1) | |
3(b)(2) | Amendment to Bylaws of Cleco Corporation, effective June 13, 2013 | 1-15759 | 8-K(6/13/13) | 3.1 | |
3(b)(3) | Bylaws of Cleco Corporation, revised effective October 25, 2014 | 1-15759 | 10-Q(9/13) | 3.1 | |
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 | 1-05663 | 10-K(1997) | 4(a)(1) | |
4(a)(2) | Eighteenth Supplemental Indenture dated as of December 1, 1982, to Exhibit 4(a)(1) | 1-05663 | 10-K(1993) | 4(a)(8) | |
4(a)(3) | Nineteenth Supplemental Indenture dated as of January 1, 1983, to Exhibit 4(a)(1) | 1-05663 | 10-K(1993) | 4(a)(9) | |
4(a)(4) | Twenty-Sixth Supplemental Indenture dated as of March 15, 1990, to Exhibit 4(a)(1) | 1-05663 | 8-K(3/15/90) | 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) | Seventh Supplemental Indenture, dated as of July 6, 2005, between Cleco Power LLC and the Bank of New York Trust Company, N.A. | 1-05663 | 8-K(7/6/05) | 4.1 | |
4(b)(6) | Eighth Supplemental Indenture, dated as of November 30, 2005, between Cleco Power LLC and the Bank of New York Trust Company, N.A. | 1-05663 | 8-K(11/28/05) | 4.1 | |
4(b)(7) | Ninth Supplemental Indenture, dated as of June 3, 2008, between Cleco Power LLC and The Bank of New York Trust Company, N.A. | 1-05663 | 8-K(6/2/08) | 4.1 | |
4(b)(8) | 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) | 1-05663 | 8-K(11/12/09) | 4.1 | |
4(b)(9) | 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) | 1-05663 | 8-K(11/15/10) | 4.1 | |
4(c) | Agreement Under Regulation S-K Item 601(b)(4)(iii)(A) | 1-05663 | 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 January 28, 2005 | 1-15759 | 10-Q(3/05) | 10(b) |
** | 10(a)(5) | 2000 Long-Term Incentive Compensation Plan, Amendment Number 4, Effective as of January 1, 2009 | 1-15759 | 10-K(2008) | 10(a)(6) |
** | 10(a)(6) | 2000 Long-Term Incentive Compensation Plan, Amendment Number 5, Effective 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 Grant of Restricted Stock under Cleco’s 2000 Long-Term Incentive Compensation Plan | 1-15759 | 10-Q(6/00) | 10(b) | |
10(a)(11) | 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)(12) | 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)(13) | 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)(14) | 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)(15) | 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)(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 – 2011 Performance Cycle | 1-15759 | 10-K(2010) | 10(a)(19) | |
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 – 2012 Performance Cycle | 1-15759 | 10-K(2011) | 10(a)(23) | |
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 – 2013 Performance Cycle | 1-15759 | 10-K(2012) | 10(a)(22) | |
* | 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 – 2014 Performance Cycle | |||
10(a)(20) | 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)(21) | 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)(22) | Form of 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(1/29/13) | 10.1 |
** | 10(a)(23) | Form of 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 | 1-15759 | 10-K(2012) | 10(a)(27) |
** | 10(b)(1) | Deferred Compensation Plan for Directors | 1-05663 | 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 |
CLECO CORPORATION | ||
CLECO POWER | 2013 FORM 10-K |
CLECO | SEC FILE OR REGISTRATION NUMBER | REGISTRATION STATEMENT OR REPORT | EXHIBIT NUMBER | ||
** | 10(c)(1) | Supplemental Executive Retirement Plan | 1-05663 | 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) | Separation Agreement between Cleco Corporation and Dilek Samil, dated October 22, 2010 | 1-15759 | 8-K(10/22/10) | 10.1 |
** | 10(d)(2) | Cleco Corporation Executive Severance Plan, effective October 28, 2011 | 1-15759 | 10-Q(9/11) | 10.1 |
** | 10(d)(3) | 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)(4) | 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)(5) | 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 | 1-05663 | 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 | 1-15759 | 10-K(2012) | 10(f)(5) | |
** | 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) | Note Purchase Agreement dated May 8, 2012 by and among Cleco Power LLC and the Purchasers listed on the signature pages thereto | 1-05663 | 8-K(05/09/12) | 10.1 | |
10(h)(2) | Term Loan Agreement dated March 20, 2013, by and among Cleco Power LLC, as borrower, the lenders party thereto, and JPMorgan Chase Bank, N.A., as administrative agent | 1-15759 | 8-K(3/26/13) | 10.1 | |
10(h)(3) | Amended and Restated Credit Agreement dated as of October 16, 2013, among Cleco Corporation, various financial institutions, and JPMorgan Chase Bank, N.A., as administrative agent | 1-15759 | 8-K(10/17/13) | 10.1 | |
10(i) | Acadia Power Partners, LLC – Third Amended and Restated Limited Liability Company Agreement dated February 23, 2010 | 1-15759 | 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 | |||
* | 23(c) | 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, 2013 | |||
* | 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 | 2013 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 | 1-05663 | 10-Q(3/10) | 3.2 | |
3(b) | First Amended and Restated Operating Agreement of Cleco Power LLC, dated April 30, 2010 | 1-05663 | 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 | 1-05663 | 10-K(1997) | 4(a)(1) | |
4(a)(2) | Eighteenth Supplemental Indenture dated as of December 1, 1982, to Exhibit 4(a)(1) | 1-05663 | 10-K(1993) | 4(a)(8) | |
4(a)(3) | Nineteenth Supplemental Indenture dated as of January 1, 1983, to Exhibit 4(a)(1) | 1-05663 | 10-K(1993) | 4(a)(9) | |
4(a)(4) | Twenty-Sixth Supplemental Indenture dated as of March 15, 1990, to Exhibit 4(a)(1) | 1-05663 | 8-K(3/15/90) | 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) | Seventh Supplemental Indenture, dated as of July 6, 2005, between Cleco Power LLC and the Bank of New York Trust Company, N.A. | 1-05663 | 8-K(7/6/05) | 4.1 | |
4(b)(6) | Eighth Supplemental Indenture, dated as of November 30, 2005, between Cleco Power LLC and the Bank of New York Trust Company, N.A. | 1-05663 | 8-K(11/28/05) | 4.1 | |
4(b)(7) | Ninth Supplemental Indenture, dated as of June 3, 2008, between Cleco Power LLC and The Bank of New York Trust Company, N.A. | 1-05663 | 8-K(6/2/08) | 4.1 | |
4(b)(8) | 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) | 1-05663 | 8-K(11/12/09) | 4.1 | |
4(b)(9) | 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) | 1-05663 | 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 | 1-05663 | 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 | 1-05663 | 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 | 1-05663 | 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 | 1-05663 | 10-Q(3/10) | 4.2 | |
** | 10(a)(1) | Supplemental Executive Retirement Plan | 1-05663 | 10-K(1992) | 10(o)(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 | 1-05663 | 10-K(1997) | 10(m) | |
10(b)(2) | 401(k) Savings and Investment Plan, Stock Trust Agreement, Amendment Number 1, Effective January 1, 1999 | 1-05663 | 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 | 1-05663 | 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 | 1-05663 | 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 | 1-05663 | 10-Q(3/07) | 10(b) | |
10(b)(6) | 401(k) Savings and Investment Plan, Amended and Restated Generally Effective November 1, 2010 | 1-05663 | 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 | 1-05663 | 10-K(2011) | 10(b)(7) | |
10(c)(1) | 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)(2) | 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(c)(3) | Term Loan Agreement dated March 20, 2013, by and among Cleco Power LLC, as borrower, the lenders party thereto, and JPMorgan Chase Bank, N.A., as administrative agent | 1-05663 | 8-K(3/26/13) | 10.1 | |
10(c)(4) | Amended and Restated Credit Agreement dated as of October 16, 2013, among Cleco Power LLC, various financial institutions, and JPMorgan Chase Bank, N.A., as administrative agent | 1-05663 | 8-K(10/17/13) | 10.2 | |
10(d)(1) | Storm Recovery Property Sale Agreement between Cleco Katrina/Rita Hurricane Recovery Funding LLC and Cleco Power LLC, dated March 6, 2008 | 1-05663 | 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 | 1-05663 | 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 | 1-05663 | 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 | |||
* | 23(d) | 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 | 2013 FORM 10-K |
CLECO CORPORATION (Parent Company Only) | SCHEDULE I |
Condensed Statements of Income | |||||||||||
FOR THE YEAR ENDED DEC. 31, | |||||||||||
(THOUSANDS) | 2013 | 2012 | 2011 | ||||||||
Operating expenses | |||||||||||
Administrative and general | $ | 2,501 | $ | 1,154 | $ | 1,184 | |||||
Other operating expense | 418 | 362 | 650 | ||||||||
Total operating expenses | $ | 2,919 | $ | 1,516 | $ | 1,834 | |||||
Operating loss | (2,919 | ) | (1,516 | ) | (1,834 | ) | |||||
Equity income from subsidiaries, net of tax | 155,360 | 156,783 | 184,951 | ||||||||
Interest, net | (2,380 | ) | (3,350 | ) | (2,874 | ) | |||||
Other income | 3,392 | 2,068 | 4,647 | ||||||||
Other expense | (38 | ) | (13 | ) | (2,230 | ) | |||||
Income before income taxes | 153,415 | 153,972 | 182,660 | ||||||||
Income tax benefit | (7,270 | ) | (9,676 | ) | (13,188 | ) | |||||
Net income | 160,685 | 163,648 | 195,848 | ||||||||
Preferred dividends requirements | — | — | 26 | ||||||||
Preferred stock redemption costs | — | — | 112 | ||||||||
Net income applicable to common stock | $ | 160,685 | $ | 163,648 | $ | 195,710 | |||||
The accompanying notes are an integral part of the condensed financial statements. |
CLECO CORPORATION | ||
CLECO POWER | 2013 FORM 10-K |
CLECO CORPORATION (Parent Company Only) | SCHEDULE I |
Condensed Statements of Comprehensive Income | |||||||||||
FOR THE YEAR ENDED DEC. 31, | |||||||||||
(THOUSANDS) | 2013 | 2012 | 2011 | ||||||||
Net income | $ | 160,685 | $ | 163,648 | $ | 195,848 | |||||
Other comprehensive loss, net of tax: | |||||||||||
Postretirement benefits gain (loss) (net of tax expense of $3,137 in 2013 and tax benefit of $4,230 in 2012 and $344 in 2011) | 5,016 | (6,565 | ) | (508 | ) | ||||||
Net gain (loss) on cash flow hedges (net of tax expense of $925 in 2013 and $1,460 in 2012, and tax benefit of $10,002 in 2011) | 1,478 | 2,334 | (15,993 | ) | |||||||
Total other comprehensive income (loss), net of tax | 6,494 | (4,231 | ) | (16,501 | ) | ||||||
Comprehensive income, net of tax | $ | 167,179 | $ | 159,417 | $ | 179,347 | |||||
The accompanying notes are an integral part of the condensed financial statements. |
CLECO CORPORATION | ||
CLECO POWER | 2013 FORM 10-K |
CLECO CORPORATION (Parent Company Only) | SCHEDULE I |
Condensed Balance Sheets | |||||||
AT DEC. 31, | |||||||
(THOUSANDS) | 2013 | 2012 | |||||
Assets | |||||||
Current assets | |||||||
Cash and cash equivalents | $ | 7,375 | $ | 7,418 | |||
Accounts receivable - affiliate | 9,549 | 9,455 | |||||
Other accounts receivable | — | 1 | |||||
Taxes receivable, net | — | 30,920 | |||||
Accumulated deferred federal and state income taxes, net | 7,330 | — | |||||
Cash surrender value of life insurance policies | 45,394 | 36,504 | |||||
Total current assets | 69,648 | 84,298 | |||||
Equity investment in investees | 1,553,543 | 1,497,788 | |||||
Accumulated deferred federal and state income taxes, net | 102,255 | 91,359 | |||||
Other deferred charges | 719 | 1,721 | |||||
Total assets | $ | 1,726,165 | $ | 1,675,166 | |||
Liabilities and shareholders’ equity | |||||||
Liabilities | |||||||
Current liabilities | |||||||
Accounts payable | $ | 3,218 | $ | 3,392 | |||
Accounts payable - affiliate | 60,590 | 55,432 | |||||
Taxes payable, net | 17,161 | — | |||||
Interest accrued | 38 | 377 | |||||
Accumulated deferred federal and state income taxes, net | — | 2,926 | |||||
Other current liabilities | 11,081 | 9,986 | |||||
Total current liabilities | 92,088 | 72,113 | |||||
Tax credit fund investment, net | 41,840 | 78,840 | |||||
Other deferred credits | 1,040 | — | |||||
Long-term debt | 5,000 | 25,000 | |||||
Total liabilities | 139,968 | 175,953 | |||||
Commitments and Contingencies (Note 5) | |||||||
Shareholders’ equity | |||||||
Common shareholders’ equity | |||||||
Common stock, $1 par value, authorized 100,000,000 shares, issued 61,047,006 and 60,961,570 shares and outstanding 60,454,520 and 60,355,545 shares at December 31, 2013 and 2012, respectively | 61,047 | 60,962 | |||||
Premium on common stock | 422,624 | 416,619 | |||||
Retained earnings | 1,149,003 | 1,075,074 | |||||
Treasury stock, at cost, 592,486 and 606,025 shares at December 31, 2013 and 2012, respectively | (20,601 | ) | (21,072 | ) | |||
Accumulated other comprehensive loss | (25,876 | ) | (32,370 | ) | |||
Total shareholders’ equity | 1,586,197 | 1,499,213 | |||||
Total liabilities and shareholders’ equity | $ | 1,726,165 | $ | 1,675,166 | |||
The accompanying notes are an integral part of the condensed financial statements. |
CLECO CORPORATION | ||
CLECO POWER | 2013 FORM 10-K |
CLECO CORPORATION (Parent Company Only) | SCHEDULE I |
Condensed Statements of Cash Flows | |||||||||||
FOR THE YEAR ENDED DEC. 31, | |||||||||||
(THOUSANDS) | 2013 | 2012 | 2011 | ||||||||
Operating activities | |||||||||||
Net cash provided by operating activities | $ | 159,430 | $ | 79,606 | $ | 175,624 | |||||
Investing activities | |||||||||||
Contributions to tax credit fund | (51,011 | ) | (59,645 | ) | (43,921 | ) | |||||
Return of equity investment in tax credit fund | 1,619 | 37,652 | 33,430 | ||||||||
Return of equity investment in investees | — | — | 89,654 | ||||||||
Other investing | (3,705 | ) | (2,973 | ) | (1,232 | ) | |||||
Net cash (used in) provided by investing activities | (53,097 | ) | (24,966 | ) | 77,931 | ||||||
Financing activities | |||||||||||
Retirement of short-term debt | — | — | (150,000 | ) | |||||||
Draws on credit facility | 48,000 | 25,000 | 35,000 | ||||||||
Payments on credit facility | (68,000 | ) | (10,000 | ) | (40,000 | ) | |||||
Repurchase of common stock | — | (8,007 | ) | (13,009 | ) | ||||||
Dividends paid on common stock | (86,376 | ) | (78,844 | ) | (68,023 | ) | |||||
Other financing | — | 1,987 | (201 | ) | |||||||
Net cash used in financing activities | (106,376 | ) | (69,864 | ) | (236,233 | ) | |||||
Net (decrease) increase in cash and cash equivalents | (43 | ) | (15,224 | ) | 17,322 | ||||||
Cash and cash equivalents at beginning of period | 7,418 | 22,642 | 5,320 | ||||||||
Cash and cash equivalents at end of period | $ | 7,375 | $ | 7,418 | $ | 22,642 | |||||
Supplementary cash flow information | |||||||||||
Interest paid | $ | 217 | $ | 95 | $ | 1,752 | |||||
Income taxes (refunded) paid, net | $ | (46,928 | ) | $ | 59 | $ | 31,180 | ||||
Supplementary non-cash investing and financing activity | |||||||||||
Issuance of common stock - ESPP | $ | 318 | $ | 340 | $ | 328 | |||||
The accompanying notes are an integral part of the condensed financial statements. |
CLECO CORPORATION | ||
CLECO POWER | 2013 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) | 2013 | 2012 | 2011 | ||||||||
Cleco Power | $ | 105,000 | $ | 58,000 | $ | 130,000 | |||||
Midstream | — | — | 159,819 | ||||||||
Diversified Lands | — | 2,900 | — | ||||||||
Perryville | 700 | 1,500 | 700 | ||||||||
Attala | 400 | 1,300 | 700 | ||||||||
Total | $ | 106,100 | $ | 63,700 | $ | 291,219 |
AT DEC. 31, | ||||||||
(THOUSANDS) | 2012 | 2011 | ||||||
Midstream | $ | 16,191 | $ | 35,500 | ||||
Perryville | — | 1,845 | ||||||
Cleco Innovations | — | 3,000 | ||||||
Total | $ | 16,191 | $ | 40,345 |
Note 4 — Income Taxes |
Note 5 — Commitments and Contingencies |
CLECO CORPORATION | ||
CLECO POWER | 2013 FORM 10-K |
CLECO CORPORATION | SCHEDULE II |
VALUATION AND QUALIFYING ACCOUNTS | |||||||||||||||
Years Ended Dec. 31, 2013, 2012, and 2011 | |||||||||||||||
(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, 2013 | $ | 1,105 | $ | 1,232 | $ | 1,488 | $ | 849 | |||||||
Year Ended Dec. 31, 2012 | $ | 1,136 | $ | 828 | $ | 859 | $ | 1,105 | |||||||
Year Ended Dec. 31, 2011 | $ | 3,455 | $ | 1,992 | $ | 4,311 | $ | 1,136 | |||||||
(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, 2013 | $ | 1,792 | $ | — | $ | 556 | $ | 1,236 | |||||||
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 | |||||||
Restricted Storm Reserve | |||||||||||||||
Year Ended Dec. 31, 2013 | $ | 16,285 | $ | 1,593 | $ | 232 | $ | 17,646 | |||||||
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 |
CLECO POWER | SCHEDULE II |
VALUATION AND QUALIFYING ACCOUNTS | |||||||||||||||
Years Ended Dec. 31, 2013, 2012, and 2011 | |||||||||||||||
(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, 2013 | $ | 1,105 | $ | 1,232 | $ | 1,488 | $ | 849 | |||||||
Year Ended Dec. 31, 2012 | $ | 1,136 | $ | 828 | $ | 859 | $ | 1,105 | |||||||
Year Ended Dec. 31, 2011 | $ | 3,395 | $ | 1,972 | $ | 4,231 | $ | 1,136 | |||||||
(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, 2013 | $ | 1,792 | $ | — | $ | 556 | $ | 1,236 | |||||||
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 | |||||||
Restricted Storm Reserve | |||||||||||||||
Year Ended Dec. 31, 2013 | $ | 16,285 | $ | 1,593 | $ | 232 | $ | 17,646 | |||||||
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 |
CLECO CORPORATION | ||
CLECO POWER | 2013 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 25, 2014 | |
(Bruce A. Williamson) | (Principal Executive Officer) | ||
/s/ Thomas R. Miller | Senior Vice President and Chief Financial Officer | February 25, 2014 | |
(Thomas R. Miller) | (Principal Financial Officer) | ||
/s/ Terry L. Taylor | Controller & Chief Accounting Officer | February 25, 2014 | |
(Terry L. Taylor) | (Principal Accounting Officer) |
DIRECTORS* | ||
VICKY A. BAILEY | ||
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 25, 2014 | ||
(Bruce A. Williamson, as Attorney-in-Fact) |
CLECO CORPORATION | ||
CLECO POWER | 2013 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 25, 2014 | |
(Bruce A. Williamson) | (Principal Executive Officer) | ||
/s/ Thomas R. Miller | Senior Vice President and Chief Financial Officer | February 25, 2014 | |
(Thomas R. Miller) | (Principal Financial Officer) | ||
s/ Terry L. Taylor | Controller and Chief Accounting Officer | February 25, 2014 | |
(Terry L. Taylor) | (Principal Accounting Officer) |
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 - 17 |
Percentile Rank | 100% | 94% | 88% | 81% | 75% | 69% | 63% | 56% | 50% | 44% | 38% | 31% | < 30th |
Payout as % of Target | 200% | 187% | 175% | 162% | 150% | 137% | 125% | 112% | 100% | 78% | 56% | 34% | 0% |
Peer Company Name * | Ticker Symbol |
AGL Resources, Inc. | GAS |
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 | NWE |
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 |
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) | 2013 | 2012 | 2011 | 2010 | 2009 | |||||||||||||||
Earnings from continuing operations | $ | 160,685 | $ | 163,648 | $ | 195,848 | $ | 255,391 | $ | 106,307 | ||||||||||
Equity (income) loss and dividends from investees | — | — | (3,385 | ) | (38,849 | ) | 19,023 | |||||||||||||
Income tax expense | 79,575 | 65,327 | 102,897 | 142,498 | 9,579 | |||||||||||||||
Earnings from continuing operations before income taxes | $ | 240,260 | $ | 228,975 | $ | 295,360 | $ | 359,040 | $ | 134,909 | ||||||||||
Fixed charges: | ||||||||||||||||||||
Interest | $ | 81,173 | $ | 83,064 | $ | 69,428 | $ | 97,325 | $ | 75,331 | ||||||||||
Amortization of debt expense, premium, net | 4,397 | 3,156 | 3,017 | 3,014 | 1,897 | |||||||||||||||
Portion of rentals representative of an interest factor | 488 | 489 | 494 | 431 | 536 | |||||||||||||||
Interest of capitalized lease | 622 | 1,618 | 1,787 | 3,972 | 1,545 | |||||||||||||||
Total fixed charges | $ | 86,680 | $ | 88,327 | $ | 74,726 | $ | 104,742 | $ | 79,309 | ||||||||||
Earnings from continuing operations before income taxes | $ | 240,260 | $ | 228,975 | $ | 295,360 | $ | 359,040 | $ | 134,909 | ||||||||||
Plus: total fixed charges from above | 86,680 | 88,327 | 74,726 | 104,742 | 79,309 | |||||||||||||||
Plus: amortization of capitalized interest | 511 | 511 | 545 | 545 | 407 | |||||||||||||||
Earnings from continuing operations before income taxes and fixed charges | $ | 327,451 | $ | 317,813 | $ | 370,631 | $ | 464,327 | $ | 214,625 | ||||||||||
Ratio of earnings to fixed charges | 3.78 | x | 3.60 | x | 4.96 | x | 4.43 | x | 2.71 | x | ||||||||||
Total fixed charges from above | $ | 86,680 | $ | 88,327 | $ | 74,726 | $ | 104,742 | $ | 79,309 | ||||||||||
Preferred stock dividends | — | — | 40 | 72 | 50 | |||||||||||||||
Total fixed charges and preferred stock dividends | $ | 86,680 | $ | 88,327 | $ | 74,766 | $ | 104,814 | $ | 79,359 | ||||||||||
Ratio of earnings to combined fixed charges and preferred stock dividends | 3.78 | x | 3.60 | x | 4.96 | x | 4.43 | x | 2.70 | x |
CLECO POWER LLC | EXHIBIT 12(b) |
Computation of Ratios of Earnings to Fixed Charges |
UNAUDITED (THOUSANDS, EXCEPT RATIOS) | 2013 | 2012 | 2011 | 2010 | 2009 | |||||||||||||||
Earnings from continuing operations | $ | 150,410 | $ | 146,848 | $ | 142,835 | $ | 147,405 | $ | 111,166 | ||||||||||
Income taxes | 79,381 | 68,133 | 69,409 | 75,107 | 15,297 | |||||||||||||||
Earnings from continuing operations before income taxes | 229,791 | $ | 214,981 | $ | 212,244 | $ | 222,512 | $ | 126,463 | |||||||||||
Fixed charges: | ||||||||||||||||||||
Interest | $ | 80,905 | $ | 81,515 | $ | 96,495 | $ | 81,015 | $ | 82,971 | ||||||||||
Amortization of debt expense, premium, net | 3,088 | 2,819 | 2,382 | 2,279 | 1,764 | |||||||||||||||
Portion of rentals representative of an interest factor | 488 | 489 | 493 | 431 | 536 | |||||||||||||||
Interest of capitalized lease | 622 | 1,618 | 1,787 | 3,972 | 1,545 | |||||||||||||||
Total fixed charges | $ | 85,103 | $ | 86,441 | $ | 101,157 | $ | 87,697 | $ | 86,816 | ||||||||||
Earnings from continuing operations before income taxes | $ | 229,791 | $ | 214,981 | $ | 212,244 | $ | 222,512 | $ | 126,463 | ||||||||||
Plus: total fixed charges from above | 85,103 | 86,441 | 101,157 | 87,697 | 86,816 | |||||||||||||||
Plus: amortization of capitalized interest | 204 | — | — | — | — | |||||||||||||||
Earnings from continuing operations before income taxes and fixed charges | $ | 315,098 | $ | 301,422 | $ | 313,401 | $ | 310,209 | $ | 213,279 | ||||||||||
Ratio of earnings to fixed charges | 3.70 | x | 3.49 | x | 3.10 | x | 3.54 | x | 2.46 | x |
CLECO CORPORATION | EXHIBIT 21 |
Subsidiaries of the Registrant as of December 31, 2013 |
SUBSIDIARIES OF REGISTRANT OR ORGANIZATION | STATE OF INCORPORATION | ||
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 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/ Deloitte & Touche LLP |
New Orleans, Louisiana |
February 25, 2014 |
CLECO POWER LLC | EXHIBIT 23(b) |
Consent of Independent Registered Public Accounting Firm |
/s/ Deloitte & Touche LLP |
New Orleans, Louisiana |
February 25, 2014 |
CLECO CORPORATION | EXHIBIT 23(c) |
Consent of Independent Registered Public Accounting Firm |
/s/ PricewaterhouseCoopers LLP |
New Orleans, Louisiana |
February 25, 2014 |
CLECO POWER LLC | EXHIBIT 23(d) |
Consent of Independent Registered Public Accounting Firm |
/s/ PricewaterhouseCoopers LLP |
New Orleans, Louisiana |
February 25, 2014 |
/s/ Vicky A. Bailey | |
Vicky A. Bailey |
/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 25, 2014 |
/s/ Bruce A. Williamson | |
Bruce A. Williamson President and Chief Executive Officer |
CLECO CORPORATION | EXHIBIT 31.2 |
Certification |
Date: | February 25, 2014 |
/s/ Thomas R. Miller | |
Thomas R. Miller Senior Vice President and Chief Financial Officer |
CLECO POWER LLC | EXHIBIT 31.3 |
Certification |
Date: | February 25, 2014 |
/s/ Bruce A. Williamson | |
Bruce A. Williamson Chief Executive Officer |
CLECO POWER LLC | EXHIBIT 31.4 |
Certification |
Date: | February 25, 2014 |
/s/ Thomas R. Miller | |
Thomas R. Miller Senior Vice President and 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, as amended; and |
(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 25, 2014 |
/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, as amended; and |
(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 25, 2014 |
/s/ Thomas R. Miller | |
Thomas R. Miller Senior Vice President and 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, as amended; and |
(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 25, 2014 |
/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, as amended; and |
(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 25, 2014 |
/s/ Thomas R. Miller | |
Thomas R. Miller Senior Vice President and Chief Financial Officer |
Debt (Tables)
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12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2013
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Total Indebtedness | Cleco Cleco’s total indebtedness as of December 31, 2013 and 2012 was as follows.
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Future Amounts Payable Under Long-Term Debt Agreements | The principal amounts payable under long-term debt agreements for each year through 2018 and thereafter are as follows.
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Future Amounts Payable Under Barge Capital Lease Agreements | The principal amounts payable under the capital lease agreements for each year through 2017 are as follows.
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Cleco Power [Member]
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Total Indebtedness | Cleco Power Cleco Power’s total indebtedness as of December 31, 2013 and 2012, was as follows.
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Future Amounts Payable Under Long-Term Debt Agreements | The principal amounts payable under long-term debt agreements for each year through 2018 and thereafter are as follows.
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Future Amounts Payable Under Barge Capital Lease Agreements | The principal amounts payable under the capital lease agreements for each year through 2017 are as follows.
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Intangible Asset (Tables)
|
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2013
|
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible Asset, Net | The following table summarizes the intangible asset balance as of December 31, 2013 and 2012.
|
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Expected Amortization Expense | The following table summarizes the amortization expense expected to be recognized during each year through 2018 and thereafter.
|
Schedule I Financial Statements of Cleco Corporation, Condensed Statements of Income (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2013
|
Sep. 30, 2013
|
Jun. 30, 2013
|
Mar. 31, 2013
|
Dec. 31, 2012
|
Sep. 30, 2012
|
Jun. 30, 2012
|
Mar. 31, 2012
|
Dec. 31, 2013
|
Dec. 31, 2012
|
Dec. 31, 2011
|
|
Operating expenses | |||||||||||
Operating income (loss) | $ 58,314 | $ 116,794 | $ 74,754 | $ 58,467 | $ 49,766 | $ 103,347 | $ 74,243 | $ 54,294 | $ 308,332 | $ 281,651 | $ 298,247 |
Other income | 13,857 | 29,117 | 8,914 | ||||||||
Other expense | (2,861) | (4,694) | (5,646) | ||||||||
Income before income taxes | 240,260 | 228,975 | 298,745 | ||||||||
Income tax benefit | 79,575 | 65,327 | 102,897 | ||||||||
Net income | 160,685 | 163,648 | 195,848 | ||||||||
Preferred dividends requirements | 0 | 0 | 26 | ||||||||
Preferred stock redemption costs | 0 | 0 | 112 | ||||||||
Net income applicable to common stock | 25,112 | 66,407 | 42,032 | 27,133 | 23,112 | 63,818 | 46,686 | 30,031 | 160,685 | 163,648 | 195,710 |
CLECO CORPORATION (Parent Company Only) [Member]
|
|||||||||||
Operating expenses | |||||||||||
Administrative and general | 2,501 | 1,154 | 1,184 | ||||||||
Other operating expense | 418 | 362 | 650 | ||||||||
Total operating expenses | 2,919 | 1,516 | 1,834 | ||||||||
Operating income (loss) | (2,919) | (1,516) | (1,834) | ||||||||
Equity income from subsidiaries, net of tax | 155,360 | 156,783 | 184,951 | ||||||||
Interest, net | (2,380) | (3,350) | (2,874) | ||||||||
Other income | 3,392 | 2,068 | 4,647 | ||||||||
Other expense | (38) | (13) | (2,230) | ||||||||
Income before income taxes | 153,415 | 153,972 | 182,660 | ||||||||
Income tax benefit | (7,270) | (9,676) | (13,188) | ||||||||
Net income | 160,685 | 163,648 | 195,848 | ||||||||
Preferred dividends requirements | 0 | 0 | 26 | ||||||||
Preferred stock redemption costs | 0 | 0 | 112 | ||||||||
Net income applicable to common stock | $ 160,685 | $ 163,648 | $ 195,710 |
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