

Note 15 — Affiliate Transactions

Cleco

Cleco has entered into service agreements with affiliates to receive and to provide goods and professional services. Goods and services received by Cleco primarily involve services provided by Support Group. Support Group provides joint and common administrative support services in the areas of information technology; finance, cash management, accounting and auditing; human resources; investor relations; project consulting; risk management; strategic and corporate development; legal, ethics and regulatory compliance; facilities management; supply chain and inventory management and other administrative services. During 2013 and 2012, Midstream provided electric power plant operations and maintenance expertise.

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

In accordance with authoritative guidance, all charges from affiliates were eliminated in Cleco’s Consolidated Statements of Income for the years ending December 31, 2013, 2012, and 2011. All affiliate revenue was eliminated in Cleco’s Consolidated Statement of Income for the year ended December 31, 2013 and 2012. For the year ended December 31, 2011, Cleco had $0.2 million of affiliate revenue from Acadia included in its Consolidated Statement of Income.

At December 31, 2013 and 2012, Cleco had no affiliate balances that were payable to or receivable from its non-consolidated affiliates.

Cleco Power

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

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



	FOR THE YEAR ENDED DEC. 31,
(THOUSANDS)	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

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

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



	FOR THE YEAR ENDED DEC. 31,
(THOUSANDS)	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

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



					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

During 2013, 2012, and 2011, Cleco Power made $105.0 million, $58.0 million, and $130.0 million of distribution payments to Cleco Corporation, respectively. Cleco Power received no equity contributions from Cleco Corporation in 2013, 2012, and 2011.

Affiliates that participate in the defined benefit pension plan sponsored by Cleco Power transfer their liability and an equal amount of cash on a periodic basis to Cleco Power. The following table shows the amounts transferred by affiliates during 2013 and 2012.



	FOR THE YEAR ENDED DEC. 31,
(THOUSANDS)	2013		2012
Support Group	$	2,193	$	1,881
Midstream	288		280
Total	$	2,481	$	2,161