XML 160 R38.htm IDEA: XBRL DOCUMENT

Fair Value Accounting (Tables)

12 Months Ended

Dec. 31, 2013

The following tables summarize the carrying value and estimated market value of Cleco and Cleco Power’s financial instruments not measured at fair value in Cleco and Cleco Power’s Consolidated Balance Sheets.



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

Schedule of Available-for-sale Securities Reconciliation

The following table provides a reconciliation of Cleco Power’s available-for-sale debt securities from amortized cost to fair value at December 31, 2013 and December 31, 2012.



	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

⁽¹⁾ Unrealized gains and losses are recorded to the restricted storm reserve.

Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value

The following table summarizes the debt securities that were in an unrealized loss position at December 31, 2013, but for which no other-than-temporary impairment was recognized.



	LESS THAN 12 MONTHS				12 MONTHS OR LONGER
(THOUSANDS)	AGGREGATE UNREALIZED LOSS		AGGREGATE RELATED FAIR VALUE		AGGREGATE UNREALIZED LOSS		AGGREGATE RELATED FAIR VALUE
Municipal bonds	$	9	$	3,156	$	6	$	2,622

Available-for-sale Securities

At December 31, 2013, the fair value of Cleco Power’s available-for-sale debt securities by contractual maturity was:



(THOUSANDS)	AT DEC. 31, 2013
One year or less	$	5,702
Over one year through five years	7,127
Total fair value	$	12,829

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

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



Cleco
	CLECO CONSOLIDATED FAIR VALUE MEASUREMENTS AT REPORTING DATE USING:
(THOUSANDS)	AT DEC. 31, 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	$	—

Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]

The following table quantifies the significant unobservable inputs used in developing the fair value of Level 3 positions as of December 31, 2013.



(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 Power [Member]

Fair Value [Line Items]

Fair Value By Balance Sheet Grouping



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

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



Cleco Power
	CLECO POWER FAIR VALUE MEASUREMENTS AT REPORTING DATE USING:
(THOUSANDS)	AT DEC. 31, 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	$	—

Not Designated as Hedging Instrument [Member]

Fair Value [Line Items]

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block]

The following table presents the fair values of derivative instruments and their respective line items as recorded on Cleco and Cleco Power’s Consolidated Balance Sheets as of December 31, 2013 and 2012:



	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	$	—

Effect of Derivatives On Consolidated Statements of Income

The following table presents the effect of derivatives not designated as hedging instruments on Cleco and Cleco Power’s Consolidated Statements of Income for the years December 31, 2013, 2012, and 2011.



					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	)

⁽¹⁾In accordance with the authoritative guidance for regulated operations, no unrealized losses and no deferred losses associated with fuel cost hedges are reported in Accumulated deferred fuel on the balance sheet as of December 31, 2013, and no unrealized losses and no deferred losses as of December 31, 2012, and $5.3 million of unrealized losses and $1.2 million of deferred losses associated with fuel costs hedges as of December 31, 2011. As gains and losses are realized in future periods, they will be recorded as Fuel used for electric generation on the income statement.

⁽²⁾ At December 31, 2013, $8.6 million unrealized gains associated with FTRs were reported in Accumulated deferred fuel on the balance sheet.

Designated as Hedging Instrument [Member]

Fair Value [Line Items]

Effect of Derivatives On Consolidated Statements of Income

The following table presents the effect of derivatives designated as hedging instruments on Cleco and Cleco Power’s Consolidated Statements of Income for the years ended December 31, 2013, 2012, and 2011.



											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	*

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

- Definition

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

+ References+ Details

- Definition

Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities.

+ References+ Details