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Fair Value Accounting (Tables)
 9 Months Ended
Sep. 30, 2014
Fair Value [Line Items]  
Fair Value By Balance Sheet Grouping
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 Condensed Consolidated Balance Sheets.
Cleco
 
 
 
 
 
 
 
 
AT SEPT. 30, 2014
 
 
AT DEC. 31, 2013
 
(THOUSANDS)
CARRYING
VALUE

 
ESTIMATED
FAIR VALUE

 
CARRYING
VALUE

 
ESTIMATED
FAIR VALUE

Financial instruments not marked-to-market:
 
 
 
 
 
 
 
Cash equivalents
$
4,400

 
$
4,400

 
$
22,204

 
$
22,204

Restricted cash equivalents
$
18,802

 
$
18,802

 
$
14,019

 
$
14,019

Long-term debt, excluding debt issuance costs
$
1,338,354

 
$
1,534,758

 
$
1,331,230

 
$
1,420,048
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 SEPT. 30, 2014

 
QUOTED PRICES IN
ACTIVE MARKETS
FOR IDENTICAL
ASSETS
(LEVEL 1)

 
SIGNIFICANT
OTHER
OBSERVABLE
INPUTS
(LEVEL 2)

 
SIGNIFICANT
UNOBSERVABLE
INPUTS
(LEVEL 3)

 
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
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Institutional money market funds
$
23,202

 
$
—

 
$
23,202

 
$
—

 
$
36,100

 
$
—

 
$
36,100

 
$
—

Commercial paper
—

 
—

 
—

 
—

 
1,483

 
—

 
1,483

 
—

Municipal bonds
—

 
—

 
—

 
—

 
9,831

 
—

 
9,831

 
—

Corporate bonds
—

 
—

 
—

 
—

 
515

 
—

 
515

 
—

Federal agency mortgage-backed securities
—

 
—

 
—

 
—

 
1,000

 
—

 
1,000

 
—

FTRs
18,504

 
—

 
—

 
18,504

 
9,020

 
—

 
—

 
9,020

Total assets
$
41,706

 
$
—

 
$
23,202

 
$
18,504

 
$
57,949

 
$
—

 
$
48,929

 
$
9,020

Liability Description
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Long-term debt
$
1,534,758

 
$
—

 
$
1,534,758

 
$
—

 
$
1,420,048

 
$
—

 
$
1,420,048

 
$
—

FTRs
1,732

 
—

 
—

 
1,732

 
382

 
—

 
—

 
382

Total liabilities
$
1,536,490

 
$
—

 
$
1,534,758

 
$
1,732

 
$
1,420,430

 
$
—

 
$
1,420,048

 
$
382
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 Condensed Consolidated Statements of Income for the three and nine months ended September 30, 2014 and 2013.
 
FOR THE THREE MONTHS ENDED SEPT. 30,
 
 
2014
 
 
2013
 
(THOUSANDS)
AMOUNT
OF GAIN
RECOGNIZED
IN OCI

 
AMOUNT OF LOSS
RECLASSIFIED FROM
ACCUMULATED OCI
INTO INCOME
(EFFECTIVE PORTION)

 
AMOUNT
OF GAIN
RECOGNIZED
IN OCI

 
AMOUNT OF LOSS
RECLASSIFIED FROM
ACCUMULATED OCI
INTO INCOME
(EFFECTIVE PORTION)

Interest rate
  derivatives (1)
$
—

 
$
(86
)*
 
$
—

 
$
(86
)*

* The loss reclassified from accumulated OCI into income (effective portion) is reflected in interest charges.
(1) During the three months ended September 30, 2014 and 2013, Cleco had no ineffectiveness and losses related to the interest rate derivatives as a regulatory asset.
 
FOR THE NINE MONTHS ENDED SEPT. 30,
 
 
2014
 
 
2013
 
(THOUSANDS)
AMOUNT
OF GAIN
RECOGNIZED
IN OCI

 
AMOUNT OF LOSS
RECLASSIFIED FROM
ACCUMULATED OCI
INTO INCOME
(EFFECTIVE PORTION)

 
AMOUNT
OF GAIN
RECOGNIZED
IN OCI

 
AMOUNT OF LOSS
RECLASSIFIED FROM
ACCUMULATED OCI
INTO INCOME
(EFFECTIVE PORTION)

Interest rate
  derivatives (1)
$
—

 
$
(258
)*
 
$
1,762

 
$
(165
)*
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation
The following tables summarize the net changes in the fair value of FTR assets and liabilities classified as Level 3 in the fair value hierarchy:
(THOUSANDS)
 
Beginning balance at July 1, 2014
$
42,972

Unrealized losses*
(6,190
)
Purchases and settlements
(20,010
)
Ending balance at Sept. 30, 2014
$
16,772

* Unrealized gains and losses are reported in Accumulated deferred fuel on the balance sheet.

(THOUSANDS)
 
Beginning balance at January 1, 2014
$
8,638

Unrealized losses*
(9,610
)
Purchases and settlements
17,744

Ending balance at Sept. 30, 2014
$
16,772

* Unrealized gains and losses are reported in Accumulated deferred fuel on the balance sheet.
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques
The following table quantifies the significant unobservable inputs used in developing the fair value of Level 3 positions at September 30, 2014 and December 31, 2013:

 
FAIR VALUE
 
 
VALUATION TECHNIQUE
 
SIGNIFICANT
UNOBSERVABLE INPUTS
 
FORWARD PRICE RANGE
 
(THOUSANDS, EXCEPT FORWARD PRICE RANGE)
Assets

 
Liabilities

 
 
 
 
 
Low

 
High

 
 
 
 
 
 
 
 
 
 
 
 
FTRs at Sept. 30, 2014
$
18,504

 
$
1,732

 
Discounted cash flow
 
Estimated auction price
 
$
(5.73
)
 
$
5.62

FTRs at Dec. 31, 2013
$
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 SEPT. 30, 2014
 
 
AT DEC. 31, 2013
 
(THOUSANDS)
CARRYING
VALUE

 
ESTIMATED
FAIR VALUE

 
CARRYING
VALUE

 
ESTIMATED
FAIR VALUE

Financial instruments not marked-to-market:
 
 
 
 
 
 
 
Cash equivalents
$
1,000

 
$
1,000

 
$
14,900

 
$
14,900

Restricted cash equivalents
$
18,781

 
$
18,781

 
$
13,998

 
$
13,998

Long-term debt, excluding debt issuance costs
$
1,301,354

 
$
1,497,758

 
$
1,326,230

 
$
1,415,048
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:


 
AT DEC. 31, 2013
 
(THOUSANDS)
AMORTIZED
COST

 
TOTAL
UNREALIZED GAINS (1)

 
TOTAL
UNREALIZED
LOSSES (1)

 
FAIR VALUE

Municipal bonds
$
9,838

 
$
8

 
$
(15
)
 
$
9,831

Corporate bonds
513

 
2

 
—

 
515

Federal agency mortgage-backed securities
1,000

 
—

 
—

 
1,000

Commercial paper
1,483

 
—

 
—

 
1,483

    Total available-for-sale debt securities
$
12,834

 
$
10

 
$
(15
)
 
$
12,829

(1)  Unrealized gains and losses were recorded to the restricted storm reserve.
 
 
 
 
 
 
 
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 SEPT. 30, 2014

 
QUOTED PRICES IN
ACTIVE MARKETS
FOR IDENTICAL
ASSETS
(LEVEL 1)

 
SIGNIFICANT
OTHER
OBSERVABLE
INPUTS
(LEVEL 2)

 
SIGNIFICANT
UNOBSERVABLE
INPUTS
(LEVEL 3)

 
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
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Institutional money market funds
$
19,781

 
$
—

 
$
19,781

 
$
—

 
$
28,775

 
$
—

 
$
28,775

 
$
—

Commercial paper
—

 
—

 
—

 
—

 
1,483

 
—

 
1,483

 
—

Municipal bonds
—

 
—

 
—

 
—

 
9,831

 
—

 
9,831

 
—

Corporate bonds
—

 
—

 
—

 
—

 
515

 
—

 
515

 
—

Federal agency mortgage-backed securities
—

 
—

 
—

 
—

 
1,000

 
—

 
1,000

 
—

FTRs
18,504

 
—

 
—

 
18,504

 
9,020

 
—

 
—

 
9,020

Total assets
$
38,285

 
$
—

 
$
19,781

 
$
18,504

 
$
50,624

 
$
—

 
$
41,604

 
$
9,020

Liability Description
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Long-term debt
$
1,497,758

 
$
—

 
$
1,497,758

 
$
—

 
$
1,415,048

 
$
—

 
$
1,415,048

 
$
—

FTRs
1,732

 
—

 
—

 
1,732

 
382

 
—

 
—

 
382

Total liabilities
$
1,499,490

 
$
—

 
$
1,497,758

 
$
1,732

 
$
1,415,430

 
$
—

 
$
1,415,048

 
$
382
Not Designated as Hedging Instrument [Member]
  
Fair Value [Line Items]  
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value
The following table presents the fair values of derivative instruments and their respective line items as recorded on Cleco and Cleco Power’s Condensed Consolidated Balance Sheets at September 30, 2014 and December 31, 2013:
 
DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS
 
(THOUSANDS)
BALANCE SHEET LINE ITEM
 
AT SEPT. 30, 2014

 
AT DEC. 31, 2013

Commodity contracts
 
 
 
 
FTRs:
 
 
 
 
 
Current
Energy risk management assets
 
$
18,504

 
$
9,020

Current
Energy risk management liabilities
 
1,732

 
382

Total
 
 
$
16,772

 
$
8,638
Effect of Derivatives On Consolidated Statements of Income
The following tables present the effect of derivatives not designated as hedging instruments on Cleco and Cleco Power’s Condensed Consolidated Statements of Income for the three and nine months ended September 30, 2014:
 
FOR THE THREE MONTHS ENDED SEPT. 30, 2014
 
(THOUSANDS)
DERIVATIVES LINE ITEM
 
AMOUNT OF GAIN/(LOSS)
RECOGNIZED IN INCOME ON DERIVATIVES

Commodity contracts
 
 
 
FTRs
Electric operations
 
$
27,618

FTRs
Power purchased for utility customers
 
(20,122
)
Total
 
 
$
7,496


 
FOR THE NINE MONTHS ENDED SEPT. 30, 2014
 
(THOUSANDS)
DERIVATIVES LINE ITEM
 
AMOUNT OF GAIN/(LOSS)
RECOGNIZED IN INCOME ON DERIVATIVES

Commodity contracts
 
 
 
FTRs
Electric operations
 
$
52,946

FTRs
Power purchased for utility customers
 
(30,871
)
Total
 
 
$
22,075