

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. On March 15, 2014, Coughlin was transferred to Cleco Power. Until the transfer in 2014, all of 2013, and 2012, Midstream provided electric power plant operations and maintenance expertise, primarily to Evangeline.

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, 2014, 2013, and 2012. All affiliate revenue was eliminated in Cleco’s Consolidated Statement of Income for the year ended December 31, 2014, 2013, and 2012.

At December 31, 2014 and 2013, 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. On March 15, 2014, Coughlin was transferred to Cleco Power. Prior to the transfer, charges from affiliates also included 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 transfer of Coughlin, see Note 17 — “Coughlin Transfer.”

With the exception of Support Group, affiliates 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)	2014			2013			2012
Support Group
Other operations	$	50,801		$	48,694		$	43,171
Maintenance	$	2,091		$	1,263		$	1,437
Taxes other than income taxes	$	(9	)	$	(6	)	$	(54	)
Other expenses	$	339		$	306		$	932
Evangeline
Purchased power expense	$	5,467		$	31,670		$	25,559
Other expenses	$	—		$	42		$	—
Diversified Lands
Other expenses	$	—		$	3		$	—

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)	2014		2013		2012
Affiliate revenue
Support Group	$	1,322	$	1,318	$	1,335
Midstream	—		—		14
Evangeline	4		20		23
Total affiliate revenue	$	1,326	$	1,338	$	1,372
Other income
Cleco Corporation	$	30	$	26	$	—
Support Group	10		—		—
Evangeline	9		68		11
Diversified Lands	14		45		17
Perryville	5		10		6
Attala	5		8		6
Total other income	$	73	$	157	$	40
Total	$	1,399	$	1,495	$	1,412

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



					AT DEC. 31,
			2014				2013
(THOUSANDS)	ACCOUNTS RECEIVABLE		ACCOUNTS PAYABLE		ACCOUNTS RECEIVABLE		ACCOUNTS PAYABLE
Cleco Corporation	$	22,994	$	525	$	379	$	389
Support Group	626		7,235		634		5,972
Evangeline	—		—		4		2,024
Other⁽¹⁾	1		—		28		1
Total	$	23,621	$	7,760	$	1,045	$	8,386
⁽¹⁾ Represents Attala, Diversified Lands, Midstream, and Perryville

The increase in the accounts receivable from Cleco Corporation is the result of net settlements with taxing authorities. This receivable will be netted against future income tax payments that Cleco Corporation will pay on behalf of Cleco Power.

During 2014, 2013, and 2012, Cleco Power made $115.0 million, $105.0 million, and $58.0 million of distribution payments to Cleco Corporation, respectively. During 2014, Cleco Power received $138.1 million in non-cash equity contributions from Cleco Corporation relating to the transfer of Coughlin. Cleco Power received no equity contributions from Cleco Corporation in 2013 and 2012.

Cleco Power is the pension plan sponsor and the related trust holds the assets. The net unfunded status of the pension plan is reflected at Cleco Power. The liability of Cleco Power’s affiliates is transferred with a like amount of assets to Cleco Power monthly. The following table shows the expense of the pension plan related to Cleco Power’s affiliates for the years ended 2014 and 2013:



	FOR THE YEAR ENDED DEC. 31,
(THOUSANDS)	2014		2013
Support Group	$	1,638	$	2,193
Midstream	49		288
Total	$	1,687	$	2,481