Intangible Asset

12 Months Ended

Dec. 31, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Asset

Note 16 — Intangible Asset

During 2008, Cleco Katrina/Rita acquired a $177.5 million intangible asset which includes $176.0 million for the right to bill and collect storm recovery charges from customers of

Cleco Power and $1.5 million of financing costs. This intangible asset is expected to have a life of 12 years, but may have a life of up to 15 years depending on the time period required to collect the required amount from Cleco Power’s customers. The intangible asset’s expected amortization expense is based on the estimated collections from Cleco Power’s customers. At the end of its life, the asset will have no residual value. During the years ended December 31, 2014, 2013, and 2012, Cleco Katrina/Rita recognized amortization expense of $15.4 million, $14.5 million, and $13.1 million, respectively, based on actual collections.

The following table summarizes the intangible asset balance as of December 31, 2014 and 2013:

	AT DEC. 31,
(THOUSANDS)	2014		2013
Gross carrying amount	$	177,537	$	177,537
Accumulated amortization	86,895		71,530
Intangible asset	$	90,642	$	106,007

The following table summarizes the amortization expense expected to be recognized during each year through 2019 and thereafter:

YEAR ENDING DEC. 31,	(THOUSANDS)
Expected amortization expense
2015	$	15,876
2016	$	16,864
2017	$	18,009
2018	$	19,312
2019	$	20,581