

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, tax, 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. In March, 2014, Coughlin was transferred to Cleco Power. Until the transfer in 2014, 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.

All charges and revenues from affiliates were eliminated in Cleco’s Consolidated Statements of Income for the years ending December 31, 2015, 2014, and 2013.

At December 31, 2015, and 2014, 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. In March 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, tax, 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)	2015			2014			2013
Support Group
Other operations	$	53,079		$	50,801		$	48,694
Maintenance	$	1,807		$	2,091		$	1,263
Taxes other than income taxes	$	(3	)	$	(9	)	$	(6	)
Other expenses	$	403		$	339		$	306
Evangeline
Purchased power expense	$	—		$	5,467		$	31,670
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)	2015		2014		2013
Affiliate revenue
Support Group	$	1,142	$	1,322	$	1,318
Evangeline	—		4		20
Total affiliate revenue	$	1,142	$	1,326	$	1,338
Other income
Cleco Corporation	$	3	$	30	$	26
Support Group	—		10		—
Evangeline	—		9		68
Diversified Lands	10		14		45
Perryville	—		5		10
Attala	—		5		8
Total other income	$	13	$	73	$	157
Total	$	1,155	$	1,399	$	1,495

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



					AT DEC. 31,
			2015				2014
(THOUSANDS)	ACCOUNTS RECEIVABLE		ACCOUNTS PAYABLE		ACCOUNTS RECEIVABLE		ACCOUNTS PAYABLE
Cleco Corporation	$	653	$	564	$	22,994	$	525
Support Group	1,254		6,034		626		7,235
Other⁽¹⁾	1		—		1		—
Total	$	1,908	$	6,598	$	23,621	$	7,760
⁽¹⁾ Represents Attala, Diversified Lands, and Perryville for 2015
⁽¹⁾ Represents Attala, Diversified Lands, Midstream, and Perryville for 2014

The decrease in affiliate accounts receivable from Cleco Corporation is the result of a partial utilization of Cleco Corporation’s net operating loss due to Cleco Power’s estimated taxable income exceeding its net operating loss carryforward.

During 2015, 2014, and 2013, Cleco Power made $135.0 million, $115.0 million, and $105.0 million of distribution payments to Cleco Corporation, respectively. Cleco Power received no equity contributions from Cleco Corporation in 2015. During 2014, Cleco Power received a $138.1 million non-cash equity contribution from Cleco Corporation relating to the transfer of Coughlin. Cleco Power received no equity contributions from Cleco Corporation in 2013.

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 2015 and 2014:



	FOR THE YEAR ENDED DEC. 31,
(THOUSANDS)	2015		2014
Support Group	$	2,055	$	1,638
Midstream	—		49
Total	$	2,055	$	1,687