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Variable Interest Entities
3 Months Ended
Mar. 31, 2016
Variable Interest Entity, Not Primary Beneficiary, Disclosures [Abstract]  
Variable Interest Entities
Note 10 — Variable Interest Entities
Cleco and Cleco Power apply the equity method of accounting to report the investment in Oxbow. Under the equity method, the assets and liabilities of this entity are reported as Equity investment in investee on Cleco and Cleco Power’s Condensed Consolidated Balance Sheets. The revenue and expenses (excluding income taxes) of this entity are netted and reported as Equity income or loss from investees on Cleco and Cleco Power’s Condensed Consolidated Statements of Income.
Equity investment in investee at March 31, 2016, represents Cleco Power’s $19.3 million investment in Oxbow. Oxbow is owned 50% by Cleco Power and 50% by SWEPCO and is accounted for as an equity method investment. Cleco Power is not the primary beneficiary because it shares the power to control Oxbow’s significant activities with SWEPCO. Cleco Power’s current assessment of its maximum exposure to loss related to Oxbow at March 31, 2016, consisted of its equity investment of $19.3 million. During the three months ended March 31, 2016, Cleco Power made $2.5 million of cash contributions to its equity investment in Oxbow as a result of the expected transition from the Dolet Hills mine to the Oxbow mine by May 2017. The following table presents the components of Cleco Power’s equity investment in Oxbow:
INCEPTION TO DATE (THOUSANDS)
AT MAR. 31, 2016

 
AT DEC. 31, 2015

Purchase price
$
12,873

 
$
12,873

Cash contributions
6,399

 
3,949

Total equity investment in investee
$
19,272

 
$
16,822



The following table compares the carrying amount of Oxbow’s assets and liabilities with Cleco Power’s maximum exposure to loss related to its investment in Oxbow:
(THOUSANDS)
AT MAR. 31, 2016

 
AT DEC. 31, 2015

Oxbow’s net assets/liabilities
$
38,544

 
$
33,645

Cleco Power’s 50% equity
$
19,272

 
$
16,822

Cleco Power’s maximum exposure to loss
$
19,272

 
$
16,822


  
The following tables contain summarized financial information for Oxbow:
(THOUSANDS)
AT MAR. 31, 2016

 
AT DEC. 31, 2015

Current assets
$
1,984

 
$
2,794

Property, plant, and equipment, net
25,898

 
23,749

Other assets
11,493

 
7,220

Total assets
$
39,375

 
$
33,763

Current liabilities
$
831

 
$
118

Partners’ capital
38,544

 
33,645

Total liabilities and partners’ capital
$
39,375

 
$
33,763

   
 
FOR THE THREE MONTHS ENDED MAR. 31,
 
(THOUSANDS)
2016

 
2015

Operating revenue
$
2,101

 
$
854

Operating expenses
2,101

 
854

Income before taxes
$

 
$


  
Oxbow’s property, plant, and equipment, net consists of land and lignite reserves. The lignite reserves are intended to be used to provide fuel to the Dolet Hills Power Station. DHLC mines the lignite reserves at Oxbow through the Amended Lignite Mining Agreement.
Oxbow has no third-party agreements, guarantees, or other third-party commitments that contain obligations affecting Cleco Power’s investment in Oxbow.