Fair Value Accounting (Tables)

6 Months Ended

Jun. 30, 2017

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 on Cleco and Cleco Power’s Condensed Consolidated Balance Sheets:

Cleco
	AT JUNE 30, 2017				AT DEC. 31, 2016
(THOUSANDS)	CARRYING VALUE*		FAIR VALUE		CARRYING VALUE*		FAIR VALUE
Long-term debt	$	2,754,856	$	2,825,484	$	2,768,149	$	2,754,518

* The carrying value of long-term debt does not include deferred issuance costs of $11.4 million at

June 30, 2017, and $11.7 million at December 31, 2016.

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 on a recurring basis:

Cleco
	CLECO CONSOLIDATED FAIR VALUE MEASUREMENTS AT REPORTING DATE USING:
(THOUSANDS)	AT JUNE 30, 2017		QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1)		SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2)		SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3)		AT DEC. 31, 2016		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	$	47,209	$	—	$	47,209	$	—	$	66,410	$	—	$	66,410	$	—
FTRs	18,245		—		—		18,245		7,884		—		—		7,884
Total assets	$	65,454	$	—	$	47,209	$	18,245	$	74,294	$	—	$	66,410	$	7,884
Liability description
FTRs	302		—		—		302		201		—		—		201
Total liabilities	$	302	$	—	$	—	$	302	$	201	$	—	$	—	$	201

Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation

The following tables summarize the net changes in the net fair value of FTR assets and liabilities classified as Level 3 in the fair value hierarchy for Cleco and Cleco Power:

Cleco
	SUCCESSOR						PREDECESSOR			SUCCESSOR						PREDECESSOR
(THOUSANDS)	FOR THE THREE MONTHS ENDED JUNE 30, 2017			APR. 13, 2016 - JUNE 30, 2016			APR. 1, 2016 - APR. 12, 2016			FOR THE SIX MONTHS ENDED JUNE 30, 2017			APR. 13, 2016 - JUNE 30, 2016			JAN. 1, 2016 - APR. 12, 2016
Beginning balance	$	4,418		$	3,458		$	1,866		$	7,683		$	3,458		$	7,398
Unrealized (losses) gains*	(2,460		)	1,234			(199		)	(2,460		)	1,234			(1,031		)
Purchases	22,843			12,608			2,024			23,118			12,608			2,070
Settlements	(6,858		)	(3,682		)	(233		)	(10,398		)	(3,682		)	(4,979		)
Ending balance	$	17,943		$	13,618		$	3,458		$	17,943		$	13,618		$	3,458
* Unrealized gains and losses are reported through Accumulated deferred fuel on Cleco’s Condensed Consolidated 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 as of June 30, 2017, and December 31, 2016:

	FAIR VALUE				VALUATION TECHNIQUE	SIGNIFICANT UNOBSERVABLE INPUTS	FORWARD PRICE RANGE
(THOUSANDS, EXCEPT FORWARD PRICE RANGE)	ASSETS		LIABILITIES				LOW			HIGH
FTRs at June 30, 2017	$	18,245	$	302	RTO auction pricing	FTR price - per MWh	$	(3.28	)	$	6.30
FTRs at Dec. 31, 2016	$	7,884	$	201	RTO auction pricing	FTR price - per MWh	$	(3.61	)	$	6.04

Cleco Power

Fair Value [Line Items]

Fair Value By Balance Sheet Grouping

Cleco Power
	AT JUNE 30, 2017				AT DEC. 31, 2016
(THOUSANDS)	CARRYING VALUE*		FAIR VALUE		CARRYING VALUE*		FAIR VALUE
Long-term debt	$	1,253,488	$	1,431,576	$	1,262,373	$	1,418,693

* The carrying value of long-term debt does not include deferred issuance costs of $8.6 million at

June 30, 2017, and $9.4 million at December 31, 2016.

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 JUNE 30, 2017		QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1)		SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2)		SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3)		AT DEC. 31, 2016		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	$	40,788	$	—	$	40,788	$	—	$	65,089	$	—	$	65,089	$	—
FTRs	18,245		—		—		18,245		7,884		—		—		7,884
Total assets	$	59,033	$	—	$	40,788	$	18,245	$	72,973	$	—	$	65,089	$	7,884
Liability description
FTRs	302		—		—		302		201		—		—		201
Total liabilities	$	302	$	—	$	—	$	302	$	201	$	—	$	—	$	201

Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation

Cleco Power
	FOR THE THREE MONTHS ENDED JUNE 30,						FOR THE SIX MONTHS ENDED JUNE 30,
(THOUSANDS)	2017			2016			2017			2016
Beginning balance	$	4,418		$	1,866		$	7,683		$	7,398
Unrealized (losses) gains*	(2,460		)	1,035			(2,460		)	203
Purchases	22,843			14,632			23,118			14,678
Settlements	(6,858		)	(3,915		)	(10,398		)	(8,661		)
Ending balance	$	17,943		$	13,618		$	17,943		$	13,618
* Unrealized gains and losses are reported through Accumulated deferred fuel on Cleco Power’s Condensed Consolidated Balance Sheet.

Derivatives Not Designated As Hedging Instrument

Fair Value [Line Items]

Fair Value of Derivative Instruments in Statement of Financial Position

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 June 30, 2017, and December 31, 2016:

	DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS
(THOUSANDS)	BALANCE SHEET LINE ITEM	AT JUNE 30, 2017		AT DEC. 31, 2016
Commodity-related contracts
FTRs
Current	Energy risk management assets	$	18,245	$	7,884
Current	Energy risk management liabilities	302		201
Commodity-related contracts, net		$	17,943	$	7,683

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 six months ended June 30, 2017, and 2016:

Cleco
		AMOUNT OF GAIN/(LOSS) RECOGNIZED IN INCOME ON DERIVATIVES
		SUCCESSOR						PREDECESSOR			SUCCESSOR						PREDECESSOR
(THOUSANDS)	DERIVATIVES LINE ITEM	FOR THE THREE MONTHS ENDED JUNE 30, 2017			APR. 13, 2016 - JUNE 30, 2016			APR. 1, 2016 - APR. 12, 2016			FOR THE SIX MONTHS ENDED JUNE 30, 2017			APR. 13, 2016 - JUNE 30, 2016			JAN. 1, 2016 - APR. 12, 2016
Commodity contracts
FTRs(1)	Electric operations	$	11,947		$	6,879		$	43		$	21,110		$	6,879		$	8,563
FTRs(1)	Power purchased for utility customers	(6,327		)	(303		)	(38		)	(10,992		)	(303		)	(5,761		)
Total		$	5,620		$	6,576		$	5		$	10,118		$	6,576		$	2,802

⁽¹⁾ For the three and six months ended June 30, 2017, unrealized losses associated with FTRs not recognized in income on derivatives of $2.5 million were reported through Accumulated deferred fuel on the balance sheet. For the periods April 1, 2016 - April 12, 2016, January 1, 2016 - April 12, 2016, and April 13, 2016 - June 30, 2016, unrealized (losses) gains associated with FTRs not recognized in income on derivatives of $(0.2) million, $(1.0) million, and 1.2 million, respectively, were reported through Accumulated deferred fuel on the balance sheet.

Derivatives Not Designated As Hedging Instrument | Cleco Power

Fair Value [Line Items]

Effect of Derivatives On Consolidated Statements of Income

Cleco Power
		AMOUNT OF GAIN/(LOSS) RECOGNIZED IN INCOME ON DERIVATIVES
		FOR THE THREE MONTHS ENDED JUNE 30,						FOR THE SIX MONTHS ENDED JUNE 30,
(THOUSANDS)	DERIVATIVES LINE ITEM	2017			2016			2017			2016
Commodity contracts
FTRs(1)	Electric operations	$	11,947		$	6,922		$	21,110		$	15,442
FTRs(1)	Power purchased for utility customers	(6,327		)	(341		)	(10,992		)	(6,064		)
Total		$	5,620		$	6,581		$	10,118		$	9,378

⁽¹⁾ For the three and six months ended June 30, 2017, unrealized losses associated with FTRs not recognized in income on derivatives of $2.5 million were reported through Accumulated deferred fuel on the balance sheet. For the three and six months ended June 30, 2016, unrealized gains associated with FTRs not recognized in income on derivatives of $1.0 million and $0.2 million, respectively, were reported through Accumulated deferred fuel on the balance sheet.