Fair Value Accounting (Tables)

9 Months Ended

Sep. 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 SEPT. 30, 2017				AT DEC. 31, 2016
(THOUSANDS)	CARRYING VALUE*		FAIR VALUE		CARRYING VALUE*		FAIR VALUE
Long-term debt	$	2,743,987	$	2,831,805	$	2,768,149	$	2,754,518

* The carrying value of long-term debt excludes deferred issuance costs of $11.2 million and $11.7 million at September 30, 2017, and December 31, 2016, respectively.

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 SEPT. 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	$	35,117	$	—	$	35,117	$	—	$	66,410	$	—	$	66,410	$	—
FTRs	13,425		—		—		13,425		7,884		—		—		7,884
Total assets	$	48,542	$	—	$	35,117	$	13,425	$	74,294	$	—	$	66,410	$	7,884
Liability description
FTRs	$	538	$	—	$	—	$	538	$	201	$	—	$	—	$	201
Total liabilities	$	538	$	—	$	—	$	538	$	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
(THOUSANDS)	FOR THE THREE MONTHS ENDED SEPT. 30, 2017			FOR THE THREE MONTHS ENDED SEPT. 30, 2016			FOR THE NINE MONTHS ENDED SEPT. 30, 2017			APR. 13, 2016 - SEPT. 30, 2016			JAN. 1, 2016 - APR. 12, 2016
Beginning balance	$	17,943		$	13,618		$	7,683		$	3,458		$	7,398
Unrealized gains (losses)*	1,591			1,840			(791		)	2,529			(1,031		)
Purchases	419			164			23,537			12,772			2,070
Settlements	(7,066		)	(6,046		)	(17,542		)	(9,183		)	(4,979		)
Ending balance	$	12,887		$	9,576		$	12,887		$	9,576		$	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 September 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 Sept. 30, 2017	$	13,425	$	538	RTO auction pricing	FTR price - per MWh	$	(3.07	)	$	5.87
FTRs at Dec. 31, 2016	$	7,884	$	201	RTO auction pricing	FTR price - per MWh	$	(3.61	)	$	6.04

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 September 30, 2017, and December 31, 2016:

	DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS
(THOUSANDS)	BALANCE SHEET LINE ITEM	AT SEPT. 30, 2017		AT DEC. 31, 2016
Commodity-related contracts
FTRs
Current	Energy risk management assets	$	13,425	$	7,884
Current	Energy risk management liabilities	538		201
Commodity-related contracts, net		$	12,887	$	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 nine months ended September 30, 2017, and 2016:

Cleco
		AMOUNT OF GAIN/(LOSS) RECOGNIZED IN INCOME ON DERIVATIVES
								SUCCESSOR						PREDECESSOR
(THOUSANDS)	DERIVATIVES LINE ITEM	FOR THE THREE MONTHS ENDED SEPT. 30, 2017			FOR THE THREE MONTHS ENDED SEPT. 30, 2016			FOR THE NINE MONTHS ENDED SEPT. 30, 2017			APR. 13, 2016 - SEPT. 30, 2016			JAN. 1, 2016 - APR. 12, 2016
Commodity contracts
FTRs(1)	Electric operations	$	14,062		$	9,718		$	35,172		$	23,467		$	8,563
FTRs(1)	Power purchased for utility customers	(7,767		)	(5,066		)	(18,759		)	(11,742		)	(5,761		)
Total		$	6,295		$	4,652		$	16,413		$	11,725		$	2,802

⁽¹⁾ For the three and nine months ended September 30, 2017, unrealized gains (losses) associated with FTRs not recognized in income on derivatives of $1.6 million and $(0.8) million, respectively, were reported through Accumulated deferred fuel on the balance sheet. For the periods July 1, 2016 - September 30, 2016, January 1, 2016 - April 12, 2016, and April 13, 2016 - September 30, 2016, unrealized (losses) gains associated with FTRs not recognized in income on derivatives of $1.8 million, $(1.0) million, and 2.5 million, respectively, were reported through Accumulated deferred fuel on the balance sheet.

Cleco Power [Member]

Fair Value [Line Items]

Fair Value By Balance Sheet Grouping

Cleco Power
	AT SEPT. 30, 2017				AT DEC. 31, 2016
(THOUSANDS)	CARRYING VALUE*		FAIR VALUE		CARRYING VALUE*		FAIR VALUE
Long-term debt	$	1,244,731	$	1,428,761	$	1,262,373	$	1,418,693

* The carrying value of long-term debt excludes deferred issuance costs of $8.6 million and $9.4 million at September 30, 2017, and December 31, 2016, respectively.

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 SEPT. 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	$	33,796	$	—	$	33,796	$	—	$	65,089	$	—	$	65,089	$	—
FTRs	13,425		—		—		13,425		7,884		—		—		7,884
Total assets	$	47,221	$	—	$	33,796	$	13,425	$	72,973	$	—	$	65,089	$	7,884
Liability description
FTRs	$	538	$	—	$	—	$	538	$	201	$	—	$	—	$	201
Total liabilities	$	538	$	—	$	—	$	538	$	201	$	—	$	—	$	201

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

Cleco Power
	FOR THE THREE MONTHS ENDED SEPT. 30,						FOR THE NINE MONTHS ENDED SEPT. 30,
(THOUSANDS)	2017			2016			2017			2016
Beginning balance	$	17,943		$	13,618		$	7,683		$	7,398
Unrealized gains (losses)*	1,591			1,840			(791		)	1,498
Purchases	419			164			23,537			14,842
Settlements	(7,066		)	(6,046		)	(17,542		)	(14,162		)
Ending balance	$	12,887		$	9,576		$	12,887		$	9,576
* Unrealized gains and losses are reported through Accumulated deferred fuel on Cleco Power’s Condensed Consolidated Balance Sheet.

Cleco Power [Member] | Derivatives Not Designated As Hedging Instrument

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 SEPT. 30,						FOR THE NINE MONTHS ENDED SEPT. 30,
(THOUSANDS)	DERIVATIVES LINE ITEM	2017			2016			2017			2016
Commodity contracts
FTRs(1)	Electric operations	$	14,062		$	9,718		$	35,172		$	32,030
FTRs(1)	Power purchased for utility customers	(7,767		)	(5,066		)	(18,759		)	(17,503		)
Total		$	6,295		$	4,652		$	16,413		$	14,527

⁽¹⁾ For the three and nine months ended September 30, 2017, unrealized gains (losses) associated with FTRs not recognized in income on derivatives of $1.6 million and $(0.8) million, respectively, were reported through Accumulated deferred fuel on the balance sheet. For the three and nine months ended September 30, 2016, unrealized gains associated with FTRs not recognized in income on derivatives of $1.8 million and $1.5 million, respectively, were reported through Accumulated deferred fuel on the balance sheet.