

Note 16 — 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; public 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.

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 consolidated affiliates were eliminated in Cleco’s Consolidated Statements of Income for the years ending December 31, 2017, 2016, and 2015.

At December 31, 2017 Cleco Holdings had accounts receivable of $0.6 million due from Cleco Group for tax payments made on behalf of Cleco Group. At December 31, 2016, Cleco Holdings had accounts receivable of less than $0.1 million due from Cleco Group in relation to merger costs paid on behalf of Cleco Group. At December 31, 2017, and 2016, Cleco Holdings had no accounts payable due to Cleco Group.

During the successor year ended December 31, 2017, Cleco Holdings made $84.1 million of distribution payments to Cleco Group.

During the successor period April 13, 2016, through December 31, 2016, Cleco Holdings received $100.7 million of equity contributions from Cleco Group and made $88.8 million of distribution payments to Cleco Group.

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. Support Group provides joint and common administrative support services in the areas of information technology; finance, cash management, accounting, tax, and auditing; human resources; public 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.

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)	2017			2016		2015
Support Group
Other operations	$	48,533		$	46,116	$	53,079
Maintenance	$	2,039		$	2,255	$	1,807
Taxes other than income taxes	$	(13	)	$	10	$	(3	)
Other expense	255			106		403
Cleco Holdings
Other expense	361			—		—

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)	2017		2016		2015
Affiliate revenue
Support Group	$	851	$	884	$	1,142
Total affiliate revenue	$	851	$	884	$	1,142
Other income
Cleco Holdings	$	494	$	19	$	3
Diversified Lands	—		—		10
Perryville	—		6		—
Attala	—		6		—
Total other income	$	494	$	31	$	13
Total	$	1,345	$	915	$	1,155

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



	AT DEC. 31,
	2017				2016
(THOUSANDS)	ACCOUNTS RECEIVABLE		ACCOUNTS PAYABLE		ACCOUNTS RECEIVABLE		ACCOUNTS PAYABLE
Cleco Holdings	$	743	$	113	$	3	$	119
Support Group	608		8,582		1,402		7,071
Other⁽¹⁾	4		2		1		—
Total	$	1,355	$	8,697	$	1,406	$	7,190
⁽¹⁾ Represents Attala and Perryville in 2017 and Attala, Diversified Lands, and Perryville in 2016.

During 2017, 2016, and 2015, Cleco Power made $135.0 million, $110.0 million, and $135.0 million of distribution payments to Cleco Holdings, respectively. Cleco Power received no equity contributions from Cleco Holdings in 2017 and 2015. During 2016, Cleco Power received equity contributions from Cleco Holdings of $50.0 million cash.

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 2017 and 2016:

FOR THE YEAR ENDED DEC. 31,

(THOUSANDS)

Support Group