Fair Value Accounting (Tables)

3 Months Ended

Mar. 31, 2018

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 MAR. 31, 2018				AT DEC. 31, 2017
(THOUSANDS)	CARRYING VALUE*		FAIR VALUE		CARRYING VALUE*		FAIR VALUE
Long-term debt	$	2,905,222	$	2,924,772	$	2,866,955	$	2,921,325

* The carrying value of long-term debt does not include deferred issuance costs of $11.3 million and $11.6 million at March 31, 2018, and December 31, 2017, 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
(THOUSANDS)	AT MAR. 31, 2018		QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1)		SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2)		SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3)		AT DEC. 31, 2017		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	$	198,446	$	—	$	198,446	$	—	$	144,302	$	—	$	144,302	$	—
FTRs	4,828		—		—		4,828		7,396		—		—		7,396
Total assets	$	203,274	$	—	$	198,446	$	4,828	$	151,698	$	—	$	144,302	$	7,396
Liability description
FTRs	$	545	$	—	$	—	$	545	$	352	$	—	$	—	$	352
Total liabilities	$	545	$	—	$	—	$	545	$	352	$	—	$	—	$	352

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

The following table summarizes 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:

	FOR THE THREE MONTHS ENDED MAR. 31,
(THOUSANDS)	2018			2017
Beginning balance	$	7,044		$	7,683
Unrealized gains*	1,617			2,104
Purchases	371			275
Settlements	(4,749		)	(5,644		)
Ending balance	$	4,283		$	4,418
* Unrealized gains and losses are reported through Accumulated deferred fuel on Cleco and Cleco Power’s Condensed Consolidated Balance Sheets.

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 March 31, 2018, and December 31, 2017:

	FAIR VALUE				VALUATION TECHNIQUE	SIGNIFICANT UNOBSERVABLE INPUTS	FORWARD PRICE RANGE
(THOUSANDS, EXCEPT FORWARD PRICE RANGE)	ASSETS		LIABILITIES				LOW			HIGH
FTRs at Mar. 31, 2018	$	4,828	$	545	RTO auction pricing	FTR price - per MWh	$	(7.21	)	$	7.21
FTRs at Dec. 31, 2017	$	7,396	$	352	RTO auction pricing	FTR price - per MWh	$	(2.95	)	$	6.33

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 March 31, 2018, and December 31, 2017:

	DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS
(THOUSANDS)	BALANCE SHEET LINE ITEM	AT MAR. 31, 2018		AT DEC. 31, 2017
Commodity-related contracts
FTRs
Current	Energy risk management assets	$	4,828	$	7,396
Current	Other current liabilities	545		352
Commodity-related contracts, net		$	4,283	$	7,044

Effect of Derivatives On Consolidated Statements of Income

The following table presents the effect of derivatives not designated as hedging instruments on Cleco and Cleco Power’s Condensed Consolidated Statements of Income for the three months ended March 31, 2018, and 2017:

	AMOUNT OF GAIN(LOSS) RECOGNIZED IN INCOME ON DERIVATIVES
		FOR THE THREE MONTHS ENDED MAR. 31,
(THOUSANDS)	DERIVATIVES LINE ITEM	2018			2017
Commodity contracts
FTRs(1)	Electric operations	$	18,150		$	9,163
FTRs(1)	Power purchased for utility customers	(5,667		)	(4,665		)
Total		$	12,483		$	4,498

⁽¹⁾ For the three months ended March 31, 2018, and 2017, unrealized gains associated with FTRs of $1.6 million and $2.1 million, respectively, were reported through Accumulated deferred fuel on

Cleco Power

Fair Value [Line Items]

Fair Value By Balance Sheet Grouping

Cleco Power
	AT MAR. 31, 2018				AT DEC. 31, 2017
(THOUSANDS)	CARRYING VALUE*		FAIR VALUE		CARRYING VALUE*		FAIR VALUE
Long-term debt	$	1,410,188	$	1,555,341	$	1,369,810	$	1,535,234

* The carrying value of long-term debt does not include deferred issuance costs of $8.9 million and $9.1 million at March 31, 2018, and December 31, 2017, respectively.

Fair Value of Financial Assets and Liabilities Measured On A Recurring Basis

Cleco Power
	CLECO POWER FAIR VALUE MEASUREMENTS AT REPORTING DATE
(THOUSANDS)	AT MAR. 31, 2018		QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1)		SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2)		SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3)		AT DEC. 31, 2017		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	$	151,225	$	—	$	151,225	$	—	$	95,681	$	—	$	95,681	$	—
FTRs	4,828		—		—		4,828		7,396		—		—		7,396
Total assets	$	156,053	$	—	$	151,225	$	4,828	$	103,077	$	—	$	95,681	$	7,396
Liability description
FTRs	$	545	$	—	$	—	$	545	$	352	$	—	$	—	$	352
Total liabilities	$	545	$	—	$	—	$	545	$	352	$	—	$	—	$	352