Leases (Tables)

9 Months Ended

Sep. 30, 2019

Lessor, Lease, Description [Line Items]

Future Minimum Lease Payments Due Under Long-Term Operating Leases

The following is a schedule by year of future minimum lease payments due under Cleco and Cleco Power’s long-term operating leases together with the present value of the net minimum lease payments as of September 30, 2019:

(THOUSANDS)	CLECO POWER		CLECO
Three months ending Dec. 31, 2019	$	1,014	$	1,065
Years ending Dec. 31,
2020	3,960		3,994
2021	3,410		3,443
2022	3,256		3,287
2023	3,220		3,249
Thereafter	21,833		21,853
Total minimum lease payments	36,693		36,891
Less: amount representing interest	7,395		7,358
Present value of net minimum operating lease payments	$	29,298	$	29,533
Current liabilities	$	3,616	$	3,705
Non-current liabilities	$	25,682	$	25,828

Summary of Expected Operating Lease Payments as of Prior Year

The following table is a summary of expected operating lease payments for Cleco and Cleco Power at December 31, 2018:

(THOUSANDS)	CLECO HOLDINGS		CLECO POWER		CLECO
Year ending Dec. 31,
2019	$	120	$	4,030	$	4,150
2020	—		3,890		3,890
2021	—		2,789		2,789
2022	—		1,239		1,239
2023	—		1,214		1,214
Thereafter	—		7,235		7,235
Total operating lease payments	$	120	$	20,397	$	20,517

Analysis of Leased Property Under Finance Leases, Supplemental Balance Sheet Information, and Property Associated with Sale Leaseback

The following is an analysis of the leased property under the finance lease:

(THOUSANDS)	AT SEPT. 30, 2019			AT DEC. 31, 2018
Barges	$	16,800		$	16,800
Accumulated amortization	(1,680		)	(840		)
Net finance lease	$	15,120		$	15,960

Property associated with the Cottonwood Sale Leaseback was as follows:

(THOUSANDS)	AT SEPT. 30, 2019
Property, plant, and equipment	$	540,409
Accumulated depreciation	(16,140		)
Net property, plant, and equipment	$	524,269

The following tables present additional information related to Cleco and Cleco Power’s operating and finance leases as of and for the three and nine months ended September 30, 2019:

		AT SEPT. 30, 2019
(THOUSANDS)	BALANCE SHEET LINE ITEM	CLECO POWER		CLECO
Supplemental balance sheet information
ROU assets
Operating	Operating lease right of use assets	$	29,375	$	29,719
Finance	Property, plant, and equipment	15,120		15,120
Total ROU assets		$	44,495	$	44,839
Current lease liabilities
Operating	Other current liabilities	$	3,616	$	3,705
Finance	Long-term debt and finance leases due within one year	602		602
Non-current lease liabilities
Operating	Operating lease liabilities	25,682		25,828
Finance	Long-term debt and finance leases, net	15,404		15,404
Total lease liabilities		$	45,304	$	45,539

Future Minimum Lease Payments Due Under Finance Lease

The following is a schedule by year of future minimum lease payments due under the finance lease together with the present value of the net minimum lease payments as of September 30, 2019:

(THOUSANDS)
Three months ending Dec. 31, 2019	$	551
Years ending Dec. 31,
2020	2,203
2021	2,203
2022	2,203
2023	2,203
2024	2,203
Thereafter	17,675
Total minimum lease payments	29,241
Less: amount representing interest	13,235
Present value of net minimum finance lease payments	$	16,006
Current liabilities	$	602
Non-current liabilities	$	15,404

Future Minimum Lease Payments Due Under Finance Lease as of Prior Year

The following is a schedule by year of future minimum lease payments due under the finance lease together with the present value of the net minimum lease payments as of December 31, 2018:

(THOUSANDS)
Years ending Dec. 31,
2019	$	2,611
2020	2,611
2021	2,611
2022	2,611
2023	2,611
Thereafter	23,655
Total minimum lease payments	36,710
Less: executory costs	5,817
Net minimum lease payments	30,893
Less: amount representing interest	14,475
Present value of net minimum lease payments	$	16,418
Current liabilities	$	557
Non-current liabilities	$	15,861

Total Lease Costs, Supplemental Cash Flow Information, and Other Supplemental Information

Cleco
(THOUSANDS)	FOR THE THREE MONTHS ENDED SEPT. 30, 2019		FOR THE NINE MONTHS ENDED SEPT. 30, 2019
Supplemental cash flow information
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	1,108	$	3,387
Operating cash flows from finance leases	$	410	$	1,240
Financing cash flows from finance leases	$	141	$	412
ROU assets obtained in exchange for new lease liabilities	$	15,749	$	15,881

The following tables reflect total lease costs for Cleco and Cleco Power for the three and nine months ended September 30, 2019:

Cleco
(THOUSANDS)	FOR THE THREE  MONTHS ENDED SEPT. 30, 2019		FOR THE NINE  MONTHS ENDED SEPT. 30, 2019
Finance lease cost
Amortization of ROU assets	$	280	$	840
Interest on lease liabilities	410		1,240
Operating lease cost	1,158		3,411
Variable lease cost	116		423
Total lease cost	$	1,964	$	5,914

	AT SEPT. 30, 2019
(THOUSANDS)	CLECO POWER		CLECO
Other supplemental information
Operating leases
Weighted-average remaining lease term	11.0 years		10.9 years
Weighted-average discount rate	4.31	%	4.31	%
Finance leases
Weighted-average remaining lease term	13.5 years		13.5 years
Weighted-average discount rate	10.18	%	10.18	%

The following tables present additional information related to Cleco and Cleco Power’s operating and finance leases as of and for the three and nine months ended September 30, 2019:

		AT SEPT. 30, 2019
(THOUSANDS)	BALANCE SHEET LINE ITEM	CLECO POWER		CLECO
Supplemental balance sheet information
ROU assets
Operating	Operating lease right of use assets	$	29,375	$	29,719
Finance	Property, plant, and equipment	15,120		15,120
Total ROU assets		$	44,495	$	44,839
Current lease liabilities
Operating	Other current liabilities	$	3,616	$	3,705
Finance	Long-term debt and finance leases due within one year	602		602
Non-current lease liabilities
Operating	Operating lease liabilities	25,682		25,828
Finance	Long-term debt and finance leases, net	15,404		15,404
Total lease liabilities		$	45,304	$	45,539

Lease Income Under Cottonwood Sale Leaseback

Cleco Cajun’s lease income under the Cottonwood Sale Leaseback for the three and nine months ended September 30, 2019, was as follows:

(THOUSANDS)	FOR THE THREE MONTHS ENDED SEPT. 30, 2019		FOR THE NINE MONTHS ENDED SEPT. 30, 2019
Fixed payments	$	10,000	$	26,667
Variable payments	6,010		14,248
Amortization of deferred lease liability(1)	2,301		6,137
Total lease income	$	18,311	$	47,052

⁽¹⁾ The deferred lease revenue resulting from the preliminary fair value of the lease between Cottonwood Energy and a special-purpose entity that is a subsidiary of NRG Energy.

Remaining Minimum Lease Payments To Be Received

The remaining minimum lease payments to be received under the Cottonwood Sale Leaseback are as follows:

(THOUSANDS)
Three months ending Dec. 31, 2019	$	10,000
Years ending Dec. 31,
2020	40,000
2021	40,000
2022	40,000
2023	40,000
Thereafter	56,666
Total payments	$	226,666

Cleco Power

Lessor, Lease, Description [Line Items]

Total Lease Costs, Supplemental Cash Flow Information, and Other Supplemental Information

Cleco Power
(THOUSANDS)	FOR THE THREE  MONTHS ENDED  SEPT. 30, 2019		FOR THE NINE MONTHS ENDED SEPT. 30, 2019
Finance lease cost
Amortization of ROU assets	$	280	$	840
Interest on lease liabilities	410		1,240
Operating lease cost	1,101		3,243
Variable lease cost	116		423
Total lease cost	$	1,907	$	5,746

Cleco Power
(THOUSANDS)	FOR THE THREE MONTHS ENDED SEPT. 30, 2019		FOR THE NINE MONTHS ENDED SEPT. 30, 2019
Supplemental cash flow information
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	1,034	$	3,189
Operating cash flows from finance leases	$	410	$	1,240
Financing cash flows from finance leases	$	141	$	412
ROU assets obtained in exchange for new lease liabilities	$	15,749	$	15,749