Louisiana (State or other jurisdiction of incorporation or organization) | 72-1445282 (I.R.S. Employer Identification No.) | |
2030 Donahue Ferry Road, Pineville, Louisiana (Address of principal executive offices) | 71360-5226 (Zip Code) | |
Registrant’s telephone number, including area code: (318) 484-7400 | ||
Securities registered pursuant to Section 12(b) of the Act: None | ||
Securities registered pursuant to Section 12(g) of the Act: None |
Louisiana (State or other jurisdiction of incorporation or organization) | 72-0244480 (I.R.S. Employer Identification No.) | |
2030 Donahue Ferry Road, Pineville, Louisiana (Address of principal executive offices) | 71360-5226 (Zip Code) | |
Registrant’s telephone number, including area code: (318) 484-7400 | ||
Securities registered pursuant to Section 12(b) of the Act: None | ||
Securities registered pursuant to Section 12(g) of the Act: None | ||
Cleco Power LLC, a wholly owned subsidiary of Cleco Corporate Holdings LLC, meets the conditions set forth in General Instruction (I)(1)(a) and (b) of Form 10-K and is therefore filing this Form 10-K with the reduced disclosure format. | ||
Indicate by check mark if Cleco Corporate Holdings LLC is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes o No x | ||
Indicate by check mark if Cleco Power LLC is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes o No x | ||
Indicate by check mark if the Registrants are not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes x No o | ||
Indicate by check mark whether the Registrants: (1) have filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrants were required to file such reports) and (2) have been subject to such filing requirements for the past 90 days. Yes o Nox | ||
Indicate by check mark whether the Registrants have submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the Registrants were required to submit such files). Yes x No o | ||
Indicate by check mark whether Cleco Corporate Holdings LLC is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one): Large accelerated filer o Accelerated filer o Non-accelerated filer x Smaller reporting company o Emerging growth company o If an emerging growth company, indicate by check mark if the Registrant has elected not to use the extended transition period for complying with any new or revise accounting standards provided pursuant to Section 13(a) of the Exchange Act. o | ||
Indicate by check mark whether Cleco Power LLC is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one): Large accelerated filer o Accelerated filer o Non-accelerated filer x Smaller reporting company o Emerging growth company o If an emerging growth company, indicate by check mark if the Registrant has elected not to use the extended transition period for complying with any new or revise accounting standards provided pursuant to Section 13(a) of the Exchange Act. o | ||
Indicate by check mark whether the Registrants are shell companies (as defined in Rule 12b-2 of the Exchange Act) Yes o No x |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
TABLE OF CONTENTS | ||
PAGE | ||
ITEM 4. | ||
ITEM 16. | ||
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
GLOSSARY OF TERMS |
ABBREVIATION OR ACRONYM | DEFINITION |
2016 Merger | Merger of Merger Sub with and into Cleco Corporation pursuant to the terms of the Merger Agreement which was completed on April 13, 2016 |
2016 Merger Commitments | Cleco Partners’, Cleco Group’s, Cleco Holdings’, and Cleco Power’s 77 commitments to the LPSC as defined in Docket No. U-33434 of which a performance report must be filed annually by October 31 for the 12 months ending June 30 |
401(k) Plan | Cleco Power 401(k) Savings and Investment Plan |
ABR | Alternate Base Rate which is the greater of the prime rate, the federal funds effective rate plus 0.50%, or LIBOR plus 1.0% |
Acadia | Acadia Power Partners, LLC, previously a wholly owned subsidiary of Midstream. Acadia Power Partners, LLC was dissolved effective August 29, 2014. |
Acadia Unit 1 | Cleco Power’s 580-MW, combined cycle power plant located at the Acadia Power Station in Eunice, Louisiana |
Acadia Unit 2 | Entergy Louisiana’s 580-MW, combined cycle power plant located at the Acadia Power Station in Eunice, Louisiana, which is operated by Cleco Power |
ADIT | Accumulated Deferred Income Tax |
AFUDC | Allowance for Funds Used During Construction |
Amended Lignite Mining Agreement | Amended and restated lignite mining agreement effective December 29, 2009 |
AMI | Advanced Metering Infrastructure |
AOCI | Accumulated Other Comprehensive Income (Loss) |
ARO | Asset Retirement Obligation |
ARRA | American Recovery and Reinvestment Act of 2009 |
Attala | Attala Transmission LLC, a wholly owned subsidiary of Cleco Holdings |
BCI | British Columbia Investment Management Corporation |
Brame Energy Center | A facility consisting of Nesbitt Unit 1, Rodemacher Unit 2, and Madison Unit 3 |
CAA | Clean Air Act |
CCR | Coal combustion by-products or residual |
CEO | Chief Executive Officer |
CFO | Chief Financial Officer |
CIP | Critical Infrastructure Protection |
Cleco | Cleco Holdings and its subsidiaries |
Cleco Cajun | Cleco Cajun LLC (formerly Cleco Energy LLC, a wholly owned subsidiary of Cleco Holdings) and its subsidiaries |
Cleco Cajun Transaction | The transaction between Cleco Cajun and NRG Energy in which Cleco Cajun acquired all the membership interest in South Central Generating, which closed on February 4, 2019, pursuant to the Purchase and Sale Agreement, which includes the Cottonwood Sale Leaseback. |
Cleco Corporation | Pre-2016 Merger entity that was converted to a limited liability company and changed its name to Cleco Corporate Holdings LLC on April 13, 2016 |
Cleco Group | Cleco Group LLC, a wholly owned subsidiary of Cleco Partners |
Cleco Holdings | Cleco Corporate Holdings LLC, a wholly owned subsidiary of Cleco Group |
Cleco Katrina/Rita | Cleco Katrina/Rita Hurricane Recovery Funding LLC, a wholly owned subsidiary of Cleco Power |
Cleco Partners | Cleco Partners L.P., a Delaware limited partnership that is owned by a consortium of investors, including funds or investment vehicles managed by MIRA, BCI, John Hancock Financial, and other infrastructure investors |
Cleco Power | Cleco Power LLC and its subsidiaries, a wholly owned subsidiary of Cleco Holdings |
CO2 | Carbon dioxide |
Consent Decree | The Consent Decree, entered March 5, 2013, in Civil Action No. 09-100-JJB-DLD, United States District Court for the Middle District of Louisiana, by and among the EPA, the LDEQ, and Louisiana Generating relating to Big Cajun II, Unit 1 located in New Roads, Louisiana |
Cottonwood Energy | Cottonwood Energy Company LP, a wholly owned subsidiary of Cleco Cajun. Prior to the closing of the Cleco Cajun Transaction on February 4, 2019, Cottonwood Energy was an indirect subsidiary of South Central Generating. |
Cottonwood Plant | Cleco Cajun’s 1,263-MW, natural-gas-fired generating station located in Deweyville, Texas |
Cottonwood Sale Leaseback | A lease agreement executed and delivered between Cottonwood Energy and a special-purpose entity that is a subsidiary of NRG Energy pursuant to which NRG Energy will lease back the Cottonwood Plant and will operate it until no later than May 2025. |
Coughlin | Cleco Power’s 775-MW, combined-cycle power plant located in St. Landry, Louisiana |
CPP | Clean Power Plan |
CSAPR | Cross-State Air Pollution Rule |
DHLC | Dolet Hills Lignite Company, LLC, a wholly owned subsidiary of SWEPCO |
Diversified Lands | Diversified Lands LLC, a wholly owned subsidiary of Cleco Holdings |
Dolet Hills | A facility consisting of Dolet Hills Power Station, the Dolet Hills mine, and the Oxbow mine |
Dolet Hills Power Station | A 650-MW generating unit at Cleco Power’s plant site in Mansfield, Louisiana. Cleco Power has a 50% ownership interest in the capacity of Dolet Hills. |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
ABBREVIATION OR ACRONYM | DEFINITION |
EAC | Environmental Adjustment Clause |
EAF | Equivalent Availability Factor |
EBITDA | Earnings before interest, taxes, depreciation, and amortization |
EGU | Electric Generating Unit |
EFORd | Equivalent Forced Outage Rate on demand |
EMT | Executive Management Team |
Entergy Gulf States | Entergy Gulf States Louisiana, LLC |
Entergy Louisiana | Entergy Louisiana, LLC |
EPA | U.S. Environmental Protection Agency |
ERO | Electric Reliability Organization |
Evangeline | Cleco Evangeline LLC, a wholly owned subsidiary of Midstream |
FAC | Fuel Adjustment Clause |
FASB | Financial Accounting Standards Board |
FERC | Federal Energy Regulatory Commission |
Fitch | Fitch Ratings, a credit rating agency |
FTR | Financial Transmission Right |
FRP | Formula Rate Plan |
GAAP | Generally Accepted Accounting Principles in the U.S. |
GO Zone | Gulf Opportunity Zone Act of 2005 (Public Law 109-135) |
IRC | Internal Revenue Code |
IRP | Integrated Resource Plan |
IRS | Internal Revenue Service |
ISO | Independent System Operator |
kWh | Kilowatt-hour(s) |
LCFC | Lost Contribution to Fixed Cost |
LDEQ | Louisiana Department of Environmental Quality |
LIBOR | London Interbank Offered Rate |
LMP | Locational Marginal Price |
Louisiana Generating | Louisiana Generating, LLC, a wholly owned subsidiary of South Central Generating |
LPSC | Louisiana Public Service Commission |
LTIP | Long-Term Incentive Compensation Plan |
LTSA | Long-Term Parts and Service Agreement between Cottonwood Energy and a third party, dated January 19, 2001, that Cleco Cajun assumed as a result of the Cleco Cajun Transaction to provide maintenance services related to the Cottonwood Plant |
Madison Unit 3 | A 641-MW generating unit at Cleco Power’s plant site in Boyce, Louisiana |
MATS | Mercury and Air Toxics Standards |
Merger Agreement | Agreement and Plan of Merger, dated as of October 17, 2014, by and among Cleco Partners, Merger Sub, and Cleco Corporation relating to the 2016 Merger |
Merger Sub | Cleco MergerSub Inc., previously an indirect wholly owned subsidiary of Cleco Partners that was merged with and into Cleco Corporation, with Cleco Corporation surviving the 2016 Merger, and Cleco Corporation converting to a limited liability company and changing its name to Cleco Holdings |
Midstream | Cleco Midstream Resources LLC, a wholly owned subsidiary of Cleco Holdings |
MIRA | Macquarie Infrastructure and Real Assets Inc. |
MISO | Midcontinent Independent System Operator, Inc. |
MMBtu | One million British thermal units |
Moody’s | Moody’s Investors Service, a credit rating agency |
MW | Megawatt(s) |
MWh | Megawatt-hour(s) |
N/A | Not Applicable |
NAAQS | National Ambient Air Quality Standards |
NERC | North American Electric Reliability Corporation |
NMTC | New Markets Tax Credit |
NMTC Fund | USB NMTC Fund 2008-1 LLC was formed to invest in projects qualifying for New Markets Tax Credits and Solar Projects. This fund was dissolved effective January 25, 2019. |
Not Meaningful | A percentage comparison of these items is not statistically meaningful because the percentage difference is greater than 1,000% |
NO2 | Nitrogen dioxide |
NOx | Nitrogen oxide |
NRG Energy | NRG Energy, Inc. |
NRG South Central | NRG South Central Generating LLC |
Other Benefits | Includes medical, dental, vision, and life insurance for Cleco’s retirees |
Oxbow | Oxbow Lignite Company, LLC, 50% owned by Cleco Power and 50% owned by SWEPCO |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
ABBREVIATION OR ACRONYM | DEFINITION |
PCB | Polychlorinated biphenyl |
Perryville | Perryville Energy Partners, L.L.C., a wholly owned subsidiary of Cleco Holdings |
ppb | Parts per billion |
Predecessor | Pre-merger activity of Cleco. Cleco has accounted for the 2016 Merger transaction by applying the acquisition method of accounting. The predecessor period is not comparable to the successor period. |
Purchase and Sale Agreement | Purchase and Sale Agreement, dated as of February 6, 2018, by and among NRG Energy, South Central Generating, and Cleco Cajun |
Registrant(s) | Cleco Holdings and/or Cleco Power |
Rodemacher Unit 2 | A 523-MW generating unit at Cleco Power’s plant site in Boyce, Louisiana. Cleco Power has a 30% ownership interest in the capacity of Rodemacher Unit 2. |
ROE | Return on Equity |
ROIC | Return on Invested Capital |
ROU | Right of Use |
RTO | Regional Transmission Organization |
S&P | Standard & Poor’s Ratings Services, a credit rating agency |
SAIDI | System Average Interruption Duration Index |
SEC | U.S. Securities and Exchange Commission |
SERP | Supplemental Executive Retirement Plan |
SO2 | Sulfur dioxide |
South Central Generating | South Central Generating LLC, formerly NRG South Central Generating LLC |
SSR | System Support Resource |
START | Strategic Alignment and Real-Time Transformation |
STIP | Short-Term Incentive Plan |
Successor | Post-merger activity of Cleco. Cleco has accounted for the 2016 Merger transaction by applying the acquisition method of accounting. The successor period is not comparable to the predecessor period. |
Support Group | Cleco Support Group LLC, a wholly owned subsidiary of Cleco Holdings |
SWEPCO | Southwestern Electric Power Company, an electric utility subsidiary of American Electric Power Company, Inc. |
TCJA | Federal tax legislation commonly referred to as the Tax Cuts and Jobs Act of 2017 |
Teche Unit 3 | A 359-MW generating unit at Cleco Power’s plant site in Baldwin, Louisiana |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS |
• | the effects of the Cleco Cajun Transaction and the 2016 Merger on Cleco’s business relationships, operating results, and business generally, |
• | the ability to successfully remediate underlying causes of identified material weaknesses in internal control over financial reporting, |
• | regulatory factors, such as changes in rate-setting practices or policies; political actions of governmental regulatory bodies; adverse regulatory ratemaking actions; recovery of investments made under traditional regulation; recovery of storm restoration costs; the frequency, timing, and amount of rate increases or decreases; the impact that rate cases or requests for FRP extensions may have on operating decisions of Cleco Power; the results of periodic NERC, LPSC, and FERC audits; participation in MISO and the related operating challenges and uncertainties, including increased wholesale competition relative to additional suppliers; and compliance with the ERO reliability standards for bulk power systems by Cleco Power, |
• | Cleco Power’s ability to recover fuel costs through the FAC, |
• | the ability to successfully integrate the assets acquired in the Cleco Cajun Transaction into Cleco’s operations, |
• | factors affecting utility operations, such as unusual weather conditions or other natural phenomena; catastrophic weather-related damage caused by hurricanes and other storms or severe drought conditions; pandemic illness; unscheduled generation outages; unanticipated maintenance or repairs; unanticipated changes to fuel costs or fuel supply costs, shortages, solid fuel and natural gas transportation problems, or other developments; decreased customer load; environmental incidents and compliance costs; and power transmission system constraints, |
• | reliance on third parties for determination of Cleco’s commitments and obligations to markets for generation resources and reliance on third-party fuel transportation and transmission services, |
• | global and domestic economic conditions, including the ability of customers to continue paying their utility bills, related growth and/or down-sizing of businesses in Cleco’s service area, monetary fluctuations, and inflation rates, |
• | political uncertainty in the U.S., including the ongoing debates related to the U.S. federal government budget and debt ceiling, and volatility and disruption in global capital and credit markets, |
• | the ability of the lignite reserves at Dolet Hills to provide sufficient fuel to the Dolet Hills Power Station to meet projected dispatch needs, |
• | Cleco’s ability to maintain its right to sell wholesale power at market-based rates within its control area, |
• | Cleco’s dependence on energy from sources other than its facilities and future sources of such additional energy, |
• | reliability of Cleco’s generating facilities, |
• | the imposition of energy efficiency requirements or increased conservation efforts of customers, |
• | the impact of current or future environmental laws and regulations, including those related to CCRs, greenhouse gases, and energy efficiency that could limit or terminate the operation of Cleco’s generating units, increase costs, or reduce customer demand for electricity, |
• | the ability to recover costs of compliance with environmental laws and regulations, including those through Cleco Power’s EAC, |
• | financial or regulatory accounting principles or policies imposed by FASB, the SEC, FERC, the LPSC, or similar entities with regulatory or accounting oversight, |
• | changing market conditions and a variety of other factors associated with physical energy, financial transactions, and energy service activities, including, but not limited to, price, basis, credit, liquidity, volatility, capacity, transmission, interest rates, and warranty risks, |
• | changes in commodity prices and transportation costs, |
• | legal, environmental, and regulatory delays and other obstacles associated with acquisitions, reorganizations, investments in joint ventures, or other capital projects, |
• | costs and other effects of legal and administrative proceedings, settlements, investigations, claims, and other matters, |
• | the availability and use of alternative sources of energy and technologies, such as wind, solar, battery storage, and distributed generation, |
• | changes in federal, state, or local laws (including the TCJA and other tax laws), changes in tax rates, disallowances of tax positions, or changes in other regulatory policies that may result in a change to tax benefits or expenses, |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
• | the restriction on the ability of Cleco Power to make distributions to Cleco Holdings in certain instances, as a result of the 2016 Merger Commitments, |
• | Cleco’s ability to remain in compliance with the commitments made to the LPSC in connection with the Cleco Cajun Transaction, |
• | Cleco Holdings’ dependence on the earnings, dividends, or distributions from its subsidiaries to meet its debt obligations, |
• | acts of terrorism, cyber attacks, data security breaches or other attempts to disrupt Cleco’s business or the business of third parties, or other man-made disasters, |
• | the ability to successfully modify, implement, or transition Cleco’s legacy enterprise business applications into new systems, |
• | credit ratings of Cleco Holdings and Cleco Power, |
• | Cleco Holdings’ and Cleco Power’s ability to remain in compliance with their respective debt covenants, |
• | the availability or cost of capital resulting from changes in global markets, Cleco’s business or financial condition, interest rates, or market perceptions of the electric utility industry and energy-related industries, and |
• | workforce factors, including aging workforce, changes in management, impact of a pandemic illness, and unavailability of skilled employees. |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
PART I |
ITEM 1. BUSINESS |
GENERAL |
OPERATIONS |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
GENERATING STATION | YEAR OF INITIAL OPERATION | NAMEPLATE CAPACITY (MW) | (1) | NET CAPACITY (MW) | (2) | PRIMARY FUEL USED FOR GENERATION | GENERATION TYPE | |||
Brame Energy Center | ||||||||||
Nesbitt Unit 1 | 1975 | 440 | 424 | natural gas | steam | |||||
Rodemacher Unit 2 | 1982 | 157 | (3) | 148 | (3) | coal | steam | |||
Madison Unit 3 | 2010 | 641 | 625 | petroleum coke/coal | steam | |||||
Acadia Unit 1 | 2002 | 580 | 548 | natural gas | combined cycle | |||||
Coughlin Unit 6 | 2000 | 264 | 252 | natural gas | combined cycle | |||||
Coughlin Unit 7 | 2000 | 511 | 486 | natural gas | combined cycle | |||||
Teche Unit 3 | 1971 | 359 | 327 | natural gas | steam | |||||
Teche Unit 4 | 2011 | 33 | 34 | natural gas | combustion | |||||
Dolet Hills Power Station | 1986 | 325 | (4) | 323 | (4) | lignite | steam | |||
St. Mary Clean Energy Center | 2019 | 50 | 47 | waste heat | steam | |||||
Total generating capability | 3,360 | 3,214 |
YEAR | THOUSAND MWh | PERCENT OF TOTAL ENERGY REQUIREMENTS | |||
2019 | 12,552 | 103.0 | % | ||
2018 | 11,848 | 94.6 | % | ||
2017 | 10,864 | 91.1 | % | ||
2016 | 12,759 | 103.6 | % | ||
2015 | 12,564 | 100.2 | % |
LIGNITE | COAL | NATURAL GAS | PETROLEUM COKE | RENEWABLES | WEIGHTED AVERAGE COST PER MWh | |||||||||||||||||||||||||||||
YEAR | COST PER MWh | PERCENT OF GENERATION | COST PER MWh | PERCENT OF GENERATION | COST PER MWh | PERCENT OF GENERATION | COST PER MWh | PERCENT OF GENERATION | PERCENT OF GENERATION | |||||||||||||||||||||||||
2019 | $ | 119.88 | 4.7 | % | $ | 24.60 | 11.3 | % | $ | 21.18 | 69.1 | % | $ | 26.54 | 14.2 | % | 0.7 | % | $ | 26.85 | ||||||||||||||
2018 | $ | 93.88 | 6.9 | % | $ | 22.55 | 16.7 | % | $ | 26.81 | 52.6 | % | $ | 26.54 | 23.8 | % | — | $ | 30.66 | |||||||||||||||
2017 | $ | 44.70 | 8.9 | % | $ | 24.75 | 12.4 | % | $ | 27.19 | 51.3 | % | $ | 22.50 | 27.4 | % | — | $ | 27.16 | |||||||||||||||
2016 | $ | 50.39 | 13.0 | % | $ | 28.13 | 9.3 | % | $ | 20.84 | 52.9 | % | $ | 18.77 | 24.8 | % | — | $ | 24.86 | |||||||||||||||
2015 | $ | 46.87 | 16.9 | % | $ | 28.68 | 9.7 | % | $ | 21.37 | 50.6 | % | $ | 19.80 | 22.8 | % | — | $ | 26.04 |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
NATURAL GAS SUPPLIER | 2019 PURCHASES (MMBtu) | AVERAGE AMOUNT PURCHASED PER DAY (MMBtu) | PERCENT OF TOTAL NATURAL GAS USED | |||||
Tenaska Marketing Ventures | 15,891,247 | 43,538 | 34.0 | % | ||||
Mansfield Power and Gas | 7,531,077 | 20,633 | 16.1 | % | ||||
Sequent Energy Management | 4,739,467 | 12,985 | 10.1 | % | ||||
Shell Energy North America | 4,196,533 | 11,497 | 9.0 | % | ||||
DTE Energy Trading, Inc. | 2,289,367 | 6,272 | 4.9 | % | ||||
Range Resources | 1,856,507 | 5,086 | 4.0 | % | ||||
BP Energy Company | 1,666,937 | 4,567 | 3.6 | % | ||||
Cima Energy LP | 1,636,862 | 4,485 | 3.5 | % | ||||
Spire Marketing, Inc. | 1,625,726 | 4,454 | 3.5 | % | ||||
Kaiser Marketing Appalachian LLC | 1,195,504 | 3,275 | 2.6 | % | ||||
Conocophillips Company | 1,047,400 | 2,870 | 2.2 | % | ||||
Nextera Energy Resources | 1,029,363 | 2,820 | 2.2 | % | ||||
Others | 2,044,466 | 5,601 | 4.3 | % | ||||
Total | 46,750,456 | 128,083 | 100.0 | % |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
GENERATING STATION | COMMENCEMENT OF COMMERCIAL OPERATION | RATED CAPACITY (MW) | NET CAPACITY (MW)(1) | PRIMARY FUEL USED FOR GENERATION | GENERATION TYPE | |||||
Bayou Cove (2) | 2002 | 225 | (5) | 223 | (5) | natural gas | combustion | |||
Big Cajun I | ||||||||||
Unit 1 and Unit 2 | 1972 | 220 | 184 | natural gas | steam | |||||
Unit 3 and Unit 4 | 2001 | 210 | 198 | natural gas | combustion | |||||
Big Cajun II | ||||||||||
Unit 1 | 1981 | 580 | 558 | coal | steam | |||||
Unit 2 | 1982 | 540 | 574 | natural gas | steam | |||||
Unit 3 | 1983 | 341 | (6) | 334 | (6) | coal | steam | |||
Cottonwood (3) | 2003 | 1,263 | 1,155 | natural gas | combined cycle | |||||
Sterlington (4) | 1971 - 1975 | 176 | 99 | natural gas | combustion | |||||
Total generating capability | 3,555 | 3,325 |
REGULATORY MATTERS, INDUSTRY DEVELOPMENTS, AND FRANCHISES |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
RENEWAL DATE | CITY/TOWN/VILLAGE | TERM | NUMBER OF CUSTOMERS | |||
January 2019 | Jeanerette | 22 years | 2,849 | |||
June 2019 | Loreauville | 27 years | 384 | |||
July 2019 | Opelousas | 10 years | 9,604 | |||
December 2019 | Evergreen | 27 years | 214 |
• | the ability of electric utilities to recover stranded costs, |
• | the impact of the TCJA on regulated public utilities, |
• | the role of electric utilities, independent power producers, and competitive bidding in the purchase, construction, and operation of new generating capacity, |
• | the role of electric utilities and independent transmission providers in competitive bidding in the construction of new transmission facilities, |
• | the pricing of transmission service on an electric utility’s transmission system, or the cost of transmission services provided by an RTO/ISO, |
• | FERC’s assessment of market power and a utility’s ability to buy generation assets, |
• | mandatory transmission reliability standards, |
• | NERC’s imposition of additional reliability and cybersecurity standards, |
• | the authority of FERC to grant utilities the power of eminent domain, |
• | increasing requirements for renewable energy sources, |
• | demand response and energy efficiency standards, |
• | comprehensive multi-emissions environmental regulation in the areas of air, water, and waste, |
• | regulation of greenhouse gas emissions, |
• | regulation of the disposal and management of CCRs from coal-fired power plants, and |
• | FERC’s increased ability to impose financial penalties. |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
ENVIRONMENTAL MATTERS |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
ITEM 1A. RISK FACTORS |
STRUCTURAL RISKS |
OPERATIONAL RISKS |
• | unanticipated challenges integrating financial and accounting, information technology, communications and other systems; |
• | potential inconsistencies in procedures, practices, policies, controls, and standards; |
• | possible differences in compensation arrangements, management perspectives, and corporate culture; and |
• | meeting LPSC commitments relating to the transaction. |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
REGULATORY RISKS |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
FINANCIAL RISKS |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
ITEM 1B. UNRESOLVED STAFF COMMENTS |
ITEM 2. PROPERTIES |
CLECO POWER |
CLECO CAJUN |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
ITEM 3. LEGAL PROCEEDINGS |
CLECO |
CLECO POWER |
ITEM 4. MINE SAFETY DISCLOSURES |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
PART II |
ITEM 5. MARKET FOR REGISTRANTS’ COMMON EQUITY, RELATED STOCKHOLDER MATTERS, AND ISSUER PURCHASES OF EQUITY SECURITIES |
CLECO HOLDINGS |
CLECO POWER |
ITEM 6. SELECTED FINANCIAL DATA |
CLECO |
Five-Year Selected Financial Data | |||||||||||||||||||||||
SUCCESSOR | PREDECESSOR | ||||||||||||||||||||||
(THOUSANDS, EXCEPT PER SHARE AND PERCENTAGES) | FOR THE YEAR ENDED DEC. 31, 2019 | FOR THE YEAR ENDED DEC. 31, 2018 | FOR THE YEAR ENDED DEC. 31, 2017 | APR. 13, 2016 - DEC. 31, 2016 | JAN. 1, 2016 - APR. 12, 2016 | FOR THE YEAR ENDED DEC. 31, 2015 | |||||||||||||||||
Operating revenue, net (excluding intercompany revenue) | |||||||||||||||||||||||
Cleco Power | $ | 1,157,774 | $ | 1,240,722 | $ | 1,184,345 | $ | 859,006 | $ | 299,283 | $ | 1,207,325 | |||||||||||
Cleco Cajun | 491,510 | — | — | — | — | — | |||||||||||||||||
Other | (9,679 | ) | (9,678 | ) | (8,699 | ) | (6,001 | ) | 587 | 2,077 | |||||||||||||
Total | $ | 1,639,605 | $ | 1,231,044 | $ | 1,175,646 | $ | 853,005 | $ | 299,870 | $ | 1,209,402 | |||||||||||
Income (loss) before income taxes | $ | 195,830 | $ | 123,819 | $ | 145,159 | $ | (46,935 | ) | $ | (492 | ) | $ | 211,373 | |||||||||
Net income (loss) | $ | 152,665 | $ | 94,437 | $ | 138,080 | $ | (24,113 | ) | $ | (3,960 | ) | $ | 133,669 | |||||||||
Capitalization | |||||||||||||||||||||||
Member’s equity/Common shareholders’ equity | 46.31 | % | 42.50 | % | 42.50 | % | 42.77 | % | 56.92 | % | |||||||||||||
Long-term debt and finance leases (1) | 53.69 | % | 57.50 | % | 57.50 | % | 57.23 | % | 43.08 | % | |||||||||||||
Member’s equity/Common shareholders’ equity | $ | 2,643,006 | $ | 2,124,740 | $ | 2,096,357 | $ | 2,046,764 | $ | 1,674,841 | |||||||||||||
Long-term debt and finance leases (1) | $ | 3,064,679 | $ | 2,874,485 | $ | 2,836,105 | $ | 2,738,571 | $ | 1,267,703 | |||||||||||||
Total assets | $ | 7,476,298 | $ | 6,436,814 | $ | 6,278,382 | $ | 6,343,144 | $ | 4,323,354 | |||||||||||||
Cash dividends declared per common share | N/A | N/A | N/A | N/A | $ | 0.40 | $ | 1.60 |
CLECO POWER |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
OVERVIEW |
• | Cleco Power, a regulated electric utility company that owns 10 generating units with a total nameplate capacity of 3,360 MW and serves approximately 288,000 customers in Louisiana through its retail business and supplies wholesale power in Louisiana and Mississippi; and |
• | Cleco Cajun, an unregulated electric utility company that owns eight generating assets with a rated capacity of 3,555 MW and supplies wholesale power and capacity in Arkansas, Louisiana, and Texas. Upon the closing of the Cleco Cajun Transaction, Cottonwood Energy entered into the Cottonwood Sale Leaseback. |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
RESULTS OF OPERATIONS |
Cleco | ||||||||||||||
FOR THE YEAR ENDED DEC. 31, | ||||||||||||||
FAVORABLE/(UNFAVORABLE) | ||||||||||||||
(THOUSANDS) | 2019 | 2018 | VARIANCE | CHANGE | ||||||||||
Operating revenue, net | $ | 1,639,605 | $ | 1,231,044 | $ | 408,561 | 33.2 | % | ||||||
Operating expenses | 1,324,711 | 986,487 | (338,224 | ) | (34.3 | )% | ||||||||
Operating income | 314,894 | 244,557 | 70,337 | 28.8 | % | |||||||||
Interest income | 6,090 | 6,073 | 17 | 0.3 | % | |||||||||
Allowance for equity funds used during construction | 15,397 | 14,159 | 1,238 | 8.7 | % | |||||||||
Other income (expense), net | 758 | (14,328 | ) | 15,086 | 105.3 | % | ||||||||
Interest charges | 141,309 | 126,642 | (14,667 | ) | (11.6 | )% | ||||||||
Federal and state income tax expense | 43,165 | 29,382 | (13,783 | ) | (46.9 | )% | ||||||||
Net income | $ | 152,665 | $ | 94,437 | $ | 58,228 | 61.7 | % |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
• | imposition of federal and/or state renewable portfolio standards, |
• | imposition of energy efficiency mandates, |
• | legislative and regulatory changes, |
• | increases in environmental regulations and compliance costs, |
• | cost of power impacted by the price movement of fuels and the addition of new generation capacity, |
• | transmission congestion costs, |
• | increases in capital and operations and maintenance costs due to higher construction and labor costs, |
• | changes in electric rates compared to customers’ ability to pay, and |
• | changes in the credit markets and local and global economies. |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
FOR THE YEAR ENDED DEC. 31, | ||||||||||||||
FAVORABLE/(UNFAVORABLE) | ||||||||||||||
(THOUSANDS) | 2019 | 2018 | VARIANCE | CHANGE | ||||||||||
Operating revenue | ||||||||||||||
Base | $ | 669,091 | $ | 678,378 | $ | (9,287 | ) | (1.4 | )% | |||||
Fuel cost recovery | 461,837 | 513,209 | (51,372 | ) | (10.0 | )% | ||||||||
Electric customer credits | (38,516 | ) | (33,195 | ) | (5,321 | ) | (16.0 | )% | ||||||
Other operations | 72,833 | 82,330 | (9,497 | ) | (11.5 | )% | ||||||||
Affiliate revenue | 3,125 | 874 | 2,251 | 257.6 | % | |||||||||
Operating revenue, net | 1,168,370 | 1,241,596 | (73,226 | ) | (5.9 | )% | ||||||||
Operating expenses | ||||||||||||||
Recoverable fuel and purchased power | 461,877 | 513,206 | 51,329 | 10.0 | % | |||||||||
Non-recoverable fuel and purchased power | 34,648 | 37,530 | 2,882 | 7.7 | % | |||||||||
Other operations and maintenance | 207,164 | 202,552 | (4,612 | ) | (2.3 | )% | ||||||||
Depreciation and amortization | 172,471 | 162,069 | (10,402 | ) | (6.4 | )% | ||||||||
Taxes other than income taxes | 43,742 | 47,267 | 3,525 | 7.5 | % | |||||||||
Total operating expenses | 919,902 | 962,624 | 42,722 | 4.4 | % | |||||||||
Operating income | 248,468 | 278,972 | (30,504 | ) | (10.9 | )% | ||||||||
Interest income | 4,744 | 5,052 | (308 | ) | (6.1 | )% | ||||||||
Allowance for equity funds used during construction | 15,397 | 14,159 | 1,238 | 8.7 | % | |||||||||
Other expense, net | (3,616 | ) | (8,699 | ) | 5,083 | 58.4 | % | |||||||
Interest charges | 71,279 | 71,303 | 24 | — | % | |||||||||
Federal and state income tax expense | 45,452 | 55,924 | 10,472 | 18.7 | % | |||||||||
Net income | $ | 148,262 | $ | 162,257 | $ | (13,995 | ) | (8.6 | )% |
FOR THE YEAR ENDED DEC. 31, | ||||||||
FAVORABLE/ | ||||||||
(MILLION kWh) | 2019 | 2018 | (UNFAVORABLE) | |||||
Electric sales | ||||||||
Residential | 3,589 | 3,780 | (5.1 | )% | ||||
Commercial | 2,772 | 2,731 | 1.5 | % | ||||
Industrial | 2,027 | 2,243 | (9.6 | )% | ||||
Other retail | 129 | 133 | (3.0 | )% | ||||
Total retail | 8,517 | 8,887 | (4.2 | )% | ||||
Sales for resale | 3,046 | 2,991 | 1.8 | % | ||||
Total retail and wholesale customer sales | 11,563 | 11,878 | (2.7 | )% |
FOR THE YEAR ENDED DEC. 31, | ||||||||||
FAVORABLE/ | ||||||||||
(THOUSANDS) | 2019 | 2018 | (UNFAVORABLE) | |||||||
Electric sales | ||||||||||
Residential | $ | 297,204 | $ | 304,708 | (2.5 | )% | ||||
Commercial | 198,664 | 192,781 | 3.1 | % | ||||||
Industrial | 84,030 | 90,291 | (6.9 | )% | ||||||
Other retail | 10,786 | 10,918 | (1.2 | )% | ||||||
Storm surcharge | 22,132 | 23,138 | (4.3 | )% | ||||||
Total retail | 612,816 | 621,836 | (1.5 | )% | ||||||
Sales for resale | 56,275 | 56,542 | (0.5 | )% | ||||||
Total base revenue | $ | 669,091 | $ | 678,378 | (1.4 | )% |
FOR THE YEAR ENDED DEC. 31, | ||||||||||||||
2019 CHANGE | ||||||||||||||
2019 | 2018 | NORMAL | PRIOR YEAR | NORMAL | ||||||||||
Cooling degree-days | 3,178 | 3,311 | 2,779 | (4.0 | )% | 14.4 | % | |||||||
Heating degree-days | 1,325 | 1,470 | 1,547 | (9.9 | )% | (14.4 | )% |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
Cleco Cajun | |||
(THOUSANDS) | FOR THE YEAR ENDED DEC. 31, 2019 | ||
Operating revenue | |||
Electric operations | $ | 375,489 | |
Electric customer credits | (1,447 | ) | |
Other operations | 117,468 | ||
Affiliate revenue | 108 | ||
Operating revenue, net | 491,618 | ||
Operating expenses | |||
Fuel used for electric generation | 81,514 | ||
Purchased power | 177,254 | ||
Other operations and maintenance | 91,215 | ||
Depreciation and amortization | 35,544 | ||
Taxes other than income taxes | 14,785 | ||
Total operating expenses | 400,312 | ||
Operating income | 91,306 | ||
Interest income | 987 | ||
Other expense, net | (368 | ) | |
Interest charges | 35 | ||
Federal and state income tax expense | 22,479 | ||
Net income | $ | 69,411 |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
Cleco | ||||||||||||||
FOR THE YEAR ENEDED DEC. 31, | ||||||||||||||
FAVORABLE/(UNFAVORABLE) | ||||||||||||||
(THOUSANDS) | 2018 | 2017 | VARIANCE | CHANGE | ||||||||||
Operating revenue, net | $ | 1,231,044 | $ | 1,175,646 | $ | 55,398 | 4.7 | % | ||||||
Operating expenses | 986,487 | 910,419 | $ | 76,068 | 8.4 | % | ||||||||
Operating income | $ | 244,557 | $ | 265,227 | $ | (20,670 | ) | (7.8 | )% | |||||
Interest income | 6,073 | 1,424 | $ | 4,649 | 326.5 | % | ||||||||
Allowance for equity funds used during construction | 14,159 | 8,320 | $ | 5,839 | 70.2 | % | ||||||||
Other expense, net | (14,328 | ) | (6,899 | ) | $ | (7,429 | ) | (107.7 | )% | |||||
Interest charges | 126,642 | 122,913 | $ | 3,729 | 3.0 | % | ||||||||
Federal and state income tax expense | 29,382 | 7,079 | $ | 22,303 | 315.1 | % | ||||||||
Net income | $ | 94,437 | $ | 138,080 | $ | (43,643 | ) | (31.6 | )% |
Cleco Power | ||||||||||||||
FOR THE YEAR ENDED DEC. 31, | ||||||||||||||
FAVORABLE/(UNFAVORABLE) | ||||||||||||||
(THOUSANDS) | 2018 | 2017 | VARIANCE | CHANGE | ||||||||||
Operating revenue | ||||||||||||||
Base | $ | 678,378 | $ | 651,732 | $ | 26,646 | 4.1 | % | ||||||
Fuel cost recovery | 513,209 | 456,657 | 56,552 | 12.4 | % | |||||||||
Electric customer credits | (33,195 | ) | (1,566 | ) | (31,629 | ) | * | |||||||
Other operations | 82,330 | 77,522 | 4,808 | 6.2 | % | |||||||||
Affiliate revenue | 874 | 851 | 23 | 2.7 | % | |||||||||
Operating revenue, net | $ | 1,241,596 | $ | 1,185,196 | $ | 56,400 | 4.8 | % | ||||||
Operating expenses | ||||||||||||||
Recoverable fuel and purchased power | 513,206 | 456,509 | (56,697 | ) | (12.4 | )% | ||||||||
Non-recoverable fuel and purchased power | 37,530 | 35,750 | (1,780 | ) | (5.0 | )% | ||||||||
Other operations and maintenance | 202,552 | 202,738 | 186 | 0.1 | % | |||||||||
Depreciation and amortization | 162,069 | 158,415 | (3,654 | ) | (2.3 | )% | ||||||||
Taxes other than income taxes | 47,267 | 46,539 | (728 | ) | (1.6 | )% | ||||||||
Total operating expenses | 962,624 | 899,951 | (62,673 | ) | (7.0 | )% | ||||||||
Operating income | $ | 278,972 | $ | 285,245 | $ | (6,273 | ) | (2.2 | )% | |||||
Allowance for equity funds used during construction | $ | 14,159 | $ | 8,320 | $ | 5,839 | 70.2 | % | ||||||
Interest charges | $ | 71,303 | $ | 69,362 | $ | (1,941 | ) | (2.8 | )% | |||||
Federal and state income tax expense | $ | 55,924 | $ | 67,331 | $ | 11,407 | 16.9 | % | ||||||
Net income | $ | 162,257 | $ | 150,738 | $ | 11,519 | 7.6 | % | ||||||
* Not meaningful |
• | higher base revenue, |
• | lower federal and state income tax expense, |
• | higher allowance for equity funds used during construction, |
• | higher other operations revenue, and |
• | higher interest income. |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
• | higher electric customer credits, |
• | higher depreciation and amortization, and |
• | higher interest charges. |
FOR THE YEAR ENDED DEC. 31, | ||||||||
FAVORABLE/ | ||||||||
(MILLION kWh) | 2018 | 2017 | (UNFAVORABLE) | |||||
Electric sales | ||||||||
Residential | 3,780 | 3,526 | 7.2 | % | ||||
Commercial | 2,731 | 2,650 | 3.1 | % | ||||
Industrial | 2,243 | 2,078 | 7.9 | % | ||||
Other retail | 133 | 131 | 1.5 | % | ||||
Total retail | 8,887 | 8,385 | 6.0 | % | ||||
Sales for resale | 2,991 | 2,959 | 1.1 | % | ||||
Total retail and wholesale customer sales | 11,878 | 11,344 | 4.7 | % |
FOR THE YEAR ENDED DEC. 31, | ||||||||||
FAVORABLE/ | ||||||||||
(THOUSANDS) | 2018 | 2017 | (UNFAVORABLE) | |||||||
Electric sales | ||||||||||
Residential | $ | 304,708 | $ | 286,587 | 6.3 | % | ||||
Commercial | 192,781 | 188,431 | 2.3 | % | ||||||
Industrial | 90,291 | 87,528 | 3.2 | % | ||||||
Other retail | 10,918 | 10,592 | 3.1 | % | ||||||
Surcharge | 23,138 | 20,965 | 10.4 | % | ||||||
Total retail | 621,836 | 594,103 | 4.7 | % | ||||||
Sales for resale | 56,542 | 57,629 | (1.9 | )% | ||||||
Total base revenue | $ | 678,378 | $ | 651,732 | 4.1 | % |
FOR THE YEAR ENDED DEC. 31, | ||||||||||||||
2018 CHANGE | ||||||||||||||
2018 | 2017 | NORMAL | PRIOR YEAR | NORMAL | ||||||||||
Cooling degree-days | 3,311 | 3,044 | 2,779 | 8.8 | % | 19.1 | % | |||||||
Heating degree-days | 1,470 | 1,029 | 1,546 | 42.9 | % | (4.9 | )% |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
CLECO POWER — NARRATIVE ANALYSIS OF RESULTS OF OPERATIONS |
CRITICAL ACCOUNTING POLICIES |
• | To determine assets, liabilities, and expenses relating to pension and other postretirement benefits, management must make assumptions about future trends. Assumptions and estimates include, but are not limited to, discount rates, expected return on plan assets, mortality rates, future rate of compensation increases, and medical inflation trend rates. These assumptions are reviewed and updated on an annual basis. Changes in the rates from year-to-year and newly-enacted laws could have a material effect on Cleco’s financial condition and results of operations by changing the recorded assets, liabilities, expense, or required funding of the pension plan obligation. One component of pension expense is the expected return on plan assets. It is an assumed percentage return on the market-related value of plan assets. The market-related value of plan assets differs from the fair value of plan assets by the amount of deferred asset gains or losses. Actual asset returns that differ from the expected return on plan assets are deferred and recognized in the market-related value of assets on a straight-line basis over a five-year period. The 2019 return on plan assets was 22.17% compared to an expected long-term return of 6.55%. For 2018, the plan assets had a negative return of (7.31)% compared to an expected long-term return of 5.86%. For the calculation of the 2020 periodic expense, Cleco decreased the expected long-term return on plan assets to 5.91%. |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
ACTUARIAL ASSUMPTION (THOUSANDS) | CHANGE IN ASSUMPTION | CHANGE IN PROJECTED BENEFIT OBLIGATION | CHANGE IN ESTIMATED BENEFIT COST | ||||||
Discount rate | 0.5% increase | $ | (41,744 | ) | $ | (4,323 | ) | ||
0.5% decrease | $ | 46,870 | $ | 4,775 | |||||
Salary scale | 0.5% increase | $ | 8,428 | $ | 1,669 | ||||
0.5% decrease | $ | (7,650 | ) | $ | (1,510 | ) | |||
Expected return on assets | 0.5% increase | $ | — | $ | (2,113 | ) | |||
0.5% decrease | $ | — | $ | 2,113 |
• | Cleco has concluded it is probable that regulatory assets can be recovered from ratepayers in future rates. At December 31, 2019, Cleco Power had $152.5 million in regulatory assets, net. As a result of the 2016 Merger, Cleco Holdings recognized regulatory assets. At December 31, 2019, Cleco Holdings had $159.0 million of regulatory assets. Actions by the LPSC could limit the recovery of Cleco’s regulatory assets, causing Cleco to record a loss on some or all of the regulatory assets. If future recovery of costs ceases to be probable, Cleco Holdings could be |
• | Income tax expense and related balance sheet amounts are comprised of a “current” portion and a “deferred” portion. The current portion represents Cleco’s estimate of the income taxes payable or receivable for the current year. The deferred portion represents Cleco’s estimate of the future income tax effects of events that have been recognized in the financial statements or income tax returns in the current or prior years. Cleco makes assumptions and estimates when it records income taxes, such as its ability to deduct items on its tax returns, the timing of the deduction, and the effect of regulation on income taxes. Cleco’s income tax expense and related assets and liabilities could be affected by changes in its assumptions and estimates and by ultimate resolution of assumptions and estimates with taxing authorities. The actual results may differ from the estimated results based on these assumptions and may have a material effect on Cleco’s results of operations. |
• | Cleco is currently involved in certain legal proceedings and management has estimated the probable costs for the resolution of these claims. These estimates are based on an analysis of potential results, assuming a combination of litigation and settlement assumptions. For more information on legal proceedings affecting Cleco, see Part I, Item 1, “Business — Environmental Matters — Air Quality,” Item 1A, “Risk Factors — Operational Risks — Litigation,” and Item 8, “Financial Statements and Supplementary Data — Notes to the Financial Statements — Note 15 — Litigation, Other Commitments and Contingencies, and Disclosures about Guarantees — Litigation.” |
• | Assets acquired and liabilities assumed in an acquired business are recorded at their estimated fair values on the date of acquisition. The difference between the purchase price amount and the net fair value of assets acquired and liabilities assumed is recognized as goodwill on the balance sheet if it exceeds the estimated fair value. On April 13, 2016, in connection with the completion of the 2016 Merger, Cleco recognized goodwill of $1.49 billion. Goodwill is required to be tested for impairment at the reporting segment level on an annual basis and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting segment below its carrying value. Additionally, on the date of the 2016 Merger, intangible assets were recognized for fair value adjustments of the Cleco trade name and long-term wholesale power supply contracts. Determining the fair value of assets acquired and liabilities assumed requires management’s judgment, often utilizing independent valuation experts, and involves the use of significant estimates and assumptions. Management’s judgments and estimates can materially impact the financial statements in periods after acquisition, such as through depreciation, |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
• | The LPSC determines the ability of Cleco Power to recover prudent costs incurred in developing long-lived assets. If the LPSC were to rule that the cost of current or future long-lived assets was imprudent and not recoverable, Cleco Power could be required to write down the imprudent cost and incur a corresponding impairment loss. At December 31, 2019, the carrying value of Cleco Power’s long-lived assets was $3.58 billion. Currently, Cleco Power has concluded that none of its long-lived assets are impaired. |
• | The LPSC determines the amount and type of fuel and purchased power expenses that Cleco Power can charge customers through the FAC. Changes in the determination of allowable costs already incurred by Cleco Power could cause material changes in fuel revenue. Cleco Power has FAC filings for January 2018 and thereafter that are subject to audit. Management is unable to predict or give a reasonable estimate of the possible range of the disallowance, if any, related to these filings. For more information on LPSC fuel audits, see Item 8, “Financial Statements and Supplementary Data — Notes to the Financial Statements — Note 15 — Litigation, Other Commitments and Contingencies, and Disclosures about Guarantees —Litigation — LPSC Audits.” For information on fuel revenue, see “— Results of Operations — Comparison of the Years Ended December 31, 2019, and 2018 — Cleco Power — Significant Factors Affecting Cleco Power — Fuel Cost Recovery/Recoverable Fuel and Power Purchased.” |
FINANCIAL CONDITION |
SENIOR UNSECURED DEBT | CORPORATE/LONG-TERM ISSUER | ||||||
S&P | MOODY’S | FITCH | S&P | MOODY’S | FITCH | ||
Cleco Holdings | BBB- | Baa3 | BBB- | BBB- | Baa3 | BBB- | |
Cleco Power | BBB+ | A3 | BBB+ | BBB+ | A3 | BBB |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
• | a $104.9 million increase in long-term debt due within one year primarily due to $63.3 million of principal payments on Cleco Holdings’ debt as required by the Cleco Cajun Transaction commitments to the LPSC, $50.0 million of GO Zone bonds with a mandatory tender in May 2020, partially offset by $9.5 million of lower principal payments for the Cleco Katrina/Rita storm recovery bonds due to the bonds maturing in March 2020, |
• | a $33.8 million increase in affiliate accounts payable primarily for amounts due to Cleco Group for affiliate settlement of taxes payable, |
• | a $14.1 million increase in other current liabilities primarily due to additional liabilities incurred as a result of the Cleco Cajun Transaction, |
• | a $10.0 million decrease in accumulated deferred fuel, excluding FTRs, primarily due to the timing of collections at Cleco Power, partially offset by additional deferrals through a fuel surcharge at Cleco Power, and |
• | a $6.6 million increase in accounts payable, excluding Cleco Power FTR purchases, primarily due to higher accruals |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
• | a $34.7 million decrease in taxes payable primarily due to lower provisions for income taxes and lower corporate franchise taxes, |
• | a $33.5 million increase in customer accounts receivable primarily due to the addition of Cleco Cajun receivables, partially offset by credits to Cleco Power’s customers related to the TCJA, |
• | a $26.2 million increase in material and supplies inventory primarily due to the addition of inventory at Cleco Cajun, |
• | a $11.4 million increase in other current assets primarily due to an indemnification asset at Cleco Cajun as a result of a contingent liability assumed with the Cleco Cajun Transaction, |
• | an $8.5 million increase in other accounts receivable primarily due to the addition of Cleco Cajun receivables, and |
• | a $6.1 million increase in cash and cash equivalents. |
• | an increase in total long-term debt of $295.1 million, as previously discussed, |
• | an increase in deferred lease revenue of $49.9 million as a result of the Cleco Cajun Transaction, |
• | an increase in accumulated deferred federal and state income taxes, net of $49.0 million, |
• | an increase in postretirement benefit obligations of $34.2 million primarily due to lower discount rates, partially offset by a greater return on the fair value of plan assets and a contribution to the plan during 2019, |
• | an increase of $33.8 million in affiliate accounts payable primarily for amounts due to Cleco Group for affiliate settlement of taxes payable, |
• | an increase in intangible liabilities of $31.9 million as a result of the Cleco Cajun Transaction, and |
• | an operating lease liability of $25.8 million as a result of the implementation of new accounting guidance effective January 1, 2019. |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
• | a $40.5 million increase in long-term debt due within one year primarily due to $50.0 million of GO Zone bonds with a mandatory tender in May 2020, partially offset by $9.5 million of lower principal payments for the Cleco Katrina/Rita storm recovery bonds due to the bonds maturing in March 2020, |
• | a $23.2 million decrease in fuel inventory primarily due to lower petroleum coke purchases and lower per unit lignite costs, partially offset by lower lignite usage as a result of the seasonal operations of the Dolet Hills Power Station, |
• | a $10.9 million decrease in customer accounts receivable primarily due to credits to customers related to the TCJA, |
• | a $10.0 million decrease in accumulated deferred fuel, excluding FTRs, primarily due to the timing of collections, partially offset by additional deferrals through a fuel surcharge, |
• | a $6.3 million increase in affiliate accounts payable primarily related to the movement of employees between companies, and |
• | a $4.2 million increase in other regulatory liabilities primarily due to over collections of revenue related to the St. Mary Clean Energy Center project due to the delay in the project commencing commercial operations. |
• | a $31.9 million decrease in accounts payable, excluding FTR purchases, primarily due to lower accrual of operating and maintenance expenses and lower capital expenditures as a result of several capital projects being placed in service in 2019, |
• | a $23.5 million increase in cash and cash equivalents, |
• | an $11.2 million increase in affiliate accounts receivable primarily for amounts due from Cleco Holdings for affiliate settlement of taxes receivable, and |
• | a $9.3 million decrease in taxes payable primarily due to lower provisions for income taxes and lower corporate franchise taxes. |
• | an increase in accumulated deferred federal and state income taxes, net of $27.1 million, |
• | an increase in operating lease liability of $25.7 million as a result of the implementation of new accounting guidance effective January 1, 2019, and |
• | an increase in postretirement benefit obligations of $23.6 million primarily due to lower discount rates, partially offset by a greater return on the fair value of plan assets and a contribution to the plan during 2019. |
• | a decrease in accounts payable of $36.2 million primarily due to lower accrual of operating and maintenance expenses and lower capital expenditures as a result of several capital projects being placed in service in 2019 and |
• | a decrease in total long-term debt of $20.0 million, as previously discussed. |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
• | $124.0 million for the addition of Cleco Cajun operations, including receipts of $37.7 million as a result of the Cottonwood Sale Leaseback, |
• | higher net fuel and purchased power collections at Cleco Power of $29.7 million primarily due to the timing of collections, and |
• | lower payments for fuel purchases of $18.6 million primarily due to lower purchases of petroleum coke at Cleco Power. |
• | payments for pension plan contributions of $12.3 million at Cleco Power, |
• | lower receipts of $8.6 million, primarily due to the timing of receipts of Cleco Power’s joint owners’ portion of generating stations expenditures, |
• | lower Cleco Power customer deposits of $7.9 million, and |
• | higher interest paid on long-term debt at Cleco Holdings of $6.8 million primarily as a result of additional borrowings to finance the Cleco Cajun Transaction. |
• | higher collections from customers of $25.3 million due to lower 2016 Merger credits used in 2018 and the timing of collections of accounts receivables, |
• | lower payments for fuel purchases of $23.6 million primarily due to lower deliveries of lignite and petroleum coke, |
• | lower payments for affiliate settlements of $18.1 million |
• | lower vendor payments of $18.0 million due to timing of property tax payments, and |
• | higher receipts of $8.1 million primarily due to timing of receipts of joint owners’ portion of generating station expenditures. |
• | lower net fuel and power purchase collections of $30.4 million primarily due to timing of collections and |
• | higher payments for employee benefits of $8.2 million. |
• | payment for the acquisition of all the membership interest in South Central Generating of $962.2 million, partially offset by cash received of $147.2 million and |
• | higher additions to property, plant, and equipment, net of AFUDC, of $31.5 million. |
• | higher additions to property, plant, and equipment, net of AFUDC, of $48.3 million, |
• | the issuance of a $16.8 million note receivable, and |
• | the absence of proceeds from the sale of transmission assets of $16.7 million. |
• | borrowings of $400.0 million related to the financing of the Cleco Cajun Transaction, |
• | higher contributions from Cleco Group of $384.9 million, |
• | the issuance of $300.0 million in senior notes at Cleco Holdings, and |
• | the absence of distributions to Cleco Group of $71.4 million. |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
• | higher repayments of long-term debt of $371.4 million and |
• | the absence of the $50.0 million issuance of senior notes in March 2018 at Cleco Power. |
• | higher net fuel and power purchase collections of $29.7 million primarily due to the timing of collections, |
• | lower payments for fuel purchases of $18.6 million primarily due to lower purchases of petroleum coke, and |
• | lower payments for employee benefits of $7.8 million. |
• | lower payments for affiliate settlements of $23.6 million, |
• | payments for pension plan contributions of $12.3 million, and |
• | lower receipts for other accounts receivable of $8.6 million, primarily due to the timing of receipts of joint owners’ portion of generating station expenditures. |
• | higher collections from customers of $25.3 million due to lower 2016 Merger credits used in 2018 and the timing of collections of accounts receivables, |
• | lower payments for fuel purchases of $23.6 million primarily due to lower deliveries of lignite and petroleum coke, |
• | lower payments of $18.0 million due to timing of property tax payments, |
• | higher receipts of $8.1 million primarily due to timing of receipts of joint owners’ portion of generating station expenditures, and |
• | lower payment for affiliate settlements of $5.3 million. |
• | lower net fuel and power purchase collections of $30.4 million primarily due to timing of collections and |
• | higher payments for employee benefits of $6.4 million. |
• | higher additions to property, plant, and equipment, net of AFUDC, of $48.1 million and |
• | the issuance of a $16.8 million note receivable. |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
Cleco | |||||||||||||
PROJECT (THOUSANDS) | 2020 | % | 2020-2024 | % | |||||||||
Environmental | $ | — | — | % | $ | 71,000 | 5 | % | |||||
New business | 50,000 | 17 | % | 169,000 | 11 | % | |||||||
Transmission reliability | 67,000 | 22 | % | 222,000 | 15 | % | |||||||
Fuel optimization | — | — | % | 265,000 | 18 | % | |||||||
General (1) | 182,000 | 61 | % | 764,000 | 51 | % | |||||||
Total capital expenditures | $ | 299,000 | 100 | % | $ | 1,491,000 | 100 | % | |||||
Debt payments | 11,000 | 681,000 | |||||||||||
Total capital expenditures and debt payments | $ | 310,000 | $ | 2,172,000 | |||||||||
(1)Primarily consists of rehabilitation projects of older transmission, distribution, and generation assets and hardware and software upgrades at Cleco Power. |
Cleco Power | |||||||||||||
PROJECT (THOUSANDS) | 2020 | % | 2020-2024 | % | |||||||||
Environmental | $ | — | — | % | $ | 45,000 | 3 | % | |||||
New business | 50,000 | 18 | % | 169,000 | 13 | % | |||||||
Transmission reliability | 67,000 | 25 | % | 222,000 | 16 | % | |||||||
Fuel optimization | — | — | % | 265,000 | 19 | % | |||||||
General (1) | 156,000 | 57 | % | 672,000 | 49 | % | |||||||
Total capital expenditures | $ | 273,000 | 100 | % | $ | 1,373,000 | 100 | % | |||||
Debt payments | 11,000 | 186,000 | |||||||||||
Total capital expenditures and debt payments | $ | 284,000 | $ | 1,559,000 | |||||||||
(1)Primarily consists of rehabilitation projects of older transmission, distribution, and generation assets and hardware and software upgrades. |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
PAYMENTS DUE BY PERIOD | |||||||||||||||||||
CONTRACTUAL OBLIGATIONS (THOUSANDS) | TOTAL | LESS THAN ONE YEAR | 1-3 YEARS | 3-5 YEARS | MORE THAN 5 YEARS | ||||||||||||||
Cleco | |||||||||||||||||||
Long-term debt (1) | $ | 4,781,024 | $ | 141,829 | $ | 598,210 | $ | 542,643 | $ | 3,498,342 | |||||||||
Finance lease (2) | 34,099 | 2,612 | 5,222 | 5,222 | 21,043 | ||||||||||||||
Operating lease (3) | 36,814 | 4,982 | 6,730 | 6,484 | 18,618 | ||||||||||||||
Purchase (4) | 209,360 | 120,978 | 55,296 | 18,612 | 14,474 | ||||||||||||||
Other long-term liabilities (5) | 18,935 | 5,738 | 6,148 | 5,249 | 1,800 | ||||||||||||||
Postretirement benefits (6) | 272,906 | 9,146 | 42,517 | 56,051 | 165,192 | ||||||||||||||
Total Cleco | $ | 5,353,138 | $ | 285,285 | $ | 714,123 | $ | 634,261 | $ | 3,719,469 | |||||||||
Cleco Power | |||||||||||||||||||
Long-term debt (1) | $ | 2,354,387 | $ | 77,634 | $ | 156,857 | $ | 277,169 | $ | 1,842,727 | |||||||||
Finance lease (2) | 34,099 | 2,612 | 5,222 | 5,222 | 21,043 | ||||||||||||||
Operating lease (3) | 35,679 | 3,960 | 6,665 | 6,436 | 18,618 | ||||||||||||||
Purchase (4) | 127,021 | 50,431 | 47,857 | 15,491 | 13,242 | ||||||||||||||
Other long-term liabilities (5) | 10,800 | 1,800 | 3,600 | 3,600 | 1,800 | ||||||||||||||
Postretirement benefits (6) | 61,800 | — | 24,100 | 37,700 | — | ||||||||||||||
Total Cleco Power | $ | 2,623,786 | $ | 136,437 | $ | 244,301 | $ | 345,618 | $ | 1,897,430 |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
RISK OVERVIEW |
• | routine reviewing of counterparty credit quality and credit exposure, |
• | entering into standard industry master agreements, and |
• | exchanging guarantees or forms of cash equivalent collateral for financial assurance as deemed necessary. |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
AT DEC. 31, 2019 | |||||||||
(THOUSANDS) | BALANCE SHEET LINE ITEM | CLECO POWER | CLECO | ||||||
Commodity-related contracts | |||||||||
FTRs | |||||||||
Current | Energy risk management assets | $ | 6,311 | $ | 6,822 | ||||
Current | Energy risk management liabilities | 586 | 1,044 | ||||||
Other commodity derivatives | |||||||||
Current | Energy risk management assets | — | 201 | ||||||
Current | Energy risk management liabilities | — | 3,069 | ||||||
Non-current | Other deferred credits | — | 2,304 | ||||||
Commodity-related contracts, net | $ | 5,725 | $ | 606 |
FOR THE YEAR ENDED DEC. 31, 2019 | |||||||||||||||
(THOUSANDS) | AT DEC. 31, 2019 | HIGH | LOW | AVERAGE | |||||||||||
Cleco | $ | 4,907 | $ | 5,001 | $ | 951 | $ | 2,662 |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA |
Report of Independent Registered Public Accounting Firm |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
CLECO | |||||||||||
Consolidated Statements of Income | |||||||||||
FOR THE YEAR ENDED DEC. 31, | |||||||||||
(THOUSANDS) | 2019 | 2018 | 2017 | ||||||||
Operating revenue | |||||||||||
Electric operations | $ | 1,496,736 | $ | 1,181,907 | $ | 1,097,632 | |||||
Other operations | 182,832 | 82,332 | 79,580 | ||||||||
Gross operating revenue | 1,679,568 | 1,264,239 | 1,177,212 | ||||||||
Electric customer credits | (39,963 | ) | (33,195 | ) | (1,566 | ) | |||||
Operating revenue, net | 1,639,605 | 1,231,044 | 1,175,646 | ||||||||
Operating expenses | |||||||||||
Fuel used for electric generation | 466,831 | 382,556 | 339,346 | ||||||||
Purchased power | 280,991 | 168,180 | 152,913 | ||||||||
Other operations and maintenance | 291,031 | 197,032 | 197,608 | ||||||||
Depreciation and amortization | 216,320 | 170,414 | 166,854 | ||||||||
Taxes other than income taxes | 61,870 | 48,791 | 48,546 | ||||||||
Merger transaction and commitment costs | 7,668 | 19,514 | 5,152 | ||||||||
Total operating expenses | 1,324,711 | 986,487 | 910,419 | ||||||||
Operating income | 314,894 | 244,557 | 265,227 | ||||||||
Interest income | 6,090 | 6,073 | 1,424 | ||||||||
Allowance for equity funds used during construction | 15,397 | 14,159 | 8,320 | ||||||||
Other income (expense), net | 758 | (14,328 | ) | (6,899 | ) | ||||||
Interest charges | |||||||||||
Interest charges, net | 147,346 | 131,348 | 125,200 | ||||||||
Allowance for borrowed funds used during construction | (6,037 | ) | (4,706 | ) | (2,287 | ) | |||||
Total interest charges | 141,309 | 126,642 | 122,913 | ||||||||
Income before income taxes | 195,830 | 123,819 | 145,159 | ||||||||
Federal and state income tax expense | 43,165 | 29,382 | 7,079 | ||||||||
Net income | $ | 152,665 | $ | 94,437 | $ | 138,080 | |||||
The accompanying notes are an integral part of the consolidated financial statements. |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
CLECO | |||||||||||
Consolidated Statements of Comprehensive Income | |||||||||||
FOR THE YEAR ENDED DEC. 31, | |||||||||||
(THOUSANDS) | 2019 | 2018 | 2017 | ||||||||
Net income | $ | 152,665 | $ | 94,437 | $ | 138,080 | |||||
Other comprehensive (loss) income, net of tax | |||||||||||
Postretirement benefits (loss) gain (net of tax benefit of $6,808, tax expense of $1,868, and tax benefit of $2,764, respectively) | (19,299 | ) | 5,296 | (4,421 | ) | ||||||
Total other comprehensive (loss) income, net of tax | (19,299 | ) | 5,296 | (4,421 | ) | ||||||
Comprehensive income, net of tax | $ | 133,366 | $ | 99,733 | $ | 133,659 | |||||
The accompanying notes are an integral part of the consolidated financial statements. |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
CLECO | |||||||
Consolidated Balance Sheets | |||||||
AT DEC. 31, | |||||||
(THOUSANDS) | 2019 | 2018 | |||||
Assets | |||||||
Current assets | |||||||
Cash and cash equivalents | $ | 116,292 | $ | 110,175 | |||
Restricted cash and cash equivalents | 11,100 | 11,241 | |||||
Customer accounts receivable (less allowance for doubtful accounts of $3,005 in 2019 and $814 in 2018) | 83,591 | 50,043 | |||||
Other accounts receivable | 35,731 | 27,196 | |||||
Unbilled revenue | 33,207 | 35,314 | |||||
Fuel inventory, at average cost | 83,061 | 82,836 | |||||
Materials and supplies, at average cost | 118,858 | 92,671 | |||||
Energy risk management assets | 7,023 | 23,355 | |||||
Accumulated deferred fuel | 22,910 | 20,112 | |||||
Cash surrender value of company-/trust-owned life insurance policies | 86,096 | 80,391 | |||||
Prepayments | 7,711 | 7,911 | |||||
Regulatory assets | 19,807 | 22,461 | |||||
Other current assets | 12,688 | 1,256 | |||||
Total current assets | 638,075 | 564,962 | |||||
Property, plant, and equipment | |||||||
Property, plant, and equipment | 4,982,255 | 3,728,477 | |||||
Accumulated depreciation | (454,874 | ) | (303,727 | ) | |||
Net property, plant, and equipment | 4,527,381 | 3,424,750 | |||||
Construction work in progress | 117,630 | 354,045 | |||||
Total property, plant, and equipment, net | 4,645,011 | 3,778,795 | |||||
Equity investment in investee | 17,072 | 18,172 | |||||
Goodwill | 1,490,797 | 1,490,797 | |||||
Prepayments | 25,949 | 2,251 | |||||
Operating lease right of use assets | 28,791 | — | |||||
Restricted cash and cash equivalents | 15,203 | 18,670 | |||||
Note receivable | 15,198 | 15,829 | |||||
Regulatory assets | 422,431 | 425,330 | |||||
Intangible assets | 138,103 | 84,307 | |||||
Other deferred charges | 39,668 | 37,701 | |||||
Total assets | $ | 7,476,298 | $ | 6,436,814 | |||
The accompanying notes are an integral part of the consolidated financial statements. | |||||||
(Continued on next page) |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
CLECO | |||||||
Consolidated Balance Sheets | |||||||
AT DEC. 31, | |||||||
(THOUSANDS) | 2019 | 2018 | |||||
Liabilities and member’s equity | |||||||
Liabilities | |||||||
Current liabilities | |||||||
Long-term debt and finance leases due within one year | $ | 125,986 | $ | 21,128 | |||
Accounts payable | 158,863 | 156,589 | |||||
Accounts payable- affiliate | 33,780 | — | |||||
Customer deposits | 58,289 | 61,736 | |||||
Provision for rate refund | 38,903 | 35,842 | |||||
Taxes payable, net | 8,931 | 43,674 | |||||
Interest accrued | 19,001 | 15,828 | |||||
Energy risk management liabilities | 4,113 | 468 | |||||
Regulatory liabilities - other | 6,675 | 2,496 | |||||
Deferred compensation | 12,115 | 10,753 | |||||
Other current liabilities | 44,683 | 30,536 | |||||
Total current liabilities | 511,339 | 379,050 | |||||
Long-term liabilities and deferred credits | |||||||
Accumulated deferred federal and state income taxes, net | 657,058 | 608,030 | |||||
Postretirement benefit obligations | 283,075 | 249,264 | |||||
Regulatory liabilities - other | — | 2,496 | |||||
Regulatory liabilities - deferred taxes, net | 146,948 | 155,537 | |||||
Restricted storm reserve | 12,285 | 15,485 | |||||
Deferred lease revenue | 49,862 | — | |||||
Intangible liabilities | 31,872 | — | |||||
Asset retirement obligations | 23,173 | 6,881 | |||||
Operating lease liabilities | 25,779 | — | |||||
Other deferred credits | 27,222 | 20,846 | |||||
Total long-term liabilities and deferred credits | 1,257,274 | 1,058,539 | |||||
Long-term debt and finance leases, net | 3,064,679 | 2,874,485 | |||||
Total liabilities | 4,833,292 | 4,312,074 | |||||
Commitments and contingencies (Note 15) | |||||||
Member’s equity | 2,643,006 | 2,124,740 | |||||
Total liabilities and member’s equity | $ | 7,476,298 | $ | 6,436,814 | |||
The accompanying notes are an integral part of the consolidated financial statements. |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
CLECO | ||||||||||||
Consolidated Statements of Cash Flows | ||||||||||||
FOR THE YEAR ENDED DEC. 31, | ||||||||||||
(THOUSANDS) | 2019 | 2018 | 2017 | |||||||||
Operating activities | ||||||||||||
Net income | $ | 152,665 | $ | 94,437 | $ | 138,080 | ||||||
Adjustment to reconcile net income to net cash provided by operating activities | ||||||||||||
Depreciation and amortization | 245,682 | 187,426 | 186,326 | |||||||||
Provision for doubtful accounts | 2,348 | 797 | 2,778 | |||||||||
Unearned compensation expense | 5,409 | 5,837 | 3,745 | |||||||||
Allowance for equity funds used during construction | (15,397 | ) | (14,159 | ) | (8,320 | ) | ||||||
Loss on risk management assets and liabilities, net | 10,180 | — | — | |||||||||
Deferred lease revenue | (8,439 | ) | — | — | ||||||||
Deferred income taxes | 40,081 | 6,543 | (41,966 | ) | ||||||||
Deferred fuel costs | 11,132 | (18,549 | ) | 11,909 | ||||||||
Cash surrender value of company-/trust-owned life insurance | (5,705 | ) | 2,726 | (5,892 | ) | |||||||
Changes in assets and liabilities | ||||||||||||
Accounts receivable | (9,532 | ) | 3,123 | (25,584 | ) | |||||||
Accounts receivable - affiliate | (1,041 | ) | 635 | (622 | ) | |||||||
Unbilled revenue | 2,107 | 1,084 | (2,129 | ) | ||||||||
Fuel inventory and materials and supplies | 18,463 | (2,981 | ) | (44,995 | ) | |||||||
Prepayments | (14,479 | ) | 153 | 2,852 | ||||||||
Accounts payable | 13,507 | 18,898 | 14,705 | |||||||||
Accounts payable - affiliate | 3,175 | — | — | |||||||||
Customer deposits | 5,888 | 13,757 | 12,381 | |||||||||
Provision for merger commitments | (1,848 | ) | (3,273 | ) | (12,971 | ) | ||||||
Postretirement benefit obligations | (10,981 | ) | 4,646 | 4,884 | ||||||||
Regulatory assets and liabilities, net | 90 | 3,032 | 12,531 | |||||||||
Other deferred accounts | (7,147 | ) | (9,748 | ) | (8,380 | ) | ||||||
Taxes accrued | (3,619 | ) | 20,976 | 23,118 | ||||||||
Interest accrued | 3,173 | 1,124 | (582 | ) | ||||||||
Deferred compensation | 1,316 | (1,521 | ) | 308 | ||||||||
Other operating | (6,909 | ) | 2,798 | 3,252 | ||||||||
Net cash provided by operating activities | 430,119 | 317,761 | 265,428 | |||||||||
Investing activities | ||||||||||||
Additions to property, plant, and equipment | (323,791 | ) | (291,061 | ) | (236,932 | ) | ||||||
Allowance for equity funds used during construction | 15,397 | 14,159 | 8,320 | |||||||||
Proceeds from sale of property, plant, and equipment | 739 | 995 | 17,499 | |||||||||
Reimbursement for property loss | 141 | 1,375 | 187 | |||||||||
Return of equity investment in investee | 1,100 | — | 500 | |||||||||
Return of investment in company-owned life insurance | 3,761 | — | — | |||||||||
Return of equity investment in tax credit fund | 1,625 | 2,775 | 7,502 | |||||||||
Issuance of note receivable | — | (16,800 | ) | — | ||||||||
Payment to acquire business, net of cash received | (814,969 | ) | — | — | ||||||||
Other investing | 574 | 397 | (630 | ) | ||||||||
Net cash used in investing activities | (1,115,423 | ) | (288,160 | ) | (203,554 | ) | ||||||
The accompanying notes are an integral part of the consolidated financial statements. | ||||||||||||
(Continued on next page) |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
CLECO | ||||||||||||
Consolidated Statements of Cash Flows | ||||||||||||
FOR THE YEAR ENDED DEC. 31, | ||||||||||||
(THOUSANDS) | 2019 | 2018 | 2017 | |||||||||
Financing activities | ||||||||||||
Draws on credit facilities | 108,000 | — | 179,000 | |||||||||
Payments on credit facilities | (108,000 | ) | — | (179,000 | ) | |||||||
Issuances of long-term debt | 700,000 | 50,000 | 125,000 | |||||||||
Repayments of long-term debt | (390,571 | ) | (19,193 | ) | (17,896 | ) | ||||||
Payment of financing costs | (5,959 | ) | (791 | ) | (463 | ) | ||||||
Contribution from member | 384,900 | — | — | |||||||||
Distributions to member | — | (71,350 | ) | (84,065 | ) | |||||||
Other financing | (557 | ) | (383 | ) | (1,819 | ) | ||||||
Net cash provided by (used in) financing activities | 687,813 | (41,717 | ) | 20,757 | ||||||||
Net increase (decrease) in cash, cash equivalents, restricted cash, and restricted cash equivalents | 2,509 | (12,116 | ) | 82,631 | ||||||||
Cash, cash equivalents, restricted cash, and restricted cash equivalents at beginning of period | 140,086 | (1) | 152,202 | 69,571 | ||||||||
Cash, cash equivalents, restricted cash, and restricted cash equivalents at end of period | $ | 142,595 | (2) | $ | 140,086 | (1) | $ | 152,202 | ||||
Supplementary cash flow information | ||||||||||||
Interest paid, net of amount capitalized | $ | 130,988 | $ | 124,154 | $ | 118,009 | ||||||
Income taxes (refunded) paid, net | $ | (19 | ) | $ | 272 | $ | (6 | ) | ||||
Supplementary non-cash investing and financing activities | ||||||||||||
Accrued additions to property, plant, and equipment | $ | 16,124 | $ | 56,450 | $ | 31,083 | ||||||
Non-cash additions to property, plant, and equipment | $ | 52 | $ | 1,224 | $ | 3,015 | ||||||
Incurrence of finance lease obligation - barges | $ | — | $ | 16,800 | $ | — | ||||||
(1) | Includes cash and cash equivalents of $110,175, current restricted cash and cash equivalents of $11,241, and non-current restricted cash and cash equivalents of $18,670. | |||||||||||
(2) | Includes cash and cash equivalents of $116,292, current restricted cash and cash equivalents of $11,100, and non-current restricted cash and cash equivalents of $15,203. | |||||||||||
The accompanying notes are an integral part of the consolidated financial statements. |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
CLECO | |||||||||||||||
Consolidated Statements of Changes in Member’s Equity | |||||||||||||||
(THOUSANDS) | MEMBERSHIP INTEREST | RETAINED EARNINGS/ (ACCUMULATED DEFICIT) | AOCI | TOTAL MEMBER’S EQUITY | |||||||||||
Balances,Dec. 31, 2016 | $ | 2,069,376 | $ | (24,113 | ) | $ | 1,500 | $ | 2,046,763 | ||||||
Distributions to member | — | (84,065 | ) | — | (84,065 | ) | |||||||||
Net income | — | 138,080 | — | 138,080 | |||||||||||
Other comprehensive loss, net of tax | — | — | (4,421 | ) | (4,421 | ) | |||||||||
Balances, Dec. 31, 2017 | $ | 2,069,376 | $ | 29,902 | $ | (2,921 | ) | $ | 2,096,357 | ||||||
Distributions to member | — | (71,350 | ) | — | (71,350 | ) | |||||||||
Net income | — | 94,437 | — | 94,437 | |||||||||||
Other comprehensive income, net of tax | — | — | 5,296 | 5,296 | |||||||||||
Reclassification of effect of tax rate change | — | 589 | (589 | ) | — | ||||||||||
Balances, Dec. 31, 2018 | $ | 2,069,376 | $ | 53,578 | $ | 1,786 | $ | 2,124,740 | |||||||
Contributions from member | — | 384,900 | — | 384,900 | |||||||||||
Net income | — | 152,665 | — | 152,665 | |||||||||||
Other comprehensive loss, net of tax | — | — | (19,299 | ) | (19,299 | ) | |||||||||
Balances, Dec. 31, 2019 | $ | 2,069,376 | $ | 591,143 | $ | (17,513 | ) | $ | 2,643,006 | ||||||
The accompanying notes are an integral part of the consolidated financial statements. |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
Report of Independent Registered Public Accounting Firm |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
CLECO POWER | |||||||||||
Consolidated Statements of Income | |||||||||||
FOR THE YEAR ENDED DEC. 31, | |||||||||||
(THOUSANDS) | 2019 | 2018 | 2017 | ||||||||
Operating revenue | |||||||||||
Electric operations | $ | 1,130,928 | $ | 1,191,587 | $ | 1,108,389 | |||||
Other operations | 72,833 | 82,330 | 77,522 | ||||||||
Affiliate revenue | 3,125 | 874 | 851 | ||||||||
Gross operating revenue | 1,206,886 | 1,274,791 | 1,186,762 | ||||||||
Electric customer credits | (38,516 | ) | (33,195 | ) | (1,566 | ) | |||||
Operating revenue, net | 1,168,370 | 1,241,596 | 1,185,196 | ||||||||
Operating expenses | |||||||||||
Fuel used for electric generation | 385,317 | 382,556 | 339,346 | ||||||||
Purchased power | 111,208 | 168,180 | 152,913 | ||||||||
Other operations and maintenance | 207,164 | 202,552 | 202,738 | ||||||||
Depreciation and amortization | 172,471 | 162,069 | 158,415 | ||||||||
Taxes other than income taxes | 43,742 | 47,267 | 46,539 | ||||||||
Total operating expenses | 919,902 | 962,624 | 899,951 | ||||||||
Operating income | 248,468 | 278,972 | 285,245 | ||||||||
Interest income | 4,744 | 5,052 | 1,283 | ||||||||
Allowance for equity funds used during construction | 15,397 | 14,159 | 8,320 | ||||||||
Other expense, net | (3,616 | ) | (8,699 | ) | (7,417 | ) | |||||
Interest charges | |||||||||||
Interest charges, net | 77,316 | 76,009 | 71,649 | ||||||||
Allowance for borrowed funds used during construction | (6,037 | ) | (4,706 | ) | (2,287 | ) | |||||
Total interest charges | 71,279 | 71,303 | 69,362 | ||||||||
Income before income taxes | 193,714 | 218,181 | 218,069 | ||||||||
Federal and state income tax expense | 45,452 | 55,924 | 67,331 | ||||||||
Net income | $ | 148,262 | $ | 162,257 | $ | 150,738 | |||||
The accompanying notes are an integral part of the consolidated financial statements. |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
CLECO POWER | |||||||||||
Consolidated Statements of Comprehensive Income | |||||||||||
FOR THE YEAR ENDED DEC. 31, | |||||||||||
(THOUSANDS) | 2019 | 2018 | 2017 | ||||||||
Net income | $ | 148,262 | $ | 162,257 | $ | 150,738 | |||||
Other comprehensive income (loss), net of tax | |||||||||||
Postretirement benefits gain (loss) (net of tax benefit of $3,408, tax expense of $968, and tax benefit of $296, respectively) | (9,657 | ) | 2,743 | (472 | ) | ||||||
Amortization of interest rate derivatives to earnings (net of tax expense of $90, $90, and $132, respectively) | 254 | 254 | 211 | ||||||||
Total other comprehensive (loss) income, net of tax | (9,403 | ) | 2,997 | (261 | ) | ||||||
Comprehensive income, net of tax | $ | 138,859 | $ | 165,254 | $ | 150,477 | |||||
The accompanying notes are an integral part of the consolidated financial statements. |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
CLECO POWER | |||||||
Consolidated Balance Sheets | |||||||
AT DEC. 31, | |||||||
(THOUSANDS) | 2019 | 2018 | |||||
Assets | |||||||
Utility plant and equipment | |||||||
Property, plant, and equipment | $ | 5,489,457 | $ | 5,015,004 | |||
Accumulated depreciation | (1,905,031 | ) | (1,804,563 | ) | |||
Net property, plant, and equipment | 3,584,426 | 3,210,441 | |||||
Construction work in progress | 111,687 | 351,828 | |||||
Total utility plant and equipment, net | 3,696,113 | 3,562,269 | |||||
Current assets | |||||||
Cash and cash equivalents | 55,489 | 31,987 | |||||
Restricted cash and cash equivalents | 11,100 | 11,241 | |||||
Customer accounts receivable (less allowance for doubtful accounts of $3,005 in 2019 and $814 in 2018) | 39,165 | 50,043 | |||||
Accounts receivable - affiliate | 14,481 | 3,318 | |||||
Other accounts receivable | 24,604 | 24,523 | |||||
Unbilled revenue | 33,207 | 35,314 | |||||
Fuel inventory, at average cost | 59,602 | 82,836 | |||||
Materials and supplies, at average cost | 91,941 | 92,671 | |||||
Energy risk management assets | 6,311 | 23,355 | |||||
Accumulated deferred fuel | 22,910 | 20,112 | |||||
Cash surrender value of company-owned life insurance policies | 17,574 | 20,497 | |||||
Prepayments | 4,786 | 6,143 | |||||
Regulatory assets | 10,973 | 13,603 | |||||
Other current assets | 655 | 1,162 | |||||
Total current assets | 392,798 | 416,805 | |||||
Equity investment in investee | 17,072 | 18,172 | |||||
Prepayments | 2,693 | 2,251 | |||||
Operating lease right of use assets | 28,633 | — | |||||
Restricted cash and cash equivalents | 14,363 | 18,649 | |||||
Note receivable | 15,198 | 15,829 | |||||
Regulatory assets | 272,289 | 261,569 | |||||
Intangible asset | 517 | 21,093 | |||||
Other deferred charges | 36,854 | 32,419 | |||||
Total assets | $ | 4,476,530 | $ | 4,349,056 | |||
The accompanying notes are an integral part of the consolidated financial statements. | |||||||
(Continued on next page) |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
CLECO POWER | |||||||
Consolidated Balance Sheets | |||||||
AT DEC. 31, | |||||||
(THOUSANDS) | 2019 | 2018 | |||||
Liabilities and member’s equity | |||||||
Member’s equity | $ | 1,713,392 | $ | 1,594,533 | |||
Long-term debt and finance leases, net | 1,327,372 | 1,387,774 | |||||
Total capitalization | 3,040,764 | 2,982,307 | |||||
Current liabilities | |||||||
Long-term debt and finance leases due within one year | 61,587 | 21,128 | |||||
Accounts payable | 110,096 | 146,314 | |||||
Accounts payable - affiliate | 14,123 | 7,843 | |||||
Customer deposits | 58,289 | 61,736 | |||||
Provision for rate refund | 38,241 | 35,842 | |||||
Taxes payable, net | 38,888 | 48,177 | |||||
Interest accrued | 7,972 | 8,252 | |||||
Energy risk management liabilities | 586 | 468 | |||||
Regulatory liabilities - other | 6,675 | 2,496 | |||||
Other current liabilities | 22,802 | 22,263 | |||||
Total current liabilities | 359,259 | 354,519 | |||||
Commitments and contingencies (Note 15) | |||||||
Long-term liabilities and deferred credits | |||||||
Accumulated deferred federal and state income taxes, net | 657,834 | 630,765 | |||||
Postretirement benefit obligations | 206,270 | 182,721 | |||||
Regulatory liabilities - other | — | 2,496 | |||||
Regulatory liabilities - deferred taxes, net | 146,948 | 155,537 | |||||
Restricted storm reserve | 12,285 | 15,485 | |||||
Asset retirement obligations | 7,325 | 6,881 | |||||
Operating lease liabilities | 25,658 | — | |||||
Other deferred credits | 20,187 | 18,345 | |||||
Total long-term liabilities and deferred credits | 1,076,507 | 1,012,230 | |||||
Total liabilities and member’s equity | $ | 4,476,530 | $ | 4,349,056 | |||
The accompanying notes are an integral part of the consolidated financial statements. |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
CLECO POWER | ||||||||||||
Consolidated Statements of Cash Flows | ||||||||||||
FOR THE YEAR ENDED DEC. 31, | ||||||||||||
(THOUSANDS) | 2019 | 2018 | 2017 | |||||||||
Operating activities | ||||||||||||
Net income | $ | 148,262 | $ | 162,257 | $ | 150,738 | ||||||
Adjustment to reconcile net income to net cash provided by operating activities | ||||||||||||
Depreciation and amortization | 178,245 | 168,248 | 165,200 | |||||||||
Provision for doubtful accounts | 2,348 | 797 | 2,677 | |||||||||
Unearned compensation expense | 974 | 1,873 | 1,972 | |||||||||
Allowance for equity funds used during construction | (15,397 | ) | (14,159 | ) | (8,320 | ) | ||||||
Deferred income taxes | 21,799 | (11,545 | ) | (34,191 | ) | |||||||
Deferred fuel costs | 11,132 | (18,549 | ) | 11,909 | ||||||||
Cash surrender value of company-owned life insurance | 2,923 | (219 | ) | (260 | ) | |||||||
Changes in assets and liabilities | ||||||||||||
Accounts receivable | (4,740 | ) | 3,967 | (25,696 | ) | |||||||
Accounts receivable - affiliate | 728 | 426 | 1,865 | |||||||||
Unbilled revenue | 2,107 | 1,084 | (2,129 | ) | ||||||||
Fuel inventory and materials and supplies | 21,121 | (2,981 | ) | (44,995 | ) | |||||||
Prepayments | 386 | 107 | 2,745 | |||||||||
Accounts payable | 14,659 | 22,419 | 11,005 | |||||||||
Accounts payable - affiliate | 5,912 | (4,700 | ) | 1,349 | ||||||||
Customer deposits | 5,888 | 13,757 | 12,381 | |||||||||
Provision for merger commitments | (1,848 | ) | (3,273 | ) | (12,971 | ) | ||||||
Postretirement benefit obligations | (10,078 | ) | 4,252 | 4,849 | ||||||||
Regulatory assets and liabilities, net | (1,897 | ) | 1,044 | 10,544 | ||||||||
Other deferred accounts | (6,338 | ) | (5,421 | ) | (8,137 | ) | ||||||
Taxes accrued | (20,881 | ) | 16,566 | 44,101 | ||||||||
Interest accrued | (280 | ) | 1,169 | (59 | ) | |||||||
Other operating | (2,541 | ) | 2,569 | 2,501 | ||||||||
Net cash provided by operating activities | 352,484 | 339,688 | 287,078 | |||||||||
Investing activities | ||||||||||||
Additions to property, plant, and equipment | (313,962 | ) | (289,153 | ) | (235,252 | ) | ||||||
Allowance for equity funds used during construction | 15,397 | 14,159 | 8,320 | |||||||||
Proceeds from sale of property, plant, and equipment | 739 | 995 | 4,078 | |||||||||
Reimbursement for property loss | 141 | 1,375 | 187 | |||||||||
Issuance of note receivable | — | (16,800 | ) | — | ||||||||
Return of equity investment in investee | 1,100 | — | 500 | |||||||||
Return of investment in company-owned life insurance | 3,761 | — | — | |||||||||
Other investing | 574 | 397 | — | |||||||||
Net cash used in investing activities | (292,250 | ) | (289,027 | ) | (222,167 | ) | ||||||
The accompanying notes are an integral part of the consolidated financial statements. | ||||||||||||
(Continued on next page) |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
CLECO POWER | ||||||||||||
Consolidated Statements of Cash Flows | ||||||||||||
FOR THE YEAR ENDED DEC. 31, | ||||||||||||
(THOUSANDS) | 2019 | 2018 | 2017 | |||||||||
Financing activities | ||||||||||||
Draws on credit facility | 33,000 | — | 106,000 | |||||||||
Payments on credit facility | (33,000 | ) | — | (106,000 | ) | |||||||
Issuances of long-term debt | — | 50,000 | 125,000 | |||||||||
Repayments of long-term debt | (20,571 | ) | (19,193 | ) | (17,896 | ) | ||||||
Distributions to member | (20,000 | ) | (121,400 | ) | (135,000 | ) | ||||||
Other financing | (588 | ) | (1,148 | ) | (2,013 | ) | ||||||
Net cash used in financing activities | (41,159 | ) | (91,741 | ) | (29,909 | ) | ||||||
Net increase (decrease) in cash, cash equivalents, restricted cash, and restricted cash equivalents | 19,075 | (41,080 | ) | 35,002 | ||||||||
Cash, cash equivalents, restricted cash, and restricted cash equivalents at beginning of period | 61,877 | (1) | 102,957 | 67,955 | ||||||||
Cash, cash equivalents, restricted cash, and restricted cash equivalents at end of period | $ | 80,952 | (2) | $ | 61,877 | (1) | $ | 102,957 | ||||
Supplementary cash flow information | ||||||||||||
Interest paid, net of amount capitalized | $ | 67,391 | $ | 70,357 | $ | 65,984 | ||||||
Supplementary non-cash investing and financing activities | ||||||||||||
Accrued additions to property, plant, and equipment | $ | 14,894 | $ | 55,718 | $ | 30,883 | ||||||
Non-cash additions to property, plant, and equipment | $ | 52 | $ | 1,224 | $ | 3,015 | ||||||
Incurrence of finance lease obligation - barges | $ | — | $ | 16,800 | $ | — | ||||||
(1) | Includes cash and cash equivalents of $31,987, current restricted cash and cash equivalents of $11,241, and non-current restricted cash and cash equivalents of $18,649. | |||||||||||
(2) | Includes cash and cash equivalents of $55,489, current restricted cash and cash equivalents of $11,100, and non-current restricted cash and cash equivalents of $14,363. | |||||||||||
The accompanying notes are an integral part of the consolidated financial statements. |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
CLECO POWER | |||||||||||
Consolidated Statements of Changes in Member’s Equity | |||||||||||
(THOUSANDS) | MEMBER’S EQUITY | AOCI | TOTAL MEMBER’S EQUITY | ||||||||
Balances, Dec. 31, 2016 | $ | 1,548,624 | $ | (13,422 | ) | $ | 1,535,202 | ||||
Distributions to member | (135,000 | ) | — | (135,000 | ) | ||||||
Net income | 150,738 | — | 150,738 | ||||||||
Other comprehensive loss, net of tax | — | (261 | ) | (261 | ) | ||||||
Balances, Dec. 31, 2017 | $ | 1,564,362 | $ | (13,683 | ) | $ | 1,550,679 | ||||
Distributions to member | (121,400 | ) | — | (121,400 | ) | ||||||
Net income | 162,257 | — | 162,257 | ||||||||
Other comprehensive income, net of tax | — | 2,997 | 2,997 | ||||||||
Reclassification of effect of tax rate change | 2,496 | (2,496 | ) | — | |||||||
Balances, Dec. 31, 2018 | $ | 1,607,715 | $ | (13,182 | ) | $ | 1,594,533 | ||||
Distributions to member | (20,000 | ) | — | (20,000 | ) | ||||||
Net income | 148,262 | — | 148,262 | ||||||||
Other comprehensive loss, net of tax | — | (9,403 | ) | (9,403 | ) | ||||||
Balances, Dec. 31, 2019 | $ | 1,735,977 | $ | (22,585 | ) | $ | 1,713,392 | ||||
The accompanying notes are an integral part of the consolidated financial statements. |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
Index to Applicable Notes to the Financial Statements of Registrants |
Note 1 | The Company | Cleco and Cleco Power |
Note 2 | Summary of Significant Accounting Policies | Cleco and Cleco Power |
Note 3 | Business Combinations | Cleco |
Note 4 | Leases | Cleco and Cleco Power |
Note 5 | Revenue Recognition | Cleco and Cleco Power |
Note 6 | Regulatory Assets and Liabilities | Cleco and Cleco Power |
Note 7 | Jointly Owned Generation Units | Cleco and Cleco Power |
Note 8 | Fair Value Accounting | Cleco and Cleco Power |
Note 9 | Debt | Cleco and Cleco Power |
Note 10 | Pension Plan and Employee Benefits | Cleco and Cleco Power |
Note 11 | Income Taxes | Cleco and Cleco Power |
Note 12 | Disclosures about Segments | Cleco |
Note 13 | Regulation and Rates | Cleco and Cleco Power |
Note 14 | Variable Interest Entities | Cleco and Cleco Power |
Note 15 | Litigation, Other Commitments and Contingencies, and Disclosures about Guarantees | Cleco and Cleco Power |
Note 16 | Affiliate Transactions | Cleco and Cleco Power |
Note 17 | Intangible Assets, Intangible Liabilities, and Goodwill | Cleco and Cleco Power |
Note 18 | Accumulated Other Comprehensive Loss | Cleco and Cleco Power |
Note 19 | Miscellaneous Financial Information (Unaudited) | Cleco and Cleco Power |
Notes to the Financial Statements |
Note 1 — The Company |
• | Cleco Power, a regulated electric utility subsidiary, which owns 10 generating units with a total nameplate capacity of 3,360 MW and serves approximately 288,000 customers in Louisiana through its retail business and supplies wholesale power in Louisiana and Mississippi. Cleco Power also owns a 50% interest in an entity that owns lignite reserves. Cleco Power owns all of the outstanding membership interests in Cleco Katrina/Rita, a special purpose entity that is consolidated with Cleco Power in its financial statements. |
• | Cleco Cajun, an unregulated electric utility subsidiary, which owns eight generating assets with a rated capacity of 3,555 MW and supplies wholesale power and capacity in Arkansas, Louisiana, and Texas. Cleco Cajun owns all of the outstanding membership interest in Cottonwood Energy. Upon the closing of the Cleco Cajun Transaction, Cottonwood Energy entered into the Cottonwood Sale Leaseback. For more information on the Cleco Cajun Transaction, see Note 3 — “Business Combinations.” |
• | Cleco’s other operations consist of the following: |
◦ | Cleco Holdings, a holding company, |
◦ | Support Group, a shared services subsidiary, |
◦ | Diversified Lands, an investment subsidiary, and |
◦ | Attala and Perryville, two subsidiaries that owned and operated transmission interconnection facilities prior to the assets being sold by Cleco on December 29, 2017. |
Note 2 — Summary of Significant Accounting Policies |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
Cleco | |||||||||||
FOR THE YEAR ENDED DEC. 31, | |||||||||||
(THOUSANDS) | 2019 | 2018 | 2017 | ||||||||
Amortization | $ | 4,917 | $ | 2,154 | $ | 2,367 |
Cleco Power | |||||||||||
FOR THE YEAR ENDED DEC. 31, | |||||||||||
(THOUSANDS) | 2019 | 2018 | 2017 | ||||||||
Amortization | $ | 4,321 | $ | 1,607 | $ | 1,887 |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
CATEGORY (YEARS) | CLECO | CLECO POWER | |||||
Utility Plants | |||||||
Generation | 6 | – | 95 | 10 | – | 95 | |
Distribution | 15 | – | 50 | 15 | – | 50 | |
Transmission | 5 | – | 55 | 5 | – | 55 | |
Other utility plant | 2 | – | 45 | 5 | – | 45 | |
Other property, plant, and equipment | 5 | – | 45 | 5 | – | 45 |
Cleco | |||||||
AT DEC. 31, | |||||||
(THOUSANDS) | 2019 | 2018 | |||||
Utility plants | |||||||
Generation | $ | 2,812,843 | $ | 1,949,042 | |||
Distribution | 1,153,086 | 1,081,650 | |||||
Transmission | 660,279 | 519,269 | |||||
Other utility plant | 350,683 | 174,010 | |||||
Other property, plant, and equipment | 5,364 | 4,506 | |||||
Total property, plant, and equipment | 4,982,255 | 3,728,477 | |||||
Accumulated depreciation | (454,874 | ) | (303,727 | ) | |||
Net property, plant, and equipment | $ | 4,527,381 | $ | 3,424,750 |
Cleco Power | |||||||
AT DEC. 31, | |||||||
(THOUSANDS) | 2019 | 2018 | |||||
Regulated utility plants | |||||||
Generation | $ | 2,633,590 | $ | 2,476,733 | |||
Distribution | 1,593,104 | 1,523,885 | |||||
Transmission | 805,701 | 731,432 | |||||
Other utility plant | 457,062 | 282,954 | |||||
Total property, plant, and equipment | 5,489,457 | 5,015,004 | |||||
Accumulated depreciation | (1,905,031 | ) | (1,804,563 | ) | |||
Net property, plant, and equipment | $ | 3,584,426 | $ | 3,210,441 |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
Cleco | |||||||
AT DEC. 31, | |||||||
(THOUSANDS) | 2019 | 2018 | |||||
Current | |||||||
Cleco Katrina/Rita’s storm recovery bonds | $ | 9,632 | $ | 9,505 | |||
Cleco Power’s charitable contributions | 1,200 | 1,200 | |||||
Cleco Power’s rate credit escrow | 268 | 536 | |||||
Total current | 11,100 | 11,241 | |||||
Non-current | |||||||
Diversified Lands’ mitigation escrow | 21 | 21 | |||||
Cleco Cajun’s defense fund | 719 | — | |||||
Cleco Cajun’s margin deposits | 100 | — | |||||
Cleco Power’s future storm restoration costs | 12,269 | 15,391 | |||||
Cleco Power’s charitable contributions | 2,094 | 2,753 | |||||
Cleco Power’s rate credit escrow | — | 505 | |||||
Total non-current | 15,203 | 18,670 | |||||
Total restricted cash and cash equivalents | $ | 26,303 | $ | 29,911 |
Cleco Power | |||||||
AT DEC. 31, | |||||||
(THOUSANDS) | 2019 | 2018 | |||||
Current | |||||||
Cleco Katrina/Rita’s storm recovery bonds | $ | 9,632 | $ | 9,505 | |||
Charitable contributions | 1,200 | 1,200 | |||||
Rate credit escrow | 268 | 536 | |||||
Total current | 11,100 | 11,241 | |||||
Non-current | |||||||
Future storm restoration costs | 12,269 | 15,391 | |||||
Charitable contributions | 2,094 | 2,753 | |||||
Rate credit escrow | — | 505 | |||||
Total non-current | 14,363 | 18,649 | |||||
Total restricted cash and cash equivalents | $ | 25,463 | $ | 29,890 |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
Note 3 — Business Combinations |
• | a 176-MW natural-gas-fired generating station located in Sterlington, Louisiana, |
• | a 220-MW natural-gas-fired facility and a 210-MW natural-gas-fired peaking facility, both located in Jarreau, Louisiana, |
• | a 580-MW coal-fired generating facility, a 540-MW natural-gas-fired generating station, and 58% of a 588-MW coal-fired generating station all located in New Roads, Louisiana, |
• | 225 MW of a 300-MW natural-gas-fired peaking facility located in Jennings, Louisiana, |
• | a 1,263-MW natural-gas-fired generating station located in Deweyville, Texas (the Cottonwood Plant), |
• | wholesale contracts to provide electricity and capacity to nine Louisiana cooperatives, three municipalities across Arkansas, Louisiana, and Texas, and one investor-owned utility, |
• | transmission assets, which consist of equipment and land required to connect the generation stations and the wholesale customers to the transmission grid, and |
• | current assets consisting of cash, inventory, receivables and other miscellaneous assets. |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
Purchase Price Allocation | |||
(THOUSANDS) | AT FEB. 4, 2019 | ||
Current assets | |||
Cash and cash equivalents | $ | 146,494 | |
Customer and other accounts receivable | 49,809 | ||
Fuel inventory | 22,060 | ||
Materials and supplies | 25,659 | ||
Energy risk management assets | 4,193 | ||
Other current assets | 10,056 | ||
Non-current assets | |||
Property, plant, and equipment, net | 741,203 | ||
Prepayments | 36,166 | ||
Restricted cash and cash equivalents | 707 | ||
Intangible assets | 98,900 | ||
Other deferred charges | 133 | ||
Total assets acquired | 1,135,380 | ||
Current liabilities | |||
Accounts payable | 38,478 | ||
Taxes payable | 723 | ||
Energy risk management liabilities | 241 | ||
Other current liabilities | 14,570 | ||
Non-current liabilities | |||
Accumulated deferred federal and state income taxes, net | 7,165 | ||
Deferred lease revenue | 58,300 | ||
Intangible liabilities | 38,300 | ||
Asset retirement obligations | 15,323 | ||
Operating lease liabilities | 110 | ||
Total liabilities assumed | 173,210 | ||
Total purchase price consideration | $ | 962,170 |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
Measurement Period Adjustments | |||
(THOUSANDS) | AT JUNE 30, 2019 | ||
Current assets | |||
Customer and other accounts receivable | $ | 1,408 | |
Other current assets | $ | 56 | |
Non-current assets | |||
Property, plant, and equipment, net | $ | 13,297 | |
Prepayments | $ | (56 | ) |
Intangible assets | $ | (3,600 | ) |
Other deferred charges | $ | 1 | |
Current liabilities | |||
Accounts payable | $ | 3,022 | |
Energy risk management liabilities | $ | (1 | ) |
Other current liabilities | $ | 327 | |
Non-current liabilities | |||
Accumulated deferred federal and state income taxes, net | $ | 421 | |
Deferred lease revenue | $ | (3,600 | ) |
Intangible liabilities | $ | 6,400 | |
Asset retirement obligations | $ | 4,534 | |
Operating lease liabilities | $ | 3 |
Unaudited Pro Forma Financial Information | |||||||
FOR THE YEAR ENDED DEC. 31, | |||||||
(THOUSANDS) | 2019 | 2018 | |||||
Operating revenue, net | $ | 1,660,362 | $ | 1,668,022 | |||
Net income | $ | 154,898 | $ | 170,224 |
Note 4 — Leases |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
(THOUSANDS) | CLECO POWER | CLECO | |||||
Years ending Dec. 31, | |||||||
2020 | $ | 3,960 | $ | 3,994 | |||
2021 | 3,409 | 3,443 | |||||
2022 | 3,256 | 3,287 | |||||
2023 | 3,220 | 3,249 | |||||
2024 | 3,216 | 3,235 | |||||
Thereafter | 18,618 | 18,618 | |||||
Total minimum lease payments | 35,679 | 35,826 | |||||
Less: amount representing interest | 7,086 | 7,069 | |||||
Present value of net minimum operating lease payments | $ | 28,593 | $ | 28,757 | |||
Current liabilities | $ | 2,935 | $ | 2,978 | |||
Non-current liabilities | $ | 25,658 | $ | 25,779 |
(THOUSANDS) | CLECO POWER | CLECO HOLDINGS | TOTAL | ||||||||
Years ending Dec. 31, | |||||||||||
2019 | $ | 4,030 | $ | 120 | $ | 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 | $ | 20,397 | $ | 120 | $ | 20,517 |
(THOUSANDS) | AT DEC. 31, 2019 | AT DEC. 31, 2018 | |||||
Barges | $ | 16,800 | $ | 16,800 | |||
Accumulated amortization | (1,960 | ) | (840 | ) | |||
Net finance lease | $ | 14,840 | $ | 15,960 |
(THOUSANDS) | |||
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 | 28,690 | ||
Less: amount representing interest | 12,829 | ||
Present value of net minimum finance lease payments | $ | 15,861 | |
Current liabilities | $ | 617 | |
Non-current liabilities | $ | 15,244 |
(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 |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
Cleco Power | |||
(THOUSANDS) | FOR THE YEAR ENDED DEC. 31, 2019 | ||
Finance lease cost | |||
Amortization of ROU assets | $ | 1,120 | |
Interest on lease liabilities | 1,646 | ||
Operating lease cost | 4,303 | ||
Variable lease cost | 515 | ||
Total lease cost | $ | 7,584 |
Cleco | |||
(THOUSANDS) | FOR THE YEAR ENDED DEC. 31, 2019 | ||
Finance lease cost | |||
Amortization of ROU assets | $ | 1,120 | |
Interest on lease liabilities | 1,646 | ||
Operating lease cost | 4,528 | ||
Variable lease cost | 515 | ||
Total lease cost | $ | 7,809 |
AT DEC. 31, 2019 | ||||||||
(THOUSANDS) | BALANCE SHEET LINE ITEM | CLECO POWER | CLECO | |||||
Supplemental balance sheet information | ||||||||
ROU assets | ||||||||
Operating | Operating lease right of use assets | $ | 28,633 | $ | 28,791 | |||
Finance | Property, plant, and equipment | 14,840 | 14,840 | |||||
Total ROU assets | $ | 43,473 | $ | 43,631 | ||||
Current lease liabilities | ||||||||
Operating | Other current liabilities | $ | 2,935 | $ | 2,978 | |||
Finance | Long-term debt and finance leases due within one year | 617 | 617 | |||||
Non-current lease liabilities | ||||||||
Operating | Operating lease liabilities | 25,658 | 25,779 | |||||
Finance | Long-term debt and finance leases, net | 15,244 | 15,244 | |||||
Total lease liabilities | $ | 44,454 | $ | 44,618 |
Cleco Power | ||||
(THOUSANDS) | FOR THE YEAR ENDED DEC. 31, 2019 | |||
Supplemental cash flow information | ||||
Cash paid for amounts included in the measurement of lease liabilities | ||||
Operating cash flows from operating leases | $ | 4,203 | ||
Operating cash flows from finance leases | $ | 1,646 | ||
Financing cash flows from finance leases | $ | 557 | ||
ROU assets obtained in exchange for new lease liabilities | $ | 15,749 |
Cleco | ||||
(THOUSANDS) | FOR THE YEAR ENDED DEC. 31, 2019 | |||
Supplemental cash flow information | ||||
Cash paid for amounts included in the measurement of lease liabilities | ||||
Operating cash flows from operating leases | $ | 4,452 | ||
Operating cash flows from finance leases | $ | 1,646 | ||
Financing cash flows from finance leases | $ | 557 | ||
ROU assets obtained in exchange for new lease liabilities | $ | 15,881 |
AT DEC. 31, 2019 | ||||||
(THOUSANDS) | CLECO POWER | CLECO | ||||
Other supplemental information | ||||||
Operating leases | ||||||
Weighted-average remaining lease term | 10.8 years | 10.8 years | ||||
Weighted-average discount rate | 4.31 | % | 4.31 | % | ||
Finance leases | ||||||
Weighted-average remaining lease term | 13.3 years | 13.3 years | ||||
Weighted-average discount rate | 10.18 | % | 10.18 | % |
(THOUSANDS) | FOR THE YEAR ENDED DEC. 31, 2019 | ||
Fixed payments | $ | 36,667 | |
Variable payments | 20,415 | ||
Amortization of deferred lease liability(1) | 8,438 | ||
Total lease income | $ | 65,520 |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
(THOUSANDS) | |||
Years ending Dec. 31, | |||
2020 | $ | 40,000 | |
2021 | 40,000 | ||
2022 | 40,000 | ||
2023 | 40,000 | ||
2024 | 40,000 | ||
Thereafter | 16,667 | ||
Total payments | $ | 216,667 |
(THOUSANDS) | AT DEC. 31, 2019 | ||
Property, plant, and equipment | $ | 540,409 | |
Accumulated depreciation | (22,741 | ) | |
Net property, plant, and equipment | $ | 517,668 |
Note 5 — Revenue Recognition |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
FOR THE YEAR ENDED DEC. 31, 2019 | |||||||||||||||||||
(THOUSANDS) | CLECO POWER | CLECO CAJUN | OTHER | ELIMINATIONS | TOTAL | ||||||||||||||
Revenue from contracts with customers | |||||||||||||||||||
Retail revenue | |||||||||||||||||||
Residential (1) | $ | 415,242 | $ | — | $ | — | $ | — | $ | 415,242 | |||||||||
Commercial (1) | 289,197 | — | — | — | 289,197 | ||||||||||||||
Industrial (1) | 149,711 | — | — | — | 149,711 | ||||||||||||||
Other retail (1) | 15,046 | — | — | — | 15,046 | ||||||||||||||
Surcharge | 22,132 | — | — | — | 22,132 | ||||||||||||||
Electric customer credits | (35,880 | ) | — | — | — | (35,880 | ) | ||||||||||||
Total retail revenue | 855,448 | — | — | — | 855,448 | ||||||||||||||
Wholesale, net | 226,978 | (1) | 374,635 | (2) | (9,680 | ) | (3) | (1 | ) | 591,932 | |||||||||
Transmission, net | 50,874 | (4) | 51,315 | (5) | — | (7,471 | ) | 94,718 | |||||||||||
Other | 19,324 | (6) | — | 2 | — | 19,326 | |||||||||||||
Affiliate (7) | 3,125 | 108 | 109,067 | (112,300 | ) | — | |||||||||||||
Total revenue from contracts with customers | 1,155,749 | 426,058 | 99,389 | (119,772 | ) | 1,561,424 | |||||||||||||
Revenue unrelated to contracts with customers | |||||||||||||||||||
Other | 12,621 | (8) | 65,560 | (9) | — | — | 78,181 | ||||||||||||
Total revenue unrelated to contracts with customers | 12,621 | 65,560 | — | — | 78,181 | ||||||||||||||
Operating revenue, net | $ | 1,168,370 | $ | 491,618 | $ | 99,389 | $ | (119,772 | ) | $ | 1,639,605 |
FOR THE YEAR ENDED DEC. 31, 2018 | |||||||||||||||
(THOUSANDS) | CLECO POWER | OTHER | ELIMINATIONS | TOTAL | |||||||||||
Revenue from contracts with customers | |||||||||||||||
Retail revenue | |||||||||||||||
Residential (1) | $ | 435,610 | $ | — | $ | — | $ | 435,610 | |||||||
Commercial (1) | 288,791 | — | — | 288,791 | |||||||||||
Industrial (1) | 167,001 | — | — | 167,001 | |||||||||||
Other retail (1) | 15,582 | — | — | 15,582 | |||||||||||
Surcharge | 23,138 | — | — | 23,138 | |||||||||||
Electric customer credits | (33,195 | ) | — | — | (33,195 | ) | |||||||||
Total retail revenue | 896,927 | — | — | 896,927 | |||||||||||
Wholesale, net (1) | 219,598 | (9,680 | ) | (2) | — | 209,918 | |||||||||
Transmission | 54,531 | — | — | 54,531 | |||||||||||
Other (3) | 27,800 | 2 | — | 27,802 | |||||||||||
Affiliate (4) | 874 | 74,591 | (75,465 | ) | — | ||||||||||
Total revenue from contracts with customers | 1,199,730 | 64,913 | (75,465 | ) | 1,189,178 | ||||||||||
Revenue unrelated to contracts with customers | |||||||||||||||
Other (5) | 41,866 | — | — | 41,866 | |||||||||||
Total revenue unrelated to contracts with customers | 41,866 | — | — | 41,866 | |||||||||||
Operating revenue, net | $ | 1,241,596 | $ | 64,913 | $ | (75,465 | ) | $ | 1,231,044 |
Note 6 — Regulatory Assets and Liabilities |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
Cleco Power | ||||||||||
AT DEC. 31, | REMAINING RECOVERY PERIOD (YRS.) | |||||||||
(THOUSANDS) | 2019 | 2018 | ||||||||
Regulatory assets (liabilities) | ||||||||||
Deferred taxes, net | (146,948 | ) | (155,537 | ) | * | |||||
Mining costs | — | 1,274 | — | |||||||
Interest costs | 3,958 | 4,208 | * | |||||||
AROs | 3,668 | 3,099 | * | |||||||
Postretirement costs | 151,543 | 140,245 | * | |||||||
Tree trimming costs | 11,341 | 9,069 | * | |||||||
Training costs | 6,241 | 6,396 | 40 | |||||||
Surcredits, net (1) | 145 | 289 | * | |||||||
AMI deferred revenue requirement | 3,136 | 3,681 | 6 | |||||||
Emergency declarations | 1,349 | 2,980 | * | |||||||
Production operations and maintenance expenses | 7,985 | 12,245 | * | |||||||
AFUDC equity gross-up (1) | 72,766 | 71,952 | * | |||||||
Acadia Unit 1 acquisition costs | 2,124 | 2,230 | 20 | |||||||
Financing costs | 7,554 | 7,923 | * | |||||||
Coughlin transaction costs | 906 | 938 | 29.5 | |||||||
Corporate franchise tax, net | (1,145 | ) | 1,416 | * | ||||||
Non-service cost of postretirement benefits | 6,739 | 4,629 | * | |||||||
Energy efficiency | 2,820 | 2,585 | * | |||||||
Accumulated deferred fuel | 22,910 | 20,112 | * | |||||||
Other, net | (4,543 | ) | (4,979 | ) | * | |||||
Total regulatory assets, net | $ | 152,549 | $ | 134,755 | ||||||
(1)Represents regulatory assets for past expenditures that were not earning a return on investment at December 31, 2019, and 2018, respectively. All other assets are earning a return on investment. * For information related to the remaining recovery periods, refer to the following disclosures for each specific regulatory asset. |
Cleco | |||||||
AT DEC. 31, | |||||||
(THOUSANDS) | 2019 | 2018 | |||||
Total Cleco Power regulatory assets, net | $ | 152,549 | $ | 134,755 | |||
2016 Merger adjustments (1) | |||||||
Fair value of long-term debt | 127,977 | 138,701 | |||||
Postretirement costs | 17,399 | 19,387 | |||||
Financing costs | 7,935 | 8,279 | |||||
Debt issuance costs | 5,665 | 6,252 | |||||
Total Cleco regulatory assets, net | $ | 311,525 | $ | 307,374 |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
Note 7 — Jointly Owned Generation Units |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
Cleco | |||||||||||||||||||
AT DEC. 31, 2019 | |||||||||||||||||||
(THOUSANDS, EXCEPT PERCENTAGES AND MW) | RODEMACHER UNIT 2 | DOLET HILLS | BAYOU COVE | BIG CAJUN II - UNIT 3 | TOTAL | ||||||||||||||
Utility plant in service | $ | 72,840 | $ | 179,909 | $ | 42,438 | $ | 33,291 | $ | 328,478 | |||||||||
Accumulated depreciation | $ | 7,690 | $ | 22,159 | $ | 2,090 | $ | 2,163 | $ | 34,102 | |||||||||
Construction work in progress | $ | 539 | $ | 5,435 | $ | — | $ | 329 | $ | 6,303 | |||||||||
Ownership interest percentage | 30 | % | 50 | % | 75 | % | 58 | % | |||||||||||
Capacity (MW) | 523 | (1) | 650 | (1) | 300 | (2) | 588 | (2) | |||||||||||
Ownership interest (MW) | 157 | 325 | 225 | 341 | |||||||||||||||
(1) Nameplate capacity (MW) (2) Rated capacity (MW) |
Cleco Power | |||||||||||
AT DEC. 31, 2019 | |||||||||||
(THOUSANDS, EXCEPT PERCENTAGES AND MW) | RODEMACHER UNIT 2 | DOLET HILLS | TOTAL | ||||||||
Utility plant in service | $ | 147,020 | $ | 397,406 | $ | 544,426 | |||||
Accumulated depreciation | $ | 81,870 | $ | 239,655 | $ | 321,525 | |||||
Construction work in progress | $ | 539 | $ | 5,435 | $ | 5,974 | |||||
Ownership interest percentage | 30 | % | 50 | % | |||||||
Nameplate capacity (MW) | 523 | 650 | |||||||||
Ownership interest (MW) | 157 | 325 |
Note 8 — Fair Value Accounting |
Cleco | |||||||||||||||
AT DEC. 31, | |||||||||||||||
2019 | 2018 | ||||||||||||||
(THOUSANDS) | CARRYING VALUE* | FAIR VALUE | CARRYING VALUE* | FAIR VALUE | |||||||||||
Long-term debt | $ | 3,188,664 | $ | 3,371,915 | $ | 2,889,631 | $ | 2,859,924 |
Cleco Power | |||||||||||||||
AT DEC. 31, | |||||||||||||||
2019 | 2018 | ||||||||||||||
(THOUSANDS) | CARRYING VALUE* | FAIR VALUE | CARRYING VALUE* | FAIR VALUE | |||||||||||
Long-term debt | $ | 1,380,688 | $ | 1,601,865 | $ | 1,400,930 | $ | 1,517,152 |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
Cleco | |||||||||||||||||||||||||||||||
FAIR VALUE MEASUREMENTS AT REPORTING DATE | |||||||||||||||||||||||||||||||
(THOUSANDS) | AT DEC. 31, 2019 | QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) | SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) | SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | AT DEC. 31, 2018 | 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 | $ | 129,643 | $ | — | $ | 129,643 | $ | — | $ | 133,722 | $ | — | $ | 133,722 | $ | — | |||||||||||||||
FTRs | 6,822 | — | — | 6,822 | 23,355 | — | — | 23,355 | |||||||||||||||||||||||
Other commodity derivatives | 201 | — | 201 | — | — | — | — | — | |||||||||||||||||||||||
Total assets | $ | 136,666 | $ | — | $ | 129,844 | $ | 6,822 | $ | 157,077 | $ | — | $ | 133,722 | $ | 23,355 | |||||||||||||||
Liability Description | |||||||||||||||||||||||||||||||
FTRs | $ | 1,044 | $ | — | $ | — | $ | 1,044 | $ | 468 | $ | — | $ | — | $ | 468 | |||||||||||||||
Other commodity derivatives | 5,373 | — | 5,373 | — | — | $ | — | $ | — | $ | — | ||||||||||||||||||||
Total liabilities | $ | 6,417 | $ | — | $ | 5,373 | $ | 1,044 | $ | 468 | $ | — | $ | — | $ | 468 |
Cleco Power | |||||||||||||||||||||||||||||||
FAIR VALUE MEASUREMENTS AT REPORTING DATE: | |||||||||||||||||||||||||||||||
(THOUSANDS) | AT DEC. 31, 2019 | QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) | SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) | SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | AT DEC. 31, 2018 | 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 | $ | 74,903 | $ | — | $ | 74,903 | $ | — | $ | 55,900 | $ | — | $ | 55,900 | $ | — | |||||||||||||||
FTRs | 6,311 | — | — | 6,311 | 23,355 | — | — | 23,355 | |||||||||||||||||||||||
Total assets | $ | 81,214 | $ | — | $ | 74,903 | $ | 6,311 | $ | 79,255 | $ | — | $ | 55,900 | $ | 23,355 | |||||||||||||||
Liability Description | |||||||||||||||||||||||||||||||
FTRs | $ | 586 | $ | — | $ | — | $ | 586 | $ | 468 | $ | — | $ | — | $ | 468 | |||||||||||||||
Total liabilities | $ | 586 | $ | — | $ | — | $ | 586 | $ | 468 | $ | — | $ | — | $ | 468 |
Cleco | |||||||
FOR THE YEAR ENDED DEC. 31, | |||||||
(THOUSANDS) | 2019 | 2018 | |||||
Beginning balance | $ | 22,887 | $ | 7,044 | |||
Unrealized (losses) gains * | (1,659 | ) | 11,865 | ||||
Purchases | 27,881 | 28,185 | |||||
Settlements | (43,331 | ) | (24,207 | ) | |||
Ending balance | $ | 5,778 | $ | 22,887 | |||
* Cleco Power’s unrealized (losses) gains are reported through Accumulated deferred fuel on Cleco’s Consolidated Balance Sheet. Cleco Cajun’s unrealized (losses) gains are reported through Purchased power on Cleco’s Consolidated Income Statement. |
Cleco Power | |||||||
FOR THE YEAR ENDED DEC. 31, | |||||||
(THOUSANDS) | 2019 | 2018 | |||||
Beginning balance | $ | 22,887 | $ | 7,044 | |||
Unrealized (losses) gains * | (945 | ) | 11,865 | ||||
Purchases | 21,609 | 28,185 | |||||
Settlements | (37,826 | ) | (24,207 | ) | |||
Ending balance | $ | 5,725 | $ | 22,887 | |||
* Unrealized gains (losses) are reported through Accumulated deferred fuel on Cleco Power's Consolidated Balance Sheets. |
Cleco | |||||||||||||||||||
FAIR VALUE | VALUATION TECHNIQUE | SIGNIFICANT UNOBSERVABLE INPUTS | FORWARD PRICE RANGE | ||||||||||||||||
(THOUSANDS, EXCEPT DOLLAR PER MWh) | Assets | Liabilities | Low | High | |||||||||||||||
FTRs at December 31, 2019 | $ | 6,822 | $ | 1,044 | RTO auction pricing | FTR price - per MWh | $ | (2.57 | ) | $ | 2.86 | ||||||||
FTRs at December 31, 2018 | $ | 23,355 | $ | 468 | RTO auction pricing | FTR price - per MWh | $ | (4.40 | ) | $ | 15.10 |
Cleco Power | |||||||||||||||||||
FAIR VALUE | VALUATION TECHNIQUE | SIGNIFICANT UNOBSERVABLE INPUTS | FORWARD PRICE RANGE | ||||||||||||||||
(THOUSANDS, EXCEPT DOLLAR PER MWh) | Assets | Liabilities | Low | High | |||||||||||||||
FTRs at December 31, 2019 | $ | 6,311 | $ | 586 | RTO auction pricing | FTR price - per MWh | $ | (2.04 | ) | $ | 2.86 | ||||||||
FTRs at December 31, 2018 | $ | 23,355 | $ | 468 | RTO auction pricing | FTR price - per MWh | $ | (4.40 | ) | $ | 15.10 |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
Cleco | |||||||||
DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS | |||||||||
(THOUSANDS) | BALANCE SHEET LINE ITEM | AT DEC. 31, 2019 | AT DEC. 31, 2018 | ||||||
Commodity-related contracts | |||||||||
FTRs | |||||||||
Current | Energy risk management assets | $ | 6,822 | $ | 23,355 | ||||
Current | Energy risk management liabilities | 1,044 | 468 | ||||||
Other commodity derivatives | |||||||||
Current | Energy risk management assets | 201 | — | ||||||
Current | Energy risk management liabilities | 3,069 | — | ||||||
Non-current | Other deferred credits | 2,304 | — | ||||||
Commodity-related contracts, net | $ | 606 | $ | 22,887 |
Cleco Power | |||||||||
DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS | |||||||||
(THOUSANDS) | BALANCE SHEET LINE ITEM | AT DEC. 31, 2019 | AT DEC. 31, 2018 | ||||||
Commodity-related contracts | |||||||||
FTRs: | |||||||||
Current | Energy risk management assets | $ | 6,311 | $ | 23,355 | ||||
Current | Energy risk management liabilities | 586 | 468 | ||||||
Commodity-related contracts, net | $ | 5,725 | $ | 22,887 |
Cleco | ||||||||||||
AMOUNT OF GAIN/(LOSS) RECOGNIZED IN INCOME ON DERIVATIVES | ||||||||||||
FOR THE YEAR ENDED DEC. 31, | ||||||||||||
(THOUSANDS) | DERIVATIVES LINE ITEM | 2019 | 2018 | 2017 | ||||||||
Commodity contracts | ||||||||||||
FTRs(1) | Electric operations | $ | 13,043 | $ | 39,659 | $ | 23,826 | |||||
FTRs(1) | Purchased power | (15,685 | ) | (4,566 | ) | (5,509 | ) | |||||
Other commodity derivatives | Fuel used for electric generation | (5,172 | ) | — | — | |||||||
Total | $ | (7,814 | ) | $ | 35,093 | $ | 18,317 |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
Cleco Power | ||||||||||||
AMOUNT OF GAIN/(LOSS) RECOGNIZED IN INCOME ON DERIVATIVES | ||||||||||||
FOR THE YEAR ENDED DEC. 31, | ||||||||||||
(THOUSANDS) | DERIVATIVES LINE ITEM | 2019 | 2018 | 2017 | ||||||||
Commodity contracts | ||||||||||||
FTRs(1) | Electric operations | $ | 13,047 | $ | 39,659 | $ | 23,826 | |||||
FTRs(1) | Purchased power | (6,066 | ) | (4,566 | ) | (5,509 | ) | |||||
Total | $ | 6,981 | $ | 35,093 | $ | 18,317 |
Note 9 — Debt |
Cleco Power | |||||||
AT DEC. 31, | |||||||
(THOUSANDS) | 2019 | 2018 | |||||
Bonds | |||||||
Senior notes, 2.94%, due 2022 | $ | 25,000 | $ | 25,000 | |||
Senior notes, 3.08%, due 2023 | 100,000 | 100,000 | |||||
Senior notes, 3.17%, due 2024 | 50,000 | 50,000 | |||||
Senior notes, 3.68%, due 2025 | 75,000 | 75,000 | |||||
Senior notes, 3.47%, due 2026 | 130,000 | 130,000 | |||||
Senior notes, 4.33%, due 2027 | 50,000 | 50,000 | |||||
Senior notes, 3.57%, due 2028 | 200,000 | 200,000 | |||||
Senior notes, 6.50%, due 2035 | 295,000 | 295,000 | |||||
Senior notes, 6.00%, due 2040 | 250,000 | 250,000 | |||||
Senior notes, 5.12%, due 2041 | 100,000 | 100,000 | |||||
Series A GO Zone bonds, 2.00%, due 2038, mandatory tender in 2020 | 50,000 | 50,000 | |||||
Series B GO Zone bonds, 4.25%, due 2038 | 50,000 | 50,000 | |||||
Cleco Katrina/Rita’s storm recovery bonds, 5.61%, due 2023 | 11,055 | 31,625 | |||||
Total bonds | 1,386,055 | 1,406,625 | |||||
Finance leases | |||||||
Barge lease obligations | 15,861 | 16,418 | |||||
Gross amount of long-term debt and finance leases | 1,401,916 | 1,423,043 | |||||
Less: long-term debt due within one year | 60,970 | 20,571 | |||||
Less: finance leases classified as long-term debt due within one year | 617 | 557 | |||||
Unamortized debt discount | (5,368 | ) | (5,695 | ) | |||
Unamortized debt issuance costs | (7,589 | ) | (8,446 | ) | |||
Total long-term debt and finance leases, net | $ | 1,327,372 | $ | 1,387,774 |
Cleco | |||||||
AT DEC. 31, | |||||||
(THOUSANDS) | 2019 | 2018 | |||||
Total Cleco Power long-term debt and finance leases, net | $ | 1,327,372 | $ | 1,387,774 | |||
Cleco Holdings’ long-term debt, net | |||||||
Senior notes, 3.250%, due 2023 | 165,000 | 165,000 | |||||
Senior notes, 3.743%, due 2026 | 535,000 | 535,000 | |||||
Senior notes, 3.375%, due 2029 | 300,000 | — | |||||
Senior notes, 4.973%, due 2046 | 350,000 | 350,000 | |||||
Bank term loan, variable rate, due 2021 | 300,000 | 300,000 | |||||
Bank term loan, variable rate, due 2021 | 30,000 | — | |||||
Long-term debt due within one year | (64,398 | ) | — | ||||
Unamortized debt issuance costs(1) | (6,271 | ) | (1,989 | ) | |||
Fair value adjustment | 127,976 | 138,700 | |||||
Total Cleco long-term debt and finance leases, net | $ | 3,064,679 | $ | 2,874,485 |
(THOUSANDS) | CLECO | CLECO POWER | ||||
For the year ending Dec. 31, | ||||||
2020(1) | $ | 11,055 | $ | 11,055 | ||
2021 | $ | 330,000 | $ | — | ||
2022 | $ | 25,000 | $ | 25,000 | ||
2023 | $ | 265,000 | $ | 100,000 | ||
2024 | $ | 50,000 | $ | 50,000 | ||
Thereafter | $ | 2,385,000 | $ | 1,200,000 |
(THOUSANDS) | CLECO | CLECO POWER | ||||
For the year ending Dec. 31, | ||||||
2020 | $ | 617 | $ | 617 | ||
2021 | $ | 682 | $ | 682 | ||
2022 | $ | 755 | $ | 755 | ||
2023 | $ | 836 | $ | 836 | ||
2024 | $ | 925 | $ | 925 | ||
Thereafter | $ | 12,046 | $ | 12,046 |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
(THOUSANDS) | ||||
For the year ending Dec. 31, | ||||
2019 | $ | 66,700 | ||
2020 | $ | 133,300 | ||
2021 | $ | 200,000 | ||
2022 | $ | 267,700 | ||
2023 | $ | 333,300 | ||
2024 | $ | 400,000 |
Note 10 — Pension Plan and Employee Benefits |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
PENSION BENEFITS | OTHER BENEFITS | ||||||||||||||
FOR THE YEAR ENDED DEC. 31, | FOR THE YEAR ENDED DEC. 31, | ||||||||||||||
(THOUSANDS) | 2019 | 2018 | 2019 | 2018 | |||||||||||
Change in benefit obligation | |||||||||||||||
Benefit obligation at beginning of period | $ | 530,936 | $ | 567,215 | $ | 40,455 | $ | 43,203 | |||||||
Service cost | 8,414 | 9,507 | 1,191 | 1,320 | |||||||||||
Interest cost | 22,485 | 20,860 | 1,646 | 1,465 | |||||||||||
Plan participants’ contributions | — | — | 1,229 | 1,224 | |||||||||||
Actuarial loss (gain) | 73,655 | (42,935 | ) | 13,897 | (1,106 | ) | |||||||||
Expenses paid | (2,933 | ) | (2,786 | ) | — | — | |||||||||
Benefits paid | (22,234 | ) | (20,925 | ) | (5,696 | ) | (5,651 | ) | |||||||
Benefit obligation at end of period | 610,323 | 530,936 | 52,722 | 40,455 | |||||||||||
Change in plan assets | |||||||||||||||
Fair value of plan assets at beginning of period | 391,933 | 444,089 | — | — | |||||||||||
Actual return on plan assets | 81,081 | (28,884 | ) | — | — | ||||||||||
Employer contributions | 12,250 | — | — | — | |||||||||||
Expenses paid | (2,933 | ) | (2,786 | ) | — | — | |||||||||
Adjustment | — | 439 | — | — | |||||||||||
Benefits paid | (22,234 | ) | (20,925 | ) | — | — | |||||||||
Fair value of plan assets at end of period | 460,097 | 391,933 | — | — | |||||||||||
Unfunded status | $ | (150,226 | ) | $ | (139,003 | ) | $ | (52,722 | ) | $ | (40,455 | ) |
PENSION BENEFITS | |||||||
AT DEC. 31, | |||||||
(THOUSANDS) | 2019 | 2018 | |||||
Accumulated benefit obligation | $ | 568,354 | $ | 491,522 |
PENSION BENEFITS | OTHER BENEFITS | ||||||||||||||
FOR THE YEAR ENDED DEC. 31, | FOR THE YEAR ENDED DEC. 31, | ||||||||||||||
(THOUSANDS) | 2019 | 2018 | 2019 | 2018 | |||||||||||
Net actuarial loss (gain) occurring during period | $ | 19,075 | $ | 9,722 | $ | 13,897 | $ | (1,106 | ) | ||||||
Net actuarial loss amortized during period | $ | 7,849 | $ | 12,313 | $ | 21 | $ | 135 | |||||||
Prior service credit amortized during period | $ | (71 | ) | $ | (71 | ) | $ | — | $ | — |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
PENSION BENEFITS | OTHER BENEFITS | ||||||||||||||||||||||
AT DEC. 31, | AT DEC. 31, | ||||||||||||||||||||||
(THOUSANDS) | 2020 | 2019 | 2018 | 2020 | 2019 | 2018 | |||||||||||||||||
Net actuarial loss | $ | 14,824 | $ | 151,603 | $ | 140,377 | $ | 1,355 | $ | 15,732 | $ | 1,814 | |||||||||||
Prior service credit | $ | (60 | ) | $ | (60 | ) | $ | (131 | ) | $ | — | $ | — | $ | — |
PENSION BENEFITS | OTHER BENEFITS | ||||||||||||||||||||||
FOR THE YEAR ENDED DEC. 31, | FOR THE YEAR ENDED DEC. 31, | ||||||||||||||||||||||
(THOUSANDS) | 2019 | 2018 | 2017 | 2019 | 2018 | 2017 | |||||||||||||||||
Components of periodic benefit costs | |||||||||||||||||||||||
Service cost | $ | 8,414 | $ | 9,507 | $ | 9,039 | $ | 1,191 | $ | 1,320 | $ | 1,446 | |||||||||||
Interest cost | 22,485 | 20,860 | 21,648 | 1,646 | 1,465 | 1,569 | |||||||||||||||||
Expected return on plan assets | (26,502 | ) | (23,773 | ) | (24,064 | ) | — | — | — | ||||||||||||||
Amortizations | |||||||||||||||||||||||
Prior service credit | (71 | ) | (71 | ) | (71 | ) | — | — | — | ||||||||||||||
Net loss (gain) | 7,849 | 12,312 | 10,008 | 21 | 135 | (50 | ) | ||||||||||||||||
Net periodic benefit cost | $ | 12,175 | $ | 18,835 | $ | 16,560 | $ | 2,858 | $ | 2,920 | $ | 2,965 |
Cleco | |||||||
AT DEC. 31, | |||||||
(THOUSANDS) | 2019 | 2018 | |||||
Current | $ | 4,401 | $ | 4,130 | |||
Non-current | $ | 48,321 | $ | 36,325 |
Cleco Power | |||||||
AT DEC. 31, | |||||||
(THOUSANDS) | 2019 | 2018 | |||||
Current | $ | 3,815 | $ | 3,584 | |||
Non-current | $ | 42,080 | $ | 31,694 |
PENSION BENEFITS | OTHER BENEFITS | ||||||||||
AT DEC. 31, | AT DEC. 31, | ||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||
Weighted-average assumptions used to determine the benefit obligation | |||||||||||
Discount rate | 3.43 | % | 4.35 | % | 3.25 | % | 4.16 | % | |||
Rate of compensation increase | 2.81 | % | 2.93 | % | N/A | N/A |
PENSION BENEFITS | OTHER BENEFITS | ||||||||||||||||
FOR THE YEAR ENDED DEC. 31, | FOR THE YEAR ENDED DEC. 31, | ||||||||||||||||
2019 | 2018 | 2017 | 2019 | 2018 | 2017 | ||||||||||||
Weighted-average assumptions used to determine the net benefit cost | |||||||||||||||||
Discount rate | 4.35 | % | 3.73 | % | 4.27 | % | 4.16 | % | 3.47 | % | 3.81 | % | |||||
Expected return on plan assets | 6.55 | % | 5.86 | % | 6.08 | % | N/A | N/A | N/A | ||||||||
Rate of compensation increase | 2.81 | % | 2.93 | % | 2.98 | % | N/A | N/A | N/A |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
• | Level 1 – unadjusted quoted prices in active, liquid markets for the identical asset or liability, |
• | Level 2 – quoted prices for similar assets and liabilities in active markets or other inputs that are observable for the asset or liability, including inputs that can be corroborated by observable market data, observable interest rate yield curves and volatilities, and |
• | Level 3 – unobservable inputs based upon the entities’ own assumptions. |
(THOUSANDS) | AT DEC. 31, 2019 | QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) | SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) | SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | ||||||||||||
Asset Description | ||||||||||||||||
Cash equivalents | $ | 4,810 | $ | — | $ | 4,810 | $ | — | ||||||||
Government securities | 19,517 | — | 19,517 | — | ||||||||||||
Mutual funds | ||||||||||||||||
Domestic | 102,184 | 102,184 | — | — | ||||||||||||
International | 53,041 | 53,041 | — | — | ||||||||||||
Real estate funds | 18,017 | — | — | 18,017 | ||||||||||||
Corporate debt | 157,109 | — | 157,109 | — | ||||||||||||
Total | $ | 354,678 | $ | 155,225 | $ | 181,436 | $ | 18,017 | ||||||||
Investments measured at net asset value* | 103,326 | |||||||||||||||
Interest accrual | 2,093 | |||||||||||||||
Total net assets | $ | 460,097 | ||||||||||||||
*Investments measured at net asset value consist of Common/collective trust. |
(THOUSANDS) | AT DEC. 31, 2018 | QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) | SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) | SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | ||||||||||||
Asset Description | ||||||||||||||||
Cash equivalents | $ | 2,471 | $ | — | $ | 2,471 | $ | — | ||||||||
Common stock | 13,111 | 13,111 | — | — | ||||||||||||
Government securities | 19,831 | — | 19,831 | — | ||||||||||||
Mutual funds | ||||||||||||||||
Domestic | 79,210 | 79,210 | — | — | ||||||||||||
International | 43,418 | 43,418 | — | — | ||||||||||||
Real estate funds | 20,298 | — | — | 20,298 | ||||||||||||
Corporate debt | 138,391 | — | 138,391 | — | ||||||||||||
Total | $ | 316,730 | $ | 135,739 | $ | 160,693 | $ | 20,298 | ||||||||
Investments measured at net asset value* | 73,100 | |||||||||||||||
Interest accrual | 2,103 | |||||||||||||||
Total net assets | $ | 391,933 | ||||||||||||||
*Investments measured at net asset value consist of Common/collective trust. |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
(THOUSANDS) | |||
Balance, Dec. 31, 2017 | $ | 19,195 | |
Realized losses | 29 | ||
Unrealized gains | 391 | ||
Purchases | 710 | ||
Sales | (27 | ) | |
Balance, Dec. 31, 2018 | $ | 20,298 | |
Realized gains | 370 | ||
Unrealized losses | (1,727 | ) | |
Purchases | 759 | ||
Sales | (1,683 | ) | |
Balance, Dec. 31, 2019 | $ | 18,017 |
• | Exceed the (FAS) actuarial assumed rate of return on plan assets, and |
• | Exceed the annualized total return of the following customized index (based on the target allocation in the glide path) consisting of a mixture of S&P 500 Index, Russell 2500 Index, Morgan Stanley Capital International All Country World ex U.S. Index, Morgan Stanley Capital International Emerging Markets Index, Customer Index related to Multi-Asset Credit asset class, Bloomberg Barclays Capital Long Credit Index, Bloomberg Barclays 15+ Year Treasury STRIPS, and National Council of Real Estate Investment Fiduciaries Index. |
• | Equity holdings of a single company (including common stock and convertible securities) must not exceed 10% of the manager’s portfolio measured at market value. |
• | A minimum of 25 stocks should be owned in the portfolio. |
• | Equity holdings in any one economic sector should not exceed the lesser of three times the sector’s weighting in the S&P 500 Index or 35% of the portfolio. |
• | Equity holdings should represent at least 90% of the portfolio. |
• | Marketable common stocks, preferred stocks convertible into common stocks, and fixed income securities convertible into common stocks are the only permissible equity investments. |
• | Securities in foreign entities denominated in U.S. dollars are limited to 10%. Securities denominated in currencies other than U.S. dollars are not permitted. |
• | The purchase of securities on margin and short sales is prohibited. |
• | Equity holdings of a single company (including common stock and convertible securities) should not exceed 5% of the manager’s portfolio measured at market value. |
• | A minimum of 30 stocks should be owned. |
• | Equity holdings in any industry sector should not exceed 35%. |
• | A minimum of 50% of the countries within the Morgan Stanley Capital International All Country World ex U.S. Index should be represented within the portfolio. The allocation to an individual country should not exceed the lesser of 30% or 5 times the country’s weighting within the Morgan Stanley Capital International All Country World ex U.S. Index. |
• | Currency hedging decisions are at the discretion of the investment manager. |
• | Equity holdings in any single company should not exceed 10% of the manager’s portfolio. |
• | A minimum of 30 individual stocks should be owned. |
• | Equity holdings of a single industry should not exceed 25%. |
• | Equity investments must represent at least 75% of the manager’s portfolio. |
• | A minimum of three countries should be represented within the manager’s portfolio. |
• | Illiquid securities which are not readily marketable may represent no more than 10% of the manager’s portfolio. |
• | Currency hedging decisions are at the discretion of the investment manager. |
• | Assets can include, but would not be limited to, high yield debt, emerging market debt, global investment grade credit and bank loans, as well as fixed income strategies. |
• | Currency hedging decisions are the discretion of the investment manager. |
• | The STRIPS are synthetic zero-coupon bonds that are created by separating each coupon and principal payment of a treasury bond into a separate security. STRIPS take the form of a zero-coupon bond which is sold at a discount to face value and mature at par. They are backed by U.S. Treasury securities. |
• | Implementation of the portfolio is either through Treasury Futures or purchase of Treasury STRIPS through an investment manager. |
• | The benchmark would be Bloomberg Barclays 15+ Year Treasury STRIPS. |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
• | Permitted assets include U.S. government and agency securities, corporate securities, mortgage-backed securities, investment-grade private placements, surplus notes, trust preferred, e-caps and hybrids, money-market securities, and senior and subordinated debt. |
• | At least 90% of securities must be U.S. dollar denominated. |
• | At least 70% of the securities must be investment-grade credit. |
• | Securities must have a maximum position size of 5% for A rated securities and 3% for BBB rated securities. |
• | The duration of the portfolio must be within +/- 1 year of benchmark. |
• | Treasury STRIPS managers will have the discretion to utilize U.S. treasury futures and STRIPS as needed to adjust the portfolio duration. |
• | Real estate funds should be invested primarily in direct equity positions, with debt and other investments representing less than 25% of the fund. |
• | Leverage should be no more than 70% of the market value of the fund. |
• | Investments should be focused on existing income-producing properties, with land and development properties representing less than 40% of the fund. |
PERCENT OF TOTAL PLAN ASSETS | ||||||||
AT DEC. 31, 2019 | ||||||||
MINIMUM | TARGET | MAXIMUM | ||||||
Return-seeking | ||||||||
Domestic equity | 19 | % | ||||||
International equity | 20 | % | ||||||
Multi-asset credit | 6 | % | ||||||
Real estate | 5 | % | ||||||
Total return-seeking | 45 | % | 50 | % | 55 | % | ||
Liability hedging* | 45 | % | 50 | % | 55 | % | ||
*Liability hedging has no target subcategories. |
ONE-PERCENTAGE POINT | |||||||
(THOUSANDS) | INCREASE | DECREASE | |||||
Effect on total of service and interest cost components | $ | 14 | $ | (16 | ) | ||
Effect on postretirement benefit obligation | $ | 205 | $ | (229 | ) |
(THOUSANDS) | PENSION BENEFITS | OTHER BENEFITS, GROSS | |||||
For the year ending Dec. 31, | |||||||
2020 | $ | 24,065 | $ | 4,472 | |||
2021 | $ | 25,293 | $ | 4,498 | |||
2022 | $ | 26,541 | $ | 4,554 | |||
2023 | $ | 27,709 | $ | 4,536 | |||
2024 | $ | 28,741 | $ | 4,531 | |||
Next five years | $ | 158,810 | $ | 21,706 |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
SERP BENEFITS | |||||||
FOR THE YEAR ENDED DEC. 31, | |||||||
(THOUSANDS) | 2019 | 2018 | |||||
Change in benefit obligation | |||||||
Benefit obligation at beginning of period | $ | 78,414 | $ | 84,339 | |||
Service cost | 330 | 542 | |||||
Interest cost | 3,326 | 3,077 | |||||
Actuarial loss (gain) | 11,608 | (5,163 | ) | ||||
Benefits paid | (4,550 | ) | (4,381 | ) | |||
Benefit obligation at end of period | $ | 89,128 | $ | 78,414 |
SERP BENEFITS | |||||||
AT DEC. 31, | |||||||
(THOUSANDS) | 2019 | 2018 | |||||
Accumulated benefit obligation | $ | 89,128 | $ | 78,414 |
SERP BENEFITS | |||||||
FOR THE YEAR ENDED DEC. 31, | |||||||
(THOUSANDS) | 2019 | 2018 | |||||
Net actuarial loss (gain) occurring during year | $ | 11,608 | $ | (5,163 | ) | ||
Net actuarial loss amortized during year | $ | 1,544 | $ | 2,913 | |||
Prior service credit amortized during year | $ | (160 | ) | $ | (160 | ) |
SERP BENEFITS | |||||||||||
AT DEC. 31, | |||||||||||
(THOUSANDS) | 2020 | 2019 | 2018 | ||||||||
Net actuarial loss | $ | 3,171 | $ | 28,731 | $ | 17,261 | |||||
Prior service credit | $ | (160 | ) | $ | (1,678 | ) | $ | (1,837 | ) |
SERP BENEFITS | |||||||||||
FOR THE YEAR ENDED DEC. 31, | |||||||||||
(THOUSANDS) | 2019 | 2018 | 2017 | ||||||||
Components of periodic benefit costs | |||||||||||
Service cost | $ | 330 | $ | 542 | $ | 494 | |||||
Interest cost | 3,326 | 3,077 | 3,239 | ||||||||
Amortizations | |||||||||||
Prior service credit | (160 | ) | (160 | ) | (190 | ) | |||||
Net loss | 1,544 | 2,913 | 2,105 | ||||||||
Net periodic benefit cost | 5,040 | 6,372 | 5,648 | ||||||||
Special/contractual termination benefits | — | — | 315 | ||||||||
Total benefit cost | $ | 5,040 | $ | 6,372 | $ | 5,963 |
SERP BENEFITS | |||||
AT DEC. 31, | |||||
2019 | 2018 | ||||
Weighted-average assumptions used to determine the benefit obligation | |||||
Discount rate | 3.37 | % | 4.34 | % | |
Rate of compensation increase | 5.00 | % | 5.00 | % |
SERP BENEFITS | |||||||||||
JAN. 1, 2019 - DEC. 31, 2019 | JAN. 1, 2018 - DEC. 31, 2018 | MAR. 31, 2017 - DEC. 31, 2017 | JAN. 1, 2017 - MAR. 30, 2017 | ||||||||
Weighted-average assumptions used to determine the net benefit cost | |||||||||||
Discount rate | 4.34 | % | 3.70 | % | 4.08 | % | 4.22 | % | |||
Rate of compensation increase | 5.00 | % | 5.00 | % | 5.00 | % | 5.00 | % |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
Cleco | |||||||
AT DEC. 31, | |||||||
(THOUSANDS) | 2019 | 2018 | |||||
Current | $ | 4,599 | $ | 4,478 | |||
Non-current | $ | 84,529 | $ | 73,936 |
Cleco Power | |||||||
AT DEC. 31, | |||||||
(THOUSANDS) | 2019 | 2018 | |||||
Current | $ | 760 | $ | 930 | |||
Non-current | $ | 13,964 | $ | 12,025 |
(THOUSANDS) | 2020 | 2021 | 2022 | 2023 | 2024 | NEXT FIVE YEARS | |||||||||||||||||
SERP | $ | 4,662 | $ | 4,689 | $ | 4,698 | $ | 4,710 | $ | 4,753 | $ | 24,861 |
FOR THE YEAR ENDED DEC. 31, | |||||||||||
(THOUSANDS) | 2019 | 2018 | 2017 | ||||||||
401(k) Plan expense | $ | 7,861 | $ | 5,884 | $ | 5,386 |
FOR THE YEAR ENDED DEC. 31, | |||||||||||
(THOUSANDS) | 2019 | 2018 | 2017 | ||||||||
401(k) Plan expense | $ | 3,408 | $ | 1,066 | $ | 888 |
Note 11 — Income Taxes |
FOR THE YEAR ENDED DEC. 31, | |||||||||||
(THOUSANDS, EXCEPT PERCENTAGES) | 2019 | 2018 | 2017 | ||||||||
Income before tax | $ | 195,830 | $ | 123,819 | $ | 145,159 | |||||
Statutory rate | 21.0 | % | 21.0 | % | 35.0 | % | |||||
Tax expense at federal statutory rate | $ | 41,124 | $ | 26,002 | $ | 50,806 | |||||
Increase (decrease) | |||||||||||
Plant differences, including AFUDC flowthrough | (4,687 | ) | (401 | ) | 743 | ||||||
State income taxes, net of federal benefit | 9,565 | 6,288 | 5,047 | ||||||||
Return to accrual adjustment | (3,963 | ) | (193 | ) | (608 | ) | |||||
TCJA | — | (19 | ) | (46,291 | ) | ||||||
NMTC | — | (1,578 | ) | 313 | |||||||
Other, net | 1,126 | (717 | ) | (2,931 | ) | ||||||
Total tax expense | $ | 43,165 | $ | 29,382 | $ | 7,079 | |||||
Effective rate | 22.0 | % | 23.7 | % | 4.9 | % |
FOR THE YEAR ENDED DEC. 31, | |||||||||||
(THOUSANDS) | 2019 | 2018 | 2017 | ||||||||
Current federal income tax expense | $ | 1,600 | $ | 15,304 | $ | 46,520 | |||||
Deferred federal income tax expense (benefit) | 37,963 | 5,863 | (47,329 | ) | |||||||
Amortization of accumulated deferred investment tax credits | (191 | ) | (236 | ) | (662 | ) | |||||
Total federal income tax expense (benefit) | $ | 39,372 | $ | 20,931 | $ | (1,471 | ) | ||||
Current state income tax expense | 1,675 | 7,771 | 3,187 | ||||||||
Deferred state income tax expense | 2,118 | 680 | 5,363 | ||||||||
Total state income tax expense | $ | 3,793 | $ | 8,451 | $ | 8,550 | |||||
Total federal and state income tax expense | $ | 43,165 | $ | 29,382 | $ | 7,079 | |||||
Items charged or credited directly to member’s equity | |||||||||||
Federal deferred | (5,130 | ) | 1,408 | (2,380 | ) | ||||||
State deferred | (1,678 | ) | 460 | (384 | ) | ||||||
Total tax (benefit) expense from items charged directly to member’s equity | $ | (6,808 | ) | $ | 1,868 | $ | (2,764 | ) | |||
Total federal and state income tax expense | $ | 36,357 | $ | 31,250 | $ | 4,315 |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
AT DEC. 31, | |||||||
(THOUSANDS) | 2019 | 2018 | |||||
Depreciation and property basis differences | $ | (862,263 | ) | $ | (664,996 | ) | |
Net operating loss carryforward | 120,955 | — | |||||
NMTC | 92,364 | 86,673 | |||||
Fuel costs | (3,984 | ) | (8,339 | ) | |||
Other comprehensive income | 10,612 | 640 | |||||
Regulated operations regulatory liability, net | 34,836 | 39,808 | |||||
Postretirement benefits | 22,691 | 19,580 | |||||
Merger fair value adjustments | (52,957 | ) | (56,725 | ) | |||
Other | (19,312 | ) | (24,671 | ) | |||
Accumulated deferred federal and state income taxes, net | $ | (657,058 | ) | $ | (608,030 | ) |
FOR THE YEAR ENDED DEC. 31, | |||||||||||
(THOUSANDS, EXCEPT PERCENTAGES) | 2019 | 2018 | 2017 | ||||||||
Income before tax | $ | 193,714 | $ | 218,181 | $ | 218,069 | |||||
Statutory rate | 21.0 | % | 21.0 | % | 35.0 | % | |||||
Tax expense at federal statutory rate | $ | 40,680 | $ | 45,818 | $ | 76,324 | |||||
Increase (decrease) | |||||||||||
Plant differences, including AFUDC flowthrough | (4,687 | ) | (401 | ) | 743 | ||||||
State income taxes, net of federal benefit | 11,683 | 11,080 | 7,583 | ||||||||
Return to accrual adjustment | (2,008 | ) | 483 | (284 | ) | ||||||
TCJA | — | (19 | ) | (14,292 | ) | ||||||
Other, net | (216 | ) | (1,037 | ) | (2,743 | ) | |||||
Total taxes | $ | 45,452 | $ | 55,924 | $ | 67,331 | |||||
Effective rate | 23.5 | % | 25.6 | % | 30.9 | % |
FOR THE YEAR ENDED DEC. 31, | |||||||||||
(THOUSANDS) | 2019 | 2018 | 2017 | ||||||||
Current federal income tax expense | $ | 14,781 | $ | 44,411 | $ | 87,433 | |||||
Deferred federal income tax expense (benefit) | 22,443 | (9,033 | ) | (29,190 | ) | ||||||
Amortization of accumulated deferred investment tax credits | (191 | ) | (236 | ) | (662 | ) | |||||
Total federal income tax expense | $ | 37,033 | $ | 35,142 | $ | 57,581 | |||||
Current state income tax expense | 9,063 | 23,293 | 14,751 | ||||||||
Deferred state income tax benefit | (644 | ) | (2,511 | ) | (5,001 | ) | |||||
Total state income tax expense | $ | 8,419 | $ | 20,782 | $ | 9,750 | |||||
Total federal and state income taxes | $ | 45,452 | $ | 55,924 | $ | 67,331 | |||||
Items charged or credited directly to members’ equity | |||||||||||
Federal deferred | (2,500 | ) | 797 | (141 | ) | ||||||
State deferred | (818 | ) | 261 | (23 | ) | ||||||
Total tax (benefit) expense from items charged directly to member’s equity | $ | (3,318 | ) | $ | 1,058 | $ | (164 | ) | |||
Total federal and state income tax expense | $ | 42,134 | $ | 56,982 | $ | 67,167 |
AT DEC. 31, | |||||||
(THOUSANDS) | 2019 | 2018 | |||||
Depreciation and property basis differences | $ | (705,423 | ) | $ | (666,224 | ) | |
Net operating loss carryforward | 2,714 | — | |||||
Fuel costs | (5,608 | ) | (8,339 | ) | |||
Other comprehensive income | 7,510 | 4,192 | |||||
Regulated operations regulatory liability, net | 34,836 | 39,808 | |||||
Postretirement benefits | 10,044 | 11,081 | |||||
Other | (1,907 | ) | (11,283 | ) | |||
Accumulated deferred federal and state income taxes, net | $ | (657,834 | ) | $ | (630,765 | ) |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
Note 12 — Disclosures about Segments |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
SEGMENT INFORMATION | |||||||||||||||||||
FOR THE YEAR ENDED DEC. 31, 2019 | |||||||||||||||||||
(THOUSANDS) | CLECO POWER | CLECO CAJUN | OTHER | ELIMINATIONS | CONSOLIDATED | ||||||||||||||
Revenue | |||||||||||||||||||
Electric operations | $ | 1,130,928 | $ | 375,489 | $ | (9,680 | ) | $ | (1 | ) | $ | 1,496,736 | |||||||
Other operations | 72,833 | 117,468 | 2 | (7,471 | ) | 182,832 | |||||||||||||
Affiliate revenue | 3,125 | 108 | 109,067 | (112,300 | ) | — | |||||||||||||
Electric customer credits | (38,516 | ) | (1,447 | ) | — | — | (39,963 | ) | |||||||||||
Operating revenue, net | $ | 1,168,370 | $ | 491,618 | $ | 99,389 | $ | (119,772 | ) | $ | 1,639,605 | ||||||||
Depreciation and amortization | $ | 172,471 | $ | 35,544 | $ | 8,305 | $ | — | $ | 216,320 | |||||||||
Merger transaction and commitment costs | $ | — | $ | — | $ | 7,668 | $ | — | $ | 7,668 | |||||||||
Interest income | $ | 4,744 | $ | 987 | $ | 974 | $ | (615 | ) | $ | 6,090 | ||||||||
Interest charges | $ | 71,279 | $ | 35 | $ | 70,611 | $ | (616 | ) | $ | 141,309 | ||||||||
Net income (loss) | $ | 148,262 | $ | 69,411 | $ | (65,009 | ) | $ | 1 | $ | 152,665 | ||||||||
Additions to property, plant, and equipment | $ | 313,962 | $ | 9,174 | $ | 655 | $ | — | $ | 323,791 | |||||||||
Equity investment in investee | $ | 17,072 | $ | — | $ | — | $ | — | $ | 17,072 | |||||||||
Goodwill | $ | 1,490,797 | $ | — | $ | — | $ | — | $ | 1,490,797 | |||||||||
Total segment assets | $ | 5,967,327 | $ | 1,011,591 | $ | 546,096 | $ | (48,716 | ) | $ | 7,476,298 |
FOR THE YEAR ENDED DEC. 31, 2018 | |||||||||||||||
(THOUSANDS) | CLECO POWER | OTHER | ELIMINATIONS | CONSOLIDATED | |||||||||||
Revenue | |||||||||||||||
Electric operations | $ | 1,191,587 | $ | (9,680 | ) | $ | — | $ | 1,181,907 | ||||||
Other operations | 82,330 | 2 | — | 82,332 | |||||||||||
Affiliate revenue | 874 | 74,591 | (75,465 | ) | — | ||||||||||
Electric customer credits | (33,195 | ) | — | — | (33,195 | ) | |||||||||
Operating revenue, net | $ | 1,241,596 | $ | 64,913 | $ | (75,465 | ) | $ | 1,231,044 | ||||||
Depreciation and amortization | $ | 162,069 | $ | 8,344 | $ | 1 | $ | 170,414 | |||||||
Merger transaction and commitment costs | $ | — | $ | 19,514 | $ | — | $ | 19,514 | |||||||
Interest income | $ | 5,052 | $ | 1,338 | $ | (317 | ) | $ | 6,073 | ||||||
Interest charges | $ | 71,303 | $ | 55,659 | $ | (320 | ) | $ | 126,642 | ||||||
Federal and state income tax expense (benefit) | $ | 55,924 | $ | (26,541 | ) | $ | (1 | ) | $ | 29,382 | |||||
Net income (loss) | $ | 162,257 | $ | (67,819 | ) | $ | (1 | ) | $ | 94,437 | |||||
Additions to property, plant, and equipment | $ | 289,153 | $ | 1,908 | $ | — | $ | 291,061 | |||||||
Equity investment in investee | $ | 18,172 | $ | — | $ | — | $ | 18,172 | |||||||
Goodwill | $ | 1,490,797 | $ | — | $ | — | $ | 1,490,797 | |||||||
Total segment assets | $ | 5,839,853 | $ | 633,756 | $ | (36,795 | ) | $ | 6,436,814 |
FOR THE YEAR ENDED DEC. 31, 2017 | |||||||||||||||
(THOUSANDS) | CLECO POWER | OTHER | ELIMINATIONS | CONSOLIDATED | |||||||||||
Revenue | |||||||||||||||
Electric operations | $ | 1,108,389 | $ | (10,757 | ) | $ | — | $ | 1,097,632 | ||||||
Other operations | 77,522 | 2,058 | — | 79,580 | |||||||||||
Affiliate revenue | 851 | 57,168 | (58,019 | ) | — | ||||||||||
Electric customer credits | (1,566 | ) | — | — | (1,566 | ) | |||||||||
Operating revenue, net | $ | 1,185,196 | $ | 48,469 | $ | (58,019 | ) | $ | 1,175,646 | ||||||
Depreciation and amortization | $ | 158,415 | $ | 8,439 | $ | — | $ | 166,854 | |||||||
Merger transaction and commitment costs | $ | — | $ | 5,445 | $ | (293 | ) | $ | 5,152 | ||||||
Interest income | $ | 1,283 | $ | 316 | $ | (175 | ) | $ | 1,424 | ||||||
Interest charges | $ | 69,362 | $ | 53,725 | $ | (174 | ) | $ | 122,913 | ||||||
Federal and state income tax expense (benefit) | $ | 67,331 | $ | (60,252 | ) | $ | — | $ | 7,079 | ||||||
Net income (loss) | $ | 150,738 | $ | (12,659 | ) | $ | 1 | $ | 138,080 | ||||||
Additions to property, plant, and equipment | $ | 235,252 | $ | 1,680 | $ | — | $ | 236,932 | |||||||
Equity investment in investee | $ | 18,172 | $ | — | $ | — | $ | 18,172 | |||||||
Goodwill | $ | 1,490,797 | $ | — | $ | — | $ | 1,490,797 | |||||||
Total segment assets | $ | 5,679,538 | $ | 619,943 | $ | (21,099 | ) | $ | 6,278,382 |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
Note 13 — Regulation and Rates |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
Note 14 — Variable Interest Entities |
AT DEC. 31, | |||||||
INCEPTION TO DATE (THOUSANDS) | 2019 | 2018 | |||||
Purchase price | $ | 12,873 | $ | 12,873 | |||
Cash contributions | 6,399 | 6,399 | |||||
Dividend received | (2,200 | ) | (1,100 | ) | |||
Total equity investment in investee | $ | 17,072 | $ | 18,172 |
AT DEC. 31, | |||||||
(THOUSANDS) | 2019 | 2018 | |||||
Oxbow’s net assets/liabilities | $ | 34,145 | $ | 36,345 | |||
Cleco Power’s 50% equity | $ | 17,072 | $ | 18,172 | |||
Cleco Power’s maximum exposure to loss | $ | 17,072 | $ | 18,172 |
AT DEC. 31, | |||||||
(THOUSANDS) | 2019 | 2018 | |||||
Current assets | $ | 2,239 | $ | 4,128 | |||
Property, plant, and equipment, net | 23,738 | 25,186 | |||||
Other assets | 9,364 | 9,405 | |||||
Total assets | $ | 35,341 | $ | 38,719 | |||
Current liabilities | $ | 1,196 | $ | 2,374 | |||
Partners’ capital | 34,145 | 36,345 | |||||
Total liabilities and partners’ capital | $ | 35,341 | $ | 38,719 |
FOR THE YEAR ENDED DEC. 31, | |||||||||||
(THOUSANDS) | 2019 | 2018 | 2017 | ||||||||
Operating revenue | $ | 8,886 | $ | 6,992 | $ | 4,189 | |||||
Operating expenses | 8,886 | 6,992 | 4,189 | ||||||||
Income before taxes | $ | — | $ | — | $ | — |
Note 15 — Litigation, Other Commitments and Contingencies, and Disclosures about Guarantees |
• | Braunstein v. Cleco Corporation, No. 251,383B (filed October 27, 2014), |
• | Moore v. Macquarie Infrastructure and Real Assets, No. 251,417C (filed October 30, 2014), |
• | Trahan v. Williamson, No. 251,456C (filed November 5, 2014), and |
• | L’Herisson v. Macquarie Infrastructure and Real Assets, No. 251,515F (filed November 14, 2014). |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
• | Butler v. Cleco Corporation, No. 2014-10776 (filed November 7, 2014), |
• | Creative Life Services, Inc. v. Cleco Corporation, No. 2014-11098 (filed November 19, 2014), and |
• | Cashen v. Cleco Corporation, No. 2014-11236 (filed November 21, 2014). |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
(THOUSANDS) | CLECO POWER | CLECO | |||||
For the year ending Dec. 31, | |||||||
2020 | $ | 28,741 | $ | 89,490 | |||
2021 | 29,832 | 35,986 | |||||
2022 | 18,025 | 19,311 | |||||
2023 | 7,751 | 8,782 | |||||
2024 | 7,740 | 9,829 | |||||
Thereafter | 13,242 | 14,474 | |||||
Total long-term purchase obligations | $ | 105,331 | $ | 177,872 |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
Note 16 — Affiliate Transactions |
FOR THE YEAR ENDED DEC. 31, | |||||||||||
(THOUSANDS) | 2019 | 2018 | 2017 | ||||||||
Support Group | |||||||||||
Other operations and maintenance | $ | 73,090 | $ | 56,669 | $ | 50,572 | |||||
Taxes other than income taxes | $ | (73 | ) | $ | 6 | $ | (13 | ) | |||
Other expense | $ | 64 | $ | 290 | $ | 255 | |||||
Cleco Holdings | |||||||||||
Other expense | $ | — | $ | 1,007 | $ | 361 |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
FOR THE YEAR ENDED DEC. 31, | |||||||||||
(THOUSANDS) | 2019 | 2018 | 2017 | ||||||||
Other operations revenue | |||||||||||
Cleco Cajun | $ | 7,471 | $ | — | $ | — | |||||
Affiliate revenue | |||||||||||
Support Group | 3,088 | 874 | 851 | ||||||||
Cleco Cajun | 37 | — | — | ||||||||
Other income | |||||||||||
Cleco Holdings | 149 | 1,092 | 494 | ||||||||
Total | $ | 10,745 | $ | 1,966 | $ | 1,345 |
AT DEC. 31, | |||||||||||||||
2019 | 2018 | ||||||||||||||
(THOUSANDS) | ACCOUNTS RECEIVABLE | ACCOUNTS PAYABLE | ACCOUNTS RECEIVABLE | ACCOUNTS PAYABLE | |||||||||||
Cleco Holdings | $ | 10,351 | $ | 194 | $ | 699 | $ | 88 | |||||||
Support Group | 3,172 | 13,890 | 2,619 | 7,755 | |||||||||||
Cleco Cajun | 958 | 39 | — | — | |||||||||||
Total | $ | 14,481 | $ | 14,123 | $ | 3,318 | $ | 7,843 |
FOR THE YEAR ENDED DEC. 31, | ||||||
(THOUSANDS) | 2019 | 2018 | ||||
Support Group | $ | 1,316 | $ | 1,963 | ||
Cleco Cajun | $ | 239 | $ | — |
Note 17 — Intangible Assets, Intangible Liabilities, and Goodwill |
Cleco | |||||||||||
FOR THE YEAR ENDED DEC. 31, | |||||||||||
(THOUSANDS) | 2019 | 2018 | 2017 | ||||||||
Intangible assets | |||||||||||
Cleco Katrina/Rita right to bill and collect storm recover charges | $ | 20,576 | $ | 20,608 | $ | 16,772 | |||||
Trade name | $ | 255 | $ | 255 | $ | 255 | |||||
Power supply agreements | $ | 24,273 | $ | 9,680 | $ | 10,757 | |||||
Intangible liabilities | |||||||||||
LTSA | $ | 3,194 | $ | — | $ | — | |||||
Power supply agreements | $ | 3,234 | $ | — | $ | — | |||||
No impairments for intangibles in the table above for 2019, 2018, and 2017. |
Cleco Power | |||||||||||
FOR THE YEAR ENDED DEC. 31, | |||||||||||
(THOUSANDS) | 2019 | 2018 | 2017 | ||||||||
Cleco Katrina/Rita right to bill and collect storm recovery charges | $ | 20,576 | $ | 20,608 | $ | 16,772 |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
Cleco | |||||||
AT DEC. 31, | |||||||
(THOUSANDS) | 2019 | 2018 | |||||
Intangible assets | |||||||
Cleco Katrina/Rita right to bill and collect storm recovery charges | $ | 70,594 | $ | 70,594 | |||
Trade name | 5,100 | 5,100 | |||||
Power supply agreements | 184,004 | 85,104 | |||||
Total intangible assets carrying amount | 259,698 | 160,798 | |||||
Intangible liabilities | |||||||
LTSA | 24,100 | — | |||||
Power supply agreements | 14,200 | — | |||||
Total intangible liabilities carrying amount | 38,300 | — | |||||
Net intangible assets carrying amount | 221,398 | 160,798 | |||||
Accumulated amortization | (115,167 | ) | (76,491 | ) | |||
Net intangible assets subject to amortization | $ | 106,231 | $ | 84,307 |
Cleco Power | |||||||
AT DEC. 31, | |||||||
(THOUSANDS) | 2019 | 2018 | |||||
Cleco Katrina/Rita right to bill and collect storm recovery charges | $ | 177,537 | $ | 177,537 | |||
Accumulated amortization | (177,020 | ) | (156,444 | ) | |||
Net intangible assets subject to amortization | $ | 517 | $ | 21,093 |
Cleco | ||||||
(THOUSANDS) | INTANGIBLE ASSETS | INTANGIBLE LIABILITIES | ||||
For the year ending Dec. 31, | ||||||
2020 | $ | 26,372 | $ | (7,012 | ) | |
2021 | $ | 25,855 | $ | (5,862 | ) | |
2022 | $ | 25,855 | $ | (5,041 | ) | |
2023 | $ | 25,855 | $ | (5,041 | ) | |
2024 | $ | 29,459 | $ | (5,041 | ) | |
Thereafter | $ | 4,707 | $ | (3,875 | ) |
Note 18 — Accumulated Other Comprehensive Loss |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
Cleco | |||
(THOUSANDS) | POSTRETIREMENT BENEFIT NET GAIN (LOSS) | ||
Balances, Dec. 31, 2016 | $ | 1,500 | |
Other comprehensive income before reclassifications | |||
Postretirement benefit adjustments incurred during the year | (3,898 | ) | |
Amounts reclassified from accumulated other comprehensive income | |||
Amortization of postretirement benefit net gain | (523 | ) | |
Balances, Dec. 31, 2017 | $ | (2,921 | ) |
Other comprehensive income before reclassifications | |||
Postretirement benefit adjustments incurred during the year | 3,681 | ||
Amounts reclassified from accumulated other comprehensive income | |||
Amortization of postretirement benefit net loss | 1,615 | ||
Reclassification of effect of tax rate change | (589 | ) | |
Balances, Dec. 31, 2018 | $ | 1,786 | |
Other comprehensive income before reclassifications | |||
Postretirement benefit adjustments incurred during the year | (18,877 | ) | |
Amounts reclassified from accumulated other comprehensive income | |||
Amortization of postretirement benefit net loss | (422 | ) | |
Balances, Dec. 31, 2019 | $ | (17,513 | ) |
Cleco Power | |||||||||||
(THOUSANDS) | POSTRETIREMENT BENEFIT NET (LOSS) GAIN | NET (LOSS) GAIN ON CASH FLOW HEDGES | TOTAL AOCI | ||||||||
Balances, Dec. 31, 2016 | $ | (7,905 | ) | $ | (5,517 | ) | $ | (13,422 | ) | ||
Other comprehensive loss before reclassifications | |||||||||||
Postretirement benefit adjustments incurred during the year | (948 | ) | — | (948 | ) | ||||||
Amounts reclassified from accumulated other comprehensive loss | |||||||||||
Amortization of postretirement benefit net loss | 476 | — | 476 | ||||||||
Reclassification of net loss to interest charges | — | 211 | 211 | ||||||||
Balances, Dec. 31, 2017 | $ | (8,377 | ) | $ | (5,306 | ) | $ | (13,683 | ) | ||
Other comprehensive loss before reclassifications | |||||||||||
Postretirement benefit adjustments incurred during the year | 954 | — | 954 | ||||||||
Amounts reclassified from accumulated other comprehensive loss | |||||||||||
Amortization of postretirement benefit net loss | 1,789 | — | 1,789 | ||||||||
Reclassification of net loss to interest charges | — | 254 | 254 | ||||||||
Reclassification of effect of tax rate change | (1,426 | ) | (1,070 | ) | (2,496 | ) | |||||
Balances, Dec. 31, 2018 | $ | (7,060 | ) | $ | (6,122 | ) | $ | (13,182 | ) | ||
Other comprehensive loss before reclassifications | |||||||||||
Postretirement benefit adjustments incurred during the year | (10,344 | ) | — | (10,344 | ) | ||||||
Amounts reclassified from accumulated other comprehensive loss | |||||||||||
Amortization of postretirement benefit net loss | 687 | — | 687 | ||||||||
Reclassification of net gain to interest charges | — | 254 | 254 | ||||||||
Balances, Dec. 31, 2019 | $ | (16,717 | ) | $ | (5,868 | ) | $ | (22,585 | ) |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
Note 19 — Miscellaneous Financial Information (Unaudited) |
2019 | |||||||||||||||
(THOUSANDS) | 1ST QUARTER | 2ND QUARTER | 3RD QUARTER | 4TH QUARTER | |||||||||||
Operating revenue, net | $ | 344,186 | $ | 397,873 | $ | 487,971 | $ | 409,575 | |||||||
Operating income | $ | 50,586 | $ | 87,196 | $ | 101,539 | $ | 75,573 | |||||||
Net income | $ | 20,557 | $ | 44,746 | $ | 55,565 | $ | 31,797 |
2018 | |||||||||||||||
(THOUSANDS) | 1ST QUARTER | 2ND QUARTER | 3RD QUARTER | 4TH QUARTER | |||||||||||
Operating revenue, net | $ | 276,760 | $ | 299,261 | $ | 358,256 | $ | 296,767 | |||||||
Operating income | $ | 44,734 | $ | 63,709 | $ | 86,110 | $ | 50,004 | |||||||
Net income | $ | 10,861 | $ | 25,839 | $ | 47,360 | $ | 10,377 | |||||||
Distributions to member | $ | 19,500 | $ | 20,400 | $ | 20,600 | $ | 10,850 |
2019 | |||||||||||||||
(THOUSANDS) | 1ST QUARTER | 2ND QUARTER | 3RD QUARTER | 4TH QUARTER | |||||||||||
Operating revenue, net | $ | 268,745 | $ | 272,972 | $ | 344,977 | $ | 281,676 | |||||||
Operating income | $ | 44,905 | $ | 75,446 | $ | 78,132 | $ | 49,985 | |||||||
Net income | $ | 26,712 | $ | 49,356 | $ | 51,527 | $ | 20,667 | |||||||
Distributions to member | $ | — | $ | — | $ | — | $ | 20,000 |
2018 | |||||||||||||||
(THOUSANDS) | 1ST QUARTER | 2ND QUARTER | 3RD QUARTER | 4TH QUARTER | |||||||||||
Operating revenue, net | $ | 279,387 | $ | 301,901 | $ | 360,899 | $ | 299,409 | |||||||
Operating income | $ | 50,521 | $ | 72,602 | $ | 96,063 | $ | 59,786 | |||||||
Net income | $ | 26,004 | $ | 43,020 | $ | 63,336 | $ | 29,897 | |||||||
Distributions to member | $ | 28,000 | $ | 43,000 | $ | 50,400 | $ | — |
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE |
ITEM 9A. CONTROLS AND PROCEDURES |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
• | Providing additional training and instructional guidance to control owners on management’s expectations for control performance and related evidence to maintain. |
• | Reassessing extent of access assigned to users to ensure the access granted is commensurate with each user’s respective roles and responsibilities. |
• | Enabled configurations to allow for automated exception identification in key processes. |
• | Enhancing the level of precision and addressing identified gaps in the design of existing controls. |
• | Designing and implementing new controls (both preventive and detective) to address any gaps in how relevant risks are being addressed. |
• | Performing additional monitoring and testing over the implementation and operating effectiveness of existing controls. |
• | Performing an assessment of the newly implemented ERP system to identify opportunities for more comprehensive control coverage over identified risks as well as opportunities for enhanced system automation. |
ITEM 9B. OTHER INFORMATION |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
PART III |
ITEM 10. DIRECTORS, EXECUTIVE OFFICERS, AND CORPORATE GOVERNANCE OF THE REGISTRANTS |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
NAME OF EXECUTIVE | POSITION AND FIVE-YEAR EMPLOYMENT HISTORY |
William G. Fontenot Cleco Holdings Cleco Power Cleco Cajun | President and CEO since January 2018. CEO since February 2019; President and CEO from January 2018 to February 2019; Interim CEO from February 2017 to December 2017; Chief Operating Officer from April 2016 to February 2017; Senior Vice President - Utility Operations from March 2012 to April 2016. CEO since February 2019. (Age 57; 33 years of service) |
Kazi K. Hasan Cleco Holdings Cleco Power Cleco Cajun | CFO since October 2018; Chief Risk Officer, AES Corporation from late 2014 to May 2018. CFO since February 2019. (Age 49; 1 year of service) |
Julia E. Callis (1) Cleco Holdings Cleco Power | Chief Compliance Officer and General Counsel since April 2016; Associate General Counsel and Corporate Secretary from November 2011 to April 2016. (Age 51; 12 years of service) |
Anthony L. Bunting Cleco Holdings Cleco Power | Chief Transformation Officer since February 2019; Chief Administrative Officer from April 2016 to February 2019; Vice President - Transmission & Distribution Operations from March 2012 to April 2016. (Age 60; 28 years of service) |
Robert R. LaBorde, Jr. Cleco Holdings Cleco Power | Chief Operations Officer since February 2019; Vice President Generation Operations & Environmental Services from April 2016 to February 2019. Vice President - Generation Operations from November 2012 to April 2016. (Age 52; 28 years of service) |
(1) Ms. Callis will resign from Cleco effective in March 2020. |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
NAME OF EXECUTIVE | POSITION AND FIVE-YEAR EMPLOYMENT HISTORY |
Justin S. Hilton Cleco Power Cleco Holdings Cleco Power | President since February 2019. Vice President MISO Operations from April 2016 to February 2019; General Manager Transmission Strategy from March 2012 to April 2016. (Age 50; 30 years of service) |
Robert E. Adrian Cleco Cajun | Chief Operating Officer since November 2018; CEO, eServices, LLC from January 2012 to November 2018. (Age 60; 1 year of service) |
J. Robert Cleghorn Cleco Power Cleco Holdings Cleco Power | Vice President Regulatory Strategy since April 2016. General Manager Regulatory Strategy & Planning from March 2012 to April 2016. (Age 61; 32 years of service) |
Gregory A. Coco Cleco Power Cleco Holdings Cleco Power | Vice President Transmission & Distribution Operations since April 2016. General Manager Brame Energy Center from March 2013 to April 2016. (Age 60; 38 years of service) |
Patrick M. Dupuy Cleco Holdings | Interim Vice President Asset Optimization since February 2019; Plant Manager, Dolet Hills Power Station from November 2002 to February 2019. (Age 57; 34 years of service) |
Kristin L. Guillory Cleco Cajun Cleco Holdings Cleco Power | President since September 2019. Treasurer from February 2018 to September 2019; General Manager Finance and Assistant Treasurer from May 2016 to February 2018; Manager Finance, Risk and Analytics & Assistant Treasurer from December 2013 to May 2016. (Age 37; 15 years of service) |
Jeremy J. Kliebert Cleco Holdings | Associate General Counsel since March 2019; Vice President, Deputy General Counsel, Chief Data Privacy Officer, Chief IP Counsel, and Chief Privacy Counsel, Albemarle Corporation from December 2017 to March 2019; Vice President, Deputy General Counsel, Chief IP Counsel and Data Privacy Counsel, Albemarle Corporation from January 2015 to December 2017. (Age 44; <1 year of service) |
F. Tonita Laprarie Cleco Holdings Cleco Power Cleco Cajun | Controller & Chief Accounting Officer since July 2016; General Manager Audit & Risk from March 2014 to July 2016. Controller & Chief Accounting Officer since February 2019. (Age 55; 19 years of service) |
Mark A. Madsen Cleco Holdings | Chief Digital & Information Officer since May 2019; Chief Information Officer, Vice President of IT - Waste Management Inc. from March 2010 to January 2019. (Age 50; <1 year of service) |
Normanique G. Preston Cleco Holdings | Chief Human Resources & Diversity Officer since September 2019; Vice President Human Resources from August 2018 to September 2019; Vice President - Human Resources, Dynegy, Inc. from November 2015 to June 2018. (Age 53; 1 year of service) |
Joel M. Prevost Cleco Holdings Cleco Power | Vice President Asset Management since April 2016; General Manager T&D Engineering & Construction from March 2012 to April 2016. (Age 59; 38 years of service) |
Eric A. Schouest Cleco Power Cleco Cajun Cleco Holdings Cleco Power | Vice President Governmental Affairs since September 2019. President from February 2019 to September 2019; Interim President from May 2018 to February 2019. Vice President Governmental Affairs from March 2018 to May 2018; Vice President Marketing South from August 2016 to March 2018; General Manager Governmental Affairs/Regulatory Sales from February 2013 to August 2016. (Age 54; 18 years of service) |
Dean C. Sikes Cleco Holdings Cleco Power | Vice President Engineering, Construction & Project Management since April 2016; General Manager Generation Engineering & Construction from March 2013 to April 2016. (Age 56; 32 years of service) |
Marty A. Smith Cleco Power Cleco Holdings | Vice President Marketing since May 2018; Vice President Marketing North from January 2017 to May 2018; General Manager Distribution Engineering & Real Estate from February 2013 to April 2016. General Manager Corporate Safety from April 2016 to January 2017. (Age 58; 28 years of service) |
Russell L. Snyder Cleco Power | Vice President Generation Operations since February 2019; General Manager Southern Gas Fleet from May 2016 to February 2019; Manager - Power Plant (>500 MW) from February 2010 to May 2016. (Age 59; 35 years of service) |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
NAME OF EXECUTIVE | POSITION AND FIVE-YEAR EMPLOYMENT HISTORY |
Terry J. Whitmore Cleco Holdings Cleco Power | Vice President Transmission Services since February 2019. General Manager Transmission Strategy from May 2016 to February 2019; Manager - Transmission Strategy & Support from March 2012 to May 2016. (Age 56; 30 years of service) |
ITEM 11. EXECUTIVE COMPENSATION |
• | Key Strategic Initiatives |
◦ | Completed the START project which includes replacement of and improvement to Cleco’s enterprise business applications |
◦ | Implemented several key elements of the safety strategy focused on improving employee and contractor safety to |
◦ | Continued capture of potential cost savings identified in the 2017 benchmarking opportunity assessment |
◦ | Increased efforts related to cybersecurity |
◦ | Completed the human resources strategy related to succession planning as well as diversity and inclusion |
• | Effective Utility Operations |
◦ | Effectively restored power following nine storms with a total cost of $25.1 million |
• | Key Capital Investments and Regulatory Outcomes |
◦ | Completed construction on the St. Mary Clean Energy Center project, the Coughlin Pipeline project, and the Terrebonne to Bayou Vista Transmission project |
◦ | Continuing construction on the Bayou Vista to Segura Transmission project |
◦ | Continuing the DSMART project |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
• | Executives should be rewarded on performance, and incentives should align interests between management and the Company; |
• | Total remuneration (the sum of base salary, annual incentives, long-term incentives, and retirement benefits) should be aligned with the market median; |
◦ | Newly hired and/or promoted executives should be transitioned to median over time as they become more proficient in their roles; |
• | The mix of fixed compensation (base salary and retirement benefits) and variable/at-risk compensation (annual |
• | The competitive market for an executive’s compensation will be based on comparable utilities and will not be adjusted for Cleco’s privately held status or location. |
2019 PAY ELEMENT | DESCRIPTION |
Base Salary | • Fixed pay element • Delivered in cash |
Annual Cash Incentive (STIP) | • Performance-based annual incentive plan that pays out in cash • EBITDA is primary measure for the named executive officers • Additional metrics include safety, system reliability, customer service, generation fleet availability, and milestone measures |
Long-Term Incentives | • Performance-based incentive paid in cash currently with a three-year cycle • Payout is contingent on Average ROE and Total EBITDA, each weighted at 50% |
Benefits | • Broad-based benefits such as group medical, dental, vision, and prescription drug coverage; basic life insurance; supplemental life insurance; dependent life insurance; accidental death and dismemberment insurance; a defined benefit pension plan (for those employees hired prior to August 1, 2007); and a 401(k) Plan with a Company match for those employees hired before August 1, 2007, as well as a 401(k) Plan with an enhanced benefit for those employees hired on or after August 1, 2007; same as those provided to all employees |
Executive Benefits | • SERP (closed to new participants in 2014) • Nonqualified Deferred Compensation Plan |
Perquisites | • Limited to executive physicals, spousal/companion travel, and relocation assistance |
• | establishing and overseeing the Company’s executive compensation philosophy and goals and the programs which align with those; |
• | engaging and evaluating an independent compensation consultant; |
• | determining if the Company’s executive compensation and benefit programs are achieving their intended purpose, being properly administered and creating proper incentives in light of the Company’s risk factors; |
• | analyzing the executive compensation and benefits practices of peer companies and annually reporting to the Board or recommending for approval by the Board the overall design of the Company’s executive compensation and benefit programs; |
• | annually evaluating the performance of the CEO and the CFO and recommending to the Board adjustments in the CEO and CFO’s compensation and benefits; |
• | overseeing the administrative committees and periodically reviewing the Company’s benefit plans, including retirement plans; |
• | annually reviewing the Committee’s charter and revising as necessary; |
• | annually ensuring there is a process for talent and succession management for executives; and |
• | reviews and makes recommendations on efforts to promote diversity and inclusion. |
• | recommending a group of peer companies to use for market comparisons; |
• | reviewing the Company’s executive compensation program, including compensation levels in relation to Company performance, pay opportunities relative to those at comparable companies, short- and long-term incentive targets and metrics, executive retirement benefits, and other executive benefits; |
• | reviewing the Company’s Board of Manager compensation program; |
• | reporting on emerging trends and best practices in the area of executive and Board of Manager compensation; and |
• | attending the Committee meetings. |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
2019 PEER GROUP COMPANIES | ||
ALLETE, Inc. | Hawaiian Electric Industries, Inc. | Pinnacle West Capital Corporation |
Alliant Energy Corporation | IDACORP, Inc. | PNM Resources, Inc. |
Avista Corporation | NorthWestern Corporation | Portland General Electric Company |
Black Hills Corporation | OGE Energy Corp. | |
El Paso Electric Company | Otter Tail Corporation |
NAME | 2019 BASE SALARY | 2019 % CHANGE | |||
Mr. Fontenot | $ | 650,000 | 13.0 | % | |
Mr. Hasan | $ | 400,000 | 0.0 | % | |
Ms. Callis | $ | 285,000 | 5.6 | % | |
Mr. Bunting | $ | 300,000 | 22.0 | % | |
Mr. LaBorde | $ | 265,000 | 10.4 | % | |
Mr. Hilton (1) | $ | 260,000 | 20.9 | % |
NAME | TARGET AS % OF BASE SALARY |
Mr. Fontenot | 100% |
Mr. Hasan | 50% |
Ms. Callis | 50% |
Mr. Bunting | 50% |
Mr. LaBorde | 50% |
Mr. Hilton (1) | 50% |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
CONSOLIDATED | BUSINESS UNIT | MILESTONE MEASURES | ||||||||
SAFETY | EBITDA | EFORd | PEAK EAF | CUSTOMER SATISFACTION | LPSC SAIDI | EBITDA | ||||
Cleco Power | 10% | 20% | 10% | 15% | 5% | 20% | 20% | |||
Cleco Support (1) | 10% | 20% | 7.5% | 7.5% | 7.5% | 2.5% | 25% | 20% | ||
Cleco Cajun | 10% | 20% | 5% | 15% | 30% | 20% |
SAFETY - TRIR MATRIX (5%) | |
PERFORMANCE LEVEL | % OF TRIR TARGET AWARD PAID |
Above 0.655 | 0% |
0.586 - 0.655 | 50% |
0.515 - 0.585 | 100% |
0.444 - 0.514 | 150% |
At or below 0.443 | 200% |
2019 Result (0.490) | 150% |
SAFETY - DART MATRIX (5%) | |
PERFORMANCE LEVEL | % OF DART TARGET AWARD PAID |
Above 0.359 | 0% |
0.301 - 0.359 | 50% |
0.242 - 0.300 | 100% |
0.183 - 0.241 | 150% |
At or below 0.182 | 200% |
2019 Result (0.210) | 150% |
EBITDA MATRIX - CONSOLIDATED (20%) | |
PERFORMANCE LEVEL | % OF FINANCIAL TARGET AWARD PAID |
Below $496.3 million | 0% |
Below $534.3 and above $496.3 million | 50% |
Between $534.3 and $544.1 million | 100% |
Above $544.1 and below $582.1 million | 150% |
At or above $582.1 million | 200% |
2019 Result - $565.1 million | 155.3% |
EFORd MATRIX - CLECO POWER (10%) | |
PERFORMANCE LEVEL | % OF EFORd TARGET AWARD PAID |
Above 7.33% | 0% |
6.55% - 7.33% | 50% |
5.75% - 6.54% | 100% |
4.96% - 5.74% | 150% |
At or below 4.95% | 200% |
2019 Result (3.6%) | 200% |
EFORd MATRIX - CLECO CAJUN (5%) | |
PERFORMANCE LEVEL | % of EFORd TARGET AWARD PAID |
Above 13.09% | 0% |
12.56% - 13.09% | 50% |
12.02% - 12.55% | 100% |
11.49% -12.01% | 150% |
At or below 11.48% | 200% |
2019 Result (7.5%) | 200% |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
PEAK EAF MATRIX - CLECO CAJUN (15%) | |
PERFORMANCE LEVEL | % OF PEAK EAF TARGET AWARD PAID |
Below 88.51% | 0% |
At or above 88.51% | 100% |
2019 Result (96.77%) | 100% |
CUSTOMER SATISFACTION MATRIX - CLECO POWER (15%) | |
PERFORMANCE LEVEL | % OF CUSTOMER SATISFACTION TARGET AWARD PAID |
Below 675 | 0% |
675 - 715 | 50% |
716 - 736 | 100% |
737 - 745 | 150% |
At or above 746 | 200% |
2019 Result (717) | 100% |
Committee Discretion | (50)% |
Resulting Total Payout | 50% |
LPSC SAIDI MATRIX - CLECO POWER (5%) | |
PERFORMANCE LEVEL | % OF LPSC SAIDI TARGET AWARD PAID |
Above 2.87 | 0% |
At or below 2.87 | 100% |
2019 Result (2.64) | 100% |
EBITDA MATRIX - CLECO POWER (20%) | ||
PERFORMANCE LEVEL | % OF FINANCIAL TARGET AWARD PAID | |
Below $407.6 million | 0 | % |
Below $440.7 and above $407.6 million | 50 | % |
$440.7 million | 100 | % |
Above $440.7 and below $473.7 million | 150 | % |
At or above $473.7 million | 200 | % |
2019 Result - $438.7 million | 97.0 | % |
EBITDA MATRIX - CLECO CAJUN (30%) | ||
PERFORMANCE LEVEL | % OF FINANCIAL TARGET AWARD PAID | |
Below $88.7 million | 0 | % |
Below $93.6 million and $88.7 million | 50 | % |
Between $93.6 and $103.4 million | 100 | % |
Above $103.4 and below $108.4 million | 150 | % |
At or above $108.4 million | 200 | % |
2019 Result - $126.4 million | 200 | % |
MILESTONE MEASURES (20%) | |
2019 RESULTS | % OF MILESTONE TARGET AWARD PAID |
Cleco Power | 70% |
Support Group | 70% |
Cleco Cajun | 100% |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
% OF TARGET | x | AWARD LEVEL | = | % OF PAYOUT | |||||
Safety Consolidated | 10 | % | 150 | % | 15 | % | |||
EBITDA Consolidated | 20 | % | 155.3 | % | 31.1 | % | |||
EFORd | 10 | % | 200 | % | 20 | % | |||
Customer Satisfaction | 15 | % | 50 | % | 7.5 | % | |||
LPSC SAIDI | 5 | % | 100 | % | 5 | % | |||
EBITDA | 20 | % | 97 | % | 19.4 | % | |||
Milestone Measures | 20 | % | 70 | % | 14 | % | |||
Total | 100 | % | 112 | % |
% OF TARGET | x | AWARD LEVEL | = | % OF PAYOUT | |||||
Safety Consolidated | 10 | % | 150 | % | 15 | % | |||
EBITDA Consolidated | 20 | % | 155.3 | % | 31.1 | % | |||
EFORd | 7.5 | % | 200 | % | 15 | % | |||
Peak EAF | 7.5 | % | 100 | % | 7.5 | % | |||
Customer Satisfaction | 7.5 | % | 50 | % | 3.7 | % | |||
LPSC SAIDI | 2.5 | % | 100 | % | 2.5 | % | |||
EBITDA | 25 | % | 158.9 | % | 39.7 | % | |||
Milestone Measures | 20 | % | 70 | % | 14 | % | |||
Total | 100 | % | 128.5 | % |
% OF TARGET | x | AWARD LEVEL | = | % OF PAYOUT | |||||
Safety Consolidated | 10 | % | 150 | % | 15 | % | |||
EBITDA Consolidated | 20 | % | 155.3 | % | 31.1 | % | |||
EFORd | 5 | % | 200 | % | 10 | % | |||
Peak EAF | 15 | % | 100 | % | 15 | % | |||
EBITDA | 30 | % | 200 | % | 60 | % | |||
Milestone Measures | 20 | % | 100 | % | 20 | % | |||
Total | 100 | % | 151.1 | % |
NAME | TARGET AS % OF BASE SALARY | |
Mr. Fontenot | 231 | % |
Mr. Hasan | 110 | % |
Ms. Callis | 110 | % |
Mr. Bunting | 110 | % |
Mr. LaBorde | 110 | % |
Mr. Hilton | 110 | % |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
• | Executive officer physicals - as a condition of receiving their STIP award, we require and pay for an annual physical for the executive officers and their spouses; |
• | Spousal/companion travel - in connection with the various industry, governmental, civic, and entertainment activities of the executive officers, we pay for spousal/companion travel associated with such events; |
• | Relocation program - in addition to the standard relocation policy available to all employees, we maintain a policy whereby the executive officers and other key employees may request that the Company pay real estate agent and |
• | Purchase program - under the Executive Severance Plan, a covered executive officer may request the Company to purchase his/her primary residence in the event he or she is involuntarily terminated without cause or separates for good reason, either in connection with a change in control and further provided the executive officer relocates more than 100 miles from the residence to be purchased. Limits on the purchase amount are the same as the relocation program described above. |
• | Annual compensation expense for each named executive officer - this includes the rate of change in total cash compensation from year-to-year; the annual periodic cost of providing retirement benefits; and the annual cost of providing other benefits such as health insurance, as well as the status of any deferred compensation. |
• | Reportable compensation - to further evaluate total compensation; to evaluate total compensation of the CEO |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
• | Post-employment payments - reviewed pursuant to the potential separation events discussed in “Potential Payments at Termination or Change in Control.” |
• | the Committee reviews the design of the executive compensation program to ensure an appropriate balance between business risk and resulting compensation; |
• | the Committee allocates pay mix between base salary and performance-based pay to provide a balance of incentives; |
• | the design of the incentive measures is structured to align management’s actions with the interests of the investors; |
• | incentive payments are dependent on the Company’s performance measured against pre-established targets and goals and/or compared to the performance of companies in the Peer Group; |
• | the range and sensitivity of potential payouts relative to target performance are reasonable; |
• | the Committee imposes checks and balances on the payment of compensation discussed herein; |
• | detailed processes establish the Company’s financial performance measures under its incentive plans; and |
• | incentive targets are designed to be challenging, yet achievable, to mitigate the potential for excessive risk-taking behaviors. |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
NAME AND PRINCIPAL POSITION | YEAR | SALARY($) | BONUS($) | NON-EQUITY INCENTIVE PLAN COMPENSATION ($) | CHANGE IN PENSION VALUE AND NONQUALIFIED DEFERRED COMPENSATION EARNINGS ($)(1) | ALL OTHER COMPENSATION ($) | TOTAL ($) | ||||||||||||
A | B | C | D | E | F | G | H | ||||||||||||
William G. Fontenot, | 2019 | $ | 639,616 | $ | 345,000 | $ | 1,171,839 | $ | 1,402,994 | $ | 17,293 | $ | 3,576,742 | ||||||
President & CEO | 2018 | $ | 552,885 | $ | 0 | $ | 819,412 | $ | 0 | $ | 12,921 | $ | 1,385,218 | ||||||
2017 | $ | 362,904 | $ | 0 | $ | 475,460 | $ | 2,552,193 | $ | 13,681 | $ | 3,404,238 | |||||||
Kazi K. Hasan, | 2019 | $ | 400,008 | $ | 0 | $ | 257,005 | $ | 0 | $ | 31,324 | $ | 688,337 | ||||||
CFO | 2018 | $ | 46,155 | $ | 0 | $ | 0 | $ | 0 | $ | 942 | $ | 47,097 | ||||||
Julia E. Callis, (2) | 2019 | $ | 282,923 | $ | 67,500 | $ | 479,222 | $ | 544,561 | $ | 13,762 | $ | 1,387,968 | ||||||
Chief Compliance Officer & General Counsel | 2018 | $ | 268,846 | $ | 0 | $ | 486,712 | $ | 0 | $ | 13,616 | $ | 769,174 | ||||||
2017 | $ | 253,462 | $ | 0 | $ | 285,550 | $ | 439,225 | $ | 20,292 | $ | 998,529 | |||||||
Anthony L. Bunting, | 2019 | $ | 292,523 | $ | 61,500 | $ | 465,619 | $ | 598,968 | $ | 21,262 | $ | 1,439,872 | ||||||
Chief Transformation Officer | 2018 | $ | 245,389 | $ | 0 | $ | 452,027 | $ | 886,982 | $ | 18,806 | $ | 1,603,204 | ||||||
2017 | $ | 237,431 | $ | 0 | $ | 293,520 | $ | 562,686 | $ | 11,712 | $ | 1,105,349 | |||||||
Robert R. LaBorde, Jr., | 2019 | $ | 261,539 | $ | 60,000 | $ | 363,152 | $ | 519,366 | $ | 12,703 | $ | 1,216,760 | ||||||
Chief Operations Officer | 2018 | $ | 239,231 | $ | 0 | $ | 356,506 | $ | 0 | $ | 28,490 | $ | 624,227 | ||||||
2017 | $ | 229,385 | $ | 0 | $ | 197,844 | $ | 374,676 | $ | 13,705 | $ | 815,610 | |||||||
Justin S. Hilton, | 2019 | $ | 253,769 | $ | 107,500 | $ | 269,359 | $ | 381,155 | $ | 7,033 | $ | 1,018,816 | ||||||
President - Cleco Power |
(1) | Amounts in this column include the change in pension value year over year. For 2019, this amount includes the change in pension value from 2018 to 2019. Negative changes in the pension value year over year are reported as $0. |
• | Column C, “Salary;” Column D, “Bonus;” Column E, “Non-Equity Incentive Plan Compensation;” and Column G, “All Other Compensation” represent cash compensation earned by the named executive in 2019, 2018, or 2017. |
• | The amounts shown in Column F, “Change in Pension Value and Nonqualified Deferred Compensation Earnings,” represent changes in the actuarial value of accrued benefits during 2019, 2018, and 2017 under the Pension Plan and SERP, as applicable. Actuarial value computations are based on assumptions discussed in Part II, Item 8, “Financial Statements and Supplementary Data — Notes to the Financial Statements — Note 10 — Pension Plan and Employee Benefits.” The 2019 changes shown in Column F are due in part to the actuarial impact from a decrease in the discount rate used to calculate future benefits under the Pension Plan and SERP. Negative changes, if any, are reported as zero. This compensation will be payable to the named executive in future years, generally as post-employment retirement payments. |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
• | Contributions by Cleco under the 401(k) Plan on behalf of the named executive officers; |
• | Term life insurance premiums paid for the benefit of the named executive officers; |
• | Spousal travel; |
• | For 2019, for Mr. Hasan, moving expenses reimbursed by the Company; and |
• | Federal Insurance Contributions Act (FICA) tax due currently and paid by the Company on the annual increase in the named executive officers’ future SERP benefits. |
MR. FONTENOT | MR. HASAN | MS. CALLIS | MR. BUNTING | MR. LABORDE | MR. HILTON | |||||||||||||
Cleco Contributions to 401(k) Plan | $ | 11,200 | $ | 16,000 | $ | 12,918 | $ | 9,554 | $ | 12,141 | $ | 6,515 | ||||||
Taxable Group Term Life Insurance | 830 | 158 | 350 | 1,382 | 350 | 350 | ||||||||||||
Spousal Travel | 5,263 | 145 | 0 | 0 | 0 | 168 | ||||||||||||
Moving Expenses | 0 | 15,021 | 0 | 0 | 0 | 0 | ||||||||||||
FICA Tax on SERP | 0 | 0 | 494 | 10,325 | 211 | 0 | ||||||||||||
Total Other Compensation | $ | 17,293 | $ | 31,324 | $ | 13,762 | $ | 21,261 | $ | 12,702 | $ | 7,033 |
NAME | GRANT DATE | ESTIMATED FUTURE PAYMENTS UNDER NON-EQUITY INCENTIVE PLAN AWARDS (STIP) | ESTIMATED FUTURE PAYMENTS UNDER NON-EQUITY INCENTIVE PLAN AWARDS (2019-2021 LTIP GRANT) | |||||||||||||||||
THRESHOLD ($) | TARGET ($) | MAXIMUM ($) | THRESHOLD ($) | TARGET ($) | MAXIMUM ($) | |||||||||||||||
A | B | C | D | E | F | G | H | |||||||||||||
Mr. Fontenot | 01/01/19 | $ | 0 | $ | 650,000 | $ | 1,300,000 | $ | 0 | $ | 1,500,000 | $ | 3,000,000 | |||||||
Mr. Hasan | 01/01/19 | $ | 0 | $ | 200,000 | $ | 400,000 | $ | 0 | $ | 440,000 | $ | 880,000 | |||||||
Ms. Callis | 01/01/19 | $ | 0 | $ | 142,500 | $ | 285,000 | $ | 0 | $ | 313,500 | $ | 627,000 | |||||||
Mr. Bunting | 01/01/19 | $ | 0 | $ | 150,000 | $ | 300,000 | $ | 0 | $ | 330,000 | $ | 660,000 | |||||||
Mr. LaBorde | 01/01/19 | $ | 0 | $ | 132,500 | $ | 265,000 | $ | 0 | $ | 291,500 | $ | 583,000 | |||||||
Mr. Hilton | 01/01/19 | $ | 0 | $ | 130,000 | $ | 260,000 | $ | 0 | $ | 286,000 | $ | 572,000 |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
NAME | PLAN NAME (s) | NUMBER OF YEARS OF CREDITED SERVICE (#) | PRESENT VALUE OF ACCUMULATED BENEFIT ($) | PAYMENTS DURING LAST FISCAL YEAR ($) | ||||
Mr. Fontenot | Cleco Corporate Holdings LLC Pension Plan | 33 | $ | 2,016,802 | $ | 0 | ||
Cleco Corporation SERP | 33 | $ | 4,563,348 | $ | 0 | |||
Mr. Hasan(1) | Cleco Corporate Holdings LLC Pension Plan | 0 | $ | 0 | $ | 0 | ||
Cleco Corporation SERP | 0 | $ | 0 | $ | 0 | |||
Ms. Callis(2) | Cleco Corporate Holdings LLC Pension Plan | 0 | $ | 0 | $ | 0 | ||
Cleco Corporation SERP | 12 | $ | 2,229,935 | $ | 0 | |||
Mr. Bunting | Cleco Corporate Holdings LLC Pension Plan | 27 | $ | 1,848,982 | $ | 0 | ||
Cleco Corporation SERP | 27 | $ | 3,345,583 | $ | 0 | |||
Mr. LaBorde(3) | Cleco Corporate Holdings LLC Pension Plan | 16 | $ | 609,978 | $ | 0 | ||
Cleco Corporation SERP | 11 | $ | 1,758,151 | $ | 0 | |||
Mr. Hilton(4) | Cleco Corporate Holdings LLC Pension Plan | 30 | $ | 1,438,362 | $ | 0 | ||
Cleco Corporation SERP | 0 | $ | 0 | $ | 0 |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
ESTIMATED PAYMENTS AT 55 (OR ACTUAL ATTAINED AGE IF GREATER THAN 55) | |||||||||
PENSION | SERP | TOTAL | |||||||
Mr. Fontenot | $ | 110,379 | $ | 109,621 | $ | 220,000 | |||
Mr. Hasan | $ | 0 | $ | 0 | $ | 0 | |||
Ms. Callis | $ | 0 | $ | 112,036 | $ | 112,036 | |||
Mr. Bunting | $ | 97,134 | $ | 112,866 | $ | 210,000 | |||
Mr. LaBorde | $ | 40,020 | $ | 61,478 | $ | 101,498 | |||
Mr. Hilton | $ | 93,386 | $ | 0 | $ | 93,386 |
NAME | EXECUTIVE OFFICER CONTRIBUTIONS IN 2019 ($)(1) | COMPANY CONTRIBUTIONS IN 2019 ($) | AGGREGATE EARNINGS IN 2019 ($) (2) | AGGREGATE WITHDRAWALS/ DISTRIBUTIONS IN 2019 ($) | AGGREGATE BALANCE AT DECEMBER 31, 2019 ($)(3) | ||||||||||
A | B | C | D | E | F | ||||||||||
Mr. Fontenot | $ | 239,481 | $ | 0 | $ | 251,007 | $ | 0 | $ | 1,625,061 | |||||
Mr. Hasan | $ | 10,000 | $ | 0 | $ | 877 | $ | 0 | $ | 10,877 | |||||
Ms. Callis | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | |||||
Mr. Bunting | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | |||||
Mr. LaBorde | $ | 37,727 | $ | 0 | $ | 84,215 | $ | 0 | $ | 523,513 | |||||
Mr. Hilton | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
• | Any “person” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act), other than the Company or an Affiliate or any “person” who on the effective date of this Plan is a director, officer, or is the “beneficial owner” (as determined in Rule 13d-3 promulgated under the Exchange Act) of 20% or more of the combined voting power of outstanding securities of the Company or an employee stock ownership plan (within the meaning of Code Section 4975(e)(7)) sponsored by the Company or an Affiliate, is or becomes the “beneficial owner” (as determined in Rule 13d-3 promulgated under the Exchange Act) of 80% or more of the combined voting power of the outstanding securities of the Company; |
• | The Company is party to a merger or consolidation with another entity and, as a result of such transaction, 80% or more of the combined voting power of outstanding securities of the Company or its successor in the merger (or a direct or |
• | The Company sells, leases, or otherwise disposes of, in one transaction or in a series of related transactions, all or substantially all of its assets; |
• | The owners of the Company approve a plan of dissolution or liquidation; or |
• | All or substantially all of the assets or the issued and outstanding membership interests of Cleco Power LLC is sold, leased or otherwise disposed of in one or a series of related transactions to a person, other than the Company or an Affiliate. |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
Mr. Fontenot | |||||||||||||||||||||
VALUE OF PAYMENT/BENEFIT | TERMINATION BY EXECUTIVE | DISABILITY | DEATH | RETIREMENT | CONSTRUCTIVE TERMINATION | TERMINATION FOR CAUSE | CHANGE IN CONTROL | ||||||||||||||
Cash Severance | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 650,000 | $ | 0 | $ | 1,845,349 | |||||||
Annual Cash Bonus | 0 | 821,907 | 821,907 | 821,907 | 821,907 | 0 | 0 | ||||||||||||||
Long-Term Incentive | 0 | 1,683,265 | 1,683,265 | 1,683,265 | 1,683,265 | 0 | 3,099,932 | ||||||||||||||
Cash Payment in Lieu of Outplacement Services | 0 | 0 | 0 | 0 | 50,000 | 0 | 0 | ||||||||||||||
Present Value of Incremental SERP Payments(1) | 0 | 886,726 | 3,239,523 | 0 | 0 | (2,267,297 | ) | 1,944,376 | |||||||||||||
SERP Supplemental Death Benefit | 0 | 0 | 1,661,540 | 0 | 0 | 0 | 0 | ||||||||||||||
Purchase of Principal Residence/Relocation | 0 | 0 | 0 | 0 | 0 | 0 | 83,500 | ||||||||||||||
COBRA Medical Coverage | 0 | 0 | 0 | 0 | 34,990 | 0 | 46,653 | ||||||||||||||
Total Incremental Value | $ | 0 | $ | 3,391,898 | $ | 7,406,235 | $ | 2,505,172 | $ | 3,240,162 | $ | (2,267,297 | ) | $ | 7,019,810 |
Mr. Hasan | |||||||||||||||||||||
VALUE OF PAYMENT/BENEFIT | TERMINATION BY EXECUTIVE | DISABILITY | DEATH | RETIREMENT (1) | CONSTRUCTIVE TERMINATION | TERMINATION FOR CAUSE | CHANGE IN CONTROL | ||||||||||||||
Cash Severance | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 400,000 | $ | 0 | $ | 800,000 | |||||||
Annual Cash Bonus | 0 | 257,005 | 257,005 | 0 | 257,005 | 0 | 0 | ||||||||||||||
Long-Term Incentive | 0 | 146,667 | 146,667 | 0 | 146,667 | 0 | 440,000 | ||||||||||||||
Cash Payment in Lieu of Outplacement Services | 0 | 0 | 0 | 0 | 25,000 | 0 | 0 | ||||||||||||||
Present Value of Incremental SERP Payments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||
SERP Supplemental Death Benefit | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||
Purchase of Principal Residence/Relocation Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 83,500 | ||||||||||||||
COBRA Medical Coverage | 0 | 0 | 0 | 0 | 34,990 | 0 | 46,653 | ||||||||||||||
Total Incremental Value | $ | 0 | $ | 403,672 | $ | 403,672 | $ | 0 | $ | 863,662 | $ | 0 | $ | 1,370,153 |
Ms. Callis (1) | |||||||||||||||||||||
VALUE OF PAYMENT/BENEFIT | TERMINATION BY EXECUTIVE | DISABILITY | DEATH | RETIREMENT (2) | CONSTRUCTIVE TERMINATION | TERMINATION FOR CAUSE | CHANGE IN CONTROL | ||||||||||||||
Cash Severance | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 285,000 | $ | 0 | $ | 830,461 | |||||||
Annual Cash Bonus | 0 | 181,779 | 181,779 | 0 | 181,779 | 0 | 0 | ||||||||||||||
Long-Term Incentive | 0 | 599,943 | 599,943 | 0 | 599,943 | 0 | 907,943 | ||||||||||||||
Cash Payment in Lieu of Outplacement Services | 0 | 0 | 0 | 0 | 25,000 | 0 | 0 | ||||||||||||||
Present Value of Incremental SERP Payments(3) | 0 | 1,473,252 | 976,101 | 0 | 0 | (2,155,924 | ) | 414,080 | |||||||||||||
SERP Supplemental Death Benefit | 0 | 0 | 734,713 | 0 | 0 | 0 | 0 | ||||||||||||||
Purchase of Principal Residence/Relocation Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 83,500 | ||||||||||||||
COBRA Medical Coverage | 0 | 0 | 0 | 0 | 20,322 | 0 | 27,096 | ||||||||||||||
Total Incremental Value | $ | 0 | $ | 2,254,974 | $ | 2,492,536 | $ | 0 | $ | 1,112,044 | $ | (2,155,924 | ) | $ | 2,263,080 |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
Mr. Bunting | |||||||||||||||||||||
VALUE OF PAYMENT/BENEFIT | TERMINATION BY EXECUTIVE | DISABILITY | DEATH | RETIREMENT | CONSTRUCTIVE TERMINATION | TERMINATION FOR CAUSE | CHANGE IN CONTROL | ||||||||||||||
Cash Severance | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 300,000 | $ | 0 | $ | 852,985 | |||||||
Annual Cash Bonus | 0 | 187,947 | 187,947 | 187,947 | 187,947 | 0 | 0 | ||||||||||||||
Long-Term Incentive | 0 | 568,072 | 568,072 | 568,072 | 568,072 | 0 | 878,272 | ||||||||||||||
Cash Payment in Lieu of Outplacement Services | 0 | 0 | 0 | 0 | 25,000 | 0 | 0 | ||||||||||||||
Present Value of Incremental SERP Payments(1) | 0 | 474,070 | 1,699,756 | 0 | 0 | (2,315,525 | ) | 913,669 | |||||||||||||
SERP Supplemental Death Benefit | 0 | 0 | 760,155 | 0 | 0 | 0 | 0 | ||||||||||||||
Purchase of Principal Residence/Relocation Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 83,500 | ||||||||||||||
COBRA Medical Coverage | 0 | 0 | 0 | 0 | 22,207 | 0 | 29,610 | ||||||||||||||
Total Incremental Value | $ | 0 | $ | 1,230,089 | $ | 3,215,930 | $ | 756,019 | $ | 1,103,226 | $ | (2,315,525 | ) | $ | 2,758,036 |
Mr. LaBorde | |||||||||||||||||||||
VALUE OF PAYMENT/BENEFIT | TERMINATION BY EXECUTIVE | DISABILITY | DEATH | RETIREMENT (1) | CONSTRUCTIVE TERMINATION | TERMINATION FOR CAUSE | CHANGE IN CONTROL | ||||||||||||||
Cash Severance | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 265,000 | $ | 0 | $ | 798,475 | |||||||
Annual Cash Bonus | 0 | 168,038 | 168,038 | 0 | 168,038 | 0 | 0 | ||||||||||||||
Long-Term Incentive | 0 | 420,281 | 420,281 | 0 | 420,281 | 0 | 678,614 | ||||||||||||||
Cash Payment in Lieu of Outplacement Services | 0 | 0 | 0 | 0 | 25,000 | 0 | 0 | ||||||||||||||
Present Value of Incremental SERP Payments(2) | 0 | 1,413,217 | 1,287,704 | 0 | 0 | (1,168,675 | ) | 381,752 | |||||||||||||
SERP Supplemental Death Benefit | 0 | 0 | 652,154 | 0 | 0 | 0 | 0 | ||||||||||||||
Purchase of Principal Residence/Relocation Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 83,500 | ||||||||||||||
COBRA Medical Coverage | 0 | 0 | 0 | 0 | 30,691 | 0 | 40,922 | ||||||||||||||
Total Incremental Value | $ | 0 | $ | 2,001,536 | $ | 2,528,177 | $ | 0 | $ | 909,010 | $ | (1,168,675 | ) | $ | 1,983,263 |
Mr. Hilton | |||||||||||||||||||||
VALUE OF PAYMENT/BENEFIT | TERMINATION BY EXECUTIVE | DISABILITY | DEATH | RETIREMENT (1) | CONSTRUCTIVE TERMINATION | TERMINATION FOR CAUSE | CHANGE IN CONTROL | ||||||||||||||
Cash Severance | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 260,000 | $ | 0 | $ | 732,925 | |||||||
Annual Cash Bonus | 0 | 142,111 | 142,111 | 0 | 142,111 | 0 | 0 | ||||||||||||||
Long-Term Incentive | 0 | 308,581 | 308,581 | 0 | 308,581 | 0 | 542,248 | ||||||||||||||
Cash Payment in Lieu of Outplacement Services | 0 | 0 | 0 | 0 | 25,000 | 0 | 0 | ||||||||||||||
Present Value of Incremental SERP Payments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||
SERP Supplemental Death Benefit | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||
Purchase of Principal Residence/Relocation Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 83,500 | ||||||||||||||
COBRA Medical Coverage | 0 | 0 | 0 | 0 | 30,691 | 0 | 40,922 | ||||||||||||||
Total Incremental Value | $ | 0 | $ | 450,692 | $ | 450,692 | $ | 0 | $ | 766,383 | $ | 0 | $ | 1,399,595 |
NAME (1) | FEES EARNED OR PAID IN CASH AND/ OR STOCK ($) | TOTAL ($) | ||||
A | B | C | ||||
Rick Gallot | $ | 146,676 | $ | 146,676 | ||
Randy Gilchrist | $ | 146,676 | $ | 146,676 | ||
Peggy Scott | $ | 226,683 | $ | 226,683 | ||
Melissa Stark | $ | 3,750 | $ | 3,750 | ||
Bruce Wainer | $ | 146,676 | $ | 146,676 |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE |
ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES |
2019 | 2018 | ||||||
Audit fees | $ | 3,740,200 | $ | 1,801,292 | |||
Audit related fees | 707,300 | 1,376,880 | |||||
Tax fees | 570,000 | 383,112 | |||||
Other fees | 21,700 | 4,725 | |||||
Total | $ | 5,039,200 | $ | 3,566,009 |
2019 | 2018 | ||||||
Audit fees | $ | 2,302,225 | $ | 1,800,442 | |||
Audit related fees | 608,278 | 1,376,597 | |||||
Tax fees | 490,200 | 382,927 | |||||
Other fees | 18,662 | 4,723 | |||||
Total | $ | 3,419,365 | $ | 3,564,689 |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
PART IV |
ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES | ||
FORM 10-K ANNUAL REPORT | ||
Financial Statement Schedules other than those shown in the above index are omitted because they are either not required or are not applicable or the required information is shown in the Consolidated Financial Statements and Notes thereto | ||
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
EXHIBITS | |||||
CLECO | SEC FILE OR REGISTRATION NUMBER | REGISTRATION STATEMENT OR REPORT | EXHIBIT NUMBER | ||
2(a) | 1-15759 | 8-K(10/20/14) | 2.1 | ||
2(b) | 1-15759 | 10-Q(3/18) | 2.1 | ||
2(c) | 1-15759 | 8-K(2/8/19) | 10.6 | ||
3(a) | 1-15759 | 8-K(4/19/16) | 3.1 | ||
3(b) | 1-15759 | 8-K(4/19/16) | 3.2 | ||
4(a)(1) | 1-05663 | 10-K(1997) | 4(a)(1) | ||
4(a)(2) | Eighteenth Supplemental Indenture dated as of December 1, 1982, to Exhibit 4(a)(1) | 1-05663 | 10-K(1993) | 4(a)(8) | |
4(a)(3) | Nineteenth Supplemental Indenture dated as of January 1, 1983, to Exhibit 4(a)(1) | 1-05663 | 10-K(1993) | 4(a)(9) | |
4(a)(4) | Twenty-Sixth Supplemental Indenture dated as of March 15, 1990, to Exhibit 4(a)(1) | 1-05663 | 8-K(3/15/90) | 4(a)(27) | |
4(b)(1) | Indenture between Cleco Power (as successor) and Bankers Trust Company, as Trustee, dated as of October 1, 1988 | 33-24896 | S-3(10/11/88) | 4(b) | |
4(b)(2) | 333-02895 | S-3(4/29/96) | 4(a)(2) | ||
4(b)(3) | 333-52540 | S-3/A(1/26/01) | 4(a)(2) | ||
4(b)(4) | 333-52540 | S-3/A(1/26/01) | 4(a)(3) | ||
4(b)(5) | 1-05663 | 8-K(7/6/05) | 4.1 | ||
4(b)(6) | 1-05663 | 8-K(11/28/05) | 4.1 | ||
4(b)(7) | 1-05663 | 8-K(6/2/08) | 4.1 | ||
4(b)(8) | 1-05663 | 8-K(11/12/09) | 4.1 | ||
4(b)(9) | 1-05663 | 8-K(11/15/10) | 4.1 | ||
4(c)(1) | 1-15759 | 8-K(5/17/16) | 4.1 | ||
4(c)(2) | 1-15759 | 8-K(5/17/16) | 4.2 | ||
4(c)(3) | 1-15759 | 8-K(5/17/16) | 4.3 | ||
4(c)(4) | 1-15759 | 8-K(5/24/16) | 4.2 | ||
4(d)(1) | 1-15759 | 8-K(9/12/19) | 4.1 | ||
4(d)(2) | 1-15759 | 8-K(9/12/19) | 4.2 | ||
4(d)(3) | 1-15759 | 8-K(9/12/19) | 4.3 | ||
4(e) | 1-05663 | 10-Q(9/99) | 4(c) | ||
** | 10(a)(1) | 1-15759 | 10-K(2008) | 10(f)(4) | |
** | 10(a)(2) | 1-15759 | 8-K(12/9/08) | 10.3 | |
** | 10(a)(3) | 1-15759 | 10-Q(9/11) | 10.2 | |
** | 10(a)(4) | 1-15759 | 10-K(2014) | 10(c)(10) | |
** | 10(a)(5) | 1-15759 | 8-K(12/21/17) | 10.2 | |
** | 10(a)(6) | 1-15759 | 10-K(2003) | 10(e)(1)(c) | |
** | 10(a)(7) | 1-15759 | 10-K(2002) | 10(z)(1) | |
** | 10(a)(8) | 1-15759 | 10-K(2004) | 10(v)(3) | |
** | 10(b)(1) | 1-15759 | 10-Q(9/11) | 10.1 | |
** | 10(b)(2) | 1-15759 | 8-K(10/24/14) | 10.1 | |
** | 10(b)(3) | 1-15759 | 8-K(12/23/14) | 10.1 | |
** | 10(b)(4) | 1-15759 | 10-Q(6/15) | 10.1 | |
** | 10(b)(5) | 1-15759 | 8-K(3/28/17) | 10.1 | |
** | 10(b)(6) | 1-15759 | 8-K(4/27/11) | 10.1 | |
** | 10(b)(7) | 1-15759 | 8-K(12/21/17) | 10.1 | |
** | 10(b)(8) | 1-15759 | 8-K(12/21/17) | 10.3 | |
** | 10(c)(1) | 333-59696 | S-8(4/27/01) | 4.3 | |
** | 10(c)(2) | 1-15759 | 10-K(2008) | 10(n)(5) | |
** | 10(c)(3) | 1-15759 | 8-K(12/9/08) | 10.2 | |
** | 10(c)(4) | 1-15759 | 10-K(2003) | 10(u) | |
** | 10(c)(5) | 1-15759 | 10-Q(9/11) | 10.5 | |
** | 10(c)(6) | 1-15759 | 8-K(7/5/16) | 10.1 |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
EXHIBITS | |||||
CLECO | SEC FILE OR REGISTRATION NUMBER | REGISTRATION STATEMENT OR REPORT | EXHIBIT NUMBER | ||
10(d)(1) | 1-05663 | 8-K(05/09/12) | 10.1 | ||
10(d)(2) | 1-15759 | 8-K(11/13/15) | 10.1 | ||
10(d)(3) | 1-05663 | 8-K(12/21/16) | 10.1 | ||
10(d)(4) | 1-15759 | 8-K(12/21/17) | 10.1 | ||
10(d)(5) | 1-15759 | 8-K(4/19/16) | 10.1 | ||
10(d)(6) | 1-15759 | 8-K(7/1/16) | 10.1 | ||
10(d)(7) | 1-15759 | 8-K(2/8/19) | 10.2 | ||
10(d)(8) | 1-15759 | 8-K(2/8/19) | 10.3 | ||
10(d)(9) | 1-15759 | 8-K(2/8/19) | 10.4 | ||
10(d)(10) | 1-15759 | 8-K(2/8/19) | 10.5 | ||
10(d)(11) | 1-15759 | 8-K(2/8/19) | 10.7 | ||
10(d)(12) | 1-15759 | 8-K(2/8/19) | 10.8 | ||
10(e)(1) | 1-15759 | 10-Q(3/17) | 10.3 | ||
10(e)(2) | 1-15759 | 10-Q(3/17) | 10.4 | ||
10(e)(3) | 1-15759 | 10-Q(3/17) | 10.5 | ||
* | 10(f) | ||||
10(g) | 1-15759 | 10-Q(3/17) | 10.6 | ||
* | 21 | ||||
* | 24(a) | ||||
* | 31.1 | ||||
* | 31.2 | ||||
* | 32.1 | ||||
* | 32.2 | ||||
* | 101.INS | XBRL Instance Document | |||
* | 101.SCH | XBRL Taxonomy Extension Schema | |||
* | 101.CAL | XBRL Taxonomy Extension Calculation Linkbase | |||
* | 101.DEF | XBRL Taxonomy Extension Definition Linkbase | |||
* | 101.LAB | XBRL Taxonomy Extension Label Linkbase | |||
* | 101.PRE | XBRL Taxonomy Extension Presentation Linkbase |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
CLECO POWER | SEC FILE OR REGISTRATION NUMBER | REGISTRATION STATEMENT OR REPORT | EXHIBIT NUMBER | ||
3(a) | 1-05663 | 8-K(4/19/16) | 3.3 | ||
3(b) | 1-05663 | 8-K(4/19/16) | 3.4 | ||
4(a)(1) | 1-05663 | 10-K(1997) | 4(a)(1) | ||
4(a)(2) | Eighteenth Supplemental Indenture dated as of December 1, 1982, to Exhibit 4(a)(1) | 1-05663 | 10-K(1993) | 4(a)(8) | |
4(a)(3) | Nineteenth Supplemental Indenture dated as of January 1, 1983, to Exhibit 4(a)(1) | 1-05663 | 10-K(1993) | 4(a)(9) | |
4(a)(4) | Twenty-Sixth Supplemental Indenture dated as of March 15, 1990, to Exhibit 4(a)(1) | 1-05663 | 8-K(3/15/90) | 4(a)(27) | |
4(b)(1) | Indenture between the Company and Bankers Trust Company, as Trustee, dated as of October 1, 1988 | 33-24896 | S-3(10/11/88) | 4(b) | |
4(b)(2) | 333-02895 | S-3(4/29/96) | 4(a)(2) | ||
4(b)(3) | 333-52540 | S-3/A(1/26/01) | 4(a)(2) | ||
4(b)(4) | 333-52540 | S-3/A(1/26/01) | 4(a)(3) | ||
4(b)(5) | 1-05663 | 8-K(7/6/05) | 4.1 | ||
4(b)(6) | 1-05663 | 8-K(11/28/05) | 4.1 | ||
4(b)(7) | 1-05663 | 8-K(6/2/08) | 4.1 | ||
4(b)(8) | 1-05663 | 8-K(11/12/09) | 4.1 | ||
4(b)(9) | 1-05663 | 8-K(11/15/10) | 4.1 | ||
4(c) | 333-71643-01 | 10-Q(9/99) | 4(c) | ||
4(d) | 1-05663 | 8-K(11/27/06) | 4.1 | ||
4(e) | 1-05663 | 8-K(11/20/07) | 4.1 | ||
4(f) | 1-05663 | 10-Q(3/10) | 4.1 | ||
4(g) | 1-05663 | 10-Q(3/10) | 4.2 | ||
** | 10(a) | Supplemental Executive Retirement Plan | 1-05663 | 10-K(1992) | 10(o)(1) |
10(b)(1) | 1-05663 | 8-K(12/19/11) | 10.1 | ||
10(b)(2) | 1-05663 | 8-K(05/09/12) | 10.1 | ||
10(b)(3) | 1-05663 | 8-K(11/13/15) | 10.1 | ||
10(b)(4) | 1-05663 | 8-K(12/21/16) | 10.1 | ||
10(b)(5) | 1-05663 | 8-K(12/21/17) | 10.1 | ||
10(b)(6) | 1-05663 | 8-K(4/19/16) | 10.2 | ||
10(c)(1) | 1-05663 | 8-K(3/6/08) | 10.1 | ||
10(c)(2) | 1-05663 | 8-K(3/6/08) | 10.2 | ||
10(c)(3) | 1-05663 | 8-K(3/6/08) | 10.3 | ||
10(d) | 1-05663 | 8-K(4/19/16) | 10.4 | ||
** | 10(e)(1) | 1-05663 | 10-K(2016) | 10(j) | |
** | 10(e)(2) | 1-05663 | 8-K(3/28/17) | 10.1 | |
** | 10(e)(3) | 1-05663 | 8-K(12/21/17) | 10.1 | |
** | 10(e)(4) | 1-05663 | 8-K(12/21/17) | 10.3 | |
* | 10(f) | ||||
* | 24(a) | ||||
* | 31.3 | ||||
* | 31.4 | ||||
* | 32.3 | ||||
* | 32.4 | ||||
* | 101.INS | XBRL Instance Document | |||
* | 101.SCH | XBRL Taxonomy Extension Schema | |||
* | 101.CAL | XBRL Taxonomy Extension Calculation Linkbase | |||
* | 101.DEF | XBRL Taxonomy Extension Definition Linkbase | |||
* | 101.LAB | XBRL Taxonomy Extension Label Linkbase | |||
* | 101.PRE | XBRL Taxonomy Extension Presentation Linkbase |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
ITEM 16. FORM 10-K SUMMARY |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
CLECO HOLDINGS (Parent Company Only) | SCHEDULE I |
Condensed Statements of Income | |||||||||||
FOR THE YEAR ENDED DEC. 31, | |||||||||||
(THOUSANDS) | 2019 | 2018 | 2017 | ||||||||
Operating expenses | |||||||||||
Administrative and general | $ | 3,263 | $ | 1,269 | $ | 602 | |||||
Merger transaction costs | 7,803 | 19,514 | 5,152 | ||||||||
Other operating expense | 130 | 318 | 260 | ||||||||
Total operating expenses | 11,196 | 21,101 | 6,014 | ||||||||
Operating loss | (11,196 | ) | (21,101 | ) | (6,014 | ) | |||||
Equity income from subsidiaries, net of tax | 205,187 | 149,543 | 170,706 | ||||||||
Interest, net | (70,252 | ) | (54,635 | ) | (53,684 | ) | |||||
Other income (expense), net | 8,568 | (1,687 | ) | 3,978 | |||||||
Income before income taxes | 132,307 | 72,120 | 114,986 | ||||||||
Federal and state income tax benefit | (20,358 | ) | (22,317 | ) | (23,094 | ) | |||||
Net income | $ | 152,665 | $ | 94,437 | $ | 138,080 | |||||
The accompanying notes are an integral part of the condensed financial statements. |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
CLECO HOLDINGS (Parent Company Only) | SCHEDULE I |
Condensed Statements of Comprehensive Income | |||||||||||
FOR THE YEAR ENDED DEC. 31, | |||||||||||
(THOUSANDS) | 2019 | 2018 | 2017 | ||||||||
Net income | $ | 152,665 | $ | 94,437 | $ | 138,080 | |||||
Other comprehensive (loss) income, net of tax | |||||||||||
Postretirement benefits (loss) gain (net of tax benefit of $6,808, tax expense of $1,868, and tax benefit of $2,764, respectively) | (19,299 | ) | 5,296 | (4,421 | ) | ||||||
Total other comprehensive (loss) income, net of tax | (19,299 | ) | 5,296 | (4,421 | ) | ||||||
Comprehensive income, net of tax | $ | 133,366 | $ | 99,733 | $ | 133,659 | |||||
The accompanying notes are an integral part of the condensed financial statements. |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
CLECO HOLDINGS (Parent Company Only) | SCHEDULE I |
Condensed Balance Sheets | |||||||
AT DEC. 31, | |||||||
(THOUSANDS) | 2019 | 2018 | |||||
Assets | |||||||
Current assets | |||||||
Cash and cash equivalents | $ | 15,008 | $ | 76,938 | |||
Accounts receivable - affiliate | 14,231 | 8,374 | |||||
Other accounts receivable | 2,650 | 2,755 | |||||
Taxes receivable, net | 6,726 | 7,046 | |||||
Cash surrender value of trust-owned life insurance policies | 68,523 | 59,894 | |||||
Total current assets | 107,138 | 155,007 | |||||
Equity investment in subsidiaries | 4,150,953 | 3,247,809 | |||||
Accumulated deferred federal and state income taxes, net | 127,655 | 101,015 | |||||
Other deferred charges | 1,831 | 4,532 | |||||
Total assets | $ | 4,387,577 | $ | 3,508,363 | |||
Liabilities and member's equity | |||||||
Liabilities | |||||||
Current liabilities | |||||||
Long-term debt due within one year | $ | 63,300 | $ | — | |||
Accounts payable | 1,448 | 1,322 | |||||
Accounts payable - affiliate | 47,184 | 18,047 | |||||
Interest accrued | 11,005 | 7,576 | |||||
Deferred compensation | 12,115 | 10,753 | |||||
Other current liabilities | 274 | 273 | |||||
Total current liabilities | 135,326 | 37,971 | |||||
Postretirement benefit obligations | 4,481 | 3,894 | |||||
Long-term debt, net | 1,604,764 | 1,341,758 | |||||
Total liabilities | 1,744,571 | 1,383,623 | |||||
Commitments and contingencies (Note 6) | |||||||
Member's equity | 2,643,006 | 2,124,740 | |||||
Total liabilities and member's equity | $ | 4,387,577 | $ | 3,508,363 | |||
The accompanying notes are an integral part of the condensed financial statements. |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
CLECO HOLDINGS (Parent Company Only) | SCHEDULE I |
Condensed Statements of Cash Flows | |||||||||||
FOR THE YEAR ENDED DEC. 31, | |||||||||||
(THOUSANDS) | 2019 | 2018 | 2017 | ||||||||
Operating activities | |||||||||||
Net cash provided by operating activities | $ | 189,644 | $ | 97,614 | $ | 124,817 | |||||
Investing activities | |||||||||||
Return of equity investment in tax credit fund | 1,625 | 2,775 | 7,502 | ||||||||
Contribution to subsidiary | (962,170 | ) | (1,250 | ) | — | ||||||
Other investing | — | 442 | (630 | ) | |||||||
Net cash (used in) provided by investing activities | (960,545 | ) | 1,967 | 6,872 | |||||||
Financing activities | |||||||||||
Draws on credit facility | 75,000 | — | 73,000 | ||||||||
Payments on credit facility | (75,000 | ) | — | (73,000 | ) | ||||||
Issuance of long-term debt | 700,000 | — | — | ||||||||
Repayment of long-term debt | (370,000 | ) | — | — | |||||||
Payment of financing costs | (5,929 | ) | (25 | ) | (269 | ) | |||||
Contribution from member | 384,900 | — | — | ||||||||
Distributions to member | — | (71,350 | ) | (84,065 | ) | ||||||
Net cash provided by (used in) financing activities | 708,971 | (71,375 | ) | (84,334 | ) | ||||||
Net (decrease) increase in cash and cash equivalents | (61,930 | ) | 28,206 | 47,355 | |||||||
Cash and cash equivalents at beginning of period | 76,938 | 48,732 | 1,377 | ||||||||
Cash and cash equivalents at end of period | $ | 15,008 | $ | 76,938 | $ | 48,732 | |||||
Supplementary cash flow information | |||||||||||
Interest paid, net of amount capitalized | $ | 56,768 | $ | 53,798 | $ | 52,026 | |||||
Income taxes (refunded) paid, net | $ | (19 | ) | $ | 2 | $ | (6 | ) | |||
Supplementary non-cash investing and financing activity | |||||||||||
Non-cash contribution to subsidiary, net of tax | $ | — | $ | 3,865 | $ | — | |||||
The accompanying notes are an integral part of the condensed financial statements. |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
CLECO HOLDINGS (Parent Company Only) Notes to the Condensed Financial Statements |
Note 1 — Summary of Significant Accounting Policies |
Note 2 — Debt |
(THOUSANDS) | ||||
For the year ending Dec. 31, | ||||
2019 | $ | 66,700 | ||
2020 | $ | 133,300 | ||
2021 | $ | 200,000 | ||
2022 | $ | 267,700 | ||
2023 | $ | 333,300 | ||
2024 | $ | 400,000 |
AMOUNTS PAYABLE UNDER LONG-TERM DEBT ARRANGEMENTS | (THOUSANDS) | ||
For the year ending Dec. 31, | |||
2020 | $ | — | |
2021 | $ | 330,000 | |
2022 | $ | — | |
2023 | $ | 165,000 | |
2024 | $ | — | |
Thereafter | $ | 1,185,000 |
Note 3 — Cash Distributions and Equity Contributions |
FOR THE YEAR ENDED DEC. 31, | |||||||||||
(THOUSANDS) | 2019 | 2018 | 2017 | ||||||||
Cleco Power | $ | 20,000 | $ | 121,400 | $ | 135,000 | |||||
Cleco Cajun | 205,000 | — | — | ||||||||
Perryville | — | 225 | 6,850 | ||||||||
Attala | — | 217 | 7,160 | ||||||||
Total | $ | 225,000 | $ | 121,842 | $ | 149,010 |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
Note 4 — Income Taxes |
FOR THE YEAR ENDED DEC. 31, | |||||||||||
(THOUSANDS) | 2019 | 2018 | 2017 | ||||||||
Federal and state income tax benefit | $ | (20,358 | ) | $ | (22,317 | ) | $ | (23,094 | ) | ||
Equity income from subsidiaries - federal and state income tax expense | $ | 63,523 | $ | 51,699 | $ | 30,173 |
Note 5 — Commitments and Contingencies |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
CLECO | SCHEDULE II | ||||||||||||||
VALUATION AND QUALIFYING ACCOUNTS | |||||||||||||||
(THOUSANDS) | BALANCE AT BEGINNING OF PERIOD | ADDITIONS | DEDUCTIONS | BALANCE AT END OF PERIOD (1) | |||||||||||
Allowance for Uncollectible Accounts | |||||||||||||||
Year Ended Dec. 31, 2019 | $ | 814 | $ | 2,323 | $ | 132 | $ | 3,005 | |||||||
Year Ended Dec. 31, 2018 | $ | 1,457 | $ | 977 | $ | 1,620 | $ | 814 | |||||||
Year Ended Dec. 31, 2017 | $ | 7,199 | $ | 4,179 | $ | 9,921 | $ | 1,457 | |||||||
(1) Deducted in the consolidated balance sheet |
(THOUSANDS) | BALANCE AT BEGINNING OF PERIOD | ADDITIONS | DEDUCTIONS | BALANCE AT END OF PERIOD(1) | |||||||||||
Unrestricted Storm Reserve | |||||||||||||||
Year Ended Dec. 31, 2019 | $ | 3,672 | $ | 4,000 | $ | 6,572 | $ | 1,100 | |||||||
Year Ended Dec. 31, 2018 | $ | 4,186 | $ | — | $ | 514 | $ | 3,672 | |||||||
Year Ended Dec. 31, 2017 | $ | 2,607 | $ | 4,000 | $ | 2,421 | $ | 4,186 | |||||||
Restricted Storm Reserve | |||||||||||||||
Year Ended Dec. 31, 2019 | $ | 15,485 | $ | 800 | $ | 4,000 | $ | 12,285 | |||||||
Year Ended Dec. 31, 2018 | $ | 14,469 | $ | 1,016 | $ | — | $ | 15,485 | |||||||
Year Ended Dec. 31, 2017 | $ | 17,385 | $ | 1,084 | $ | 4,000 | $ | 14,469 | |||||||
(1) Included in the consolidated balance sheet |
CLECO POWER | SCHEDULE II | ||||||||||||||
VALUATION AND QUALIFYING ACCOUNTS | |||||||||||||||
(THOUSANDS) | BALANCE AT BEGINNING OF PERIOD | ADDITIONS | DEDUCTIONS | BALANCE AT END OF PERIOD (1) | |||||||||||
Allowance for Uncollectible Accounts | |||||||||||||||
Year Ended Dec. 31, 2019 | $ | 814 | $ | 2,323 | $ | 132 | $ | 3,005 | |||||||
Year Ended Dec. 31, 2018 | $ | 1,457 | $ | 977 | $ | 1,620 | $ | 814 | |||||||
Year Ended Dec. 31, 2017 | $ | 7,199 | $ | 4,179 | $ | 9,921 | $ | 1,457 | |||||||
(1) Deducted in the consolidated balance sheet |
(THOUSANDS) | BALANCE AT BEGINNING OF PERIOD | ADDITIONS | DEDUCTIONS | BALANCE AT END OF PERIOD(1) | |||||||||||
Unrestricted Storm Reserve | |||||||||||||||
Year Ended Dec. 31, 2019 | $ | 3,672 | $ | 4,000 | $ | 6,572 | $ | 1,100 | |||||||
Year Ended Dec. 31, 2018 | $ | 4,186 | $ | — | $ | 514 | $ | 3,672 | |||||||
Year Ended Dec. 31, 2017 | $ | 2,607 | $ | 4,000 | $ | 2,421 | $ | 4,186 | |||||||
Restricted Storm Reserve | |||||||||||||||
Year Ended Dec. 31, 2019 | $ | 15,485 | $ | 800 | $ | 4,000 | $ | 12,285 | |||||||
Year Ended Dec. 31, 2018 | $ | 14,469 | $ | 1,016 | $ | — | $ | 15,485 | |||||||
Year Ended Dec. 31, 2017 | $ | 17,385 | $ | 1,084 | $ | 4,000 | $ | 14,469 | |||||||
(1) Included in the consolidated balance sheet |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
Signatures |
CLECO CORPORATE HOLDINGS LLC | ||
(Registrant) | ||
By: | /s/ William G. Fontenot | |
(William G. Fontenot) | ||
(President & Chief Executive Officer) |
SIGNATURE | TITLE | DATE | |
/s/ William G. Fontenot | President & Chief Executive Officer | March 3, 2020 | |
(William G. Fontenot) | (Principal Executive Officer) | ||
/s/ Kazi K. Hasan | Chief Financial Officer | March 3, 2020 | |
(Kazi K. Hasan) | (Principal Financial Officer) | ||
/s/ Tonita Laprarie | Controller and Chief Accounting Officer | March 3, 2020 | |
(Tonita Laprarie) | (Principal Accounting Officer) |
MANAGERS* | ||
Andrew M. Chapman | ||
Paraskevas Fronimos | ||
Richard J. Gallot, Jr. | ||
David R. Gilchrist | ||
Gerald C. Hanrahan, Jr. | ||
Christopher J. Leslie | ||
Jon R. R. Perry | ||
Aaron J. Rubin | ||
Peggy B. Scott | ||
Steven J. Turner | ||
Bruce D. Wainer |
*By: | /s/ William G. Fontenot | March 3, 2020 | ||
(William G. Fontenot, as Attorney-in-Fact) |
CLECO | ||
CLECO POWER | 2019 FORM 10-K |
Signatures |
CLECO POWER LLC | ||
(Registrant) | ||
By: | /s/ William G. Fontenot | |
(William G. Fontenot) | ||
(Chief Executive Officer) |
SIGNATURE | TITLE | DATE | |
/s/ William G. Fontenot | Chief Executive Officer | March 3, 2020 | |
(William G. Fontenot) | (Principal Executive Officer) | ||
/s/ Kazi K. Hasan | Chief Financial Officer | March 3, 2020 | |
(Kazi K. Hasan) | (Principal Financial Officer) | ||
/s/ Tonita Laprarie | Controller and Chief Accounting Officer | March 3, 2020 | |
(Tonita Laprarie) | (Principal Accounting Officer) |
MANAGERS* | ||
Andrew M. Chapman | ||
Paraskevas Fronimos | ||
Richard J. Gallot, Jr. | ||
David R. Gilchrist | ||
Gerald C. Hanrahan, Jr. | ||
Christopher J. Leslie | ||
Jon R. R. Perry | ||
Aaron J. Rubin | ||
Peggy B. Scott | ||
Melissa Stark | ||
Steven J. Turner | ||
Bruce D. Wainer |
*By: | /s/ William G. Fontenot | March 3, 2020 | ||
(William G. Fontenot, as Attorney-in-Fact) |
Independent director compensation Annual Per Quarter |
Base compensation - each independent director $150,000 $37,500 |
Additional compensation if a Committee Chair $ 20,000 $ 5,000 |
Additional compensation if Board Chair $ 82,500 $20,625 |
CLECO CORPORATE HOLDINGS LLC | EXHIBIT 21 |
Subsidiaries of the Registrant as of December 31, 2019 |
SUBSIDIARIES OF REGISTRANT OR ORGANIZATION | STATE OF INCORPORATION | ||
Attala Transmission LLC | Louisiana | ||
CLE Intrastate Pipeline Company LLC | Louisiana | ||
Cleco Cajun LLC | Louisiana | ||
Cleco Evangeline LLC | Louisiana | ||
Cleco Generation Services LLC | Louisiana | ||
Cleco Katrina/Rita Hurricane Recovery Funding LLC | Louisiana | ||
Cleco Midstream Resources LLC | Louisiana | ||
Cleco Power LLC | Louisiana | ||
Cleco Support Group LLC | Louisiana | ||
Diversified Lands LLC | Louisiana | ||
Oxbow Lignite Company, LLC (50% interest) | Delaware | ||
Perryville Energy Partners, L.L.C. | Delaware | ||
South Central Generating LLC | Delaware |
/s/ Andrew M. Chapman | |
Andrew M. Chapman |
/s/ Paraskevas Fronimos | |
Paraskevas Fronimos |
/s/ Richard J. Gallot, Jr. | |
Richard J. Gallot, Jr. |
/s/ David R. Gilchrist | |
David R. Gilchrist |
/s/ Gerald C. Hanrahan, Jr. | |
Gerald C. Hanrahan, Jr. |
/s/ Christopher J. Leslie | |
Christopher J. Leslie |
/s/ Jon R. R. Perry | |
Jon R. R. Perry |
/s/ Aaron J. Rubin | |
Aaron J. Rubin |
/s/ Peggy B. Scott | |
Peggy B. Scott |
/s/ Steven J. Turner | |
Steven J. Turner |
/s/ Bruce D. Wainer | |
Bruce D. Wainer |
/s/ Melissa Stark | |
Melissa Stark |
CLECO CORPORATE HOLDINGS LLC | EXHIBIT 31.1 |
Date: | March 3, 2020 |
/s/ William G. Fontenot | |
William G. Fontenot President & Chief Executive Officer |
CLECO CORPORATE HOLDINGS LLC | EXHIBIT 31.2 |
Date: | March 3, 2020 |
/s/ Kazi K. Hasan | |
Kazi K. Hasan Chief Financial Officer |
CLECO POWER LLC | EXHIBIT 31.3 |
Date: | March 3, 2020 |
/s/ William G. Fontenot | |
William G. Fontenot Chief Executive Officer |
CLECO POWER LLC | EXHIBIT 31.4 |
Date: | March 3, 2020 |
/s/ Kazi K. Hasan | |
Kazi K. Hasan Chief Financial Officer |
CLECO CORPORATE HOLDINGS LLC | EXHIBIT 32.1 |
CERTIFICATION PURSUANT TO |
18 U.S.C. SECTION 1350, |
AS ADOPTED PURSUANT TO |
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 |
Date: | March 3, 2020 |
/s/ William G. Fontenot | |
William G. Fontenot President & Chief Executive Officer |
CLECO CORPORATE HOLDINGS LLC | EXHIBIT 32.2 |
CERTIFICATION PURSUANT TO |
18 U.S.C. SECTION 1350, |
AS ADOPTED PURSUANT TO |
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 |
Date: | March 3, 2020 |
/s/ Kazi K. Hasan | |
Kazi K. Hasan Chief Financial Officer |
CLECO POWER LLC | EXHIBIT 32.3 |
CERTIFICATION PURSUANT TO |
18 U.S.C. SECTION 1350, |
AS ADOPTED PURSUANT TO |
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 |
Date: | March 3, 2020 |
/s/ William G. Fontenot | |
William G. Fontenot Chief Executive Officer |
CLECO POWER LLC | EXHIBIT 32.4 |
CERTIFICATION PURSUANT TO |
18 U.S.C. SECTION 1350, |
AS ADOPTED PURSUANT TO |
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 |
Date: | March 3, 2020 |
/s/ Kazi K. Hasan | |
Kazi K. Hasan Chief Financial Officer |
Pension Plan and Employee Benefits - 401 (K) Plans (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2019 |
Dec. 31, 2018 |
Dec. 31, 2017 |
|
Defined Contribution Plan Disclosure [Line Items] | |||
401(k) Plan expense | $ 7,861 | $ 5,884 | $ 5,386 |
Support Group | |||
Defined Contribution Plan Disclosure [Line Items] | |||
401(k) Plan expense | $ 3,408 | $ 1,066 | $ 888 |
Pension Plan and Employee Benefits - Unobservable Input Reconciliation (Details) - PENSION BENEFITS - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2019 |
Dec. 31, 2018 |
|
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation[Roll Forward] | ||
Fair value of plan assets at beginning of period | $ 391,933 | $ 444,089 |
Fair value of plan assets at end of period | 460,097 | 391,933 |
Real estate funds | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation[Roll Forward] | ||
Fair value of plan assets at beginning of period | 20,298 | 19,195 |
Realized gains (losses) | 370 | 29 |
Unrealized gains | (1,727) | 391 |
Purchases | 759 | 710 |
Sales | (1,683) | (27) |
Fair value of plan assets at end of period | $ 18,017 | $ 20,298 |
Jointly Owned Generation Units (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Jointly Owned Utility Plant Interests [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Jointly Owned Generation Units | At December 31, 2019, the investment in and accumulated depreciation for each generating unit on Cleco and Cleco Power’s Consolidated Balance Sheets were as follows:
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CLECO POWER | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Jointly Owned Utility Plant Interests [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Jointly Owned Generation Units |
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Business Combinations (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets Acquired and Liabilities Assumed and Measurement Period Adjustments |
The following chart presents Cleco’s current purchase price allocation:
The measurement period adjustments were based upon information obtained about facts and circumstances that existed at the acquisition date that, if known, would have affected the measurement of the amounts recognized at that date.
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Unaudited Pro Forma Information | The unaudited pro forma financial information presented in the following table is not necessarily indicative of the consolidated results of operations that would have been achieved had the transaction taken place on the dates indicated, or the future consolidated results of operations of the combined companies.
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Debt |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt |
Cleco Power’s total indebtedness as of December 31, 2019, and 2018 was as follows:
Cleco’s total indebtedness as of December 31, 2019, and 2018 was as follows:
(1)For December 31, 2019, and 2018, this amount includes unamortized debt issuance costs for Cleco Holdings of $11.9 million and $8.2 million, respectively, partially offset by deferred debt issuance costs eliminated as a result of the 2016 Merger of $5.6 million and $6.3 million, respectively. For more information, see Note 6 — “Regulatory Assets and Liabilities — Cleco Holdings’ 2016 Merger Adjustments.” The principal amounts payable under long-term debt agreements for each year through 2024 and thereafter are as follows:
(1)Does not include Series A GO Zone bonds that have a maturity date of December 2038 but a mandatory tender in May 2020. The principal amounts payable under the finance lease agreement for each year through 2024 and thereafter are as follows:
Cleco Power Debt Cleco Power had no short-term debt outstanding at December 31, 2019, and 2018. At December 31, 2019, Cleco Power’s long-term debt and finance leases outstanding was $1.39 billion, of which $61.6 million was due within one year. The long-term debt due within one year at December 31, 2019, primarily represents $50.0 million of GO Zone bonds with a mandatory tender in May 2020 and $11.0 million of principal payments for the Cleco Katrina/Rita storm recovery bonds. On March 2, 2020, Cleco Power completed the repayment of its Cleco Katrina/Rita storm recovery bonds issued in March 2008. Cleco Debt Cleco had no short-term debt outstanding at December 31, 2019, and 2018. At December 31, 2019, Cleco’s long-term debt and finance leases outstanding was $3.19 billion, of which $126.0 million was due within one year. The long-term debt due within one year at December 31, 2019, primarily represents $63.3 million of principal payments on Cleco Holdings’ debt as required by the Cleco Cajun Transaction commitments to the LPSC, $50.0 million of GO Zone bonds with a mandatory tender in May 2020, and $11.0 million of principal payments for the Cleco Katrina/Rita storm recovery bonds. In connection with the Cleco Cajun Transaction on February 4, 2019, Cleco Holdings borrowed $300.0 million under a new bridge loan agreement and $100.0 million under a new term loan agreement. Both loan agreements are variable rate debt and have a three-year term. Both loan agreements contain certain financial covenants, including requiring Cleco Holdings to maintain (i) a debt to capital ratio (as defined in the applicable agreement) below 65% and (ii) a rating applicable to Cleco’s senior debt rating (as defined in the applicable agreement). On September 11, 2019, Cleco Holdings completed the private placement of $300.0 million aggregate principal amount of its 3.375% senior notes due September 15, 2029. The proceeds from the issuance were used to repay the remaining amounts due under the $300.0 million bridge loan agreement and to repay a portion of the $100.0 million term loan agreement. The senior notes are governed by an indenture entered into between Cleco Holdings and a trustee. The indenture contains certain covenants that restrict Cleco Holdings’ ability to merge, consolidate, transfer, or lease all or substantially all of its assets or create or incur certain liens. Upon approval of the Cleco Cajun Transaction, commitments were made to the LPSC by Cleco, including repayment of $400.0 million of Cleco Holdings’ debt by December 31, 2024. As of December 31, 2019, Cleco Holdings was in compliance with these commitments. The cumulative minimum principal amounts committed to be repaid for each year through 2024 are as follows:
Credit Facilities At December 31, 2019, Cleco had two separate revolving credit facilities, one for Cleco Holdings in the amount of $175.0 million and one for Cleco Power in the amount of $300.0 million, with a maximum aggregate capacity of $475.0 million. In connection with the Cleco Cajun Transaction, on February 4, 2019, Cleco Holdings increased its credit facility capacity by $75.0 million, for a total credit facility of $175.0 million. The credit facility includes restrictive financial covenants and expires in 2021. Under covenants contained in Cleco Holdings’ credit facility, Cleco is required to maintain total indebtedness less than or equal to 65% of total capitalization. At December 31, 2019, $1.01 billion of Cleco’s member’s equity was unrestricted. At December 31, 2019, Cleco Holdings was in compliance with the covenants of its credit facility. The borrowing costs under Cleco Holdings’ credit facility are equal to LIBOR plus 1.75% or ABR plus 0.75%, plus commitment fees of 0.275%. If Cleco Holding’s credit ratings were to be downgraded one level, Cleco Holdings could be required to pay higher fees and additional interest of 0.075% and 0.50%, respectively, under the pricing levels of its credit facility. At December 31, 2019, Cleco Power had a $300.0 million credit facility. The credit facility includes restrictive financial covenants and expires in 2021. Under covenants contained in Cleco Power’s credit facility, Cleco Power is required to maintain total indebtedness less than or equal to 65% of total capitalization. At December 31, 2019, $989.0 million of Cleco Power’s member’s equity was unrestricted. At December 31, 2019, Cleco Power was in compliance with the covenants in its credit facility. The borrowing costs under Cleco Power’s credit facility are equal to LIBOR plus 1.125% or ABR plus 0.125%, plus commitment fees of 0.125%. If Cleco Power’s credit ratings were to be downgraded one level, Cleco Power could be required to pay higher fees and additional interest of 0.05% and 0.125%, respectively, under the pricing levels of its credit facility. If Cleco Holdings or Cleco Power were to default under the covenants in their respective credit facilities or other debt agreements, they would be unable to borrow additional funds under the facilities and the lenders could accelerate all principal and interest outstanding. Further, if Cleco Power were to default under its credit facility or other debt agreements, Cleco Holdings would be considered in default under its credit facility. |
Schedule I Financial Statements of Cleco Holdings (Parent Company Only) - Summary of Significant Accounting Policies (Details) - Cleco Holdings $ in Millions |
Dec. 31, 2019
USD ($)
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Condensed Financial Statements, Captions [Line Items] | |
Percent of restricted consolidated net assets of consolidated subsidiaries exceeding total consolidated net assets (in hundredths) | 25.00% |
Restricted net assets of consolidated subsidiaries | $ 1,260 |
The Company |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||
The Company |
Cleco is composed of the following:
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Revenue Recognition |
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Revenue from Contract with Customer [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue Recognition |
Revenue from Contracts with Customers Retail Utility Revenue Cleco’s retail revenue from contracts with customers is generated primarily from Cleco Power’s regulated revenue from residential, commercial, and industrial customers. Cleco Power recognizes retail revenue from these contracts as a series, and progress towards satisfaction of the performance obligation is measured using an output method based on kWh delivered. Accordingly, revenue from electricity sales is recognized as energy is delivered to the customer. Cleco Power bills retail customers, based on rates regulated by the LPSC, on a monthly basis with payments generally due within 20 days of the invoice date. Included in Cleco Power’s retail revenue is unbilled electric revenue, which represents the amount customers will be billed for services rendered from the last meter reading to the end of the respective accounting period. Cleco Power uses actual customer energy consumption data available from AMI to calculate unbilled revenue. Also included in Cleco Power’s retail revenue is electric customer credits, which primarily represents the accrued estimated refunds to Cleco Power’s retail customers for the tax related benefits of the TCJA. Wholesale Revenue Cleco’s wholesale revenue is generated primarily through the sale of energy and capacity to cooperatives, municipalities, and the MISO transmission provider. Cleco also enters into transactions through MISO for spot energy sales which are transacted in the Day-Ahead Energy and Operating Reserves Market and the Real-Time Energy and Operating Reserves Market. The electricity revenue performance obligations, representing both energy and capacity, are satisfied as a series of performance obligations, and progress towards satisfaction of the performance obligations are measured using an output method. The energy performance obligation measure of progress is based on kWh delivered. The capacity performance obligation measure of progress is based on time elapsed and is recognized each month as Cleco’s generating units stand ready to deliver electricity to the customer. Cleco recognizes wholesale revenue, inclusive of both performance obligations, under the invoice practical expedient for the amount Cleco has the right to invoice. Cleco, through Cleco Power and Cleco Cajun, charges its wholesale customers market based rates that are subject to FERC’s triennial market power analysis. Transmission Revenue Cleco Power and Cleco Cajun earn transmission revenues pursuant to MISO’s FERC filed tariff. The performance obligation of transmission service is satisfied as service is provided. Revenue is recognized upon delivery of the transmission service. For Cleco Power, revenue from the transmission of electricity is recorded based on a FERC-approved annual formula rate mechanism. This mechanism provides for an annual filing of revenue requirements with rates effective June 1 of each year. For Cleco Cajun, revenue from the transmission of electricity is recorded based on a FERC-approved annual filing rate mechanism effective June 1 of each year. Cleco Cajun charges transmission rates based on its cost to provide transmission services. Other Revenue Other revenue from contracts with customers, which is not a significant source of Cleco’s revenue, includes Cleco Power’s Teche Unit 3 SSR revenue and miscellaneous fees. The performance obligation under these contracts is satisfied and revenue is recognized as control of the products is delivered or services are rendered. Revenue Unrelated to Contracts with Customers Cleco’s energy-related transactions with the following characteristics qualify as derivative contracts and are recorded pursuant to derivatives and hedging accounting guidance: a) their value is based on the notional amount or payment provisions of an underlying asset; b) they require no or a diminutive initial net investment; and c) their terms require or permit net settlement. Cleco Cajun’s other revenue includes fixed lease payments and certain variable payments for costs paid by NRG Energy on behalf of Cleco. For more information on the Cottonwood lease agreement, see Note 4 — “Leases — Lessor Agreements — Cottonwood Sale Leaseback Agreement.” Disaggregated Revenue Upon the completion of the Cleco Cajun Transaction on February 4, 2019, Cleco Cajun became a new reportable segment. For more information on the transaction, see Note 3 — “Business Combinations.” Operating revenue, net for the year ended December 31, 2019, and 2018, was as follows:
(1) Includes fuel recovery revenue. (2) Includes $0.8 million of electric customer credits. (3) Amortization of intangible assets related to Cleco Power’s wholesale power supply agreements. (4) Includes $2.6 million of electric customer credits. (5) Includes $0.7 million of electric customer credits. (6) Includes $16.1 million of other miscellaneous fee revenue and $3.2 million of Teche Unit 3 SSR revenue. (7) Includes interdepartmental rents and support services. This revenue is eliminated upon consolidation. (8) Includes realized gains associated with FTRs of $12.4 million and LCFC revenue of $0.2 million. (9) Includes $57.1 million in lease revenue related to the Cottonwood Sale Leaseback and $8.4 million of deferred lease revenue amortization.
(1) Includes fuel recovery revenue. (2) Amortization of intangible assets related to wholesale power supply agreements. (3) Other revenue from contracts with customers includes $18.2 million of other miscellaneous fee revenue and $9.6 million of Teche Unit 3 SSR revenue. (4)Affiliate revenue from contracts with customers includes interdepartmental rents and support services. This revenue is eliminated upon consolidation. (5) Includes realized gains associated with FTRs of $39.3 million and LCFC revenue of $2.6 million. Cleco and Cleco Power have unsatisfied performance obligations with durations ranging between 1 and 15 years that primarily relate to stand-ready obligations as part of fixed capacity minimums. Cleco and Cleco Power have elected to not disclose the value of unsatisfied variable performance obligations as part of their application of the right to invoice practical expedient. At December 31, 2019, Cleco and Cleco Power had $30.8 million of unsatisfied performance obligations that will be recognized as revenue over the term of the contracts as the stand-ready obligation to provide energy is provided. |
Leases - Property Associated with Sale Leaseback (Details) $ in Thousands |
Dec. 31, 2019
USD ($)
|
---|---|
Leases [Abstract] | |
Property, plant, and equipment | $ 540,409 |
Accumulated depreciation | (22,741) |
Net property, plant, and equipment | $ 517,668 |
Leases - Lessor Agreements (Details) |
Dec. 31, 2019
contract
|
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Leases [Abstract] | |
Number of contracts | 2 |
Lease term | 1 year |
Summary of Significant Accounting Policies - Deferred Project Costs (Details) - USD ($) $ in Millions |
Dec. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
CLECO POWER | ||
Accounting Policies [Line Items] | ||
Deferred project costs | $ 1.4 | $ 1.4 |
Summary of Significant Accounting Policies - AFUDC (Details) - CLECO POWER |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2019 |
Dec. 31, 2018 |
Dec. 31, 2017 |
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Public Utilities, General Disclosures [Line Items] | |||
Composite AFUDC rate, including borrowed and other funds, pre-tax | 10.71% | 9.58% | 11.07% |
Public utilities, rate net of tax | 8.37% | 7.08% | 6.81% |
Leases - Future Minimum Lease Payments Due Under Finance Lease as of Prior Year (Details) - CLECO POWER $ in Thousands |
Dec. 31, 2018
USD ($)
|
---|---|
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 |
Pension Plan and Employee Benefits - Amounts Recognized in Balance Sheet (Details) - USD ($) $ in Thousands |
Dec. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Defined Benefit Plan Disclosure [Line Items] | ||
Non-current | $ 283,075 | $ 249,264 |
OTHER BENEFITS | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Current | 4,401 | 4,130 |
Non-current | 48,321 | 36,325 |
SERP BENEFITS | ||
Defined Benefit Plan Disclosure [Line Items] | ||
SERP, current | 4,599 | 4,478 |
SERP, noncurrent | 84,529 | 73,936 |
CLECO POWER | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Non-current | 206,270 | 182,721 |
CLECO POWER | OTHER BENEFITS | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Current | 3,815 | 3,584 |
Non-current | 42,080 | 31,694 |
CLECO POWER | SERP BENEFITS | ||
Defined Benefit Plan Disclosure [Line Items] | ||
SERP, current | 760 | 930 |
SERP, noncurrent | $ 13,964 | $ 12,025 |
Business Combinations - Fair Value Adjustments (Details) - NRG South Central $ in Thousands |
3 Months Ended |
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Jun. 30, 2019
USD ($)
| |
Current assets | |
Customer and other accounts receivable | $ 1,408 |
Other current assets | 56 |
Non-current assets | |
Property, plant, and equipment, net | 13,297 |
Prepayments | (56) |
Intangible assets | (3,600) |
Other deferred charges | 1 |
Current liabilities | |
Accounts payable | 3,022 |
Energy risk management liabilities | (1) |
Other current liabilities | 327 |
Non-current liabilities | |
Accumulated deferred federal and state income taxes, net | 421 |
Deferred lease revenue | (3,600) |
Intangible liabilities | 6,400 |
Asset retirement obligations | 4,534 |
Operating lease liabilities | $ 3 |
Consolidated Statements of Changes in Member's Equity - USD ($) $ in Thousands |
Total |
MEMBERSHIP INTEREST |
RETAINED EARNINGS/ (ACCUMULATED DEFICIT) |
AOCI |
CLECO POWER |
CLECO POWER
MEMBER’S EQUITY
|
CLECO POWER
AOCI
|
---|---|---|---|---|---|---|---|
Balance, beginning at Dec. 31, 2016 | $ 2,046,763 | $ 2,069,376 | $ (24,113) | $ 1,500 | $ 1,535,202 | $ 1,548,624 | $ (13,422) |
Increase (Decrease) in Equity [Roll Forward] | |||||||
Distributions to member | (84,065) | (84,065) | (135,000) | (135,000) | |||
Net income | 138,080 | 138,080 | 150,738 | 150,738 | |||
Total other comprehensive (loss) income, net of tax | (4,421) | (4,421) | (261) | (261) | |||
Balance, ending at Dec. 31, 2017 | 2,096,357 | 2,069,376 | 29,902 | (2,921) | 1,550,679 | 1,564,362 | (13,683) |
Increase (Decrease) in Equity [Roll Forward] | |||||||
Distributions to member | (71,350) | (71,350) | (121,400) | (121,400) | |||
Net income | 94,437 | 94,437 | 162,257 | 162,257 | |||
Total other comprehensive (loss) income, net of tax | 5,296 | 5,296 | 2,997 | 2,997 | |||
Reclassification of effect of tax rate change | 589 | (589) | (2,496) | 2,496 | (2,496) | ||
Balance, ending at Dec. 31, 2018 | 2,124,740 | 2,069,376 | 53,578 | 1,786 | 1,594,533 | 1,607,715 | (13,182) |
Increase (Decrease) in Equity [Roll Forward] | |||||||
Distributions to member | (20,000) | (20,000) | |||||
Contributions from member | 384,900 | 384,900 | |||||
Net income | 152,665 | 152,665 | 148,262 | 148,262 | |||
Total other comprehensive (loss) income, net of tax | (19,299) | (19,299) | (9,403) | (9,403) | |||
Balance, ending at Dec. 31, 2019 | $ 2,643,006 | $ 2,069,376 | $ 591,143 | $ (17,513) | $ 1,713,392 | $ 1,735,977 | $ (22,585) |
Debt - Future Amounts Payable Under Long-Term Debt Agreements (Details) - USD ($) $ in Thousands |
Dec. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Debt Instrument [Line Items] | ||
Long-term debt and finance leases, net | $ 3,064,679 | $ 2,874,485 |
For the year ending Dec. 31, | ||
2020 | 617 | |
2021 | 682 | |
2022 | 755 | |
2023 | 836 | |
2024 | 925 | |
Thereafter | 12,046 | |
CLECO POWER | ||
Debt Instrument [Line Items] | ||
Long-term debt and finance leases, net | 1,327,372 | $ 1,387,774 |
For the year ending Dec. 31, | ||
2020 | 617 | |
2021 | 682 | |
2022 | 755 | |
2023 | 836 | |
2024 | 925 | |
Thereafter | 12,046 | |
Long-term Debt Agreements | ||
For the year ending Dec. 31, | ||
2020 | 11,055 | |
2021 | 330,000 | |
2022 | 25,000 | |
2023 | 265,000 | |
2024 | 50,000 | |
Thereafter | 2,385,000 | |
Long-term Debt Agreements | CLECO POWER | ||
For the year ending Dec. 31, | ||
2020 | 11,055 | |
2021 | 0 | |
2022 | 25,000 | |
2023 | 100,000 | |
2024 | 50,000 | |
Thereafter | $ 1,200,000 |
Leases - Summary of Expected Operating Lease Payments as of Prior Year (Details) $ in Thousands |
Dec. 31, 2018
USD ($)
|
---|---|
Years ending Dec. 31, | |
2019 | $ 4,150 |
2020 | 3,890 |
2021 | 2,789 |
2022 | 1,239 |
2023 | 1,214 |
Thereafter | 7,235 |
Total operating lease payments | 20,517 |
Cleco Holdings | |
Years ending Dec. 31, | |
2019 | 120 |
2020 | 0 |
2021 | 0 |
2022 | 0 |
2023 | 0 |
Thereafter | 0 |
Total operating lease payments | 120 |
CLECO POWER | |
Years ending Dec. 31, | |
2019 | 4,030 |
2020 | 3,890 |
2021 | 2,789 |
2022 | 1,239 |
2023 | 1,214 |
Thereafter | 7,235 |
Total operating lease payments | $ 20,397 |
Accumulated Other Comprehensive Loss (Tables) |
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Accumulated Other Comprehensive Loss [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Accumulated Other Comprehensive Loss |
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CLECO POWER | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Loss [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Accumulated Other Comprehensive Loss |
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Variable Interest Entities (Tables) - CLECO POWER |
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Variable Interest Entity [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Method Investments | The following tables contain summarized financial information for Oxbow:
The following table presents the components of Cleco Power’s equity investment in Oxbow:
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Comparison of Investee's Assets and Liabilities with Maximum Exposure to Loss | The following table compares the carrying amount of Oxbow’s assets and liabilities with Cleco Power’s maximum exposure to loss related to its investment in Oxbow:
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Regulation and Rates |
12 Months Ended | |||||||||||||||
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Dec. 31, 2019 | ||||||||||||||||
Regulated Operations [Abstract] | ||||||||||||||||
Regulation and Rates |
At December 31, 2019, Provision for rate refund on Cleco and Cleco Power’s Consolidated Balance Sheets consisted primarily of $28.7 million for the estimated refund for the tax-related benefits from the TCJA, $3.5 million for the estimated refund related to the FERC audit, $2.3 million for the estimated FRP refunds, $1.9 million for the cost of service savings refunds, and $1.0 million for potential reductions to the transmission ROE. For more information about the FERC audit, see Note 15 — “Litigation, Other Commitments and Contingencies, and Disclosures about Guarantees — Litigation — FERC Audit.” Transmission ROE Two complaints were filed with FERC seeking to reduce the ROE component of the transmission rates that MISO transmission owners, including Cleco Power, may collect under the MISO tariff. As of December 31, 2019, Cleco Power had $1.0 million accrued for the change in ROE. For more information on the ROE complaint, see Note 15 — “Litigation, Other Commitments and Contingencies, and Disclosures about Guarantees — Litigation — Transmission ROE.” FRP Cleco Power’s annual retail earnings are subject to an FRP that was approved by the LPSC in June 2014. Under the terms of Cleco Power’s current FRP, Cleco Power is allowed to earn a target ROE of 10.0%, while providing the opportunity to earn up to 10.9%. Additionally, 60% of retail earnings between 10.9% and 11.75%, and all retail earnings over 11.75% are required to be refunded to customers. The amount of credits due to customers, if any, is determined by Cleco Power and the LPSC annually. Credits are typically included on customers’ bills the following summer, but the amount and timing of the refunds are ultimately subject to LPSC approval. On June 28, 2019, Cleco Power filed an application with the LPSC for a new FRP, with anticipated new rates being effective July 1, 2020. Cleco Power has responded to several sets of data requests relating to the new FRP. Cleco Power must file annual monitoring reports no later than October 31 for the 12-month period ending June 30. In January 2020, Cleco Power reached an agreement with the LPSC Staff regarding the treatment and realignment of SSR revenue between base and fuel revenue that resulted in $2.3 million of refunds for the 2018 monitoring report and confirmed no refunds for the 2017 monitoring report. The settlement also applies to treatment of SSR revenues for the 2019 monitoring report. The 2017 monitoring report was approved by the LPSC Staff on February 19, 2020. Cleco Power expects to refund the $2.3 million for the 2018 monitoring report in March 2020. Cleco Power has responded to data requests relating to the 2019 FRP monitoring report. Cleco Power’s monitoring reports also include a $1.2 million annual cost of service savings as a result of the 2016 Merger Commitments. The cost of service savings are not subject to the target ROE or any sharing mechanism. The cost of service savings are refunded annually in September and will continue until Cleco Power’s next FRP is in effect, which is expected in July 2020. At December 31, 2019, Cleco Power had $1.9 million accrued for the estimated cost of service savings refunds. TCJA The provisions of the TCJA reduced the top federal statutory corporate income tax rate from 35% to 21%. As a result of the tax rate reduction, on January 1, 2018, Cleco Power began accruing an estimated reserve for the reduction in the federal statutory corporate income tax rate. In February 2018, the LPSC directed utilities, including Cleco Power, to provide considerations of the appropriate manner to flow through to ratepayers the benefits of the reduction in corporate income taxes as a result of the TCJA. On July 10, 2019, the LPSC approved Cleco Power’s rate refund of $79.2 million, plus interest, for the reduction in the statutory federal tax rate for the period from January 2018 to June 2020. The refund is being credited to customers over 12 months beginning August 1, 2019. At December 31, 2019, Cleco Power had $28.7 million accrued for the estimated federal tax-related benefits from the TCJA and $2.4 million accrued in related interest. Also on July 10, 2019, the LPSC approved Cleco Power’s motion to address the rate redesign and the regulatory liability for excess ADIT, resulting from the enactment of the TCJA, in Cleco Power’s application for its next FRP, which was filed on June 28, 2019. 2016 Merger Commitments On March 28, 2016, the LPSC approved the 2016 Merger. The LPSC’s written order approving the 2016 Merger was issued on April 7, 2016. Approval of the 2016 Merger was conditioned upon certain commitments, including $136.0 million of customer rate credits. As of December 31, 2019, Cleco Power had issued $135.9 million of customer rate credits. Also included in the 2016 Merger Commitments were $2.5 million of contributions for economic development for Louisiana state and local organizations to be disbursed over five years, an additional $7.0 million one-time contribution in 2016 for economic development in Cleco Power’s service territory to be administered by Louisiana Economic Development, and $6.0 million of charitable contributions to be disbursed over five years. At December 31, 2019, Cleco Power had $3.9 million remaining accrued for the 2016 Merger Commitments discussed above. SSR In September 2016, Cleco Power filed an Attachment Y with MISO requesting retirement of Teche Unit 3 effective April 1, 2017. MISO conducted a study which determined the proposed retirement of Teche Unit 3 would result in violations of specific applicable reliability standards for which no mitigation is available. As a result, MISO designated Teche Unit 3 as an SSR unit until such time that an appropriate alternative solution can be implemented to mitigate reliability issues. One mitigating factor identified was Cleco Power’s Terrebonne to Bayou Vista Transmission project. The Terrebonne to Bayou Vista project was completed in April 2019. Cleco Power received a termination notice, effective April 30, 2019, and filed paperwork to withdraw the filed Attachment Y. While operating as an SSR unit, Cleco Power received monthly payments that included recovery of expenses, including capital expenditures, related to the operations of Teche Unit 3. Additionally, MISO allocated SSR costs to the load serving entities that required the operation of the SSR unit, including Cleco Power. These payments and cost allocations were finalized as part of a MISO SSR settlement approved in December 2018. Cleco Power operated Teche Unit 3 as an SSR unit from April 2017 through April 2019. Cleco Power expects Teche Unit 3 to be available to run until the estimated 2021 in-service date of Bayou Vista to Segura Transmission project, at which time, Cleco Power does not expect to offer the unit into MISO, barring any grid or customer reliability issues or other similar reasons. At December 31, 2019, Cleco Power had $6.1 million accrued for the net capital refund for capital expenditures paid for by third parties while operating under the SSR agreement. As part of the settlement, one of the load serving entities agreed to reimburse Cleco Power for their portion of the capital refund. Management is unable to determine the timing of the capital refund. |
Intangible Assets, Intangible Liabilities, and Goodwill |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible Assets, Intangible Liabilities and Goodwill |
During 2008, Cleco Katrina/Rita acquired a $177.5 million intangible asset which includes $176.0 million for the right to bill and collect storm recovery charges from customers of Cleco Power and $1.5 million of financing costs. This intangible asset is expected to be fully amortized in 2020. The intangible asset’s expected amortization expense is based on the estimated collections from Cleco Power’s customers. At the end of its life, the asset will have no residual value. Cleco Katrina/Rita records amortization expense based on actual collections. At the date of the 2016 Merger, the gross balance of the Cleco Katrina/Rita intangible asset for Cleco was adjusted to be net of accumulated amortization, as no accumulated amortization existed at such date. As a result of the 2016 Merger, fair value adjustments were recorded on Cleco’s Consolidated Balance Sheet for the valuation of the Cleco trade name and long-term wholesale power supply agreements. At the end of their life, these intangible assets will have no residual value. The trade name intangible asset is being amortized over its estimated economic useful life of 20 years. The intangible assets related to the power supply agreements are amortized over the remaining life of each applicable contract ranging between 3 years and 15 years and the amortization is included in Electric operations on Cleco’s Consolidated Statements of Income. As a result of the Cleco Cajun Transaction, fair value adjustments were recorded on Cleco’s Consolidated Balance Sheet for the difference between the contract and market price of acquired long-term wholesale power agreements. The fair value of intangible assets of $98.9 million and intangible liabilities of $14.2 million was reflected in the purchase price allocation. At the end of their life, these intangible assets and liabilities will have no residual value. These intangibles are amortized over the remaining life of each applicable contract ranging between two years and eight years. The amortization is included in Electric operations on Cleco’s Consolidated Statement of Income. As part of the Cleco Cajun Transaction, Cleco assumed an LTSA for maintenance services related to the Cottonwood Plant. An intangible liability of $24.1 million was reflected in the purchase price allocation and is being amortized using the straight-line method over the estimated remaining life of the LTSA of seven years. The amortization is included as a reduction to the LTSA prepayments on Cleco’s Consolidated Balance Sheet. For more information on the fair value adjustments of intangible assets and liabilities related to the Cleco Cajun Transaction, see Note 3 — “Business Combinations.” The following tables present Cleco and Cleco Power’s amortization of intangible assets and liabilities:
The following tables summarize the balances for intangible assets and liabilities subject to amortization for Cleco and Cleco Power:
The following table summarizes the amortization expense related to intangible assets and liabilities expected to be recognized in Cleco’s Consolidated Statements of Income:
Cleco Power expects to recognize $0.5 million of amortization expense related to intangible assets on its Consolidated Statement of Income in 2020. Goodwill In connection with the completion of the 2016 Merger, Cleco recognized goodwill of $1.49 billion. Management assigned the recognized goodwill to the Cleco Power reporting segment. Goodwill is required to be tested for impairment at the reporting segment level on an annual basis and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting segment below its carrying value. Application of the goodwill impairment test requires significant judgments, including the identification of reporting segments, assignments of assets and liabilities to reporting segments, assignment of goodwill to reporting segments, and the determination of the fair value of the reporting segments. Cleco conducted its 2019 annual impairment test using an August 1, 2019, measurement date. The fair value of the Cleco Power reporting segment was estimated using a weighted combination of the income approach, which estimates fair value based on discounted cash flows, and the market approach, which estimates fair value based on market comparables within the utility and energy industries. Significant assumptions used in these fair value estimates include estimation of future cash flows related to capital expenditures, long-term rate of growth, and weighted-average cost of capital or discount rate. Changes in these assumptions could materially affect the determination of fair value and goodwill impairment at Cleco Power. Based on the tests performed, management has determined that there was no impairment of Cleco Power’s goodwill for 2019. Management estimated the fair value of Cleco Power’s equity to be $3.97 billion at the August 1, 2019, measurement date. The carrying value of Cleco Power’s equity was approximately $3.40 billion with the excess of the fair value over the carrying value representing 16.8% or $570.4 million. There were no accumulated impairment charges. |
Intangible Assets, Intangible Liabilities, and Goodwill - Expected Amortization Expense (Details) $ in Thousands |
Dec. 31, 2019
USD ($)
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INTANGIBLE ASSETS | |
2020 | $ 26,372 |
2021 | 25,855 |
2022 | 25,855 |
2023 | 25,855 |
2024 | 29,459 |
Thereafter | 4,707 |
INTANGIBLE LIABILITIES | |
2020 | (7,012) |
2021 | (5,862) |
2022 | (5,041) |
2023 | (5,041) |
2024 | (5,041) |
Thereafter | $ (3,875) |
Business Combinations - Pro Forma Information (Details) - NRG South Central - USD ($) $ in Thousands |
12 Months Ended | |
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Dec. 31, 2019 |
Dec. 31, 2018 |
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Business Acquisition [Line Items] | ||
Operating revenue, net | $ 1,660,362 | $ 1,668,022 |
Net income | $ 154,898 | $ 170,224 |
Label | Element | Value |
---|---|---|
Trade Names [Member] | ||
Finite-Lived Intangible Assets, Gross | us-gaap_FiniteLivedIntangibleAssetsGross | $ 5,100,000 |
Finite-Lived Intangible Assets, Gross | us-gaap_FiniteLivedIntangibleAssetsGross | 5,100,000 |
Amortization of Intangible Assets | us-gaap_AmortizationOfIntangibleAssets | 255,000 |
Amortization of Intangible Assets | us-gaap_AmortizationOfIntangibleAssets | 255,000 |
Amortization of Intangible Assets | us-gaap_AmortizationOfIntangibleAssets | $ 255,000 |
Finite-Lived Intangible Asset, Useful Life | us-gaap_FiniteLivedIntangibleAssetUsefulLife | 20 years |
Contractual Rights [Member] | Cleco Katrina/Rita [Member] | ||
Finite-lived Intangible Assets Acquired | us-gaap_FinitelivedIntangibleAssetsAcquired1 | $ 176,000,000 |
Transmission Service Agreement [Member] | ||
Finite-Lived Intangible Assets, Gross | us-gaap_FiniteLivedIntangibleAssetsGross | 85,104,000 |
Finite-Lived Intangible Assets, Gross | us-gaap_FiniteLivedIntangibleAssetsGross | 184,004,000 |
Acquired Finite-lived Intangible Asset, Residual Value | us-gaap_AcquiredFiniteLivedIntangibleAssetResidualValue | 0 |
Amortization of Intangible Assets | us-gaap_AmortizationOfIntangibleAssets | 10,757,000 |
Amortization of Intangible Assets | us-gaap_AmortizationOfIntangibleAssets | 9,680,000 |
Amortization of Intangible Assets | us-gaap_AmortizationOfIntangibleAssets | 24,273,000 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | us-gaap_BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedIntangibles | $ 98,900,000 |
Transmission Service Agreement [Member] | Minimum [Member] | ||
Finite-Lived Intangible Asset, Useful Life | us-gaap_FiniteLivedIntangibleAssetUsefulLife | 3 years |
Transmission Service Agreement [Member] | Maximum [Member] | ||
Finite-Lived Intangible Asset, Useful Life | us-gaap_FiniteLivedIntangibleAssetUsefulLife | 15 years |
Right To Bill And Collect Storm Recovery Charges From Customers [Member] | Cleco Power [Member] | ||
Finite-Lived Intangible Assets, Net Of Liabilities, Gross | cnl_FiniteLivedIntangibleAssetsNetOfLiabilitiesGross | $ 177,537,000 |
Finite-Lived Intangible Assets, Net Of Liabilities, Gross | cnl_FiniteLivedIntangibleAssetsNetOfLiabilitiesGross | 177,537,000 |
Finite-Lived Intangible Assets, Net of Liabilities, Net | cnl_FiniteLivedIntangibleAssetsNetofLiabilitiesNet | 21,093,000 |
Finite-Lived Intangible Assets, Net of Liabilities, Net | cnl_FiniteLivedIntangibleAssetsNetofLiabilitiesNet | 517,000 |
Amortization of Intangible Assets | us-gaap_AmortizationOfIntangibleAssets | 16,772,000 |
Amortization of Intangible Assets | us-gaap_AmortizationOfIntangibleAssets | 20,608,000 |
Amortization of Intangible Assets | us-gaap_AmortizationOfIntangibleAssets | 20,576,000 |
Finite-Lived Intangible Assets And Liabilities, Accumulated Amortization | cnl_FiniteLivedIntangibleAssetsAndLiabilitiesAccumulatedAmortization | 156,444,000 |
Finite-Lived Intangible Assets And Liabilities, Accumulated Amortization | cnl_FiniteLivedIntangibleAssetsAndLiabilitiesAccumulatedAmortization | 177,020,000 |
Right To Bill And Collect Storm Recovery Charges From Customers [Member] | Cleco Katrina/Rita [Member] | ||
Finite-lived Intangible Assets Acquired | us-gaap_FinitelivedIntangibleAssetsAcquired1 | 177,500,000 |
Finite-Lived Intangible Assets, Gross | us-gaap_FiniteLivedIntangibleAssetsGross | 70,594,000 |
Finite-Lived Intangible Assets, Gross | us-gaap_FiniteLivedIntangibleAssetsGross | 70,594,000 |
Acquired Finite-lived Intangible Asset, Residual Value | us-gaap_AcquiredFiniteLivedIntangibleAssetResidualValue | 0 |
Amortization of Intangible Assets | us-gaap_AmortizationOfIntangibleAssets | 16,772,000 |
Amortization of Intangible Assets | us-gaap_AmortizationOfIntangibleAssets | 20,608,000 |
Amortization of Intangible Assets | us-gaap_AmortizationOfIntangibleAssets | 20,576,000 |
Financing costs [Member] | Cleco Katrina/Rita [Member] | ||
Finite-lived Intangible Assets Acquired | us-gaap_FinitelivedIntangibleAssetsAcquired1 | $ 1,500,000 |
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands |
Dec. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Cash and cash equivalents | $ 116,292 | $ 110,175 |
Current restricted cash and cash equivalents | 11,100 | 11,241 |
Non-current restricted cash and cash equivalents | 15,203 | 18,670 |
CLECO POWER | ||
Cash and cash equivalents | 55,489 | 31,987 |
Current restricted cash and cash equivalents | 11,100 | 11,241 |
Non-current restricted cash and cash equivalents | $ 14,363 | $ 18,649 |
Leases - Finance Lease (Details) $ in Millions |
12 Months Ended | |||
---|---|---|---|---|
Dec. 31, 2019
USD ($)
event
|
Dec. 31, 2018
USD ($)
|
Dec. 31, 2017
USD ($)
|
Apr. 30, 2018
barge
|
|
Finance lease, number of cancellation events triggering early termination | event | 1 | |||
Finance lease, number of cancellation events | event | 4 | |||
CLECO POWER | ||||
Finance lease, principal interest | $ | $ 2.2 | $ 2.0 | $ 2.5 | |
Sublease income | $ | $ 1.7 | $ 0.5 | $ 0.3 | |
Maritime Equipment | CLECO POWER | ||||
Finance lease, number of leased assets | barge | 42 |
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2019 |
Dec. 31, 2018 |
Dec. 31, 2017 |
|
Net tax expense (benefit) of amortization of post-retirement benefit net losses | $ (6,808) | $ 1,868 | $ (2,764) |
CLECO POWER | |||
Net tax expense (benefit) of amortization of post-retirement benefit net losses | (3,408) | 968 | (296) |
Net tax expense (benefit) of net derivative gain (loss) | $ 90 | $ 90 | $ 132 |
Leases - Total Lease Costs (Details) $ in Thousands |
12 Months Ended |
---|---|
Dec. 31, 2019
USD ($)
| |
Finance lease cost | |
Amortization of ROU assets | $ 1,120 |
Interest on lease liabilities | 1,646 |
Operating lease cost | 4,528 |
Variable lease cost | 515 |
Total lease cost | 7,809 |
CLECO POWER | |
Finance lease cost | |
Amortization of ROU assets | 1,120 |
Interest on lease liabilities | 1,646 |
Operating lease cost | 4,303 |
Variable lease cost | 515 |
Total lease cost | $ 7,584 |
Intangible Assets, Intangible Liabilities, and Goodwill (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Finite-Lived Intangible Assets [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Amortization of Intangible Assets | Amortization of capitalized computer software costs charged to expense in Cleco and Cleco Power’s Consolidated Statements of Income for the years ending December 31, 2019, 2018, and 2017 is shown in the following tables:
The following tables present Cleco and Cleco Power’s amortization of intangible assets and liabilities:
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Intangible Assets Subject to Amortization | The following tables summarize the balances for intangible assets and liabilities subject to amortization for Cleco and Cleco Power:
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Expected Amortization Expense | The following table summarizes the amortization expense related to intangible assets and liabilities expected to be recognized in Cleco’s Consolidated Statements of Income:
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CLECO POWER | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Finite-Lived Intangible Assets [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Amortization of Intangible Assets |
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Intangible Assets Subject to Amortization |
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Disclosures about Segments (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information |
|
Litigation, Other Commitments and Contingencies, and Disclosures about Guarantees - Long-Term Purchase Obligations (Details) - USD ($) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2019 |
Dec. 31, 2018 |
Dec. 31, 2017 |
|
FUTURE PAYMENTS UNDER LONG-TERM PURCHASE OBLIGATIONS | |||
2020 | $ 89,490,000 | ||
2021 | 35,986,000 | ||
2022 | 19,311,000 | ||
2023 | 8,782,000 | ||
2024 | 9,829,000 | ||
Thereafter | 14,474,000 | ||
Total long-term purchase obligations | 177,872,000 | ||
Payments under long-term purchase obligations | 35,300,000 | $ 60,700,000 | $ 44,200,000 |
CLECO POWER | |||
FUTURE PAYMENTS UNDER LONG-TERM PURCHASE OBLIGATIONS | |||
2020 | 28,741,000 | ||
2021 | 29,832,000 | ||
2022 | 18,025,000 | ||
2023 | 7,751,000 | ||
2024 | 7,740,000 | ||
Thereafter | 13,242,000 | ||
Total long-term purchase obligations | 105,331,000 | ||
Payments under long-term purchase obligations | 94,800,000 | $ 70,500,000 | $ 47,000,000 |
Cleco Holdings | Purchase of coal, petroleum coke, limestone, entergy capacity and energy delivery facilities | |||
FUTURE PAYMENTS UNDER LONG-TERM PURCHASE OBLIGATIONS | |||
Total long-term purchase obligations | $ 0 |
Variable Interest Entities |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Variable Interest Entities |
Cleco and Cleco Power apply the equity method of accounting to report the investment in Oxbow in the consolidated financial statements. Under the equity method, the assets and liabilities of this entity are reported as Equity investment in investee on Cleco and Cleco Power’s Consolidated Balance Sheets. The revenue and expenses (excluding income taxes) of this entity are netted and reported as equity income or loss from investees on Cleco and Cleco Power’s Consolidated Statements of Income. Oxbow is owned 50% by Cleco Power and 50% by SWEPCO. Cleco Power is not the primary beneficiary because it shares the power to control Oxbow’s significant activities with SWEPCO. Cleco Power’s current assessment of its maximum exposure to loss related to Oxbow at December 31, 2019, consisted of its equity investment of $17.1 million. During 2019, Cleco Power received $1.1 million from Oxbow as a return of investment. The following table presents the components of Cleco Power’s equity investment in Oxbow:
The following table compares the carrying amount of Oxbow’s assets and liabilities with Cleco Power’s maximum exposure to loss related to its investment in Oxbow:
The following tables contain summarized financial information for Oxbow:
DHLC mines lignite reserves at Oxbow through the Amended Lignite Mining Agreement. The lignite reserves are intended to be used to provide fuel to the Dolet Hills Power Station. For more information on DHLC, see Note 15 — Litigation, Other Commitments and Contingencies, and Disclosures about Guarantees — Risks and Uncertainties.” Oxbow has no third-party agreements, guarantees, or other third-party commitments that contain obligations affecting Cleco Power’s investment in Oxbow. |
Accumulated Other Comprehensive Loss |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Loss |
The components of accumulated other comprehensive loss are summarized in the following tables for Cleco and Cleco Power. All amounts are reported net of income taxes. Amounts in parentheses indicate debits.
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Intangible Assets, Intangible Liabilities, and Goodwill - Intangible Assets Subject to Amortization (Details) - USD ($) $ in Thousands |
Dec. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | $ 259,698 | $ 160,798 |
Intangible liabilities, gross | 38,300 | 0 |
Net intangible assets carrying amount | 221,398 | 160,798 |
Accumulated amortization | (115,167) | (76,491) |
Net intangible assets subject to amortization | 106,231 | 84,307 |
Power supply agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible liabilities, gross | 14,200 | 0 |
LTSA | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible liabilities, gross | $ 24,100 | $ 0 |
Disclosures about Segments (Details) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2019
USD ($)
|
Sep. 30, 2019
USD ($)
|
Jun. 30, 2019
USD ($)
|
Mar. 31, 2019
USD ($)
|
Dec. 31, 2018
USD ($)
|
Sep. 30, 2018
USD ($)
|
Jun. 30, 2018
USD ($)
|
Mar. 31, 2018
USD ($)
|
Dec. 31, 2019
USD ($)
reporting_unit
|
Dec. 31, 2018
USD ($)
|
Dec. 31, 2017
USD ($)
|
|
Revenue | |||||||||||
Electric operations | $ 1,496,736 | $ 1,181,907 | $ 1,097,632 | ||||||||
Other operations | 182,832 | 82,332 | 79,580 | ||||||||
Affiliate revenue | 0 | 0 | 0 | ||||||||
Electric customer credits | (39,963) | (33,195) | (1,566) | ||||||||
Operating revenue, net | $ 409,575 | $ 487,971 | $ 397,873 | $ 344,186 | $ 296,767 | $ 358,256 | $ 299,261 | $ 276,760 | 1,639,605 | 1,231,044 | 1,175,646 |
Depreciation and amortization | 216,320 | 170,414 | 166,854 | ||||||||
Merger transaction and commitment costs | 7,668 | 19,514 | 5,152 | ||||||||
Interest income | 6,090 | 6,073 | 1,424 | ||||||||
Interest charges | 141,309 | 126,642 | 122,913 | ||||||||
Federal and state income tax expense (benefit) | 43,165 | 29,382 | 7,079 | ||||||||
Net income | 31,797 | $ 55,565 | $ 44,746 | $ 20,557 | 10,377 | $ 47,360 | $ 25,839 | $ 10,861 | 152,665 | 94,437 | 138,080 |
Additions to property, plant, and equipment | 323,791 | 291,061 | 236,932 | ||||||||
Equity investment in investee | 17,072 | 18,172 | 17,072 | 18,172 | 18,172 | ||||||
Goodwill | 1,490,797 | 1,490,797 | 1,490,797 | 1,490,797 | 1,490,797 | ||||||
Total segment assets | 7,476,298 | 6,436,814 | $ 7,476,298 | 6,436,814 | 6,278,382 | ||||||
CLECO POWER | |||||||||||
Revenue | |||||||||||
Number of reporting units | reporting_unit | 1 | ||||||||||
Operating Segments | CLECO POWER | |||||||||||
Revenue | |||||||||||
Electric operations | $ 1,130,928 | 1,191,587 | 1,108,389 | ||||||||
Other operations | 72,833 | 82,330 | 77,522 | ||||||||
Affiliate revenue | 3,125 | 874 | 851 | ||||||||
Electric customer credits | (38,516) | (33,195) | (1,566) | ||||||||
Operating revenue, net | 1,168,370 | 1,241,596 | 1,185,196 | ||||||||
Depreciation and amortization | 172,471 | 162,069 | 158,415 | ||||||||
Merger transaction and commitment costs | 0 | 0 | 0 | ||||||||
Interest income | 4,744 | 5,052 | 1,283 | ||||||||
Interest charges | 71,279 | 71,303 | 69,362 | ||||||||
Federal and state income tax expense (benefit) | 55,924 | 67,331 | |||||||||
Net income | 148,262 | 162,257 | 150,738 | ||||||||
Additions to property, plant, and equipment | 313,962 | 289,153 | 235,252 | ||||||||
Equity investment in investee | 17,072 | 18,172 | 17,072 | 18,172 | 18,172 | ||||||
Goodwill | 1,490,797 | 1,490,797 | 1,490,797 | 1,490,797 | 1,490,797 | ||||||
Total segment assets | 5,967,327 | 5,839,853 | 5,967,327 | 5,839,853 | 5,679,538 | ||||||
Operating Segments | Cleco Cajun | |||||||||||
Revenue | |||||||||||
Electric operations | 375,489 | ||||||||||
Other operations | 117,468 | ||||||||||
Affiliate revenue | 108 | ||||||||||
Electric customer credits | (1,447) | ||||||||||
Operating revenue, net | 491,618 | ||||||||||
Depreciation and amortization | 35,544 | ||||||||||
Merger transaction and commitment costs | 0 | ||||||||||
Interest income | 987 | ||||||||||
Interest charges | 35 | ||||||||||
Net income | 69,411 | ||||||||||
Additions to property, plant, and equipment | 9,174 | ||||||||||
Equity investment in investee | 0 | 0 | |||||||||
Goodwill | 0 | 0 | |||||||||
Total segment assets | 1,011,591 | 1,011,591 | |||||||||
Other | |||||||||||
Revenue | |||||||||||
Electric operations | (9,680) | (9,680) | (10,757) | ||||||||
Other operations | 2 | 2 | 2,058 | ||||||||
Affiliate revenue | 109,067 | 74,591 | 57,168 | ||||||||
Electric customer credits | 0 | 0 | 0 | ||||||||
Operating revenue, net | 99,389 | 64,913 | 48,469 | ||||||||
Depreciation and amortization | 8,305 | 8,344 | 8,439 | ||||||||
Merger transaction and commitment costs | 7,668 | 19,514 | 5,445 | ||||||||
Interest income | 974 | 1,338 | 316 | ||||||||
Interest charges | 70,611 | 55,659 | 53,725 | ||||||||
Federal and state income tax expense (benefit) | (26,541) | (60,252) | |||||||||
Net income | (65,009) | (67,819) | (12,659) | ||||||||
Additions to property, plant, and equipment | 655 | 1,908 | 1,680 | ||||||||
Equity investment in investee | 0 | 0 | 0 | 0 | 0 | ||||||
Goodwill | 0 | 0 | 0 | 0 | 0 | ||||||
Total segment assets | 546,096 | 633,756 | 546,096 | 633,756 | 619,943 | ||||||
Eliminations | |||||||||||
Revenue | |||||||||||
Electric operations | (1) | 0 | 0 | ||||||||
Other operations | (7,471) | 0 | 0 | ||||||||
Affiliate revenue | (112,300) | (75,465) | (58,019) | ||||||||
Electric customer credits | 0 | 0 | 0 | ||||||||
Operating revenue, net | (119,772) | (75,465) | (58,019) | ||||||||
Depreciation and amortization | 0 | 1 | 0 | ||||||||
Merger transaction and commitment costs | 0 | 0 | (293) | ||||||||
Interest income | (615) | (317) | (175) | ||||||||
Interest charges | (616) | (320) | (174) | ||||||||
Federal and state income tax expense (benefit) | (1) | 0 | |||||||||
Net income | 1 | (1) | 1 | ||||||||
Additions to property, plant, and equipment | 0 | 0 | 0 | ||||||||
Equity investment in investee | 0 | 0 | 0 | 0 | 0 | ||||||
Goodwill | 0 | 0 | 0 | 0 | 0 | ||||||
Total segment assets | $ (48,716) | $ (36,795) | $ (48,716) | $ (36,795) | $ (21,099) |
Regulatory Assets and Liabilities (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Regulatory Assets and Liabilities [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Regulatory Assets | The following table summarizes Cleco’s net regulatory assets and liabilities:
(1)Cleco regulatory assets include acquisition accounting adjustments as a result of the 2016 Merger. |
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Schedule of Regulatory Liabilities | The following table summarizes Cleco’s net regulatory assets and liabilities:
(1)Cleco regulatory assets include acquisition accounting adjustments as a result of the 2016 Merger. |
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CLECO POWER | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Regulatory Assets and Liabilities [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Regulatory Assets | The following table summarizes Cleco Power’s regulatory assets and liabilities:
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Schedule of Regulatory Liabilities | The following table summarizes Cleco Power’s regulatory assets and liabilities:
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Summary of Significant Accounting Policies (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of Computer Software | Amortization of capitalized computer software costs charged to expense in Cleco and Cleco Power’s Consolidated Statements of Income for the years ending December 31, 2019, 2018, and 2017 is shown in the following tables:
The following tables present Cleco and Cleco Power’s amortization of intangible assets and liabilities:
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Property, Plant, and Equipment | Depreciation on all other property, plant, and equipment is calculated primarily on a straight-line basis over the useful lives of the assets. The following table presents the useful lives of depreciable assets for Cleco and Cleco Power:
At December 31, 2019, and 2018, Cleco and Cleco Power’s property, plant, and equipment consisted of the following:
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Restricted Cash and Cash Equivalents | Cleco and Cleco Power’s restricted cash and cash equivalents consisted of:
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CLECO POWER | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of Computer Software |
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Property, Plant, and Equipment |
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Restricted Cash and Cash Equivalents |
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Summary of Significant Accounting Policies |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Significant Accounting Policies |
Use of Estimates The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Principles of Consolidation The accompanying consolidated financial statements of Cleco include the accounts of Cleco and its majority-owned subsidiaries after elimination of intercompany accounts and transactions. Cleco’s consolidated financial statements include the financial results of Cleco Cajun from the closing of the Cleco Cajun Transaction on February 4, 2019, through December 31, 2019. For more information on the Cleco Cajun Transaction, see Note 3 — “Business Combinations.” Goodwill Goodwill is the excess of the purchase price (consideration transferred and liabilities assumed) over the estimated fair value of net assets of the acquired business and is not subject to amortization. Goodwill is assessed annually or more often if an event occurs or circumstances change that would indicate the carrying amount may be impaired. For more information on goodwill, see Note 17 — “Intangible Assets, Intangible Liabilities, and Goodwill.” Intangible Assets and Liabilities Intangible assets include Cleco Katrina/Rita’s right to bill and collect storm recovery charges, fair value adjustments for long-term wholesale power supply agreements as well as a fair value adjustment for the valuation of the Cleco trade name. Intangible liabilities also include fair value adjustments for long-term wholesale power supply agreements and a fair value adjustment for the LTSA assumed for maintenance services related to the Cottonwood Plant. The intangible assets and liabilities are being amortized over their estimated useful lives in a manner that best reflects the economic impact derived from such assets and liabilities. Impairment will be tested if there are events or circumstances that indicate that an impairment analysis should be performed. If such an event or circumstance occurs, intangible impairment testing will be performed prior to goodwill impairment testing. Impairment is calculated as the excess of the asset and liabilities’ respective carrying amounts over their respective fair values. For more information on intangible assets and liabilities, see Note 17 — “Intangible Assets, Intangible Liabilities, and Goodwill.” Statements of Cash Flows Cleco and Cleco Power’s Consolidated Statements of Cash Flows are prepared using the indirect method. This method requires adjusting net income to remove the effects of all deferrals and accruals of operating cash receipts and payments and to remove items whose cash effects are related to investing and financing cash flows. Derivatives meeting the definition of an accounting hedge are classified in the same category as the item being hedged. Regulation Cleco Power is subject to regulation by FERC and the LPSC. Cleco Cajun is subject to regulation by FERC. Cleco complies with the accounting policies and practices prescribed by its regulatory commissions. Cleco Power’s retail rates are regulated by the LPSC. Cleco and Cleco Cajun’s rates for transmission services are regulated by FERC. Rates for wholesale power sales are based on market-based rates, pending FERC review of Cleco’s generation market power analysis. Cleco Power capitalizes or defers certain costs for recovery from its customers and recognizes a liability for amounts expected to be returned to its customers based on regulatory approval and management’s ongoing assessment that it is probable these items will be recovered through the ratemaking process. Regulatory assets and liabilities are amortized consistent with the treatment of the related cost in the ratemaking process. Pursuant to this regulatory approval, Cleco has recorded regulatory assets and liabilities. Any future plan adopted by the LPSC for purposes of transitioning utilities from LPSC regulation to retail competition may affect the regulatory assets and liabilities recorded by Cleco if the criteria for the application of the authoritative guidelines for industry regulated operations cannot continue to be met. At this time, Cleco cannot predict whether any legislation or regulation affecting Cleco will be enacted or adopted and, if enacted, what form such legislation or regulation may take. For more information regarding the regulatory assets and liabilities recorded by Cleco Power, see Note 6 — “Regulatory Assets and Liabilities.” AROs Cleco and Cleco Power recognize an ARO when there is a legal obligation under existing or enacted law, statute, written or oral contract, or by legal construction under the doctrine of promissory estoppel to incur costs to remove an asset when the asset is retired. These guidelines also require an ARO which is conditional on a future event to be recorded even if the event has not yet occurred. Cleco and Cleco Power recognize AROs at the present value of the projected liability in the period in which it is incurred, if a reasonable estimate of fair value can be made. The liability is accreted to its present value each accounting period. Cleco Power defers this accretion as a regulatory asset based on its determination that these costs can be collected from customers. Concurrent with the recognition of the liability, Cleco and Cleco Power capitalize these costs to the related property, plant, and equipment asset. These capitalized costs are depreciated over the same period as the related property asset. Cleco Power also defers the current depreciation of the asset retirement cost as a regulatory asset. As part of the Cleco Cajun Transaction, Cleco recognized $15.3 million of AROs primarily related to the retirement of Cleco Cajun’s ash management areas. At December 31, 2019, management’s analysis confirmed that no additional adjustments were needed to update Cleco or Cleco Power’s ARO balance. For more information on Cleco Power’s current AROs, see Note 6 — “Regulatory Assets and Liabilities — AROs.” Property, Plant, and Equipment Property, plant, and equipment consists primarily of utility generation and energy transmission and distribution assets. Assets utilized primarily for retail and wholesale operations and electric transmission and distribution are stated at the cost of construction, which includes certain materials, labor, payroll taxes and benefits, administrative and general costs, and the estimated cost of funds used during construction. Jointly owned assets are reflected in property, plant, and equipment at Cleco Power’s and Cleco Cajun’s share of the cost to construct or purchase the respective assets. For information on jointly owned assets, see Note 7 — “Jointly Owned Generation Units.” At the date of the 2016 Merger, Cleco’s gross balance of fixed depreciable assets was adjusted to be net of accumulated depreciation, as no accumulated depreciation existed on such date. Since pushdown accounting was not elected at the Cleco Power level, Cleco Power retained its accumulated depreciation. Cleco’s cost of improvements to property, plant, and equipment is capitalized. Costs associated with repairs and major maintenance projects are expensed as incurred. Cleco capitalizes the cost to purchase or develop software for internal use. On August 1, 2019, Cleco and Cleco Power began amortizing the computer software related to the START project. The amounts of unamortized computer software costs on Cleco’s Consolidated Balance Sheets at December 31, 2019, and 2018 were $168.6 million and $7.2 million, respectively. The amounts of unamortized computer software costs on Cleco Power’s Consolidated Balance Sheets at December 31, 2019, and 2018 were $166.2 million and $5.8 million, respectively. Amortization of capitalized computer software costs charged to expense in Cleco and Cleco Power’s Consolidated Statements of Income for the years ending December 31, 2019, 2018, and 2017 is shown in the following tables:
Upon retirement or disposition, the cost of Cleco Power and Cleco Cajun’s depreciable plant and the cost of removal, net of salvage value, are charged to accumulated depreciation. For Cleco’s other subsidiaries, upon disposition or retirement of depreciable assets, the difference between the net book value of the property and any proceeds received for the property is recorded as a gain or loss on asset disposition on Cleco’s Consolidated Statements of Income. Any cost incurred to remove the asset is charged to expense. Cleco Cajun’s depreciation on property, plant, and equipment is calculated primarily on a composite basis over the useful lives of the assets. Depreciation on all other property, plant, and equipment is calculated primarily on a straight-line basis over the useful lives of the assets. The following table presents the useful lives of depreciable assets for Cleco and Cleco Power:
At December 31, 2019, and 2018, Cleco and Cleco Power’s property, plant, and equipment consisted of the following:
On February 4, 2019, Cleco acquired $741.2 million of unregulated property, plant, and equipment as a result of the Cleco Cajun Transaction. These assets were recorded at fair market value at the date of the acquisition. For more information on the Cleco Cajun Transaction, see Note 3 — “Business Combinations.” During 2019, Cleco Power’s regulated utility property, plant, and equipment increased primarily due to the in-service of the START project, St. Mary Clean Energy Center project, Terrebonne to Bayou Vista Transmission project, Coughlin Pipeline project, and general installation and rehabilitation of transmission, distribution, and generation assets. Deferred Project Costs Cleco Power defers costs related to the initial stage of a construction project during which time the feasibility of the construction of property, plant, and equipment is being investigated. At December 31, 2019, and 2018, Cleco Power had deferred $1.4 million, for projects that are in the initial stages of development. These amounts are classified as Other deferred charges on Cleco Power’s Consolidated Balance Sheets. Fuel Inventory and Materials and Supplies Fuel inventory consists primarily of petroleum coke, coal, limestone, lignite, and natural gas used to generate electricity. Materials and supplies consists of transmission and distribution line construction and repair materials. It also consists of generating station and transmission and distribution substation repair materials. Both fuel inventory and materials and supplies are recorded at the lower of cost or market value using the average cost method and are issued from stock using the average cost of existing stock. Materials and supplies are recorded when purchased and subsequently charged to expense or capitalized to property, plant, and equipment when installed. Accounts Receivable Accounts receivable are recorded at the invoiced amount and do not bear interest. It is the policy of management to review the outstanding accounts receivable monthly, as well as the bad debt write-offs experienced in the past, and establish an allowance for doubtful accounts. Account balances are charged off against the allowance when management determines it is probable the receivable will not be recovered. Reserves Cleco maintains property insurance on generating stations, buildings and contents, and substations. Cleco is self-insured for any damage to its power lines. To mitigate the exposure to potential financial loss for damage to lines, Cleco Power maintains an LPSC-approved funded storm reserve. Cleco also maintains liability and workers’ compensation insurance to mitigate financial losses due to injuries and damages to the property of others. Cleco’s insurance covers claims that exceed certain self-insured limits. For claims within certain self-insured limits, Cleco maintains reserves. At December 31, 2019, and 2018, the general liability and workers compensation reserves together were $4.3 million and $4.8 million, respectively. Additionally, Cleco maintains directors and officers insurance to protect managers from claims which may arise from their decisions and actions taken within the scope of their regular duties. Cash Equivalents Cleco considers highly liquid, marketable securities, and other similar instruments with original maturity dates of three months or less to be cash equivalents. Restricted Cash and Cash Equivalents Various agreements to which Cleco is subject contain covenants that restrict its use of cash. As certain provisions under these agreements are met, cash is transferred out of related escrow accounts and becomes available for its intended purposes and/or general company purposes. Cleco and Cleco Power’s restricted cash and cash equivalents consisted of:
Cleco Katrina/Rita has the right to bill and collect storm restoration costs from Cleco Power’s customers. As cash is collected, it is restricted for payment of administration fees, interest, and principal on storm recovery bonds. During 2019, Cleco Katrina/Rita collected $22.2 million net of administration fees and remitted $20.6 million for scheduled storm recovery bond principal payments and $1.5 million for related interest payments. As part of the Cleco Cajun Transaction, Cleco acquired restricted cash of $0.7 million to be used by Cleco Cajun’s cooperative customers for defense funds in the event of potential takeovers. There is no further obligation of Cleco with respect to such expenses, including the replenishment of the fund. Equity Investments Cleco and Cleco Power account for investments in unconsolidated affiliated companies using the equity method of accounting. The amounts reported on Cleco and Cleco Power’s Consolidated Balance Sheets represent assets contributed by Cleco or Cleco Power, plus their share of the net income of the affiliate, less any distributions of earnings (dividends) received from the affiliate. The revenues and expenses (excluding income taxes) of these affiliates are netted and reported on one line item as equity income from investees on Cleco and Cleco Power’s Consolidated Statements of Income. Cleco evaluates for impairments of equity method investments at each balance sheet date to determine if events and circumstances have occurred that indicate a possible other-than-temporary decline in the fair value of the investment and the possible inability to recover the carrying value through operations. Cleco uses estimates of the future cash flows from the investee and observable market transactions in order to calculate fair value and recoverability. An impairment is recognized when an other-than-temporary decline in market value occurs and recovery of the carrying value is not probable. There were no impairments recorded for 2019, 2018, or 2017. For more information on Cleco’s equity investments, see Note 14 — “Variable Interest Entities.” Income Taxes Cleco accounts for income taxes under the asset and liability method. Cleco provides for federal and state income taxes currently payable, as well as for those deferred due to timing differences between reporting income and expenses for financial statement purposes versus tax purposes. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted income tax rates expected to be applied to taxable income in the years in which those temporary differences are expected to be recovered or settled. Deferred tax assets and liabilities are classified as non-current on Cleco and Cleco Power’s Consolidated Balance Sheets. Cleco’s income tax expense and related regulatory assets and liabilities could be affected by changes in its assumptions and estimates and by ultimate resolution of assumptions and estimates with taxing authorities. Cleco Group files a federal income tax return for all wholly owned subsidiaries. Cleco Power computes its federal and state income taxes as if it were a stand-alone taxpayer. The LPSC generally requires Cleco Power to flow the effects of state income taxes to customers. For more information on income taxes, see Note 11 — “Income Taxes.” Investment Tax Credits Investment tax credits, which were deferred for financial statement purposes, are amortized as a reduction to income tax expense over the estimated service lives of the properties that gave rise to the credits. Debt Issuance Costs, Premiums, and Discounts Issuance costs, premiums, and discounts applicable to debt securities are amortized to interest expense ratably over the lives of the related issuances. Expenses and call premiums related to refinanced Cleco Power debt are deferred and amortized over the life of the new issuance. Debt issuance costs, premiums, and discounts are presented as a direct deduction from the carrying value of the related debt liability. Revenue and Fuel Costs Utility Revenue Revenue from sales of electricity is recognized when the service is provided. The costs of fuel and purchased power used for Cleco Power’s retail customers currently are recovered from its customers through Cleco Power’s FAC. These costs are subject to audit and final determination by regulators. Excise taxes and pass-through fees collected on the sale of electricity are not recorded in utility revenue. Unbilled Revenue Cleco Power accrues estimated revenue monthly for energy used by customers but not yet billed. The monthly estimated unbilled revenue amounts are recorded as unbilled revenue and a receivable. Cleco Power uses actual customer energy consumption data available from AMI to calculate unbilled revenues. Other Operations Revenue Other operations revenue is recognized at the time products or services are provided to and accepted by customers, and collectability is reasonably assured. Sales/Excise Taxes Cleco collects a sales and use tax on the sale of electricity that subsequently is remitted to the state in accordance with state law. These amounts are not recorded as income or expense on Cleco and Cleco Power’s Consolidated Statements of Income but are reflected at gross amounts on Cleco and Cleco Power’s Consolidated Balance Sheets as a receivable until the tax is collected and as a payable until the liability is paid. Cleco currently does not have any excise taxes reflected on its income statement. Franchise Fees Cleco Power collects a consumer fee for one of its franchise agreements. This fee is not recorded on Cleco and Cleco Power’s Consolidated Statements of Income as revenue and expense, but is reflected at gross amounts on Cleco and Cleco Power’s Consolidated Balance Sheets as a receivable until it is collected and as a payable until the liability is paid. AFUDC The capitalization of AFUDC by Cleco Power is a utility accounting practice prescribed by FERC and the LPSC. AFUDC represents the estimated debt and equity costs of capital funds that are necessary to finance construction of new and existing facilities. While cash is not realized currently from such allowance, AFUDC increases the revenue requirement over the same life of the plant through a higher rate base and higher depreciation. Under regulatory practices, a return on and recovery of AFUDC is permitted in setting rates charged for utility services. The composite AFUDC rate, including borrowed and other funds, was 10.71% on a pretax basis (8.37% net of tax) for 2019, 9.58% on a pretax basis (7.08% net of tax) for 2018, and 11.07% on a pretax basis (6.81% net of tax) for 2017. Fair Value Measurements and Disclosures Various accounting pronouncements require certain assets and liabilities to be measured at their fair values. Some assets and liabilities are required to be measured at their fair value each reporting period, while others are required to be measured only one time, generally the date of acquisition or debt issuance. Cleco and Cleco Power disclose the fair value of certain assets and liabilities by one of three levels when required for recognition purposes. For more information about fair value levels, see Note 8 — “Fair Value Accounting.” Derivatives and Other Risk Management Activity Cleco’s Energy Market Risk Management Policy authorizes hedging of commodity price risk with physical or financially settled derivative instruments. Some of these contracts may qualify for the normal purchase, normal sale (NPNS) exception under derivative accounting guidance. Contracts that do not qualify for NPNS accounting treatment or are not elected for NPNS accounting treatment are marked-to-market and recorded on the balance sheet at their fair value. Cleco Power and Cleco Cajun are awarded and/or purchase FTRs in auctions facilitated by MISO. The majority of these FTRs are purchased in annual auctions during the second quarter, but additional FTRs may be purchased in monthly auctions. FTRs represent economic hedges of future congestion charges that will be incurred in serving customer load. FTRs are derivatives not designated as hedging instruments for accounting purposes. Cleco Power’s FTRs are marked-to-market with the resulting unrealized gains or losses deferred as a component of deferred fuel assets or liabilities in accordance with regulatory policy. At settlement, realized gains or losses are included in the FAC and reflected on customers’ bills as a component of the fuel charge. Cleco Cajun’s FTRs are marked-to-market with the resulting unrealized gains and losses recorded on the income statement as a component of purchased power expense. At settlement, realized gains or losses are also recorded on the income statement as a component of purchased power expense. Cleco Cajun entered into other commodity derivative contracts during 2019. Management did not elect to apply hedge accounting to these contracts as allowed under applicable accounting standards. When these contracts are marked-to-market, the resulting unrealized gain or loss is recorded on the income statement as a component of fuel expense. At settlement, realized gains or losses are also recorded on the income statement as a component of fuel expense. For more information on FTRs and other commodity derivatives, see Note 8 — “Fair Value Accounting — Commodity Contracts.” Cleco may also enter into contracts to mitigate the volatility in interest rate risk. These contracts include, but are not limited to, interest rate swaps and treasury rate locks. For each reporting period presented, the Registrants did not enter into any contracts to mitigate the volatility in interest rate risk. Accounting for MISO Transactions Cleco Power and Cleco Cajun participate in MISO’s Energy and Operating Reserve market where sales and purchases are netted hourly. If the hourly activity nets to sales, the result is reported in Electric operations on Cleco and Cleco Power’s Consolidated Statements of Income. If the hourly activity nets to purchases, the result is reported in Purchased power on Cleco and Cleco Power’s Consolidated Statements of Income. Leases Cleco accounts for leases in accordance with accounting guidance effective January 1, 2019. For more information on this guidance, see — “Recent Authoritative Guidance.” Cleco determines if a contract is a lease at its inception. If a contract is determined to be a lease, Cleco recognizes a ROU asset and lease liability at the commencement date based on the present value of lease payments over the lease term. The present value of the lease payments is determined by using the implicit interest rate if readily determinable. Cleco’s incremental borrowing rate for a term similar to the duration of the lease based on information available at the commencement date is used if the implicit interest rate is not readily determinable. Cleco recognizes ROU assets and lease liabilities for leasing arrangements with terms greater than one year. Except for the marine transportation asset class, Cleco accounts for lease and non-lease components in a contract as a single lease component for all classes of underlying assets. Cleco’s marine transportation contracts, which include barges and towboats, contain non-lease components, such as maintenance and labor. Cleco allocates the consideration in these contracts between lease and non-lease components based on estimates of fair value from third parties that typically execute leases for this class of assets. Expense for a lessee operating lease is recognized as a single lease cost on a straight-line basis over the lease term and reflected in the appropriate income statement line item based on the leased asset’s function. Income for a lessor operating lease is recognized as a single lease income item on a straight-line basis over the lease term and reflected in the appropriate income statement line item based on the lease asset’s function. Recent Authoritative Guidance In February 2016, FASB amended the guidance to account for leases. Effective January 1, 2019, Cleco adopted the amended guidance using the optional transition method that allows an entity to recognize a cumulative-effect adjustment to the opening balance of retained earnings at the date of adoption, apply the new disclosure requirements beginning in the period of adoption, and continue to present comparative period information as required under previous guidance. In addition, Cleco elected the transition practical expedient that permits an entity to not reassess prior conclusions about lease identification, lease classification, and initial direct costs under the new standard, as well as the practical expedient that permits entities to not assess existing land easements under the new standard. Adoption of this standard resulted in the recognition of ROU assets and lease liabilities for Cleco and Cleco Power’s operating leases of $16.1 million and $15.9 million, respectively. There was no impact to retained earnings as a result of adopting this standard. Adoption of this standard did not materially impact the Registrants’ results of operations or liquidity, and their accounting for finance leases is substantially unchanged. For more information on Cleco’s lease obligations, see Note 4 — “Leases.” In June 2016, FASB amended the guidance for the measurement of credit losses on receivables and certain other assets. The guidance requires use of a current expected loss model, which may result in earlier recognition of credit losses. The adoption of this guidance is effective for fiscal years beginning after December 15, 2019, including interim periods within those years. Management does not expect this guidance to have a significant impact on the results of operations, financial condition, or cash flows of the Registrants. In August 2018, FASB issued guidance that allows for the deferral of certain implementation costs incurred in a cloud computing arrangement. The adoption of this guidance is effective for annual reporting periods beginning after December 15, 2019, including interim periods within those years. Early adoption is permitted. Management does not expect this guidance to have significant impact on the results of operations, financial condition, or cash flows of the Registrants. |
Regulatory Assets and Liabilities |
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Regulatory Assets and Liabilities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Regulatory Assets and Liabilities |
Cleco Power capitalizes or defers certain costs for recovery from customers and recognizes a liability for amounts expected to be returned to customers based on regulatory approval and management’s ongoing assessment that it is probable these items will be recovered or refunded through the ratemaking process. Under the current regulatory environment, Cleco Power believes these regulatory assets will be fully recoverable; however, if in the future, as a result of regulatory changes or competition, Cleco Power’s ability to recover these regulatory assets would no longer be probable, then to the extent that such regulatory assets were determined not to be recoverable, Cleco Power would be required to write-down such assets. In addition, potential deregulation of the industry or possible future changes in the method of rate regulation of Cleco Power could require discontinuance of the application of the authoritative guidance of regulated operations. The following table summarizes Cleco Power’s regulatory assets and liabilities:
The following table summarizes Cleco’s net regulatory assets and liabilities:
(1)Cleco regulatory assets include acquisition accounting adjustments as a result of the 2016 Merger. Income Taxes The regulatory assets and liabilities recorded for deferred income taxes represent the effect of tax benefits or detriments that must be flowed through to customers as they are received or paid. The amounts deferred are attributable to differences between book and tax recovery periods. In 2017, the President signed the TCJA. Changes in the IRC, as amended, from the TCJA, had a material impact on the Registrants’ financial statements in 2017. Tax effects of changes in tax laws must be recognized in the period in which the law is enacted. Also, deferred tax assets and liabilities must be measured at the enacted tax rate expected to apply when temporary differences are to be realized or settled. In 2017, Cleco and Cleco Power made an estimate for the remeasurement of ADIT based upon the new tax rate, which resulted in a provisional regulatory liability of $348.6 million. During the fourth quarter of 2018, Cleco Power recorded the final remeasurements, which resulted in an additional regulatory liability of $26.4 million for a total of $375.0 million at December 31, 2018. No additional regulatory liability was accrued at December 31, 2019. For more information on the status of the TCJA regulatory liability, see Note 13 — “Regulation and Rates — TCJA.” Mining Costs Cleco Power operates a generating unit jointly owned with SWEPCO that uses lignite as its primary fuel source. Cleco Power, along with SWEPCO, maintains a lignite mining agreement with DHLC, the operator of the Dolet Hills Mine. As ordered by the LPSC, Cleco Power’s retail customers received fuel cost savings through the year 2011, while actual mining costs above a certain percentage of the benchmark price were deferred. These deferred costs could be recovered from retail customers through the FAC only when the actual mining costs were below a certain percentage of the benchmark price. In 2006, Cleco Power recognized that there was a possibility it may not recover all or part of the lignite mining costs it had deferred and sought relief from the LPSC. In 2007, the LPSC approved a settlement agreement between Cleco Power, SWEPCO, and the LPSC Staff authorizing Cleco Power to recover the existing deferred mining cost balance, including interest, over 11.5 years. In connection with its 2009 approval of the Oxbow Lignite Mine acquisition, the LPSC agreed to discontinue benchmarking and the corresponding potential to defer future lignite mining costs while preserving the previously authorized recovery of the legacy deferred fuel balance. At June 30, 2019, Cleco Power had fully recovered the existing deferred mining costs, plus interest. Interest Costs Cleco Power’s deferred interest costs include additional deferred capital construction financing costs authorized by the LPSC. These costs are being amortized over the estimated lives of the respective assets. AROs Cleco Power recorded an ARO liability for the retirement of certain ash disposal facilities. The ARO regulatory asset represents the accretion of the ARO liability and the depreciation of the related assets. For more information on the accounting treatment of Cleco Power’s AROs, see Note 2 — “Summary of Significant Accounting Policies — AROs.” Postretirement Costs Cleco Power recognizes the funded status of its postretirement benefit plans as a net liability or asset. The net liability or asset is defined as the difference between the benefit obligation and the fair market value of plan assets. For defined benefit pension plans, the benefit obligation is the projected benefit obligation. Historically, the LPSC has allowed Cleco Power to recover pension plan expense. Cleco Power, therefore, recognizes a regulatory asset based on its determination that these costs can be collected from customers. These costs are amortized to pension expense over the average service life of the remaining plan participants (approximately eight years as of December 31, 2019, for Cleco’s plan) when it exceeds certain thresholds. The amount and timing of the recovery will be based on the changing funded status of the pension plan in future periods. For more information on Cleco’s pension plan and adoption of these authoritative guidelines, see Note 10 — “Pension Plan and Employee Benefits.” Tree Trimming Costs In October 2016, the LPSC approved Cleco Power to defer and recover through its base rates tree trimming costs. The LPSC authorized a deferral up to $10.9 million, excluding debt carrying costs. Cleco Power is currently collecting deferred tree trimming costs through its base rates and expects to be fully amortized by 2026. Training Costs In 2008, the LPSC approved Cleco Power’s request to establish a regulatory asset for training costs associated with existing processes and technology for new employees at Madison Unit 3. Recovery of these expenditures was approved by the LPSC in 2009. In 2010, Cleco Power began amortizing the regulatory asset over a 50-year period. Surcredits, Net Cleco Power has recorded surcredits as the result of a settlement with the LPSC that addressed, among other things, the recovery of the storm damages related to hurricanes and uncertain tax positions. In the settlement, Cleco Power was required to implement surcredits to provide ratepayers with the economic benefit of the carrying charges of certain ADIT liabilities at a rate of return which was set by the LPSC. The settlement, through a true-up mechanism, allows the surcredits to be adjusted to reflect the actual tax deductions allowed by the IRS. Cleco Power recorded a true-up to the surcredits to reflect the actual tax deductions allowed by the IRS for storm damages and uncertain tax positions. As a result of the true-ups, Cleco Power recorded a regulatory asset that represents excess surcredits refunded to customers that were collected from ratepayers and amortized over a four-year period, through June 2018. Cleco Power began collecting the balance as part of the July 1, 2019, FRP rate adjustment. AMI Deferred Revenue Requirement In February 2011, the LPSC approved Cleco Power’s stipulated settlement in Docket No. U-31393 allowing Cleco Power to defer the estimated revenue requirements for the AMI project as a regulatory asset. In June 2014, the LPSC approved Cleco Power’s recovery of the AMI regulatory asset over the average life of the AMI meters, or 11 years. In July 2014, Cleco Power began recovering the AMI deferred revenue requirement. Emergency Declarations In August 2016, the LPSC issued emergency declaration executive orders following flooding events in south Louisiana which prohibited public utilities from disconnecting or charging late fees to customers for non-payment in affected parishes. In January 2017, the LPSC issued an order that terminated the executive orders effective March 1, 2017, and allowed public utilities to formally petition the LPSC to recover lost revenues as a result of the executive orders. In July 2017, Cleco Power began recovering lost revenues associated with the flooding events and expects the regulatory assets to be fully amortized by June 2021. Production Operations and Maintenance Expenses Annually, Cleco Power is allowed to defer, as a regulatory asset, production operations and maintenance expenses, net of fuel and payroll, above the retail jurisdictional portion of $45.0 million, adjusted annually for a growth factor (deferral threshold). The amount of the regulatory asset is capped at $23.0 million. The LPSC allows Cleco Power to recover the amount deferred in any calendar year over the following three-year regulatory period, beginning on July 1, when the annual rates are set. Cleco Power had no deferral in 2019. In December 2018, Cleco Power deferred $8.0 million as a regulatory asset. AFUDC Equity Gross-Up Cleco Power capitalizes equity AFUDC as a cost component of construction projects. Cleco Power has recorded a regulatory asset to recover the tax gross-up related to the equity component of AFUDC. These costs are being amortized over the estimated lives of the respective assets constructed. Acadia Unit 1 Acquisition Costs In 2009, the LPSC approved Cleco Power’s request to establish a regulatory asset for costs incurred as a result of the acquisition by Cleco Power of Acadia Unit 1 and half of Acadia Power Station’s related common facilities. The Acadia Unit 1 acquisition costs are being recovered over a 30-year period beginning February 2010. Financing Costs In 2011, Cleco Power entered into and settled two treasury rate locks. Of the $26.8 million in settlements, $7.4 million was deferred as a regulatory asset relating to ineffectiveness of the hedge relationships. Also in 2011, Cleco Power entered into a forward starting swap contract. These derivatives were entered into in order to mitigate the interest rate exposure on coupon payments related to forecasted debt issuances. In May 2013, the forward starting interest rate swap was settled at a loss of $3.3 million. Cleco Power deferred $2.9 million of the losses as a regulatory asset, which is being amortized over the terms of the related debt issuances. Coughlin Transaction Costs In January 2014, the LPSC authorized Cleco Power to create a regulatory asset for the transaction costs related to the transfer of Coughlin from Evangeline to Cleco Power. The Coughlin transaction costs are being recovered over a 35-year period beginning July 2014. Corporate Franchise Tax, Net As part of the FRP extension approved by the LPSC in June 2014, Cleco Power was authorized to recover through a rider the retail portion of state corporate franchise taxes paid. The retail portion of state corporate franchise taxes paid each year will be recovered over 12 months beginning July 1 of the following year. Non-service Cost of Postretirement Benefits On January 1, 2018, FASB’s amended guidance related to defined benefit pension and other postretirement plans became effective. The amendment allows only the service cost component of net benefit cost to be eligible for capitalization within property, plant, and equipment. Beginning January 1, 2018, Cleco Power’s non-service cost previously eligible for capitalization into property, plant, and equipment are being deferred to a regulatory asset and will be amortized over the estimated lives of the respective assets. Energy Efficiency In December 2018, Cleco Power filed a letter of intent with the LPSC to recover the under recovery of the accumulated decrease in revenues, also known as the LCFC, associated with the energy efficiency program for years 2014 through 2018 to be recovered over a four-year period. Cleco Power began collecting the accumulated LCFC revenues in Cleco Power’s energy efficiency rates effective March 1, 2019. On October 21, 2019, Cleco Power received notice of approval from the LPSC allowing recovery of the accumulated LCFC revenues. Other Regulatory Assets (Liabilities), Net At December 31, 2019, Other, net consisted of a $4.7 million regulatory liability for over collections related to the St. Mary Clean Energy project and a $0.8 million regulatory liability for an LPSC Cleco Cajun Transaction commitment. These regulatory liabilities were offset by a $1.0 million regulatory asset for the Coughlin Pipeline revenue requirement. On July 1, 2018, Cleco Power began collecting the revenue requirement related to the St. Mary Clean Energy Center project based on an expected commercial operation date in the third quarter of 2018. The project was commercially operational in August 2019. Cleco Power recorded a regulatory liability for the over collections due to the delay of the commercial operations. On July 1, 2019, Cleco Power’s rates were adjusted by the amount of the over-collection and Cleco Power began amortizing the regulatory asset over 12 months. In January 2019, the LPSC approved the Cleco Cajun Transaction. Approval of the Cleco Cajun Transaction was conditioned upon certain commitments, including a $4.0 million annual reduction to Cleco Power’s retail customer rates. For the period from February 4, 2019, to June 30, 2019, Cleco Power recorded a regulatory liability for the annual reduction until the July 1, 2019 FRP rate adjustment reflected the annual savings. Also on July 1, 2019, Cleco Power began amortizing the regulatory liability over 12 months. In June 2017, the LPSC approved the establishment of a regulatory asset upon the completion of the Coughlin Pipeline project for the revenue requirement associated with the project until Cleco Power seeks recovery in the new FRP, which is anticipated to be effective July 1, 2020. The project was placed in service on September 6, 2019. Cleco Power anticipates collecting this amount over 12 months beginning July 1, 2020, subject to regulatory approval of Cleco Power’s new FRP. Accumulated Deferred Fuel Cleco Power is allowed to recover the cost of fuel used for electric generation and power purchased for utility customers through the LPSC-established FAC or related wholesale contract provisions, which enable Cleco Power to pass on to its customers substantially all such charges. The difference between fuel and purchased power revenues collected from retail and wholesale customers and the current fuel and purchased power costs is generally recorded as Accumulated deferred fuel on Cleco Power’s Consolidated Balance Sheet. For 2019, approximately 76% of Cleco Power’s total fuel cost was regulated by the LPSC. Cleco Holdings’ 2016 Merger Adjustments As a result of the 2016 Merger, Cleco implemented acquisition accounting, which eliminated AOCI at the Cleco consolidated level on the date of the 2016 Merger. Cleco will continue to recover expenses related to certain postretirement costs; therefore, Cleco recognized a regulatory asset based on its determination that these costs can continue to be collected from customers. These costs will be amortized to Other operations expense over the average remaining service period of participating employees. Cleco will also continue to recover financing costs associated with the settlement of two treasury rate locks and a forward starting swap contract that were previously recognized in AOCI. Additionally, as a result of the 2016 Merger, a regulatory asset was recorded for debt issuance costs that were eliminated at Cleco and a regulatory asset was recorded for the difference between the carrying value and the fair value of long-term debt. These regulatory assets are being amortized over the terms of the related debt issuances, unless the debt is redeemed prior to maturity, at which time any unamortized related regulatory asset will be derecognized. |
Schedule I Financial Statements of Cleco Holdings (Parent Company Only) - Condensed Statements of Income (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2019 |
Sep. 30, 2019 |
Jun. 30, 2019 |
Mar. 31, 2019 |
Dec. 31, 2018 |
Sep. 30, 2018 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 31, 2019 |
Dec. 31, 2018 |
Dec. 31, 2017 |
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Operating expenses | |||||||||||
Merger transaction costs | $ 7,668 | $ 19,514 | $ 5,152 | ||||||||
Total operating expenses | 1,324,711 | 986,487 | 910,419 | ||||||||
Operating income | $ 75,573 | $ 101,539 | $ 87,196 | $ 50,586 | $ 50,004 | $ 86,110 | $ 63,709 | $ 44,734 | 314,894 | 244,557 | 265,227 |
Other income (expense), net | 758 | (14,328) | (6,899) | ||||||||
Income before income taxes | 195,830 | 123,819 | 145,159 | ||||||||
Federal and state income tax expense | 43,165 | 29,382 | 7,079 | ||||||||
Net income | $ 31,797 | $ 55,565 | $ 44,746 | $ 20,557 | $ 10,377 | $ 47,360 | $ 25,839 | $ 10,861 | 152,665 | 94,437 | 138,080 |
Cleco Holdings | |||||||||||
Operating expenses | |||||||||||
Administrative and general | 3,263 | 1,269 | 602 | ||||||||
Merger transaction costs | 7,803 | 19,514 | 5,152 | ||||||||
Other operating expense | 130 | 318 | 260 | ||||||||
Total operating expenses | 11,196 | 21,101 | 6,014 | ||||||||
Operating income | (11,196) | (21,101) | (6,014) | ||||||||
Equity income from subsidiaries, net of tax | 205,187 | 149,543 | 170,706 | ||||||||
Interest, net | (70,252) | (54,635) | (53,684) | ||||||||
Other income (expense), net | 8,568 | (1,687) | 3,978 | ||||||||
Income before income taxes | 132,307 | 72,120 | 114,986 | ||||||||
Federal and state income tax expense | (20,358) | (22,317) | (23,094) | ||||||||
Net income | $ 152,665 | $ 94,437 | $ 138,080 |
Pension Plan and Employee Benefits |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pension Plan and Employee Benefits |
Pension Plan and Other Benefits Plan Employees hired before August 1, 2007, are covered by a non-contributory, defined benefit pension plan. Benefits under the plan reflect an employee’s years of service, age at retirement, and highest total average compensation for any consecutive five calendar years during the last ten years of employment with Cleco. Cleco’s policy is to base its contributions to the employee pension plan upon actuarial computations utilizing the projected unit credit method, subject to the IRS’s full funding limitation. On September 12, 2019, Cleco made a $12.3 million discretionary contribution to the pension plan. Cleco did not make any required or discretionary contributions to the pension plan in 2018 or 2017. Cleco expects to make $83.0 million discretionary contributions in 2020, which would reduce the future required contributions. The required contributions are driven by liability funding target percentages set by law which could cause the required contributions to be uneven among the years. Based on funding assumptions at December 31, 2019, management estimates that $61.8 million in pension contributions will be required through 2024. Future discretionary contributions may be made depending on changes in assumptions, the ability to utilize the contribution as a tax deduction, and requirements concerning recognizing a minimum pension liability. Adverse changes in assumptions or adverse actual events could cause additional minimum contributions. The ultimate amount and timing of the contributions may be affected by changes in the discount rate, changes in the funding regulations, and actual returns on fund assets. Cleco Power is the plan sponsor and Support Group is the plan administrator. The pension plan was amended on February 4, 2019, to include certain former NRG Energy employees who are now Cleco Cajun employees. The Cleco Cajun employees are eligible to participate as a cash balance participant and are credited with all service that was credited to them under the NRG Pension Plan as of February 4, 2019. Benefits under the plan amendment reflect the employee’s years of service, age at retirement, and accrued benefit at retirement. Cleco’s retirees may be eligible to receive Other Benefits. Dependents of Cleco’s retirees may also be eligible to receive Other Benefits with the exception of life insurance benefits. Cleco recognizes the expected cost of Other Benefits during the periods in which the benefits are earned. The employee pension plan and Other Benefits plan obligation, plan assets, and funded status at December 31, 2019, and 2018 are presented in the following table:
The employee pension plan accumulated benefit obligation at December 31, 2019, and 2018 is presented in the following table:
The following table presents the net actuarial gains/losses and prior service costs/credits included in other comprehensive income for Other Benefits and in regulatory assets for pension related to current year gains and losses as a result of being included in net periodic benefit costs for the employee pension plan and Other Benefits plan for December 31, 2019, and 2018:
The following table presents net actuarial gains/losses and prior service costs/credits in accumulated other comprehensive income for Other Benefits and in regulatory assets for pension that have not been recognized as components of net periodic benefit costs and the amounts expected to be recognized in 2020 for the employee pension plan and Other Benefits plans at December 31, 2020, 2019, and 2018:
The non-service components of net periodic pension and Other Benefits cost are included in Other income (expense), net within Cleco and Cleco Power’s Consolidated Statements of Income. The components of net periodic pension and Other Benefits costs for 2019, 2018, and 2017 are as follows:
Because 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’s other subsidiaries is transferred with a like amount of assets to Cleco Power monthly. The expense of the pension plan related to Cleco’s other subsidiaries for the years ended December 31, 2019, 2018, and 2017 was $2.2 million, $2.0 million, and $1.8 million, respectively. Cleco Holdings is the plan sponsor for the other benefit plans. There are no assets set aside in a trust and the liabilities are reported on the individual subsidiaries’ financial statements. The expense related to Other Benefits reflected in Cleco Power’s Consolidated Statements of Income for the years ended December 31, 2019, 2018, and 2017 was $3.1 million, $3.3 million, and $3.3 million, respectively. The current and non-current portions of the Other Benefits liability for Cleco and Cleco Power at December 31, 2019, and 2018 are as follows:
The measurement date used to determine the pension and other postretirement benefits is December 31. The assumptions used to determine the benefit obligation and the periodic costs are as follows:
The expected return on plan assets was determined by examining the risk profile of each target category as compared to the expected return on that risk, within the parameters determined by the retirement committee. The result was also compared to the expected rate of return of other comparable plans. In assessing the risk as compared to return profile, historical returns as compared to risk were considered. The historical risk compared to returns was adjusted for the expected future long-term relationship between risk and return. The adjustment for the future risk compared to returns was, in part, subjective and not based on any measurable or observable events. For the calculation of the 2020 periodic expense, Cleco decreased the expected long-term return on plan assets to 5.91%. Cleco expects pension expense to increase in 2020 by approximately $6.0 million due to a decrease in the discount rate and a decrease in expected return on plan assets. Employee pension plan assets are invested in accordance with the Pension Plan’s Investment Policy Statement. At December 31, 2019, allowable investments included U.S. Equity Portfolios, International Equity - Developed Markets Portfolios, Emerging Markets Equity Portfolios, Multi-Asset Credits, Treasury Separate Trading of Registered Interest and Principal of Securities (STRIPS), Fixed Income Portfolios - Long Credit, and Real Estate Portfolios. Real estate funds and the pooled separate accounts are stated at estimated market value based on appraisal reports prepared annually by independent real estate appraisers (members of the American Institute of Real Estate Appraisers). The estimated market value of recently acquired properties is assumed to approximate cost. Fair Value Disclosures Cleco classifies assets and liabilities measured at their fair value according to three different levels, depending on the inputs used in determining fair value.
There have been no changes in the methodologies for determining fair value at December 31, 2019, and 2018. The following tables disclose the pension plan’s fair value of financial assets measured on a recurring basis:
Level 3 valuations are derived from other valuation methodologies including pricing models, discounted cash flow models, and similar techniques. Level 3 valuations incorporate subjective judgments and consider assumptions including capitalization rates, discount rates, cash flows, and other factors that are not observable in the market. Significant increases or decreases in any of those inputs in isolation would result in a significantly different fair value measurement. The following is a reconciliation of the beginning and ending balances of the pension plan’s real estate funds measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the years ended December 31, 2019, and 2018:
The market-related value of plan assets differs from the fair value of plan assets by the amount of deferred asset gains or losses. Actual asset returns that differ from the expected return on plan assets are deferred and recognized in the market-related value of assets on a straight-line basis over a five-year period. For 2019, the return on plan assets was 22.17% compared to an expected long-term return of 6.55%. The 2018 return on pension plan assets was (7.31)% compared to an expected long-term return of 5.86%. As of December 31, 2019, none of the pension plan participants’ future annual benefits are covered by insurance contracts. Pension Plan Investment Objectives Cleco’s retirement committee has established investment performance objectives of the pension plan assets. Over a three- to five-year period, the objectives are for the pension plan’s annualized total return to:
Risk characteristics of the portfolio (annualized standard deviation of returns) should be similar to or less than the custom index. In order to meet the objectives and to control risk, the retirement committee has established the following guidelines that the investment managers must follow: U.S. Equity Portfolios
International Equity - Developed Markets Portfolios
Emerging Markets Portfolios
Multi-Asset Credits
Treasury STRIPS
Fixed Income Portfolios - Long Credit
Real Estate Portfolios
The use of futures and options positions which leverage portfolio positions through borrowing, short sales, or other encumbrances of the Plan’s assets is prohibited. The Long Duration fixed income managers and Treasury STRIPS manger(s) are exempt from the prohibition on derivatives use, due to the nature of long duration fixed income management. Currency hedging is permitted for international investing. The investment manager of affiliated securities shall not purchase any securities of its organization or affiliated entities. The following chart shows the dynamic asset allocation based on the funded ratio at December 31, 2019:
The assumed health care cost trend rates used to measure the expected cost of Other Benefits is 5.0% for 2020 and remains at 5.0% thereafter. The rate used for 2019 was also 5.0%. Assumed health care cost trend rates have a limited effect on the amount reported for Cleco’s health care plans. A one-percentage point change in assumed health care cost trend rates would have the following effects on Other Benefits:
The projected benefit payments for the employee pension plan and Other Benefits obligation plan for each year through 2024 and the next five years thereafter are listed in the following table:
SERP Certain Cleco officers are covered by SERP. In 2014, SERP was closed to new participants; however, with regard to current SERP participants, including former employees or their beneficiaries, all terms of SERP will continue, other than as described below. SERP is a non-qualified, non-contributory, defined benefit pension plan. Generally, benefits under the plan reflect an employee’s years of service, age at retirement, and the sum of (a) the highest base salary paid out over the last five calendar years and (b) the average of the five highest cash bonuses paid during the 60 months prior to retirement. SERP benefits are reduced by retirement benefits received from any other defined benefit pension plan, supplemental executive retirement plan, or Cleco contributions under the enhanced 401(k) Plan to the extent such contributions exceed the amount the employee would have received under the terms of the original 401(k) Plan. Two executive officers’ SERP benefits were capped as of December 31, 2017, with regard to final compensation; however, adjustments will continue with regard to age and tenure with Cleco. Additionally, these executive officers had their annual bonuses set at target rather than actual awards for 2017 for the average incentive award portion of their SERP benefit calculation. A third executive officer’s SERP benefit amount will be set at a specified amount based upon the year of separation. Management reviews current market trends as it evaluates Cleco’s future compensation strategy. Cleco does not fund the SERP liability, but instead pays for current benefits out of the general funds available. Cleco Power has formed a rabbi trust. The life insurance policies issued on SERP participants designate the rabbi trust as the beneficiary. Market conditions could have a significant impact on the cash surrender value of the life insurance policies. Proceeds from the life insurance policies are expected to be used to pay the SERP participants’ death benefits, as well as future SERP payments. However, because SERP is a non-qualified plan, the assets of the trust could be used to satisfy general creditors of Cleco Power in the event of insolvency. All SERP benefits are paid out of the general cash available of the respective companies that employed the officer. Cleco Power is the plan sponsor and Support Group is the plan administrator. SERP’s funded status at December 31, 2019, and 2018 is presented in the following table:
SERP’s accumulated benefit obligation at December 31, 2019, and 2018 is presented in the following table:
The following table presents net actuarial gains/losses and prior service costs/credits included in other comprehensive income or regulatory assets related to current year gains and losses as a result of being amortized as a component of net periodic benefit costs for SERP for December 31, 2019, and 2018:
The following table presents net actuarial losses and prior service credit in accumulated other comprehensive income and regulatory assets that have not been recognized as components of net periodic benefit costs and the amounts expected to be recognized in 2020 for SERP at December 31, 2020, 2019, and 2018:
The non-service components of net periodic benefit cost related to SERP are included in Other income (expense), net within Cleco and Cleco Power’s Consolidated Statements of Income. The components of the net SERP costs for 2019, 2018, and 2017 are as follows:
There was a remeasurement of SERP at March 30, 2017, to reflect a special termination benefit resulting from an executive officer’s separation agreement. On the date of the remeasurement, the discount rate decreased from 4.22% to 4.08%. This remeasurement resulted in a special termination benefit for the executive officer of $0.3 million. The measurement date used to determine the SERP benefits is December 31. The assumptions used to determine the benefit obligation and the periodic costs are as follows:
The expense related to SERP reflected on Cleco Power’s Consolidated Statements of Income for the years ended December 31, 2019, 2018, and 2017 was $0.8 million, $1.4 million, and $1.3 million, respectively. Liabilities relating to SERP are reported on the individual subsidiaries’ financial statements. The current and non-current portions of the SERP liability for Cleco and Cleco Power at December 31, 2019, and 2018 are as follows:
The projected benefit payments for SERP for each year through 2024 and the next five years thereafter are shown in the following table:
401(k) Cleco’s 401(k) Plan is intended to provide active, eligible employees with voluntary, long-term savings and investment opportunities. The 401(k) Plan is a defined contribution plan and is subject to the applicable provisions of the Employee Retirement Income Security Act of 1974. In accordance with the 401(k) Plan, employer contributions are made in the form of cash. Cash contributions are invested in proportion to the participant’s voluntary contribution investment choices. Participation in the Plan is voluntary and active Cleco employees are eligible to participate. Cleco’s 401(k) was amended upon the close of the Cleco Cajun Transaction to include Cleco Cajun employees. Cleco’s 401(k) Plan expense for the years ended December 31, 2019, 2018, and 2017 was as follows:
Cleco Power is the plan sponsor for the 401(k) Plan. The expense of the 401(k) Plan related to Cleco’s other subsidiaries for the years ended December 31, 2019, 2018, and 2017 was as follows:
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Fair Value Accounting - Effect of Derivatives On Consolidated Statements of Income (Details) - Derivatives Not Designated as Hedging Instrument - Price Risk Derivative - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2019 |
Dec. 31, 2018 |
Dec. 31, 2017 |
|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total | $ (7,814) | $ 35,093 | $ 18,317 |
Electric operations | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Amount of gain recognized in income on derivatives | 13,043 | 39,659 | 23,826 |
Purchased power | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Amount of loss recognized in income on derivatives | (15,685) | (4,566) | (5,509) |
Fuel Used For Electric Generation | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Amount of loss recognized in income on derivatives | (5,172) | 0 | 0 |
Accumulated Deferred Fuel | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Unrealized gains (losses) associated with FTRs | (1,700) | 11,900 | (1,400) |
CLECO POWER | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total | 6,981 | 35,093 | 18,317 |
CLECO POWER | Electric operations | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Amount of gain recognized in income on derivatives | 13,047 | 39,659 | 23,826 |
CLECO POWER | Purchased power | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Amount of loss recognized in income on derivatives | (6,066) | (4,566) | (5,509) |
CLECO POWER | Accumulated Deferred Fuel | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Unrealized gains (losses) associated with FTRs | $ (900) | $ 11,900 | $ (1,400) |
Revenue Recognition - Remaining Performance Obligations (Details) |
Dec. 31, 2019 |
---|---|
Minimum | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Maximum | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 15 years |
Leases - Remaining Minimum Lease Payments To Be Received (Details) $ in Thousands |
Dec. 31, 2019
USD ($)
|
---|---|
Years ending Dec. 31, | |
2020 | $ 40,000 |
2021 | 40,000 |
2022 | 40,000 |
2023 | 40,000 |
2024 | 40,000 |
Thereafter | 16,667 |
Total payments | $ 216,667 |
Fair Value Accounting - Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation (Details) - Price Risk Derivative - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2019 |
Dec. 31, 2018 |
|
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Beginning balance | $ 22,887 | $ 7,044 |
Unrealized (losses) gains | (1,659) | 11,865 |
Purchases | 27,881 | 28,185 |
Settlements | (43,331) | (24,207) |
Ending balance | 5,778 | 22,887 |
CLECO POWER | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Beginning balance | 22,887 | 7,044 |
Unrealized (losses) gains | (945) | 11,865 |
Purchases | 21,609 | 28,185 |
Settlements | (37,826) | (24,207) |
Ending balance | $ 5,725 | $ 22,887 |
Regulatory Assets and Liabilities - Narrative (Details) $ in Thousands |
1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|---|
Apr. 13, 2016
instrument
|
Jan. 31, 2019
USD ($)
|
Dec. 31, 2018
USD ($)
|
May 31, 2013
USD ($)
|
Dec. 31, 2018
USD ($)
|
Dec. 31, 2019
USD ($)
|
Dec. 31, 2011
USD ($)
treasury_rate_lock
|
Dec. 31, 2017
USD ($)
|
Oct. 31, 2016
USD ($)
|
|
Treasury Lock | |||||||||
Regulatory Assets and Liabilities [Line Items] | |||||||||
Number of instruments settled | instrument | 2 | ||||||||
Postretirement costs | |||||||||
Regulatory Assets and Liabilities [Line Items] | |||||||||
Regulatory assets | $ 19,387 | $ 19,387 | $ 17,399 | ||||||
Financing costs | |||||||||
Regulatory Assets and Liabilities [Line Items] | |||||||||
Regulatory assets | 8,279 | 8,279 | 7,935 | ||||||
TCJA | |||||||||
Regulatory Assets and Liabilities [Line Items] | |||||||||
Regulatory liability | 375,000 | 375,000 | 375,000 | $ 348,600 | |||||
Net retail portion of franchise taxes paid | 26,400 | ||||||||
CLECO POWER | |||||||||
Regulatory Assets and Liabilities [Line Items] | |||||||||
Regulatory liability | 4,700 | ||||||||
Regulatory assets | 1,000 | ||||||||
Annual reduction to retail customer rates | $ 4,000 | ||||||||
CLECO POWER | Treasury Lock | |||||||||
Regulatory Assets and Liabilities [Line Items] | |||||||||
Number of treasury locks | treasury_rate_lock | 2 | ||||||||
Loss on settlements | $ 26,800 | ||||||||
CLECO POWER | Interest Rate Swap | |||||||||
Regulatory Assets and Liabilities [Line Items] | |||||||||
Loss on settlements | $ 3,300 | ||||||||
CLECO POWER | Mining costs | |||||||||
Regulatory Assets and Liabilities [Line Items] | |||||||||
Amortization period | 11 years 6 months | ||||||||
Regulatory assets | 1,274 | 1,274 | $ 0 | ||||||
CLECO POWER | Postretirement costs | |||||||||
Regulatory Assets and Liabilities [Line Items] | |||||||||
Amortization period | 8 years | ||||||||
Regulatory assets | 140,245 | 140,245 | $ 151,543 | ||||||
CLECO POWER | Tree trimming costs | |||||||||
Regulatory Assets and Liabilities [Line Items] | |||||||||
Maximum amount of costs approved to defer | $ 10,900 | ||||||||
Regulatory assets | 9,069 | 9,069 | $ 11,341 | ||||||
CLECO POWER | Training costs | |||||||||
Regulatory Assets and Liabilities [Line Items] | |||||||||
Amortization period | 50 years | ||||||||
Regulatory assets | 6,396 | 6,396 | $ 6,241 | ||||||
CLECO POWER | Surcredits, net | |||||||||
Regulatory Assets and Liabilities [Line Items] | |||||||||
Amortization period | 4 years | ||||||||
Regulatory assets | 289 | 289 | $ 145 | ||||||
CLECO POWER | AMI deferred revenue requirement | |||||||||
Regulatory Assets and Liabilities [Line Items] | |||||||||
Regulatory assets | 3,681 | 3,681 | 3,136 | ||||||
CLECO POWER | Emergency declarations | |||||||||
Regulatory Assets and Liabilities [Line Items] | |||||||||
Regulatory assets | 2,980 | 2,980 | $ 1,349 | ||||||
CLECO POWER | Production O&M Expenses | |||||||||
Regulatory Assets and Liabilities [Line Items] | |||||||||
Amortization period | 3 years | ||||||||
Retail jurisdictional portion | $ 45,000 | ||||||||
Increase in other regulatory asset | 8,000 | ||||||||
CLECO POWER | Production O&M Expenses | MAXIMUM | |||||||||
Regulatory Assets and Liabilities [Line Items] | |||||||||
Regulatory assets | $ 23,000 | ||||||||
CLECO POWER | Acquisition costs or Transaction costs | |||||||||
Regulatory Assets and Liabilities [Line Items] | |||||||||
Amortization period | 30 years | ||||||||
Regulatory assets | 2,230 | 2,230 | $ 2,124 | ||||||
CLECO POWER | Acquisition costs or Transaction costs | Natural Gas Processing Plant | |||||||||
Regulatory Assets and Liabilities [Line Items] | |||||||||
Amortization period | 35 years | ||||||||
Regulatory assets | 938 | 938 | $ 906 | ||||||
CLECO POWER | Financing costs | |||||||||
Regulatory Assets and Liabilities [Line Items] | |||||||||
Regulatory assets | 7,923 | 7,923 | 7,554 | ||||||
CLECO POWER | Financing costs | Treasury Lock | |||||||||
Regulatory Assets and Liabilities [Line Items] | |||||||||
Regulatory assets | $ 7,400 | ||||||||
CLECO POWER | Financing costs | Interest Rate Swap | |||||||||
Regulatory Assets and Liabilities [Line Items] | |||||||||
Regulatory assets | $ 2,900 | ||||||||
CLECO POWER | Corporate franchise tax, net | |||||||||
Regulatory Assets and Liabilities [Line Items] | |||||||||
Regulatory liability | $ 1,145 | ||||||||
Amortization period | 12 months | ||||||||
Regulatory assets | 1,416 | 1,416 | |||||||
CLECO POWER | Energy efficiency | |||||||||
Regulatory Assets and Liabilities [Line Items] | |||||||||
Amortization period | 4 years | ||||||||
Regulatory assets | 2,585 | 2,585 | $ 2,820 | ||||||
CLECO POWER | Accumulated deferred fuel | |||||||||
Regulatory Assets and Liabilities [Line Items] | |||||||||
Regulatory assets | $ 20,112 | $ 20,112 | $ 22,910 | ||||||
Percentage of total fuel cost regulated by the LPSC (in hundredths) | 76.00% | ||||||||
Cleco Cajun | LPSC | |||||||||
Regulatory Assets and Liabilities [Line Items] | |||||||||
Regulatory liability | $ 800 | ||||||||
Annual reduction to retail customer rates | $ 4,000 |
Leases - Supplemental Balance Sheet and Cash Flow Information and Other Supplemental Information (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2019 |
Dec. 31, 2018 |
|
ROU assets | ||
Operating | $ 28,791 | $ 0 |
Finance | 14,840 | |
Total ROU assets | 43,631 | |
Current lease liabilities | ||
Operating | 2,978 | |
Finance lease, current liabilities | 617 | |
Non-current lease liabilities | ||
Operating | 25,779 | 0 |
Finance | 15,244 | |
Total lease liabilities | 44,618 | |
Cash paid for amounts included in the measurement of lease liabilities | ||
Operating cash flows from operating leases | 4,452 | |
Operating cash flows from finance leases | 1,646 | |
Financing cash flows from finance leases | 557 | |
ROU assets obtained in exchange for new lease liabilities | $ 15,881 | |
Operating leases | ||
Weighted-average remaining lease term | 10 years 10 months | |
Weighted-average discount rate | 4.31% | |
Finance leases | ||
Weighted-average remaining lease term | 13 years 4 months | |
Weighted-average discount rate | 10.18% | |
CLECO POWER | ||
ROU assets | ||
Operating | $ 28,633 | 0 |
Finance | 14,840 | |
Total ROU assets | 43,473 | |
Current lease liabilities | ||
Operating | 2,935 | |
Finance lease, current liabilities | 617 | |
Non-current lease liabilities | ||
Operating | 25,658 | $ 0 |
Finance | 15,244 | |
Total lease liabilities | 44,454 | |
Cash paid for amounts included in the measurement of lease liabilities | ||
Operating cash flows from operating leases | 4,203 | |
Operating cash flows from finance leases | 1,646 | |
Financing cash flows from finance leases | 557 | |
ROU assets obtained in exchange for new lease liabilities | $ 15,749 | |
Operating leases | ||
Weighted-average remaining lease term | 10 years 10 months | |
Weighted-average discount rate | 4.31% | |
Finance leases | ||
Weighted-average remaining lease term | 13 years 4 months | |
Weighted-average discount rate | 10.18% |
Summary of Significant Accounting Policies - Reserves (Details) - USD ($) $ in Millions |
Dec. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Cleco Holdings | ||
Accounting Policies [Line Items] | ||
General liability and workers compensation reserves | $ 4.3 | $ 4.8 |
Summary of Significant Accounting Policies - Recent Authoritative Guidance Narrative (Details) - USD ($) $ in Thousands |
Dec. 31, 2019 |
Jan. 01, 2019 |
Dec. 31, 2018 |
---|---|---|---|
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease assets | $ 28,791 | $ 0 | |
Operating lease liability | 28,757 | ||
Accounting Standards Update 2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease assets | $ 16,100 | ||
Operating lease liability | 16,100 | ||
CLECO POWER | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease assets | $ 28,633 | $ 0 | |
CLECO POWER | Accounting Standards Update 2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease assets | 15,900 | ||
Operating lease liability | $ 15,900 |
Litigation, Other Commitments and Contingencies, and Disclosures about Guarantees (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Future Payments under Long-Term Purchase Obligations | The aggregate amount of payments required under such obligations at December 31, 2019, is as follows:
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Pension Plan and Employee Benefits (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of Benefit Obligations, Plan Assets and Funded Status of Pension Plans | SERP’s funded status at December 31, 2019, and 2018 is presented in the following table:
The employee pension plan and Other Benefits plan obligation, plan assets, and funded status at December 31, 2019, and 2018 are presented in the following table:
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Accumulated Benefit Obligation | SERP’s accumulated benefit obligation at December 31, 2019, and 2018 is presented in the following table:
The employee pension plan accumulated benefit obligation at December 31, 2019, and 2018 is presented in the following table:
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Schedule of Amounts Recognized in Balance Sheet | The current and non-current portions of the SERP liability for Cleco and Cleco Power at December 31, 2019, and 2018 are as follows:
The current and non-current portions of the Other Benefits liability for Cleco and Cleco Power at December 31, 2019, and 2018 are as follows:
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Amounts Recognized in Other Comprehensive Income | The following table presents net actuarial gains/losses and prior service costs/credits included in other comprehensive income or regulatory assets related to current year gains and losses as a result of being amortized as a component of net periodic benefit costs for SERP for December 31, 2019, and 2018:
The following table presents the net actuarial gains/losses and prior service costs/credits included in other comprehensive income for Other Benefits and in regulatory assets for pension related to current year gains and losses as a result of being included in net periodic benefit costs for the employee pension plan and Other Benefits plan for December 31, 2019, and 2018:
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Amounts Recognized in Accumulated Other Comprehensive Income | The following table presents net actuarial losses and prior service credit in accumulated other comprehensive income and regulatory assets that have not been recognized as components of net periodic benefit costs and the amounts expected to be recognized in 2020 for SERP at December 31, 2020, 2019, and 2018:
The following table presents net actuarial gains/losses and prior service costs/credits in accumulated other comprehensive income for Other Benefits and in regulatory assets for pension that have not been recognized as components of net periodic benefit costs and the amounts expected to be recognized in 2020 for the employee pension plan and Other Benefits plans at December 31, 2020, 2019, and 2018:
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Components of Net Periodic Pension and Other Benefit Costs | The components of the net SERP costs for 2019, 2018, and 2017 are as follows:
The components of net periodic pension and Other Benefits costs for 2019, 2018, and 2017 are as follows:
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Weighted-Average Assumptions Used to Determine Benefit Obligation and Net Periodic Costs | The assumptions used to determine the benefit obligation and the periodic costs are as follows:
The assumptions used to determine the benefit obligation and the periodic costs are as follows:
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Fair Value Allocation of Pension Plan Assets | The following chart shows the dynamic asset allocation based on the funded ratio at December 31, 2019:
The following tables disclose the pension plan’s fair value of financial assets measured on a recurring basis:
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Pension Plan Unobservable Input Reconciliation | The following is a reconciliation of the beginning and ending balances of the pension plan’s real estate funds measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the years ended December 31, 2019, and 2018:
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Assumed Health Care Cost Trend Rates | A one-percentage point change in assumed health care cost trend rates would have the following effects on Other Benefits:
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Projected Benefit Payments and Projected Receipts | The projected benefit payments for the employee pension plan and Other Benefits obligation plan for each year through 2024 and the next five years thereafter are listed in the following table:
The projected benefit payments for SERP for each year through 2024 and the next five years thereafter are shown in the following table:
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401(k) Plan Expense | Cleco’s 401(k) Plan expense for the years ended December 31, 2019, 2018, and 2017 was as follows:
The expense of the 401(k) Plan related to Cleco’s other subsidiaries for the years ended December 31, 2019, 2018, and 2017 was as follows:
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CLECO POWER | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Amounts Recognized in Balance Sheet |
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Miscellaneous Financial Information (Unaudited) (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarterly Information [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarterly Financial Information | Quarterly information for Cleco for 2019 and 2018 is shown in the following tables:
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CLECO POWER | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarterly Information [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarterly Financial Information | Quarterly information for Cleco Power for 2019 and 2018 is shown in the following tables:
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Leases - Future Minimum Lease Payments Due Under Long-Term Operating Leases (Details) - USD ($) $ in Thousands |
Dec. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Years ending Dec. 31, | ||
2020 | $ 3,994 | |
2021 | 3,443 | |
2022 | 3,287 | |
2023 | 3,249 | |
2024 | 3,235 | |
Thereafter | 18,618 | |
Total minimum lease payments | 35,826 | |
Less: amount representing interest | 7,069 | |
Present value of net minimum operating lease payments | 28,757 | |
Current liabilities | 2,978 | |
Non-current liabilities | 25,779 | $ 0 |
CLECO POWER | ||
Years ending Dec. 31, | ||
2020 | 3,960 | |
2021 | 3,409 | |
2022 | 3,256 | |
2023 | 3,220 | |
2024 | 3,216 | |
Thereafter | 18,618 | |
Total minimum lease payments | 35,679 | |
Less: amount representing interest | 7,086 | |
Present value of net minimum operating lease payments | 28,593 | |
Current liabilities | 2,935 | |
Non-current liabilities | $ 25,658 |
Debt - Credit Facilities (Details) |
12 Months Ended | ||||
---|---|---|---|---|---|
Feb. 05, 2019
USD ($)
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Feb. 04, 2019
USD ($)
|
Dec. 31, 2019
USD ($)
|
Dec. 31, 2018
USD ($)
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Dec. 31, 2017
USD ($)
|
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Line of Credit Facility [Line Items] | |||||
Payments on credit facilities | $ 108,000,000 | $ 0 | $ 179,000,000 | ||
Line of Credit | |||||
Line of Credit Facility [Line Items] | |||||
Unrestricted member's equity | 1,010,000,000 | ||||
Cleco Holdings | |||||
Line of Credit Facility [Line Items] | |||||
Ratio of total indebtedness to total capitalization | 0.65 | ||||
Cleco Holdings | Line of Credit | |||||
Line of Credit Facility [Line Items] | |||||
Maximum borrowing capacity | $ 175,000,000 | ||||
Line of credit facility, remaining borrowing capacity | $ 475,000,000 | ||||
Increase in credit facility capacity | $ 75,000,000.0 | ||||
Commitment fees | 0.275% | ||||
Higher fees if downgraded | 0.075% | ||||
Additional interest if downgraded | 0.50% | ||||
Payments on credit facilities | $ 75,000,000 | ||||
Cleco Holdings | Line of Credit | MAXIMUM | |||||
Line of Credit Facility [Line Items] | |||||
Ratio of total indebtedness to total capitalization | 0.65 | ||||
Cleco Holdings | Line of Credit | ABR | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on variable rate | 0.75% | ||||
Cleco Holdings | Line of Credit | LIBOR | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on variable rate | 1.75% | ||||
CLECO POWER | |||||
Line of Credit Facility [Line Items] | |||||
Payments on credit facilities | $ 33,000,000 | $ 0 | $ 106,000,000 | ||
CLECO POWER | MAXIMUM | |||||
Line of Credit Facility [Line Items] | |||||
Ratio of total indebtedness to total capitalization | 0.65 | ||||
CLECO POWER | Line of Credit | |||||
Line of Credit Facility [Line Items] | |||||
Maximum borrowing capacity | $ 300,000,000 | ||||
Unrestricted member's equity | $ 989,000,000 | ||||
Higher fees if downgraded | 0.05% | ||||
Additional interest if downgraded | 0.125% | ||||
CLECO POWER | Line of Credit | MAXIMUM | |||||
Line of Credit Facility [Line Items] | |||||
Ratio of total indebtedness to total capitalization | 0.65 | ||||
CLECO POWER | Line of Credit | ABR | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on variable rate | 0.125% | ||||
CLECO POWER | Line of Credit | LIBOR | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on variable rate | 1.125% |
Pension Plan and Employee Benefits - Components of Periodic Benefit Costs and Weighted-Average Assumptions (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
---|---|---|---|---|---|---|---|
Mar. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2017 |
Dec. 31, 2019 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Mar. 29, 2017 |
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Weighted-average assumptions used to determine the benefit obligation | |||||||
Rate of compensation increase | 2.81% | 2.93% | |||||
Weighted-average assumptions used to determine the net benefit cost | |||||||
Rate of compensation increase | 2.81% | 2.93% | 2.98% | ||||
PENSION BENEFITS | |||||||
Components of periodic benefit costs | |||||||
Service cost | $ 8,414 | $ 9,507 | $ 9,039 | ||||
Interest cost | 22,485 | 20,860 | 21,648 | ||||
Expected return on plan assets | (26,502) | (23,773) | (24,064) | ||||
Amortizations | |||||||
Prior service credit | (71) | (71) | (71) | ||||
Net loss (gain) | 7,849 | 12,312 | 10,008 | ||||
Net periodic benefit cost | $ 12,175 | $ 18,835 | $ 16,560 | ||||
Weighted-average assumptions used to determine the benefit obligation | |||||||
Discount rate | 3.43% | 4.35% | |||||
Weighted-average assumptions used to determine the net benefit cost | |||||||
Discount rate | 4.35% | 3.73% | 4.27% | ||||
Expected return on plan assets | 6.55% | 5.86% | 6.08% | ||||
OTHER BENEFITS | |||||||
Components of periodic benefit costs | |||||||
Service cost | $ 1,191 | $ 1,320 | $ 1,446 | ||||
Interest cost | 1,646 | 1,465 | 1,569 | ||||
Expected return on plan assets | 0 | 0 | 0 | ||||
Amortizations | |||||||
Prior service credit | 0 | 0 | 0 | ||||
Net loss (gain) | 21 | 135 | (50) | ||||
Net periodic benefit cost | $ 2,858 | $ 2,920 | $ 2,965 | ||||
Weighted-average assumptions used to determine the benefit obligation | |||||||
Discount rate | 3.25% | 4.16% | |||||
Weighted-average assumptions used to determine the net benefit cost | |||||||
Discount rate | 4.16% | 3.47% | 3.81% | ||||
SERP BENEFITS | |||||||
Components of periodic benefit costs | |||||||
Service cost | $ 330 | $ 542 | $ 494 | ||||
Interest cost | 3,326 | 3,077 | 3,239 | ||||
Amortizations | |||||||
Prior service credit | (160) | (160) | (190) | ||||
Net loss (gain) | 1,544 | 2,913 | 2,105 | ||||
Net periodic benefit cost | 5,040 | 6,372 | 5,648 | ||||
Special/contractual termination benefits | $ 300 | 0 | 0 | 315 | |||
Net periodic benefit cost | $ 5,040 | $ 6,372 | $ 5,963 | ||||
Weighted-average assumptions used to determine the benefit obligation | |||||||
Discount rate | 4.08% | 3.37% | 4.34% | 4.22% | |||
Rate of compensation increase | 5.00% | 5.00% | |||||
Weighted-average assumptions used to determine the net benefit cost | |||||||
Discount rate | 4.22% | 4.08% | 4.34% | 3.70% | |||
Rate of compensation increase | 5.00% | 5.00% | 5.00% | 5.00% |
Leases - Future Minimum Lease Payments Due Under Finance Lease (Details) $ in Thousands |
Dec. 31, 2019
USD ($)
|
---|---|
Years ending Dec. 31, | |
2020 | $ 617 |
2021 | 682 |
2022 | 755 |
2023 | 836 |
2024 | 925 |
Thereafter | 12,046 |
Current liabilities | 617 |
Non-current liabilities | 15,244 |
CLECO POWER | |
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 | 28,690 |
Less: amount representing interest | 12,829 |
Present value of net minimum finance lease payments | 15,861 |
Current liabilities | 617 |
Non-current liabilities | $ 15,244 |
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands |
Dec. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Customer accounts receivable, allowance for doubtful accounts | $ 3,005 | $ 814 |
CLECO POWER | ||
Customer accounts receivable, allowance for doubtful accounts | $ 3,005 | $ 814 |
Consolidated Statements of Income - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2019 |
Dec. 31, 2018 |
Dec. 31, 2017 |
|
Operating revenue | |||
Electric operations | $ 1,496,736 | $ 1,181,907 | $ 1,097,632 |
Other operations | 182,832 | 82,332 | 79,580 |
Affiliate revenue | 0 | 0 | 0 |
Gross operating revenue | 1,679,568 | 1,264,239 | 1,177,212 |
Electric customer credits | (39,963) | (33,195) | (1,566) |
Operating revenue, net | 1,639,605 | 1,231,044 | 1,175,646 |
Operating expenses | |||
Fuel used for electric generation | 466,831 | 382,556 | 339,346 |
Purchased power | 280,991 | 168,180 | 152,913 |
Other operations and maintenance | 291,031 | 197,032 | 197,608 |
Depreciation and amortization | 216,320 | 170,414 | 166,854 |
Taxes other than income taxes | 61,870 | 48,791 | 48,546 |
Merger transaction and commitment costs | 7,668 | 19,514 | 5,152 |
Total operating expenses | 1,324,711 | 986,487 | 910,419 |
Operating income | 314,894 | 244,557 | 265,227 |
Interest income | 6,090 | 6,073 | 1,424 |
Allowance for equity funds used during construction | 15,397 | 14,159 | 8,320 |
Other income (expense), net | 758 | (14,328) | (6,899) |
Interest charges | |||
Interest charges, net | 147,346 | 131,348 | 125,200 |
Allowance for borrowed funds used during construction | (6,037) | (4,706) | (2,287) |
Total interest charges | 141,309 | 126,642 | 122,913 |
Income before income taxes | 195,830 | 123,819 | 145,159 |
Federal and state income tax expense | 43,165 | 29,382 | 7,079 |
Net income | 152,665 | 94,437 | 138,080 |
CLECO POWER | |||
Operating revenue | |||
Electric operations | 1,130,928 | 1,191,587 | 1,108,389 |
Other operations | 72,833 | 82,330 | 77,522 |
Affiliate revenue | 3,125 | 874 | 851 |
Gross operating revenue | 1,206,886 | 1,274,791 | 1,186,762 |
Electric customer credits | (38,516) | (33,195) | (1,566) |
Operating revenue, net | 1,168,370 | 1,241,596 | 1,185,196 |
Operating expenses | |||
Fuel used for electric generation | 385,317 | 382,556 | 339,346 |
Purchased power | 111,208 | 168,180 | 152,913 |
Other operations and maintenance | 207,164 | 202,552 | 202,738 |
Depreciation and amortization | 172,471 | 162,069 | 158,415 |
Taxes other than income taxes | 43,742 | 47,267 | 46,539 |
Total operating expenses | 919,902 | 962,624 | 899,951 |
Operating income | 248,468 | 278,972 | 285,245 |
Interest income | 4,744 | 5,052 | 1,283 |
Allowance for equity funds used during construction | 15,397 | 14,159 | 8,320 |
Other income (expense), net | (3,616) | (8,699) | (7,417) |
Interest charges | |||
Interest charges, net | 77,316 | 76,009 | 71,649 |
Allowance for borrowed funds used during construction | (6,037) | (4,706) | (2,287) |
Total interest charges | 71,279 | 71,303 | 69,362 |
Income before income taxes | 193,714 | 218,181 | 218,069 |
Federal and state income tax expense | 45,452 | 55,924 | 67,331 |
Net income | $ 148,262 | $ 162,257 | $ 150,738 |
Schedule II Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2019 |
Dec. 31, 2018 |
Dec. 31, 2017 |
|
Allowance for Uncollectible Accounts | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
BALANCE AT BEGINNING OF PERIOD | $ 814 | $ 1,457 | $ 7,199 |
ADDITIONS | 2,323 | 977 | 4,179 |
DEDUCTIONS | 132 | 1,620 | 9,921 |
BALANCE AT END OF PERIOD | 3,005 | 814 | 1,457 |
Allowance for Uncollectible Accounts | CLECO POWER | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
BALANCE AT BEGINNING OF PERIOD | 814 | 1,457 | 7,199 |
ADDITIONS | 2,323 | 977 | 4,179 |
DEDUCTIONS | 132 | 1,620 | 9,921 |
BALANCE AT END OF PERIOD | 3,005 | 814 | 1,457 |
Unrestricted Storm Reserve | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
BALANCE AT BEGINNING OF PERIOD | 3,672 | 4,186 | 2,607 |
ADDITIONS | 4,000 | 0 | 4,000 |
DEDUCTIONS | 6,572 | 514 | 2,421 |
BALANCE AT END OF PERIOD | 1,100 | 3,672 | 4,186 |
Unrestricted Storm Reserve | CLECO POWER | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
BALANCE AT BEGINNING OF PERIOD | 3,672 | 4,186 | 2,607 |
ADDITIONS | 4,000 | 0 | 4,000 |
DEDUCTIONS | 6,572 | 514 | 2,421 |
BALANCE AT END OF PERIOD | 1,100 | 3,672 | 4,186 |
Restricted Storm Reserve | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
BALANCE AT BEGINNING OF PERIOD | 15,485 | 14,469 | 17,385 |
ADDITIONS | 800 | 1,016 | 1,084 |
DEDUCTIONS | 4,000 | 0 | 4,000 |
BALANCE AT END OF PERIOD | 12,285 | 15,485 | 14,469 |
Restricted Storm Reserve | CLECO POWER | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
BALANCE AT BEGINNING OF PERIOD | 15,485 | 14,469 | 17,385 |
ADDITIONS | 800 | 1,016 | 1,084 |
DEDUCTIONS | 4,000 | 0 | 4,000 |
BALANCE AT END OF PERIOD | $ 12,285 | $ 15,485 | $ 14,469 |
Litigation, Other Commitments and Contingencies, and Disclosures about Guarantees - Litigation (Details) |
1 Months Ended | 24 Months Ended | |||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jan. 01, 2020 |
Mar. 07, 2018
plaintiff
|
Apr. 13, 2016
claim
|
Sep. 30, 2016 |
Jun. 30, 2016
petition
|
Sep. 30, 2015
USD ($)
|
Nov. 30, 2014 |
Nov. 30, 2013 |
Dec. 31, 2017
USD ($)
|
Dec. 31, 2019
USD ($)
generation
generation_unit
|
Nov. 07, 2019
USD ($)
|
Sep. 27, 2019
finding
recommendation
|
Jul. 10, 2019
USD ($)
|
Feb. 04, 2019
USD ($)
|
Dec. 31, 2018
USD ($)
|
Aug. 31, 2018
USD ($)
|
Mar. 31, 2017
generation_unit
|
|
Litigation [Line Items] | |||||||||||||||||
Provision for rate refund | $ 38,903,000 | $ 35,842,000 | |||||||||||||||
Accrual for various litigation matters | $ 5,000,000 | ||||||||||||||||
Gulf Coast Spinning start up costs | |||||||||||||||||
Litigation [Line Items] | |||||||||||||||||
Startup costs | $ 6,500,000 | ||||||||||||||||
Gulf Coast Spinning construction of cotton spinning facility | |||||||||||||||||
Litigation [Line Items] | |||||||||||||||||
Startup costs | $ 60,000,000 | ||||||||||||||||
CLECO POWER | |||||||||||||||||
Litigation [Line Items] | |||||||||||||||||
Number of generating units owned | generation | 10 | ||||||||||||||||
Provision for rate refund | $ 38,241,000 | $ 79,200,000 | $ 35,842,000 | ||||||||||||||
CLECO POWER | FERC | |||||||||||||||||
Litigation [Line Items] | |||||||||||||||||
Number of findings | finding | 12 | ||||||||||||||||
Number of recommendations | recommendation | 59 | ||||||||||||||||
Provision for rate refund | 3,500,000 | $ 3,500,000 | |||||||||||||||
Accrual for various litigation matters | 1,000,000 | ||||||||||||||||
CLECO POWER | LPSC Jan 2016 To Dec 2017 EAC Audit | |||||||||||||||||
Litigation [Line Items] | |||||||||||||||||
Environmental expenses included in audit | $ 30,700,000 | ||||||||||||||||
CLECO POWER | MISO Transmission Rates | |||||||||||||||||
Litigation [Line Items] | |||||||||||||||||
Return on equity proposed/recommended | 10.32% | 9.70% | |||||||||||||||
CLECO POWER | MISO Transmission Rates | FERC | |||||||||||||||||
Litigation [Line Items] | |||||||||||||||||
Return on equity established by FERC | 12.38% | ||||||||||||||||
Return on equity proposed/recommended | 9.88% | 6.68% | |||||||||||||||
Requested rate increase | 0.50% | ||||||||||||||||
CLECO POWER | LPSC 2016-2017 Fuel Audit | |||||||||||||||||
Litigation [Line Items] | |||||||||||||||||
Fuel expenses included in audit | 536,200,000 | ||||||||||||||||
Cost disallowance in audit, excluding interest | $ 0 | ||||||||||||||||
CLECO POWER | LPSC Nov2010-Dec2015 EAC audit | |||||||||||||||||
Litigation [Line Items] | |||||||||||||||||
Number of petitions filed with the U.S. court of appeals | petition | 6 | ||||||||||||||||
CLECO POWER | Transmission return on equity | FERC | |||||||||||||||||
Litigation [Line Items] | |||||||||||||||||
Provision for rate refund | $ 1,000,000 | ||||||||||||||||
Cleco Cajun | |||||||||||||||||
Litigation [Line Items] | |||||||||||||||||
Number of generating units owned | generation_unit | 8 | ||||||||||||||||
Actions filed in the 9th Judicial District Court | Alleged Breach of Fiduciary Duties | |||||||||||||||||
Litigation [Line Items] | |||||||||||||||||
Number of actions filed | claim | 4 | ||||||||||||||||
Actions filed in the Civil District Court | Alleged Breach of Fiduciary Duties | |||||||||||||||||
Litigation [Line Items] | |||||||||||||||||
Number of actions filed | claim | 3 | ||||||||||||||||
Pending Litigation | Perry Bonin, Ace Chandler, and Michael Manuel, et al v. Sabine River Authority of Texas and Sabine River Authority of Louisiana, No. B-160173-C | |||||||||||||||||
Litigation [Line Items] | |||||||||||||||||
Number of generation units failed to repair | generation_unit | 1 | ||||||||||||||||
Number of generating units owned | generation_unit | 2 | ||||||||||||||||
Pending Litigation | Larry Addison, Et Al. V. Sabine River Authority Of Texas, Et Al | |||||||||||||||||
Litigation [Line Items] | |||||||||||||||||
Number of plaintiffs | plaintiff | 26 | ||||||||||||||||
NRG South Central | |||||||||||||||||
Litigation [Line Items] | |||||||||||||||||
Contingent liability | 10,000,000 | $ 10,000,000 | |||||||||||||||
Indemnification assets | $ 10,000,000 | ||||||||||||||||
NRG South Central | Cleco Cajun | |||||||||||||||||
Litigation [Line Items] | |||||||||||||||||
Contingent liability | 10,000,000 | ||||||||||||||||
Indemnification assets | $ 10,000,000 | ||||||||||||||||
Subsequent Event | CLECO POWER | MISO Transmission Rates | |||||||||||||||||
Litigation [Line Items] | |||||||||||||||||
Return on equity proposed/recommended | 10.38% |
Schedule I Financial Statements of Cleco Holdings (Parent Company Only) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Condensed Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule I Financial Statements of Cleco Holdings (Parent Company Only) |
The condensed financial statements represent the financial information required by SEC Regulation S-X 5-04 for Cleco Holdings, which requires the inclusion of parent company only financial statements if the restricted net assets of consolidated subsidiaries exceed 25% of total consolidated net assets as of the last day of its most recent fiscal year. As of December 31, 2019, Cleco Holdings’ restricted net assets of consolidated subsidiaries were $1.26 billion and exceeded 25% of its total consolidated net assets. Cleco Holdings’ major, first-tier subsidiaries are Cleco Power and Cleco Cajun. Cleco Power contains the LPSC-jurisdictional generation, transmission, and distribution electric utility operations serving its retail and wholesale customers. Upon completion of the Cleco Cajun Transaction, Cleco Cajun became a major, first tier subsidiary. Cleco Cajun is an unregulated electric utility company that owns generation and transmission assets and supplies wholesale power and capacity to its customers. For more information about the Cleco Cajun Transaction, see Part II, Item 8, “Financial Statements and Supplementary Data — Notes to the Financial Statements — Note 2 — Business Combinations.” The accompanying financial statements have been prepared to present the results of operations, financial condition, and cash flows of Cleco Holdings on a stand-alone basis as a holding company. Investments in subsidiaries and other investees are presented using the equity method. These financial statements should be read in conjunction with Cleco’s consolidated financial statements.
At December 31, 2019, and 2018, Cleco Holdings had no short-term debt outstanding. At December 31, 2019, Cleco Holding’s long-term debt outstanding was $1.67 billion, of which $63.3 million was due within one year. The amount due within one year represents principal payments on Cleco Holdings’ debt as required by the Cleco Cajun Transaction commitments to the LPSC. In connection with the Cleco Cajun Transaction on February 4, 2019, Cleco Holdings borrowed $300.0 million under a new bridge loan agreement and $100.0 million under a new term loan agreement. Both loan agreements are variable rate debt and have a three-year term. Both loan agreements contain certain financial covenants, including requiring Cleco Holdings to maintain (i) a debt to capital ratio (as defined in the applicable agreement) below 65% and (ii) a rating applicable to Cleco Holdings’ senior debt rating (as defined in the applicable agreement). On September 11, 2019, Cleco Holdings completed the private placement of $300.0 million aggregate principal amount of its 3.375% senior notes due September 15, 2029. The proceeds from the issuance were used to repay the remaining amounts due under the $300.0 million bridge loan agreement and to repay a portion of the $100.0 million term loan agreement. The senior notes are governed by an indenture entered into between Cleco Holdings and a trustee. The indenture contains certain covenants that restrict Cleco Holdings’ ability to merge, consolidate, transfer, or lease all or substantially all of its assets or create or incur certain liens. Upon approval of the Cleco Cajun Transaction, commitments were made to the LPSC by Cleco Holdings, including repayment of $400.0 million of Cleco Holdings’ debt by December 31, 2024. As of December 31, 2019, Cleco Holdings was in compliance with these commitments. The cumulative minimum principal amounts committed to be repaid for each year through 2024 are as follows:
In connection with the Cleco Cajun Transaction, Cleco Holdings increased its credit facility capacity by $75.0 million, for a total credit facility of $175.0 million. All other terms remained the same. The principal amounts payable under long-term debt agreements for each year through 2024 and thereafter are as follows:
Some provisions in Cleco Power’s debt instruments restrict the amount of equity available for distribution to Cleco Holdings by Cleco Power by requiring Cleco Power’s total indebtedness to be less than or equal to 65% of total capitalization. In addition, the 2016 Merger Commitments provide for limitations on the amount of distributions that may be paid from Cleco Power to Cleco Holdings, depending on Cleco Power’s common equity ratio and its corporate credit ratings. The following table summarizes the cash distributions Cleco Holdings received from affiliates during 2019, 2018, and 2017:
During both years ended December 31, 2019, and 2017, Cleco Holdings made no non-cash equity contributions to affiliates. During the year ended December 31, 2018, Cleco Holdings made $1.8 million and $2.1 million in non-cash equity contributions to Perryville and Attala, respectively. During the year ended December 31, 2019, Cleco Holdings made $962.2 million of contributions to Cleco Cajun to finance the Cleco Cajun Transaction. During the year ended December 31, 2018, Cleco Holdings made $1.3 million of contributions to Cleco Cajun. During the year ended December 31, 2017, Cleco Holdings made no cash contributions to affiliates. During the year ended December 31, 2019, Cleco Holdings received $384.9 million equity contributions from Cleco Group. During both years ended December 31, 2018, and 2017, Cleco Holdings received no equity contributions from Cleco Group. During the year ended December 31, 2019, Cleco Holdings made no distribution payments to Cleco Group. During the years ended December 31, 2018, and 2017, Cleco Holdings made $71.4 million and $84.1 million, respectively, of distribution payments to Cleco Group.
Cleco Holdings’ (Parent Company Only) Condensed Statements of Income reflect income tax expense (benefit) for the following line items:
For information regarding the TCJA, see Part II, Item 8, “Financial Statements and Supplementary Data — Notes to the Financial Statements — Note 11 — Income Taxes — TCJA.”
For information regarding commitments and contingencies related to Cleco Holdings, see Part II, Item 8, “Financial Statements and Supplementary Data — Notes to the Financial Statements — Note 15 — Litigation, Other Commitments and Contingencies, and Disclosures about Guarantees.” |
Intangible Assets, Intangible Liabilities, and Goodwill - Narrative (Details) - USD ($) |
12 Months Ended | |||||
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Dec. 31, 2019 |
Aug. 01, 2019 |
Feb. 04, 2019 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
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Acquired Finite-Lived Intangible Assets [Line Items] | ||||||
Expected amortization in the year 2020 | $ 26,372,000 | |||||
Goodwill | 1,490,797,000 | $ 1,490,797,000 | $ 1,490,797,000 | |||
Carrying value of equity | 2,643,006,000 | 2,124,740,000 | 2,096,357,000 | $ 2,046,763,000 | ||
CLECO POWER | ||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||
Expected amortization in the year 2020 | 500,000 | |||||
Impairment of goodwill | 0 | |||||
Equity, fair value | $ 3,970,000,000 | |||||
Carrying value of equity | $ 1,713,392,000 | $ 3,400,000,000 | $ 1,594,533,000 | $ 1,550,679,000 | $ 1,535,202,000 | |
Excess of the fair value over the carrying value, percent | 16.80% | |||||
Excess of the fair value over the carrying value | $ 570,400,000 | |||||
Accumulated impairment charges | $ 0 | |||||
LTSA | ||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||
Intangible liabilities | $ 24,100,000 | |||||
Transmission Service Agreement | ||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||
Preliminary fair value of intangible liabilities | $ 14,200,000 |
Disclosures about Segments |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosures about Segments |
Cleco Cleco’s reportable segments are based on its method of internal reporting, which disaggregates business units by its first-tier subsidiary. Cleco’s reportable segments are Cleco Power and Cleco Cajun. Each reportable segment engages in business activities from which it earns revenue and incurs expenses. Segment managers report periodically to Cleco’s CEO with discrete financial information and, at least quarterly, present discrete financial information to Cleco and Cleco Power’s Boards of Managers. The reportable segment prepares budgets that are presented to and approved by Cleco and Cleco Power’s Boards of Managers. The column shown as Other in the following tables includes the holding company, a shared services subsidiary, an investment subsidiary, and a subsidiary formed to facilitate the Cleco Cajun Transaction. Upon the completion of the Cleco Cajun Transaction on February 4, 2019, Cleco Cajun became a new reportable segment. For more information on the transaction, see Note 3 — “Business Combinations.” The financial results in the following tables are presented on an accrual basis. The historical segment information was not recast because the Cleco Cajun segment only consists of the newly acquired business. There were no other changes to Cleco’s existing reportable segments. Management evaluates the performance of its segments and allocates resources to them based on segment profit and the requirements to implement strategic initiatives and projects to meet current business objectives. Material intercompany transactions occur on a regular basis. These intercompany transactions relate primarily to joint and common administrative support services as well as transmission services provided by Cleco Power to Cleco Cajun.
Cleco Power Cleco Power is a vertically integrated, regulated electric utility operating within Louisiana and Mississippi and is viewed as one unit by management. Discrete financial reports are prepared only at the company level. |
Affiliate Transactions |
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Related Party Transactions [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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, 2019, 2018, and 2017. At December 31, 2019, Cleco Holdings had accounts payable of $33.8 million due from Cleco Group primarily for affiliate settlement of taxes payable. At December 31, 2018, Cleco Holdings had no accounts payable due to Cleco Group. For the year ended December 31, 2019, Cleco Holdings made no distribution payments to Cleco Group. For the year ended December 31, 2018, Cleco Holdings made $71.4 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:
The majority of the services provided by Cleco Power relates to the lease of office space to Support Group and transmission services to Cleco Cajun. 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:
Cleco Power had the following affiliate receivable and payable balances associated with the service agreements:
During 2019, 2018, and 2017, Cleco Power made $20.0 million, $121.4 million, and $135.0 million, respectively, of distribution payments to Cleco Holdings. Cleco Power received no equity contributions from Cleco Holdings in 2019, 2018, and 2017. 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 2019 and 2018:
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Leases |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases |
Cleco maintains operating and finance leases in its ordinary course of business activities. Effective January 1, 2019, Cleco adopted new guidance which requires organizations to recognize lease assets and lease liabilities on the balance sheet and disclose key information about leasing arrangements. A lease is deemed to exist when the right to control the use of identified property, plant, or equipment is conveyed through a contract for a certain period of time and consideration is paid. For more information on how leases are identified and on the new guidance, see Note 2 — “Summary of Significant Accounting Policies — Leases” and “— Recent Authoritative Guidance.” Operating Leases Cleco Power leases utility systems from two municipalities and one non-municipal public body. The first municipal lease had a term of 10 years and was set to expire on August 11, 2021. On July 9, 2019, this municipal lease was renewed for an additional term of 10 years and expires on August 11, 2031. The second municipal lease has a term of 10 years and expires on May 13, 2028. The non-municipal lease has a term of 27 years and expires on July 31, 2039. Each utility system lease contains fixed and variable components, as well as provisions for extensions. Cleco Power has leases for 200 railcars for coal transportation. One lease for 115 railcars expires on March 31, 2021, and the other lease for 85 railcars expires on March 31, 2020. Cleco Cajun has a lease for 135 railcars for coal transportation, which commenced in February 2019 and was a short-term lease with an initial term of 12 months. On January 27, 2020, this lease was renewed and expires on March 31, 2021. This lease renews for additional one-month terms unless Cleco Cajun chooses to terminate. Cleco reassesses its need for the railcars upon the expiration of each term. Cleco pays a monthly rental fee per car. The railcar leases do not contain contingent rent payments. Cleco Power has leases for three towboats in order to transport petroleum coke to Madison Unit 3. Each of the towboat leases has a term of 10 years and expires on March 31, 2028. Under these agreements, the rates are adjusted annually per the Producer Price Index. Each lease contains provisions for a five-year extension. Cleco and Cleco Power’s remaining operating leases provide for office and operating facilities, office equipment, and tower rentals. 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 December 31, 2019:
The following table is a summary of expected operating lease payments for Cleco and Cleco Power at December 31, 2018:
Finance Lease Prior to September 2017, Cleco Power had an agreement with Savage Services for barges in order to transport petroleum coke and limestone to Madison Unit 3 that met the accounting definition of a finance lease. In September 2017, Cleco Power entered into a new agreement for use of the barges on a month-to-month basis that met the accounting definition of an operating lease. In April 2018, Cleco Power entered into an agreement with Savage Inland Marine for continued use of the 42 barges used to transport petroleum coke through March 2033. The agreement meets the accounting definition of a finance lease. The barge lease rate contains both a fixed and variable component, of which the latter is adjusted every third anniversary of the agreement for estimated executory costs. If the barges are idle, the lessor is required to attempt to sublease the barges to third parties with the revenue reducing Cleco Power’s lease payment. This agreement contains a provision for early termination upon the occurrence of any one of four cancellation events. For the years ended December 31, 2019, 2018, and 2017, Cleco Power paid $2.2 million, $2.0 million, and $2.5 million, respectively, in lease payments. For the years ended December 31, 2019, 2018, and 2017, Cleco Power received $1.7 million, $0.5 million, and $0.3 million, respectively, of revenue from subleases. The following is an analysis of the leased property under the 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 December 31, 2019:
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:
Additional Lessee Disclosures Cleco and Cleco Power’s total lease cost includes amounts on the income statement, as well as amounts capitalized as part of property, plant, or equipment or inventory. The following tables reflect total lease costs for Cleco and Cleco Power for the year ended December 31, 2019:
The following tables present additional information related to Cleco and Cleco Power’s operating and finance leases as of and for the year ended December 31, 2019:
Lessor Agreements Upon the closing of the Cleco Cajun Transaction, Cleco assumed two lessor contracts leasing land to farmers for a term of one year. Both of these lessor contracts are classified as operating leases. For more information on the Cleco Cajun Transaction, see Note 3 — “Business Combinations.” Cottonwood Sale Leaseback Agreement Upon closing the Cleco Cajun Transaction, the Cottonwood Sale Leaseback was executed. Under the terms of the lease, NRG Energy will operate the Cottonwood Plant, incur all costs, and receive all revenues from the operations of the plant. Cottonwood Energy will receive fixed lease payments of $40.0 million per year and variable lease payments for LTSA costs and property taxes paid by NRG Energy on behalf of Cleco. Cleco may terminate the lease contract under specific circumstances stated in the lease contract. The residual value under the Cottonwood Sale Leaseback is expected to be recovered through sales of power generation from the plant. The residual value of the Cottonwood Plant has been determined using the plant’s estimated economic life. Cleco Cajun is Cleco’s only entity with lessor arrangements. Cleco Cajun’s lease income under the Cottonwood Sale Leaseback for the year ended December 31, 2019, was as follows:
(1) The deferred lease revenue resulting from the fair value of the lease between Cottonwood Energy and a special-purpose entity that is a subsidiary of NRG Energy. The remaining minimum lease payments to be received under the Cottonwood Sale Leaseback are as follows:
Depreciation expense associated with Cleco’s property under the Cottonwood Sale Leaseback for the year ended December 31, 2019, was $22.7 million. Cleco calculated depreciation on a straight-line basis over the useful life of the asset. Property associated with the Cottonwood Sale Leaseback was as follows:
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Leases |
Cleco maintains operating and finance leases in its ordinary course of business activities. Effective January 1, 2019, Cleco adopted new guidance which requires organizations to recognize lease assets and lease liabilities on the balance sheet and disclose key information about leasing arrangements. A lease is deemed to exist when the right to control the use of identified property, plant, or equipment is conveyed through a contract for a certain period of time and consideration is paid. For more information on how leases are identified and on the new guidance, see Note 2 — “Summary of Significant Accounting Policies — Leases” and “— Recent Authoritative Guidance.” Operating Leases Cleco Power leases utility systems from two municipalities and one non-municipal public body. The first municipal lease had a term of 10 years and was set to expire on August 11, 2021. On July 9, 2019, this municipal lease was renewed for an additional term of 10 years and expires on August 11, 2031. The second municipal lease has a term of 10 years and expires on May 13, 2028. The non-municipal lease has a term of 27 years and expires on July 31, 2039. Each utility system lease contains fixed and variable components, as well as provisions for extensions. Cleco Power has leases for 200 railcars for coal transportation. One lease for 115 railcars expires on March 31, 2021, and the other lease for 85 railcars expires on March 31, 2020. Cleco Cajun has a lease for 135 railcars for coal transportation, which commenced in February 2019 and was a short-term lease with an initial term of 12 months. On January 27, 2020, this lease was renewed and expires on March 31, 2021. This lease renews for additional one-month terms unless Cleco Cajun chooses to terminate. Cleco reassesses its need for the railcars upon the expiration of each term. Cleco pays a monthly rental fee per car. The railcar leases do not contain contingent rent payments. Cleco Power has leases for three towboats in order to transport petroleum coke to Madison Unit 3. Each of the towboat leases has a term of 10 years and expires on March 31, 2028. Under these agreements, the rates are adjusted annually per the Producer Price Index. Each lease contains provisions for a five-year extension. Cleco and Cleco Power’s remaining operating leases provide for office and operating facilities, office equipment, and tower rentals. 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 December 31, 2019:
The following table is a summary of expected operating lease payments for Cleco and Cleco Power at December 31, 2018:
Finance Lease Prior to September 2017, Cleco Power had an agreement with Savage Services for barges in order to transport petroleum coke and limestone to Madison Unit 3 that met the accounting definition of a finance lease. In September 2017, Cleco Power entered into a new agreement for use of the barges on a month-to-month basis that met the accounting definition of an operating lease. In April 2018, Cleco Power entered into an agreement with Savage Inland Marine for continued use of the 42 barges used to transport petroleum coke through March 2033. The agreement meets the accounting definition of a finance lease. The barge lease rate contains both a fixed and variable component, of which the latter is adjusted every third anniversary of the agreement for estimated executory costs. If the barges are idle, the lessor is required to attempt to sublease the barges to third parties with the revenue reducing Cleco Power’s lease payment. This agreement contains a provision for early termination upon the occurrence of any one of four cancellation events. For the years ended December 31, 2019, 2018, and 2017, Cleco Power paid $2.2 million, $2.0 million, and $2.5 million, respectively, in lease payments. For the years ended December 31, 2019, 2018, and 2017, Cleco Power received $1.7 million, $0.5 million, and $0.3 million, respectively, of revenue from subleases. The following is an analysis of the leased property under the 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 December 31, 2019:
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:
Additional Lessee Disclosures Cleco and Cleco Power’s total lease cost includes amounts on the income statement, as well as amounts capitalized as part of property, plant, or equipment or inventory. The following tables reflect total lease costs for Cleco and Cleco Power for the year ended December 31, 2019:
The following tables present additional information related to Cleco and Cleco Power’s operating and finance leases as of and for the year ended December 31, 2019:
Lessor Agreements Upon the closing of the Cleco Cajun Transaction, Cleco assumed two lessor contracts leasing land to farmers for a term of one year. Both of these lessor contracts are classified as operating leases. For more information on the Cleco Cajun Transaction, see Note 3 — “Business Combinations.” Cottonwood Sale Leaseback Agreement Upon closing the Cleco Cajun Transaction, the Cottonwood Sale Leaseback was executed. Under the terms of the lease, NRG Energy will operate the Cottonwood Plant, incur all costs, and receive all revenues from the operations of the plant. Cottonwood Energy will receive fixed lease payments of $40.0 million per year and variable lease payments for LTSA costs and property taxes paid by NRG Energy on behalf of Cleco. Cleco may terminate the lease contract under specific circumstances stated in the lease contract. The residual value under the Cottonwood Sale Leaseback is expected to be recovered through sales of power generation from the plant. The residual value of the Cottonwood Plant has been determined using the plant’s estimated economic life. Cleco Cajun is Cleco’s only entity with lessor arrangements. Cleco Cajun’s lease income under the Cottonwood Sale Leaseback for the year ended December 31, 2019, was as follows:
(1) The deferred lease revenue resulting from the fair value of the lease between Cottonwood Energy and a special-purpose entity that is a subsidiary of NRG Energy. The remaining minimum lease payments to be received under the Cottonwood Sale Leaseback are as follows:
Depreciation expense associated with Cleco’s property under the Cottonwood Sale Leaseback for the year ended December 31, 2019, was $22.7 million. Cleco calculated depreciation on a straight-line basis over the useful life of the asset. Property associated with the Cottonwood Sale Leaseback was as follows:
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Accounting |
The amounts reflected in Cleco and Cleco Power’s Consolidated Balance Sheets at December 31, 2019, and 2018, for cash equivalents, restricted cash equivalents, accounts receivable, other accounts receivable, short-term debt, and accounts payable approximate fair value because of their short-term nature. Cleco applies the provisions of the fair value measurement standard to its non-recurring, non-financial measurements including business combinations as well as impairment related to goodwill and other long-lived assets. 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 Consolidated Balance Sheets:
* The carrying value of long-term debt does not include deferred issuance costs of $13.7 million at December 31, 2019, and $10.3 million at December 31, 2018.
* The carrying value of long-term debt does not include deferred issuance costs of $7.4 million at December 31, 2019, and $8.3 million at December 31, 2018. Long-term debt liability consists of a single class. In order to fund capital requirements, Cleco issues fixed and variable rate long-term debt with various tenors. The fair value of this class fluctuates as the market interest rates for fixed and variable rate debt with similar tenors and credit ratings change. The fair value of the debt could also change from period to period due to changes in the credit rating of the Cleco entity by which the debt was issued. The fair value of long-term debt is classified as Level 2 in the fair value hierarchy. Fair Value Measurements and Disclosures Cleco classifies assets and liabilities that are measured at their fair value according to three different levels depending on the inputs used in determining fair value. The following tables disclose for Cleco and Cleco Power the fair value of financial assets and liabilities measured on a recurring basis:
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:
The following tables quantify the significant unobservable inputs used in developing the fair value of Level 3 positions for Cleco and Cleco Power as of December 31, 2019:
Cleco utilizes different valuation techniques for fair value calculations. In order to measure the fair value for Level 1 assets and liabilities, Cleco obtains the closing price from published indices in active markets for the various instruments and multiplies this price by the appropriate volume of instruments held. Level 2 fair values are determined by obtaining the closing price of similar assets and liabilities from published indices in active markets. Institutional money market funds assets are discounted to the current period using a U.S. Treasury published interest rate as a proxy for a risk-free rate of return. Level 3 fair values occur in situations in which there is little, if any, market activity for the asset or liability at the measurement date and prices are not observable. Cleco has consistently applied the Level 2 and Level 3 fair value techniques from fiscal period to fiscal period. Significant increases or decreases in any of those inputs in isolation would result in a significantly different fair value measurement. The assets and liabilities reported at fair value are grouped into classes based on the underlying nature and risks associated with the individual asset or liability. At December 31, 2019, Cleco and Cleco Power were exposed to concentrations of credit risk through their short-term investments classified as cash equivalents and restricted cash equivalents. The institutional money market funds were reported on Cleco’s Consolidated Balance Sheets in cash and cash equivalents, current restricted cash and cash equivalents, and non-current restricted cash and cash equivalents of $103.4 million, $11.1 million, and $15.1 million, respectively, at December 31, 2019, and $103.8 million, $11.2 million, and $18.7 million, respectively, at December 31, 2018. At Cleco Power, the institutional money market funds were reported on Cleco Power’s Consolidated Balance Sheets in cash and cash equivalents, current restricted cash and cash equivalents, and non-current restricted cash and cash equivalents of $49.5 million, $11.1 million, and $14.3 million, respectively, at December 31, 2019, and $26.1 million, $11.2 million, and $18.6 million, respectively, at December 31, 2018. If the money market funds failed to perform under the terms of the investments, Cleco and Cleco Power would be exposed to a loss of the invested amounts. Collateral on these types of investments is not required by either Cleco or Cleco Power. The Level 2 institutional money market funds asset consists of a single class. In order to capture interest income and minimize risk, cash is invested in money market funds that invest primarily in short-term securities issued by the U. S. Treasury to maintain liquidity and achieve the goal of a net asset value of a dollar. The risks associated with this class are counterparty risk of the fund manager and risk of price volatility associated with the underlying securities of the fund. Other commodity derivatives include fixed price physical forwards and swap transactions. These contracts contain counterparty credit risk because they are transacted directly with a counterparty and are not cleared on an exchange. These other commodity derivatives are recorded at fair value and categorized as Level 2 because pricing is indexed to other contracts. Cleco Power and Cleco Cajun’s FTRs were priced using MISO’s monthly auction prices. Forward seasonal periods are not included in every monthly auction; therefore, the average of the most recent seasonal auction prices is used for monthly valuation. FTRs are categorized as Level 3 fair value measurements because the only relevant pricing available comes from MISO auctions, which occur monthly in the Multi-Period Monthly Auction. During the years ended December 31, 2019, and 2018, Cleco did not experience any transfers between levels within the fair value hierarchy. Commodity Contracts The following tables present the fair values of derivative instruments and their respective line items as recorded on Cleco and Cleco Power’s Consolidated Balance Sheets at December 31, 2019, and 2018:
The following tables present the effect of derivatives not designated as hedging instruments on Cleco and Cleco Power’s Consolidated Statements of Income for the years December 31, 2019, 2018, and 2017:
(1) For the years ended December 31, 2019, 2018, and 2017, unrealized gains (losses) associated with FTRs for Cleco Power of $(1.7) million, $11.9 million and $(1.4) million, respectively, were reported through Accumulated deferred fuel on the balance sheet.
(1) For the years ended December 31, 2019, 2018, and 2017, unrealized gains (losses) associated with FTRs of $(0.9) million, $11.9 million, and $(1.4) million, respectively, were reported through Accumulated deferred fuel on the balance sheet. The total volume of FTRs that Cleco Power had outstanding at December 31, 2019, and 2018 was 9.2 million MWh and 8.7 million MWh, respectively. The total volume of FTRs that Cleco had outstanding at December 31, 2019, and 2018 was 14.6 million MWh and 8.7 million MWh, respectively. At December 31, 2019, Cleco had 58.5 million MMBtus outstanding in other commodity derivatives. |
Schedule I Financial Statements of Cleco Holdings (Parent Company Only) - Debt (Details) |
1 Months Ended | 7 Months Ended | 12 Months Ended | ||||
---|---|---|---|---|---|---|---|
Feb. 05, 2019
USD ($)
|
Feb. 04, 2019
USD ($)
|
Jan. 31, 2019
USD ($)
|
Sep. 11, 2019
USD ($)
|
Dec. 31, 2019
USD ($)
|
Dec. 31, 2018
USD ($)
|
Dec. 31, 2017
USD ($)
|
|
Condensed Financial Statements, Captions [Line Items] | |||||||
Short-term debt outstanding | $ 0 | $ 0 | |||||
Long-term debt outstanding | 3,190,000,000 | ||||||
Repayments of long-term debt | 390,571,000 | 19,193,000 | $ 17,896,000 | ||||
Payments on credit facilities | 108,000,000 | 0 | 179,000,000 | ||||
For the year ending Dec. 31, | |||||||
2020 | 133,300,000 | ||||||
2021 | 200,000,000 | ||||||
2022 | 267,700,000 | ||||||
2023 | 333,300,000 | ||||||
Cleco Holdings | |||||||
Condensed Financial Statements, Captions [Line Items] | |||||||
Short-term debt outstanding | 0 | 0 | |||||
Long-term debt outstanding | 1,670,000,000 | ||||||
Long-term debt and capital leases due within one year | 63,300,000 | ||||||
Debt term | 3 years | ||||||
Repayments of long-term debt | 370,000,000 | 0 | 0 | ||||
Payments on credit facilities | 75,000,000 | $ 0 | $ 73,000,000 | ||||
For the year ending Dec. 31, | |||||||
2019 | 66,700,000 | ||||||
2020 | 133,300,000 | ||||||
2021 | 200,000,000 | ||||||
2022 | 267,700,000 | ||||||
2023 | 333,300,000 | ||||||
2024 | 400,000,000 | ||||||
For the year ending Dec. 31, | |||||||
2020 | 0 | ||||||
2021 | 330,000,000 | ||||||
2022 | 0 | ||||||
2023 | 165,000,000 | ||||||
2024 | 0 | ||||||
Thereafter | $ 1,185,000,000 | ||||||
Bridge Loan | Cleco Holdings | |||||||
Condensed Financial Statements, Captions [Line Items] | |||||||
Aggregate principal amount | $ 300,000,000.0 | ||||||
Term Loan | Cleco Holdings | |||||||
Condensed Financial Statements, Captions [Line Items] | |||||||
Aggregate principal amount | $ 100,000,000.0 | ||||||
Cleco Holdings | |||||||
Condensed Financial Statements, Captions [Line Items] | |||||||
Debt term | 3 years | ||||||
Debt to capital ratio | 0.65 | ||||||
Cleco Holdings | Senior Notes 3.375% Due September 15, 2029 | |||||||
Condensed Financial Statements, Captions [Line Items] | |||||||
Aggregate principal amount | $ 300,000,000.0 | ||||||
Interest rate | 3.375% | ||||||
Cleco Holdings | Bridge Loan Agreement | |||||||
Condensed Financial Statements, Captions [Line Items] | |||||||
Repayments of long-term debt | $ 300,000,000 | ||||||
Cleco Holdings | Bank Term Loan Agreement | |||||||
Condensed Financial Statements, Captions [Line Items] | |||||||
Repayments of long-term debt | $ 100,000,000 | ||||||
Cleco Holdings | Line of Credit | |||||||
Condensed Financial Statements, Captions [Line Items] | |||||||
Increase in credit facility capacity | $ 75,000,000.0 | ||||||
Maximum borrowing capacity | 175,000,000 | ||||||
Payments on credit facilities | $ 75,000,000 | ||||||
Cleco Holdings | Bridge Loan | |||||||
Condensed Financial Statements, Captions [Line Items] | |||||||
Aggregate principal amount | 300,000,000.0 | ||||||
Cleco Holdings | Term Loan | |||||||
Condensed Financial Statements, Captions [Line Items] | |||||||
Aggregate principal amount | 100,000,000.0 | ||||||
NRG South Central | |||||||
Condensed Financial Statements, Captions [Line Items] | |||||||
Repayments of long-term debt | 400,000,000 | $ 400,000,000 | |||||
Revolving Credit Facility | Cleco Holdings | |||||||
Condensed Financial Statements, Captions [Line Items] | |||||||
Payments on credit facilities | $ 75,000,000 | ||||||
Revolving Credit Facility | Cleco Holdings | |||||||
Condensed Financial Statements, Captions [Line Items] | |||||||
Maximum borrowing capacity | $ 175,000,000.0 |
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2019 |
Dec. 31, 2018 |
Dec. 31, 2017 |
|
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance, beginning | $ 2,124,740 | $ 2,096,357 | $ 2,046,763 |
Amounts reclassified from accumulated other comprehensive loss | |||
Reclassification of net gain to interest charges | 0 | ||
Balance, ending | 2,643,006 | 2,124,740 | 2,096,357 |
CLECO POWER | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance, beginning | 1,594,533 | 1,550,679 | 1,535,202 |
Other comprehensive income before reclassifications | |||
Postretirement benefit adjustments incurred during the year | (10,344) | 954 | (948) |
Amounts reclassified from accumulated other comprehensive loss | |||
Amortization of postretirement benefit net loss | 687 | 1,789 | 476 |
Reclassification of net gain to interest charges | 254 | 254 | 211 |
Reclassification of effect of tax rate change | (2,496) | ||
Balance, ending | 1,713,392 | 1,594,533 | 1,550,679 |
POSTRETIREMENT BENEFIT NET GAIN (LOSS) | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance, beginning | 1,786 | (2,921) | 1,500 |
Other comprehensive income before reclassifications | |||
Postretirement benefit adjustments incurred during the year | (18,877) | 3,681 | (3,898) |
Amounts reclassified from accumulated other comprehensive loss | |||
Amortization of postretirement benefit net loss | (422) | 1,615 | (523) |
Reclassification of effect of tax rate change | (589) | ||
Balance, ending | (17,513) | 1,786 | (2,921) |
POSTRETIREMENT BENEFIT NET GAIN (LOSS) | CLECO POWER | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance, beginning | (7,060) | (8,377) | (7,905) |
Other comprehensive income before reclassifications | |||
Postretirement benefit adjustments incurred during the year | (10,344) | 954 | (948) |
Amounts reclassified from accumulated other comprehensive loss | |||
Amortization of postretirement benefit net loss | 687 | 1,789 | 476 |
Reclassification of net gain to interest charges | 0 | 0 | |
Reclassification of effect of tax rate change | (1,426) | ||
Balance, ending | (16,717) | (7,060) | (8,377) |
NET (LOSS) GAIN ON CASH FLOW HEDGES | CLECO POWER | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance, beginning | (6,122) | (5,306) | (5,517) |
Amounts reclassified from accumulated other comprehensive loss | |||
Reclassification of net gain to interest charges | 254 | 254 | 211 |
Reclassification of effect of tax rate change | (1,070) | ||
Balance, ending | (5,868) | (6,122) | (5,306) |
TOTAL AOCI | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance, beginning | 1,786 | (2,921) | 1,500 |
Amounts reclassified from accumulated other comprehensive loss | |||
Reclassification of effect of tax rate change | (589) | ||
Balance, ending | (17,513) | 1,786 | (2,921) |
TOTAL AOCI | CLECO POWER | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance, beginning | (13,182) | (13,683) | (13,422) |
Amounts reclassified from accumulated other comprehensive loss | |||
Reclassification of effect of tax rate change | (2,496) | ||
Balance, ending | $ (22,585) | $ (13,182) | $ (13,683) |
Schedule I Financial Statements of Cleco Holdings (Parent Company Only) - Condensed Statements of Comprehensive Income Parenthetical (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2019 |
Dec. 31, 2018 |
Dec. 31, 2017 |
|
Condensed Financial Statements, Captions [Line Items] | |||
Net tax expense (benefit) of amortization of post-retirement benefit net losses | $ (6,808) | $ 1,868 | $ (2,764) |
Cleco Holdings | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net tax expense (benefit) of amortization of post-retirement benefit net losses | $ (6,808) | $ 1,868 | $ (2,764) |
Leases (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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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 December 31, 2019:
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Summary of Expected Operating Lease Payments | The following table is a summary of expected operating lease payments for Cleco and Cleco Power at December 31, 2018:
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Analysis of Leased Property Under Finance Leases, Supplemental Balance Sheet Information, and Property Associated with Sale Leaseback | Property associated with the Cottonwood Sale Leaseback was as follows:
The following is an analysis of the leased property under the finance lease:
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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 December 31, 2019:
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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:
The principal amounts payable under the finance lease agreement for each year through 2024 and thereafter are as follows:
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Total Lease Costs, Supplemental Cash Flow Information, and Other Supplemental Information | The following tables present additional information related to Cleco and Cleco Power’s operating and finance leases as of and for the year ended December 31, 2019:
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Lease Income Under Cottonwood Sale Leaseback | Cleco Cajun is Cleco’s only entity with lessor arrangements. Cleco Cajun’s lease income under the Cottonwood Sale Leaseback for the year ended December 31, 2019, was as follows:
(1) The deferred lease revenue resulting from the fair value of the lease between Cottonwood Energy and a special-purpose entity that is a subsidiary of NRG Energy. |
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Remaining Minimum Lease Payments To Be Received | The remaining minimum lease payments to be received under the Cottonwood Sale Leaseback are as follows:
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CLECO POWER | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lessor, Lease, Description [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Lease Costs, Supplemental Cash Flow Information, and Other Supplemental Information | The following tables reflect total lease costs for Cleco and Cleco Power for the year ended December 31, 2019:
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Schedule II Valuation and Qualifying Accounts |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule II - Valuation and Qualifying Accounts |
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Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands |
Dec. 31, 2019 |
Dec. 31, 2018 |
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Accumulated Deferred Federal and State Income Tax Assets and Liabilities [Line Items] | ||
Depreciation and property basis differences | $ (862,263) | $ (664,996) |
Net operating loss carryforward | 120,955 | 0 |
NMTC | 92,364 | 86,673 |
Fuel costs | (3,984) | (8,339) |
Other comprehensive income | 10,612 | 640 |
Regulated operations regulatory liability, net | 34,836 | 39,808 |
Postretirement benefits | 22,691 | 19,580 |
Merger fair value adjustments | (52,957) | (56,725) |
Other | (19,312) | (24,671) |
Accumulated deferred federal and state income taxes, net | (657,058) | (608,030) |
CLECO POWER | ||
Accumulated Deferred Federal and State Income Tax Assets and Liabilities [Line Items] | ||
Depreciation and property basis differences | (705,423) | (666,224) |
Net operating loss carryforward | 2,714 | 0 |
Fuel costs | (5,608) | (8,339) |
Other comprehensive income | 7,510 | 4,192 |
Regulated operations regulatory liability, net | 34,836 | 39,808 |
Postretirement benefits | 10,044 | 11,081 |
Other | (1,907) | (11,283) |
Accumulated deferred federal and state income taxes, net | $ (657,834) | $ (630,765) |
Fair Value Accounting (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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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 Consolidated Balance Sheets:
* The carrying value of long-term debt does not include deferred issuance costs of $13.7 million at December 31, 2019, and $10.3 million at December 31, 2018. |
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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:
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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:
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Fair Value Measurement Inputs and Valuation Techniques | The following tables quantify the significant unobservable inputs used in developing the fair value of Level 3 positions for Cleco and Cleco Power as of December 31, 2019:
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Derivatives Not Designated as Hedging Instrument | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The following tables present the fair values of derivative instruments and their respective line items as recorded on Cleco and Cleco Power’s Consolidated Balance Sheets at December 31, 2019, and 2018:
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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 Consolidated Statements of Income for the years December 31, 2019, 2018, and 2017:
(1) For the years ended December 31, 2019, 2018, and 2017, unrealized gains (losses) associated with FTRs for Cleco Power of $(1.7) million, $11.9 million and $(1.4) million, respectively, were reported through Accumulated deferred fuel on the balance sheet.
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CLECO POWER | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value By Balance Sheet Grouping |
* The carrying value of long-term debt does not include deferred issuance costs of $7.4 million at December 31, 2019, and $8.3 million at December 31, 2018. |
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Fair Value of Financial Assets and Liabilities Measured On A Recurring Basis |
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Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation |
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Fair Value Measurement Inputs and Valuation Techniques |
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CLECO POWER | Derivatives Not Designated as Hedging Instrument | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value |
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Effect of Derivatives On Consolidated Statements of Income |
(1) For the years ended December 31, 2019, 2018, and 2017, unrealized gains (losses) associated with FTRs of $(0.9) million, $11.9 million, and $(1.4) million, respectively, were reported through Accumulated deferred fuel on the balance sheet. |
Pension Plan and Employee Benefits - Projected Benefit Payments and Projected Receipts (Details) $ in Thousands |
Dec. 31, 2019
USD ($)
|
---|---|
PENSION BENEFITS | |
For the year ending Dec. 31, | |
2020 | $ 24,065 |
2021 | 25,293 |
2022 | 26,541 |
2023 | 27,709 |
2024 | 28,741 |
Next five years | 158,810 |
OTHER BENEFITS | |
For the year ending Dec. 31, | |
2020 | 4,472 |
2021 | 4,498 |
2022 | 4,554 |
2023 | 4,536 |
2024 | 4,531 |
Next five years | 21,706 |
SERP BENEFITS | |
For the year ending Dec. 31, | |
2020 | 4,662 |
2021 | 4,689 |
2022 | 4,698 |
2023 | 4,710 |
2024 | 4,753 |
Next five years | $ 24,861 |
Business Combinations - Purchase Price Allocation (Details) - NRG South Central $ in Thousands |
Feb. 04, 2019
USD ($)
|
---|---|
Current assets | |
Cash and cash equivalents | $ 146,494 |
Customer and other accounts receivable | 49,809 |
Energy risk management assets | 4,193 |
Other current assets | 10,056 |
Non-current assets | |
Property, plant, and equipment, net | 741,203 |
Prepayments | 36,166 |
Restricted cash and cash equivalents | 707 |
Intangible assets | 98,900 |
Other deferred charges | 133 |
Total assets acquired | 1,135,380 |
Current liabilities | |
Accounts payable | 38,478 |
Taxes payable | 723 |
Energy risk management liabilities | 241 |
Other current liabilities | 14,570 |
Non-current liabilities | |
Accumulated deferred federal and state income taxes, net | 7,165 |
Deferred lease revenue | 58,300 |
Intangible liabilities | 38,300 |
Asset retirement obligations | 15,323 |
Operating lease liabilities | 110 |
Total liabilities assumed | 173,210 |
Total purchase price consideration | 962,170 |
Fuel Inventory | |
Current assets | |
Inventory | 22,060 |
Materials And Supplies | |
Current assets | |
Inventory | $ 25,659 |
Summary of Significant Accounting Policies - Property, Plant, and Equipment (Details) - USD ($) $ in Thousands |
12 Months Ended | |||
---|---|---|---|---|
Dec. 31, 2019 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Feb. 04, 2019 |
|
Public Utility, Property, Plant and Equipment [Line Items] | ||||
Capitalized software, net | $ 168,600 | $ 7,200 | ||
Capitalized software costs, amortization | 4,917 | 2,154 | $ 2,367 | |
Property, plant and equipment, net | 4,645,011 | 3,778,795 | ||
Utility plants | ||||
Generation | 2,812,843 | 1,949,042 | ||
Distribution | 1,153,086 | 1,081,650 | ||
Transmission | 660,279 | 519,269 | ||
Other utility plant | 350,683 | 174,010 | ||
Other property, plant, and equipment | 5,364 | 4,506 | ||
Total property, plant, and equipment | 4,982,255 | 3,728,477 | ||
Accumulated depreciation | (454,874) | (303,727) | ||
Net property, plant, and equipment | $ 4,527,381 | 3,424,750 | ||
MINIMUM | ||||
Estimated Useful Lives (in years) | ||||
Utility Plants, Generation | 6 years | |||
Utility Plants, Distribution | 15 years | |||
Utility Plants, Transmission | 5 years | |||
Utility Plants, Other utility plant | 2 years | |||
Other property, plant, and equipment (in years) | 5 years | |||
MAXIMUM | ||||
Estimated Useful Lives (in years) | ||||
Utility Plants, Generation | 95 years | |||
Utility Plants, Distribution | 50 years | |||
Utility Plants, Transmission | 55 years | |||
Utility Plants, Other utility plant | 45 years | |||
Other property, plant, and equipment (in years) | 45 years | |||
CLECO POWER | ||||
Public Utility, Property, Plant and Equipment [Line Items] | ||||
Capitalized software, net | $ 166,200 | 5,800 | ||
Capitalized software costs, amortization | 4,321 | 1,607 | $ 1,887 | |
Property, plant and equipment, net | 3,696,113 | 3,562,269 | ||
Utility plants | ||||
Generation | 2,633,590 | 2,476,733 | ||
Distribution | 1,593,104 | 1,523,885 | ||
Transmission | 805,701 | 731,432 | ||
Other utility plant | 457,062 | 282,954 | ||
Total property, plant, and equipment | 5,489,457 | 5,015,004 | ||
Accumulated depreciation | (1,905,031) | (1,804,563) | ||
Net property, plant, and equipment | $ 3,584,426 | $ 3,210,441 | ||
CLECO POWER | MINIMUM | ||||
Estimated Useful Lives (in years) | ||||
Utility Plants, Generation | 10 years | |||
Utility Plants, Distribution | 15 years | |||
Utility Plants, Transmission | 5 years | |||
Utility Plants, Other utility plant | 5 years | |||
Other property, plant, and equipment (in years) | 5 years | |||
CLECO POWER | MAXIMUM | ||||
Estimated Useful Lives (in years) | ||||
Utility Plants, Generation | 95 years | |||
Utility Plants, Distribution | 50 years | |||
Utility Plants, Transmission | 55 years | |||
Utility Plants, Other utility plant | 45 years | |||
Other property, plant, and equipment (in years) | 45 years | |||
Cleco Cajun | ||||
Public Utility, Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment, net | $ 741,200 |
Summary of Significant Accounting Policies - Equity Investments (Details) - USD ($) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2019 |
Dec. 31, 2018 |
Dec. 31, 2017 |
|
Accounting Policies [Abstract] | |||
Impairments | $ 0 | $ 0 | $ 0 |
Revenue Recognition - Narrative (Details) $ in Millions |
12 Months Ended |
---|---|
Dec. 31, 2019
USD ($)
| |
Revenue from Contract with Customer [Abstract] | |
Payment terms | 20 days |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Unsatisfied performance obligations | $ 30.8 |
CLECO POWER | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Unsatisfied performance obligations | $ 30.8 |
Fair Value Accounting - Narrative (Details) MWh in Millions, MMBTU in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2019
USD ($)
MMBTU
|
Dec. 31, 2019
USD ($)
MWh
|
Dec. 31, 2018
USD ($)
MWh
|
|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash equivalents | $ 103,400,000 | $ 103,400,000 | $ 103,800,000 |
Fair value transfers, amount | $ 0 | $ 0 | $ 0 |
Energy of other commodity derivatives held (MWh / MMBtu) | 58.5 | 14.6 | 8.7 |
Restricted Cash and Cash Equivalents, Current | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Restricted cash and cash equivalents | $ 11,100,000 | $ 11,100,000 | $ 11,200,000 |
Restricted Cash and Cash Equivalents, Noncurrent | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Restricted cash and cash equivalents | 15,100,000 | 15,100,000 | 18,700,000 |
CLECO POWER | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash equivalents | 49,500,000 | $ 49,500,000 | $ 26,100,000 |
Energy of other commodity derivatives held (MWh / MMBtu) | MWh | 9.2 | 8.7 | |
CLECO POWER | Restricted Cash and Cash Equivalents, Current | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Restricted cash and cash equivalents | 11,100,000 | $ 11,100,000 | $ 11,200,000 |
CLECO POWER | Restricted Cash and Cash Equivalents, Noncurrent | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Restricted cash and cash equivalents | $ 14,300,000 | $ 14,300,000 | $ 18,600,000 |
Fair Value Accounting - Carrying Value and Estimated Fair Value (Details) - USD ($) $ in Thousands |
Dec. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Deferred debt issuance costs not included in the carrying value of long-term debt | $ 13,700 | $ 10,300 |
CARRYING VALUE | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | 3,188,664 | 2,889,631 |
FAIR VALUE | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | 3,371,915 | 2,859,924 |
CLECO POWER | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Deferred debt issuance costs not included in the carrying value of long-term debt | 7,400 | 8,300 |
CLECO POWER | CARRYING VALUE | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | 1,380,688 | 1,400,930 |
CLECO POWER | FAIR VALUE | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | $ 1,601,865 | $ 1,517,152 |
Leases - Cottonwood Sale Leaseback Agreement (Details) $ in Millions |
12 Months Ended |
---|---|
Dec. 31, 2019
USD ($)
| |
Leases [Abstract] | |
Fixed lease payments per year | $ 40.0 |
Sale leaseback transaction, depreciation expense | $ 22.7 |
Miscellaneous Financial Information (Unaudited) (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2019 |
Sep. 30, 2019 |
Jun. 30, 2019 |
Mar. 31, 2019 |
Dec. 31, 2018 |
Sep. 30, 2018 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 31, 2019 |
Dec. 31, 2018 |
Dec. 31, 2017 |
|
Quarterly Information [Line Items] | |||||||||||
Operating revenue, net | $ 409,575 | $ 487,971 | $ 397,873 | $ 344,186 | $ 296,767 | $ 358,256 | $ 299,261 | $ 276,760 | $ 1,639,605 | $ 1,231,044 | $ 1,175,646 |
Operating income | 75,573 | 101,539 | 87,196 | 50,586 | 50,004 | 86,110 | 63,709 | 44,734 | 314,894 | 244,557 | 265,227 |
Net income | 31,797 | 55,565 | 44,746 | 20,557 | 10,377 | 47,360 | 25,839 | 10,861 | 152,665 | 94,437 | 138,080 |
Distributions to member | 10,850 | 20,600 | 20,400 | 19,500 | 71,350 | 84,065 | |||||
CLECO POWER | |||||||||||
Quarterly Information [Line Items] | |||||||||||
Operating revenue, net | 281,676 | 344,977 | 272,972 | 268,745 | 299,409 | 360,899 | 301,901 | 279,387 | 1,168,370 | 1,241,596 | 1,185,196 |
Operating income | 49,985 | 78,132 | 75,446 | 44,905 | 59,786 | 96,063 | 72,602 | 50,521 | 248,468 | 278,972 | 285,245 |
Net income | 20,667 | 51,527 | 49,356 | 26,712 | 29,897 | 63,336 | 43,020 | 26,004 | 148,262 | 162,257 | 150,738 |
Distributions to member | $ 20,000 | $ 0 | $ 0 | $ 0 | $ 0 | $ 50,400 | $ 43,000 | $ 28,000 | $ 20,000 | $ 121,400 | $ 135,000 |
Schedule I Financial Statements of Cleco Holdings (Parent Company Only) - Condensed Balance Sheets (Details) - USD ($) $ in Thousands |
Dec. 31, 2019 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|---|---|
Current assets | ||||
Cash and cash equivalents | $ 116,292 | $ 110,175 | ||
Other accounts receivable | 35,731 | 27,196 | ||
Cash surrender value of trust-owned life insurance policies | 86,096 | 80,391 | ||
Total current assets | 638,075 | 564,962 | ||
Equity investment in subsidiaries | 17,072 | 18,172 | $ 18,172 | |
Other deferred charges | 39,668 | 37,701 | ||
Total assets | 7,476,298 | 6,436,814 | 6,278,382 | |
Current liabilities | ||||
Accounts payable | 158,863 | 156,589 | ||
Accounts payable - affiliate | 33,780 | 0 | ||
Interest accrued | 19,001 | 15,828 | ||
Deferred compensation | 12,115 | 10,753 | ||
Other current liabilities | 44,683 | 30,536 | ||
Total current liabilities | 511,339 | 379,050 | ||
Postretirement benefit obligations | 283,075 | 249,264 | ||
Total liabilities | 4,833,292 | 4,312,074 | ||
Commitments and contingencies (Note 6) | ||||
Member’s equity | ||||
Member’s equity | 2,643,006 | 2,124,740 | $ 2,096,357 | $ 2,046,763 |
Total liabilities and member’s equity | 7,476,298 | 6,436,814 | ||
Cleco Holdings | ||||
Current assets | ||||
Cash and cash equivalents | 15,008 | 76,938 | ||
Accounts receivable - affiliate | 14,231 | 8,374 | ||
Other accounts receivable | 2,650 | 2,755 | ||
Taxes receivable, net | 6,726 | 7,046 | ||
Cash surrender value of trust-owned life insurance policies | 68,523 | 59,894 | ||
Total current assets | 107,138 | 155,007 | ||
Equity investment in subsidiaries | 4,150,953 | 3,247,809 | ||
Accumulated deferred federal and state income taxes, net | 127,655 | 101,015 | ||
Other deferred charges | 1,831 | 4,532 | ||
Total assets | 4,387,577 | 3,508,363 | ||
Current liabilities | ||||
Long-term debt due within one year | 63,300 | 0 | ||
Accounts payable | 1,448 | 1,322 | ||
Accounts payable - affiliate | 47,184 | 18,047 | ||
Interest accrued | 11,005 | 7,576 | ||
Deferred compensation | 12,115 | 10,753 | ||
Other current liabilities | 274 | 273 | ||
Total current liabilities | 135,326 | 37,971 | ||
Postretirement benefit obligations | 4,481 | 3,894 | ||
Long-term debt, net | 1,604,764 | 1,341,758 | ||
Total liabilities | 1,744,571 | 1,383,623 | ||
Commitments and contingencies (Note 6) | ||||
Member’s equity | ||||
Member’s equity | 2,643,006 | 2,124,740 | ||
Total liabilities and member’s equity | $ 4,387,577 | $ 3,508,363 |
Business Combinations |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Business Combinations [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combinations |
On February 4, 2019, Cleco Cajun acquired from NRG Energy all of the outstanding membership interests in South Central Generating. This acquisition enabled Cleco to significantly increase the scale of its operations in Louisiana. As a result, Cleco Cajun owns:
Cleco Cajun, NRG Energy, and South Central Generating each made customary representations, warranties and covenants in the Cleco Cajun Transaction, which include customary indemnification provisions. Cleco Holdings has agreed to guarantee the obligations of Cleco Cajun, subject to certain limitations. In addition, a lease agreement was executed and delivered between Cottonwood Energy and a special-purpose entity that is a subsidiary of NRG Energy pursuant to which NRG Energy will lease back the Cottonwood Plant and will operate it no later than May 2025. Upon closing, Cottonwood Energy became a subsidiary of Cleco Cajun. Regulatory Matters In January 2019, the LPSC approved the Cleco Cajun Transaction. Approval of the transaction was conditioned upon certain commitments, including holding Cleco Power ratepayers harmless for any adverse impacts, increased costs of debt or equity, and credit rating downgrades attributable to the Cleco Cajun Transaction; the repayment of $400.0 million of Cleco Holdings’ debt by 2024; and a $4.0 million annual reduction to Cleco Power’s retail customer rates. For more information about the debt and rate reduction commitments, see Note 9 — “Debt” and Note 6 — “Regulatory Assets and Liabilities,” respectively. South Central Generating In 2017, Louisiana Generating received insurance settlement proceeds for costs incurred to resolve a lawsuit which was brought by the EPA and the LDEQ against Louisiana Generating related to Big Cajun II, Unit 3. Entergy Gulf States, as co-owner of Big Cajun II, Unit 3, is expected to be allocated a portion of the insurance settlement proceeds. Any amount allocated to Entergy Gulf States will be determined by ongoing litigation and negotiations. South Central Generating estimated this amount to be $10.0 million. As part of the Cleco Cajun Transaction, Cleco Cajun assumed the $10.0 million contingent liability and NRG Energy indemnified Cleco for losses associated with this litigation matter. As a result, Cleco also recorded a $10.0 million indemnification asset, which was included in the purchase price allocation. Prior to the Cleco Cajun Transaction, South Central Generating was involved in various litigation matters, including environmental and contract proceedings, before various courts regarding matters arising out of the ordinary course of business. Management is unable to estimate any potential losses that Cleco Cajun may ultimately be responsible for with respect to any one of these matters. As part of the Cleco Cajun Transaction, NRG Energy indemnified Cleco for losses, as of the closing date, associated with matters that existed as of the closing date, including pending litigation. Accounting for the Cleco Cajun Transaction As consideration for all of the outstanding membership interest in South Central Generating, Cleco paid cash of approximately $962.2 million, which represents the $1.0 billion acquisition price net of working capital and other adjustments of $37.8 million. In connection with the Cleco Cajun Transaction on February 4, 2019, Cleco Holdings borrowed $300.0 million under a bridge loan agreement and $100.0 million under a term loan agreement. Both loan agreements are variable rate debt and have a three-year term. Both loan agreements contain certain financial covenants, including requiring Cleco Holdings to maintain (i) a debt to capital ratio (as defined in the applicable agreement) below 65% and (ii) a rating applicable to Cleco’s senior debt rating (as defined in the applicable agreement). On September 11, 2019, Cleco Holdings refinanced the remaining amounts due under the $300.0 million bridge loan agreement and a portion of the $100.0 million term loan agreement with the proceeds from the private placement of $300.0 million aggregate principal amount of senior notes. For more information, see Note 9 — “Debt.” Also, in connection with the Cleco Cajun Transaction, Cleco Holdings increased its credit facility capacity by $75.0 million, for a total capacity of $175.0 million. All other terms remained the same. Also in connection with the Cleco Cajun Transaction on February 4, 2019, Cleco Holdings made a $75.0 million draw on its credit facility, which was repaid on February 5, 2019. The remaining cash required to finance the transaction consisted of an equity contribution from Cleco Group of $384.9 million and $102.3 million from cash on hand at Cleco Holdings. Cleco Cajun accounted for the Cleco Cajun Transaction as a business combination, and accordingly, the assets acquired and liabilities assumed were recorded at their estimated fair values as of the date of the acquisition. Cleco made certain measurement period adjustments at June 30, 2019. The following chart presents Cleco’s current purchase price allocation:
The fair values of Cleco Cajun’s acquired assets and assumed liabilities were determined based on significant estimates and assumptions, including projected future cash flows and discount rates reflecting risk inherent in those future cash flows. There were also estimates made to determine the expected useful lives of each class of assets acquired. On the date of the acquisition, fair value adjustments were recorded on Cleco’s Consolidated Balance Sheet for the difference between the contract and market price of acquired long-term wholesale power agreements. The fair value of intangible assets of $98.9 million and intangible liabilities of $14.2 million was reflected in the purchase price allocation. The valuation of the acquired intangible assets and liabilities was estimated by applying the income method, which is based upon discounted projected future cash flows associated with the underlying contracts. The power supply agreement intangible assets and liabilities are being amortized to Electric operations on Cleco’s Consolidated Statement of Income over the remaining term of the applicable agreements. As part of the Cleco Cajun Transaction, Cleco assumed an LTSA for maintenance services related to the Cottonwood Plant. The fair value of the LTSA was estimated by applying the income method. An intangible liability of $24.1 million was reflected in the purchase price allocation and is being amortized using the straight-line method over the estimated remaining life of the LTSA of seven years. The amortization is included as a reduction to the LTSA prepayments on Cleco’s Consolidated Balance Sheet. On the date of the acquisition, the fair value of the lease between Cottonwood Energy and a special-purpose entity that is a subsidiary of NRG Energy was estimated by applying the income method. Deferred lease revenue of $58.3 million was reflected in the purchase price allocation and is being amortized over the term of the lease agreement. The amortization is included in Other operations revenue on Cleco’s Consolidated Statement of Income. Valuations were performed to assess the fair value of certain assets acquired and liabilities assumed and were considered preliminary as a result of the short time period between the closing of the acquisition and the end of the first quarter of 2019. Accounting guidance provides that the allocation of the purchase price may be modified up to one year from the date of the acquisition as more information becomes available. These final valuations and assessments have been completed by the end of 2019. During the second quarter of 2019, certain modifications were made to the preliminary valuations as of February 4, 2019, due to the refinement of valuation models, assumptions, and inputs. The measurement period adjustments were based upon information obtained about facts and circumstances that existed at the acquisition date that, if known, would have affected the measurement of the amounts recognized at that date.
The measurement period adjustments resulted in an increase in electric operations revenue of $0.5 million, a decrease in other operations revenue of $0.1 million, and an increase in depreciation expense of $0.2 million recorded for the three months ended June 30, 2019. During the fourth quarter of 2019, Cleco completed its evaluation and determination of the fair value of assets and liabilities acquired in the Cleco Cajun Transaction. No modifications were made to the valuation during the third or fourth quarters of 2019. Consequently, no measurement period adjustments were made. Pro forma Impact of the Cleco Cajun Transaction The following table includes the unaudited pro forma financial information reflecting the consolidated results of operations of Cleco as if the Cleco Cajun Transaction had taken place on January 1, 2018. The pro forma net income for the year ended December 31, 2019, was adjusted to exclude nonrecurring transaction-related expenses of $4.7 million. The pro forma net income for the year ended December 31, 2018, includes nonrecurring transaction-related expenses. The unaudited pro forma financial information presented in the following table is not necessarily indicative of the consolidated results of operations that would have been achieved had the transaction taken place on the dates indicated, or the future consolidated results of operations of the combined companies.
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Jointly Owned Generation Units |
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Regulated Operations [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Jointly Owned Generation Units |
Cleco Power and Cleco Cajun operate electric generation units that are jointly owned with other utilities. The joint-owners are responsible for their own share of the capital and the operating and maintenance costs of the respective units. Cleco Power and Cleco Cajun are responsible for their own share of the direct expenses of their respective jointly owned generation units. Cleco Power’s share of expenses is included in the operating expenses on Cleco and Cleco Power’s Consolidated Statements of Income. Cleco Cajun’s share of expenses is included in the operating expenses on Cleco’s Consolidated Statement of Income. At December 31, 2019, the investment in and accumulated depreciation for each generating unit on Cleco and Cleco Power’s Consolidated Balance Sheets were as follows:
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Schedule I Financial Statements of Cleco Holdings (Parent Company Only) - Cash Distributions and Equity Contributions (Details) |
3 Months Ended | 12 Months Ended | |||||||||
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Dec. 31, 2019
USD ($)
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Sep. 30, 2019
USD ($)
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Jun. 30, 2019
USD ($)
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Mar. 31, 2019
USD ($)
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Dec. 31, 2018
USD ($)
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Sep. 30, 2018
USD ($)
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Jun. 30, 2018
USD ($)
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Mar. 31, 2018
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Dec. 31, 2019
USD ($)
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Dec. 31, 2018
USD ($)
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Dec. 31, 2017
USD ($)
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Condensed Financial Statements, Captions [Line Items] | |||||||||||
Contribution from member/parent | $ 384,900,000 | ||||||||||
Distributions to member | $ 10,850,000 | $ 20,600,000 | $ 20,400,000 | $ 19,500,000 | $ 71,350,000 | $ 84,065,000 | |||||
CLECO POWER | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Distributions to member | $ 20,000,000 | $ 0 | $ 0 | $ 0 | $ 0 | $ 50,400,000 | $ 43,000,000 | $ 28,000,000 | 20,000,000 | 121,400,000 | 135,000,000 |
CLECO POWER | Cleco Holdings | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Contribution from member/parent | 0 | 0 | 0 | ||||||||
Distributions to member | $ 20,000,000 | 121,400,000 | 135,000,000 | ||||||||
CLECO POWER | MAXIMUM | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Ratio of total indebtedness to total capitalization | 0.65 | 0.65 | |||||||||
Cleco Holdings | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Cash distributions received from affiliates | $ 225,000,000 | 121,842,000 | 149,010,000 | ||||||||
Contribution to subsidiary | 962,170,000 | 1,250,000 | 0 | ||||||||
Cleco Holdings | CLECO POWER | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Cash distributions received from affiliates | 20,000,000 | 121,400,000 | 135,000,000 | ||||||||
Cleco Holdings | Cleco Cajun | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Cash distributions received from affiliates | 205,000,000 | 0 | 0 | ||||||||
Cleco Holdings | Perryville | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Cash distributions received from affiliates | 0 | 225,000 | 6,850,000 | ||||||||
Contribution to subsidiary | 1,800,000 | ||||||||||
Cleco Holdings | Attala | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Cash distributions received from affiliates | 0 | 217,000 | 7,160,000 | ||||||||
Contribution to subsidiary | 2,100,000 | ||||||||||
Cleco Holdings | Cleco Holdings | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Contributions made to affiliates | 0 | 0 | |||||||||
Contribution from member/parent | 384,900,000 | 0 | 0 | ||||||||
Distributions to member | 0 | 71,400,000 | $ 84,100,000 | ||||||||
Cleco Holdings | Limited Liability Company | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Contributions made to affiliates | $ 962,200,000 | $ 1,300,000 |
Income Taxes - Current and Deferred Income Tax Expense (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
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Dec. 31, 2019 |
Dec. 31, 2018 |
Dec. 31, 2017 |
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Components of Income Tax Expense [Line Items] | |||
Current federal income tax expense | $ 1,600 | $ 15,304 | $ 46,520 |
Deferred federal income tax expense (benefit) | 37,963 | 5,863 | (47,329) |
Amortization of accumulated deferred investment tax credits | (191) | (236) | (662) |
Total federal income tax expense (benefit) | 39,372 | 20,931 | (1,471) |
Current state income tax expense | 1,675 | 7,771 | 3,187 |
Deferred state income tax expense | 2,118 | 680 | 5,363 |
Total state income tax expense | 3,793 | 8,451 | 8,550 |
Total tax expense | 43,165 | 29,382 | 7,079 |
Items charged or credited directly to member’s equity | |||
Total tax (benefit) expense from items charged directly to member’s equity | (6,808) | 1,868 | (2,764) |
Total federal and state income tax expense | 36,357 | 31,250 | 4,315 |
Federal deferred | |||
Items charged or credited directly to member’s equity | |||
Total tax (benefit) expense from items charged directly to member’s equity | (5,130) | 1,408 | (2,380) |
State deferred | |||
Items charged or credited directly to member’s equity | |||
Total tax (benefit) expense from items charged directly to member’s equity | (1,678) | 460 | (384) |
CLECO POWER | |||
Components of Income Tax Expense [Line Items] | |||
Current federal income tax expense | 14,781 | 44,411 | 87,433 |
Deferred federal income tax expense (benefit) | 22,443 | (9,033) | (29,190) |
Amortization of accumulated deferred investment tax credits | (191) | (236) | (662) |
Total federal income tax expense (benefit) | 37,033 | 35,142 | 57,581 |
Current state income tax expense | 9,063 | 23,293 | 14,751 |
Deferred state income tax expense | (644) | (2,511) | (5,001) |
Total state income tax expense | 8,419 | 20,782 | 9,750 |
Total tax expense | 45,452 | 55,924 | 67,331 |
Items charged or credited directly to member’s equity | |||
Total tax (benefit) expense from items charged directly to member’s equity | (3,318) | 1,058 | (164) |
Total federal and state income tax expense | 42,134 | 56,982 | 67,167 |
CLECO POWER | Federal deferred | |||
Items charged or credited directly to member’s equity | |||
Total tax (benefit) expense from items charged directly to member’s equity | (2,500) | 797 | (141) |
CLECO POWER | State deferred | |||
Items charged or credited directly to member’s equity | |||
Total tax (benefit) expense from items charged directly to member’s equity | $ (818) | $ 261 | $ (23) |
Debt (Tables) |
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Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Indebtedness | Cleco’s total indebtedness as of December 31, 2019, and 2018 was as follows:
(1)For December 31, 2019, and 2018, this amount includes unamortized debt issuance costs for Cleco Holdings of $11.9 million and $8.2 million, respectively, partially offset by deferred debt issuance costs eliminated as a result of the 2016 Merger of $5.6 million and $6.3 million, respectively. For more information, see Note 6 — “Regulatory Assets and Liabilities — Cleco Holdings’ 2016 Merger Adjustments.” |
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Future Amounts Payable Under Long-Term Debt Agreements | The principal amounts payable under long-term debt agreements for each year through 2024 and thereafter are as follows:
(1)Does not include Series A GO Zone bonds that have a maturity date of December 2038 but a mandatory tender in May 2020. As of December 31, 2019, Cleco Holdings was in compliance with these commitments. The cumulative minimum principal amounts committed to be repaid for each year through 2024 are as follows:
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Schedule of Future Minimum Lease Payments for Capital Leases | 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:
The principal amounts payable under the finance lease agreement for each year through 2024 and thereafter are as follows:
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Total Indebtedness | Cleco Power’s total indebtedness as of December 31, 2019, and 2018 was as follows:
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Pension Plan and Employee Benefits - Assumed Health Care Cost Trend Rates (Details) - OTHER BENEFITS $ in Thousands |
12 Months Ended |
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Dec. 31, 2019
USD ($)
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Defined Benefit Plan Disclosure [Line Items] | |
Effect of one-percentage point increase on total of service and interest cost components | $ 14 |
Effect of one-percentage point decrease on total of service and interest cost components | (16) |
Effect of one-percentage point increase on postretirement benefit obligation | 205 |
Effect of one-percentage point decrease on postretirement benefit obligation | $ (229) |
Revenue Recognition (Tables) |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue | Operating revenue, net for the year ended December 31, 2019, and 2018, was as follows:
(1) Includes fuel recovery revenue. (2) Includes $0.8 million of electric customer credits. (3) Amortization of intangible assets related to Cleco Power’s wholesale power supply agreements. (4) Includes $2.6 million of electric customer credits. (5) Includes $0.7 million of electric customer credits. (6) Includes $16.1 million of other miscellaneous fee revenue and $3.2 million of Teche Unit 3 SSR revenue. (7) Includes interdepartmental rents and support services. This revenue is eliminated upon consolidation. (8) Includes realized gains associated with FTRs of $12.4 million and LCFC revenue of $0.2 million. (9) Includes $57.1 million in lease revenue related to the Cottonwood Sale Leaseback and $8.4 million of deferred lease revenue amortization.
(1) Includes fuel recovery revenue. (2) Amortization of intangible assets related to wholesale power supply agreements. (3) Other revenue from contracts with customers includes $18.2 million of other miscellaneous fee revenue and $9.6 million of Teche Unit 3 SSR revenue. (4)Affiliate revenue from contracts with customers includes interdepartmental rents and support services. This revenue is eliminated upon consolidation. (5) Includes realized gains associated with FTRs of $39.3 million and LCFC revenue of $2.6 million. |
Summary of Significant Accounting Policies (Policies) |
12 Months Ended |
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Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Use of Estimates | The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. |
Principles of Consolidation | The accompanying consolidated financial statements of Cleco include the accounts of Cleco and its majority-owned subsidiaries after elimination of intercompany accounts and transactions. |
Goodwill | Goodwill is the excess of the purchase price (consideration transferred and liabilities assumed) over the estimated fair value of net assets of the acquired business and is not subject to amortization. Goodwill is assessed annually or more often if an event occurs or circumstances change that would indicate the carrying amount may be impaired. Cleco conducted its 2019 annual impairment test using an August 1, 2019, measurement date. The fair value of the Cleco Power reporting segment was estimated using a weighted combination of the income approach, which estimates fair value based on discounted cash flows, and the market approach, which estimates fair value based on market comparables within the utility and energy industries. Significant assumptions used in these fair value estimates include estimation of future cash flows related to capital expenditures, long-term rate of growth, and weighted-average cost of capital or discount rate. Changes in these assumptions could materially affect the determination of fair value and goodwill impairment at Cleco Power. |
Inatangible Assets and Liabilities | Intangible Assets and Liabilities Intangible assets include Cleco Katrina/Rita’s right to bill and collect storm recovery charges, fair value adjustments for long-term wholesale power supply agreements as well as a fair value adjustment for the valuation of the Cleco trade name. Intangible liabilities also include fair value adjustments for long-term wholesale power supply agreements and a fair value adjustment for the LTSA assumed for maintenance services related to the Cottonwood Plant. The intangible assets and liabilities are being amortized over their estimated useful lives in a manner that best reflects the economic impact derived from such assets and liabilities. Impairment will be tested if there are events or circumstances that indicate that an impairment analysis should be performed. If such an event or circumstance occurs, intangible impairment testing will be performed prior to goodwill impairment testing. Impairment is calculated as the excess of the asset and liabilities’ respective carrying amounts over their respective fair values. For more information on intangible assets and liabilities, see Note 17 — “Intangible Assets, Intangible Liabilities, and Goodwill.” |
Statements of Cash Flows | Cleco and Cleco Power’s Consolidated Statements of Cash Flows are prepared using the indirect method. This method requires adjusting net income to remove the effects of all deferrals and accruals of operating cash receipts and payments and to remove items whose cash effects are related to investing and financing cash flows. Derivatives meeting the definition of an accounting hedge are classified in the same category as the item being hedged. |
Regulation | Cleco Power is subject to regulation by FERC and the LPSC. Cleco Cajun is subject to regulation by FERC. Cleco complies with the accounting policies and practices prescribed by its regulatory commissions. Cleco Power’s retail rates are regulated by the LPSC. Cleco and Cleco Cajun’s rates for transmission services are regulated by FERC. Rates for wholesale power sales are based on market-based rates, pending FERC review of Cleco’s generation market power analysis. Cleco Power capitalizes or defers certain costs for recovery from its customers and recognizes a liability for amounts expected to be returned to its customers based on regulatory approval and management’s ongoing assessment that it is probable these items will be recovered through the ratemaking process. Regulatory assets and liabilities are amortized consistent with the treatment of the related cost in the ratemaking process. Pursuant to this regulatory approval, Cleco has recorded regulatory assets and liabilities. Any future plan adopted by the LPSC for purposes of transitioning utilities from LPSC regulation to retail competition may affect the regulatory assets and liabilities recorded by Cleco if the criteria for the application of the authoritative guidelines for industry regulated operations cannot continue to be met. At this time, Cleco cannot predict whether any legislation or regulation affecting Cleco will be enacted or adopted and, if enacted, what form such legislation or regulation may take. Cleco Power capitalizes or defers certain costs for recovery from customers and recognizes a liability for amounts expected to be returned to customers based on regulatory approval and management’s ongoing assessment that it is probable these items will be recovered or refunded through the ratemaking process. Under the current regulatory environment, Cleco Power believes these regulatory assets will be fully recoverable; however, if in the future, as a result of regulatory changes or competition, Cleco Power’s ability to recover these regulatory assets would no longer be probable, then to the extent that such regulatory assets were determined not to be recoverable, Cleco Power would be required to write-down such assets. In addition, potential deregulation of the industry or possible future changes in the method of rate regulation of Cleco Power could require discontinuance of the application of the authoritative guidance of regulated operations. |
AROs | Cleco and Cleco Power recognize an ARO when there is a legal obligation under existing or enacted law, statute, written or oral contract, or by legal construction under the doctrine of promissory estoppel to incur costs to remove an asset when the asset is retired. These guidelines also require an ARO which is conditional on a future event to be recorded even if the event has not yet occurred. Cleco and Cleco Power recognize AROs at the present value of the projected liability in the period in which it is incurred, if a reasonable estimate of fair value can be made. The liability is accreted to its present value each accounting period. Cleco Power defers this accretion as a regulatory asset based on its determination that these costs can be collected from customers. Concurrent with the recognition of the liability, Cleco and Cleco Power capitalize these costs to the related property, plant, and equipment asset. These capitalized costs are depreciated over the same period as the related property asset. Cleco Power also defers the current depreciation of the asset retirement cost as a regulatory asset. |
Property, Plant, and Equipment | Upon retirement or disposition, the cost of Cleco Power and Cleco Cajun’s depreciable plant and the cost of removal, net of salvage value, are charged to accumulated depreciation. For Cleco’s other subsidiaries, upon disposition or retirement of depreciable assets, the difference between the net book value of the property and any proceeds received for the property is recorded as a gain or loss on asset disposition on Cleco’s Consolidated Statements of Income. Any cost incurred to remove the asset is charged to expense. Property, plant, and equipment consists primarily of utility generation and energy transmission and distribution assets. Assets utilized primarily for retail and wholesale operations and electric transmission and distribution are stated at the cost of construction, which includes certain materials, labor, payroll taxes and benefits, administrative and general costs, and the estimated cost of funds used during construction. Jointly owned assets are reflected in property, plant, and equipment at Cleco Power’s and Cleco Cajun’s share of the cost to construct or purchase the respective assets. Cleco’s cost of improvements to property, plant, and equipment is capitalized. Costs associated with repairs and major maintenance projects are expensed as incurred. Cleco capitalizes the cost to purchase or develop software for internal use. |
Deferred Project Costs | Cleco Power defers costs related to the initial stage of a construction project during which time the feasibility of the construction of property, plant, and equipment is being investigated. |
Fuel Inventory and Materials and Supplies | Fuel inventory consists primarily of petroleum coke, coal, limestone, lignite, and natural gas used to generate electricity. Materials and supplies consists of transmission and distribution line construction and repair materials. It also consists of generating station and transmission and distribution substation repair materials. Both fuel inventory and materials and supplies are recorded at the lower of cost or market value using the average cost method and are issued from stock using the average cost of existing stock. Materials and supplies are recorded when purchased and subsequently charged to expense or capitalized to property, plant, and equipment when installed. |
Accounts Receivable | Accounts receivable are recorded at the invoiced amount and do not bear interest. It is the policy of management to review the outstanding accounts receivable monthly, as well as the bad debt write-offs experienced in the past, and establish an allowance for doubtful accounts. Account balances are charged off against the allowance when management determines it is probable the receivable will not be recovered. |
Reserves | Cleco maintains property insurance on generating stations, buildings and contents, and substations. Cleco is self-insured for any damage to its power lines. To mitigate the exposure to potential financial loss for damage to lines, Cleco Power maintains an LPSC-approved funded storm reserve. Cleco also maintains liability and workers’ compensation insurance to mitigate financial losses due to injuries and damages to the property of others. Cleco’s insurance covers claims that exceed certain self-insured limits. For claims within certain self-insured limits, Cleco maintains reserves. Additionally, Cleco maintains directors and officers insurance to protect managers from claims which may arise from their decisions and actions taken within the scope of their regular duties. |
Cash Equivalents | Cleco considers highly liquid, marketable securities, and other similar instruments with original maturity dates of three months or less to be cash equivalents. |
Restricted Cash and Cash Equivalents | Various agreements to which Cleco is subject contain covenants that restrict its use of cash. As certain provisions under these agreements are met, cash is transferred out of related escrow accounts and becomes available for its intended purposes and/or general company purposes. Cleco Katrina/Rita has the right to bill and collect storm restoration costs from Cleco Power’s customers. As cash is collected, it is restricted for payment of administration fees, interest, and principal on storm recovery bonds. |
Equity Investments | Cleco and Cleco Power account for investments in unconsolidated affiliated companies using the equity method of accounting. The amounts reported on Cleco and Cleco Power’s Consolidated Balance Sheets represent assets contributed by Cleco or Cleco Power, plus their share of the net income of the affiliate, less any distributions of earnings (dividends) received from the affiliate. The revenues and expenses (excluding income taxes) of these affiliates are netted and reported on one line item as equity income from investees on Cleco and Cleco Power’s Consolidated Statements of Income. Cleco evaluates for impairments of equity method investments at each balance sheet date to determine if events and circumstances have occurred that indicate a possible other-than-temporary decline in the fair value of the investment and the possible inability to recover the carrying value through operations. Cleco uses estimates of the future cash flows from the investee and observable market transactions in order to calculate fair value and recoverability. An impairment is recognized when an other-than-temporary decline in market value occurs and recovery of the carrying value is not probable. Cleco and Cleco Power apply the equity method of accounting to report the investment in Oxbow in the consolidated financial statements. Under the equity method, the assets and liabilities of this entity are reported as Equity investment in investee on Cleco and Cleco Power’s Consolidated Balance Sheets. The revenue and expenses (excluding income taxes) of this entity are netted and reported as equity income or loss from investees on Cleco and Cleco Power’s Consolidated Statements of Income |
Income Taxes | Cleco accounts for income taxes under the asset and liability method. Cleco provides for federal and state income taxes currently payable, as well as for those deferred due to timing differences between reporting income and expenses for financial statement purposes versus tax purposes. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted income tax rates expected to be applied to taxable income in the years in which those temporary differences are expected to be recovered or settled. Deferred tax assets and liabilities are classified as non-current on Cleco and Cleco Power’s Consolidated Balance Sheets. Cleco’s income tax expense and related regulatory assets and liabilities could be affected by changes in its assumptions and estimates and by ultimate resolution of assumptions and estimates with taxing authorities. Cleco Group files a federal income tax return for all wholly owned subsidiaries. Cleco Power computes its federal and state income taxes as if it were a stand-alone taxpayer. The LPSC generally requires Cleco Power to flow the effects of state income taxes to customers. The regulatory assets and liabilities recorded for deferred income taxes represent the effect of tax benefits or detriments that must be flowed through to customers as they are received or paid. The amounts deferred are attributable to differences between book and tax recovery periods. |
Segment Reporting | The financial results in the following tables are presented on an accrual basis. The historical segment information was not recast because the Cleco Cajun segment only consists of the newly acquired business. There were no other changes to Cleco’s existing reportable segments. Management evaluates the performance of its segments and allocates resources to them based on segment profit and the requirements to implement strategic initiatives and projects to meet current business objectives. Material intercompany transactions occur on a regular basis. These intercompany transactions relate primarily to joint and common administrative support services as well as transmission services provided by Cleco Power to Cleco Cajun. |
Investment Tax Credits | Investment tax credits, which were deferred for financial statement purposes, are amortized as a reduction to income tax expense over the estimated service lives of the properties that gave rise to the credits. Cleco classifies income tax penalties as a component of other expenses. Cleco classifies all interest related to uncertain tax positions as a component of interest payable and interest expense. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. |
Debt Issuance Costs, Premiums, and Discounts | Issuance costs, premiums, and discounts applicable to debt securities are amortized to interest expense ratably over the lives of the related issuances. Expenses and call premiums related to refinanced Cleco Power debt are deferred and amortized over the life of the new issuance. Debt issuance costs, premiums, and discounts are presented as a direct deduction from the carrying value of the related debt liability. |
Revenue and Fuel Costs | Utility Revenue Revenue from sales of electricity is recognized when the service is provided. The costs of fuel and purchased power used for Cleco Power’s retail customers currently are recovered from its customers through Cleco Power’s FAC. These costs are subject to audit and final determination by regulators. Excise taxes and pass-through fees collected on the sale of electricity are not recorded in utility revenue. Unbilled Revenue Cleco Power accrues estimated revenue monthly for energy used by customers but not yet billed. The monthly estimated unbilled revenue amounts are recorded as unbilled revenue and a receivable. Cleco Power uses actual customer energy consumption data available from AMI to calculate unbilled revenues. Other Operations Revenue Other operations revenue is recognized at the time products or services are provided to and accepted by customers, and collectability is reasonably assured. Sales/Excise Taxes Cleco collects a sales and use tax on the sale of electricity that subsequently is remitted to the state in accordance with state law. These amounts are not recorded as income or expense on Cleco and Cleco Power’s Consolidated Statements of Income but are reflected at gross amounts on Cleco and Cleco Power’s Consolidated Balance Sheets as a receivable until the tax is collected and as a payable until the liability is paid. Cleco currently does not have any excise taxes reflected on its income statement. Franchise Fees Cleco Power collects a consumer fee for one of its franchise agreements. This fee is not recorded on Cleco and Cleco Power’s Consolidated Statements of Income as revenue and expense, but is reflected at gross amounts on Cleco and Cleco Power’s Consolidated Balance Sheets as a receivable until it is collected and as a payable until the liability is paid. |
AFUDC | The capitalization of AFUDC by Cleco Power is a utility accounting practice prescribed by FERC and the LPSC. AFUDC represents the estimated debt and equity costs of capital funds that are necessary to finance construction of new and existing facilities. While cash is not realized currently from such allowance, AFUDC increases the revenue requirement over the same life of the plant through a higher rate base and higher depreciation. Under regulatory practices, a return on and recovery of AFUDC is permitted in setting rates charged for utility services. |
Fair Value Measurements and Disclosures | Various accounting pronouncements require certain assets and liabilities to be measured at their fair values. Some assets and liabilities are required to be measured at their fair value each reporting period, while others are required to be measured only one time, generally the date of acquisition or debt issuance. Cleco and Cleco Power disclose the fair value of certain assets and liabilities by one of three levels when required for recognition purposes. Cleco utilizes different valuation techniques for fair value calculations. In order to measure the fair value for Level 1 assets and liabilities, Cleco obtains the closing price from published indices in active markets for the various instruments and multiplies this price by the appropriate volume of instruments held. Level 2 fair values are determined by obtaining the closing price of similar assets and liabilities from published indices in active markets. Institutional money market funds assets are discounted to the current period using a U.S. Treasury published interest rate as a proxy for a risk-free rate of return. Level 3 fair values occur in situations in which there is little, if any, market activity for the asset or liability at the measurement date and prices are not observable. Cleco has consistently applied the Level 2 and Level 3 fair value techniques from fiscal period to fiscal period. Significant increases or decreases in any of those inputs in isolation would result in a significantly different fair value measurement. The assets and liabilities reported at fair value are grouped into classes based on the underlying nature and risks associated with the individual asset or liability. |
Derivatives and Other Risk Management Activity | Cleco’s Energy Market Risk Management Policy authorizes hedging of commodity price risk with physical or financially settled derivative instruments. Some of these contracts may qualify for the normal purchase, normal sale (NPNS) exception under derivative accounting guidance. Contracts that do not qualify for NPNS accounting treatment or are not elected for NPNS accounting treatment are marked-to-market and recorded on the balance sheet at their fair value. Cleco Power and Cleco Cajun are awarded and/or purchase FTRs in auctions facilitated by MISO. The majority of these FTRs are purchased in annual auctions during the second quarter, but additional FTRs may be purchased in monthly auctions. FTRs represent economic hedges of future congestion charges that will be incurred in serving customer load. FTRs are derivatives not designated as hedging instruments for accounting purposes. Cleco Power’s FTRs are marked-to-market with the resulting unrealized gains or losses deferred as a component of deferred fuel assets or liabilities in accordance with regulatory policy. At settlement, realized gains or losses are included in the FAC and reflected on customers’ bills as a component of the fuel charge. Cleco Cajun’s FTRs are marked-to-market with the resulting unrealized gains and losses recorded on the income statement as a component of purchased power expense. At settlement, realized gains or losses are also recorded on the income statement as a component of purchased power expense. Cleco Cajun entered into other commodity derivative contracts during 2019. Management did not elect to apply hedge accounting to these contracts as allowed under applicable accounting standards. When these contracts are marked-to-market, the resulting unrealized gain or loss is recorded on the income statement as a component of fuel expense. At settlement, realized gains or losses are also recorded on the income statement as a component of fuel expense. For more information on FTRs and other commodity derivatives, see Note 8 — “Fair Value Accounting — Commodity Contracts.” Cleco may also enter into contracts to mitigate the volatility in interest rate risk. These contracts include, but are not limited to, interest rate swaps and treasury rate locks. For each reporting period presented, the Registrants did not enter into any contracts to mitigate the volatility in interest rate risk. |
Accounting for MISO Transactions | Cleco Power and Cleco Cajun participate in MISO’s Energy and Operating Reserve market where sales and purchases are netted hourly. If the hourly activity nets to sales, the result is reported in Electric operations on Cleco and Cleco Power’s Consolidated Statements of Income. If the hourly activity nets to purchases, the result is reported in Purchased power on Cleco and Cleco Power’s Consolidated Statements of Income. |
Leases | Cleco accounts for leases in accordance with accounting guidance effective January 1, 2019. For more information on this guidance, see — “Recent Authoritative Guidance.” Cleco determines if a contract is a lease at its inception. If a contract is determined to be a lease, Cleco recognizes a ROU asset and lease liability at the commencement date based on the present value of lease payments over the lease term. The present value of the lease payments is determined by using the implicit interest rate if readily determinable. Cleco’s incremental borrowing rate for a term similar to the duration of the lease based on information available at the commencement date is used if the implicit interest rate is not readily determinable. Cleco recognizes ROU assets and lease liabilities for leasing arrangements with terms greater than one year. Except for the marine transportation asset class, Cleco accounts for lease and non-lease components in a contract as a single lease component for all classes of underlying assets. Cleco’s marine transportation contracts, which include barges and towboats, contain non-lease components, such as maintenance and labor. Cleco allocates the consideration in these contracts between lease and non-lease components based on estimates of fair value from third parties that typically execute leases for this class of assets. Expense for a lessee operating lease is recognized as a single lease cost on a straight-line basis over the lease term and reflected in the appropriate income statement line item based on the leased asset’s function. Income for a lessor operating lease is recognized as a single lease income item on a straight-line basis over the lease term and reflected in the appropriate income statement line item based on the lease asset’s function. |
Leases | Cleco accounts for leases in accordance with accounting guidance effective January 1, 2019. For more information on this guidance, see — “Recent Authoritative Guidance.” Cleco determines if a contract is a lease at its inception. If a contract is determined to be a lease, Cleco recognizes a ROU asset and lease liability at the commencement date based on the present value of lease payments over the lease term. The present value of the lease payments is determined by using the implicit interest rate if readily determinable. Cleco’s incremental borrowing rate for a term similar to the duration of the lease based on information available at the commencement date is used if the implicit interest rate is not readily determinable. Cleco recognizes ROU assets and lease liabilities for leasing arrangements with terms greater than one year. Except for the marine transportation asset class, Cleco accounts for lease and non-lease components in a contract as a single lease component for all classes of underlying assets. Cleco’s marine transportation contracts, which include barges and towboats, contain non-lease components, such as maintenance and labor. Cleco allocates the consideration in these contracts between lease and non-lease components based on estimates of fair value from third parties that typically execute leases for this class of assets. Expense for a lessee operating lease is recognized as a single lease cost on a straight-line basis over the lease term and reflected in the appropriate income statement line item based on the leased asset’s function. Income for a lessor operating lease is recognized as a single lease income item on a straight-line basis over the lease term and reflected in the appropriate income statement line item based on the lease asset’s function. |
Recent Authoritative Guidance | n February 2016, FASB amended the guidance to account for leases. Effective January 1, 2019, Cleco adopted the amended guidance using the optional transition method that allows an entity to recognize a cumulative-effect adjustment to the opening balance of retained earnings at the date of adoption, apply the new disclosure requirements beginning in the period of adoption, and continue to present comparative period information as required under previous guidance. In addition, Cleco elected the transition practical expedient that permits an entity to not reassess prior conclusions about lease identification, lease classification, and initial direct costs under the new standard, as well as the practical expedient that permits entities to not assess existing land easements under the new standard. Adoption of this standard resulted in the recognition of ROU assets and lease liabilities for Cleco and Cleco Power’s operating leases of $16.1 million and $15.9 million, respectively. There was no impact to retained earnings as a result of adopting this standard. Adoption of this standard did not materially impact the Registrants’ results of operations or liquidity, and their accounting for finance leases is substantially unchanged. For more information on Cleco’s lease obligations, see Note 4 — “Leases.” In June 2016, FASB amended the guidance for the measurement of credit losses on receivables and certain other assets. The guidance requires use of a current expected loss model, which may result in earlier recognition of credit losses. The adoption of this guidance is effective for fiscal years beginning after December 15, 2019, including interim periods within those years. Management does not expect this guidance to have a significant impact on the results of operations, financial condition, or cash flows of the Registrants. In August 2018, FASB issued guidance that allows for the deferral of certain implementation costs incurred in a cloud computing arrangement. The adoption of this guidance is effective for annual reporting periods beginning after December 15, 2019, including interim periods within those years. Early adoption is permitted. Management does not expect this guidance to have significant impact on the results of operations, financial condition, or cash flows of the Registrants. |
Revenue from Contracts with Customers | Revenue from Contracts with Customers Retail Utility Revenue Cleco’s retail revenue from contracts with customers is generated primarily from Cleco Power’s regulated revenue from residential, commercial, and industrial customers. Cleco Power recognizes retail revenue from these contracts as a series, and progress towards satisfaction of the performance obligation is measured using an output method based on kWh delivered. Accordingly, revenue from electricity sales is recognized as energy is delivered to the customer. Cleco Power bills retail customers, based on rates regulated by the LPSC, on a monthly basis with payments generally due within 20 days of the invoice date. Included in Cleco Power’s retail revenue is unbilled electric revenue, which represents the amount customers will be billed for services rendered from the last meter reading to the end of the respective accounting period. Cleco Power uses actual customer energy consumption data available from AMI to calculate unbilled revenue. Also included in Cleco Power’s retail revenue is electric customer credits, which primarily represents the accrued estimated refunds to Cleco Power’s retail customers for the tax related benefits of the TCJA. Wholesale Revenue Cleco’s wholesale revenue is generated primarily through the sale of energy and capacity to cooperatives, municipalities, and the MISO transmission provider. Cleco also enters into transactions through MISO for spot energy sales which are transacted in the Day-Ahead Energy and Operating Reserves Market and the Real-Time Energy and Operating Reserves Market. The electricity revenue performance obligations, representing both energy and capacity, are satisfied as a series of performance obligations, and progress towards satisfaction of the performance obligations are measured using an output method. The energy performance obligation measure of progress is based on kWh delivered. The capacity performance obligation measure of progress is based on time elapsed and is recognized each month as Cleco’s generating units stand ready to deliver electricity to the customer. Cleco recognizes wholesale revenue, inclusive of both performance obligations, under the invoice practical expedient for the amount Cleco has the right to invoice. Cleco, through Cleco Power and Cleco Cajun, charges its wholesale customers market based rates that are subject to FERC’s triennial market power analysis. Transmission Revenue Cleco Power and Cleco Cajun earn transmission revenues pursuant to MISO’s FERC filed tariff. The performance obligation of transmission service is satisfied as service is provided. Revenue is recognized upon delivery of the transmission service. For Cleco Power, revenue from the transmission of electricity is recorded based on a FERC-approved annual formula rate mechanism. This mechanism provides for an annual filing of revenue requirements with rates effective June 1 of each year. For Cleco Cajun, revenue from the transmission of electricity is recorded based on a FERC-approved annual filing rate mechanism effective June 1 of each year. Cleco Cajun charges transmission rates based on its cost to provide transmission services. Other Revenue Other revenue from contracts with customers, which is not a significant source of Cleco’s revenue, includes Cleco Power’s Teche Unit 3 SSR revenue and miscellaneous fees. The performance obligation under these contracts is satisfied and revenue is recognized as control of the products is delivered or services are rendered. |
Pension Plan and Employee Benefits | Cleco’s 401(k) Plan is intended to provide active, eligible employees with voluntary, long-term savings and investment opportunities. The 401(k) Plan is a defined contribution plan and is subject to the applicable provisions of the Employee Retirement Income Security Act of 1974. In accordance with the 401(k) Plan, employer contributions are made in the form of cash. Cash contributions are invested in proportion to the participant’s voluntary contribution investment choices. Participation in the Plan is voluntary and active Cleco employees are eligible to participate. Cleco’s retirees may be eligible to receive Other Benefits. Dependents of Cleco’s retirees may also be eligible to receive Other Benefits with the exception of life insurance benefits. Cleco recognizes the expected cost of Other Benefits during the periods in which the benefits are earned. Employees hired before August 1, 2007, are covered by a non-contributory, defined benefit pension plan. Benefits under the plan reflect an employee’s years of service, age at retirement, and highest total average compensation for any consecutive five calendar years during the last ten years of employment with Cleco. Cleco’s policy is to base its contributions to the employee pension plan upon actuarial computations utilizing the projected unit credit method, subject to the IRS’s full funding limitation. Certain Cleco officers are covered by SERP. In 2014, SERP was closed to new participants; however, with regard to current SERP participants, including former employees or their beneficiaries, all terms of SERP will continue, other than as described below. SERP is a non-qualified, non-contributory, defined benefit pension plan. Generally, benefits under the plan reflect an employee’s years of service, age at retirement, and the sum of (a) the highest base salary paid out over the last five calendar years and (b) the average of the five highest cash bonuses paid during the 60 months prior to retirement. SERP benefits are reduced by retirement benefits received from any other defined benefit pension plan, supplemental executive retirement plan, or Cleco contributions under the enhanced 401(k) Plan to the extent such contributions exceed the amount the employee would have received under the terms of the original 401(k) Plan. Two executive officers’ SERP benefits were capped as of December 31, 2017, with regard to final compensation; however, adjustments will continue with regard to age and tenure with Cleco. Additionally, these executive officers had their annual bonuses set at target rather than actual awards for 2017 for the average incentive award portion of their SERP benefit calculation. A third executive officer’s SERP benefit amount will be set at a specified amount based upon the year of separation. Management reviews current market trends as it evaluates Cleco’s future compensation strategy. Cleco does not fund the SERP liability, but instead pays for current benefits out of the general funds available. Cleco Power has formed a rabbi trust. The life insurance policies issued on SERP participants designate the rabbi trust as the beneficiary. Market conditions could have a significant impact on the cash surrender value of the life insurance policies. Proceeds from the life insurance policies are expected to be used to pay the SERP participants’ death benefits, as well as future SERP payments. However, because SERP is a non-qualified plan, the assets of the trust could be used to satisfy general creditors of Cleco Power in the event of insolvency. All SERP benefits are paid out of the general cash available of the respective companies that employed the officer. Cleco Power is the plan sponsor and Support Group is the plan administrator. |
Variable Interest Entities | Cleco and Cleco Power apply the equity method of accounting to report the investment in Oxbow in the consolidated financial statements. Under the equity method, the assets and liabilities of this entity are reported as Equity investment in investee on Cleco and Cleco Power’s Consolidated Balance Sheets. The revenue and expenses (excluding income taxes) of this entity are netted and reported as equity income or loss from investees on Cleco and Cleco Power’s Consolidated Statements of Income. |
Intangible Assets | As a result of the 2016 Merger, fair value adjustments were recorded on Cleco’s Consolidated Balance Sheet for the valuation of the Cleco trade name and long-term wholesale power supply agreements. At the end of their life, these intangible assets will have no residual value. The trade name intangible asset is being amortized over its estimated economic useful life of 20 years. The intangible assets related to the power supply agreements are amortized over the remaining life of each applicable contract ranging between 3 years and 15 years and the amortization is included in Electric operations on Cleco’s Consolidated Statements of Income. During 2008, Cleco Katrina/Rita acquired a $177.5 million intangible asset which includes $176.0 million for the right to bill and collect storm recovery charges from customers of Cleco Power and $1.5 million of financing costs. This intangible asset is expected to be fully amortized in 2020. The intangible asset’s expected amortization expense is based on the estimated collections from Cleco Power’s customers. At the end of its life, the asset will have no residual value. |
Summary of Significant Accounting Policies - Asset Retirement Obligation (Details) |
12 Months Ended |
---|---|
Dec. 31, 2019
USD ($)
| |
Asset Retirement Obligation [Line Items] | |
Increase (decrease) to ARO | $ 0 |
CLECO POWER | |
Asset Retirement Obligation [Line Items] | |
Increase (decrease) to ARO | 0 |
Cleco Cajun | |
Asset Retirement Obligation [Line Items] | |
Increase (decrease) to ARO | $ 15,300,000 |
Summary of Significant Accounting Policies - Restricted Cash and Cash Equivalents (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2019 |
Feb. 04, 2019 |
Dec. 31, 2018 |
|
Restricted Cash and Cash Equivalents [Abstract] | |||
Current | $ 11,100 | $ 11,241 | |
Non-current | 15,203 | 18,670 | |
Total restricted cash and cash equivalents | 26,303 | 29,911 | |
Cleco Katrina/Rita’s storm recovery bonds | |||
Restricted Cash and Cash Equivalents [Abstract] | |||
Current | 9,632 | 9,505 | |
Cleco Power’s charitable contributions | |||
Restricted Cash and Cash Equivalents [Abstract] | |||
Current | 1,200 | 1,200 | |
Non-current | 2,094 | 2,753 | |
Cleco Power’s rate credit escrow | |||
Restricted Cash and Cash Equivalents [Abstract] | |||
Current | 268 | 536 | |
Non-current | 0 | 505 | |
Diversified Lands’ mitigation escrow | |||
Restricted Cash and Cash Equivalents [Abstract] | |||
Non-current | 21 | 21 | |
Cleco Cajun’s defense fund | |||
Restricted Cash and Cash Equivalents [Abstract] | |||
Non-current | 719 | 0 | |
Cleco Cajun’s margin deposits | |||
Restricted Cash and Cash Equivalents [Abstract] | |||
Non-current | 100 | 0 | |
Cleco Power’s future storm restoration costs | |||
Restricted Cash and Cash Equivalents [Abstract] | |||
Non-current | 12,269 | 15,391 | |
Katrina Rita Bond Principal Payments | |||
Restricted Cash and Cash Equivalents [Abstract] | |||
Collections | 20,600 | ||
Katrina Rita Bond Interest Payments | |||
Restricted Cash and Cash Equivalents [Abstract] | |||
Payments | 1,500 | ||
Katrina/Rita Storm Recovery Collections, Net of Administration Fees | |||
Restricted Cash and Cash Equivalents [Abstract] | |||
Administration fees received | 22,200 | ||
CLECO POWER | |||
Restricted Cash and Cash Equivalents [Abstract] | |||
Current | 11,100 | 11,241 | |
Non-current | 14,363 | 18,649 | |
Total restricted cash and cash equivalents | 25,463 | 29,890 | |
CLECO POWER | Cleco Katrina/Rita’s storm recovery bonds | |||
Restricted Cash and Cash Equivalents [Abstract] | |||
Current | 9,632 | 9,505 | |
CLECO POWER | Cleco Power’s charitable contributions | |||
Restricted Cash and Cash Equivalents [Abstract] | |||
Current | 1,200 | 1,200 | |
Non-current | 2,094 | 2,753 | |
CLECO POWER | Cleco Power’s rate credit escrow | |||
Restricted Cash and Cash Equivalents [Abstract] | |||
Current | 268 | 536 | |
Non-current | 0 | 505 | |
CLECO POWER | Cleco Power’s future storm restoration costs | |||
Restricted Cash and Cash Equivalents [Abstract] | |||
Non-current | $ 12,269 | $ 15,391 | |
NRG South Central | |||
Restricted Cash and Cash Equivalents [Abstract] | |||
Restricted cash and cash equivalents | $ 707 |
Business Combinations - Narrative (Details) |
1 Months Ended | 3 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|---|
Feb. 04, 2019
USD ($)
municipality
cooperative
investor_owned_utility
MW
|
Jan. 31, 2019
USD ($)
|
Jun. 30, 2019
USD ($)
|
Dec. 31, 2019
USD ($)
|
Dec. 31, 2018
USD ($)
|
Dec. 31, 2017
USD ($)
|
|
Business Acquisition [Line Items] | ||||||
Repayments of long-term debt | $ 390,571,000 | $ 19,193,000 | $ 17,896,000 | |||
Proceeds from long-term lines of credit | 108,000,000 | 0 | 179,000,000 | |||
Regulated operating revenue, electric, non-nuclear | 1,496,736,000 | 1,181,907,000 | 1,097,632,000 | |||
Decrease in other operating income | (182,832,000) | (82,332,000) | (79,580,000) | |||
Depreciation and amortization | 216,320,000 | 170,414,000 | 166,854,000 | |||
NRG South Central | ||||||
Business Acquisition [Line Items] | ||||||
Repayments of long-term debt | $ 400,000,000 | $ 400,000,000 | ||||
Business combination, indemnification assets, amount as of acquisition date | 10,000,000 | |||||
Business combination, liabilities arising from contingencies, amount recognized | 10,000,000 | 10,000,000 | ||||
Purchase price consideration | 962,200,000 | |||||
Cash paid | 1,000,000,000 | |||||
Working capital adjustment | 37,800,000 | |||||
Business combination, recognized identifiable assets and intangible liabilities | 38,300,000 | |||||
Business combination, deferred revenue | 58,300,000 | |||||
Business combination, finite-lived intangibles | $ 98,900,000 | |||||
Net income | 154,898,000 | 170,224,000 | ||||
Cleco Cajun | ||||||
Business Acquisition [Line Items] | ||||||
Number of customers served | investor_owned_utility | 1 | |||||
Cleco Cajun | NRG South Central | ||||||
Business Acquisition [Line Items] | ||||||
Business combination, indemnification assets, amount as of acquisition date | 10,000,000 | |||||
Business combination, liabilities arising from contingencies, amount recognized | 10,000,000 | |||||
CLECO POWER | ||||||
Business Acquisition [Line Items] | ||||||
Repayments of long-term debt | 20,571,000 | 19,193,000 | 17,896,000 | |||
Public utilities, requested rate increase (decrease), amount | (4,000,000) | |||||
Proceeds from long-term lines of credit | 33,000,000 | 0 | 106,000,000 | |||
Regulated operating revenue, electric, non-nuclear | 1,130,928,000 | 1,191,587,000 | 1,108,389,000 | |||
Decrease in other operating income | (72,833,000) | (82,330,000) | (77,522,000) | |||
Depreciation and amortization | 172,471,000 | $ 162,069,000 | $ 158,415,000 | |||
Cleco Holdings | ||||||
Business Acquisition [Line Items] | ||||||
Debt instrument, term | 3 years | |||||
Debt to capital ratio | 0.65 | |||||
Cleco Holdings | NRG South Central | ||||||
Business Acquisition [Line Items] | ||||||
Cash paid | $ 102,300,000 | |||||
Cleco Group | NRG South Central | ||||||
Business Acquisition [Line Items] | ||||||
Business combination, equity interests issued and issuable | $ 384,900,000 | |||||
Sterlington, Louisiana | Natural-gas-fired Generating Station | Cleco Cajun | ||||||
Business Acquisition [Line Items] | ||||||
Number of megawatts in station or facility (mw) | MW | 176 | |||||
Jarreau, Louisiana | Natural-gas-fired Facility | Cleco Cajun | ||||||
Business Acquisition [Line Items] | ||||||
Number of megawatts in station or facility (mw) | MW | 220 | |||||
Jarreau, Louisiana | Natural-gas-fired Peaking Facility | Cleco Cajun | ||||||
Business Acquisition [Line Items] | ||||||
Number of megawatts in station or facility (mw) | MW | 210 | |||||
New Roads, Louisiana | Natural-gas-fired Generating Station | Cleco Cajun | ||||||
Business Acquisition [Line Items] | ||||||
Number of megawatts in station or facility (mw) | MW | 540 | |||||
New Roads, Louisiana | Coal-fired Generating Facility | Cleco Cajun | ||||||
Business Acquisition [Line Items] | ||||||
Number of megawatts in station or facility (mw) | MW | 580 | |||||
Jennings, Louisiana | Cleco Cajun | ||||||
Business Acquisition [Line Items] | ||||||
Number of megawatts in station or facility (mw) | MW | 225 | |||||
Jennings, Louisiana | Natural-gas-fired Peaking Facility | Cleco Cajun | ||||||
Business Acquisition [Line Items] | ||||||
Number of megawatts in station or facility (mw) | MW | 300 | |||||
Deweyville, Texas | Natural-gas-fired Generating Station | Cleco Cajun | ||||||
Business Acquisition [Line Items] | ||||||
Number of megawatts in station or facility (mw) | MW | 1,263 | |||||
Louisiana | Cleco Cajun | ||||||
Business Acquisition [Line Items] | ||||||
Number of customers served | cooperative | 9 | |||||
Arkansas, Louisiana, And Texas | Cleco Cajun | ||||||
Business Acquisition [Line Items] | ||||||
Number of customers served | municipality | 3 | |||||
Jointly Owned Electricity Generation Plant | New Roads, Louisiana | Coal-fired Generating Station | Cleco Cajun | ||||||
Business Acquisition [Line Items] | ||||||
Number of megawatts in station or facility (mw) | MW | 588 | |||||
Ownership interest percentage | 58.00% | |||||
Bridge Loan | Cleco Holdings | ||||||
Business Acquisition [Line Items] | ||||||
Debt instrument, face amount | $ 300,000,000.0 | |||||
Loans Payable | Cleco Holdings | ||||||
Business Acquisition [Line Items] | ||||||
Debt instrument, face amount | 100,000,000.0 | |||||
Fair Value Adjustments | NRG South Central | ||||||
Business Acquisition [Line Items] | ||||||
Regulated operating revenue, electric, non-nuclear | $ 500,000 | |||||
Decrease in other operating income | 100,000 | |||||
Depreciation and amortization | $ 200,000 | |||||
Acquisition-related Costs | NRG South Central | ||||||
Business Acquisition [Line Items] | ||||||
Net income | $ 4,700,000 | |||||
Revolving Credit Facility | Cleco Holdings | ||||||
Business Acquisition [Line Items] | ||||||
Proceeds from credit facility | 75,000,000 | |||||
Line of credit facility, maximum borrowing capacity | 175,000,000.0 | |||||
Proceeds from long-term lines of credit | 75,000,000 | |||||
Power Supply Agreements | NRG South Central | ||||||
Business Acquisition [Line Items] | ||||||
Business combination, recognized identifiable assets and intangible liabilities | 14,200,000 | |||||
LTSA | NRG South Central | ||||||
Business Acquisition [Line Items] | ||||||
Business combination, recognized identifiable assets and intangible liabilities | $ 24,100,000 | |||||
Acquired finite-lived intangible liabilities, weighted average useful life | 7 years |
Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2019 |
Sep. 30, 2019 |
Jun. 30, 2019 |
Mar. 31, 2019 |
Dec. 31, 2018 |
Sep. 30, 2018 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 31, 2019 |
Dec. 31, 2018 |
Dec. 31, 2017 |
|
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contracts with customers | $ 1,561,424 | $ 1,189,178 | |||||||||
Total revenue from contracts with customers | |||||||||||
Other | 78,181 | 41,866 | |||||||||
Total revenue unrelated to contracts with customers | 78,181 | 41,866 | |||||||||
Operating revenue, net | $ 409,575 | $ 487,971 | $ 397,873 | $ 344,186 | $ 296,767 | $ 358,256 | $ 299,261 | $ 276,760 | 1,639,605 | 1,231,044 | $ 1,175,646 |
Electric customer credits | 39,963 | 33,195 | 1,566 | ||||||||
Sales-type lease, lease income | 65,520 | ||||||||||
Recognition of deferred lease income | 8,439 | 0 | 0 | ||||||||
Total retail revenue | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contracts with customers | 855,448 | 896,927 | |||||||||
Residential | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contracts with customers | 415,242 | 435,610 | |||||||||
Commercial | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contracts with customers | 289,197 | 288,791 | |||||||||
Industrial | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contracts with customers | 149,711 | 167,001 | |||||||||
Other retail | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contracts with customers | 15,046 | 15,582 | |||||||||
Surcharge | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contracts with customers | 22,132 | 23,138 | |||||||||
Electric customer credits | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contracts with customers | (35,880) | (33,195) | |||||||||
Wholesale, net | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contracts with customers | 591,932 | 209,918 | |||||||||
Transmission, net | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contracts with customers | 94,718 | 54,531 | |||||||||
Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contracts with customers | 19,326 | 27,802 | |||||||||
Affiliate | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contracts with customers | 0 | 0 | |||||||||
CLECO POWER | Other | |||||||||||
Total revenue from contracts with customers | |||||||||||
Other miscellaneous fee revenue | 16,100 | 18,200 | |||||||||
CLECO POWER | Lost contribution to fixed cost | |||||||||||
Total revenue from contracts with customers | |||||||||||
Other | 200 | 2,600 | |||||||||
CLECO POWER | SSR | Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contracts with customers | 3,200 | 9,600 | |||||||||
CLECO CAJUN | |||||||||||
Total revenue from contracts with customers | |||||||||||
Recognition of deferred lease income | 8,400 | ||||||||||
Operating Segments | CLECO POWER | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contracts with customers | 1,155,749 | 1,199,730 | |||||||||
Total revenue from contracts with customers | |||||||||||
Other | 12,621 | 41,866 | |||||||||
Total revenue unrelated to contracts with customers | 12,621 | 41,866 | |||||||||
Operating revenue, net | 1,168,370 | 1,241,596 | 1,185,196 | ||||||||
Electric customer credits | 38,516 | 33,195 | 1,566 | ||||||||
Operating Segments | CLECO POWER | Total retail revenue | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contracts with customers | 855,448 | 896,927 | |||||||||
Operating Segments | CLECO POWER | Residential | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contracts with customers | 415,242 | 435,610 | |||||||||
Operating Segments | CLECO POWER | Commercial | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contracts with customers | 289,197 | 288,791 | |||||||||
Operating Segments | CLECO POWER | Industrial | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contracts with customers | 149,711 | 167,001 | |||||||||
Operating Segments | CLECO POWER | Other retail | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contracts with customers | 15,046 | 15,582 | |||||||||
Operating Segments | CLECO POWER | Surcharge | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contracts with customers | 22,132 | 23,138 | |||||||||
Operating Segments | CLECO POWER | Electric customer credits | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contracts with customers | (35,880) | (33,195) | |||||||||
Operating Segments | CLECO POWER | Wholesale, net | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contracts with customers | 226,978 | 219,598 | |||||||||
Operating Segments | CLECO POWER | Transmission, net | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contracts with customers | 50,874 | 54,531 | |||||||||
Total revenue from contracts with customers | |||||||||||
Electric customer credits | 2,600 | ||||||||||
Operating Segments | CLECO POWER | Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contracts with customers | 19,324 | 27,800 | |||||||||
Operating Segments | CLECO POWER | Affiliate | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contracts with customers | 3,125 | 874 | |||||||||
Operating Segments | CLECO CAJUN | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contracts with customers | 426,058 | ||||||||||
Total revenue from contracts with customers | |||||||||||
Other | 65,560 | ||||||||||
Total revenue unrelated to contracts with customers | 65,560 | ||||||||||
Operating revenue, net | 491,618 | ||||||||||
Sales-type lease, lease income | 57,100 | ||||||||||
Operating Segments | CLECO CAJUN | Total retail revenue | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contracts with customers | 0 | ||||||||||
Operating Segments | CLECO CAJUN | Residential | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contracts with customers | 0 | ||||||||||
Operating Segments | CLECO CAJUN | Commercial | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contracts with customers | 0 | ||||||||||
Operating Segments | CLECO CAJUN | Industrial | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contracts with customers | 0 | ||||||||||
Operating Segments | CLECO CAJUN | Other retail | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contracts with customers | 0 | ||||||||||
Operating Segments | CLECO CAJUN | Surcharge | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contracts with customers | 0 | ||||||||||
Operating Segments | CLECO CAJUN | Electric customer credits | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contracts with customers | 0 | ||||||||||
Operating Segments | CLECO CAJUN | Wholesale, net | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contracts with customers | 374,635 | ||||||||||
Total revenue from contracts with customers | |||||||||||
Electric customer credits | 800 | ||||||||||
Operating Segments | CLECO CAJUN | Transmission, net | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contracts with customers | 51,315 | ||||||||||
Total revenue from contracts with customers | |||||||||||
Electric customer credits | 700 | ||||||||||
Operating Segments | CLECO CAJUN | Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contracts with customers | 0 | ||||||||||
Operating Segments | CLECO CAJUN | Affiliate | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contracts with customers | 108 | ||||||||||
OTHER | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contracts with customers | 99,389 | 64,913 | |||||||||
Total revenue from contracts with customers | |||||||||||
Other | 0 | 0 | |||||||||
Total revenue unrelated to contracts with customers | 0 | 0 | |||||||||
Operating revenue, net | 99,389 | 64,913 | 48,469 | ||||||||
Electric customer credits | 0 | 0 | 0 | ||||||||
OTHER | Total retail revenue | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contracts with customers | 0 | 0 | |||||||||
OTHER | Residential | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contracts with customers | 0 | 0 | |||||||||
OTHER | Commercial | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contracts with customers | 0 | 0 | |||||||||
OTHER | Industrial | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contracts with customers | 0 | 0 | |||||||||
OTHER | Other retail | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contracts with customers | 0 | 0 | |||||||||
OTHER | Surcharge | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contracts with customers | 0 | 0 | |||||||||
OTHER | Electric customer credits | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contracts with customers | 0 | 0 | |||||||||
OTHER | Wholesale, net | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contracts with customers | (9,680) | (9,680) | |||||||||
OTHER | Transmission, net | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contracts with customers | 0 | 0 | |||||||||
OTHER | Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contracts with customers | 2 | 2 | |||||||||
OTHER | Affiliate | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contracts with customers | 109,067 | 74,591 | |||||||||
ELIMINATIONS | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contracts with customers | (119,772) | (75,465) | |||||||||
Total revenue from contracts with customers | |||||||||||
Other | 0 | 0 | |||||||||
Total revenue unrelated to contracts with customers | 0 | 0 | |||||||||
Operating revenue, net | (119,772) | (75,465) | (58,019) | ||||||||
Electric customer credits | 0 | 0 | $ 0 | ||||||||
ELIMINATIONS | Total retail revenue | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contracts with customers | 0 | 0 | |||||||||
ELIMINATIONS | Residential | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contracts with customers | 0 | 0 | |||||||||
ELIMINATIONS | Commercial | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contracts with customers | 0 | 0 | |||||||||
ELIMINATIONS | Industrial | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contracts with customers | 0 | 0 | |||||||||
ELIMINATIONS | Other retail | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contracts with customers | 0 | 0 | |||||||||
ELIMINATIONS | Surcharge | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contracts with customers | 0 | 0 | |||||||||
ELIMINATIONS | Electric customer credits | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contracts with customers | 0 | 0 | |||||||||
ELIMINATIONS | Wholesale, net | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contracts with customers | (1) | 0 | |||||||||
ELIMINATIONS | Transmission, net | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contracts with customers | (7,471) | 0 | |||||||||
ELIMINATIONS | Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contracts with customers | 0 | 0 | |||||||||
ELIMINATIONS | Affiliate | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contracts with customers | (112,300) | (75,465) | |||||||||
Price Risk Derivative | CLECO POWER | Other | |||||||||||
Total revenue from contracts with customers | |||||||||||
Other | $ 12,400 | $ 39,300 |
Fair Value Accounting - Schedule of Derivative Instruments in Statement of Financial Position, Fair Value (Details) - Derivatives Not Designated as Hedging Instrument - USD ($) $ in Thousands |
Dec. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Commodity-related contracts | ||
Commodity-related contracts, net | $ 606 | $ 22,887 |
Price Risk Derivative | Energy risk management assets | ||
Commodity-related contracts | ||
Energy risk management assets | 6,822 | 23,355 |
Price Risk Derivative | Energy risk management liabilities | ||
Commodity-related contracts | ||
Energy risk management liabilities | 1,044 | 468 |
CLECO POWER | ||
Commodity-related contracts | ||
Commodity-related contracts, net | 5,725 | 22,887 |
CLECO POWER | Price Risk Derivative | Energy risk management assets | ||
Commodity-related contracts | ||
Energy risk management assets | 6,311 | 23,355 |
CLECO POWER | Price Risk Derivative | Energy risk management liabilities | ||
Commodity-related contracts | ||
Energy risk management liabilities | 586 | 468 |
Other Commodity Derivatives | ||
Commodity-related contracts | ||
Other deferred credits | 2,304 | 0 |
Other Commodity Derivatives | Price Risk Derivative | Energy risk management assets | ||
Commodity-related contracts | ||
Other commodity derivative asset | 201 | 0 |
Other Commodity Derivatives | Price Risk Derivative | Energy risk management liabilities | ||
Commodity-related contracts | ||
Other commodity derivatives | $ 3,069 | $ 0 |
Fair Value Accounting - Fair Value of Financial Assets and Liabilities Measured On A Recurring Basis (Details) - Measured On A Recurring Basis - USD ($) $ in Thousands |
Dec. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Asset Description | ||
Institutional money market funds | $ 129,643 | $ 133,722 |
Total assets | 136,666 | 157,077 |
Liability Description | ||
Total liabilities | 6,417 | 468 |
QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) | ||
Asset Description | ||
Institutional money market funds | 0 | 0 |
Total assets | 0 | 0 |
Liability Description | ||
Total liabilities | 0 | 0 |
SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) | ||
Asset Description | ||
Institutional money market funds | 129,643 | 133,722 |
Total assets | 129,844 | 133,722 |
Liability Description | ||
Total liabilities | 5,373 | 0 |
SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | ||
Asset Description | ||
Institutional money market funds | 0 | 0 |
Assets | 6,822 | 23,355 |
Total assets | 6,822 | 23,355 |
Liability Description | ||
Liabilities | 1,044 | 468 |
Total liabilities | 1,044 | 468 |
CLECO POWER | ||
Asset Description | ||
Institutional money market funds | 74,903 | 55,900 |
Total assets | 81,214 | 79,255 |
Liability Description | ||
Total liabilities | 586 | 468 |
CLECO POWER | QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) | ||
Asset Description | ||
Institutional money market funds | 0 | 0 |
Total assets | 0 | 0 |
Liability Description | ||
Total liabilities | 0 | 0 |
CLECO POWER | SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) | ||
Asset Description | ||
Institutional money market funds | 74,903 | 55,900 |
Total assets | 74,903 | 55,900 |
Liability Description | ||
Total liabilities | 0 | 0 |
CLECO POWER | SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | ||
Asset Description | ||
Institutional money market funds | 0 | 0 |
Assets | 6,311 | 23,355 |
Total assets | 6,311 | 23,355 |
Liability Description | ||
Liabilities | 586 | 468 |
Total liabilities | 586 | 468 |
Financial Transmission Right | ||
Asset Description | ||
Assets | 6,822 | 23,355 |
Liability Description | ||
Liabilities | 1,044 | 468 |
Financial Transmission Right | QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) | ||
Asset Description | ||
Assets | 0 | 0 |
Liability Description | ||
Liabilities | 0 | 0 |
Financial Transmission Right | SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) | ||
Asset Description | ||
Assets | 0 | 0 |
Liability Description | ||
Liabilities | 0 | 0 |
Financial Transmission Right | SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | ||
Asset Description | ||
Assets | 6,822 | 23,355 |
Liability Description | ||
Liabilities | 1,044 | 468 |
Financial Transmission Right | CLECO POWER | ||
Asset Description | ||
Assets | 6,311 | 23,355 |
Liability Description | ||
Liabilities | 586 | 468 |
Financial Transmission Right | CLECO POWER | QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) | ||
Asset Description | ||
Assets | 0 | 0 |
Liability Description | ||
Liabilities | 0 | 0 |
Financial Transmission Right | CLECO POWER | SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) | ||
Asset Description | ||
Assets | 0 | 0 |
Liability Description | ||
Liabilities | 0 | 0 |
Financial Transmission Right | CLECO POWER | SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | ||
Asset Description | ||
Assets | 6,311 | 23,355 |
Liability Description | ||
Liabilities | 586 | 468 |
Other Commodity Derivatives | ||
Asset Description | ||
Assets | 201 | 0 |
Liability Description | ||
Liabilities | 5,373 | 0 |
Other Commodity Derivatives | QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) | ||
Asset Description | ||
Assets | 0 | 0 |
Liability Description | ||
Liabilities | 0 | 0 |
Other Commodity Derivatives | SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) | ||
Asset Description | ||
Assets | 201 | 0 |
Liability Description | ||
Liabilities | 5,373 | 0 |
Other Commodity Derivatives | SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | ||
Asset Description | ||
Assets | 0 | 0 |
Liability Description | ||
Liabilities | $ 0 | $ 0 |
Leases - Lease Income Under Cottonwood Sale Leaseback (Details) $ in Thousands |
12 Months Ended |
---|---|
Dec. 31, 2019
USD ($)
| |
Leases [Abstract] | |
Fixed payments | $ 36,667 |
Variable payments | 20,415 |
Amortization of deferred lease liability | 8,438 |
Total lease income | $ 65,520 |
The Company (Details) customer in Thousands |
Dec. 31, 2019
generation
customer
entity
generation_unit
MW
|
---|---|
Organization, Consolidation and Presentation of Financial Statements [Line Items] | |
Number of transmission interconnection facility subsidiaries | entity | 2 |
CLECO POWER | |
Organization, Consolidation and Presentation of Financial Statements [Line Items] | |
Number of generating units owned | generation | 10 |
Nameplate capacity of all generating units (MW) | 3,360 |
Approximate number of customers served | customer | 288 |
Ownership interest in lignite entity | 50.00% |
Cleco Cajun | |
Organization, Consolidation and Presentation of Financial Statements [Line Items] | |
Number of generating units owned | generation_unit | 8 |
Nameplate capacity of all generating units (MW) | 3,555 |
Affiliate Transactions (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CLECO POWER | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Affiliate Transaction [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Related Party Transactions | The following table is a summary of revenue received from affiliates included in Cleco Power’s Consolidated Statements of Income:
The following table shows the expense of the pension plan related to Cleco Power’s affiliates for the years ended 2019 and 2018:
The following table is a summary of charges from each affiliate included in Cleco Power’s Consolidated Statements of Income:
Cleco Power had the following affiliate receivable and payable balances associated with the service agreements:
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