Fair Value Accounting (Tables)

12 Months Ended

Dec. 31, 2019

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:

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

* 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.

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

The following tables disclose for Cleco and Cleco Power the fair value of financial assets and liabilities measured on a recurring basis:

Cleco
	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

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

The followingtables summarize the net changes in the net fair value of FTR assets and liabilities classified as Level 3 in the fair value hierarchy for Cleco and Cleco Power: 

Cleco
	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.

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:

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

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:

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

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:

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

⁽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.

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

CLECO POWER

Fair Value [Line Items]

Fair Value By Balance Sheet Grouping

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

* 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.

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

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

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

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.

Fair Value Measurement Inputs and Valuation Techniques

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 POWER | Derivatives Not Designated as Hedging Instrument

Fair Value [Line Items]

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value

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

Effect of Derivatives On Consolidated Statements of Income

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

⁽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.