(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Securities registered pursuant to Section 12(b) of the Act: | |
Cleco Corporate Holdings LLC: None | Cleco Power LLC: None |
CLECO | ||
CLECO POWER | 2020 1ST QUARTER FORM 10-Q |
TABLE OF CONTENTS | ||
PAGE | ||
CLECO | ||
CLECO POWER | 2020 1ST QUARTER FORM 10-Q |
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 |
BCI | British Columbia Investment Management Corporation |
CCR | Coal combustion by-products or residual |
CECL | Current Expected Credit Losses |
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 |
Como 1 | Como 1, L.P., currently known as Cleco Partners |
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 |
COVID-19 | Novel coronavirus disease 2019 and the related global outbreak that was subsequently declared a pandemic by the World Health Organization in March 2020. |
CPP | Clean Power Plan |
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. |
EAC | Environmental Adjustment Clause |
EBITDA | Earnings before interest, taxes, depreciation, and amortization |
Entergy Gulf States | Entergy Gulf States Louisiana, LLC |
Entergy Louisiana | Entergy Louisiana, LLC |
CLECO | ||
CLECO POWER | 2020 1ST QUARTER FORM 10-Q |
ABBREVIATION OR ACRONYM | DEFINITION |
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) |
IRS | Internal Revenue Service |
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 |
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 |
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) |
NERC | North American Electric Reliability Corporation |
Not Meaningful | A percentage comparison of these items is not statistically meaningful because the percentage difference is greater than 1,000% |
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 |
Perryville | Perryville Energy Partners, L.L.C., a wholly owned subsidiary of Cleco Holdings |
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 |
ROU | Right of Use |
RTO | Regional Transmission Organization |
S&P | Standard & Poor’s Ratings Services, a credit rating agency |
SEC | U.S. Securities and Exchange Commission |
SERP | Supplemental Executive Retirement Plan |
South Central Generating | South Central Generating LLC, formerly NRG South Central Generating LLC |
SSR | System Support Resource |
START | Strategic Alignment and Real-Time Transformation |
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 | 2020 1ST QUARTER FORM 10-Q |
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS |
• | the COVID-19 pandemic and its effect on Cleco, Cleco’s operations, business, and financial condition, and the communities it serves, U.S. and world financial markets and supply chains, potential regulatory actions, changes in customer and stakeholder behaviors, and impacts on and modifications to Cleco’s operations, business, and financial condition relating thereto, |
• | 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 |
• | 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 negative impact of COVID-19, 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 uncertainty relating 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, |
• | the timing and costs associated with the potential early closure of Dolet Hills, including the ability to recover those costs, |
• | 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, COVID-19, 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, |
CLECO | ||
CLECO POWER | 2020 1ST QUARTER FORM 10-Q |
• | 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, |
• | 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 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 pandemic illnesses, specifically COVID-19, and unavailability of skilled employees. |
CLECO | ||
CLECO POWER | 2020 1ST QUARTER FORM 10-Q |
PART I — FINANCIAL INFORMATION |
ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) |
CLECO | ||
CLECO POWER | 2020 1ST QUARTER FORM 10-Q |
CLECO | |||||||
Condensed Consolidated Statements of Income (Unaudited) | |||||||
FOR THE THREE MONTHS ENDED MAR. 31, | |||||||
(THOUSANDS) | 2020 | 2019 | |||||
Operating revenue | |||||||
Electric operations | $ | $ | |||||
Other operations | |||||||
Gross operating revenue | |||||||
Electric customer credits | ( | ) | ( | ) | |||
Operating revenue, net | |||||||
Operating expenses | |||||||
Fuel used for electric generation | |||||||
Purchased power | |||||||
Other operations and maintenance | |||||||
Depreciation and amortization | |||||||
Taxes other than income taxes | |||||||
Merger transaction and commitment costs | |||||||
Total operating expenses | |||||||
Operating income | |||||||
Interest income | |||||||
Allowance for equity funds used during construction | ( | ) | |||||
Other (expense) income, net | ( | ) | |||||
Interest charges | |||||||
Interest charges, net | |||||||
Allowance for borrowed funds used during construction | ( | ) | ( | ) | |||
Total interest charges | |||||||
Income before income taxes | |||||||
Federal and state income tax expense | |||||||
Net income | $ | $ | |||||
The accompanying notes are an integral part of the condensed consolidated financial statements. |
CLECO | ||
CLECO POWER | 2020 1ST QUARTER FORM 10-Q |
CLECO | |||||||
Condensed Consolidated Statements of Comprehensive Income (Unaudited) | |||||||
FOR THE THREE MONTHS ENDED MAR. 31, | |||||||
(THOUSANDS) | 2020 | 2019 | |||||
Net income | $ | $ | |||||
Other comprehensive income (loss), net of tax | |||||||
Postretirement benefits gain (loss) (net of tax expense of $146 in 2020 and tax benefit of $47 in 2019) | ( | ) | |||||
Total other comprehensive income (loss), net of tax | ( | ) | |||||
Comprehensive income, net of tax | $ | $ | |||||
The accompanying notes are an integral part of the condensed consolidated financial statements. |
CLECO | ||
CLECO POWER | 2020 1ST QUARTER FORM 10-Q |
CLECO | |||||||
Condensed Consolidated Balance Sheets (Unaudited) | |||||||
(THOUSANDS) | AT MAR. 31, 2020 | AT DEC. 31, 2019 | |||||
Assets | |||||||
Current assets | |||||||
Cash and cash equivalents | $ | $ | |||||
Restricted cash and cash equivalents | |||||||
Customer accounts receivable (less allowance for credit losses of $2,123 in 2020 and $3,005 in 2019) | |||||||
Other accounts receivable | |||||||
Unbilled revenue | |||||||
Fuel inventory, at average cost | |||||||
Materials and supplies, at average cost | |||||||
Energy risk management assets | |||||||
Accumulated deferred fuel | |||||||
Cash surrender value of company-/trust-owned life insurance policies | |||||||
Prepayments | |||||||
Regulatory assets | |||||||
Other current assets | |||||||
Total current assets | |||||||
Property, plant, and equipment | |||||||
Property, plant, and equipment | |||||||
Accumulated depreciation | ( | ) | ( | ) | |||
Net property, plant, and equipment | |||||||
Construction work in progress | |||||||
Total property, plant, and equipment, net | |||||||
Equity investment in investee | |||||||
Goodwill | |||||||
Prepayments | |||||||
Operating lease right of use assets | |||||||
Restricted cash and cash equivalents | |||||||
Note receivable | |||||||
Regulatory assets | |||||||
Intangible assets | |||||||
Other deferred charges | |||||||
Total assets | $ | $ | |||||
The accompanying notes are an integral part of the condensed consolidated financial statements. | |||||||
(Continued on next page) |
CLECO | ||
CLECO POWER | 2020 1ST QUARTER FORM 10-Q |
CLECO | |||||||
Condensed Consolidated Balance Sheets (Unaudited) | |||||||
(THOUSANDS) | AT MAR. 31, 2020 | AT DEC. 31, 2019 | |||||
Liabilities and member’s equity | |||||||
Liabilities | |||||||
Current liabilities | |||||||
Short-term debt | $ | $ | |||||
Long-term debt and finance leases due within one year | |||||||
Accounts payable | |||||||
Accounts payable - affiliate | |||||||
Customer deposits | |||||||
Provision for rate refund | |||||||
Taxes payable, net | |||||||
Interest accrued | |||||||
Energy risk management liabilities | |||||||
Regulatory liabilities - other | |||||||
Deferred compensation | |||||||
Other current liabilities | |||||||
Total current liabilities | |||||||
Long-term liabilities and deferred credits | |||||||
Accumulated deferred federal and state income taxes, net | |||||||
Postretirement benefit obligations | |||||||
Regulatory liabilities - deferred taxes, net | |||||||
Restricted storm reserve | |||||||
Deferred lease revenue | |||||||
Intangible liabilities | |||||||
Asset retirement obligations | |||||||
Operating lease liabilities | |||||||
Other deferred credits | |||||||
Total long-term liabilities and deferred credits | |||||||
Long-term debt and finance leases, net | |||||||
Total liabilities | |||||||
Commitments and contingencies (Note 14) | |||||||
Member’s equity | |||||||
Total liabilities and member’s equity | $ | $ | |||||
The accompanying notes are an integral part of the condensed consolidated financial statements. |
CLECO | ||
CLECO POWER | 2020 1ST QUARTER FORM 10-Q |
CLECO | ||||||||
Condensed Consolidated Statements of Cash Flows (Unaudited) | ||||||||
FOR THE THREE MONTHS ENDED MAR. 31, | ||||||||
(THOUSANDS) | 2020 | 2019 | ||||||
Operating activities | ||||||||
Net income | $ | $ | ||||||
Adjustments to reconcile net income to net cash provided by operating activities | ||||||||
Depreciation and amortization | ||||||||
Provision for credit losses | ||||||||
Unearned compensation expense | ||||||||
Allowance for equity funds used during construction | ( | ) | ||||||
Loss on risk management assets and liabilities, net | ||||||||
Deferred lease revenue | ( | ) | ( | ) | ||||
Deferred income taxes | ( | ) | ||||||
Deferred fuel costs | ||||||||
Cash surrender value of company-/trust-owned life insurance | ( | ) | ||||||
Changes in assets and liabilities | ||||||||
Accounts receivable | ( | ) | ||||||
Unbilled revenue | ||||||||
Fuel inventory and materials and supplies | ( | ) | ( | ) | ||||
Prepayments | ( | ) | ||||||
Accounts payable | ( | ) | ( | ) | ||||
Accounts payable - affiliate | ||||||||
Customer deposits | ||||||||
Provision for merger commitments | ( | ) | ||||||
Postretirement benefit obligations | ||||||||
Regulatory assets and liabilities, net | ( | ) | ||||||
Other deferred accounts | ( | ) | ( | ) | ||||
Taxes accrued | ||||||||
Interest accrued | ||||||||
Deferred compensation | ( | ) | ||||||
Other operating | ( | ) | ||||||
Net cash provided by operating activities | ||||||||
Investing activities | ||||||||
Additions to property, plant, and equipment | ( | ) | ( | ) | ||||
Allowance for equity funds used during construction | ( | ) | ||||||
Payment to acquire business, net of cash acquired | ( | ) | ||||||
Other investing | ||||||||
Net cash used in investing activities | ( | ) | ( | ) | ||||
Financing activities | ||||||||
Draws on credit facilities | ||||||||
Payments on credit facilities | ( | ) | ||||||
Issuances of long-term debt | ||||||||
Repayment of long-term debt | ( | ) | ( | ) | ||||
Payment of financing costs | ( | ) | ||||||
Contributions from member | ||||||||
Other financing | ( | ) | ( | ) | ||||
Net cash provided by financing activities | ||||||||
Net increase (decrease) in cash, cash equivalents, restricted cash, and restricted cash equivalents | ( | ) | ||||||
Cash, cash equivalents, restricted cash, and restricted cash equivalents at beginning of period | (1) | |||||||
Cash, cash equivalents, restricted cash, and restricted cash equivalents at end of period | $ | (2) | $ | |||||
Supplementary cash flow information | ||||||||
Interest paid, net of amount capitalized | $ | $ | ||||||
Supplementary non-cash investing and financing activities | ||||||||
Accrued additions to property, plant, and equipment | $ | $ | ||||||
(1) 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. | ||||||||
(2) Includes cash and cash equivalents of $350,231, current restricted cash and cash equivalents of $4,054, and non-current restricted cash and cash equivalents of $9,899. | ||||||||
The accompanying notes are an integral part of the condensed consolidated financial statements. |
CLECO | ||
CLECO POWER | 2020 1ST QUARTER FORM 10-Q |
CLECO | |||||||||||||||
Condensed Consolidated Statements of Changes in Member’s Equity (Unaudited) | |||||||||||||||
(THOUSANDS) | MEMBERSHIP INTEREST | RETAINED EARNINGS | AOCI | TOTAL MEMBER’S EQUITY | |||||||||||
Balances, Dec. 31, 2018 | $ | $ | $ | $ | |||||||||||
Contribution from member | — | — | |||||||||||||
Net income | — | — | |||||||||||||
Other comprehensive loss, net of tax | — | — | ( | ) | ( | ) | |||||||||
Balances, Mar. 31, 2019 | $ | $ | $ | $ | |||||||||||
Balances, Dec. 31, 2019 | $ | $ | $ | ( | ) | $ | |||||||||
Net income | — | — | |||||||||||||
Other comprehensive income, net of tax | — | — | |||||||||||||
Balances, Mar. 31, 2020 | $ | $ | $ | ( | ) | $ | |||||||||
The accompanying notes are an integral part of the condensed consolidated financial statements. |
CLECO | ||
CLECO POWER | 2020 1ST QUARTER FORM 10-Q |
ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) |
CLECO | ||
CLECO POWER | 2020 1ST QUARTER FORM 10-Q |
CLECO POWER | |||||||
Condensed Consolidated Statements of Income (Unaudited) | |||||||
FOR THE THREE MONTHS ENDED MAR. 31, | |||||||
(THOUSANDS) | 2020 | 2019 | |||||
Operating revenue | |||||||
Electric operations | $ | $ | |||||
Other operations | |||||||
Affiliate revenue | |||||||
Gross operating revenue | |||||||
Electric customer credits | ( | ) | ( | ) | |||
Operating revenue, net | |||||||
Operating expenses | |||||||
Fuel used for electric generation | |||||||
Purchased power | |||||||
Other operations and maintenance | |||||||
Depreciation and amortization | |||||||
Taxes other than income taxes | |||||||
Total operating expenses | |||||||
Operating income | |||||||
Interest income | |||||||
Allowance for equity funds used during construction | ( | ) | |||||
Other (expense) income, net | ( | ) | |||||
Interest charges | |||||||
Interest charges, net | |||||||
Allowance for borrowed funds used during construction | ( | ) | ( | ) | |||
Total interest charges | |||||||
Income before income taxes | |||||||
Federal and state income tax expense | |||||||
Net income | $ | $ | |||||
The accompanying notes are an integral part of the condensed consolidated financial statements. |
CLECO | ||
CLECO POWER | 2020 1ST QUARTER FORM 10-Q |
CLECO POWER | |||||||
Condensed Consolidated Statements of Comprehensive Income (Unaudited) | |||||||
FOR THE THREE MONTHS ENDED MAR. 31, | |||||||
(THOUSANDS) | 2020 | 2019 | |||||
Net income | $ | $ | |||||
Other comprehensive income, net of tax | |||||||
Postretirement benefits gain (net of tax expense of $152 in 2020 and $55 in 2019) | |||||||
Amortization of interest rate derivatives to earnings (net of tax expense of $22 in 2020 and $22 in 2019) | |||||||
Total other comprehensive income, net of tax | |||||||
Comprehensive income, net of tax | $ | $ | |||||
The accompanying notes are an integral part of the condensed consolidated financial statements. |
CLECO | ||
CLECO POWER | 2020 1ST QUARTER FORM 10-Q |
CLECO POWER | |||||||
Condensed Consolidated Balance Sheets (Unaudited) | |||||||
(THOUSANDS) | AT MAR. 31, 2020 | AT DEC. 31, 2019 | |||||
Assets | |||||||
Utility plant and equipment | |||||||
Property, plant, and equipment | $ | $ | |||||
Accumulated depreciation | ( | ) | ( | ) | |||
Net property, plant, and equipment | |||||||
Construction work in progress | |||||||
Total utility plant and equipment, net | |||||||
Current assets | |||||||
Cash and cash equivalents | |||||||
Restricted cash and cash equivalents | |||||||
Customer accounts receivable (less allowance for credit losses of $2,123 in 2020 and $3,005 in 2019) | |||||||
Accounts receivable - affiliate | |||||||
Other accounts receivable | |||||||
Unbilled revenue | |||||||
Fuel inventory, at average cost | |||||||
Materials and supplies, at average cost | |||||||
Energy risk management assets | |||||||
Accumulated deferred fuel | |||||||
Cash surrender value of company-owned life insurance policies | |||||||
Prepayments | |||||||
Regulatory assets | |||||||
Other current assets | |||||||
Total current assets | |||||||
Equity investment in investee | |||||||
Prepayments | |||||||
Operating lease right of use assets | |||||||
Restricted cash and cash equivalents | |||||||
Note receivable | |||||||
Regulatory assets | |||||||
Other deferred charges | |||||||
Total assets | $ | $ | |||||
The accompanying notes are an integral part of the condensed consolidated financial statements. | |||||||
(Continued on next page) |
CLECO | ||
CLECO POWER | 2020 1ST QUARTER FORM 10-Q |
CLECO POWER | |||||||
Condensed Consolidated Balance Sheets (Unaudited) | |||||||
(THOUSANDS) | AT MAR. 31, 2020 | AT DEC. 31, 2019 | |||||
Liabilities and member’s equity | |||||||
Member’s equity | $ | $ | |||||
Long-term debt and finance leases, net | |||||||
Total capitalization | |||||||
Current liabilities | |||||||
Short-term debt | |||||||
Long-term debt and finance leases due within one year | |||||||
Accounts payable | |||||||
Accounts payable - affiliate | |||||||
Customer deposits | |||||||
Provision for rate refund | |||||||
Taxes payable, net | |||||||
Interest accrued | |||||||
Energy risk management liabilities | |||||||
Regulatory liabilities - other | |||||||
Other current liabilities | |||||||
Total current liabilities | |||||||
Commitments and contingencies (Note 14) | |||||||
Long-term liabilities and deferred credits | |||||||
Accumulated deferred federal and state income taxes, net | |||||||
Postretirement benefit obligations | |||||||
Regulatory liabilities - deferred taxes, net | |||||||
Restricted storm reserve | |||||||
Asset retirement obligations | |||||||
Operating lease liabilities | |||||||
Other deferred credits | |||||||
Total long-term liabilities and deferred credits | |||||||
Total liabilities and member’s equity | $ | $ | |||||
The accompanying notes are an integral part of the condensed consolidated financial statements. |
CLECO | ||
CLECO POWER | 2020 1ST QUARTER FORM 10-Q |
CLECO POWER | ||||||||
Condensed Consolidated Statements of Cash Flows (Unaudited) | ||||||||
FOR THE THREE MONTHS ENDED MAR. 31, | ||||||||
(THOUSANDS) | 2020 | 2019 | ||||||
Operating activities | ||||||||
Net income | $ | $ | ||||||
Adjustments to reconcile net income to net cash provided by operating activities | ||||||||
Depreciation and amortization | ||||||||
Provision for credit losses | ||||||||
Allowance for equity funds used during construction | ( | ) | ||||||
Deferred income taxes | ( | ) | ||||||
Deferred fuel costs | ||||||||
Cash surrender value of company-owned life insurance | ( | ) | ||||||
Changes in assets and liabilities | ||||||||
Accounts receivable | ( | ) | ||||||
Accounts receivable - affiliate | ||||||||
Unbilled revenue | ||||||||
Fuel inventory and materials and supplies | ( | ) | ( | ) | ||||
Prepayments | ||||||||
Accounts payable | ( | ) | ( | ) | ||||
Accounts payable - affiliate | ( | ) | ||||||
Customer deposits | ||||||||
Provision for merger commitments | ( | ) | ( | ) | ||||
Postretirement benefit obligations | ||||||||
Regulatory assets and liabilities, net | ( | ) | ||||||
Other deferred accounts | ( | ) | ( | ) | ||||
Taxes accrued | ( | ) | ||||||
Interest accrued | ||||||||
Other operating | ( | ) | ||||||
Net cash provided by operating activities | ||||||||
Investing activities | ||||||||
Additions to property, plant, and equipment | ( | ) | ( | ) | ||||
Allowance for equity funds used during construction | ( | ) | ||||||
Other investing | ||||||||
Net cash used in investing activities | ( | ) | ( | ) | ||||
Financing activities | ||||||||
Draws on credit facility | ||||||||
Payments on credit facility | ( | ) | ||||||
Repayment of long-term debt | ( | ) | ( | ) | ||||
Other financing | ( | ) | ( | ) | ||||
Net cash provided by (used in) financing activities | ( | ) | ||||||
Net increase (decrease) in cash, cash equivalents, restricted cash, and restricted cash equivalents | ( | ) | ||||||
Cash, cash equivalents, restricted cash, and restricted cash equivalents at beginning of period | (1) | |||||||
Cash, cash equivalents, restricted cash, and restricted cash equivalents at end of period | $ | (2) | $ | |||||
Supplementary cash flow information | ||||||||
Interest paid, net of amount capitalized | $ | $ | ||||||
Supplementary non-cash investing and financing activities | ||||||||
Accrued additions to property, plant, and equipment | $ | $ | ||||||
(1) 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. | ||||||||
(2) Includes cash and cash equivalents of $189,423, current restricted cash and cash equivalents of $4,054, and non-current restricted cash and cash equivalents of $9,056. | ||||||||
The accompanying notes are an integral part of the condensed consolidated financial statements. |
CLECO | ||
CLECO POWER | 2020 1ST QUARTER FORM 10-Q |
CLECO POWER | |||||||||||
Condensed Consolidated Statements of Changes in Member’s Equity (Unaudited) | |||||||||||
(THOUSANDS) | MEMBER’S EQUITY | AOCI | TOTAL MEMBER’S EQUITY | ||||||||
Balances, Dec. 31, 2018 | $ | $ | ( | ) | $ | ||||||
Net income | — | ||||||||||
Other comprehensive income, net of tax | — | ||||||||||
Balances, Mar. 31, 2019 | $ | $ | ( | ) | $ | ||||||
Balances, Dec. 31, 2019 | $ | $ | ( | ) | $ | ||||||
Net income | — | ||||||||||
Other comprehensive income, net of tax | — | ||||||||||
Balances, Mar. 31, 2020 | $ | $ | ( | ) | $ | ||||||
The accompanying notes are an integral part of the condensed consolidated financial statements. |
CLECO | ||
CLECO POWER | 2020 1ST QUARTER FORM 10-Q |
Index to Applicable Notes to the Unaudited Condensed Consolidated Financial Statements of Registrants | ||
Note 1 | Summary of Significant Accounting Policies | Cleco and Cleco Power |
Note 2 | Business Combinations | Cleco |
Note 3 | Recent Authoritative Guidance | Cleco and Cleco Power |
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 | Fair Value Accounting | Cleco and Cleco Power |
Note 8 | Debt | Cleco and Cleco Power |
Note 9 | Pension Plan and Employee Benefits | Cleco and Cleco Power |
Note 10 | Income Taxes | Cleco and Cleco Power |
Note 11 | Disclosures about Segments | Cleco |
Note 12 | Regulation and Rates | Cleco and Cleco Power |
Note 13 | Variable Interest Entities | Cleco and Cleco Power |
Note 14 | Litigation, Other Commitments and Contingencies, and Disclosures about Guarantees | Cleco and Cleco Power |
Note 15 | Affiliate Transactions | Cleco and Cleco Power |
Note 16 | Intangible Assets and Liabilities | Cleco and Cleco Power |
Note 17 | Accumulated Other Comprehensive Loss | Cleco and Cleco Power |
Notes to the Unaudited Condensed Consolidated Financial Statements |
Note 1 — Summary of Significant Accounting Policies |
CLECO | ||
CLECO POWER | 2020 1ST QUARTER FORM 10-Q |
Cleco | |||||||
(THOUSANDS) | AT MAR. 31, 2020 | AT DEC. 31, 2019 | |||||
Current | |||||||
Cleco Katrina/Rita’s storm recovery bonds | $ | $ | |||||
Cleco Power’s charitable contributions | |||||||
Cleco Power’s rate credit escrow | |||||||
Total current | |||||||
Non-current | |||||||
Diversified Lands’ mitigation escrow | |||||||
Cleco Cajun’s defense fund | |||||||
Cleco Cajun’s margin deposits | |||||||
Cleco Power’s future storm restoration costs | |||||||
Cleco Power’s charitable contributions | |||||||
Total non-current | |||||||
Total restricted cash and cash equivalents | $ | $ |
Cleco Power | |||||||
(THOUSANDS) | AT MAR. 31, 2020 | AT DEC. 31, 2019 | |||||
Current | |||||||
Cleco Katrina/Rita’s storm recovery bonds | $ | $ | |||||
Charitable contributions | |||||||
Rate credit escrow | |||||||
Total current | |||||||
Non-current | |||||||
Future storm restoration costs | |||||||
Charitable contributions | |||||||
Total non-current | |||||||
Total restricted cash and cash equivalents | $ | $ |
Cleco | |||||||||
(THOUSANDS) | ACCOUNTS RECEIVABLE | OTHERS* | TOTAL | ||||||
Balances, Dec. 31, 2019 | $ | $ | $ | ||||||
CECL adoption | — | ||||||||
Current period provision | |||||||||
Charge-offs | ( | ) | ( | ) | |||||
Recovery | |||||||||
Balances, Mar. 31, 2020 | $ | $ | $ |
Cleco Power | |||
(THOUSANDS) | ACCOUNTS RECEIVABLE | ||
Balances, Dec. 31, 2019 | $ | ||
CECL adoption | |||
Current period provision | |||
Charge-offs | ( | ) | |
Recovery | |||
Balances, Mar. 31, 2020 | $ |
CLECO | ||
CLECO POWER | 2020 1ST QUARTER FORM 10-Q |
Note 2 — Business Combinations |
Purchase Price Allocation | |||
(THOUSANDS) | AT FEB. 4, 2019 | ||
Current assets | |||
Cash and cash equivalents | $ | ||
Customer and other accounts receivable | |||
Fuel inventory | |||
Materials and supplies | |||
Energy risk management assets | |||
Other current assets | |||
Non-current assets | |||
Property, plant, and equipment, net | |||
Prepayments | |||
Restricted cash and cash equivalents | |||
Intangible assets | |||
Other deferred charges | |||
Total assets acquired | |||
Current liabilities | |||
Accounts payable | |||
Taxes payable | |||
Energy risk management liabilities | |||
Other current liabilities | |||
Non-current liabilities | |||
Accumulated deferred federal and state income taxes, net | |||
Deferred lease revenue | |||
Intangible liabilities | |||
Asset retirement obligations | |||
Operating lease liabilities | |||
Total liabilities assumed | |||
Total purchase price consideration | $ |
Measurement Period Adjustments | |||
(THOUSANDS) | AT JUNE 30, 2019 | ||
Current assets | |||
Customer and other accounts receivable | $ | ||
Other current assets | $ | ||
Non-current assets | |||
Property, plant, and equipment, net | $ | ||
Prepayments | $ | ( | ) |
Intangible assets | $ | ( | ) |
Other deferred charges | $ | ||
Current liabilities | |||
Accounts payable | $ | ||
Energy risk management liabilities | $ | ( | ) |
Other current liabilities | $ | ||
Non-current liabilities | |||
Accumulated deferred federal and state income taxes, net | $ | ||
Deferred lease revenue | $ | ( | ) |
Intangible liabilities | $ | ||
Asset retirement obligations | $ | ||
Operating lease liabilities | $ |
CLECO | ||
CLECO POWER | 2020 1ST QUARTER FORM 10-Q |
Unaudited Pro Forma Financial Information | |||
(THOUSANDS) | FOR THE THREE MONTHS ENDED MAR. 31, 2019 | ||
Operating revenue, net | $ | ||
Net income | $ |
Note 3 — Recent Authoritative Guidance |
Note 4 — Leases |
FOR THE THREE MONTHS ENDED MAR. 31, | |||||||
(THOUSANDS) | 2020 | 2019 | |||||
Fixed payments | $ | $ | |||||
Variable payments | |||||||
Amortization of deferred lease liability(1) | |||||||
Total lease income | $ | $ |
Note 5 — Revenue Recognition |
CLECO | ||
CLECO POWER | 2020 1ST QUARTER FORM 10-Q |
FOR THE THREE MONTHS ENDED MAR. 31, 2020 | |||||||||||||||||||
(THOUSANDS) | CLECO POWER | CLECO CAJUN | OTHER | ELIMINATIONS | TOTAL | ||||||||||||||
Revenue from contracts with customers | |||||||||||||||||||
Retail revenue | |||||||||||||||||||
Residential (1) | $ | $ | $ | $ | $ | ||||||||||||||
Commercial (1) | |||||||||||||||||||
Industrial (1) | |||||||||||||||||||
Other retail (1) | |||||||||||||||||||
Surcharge | |||||||||||||||||||
Electric customer credits | ( | ) | ( | ) | |||||||||||||||
Total retail revenue | |||||||||||||||||||
Wholesale, net | (1) | ( | ) | (2) | |||||||||||||||
Transmission, net | (3) | ( | ) | ||||||||||||||||
Other | (4) | ||||||||||||||||||
Affiliate (5) | ( | ) | |||||||||||||||||
Total revenue from contracts with customers | ( | ) | |||||||||||||||||
Revenue unrelated to contracts with customers | |||||||||||||||||||
Other | (6) | (7) | |||||||||||||||||
Total revenue unrelated to contracts with customers | |||||||||||||||||||
Operating revenue, net | $ | $ | $ | $ | ( | ) | $ |
FOR THE THREE MONTHS ENDED MAR. 31, 2019 | |||||||||||||||||||
(THOUSANDS) | CLECO POWER | CLECO CAJUN | OTHER | ELIMINATIONS | TOTAL | ||||||||||||||
Revenue from contracts with customers | |||||||||||||||||||
Retail revenue | |||||||||||||||||||
Residential (1) | $ | $ | $ | $ | $ | ||||||||||||||
Commercial (1) | |||||||||||||||||||
Industrial (1) | |||||||||||||||||||
Other retail (1) | |||||||||||||||||||
Surcharge | |||||||||||||||||||
Electric customer credits | ( | ) | ( | ) | |||||||||||||||
Total retail revenue | |||||||||||||||||||
Wholesale, net | (1) | ( | ) | (2) | |||||||||||||||
Transmission | |||||||||||||||||||
Other | (3) | ( | ) | ||||||||||||||||
Affiliate (4) | ( | ) | |||||||||||||||||
Total revenue from contracts with customers | ( | ) | |||||||||||||||||
Revenue unrelated to contracts with customers | |||||||||||||||||||
Other | (5) | (6) | |||||||||||||||||
Total revenue unrelated to contracts with customers | |||||||||||||||||||
Operating revenue, net | $ | $ | $ | $ | ( | ) | $ |
Note 6 — Regulatory Assets and Liabilities |
CLECO | ||
CLECO POWER | 2020 1ST QUARTER FORM 10-Q |
Cleco Power | |||||||
(THOUSANDS) | AT MAR. 31, 2020 | AT DEC. 31, 2019 | |||||
Regulatory assets (liabilities) | |||||||
Deferred taxes, net | $ | ( | ) | $ | ( | ) | |
Interest costs | |||||||
AROs | |||||||
Postretirement costs | |||||||
Tree trimming costs | |||||||
Training costs | |||||||
Surcredits, net (1) | |||||||
AMI deferred revenue requirement | |||||||
Emergency declarations | |||||||
Production operations and maintenance expenses | |||||||
AFUDC equity gross-up (1) | |||||||
Acadia Unit 1 acquisition costs | |||||||
Financing costs | |||||||
Coughlin transaction costs | |||||||
Corporate franchise tax, net | ( | ) | ( | ) | |||
Non-service cost of postretirement benefits | |||||||
Energy efficiency | |||||||
Accumulated deferred fuel | |||||||
Other, net | ( | ) | ( | ) | |||
Total regulatory assets, net | $ | $ | |||||
(1) Represents regulatory assets for past expenditures that were not earning a return on investment at March 31, 2020, and December 31, 2019, respectively. All other assets are earning a return on investment. |
Cleco | |||||||
(THOUSANDS) | AT MAR. 31, 2020 | AT DEC. 31, 2019 | |||||
Total Cleco Power regulatory assets, net | $ | $ | |||||
2016 Merger adjustments (1) | |||||||
Fair value of long-term debt | |||||||
Postretirement costs | |||||||
Financing costs | |||||||
Debt issuance costs | |||||||
Total Cleco regulatory assets, net | $ | $ |
Note 7 — Fair Value Accounting |
Cleco | |||||||||||||||
AT MAR. 31, 2020 | AT DEC. 31, 2019 | ||||||||||||||
(THOUSANDS) | CARRYING VALUE* | FAIR VALUE | CARRYING VALUE* | FAIR VALUE | |||||||||||
Long-term debt | $ | $ | $ | $ |
Cleco Power | |||||||||||||||
AT MAR. 31, 2020 | AT DEC. 31, 2019 | ||||||||||||||
(THOUSANDS) | CARRYING VALUE* | FAIR VALUE | CARRYING VALUE* | FAIR VALUE | |||||||||||
Long-term debt | $ | $ | $ | $ |
CLECO | ||
CLECO POWER | 2020 1ST QUARTER FORM 10-Q |
Cleco | |||||||||||||||||||||||||||||||
FAIR VALUE MEASUREMENTS AT REPORTING DATE | |||||||||||||||||||||||||||||||
(THOUSANDS) | AT MAR. 31, 2020 | QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) | SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) | SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | 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 | |||||||||||||||||||||||||||||||
Institutional money market funds | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||
FTRs | |||||||||||||||||||||||||||||||
Other commodity derivatives | |||||||||||||||||||||||||||||||
Total assets | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||
Liability description | |||||||||||||||||||||||||||||||
FTRs | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||
Other commodity derivatives | |||||||||||||||||||||||||||||||
Total liabilities | $ | $ | $ | $ | $ | $ | $ | $ |
Cleco Power | |||||||||||||||||||||||||||||||
FAIR VALUE MEASUREMENTS AT REPORTING DATE | |||||||||||||||||||||||||||||||
(THOUSANDS) | AT MAR. 31, 2020 | QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) | SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) | SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | 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 | |||||||||||||||||||||||||||||||
Institutional money market funds | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||
FTRs | |||||||||||||||||||||||||||||||
Total assets | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||
Liability description | |||||||||||||||||||||||||||||||
FTRs | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||
Total liabilities | $ | $ | $ | $ | $ | $ | $ | $ |
Cleco | |||||||
FOR THE THREE MONTHS ENDED MAR. 31, | |||||||
(THOUSANDS) | 2020 | 2019 | |||||
Beginning balance | $ | $ | |||||
Unrealized losses* | ( | ) | ( | ) | |||
Purchases | |||||||
Settlements | ( | ) | ( | ) | |||
Ending balance | $ | $ | |||||
* Cleco Power’s unrealized losses are reported through Accumulated deferred fuel on Cleco’s Condensed Consolidated Balance Sheet. Cleco Cajun’s unrealized (losses) gains are reported through Purchased power on Cleco’s Condensed Consolidated Income Statement. |
Cleco Power | |||||||
FOR THE THREE MONTHS ENDED MAR. 31, | |||||||
(THOUSANDS) | 2020 | 2019 | |||||
Beginning balance | $ | $ | |||||
Unrealized losses* | ( | ) | ( | ) | |||
Purchases | |||||||
Settlements | ( | ) | ( | ) | |||
Ending balance | $ | $ | |||||
* Unrealized losses are reported through Accumulated deferred fuel on Cleco Power’s Condensed Consolidated Balance Sheet. |
Cleco | |||||||||||||||||||
FAIR VALUE | VALUATION TECHNIQUE | SIGNIFICANT UNOBSERVABLE INPUTS | FORWARD PRICE RANGE | ||||||||||||||||
(THOUSANDS, EXCEPT FORWARD PRICE RANGE) | ASSETS | LIABILITIES | LOW | HIGH | |||||||||||||||
FTRs at Mar. 31, 2020 | $ | $ | RTO auction pricing | FTR price - per MWh | $ | ( | ) | $ | |||||||||||
FTRs at Dec. 31, 2019 | $ | $ | RTO auction pricing | FTR price - per MWh | $ | ( | ) | $ |
Cleco Power | |||||||||||||||||||
FAIR VALUE | VALUATION TECHNIQUE | SIGNIFICANT UNOBSERVABLE INPUTS | FORWARD PRICE RANGE | ||||||||||||||||
(THOUSANDS, EXCEPT FORWARD PRICE RANGE) | ASSETS | LIABILITIES | LOW | HIGH | |||||||||||||||
FTRs at Mar. 31, 2020 | $ | $ | RTO auction pricing | FTR price - per MWh | $ | ( | ) | $ | |||||||||||
FTRs at Dec. 31, 2019 | $ | $ | RTO auction pricing | FTR price - per MWh | $ | ( | ) | $ |
CLECO | ||
CLECO POWER | 2020 1ST QUARTER FORM 10-Q |
Cleco | |||||||
(THOUSANDS) | AT MAR. 31, 2020 | AT DEC. 31, 2019 | |||||
Cash and cash equivalents | $ | $ | |||||
Current restricted cash and cash equivalents | $ | $ | |||||
Non-current restricted cash and cash equivalents | $ | $ |
Cleco Power | |||||||
(THOUSANDS) | AT MAR. 31, 2020 | AT DEC. 31, 2019 | |||||
Cash and cash equivalents | $ | $ | |||||
Current restricted cash and cash equivalents | $ | $ | |||||
Non-current restricted cash and cash equivalents | $ | $ |
Cleco | |||||||||
DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS | |||||||||
(THOUSANDS) | BALANCE SHEET LINE ITEM | AT MAR. 31, 2020 | AT DEC. 31, 2019 | ||||||
Commodity-related contracts | |||||||||
FTRs | |||||||||
Current | Energy risk management assets | $ | $ | ||||||
Current | Energy risk management liabilities | ( | ) | ( | ) | ||||
Other commodity derivatives | |||||||||
Current | Energy risk management assets | ||||||||
Current | Energy risk management liabilities | ( | ) | ( | ) | ||||
Non-current | Other deferred credits | ( | ) | ( | ) | ||||
Commodity-related contracts, net | $ | ( | ) | $ |
Cleco Power | |||||||||
DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS | |||||||||
(THOUSANDS) | BALANCE SHEET LINE ITEM | AT MAR. 31, 2020 | AT DEC. 31, 2019 | ||||||
Commodity-related contracts | |||||||||
FTRs | |||||||||
Current | Energy risk management assets | $ | $ | ||||||
Current | Energy risk management liabilities | ( | ) | ( | ) | ||||
Commodity-related contracts, net | $ | $ |
CLECO | ||
CLECO POWER | 2020 1ST QUARTER FORM 10-Q |
Cleco | ||||||||
AMOUNT OF GAIN(LOSS) RECOGNIZED IN INCOME ON DERIVATIVES | ||||||||
FOR THE THREE MONTHS ENDED MAR. 31, | ||||||||
(THOUSANDS) | INCOME STATEMENT LINE ITEM | 2020 | 2019 | |||||
Commodity-related contracts | ||||||||
FTRs(1) | Electric operations | $ | $ | |||||
FTRs(1) | Purchased power | ( | ) | ( | ) | |||
Other commodity derivatives | Fuel used for electric generation | ( | ) | |||||
Total | $ | ( | ) | $ |
Cleco Power | ||||||||
AMOUNT OF GAIN(LOSS) RECOGNIZED IN INCOME ON DERIVATIVES | ||||||||
FOR THE THREE MONTHS ENDED MAR. 31, | ||||||||
(THOUSANDS) | INCOME STATEMENT LINE ITEM | 2020 | 2019 | |||||
Commodity-related contracts | ||||||||
FTRs(1) | Electric operations | $ | $ | |||||
FTRs(1) | Purchased power | ( | ) | ( | ) | |||
Total | $ | $ |
Note 8 — Debt |
Note 9 — Pension Plan and Employee Benefits |
CLECO | ||
CLECO POWER | 2020 1ST QUARTER FORM 10-Q |
PENSION BENEFITS | OTHER BENEFITS | ||||||||||||||
FOR THE THREE MONTHS ENDED MAR. 31, | FOR THE THREE MONTHS ENDED MAR. 31, | ||||||||||||||
(THOUSANDS) | 2020 | 2019 | 2020 | 2019 | |||||||||||
Components of periodic benefit costs | |||||||||||||||
Service cost | $ | $ | $ | $ | |||||||||||
Interest cost | |||||||||||||||
Expected return on plan assets | ( | ) | ( | ) | |||||||||||
Amortizations | |||||||||||||||
Prior period service credit | ( | ) | ( | ) | |||||||||||
Net loss (gain) | ( | ) | |||||||||||||
Net periodic benefit cost | $ | $ | $ | $ |
Cleco | |||||||
(THOUSANDS) | AT MAR. 31, 2020 | AT DEC. 31, 2019 | |||||
Current | $ | $ | |||||
Non-current | $ | $ |
Cleco Power | |||||||
(THOUSANDS) | AT MAR. 31, 2020 | AT DEC. 31, 2019 | |||||
Current | $ | $ | |||||
Non-current | $ | $ |
FOR THE THREE MONTHS ENDED MAR. 31, | |||||||
(THOUSANDS) | 2020 | 2019 | |||||
Components of periodic benefit costs | |||||||
Service cost | $ | $ | |||||
Interest cost | |||||||
Amortizations | |||||||
Prior period service credit | ( | ) | ( | ) | |||
Net loss | |||||||
Net periodic benefit cost | $ | $ |
Cleco | |||||||
(THOUSANDS) | AT MAR. 31, 2020 | AT DEC. 31, 2019 | |||||
Current | $ | $ | |||||
Non-current | $ | $ |
Cleco Power | |||||||
(THOUSANDS) | AT MAR. 31, 2020 | AT DEC. 31, 2019 | |||||
Current | $ | $ | |||||
Non-current | $ | $ |
CLECO | ||
CLECO POWER | 2020 1ST QUARTER FORM 10-Q |
FOR THE THREE MONTHS ENDED MAR. 31, | |||||||
(THOUSANDS) | 2020 | 2019 | |||||
401(k) Plan expense | $ | $ |
FOR THE THREE MONTHS ENDED MAR. 31, | |||||||
(THOUSANDS) | 2020 | 2019 | |||||
401(k) Plan expense | $ | $ |
Note 10 — Income Taxes |
Cleco | |||||
FOR THE THREE MONTHS ENDED MAR. 31, | |||||
2020 | 2019 | ||||
Effective tax rate | % | % |
Cleco Power | |||||
FOR THE THREE MONTHS ENDED MAR. 31, | |||||
2020 | 2019 | ||||
Effective tax rate | % | % |
Note 11 — Disclosures about Segments |
CLECO | ||
CLECO POWER | 2020 1ST QUARTER FORM 10-Q |
Segment Information For The Three Months Ended Mar. 31, | |||||||||||||||||||
2020 (THOUSANDS) | CLECO POWER | CLECO CAJUN | OTHER | ELIMINATIONS | CONSOLIDATED | ||||||||||||||
Revenue | |||||||||||||||||||
Electric operations | $ | $ | $ | ( | ) | $ | $ | ||||||||||||
Other operations | ( | ) | |||||||||||||||||
Affiliate revenue | ( | ) | |||||||||||||||||
Electric customer credits | ( | ) | ( | ) | ( | ) | |||||||||||||
Operating revenue, net | $ | $ | $ | $ | ( | ) | $ | ||||||||||||
Depreciation and amortization | $ | $ | $ | $ | ( | ) | $ | ||||||||||||
Interest income | $ | $ | $ | $ | ( | ) | $ | ||||||||||||
Interest charges | $ | $ | $ | $ | ( | ) | $ | ||||||||||||
Federal and state income tax expense (benefit) | $ | $ | $ | ( | ) | $ | $ | ||||||||||||
Net income (loss) | $ | $ | $ | ( | ) | $ | $ | ||||||||||||
Additions to property, plant, and equipment | $ | $ | $ | $ | $ | ||||||||||||||
Equity investment in investees | $ | $ | $ | $ | $ | ||||||||||||||
Goodwill | $ | $ | $ | $ | $ | ||||||||||||||
Total segment assets | $ | $ | $ | $ | ( | ) | $ |
2019 (THOUSANDS) | CLECO POWER | CLECO CAJUN | OTHER | ELIMINATIONS | CONSOLIDATED | ||||||||||||||
Revenue | |||||||||||||||||||
Electric operations | $ | $ | $ | ( | ) | $ | $ | ||||||||||||
Other operations | |||||||||||||||||||
Affiliate revenue | ( | ) | |||||||||||||||||
Electric customer credits | ( | ) | ( | ) | |||||||||||||||
Operating revenue, net | $ | $ | $ | $ | ( | ) | $ | ||||||||||||
Depreciation and amortization | $ | $ | $ | $ | $ | ||||||||||||||
Interest income | $ | $ | $ | $ | ( | ) | $ | ||||||||||||
Interest charges | $ | $ | $ | $ | ( | ) | $ | ||||||||||||
Federal and state income tax expense (benefit) | $ | $ | $ | ( | ) | $ | ( | ) | $ | ||||||||||
Net income (loss) | $ | $ | $ | ( | ) | $ | ( | ) | $ | ||||||||||
Additions to property, plant, and equipment | $ | $ | $ | $ | $ | ||||||||||||||
Equity investment in investees (1) | $ | $ | $ | $ | $ | ||||||||||||||
Goodwill (1) | $ | $ | $ | $ | $ | ||||||||||||||
Total segment assets (1) | $ | $ | $ | $ | ( | ) | $ | ||||||||||||
(1) Balances as of December 31, 2019 |
Note 12 — Regulation and Rates |
CLECO | ||
CLECO POWER | 2020 1ST QUARTER FORM 10-Q |
Note 13 — Variable Interest Entities |
INCEPTION TO DATE (THOUSANDS) | AT MAR. 31, 2020 | AT DEC. 31, 2019 | |||||
Purchase price | $ | $ | |||||
Cash contributions | |||||||
Dividends | ( | ) | ( | ) | |||
Total equity investment in investee | $ | $ |
(THOUSANDS) | AT MAR. 31, 2020 | AT DEC. 31, 2019 | |||||
Oxbow’s net assets/liabilities | $ | $ | |||||
Cleco Power’s 50% equity | $ | $ | |||||
Cleco Power’s maximum exposure to loss | $ | $ |
FOR THE THREE MONTHS ENDED MAR. 31, | |||||||
(THOUSANDS) | 2020 | 2019 | |||||
Operating revenue | $ | $ | |||||
Operating expenses | |||||||
Income before taxes | $ | $ |
CLECO | ||
CLECO POWER | 2020 1ST QUARTER FORM 10-Q |
Note 14 — 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). |
• | 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 | 2020 1ST QUARTER FORM 10-Q |
CLECO | ||
CLECO POWER | 2020 1ST QUARTER FORM 10-Q |
CLECO | ||
CLECO POWER | 2020 1ST QUARTER FORM 10-Q |
CLECO | ||
CLECO POWER | 2020 1ST QUARTER FORM 10-Q |
Note 15 — Affiliate Transactions |
AT MAR. 31, 2020 | AT DEC. 31, 2019 | ||||||||||||||
(THOUSANDS) | ACCOUNTS RECEIVABLE | ACCOUNTS PAYABLE | ACCOUNTS RECEIVABLE | ACCOUNTS PAYABLE | |||||||||||
Cleco Holdings | $ | $ | $ | $ | |||||||||||
Support Group | |||||||||||||||
Cleco Cajun | |||||||||||||||
Total | $ | $ | $ | $ |
Note 16 — Intangible Assets and Liabilities |
CLECO | ||
CLECO POWER | 2020 1ST QUARTER FORM 10-Q |
Cleco | |||||||
FOR THE THREE MONTHS ENDED MAR. 31, | |||||||
(THOUSANDS) | 2020 | 2019 | |||||
Intangible assets | |||||||
Cleco Katrina/Rita right to bill and collect storm recovery charges | $ | $ | |||||
Trade name | $ | $ | |||||
Power supply agreements | $ | $ | |||||
Intangible liabilities | |||||||
LTSA | $ | $ | |||||
Power supply agreements | $ | $ |
Cleco Power | |||||||
FOR THE THREE MONTHS ENDED MAR. 31, | |||||||
(THOUSANDS) | 2020 | 2019 | |||||
Cleco Katrina/Rita right to bill and collect storm recovery charges | $ | $ |
Cleco | |||||||
(THOUSANDS) | AT MAR. 31, 2020 | AT DEC. 31, 2019 | |||||
Intangible assets | |||||||
Cleco Katrina/Rita right to bill and collect storm recovery charges | $ | $ | |||||
Trade name | |||||||
Power supply agreements | |||||||
Total intangible assets carrying amount | |||||||
Intangible liabilities | |||||||
LTSA | |||||||
Power supply agreements | |||||||
Total intangible liability carrying amount | |||||||
Net intangible assets carrying amount | |||||||
Accumulated amortization | ( | ) | ( | ) | |||
Net intangible assets subject to amortization | $ | $ |
Cleco Power | |||||||
(THOUSANDS) | AT MAR. 31, 2020 | AT DEC. 31, 2019 | |||||
Cleco Katrina/Rita right to bill and collect storm recovery charges | $ | $ | |||||
Accumulated amortization | ( | ) | ( | ) | |||
Net intangible assets subject to amortization | $ | $ |
Note 17 — Accumulated Other Comprehensive Loss |
Cleco | |||
FOR THE THREE MONTHS ENDED MAR. 31, 2020 | |||
(THOUSANDS) | POSTRETIREMENT BENEFIT NET LOSS | ||
Balances, beginning of period | $ | ( | ) |
Amounts reclassified from AOCI | |||
Amortization of postretirement benefit net gain | |||
Balances, Mar. 31, 2020 | $ | ( | ) |
FOR THE THREE MONTHS ENDED MAR. 31, 2019 | |||
(THOUSANDS) | POSTRETIREMENT BENEFIT NET GAIN | ||
Balances, beginning of period | $ | ||
Amounts reclassified from AOCI | |||
Amortization of postretirement benefit net loss | ( | ) | |
Balances, Mar. 31, 2019 | $ |
Cleco Power | |||||||||||
FOR THE THREE MONTHS ENDED MAR. 31, 2020 | |||||||||||
(THOUSANDS) | POSTRETIREMENT BENEFIT NET LOSS | NET LOSS ON CASH FLOW HEDGES | TOTAL AOCI | ||||||||
Balances, beginning of period | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||
Amounts reclassified from AOCI | |||||||||||
Amortization of postretirement benefit net loss | — | ||||||||||
Reclassification of net loss to interest charges | — | ||||||||||
Balances, Mar. 31, 2020 | $ | ( | ) | $ | ( | ) | $ | ( | ) |
FOR THE THREE MONTHS ENDED MAR. 31, 2019 | |||||||||||
(THOUSANDS) | POSTRETIREMENT BENEFIT NET LOSS | NET LOSS ON CASH FLOW HEDGES | TOTAL AOCI | ||||||||
Balances, beginning of period | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||
Amounts reclassified from AOCI | |||||||||||
Amortization of postretirement benefit net loss | — | ||||||||||
Reclassification of net loss to interest charges | — | ||||||||||
Balances, Mar. 31, 2019 | $ | ( | ) | $ | ( | ) | $ | ( | ) |
CLECO | ||
CLECO POWER | 2020 1ST QUARTER FORM 10-Q |
ITEM 2. 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 | 2020 1ST QUARTER FORM 10-Q |
RESULTS OF OPERATIONS |
Cleco | ||||||||||||||
FOR THE THREE MONTHS ENDED MAR. 31, | ||||||||||||||
FAVORABLE/(UNFAVORABLE) | ||||||||||||||
(THOUSANDS) | 2020 | 2019 | VARIANCE | CHANGE | ||||||||||
Operating revenue, net | $ | 347,572 | $ | 344,186 | $ | 3,386 | 1.0 | % | ||||||
Operating expenses | 292,907 | 293,600 | 693 | 0.2 | % | |||||||||
Operating income | 54,665 | 50,586 | 4,079 | 8.1 | % | |||||||||
Interest income | 1,157 | 1,491 | (334 | ) | (22.4 | )% | ||||||||
Allowance for equity funds used during construction | (74 | ) | 5,688 | (5,762 | ) | (101.3 | )% | |||||||
Other (expense) income, net | (12,709 | ) | 2,777 | (15,486 | ) | (557.7 | )% | |||||||
Interest charges | 35,149 | 33,999 | (1,150 | ) | (3.4 | )% | ||||||||
Federal and state income tax expense | 1,562 | 5,986 | 4,424 | 73.9 | % | |||||||||
Net income | $ | 6,328 | $ | 20,557 | $ | (14,229 | ) | (69.2 | )% | |||||
Includes the financial results of Cleco Cajun from the closing of the Cleco Cajun Transaction on February 4, 2019, through March 31, 2019, and January 1, 2020, through March 31, 2020. |
CLECO | ||
CLECO POWER | 2020 1ST QUARTER FORM 10-Q |
Cleco Power | ||||||||||||||
FOR THE THREE MONTHS ENDED MAR. 31, | ||||||||||||||
FAVORABLE/(UNFAVORABLE) | ||||||||||||||
(THOUSANDS) | 2020 | 2019 | VARIANCE | CHANGE | ||||||||||
Operating revenue | ||||||||||||||
Base | $ | 147,999 | $ | 142,385 | $ | 5,614 | 3.9 | % | ||||||
Fuel cost recovery | 76,431 | 114,790 | (38,359 | ) | (33.4 | )% | ||||||||
Electric customer credits | (8,340 | ) | (8,160 | ) | (180 | ) | (2.2 | )% | ||||||
Other operations | 15,764 | 19,430 | (3,666 | ) | (18.9 | )% | ||||||||
Affiliate revenue | 1,106 | 300 | 806 | 268.7 | % | |||||||||
Operating revenue, net | 232,960 | 268,745 | (35,785 | ) | (13.3 | )% | ||||||||
Operating expenses | ||||||||||||||
Recoverable fuel and purchased power | 76,834 | 114,794 | 37,960 | 33.1 | % | |||||||||
Non-recoverable fuel and purchased power | 7,692 | 8,991 | 1,299 | 14.4 | % | |||||||||
Other operations and maintenance | 56,944 | 47,700 | (9,244 | ) | (19.4 | )% | ||||||||
Depreciation and amortization | 43,677 | 42,377 | (1,300 | ) | (3.1 | )% | ||||||||
Taxes other than income taxes | 12,276 | 9,978 | (2,298 | ) | (23.0 | )% | ||||||||
Total operating expenses | 197,423 | 223,840 | 26,417 | 11.8 | % | |||||||||
Operating income | 35,537 | 44,905 | (9,368 | ) | (20.9 | )% | ||||||||
Interest income | 954 | 994 | (40 | ) | (4.0 | )% | ||||||||
Allowance for equity funds used during construction | (74 | ) | 5,688 | (5,762 | ) | (101.3 | )% | |||||||
Other (expense) income, net | (2,667 | ) | 268 | (2,935 | ) | * | ||||||||
Interest charges | 18,581 | 17,145 | (1,436 | ) | (8.4 | )% | ||||||||
Federal and state income tax expense | 3,338 | 7,998 | 4,660 | 58.3 | % | |||||||||
Net income | $ | 11,831 | $ | 26,712 | $ | (14,881 | ) | (55.7 | )% | |||||
* Not meaningful |
FOR THE THREE MONTHS ENDED MAR. 31, | ||||||||
(MILLION kWh) | 2020 | 2019 | FAVORABLE/ (UNFAVORABLE) | |||||
Electric sales | ||||||||
Residential | 780 | 787 | (0.9 | )% | ||||
Commercial | 582 | 582 | — | % | ||||
Industrial | 484 | 490 | (1.2 | )% | ||||
Other retail | 31 | 31 | — | % | ||||
Total retail | 1,877 | 1,890 | (0.7 | )% | ||||
Sales for resale | 650 | 619 | 5.0 | % | ||||
Total retail and wholesale customer sales | 2,527 | 2,509 | 0.7 | % |
CLECO | ||
CLECO POWER | 2020 1ST QUARTER FORM 10-Q |
FOR THE THREE MONTHS ENDED MAR. 31, | ||||||||||
(THOUSANDS) | 2020 | 2019 | FAVORABLE/ (UNFAVORABLE) | |||||||
Electric sales | ||||||||||
Residential | $ | 61,890 | $ | 56,104 | 10.3 | % | ||||
Commercial | 47,056 | 44,863 | 4.9 | % | ||||||
Industrial | 20,580 | 20,649 | (0.3 | )% | ||||||
Other retail | 2,679 | 2,558 | 4.7 | % | ||||||
Surcharge | 2,442 | 5,321 | (54.1 | )% | ||||||
Total retail | 134,647 | 129,495 | 4.0 | % | ||||||
Sales for resale | 13,352 | 12,890 | 3.6 | % | ||||||
Total base revenue | $ | 147,999 | $ | 142,385 | 3.9 | % |
FOR THE THREE MONTHS ENDED MAR. 31, | ||||||||||||||
CHANGE | ||||||||||||||
2020 | 2019 | NORMAL | PRIOR YEAR | NORMAL | ||||||||||
Heating degree-days | 586 | 733 | 891 | (20.1 | )% | (34.2 | )% | |||||||
Cooling degree-days | 264 | 108 | 78 | 144.4 | % | 238.5 | % |
CLECO | ||
CLECO POWER | 2020 1ST QUARTER FORM 10-Q |
Cleco Cajun | ||||||||||||||
FOR THE THREE MONTHS ENDED MAR. 31, | ||||||||||||||
FAVORABLE/(UNFAVORABLE) | ||||||||||||||
(THOUSANDS) | 2020 | 2019 | VARIANCE | CHANGE | ||||||||||
Operating revenue | ||||||||||||||
Electric operations | $ | 89,147 | $ | 58,194 | $ | 30,953 | 53.2 | % | ||||||
Electric customer credits | (153 | ) | — | (153 | ) | (100.0 | )% | |||||||
Other operations | 30,961 | 19,965 | 10,996 | 55.1 | % | |||||||||
Affiliate revenue | 161 | — | 161 | 100.0 | % | |||||||||
Operating revenue, net | 120,116 | 78,159 | 41,957 | 53.7 | % | |||||||||
Operating expenses | ||||||||||||||
Fuel used for electric generation | 15,572 | 9,922 | (5,650 | ) | (56.9 | )% | ||||||||
Purchased power | 44,675 | 30,445 | (14,230 | ) | (46.7 | )% | ||||||||
Other operations and maintenance | 20,516 | 14,410 | (6,106 | ) | (42.4 | )% | ||||||||
Depreciation and amortization | 10,103 | 5,410 | (4,693 | ) | (86.7 | )% | ||||||||
Taxes other than income taxes | 3,473 | 3,145 | (328 | ) | (10.4 | )% | ||||||||
Total operating expenses | 94,339 | 63,332 | (31,007 | ) | (49.0 | )% | ||||||||
Operating income | 25,777 | 14,827 | 10,950 | 73.9 | % | |||||||||
Interest income | 155 | 254 | (99 | ) | (39.0 | )% | ||||||||
Other income (expense), net | 34 | (496 | ) | 530 | 106.9 | % | ||||||||
Interest charges | 10 | — | (10 | ) | (100.0 | )% | ||||||||
Federal and state income tax expense | 6,421 | 3,529 | (2,892 | ) | (81.9 | )% | ||||||||
Net income | $ | 19,535 | $ | 11,056 | $ | 8,479 | 76.7 | % | ||||||
Represents the financial results from the closing of the Cleco Cajun Transaction on February 4, 2019, through March 31, 2019, and January 1, 2020, through March 31, 2020. |
CLECO | ||
CLECO POWER | 2020 1ST QUARTER FORM 10-Q |
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 | 2020 1ST QUARTER FORM 10-Q |
• | a $233.9 million increase in cash and cash equivalents, primarily due to the draws on Cleco’s credit facilities, |
• | a $62.1 million decrease in long-term debt due within one year primarily due to the long-term refinancing of $50.0 million 2008 series A GO Zone bonds and the $11.1 million final principal payment on the Cleco Katrina/Rita storm recovery bonds on March 2, 2020, |
• | a $50.6 million decrease in accounts payable, excluding FTR purchases, primarily due to the short-term incentive plan payments in March 2020, the timing of property tax payments, lower accruals for fuel costs, and lower MISO power purchases and load charges, and |
• | a $26.2 million increase in fuel inventory primarily due to higher purchases of coal and higher deliveries of lignite at Cleco Power. |
• | a $238.0 million increase in short-term debt due to draws on Cleco’s $475.0 million credit facilities, |
• | a $22.7 million increase in accrued interest primarily due to the timing of interest payments on long-term debt, |
• | a $15.0 million increase in taxes payable primarily due to accruals of property taxes and higher provisions for income taxes, |
• | an $11.8 million decrease in customer accounts receivable primarily due to a decrease in customer usage, a decrease in fuel surcharges, the timing of customer collections, and the absence of the Cleco Katrina/Rita storm restoration surcharge, |
• | a $10.7 million decrease in cash surrender value of life insurance policies primarily due to market changes, |
• | a $7.0 million decrease in restricted cash and cash equivalents, and |
• | a $6.9 million decrease in accumulated deferred fuel, excluding Cleco Power FTRs, primarily due to the timing of collections. |
CLECO | ||
CLECO POWER | 2020 1ST QUARTER FORM 10-Q |
• | a $133.9 million increase in cash and cash equivalents, primarily due to the draw on the Cleco Power credit facility, |
• | a $61.0 million decrease in long-term debt due within one year primarily due to the long-term refinancing of $50.0 million 2008 series A GO Zone bonds and the $11.1 million final principal payment on the Cleco Katrina/Rita storm recovery bonds on March 2, 2020, |
• | a $28.0 million decrease in accounts payable, excluding FTR purchases, primarily due to the timing of property tax payments and the short-term incentive plan payments in March 2020, and |
• | a $20.9 million increase in fuel inventory primarily due to higher purchases of coal and higher deliveries of lignite. |
• | a $150.0 million increase in short-term debt due to a draw on the Cleco Power credit facility, |
• | a $15.3 million increase in accrued interest primarily due to the timing of interest payments on long-term debt, |
• | an $8.4 million decrease in customer accounts receivable primarily due to a decrease in customer usage, a decrease in fuel surcharges, the timing of customer collections, and the absence of the Cleco Katrina/Rita storm restoration surcharge, and |
• | an $8.1 million increase in taxes payable primarily due to accruals of property taxes, partially offset by a decrease in federal income tax accrued as a result of the CARES Act. |
CLECO | ||
CLECO POWER | 2020 1ST QUARTER FORM 10-Q |
• | higher payments for fuel purchases of $24.8 million primarily due to higher purchases of petroleum coke and coal, |
• | higher payout for employee benefits of $7.1 million, |
• | lower net fuel and purchased power collections of $6.2 million primarily due to timing of collections at Cleco Power, |
• | higher payments of $6.1 million primarily due to timing of vendor payments, and |
• | higher interest payments of $3.3 million. |
• | higher receipts for other accounts receivable of $8.5 million, including the timing of receipts of joint owners’ portion of generating station expenditures and |
• | higher collections from Cleco Cajun customers of $6.0 million. |
• | the absence of payment for the acquisition of all the membership interest in South Central Generating of $962.2 million, partially offset by the absence of cash received of $147.2 million and |
• | lower additions to property, plant, and equipment, net of AFUDC, of $12.3 million. |
• | the absence of borrowings of $400.0 million related to the financing of the Cleco Cajun Transaction in February 2019 and |
• | lower contributions from Cleco Group of $384.9 million. |
• | higher draws on credit facilities of $130.0 million and |
• | lower payments on credit facilities of $108.0 million. |
• | higher payments for fuel purchases of $15.1 million primarily due to higher purchases of petroleum coke and coal, |
• | lower net fuel and purchased power collections of $6.2 million primarily due to timing of collections, |
• | higher vendor payments of $3.5 million, and |
• | higher payout for employee benefits of $3.3 million. |
• | higher draws on credit facilities of $117.0 million and |
• | lower payments on credit facilities of $33.0 million. |
CLECO | ||
CLECO POWER | 2020 1ST QUARTER FORM 10-Q |
CLECO | ||
CLECO POWER | 2020 1ST QUARTER FORM 10-Q |
CRITICAL ACCOUNTING POLICIES |
CLECO POWER — NARRATIVE ANALYSIS OF RESULTS OF OPERATIONS |
CLECO | ||
CLECO POWER | 2020 1ST QUARTER FORM 10-Q |
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
RISK OVERVIEW |
• | routine review of counterparty credit quality and credit exposure, |
• | entering into standard industry master agreements with specific terms and conditions for credit exposure and non-performance, and |
• | exchanging guarantees or forms of cash equivalent collateral for financial assurance. |
CLECO | ||
CLECO POWER | 2020 1ST QUARTER FORM 10-Q |
Cleco | |||||
DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS | |||||
(THOUSANDS) | BALANCE SHEET LINE ITEM | AT MAR. 31, 2020 | |||
Commodity-related contracts | |||||
FTRs | |||||
Current | Energy risk management assets | $ | 1,779 | ||
Current | Energy risk management liabilities | (683 | ) | ||
Other commodity derivatives | |||||
Current | Energy risk management assets | 213 | |||
Current | Energy risk management liabilities | (9,014 | ) | ||
Non-current | Other deferred credits | (3,480 | ) | ||
Commodity-related contracts, net | $ | (11,185 | ) |
Cleco Power | ||||
DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS | ||||
(THOUSANDS) | BALANCE SHEET LINE ITEM | AT MAR. 31, 2020 | ||
Commodity-related contracts | ||||
FTRs | ||||
Current | Energy risk management assets | $ | 1,673 | |
Current | Energy risk management liabilities | (524 | ) | |
Commodity-related contracts, net | $ | 1,149 |
FOR THE THREE MONTHS ENDED MAR. 31, 2020 | |||||||||||||||
(THOUSANDS) | AT MAR. 31, 2020 | HIGH | LOW | AVERAGE | |||||||||||
Cleco | $ | 4,558 | $ | 4,997 | $ | 2,087 | $ | 4,264 |
ITEM 4. CONTROLS AND PROCEDURES |
• | Replacement of failed meters. |
• | Development and implementation of a plan to monitor meter failures. |
• | Proposed automation and configurations to allow for automated exception identification in key processes. |
• | Implementation of estimation monitoring with the ability to pause the billing process and request new reads. |
• | Development of analytics for comparison of the number of bills estimated and the estimation amount. |
• | Designed and implemented new controls (both preventive and detective) to address gaps in relevant risks. |
• | Commenced 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. |
CLECO | ||
CLECO POWER | 2020 1ST QUARTER FORM 10-Q |
CLECO | ||
CLECO POWER | 2020 1ST QUARTER FORM 10-Q |
PART II — OTHER INFORMATION |
ITEM 1. LEGAL PROCEEDINGS |
CLECO |
CLECO POWER |
ITEM 1A. RISK FACTORS |
CLECO | ||
CLECO POWER | 2020 1ST QUARTER FORM 10-Q |
ITEM 6. EXHIBITS | |
CLECO | |
10.1 | |
31.1 | |
31.2 | |
32.1 | |
32.2 | |
101.INS | Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document |
101.SCH | Inline XBRL Taxonomy Extension Schema |
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase |
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase |
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase |
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase |
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |
CLECO POWER | |
10.1 | |
31.3 | |
31.4 | |
32.3 | |
32.4 | |
101.INS | Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document |
101.SCH | Inline XBRL Taxonomy Extension Schema |
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase |
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase |
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase |
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase |
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |
CLECO | ||
CLECO POWER | 2020 1ST QUARTER FORM 10-Q |
SIGNATURES |
CLECO CORPORATE HOLDINGS LLC | ||
(Registrant) | ||
By: | /s/ F. Tonita Laprarie | |
F. Tonita Laprarie | ||
Controller and Chief Accounting Officer |
CLECO POWER LLC | ||
(Registrant) | ||
By: | /s/ F. Tonita Laprarie | |
F. Tonita Laprarie | ||
Controller and Chief Accounting Officer |
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 31.1 |
Date: | May 12, 2020 |
/s/ William G. Fontenot | |
William G. Fontenot President and Chief Executive Officer |
CLECO CORPORATE HOLDINGS LLC | EXHIBIT 31.2 |
Date: | May 12, 2020 |
/s/ Kazi K. Hasan | |
Kazi K. Hasan Chief Financial Officer |
CLECO POWER LLC | EXHIBIT 31.3 |
Date: | May 12, 2020 |
/s/ William G. Fontenot | |
William G. Fontenot Chief Executive Officer |
CLECO POWER LLC | EXHIBIT 31.4 |
Date: | May 12, 2020 |
/s/ Kazi K. Hasan | |
Kazi K. Hasan Chief Financial Officer |
CLECO CORPORATE HOLDINGS LLC | EXHIBIT 32.1 |
Date: | May 12, 2020 |
/s/ William G. Fontenot | |
William G. Fontenot President and Chief Executive Officer |
CLECO CORPORATE HOLDINGS LLC | EXHIBIT 32.2 |
Date: | May 12, 2020 |
/s/ Kazi K. Hasan | |
Kazi K. Hasan Chief Financial Officer |
CLECO POWER LLC | EXHIBIT 32.3 |
Date: | May 12, 2020 |
/s/ William G. Fontenot | |
William G. Fontenot Chief Executive Officer |
CLECO POWER LLC | EXHIBIT 32.4 |
Date: | May 12, 2020 |
/s/ Kazi K. Hasan | |
Kazi K. Hasan Chief Financial Officer |
Business Combinations - Measurement Period Adjustments (Details) - South Central Generating $ in Thousands |
3 Months Ended |
---|---|
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 |
Leases - Lease Income Under Cottonwood Sale Leaseback (Details) - Cleco Cajun - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2020 |
Mar. 31, 2019 |
|
Lessor, Lease, Description [Line Items] | ||
Fixed payments | $ 10,000 | $ 6,667 |
Variable payments | 5,566 | 3,151 |
Amortization of deferred lease liability | 2,302 | 1,440 |
Total lease income | $ 17,868 | $ 11,258 |
Pension Plan and Employee Benefits - Current and Non-Current Portions of SERP Liability (Details) - USD ($) $ in Thousands |
Mar. 31, 2020 |
Dec. 31, 2019 |
---|---|---|
Defined Benefit Plan Disclosure [Line Items] | ||
Non-current | $ 283,830 | $ 283,075 |
SERP Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Current | 4,599 | 4,599 |
Non-current | 84,219 | 84,529 |
CLECO POWER | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Non-current | 207,293 | 206,270 |
CLECO POWER | SERP Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Current | 760 | 760 |
Non-current | $ 13,863 | $ 13,964 |
Summary of Significant Accounting Policies (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted Cash and Cash Equivalents Items [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted Cash and Cash Equivalents | Cleco and Cleco Power’s restricted cash and cash equivalents consisted of the following:
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Changes in Allowance for Credit Losses, Accounts Receivable | The table below presents the changes in the allowance for credit losses by receivable for Cleco and Cleco Power:
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Changes in Allowance for Credit Losses, Other | The table below presents the changes in the allowance for credit losses by receivable for Cleco and Cleco Power:
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CLECO POWER | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted Cash and Cash Equivalents Items [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted Cash and Cash Equivalents |
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Changes in Allowance for Credit Losses, Accounts Receivable |
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Affiliate Transactions |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transactions [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Affiliate Transactions |
At March 31, 2020, Cleco had an affiliate payable of $33.8 million to Cleco Group primarily for affiliate settlement of taxes payable. Cleco Power has balances that are payable to or due from its affiliates. The following table is a summary of those balances:
|
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2020 |
Mar. 31, 2019 |
|
Net income | $ 6,328 | $ 20,557 |
Other comprehensive (loss) income, net of tax | ||
Postretirement benefits gain (loss), net of tax expense (benefit) | 414 | (135) |
Total other comprehensive (loss) income, net of tax | 414 | (135) |
Comprehensive income, net of tax | 6,742 | 20,422 |
CLECO POWER | ||
Net income | 11,831 | 26,712 |
Other comprehensive (loss) income, net of tax | ||
Postretirement benefits gain (loss), net of tax expense (benefit) | 426 | 156 |
Amortization of interest rate derivatives to earnings | 64 | 64 |
Total other comprehensive (loss) income, net of tax | 490 | 220 |
Comprehensive income, net of tax | $ 12,321 | $ 26,932 |
Disclosures about Segments |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosures about Segments |
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, and an investment subsidiary. Upon the completion of the Cleco Cajun Transaction on February 4, 2019, Cleco Cajun became a reportable segment. For more information on the transaction, see Note 2 — “Business Combinations.” There are no other changes to Cleco’s existing reportable segments. The financial results in the following tables are presented on an accrual basis. 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.
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Fair Value Accounting |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Accounting |
The amounts reflected on Cleco and Cleco Power’s Condensed Consolidated Balance Sheets at March 31, 2020, and December 31, 2019, 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 Condensed Consolidated Balance Sheets:
* The carrying value of long-term debt does not include deferred issuance costs of $13.2 million at March 31, 2020, and $13.7 million at December 31, 2019.
* The carrying value of long-term debt does not include deferred issuance costs of $7.2 million at March 31, 2020, and $7.4 million at December 31, 2019. 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 March 31, 2020, and 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 number 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 March 31, 2020, 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 following tables present the institutional money market funds in cash and cash equivalents and restricted cash and cash equivalents as recorded on Cleco and Cleco Power’s Condensed Consolidated Balance Sheets at March 31, 2020, and December 31, 2019:
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. With respect to any open trading contracts that Cleco has entered into or may enter into in the future, Cleco may be required to provide credit support or pay liquidated damages under such contracts. The amount of credit support that Cleco may be required to provide at any point in the future is dependent on the amount of the initial contract, changes in the market price, changes in open contracts, and changes in the amounts counterparties owe to Cleco. Changes in any of these factors could cause the amount of requested credit support to increase or decrease. 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 three months ended March 31, 2020, and the year ended December 31, 2019, 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 Condensed Consolidated Balance Sheets at March 31, 2020, and December 31, 2019:
The following tables present the effect of derivatives not designated as hedging instruments on Cleco and Cleco Power’s Condensed Consolidated Statements of Income for the three months ended March 31, 2020, and 2019:
(1) For the three months ended March 31, 2020, unrealized losses associated with FTRs for Cleco Power of $1.3 million were reported through Accumulated deferred fuel on the balance sheet. For the three months ended March 31, 2019, unrealized losses associated with FTRs for Cleco Power of $2.9 million were reported through Accumulated deferred fuel on the balance sheet.
(1) For the three months ended March 31, 2020, unrealized losses associated with FTRs of $1.3 million were reported through Accumulated deferred fuel on the balance sheet. For the three months ended March 31, 2019, unrealized losses associated with FTRs of $2.9 million were reported through Accumulated deferred fuel on the balance sheet. The total volume of FTRs that Cleco Power had outstanding at March 31, 2020, and December 31, 2019, was 3.4 million MWh and 9.2 million MWh, respectively. The total volume of FTRs that Cleco had outstanding at March 31, 2020, and December 31, 2019, was 5.4 million MWh and 14.6 million MWh, respectively. The total volume of other commodity derivatives Cleco had outstanding at March 31, 2020, and December 31, 2019, was 54.8 million MMBtus and 58.5 million MMBtus, respectively.
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Recent Authoritative Guidance |
3 Months Ended | |||
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Mar. 31, 2020 | ||||
Accounting Changes and Error Corrections [Abstract] | ||||
Recent Authoritative Guidance |
In June 2016, FASB amended the guidance for the measurement of credit losses on receivables and certain other assets. In-scope items for Cleco include unbilled revenue, trade receivables, notes receivables, other accounts receivables, and guarantees. The guidance requires use of a current expected loss model, which may result in earlier recognition of credit losses. Effective January 1, 2020, Cleco adopted the amended guidance using the prospective transition method. Adoption of this standard resulted in a $0.1 million increase in credit loss reserves related to unbilled revenue and trade receivables. The current expected credit loss model did not impact reserves related to any other in-scope items. For more information on Cleco’s accounting for credit losses, see Note 1 — “Summary of Significant Accounting Policies — Reserves for Credit Losses.” In August 2018, FASB issued guidance that allows for the deferral of certain implementation costs incurred in a cloud computing arrangement. Effective January 1, 2020, Cleco adopted the guidance using the prospective transition method. Adoption of this guidance did not materially impact the Registrants’ results of operations, financial condition, or cash flows. In March 2020, FASB issued amendments that are elective and apply to all entities, subject to meeting certain criteria, for the contract modifications or hedging relationships that are referencing LIBOR or another reference rate expected to be discontinued due to reference rate reform. The amendments include a general principal that permits an entity to consider contract modifications due to reference rate reform to be an event that does not require contract remeasurement at the modification date or reassessment of a previous accounting determination. The amendment became effective March 12, 2020. Management is evaluating this guidance and the impact it may have on the Registrants’ results of operations, financial condition, or cash flows.
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Revenue Recognition (Tables) |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue | Operating revenue, net for the three months ended March 31, 2020, and 2019, was as follows:
(1) Includes fuel recovery revenue. (2) Amortization of intangible assets related to Cleco Power’s wholesale power supply agreements. (3) Includes $0.2 million of electric customer credits. (4) Includes $3.7 million of other miscellaneous fee revenue. (5) Includes interdepartmental rents and support services. This revenue is eliminated upon consolidation. (6) Includes realized gains associated with FTRs of $1.4 million. (7) Includes $15.6 million in lease revenue related to the Cottonwood Sale Leaseback and $2.3 million of deferred lease revenue amortization.
(1) Includes fuel recovery revenue. (2) Amortization of intangible assets related to Cleco Power’s wholesale power supply agreements. (3) Includes $4.4 million of other miscellaneous fee revenue and $2.4 million of Teche Unit 3 SSR revenue at Cleco Power. (4) Includes interdepartmental rents and support services. This revenue is eliminated upon consolidation. (5) Includes realized gains associated with FTRs of $4.8 million and the reversal of the LCFC revenue of $(2.6) million. (6) Includes $9.8 million in lease revenue related to the Cottonwood Sale Leaseback and $1.4 million of deferred lease revenue amortization.
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Income Taxes (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||
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Mar. 31, 2020 | |||||||||||||||||||||||||||||||||||||
Effective Income Tax Rate [Line Items] | |||||||||||||||||||||||||||||||||||||
Effective Income Tax Rates | The following tables summarize the effective income tax rates for Cleco and Cleco Power for the three months ended March 31, 2020, and 2019:
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CLECO POWER | |||||||||||||||||||||||||||||||||||||
Effective Income Tax Rate [Line Items] | |||||||||||||||||||||||||||||||||||||
Effective Income Tax Rates |
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Intangible Assets and Liabilities (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Finite-Lived Intangible Assets [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Amortization of Intangible Assets and Liabilities | The following tables present Cleco and Cleco Power’s amortization of intangible assets and liabilities:
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Schedule of Finite-Lived Intangible Assets and Liabilities | The following tables summarize the balances for intangible assets and liabilities subject to amortization for Cleco and Cleco Power:
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Finite-Lived Intangible Assets [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Amortization of Intangible Assets and Liabilities |
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Schedule of Finite-Lived Intangible Assets and Liabilities |
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Fair Value Accounting - Institutional Money Market Funds (Details) - USD ($) $ in Thousands |
Mar. 31, 2020 |
Dec. 31, 2019 |
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Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | $ 338,611 | $ 103,409 |
Current restricted cash and cash equivalents | ||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||
Restricted cash and cash equivalents | 4,054 | 11,100 |
Non-current restricted cash and cash equivalents | ||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||
Restricted cash and cash equivalents | 9,883 | 15,134 |
CLECO POWER | ||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 184,911 | 49,509 |
CLECO POWER | Current restricted cash and cash equivalents | ||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||
Restricted cash and cash equivalents | 4,054 | 11,100 |
CLECO POWER | Non-current restricted cash and cash equivalents | ||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||
Restricted cash and cash equivalents | $ 9,041 | $ 14,294 |
Fair Value Accounting - Carrying Value and Estimated Fair Value (Details) - USD ($) $ in Thousands |
Mar. 31, 2020 |
Dec. 31, 2019 |
---|---|---|
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Deferred debt issuance costs not included in the carrying value of long-term debt | $ 13,200 | $ 13,700 |
CARRYING VALUE | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | 3,174,821 | 3,188,664 |
FAIR VALUE | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | 3,295,214 | 3,371,915 |
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 | 7,200 | 7,400 |
CLECO POWER | CARRYING VALUE | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | 1,369,716 | 1,380,688 |
CLECO POWER | FAIR VALUE | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | $ 1,696,053 | $ 1,601,865 |
Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2020 |
Mar. 31, 2019 |
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Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | $ 328,289 | $ 330,690 |
Revenue unrelated to contracts with customers | ||
Other | 19,283 | 13,496 |
Total revenue unrelated to contracts with customers | 19,283 | 13,496 |
Operating revenue, net | 347,572 | 344,186 |
Electric customer credits | 8,493 | 8,160 |
Deferred lease amortization | 2,301 | 1,440 |
Total retail revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 172,455 | 191,240 |
Residential | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 81,571 | 87,148 |
Commercial | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 61,110 | 65,380 |
Industrial | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 32,210 | 37,870 |
Other retail | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 3,461 | 3,681 |
Surcharge | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 2,443 | 5,321 |
Electric customer credits | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | (8,340) | (8,160) |
Wholesale, net | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 128,956 | 111,317 |
Transmission | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 23,182 | 21,306 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 3,696 | 6,827 |
Affiliate | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 0 | 0 |
CLECO POWER | ||
Revenue unrelated to contracts with customers | ||
Deferred lease amortization | 1,400 | |
CLECO POWER | LCFC | ||
Revenue unrelated to contracts with customers | ||
Other | (2,600) | |
CLECO POWER | Price Risk Derivative | ||
Revenue unrelated to contracts with customers | ||
Other | 1,400 | 4,800 |
CLECO POWER | SSR | Other | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 2,400 | |
CLECO CAJUN | ||
Revenue unrelated to contracts with customers | ||
Lease revenue | 9,800 | |
Deferred lease amortization | 2,300 | |
Operating Segments | CLECO POWER | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 231,554 | 266,516 |
Revenue unrelated to contracts with customers | ||
Other | 1,406 | 2,229 |
Total revenue unrelated to contracts with customers | 1,406 | 2,229 |
Operating revenue, net | 232,960 | 268,745 |
Electric customer credits | 8,340 | 8,160 |
Operating Segments | CLECO POWER | Total retail revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 172,455 | 191,240 |
Operating Segments | CLECO POWER | Residential | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 81,571 | 87,148 |
Operating Segments | CLECO POWER | Commercial | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 61,110 | 65,380 |
Operating Segments | CLECO POWER | Industrial | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 32,210 | 37,870 |
Operating Segments | CLECO POWER | Other retail | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 3,461 | 3,681 |
Operating Segments | CLECO POWER | Surcharge | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 2,443 | 5,321 |
Operating Segments | CLECO POWER | Electric customer credits | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | (8,340) | (8,160) |
Operating Segments | CLECO POWER | Wholesale, net | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 42,229 | 55,546 |
Operating Segments | CLECO POWER | Transmission | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 12,069 | 12,579 |
Operating Segments | CLECO POWER | Other | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 3,695 | 6,851 |
Revenue unrelated to contracts with customers | ||
Other miscellaneous fee revenue | 3,700 | 4,400 |
Operating Segments | CLECO POWER | Affiliate | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 1,106 | 300 |
Operating Segments | CLECO CAJUN | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 102,239 | 66,892 |
Revenue unrelated to contracts with customers | ||
Other | 17,877 | 11,267 |
Total revenue unrelated to contracts with customers | 17,877 | 11,267 |
Operating revenue, net | 120,116 | 78,159 |
Electric customer credits | 153 | 0 |
Lease revenue | 15,600 | |
Operating Segments | CLECO CAJUN | Total retail revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 0 | 0 |
Operating Segments | CLECO CAJUN | Residential | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 0 | 0 |
Operating Segments | CLECO CAJUN | Commercial | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 0 | 0 |
Operating Segments | CLECO CAJUN | Industrial | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 0 | 0 |
Operating Segments | CLECO CAJUN | Other retail | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 0 | 0 |
Operating Segments | CLECO CAJUN | Surcharge | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 0 | 0 |
Operating Segments | CLECO CAJUN | Electric customer credits | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 0 | 0 |
Operating Segments | CLECO CAJUN | Wholesale, net | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 89,147 | 58,191 |
Operating Segments | CLECO CAJUN | Transmission | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 12,931 | 8,727 |
Revenue unrelated to contracts with customers | ||
Electric customer credits | 200 | |
Operating Segments | CLECO CAJUN | Other | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 0 | (26) |
Operating Segments | CLECO CAJUN | Affiliate | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 161 | 0 |
OTHER | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 26,859 | 24,117 |
Revenue unrelated to contracts with customers | ||
Other | 0 | 0 |
Total revenue unrelated to contracts with customers | 0 | 0 |
Operating revenue, net | 26,859 | 24,117 |
Electric customer credits | 0 | 0 |
OTHER | Total retail revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 0 | 0 |
OTHER | Residential | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 0 | 0 |
OTHER | Commercial | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 0 | 0 |
OTHER | Industrial | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 0 | 0 |
OTHER | Other retail | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 0 | 0 |
OTHER | Surcharge | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 0 | 0 |
OTHER | Electric customer credits | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 0 | 0 |
OTHER | Wholesale, net | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | (2,420) | (2,420) |
OTHER | Transmission | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 0 | 0 |
OTHER | Other | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 1 | 2 |
OTHER | Affiliate | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 29,278 | 26,535 |
ELIMINATIONS | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | (32,363) | (26,835) |
Revenue unrelated to contracts with customers | ||
Other | 0 | 0 |
Total revenue unrelated to contracts with customers | 0 | 0 |
Operating revenue, net | (32,363) | (26,835) |
Electric customer credits | 0 | 0 |
ELIMINATIONS | Total retail revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 0 | 0 |
ELIMINATIONS | Residential | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 0 | 0 |
ELIMINATIONS | Commercial | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 0 | 0 |
ELIMINATIONS | Industrial | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 0 | 0 |
ELIMINATIONS | Other retail | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 0 | 0 |
ELIMINATIONS | Surcharge | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 0 | 0 |
ELIMINATIONS | Electric customer credits | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 0 | 0 |
ELIMINATIONS | Wholesale, net | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 0 | 0 |
ELIMINATIONS | Transmission | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | (1,818) | 0 |
ELIMINATIONS | Other | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 0 | 0 |
ELIMINATIONS | Affiliate | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | $ (30,545) | $ (26,835) |
Variable Interest Entities - Equity Method Investments (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2020 |
Mar. 31, 2019 |
Dec. 31, 2019 |
|
Schedule of Equity Method Investments [Line Items] | |||
Total equity investment in investee | $ 17,072 | $ 17,072 | |
CLECO POWER | |||
Schedule of Equity Method Investments [Line Items] | |||
Purchase price | 12,873 | 12,873 | |
Cash contributions | 6,399 | 6,399 | |
Dividends | (2,200) | (2,200) | |
Total equity investment in investee | 17,072 | $ 17,072 | |
Operating revenue | 1,882 | $ 1,958 | |
Operating expenses | 1,882 | 1,958 | |
Income before taxes | $ 0 | $ 0 |
Affiliate Transactions - Narrative (Details) - USD ($) $ in Thousands |
Mar. 31, 2020 |
Dec. 31, 2019 |
---|---|---|
Related Party Transactions [Abstract] | ||
Accounts payable - affiliate | $ 33,780 | $ 33,780 |
Debt |
3 Months Ended | |||
---|---|---|---|---|
Mar. 31, 2020 | ||||
Debt Disclosure [Abstract] | ||||
Debt |
On March 2, 2020, Cleco Power made the final $11.1 million principal payment and completed the repayment in full of its Cleco Katrina/Rita storm recovery bonds issued in March 2008. On May 1, 2020, Cleco Power repriced at a mandatory tender date its $50.0 million 2008 series A GO Zone bonds and entered into a new interest rate period with a mandatory tender date of May 1, 2025. The interest rate for the new interest rate period is fixed at 2.50% per annum. At March 31, 2020, Cleco Holdings had $88.0 million of borrowings outstanding under its $175.0 million credit facility at an all-in interest rate of 2.50%. The borrowing costs under the facility are equal to LIBOR plus 1.75% or ABR plus 0.75%, plus commitment fees of 0.275%. At March 31, 2020, Cleco Power had $150.0 million of borrowings outstanding under its $300.0 million credit facility at an all-in interest rate of 1.875%. The borrowing costs under the facility are equal to LIBOR plus 1.125% or ABR plus 0.125%, plus commitment fees of 0.125%.
|
Leases |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases |
Cleco maintains operating and finance leases in its ordinary course of business activities. 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 three months ended March 31, 2020, and 2019, was as follows:
(1) Consists of 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. For more information, see Note 2 — “Business Combinations.”
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Leases |
Cleco maintains operating and finance leases in its ordinary course of business activities. 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 three months ended March 31, 2020, and 2019, was as follows:
(1) Consists of 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. For more information, see Note 2 — “Business Combinations.”
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Leases |
Cleco maintains operating and finance leases in its ordinary course of business activities. 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 three months ended March 31, 2020, and 2019, was as follows:
(1) Consists of 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. For more information, see Note 2 — “Business Combinations.”
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Affiliate Transactions (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CLECO POWER | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Balances Payable To or Due From Affiliates | The following table is a summary of those balances:
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Leases (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lease Income Under Cottonwood Sale Leaseback | Cleco Cajun’s lease income under the Cottonwood Sale Leaseback for the three months ended March 31, 2020, and 2019, was as follows:
(1) Consists of 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. For more information, see Note 2 — “Business Combinations.”
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Pension Plan and Employee Benefits (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Periodic Pension and Other Benefits Cost | The components of net periodic pension and Other Benefits cost for the three months ended March 31, 2020, and 2019 were as follows:
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Current and Non-Current Portions of Other Benefits Liability | The current and non-current portions of the SERP liability for Cleco and Cleco Power at March 31, 2020, and December 31, 2019, were as follows:
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Expense of the 401(k) Plan | Cleco’s 401(k) Plan expense for the three months ended March 31, 2020, and 2019 was as follows:
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CLECO POWER | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Current and Non-Current Portions of Other Benefits Liability |
|
Fair Value Accounting - Fair Value of Financial Assets and Liabilities Measured On A Recurring Basis (Details) - Measured On A Recurring Basis - USD ($) $ in Thousands |
Mar. 31, 2020 |
Dec. 31, 2019 |
---|---|---|
Asset description | ||
Institutional money market funds | $ 352,549 | $ 129,643 |
Total assets | 354,541 | 136,666 |
Liability description | ||
Total liabilities | 13,177 | 6,417 |
FTRs | ||
Asset description | ||
FTRs and other commodity derivatives | 1,779 | 6,822 |
Liability description | ||
FTRs and other commodity derivatives | 683 | 1,044 |
Other commodity derivatives | ||
Asset description | ||
FTRs and other commodity derivatives | 213 | 201 |
Liability description | ||
FTRs and other commodity derivatives | 12,494 | 5,373 |
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 |
QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) | FTRs | ||
Asset description | ||
FTRs and other commodity derivatives | 0 | 0 |
Liability description | ||
FTRs and other commodity derivatives | 0 | 0 |
QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) | Other commodity derivatives | ||
Asset description | ||
FTRs and other commodity derivatives | 0 | 0 |
Liability description | ||
FTRs and other commodity derivatives | 0 | 0 |
SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) | ||
Asset description | ||
Institutional money market funds | 352,549 | 129,643 |
Total assets | 352,762 | 129,844 |
Liability description | ||
Total liabilities | 12,494 | 5,373 |
SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) | FTRs | ||
Asset description | ||
FTRs and other commodity derivatives | 0 | 0 |
Liability description | ||
FTRs and other commodity derivatives | 0 | 0 |
SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) | Other commodity derivatives | ||
Asset description | ||
FTRs and other commodity derivatives | 213 | 201 |
Liability description | ||
FTRs and other commodity derivatives | 12,494 | 5,373 |
SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | ||
Asset description | ||
Institutional money market funds | 0 | 0 |
FTRs and other commodity derivatives | 1,779 | 6,822 |
Total assets | 1,779 | 6,822 |
Liability description | ||
FTRs and other commodity derivatives | 683 | 1,044 |
Total liabilities | 683 | 1,044 |
SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | FTRs | ||
Asset description | ||
FTRs and other commodity derivatives | 1,779 | 6,822 |
Liability description | ||
FTRs and other commodity derivatives | 683 | 1,044 |
SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | Other commodity derivatives | ||
Asset description | ||
FTRs and other commodity derivatives | 0 | 0 |
Liability description | ||
FTRs and other commodity derivatives | 0 | 0 |
CLECO POWER | ||
Asset description | ||
Institutional money market funds | 198,006 | 74,903 |
FTRs and other commodity derivatives | 1,673 | 6,311 |
Total assets | 199,679 | 81,214 |
Liability description | ||
FTRs and other commodity derivatives | 524 | 586 |
Total liabilities | 524 | 586 |
CLECO POWER | QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) | ||
Asset description | ||
Institutional money market funds | 0 | 0 |
FTRs and other commodity derivatives | 0 | 0 |
Total assets | 0 | 0 |
Liability description | ||
FTRs and other commodity derivatives | 0 | 0 |
Total liabilities | 0 | 0 |
CLECO POWER | SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) | ||
Asset description | ||
Institutional money market funds | 198,006 | 74,903 |
FTRs and other commodity derivatives | 0 | 0 |
Total assets | 198,006 | 74,903 |
Liability description | ||
FTRs and other commodity derivatives | 0 | 0 |
Total liabilities | 0 | 0 |
CLECO POWER | SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | ||
Asset description | ||
Institutional money market funds | 0 | 0 |
FTRs and other commodity derivatives | 1,673 | 6,311 |
Total assets | 1,673 | 6,311 |
Liability description | ||
FTRs and other commodity derivatives | 524 | 586 |
Total liabilities | $ 524 | $ 586 |
Revenue Recognition - Narrative (Details) $ in Millions |
Mar. 31, 2020
USD ($)
|
---|---|
Revenue from Contract with Customer [Abstract] | |
Unsatisfied performance obligations | $ 80.7 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-04-01 | Minimum | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Unsatisfied performance obligation durations | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-04-01 | Maximum | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Unsatisfied performance obligation durations | 15 years |
Fair Value Accounting - Fair Value of Derivative Instruments as Recorded in Condensed Consolidated Balance Sheets (Details) - DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS - USD ($) $ in Thousands |
Mar. 31, 2020 |
Dec. 31, 2019 |
---|---|---|
Commodity-related contracts | ||
Commodity-related contracts, net | $ (11,185) | $ 606 |
Price Risk Derivative | ||
Commodity-related contracts | ||
Energy risk management assets | 1,779 | 6,822 |
Energy risk management liabilities | (683) | (1,044) |
Other commodity derivatives | ||
Commodity-related contracts | ||
Energy risk management assets | 213 | 201 |
Energy risk management liabilities | (9,014) | (3,069) |
Other deferred credits | (3,480) | (2,304) |
CLECO POWER | Price Risk Derivative | ||
Commodity-related contracts | ||
Energy risk management assets | 1,673 | 6,311 |
Energy risk management liabilities | (524) | (586) |
Commodity-related contracts, net | $ 1,149 | $ 5,725 |
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