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


Cleco
	FOR THE THREE MONTHS ENDED SEPT. 30,				FOR THE NINE MONTHS ENDED SEPT. 30,
(THOUSANDS)	2020		2019		2020		2019
Beginning balance	$	8,040	$	14,665	$	5,778	$	22,887
Unrealized losses*	4		(1,234)		(736)		(4,488)
Purchases	443		557		10,175		26,401
Settlements	(3,160)		(5,319)		(9,890)		(36,131)
Ending balance	$	5,327	$	8,669	$	5,327	$	8,669
* 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 SEPT. 30,				FOR THE NINE MONTHS ENDED SEPT. 30,
(THOUSANDS)	2020		2019		2020		2019
Beginning balance	$	7,511	$	13,910	$	5,725	$	22,887
Unrealized gains (losses)*	426		(1,700)		1,355		(3,644)
Purchases	443		1,133		8,219		20,961
Settlements	(2,968)		(5,319)		(9,887)		(32,180)
Ending balance	$	5,412	$	8,024	$	5,412	$	8,024
* Unrealized gains (losses) are reported through Accumulated deferred fuel on Cleco Power’s Condensed Consolidated Balance Sheet.

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 September 30, 2020, and December 31, 2019:


Cleco
	FAIR VALUE				VALUATION TECHNIQUE	SIGNIFICANT UNOBSERVABLE INPUTS	FORWARD PRICE RANGE
(THOUSANDS, EXCEPT FORWARD PRICE RANGE)	ASSETS		LIABILITIES				LOW		HIGH
FTRs at Sept. 30, 2020	$	7,907	$	2,580	RTO auction pricing	FTR price - per MWh	$	(4.01)	$	4.62
FTRs at Dec. 31, 2019	$	6,822	$	1,044	RTO auction pricing	FTR price - per MWh	$	(2.57)	$	2.86


Cleco Power
	FAIR VALUE				VALUATION TECHNIQUE	SIGNIFICANT UNOBSERVABLE INPUTS	FORWARD PRICE RANGE
(THOUSANDS, EXCEPT FORWARD PRICE RANGE)	ASSETS		LIABILITIES				LOW		HIGH
FTRs at Sept. 30, 2020	$	7,177	$	1,765	RTO auction pricing	FTR price - per MWh	$	(2.41)	$	4.62
FTRs at Dec. 31, 2019	$	6,311	$	586	RTO auction pricing	FTR price - per MWh	$	(2.04)	$	2.86

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 September 30, 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 September 30, 2020, and December 31, 2019:


Cleco
(THOUSANDS)	AT SEPT. 30, 2020		AT DEC. 31, 2019
Cash and cash equivalents	$	525,112	$	103,409
Current restricted cash and cash equivalents	$	4,619	$	11,100
Non-current restricted cash and cash equivalents	$	744	$	15,134


Cleco Power
(THOUSANDS)	AT SEPT. 30, 2020		AT DEC. 31, 2019
Cash and cash equivalents	$	322,112	$	49,509
Current restricted cash and cash equivalents	$	4,619	$	11,100
Non-current restricted cash and cash equivalents	$	—	$	14,294

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 nine months ended September 30, 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 September 30, 2020, and December 31, 2019:


Cleco
	DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS
(THOUSANDS)	BALANCE SHEET LINE ITEM	AT SEPT. 30, 2020		AT DEC. 31, 2019
Commodity-related contracts
FTRs
Current	Energy risk management assets	$	7,907	$	6,822
Current	Energy risk management liabilities	(2,580)		(1,044)
Other commodity derivatives
Current	Energy risk management assets	12,067		201
Non-current	Other deferred charges	5,276		—
Current	Energy risk management liabilities	—		(3,069)
Non-current	Other deferred credits	—		(2,304)
Commodity-related contracts, net		$	22,670	$	606


Cleco Power
	DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS
(THOUSANDS)	BALANCE SHEET LINE ITEM	AT SEPT. 30, 2020		AT DEC. 31, 2019
Commodity-related contracts
FTRs
Current	Energy risk management assets	$	7,177	$	6,311
Current	Energy risk management liabilities	(1,765)		(586)
Commodity-related contracts, net		$	5,412	$	5,725

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 and nine months ended September 30, 2020, and 2019:


Cleco
	AMOUNT OF GAIN(LOSS) RECOGNIZED IN INCOME ON DERIVATIVES
		FOR THE THREE MONTHS ENDED SEPT. 30,				FOR THE NINE MONTHS ENDED SEPT. 30,
(THOUSANDS)	INCOME STATEMENT LINE ITEM	2020		2019		2020		2019
Commodity-related contracts
FTRs(1)	Electric operations	$	3,013	$	1,997	$	6,262	$	12,396
FTRs(1)	Purchased power	(763)		(2,648)		(1,053)		(12,985)
Other commodity derivatives	Fuel used for electric generation	20,307		3,474		22,515		704
Total		$	22,557	$	2,823	$	27,724	$	115

(1) For the three and nine months ended September 30, 2020, unrealized gains associated with FTRs for Cleco Power of $0.4 million and $1.4 million, respectively, were reported through Accumulated deferred fuel on the balance sheet. For the three and nine months ended September 30, 2019, unrealized losses associated with FTRs for Cleco Power of $1.7 million and $3.6 million, respectively, were reported through Accumulated deferred fuel on the balance sheet.


Cleco Power
	AMOUNT OF GAIN(LOSS) RECOGNIZED IN INCOME ON DERIVATIVES
		FOR THE THREE MONTHS ENDED SEPT. 30,				FOR THE NINE MONTHS ENDED SEPT. 30,
(THOUSANDS)	INCOME STATEMENT LINE ITEM	2020		2019		2020		2019
Commodity-related contracts
FTRs(1)	Electric operations	$	3,013	$	1,997	$	6,262	$	12,400
FTRs(1)	Purchased power	(2,326)		(1,828)		(4,397)		(4,800)
Total		$	687	$	169	$	1,865	$	7,600

(1) For the three and nine months ended September 30, 2020, unrealized gains associated with FTRs of $0.4 million and $1.4 million, respectively. were reported through Accumulated deferred fuel on the balance sheet. For the three and nine months ended September 30, 2019, unrealized losses associated with FTRs of $1.7 million and $3.6 million, respectively, were reported through Accumulated deferred fuel on the balance sheet.

The total volume of FTRs that Cleco Power had outstanding at September 30, 2020, and December 31, 2019, was 14.8 million MWh and 9.2 million MWh, respectively. The total volume of FTRs that Cleco had outstanding at September 30, 2020, and December 31, 2019, was 24.1 million MWh and 14.6 million MWh, respectively. The total volume of other commodity derivatives Cleco had outstanding at September 30, 2020, and December 31, 2019, was 63.9 million MMBtus and 58.5 million MMBtus, respectively.