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Revenue Recognition
 12 Months Ended
Dec. 31, 2020
Revenue from Contract with Customer [Abstract]  
Revenue Recognition
Note 5 — Revenue Recognition

Revenue from Contracts with Customers

Retail Utility Revenue
Cleco’s retail revenue from contracts with customers is generated primarily from Cleco Power’s regulated revenue from residential, commercial, and industrial customers. Cleco Power recognizes retail revenue from these contracts as a series, and progress towards satisfaction of the performance obligation is measured using an output method based on kWh delivered. Accordingly, revenue from electricity sales is recognized as energy is delivered to the customer. Cleco Power bills retail customers, based on rates regulated by the LPSC, on a monthly basis with payments generally due within 20 days of the invoice date.
Included in Cleco Power’s retail revenue is unbilled electric revenue, which represents the amount customers will be billed for services rendered from the meter reading from the most recent bill to the end of the respective accounting period. Cleco Power uses actual customer energy consumption data available from AMI to calculate unbilled revenue. Also included in Cleco Power’s retail revenue is electric customer credits, which primarily represents the accrued estimated refunds to Cleco Power’s retail customers for the tax related benefits of the TCJA.

Wholesale Revenue
Cleco’s wholesale revenue is generated primarily through the sale of energy and capacity to cooperatives and municipalities. The electricity revenue performance obligations, representing both energy and capacity, are satisfied as a
series of performance obligations, and progress towards satisfaction of the performance obligations are measured using an output method. The energy performance obligation measure of progress is based on kWh delivered. The capacity performance obligation measure of progress is based on time elapsed and is recognized each month as Cleco’s generating units stand ready to deliver electricity to the customer. Cleco recognizes wholesale revenue, inclusive of both performance obligations, under the invoice practical expedient for the amount Cleco has the right to invoice. Cleco, through Cleco Power and Cleco Cajun, charges its wholesale customers market based rates that are subject to FERC’s triennial market power analysis. Cleco also enters into transactions through MISO for spot energy sales which are transacted in the Day-Ahead Energy and Operating Reserves Market and the Real-Time Energy and Operating Reserves Market.

Transmission Revenue
Cleco Power and Cleco Cajun earn transmission revenues pursuant to MISO’s FERC filed tariff. The performance obligation of transmission service is satisfied as service is provided. Revenue from the transmission of electricity for Cleco Power and Cleco Cajun is recorded based on a separate FERC-approved annual filing rate mechanism effective June 1 of each year. These rates are based on the respective costs to provide transmission services.

Other Revenue
Other revenue from contracts with customers, which is not a significant source of Cleco’s revenue, consisted of customer-forfeited discounts and reconnect fees, electric property rental, and other miscellaneous fees. For 2019 and 2018, other revenue includes Cleco Power’s Teche Unit 3 SSR revenue. The performance obligation under these contracts is satisfied and revenue is recognized as control of the products is delivered or services are rendered.

Revenue Unrelated to Contracts with Customers
Cleco’s energy-related transactions with the following characteristics qualify as derivative contracts and are recorded pursuant to derivatives and hedging accounting guidance: a) their value is based on the notional amount or payment provisions of an underlying asset; b) they require no or a diminutive initial net investment; and c) their terms require or permit net settlement.
Cleco Cajun’s other revenue includes fixed lease payments and certain variable payments for costs paid by NRG Energy on behalf of Cleco. For more information on the Cottonwood lease agreement, see Note 4 — “Leases — Lessor Agreements — Cottonwood Sale Leaseback Agreement.”

Disaggregated Revenue
Upon the completion of the Cleco Cajun Transaction on February 4, 2019, Cleco Cajun became a reportable segment. For more information on the Cleco Cajun Transaction, see Note 3 — “Business Combinations.”
Operating revenue, net for the year ended December 31, 2020, and 2019, was as follows:
FOR THE YEAR ENDED DEC. 31, 2020
(THOUSANDS)CLECO POWERCLECO CAJUNOTHERELIMINATIONSTOTAL
Revenue from contracts with customers
Retail revenue
Residential (1)
$402,050 $— $— $— $402,050 
Commercial (1)
256,964 — — — 256,964 
Industrial (1)
137,920 — — — 137,920 
Other retail (1)
14,235 — — — 14,235 
Surcharge2,440 — — — 2,440 
Electric customer credits(52,208)— — — (52,208)
Total retail revenue761,401 — — — 761,401 
Wholesale, net192,187 
(1)
365,555 (9,680)
(2)
— 548,062 
Transmission, net49,164 
(3)
51,449 
(4)
— (6,463)94,150 
Other15,162 — — 1 15,163 
Affiliate (5)
5,156 204 129,126 (134,486)— 
Total revenue from contracts with customers1,023,070 417,208 119,446 (140,948)1,418,776 
Revenue unrelated to contracts with customers
Other 9,222 
(6)
70,145 
(7)
3 — 79,370 
Total revenue unrelated to contracts with customers 9,222 70,145 3 — 79,370 
Operating revenue, net$1,032,292 $487,353 $119,449 $(140,948)$1,498,146 
(1) Includes fuel recovery revenue.
(2) Amortization of intangible assets related to Cleco Power’s wholesale power supply agreements.
(3) Includes $0.9 million of electric customer credits.
(4) Includes $0.2 million of electric customer credits.
(5) Includes interdepartmental rents and support services. This revenue is eliminated upon consolidation.
(6) Represents realized gains associated with FTRs.
(7) Includes $60.9 million in lease revenue related to the Cottonwood Sale Leaseback and $9.2 million of deferred lease revenue amortization.
FOR THE YEAR ENDED DEC. 31, 2019
(THOUSANDS)CLECO POWERCLECO CAJUNOTHERELIMINATIONSTOTAL
Revenue from contracts with customers
Retail revenue
Residential (1)
$415,242 $— $— $— $415,242 
Commercial (1)
289,197 — — — 289,197 
Industrial (1)
149,711 — — — 149,711 
Other retail (1)
15,046 — — — 15,046 
Surcharge22,132 — — — 22,132 
Electric customer credits(35,880)— — — (35,880)
Total retail revenue855,448 — — — 855,448 
Wholesale, net226,978 
(1)
374,635 
(2)
(9,680)
(3)
(1)591,932 
Transmission50,874 
(4)
51,315 
(5)
— (7,471)94,718 
Other19,324 
(6)
— 2 — 19,326 
Affiliate (7)
3,125 108 109,067 (112,300)— 
Total revenue from contracts with customers1,155,749 426,058 99,389 (119,772)1,561,424 
Revenue unrelated to contracts with customers
Other12,621 
(8)
65,560 
(9)
— — 78,181 
Total revenue unrelated to contracts with customers 12,621 65,560 — — 78,181 
Operating revenue, net$1,168,370 $491,618 $99,389 $(119,772)$1,639,605 
(1) Includes fuel recovery revenue.
(2) Includes $0.8 million of electric customer credits.
(3) Amortization of intangible assets related to Cleco Power’s wholesale power supply agreements.
(4) Includes $2.6 million of electric customer credits.
(5) Includes $0.7 million of electric customer credits.
(6) Includes $16.1 million of other miscellaneous fee revenue and $3.2 million of Teche Unit 3 SSR revenue.
(7) Includes interdepartmental rents and support services. This revenue is eliminated upon consolidation.
(8) Includes realized gains associated with FTRs of $12.4 million and LCFC revenue of $0.2 million.
(9) Includes $57.1 million in lease revenue related to the Cottonwood Sale Leaseback and $8.4 million of deferred lease revenue amortization.
Cleco and Cleco Power have unsatisfied performance obligations with durations ranging between 1 and 14 years that primarily relate to stand-ready obligations as part of fixed capacity minimums. At December 31, 2020, Cleco and Cleco Power had $73.2 million of unsatisfied fixed performance obligations that will be recognized as revenue over the term of such contracts as the stand-ready obligation to provide energy is provided.