10-Q

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

    ☒    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2021

Or

    ☐    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission file number 1-15759

CLECO CORPORATE HOLDINGS LLC

(Exact name of registrant as specified in its charter)

Louisiana	72-1445282
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

2030 Donahue Ferry Road, Pineville, Louisiana    71360-5226

     (Address of principal executive offices)                         (Zip Code)

Registrant’s telephone number, including area code: (318) 484-7400

Commission file number 1-05663

CLECO POWER LLC

(Exact name of registrant as specified in its charter)

Louisiana	72-0244480
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

2030 Donahue Ferry Road, Pineville, Louisiana    71360-5226

     (Address of principal executive offices)                         (Zip Code)

Registrant’s telephone number, including area code: (318) 484-7400

Securities registered pursuant to Section 12(b) of the Act:
Cleco Corporate Holdings LLC: None	Cleco Power LLC: None

Indicate by check mark whether the Registrants: (1) have filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrants were required to file such reports) and (2) have been subject to such filing requirements for the past 90 days. Yes ☐ No ☒

Indicate by check mark whether the Registrants have submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrants were required to submit such files). Yes ☒ No ☐

Indicate by check mark whether Cleco Corporate Holdings LLC is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.  (Check one): Large accelerated filer ☐     Accelerated filer ☐     Non-accelerated filer ☒ Smaller reporting company ☐ Emerging growth company ☐

If an emerging growth company, indicate by check mark if the Registrant has elected not to use the extended transition period for complying with any new or revised accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether Cleco Power LLC is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.  (Check one): Large accelerated filer ☐ Accelerated filer ☐ Non-accelerated filer ☒ Smaller reporting company ☐ Emerging growth company ☐

If an emerging growth company, indicate by check mark if the Registrant has elected not to use the extended transition period for complying with any new or revised accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the Registrants are shell companies (as defined in Rule 12b-2 of the Exchange Act)  Yes ☐ No ☒

Cleco Corporate Holdings LLC has no common stock outstanding. All of the outstanding equity of Cleco Corporate Holdings LLC is held by Cleco Group LLC, a wholly owned subsidiary of Cleco Partners L.P.

Cleco Power LLC, a wholly owned subsidiary of Cleco Corporate Holdings LLC, meets the conditions set forth in General Instructions H(1)(a) and (b) of Form 10-Q and is therefore filing this Form 10-Q with the reduced disclosure format.

CLECO
CLECO POWER	2021 3RD QUARTER FORM 10-Q

This Combined Quarterly Report on Form 10-Q (this “Quarterly Report on Form 10-Q”) is separately filed by Cleco Corporate Holdings LLC and Cleco Power LLC. Information in this filing relating to Cleco Power LLC is filed by Cleco Corporate Holdings LLC and separately by Cleco Power LLC on its own behalf. Cleco Power LLC makes no representation as to information relating to Cleco Corporate Holdings LLC (except as it may relate to Cleco Power LLC) or any other affiliate or subsidiary of Cleco Corporate Holdings LLC.

This Quarterly Report on Form 10-Q should be read in its entirety as it pertains to each respective Registrant. The Notes to the Unaudited Condensed Consolidated Financial Statements for the Registrants and certain other sections of this Quarterly Report on Form 10-Q are combined.

TABLE OF CONTENTS
		PAGE
GLOSSARY OF TERMS		3
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS		6
PART I	Financial Information
ITEM 1.	Cleco — Condensed Consolidated Financial Statements (Unaudited)	8
	Cleco Power — Condensed Consolidated Financial Statements (Unaudited)	17
	Notes to the Unaudited Condensed Consolidated Financial Statements	26
ITEM 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	54
ITEM 3.	Quantitative and Qualitative Disclosures about Market Risk	72
ITEM 4.	Controls and Procedures	73
PART II	Other Information
ITEM 1.	Legal Proceedings	75
ITEM 1A.	Risk Factors	75
ITEM 6.	Exhibits	76
	Signatures	77

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CLECO POWER	2021 3RD QUARTER FORM 10-Q

GLOSSARY OF TERMS

Abbreviations or acronyms used in this filing, including all items in Parts I and II, are defined below.

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
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
ACE	Affordable Clean Energy
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
Big Cajun II, Unit 1	A 580-MW coal-fired generating unit at Cleco Cajun’s plant site in New Roads, Louisiana.
Big Cajun II, Unit 3	A 588-MW coal-fired generating unit at Cleco Cajun’s plant site in New Roads, Louisiana. Cleco Cajun has a 58% ownership interest in the capacity of Big Cajun II, Unit 3.
CARES Act	Coronavirus Aid, Relief, and Economic Security Act of March 2020
CCR	Coal combustion by-products or residual
CDC	Centers for Disease Control and Prevention
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 Macquarie Asset Management, British Columbia Investment Management Corporation, 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
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	Coronavirus disease 2019 and the related global outbreak that was subsequently declared a pandemic by WHO in March 2020
CPP	Clean Power Plan
CSAPR	Cross-State Air Pollution Rule
DHLC	Dolet Hills Lignite Company, LLC, a wholly owned subsidiary of SWEPCO
Diversified Lands	Diversified Lands LLC, a wholly owned subsidiary of Cleco Holdings
Dolet Hills	A facility consisting of Dolet Hills Power Station, the Dolet Hills mine, and the Oxbow mine

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CLECO POWER	2021 3RD QUARTER FORM 10-Q

ABBREVIATION OR ACRONYM	DEFINITION
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 the Dolet Hills Power Station.
EAC	Environmental Adjustment Clause
EBITDA	Earnings before interest, income taxes, depreciation, and amortization
Entergy Gulf States	Entergy Gulf States Louisiana, LLC
Entergy Louisiana	Entergy Louisiana, LLC
EPA	U.S. Environmental Protection Agency
ERO	Electric Reliability Organization
Evangeline	Cleco Evangeline LLC, a wholly owned subsidiary of Midstream. Cleco Evangeline LLC was dissolved effective July 29, 2021.
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.
IRS	Internal Revenue Service
kWh	Kilowatt-hour(s)
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
MISO	Midcontinent Independent System Operator, Inc.
MMBtu	One million British thermal units
Moody’s	Moody’s Investors Service, a credit rating agency
MW	Megawatt(s)
MWh	Megawatt-hour(s)
N/A	Not Applicable
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.
OSHA	Occupational Safety and Health Administration
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. Perryville Energy Partners, L.L.C. was dissolved effective September 8, 2021.
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
RFP	Request for Proposal
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
RTO	Regional Transmission Organization
S&P	S&P Global Ratings, a division of S&P Global Inc., 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
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.

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CLECO POWER	2021 3RD QUARTER FORM 10-Q

ABBREVIATION OR ACRONYM	DEFINITION
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
WHO	World Health Organization

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CLECO POWER	2021 3RD QUARTER FORM 10-Q

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q includes forward-looking statements. All statements other than statements of historical fact included in this Quarterly Report on Form 10-Q are forward-looking statements, including, without limitation, future capital expenditures; business strategies; goals, beliefs, plans, and objectives; competitive strengths; market developments; development and operation of facilities; growth in sales volume; meeting capacity requirements; expansion of service to existing customers and service to new customers; future environmental regulations and remediation liabilities; electric customer credits; and the anticipated outcome of various regulatory and legal proceedings. Although the Registrants believe that the expectations reflected in such forward-looking statements are reasonable, such forward-looking statements are based on numerous assumptions (some of which may prove to be incorrect) and are subject to risks and uncertainties that could cause the actual results to differ materially from the Registrants’ expectations. In addition to any assumptions and other factors referred to specifically in connection with these forward-looking statements in this Quarterly Report on Form 10-Q, the following list identifies some of the factors that could cause the Registrants’ actual results to differ materially from those contemplated in any of the Registrants’ forward-looking statements:

•changes in environmental laws, regulations, decisions and policies, including present and potential environmental remediation costs, restrictions on greenhouse gas emissions to mitigate concerns over global climate changes, possible effects on Cleco’s generation resources, or prohibitions or restrictions on new or existing services, and Cleco’s compliance with these matters,

•state and federal regulatory decisions or related judicial decisions disallowing or delaying recovery of capital investments, operating costs, commodity costs, the ordering of refunds to customers and discretion over allowed return on investment,

•the loss of regulatory accounting treatment, which could result in the write-off of regulatory assets and the loss of regulatory deferral and recovery mechanisms,

•economic, regulatory, or workforce impacts related to pandemics, including the COVID-19 pandemic,

•the possibility of stranded costs with respect to assets that may be retired as a result of new climate legislation, technological advances, a shift in demand, or legal action,

•changes in climate and weather conditions, including natural disasters such as wind and ice storms, hurricanes, floods, and droughts, and Cleco Power’s ability to recover restoration costs associated with these events,

•the ability of Cleco’s customers to continue paying their utility bills due to rising costs related to fuel, hurricanes, ice storms, or other weather events,

•economic conditions in Cleco’s service areas, including the economy’s effects on customer demand for utility services,

•Cleco’s ability to recontract existing power purchase agreements or secure future power purchase agreements with wholesale customers,

•mechanical breakdowns or other incidents that could impair assets and disrupt operations of any of Cleco’s generation facilities, transmission and distribution systems, or other operations and may require Cleco to purchase replacement power or incur costs to repair the facilities,

•the loss of key suppliers for fuel, materials, or services, or other disruptions to the supply chain,

•wholesale and retail competition, including alternative energy sources, growth in customer-owned power resource technologies that displace utility-supplied energy or that may be sold back to the utility, and alternative energy suppliers and delivery arrangements,

•blackouts or disruptions of interconnected transmission systems (the regional power grid),

•terrorist attacks, cyberattacks, or other malicious acts that may damage or disrupt operating or information technology systems,

•changes in technology costs that impede Cleco’s ability to effectively implement new information systems or to operate and maintain current production technology,

•changes in Cleco’s strategic business plans, which could be affected by any of the factors discussed herein,

•the impact of Cleco’s credit ratings, changes in interest rates, other capital market conditions, and global market conditions on financing through the issuance of debt and/or equity securities,

•declining energy demand related to customer energy efficiency, conservation measures, technological advancements, or increased distributed generation,

•industry and geographic concentrations of Cleco’s counterparties, suppliers, and customers,

•volatility and illiquidity in wholesale energy markets,

•default or nonperformance on the part of any parties from whom Cleco purchases and/or sells capacity, energy, or fuel,

•Cleco Holdings’ and Cleco Power’s ability to remain in compliance with their respective debt covenants,

•the outcome of legal proceedings and other contingencies,

•changes in actuarial assumptions, interest rates, and the actual return on plan assets for Cleco’s pension and other postretirement benefit plans,

•insufficient insurance coverage, more restrictive coverage terms, increasing insurance cost, and Cleco’s ability to obtain insurance,

•Cleco’s ability to remain in compliance with the commitments made to the LPSC in connection with the Cleco Cajun Transaction and the 2016 Merger,

•Cleco Holdings’ dependence on the earnings, dividends, or distributions from its subsidiaries to meet its debt obligations,

•workforce factors, including aging workforce, changes in key members of management, availability of workers in a variety

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CLECO
CLECO POWER	2021 3RD QUARTER FORM 10-Q

of skill areas, and Cleco’s ability to recruit and retain qualified employees, and

•the unpredictability of civil unrest and its direct and indirect impact on Cleco.

For more discussion of these factors and other factors that could cause actual results to differ materially from those contemplated in the Registrants’ forward-looking statements, see Part I, Item 1A, “Risk Factors” in the Registrants’ Combined Annual Report on Form 10-K for the fiscal year ended December 31, 2020.

All subsequent written and oral forward-looking statements attributable to the Registrants, or persons acting on their

behalf, are expressly qualified in their entirety by the factors identified above.

Any forward-looking statement is considered only as of the date of this Quarterly Report on Form 10-Q and, except as required by law, the Registrants undertake no obligation to update any forward-looking statements, whether as a result of changes in actual results, changes in assumptions, or other factors affecting such statements.

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CLECO
CLECO POWER	2021 3RD QUARTER FORM 10-Q

PART I — FINANCIAL INFORMATION

ITEM 1.  CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Cleco

These unaudited condensed consolidated financial statements should be read in conjunction with Cleco’s Consolidated Financial Statements and Notes included in the Registrants’ Combined Annual Report on Form 10-K for the fiscal year ended December 31, 2020. For more information on the basis of presentation, see “Notes to the Unaudited Condensed Consolidated Financial Statements — Note 1 — Summary of Significant Accounting Policies — Basis of Presentation.”

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CLECO
CLECO POWER	2021 3RD QUARTER FORM 10-Q

CLECO
Condensed Consolidated Statements of Income (Unaudited)
	FOR THE THREE MONTHS ENDED SEPT. 30,
(THOUSANDS)	2021		2020
Operating revenue
Electric operations	$	462,164	$	386,388
Other operations	55,721		47,597
Gross operating revenue	517,885		433,985
Electric customer credits	(691)		(16,534)
Operating revenue, net	517,194		417,451
Operating expenses
Fuel used for electric generation	69,318		74,142
Purchased power	101,377		82,690
Other operations and maintenance	76,506		71,131
Depreciation and amortization	60,628		52,892
Taxes other than income taxes	17,766		14,660
Merger transaction and commitment costs	34		184
Total operating expenses	325,629		295,699
Operating income	191,565		121,752
Interest income	941		910
Allowance for equity funds used during construction	711		144
Other expense, net	(8,109)		(3,374)
Interest charges
Interest charges, net	35,174		34,349
Allowance for borrowed funds used during construction	(545)		(289)
Total interest charges	34,629		34,060
Income before income taxes	150,479		85,372
Federal and state income tax expense	30,569		25,075
Net income	$	119,910	$	60,297
The accompanying notes are an integral part of the condensed consolidated financial statements.

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CLECO
CLECO POWER	2021 3RD QUARTER FORM 10-Q

CLECO
Condensed Consolidated Statements of Comprehensive Income (Unaudited)
	FOR THE THREE MONTHS ENDED SEPT. 30,
(THOUSANDS)	2021		2020
Net income	$	119,910	$	60,297
Other comprehensive income, net of tax
Postretirement benefits gain (net of tax expense of $34 in 2021 and $159 in 2020)	96		448
Total other comprehensive income, net of tax	96		448
Comprehensive income, net of tax	$	120,006	$	60,745
The accompanying notes are an integral part of the condensed consolidated financial statements.

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CLECO
CLECO POWER	2021 3RD QUARTER FORM 10-Q

CLECO
Condensed Consolidated Statements of Income (Unaudited)
	FOR THE NINE MONTHS ENDED SEPT. 30,
(THOUSANDS)	2021		2020
Operating revenue
Electric operations	$	1,180,345	$	1,019,501
Other operations	150,777		137,407
Gross operating revenue	1,331,122		1,156,908
Electric customer credits	(40,185)		(34,126)
Operating revenue, net	1,290,937		1,122,782
Operating expenses
Fuel used for electric generation	150,620		218,643
Purchased power	336,573		208,515
Other operations and maintenance	221,486		217,693
Depreciation and amortization	169,892		162,852
Taxes other than income taxes	50,769		45,233
Merger transaction and commitment costs	(252)		3,234
Total operating expenses	929,088		856,170
Operating income	361,849		266,612
Interest income	2,416		2,964
Allowance for equity funds used during construction	2,703		197
Other expense, net	(15,112)		(15,827)
Interest charges
Interest charges, net	103,092		104,700
Allowance for borrowed funds used during construction	(1,280)		(777)
Total interest charges	101,812		103,923
Income before income taxes	250,044		150,023
Federal and state income tax expense	30,985		40,230
Net income	$	219,059	$	109,793
The accompanying notes are an integral part of the condensed consolidated financial statements.

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CLECO
CLECO POWER	2021 3RD QUARTER FORM 10-Q

CLECO
Condensed Consolidated Statements of Comprehensive Income (Unaudited)
	FOR THE NINE MONTHS ENDED SEPT. 30,
(THOUSANDS)	2021		2020
Net income	$	219,059	$	109,793
Other comprehensive income, net of tax
Postretirement benefits gain (net of tax expense of $107 in 2021 and $460 in 2020)	304		1,304
Total other comprehensive income, net of tax	304		1,304
Comprehensive income, net of tax	$	219,363	$	111,097
The accompanying notes are an integral part of the condensed consolidated financial statements.

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CLECO POWER	2021 3RD QUARTER FORM 10-Q

CLECO
Condensed Consolidated Balance Sheets (Unaudited)
(THOUSANDS)	AT SEPT. 30, 2021		AT DEC. 31, 2020
Assets
Current assets
Cash and cash equivalents	$	273,215	$	84,976
Restricted cash and cash equivalents	2,352		4,545
Customer accounts receivable (less allowance for credit losses of $1,757 in 2021 and $2,758 in 2020)	114,412		82,511
Accounts receivable - affiliate	3,038		1,663
Other accounts receivable	45,887		32,076
Taxes receivable	5,336		—
Unbilled revenue	36,759		40,127
Fuel inventory, at average cost	112,016		109,494
Materials and supplies, at average cost	132,848		132,449
Energy risk management assets	58,803		13,081
Accumulated deferred fuel	78,847		28,194
Cash surrender value of company-/trust-owned life insurance policies	94,361		89,138
Prepayments	15,013		14,549
Regulatory assets	26,495		21,041
Other current assets	23,292		11,048
Total current assets	1,022,674		664,892
Property, plant, and equipment
Property, plant, and equipment	5,596,964		5,337,190
Accumulated depreciation	(887,107)		(672,271)
Net property, plant, and equipment	4,709,857		4,664,919
Construction work in progress	134,130		124,622
Total property, plant, and equipment, net	4,843,987		4,789,541
Equity investment in investee	3,822		9,072
Goodwill	1,490,797		1,490,797
Prepayments	19,974		23,405
Operating lease right of use assets	24,689		26,172
Restricted cash and cash equivalents	745		744
Note receivable	13,941		14,506
Regulatory assets	756,343		554,609
Intangible assets	88,635		111,731
Energy risk management assets	83,427		323
Other deferred charges	46,773		39,777
Total assets	$	8,395,807	$	7,725,569
The accompanying notes are an integral part of the condensed consolidated financial statements.
(Continued on next page)

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CLECO POWER	2021 3RD QUARTER FORM 10-Q

CLECO
Condensed Consolidated Balance Sheets (Unaudited)
(THOUSANDS)	AT SEPT. 30, 2021		AT DEC. 31, 2020
Liabilities and member’s equity
Liabilities
Current liabilities
Short-term debt	$	—	$	75,000
Long-term debt and finance leases due within one year	66,736		66,682
Accounts payable	226,785		161,357
Accounts payable - affiliate	41,283		41,283
Customer deposits	60,186		58,718
Provision for rate refund	5,465		9,444
Taxes payable	47,095		7,530
Interest accrued	39,544		15,583
Energy risk management liabilities	1,589		2,453
Regulatory liabilities	46,003		23,509
Deferred compensation	13,695		13,240
Other current liabilities	60,507		49,813
Total current liabilities	608,888		524,612
Long-term liabilities and deferred credits
Accumulated deferred federal and state income taxes, net	734,717		661,376
Postretirement benefit obligations	320,504		314,653
Regulatory liabilities - deferred taxes, net	99,361		157,056
Deferred lease revenue	33,753		40,657
Intangible liabilities	20,257		24,859
Asset retirement obligations	71,390		27,986
Operating lease liabilities	21,739		23,333
Other deferred credits	25,008		28,627
Total long-term liabilities and deferred credits	1,326,729		1,278,547
Long-term debt and finance leases, net	3,483,804		3,165,387
Total liabilities	5,419,421		4,968,546
Commitments and contingencies (Note 13)
Member’s equity	2,976,386		2,757,023
Total liabilities and member’s equity	$	8,395,807	$	7,725,569
The accompanying notes are an integral part of the condensed consolidated financial statements.

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CLECO POWER	2021 3RD QUARTER FORM 10-Q

CLECO
Condensed Consolidated Statements of Cash Flows (Unaudited)
	FOR THE NINE MONTHS ENDED SEPT. 30,
(THOUSANDS)	2021			2020
Operating activities
Net income	$	219,059		$	109,793
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization	195,619			185,496
Provision for credit losses	3,106			6,134
Unearned compensation expense	7,068			5,113
Allowance for equity funds used during construction	(2,703)			(197)
Gain on risk management assets and liabilities, net	(136,024)			(23,254)
Deferred lease revenue	(6,904)			(6,904)
Deferred income taxes	36,513			39,657
Cash surrender value of company-/trust-owned life insurance	(5,223)			3,586
Changes in assets and liabilities
Accounts receivable	(56,922)			(14,683)
Accounts receivable, affiliate	(1,375)			(39)
Unbilled revenue	3,368			(1,297)
Fuel inventory and materials and supplies	(3,198)			(26,747)
Prepayments	(8,573)			(12,895)
Accounts payable	(11,680)			(30,633)
Accounts payable - affiliate	—			1,469
Customer deposits	8,295			4,688
Provision for merger commitments	(1,881)			738
Postretirement benefit obligations	6,262			4,654
Regulatory assets and liabilities, net	(95,294)			(12,264)
Deferred fuel recoveries	(50,986)			(21,076)
Other deferred accounts	(9,163)			(13,799)
Taxes accrued	26,864			30,132
Interest accrued	23,961			21,063
Energy risk management collateral received	8,900			—
Other operating	(9,295)			6,344
Net cash provided by operating activities	139,794			255,079
Investing activities
Additions to property, plant, and equipment	(209,960)			(215,692)
Allowance for equity funds used during construction	2,703			197
Proceeds from sale of property, plant, and equipment	1,445			259
Return of equity investment in investee	5,250			4,000
Other investing	1,469			562
Net cash used in investing activities	(199,093)			(210,674)
Financing activities
Draws on revolving credit facilities	185,000			238,000
Payments on revolving credit facilities	(260,000)			—
Issuances of long-term debt	325,000			125,000
Repayment of long-term debt	—			(11,055)
Payment of financing costs	(4,149)			(4,448)
Other financing	(505)			(456)
Net cash provided by financing activities	245,346			347,041
Net increase in cash, cash equivalents, restricted cash, and restricted cash equivalents	186,047			391,446
Cash, cash equivalents, restricted cash, and restricted cash equivalents at beginning of period	90,265		(1)	142,595
Cash, cash equivalents, restricted cash, and restricted cash equivalents at end of period	$	276,312	(2)	$	534,041
Supplementary cash flow information
Interest paid, net of amount capitalized	$	70,387		$	73,714
Income taxes paid (refunded), net	$	205		$	(2,777)
Supplementary non-cash investing and financing activities
Accrued additions to property, plant, and equipment	$	45,646		$	89,604
(1) Includes cash and cash equivalents of $84,976, current restricted cash and cash equivalents of $4,545, and non-current restricted cash and cash equivalents of $744. (2) Includes cash and cash equivalents of $273,215, current restricted cash and cash equivalents of $2,352, and non-current restricted cash and cash equivalents of $745.
The accompanying notes are an integral part of the condensed consolidated financial statements.

15

CLECO
CLECO POWER	2021 3RD 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, June 30, 2020	$	2,454,276	$	255,739	$	(16,657)	$	2,693,358
Net income	—		60,297		—		60,297
Other comprehensive income, net of tax	—		—		448		448
Balances, Sept. 30, 2020	$	2,454,276	$	316,036	$	(16,209)	$	2,754,103
Balances, June 30, 2021	$	2,454,276	$	427,692	$	(25,588)	$	2,856,380
Net income	—		119,910		—		119,910
Other comprehensive income, net of tax	—		—		96		96
Balances, Sept. 30, 2021	$	2,454,276	$	547,602	$	(25,492)	$	2,976,386
Balances, Dec. 31, 2019	$	2,454,276	$	206,243	$	(17,513)	$	2,643,006
Net income	—		109,793		—		109,793
Other comprehensive income, net of tax	—		—		1,304		1,304
Balances, Sept. 30, 2020	$	2,454,276	$	316,036	$	(16,209)	$	2,754,103
Balances, Dec. 31, 2020	$	2,454,276	$	328,543	$	(25,796)	$	2,757,023
Net income	—		219,059		—		219,059
Other comprehensive income, net of tax	—		—		304		304
Balances, Sept. 30, 2021	$	2,454,276	$	547,602	$	(25,492)	$	2,976,386
The accompanying notes are an integral part of the condensed consolidated financial statements.

16

CLECO
CLECO POWER	2021 3RD QUARTER FORM 10-Q

ITEM 1.  CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Cleco Power

These unaudited condensed consolidated financial statements should be read in conjunction with Cleco Power’s Consolidated Financial Statements and Notes included in the Registrants’ Combined Annual Report on Form 10-K for the fiscal year ended December 31, 2020. For more information on the basis of presentation, see “Notes to the Unaudited Condensed Consolidated Financial Statements — Note 1 — Summary of Significant Accounting Policies — Basis of Presentation.”

17

CLECO
CLECO POWER	2021 3RD QUARTER FORM 10-Q

CLECO POWER
Condensed Consolidated Statements of Income (Unaudited)
	FOR THE THREE MONTHS ENDED SEPT. 30,
(THOUSANDS)	2021		2020
Operating revenue
Electric operations	$	357,084	$	288,852
Other operations	22,779		17,775
Affiliate revenue	1,380		1,506
Gross operating revenue	381,243		308,133
Electric customer credits	(691)		(16,534)
Operating revenue, net	380,552		291,599
Operating expenses
Fuel used for electric generation	149,127		80,148
Purchased power	38,211		32,096
Other operations and maintenance	56,720		52,595
Depreciation and amortization	43,526		40,268
Taxes other than income taxes	12,891		11,408
Total operating expenses	300,475		216,515
Operating income	80,077		75,084
Interest income	936		789
Allowance for equity funds used during construction	711		144
Other expense, net	(6,106)		(3,408)
Interest charges
Interest charges, net	19,054		18,730
Allowance for borrowed funds used during construction	(545)		(289)
Total interest charges	18,509		18,441
Income before income taxes	57,109		54,168
Federal and state income tax expense	548		18,076
Net income	$	56,561	$	36,092
The accompanying notes are an integral part of the condensed consolidated financial statements.

18

CLECO
CLECO POWER	2021 3RD QUARTER FORM 10-Q

CLECO POWER
Condensed Consolidated Statements of Comprehensive Income (Unaudited)
	FOR THE THREE MONTHS ENDED SEPT. 30,
(THOUSANDS)	2021		2020
Net income	$	56,561	$	36,092
Other comprehensive income, net of tax
Postretirement benefits gain (net of tax expense of $123 in 2021 and $132 in 2020)	350		373
Amortization of interest rate derivatives to earnings (net of tax expense of $22 in both 2021 and 2020)	63		63
Total other comprehensive income, net of tax	413		436
Comprehensive income, net of tax	$	56,974	$	36,528
The accompanying notes are an integral part of the condensed consolidated financial statements.

19

CLECO
CLECO POWER	2021 3RD QUARTER FORM 10-Q

CLECO POWER
Condensed Consolidated Statements of Income (Unaudited)
	FOR THE NINE MONTHS ENDED SEPT. 30,
(THOUSANDS)	2021		2020
Operating revenue
Electric operations	$	887,191	$	752,925
Other operations	57,674		49,443
Affiliate revenue	4,259		3,852
Gross operating revenue	949,124		806,220
Electric customer credits	(40,429)		(33,974)
Operating revenue, net	908,695		772,246
Operating expenses
Fuel used for electric generation	262,970		205,276
Purchased power	151,499		74,737
Other operations and maintenance	162,448		164,207
Depreciation and amortization	126,534		125,541
Taxes other than income taxes	36,707		33,132
Total operating expenses	740,158		602,893
Operating income	168,537		169,353
Interest income	2,404		2,498
Allowance for equity funds used during construction	2,703		197
Other expense, net	(16,064)		(9,498)
Interest charges
Interest charges, net	56,672		56,401
Allowance for borrowed funds used during construction	(1,280)		(777)
Total interest charges	55,392		55,624
Income before income taxes	102,188		106,926
Federal and state income tax (benefit) expense	(219)		30,770
Net income	$	102,407	$	76,156
The accompanying notes are an integral part of the condensed consolidated financial statements.

20

CLECO
CLECO POWER	2021 3RD QUARTER FORM 10-Q

CLECO POWER
Condensed Consolidated Statements of Comprehensive Income (Unaudited)
	FOR THE NINE MONTHS ENDED SEPT. 30,
(THOUSANDS)	2021		2020
Net income	$	102,407	$	76,156
Other comprehensive income, net of tax
Postretirement benefits gain (net of tax expense of $386 in 2021 and $430 in 2020)	1,095		1,218
Amortization of interest rate derivatives to earnings (net of tax expense of $67 in both 2021 and 2020)	191		191
Total other comprehensive income, net of tax	1,286		1,409
Comprehensive income, net of tax	$	103,693	$	77,565
The accompanying notes are an integral part of the condensed consolidated financial statements.

21

CLECO
CLECO POWER	2021 3RD QUARTER FORM 10-Q

CLECO POWER
Condensed Consolidated Balance Sheets (Unaudited)
(THOUSANDS)	AT SEPT. 30, 2021		AT DEC. 31, 2020
Assets
Utility plant and equipment
Property, plant, and equipment	$	6,047,103	$	5,824,378
Accumulated depreciation	(2,242,952)		(2,067,362)
Net property, plant, and equipment	3,804,151		3,757,016
Construction work in progress	128,765		110,613
Total utility plant and equipment, net	3,932,916		3,867,629
Current assets
Cash and cash equivalents	156,318		24,846
Restricted cash and cash equivalents	2,352		4,545
Customer accounts receivable (less allowance for credit losses of $1,757 in 2021 and $2,758 in 2020)	68,581		43,852
Accounts receivable - affiliate	13,982		14,605
Other accounts receivable	30,285		27,535
Unbilled revenue	36,759		40,127
Fuel inventory, at average cost	84,534		63,234
Materials and supplies, at average cost	105,090		105,340
Energy risk management assets	6,028		4,337
Accumulated deferred fuel	78,847		28,194
Cash surrender value of company-owned life insurance policies	16,245		16,184
Prepayments	6,815		7,163
Regulatory assets	18,760		13,305
Other current assets	6,382		830
Total current assets	630,978		394,097
Equity investment in investee	3,822		9,072
Prepayments	1,306		1,496
Operating lease right of use assets	24,642		26,006
Note receivable	13,941		14,506
Regulatory assets	623,820		414,535
Other deferred charges	24,616		38,806
Total assets	$	5,256,041	$	4,766,147
The accompanying notes are an integral part of the condensed consolidated financial statements.
(Continued on next page)

22

CLECO
CLECO POWER	2021 3RD QUARTER FORM 10-Q

CLECO POWER
Condensed Consolidated Balance Sheets (Unaudited)
(THOUSANDS)	AT SEPT. 30, 2021		AT DEC. 31, 2020
Liabilities and member’s equity
Member’s equity	$	1,911,572	$	1,807,879
Long-term debt and finance leases, net	1,825,424		1,502,257
Total capitalization	3,736,996		3,310,136
Current liabilities
Short-term debt	—		75,000
Long-term debt and finance leases due within one year	736		682
Accounts payable	177,356		106,089
Accounts payable - affiliate	69,356		72,068
Customer deposits	60,186		58,718
Provision for rate refund	5,465		8,630
Taxes payable	42,931		4,778
Interest accrued	21,251		5,357
Energy risk management liabilities	1,330		1,121
Regulatory liabilities	46,003		23,509
Other current liabilities	26,940		24,754
Total current liabilities	451,554		380,706
Commitments and contingencies (Note 13)
Long-term liabilities and deferred credits
Accumulated deferred federal and state income taxes, net	670,036		634,598
Postretirement benefit obligations	237,818		230,825
Regulatory liabilities - deferred taxes, net	99,361		157,056
Asset retirement obligations	21,182		11,364
Operating lease liabilities	21,709		23,295
Other deferred credits	17,385		18,167
Total long-term liabilities and deferred credits	1,067,491		1,075,305
Total liabilities and member’s equity	$	5,256,041	$	4,766,147
The accompanying notes are an integral part of the condensed consolidated financial statements.

23

CLECO
CLECO POWER	2021 3RD QUARTER FORM 10-Q

CLECO POWER
Condensed Consolidated Statements of Cash Flows (Unaudited)
	FOR THE NINE MONTHS ENDED SEPT. 30,
(THOUSANDS)	2021			2020
Operating activities
Net income	$	102,407		$	76,156
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization	132,986			129,740
Provision for credit losses	3,106			5,746
Unearned compensation expense	1,746			1,135
Allowance for equity funds used during construction	(2,703)			(197)
Deferred income taxes	(1,737)			5,358
Cash surrender value of company-owned life insurance	(61)			1,418
Changes in assets and liabilities
Accounts receivable	(38,558)			(29,942)
Accounts receivable - affiliate	4,187			3,751
Unbilled revenue	3,368			(1,297)
Fuel inventory and materials and supplies	(21,326)			(9,511)
Prepayments	210			1,107
Accounts payable	(4,067)			(22,666)
Accounts payable - affiliate	(2,389)			1,015
Customer deposits	8,295			4,688
Provision for merger commitments	(1,381)			(1,574)
Postretirement benefit obligations	4,910			2,581
Regulatory assets and liabilities, net	(96,785)			(13,755)
Deferred fuel recoveries	(50,986)			(21,076)
Other deferred accounts	(6,394)			(14,490)
Taxes accrued	30,789			50,638
Interest accrued	15,893			13,589
Other operating	(6,807)			5,573
Net cash provided by operating activities	74,703			187,987
Investing activities
Additions to property, plant, and equipment	(202,940)			(205,765)
Allowance for equity funds used during construction	2,703			197
Proceeds from sale of property, plant, and equipment	1,445			259
Return of equity investment in investee	5,250			4,000
Other investing	1,469			562
Net cash used in investing activities	(192,073)			(200,747)
Financing activities
Draws on revolving credit facility	185,000			150,000
Payments on revolving credit facility	(260,000)			—
Issuances of long-term debt	325,000			125,000
Repayment of long-term debt	—			(11,055)
Payment of financing costs	(2,846)			(1,619)
Other financing	(505)			(456)
Net cash provided by financing activities	246,649			261,870
Net increase in cash, cash equivalents, restricted cash, and restricted cash equivalents	129,279			249,110
Cash, cash equivalents, restricted cash, and restricted cash equivalents at beginning of period	29,391		(1)	80,952
Cash, cash equivalents, restricted cash, and restricted cash equivalents at end of period	$	158,670	(2)	$	330,062
Supplementary cash flow information
Interest paid, net of amount capitalized	$	35,065		$	34,454
Supplementary non-cash investing and financing activities
Accrued additions to property, plant, and equipment	$	45,305		$	88,939
(1) Includes cash and cash equivalents of $24,846 and current restricted cash and cash equivalents of $4,545. (2) Includes cash and cash equivalents of $156,318 and current restricted cash and cash equivalents of $2,352.
The accompanying notes are an integral part of the condensed consolidated financial statements.

24

CLECO
CLECO POWER	2021 3RD 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, June 30, 2020	$	1,776,041	$	(21,612)	$	1,754,429
Net income	36,092		—		36,092
Other comprehensive income, net of tax	—		436		436
Balances, Sept. 30, 2020	$	1,812,133	$	(21,176)	$	1,790,957
Balances, June 30, 2021	$	1,878,478	$	(23,880)	$	1,854,598
Net income	56,561		—		56,561
Other comprehensive income, net of tax	—		413		413
Balances, Sept. 30, 2021	$	1,935,039	$	(23,467)	$	1,911,572
Balances, Dec. 31, 2019	$	1,735,977	$	(22,585)	$	1,713,392
Net income	76,156		—		76,156
Other comprehensive income, net of tax	—		1,409		1,409
Balances, Sept. 30, 2020	$	1,812,133	$	(21,176)	$	1,790,957
Balances, Dec. 31, 2020	$	1,832,632	$	(24,753)	$	1,807,879
Net income	102,407		—		102,407
Other comprehensive income, net of tax	—		1,286		1,286
Balances, Sept. 30, 2021	$	1,935,039	$	(23,467)	$	1,911,572
The accompanying notes are an integral part of the condensed consolidated financial statements.

25

CLECO
CLECO POWER	2021 3RD 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	Recent Authoritative Guidance	Cleco and Cleco Power
Note 3	Leases	Cleco and Cleco Power
Note 4	Revenue Recognition	Cleco and Cleco Power
Note 5	Regulatory Assets and Liabilities	Cleco and Cleco Power
Note 6	Fair Value Accounting and Financial Instruments	Cleco and Cleco Power
Note 7	Debt	Cleco and Cleco Power
Note 8	Pension Plan and Employee Benefits	Cleco and Cleco Power
Note 9	Income Taxes	Cleco and Cleco Power
Note 10	Disclosures about Segments	Cleco
Note 11	Regulation and Rates	Cleco and Cleco Power
Note 12	Variable Interest Entities	Cleco and Cleco Power
Note 13	Litigation, Other Commitments and Contingencies, and Disclosures about Guarantees	Cleco and Cleco Power
Note 14	Affiliate Transactions	Cleco and Cleco Power
Note 15	Intangible Assets and Liabilities	Cleco and Cleco Power
Note 16	Accumulated Other Comprehensive Loss	Cleco and Cleco Power
Note 17	Storm Restoration	Cleco and Cleco Power

Notes to the Unaudited Condensed Consolidated Financial Statements

Note 1 — Summary of Significant Accounting Policies

COVID-19 Impacts

In March 2020, WHO declared the outbreak of COVID-19 to be a global pandemic, and the U.S. declared a national emergency. In response to these declarations and the rapid spread of COVID-19, federal, state and local governments imposed varying degrees of restrictions on business and social activities to contain COVID-19, including quarantine and “stay-at-home” orders and directives in Cleco’s service territory. State and local authorities also subsequently implemented multistep policies to reopen various sectors of the economy such as retail establishments, health and personal care businesses, and restaurants, among others. During March and April 2021, due to the reduction in new COVID-19 cases and hospitalizations and the availability of COVID-19 vaccines, the governor of the state of Louisiana reduced restrictions that were previously in effect, eased capacity limits on businesses and social gatherings, and revoked the mandatory, state-wide mask mandate. However, effective August 4, 2021, the state-wide mask mandate was reinstated due to a surge in COVID-19 cases. Due to the decrease in the number of COVID-19 cases, effective October 27, 2021, the mandatory, state-wide mask mandate was once again revoked.

Cleco has modified some of its business operations, as these restrictions have significantly impacted many sectors of the economy. Impacts include record levels of unemployment, with businesses, nonprofit organizations, and governmental entities modifying, curtailing, or ceasing normal operations. Cleco is monitoring the ongoing COVID-19 pandemic and continues to adjust certain business practices to conform to government restrictions and best practices encouraged by the CDC, WHO, OSHA, and other governmental and regulatory authorities. The COVID-19 pandemic may worsen in the U.S. during the upcoming months, which may cause federal, state, and local governments to reconsider restrictions on business and social activities. In the event governments reinstate or

increase restrictions, the reopening of the economy may be further curtailed.

On September 9, 2021, the Presidential Administration announced mandatory COVID-19 vaccination plans impacting federal contractors and employees of companies having 100 or more employees. On November 4, 2021, OSHA announced a new emergency temporary standard requiring employers with 100 or more employees to develop, implement, and enforce a mandatory COVID-19 vaccination policy, unless they adopt a policy requiring employees to choose to either be vaccinated or undergo regular COVID-19 testing and wear a face covering at work. Cleco is closely monitoring updates concerning these vaccination mandates and any potential impacts they may have on its businesses and workforce. The impact of these vaccination standards could have an adverse impact on Cleco’s workforce, labor relations, and operations.

In March 2020, the LPSC issued an executive order prohibiting the disconnection of utilities for nonpayment. At September 30, 2021, Cleco Power had a regulatory asset of $3.0 million recorded for expenses incurred related to the executive order, as allowed by the LPSC. While Cleco continues to assess the COVID-19 situation, Cleco cannot predict the full impact that COVID-19, or the significant disruption and volatility currently being experienced in the markets, will have on its business, cash flows, liquidity, financial condition, and results of operations at this time, due to numerous uncertainties. However, the ultimate impacts will depend on future developments, including, among others, the ultimate geographic spread of COVID-19, the consequences of governmental and other measures designed to prevent the spread of COVID-19, the availability, timely distribution and acceptance of effective treatments and vaccines, the duration of the pandemic, actions taken by governmental authorities, customers, suppliers and other third parties, workforce availability, and the timing and extent to which normal economic and operating conditions resume.

26

CLECO
CLECO POWER	2021 3RD QUARTER FORM 10-Q

Principles of Consolidation

The accompanying condensed consolidated financial statements of Cleco include the accounts of Cleco and its majority-owned subsidiaries after elimination of intercompany accounts and transactions.

Basis of Presentation

The condensed consolidated financial statements of Cleco and Cleco Power have been prepared in accordance with GAAP for interim financial information and with the instructions to Form 10-Q and Regulation S-X. Accordingly, these condensed consolidated financial statements do not include all of the information and notes required by GAAP for annual financial statements. The year-end condensed consolidated balance sheet data was derived from audited financial statements. Because the interim condensed consolidated financial statements and the accompanying notes do not include all of the information and notes required by GAAP for annual financial statements, the condensed consolidated financial statements and other information included in this Quarterly Report on Form 10-Q should be read in conjunction with the consolidated financial statements and accompanying notes in the Registrants’ Combined Annual Report on Form 10-K for the fiscal year ended December 31, 2020.

These condensed consolidated financial statements, in the opinion of management, reflect all normal recurring adjustments that are necessary for a fair statement of the financial position and results of operations of Cleco and Cleco Power. Amounts reported in Cleco and Cleco Power’s interim financial statements are not necessarily indicative of amounts expected for the annual periods due to the effects of seasonal temperature variations on energy consumption, regulatory rulings, the timing of maintenance on electric generating units, changes in mark-to-market valuations, changing commodity prices, discrete income tax items, and other factors.

In preparing financial statements that conform to GAAP, management must make estimates and assumptions that affect the reported amounts of assets and liabilities, the reported amounts of revenues and expenses, and the disclosure of contingent assets and liabilities at the date of the financial statements. Actual results could differ from those estimates. For information on recent authoritative guidance and its effect on financial results, see Note 2 — “Recent Authoritative Guidance.”

Restricted Cash and Cash Equivalents

Various agreements to which Cleco is subject contain covenants that restrict its use of cash. As certain provisions under these agreements are met, cash is transferred out of related escrow accounts and becomes available for its intended purposes and/or general corporate purposes.

Cleco and Cleco Power’s restricted cash and cash equivalents consisted of the following:

Cleco
(THOUSANDS)	AT SEPT. 30, 2021		AT DEC. 31, 2020
Current
Cleco Katrina/Rita storm recovery surcharge	$	1,674	$	2,626
Cleco Power’s charitable contributions	678		1,718
Cleco Power’s rate credit escrow	—		201
Total current	2,352		4,545
Non-current
Diversified Lands’ mitigation escrow	22		22
Cleco Cajun’s defense fund	723		722
Total non-current	745		744
Total restricted cash and cash equivalents	$	3,097	$	5,289

Cleco Power
(THOUSANDS)	AT SEPT. 30, 2021		AT DEC. 31, 2020
Current
Cleco Katrina/Rita storm recovery surcharge	$	1,674	$	2,626
Charitable contributions	678		1,718
Rate credit escrow	—		201
Total restricted cash and cash equivalents	$	2,352	$	4,545

Prior to the repayment of the storm recovery bonds at their scheduled maturity in March 2020, Cleco Katrina/Rita had the right to bill and collect storm restoration costs from Cleco Power’s customers. As cash was collected, it was restricted for payment of administrative fees, interest, and principal on the storm recovery bonds. In April 2021, after payments for all final administrative and winding up activities of Cleco Katrina/Rita were made, Cleco Katrina/Rita transferred its remaining restricted cash to Cleco Power to be used to benefit retail customers in a manner and timing as approved by the LPSC.

Reserves for Credit Losses

Customer accounts receivable are recorded at the invoiced amount and do not bear interest. Customer accounts receivable are generally considered to become past due 20 days after the billing date. Cleco recognizes write-offs within the allowance for credit losses once all recovery methods have been exhausted. It is the policy of management to review accounts receivable and unbilled revenue monthly using a reserve matrix based on historical bad debt write-offs, as well as current and forecasted economic conditions, to establish a credit loss estimate. Management’s historical credit loss analysis included periods of economic recessions, natural disasters, and temporary changes to collection policies. Due to the critical necessity of electricity, none of these past events have significantly impacted Cleco’s credit loss rates.

Although Cleco’s service territory experienced a recent economic decline during 2020 and 2021, primarily related to the COVID-19 pandemic and weather-related events, the economic outlook at September 30, 2021, was still within range of its historical credit loss analysis.

The tables below present the changes in the allowance for credit losses by receivable for Cleco and Cleco Power:

27

CLECO
CLECO POWER	2021 3RD QUARTER FORM 10-Q

Cleco
	FOR THE THREE MONTHS ENDED SEPT. 30, 2021						FOR THE NINE MONTHS ENDED SEPT. 30, 2021
(THOUSANDS)	ACCOUNTS RECEIVABLE		OTHER*		TOTAL		ACCOUNTS RECEIVABLE		OTHER*		TOTAL
Balances, beginning of period	$	1,334	$	1,638	$	2,972	$	2,758	$	1,638	$	4,396
Current period provision	567		—		567		3,057		—		3,057
Charge-offs	(730)		—		(730)		(5,172)		—		(5,172)
Recovery	586		—		586		1,114		—		1,114
Balances, Sept. 30, 2021	$	1,757	$	1,638	$	3,395	$	1,757	$	1,638	$	3,395

* Loan held at Diversified Lands that was fully reserved for at September 30, 2021.

	FOR THE THREE MONTHS ENDED SEPT. 30, 2020						FOR THE NINE MONTHS ENDED SEPT. 30, 2020
(THOUSANDS)	ACCOUNTS RECEIVABLE		OTHER*		TOTAL		ACCOUNTS RECEIVABLE		OTHER*		TOTAL
Balances, beginning of period	$	3,486	$	1,638	$	5,124	$	3,005	$	1,250	$	4,255
CECL adoption	—		—		—		71		—		71
Current period provision	2,041		—		2,041		5,675		388		6,063
Charge-offs	—		—		—		(4,091)		—		(4,091)
Recovery	54		—		54		921		—		921
Balances, Sept. 30, 2020	$	5,581	$	1,638	$	7,219	$	5,581	$	1,638	$	7,219

* Loan held at Diversified Lands that was fully reserved for at September 30, 2020.

Cleco Power
	FOR THE THREE MONTHS ENDED SEPT. 30, 2021		FOR THE NINE MONTHS ENDED SEPT. 30, 2021
(THOUSANDS)	ACCOUNTS RECEIVABLE
Balances, beginning of period	$	1,334	$	2,758
Current period provision	567		3,057
Charge-offs	(730)		(5,172)
Recovery	586		1,114
Balances, Sept. 30, 2021	$	1,757	$	1,757

	FOR THE THREE MONTHS ENDED SEPT. 30, 2020		FOR THE NINE MONTHS ENDED SEPT. 30, 2020
(THOUSANDS)	ACCOUNTS RECEIVABLE
Balances, beginning of period	$	3,486	$	3,005
CECL adoption	—		71
Current period provision	2,041		5,675
Charge-offs	—		(4,091)
Recovery	54		921
Balances, Sept. 30, 2020	$	5,581	$	5,581

Note 2 — Recent Authoritative Guidance

In March 2020, FASB issued optional guidance, for a limited period of time, that applies to entities 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 guidance includes 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 optional guidance may be applied from March 12, 2020, through December 31, 2022. Management has identified contracts with reference rates that will be discontinued, primarily related to long-term debt obligations. Certain debt contracts have been amended to include fallback provisions that provide substitute reference rates upon the discontinuance of LIBOR, among other amendments. Management will continue to modify contracts to include

similar fallback language and expects to apply this guidance on an ongoing basis. Management does not expect this guidance to have a significant impact on the Registrants’ results of operations, financial condition, or cash flows.

In December 2019, FASB amended the guidance for accounting for income taxes. The amendments simplify the accounting for income taxes by removing certain exceptions to general principles included in the accounting guidance. Effective January 1, 2021, Cleco adopted the amended accounting guidance. Adoption of this guidance did not materially impact the Registrants’ results of operations, financial condition, or cash flows.

Note 3 — 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 is included in Other operations within Cleco’s Condensed Consolidated Statement of Income. Cleco Cajun’s lease income under the Cottonwood Sale Leaseback for the three and nine months ended September 30, 2021, and 2020, was as follows:

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	FOR THE THREE MONTHS ENDED SEPT. 30,				FOR THE NINE MONTHS ENDED SEPT. 30,
(THOUSANDS)	2021		2020		2021		2020
Fixed payments	$	10,000	$	10,000	$	30,000	$	30,000
Variable payments	4,938		5,190		15,413		15,950
Amortization of deferred lease liability*	2,301		2,301		6,904		6,904
Total lease income	$	17,239	$	17,491	$	52,317	$	52,854

* Consists of amortization 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.

Note 4 — Revenue Recognition

Operating revenue, net for the three and nine months ended September 30, 2021, and 2020, was as follows:

	FOR THE THREE MONTHS ENDED SEPT. 30, 2021
(THOUSANDS)	CLECO POWER			CLECO CAJUN			OTHER			ELIMINATIONS		TOTAL
Revenue from contracts with customers
Retail revenue
Residential (1)	$	148,522		$	—		$	—		$	—	$	148,522
Commercial (1)	82,711			—			—			—		82,711
Industrial (1)	45,446			—			—			—		45,446
Other retail (1)	4,479			—			—			—		4,479
Electric customer credits	(764)			—			—			—		(764)
Total retail revenue	280,394			—			—			—		280,394
Wholesale, net	74,831		(1)	107,501			(2,420)		(2)	—		179,912
Transmission, net	17,235		(3)	17,903			—			(2,217)		32,921
Other	5,618			—			—			—		5,618
Affiliate (4)	1,380			—			32,116			(33,496)		—
Total revenue from contracts with customers	379,458			125,404			29,696			(35,713)		498,845
Revenue unrelated to contracts with customers
Other	1,094		(5)	17,254		(6)	1			—		18,349
Total revenue unrelated to contracts with customers	1,094			17,254			1			—		18,349
Operating revenue, net	$	380,552		$	142,658		$	29,697		$	(35,713)	$	517,194

(1) Includes fuel recovery revenue.

(2) Amortization of intangible assets related to Cleco Power’s wholesale power supply agreements.

(3) Includes $0.1 million of electric customer credits.

(4) Includes interdepartmental rents and support services. This revenue is eliminated upon consolidation.

(5) Realized gains associated with FTRs.

(6) Includes $14.9 million in lease revenue related to the Cottonwood Sale Leaseback and $2.3 million of deferred lease revenue amortization.

	FOR THE THREE MONTHS ENDED SEPT. 30, 2020
(THOUSANDS)	CLECO POWER			CLECO CAJUN			OTHER			ELIMINATIONS		TOTAL
Revenue from contracts with customers
Retail revenue
Residential (1)	$	128,981		$	—		$	—		$	—	$	128,981
Commercial (1)	68,220			—			—			—		68,220
Industrial (1)	32,809			—			—			—		32,809
Other retail (1)	3,614			—			—			—		3,614
Electric customer credits	(16,534)			—			—			—		(16,534)
Total retail revenue	217,090			—			—			—		217,090
Wholesale, net	52,216		(1)	99,956			(2,420)		(2)	—		149,752
Transmission, net	14,656			13,818			—			(1,510)		26,964
Other	3,118			—			—			—		3,118
Affiliate (3)	1,506			—			35,522			(37,028)		—
Total revenue from contracts with customers	288,586			113,774			33,102			(38,538)		396,924
Revenue unrelated to contracts with customers
Other	3,013		(4)	17,513		(5)	1			—		20,527
Total revenue unrelated to contracts with customers	3,013			17,513			1			—		20,527
Operating revenue, net	$	291,599		$	131,287		$	33,103		$	(38,538)	$	417,451

(1) Includes fuel recovery revenue.

(2) Amortization of intangible assets related to Cleco Power’s wholesale power supply agreements.

(3) Includes interdepartmental rents and support services. This revenue is eliminated upon consolidation.

(4) Realized gains associated with FTRs.

(5) Includes $15.2 million in lease revenue related to the Cottonwood Sale Leaseback and $2.3 million of deferred lease revenue amortization.

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	FOR THE NINE MONTHS ENDED SEPT. 30, 2021
(THOUSANDS)	CLECO POWER			CLECO CAJUN			OTHER			ELIMINATIONS		TOTAL
Revenue from contracts with customers
Retail revenue
Residential (1)	$	348,918		$	—		$	—		$	—	$	348,918
Commercial (1)	214,129			—			—			—		214,129
Industrial (1)	119,497			—			—			—		119,497
Other retail (1)	11,925			—			—			—		11,925
Electric customer credits	(40,794)			—			—			—		(40,794)
Total retail revenue	653,675			—			—			—		653,675
Wholesale, net	182,769		(1)	300,415			(7,260)		(2)	—		475,924
Transmission, net	44,530		(3)	46,733		(4)	—			(5,752)		85,511
Other	13,509			—			—			(1)		13,508
Affiliate (5)	4,259			—			85,392			(89,651)		—
Total revenue from contracts with customers	898,742			347,148			78,132			(95,404)		1,228,618
Revenue unrelated to contracts with customers
Other	9,953		(6)	52,362		(7)	4			—		62,319
Total revenue unrelated to contracts with customers	9,953			52,362			4			—		62,319
Operating revenue, net	$	908,695		$	399,510		$	78,136		$	(95,404)	$	1,290,937

(1) Includes fuel recovery revenue.

(2) Amortization of intangible assets related to Cleco Power’s wholesale power supply agreements.

(3) Includes $0.4 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) Realized gains associated with FTRs.

(7) Includes $45.4 million in lease revenue related to the Cottonwood Sale Leaseback and $6.9 million of deferred lease revenue amortization.

	FOR THE NINE MONTHS ENDED SEPT. 30, 2020
(THOUSANDS)	CLECO POWER			CLECO CAJUN			OTHER			ELIMINATIONS		TOTAL
Revenue from contracts with customers
Retail revenue
Residential (1)	$	308,525		$	—		$	—		$	—	$	308,525
Commercial (1)	190,905			—			—			—		190,905
Industrial (1)	94,227			—			—			—		94,227
Other retail (1)	10,416			—			—			—		10,416
Surcharge	2,440			—			—			—		2,440
Electric customer credits	(33,219)			—			—			—		(33,219)
Total retail revenue	573,294			—			—			—		573,294
Wholesale, net	140,139		(1)	273,836			(7,260)		(2)	—		406,715
Transmission, net	38,273		(3)	39,880		(4)	—			(4,966)		73,187
Other	10,416			—			—			1		10,417
Affiliate (5)	3,852			204			93,938			(97,994)		—
Total revenue from contracts with customers	765,974			313,920			86,678			(102,959)		1,063,613
Revenue unrelated to contracts with customers
Other	6,272		(6)	52,895		(7)	2			—		59,169
Total revenue unrelated to contracts with customers	6,272			52,895			2			—		59,169
Operating revenue, net	$	772,246		$	366,815		$	86,680		$	(102,959)	$	1,122,782

(1) Includes fuel recovery revenue.

(2) Amortization of intangible assets related to Cleco Power’s wholesale power supply agreements.

(3) Includes $0.8 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) Realized gains associated with FTRs.

(7) Includes $46.0 million in lease revenue related to the Cottonwood Sale Leaseback and $6.9 million of deferred lease revenue amortization.

Cleco and Cleco Power have unsatisfied performance obligations under contracts with cooperatives and municipalities with durations ranging between 1 and 14 years that primarily relate to stand-ready obligations as part of fixed capacity minimums. At September 30, 2021, Cleco and Cleco Power had $65.7 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.

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Note 5 — Regulatory Assets and Liabilities

Cleco Power capitalizes or defers certain costs for recovery from customers and recognizes a liability for amounts expected to be returned to customers based on regulatory approval and management’s ongoing assessment that it is probable these items will be recovered or refunded through the ratemaking process.

Under the current regulatory environment, Cleco Power believes these regulatory assets will be fully recoverable; however, if in the future, as a result of regulatory changes or

competition, Cleco Power’s ability to recover these regulatory assets would no longer be probable, then to the extent that such regulatory assets were determined not to be recoverable, Cleco Power would be required to write-down such assets. In addition, potential deregulation of the industry, or possible future changes in the method of rate regulation of Cleco Power, could require discontinuance of the application of the authoritative guidance on regulated operations.

The following table summarizes Cleco Power’s regulatory assets and liabilities:

Cleco Power
					REMAINING RECOVERY PERIOD (YRS.)
(THOUSANDS)	AT SEPT. 30, 2021		AT DEC. 31, 2020
Regulatory assets
Acadia Unit 1 acquisition costs	$	1,939	$	2,019	18.5
Accumulated deferred fuel (1)	78,847		28,194		Various	(2)
AFUDC equity gross-up	67,348		69,670		Various	(3)
Affordability study	13,438		—		10
AMI deferred revenue requirement	2,181		2,591		4
AROs (1)(7)	8,060		5,488
Bayou Vista to Segura deferred revenue requirement (7)	287		—
Coughlin transaction costs	853		876		28
COVID-19 executive order (7)	2,953		2,953
Deferred storm restoration costs - Hurricane Delta (7)	17,866		17,051
Deferred storm restoration costs - Hurricane Ida (7)	36,836		—
Deferred storm restoration costs - Hurricane Laura (7)	56,815		54,406
Deferred storm restoration costs - Hurricane Zeta (7)	3,496		3,493
Deferred storm restoration costs - Winter Storms Uri & Viola (7)	1,974		—
Dolet Hills Power Station closure costs (7)	112,158		48,982
Emergency declarations	—		270		—
Energy efficiency	1,998		2,820		1.5
Financing costs (1)	6,919		7,184		Various	(4)
Interest costs	3,521		3,708		Various	(3)
Lignite Mine closure costs (7)	93,093		—
Madison Unit 3 property taxes (7)	6,272		—
Non-service cost of postretirement benefits	11,662		9,901		Various	(3)
Other	13,247		4,229		Various	(2)
Postretirement costs	149,883		165,437		Various	(5)
Production operations and maintenance expenses	1,998		4,058		Various	(6)
Rodemacher Unit 2 deferred costs (7)	5,519		1,333
St. Mary Clean Energy Center	6,524		3,479		4
Training costs	5,968		6,085		38.5
Tree trimming costs	9,771		11,807		3.5
Total regulatory assets	721,426		456,034
Regulatory liabilities
AFUDC (7)	(6,500)		(4,218)
Corporate franchise tax, net	—		(763)		—
Deferred taxes, net	(138,864)		(175,584)		Various
Total regulatory liabilities	(145,364)		(180,565)
Total regulatory assets, net	$	576,062	$	275,469
(1) Represents regulatory assets for past expenditures that were not earning a return on investment at September 30, 2021, and December 31, 2020, respectively. All other assets are earning a return on investment. (2) For more information related to the remaining recovery period, refer to the following disclosures for each specific regulatory asset or liability. (3) Amortized over the estimated lives of the respective assets. (4) Amortized over the terms of the related debt issuances. (5) Amortized over the average service life of the remaining plan participants. (6) Deferral is recovered over the following three year regulatory period. (7) Currently not in a recovery period.

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The following table summarizes Cleco’s net regulatory assets and liabilities:

Cleco
(THOUSANDS)	AT SEPT. 30, 2021		AT DEC. 31, 2020
Total Cleco Power regulatory assets, net	$	576,062	$	275,469
2016 Merger adjustments *
Fair value of long-term debt	114,001		119,553
Postretirement costs	13,921		15,411
Financing costs	7,334		7,592
Debt issuance costs	5,004		5,254
Total Cleco regulatory assets, net	$	716,322	$	423,279

* Cleco regulatory assets include acquisition accounting adjustments as a result of the 2016 Merger.

Accumulated Deferred Fuel

In February 2021, Winter Storms Uri and Viola moved through Louisiana causing substantial damage to Cleco’s distribution assets, electricity generation supply shortages, natural gas supply shortages, and increases in wholesale prices of natural gas in the U.S., primarily due to prolonged freezing temperatures. Incremental fuel and purchased power costs were incurred as a result of the winter storms. On March 29, 2021, Cleco Power received approval from the LPSC to defer $50.0 million of these costs and recover them over 12 months through Cleco Power’s FAC beginning in May 2021. For more information about the incremental fuel and purchased power costs related to Winter Storms Uri and Viola, see Note 17 — “Storm Restoration — Winter Storms Uri and Viola.”

Higher lignite and natural gas costs also contributed to the increase in Cleco Power’s accumulated deferred fuel.

Affordability Study

On June 16, 2021, the LPSC approved Cleco Power’s new retail rate plan. As a result, Cleco Power was allowed to establish a regulatory asset of $13.6 million related to outside consulting fees for the assessment of Cleco Power’s practices and assistance in the identification of potential cost savings opportunities, while maintaining superior levels of employee safety, reliability, customer service, environmental stewardship, community involvement, and regulatory transparency. The regulatory asset is being amortized over 10 years beginning July 1, 2021.

Bayou Vista To Segura Deferred Revenue Requirement

On June 16, 2021, the LPSC approved Cleco Power’s new retail rate plan. As a result, Cleco Power was allowed to establish a regulatory asset and recover the revenue requirements, including interest at Cleco Power’s weighted average cost of capital, upon the completion of each phase of the Bayou Vista to Segura Transmission project. The northern phase of the project was completed in August 2021. At September 30, 2021, Cleco Power had a regulatory asset of $0.3 million related to deferred revenue associated with the northern phase of the Bayou Vista to Segura Transmission project. The regulatory asset will be amortized over 12 months beginning July 1, 2022.

Deferred Storm Restoration Costs — Hurricane Ida

On August 29, 2021, Hurricane Ida made landfall in southeast Louisiana as a Category 4 storm, causing power outages for approximately 100,000 of Cleco Power’s electric customers located primarily in southeastern Louisiana.

On September 22, 2021, the LPSC approved Cleco Power’s establishment of a regulatory asset to track and defer non-capital expenses associated with the hurricane. For more information about Hurricane Ida, see Note 17 — “Storm Restoration — Hurricane Ida.”

Deferred Storm Restoration Costs — Winter Storms

In February 2021, Cleco Power’s service territory experienced extreme and unprecedented winter weather.

On February 14, 2021, Winter Storm Uri reached Louisiana resulting in power outages for approximately 11,000 of Cleco Power’s electric customers located primarily in south Louisiana.

On February 17, 2021, Winter Storm Viola reached Louisiana resulting in power outages for approximately 43,000 of Cleco Power’s electric customers located primarily in central and south Louisiana.

On March 17, 2021, the LPSC approved utilities establishing a regulatory asset to track and defer non-capital expenses associated with these winter storms. For more information about Winter Storms Uri and Viola, see Note 17 — “Storm Restoration — Winter Storms Uri and Viola.”

Lignite Mine Closure Cost

On October 6, 2020, Cleco Power and SWEPCO made a joint filing with the LPSC seeking authorization to close the Oxbow mine and to include and defer certain accelerated mine closing costs in fuel and related ratemaking treatment. On March 17, 2021, the LPSC approved the establishment of a regulatory asset for certain lignite costs that would otherwise be billed through Cleco Power’s FAC and any reasonable incremental third-party professional costs related to the closure of the mine. At September 30, 2021, Cleco Power had a regulatory asset of $93.1 million for these mine-related incurred costs. For more information on the Oxbow mine, see Note 13 — “Litigation, Other Commitments and Contingencies, and Disclosures about Guarantees — Risks and Uncertainties.”

Madison Unit 3 Property Taxes

On June 16, 2021, the LPSC approved Cleco Power’s new retail rate plan. As a result, beginning July 1, 2022, Cleco Power will be allowed to recover property taxes paid for Madison Unit 3, including a carrying charge at Cleco Power’s weighted average cost of capital, grossed up for income taxes. At September 30, 2021, Cleco Power had a regulatory asset of $6.3 million for the accrued 2021 Madison Unit 3 property taxes. The amount included in the cost recovery mechanism each year will amortize over 12 months.

Other

On June 16, 2021, the LPSC approved Cleco Power’s new retail rate plan resulting in Cleco Power establishing several regulatory assets. Cleco Power was allowed to establish a regulatory asset to recover the undercollection of revenues related to the Northlake Transmission Agreement capped at $5.7 million. The amount recorded in the regulatory asset at June 30, 2021, began being amortized over 12 months on July 1, 2021. Amounts recorded in the regulatory asset after June 30, 2021, are being amortized over the remaining regulatory period ending June 30, 2022. At September 30, 2021, Cleco Power had a regulatory asset of $4.2 million relating to the Northlake Transmission Agreement.

In addition, the LPSC approved recovery of other previously deferred costs associated with Cleco Power’s

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recently approved retail rate plan, which began being amortized over four years on July 1, 2021. At September 30, 2021, Cleco Power had a regulatory asset of $3.9 million for deferred costs.

In June 2017, and prior to the approval of Cleco Power’s new retail rate plan, the LPSC approved the establishment of a regulatory asset upon the completion of the Coughlin Pipeline project, for the revenue requirement associated with the project, until Cleco Power’s new retail rate plan was approved. As approved by the LPSC in Cleco Power’s new retail rate plan, the regulatory asset began being amortized over four years on July 1, 2021. At September 30, 2021, Cleco Power had a regulatory asset of $5.1 million related to the deferred revenue associated with the Coughlin Pipeline project.

St. Mary Clean Energy Center

Cleco Power had a regulatory asset for revenue requirements related to the St. Mary Clean Energy Center project. As approved by the LPSC in Cleco Power’s new retail rate plan, the regulatory asset began being amortized over four years on July 1, 2021.

Note 6 — Fair Value Accounting and Financial Instruments

The amounts reflected on Cleco and Cleco Power’s Condensed Consolidated Balance Sheets at September 30, 2021, and December 31, 2020, 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:

Cleco
	AT SEPT. 30, 2021				AT DEC. 31, 2020
(THOUSANDS)	CARRYING VALUE*		FAIR VALUE		CARRYING VALUE*		FAIR VALUE
Long-term debt	$	3,550,179	$	3,836,960	$	3,230,500	$	3,541,349

* The carrying value of long-term debt does not include deferred issuance costs of $14.1 million at
September 30, 2021, and $13.4 million at December 31, 2020.

Cleco Power
	AT SEPT. 30, 2021				AT DEC. 31, 2020
(THOUSANDS)	CARRYING VALUE*		FAIR VALUE		CARRYING VALUE*		FAIR VALUE
Long-term debt	$	1,820,177	$	2,100,029	$	1,494,947	$	1,794,799

* The carrying value of long-term debt does not include deferred issuance costs of $8.5 million at
September 30, 2021, and $7.0 million at December 31, 2020.

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. Cleco elects not to designate derivatives as cash flow or fair value hedges, as allowed by accounting guidance. Cleco utilizes a mark-to-market approach recognizing changes in the fair value of FTRs and commodity derivatives at Cleco Cajun in earnings and changes in the fair value of FTRs at Cleco Power as a component of deferred fuel assets and liabilities. Cleco utilizes different valuation techniques for fair value measurements under a fair value hierarchy. Assets and liabilities classified as Level 1 under the hierarchy utilize observable inputs that reflect quotable prices in active markets. Assets and liabilities classified as Level 2 are measured through proxy inputs of similar index or composite pricing. Assets and liabilities classified as Level 3 under the hierarchy are valued based on unobservable inputs, such as internally generated valuation models or valuations obtained in inactive markets where there is no readily available information. 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. During the nine months ended September 30, 2021, and the year ended December 31, 2020, Cleco did not experience any transfers between levels within the fair value hierarchy.

The following tables disclose for Cleco and Cleco Power the fair value of financial assets and liabilities measured on a recurring basis. These amounts are presented on a gross basis before consideration of amounts netted under master netting agreements and the application of collateral received or paid:

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Cleco
	FAIR VALUE MEASUREMENTS AT REPORTING DATE
(THOUSANDS)	AT SEPT. 30, 2021		QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1)		SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2)		SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3)		AT DEC. 31, 2020		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	$	252,807	$	—	$	252,807	$	—	$	86,001	$	—	$	86,001	$	—
FTRs	9,338		—		—		9,338		4,805		—		—		4,805
Natural gas derivatives*	132,892		—		132,892		—		8,599		—		8,599		—
Total assets	$	395,037	$	—	$	385,699	$	9,338	$	99,405	$	—	$	94,600	$	4,805
Liability description
FTRs	$	1,589	$	—	$	—	$	1,589	$	1,625	$	—	$	—	$	1,625
Natural gas derivatives*	—		—		—		—		1,612		—		1,612		—
Total liabilities	$	1,589	$	—	$	—	$	1,589	$	3,237	$	—	$	1,612	$	1,625

* Natural gas derivatives include fixed price physical forwards and swap transactions.

Cleco Power
	FAIR VALUE MEASUREMENTS AT REPORTING DATE
(THOUSANDS)	AT SEPT. 30, 2021		QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1)		SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2)		SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3)		AT DEC. 31, 2020		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	$	135,763	$	—	$	135,763	$	—	$	25,357	$	—	$	25,357	$	—
FTRs	6,028		—		—		6,028		4,337		—		—		4,337
Total assets	$	141,791	$	—	$	135,763	$	6,028	$	29,694	$	—	$	25,357	$	4,337
Liability description
FTRs	$	1,330	$	—	$	—	$	1,330	$	1,121	$	—	$	—	$	1,121
Total liabilities	$	1,330	$	—	$	—	$	1,330	$	1,121	$	—	$	—	$	1,121

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:

Cleco
	FOR THE THREE MONTHS ENDED SEPT. 30,				FOR THE NINE MONTHS ENDED SEPT. 30,
(THOUSANDS)	2021		2020		2021		2020
Beginning balance	$	7,501	$	8,040	$	3,180	$	5,778
Unrealized gains (losses)*	3,955		4		18,861		(736)
Purchases	619		443		11,426		10,175
Settlements	(4,326)		(3,160)		(25,718)		(9,890)
Ending balance	$	7,749	$	5,327	$	7,749	$	5,327
* Cleco Power’s unrealized gains (losses) are reported through Accumulated deferred fuel on Cleco’s Condensed Consolidated Balance Sheet. Cleco Cajun’s unrealized gains (losses) 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)	2021		2020		2021		2020
Beginning balance	$	5,990	$	7,511	$	3,216	$	5,725
Unrealized gains*	1,196		426		545		1,355
Purchases	619		443		9,236		8,219
Settlements	(3,107)		(2,968)		(8,299)		(9,887)
Ending balance	$	4,698	$	5,412	$	4,698	$	5,412
* Unrealized gains are reported through Accumulated deferred fuel on Cleco Power’s Condensed Consolidated Balance Sheet.

Cleco Power and Cleco Cajun’s FTRs are valued 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 value available

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CLECO
CLECO POWER	2021 3RD QUARTER FORM 10-Q

comes from MISO auctions, which occur monthly in the Multi-Period Monthly Auction.

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, 2021, and December 31, 2020:

Cleco
	FAIR VALUE				VALUATION TECHNIQUE	SIGNIFICANT UNOBSERVABLE INPUTS	FORWARD PRICE RANGE
(THOUSANDS, EXCEPT FORWARD PRICE RANGE)	ASSETS		LIABILITIES				LOW		HIGH
FTRs at Sept. 30, 2021	$	9,338	$	1,589	RTO auction pricing	FTR price - per MWh	$	(8.18)	$	9.16
FTRs at Dec. 31, 2020	$	4,805	$	1,625	RTO auction pricing	FTR price - per MWh	$	(3.49)	$	4.36

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, 2021	$	6,028	$	1,330	RTO auction pricing	FTR price - per MWh	$	(3.26)	$	9.16
FTRs at Dec. 31, 2020	$	4,337	$	1,121	RTO auction pricing	FTR price - per MWh	$	(3.34)	$	4.36

As a result of the 2016 Merger, fair value adjustments were recorded on Cleco’s Condensed Consolidated Balance Sheet for the valuation of a finite intangible asset relating to the Cleco Power trade name. In August 2021, a wholesale customer that is currently under contract with Cleco Power through March 31, 2024, informed Cleco Power that it was not selected through its RFP process as a provider of load after the first quarter of 2024. Cleco considered this to be a triggering event and determined that the carrying value of the trade name intangible asset may not be recoverable. Therefore, a valuation of the Cleco Power trade name was conducted to test for impairment. A discounted cash flow model utilizing an estimated weighted average cost of capital of 8% was used to determine the fair value of the Cleco Power trade name. As a result, Cleco determined that the fair value of the Cleco Power trade name was less than its carrying value and an impairment of $3.8 million was recognized reducing the carrying value to zero. The fair value measurement of the intangible asset is classified as Level 3 in the fair value hierarchy. For more information on the Cleco Power trade name intangible asset, see Note 15 — “Intangible Assets and Liabilities.”

Concentrations of Credit Risk

At September 30, 2021, 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, 2021, and December 31, 2020:

Cleco
(THOUSANDS)	AT SEPT. 30, 2021		AT DEC. 31, 2020
Cash and cash equivalents	$	249,711	$	80,712
Current restricted cash and cash equivalents	$	2,352	$	4,545
Non-current restricted cash and cash equivalents	$	744	$	744

Cleco Power
(THOUSANDS)	AT SEPT. 30, 2021		AT DEC. 31, 2020
Cash and cash equivalents	$	133,411	$	20,812
Current restricted cash and cash equivalents	$	2,352	$	4,545

Institutional money market fund assets are discounted to the current period using a published U.S. Treasury interest rate as a proxy for a risk-free rate of return. 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.

Cleco may be required to provide credit support or pay liquidated damages with respect to any open trading contracts that Cleco has entered into or may enter into in the future. 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.

Commodity Contracts

On Cleco’s Condensed Consolidated Balance Sheets, the fair value of amounts associated with Cleco Cajun’s derivative instruments are offset with related cash collateral balances with the same counterparty. There were no offsetting amounts at December 31, 2020. 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, 2021, and December 31, 2020:

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CLECO POWER	2021 3RD QUARTER FORM 10-Q

Cleco
	DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS
		AT SEPT. 30, 2021												AT DEC. 31, 2020
				GROSS AMOUNTS OFFSET ON THE BALANCE SHEET						GROSS AMOUNTS NOT OFFSET ON THE BALANCE SHEET (1)
(THOUSANDS)	BALANCE SHEET LINE ITEM	GROSS ASSET (LIABILITY)		CONTRACT NETTING		COLLATERAL		NET ASSET (LIABILITY) ON THE BALANCE SHEET		COLLATERAL		NET AMOUNT		NET ASSET (LIABILITY) ON THE BALANCE SHEET (2)
Commodity-related contracts
FTRs
Current	Energy risk management assets	$	9,338	$	—	$	—	$	9,338	$	—	$	9,338	$	4,805
Current	Energy risk management liabilities	(1,589)		—		—		(1,589)		—		(1,589)		(1,625)
Natural gas derivatives
Current	Energy risk management assets	59,648		(1,283)		(8,900)		49,465		(41,098)		8,367		8,276
Non-current	Energy risk management assets	83,427		—		—		83,427		(13,902)		69,525		323
Current	Energy risk management liabilities	(1,283)		1,283		—		—		—		—		(828)
Non-current	Other deferred credits	—		—		—		—		—		—		(784)
Commodity-related contracts, net		$	149,541	$	—	$	(8,900)	$	140,641	$	(55,000)	$	85,641	$	10,167

(1) Represents letters of credit by counterparties.

(2) There were no offsetting amounts on or off Cleco’s Condensed Consolidated Balance Sheet at December 31, 2020.

Cleco Power
	DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS
(THOUSANDS)	BALANCE SHEET LINE ITEM	AT SEPT. 30, 2021		AT DEC. 31, 2020
Commodity-related contracts
FTRs
Current	Energy risk management assets	$	6,028	$	4,337
Current	Energy risk management liabilities	(1,330)		(1,121)
Commodity-related contracts, net		$	4,698	$	3,216

At September 30, 2021, cash collateral received from counterparties by Cleco was $8.9 million, all of which was netted against the current portion of Energy risk management assets on Cleco’s Condensed Consolidated Balance Sheet. At December 31, 2020, there was no cash collateral paid or received by Cleco.

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, 2021, and 2020:

Cleco
	AMOUNT OF GAIN(LOSS) ON DERIVATIVES RECOGNIZED IN INCOME
		FOR THE THREE MONTHS ENDED SEPT. 30,				FOR THE NINE MONTHS ENDED SEPT. 30,
(THOUSANDS)	INCOME STATEMENT LINE ITEM	2021		2020		2021		2020
Commodity-related contracts
FTRs(1)	Electric operations	$	1,959	$	3,013	$	11,167	$	6,262
FTRs(1)	Purchased power	(874)		(763)		(8,730)		(1,053)
Natural gas derivatives	Fuel used for electric generation	107,687		20,307		165,584		22,515
Total		$	108,772	$	22,557	$	168,021	$	27,724

(1) For the three and nine months ended September 30, 2021, unrealized gains associated with FTRs for Cleco Power of $1.2 million and $0.5 million, respectively, were reported through Accumulated deferred fuel on the balance sheet. 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.

Cleco Power
	AMOUNT OF GAIN(LOSS) ON DERIVATIVES RECOGNIZED IN INCOME
		FOR THE THREE MONTHS ENDED SEPT. 30,				FOR THE NINE MONTHS ENDED SEPT. 30,
(THOUSANDS)	INCOME STATEMENT LINE ITEM	2021		2020		2021		2020
Commodity-related contracts
FTRs(1)	Electric operations	$	1,959	$	3,013	$	11,167	$	6,262
FTRs(1)	Purchased power	(822)		(2,326)		(9,236)		(4,397)
Total		$	1,137	$	687	$	1,931	$	1,865

(1) For the three and nine months ended September 30, 2021, unrealized gains associated with FTRs of $1.2 million and $0.5 million, respectively, were reported through Accumulated deferred fuel on the balance sheet. 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.

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CLECO POWER	2021 3RD QUARTER FORM 10-Q

The following table presents the volume of commodity-related derivative contracts outstanding at September 30, 2021, and December 31, 2020, for Cleco and Cleco Power:

Cleco
		TOTAL VOLUME OUTSTANDING
(THOUSAND)	UNIT OF MEASURE	AT SEPT. 30, 2021	AT DEC. 31, 2020
Commodity-related contracts
FTRs	MWh	22,794	15,269
Natural gas derivatives	MMBtus	118,712	73,000

Cleco Power
		TOTAL VOLUME OUTSTANDING
(THOUSAND)	UNIT OF MEASURE	AT SEPT. 30, 2021	AT DEC. 31, 2020
Commodity-related contracts
FTRs	MWh	14,596	9,521

Note 7 — Debt

On May 21, 2021, Cleco Holdings entered into a $175.0 million revolving credit agreement and a $266.0 million term loan agreement. These agreements replaced Cleco Holdings’ existing revolving credit agreement and term loan agreement. The revolving credit agreement matures on May 21, 2026. Under this agreement, Cleco Holdings is required to maintain total indebtedness less than or equal to 65% of total capitalization. The borrowing costs under this agreement are currently equal to LIBOR plus 1.625% or ABR plus 0.625%, plus commitment fees of 0.275%. If Cleco Holdings’ credit ratings were to be downgraded one level by the credit rating agencies, Cleco Holdings may be required to pay incremental interest and commitment fees of 0.125% and 0.05%, respectively. At September 30, 2021, Cleco Holdings had no borrowings outstanding under its revolving credit agreement. Cleco Holdings’ term loan agreement matures on May 21, 2024 and has an interest rate of LIBOR plus 1.625% or ABR plus 0.625%.

In addition, on May 21, 2021, Cleco Power entered into a $300.0 million revolving credit agreement and a $125.0 million term loan agreement. These agreements replaced Cleco Power’s existing revolving credit agreement and term loan agreement. The revolving credit agreement matures on May 21, 2026. Under this agreement, Cleco Power is required to maintain total indebtedness less than or equal to 65% of total capitalization. The borrowing costs under this agreement are currently equal to LIBOR plus 1.25% or ABR plus 0.25%, plus commitment fees of 0.15%. If Cleco Power’s credit ratings were to be downgraded one level by the credit rating

agencies, Cleco Power may be required to pay incremental interest and commitment fees of 0.125% and 0.025%, respectively. At September 30, 2021, Cleco Power had no borrowings outstanding under the revolving credit agreement. Cleco Power’s term loan agreement matures on May 21, 2024 and has an interest rate of LIBOR plus 1.25% or ABR plus 0.25%.

On September 10, 2021, Cleco Power completed the issuance and private sale of $325.0 million aggregate principal amount of its floating rate senior notes due 2023. The senior notes include an optional redemption, in whole or in part, at any time on or after March 15, 2022, at 100% of the principal amount of the senior notes. The senior notes bear interest at a rate of three-month LIBOR plus 50 basis points per annum and reset quarterly. The net proceeds from the issuance were used for general limited liability company purposes, including the repayment of borrowings under Cleco Power’s revolving credit agreement. The senior notes are governed by an indenture entered into between Cleco Power and a trustee. The indenture contains certain customary covenants that restrict Cleco Power’s ability to merge, consolidate or transfer or lease all or substantially all of its assets or create or incur certain liens securing indebtedness.

Note 8 — Pension Plan and Employee Benefits

Pension Plan and Other Benefits Plan

Employees hired before August 1, 2007, are covered by a non-contributory, defined benefit pension plan. Based on the funding assumptions at December 31, 2020, and the funding relief provided by the American Rescue Plan Act, which was signed by the President on March 11, 2021, management estimates that no pension contributions will be required through 2025. Cleco has not made, and does not expect to make, any contributions to the pension plan in 2021.

Cleco Power is the plan sponsor and Support Group is the plan administrator. Benefits under the plan reflect an employee’s years of service, age at retirement, and accrued benefit at retirement.

Cleco’s retirees may be eligible to receive Other Benefits. Dependents of Cleco’s retirees may also be eligible to receive Other Benefits with the exception of life insurance benefits.

The non-service components of net periodic pension and Other Benefits cost are included in Other income (expense), net within Cleco and Cleco Power’s Condensed Consolidated Statements of Income. The components of net periodic pension and Other Benefits cost for the three and nine months ended September 30, 2021, and 2020 were as follows:

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CLECO
CLECO POWER	2021 3RD QUARTER FORM 10-Q

	PENSION BENEFITS				OTHER BENEFITS
	FOR THE THREE MONTHS ENDED SEPT. 30,				FOR THE THREE MONTHS ENDED SEPT. 30,
(THOUSANDS)	2021		2020		2021		2020
Components of periodic benefit costs
Service cost	$	2,629	$	2,455	$	629	$	600
Interest cost	4,667		5,204		317		418
Expected return on plan assets	(5,700)		(6,244)		—		—
Amortizations
Prior period service credit	—		(15)		—		—
Net loss	5,184		4,073		373		362
Net periodic benefit cost	6,780		5,473		1,319		1,380
Special/contractual termination benefits	3,270		—		—		—
Total benefit cost	$	10,050	$	5,473	$	1,319	$	1,380

	PENSION BENEFITS				OTHER BENEFITS
	FOR THE NINE MONTHS ENDED SEPT. 30,				FOR THE NINE MONTHS ENDED SEPT. 30,
(THOUSANDS)	2021		2020		2021		2020
Components of periodic benefit costs
Service cost	$	7,887	$	7,365	$	1,819	$	1,615
Interest cost	14,001		15,612		962		1,238
Expected return on plan assets	(17,101)		(18,731)		—		—
Amortizations
Prior period service credit	—		(45)		—		—
Net loss	15,553		12,222		1,143		1,042
Net periodic benefit cost	20,340		16,423		3,924		3,895
Special/contractual termination benefits	3,270		—		—		—
Total benefit cost	$	23,610	$	16,423	$	3,924	$	3,895

Effective September 30, 2021, the pension plan was amended to offer an enhanced pension benefit to certain employees participating in the plan that elect to retire during a certain retirement window. Those certain employees who elected by September 30, 2021, to receive the enhanced pension benefits will receive a 10% increase in calculated pension benefits. This resulted in a special termination benefit cost for Cleco Power and Support Group of $2.4 million and $0.9 million, respectively, included as an expense of the pension plan.

Because Cleco Power is the pension plan sponsor and the related trust holds the assets, the net unfunded status of the pension plan is reflected at Cleco Power. The liability of Cleco’s other subsidiaries is transferred with a like amount of assets to Cleco Power monthly. The expense of the pension plan related to Cleco’s other subsidiaries for the three and nine months ended September 30, 2021, was $1.8 million and $3.6 million, respectively. The expense of the pension plan related to Cleco’s other subsidiaries for the three and nine months ended September 30, 2020, was $0.9 million and $2.6 million, respectively.

Cleco Holdings is the plan sponsor for the other benefit plans. There are no assets set aside in a trust, and the liabilities are reported on the individual subsidiaries’ financial statements. The expense related to other benefits reflected in Cleco Power’s Condensed Consolidated Statements of Income for the three and nine months ended September 30, 2021, was $1.2 million and $3.6 million, respectively. The expense related to other benefits reflected in Cleco Power’s Condensed Consolidated Statements of Income for the three and nine months ended September 30, 2020, was $1.1 million and $3.6 million, respectively. The current and non-current portions of

the Other Benefits liability for Cleco and Cleco Power at September 30, 2021, and December 31, 2020, were as follows:

Cleco
(THOUSANDS)	AT SEPT. 30, 2021		AT DEC. 31, 2020
Current	$	4,463	$	4,463
Non-current	$	51,306	$	51,868

Cleco Power
(THOUSANDS)	AT SEPT. 30, 2021		AT DEC. 31, 2020
Current	$	3,865	$	3,865
Non-current	$	40,261	$	40,734

SERP

Certain Cleco officers are covered by SERP. Cleco does not fund the SERP liability, but instead pays for current benefits out of general funds available. Cleco Power has formed a rabbi trust. The life insurance policies issued on SERP participants designate the rabbi trust as the beneficiary. Market conditions could have a significant impact on the cash surrender value of the life insurance policies. Proceeds from the life insurance policies are expected to be used to pay the SERP participants’ death benefits, as well as future SERP payments. However, because SERP is a non-qualified plan, the assets of the trust could be used to satisfy general creditors of Cleco Power in the event of insolvency. All SERP benefits are paid out of general cash available of the respective companies that employed the officer. Cleco Power is the plan sponsor and Support Group is the plan administrator.

The non-service components of net periodic benefit cost related to SERP are included in Other income (expense), net within Cleco and Cleco Power’s Condensed Consolidated

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CLECO POWER	2021 3RD QUARTER FORM 10-Q

Statements of Income. The components of the net periodic benefit cost related to SERP for the three and nine months ended September 30, 2021, and 2020 were as follows:

	FOR THE THREE MONTHS ENDED SEPT. 30,				FOR THE NINE MONTHS ENDED SEPT. 30,
(THOUSANDS)	2021		2020		2021		2020
Components of periodic benefit costs
Service cost	$	59	$	100	$	174	$	300
Interest cost	634		733		1,903		2,199
Amortizations
Prior period service credit	(54)		(54)		(161)		(161)
Net loss	307		796		921		2,388
Net periodic benefit cost	$	946	$	1,575	$	2,837	$	4,726

The expense related to SERP reflected on Cleco Power’s Condensed Consolidated Statements of Income for the three and nine months ended September 30, 2021, was $0.1 million and $0.4 million, respectively. The expense related to SERP reflected on Cleco Power’s Condensed Consolidated Statements of Income for the three and nine months ended September 30, 2020, was $0.2 million and $0.7 million, respectively.

Liabilities relating to SERP are reported on the individual subsidiaries’ financial statements. The current and non-current portions of the SERP liability for Cleco and Cleco Power at September 30, 2021, and December 31, 2020, were as follows:

Cleco
(THOUSANDS)	AT SEPT. 30, 2021		AT DEC. 31, 2020
Current	$	4,703	$	4,703
Non-current	$	90,880	$	92,522

Cleco Power
(THOUSANDS)	AT SEPT. 30, 2021		AT DEC. 31, 2020
Current	$	711	$	711
Non-current	$	19,240	$	19,828

401(k) Plan

Cleco’s 401(k) Plan is intended to provide active, eligible employees with voluntary, long-term savings and investment opportunities. The 401(k) Plan is a defined contribution plan and is subject to the applicable provisions of the Employee Retirement Income Security Act of 1974. In accordance with the 401(k) Plan, employer contributions are made in the form of cash. Cash contributions are invested in proportion to the participant’s voluntary contribution investment choices. Participation in the Plan is voluntary, and active Cleco employees are eligible to participate. Cleco’s 401(k) Plan expense for the three and nine months ended September 30, 2021, and 2020 was as follows:

	FOR THE THREE MONTHS ENDED SEPT. 30,				FOR THE NINE MONTHS ENDED SEPT. 30,
(THOUSANDS)	2021		2020		2021		2020
401(k) Plan expense	$	2,512	$	2,356	$	7,391	$	7,509

Cleco Power is the plan sponsor for the 401(k) Plan. The expense of the 401(k) Plan related to Cleco’s other

subsidiaries for the three and nine months ended September 30, 2021, and 2020 was as follows:

	FOR THE THREE MONTHS ENDED SEPT. 30,				FOR THE NINE MONTHS ENDED SEPT. 30,
(THOUSANDS)	2021		2020		2021		2020
401(k) Plan expense	$	1,185	$	996	$	3,511	$	3,491

Effective September 30, 2021, the 401(k) plan was amended to offer an enhanced 401(k) benefit to certain employees participating in the plan that elect to retire during a certain retirement window. Those certain employees who elected by September 30, 2021, to receive the enhanced 401(k) benefits will receive a one-time contribution up to 30% of the employee’s 2021 base salary in accordance with IRS contribution limits. This resulted in a one-time benefit cost of $0.2 million included as an expense of the 401(k) plan.

Note 9 — Income Taxes

Effective Tax Rates

The following tables summarize the effective income tax rates for Cleco and Cleco Power for the three and nine months ended September 30, 2021, and 2020:

Cleco
	FOR THE THREE MONTHS ENDED SEPT. 30,				FOR THE NINE MONTHS ENDED SEPT. 30,
	2021		2020		2021		2020
Effective tax rate	20.3	%	29.4	%	12.4	%	26.8	%

Cleco Power
	FOR THE THREE MONTHS ENDED SEPT. 30,				FOR THE NINE MONTHS ENDED SEPT. 30,
	2021		2020		2021		2020
Effective tax rate	1.0	%	33.4	%	(0.2)	%	28.8	%

For Cleco, the effective income tax rate for the three and nine months ended September 30, 2021, and 2020, were different than the federal statutory rate primarily due to the flow through of tax benefits, including AFUDC; the amortization of excess ADIT; adjustment to record tax expense at the projected annual effective tax rate; adjustments for tax returns as filed; and state tax expense.

For Cleco Power, the effective income tax rate for the three and nine months ended September 30, 2021, and 2020, were different than the federal statutory rate primarily due to the flow through of tax benefits, including AFUDC equity; amortization of excess ADIT; adjustment to record tax expense at the projected annual effective tax rate; adjustments for tax returns as filed; and state tax expense.

Uncertain Tax Positions

Cleco classifies all interest related to uncertain tax positions as a component of interest payable and interest expense. At September 30, 2021, and December 31, 2020, Cleco and Cleco Power had no liability for uncertain tax positions or interest payable related to uncertain tax positions. Cleco estimates that it is reasonably possible that the balance of unrecognized tax benefits as of September 30, 2021, for Cleco and Cleco Power would be unchanged in the next 12 months. The settlement of open tax years could involve the payment of

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additional taxes, and/or the recognition of tax benefits, which may have an effect on Cleco’s effective tax rate.

Income Tax Audits

Cleco participates in the IRS’s Compliance Assurance Process in which tax positions are examined and agreed upon prior to filing the federal tax return. While the statute of limitations remains open for tax years 2018, 2019, and 2020, the IRS has completed its review of years 2018 through 2020, and these tax returns were filed consistent with the IRS’s review. The IRS has placed Cleco in the Bridge phase of the Compliance Assurance Process for the 2020 and 2021 tax years. In this phase, the IRS will not accept any disclosures, conduct any reviews, or provide any assurances. The IRS has accepted Cleco’s application for the Compliance Assurance Process for the 2022 tax year.

The state income tax years 2018, 2019, and 2020 remain open to examination by the Louisiana Department of Revenue.

Cleco classifies income tax penalties as a component of other expense. For the three and nine months ended September 30, 2021, and 2020, no penalties were recognized.

CARES Act

In March 2020, the CARES Act was signed into law. The CARES Act includes tax relief provisions such as an alternative minimum tax credit refund, a five-year net operating loss carryback from years 2018 through 2020, and deferred payments of employer payroll taxes.

Cleco deferred $6.0 million in employer payroll tax payments for the period March 27, 2020, through December 31, 2020. Cleco will pay $3.0 million of the obligation by December 31, 2021, and the remaining $3.0 million by December 31, 2022.

Cleco Power deferred $3.6 million in employer payroll tax payments for the period March 27, 2020, through December 31, 2020. Cleco Power will pay $1.8 million of the obligation by December 31, 2021, and the remaining $1.8 million by December 31, 2022.

The CARES Act also includes modifications on the limitations of business interest for the 2019 and 2020 tax years. The modifications increase the allowable business interest deduction from 30% to 50% of adjusted taxable income. Cleco does not have any disallowed interest for the 2020 tax year.

Consolidated Appropriations Act of 2021

In December 2020, the Consolidated Appropriations Act of 2021 (CAA) was signed into law. The CAA includes COVID-19 tax relief and tax extender provisions. These include extensions of time to begin construction on certain solar assets eligible for the Investment Tax Credit (ITC), 100% deductibility of business meals in 2021 and 2022, and an extension of the work opportunity tax credit. The ITC percentage has been increased for projects starting construction through 2023 and placed in service by the end of 2025. Management does not expect the CAA to have a material impact on the Registrants.

Future Tax Reform

Cleco is monitoring the President’s current tax reform proposals, as well as the current proposed infrastructure bill. The proposals have the potential to increase the federal statutory corporate income tax rate from the current rate of 21%. Currently, management is unable to predict the impact of the proposals on the Registrants.

Cleco is also monitoring possible updates related to a decreased Louisiana state corporate income tax rate proposal and a Louisiana state sales tax proposal to be voted on in November 2021.

Note 10 — 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, who is Cleco’s chief operating decision maker, with discrete financial information and, at least quarterly, present discrete financial information to Cleco Holdings’ and, in the case of Cleco Power, Cleco Power’s Boards of Managers. The reportable segment prepares budgets that are presented to and approved by Cleco Holdings’ and, in the case of Cleco Power, 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. There were no changes to Cleco’s existing reportable segments.

The financial results in the following tables are presented on an accrual basis. EBITDA is a key non-GAAP financial measure used by the CEO to assess the operating performance of Cleco’s segments. Management evaluates the performance of Cleco’s segments and allocates resources to them based on segment profit and the requirements to implement strategic initiatives and projects to meet current business objectives. EBITDA is defined as net income adjusted for interest, income taxes, depreciation, and amortization. Depreciation and amortization in the following tables includes amortization of intangible assets and liabilities recorded for the fair value adjustment of wholesale power supply agreements as a result of the 2016 Merger and the Cleco Cajun Transaction, as well as amortization of deferred lease revenue resulting from the Cleco Cajun Transaction. 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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Segment Information for the Three Months Ended Sept. 30,
2021 (THOUSANDS)	CLECO POWER		CLECO CAJUN			TOTAL SEGMENTS
Revenue
Electric operations	$	357,084	$	107,500		$	464,584
Other operations	22,779		35,158			57,937
Affiliate revenue	1,380		—			1,380
Electric customer credits	(691)		—			(691)
Operating revenue, net	$	380,552	$	142,658		$	523,210
Net income	$	56,561	$	86,744		$	143,305
Add: Depreciation and amortization	43,526		12,623		(1)	56,149
Less: Interest income	936		4			940
Add: Interest charges	18,509		1,117			19,626
Add: Federal and state income tax expense	548		29,888			30,436
EBITDA	$	118,208	$	130,368		$	248,576
(1) Includes $3.6 million of amortization of intangible assets and liabilities related to wholesale power supply agreements and $(2.3) million of deferred lease revenue amortization as a result of the Cleco Cajun Transaction.

2021 (THOUSANDS)	TOTAL SEGMENTS		OTHER			ELIMINATIONS		TOTAL
Revenue
Electric operations	$	464,584	$	(2,420)		$	—	$	462,164
Other operations	57,937		1			(2,217)		55,721
Affiliate revenue	1,380		32,116			(33,496)		—
Electric customer credits	(691)		—			—		(691)
Operating revenue, net	$	523,210	$	29,697		$	(35,713)	$	517,194
Depreciation and amortization	$	56,149	$	8,189	(1)	$	—	$	64,338
Interest income	$	940	$	43		$	(42)	$	941
Interest charges	$	19,626	$	15,044		$	(41)	$	34,629
Federal and state income tax expense	$	30,436	$	133		$	—	$	30,569
Net income (loss)	$	143,305	$	(23,396)		$	1	$	119,910
(1) Includes $2.4 million of amortization of intangible assets related to Cleco Power’s wholesale power supply agreements as a result of the 2016 Merger.

2020 (THOUSANDS)	CLECO POWER		CLECO CAJUN			TOTAL SEGMENTS
Revenue
Electric operations	$	288,852	$	99,956		$	388,808
Other operations	17,775		31,331			49,106
Affiliate revenue	1,506		—			1,506
Electric customer credits	(16,534)		—			(16,534)
Operating revenue, net	$	291,599	$	131,287		$	422,886
Net income	$	36,092	$	38,357		$	74,449
Add: Depreciation and amortization	40,268		11,344		(1)	51,612
Less: Interest income	789		10			799
Add: Interest charges	18,441		(484)			17,957
Add: Federal and state income tax expense	18,076		12,258			30,334
EBITDA	$	112,088	$	61,465		$	173,553
(1) Includes $3.1 million of amortization of intangible assets and liabilities related to wholesale power supply agreements and $(2.3) million of deferred lease revenue amortization as a result of the Cleco Cajun Transaction.

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2020 (THOUSANDS)	TOTAL SEGMENTS		OTHER			ELIMINATIONS		TOTAL
Revenue
Electric operations	$	388,808	$	(2,420)		$	—	$	386,388
Other operations	49,106		1			(1,510)		47,597
Affiliate revenue	1,506		35,522			(37,028)		—
Electric customer credits	(16,534)		—			—		(16,534)
Operating revenue, net	$	422,886	$	33,103		$	(38,538)	$	417,451
Depreciation and amortization	$	51,612	$	4,497	(1)	$	—	$	56,109
Interest income	$	799	$	121		$	(10)	$	910
Interest charges	$	17,957	$	16,115		$	(12)	$	34,060
Federal and state income tax expense (benefit)	$	30,334	$	(5,260)		$	1	$	25,075
Net income (loss)	$	74,449	$	(14,154)		$	2	$	60,297
(1) Includes $2.4 million of amortization of intangible assets related to Cleco Power’s wholesale power supply agreements as a result of the 2016 Merger.

Segment Information for the Nine Months Ended Sept. 30,
2021 (THOUSANDS)	CLECO POWER		CLECO CAJUN			TOTAL SEGMENTS
Revenue
Electric operations	$	887,191	$	300,415		$	1,187,606
Other operations	57,674		98,851			156,525
Affiliate revenue	4,259		—			4,259
Electric customer credits	(40,429)		244			(40,185)
Operating revenue, net	$	908,695	$	399,510		$	1,308,205
Net income	$	102,407	$	153,719		$	256,126
Add: Depreciation and amortization	126,534		36,614		(2)	163,148
Less: Interest income	2,404		10			2,414
Add: Interest charges	55,392		786			56,178
Add: Federal and state income tax (benefit) expense	(219)		52,561			52,342
EBITDA	$	281,710	$	243,670		$	525,380
Additions to property, plant, and equipment	$	202,940	$	5,904		$	208,844
Equity investment in investees (1)	$	3,822	$	—		$	3,822
Goodwill (1)	$	1,490,797	$	—		$	1,490,797
Total segment assets (1)	$	6,746,838	$	1,212,968		$	7,959,806
(1) Balances as of September 30, 2021. (2) Includes $10.0 million of amortization of intangible assets and liabilities related to wholesale power supply agreements and $(6.9) million of deferred lease revenue amortization as a result of the Cleco Cajun Transaction.

2021 (THOUSANDS)	TOTAL SEGMENTS		OTHER			ELIMINATIONS		TOTAL
Revenue
Electric operations	$	1,187,606	$	(7,260)		$	(1)	$	1,180,345
Other operations	156,525		4			(5,752)		150,777
Affiliate revenue	4,259		85,392			(89,651)		—
Electric customer credits	(40,185)		—			—		(40,185)
Operating revenue, net	$	1,308,205	$	78,136		$	(95,404)	$	1,290,937
Depreciation and amortization	$	163,148	$	17,052	(2)	$	(1)	$	180,199
Interest income	$	2,414	$	100		$	(98)	$	2,416
Interest charges	$	56,178	$	45,732		$	(98)	$	101,812
Federal and state income tax expense (benefit)	$	52,342	$	(21,357)		$	—	$	30,985
Net income (loss)	$	256,126	$	(37,068)		$	1	$	219,059
Additions to property, plant, and equipment	$	208,844	$	1,116		$	—	$	209,960
Equity investment in investees (1)	$	3,822	$	19,099		$	(19,099)	$	3,822
Goodwill (1)	$	1,490,797	$	—		$	—	$	1,490,797
Total segment assets (1)	$	7,959,806	$	685,410		$	(249,409)	$	8,395,807
(1) Balances as of September 30, 2021. (2) Includes $7.3 million of amortization of intangible assets related to Cleco Power’s wholesale power supply agreements as a result of the 2016 Merger.

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2020 (THOUSANDS)	CLECO POWER		CLECO CAJUN			TOTAL SEGMENTS
Revenue
Electric operations	$	752,925	$	273,836		$	1,026,761
Other operations	49,443		92,928			142,371
Affiliate revenue	3,852		204			4,056
Electric customer credits	(33,974)		(153)			(34,127)
Operating revenue, net	$	772,246	$	366,815		$	1,139,061
Net income	$	76,156	$	84,655		$	160,811
Add: Depreciation and amortization	125,541		33,385		(2)	158,926
Less: Interest income	2,498		269			2,767
Add: Interest charges	55,624		(353)			55,271
Add: Federal and state income tax expense	30,770		27,280			58,050
EBITDA	$	285,593	$	144,698		$	430,291
Additions to property, plant, and equipment	$	205,765	$	7,908		$	213,673
Equity investment in investees (1)	$	9,072	$	—		$	9,072
Goodwill (1)	$	1,490,797	$	—		$	1,490,797
Total segment assets (1)	$	6,256,944	$	1,029,812		$	7,286,756
(1) Balances as of December 31, 2020. (2) Includes $9.3 million of amortization of intangible assets and liabilities related to wholesale power supply agreements and $(6.9) million deferred lease revenue amortization as a result of the Cleco Cajun Transaction.

2020 (THOUSANDS)	TOTAL SEGMENTS		OTHER			ELIMINATIONS		TOTAL
Revenue
Electric operations	$	1,026,761	$	(7,260)		$	—	$	1,019,501
Other operations	142,371		2			(4,966)		137,407
Affiliate revenue	4,056		93,938			(97,994)		—
Electric customer credits	(34,127)		—			1		(34,126)
Operating revenue, net	$	1,139,061	$	86,680		$	(102,959)	$	1,122,782
Depreciation and amortization	$	158,926	$	13,575	(2)	$	1	$	172,502
Interest income	$	2,767	$	276		$	(79)	$	2,964
Interest charges	$	55,271	$	48,731		$	(79)	$	103,923
Federal and state income tax expense (benefit)	$	58,050	$	(17,821)		$	1	$	40,230
Net income (loss)	$	160,811	$	(51,019)		$	1	$	109,793
Additions to property, plant, and equipment	$	213,673	$	2,019		$	—	$	215,692
Equity investment in investees (1)	$	9,072	$	—		$	—	$	9,072
Goodwill (1)	$	1,490,797	$	—		$	—	$	1,490,797
Total segment assets (1)	$	7,286,756	$	595,217		$	(156,404)	$	7,725,569
(1) Balances as of December 31, 2020. (2) Includes $7.3 million of amortization of intangible assets related to Cleco Power’s wholesale power supply agreements as a result of the 2016 Merger.

	FOR THE THREE MONTHS ENDED SEPT. 30,				FOR THE NINE MONTHS ENDED SEPT. 30,
(THOUSANDS)	2021		2020		2021		2020
Net income	$	119,910	$	60,297	$	219,059	$	109,793
Add: Depreciation and amortization	64,338		56,109		180,199		172,502
Less: Interest income	941		910		2,416		2,964
Add: Interest charges	34,629		34,060		101,812		103,923
Add: Federal and state income tax expense	30,569		25,075		30,985		40,230
Add: Other corporate costs and noncash items (1)	71		(1,078)		(4,259)		6,807
Total segment EBITDA	$	248,576	$	173,553	$	525,380	$	430,291
(1) Adjustments made for Other and Elimination totals not allocated to total segment EBITDA.

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Note 11 — Regulation and Rates

Provision for rate refund on Cleco and Cleco Power’s Condensed Consolidated Balance Sheets consisted primarily of the following:

(THOUSANDS)	AT SEPT. 30, 2021		AT DEC. 31, 2020
Cleco Katrina/Rita storm recovery charges	$	1,610	$	1,617
FERC audit	$	—	$	1,912
FRP	$	1,236	$	1,786
Site-specific industrial customer	$	611	$	710
TCJA	$	2,057	$	2,057
Transmission ROE	$	—	$	595

Cleco Katrina/Rita Storm Recovery Charges

Prior to the repayment of the Cleco Katrina/Rita storm recovery bonds in March 2020, Cleco Katrina/Rita had the right to bill and collect storm restoration costs from Cleco Power’s customers to pay administrative fees, interest, and principal on the Cleco Katrina/Rita storm recovery bonds. In April 2021, after payments for all final administrative and winding up activities of Cleco Katrina/Rita were made, Cleco Katrina/Rita transferred its remaining restricted cash to Cleco Power. As a result, at September 30, 2021, Cleco Power had $1.6 million accrued for amounts to be used to benefit retail customers in a manner and timing as approved by the LPSC. For more information on Cleco Katrina/Rita’s storm recovery, see Note 1 — “Summary of Significant Accounting Policies — Restricted Cash and Cash Equivalents.”

FERC Audit

As of September 30, 2021, $4.4 million, including accrued interest, was fully refunded to Cleco Power’s wholesale transmission customers as a combination of refund payments related to the FERC audit findings and a reduction in Attachment O of the MISO tariff and grandfathered agreement rates over the preceding 12 months. For more information about the FERC audit, see Note 13 — “Litigation, Other Commitments and Contingencies, and Disclosures about Guarantees — Litigation — FERC Audit.”

FRP

Prior to July 1, 2021, Cleco Power’s annual retail earnings were subject to an FRP established by the LPSC in June 2014. The 2014 FRP allowed Cleco Power to earn a target ROE of 10.0%, while providing the opportunity to earn up to 10.9%. Additionally, 60.0% of retail earnings between 10.9% and 11.75%, and all retail earnings over 11.75%, were required to be refunded to customers. In June 2019, Cleco Power filed an application with the LPSC for a new FRP. On June 16, 2021, the LPSC approved Cleco Power’s new retail rate plan. Effective July 1, 2021, under the terms of the new FRP, Cleco Power is allowed to earn a target ROE of 9.5%, while providing the opportunity to earn up to 10.0%. Additionally, 60.0% of retail earnings between 10.0% and 10.5%, and all retail earnings over 10.5%, are required to be refunded to customers. The amount of credits due to customers, if any, is determined by Cleco Power and the LPSC annually. Cleco Power’s next base rate case is required to be filed with the LPSC on or before March 31, 2023.

Cleco Power filed its monitoring report for the 12 months ended June 30, 2019, on October 31, 2019, indicating that no refund was due. On September 22, 2021, the LPSC approved

the 2019 monitoring report indicating no refund was due. Monitoring reports for the 12 months ended June 30, 2020, and 2021, were not required due to the expiration of the 2014 FRP. The next monitoring report will be filed on or before October 31, 2022, for the 12 months ending June 30, 2022.

Cleco Power continued to accrue the annual cost of service savings resulting from the 2016 Merger Commitments through June 30, 2021. Beginning July 1, 2021, the annual cost of service savings are included in Cleco Power’s new retail rate plan. In September 2021, Cleco Power refunded $1.2 million for the period of July 1, 2019, through June 30, 2020. At September 30, 2021, Cleco Power had $1.2 million accrued for the period July 1, 2020, through June 30, 2021, which is expected to be refunded to customers in September 2022.

TCJA

The provisions of the TCJA reduced the top federal statutory corporate income tax rate from 35% to 21%. As a result of the tax rate reduction, on January 1, 2018, Cleco Power began accruing an estimated reserve for the reduction in the federal statutory corporate income tax rate. In February 2018, the LPSC directed utilities, including Cleco Power, to provide considerations of the appropriate manner to flow through to ratepayers the benefits of the reduction in corporate income taxes as a result of the TCJA. In July 2019, the LPSC approved Cleco Power’s rate refund of $79.2 million, plus interest, for the reduction in the statutory federal tax rate for the period from January 2018 to June 2020. The refund was credited to customers over 12 months beginning August 1, 2019.

In July 2019, the LPSC approved Cleco Power’s motion to address the rate redesign and the regulatory liability for excess ADIT, resulting from the enactment of the TCJA, in Cleco Power’s current base rate case.

As a result of the delay in the rate case, on July 15, 2020, the LPSC approved Cleco Power’s application to extend the TCJA bill credits at the same rate as determined in the initial TCJA refund of approximately $7.0 million per month. The extension was for the period of August 2020 through November 2020. On November 13, 2020, Cleco Power again received approval for its application to extend the TCJA bill credits from December 1, 2020, until such a time that the rate case was completed. The $7.0 million monthly refund consisted of approximately $4.4 million, which was to be funded by the unprotected excess ADIT, and approximately $2.6 million, which is the change in the federal statutory corporate income tax rate from 35% to 21%. At September 30, 2021, Cleco Power had $2.1 million accrued for the estimated federal tax-related benefits from the TCJA.

On June 16, 2021, the LPSC approved Cleco Power’s new retail rate plan which includes the settlement of the TCJA protected and unprotected excess ADIT. Effective July 1, 2021, all retail customers will continue receiving bill credits resulting from the TCJA. The target retail portion of the unprotected excess ADIT is approximately $2.5 million monthly and will be credited over a period of three years concluding on June 30, 2024. The retail portion of the protected excess ADIT will be credited until the full amount of the protected excess ADIT has been returned to Cleco Power’s customers through bill credits. At September 30, 2021, Cleco Power had $313.9 million accrued for the excess ADIT, of which $39.5 million is reflected in current regulatory liabilities.

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Transmission ROE

Two complaints were filed with FERC seeking to reduce the ROE component of the transmission rates that MISO transmission owners, including Cleco Power, may collect under the MISO tariff. The complaints covered the period December 2013 through May 2016. As of September 30, 2021, the overcollection due to the change in ROE was fully refunded. For more information on the ROE complaints, see Note 13 — “Litigation, Other Commitments and Contingencies, and Disclosures about Guarantees — Litigation — Transmission ROE.”

SSR

In September 2016, Cleco Power filed an Attachment Y with MISO requesting retirement of Teche Unit 3 effective April 1, 2017. MISO conducted a study which determined the proposed retirement of Teche Unit 3 would result in violations of specific applicable reliability standards for which no mitigation is available. As a result, MISO designated Teche Unit 3 as an SSR unit until such time that an appropriate alternative solution could be implemented to mitigate reliability issues. One mitigating factor identified was Cleco Power’s Terrebonne to Bayou Vista Transmission project, which was completed in April 2019. Cleco Power received a termination notice, effective April 30, 2019, and filed paperwork to withdraw the filed Attachment Y. While operating as an SSR unit, Cleco Power received monthly payments that included recovery of expenses, including capital expenditures, related to the operations of Teche Unit 3. Additionally, MISO allocated SSR costs to the load serving entities that required the operation of the SSR unit, including Cleco Power. These payments and cost allocations were finalized as part of a MISO SSR settlement approved in December 2018. Cleco Power operated Teche Unit 3 as an SSR unit from April 2017 until April 2019.

On September 7, 2021, Cleco Power made a filing with the LPSC giving notice of its intent to consider retiring Teche Unit 3, barring any violations of specific applicable reliability standards. Assuming no violations are found, Teche Unit 3 could be retired in 2022. At September 30, 2021, Cleco Power had $4.3 million accrued for the net capital refund for capital expenditures paid for by third parties while operating under the SSR agreement. The capital refund is expected to be paid in early 2022.

Note 12 — Variable Interest Entities

Cleco and Cleco Power apply the equity method of accounting to report the investment in Oxbow in the consolidated financial statements. Under the equity method, the assets and liabilities of this entity are reported as Equity investment in investee on Cleco and Cleco Power’s Condensed Consolidated Balance Sheets. The revenue and expenses (excluding income taxes) of this entity are netted and reported as equity income or loss from investees on Cleco and Cleco Power’s Condensed Consolidated Statements of Income.

Oxbow is owned 50% by Cleco Power and 50% by SWEPCO. Cleco Power is not the primary beneficiary because it shares the power to control Oxbow’s significant activities with SWEPCO. Cleco Power’s current assessment of its maximum exposure to loss related to Oxbow at September 30, 2021, consisted of its equity investment of $3.8 million. During the nine months ended September 30, 2021, Cleco Power had a return of equity investment from Oxbow of $5.3 million.

The following table presents the components of Cleco Power’s equity investment in Oxbow:

INCEPTION TO DATE (THOUSANDS)	AT SEPT. 30, 2021		AT DEC. 31, 2020
Purchase price	$	12,873	$	12,873
Cash contributions	6,399		6,399
Distributions	(15,450)		(10,200)
Total equity investment in investee	$	3,822	$	9,072

The following table compares the carrying amount of Oxbow’s assets and liabilities with Cleco Power’s maximum exposure to loss related to its investment in Oxbow:

(THOUSANDS)	AT SEPT. 30, 2021		AT DEC. 31, 2020
Oxbow’s net assets/liabilities	$	7,645	$	18,145
Cleco Power’s 50% equity	$	3,822	$	9,072
Cleco Power’s maximum exposure to loss	$	3,822	$	9,072

The following table contains summarized financial information for Oxbow:

	FOR THE THREE MONTHS ENDED SEPT. 30,				FOR THE NINE MONTHS ENDED SEPT. 30,
(THOUSANDS)	2021		2020		2021		2020
Operating revenue	$	1,486	$	2,275	$	5,113	$	33,266
Operating expenses	1,486		2,275		5,113		33,266
Income before taxes	$	—	$	—	$	—	$	—

Prior to June 30, 2020, DHLC mined lignite reserves at Oxbow through the Amended Lignite Mining Agreement. The lignite reserves were intended to be used to provide fuel to the Dolet Hills Power Station. Under the Amended Lignite Mining Agreement, DHLC bills Cleco Power its proportionate share of incurred lignite extraction and associated mining-related costs. Oxbow bills Cleco Power its proportionate share of incurred costs related to mineral rights and land leases. In June 2020, management decided to retire the Dolet Hills Power Station. On October 6, 2020, Cleco Power and SWEPCO made a joint filing with the LPSC seeking authorization to close the Oxbow mine. As of September 30, 2021, Cleco Power estimates $1.8 million of its proportionate share of costs will be billed by Oxbow prior to the closure of the Dolet Hills Power Station. For more information on DHLC and the Oxbow mine, see Note 13 — “Litigation, Other Commitments and Contingencies, and Disclosures about Guarantees — Risks and Uncertainties.”

Oxbow has no third-party agreements, guarantees, or other third-party commitments that contain obligations affecting Cleco Power’s investment in Oxbow.

Note 13 — Litigation, Other Commitments and Contingencies, and Disclosures about Guarantees

Litigation

2016 Merger

In connection with the 2016 Merger, four actions were filed in the Ninth Judicial District Court for Rapides Parish, Louisiana and three actions were filed in the Civil District Court for Orleans Parish, Louisiana. The petitions in each action generally alleged, among other things, that the members of Cleco Corporation’s Board of Directors breached their fiduciary duties by, among other things, conducting an

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allegedly inadequate sale process, agreeing to the 2016 Merger at a price that allegedly undervalued Cleco, and failing to disclose material information about the 2016 Merger. The petitions also alleged that Como 1, Cleco Corporation, Merger Sub, and, in some cases, certain of the investors in Como 1 either aided and abetted or entered into a civil conspiracy to advance those supposed breaches of duty. The petitions sought various remedies, including monetary damages, which includes attorneys’ fees and expenses.

The four actions filed in the Ninth Judicial District Court for Rapides Parish are captioned as follows:

•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).

In November 2014, the plaintiff in the Braunstein action moved for a dismissal of the action without prejudice, and that motion was granted in November 2014. In December 2014, the Court consolidated the remaining three actions and appointed interim co-lead counsel, and dismissed the investors in Cleco Partners as defendants, per agreement of the parties. Also, in December 2014, the plaintiffs in the consolidated action filed a Consolidated Amended Verified Derivative and Class Action Petition for Damages and Preliminary and Permanent Injunction.

The three actions filed in the Civil District Court for Orleans Parish were captioned as follows:

•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). 

In December 2014, the directors and Cleco filed declinatory exceptions in each action on the basis that each action was improperly brought in Orleans Parish and should either be transferred to the Ninth Judicial District Court for Rapides Parish or dismissed. Also, in December 2014, the plaintiffs in each action jointly filed a motion to consolidate the three actions pending in Orleans Parish and to appoint interim co-lead plaintiffs and co-lead counsel. In January 2015, the Court in the Creative Life Services case sustained the defendants’ declinatory exceptions and dismissed the case so that it could be transferred to the Ninth Judicial District Court for Rapides Parish. In February 2015, the plaintiffs in Butler and Cashen also consented to the dismissal of their cases from Orleans Parish so they could be transferred to the Ninth Judicial District Court for Rapides Parish. By operation of the December 2014 order of the Ninth Judicial District Court for Rapides Parish, the Butler, Cashen, and Creative Life Services actions were consolidated into the actions pending in Rapides Parish.

In February 2015, the Ninth Judicial District Court for Rapides Parish held a hearing on a motion for preliminary injunction filed by plaintiffs in the consolidated action seeking to enjoin the shareholder vote for approval of the Merger

Agreement. The District Court heard and denied the plaintiffs’ motion. In June 2015, the plaintiffs filed their Second Consolidated Amended Verified Derivative and Class Action Petition. Cleco filed exceptions seeking dismissal of the second amended petition in July 2015. The LPSC voted to approve the 2016 Merger before the Court could consider the plaintiffs’ peremptory exceptions.

In March 2016 and May 2016, the plaintiffs filed their Third Consolidated Amended Verified Derivative Petition for Damages and Preliminary and Permanent Injunction and their Fourth Verified Consolidated Amended Class Action Petition, respectively. The fourth amended petition, which remains the operative petition and was filed after the 2016 Merger closed, eliminated the request for preliminary and permanent injunction and also named an additional executive officer as a defendant. The defendants filed exceptions seeking dismissal of the fourth amended Petition. In September 2016, the District Court granted the exceptions of no cause of action and no right of action and dismissed all claims asserted by the former shareholders. The plaintiffs appealed the District Court’s ruling to the Louisiana Third Circuit Court of Appeal. In December 2017, the Third Circuit Court of Appeal issued an order reversing and remanding the case to the District Court for further proceedings. In January 2018, Cleco filed a writ with the Louisiana Supreme Court seeking review of the Third Circuit Court of Appeal’s decision. The writ was denied in March 2018 and the parties are engaged in discovery in the District Court. In November 2018, Cleco filed renewed exceptions of no cause of action and res judicata, seeking to dismiss all claims. On December 21, 2018, the court dismissed Cleco Partners and Cleco Holdings as defendants per the agreement of the parties, leaving as the only remaining defendants certain former executive officers and independent directors. The District Court denied the defendants’ exceptions on January 14, 2019. A hearing on the plaintiffs’ motion for certification of a class was scheduled for August 26, 2019; however, prior to the hearing, the parties reached an agreement to certify a limited class. On September 7, 2019, the District Court certified a class limited to shareholders who voted against, abstained from voting, or did not vote on the 2016 Merger. On October 18, 2021, the District Court issued an order consistent with a joint motion by the parties to dismiss all claims against the former independent directors leaving two former executives as the only remaining defendants. Cleco believes that the allegations of the petitions in each action are without merit and that it has substantial meritorious defenses to the claims set forth in each of the petitions.

Gulf Coast Spinning

In September 2015, a potential customer sued Cleco for failure to fully perform an alleged verbal agreement to lend or otherwise fund its startup costs to the extent of $6.5 million. Gulf Coast Spinning Company, LLC (Gulf Coast), the primary plaintiff, alleges that Cleco promised to assist it in raising approximately $60.0 million, which Gulf Coast needed to construct a cotton spinning facility near Bunkie, Louisiana. According to the petition filed by Gulf Coast in the 12th Judicial District Court for Avoyelles Parish, Louisiana (the “District Court”), Cleco made such promises of funding assistance in order to cultivate a new industrial electric customer which would increase its revenues under a power supply agreement that it executed with Gulf Coast. Gulf Coast seeks unspecified damages arising from its inability to raise sufficient funds to complete the project, including lost profits.

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Cleco filed an Exception of No Cause of Action arguing that the case should be dismissed. The District Court denied Cleco’s exception in December 2015, after considering briefs and arguments. In January 2016, Cleco appealed the District Court’s denial of its exception by filing with the Third Circuit Court of Appeal. In June 2016, the Third Circuit Court of Appeal denied the request to have the case dismissed. In July 2016, Cleco filed a writ to the Louisiana Supreme Court seeking a review of the District Court’s denial of Cleco’s exception. In November 2016, the Louisiana Supreme Court denied Cleco’s writ application.

In February 2016, the parties agreed to a stay of all proceedings pending discussions concerning settlement. In May 2016, the District Court lifted the stay at the request of Gulf Coast. The parties are currently participating in discovery. Cleco believes the allegations of the petition are contradicted by the written documents executed by Gulf Coast, are otherwise without merit, and that it has substantial meritorious defenses to the claims alleged by Gulf Coast.

Dispute with Saulsbury Industries

In October 2018, Cleco Power sued Saulsbury Industries, Inc., the former general contractor for the St. Mary Clean Energy Center project, seeking damages for Saulsbury Industries, Inc.’s failure to complete the St. Mary Clean Energy Center project on time and for costs incurred by Cleco Power in hiring a replacement general contractor. The action was filed in the Ninth Judicial District Court for Rapides Parish, No. 263339. Saulsbury Industries, Inc. removed the case to the U.S. District Court for the Western District of Louisiana, on March 1, 2019. On September 14, 2020, Cabot Industries was allowed to join the case pending in the Ninth Judicial District Court for Rapides Parish.

In January 2019, Cleco Power was served with a summons in Saulsbury Industries, Inc. v. Cabot Corporation and Cleco Power LLC, in the U.S. District Court for the Western District of Louisiana. Saulsbury Industries, Inc. alleged that Cleco Power and Cabot Corporation caused delays in the St. Mary Clean Energy Center project, resulting in alleged impacts to Saulsbury Industries, Inc.’s direct and indirect costs. On June 5, 2019, Cleco Power and Cabot Corporation each filed separate motions to dismiss. On October 24, 2019, the District Court denied Cleco’s motion as premature and ruled that Saulsbury Industries, Inc. had six weeks to conduct discovery on specified jurisdictional issues. The Magistrate Judge presiding over the Western District of Louisiana consolidated cases issued a report and recommendation to the District Judge that the case instituted by Saulsbury Industries, Inc. be dismissed without prejudice and the case initiated by Cleco Power be remanded to the Ninth Judicial District Court for Rapides Parish. Saulsbury Industries, Inc. did not oppose the Magistrate Judge’s report and recommendation, and the District Judge issued a ruling that adopted the Magistrate Judge’s report and recommendation, which included reasoning consistent with Cleco Power’s arguments. Thus, the federal consolidated cases are now closed.

On October 10, 2019, Cleco Power was served with a summons in Saulsbury Industries, Inc. v. Cabot Corporation and Cleco Power LLC in the 16th Judicial District Court for St. Mary Parish, No. 133910-A. Saulsbury Industries, Inc. asserted the same claim as the Western District Litigation and further asserts claims for payment on an open account. On December 9, 2019, Cleco moved to stay the case, arguing that the Rapides Parish suit should proceed. On February 14, 2020, the

court granted Cleco’s motion, which stay order remains in place until lifted. The 16th Judicial District Court for the St. Mary Parish case held a hearing on October 16, 2020, and the judge granted Cleco’s declinatory exceptions of lis pendens. Thus, the St. Mary’s Parish case has been dismissed. Saulsbury filed a motion for a new trial. The hearing on this motion was held on February 5, 2021, and the 16th Judicial District Court judge denied Saulsbury’s motion for a new trial. Saulsbury has appealed this decision.

LPSC Audits

Fuel Audits

Generally, Cleco Power’s cost of fuel used for electric generation and the cost of purchased power are recovered through the LPSC-established FAC that enables Cleco Power to pass on to its customers substantially all such charges. Recovery of FAC costs is subject to periodic fuel audits by the LPSC. The LPSC FAC General Order issued in November 1997, in Docket No. U-21497 provides that an audit of FAC filings will be performed at least every other year. In March 2020, Cleco Power received a notice of audit from the LPSC for the period of January 2018 to December 2019. The total amount of fuel expense included in the audit is $565.8 million. Cleco Power has responded to several sets of data requests from the LPSC. Cleco Power has FAC filings for January 2020 and thereafter that remain subject to audit. Management is unable to predict or give a reasonable estimate of the possible range of the disallowance, if any, related to these filings. Historically, the disallowances have not been material. If a disallowance of fuel cost is ordered resulting in a refund, any such refund could have a material adverse effect on the results of operations, financial condition, or cash flows of the Registrants.

On March 29, 2021, Cleco Power received approval from the LPSC to recover $50.0 million of incremental fuel and purchased power costs incurred as a result of Winter Storms Uri and Viola over a period of 12 months beginning with the May 2021 bills. On May 11, 2021, Cleco Power received notice of an audit from the LPSC for the fuel costs incurred during the time period required to restore services to Cleco Power’s customers during Winter Storms Uri and Viola. Cleco Power has responded to its first set of data requests. Management is unable to determine the outcome or timing of the audit. For more information on these winter storms, see Note 17 — “Storm Restoration — Winter Storms Uri and Viola.”

Environmental Audit

In 2009, the LPSC issued Docket No. U-29380 Subdocket A, which provides Cleco Power an EAC to recover from its customers certain costs of environmental compliance. The costs eligible for recovery are those for prudently incurred air emissions credits associated with complying with federal, state, and local air emission regulations that apply to the generation of electricity reduced by the sale of such allowances. Also eligible for recovery are variable emission mitigation costs, which are the costs of reagents such as ammonia and limestone that are a part of the fuel mix used to reduce air emissions, among other things. On October 20, 2021, the LPSC approved the EAC audit for the period January 2018 to December 2019 with no findings. The total amount of environmental expense that was included in the audit was $26.2 million. Cleco Power has EAC filings for January 2020 and thereafter that remain subject to audit. Management is

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unable to predict or give a reasonable estimate of the possible range of the disallowance, if any, related to these filings. Historically, the disallowances have not been material. If a disallowance of environmental cost is ordered resulting in a refund to Cleco Power’s customers, any such refund could have a material adverse effect on the results of operations, financial condition, or cash flows of the Registrants.

Cleco Power incurs environmental compliance expenses for reagents associated with the compliance standards of Mercury and Air Toxics Standards (MATS). These expenses are also eligible for recovery through Cleco Power’s EAC and are subject to periodic review by the LPSC. In May 2020, the EPA finalized a rule that concluded that it is not appropriate and necessary to regulate hazardous air pollutants from coal- and oil-fired electric generating units. However, the EPA concluded that coal- and oil-fired electric generating units would not be removed from the list of regulated sources of hazardous air pollutants and would remain subject to MATS. The EPA also determined that the results of its risk and technology review did not require any revisions to the emissions standards. Several petitions for review of the rule’s findings were filed between May and July 2020 in the D.C. Circuit Court of Appeals. On January 20, 2021, the Presidential Administration issued an executive order directing federal agency heads to review regulations and other actions over the past four years to determine if they are inconsistent with the policies announced in the executive order. The order specifically directs the EPA to consider issuing a proposed rule to suspend, revise, or rescind the rule. The EPA has not issued a proposed rule, and management is unable to determine when a proposed rule will be issued. The EPA determined the most environmentally protective course is to implement the rules in the executive order. Management is unable to determine whether the outcome of the D.C. Circuit Court of Appeals review or the EPA’s review of the rule as a result of the executive order will result in changes to the MATS standards.

FERC Audit

Generally, Cleco Power records wholesale transmission revenue through approved formula rates, Attachment O of the MISO tariff and certain grandfathered agreements. The calculation of the rate formulas, as well as FERC accounting and reporting requirements, are subject to periodic audits by FERC. In March 2018, the Division of Audits and Accounting, within the Office of Enforcement of FERC, initiated an audit of Cleco Power for the period of January 1, 2014, through June 30, 2019. On September 27, 2019, Cleco Power received the final audit report, which indicated 12 findings of noncompliance with a combination of FERC accounting and reporting requirements and computation of revenue requirements along with 59 recommendations associated with the audit period. Cleco Power submitted a plan for implementing the audit recommendations on October 28, 2019. Cleco Power also submitted the refund analysis on November 7, 2019, which resulted in a refund related to the FERC audit findings, pending final assessment by the FERC Division of Audits and Accounting, which is expected in the fourth quarter of 2021. As of June 30, 2021, the refund of $4.4 million was fully refunded to Cleco Power’s wholesale transmission customers as a combination of refund payments and a reduction in Attachment O of the MISO tariff and grandfathered agreement rates over the preceding 12 months.

Transmission ROE

In November 2013 and February 2015, customers filed complaints with FERC seeking to reduce the ROE component of the transmission rates that MISO transmission owners, including Cleco, may collect under the MISO tariff. The complaints covered the period December 2013 through May 2016 and sought to reduce the 12.38% ROE used in MISO’s transmission rates to a proposed 6.68%. In June 2016, an administrative law judge issued an initial decision in the second rate case docket recommending a 9.70% base ROE. In September 2016, FERC issued a Final Order in response to the first complaint establishing a 10.32% ROE. However, on November 21, 2019, FERC voted to adopt a new methodology for evaluating base ROE for public utilities under the Federal Power Act. In addition, FERC set the MISO transmission owners’ region-wide base ROE at 9.88% for the refund period covered in the first complaint and going forward. The draft FERC order further found that complainants in the second complaint proceeding failed to show that the 9.88% base ROE was unjust and unreasonable and thus dismissed the second complaint. On May 21, 2020, FERC issued Opinion No. 569-A, which granted rehearing in part of Opinion No. 569, which had revised FERC’s methodology for analyzing the base ROE component of public utility rates under section 206 of the Federal Power Act. Opinion No. 569-A further refines FERC’s ROE methodology and finds that the MISO Transmission Owners’ base ROE should be set at 10.02% instead of 9.88%. Cleco Power is unable to determine when a final FERC Order will be issued. As of September 30, 2021, the overcollection due to the change in the ROE was fully refunded.

In November 2014, the MISO transmission owners committee, of which Cleco is a member, filed a request with FERC for an incentive to increase the new ROE by 50 basis points for RTO participation as allowed by the MISO tariff. In January 2015, FERC granted the request. The collection of the adder was included in MISO’s transmission rates for a total ROE of 10.38% and 10.52% beginning January 1, 2020, and June 1, 2020, respectively.

South Central Generating

In 2017, Louisiana Generating received insurance settlement proceeds for remediation costs, as defined in the policy of insurance, incurred to install selective non-catalytic reduction equipment on Big Cajun II, Unit 3. This installation served a dual purpose of being a prudent utility practice for compliance with environmental laws and aiding in the settlement of a lawsuit, which was brought by the EPA and the Louisiana Department of Environmental Quality against Louisiana Generating, related to Big Cajun II, Units 1 and 2. Entergy Gulf States, as co-owner of Big Cajun II, Unit 3, expected to be allocated a portion of the insurance settlement proceeds. Litigation between Entergy Gulf States and Louisiana Generating ensued to determine Entergy Gulf States’ allocated amount of insurance proceeds, among other claims pursuant to the Joint Ownership Participation and Operating Agreement between Louisiana Generating and Entergy Gulf States. In August 2021, Louisiana Generating and Entergy Gulf States entered an agreement to settle all claims asserted in this litigation. Upon payment of the settlement amount in January 2022, the lawsuit will be dismissed. NRG Energy will indemnify Cleco for losses associated with this litigation matter.

Prior to the Cleco Cajun Transaction, South Central Generating was involved in various litigation matters, including environmental and contract proceedings, before various courts

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regarding matters arising out of the ordinary course of business. As of September 30, 2021, management estimates potential losses to be $1.5 million with respect to one of these matters. Management is unable to estimate any potential losses Cleco Cajun may be ultimately responsible for with respect to any of the remaining matters. As part of the Cleco Cajun Transaction, NRG Energy indemnified Cleco for losses as of the closing date associated with matters that existed as of the closing date, including pending litigation.

Other

Cleco is involved in various litigation matters, including regulatory, environmental, and administrative proceedings before various courts, regulatory commissions, arbitrators, and governmental agencies regarding matters arising in the ordinary course of business. The liability Cleco may ultimately incur with respect to any one of these matters may be in excess of amounts currently accrued. Management regularly analyzes current information and, as of September 30, 2021, believes the probable and reasonably estimable liabilities based on the eventual disposition of these matters are $4.1 million and has accrued this amount.

Off-Balance Sheet Commitments and Guarantees

Cleco Holdings and Cleco Power have entered into various off-balance sheet commitments, in the form of guarantees and standby letters of credit, in order to facilitate their activities and the activities of Cleco Holdings’ subsidiaries and equity investees (affiliates). Cleco Holdings and Cleco Power have also agreed to contractual terms that require the Registrants to pay third parties if certain triggering events occur. These contractual terms generally are defined as guarantees.

Cleco Holdings entered into these off-balance sheet commitments in order to entice desired counterparties to contract with its affiliates by providing some measure of credit assurance to the counterparty in the event Cleco’s affiliates do not fulfill certain contractual obligations. If Cleco Holdings had not provided the off-balance sheet commitments, the desired counterparties may not have contracted with Cleco’s affiliates, or may have contracted with them at terms less favorable to its affiliates.

The off-balance sheet commitments are not recognized on Cleco and Cleco Power’s Condensed Consolidated Balance Sheets because management has determined that Cleco and Cleco Power’s affiliates are able to perform the obligations under their contracts and that it is not probable that payments by Cleco or Cleco Power will be required.

Cleco Holdings provided guarantees and indemnities to Entergy Louisiana and Entergy Gulf States as a result of the sale of the Perryville generation facility in 2005. The remaining indemnifications relate to environmental matters that may have been present prior to closing. These remaining indemnifications have no time limitations. The maximum amount of the potential payment to Entergy Louisiana and Entergy Gulf States is $42.4 million. Management does not expect to be required to pay Entergy Louisiana and Entergy Gulf States under these guarantees.

On behalf of Acadia, Cleco Holdings provided guarantees and indemnifications as a result of the sales of Acadia Unit 1 to Cleco Power and Acadia Unit 2 to Entergy Louisiana in 2010 and 2011, respectively. The remaining indemnifications relate to the fundamental organizational structure of Acadia. These remaining indemnifications have no time limitations or maximum potential future payments. Management does not

expect to be required to pay Cleco Power or Entergy Louisiana under these guarantees.

Cleco Holdings provided indemnifications to Cleco Power as a result of the transfer of Coughlin to Cleco Power in March 2014. Cleco Power also provided indemnifications to Cleco Holdings and Evangeline as a result of the transfer of Coughlin to Cleco Power. The maximum amount of the potential payment to Cleco Power, Cleco Holdings, and Evangeline for their respective indemnifications is $40.0 million, except for indemnifications relating to the fundamental organizational structure of each respective entity, of which the maximum amount is $400.0 million. Management does not expect to be required to make any payments under these indemnifications.

As part of the Amended Lignite Mining Agreement, Cleco Power and SWEPCO, joint owners of the Dolet Hills Power Station, have agreed to pay the loan and lease principal obligations of the lignite miner, DHLC, when due if DHLC does not have sufficient funds or credit to pay. Any amounts paid on behalf of the miner would be credited by the lignite miner against future invoices for lignite delivered. As of September 30, 2021, Cleco Power does not expect any payments to be made under this guarantee. The projection is based on the forecasted loan and lease obligations to be incurred by DHLC, primarily for purchases of equipment. Cleco Power has the right to dispute the incurrence of loan and lease obligations through the review of the mining plan before the incurrence of such loan and lease obligations. In April 2020, Cleco Power and SWEPCO mutually agreed to not develop additional mining areas for future lignite extraction and subsequently provided notice to the LPSC of the intent to cease mining at the Dolet Hills and Oxbow mines by June 2020. The mine closures are subject to LPSC review and approval. As of December 31, 2020, all lignite reserves intended to be extracted from the Oxbow mine had been extracted. On October 6, 2020, Cleco Power and SWEPCO made a joint filing with the LPSC seeking authorization to close the Oxbow mine and to include and defer certain accelerated mine closing costs in fuel and related ratemaking treatment. On March 17, 2021, the LPSC approved the establishment of a regulatory asset for the deferral of certain accelerated mine costs in fuel and related ratemaking treatment. For more information on the Dolet Hills regulatory asset, see Note 5 — “Regulatory Assets and Liabilities — Lignite Mine Closure Cost.” Cleco Power is currently responding to data requests related to the joint filing. The Amended Lignite Mining Agreement does not affect the amount the Registrants can borrow under their credit facilities. Currently, management does not expect to be required to pay DHLC under this guarantee.

Cleco has letters of credit to MISO pursuant to energy market requirements. The letters of credit automatically renew each year and have no impact on Cleco Holdings’ or Cleco Power’s revolving credit facility. In February 2021, as a result of Winter Storms Uri and Viola, Cleco Power and Cleco Holdings, on behalf of Cleco Cajun, were required to post collateral with MISO. In March 2021, Cleco Power and Cleco Cajun settled with MISO the purchased power obligations associated with Winter Storms Uri and Viola. MISO returned associated collateral postings of $24.9 million and $6.5 million to Cleco Power and Cleco Holdings, respectively. For more information on these winter storms, see Note 17 — “Storm Restoration — Winter Storms Uri and Viola.”

Generally, neither Cleco Holdings nor Cleco Power has recourse that would enable them to recover amounts paid under their guarantee or indemnification obligations. There are

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no assets held as collateral for third parties that either Cleco Holdings or Cleco Power could obtain and liquidate to recover amounts paid pursuant to the guarantees or indemnification obligations.

Other Commitments

Cleco has accrued for liabilities related to third parties, employee medical benefits, and AROs.

In April 2015, the EPA published a final rule in the Federal Register for regulating the disposal and management of CCRs from coal-fired power plants (CCR Rule). The rule established extensive requirements for existing and new CCR landfills and surface impoundments and all lateral expansions consisting of location restrictions, design and operating criteria, groundwater monitoring and corrective action, closure requirements and post closure care, and recordkeeping, notification, and internet posting requirements. In August 2018, the D.C. Court of Appeals vacated several requirements in the CCR regulation, which included eliminating the previous acceptability of compacted clay material as a liner for impoundments. As a result, on December 2, 2019, the EPA published a proposed rule that would set deadlines for costly modifications including retrofitting of clay-lined impoundments with compliant liners or closure of the impoundments. The rule was finalized and published in the Federal Register on August 28, 2020. In November 2020, Cleco submitted demonstrations to the EPA specifying its intended course of action for Rodemacher Unit 2, Dolet Hills Power Station, and Big Cajun II in order to comply with the final rule. During 2021, additional information was submitted to the LDEQ to revise and update Cleco Power’s compliance strategy. Cleco Power and Cleco Cajun have also engaged independent engineering specialists to conduct studies on the efforts and costs expected to be incurred in order to comply with the final CCR rule. During the third quarter of 2021, management received additional information in connection with Cleco Power’s and Cleco Cajun’s compliance strategies resulting in a revision to the estimated cash flows expected to be required to settle the respective AROs. Therefore, Cleco Power and Cleco Cajun recorded an increase of $13.1 million and $35.5 million, respectively, in their ARO balances.

The following tables summarize the net changes in the ARO for Cleco and Cleco Power:

(THOUSANDS)	CLECO CAJUN		CLECO POWER		CLECO
Balance, Dec. 31, 2020	$	16,658	$	11,364	$	28,022
Liabilities settled	(1,316)		$	—	(1,316)
Accretion	466		$	249	715
Revisions and adjustments	35,540		$	13,101	48,641
Balance, Sept. 30, 2021	$	51,348	$	24,714	$	76,062

As part of the Cleco Cajun Transaction, NRG agreed to indemnify Cleco for environmental costs up to $25.0 million associated with the CCR rule. At September 30, 2021, Cleco Cajun recognized indemnification assets totaling $22.1 million. The current portion of the indemnification asset of $1.1 million is reflected in Other current assets and the non-current portion of $21.0 million is reflected in Other deferred charges on Cleco’s Condensed Consolidated Balance Sheet. The indemnification asset is expected to be collected as closure costs are incurred.

Risks and Uncertainties

Cleco could be subject to possible adverse consequences if Cleco’s counterparties fail to perform their obligations or if Cleco or its affiliates are not in compliance with loan agreements or bond indentures.

Access to capital markets is a significant source of funding for both short- and long-term capital requirements not satisfied by operating cash flows.

Changes in the regulatory environment or market forces could cause Cleco to determine its assets have suffered an other-than-temporary decline in value, whereby an impairment would be required, and Cleco’s financial condition could be materially adversely affected.

Cleco Power and Cleco Cajun are participants in the MISO market. Power purchases in the MISO market are made at prevailing market prices, also referred to as LMP. LMP includes a component directly related to congestion on the transmission system and, as a result, can be different based on the location and time of the day the energy is dispatched causing energy costs to increase. Cleco Power and Cleco Cajun use FTRs to mitigate transmission congestion price risks.

On March 1, 2019, Cleco Power began to operate the Dolet Hills Power Station from June through September of each year; however, the Dolet Hills Power Station will continue to be available to operate in other months, if needed. In June 2020, management decided to retire the Dolet Hills Power Station.

In June 2020, Cleco Power remeasured its ARO liabilities due to the expected retirement of the Dolet Hills Power Station. Cleco Power’s ARO liability increased $3.3 million as a result of this remeasurement. At September 30, 2021, Cleco Power’s undivided interest in the Dolet Hills Power Station was $38.6 million and was included in base rates.

Cleco Power made a filing with the LPSC on September 7, 2021, giving notice that the Dolet Hills Power Station will be retired at the end of 2021. Cleco Power anticipates filing in the fourth quarter of 2021 an application with the LPSC requesting recovery of stranded and decommissioning costs associated with the retirement of the Dolet Hills Power Station.

On October 6, 2020, Cleco Power and SWEPCO made a joint filing with the LPSC seeking authorization to close the Oxbow mine, and to include and defer certain accelerated mine closing costs in fuel and related ratemaking treatment. The expected early closure of the mines has resulted in increased costs that will be billed through the fuel adjustment clause, which management currently believes are recoverable. Management does not believe the early closure of the mines will have an adverse impact on the recovery value of the Dolet Hills Power Station. Cleco Power is currently responding to data requests related to the joint filing.

Fuel costs incurred by the Dolet Hills Power Station are recoverable by Cleco Power through active fuel adjustment clauses. Under the Amended Lignite Mining Agreement, DHLC bills Cleco Power its proportionate share of incurred lignite extraction and associated mining-related costs as fuel is delivered. As of September 30, 2021, Cleco Power estimates $10.1 million of its proportionate share of costs will be billed by DHLC prior to the closure of the Dolet Hills Power Station. In 2009, Cleco Power acquired an interest in Oxbow, which owns mineral rights and land leases. Under a joint operating agreement pertaining to the Oxbow mineral rights and land leases, Oxbow bills Cleco Power its proportionate share of incurred costs. As of September 30, 2021, Cleco Power estimates $1.8 million of its proportionate share of costs will be

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billed by Oxbow prior to the closure of the Dolet Hills Power Station. If any of these costs are not recoverable, it could materially impact the Registrants’ results of operations, financial condition, or cash flows.

Note 14 — Affiliate Transactions

At September 30, 2021, and December 31, 2020, Cleco Holdings had an affiliate receivable of $3.0 million and $1.7 million, respectively, from Cleco Group primarily for franchise taxes. At both September 30, 2021, and December 31, 2020, Cleco Holdings had an affiliate payable of $41.3 million to Cleco Group primarily for 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:

	AT SEPT. 30, 2021				AT DEC. 31, 2020
(THOUSANDS)	ACCOUNTS RECEIVABLE		ACCOUNTS PAYABLE		ACCOUNTS RECEIVABLE		ACCOUNTS PAYABLE
Cleco Holdings	$	10,712	$	57,825	$	10,353	$	57,713
Support Group	2,388		11,514		3,248		14,355
Cleco Cajun	882		17		1,004		—
Total	$	13,982	$	69,356	$	14,605	$	72,068

Of the affiliate payable balances at September 30, 2021, and December 31, 2020, Cleco Power had $57.6 million payable to Cleco Holdings for the settlement of income taxes.

Oxbow bills Cleco Power its proportionate share of incurred costs related to mineral rights and land leases. These costs are included in fuel inventory and are recoverable from Cleco Power customers through the LPSC-established FAC or related wholesale contract provisions. During the three and nine months ended September 30, 2021, Cleco Power recorded $0.7 million and $2.7 million, respectively, of its proportionate share of incurred costs. During the three and nine months ended September 30, 2020, Cleco Power recorded $1.1 million and $16.6 million, respectively, of its proportionate share of incurred costs. At September 30, 2021, and December 31, 2020, Cleco Power had $0.2 million and $0.3 million, respectively, payable to Oxbow. For more information on Cleco Power’s variable interest in Oxbow, see Note 12 — “Variable Interest Entities.”

Note 15 — Intangible Assets and Liabilities

During 2008, Cleco Katrina/Rita acquired a $177.5 million intangible asset which included $176.0 million for the right to bill and collect storm recovery charges from customers of Cleco Power and $1.5 million of financing costs. This intangible asset was fully amortized in March 2020 and had no residual value at the end of its life.

As a result of the 2016 Merger, fair value adjustments were recorded on Cleco’s Condensed Consolidated Balance Sheet for the valuation of finite intangible assets relating to the Cleco Power trade name and long-term wholesale power supply agreements. At the end of their lives, these power supply agreement intangible assets will have no residual value. The intangible assets related to the power supply agreements are amortized over the estimated life of each applicable contract ranging between 7 and 19 years, and the amortization is included in Electric operations on Cleco’s Condensed Consolidated Statements of Income.

During the third quarter of 2021, Cleco determined that the fair value of the Cleco Power trade name was less than its carrying value and an impairment of $3.8 million was recognized reducing the carrying value to zero. The impairment resulted in an increase in amortization expense and was reflected in Depreciation and amortization on Cleco’s Condensed Consolidated Statements of Income at September 30, 2021. For more information on the the trade name intangible asset impairment, see Note 6 — “Fair Value Accounting and Financial Instruments.”

As a result of the Cleco Cajun Transaction, fair value adjustments were recorded on Cleco’s Condensed Consolidated Balance Sheet for the difference between the contract and market price of acquired long-term wholesale power agreements. At the end of their lives, these intangible assets and liabilities will have no residual value. These intangibles are amortized over the estimated life of each applicable contract ranging between 6 and 8 years. The amortization is included in Electric operations on Cleco’s Condensed Consolidated Statements of Income.

As part of the Cleco Cajun Transaction, Cleco assumed an LTSA for maintenance services related to the Cottonwood Plant. This intangible liability is being amortized using the straight-line method over the estimated life of the LTSA of seven years. The amortization is included as a reduction to the LTSA prepayments on Cleco’s Condensed Consolidated Balance Sheet.

The following tables present Cleco and Cleco Power’s amortization of intangible assets and liabilities:

Cleco
	FOR THE THREE MONTHS ENDED SEPT. 30,				FOR THE NINE MONTHS ENDED SEPT. 30,
(THOUSANDS)	2021		2020		2021		2020
Intangible assets
Cleco Katrina/Rita right to bill and collect storm recovery charges	$	—	$	—	$	—	$	517
Trade name	$	3,770	$	64	$	3,897	$	191
Power supply agreements	$	6,400	$	6,400	$	19,200	$	19,200
Intangible liabilities
LTSA	$	871	$	871	$	2,613	$	2,613
Power supply agreements	$	389	$	882	$	1,989	$	2,646

Cleco Power
	FOR THE THREE MONTHS ENDED SEPT. 30,				FOR THE NINE MONTHS  ENDED SEPT. 30,
(THOUSANDS)	2021		2020		2021		2020
Cleco Katrina/Rita right to bill and collect storm recovery charges	$	—	$	—	$	—	$	517

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The following tables summarize the balances for intangible assets and liabilities subject to amortization for Cleco:

Cleco
(THOUSANDS)	AT SEPT. 30, 2021		AT DEC. 31, 2020
Intangible assets
Trade name	$	—	$	5,100
Power supply agreements	184,004		184,004
Total intangible assets carrying amount	184,004		189,104
Intangible liabilities
LTSA	24,100		24,100
Power supply agreements	14,200		14,200
Total intangible liability carrying amount	38,300		38,300
Net intangible assets carrying amount	145,704		150,804
Accumulated amortization	(77,326)		(63,932)
Net intangible assets subject to amortization	$	68,378	$	86,872

Goodwill

On April 13, 2016, in connection with the completion of the 2016 Merger, Cleco recognized goodwill of $1.49 billion. Management assigned the recognized goodwill to the Cleco Power reporting unit. Goodwill is required to be tested for impairment at the reporting unit level on an annual basis and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. Application of the goodwill impairment test requires significant judgments, including the identification of reporting units, assignments of assets and liabilities to reporting units, assignment of goodwill to reporting units, and the determination of the fair value of the reporting units.

Cleco conducted its 2021 annual impairment test using an August 1, 2021, measurement date. The fair value of the Cleco Power reporting unit was estimated using a weighted combination of the income approach, which estimates fair value based on discounted cash flows, and the market

approach, which estimates fair value based on market comparables within the utility and energy industries. Significant assumptions used in these fair value estimates include estimation of future cash flows related to capital expenditures, long-term rate of growth, and weighted-average cost of capital or discount rate. Changes in these assumptions could materially affect the determination of fair value and goodwill impairment at Cleco Power. Based on the tests performed, management has determined that the fair value of the Cleco Power reporting unit exceeds the carrying value resulting in no impairment of Cleco Power’s goodwill as of August 1, 2021.

Note 16 — Accumulated Other Comprehensive Loss

The components of accumulated other comprehensive loss are summarized in the following tables for Cleco and Cleco Power. All amounts are reported net of income taxes. Amounts in parentheses indicate debits.

Cleco
	FOR THE THREE MONTHS ENDED SEPT. 30, 2021		FOR THE NINE MONTHS ENDED SEPT. 30, 2021
(THOUSANDS)	POSTRETIREMENT BENEFIT NET LOSS
Balances, beginning of period	$	(25,588)	$	(25,796)
Amounts reclassified from AOCI
Amortization of postretirement benefit net loss	96		304
Balances, Sept. 30, 2021	$	(25,492)	$	(25,492)

	FOR THE THREE MONTHS ENDED SEPT. 30, 2020		FOR THE NINE MONTHS ENDED SEPT. 30, 2020
(THOUSANDS)	POSTRETIREMENT BENEFIT NET LOSS
Balances, beginning of period	$	(16,657)	$	(17,513)
Amounts reclassified from AOCI
Amortization of postretirement benefit net loss	448		1,304
Balances, Sept. 30, 2020	$	(16,209)	$	(16,209)

Cleco Power
	FOR THE THREE MONTHS ENDED SEPT. 30, 2021						FOR THE NINE MONTHS ENDED SEPT. 30, 2021
(THOUSANDS)	POSTRETIREMENT BENEFIT NET LOSS		NET LOSS ON CASH FLOW HEDGES		TOTAL AOCI		POSTRETIREMENT BENEFIT NET LOSS		NET LOSS ON CASH FLOW HEDGES		TOTAL AOCI
Balances, beginning of period	$	(18,394)	$	(5,486)	$	(23,880)	$	(19,139)	$	(5,614)	$	(24,753)
Amounts reclassified from AOCI
Amortization of postretirement benefit net loss	350		—		350		1,095		—		1,095
Reclassification of net loss to interest charges	—		63		63		—		191		191
Balances, Sept. 30, 2021	$	(18,044)	$	(5,423)	$	(23,467)	$	(18,044)	$	(5,423)	$	(23,467)

	FOR THE THREE MONTHS ENDED SEPT. 30, 2020						FOR THE NINE MONTHS ENDED SEPT. 30, 2020
(THOUSANDS)	POSTRETIREMENT BENEFIT NET LOSS		NET LOSS ON CASH FLOW HEDGES		TOTAL AOCI		POSTRETIREMENT BENEFIT NET LOSS		NET LOSS ON CASH FLOW HEDGES		TOTAL AOCI
Balances, beginning of period	$	(15,872)	$	(5,740)	$	(21,612)	$	(16,717)	$	(5,868)	$	(22,585)
Amounts reclassified from AOCI
Amortization of postretirement benefit net loss	373		—		373		1,218		—		1,218
Reclassification of net loss to interest charges	—		63		63		—		191		191
Balances, Sept. 30, 2020	$	(15,499)	$	(5,677)	$	(21,176)	$	(15,499)	$	(5,677)	$	(21,176)

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Note 17 — Storm Restoration

Hurricanes Laura, Delta, and Zeta

In August and October 2020, Cleco Power’s distribution and transmission systems sustained substantial damage from three separate hurricanes.

Cleco Power’s total storm restoration costs related to the hurricanes is approximately $242.6 million. The damage to equipment from the hurricanes required replacement, as well as repair of existing assets. Therefore, the balance sheets of Cleco and Cleco Power reflect the capitalization of approximately 63%, or approximately $152.2 million, of the total restoration costs recorded at September 30, 2021. At September 30, 2021, Cleco Power had regulatory assets for non-capital expenses related to Hurricanes Laura, Delta, and Zeta, as allowed by the LPSC, totaling $78.2 million.

On December 4, 2020, Cleco Power filed an application with the LPSC requesting an interim rate recovery for return on certain storm restoration costs associated with the hurricanes until securitization of such costs can be completed. On May 19, 2021, the LPSC issued an order authorizing Cleco Power to recover $16.0 million annually for interim storm recovery costs. This order is effective until such time that the LPSC issues its order authorizing the recovery of the verified final storm costs and securitization of those costs, which is expected in the first quarter of 2022. Cleco Power began collecting this amount through rates on June 1, 2021.

Winter Storms Uri and Viola

In February 2021, Winter Storms Uri and Viola reached Louisiana causing Cleco’s service territories to experience extreme and unprecedented winter weather that resulted in damage to Cleco Power’s distribution assets, electricity generation supply shortages, natural gas supply shortages, and increases in wholesale prices of natural gas in the U.S., primarily due to prolonged freezing temperatures. Cleco Power’s total storm restoration costs related to Winter Storms Uri and Viola is approximately $10.5 million. The damage to equipment from the storms required replacement, as well as repair of the existing assets. Therefore, the balance sheets of Cleco and Cleco Power reflect the capitalization of approximately 80%, or approximately $8.4 million, of the estimated total restoration costs recorded at September 30, 2021. At September 30, 2021, Cleco Power had a regulatory asset for the remaining operations and maintenance costs of $2.0 million, as allowed by the LPSC. Cleco Power has requested recovery of these costs through the storm securitization filing that was made with the LPSC on August 5, 2021.

Cleco Power’s incremental fuel and purchased power costs incurred as a result of Winter Storms Uri and Viola is approximately $55.0 million. On March 29, 2021, Cleco Power received approval from the LPSC to recover $50.0 million of these costs over a period of 12 months beginning with the May 2021 bills. On May 11, 2021, Cleco Power received notice of an audit from the LPSC for the fuel costs incurred during the time period required to restore services to Cleco Power’s customers during Winter Storms Uri and Viola. Cleco Power has responded to its first set of data requests. Management is unable to determine the outcome or timing of the audit.

In February 2021, as a result of Winter Storms Uri and Viola, Cleco Power and Cleco Holdings, on behalf of Cleco Cajun, were required to post collateral with MISO. In March

2021, Cleco Power and Cleco Cajun settled with MISO the purchased power obligations associated with Winter Storms Uri and Viola. MISO returned associated collateral postings of $24.9 million and $6.5 million to Cleco Power and Cleco Holdings, respectively.

Hurricane Ida

On August 29, 2021, Hurricane Ida made landfall in southeast Louisiana as a Category 4 storm, causing power outages for approximately 100,000 of Cleco Power’s electric customers located primarily in southeastern Louisiana. By September 11, 2021, power was restored to 100% of customers who could receive power.

Cleco Power’s current estimate of total storm restoration costs related to Hurricane Ida is between $85.0 million and $95.0 million. The damage to equipment from the hurricane required replacement, as well as repair of existing assets. Therefore, the balance sheets of Cleco and Cleco Power reflect the capitalization of approximately 56%, or approximately $49.1 million, of the total restoration costs recorded at September 30, 2021. At September 30, 2021, Cleco Power had a regulatory asset for non-capital expenses related to Hurricane Ida, as allowed by the LPSC, totaling $36.8 million.

On September 28, 2021, Cleco Power made a supplemental filing to its application for storm restoration costs securitization to recover costs related to Hurricane Ida.

Storm Securitization

On August 5, 2021, Cleco Power filed testimony with the LPSC relating to securitization of the final storm costs for Hurricanes Laura, Delta, and Zeta, and Winter Storms Uri and Viola, totaling $342.0 million, including the establishment of a newly funded $100.0 million storm reserve to cover future storm costs. On September 28, 2021, Cleco Power filed supplemental testimony with the LPSC relating to storm securitization requesting an additional $100.0 million for a separate storm reserve to cover costs associated with Hurricane Ida. Cleco Power continues to respond to several sets of data requests received from the LPSC related to the securitization filing.

Cleco Power, in line with other impacted utilities, will seek available funds from the U.S. government for relief of costs incurred from Hurricanes Laura, Delta, and Zeta. Cleco Power cannot predict the likelihood that any funding from the U.S. government ultimately will be approved.

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CLECO POWER	2021 3RD QUARTER FORM 10-Q

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Cleco uses its website, https://www.cleco.com, as a routine channel for distribution of important information, including news releases and financial information. Cleco’s website is the primary source of publicly disclosed news about Cleco. Cleco is providing the address to its website solely for informational purposes and does not intend for the address to be an active link. The contents of the website are not incorporated into this Quarterly Report on Form 10-Q.

The following discussion and analysis should be read in combination with the Registrants’ Combined Annual Report on Form 10-K for the fiscal year ended December 31, 2020, and Cleco and Cleco Power’s Condensed Consolidated Financial Statements contained in this Quarterly Report on Form 10-Q. The information included therein is essential to understanding the following discussion and analysis. Below is information concerning the consolidated results of operations of Cleco for the three and nine months ended September 30, 2021, and 2020.

OVERVIEW

Cleco is a regional energy company that conducts substantially all of its business operations through its two principal operating business segments:

•Cleco Power, a regulated electric utility company that owns 10 generating units with a total rated capacity of 3,360 MW and serves approximately 290,000 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 14 generating units with a total rated capacity of 3,379 MW and wholesale contracts serving nine Louisiana cooperatives, two wholesale municipal customers, and one electric utility. Upon the closing of the Cleco Cajun Transaction, Cottonwood Energy entered into the Cottonwood Sale Leaseback.

Significant Events

Hurricane Ida

On August 29, 2021, Hurricane Ida made landfall in southeast Louisiana as a Category 4 storm, causing power outages for approximately 100,000 of Cleco Power’s electric customers located primarily in southeastern Louisiana. By September 11, 2021, power was restored to 100% of customers who could receive power.

Cleco Power’s current estimate of total storm restoration costs related to Hurricane Ida is between $85.0 million and $95.0 million. The damage to equipment from the hurricane required replacement, as well as repair of existing assets. Therefore, the balance sheets of Cleco and Cleco Power reflect the capitalization of approximately 56%, or approximately $49.1 million, of the total restoration costs recorded at September 30, 2021. At September 30, 2021, Cleco Power had regulatory assets for non-capital expenses related to Hurricane Ida, as allowed by the LPSC, totaling $36.8 million. For more information on Cleco Power’s storm securitization, see Item 1, “Notes to the Unaudited Condensed Consolidated Financial Statements — Note 17 — Storm Restoration — Storm Securitization.”

Winter Storms Uri and Viola

In February 2021, Winter Storms Uri and Viola reached Louisiana causing Cleco’s service territories to experience extreme and unprecedented winter weather that resulted in damage to Cleco Power’s distribution assets, electricity generation supply shortages, natural gas supply shortages, and increases in wholesale prices of natural gas in the U.S., primarily due to prolonged freezing temperatures.

Cleco Power’s total storm restoration costs related to Winter Storms Uri and Viola is approximately $10.5 million. The damage to equipment from the storms required replacement, as well as repair of existing assets. Therefore, the balance sheets of Cleco and Cleco Power reflect the capitalization of approximately 80%, or approximately $8.4 million, of the estimated total restoration costs recorded at September 30, 2021. At September 30, 2021, Cleco Power had a regulatory asset for the remaining operations and maintenance costs of $2.0 million, as allowed by the LPSC. Cleco Power has requested recovery of these costs through the storm securitization filing that was made with the LPSC on August 5, 2021.

Cleco Power’s incremental fuel and purchased power costs incurred as a result of Winter Storms Uri and Viola is approximately $55.0 million. On March 29, 2021, Cleco Power received approval from the LPSC to recover $50.0 million of these costs over a period of 12 months beginning with the May 2021 bills. On May 11, 2021, Cleco Power received notice of an audit from the LPSC for the fuel costs incurred during the time period required to restore services to Cleco Power’s customers during Winter Storms Uri and Viola. Cleco Power has responded to its first set of data requests. Management is unable to determine the outcome or timing of the audit.

Hurricanes Laura, Delta, and Zeta

In August and October 2020, Cleco Power’s distribution and transmission systems sustained substantial damage from three separate hurricanes.

Cleco Power’s total storm restoration costs related to the hurricanes is approximately $242.6 million. The damage to equipment from the hurricanes required replacement, as well as repair of existing assets. Therefore, the balance sheets of Cleco and Cleco Power reflect the capitalization of approximately 63%, or approximately $152.2 million, of the total restoration costs recorded at September 30, 2021. At September 30, 2021, Cleco Power had regulatory assets for non-capital expenses related to Hurricanes Laura, Delta, and Zeta, as allowed by the LPSC, totaling $78.2 million.

On December 4, 2020, Cleco Power filed an application with the LPSC requesting an interim rate recovery for return on certain storm restoration costs associated with the hurricanes until securitization of such costs can be completed. On May 19, 2021, the LPSC issued an order authorizing Cleco Power to recover $16.0 million annually for interim storm recovery costs. This order is effective until such time that the LPSC issues its order authorizing the recovery of the verified final storm costs and securitization of those costs, which is expected in the first quarter of 2022. Cleco Power began collecting this amount through rates on June 1, 2021. For more information on Cleco Power’s storm securitization, see Item 1, “Notes to the Unaudited Condensed Consolidated Financial Statements — Note 17 — Storm Restoration — Storm Securitization.”

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COVID-19

In March 2020, WHO declared the outbreak of COVID-19 to be a global pandemic, and the U.S. declared a national emergency. In response to these declarations and the rapid spread of COVID-19, federal, state and local governments imposed varying degrees of restrictions on business and social activities to contain COVID-19. These restrictions significantly impacted many sectors of the economy with record levels of unemployment driven by businesses, nonprofit organizations, and governmental entities modifying, curtailing, or ceasing normal operations. State and local authorities also subsequently implemented multistep policies to reopen various sectors of the economy such as retail establishments, health and personal care businesses, and restaurants, among others. During March and April 2021, due to the reduction in new COVID-19 cases and hospitalizations and the availability of COVID-19 vaccines, the governor of the state of Louisiana reduced restrictions that were previously in effect, eased capacity limits on businesses and social gatherings, and revoked the mandatory, state-wide mask mandate. However, effective August 4, 2021, the state-wide mask mandate was reinstated due to a surge in COVID-19 cases. Due to the decrease in the number of COVID-19 cases, effective October 27, 2021, the mandatory, state-wide mask mandate was once again revoked.

Cleco is monitoring the ongoing COVID-19 pandemic and continues to adjust certain business practices to conform to government restrictions and best practices encouraged by the CDC, WHO, OSHA, and other governmental and regulatory authorities. The first priority in Cleco’s response to this crisis has been the health and safety of its employees, its customers, and other business counterparties. Cleco has implemented preventative measures and developed corporate response plans to minimize unnecessary risk of exposure and prevent infection, while supporting its customers’ operations to the best of its ability in the circumstances.

On September 9, 2021, the Presidential Administration announced mandatory COVID-19 vaccination plans impacting federal contractors and employees of companies having 100 or more employees. On November 4, 2021, OSHA announced a new emergency temporary standard requiring employers with 100 or more employees to develop, implement, and enforce a mandatory COVID-19 vaccination policy, unless they adopt a policy requiring employees to choose to either be vaccinated or undergo regular COVID-19 testing and wear a face covering at work. Cleco is closely monitoring updates concerning these vaccination mandates and any potential impacts they may have on its businesses and workforce. The impact of these vaccination standards could have an adverse impact on Cleco’s workforce, labor relations, and operations.

Beginning on March 13, 2020, and as a result of an LPSC executive order, Cleco Power suspended the assessment of late fees, disconnections, and the utilization of collection agencies to help customers facing financial challenges related to the COVID-19 pandemic. Cleco resumed disconnections and late fees beginning October 1, 2020, as allowed by the LPSC. On December 4, 2020, Cleco Power made a filing with the LPSC requesting the recovery of the regulatory asset as well as the lost revenue associated with the disconnection fees and incremental costs. At September 30, 2021, Cleco Power had a regulatory asset of $3.0 million for expenses incurred. Cleco expects LPSC approval for the recovery of the regulatory asset in the first half of 2022.

Cleco is also working with its suppliers to understand the potential impacts to its supply chain. Cleco will continue to monitor developments affecting its workforce, customers, and suppliers and take additional precautions as Cleco deems warranted.

Cleco has implemented certain measures that it believes will provide financial flexibility and help maintain its liquidity. While Cleco continues to assess the COVID-19 situation, Cleco cannot predict the full impact that COVID-19 or the significant disruption and volatility currently being experienced in the markets will have on its business, cash flows, liquidity, financial condition, and results of operations. For additional discussion regarding certain risks associated with the COVID-19 pandemic, see Part I, Item 1A, “Risk Factors — Operational Risks — COVID-19” in the Registrants’ Combined Annual Report on Form 10-K for the fiscal year ended December 31, 2020.

Future Tax Reform

Cleco is monitoring the President’s current tax reform proposals, as well as the current proposed infrastructure bill. The proposals have the potential to increase the federal statutory corporate income tax rate from the current rate of 21%. Currently, management is unable to predict the impact of the proposals on the Registrants.

Cleco is also monitoring possible updates related to a decreased Louisiana state corporate income tax rate proposal and a Louisiana state sales tax proposal to be voted on in November 2021.

Cleco Power

Many factors affect Cleco Power’s primary business of generating, delivering, and selling electricity. These factors include weather and the presence of a stable regulatory environment, which impacts the ROE, as well as the recovery of costs related to storms, growing energy demand, and rising fuel prices; the ability to increase energy sales while containing costs; the ability to reliably deliver power to its jurisdictional customers; the ability to comply with increasingly stringent regulatory and environmental standards; and the ability to successfully perform in MISO while subject to the related operating challenges and uncertainties, including increased wholesale competition. Cleco Power’s current key initiatives are continuing construction on the Bayou Vista to Segura Transmission project; continuing the DSMART project; and maintaining and growing its wholesale and retail businesses. These and other initiatives are discussed below.

On June 16, 2021, the LPSC approved Cleco Power’s new retail rate plan. Effective July 1, 2021, under the terms of the new FRP, Cleco Power is allowed to earn a target ROE of 9.5%, while providing the opportunity to earn up to 10.0%. Additionally, 60.0% of retail earnings between 10.0% and 10.5%, and all retail earnings over 10.5%, are required to be refunded to customers. The amount of credits due to customers, if any, is determined by Cleco Power and the LPSC, annually. For more information on the new FRP for Cleco Power, see Item 1, “Notes to the Unaudited Condensed Consolidated Financial Statements — Note 11 — Regulation and Rates — FRP.”

In 2021, a wholesale customer that is currently under contract with Cleco Power through March 31, 2024, conducted a request for proposal for load beginning April 1, 2024, in which Cleco Power participated. In August 2021, the wholesale customer informed Cleco Power that it was not selected as a

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provider of load after the first quarter of 2024 and filed a notice with the LPSC to certify the results of the request for proposal. Cleco Power subsequently filed a notice of intervention with the LPSC requesting further review prior to certifying the wholesale customer’s notice. The certification process is ongoing, and the LPSC procedural schedule extends into the third quarter of 2022. Cleco Power will continue to support the process and cannot predict the outcome of the process. Failure to recontract this or other agreements may affect jurisdictional retail rates that will be subject to review by the LPSC in conjunction with Cleco Power’s next rate case.

Bayou Vista to Segura Transmission Project

The Bayou Vista to Segura Transmission project includes the construction of 48 miles of 230 kilovolt transmission line, a 230/138 kilovolt substation, and three substation expansions in south Louisiana. The project is expected to cost approximately $125.7 million. The project is expected to increase reliability, provide transmission system redundancy, and provide hurricane hardening for customers in south Louisiana. Cleco Power received MISO approval for the project in December 2017. As part of Cleco Power’s new retail rate plan, the LPSC approved the establishment of a regulatory asset and recovery of the revenue requirements associated with the Bayou Vista to Segura Transmission project upon completion of each phase of the project. Construction has already been completed on expansions to existing substations. The northern phase was completed in August 2021, and the southern phase is expected to be completed in the fourth quarter of 2021. At September 30, 2021, Cleco Power had a regulatory asset of $0.3 million for recovery of the revenue requirements for the northern phase of the project. As of September 30, 2021, Cleco Power had spent $108.1 million on the project.

DSMART Project

The DSMART project includes modernization of Cleco Power’s distribution system by replacing or upgrading distribution line equipment utilizing new and emerging technologies to facilitate automatic fault isolation, service restoration, and fault location. The project is expected to provide savings through a reduction in outage restoration time and improve operational efficiencies and time to locate faults. The project is also expected to improve safety and reliability of Cleco Power’s distribution assets by minimizing outage patrols and improving situational awareness in the distribution operations center. The total estimated project cost is $90.2 million. The project implementation will be completed in phases. In January 2019, Cleco Power initiated the project. As of September 30, 2021, Cleco Power had spent $29.1 million on the project.

Other

Cleco Power is working to secure load growth opportunities that include renewing existing franchises and wholesale contracts, pursuing new wholesale contracts and franchises, and adding new retail load opportunities with large industrial, commercial, and residential loads. The retail opportunities include sectors such as agriculture, oil and gas, chemicals, metals, national accounts, government and military, wood and paper, health care, information technology, transportation, and other manufacturing. Failure to renew existing franchises and wholesale contracts could have a material adverse effect on Cleco Power’s results of operations, financial condition, cash flows, and liquidity.

Cleco Cajun

Cleco Cajun has 12 power purchase agreements totaling approximately 2,100 MW with a mixture of cooperatives, municipal bodies, and a utility. Cleco Cajun routinely seeks to grow the amount of power sold pursuant to these existing agreements. These contracts provide Cleco Cajun with predictable cash flow and market risk mitigation through at least the first quarter of 2025 but may prevent Cleco Cajun from taking advantage of rising market rates for power.

In 2020, a group of cooperatives, which are currently under contract with Cleco Cajun through the first quarter of 2025, conducted a request for proposal for load after 2025 in which Cleco Cajun participated. In March 2021, the group of cooperatives informed Cleco Cajun that it was not selected as a provider of load after the first quarter of 2025 and filed a notice with the LPSC to certify the results of the request for proposal. Cleco Cajun subsequently filed a notice of intervention with the LPSC requesting further review prior to certifying the cooperatives’ notice. The certification process is ongoing, and the LPSC procedural schedule extends into the first quarter of 2022. Cleco Cajun continues to advance its position in the process and cannot predict the outcome of the process. Failure to recontract these or other agreements could have a material adverse effect on Cleco’s results of operations, financial condition, cash flows, and liquidity as early as 2025.

In 2021, a separate cooperative, which is currently under contract with Cleco Cajun through the first quarter of 2025, conducted a request for proposal for load after March 27, 2025, in which Cleco Cajun participated. In August 2021, the cooperative informed Cleco Cajun that it was not selected as a provider of load after the first quarter of 2025 and filed a notice with the LPSC requesting certification of the results of the request for proposal. Cleco Cajun subsequently filed a notice of intervention with the LPSC requesting further review prior to the potential certification of the cooperative’s notice. The certification process is ongoing, and the LPSC procedural schedule extends into the third quarter of 2022. Cleco Cajun will continue to support the process and cannot predict the outcome of the process. Failure to recontract this or other agreements could have a material adverse effect on Cleco’s results of operations, financial condition, cash flows, and liquidity as early as 2025.

Many factors affect Cleco Cajun’s primary business of providing wholesale power and capacity. These factors include weather, the market price of power, the sales volume of power through existing contracts, the ability to recontract existing contracts at or before their expiration or enter into new wholesale power agreements with new customers, the ability to comply with increasingly stringent environmental standards, and compliance with the commitments made to the LPSC as a result of the Cleco Cajun Transaction.

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RESULTS OF OPERATIONS

Comparison of the Three Months Ended September 30, 2021, and 2020

Cleco
	FOR THE THREE MONTHS ENDED SEPT. 30,
					FAVORABLE/(UNFAVORABLE)
(THOUSANDS)	2021		2020		VARIANCE		CHANGE
Operating revenue, net	$	517,194	$	417,451	$	99,743	23.9	%
Operating expenses	325,629		295,699		(29,930)		(10.1)	%
Operating income	191,565		121,752		69,813		57.3	%
Interest income	941		910		31		3.4	%
Allowance for equity funds used during construction	711		144		567		393.8	%
Other expense, net	(8,109)		(3,374)		(4,735)		(140.3)	%
Interest charges	34,629		34,060		(569)		(1.7)	%
Federal and state income tax expense	30,569		25,075		(5,494)		(21.9)	%
Net income	$	119,910	$	60,297	$	59,613	98.9	%

Results of operations for Cleco Power and Cleco Cajun are more fully described following the discussion of Cleco’s results of operations.

Operating Revenue, Net

Operating revenue, net increased $99.7 million during the third quarter of 2021 compared to the third quarter of 2020 primarily due to $70.9 million of higher fuel cost recovery revenue, $15.8 million of lower electric customer credits, and $5.0 million of higher other operations revenue at Cleco Power. Also contributing to the increase was $7.5 million of higher electric operations revenue and $3.8 million of higher other operations revenue at Cleco Cajun. These increases were partially offset by $2.7 million of lower base revenue at Cleco Power.

Operating Expenses

Operating expenses increased $29.9 million during the third quarter of 2021 compared to the third quarter of 2020 primarily due to $70.9 million of higher recoverable fuel and purchased power expense, $4.2 million of higher non-recoverable fuel and purchased power expense, $4.1 million of higher other operations and maintenance expense, and $3.3 million of higher depreciation and amortization expense at Cleco Power. Also contributing to the increase was $13.3 million of higher purchased power expense at Cleco Cajun and $3.7 million for the impairment loss on the Cleco Power trade name intangible asset at Cleco Holdings. These increases were partially offset by $73.8 million of lower fuel used for electric generation at Cleco Cajun.

Other Expense, Net

Other expense, net increased $4.7 million during the third quarter of 2021 compared to the third quarter of 2020 primarily due to $3.4 million of higher pension non-service costs at Cleco Power and $1.7 million for the decrease in cash surrender value of certain trust-owned life insurance policies as a result of less favorable market conditions at Cleco Holdings.

Income Taxes

Federal and state income tax expense increased $5.5 million during the third quarter of 2021 compared to the third quarter of 2020 primarily due to $13.5 million for the change in pretax income, excluding AFUDC equity, $3.3 million for state tax expense, and $3.1 million for the flow through of state tax benefits. These increases were partially offset by $11.0 million for adjustments to tax returns as filed, $2.0 million to record tax expense at the projected annual effective tax rate, and $1.3 million for the amortization of excess ADIT.

The estimated annual effective income tax rates used during the third quarter of 2021 and 2020 for Cleco may not be indicative of the full-year income tax rates. For more information on Cleco’s effective income tax rates, see Item 1, “Notes to the Unaudited Condensed Consolidated Financial Statements — Note 9 — Income Taxes — Effective Tax Rates.”

Cleco Power
			FOR THE THREE MONTHS ENDED SEPT. 30,
					FAVORABLE/(UNFAVORABLE)
(THOUSANDS)	2021		2020			VARIANCE		CHANGE
Operating revenue
Base	$	182,928	$	185,597		$	(2,669)	(1.4)	%
Fuel cost recovery	174,156		103,255			70,901		68.7	%
Electric customer credits	(691)		(16,534)			15,843		95.8	%
Other operations	22,779		17,775			5,004		28.2	%
Affiliate revenue	1,380		1,506			(126)		(8.4)	%
Operating revenue, net	380,552		291,599			88,953		30.5	%
Operating expenses
Recoverable fuel and purchased power	174,332		103,426			(70,906)		(68.6)	%
Non-recoverable fuel and purchased power	13,006		8,818			(4,188)		(47.5)	%
Other operations and maintenance	56,720		52,595			(4,125)		(7.8)	%
Depreciation and amortization	43,526		40,268			(3,258)		(8.1)	%
Taxes other than income taxes	12,891		11,408			(1,483)		(13.0)	%
Total operating expenses	300,475		216,515			(83,960)		(38.8)	%
Operating income	80,077		75,084			4,993		6.6	%
Interest income	936		789			147		18.6	%
Allowance for equity funds used during construction	711		144			567		393.8	%
Other expense, net	(6,106)		(3,408)			(2,698)		(79.2)	%
Interest charges	18,509		18,441			(68)		(0.4)	%
Federal and state income tax expense	548		18,076			17,528		97.0	%
Net income	$	56,561	$	36,092		$	20,469	56.7	%

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The following table shows the components of Cleco Power’s retail and wholesale customer sales related to base revenue:

	FOR THE THREE MONTHS ENDED SEPT. 30,
(MILLION kWh)	2021	2020	FAVORABLE/ (UNFAVORABLE)
Electric sales
Residential	1,109	1,159		(4.3)	%
Commercial	738	741		(0.4)	%
Industrial	537	481		11.6	%
Other retail	34	32		6.3	%
Total retail	2,418	2,413		0.2	%
Sales for resale	866	917		(5.6)	%
Total retail and wholesale customer sales	3,284	3,330		(1.4)	%

The following table shows the components of Cleco Power’s base revenue:

	FOR THE THREE MONTHS ENDED SEPT. 30,
(THOUSANDS)	2021		2020		FAVORABLE/ (UNFAVORABLE)
Electric sales
Residential	$	95,368	$	98,236		(2.9)	%
Commercial	48,246		48,539			(0.6)	%
Industrial	22,902		21,470			6.7	%
Other retail	2,928		2,800			4.6	%
Surcharge	—		(2)			100.0	%
Total retail	169,444		171,043			(0.9)	%
Sales for resale	13,484		14,554			(7.4)	%
Total base revenue	$	182,928	$	185,597		(1.4)	%

Cleco Power’s residential customers’ demand for electricity is largely affected by weather. Weather generally is measured in cooling degree-days and heating degree-days. A cooling degree-day is an indication of the likelihood that a consumer will use air conditioning, while a heating degree-day is an indication of the likelihood that a consumer will use heating. An increase in heating degree-days does not produce the same increase in revenue as an increase in cooling degree-days because alternative heating sources are more readily available, and winter energy is typically priced below the rate charged for energy used in the summer. Normal heating degree-days and cooling degree-days are calculated for a month by separately calculating the average actual heating and cooling degree-days for that month over a period of 30 years.

The following chart shows how cooling degree-days varied from normal conditions and from the prior period. Cleco Power uses weather data provided by the National Oceanic and Atmospheric Administration to determine degree-days.

	FOR THE THREE MONTHS ENDED SEPT. 30,
				2021 CHANGE
	2021	2020	NORMAL	PRIOR YEAR		NORMAL
Cooling degree-days	1,591	1,604	1,511	(0.8)	%	5.3	%

Base

Base revenue decreased $2.7 million during the third quarter of 2021 compared to the third quarter of 2020 primarily due to $11.1 million of lower rates as a result of the implementation of Cleco Power’s new retail rate plan. The lower rates are largely

due to TCJA bill credits that will expire in 2024. This decrease was partially offset by $4.6 million of new interim rate recovery for return on certain storm costs relating to Hurricanes Laura, Delta, and Zeta, and $3.6 million of higher revenue due to the absence of impacts from lower usage as a result of Hurricane Laura in 2020.

For information on the effects of future energy sales on the results of operations, financial condition, or cash flows of Cleco Power, see Part I, Item 1A, “Risk Factors — Operational Risks — Future Electricity Sales” in the Registrants’ Combined Annual Report on Form 10-K for the fiscal year ended December 31, 2020.

Fuel Cost Recovery/Recoverable Fuel and Purchased Power

Changes in fuel costs historically have not significantly affected Cleco Power’s net income. Generally, fuel and purchased power expenses are recovered through the LPSC-established FAC, which enables Cleco Power to pass on to its customers substantially all such charges. Approximately 75% of Cleco Power’s total fuel cost during the third quarter of 2021 was regulated by the LPSC. Recovery of FAC costs is subject to periodic fuel audits by the LPSC which may result in a refund to customers. Generally, fuel and purchased power expenses are impacted by customer usage, the per unit cost of fuel used for electric generation, and the dispatch of Cleco Power’s generating facilities by MISO. Cleco Power’s incremental fuel and purchased power costs were impacted significantly as a result of Winter Storms Uri and Viola. On March 29, 2021, Cleco Power received approval from the LPSC to recover a portion of these costs through Cleco Power’s FAC over a period of 12 months beginning in May 2021. Cleco Power’s incremental fuel and purchased power costs were also impacted by higher costs of lignite at the Dolet Hills Power Station. For more information on Cleco Power’s most current fuel audits, see Item 1, “Notes to the Unaudited Condensed Consolidated Financial Statements — Note 13 — Litigation, Other Commitments and Contingencies, and Disclosures about Guarantees — Litigation — LPSC Audits — Fuel Audits.” For more information on lignite costs at the Dolet Hills Power Station, see Item 1, “Notes to the Unaudited Condensed Consolidated Financial Statements — Note 13 — Litigation, Other Commitments and Contingencies, and Disclosures about Guarantees — Litigation — Risks and Uncertainties.”

Electric Customer Credits

Electric customer credits decreased $15.8 million during the third quarter of 2021 compared to the third quarter of 2020 primarily due to lower refunds for the federal tax-related benefits of the TCJA as a result of the settlement of Cleco Power’s retail rate case. For more information on the TCJA, see Item 1, “Notes to the Unaudited Condensed Consolidated Financial Statements — Note 11 — Regulation and Rates — TCJA.”

Other Operations Income

Other operations income increased $5.0 million during the third quarter of 2021 compared to the third quarter of 2020 primarily due to $2.2 million of higher transmission revenue, $1.4 million of higher forfeited discounts, and $0.7 million of higher reconnection fees.

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Non-Recoverable Fuel and Purchased Power

Non-recoverable fuel and purchased power increased $4.2 million during the third quarter of 2021 compared to the third quarter of 2020 primarily due to higher MISO transmission costs.

Other Operations and Maintenance Expense

Other operations and maintenance expense increased $4.1 million during the third quarter of 2021 compared to the third quarter of 2020 primarily due to $3.4 million of higher routine distribution maintenance expense, largely the result of Hurricane Ida, $2.6 million of higher customer services expenses relating to an increase in temporary staffing and increased collection efforts, $1.1 million of higher routine generation maintenance expenses, and $1.2 million of higher generation operations expenses. These amounts were partially offset by $3.1 million of lower expenses related to employee benefits and $1.5 million of lower uncollectible expenses due to collections on the deferred financing arrangements entered into as a result of COVID-19.

Depreciation and Amortization Expense

Depreciation and amortization expense increased $3.3 million during the third quarter of 2021 compared to the third quarter of 2020 primarily due to higher normal recurring additions to fixed assets.

Other expense, net

Other expense, net increased $2.7 million during the third quarter of 2021 compared to the third quarter of 2020 primarily due to higher pension non-service costs as a result of a special termination benefit relating to an enhanced pension benefit amendment. For more information on the enhanced pension benefit amendment, see Item 1, “Notes to the Unaudited Condensed Consolidated Financial Statements — Note 8 — Pension Plan and Employee Benefits — Pension Plan and Other Benefits.”

Income Taxes

Federal and state income tax expense decreased $17.5 million during the third quarter of 2021 compared to the third quarter of 2020 primarily due to $10.7 million for adjustments to tax returns as filed, $8.5 million to record tax expense at the projected annual effective tax rate, and $1.3 million for the amortization of excess ADIT. These decreases were partially offset by $3.1 million for the flow through of state tax benefits.

The estimated annual effective income tax rates used during the third quarter of 2021 and 2020 for Cleco Power may not be indicative of the full-year income tax rates. For more information on Cleco Power’s effective income tax rates, see Item 1, “Notes to the Unaudited Condensed Consolidated Financial Statements — Note 9 — Income Taxes — Effective Tax Rates.”

Cleco Cajun
			FOR THE THREE MONTHS ENDED SEPT. 30,
					FAVORABLE/(UNFAVORABLE)
(THOUSANDS)	2021		2020			VARIANCE		CHANGE
Operating revenue
Electric operations	$	107,500	$	99,956		$	7,544	7.5	%
Other operations	35,158		31,331			3,827		12.2	%
Operating revenue, net	142,658		131,287			11,371		8.7	%
Operating expenses
Fuel used for electric generation	(79,809)		(6,006)			73,803		*
Purchased power	65,382		52,104			(13,278)		(25.5)	%
Other operations and maintenance	24,174		22,205			(1,969)		(8.9)	%
Depreciation and amortization	11,333		10,547			(786)		(7.5)	%
Taxes other than income taxes	3,844		2,320			(1,524)		(65.7)	%
Total operating expenses	24,924		81,170			56,246		69.3	%
Operating income	117,734		50,117			67,617		134.9	%
Interest income	4		10			(6)		(60.0)	%
Other income, net	11		4			7		175.0	%
Interest charges	1,117		(484)			(1,601)		(330.8)	%
Federal and state income tax expense	29,888		12,258			(17,630)		(143.8)	%
Net income	$	86,744	$	38,357		$	48,387	126.1	%
* Not meaningful

Electric Operations

Electric operations revenue increased $7.5 million during the third quarter of 2021 compared to the third quarter of 2020 primarily due to $10.1 million of higher fuel rates, partially offset by $3.1 million for the expiration of a power supply agreement in May 2021.

Other Operations Income

Other operations income increased $3.8 million during the third quarter of 2021 compared to the third quarter of 2020 primarily due to higher transmission revenue from wholesale customers.

Fuel Used for Electric Generation

Fuel used for electric generation decreased $73.8 million during the third quarter of 2021 compared to the third quarter of 2020 primarily due to $65.7 million of higher mark-to-market gains on gas related derivative contracts, $21.7 million of settlements related to gas swaps activity, and $7.5 million of lower natural gas consumption due to higher natural gas prices. These decreases were partially offset by $19.8 million of higher coal consumption which was largely the result of higher generating unit dispatch.

Purchased Power

Purchased power increased $13.3 million during the third quarter of 2021 compared to the third quarter of 2020 primarily due to higher costs of purchased power from MISO and higher usage.

Income Taxes

Federal and state income tax expense increased $17.6 million during the third quarter of 2021 compared to the third quarter of 2020 primarily due to $13.9 million for the change in pretax income and $3.4 million for state tax expense.

The effective income tax rates for the third quarters of 2021 and 2020 were 25.6% and 23.4%, respectively. The

59

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estimated annual effective income tax rates used during the third quarter of 2021 and 2020 for Cleco Cajun may not be indicative of the full-year income tax rates.

Comparison of the Nine Months Ended September 30, 2021, and 2020

Cleco
	FOR THE NINE MONTHS ENDED SEPT. 30,
					FAVORABLE/(UNFAVORABLE)
(THOUSANDS)	2021		2020		VARIANCE		CHANGE
Operating revenue, net	$	1,290,937	$	1,122,782	$	168,155	15.0	%
Operating expenses	929,088		856,170		(72,918)		(8.5)	%
Operating income	361,849		266,612		95,237		35.7	%
Interest income	2,416		2,964		(548)		(18.5)	%
Allowance for equity funds used during construction	2,703		197		2,506		*
Other expense, net	(15,112)		(15,827)		715		4.5	%
Interest charges	101,812		103,923		2,111		2.0	%
Federal and state income tax expense	30,985		40,230		9,245		23.0	%
Net income	$	219,059	$	109,793	$	109,266	99.5	%
*Not meaningful

Results of operations for Cleco Power and Cleco Cajun are more fully described following the discussion of Cleco’s results of operations.

Operating Revenue, Net

Operating revenue, net increased $168.2 million during the nine months ended September 30, 2021, compared to the nine months ended September 30, 2020, primarily due to $132.2 million of higher fuel cost recovery revenue and $8.2 million of higher other operations revenue at Cleco Power. Also contributing to the increase was $26.6 million of higher electric operations income and $5.9 million of higher other operations revenue at Cleco Cajun. These increases were partially offset by $6.5 million of higher electric customer credits at Cleco Power.

Operating Expenses

Operating expenses increased $72.9 million during the nine months ended September 30, 2021, compared to the nine months ended September 30, 2020, primarily due to $131.7 million of higher recoverable fuel and purchased power expense, $3.6 million of higher taxes other than income taxes, and $2.7 million of higher non-recoverable fuel and purchased power expense at Cleco Power. Also contributing to the increase was $52.1 million of higher purchased power expense, $5.5 million of higher other operations and maintenance expense, and $2.6 million of higher depreciation and amortization expense at Cleco Cajun and $3.7 million for the impairment loss on the Cleco Power trade name intangible asset at Cleco Holdings. These increases were partially offset by $125.7 million of lower fuel expense at Cleco Cajun.

Allowance for equity funds used during construction

Allowance for equity funds used during construction increased $2.5 million during the nine months ended September 30, 2021, compared to the nine months ended September 30, 2020, primarily due to higher AFUDC rates driven by the timing of the election of the FERC modified formula authorized in March 2020.

Interest Charges

Interest charges decreased $2.1 million during the nine months ended September 30, 2021, compared to the nine months ended September 30, 2020 primarily due to lower rates on Cleco Holdings’ variable rate debt incurred in connection with the 2016 Merger.

Income Taxes

Federal and state income tax expense decreased $9.2 million during the nine months ended September 30, 2021, compared to the nine months ended September 30, 2020, primarily due to $21.9 million for the amortization of excess ADIT, $11.0 million for adjustments to tax returns as filed, and $5.8 million to record tax expense at the projected annual effective tax rate. These decreases were partially offset by $20.4 million for the change in pretax income, excluding AFUDC equity, $5.5 million for state tax expense, and $3.2 million for the flow through of state tax benefits.

The estimated annual effective income tax rates used during the nine months ended September 30, 2021, and 2020 for Cleco might not be indicative of the full-year income tax rates. For more information on Cleco’s effective income tax rates, see Item 1, “Notes to the Unaudited Condensed Consolidated Financial Statements — Note 9 — Income Taxes — Effective Tax Rates.”

Cleco Power
			FOR THE NINE MONTHS ENDED SEPT. 30,
					FAVORABLE/(UNFAVORABLE)
(THOUSANDS)	2021		2020		VARIANCE		CHANGE
Operating revenue
Base	$	499,653	$	497,589	$	2,064	0.4	%
Fuel cost recovery	387,538		255,336		132,202		51.8	%
Electric customer credits	(40,429)		(33,974)		(6,455)		(19.0)	%
Other operations	57,674		49,443		8,231		16.6	%
Affiliate revenue	4,259		3,852		407		10.6	%
Operating revenue, net	908,695		772,246		136,449		17.7	%
Operating expenses
Recoverable fuel and purchased power	387,730		256,017		(131,713)		(51.4)	%
Non-recoverable fuel and purchased power	26,739		23,996		(2,743)		(11.4)	%
Other operations and maintenance	162,448		164,207		1,759		1.1	%
Depreciation and amortization	126,534		125,541		(993)		(0.8)	%
Taxes other than income taxes	36,707		33,132		(3,575)		(10.8)	%
Total operating expenses	740,158		602,893		(137,265)		(22.8)	%
Operating income	168,537		169,353		(816)		(0.5)	%
Interest income	2,404		2,498		(94)		(3.8)	%
Allowance for equity funds used during construction	2,703		197		2,506		*
Other expense, net	(16,064)		(9,498)		(6,566)		(69.1)	%
Interest charges	55,392		55,624		232		0.4	%
Federal and state income tax (benefit) expense	(219)		30,770		30,989		100.7	%
Net income	$	102,407	$	76,156	$	26,251	34.5	%
* Not meaningful

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The following table shows the components of Cleco Power’s retail and wholesale customer sales related to base revenue:

	FOR THE NINE MONTHS ENDED SEPT. 30,
(Million kWh)	2021	2020	FAVORABLE/ (UNFAVORABLE)
Electric sales
Residential	2,897	2,843		1.9	%
Commercial	1,968	1,959		0.5	%
Industrial	1,564	1,417		10.4	%
Other retail	98	94		4.3	%
Total retail	6,527	6,313		3.4	%
Sales for resale	2,253	2,289		(1.6)	%
Total retail and wholesale customer sales	8,780	8,602		2.1	%

The following table shows the components of Cleco Power’s base revenue:

	FOR THE NINE MONTHS ENDED SEPT. 30,
(THOUSANDS)	2021		2020		FAVORABLE/ (UNFAVORABLE)
Electric sales
Residential	$	241,433	$	239,196		0.9	%
Commercial	142,075		143,516			(1.0)	%
Industrial	65,083		61,220			6.3	%
Other retail	8,380		8,146			2.9	%
Surcharge	—		2,440			(100.0)	%
Total retail	456,971		454,518			0.5	%
Sales for resale	42,682		43,071			(0.9)	%
Total base revenue	$	499,653	$	497,589		0.4	%

The following chart shows how cooling and heating degree-days varied from normal conditions and from the prior period. Cleco Power uses weather data provided by the National Oceanic and Atmospheric Administration to determine degree-days.

			FOR THE NINE MONTHS ENDED SEPT. 30,
				2021 CHANGE
	2021	2020	NORMAL	PRIOR YEAR		NORMAL
Heating degree-days	985	615	942	60.2	%	4.6	%
Cooling degree-days	2,715	2,866	2,531	(5.3)	%	7.3	%

Base

Base revenue increased $2.1 million during the nine months ended September 30, 2021, compared to the nine months ended September 30, 2020, primarily due to $5.9 million of new interim rate recovery for return on certain storm costs relating to Hurricanes Laura, Delta, and Zeta, $4.7 million of higher usage from colder winter weather, and $3.6 million of higher revenue due to the absence of impacts from lower usage as a result of Hurricane Laura in 2020. These increases were partially offset by $10.0 million of lower rates as a result of the implementation of Cleco Power’s new retail rate plan. The lower rates are largely due to TCJA bill credits that will expire in 2024. Also offsetting these increases is the absence of $2.4 million of Cleco Katrina/Rita storm restoration surcharge revenue as a result of the final principal and interest payments on the Cleco Katrina/Rita bonds in March 2020.

For information on the effects of future energy sales on the results of operations, financial condition, or cash flows of Cleco

Power, see Part I, Item 1A, “Risk Factors — Operational Risks — Future Electricity Sales” in the Registrants’ Combined Annual Report on Form 10-K for the fiscal year ended December 31, 2020.

Fuel Cost Recovery/Recoverable Fuel and Purchased Power

Changes in fuel costs historically have not significantly affected Cleco Power’s net income. Generally, fuel and purchased power expenses are recovered through the LPSC-established FAC, which enables Cleco Power to pass on to its customers substantially all such charges. Approximately 74% of Cleco Power’s total fuel cost during the first nine months of 2021 was regulated by the LPSC. Recovery of FAC costs is subject to periodic fuel audits by the LPSC which may result in a refund to customers. Generally, fuel and purchased power expenses are impacted by customer usage, the per unit cost of fuel used for electric generation, and the dispatch of Cleco Power’s generating facilities by MISO. Cleco Power’s incremental fuel and purchased power costs were impacted significantly as a result of Winter Storms Uri and Viola. On March 29, 2021, Cleco Power received approval from the LPSC to recover a portion of these costs through Cleco Power’s FAC over a period of 12 months beginning in May 2021. Cleco Power’s incremental fuel and purchased power costs were also impacted by higher costs of lignite at the Dolet Hills Power Station. For more information on Cleco Power’s most current fuel audits, see Item 1, “Notes to the Unaudited Condensed Consolidated Financial Statements — Note 13 — Litigation, Other Commitments and Contingencies, and Disclosures about Guarantees — Litigation — LPSC Audits — Fuel Audits.” For more information on lignite costs at the Dolet Hills Power Station, see Item 1, “Notes to the Unaudited Condensed Consolidated Financial Statements — Note 13 — Litigation, Other Commitments and Contingencies, and Disclosures about Guarantees — Litigation — Risks and Uncertainties.”

Electric Customer Credits

Electric customer credits increased $6.5 million during the nine months ended September 30, 2021, compared to the nine months ended September 30, 2020, primarily due to higher refunds for the federal tax-related benefits of the TCJA. For more information on the TCJA, see Item 1, “Notes to the Unaudited Condensed Consolidated Financial Statements — Note 11 — Regulation and Rates — TCJA.”

Other Operations Revenue

Other operations revenue increased $8.2 million during the nine months ended September 30, 2021, compared to the nine months ended September 30, 2020, primarily due to $4.5 million of higher transmission revenue, $1.7 million of higher reconnection fees, and $1.6 million of higher forfeited discounts.

Non-Recoverable Fuel and Purchased Power

Non-recoverable fuel and purchased power increased $2.7 million during the nine months ended September 30, 2021, compared to the nine months ended September 30, 2020, primarily due to $1.5 million of higher fuel costs largely due to the winter storms in 2021, and $1.3 million of higher MISO transmission costs.

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Other Operations and Maintenance Expense

Other operations and maintenance expense decreased $1.8 million during the nine months ended September 30, 2021, compared to the nine months ended September 30, 2020, primarily due to $5.9 million of lower fees for outside services mostly relating to START project expenses, audit services, and consulting expenses, $5.6 million of lower expenses related to employee benefits, $2.7 million of lower uncollectible expense due to collections on the deferred financing arrangements entered into as a result of COVID-19, and $1.8 million of lower distribution operations expense. These decreases were partially offset by $6.5 million of higher routine distribution maintenance expenses largely the result of Hurricane Ida and $3.1 million of higher customer service expenses relating to an increase in temporary staffing and increased collection efforts. Also offsetting these decreases were $1.0 million of higher administrative and general maintenance expenses, $0.9 million of higher generating outage maintenance expenses, and $0.8 million of higher generating routine maintenance expenses.

Depreciation and Amortization

Depreciation and amortization expense increased $1.0 million during the nine months ended September 30, 2021, compared to the nine months ended September 30, 2020, primarily due to $3.6 million of higher normal recurring additions to fixed assets, partially offset by $2.2 million for the absence of amortization of storm damages as a result of the final principal and interest payments on the Cleco Katrina/Rita storm recovery bonds in March 2020.

Taxes Other Than Income Taxes

Taxes other than income taxes increased $3.6 million during the nine months ended September 30, 2021, compared to the nine months ended September 30, 2020, primarily due to $1.7 million of higher property taxes and $1.4 million of higher franchise taxes.

Allowance for Equity Funds Used During Construction

Allowance for equity funds used during construction increased $2.5 million during the nine months ended September 30, 2021, compared to the nine months ended September 30, 2020, primarily due to higher AFUDC rates driven by the timing of the election of the FERC modified formula authorized in March 2020.

Other Expense, Net

Other expense, net increased $6.6 million during the nine months ended September 30, 2021, compared to the nine months ended September 30, 2020, primarily due to $5.3 million of higher pension non-service costs as a result of a lower discount rate and a special termination benefit relating to an enhanced pension benefit amendment. Also contributing to the increase was $1.0 million for disallowed costs as a result of the settlement of Cleco Power’s retail rate case. For more information on the enhanced pension benefit amendment, see Item 1, “Notes to the Unaudited Condensed Consolidated Financial Statements — Note 8 — Pension Plan and Employee Benefits — Pension Plan and Other Benefits.”

Income Taxes

Federal and state income tax benefit increased $31.0 million during the nine months ended September 30, 2021, compared to the nine months ended September 30, 2020, primarily due to $21.9 million for the amortization of excess ADIT, $10.7 million for adjustments to tax returns as filed, and $1.7 million

for the change in pretax income, excluding AFUDC equity. These increases were partially offset by $3.2 million for the flow through of state tax benefits.

The estimated annual effective income tax rates used during the nine months ended June 30, 2021, and 2020 for Cleco might not be indicative of the full-year income tax rates. For more information on Cleco Power’s effective income tax rates, see Item 1, “Notes to the Unaudited Condensed Consolidated Financial Statements — Note 9 — Income Taxes — Effective Tax Rates.”

Cleco Cajun
	FOR THE NINE MONTHS ENDED SEPT. 30,
					FAVORABLE/(UNFAVORABLE)
(THOUSANDS)	2021		2020		VARIANCE		CHANGE
Operating revenue
Electric operations	$	300,415	$	273,836	$	26,579	9.7	%
Electric customer credits	244		(153)		397		259.5	%
Other operations	98,851		92,928		5,923		6.4	%
Affiliate revenue	—		204		(204)		(100.0)	%
Operating revenue, net	399,510		366,815		32,695		8.9	%
Operating expenses
Fuel used for electric generation	(112,350)		13,366		125,716		940.6	%
Purchased power	190,825		138,744		(52,081)		(37.5)	%
Other operations and maintenance	68,398		62,894		(5,504)		(8.8)	%
Depreciation and amortization	33,567		30,995		(2,572)		(8.3)	%
Taxes other than income taxes	11,366		9,585		(1,781)		(18.6)	%
Total operating expenses	191,806		255,584		63,778		25.0	%
Operating income	207,704		111,231		96,473		86.7	%
Interest income	10		269		(259)		(96.3)	%
Other (expense) income, net	(648)		82		(730)		(890.2)	%
Interest charges	786		(353)		(1,139)		(100.0)	%
Federal and state income tax expense	52,561		27,280		(25,281)		(92.7)	%
Net income	$	153,719	$	84,655	$	69,064	81.6	%

Electric Operations

Electric operations revenue increased $26.6 million during the nine months ended September 30, 2021, compared to the nine months ended September 30, 2020, primarily due to $16.6 million of higher fuel rates, $5.5 million of higher MISO make-whole payments, $4.8 million of higher load volumes, $3.3 million of higher capacity contract rates, and $1.3 million for the absence of a 2020 customer demand adjustment. These amounts were partially offset by $2.6 million of lower MISO pass-through recoveries and $2.0 million for the expiration of a power supply agreement in May 2021.

Other Operations Revenue

Other operations revenue increased $5.9 million during the nine months ended September 30, 2021, compared to the nine months ended September 30, 2020, primarily due to higher transmission revenue.

Fuel Used for Electric Generation

Fuel used for electric generation decreased $125.7 million during the nine months ended September 30, 2021, compared to the nine months ended September 30, 2020, primarily due

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to $112.3 million of higher mark-to-market gains on gas related derivative contracts, $30.8 million of settlements related to gas swaps activity, and $14.2 million of lower natural gas consumption due to higher natural gas prices. These decreases were partially offset by $28.9 million of higher coal consumption which was largely the result of higher generating unit dispatch.

Purchased Power

Purchased power increased $52.1 million during the nine months ended September 30, 2021, compared to the nine months ended September 30, 2020, primarily due to higher costs of purchased power from MISO largely the result of Winter Storms Uri and Viola and higher usage.

Other Operations and Maintenance Expense

Other operations and maintenance increased $5.5 million during the nine months ended September 30, 2021, compared to the nine months ended September 30, 2020, primarily due to $7.9 million of higher generating outage maintenance expense, partially offset by $2.2 million of lower generation operations expense.

Depreciation and Amortization

Depreciation and amortization increased $2.6 million during the nine months ended September 30, 2021, compared to the nine months ended September 30, 2020, primarily due to normal recurring additions to fixed assets.

Income Taxes

Federal and state income tax expense increased $25.3 million during the nine months ended September 30, 2021, compared to the nine months ended September 30, 2020, primarily due to $19.8 million for the change in pretax income and $5.2 million for state tax expenses.

The effective income tax rates for the nine months ended June 30, 2021, and 2020 were 25.5% and 24.5%, respectively. These estimated annual effective income tax rates for Cleco Cajun may not be indicative of the full-year income tax rates.

Non-GAAP Measure

The financial results in the following tables are presented on an accrual basis. EBITDA is a key non-GAAP financial measure used by the CEO to assess the operating performance of Cleco’s segments; however, it is not indicative of future performance. Management evaluates the performance of Cleco’s segments and allocates resources to them based on segment profit and the requirements to implement strategic initiatives and projects to meet current business objectives. EBITDA is defined as net income adjusted for interest, income taxes, depreciation, and amortization.

The following tables set forth a reconciliation of net income, the nearest comparable GAAP financial performance measure, to EBITDA for the three and nine months ended September 30, 2021, and 2020:

	FOR THE THREE MONTHS ENDED SEPT. 30,
	2021					2020
(THOUSANDS)	CLECO POWER		CLECO CAJUN			CLECO POWER		CLECO CAJUN
Net income	$	56,561	$	86,744		$	36,092	$	38,357
Add: Depreciation and amortization	43,526		12,623		(1)	40,268		11,344		(2)
Less: Interest income	936		4			789		10
Add: Interest charges	18,509		1,117			18,441		(484)
Add: Federal and state income tax (benefit) expense	548		29,888			18,076		12,258
EBITDA	$	118,208	$	130,368		$	112,088	$	61,465
(1) Includes $3.6 million of amortization of intangible assets and liabilities related to wholesale power supply agreements and $(2.3) million of deferred lease revenue amortization as a result of the Cleco Cajun Transaction. (2) Includes $3.1 million of amortization of intangible assets and liabilities related to wholesale power supply agreements and $(2.3) million of deferred lease revenue amortization as a result of the Cleco Cajun Transaction.

	FOR THE NINE MONTHS ENDED SEPT. 30,
	2021					2020
(THOUSANDS)	CLECO POWER		CLECO CAJUN			CLECO POWER		CLECO CAJUN
Net income	$	102,407	$	153,719		$	76,156	$	84,655
Add: Depreciation and amortization	126,534		36,614		(1)	125,541		33,385		(2)
Less: Interest income	2,404		10			2,498		269
Add: Interest charges	55,392		786			55,624		(353)
Add: Federal and state income tax expense	(219)		52,561			30,770		27,280
EBITDA	$	281,710	$	243,670		$	285,593	$	144,698
(1) Includes $10.0 million of amortization of intangible assets and liabilities related to wholesale power supply agreements and $(6.9) million of deferred lease revenue amortization as a result of the Cleco Cajun Transaction. (2) Includes $9.3 million of amortization of intangible assets and liabilities related to wholesale power supply agreements and $(6.9) million of deferred lease revenue amortization as a result of the Cleco Cajun Transaction.

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FINANCIAL CONDITION

Liquidity and Capital Resources

General Considerations and Credit-Related Risks

Credit Ratings and Counterparties

Financing for operational needs and capital expenditure requirements not satisfied by operating cash flows depends upon the cost and availability of external funds through both short- and long-term financing. The inability to raise capital on favorable terms could negatively affect Cleco’s ability to maintain or expand its businesses. Access to funds is dependent upon factors such as general economic and capital market conditions, including the impact of COVID-19, regulatory authorizations and policies, Cleco Holdings’ and Cleco Power’s credit ratings, cash flows from routine operations, and credit ratings of project counterparties. After assessing the current operating performance, liquidity, and credit ratings of Cleco Holdings and Cleco Power, management believes that Cleco will have access to the capital markets at prevailing market rates for companies with comparable credit ratings. The following table presents the credit ratings of Cleco Holdings and Cleco Power at September 30, 2021:

	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

Credit ratings are not recommendations to buy, sell, or hold securities, and may be subject to revision or withdrawal at any time by the assigning rating agency. Each rating should be evaluated independently of any other rating.

Following Hurricane Ida in August 2021, S&P revised its outlook on Cleco Holdings and Cleco Power to negative from stable. This revision was attributable to Cleco Power’s ongoing exposure to severe weather, including hurricanes, S&P’s expectation for weaker financial measures due to delayed recovery of most of the costs related to the 2020 hurricanes, the incurrence of additional costs related to Hurricane Ida, as well as Cleco’s lack of access to public equity markets. S&P expects that financial measures will remain weak until Cleco Power receives authorization from the LPSC to issue storm restoration financing. It is possible that S&P could revise their outlook to stable if Cleco’s financial measures materially strengthen without any weakening in its business risk profile, which may occur upon the completion of the storm restoration costs securitization expected in early 2022. However, the risk of significant weather events may continue to influence rating agencies’ perception of risk, and could potentially impact the thresholds that Cleco Holdings and Cleco Power are held to, which could have subsequent implications for their respective capital structures in the future.

Cleco Holdings and Cleco Power pay fees and interest under their bank credit agreements based on the highest ratings held. If Cleco Holdings’ or Cleco Power’s credit ratings were to be downgraded, Cleco Holdings or Cleco Power, respectively, could be required to pay additional fees and incur higher interest rates for borrowings under their respective revolving credit facilities.

Cleco may be required to provide credit support with respect to any open trading contracts that Cleco has or may initiate in the future. The amount of credit support that Cleco

may be required to provide at any point in the future is dependent on the notional value of the initial contract, changes in forward market prices, changes in the volume of open contracts, changes in credit ratings or credit quality where netting agreements take place, and changes in the amount counterparties owe Cleco. Changes in any of these factors could cause the amount of requested credit support to increase or decrease.

Cleco Power and Cleco Cajun participate in the MISO market. MISO requires Cleco Power and Cleco Cajun to provide credit support which may increase or decrease due to the timing of the settlement schedules and MISO margining formulas. In February 2021, as a result of Winter Storms Uri and Viola, Cleco Power and Cleco Holdings, on behalf of Cleco Cajun, were required to post collateral with MISO. In March 2021, Cleco Power and Cleco Cajun settled with MISO the purchased power obligations associated with Winter Storms Uri and Viola. MISO returned associated collateral postings of $24.9 million and $6.5 million to Cleco Power and Cleco Holdings, respectively. For more information about MISO, see Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Financial Condition — Regulatory and Other Matters — Transmission Rates” in the Registrants’ Combined Annual Report on Form 10-K for the fiscal year ended December 31, 2020. For more information about credit support see Item 1, “Financial Statements and Supplementary Data — Notes to the Financial Statements — Note 13 — Litigation, Other Commitments and Contingencies, and Disclosures about Guarantees.” For more information on Winter Storms Uri and Viola, see Item 1, “Financial Statements and Supplementary Data — Notes to the Financial Statements — Note 17 — Storm Restoration — Winter Storms Uri and Viola.”

Global and U.S. Economic Environment

Global and domestic economic conditions may have an impact on Cleco’s business and financial condition. Access to capital markets is a significant source of funding for both short- and long-term capital requirements not satisfied by operating cash flows. During periods of capital market volatility, the availability of capital could be limited and the costs of capital may increase for many companies. Although the Registrants have not experienced restrictions in the financial markets, their ability to access the capital markets may be restricted at a time when the Registrants would like, or need, to do so. Any restrictions could have a material impact on the Registrants’ ability to fund capital expenditures or debt service, or on their flexibility to react to changing economic and business conditions. Credit constraints could have a material negative impact on the Registrants’ lenders or customers, causing them to fail to meet their obligations to the Registrants or to delay payment of such obligations. The lower interest rates to which the Registrants have been exposed have been beneficial to debt issuances; however, lower rates have negatively affected interest income for the Registrants’ short-term investments.

TCJA

The provisions of the TCJA reduced the top federal statutory corporate income tax rate from 35% to 21%. On June 16, 2021, the LPSC approved Cleco Power’s new retail rate plan, which includes the settlement of the TCJA protected and unprotected excess ADIT. Effective July 1, 2021, all retail customers will continue receiving bill credits resulting from the TCJA. For more information on the regulatory impact of the TCJA, see

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Item 1, “Notes to the Unaudited Condensed Consolidated Financial Statements — Note 11 — Regulation and Rates.”

Fair Value Measurements

Various accounting pronouncements require certain assets and liabilities to be measured at their fair values. Some assets and liabilities are required to be measured at their fair value each reporting period, while others are required to be measured only one time, generally the date of acquisition or debt issuance. Cleco and Cleco Power are required to disclose the fair value of certain assets and liabilities by one of three levels. Other financial assets and liabilities are reported at their carrying values at their date of issuance on the consolidated balance sheets with their fair values as of the balance sheet date disclosed within the three levels. For more information about fair value levels, see Item 1, “Notes to the Unaudited Condensed Consolidated Financial Statements — Note 6 — Fair Value Accounting and Financial Instruments.”

Cash Generation and Cash Requirements

Restricted Cash and Cash Equivalents

Various agreements to which Cleco is subject contain covenants that restrict its use of cash. As certain provisions under these agreements are met, cash is transferred out of related escrow accounts and becomes available for its intended purposes and/or general corporate purposes. For more information on Cleco and Cleco Power’s restricted cash and cash equivalents, see Item 1, “Notes to the Unaudited Condensed Consolidated Financial Statements — Note 1 — Summary of Significant Accounting Policies — Restricted Cash and Cash Equivalents.”

Debt

Cleco

At September 30, 2021, Cleco had no short-term debt outstanding under its $475.0 million revolving credit facilities. Cleco had $75.0 million of short-term debt outstanding at December 31, 2020.

At September 30, 2021, Cleco’s long-term debt and finance leases outstanding totaled $3.55 billion, of which $66.7 million was due within one year. The long-term debt due within one year at September 30, 2021, primarily represents $66.0 million of principal payments on Cleco Holdings’ debt as required by the Cleco Cajun Transaction commitments to the LPSC. Cleco Holdings repaid the $66.0 million of principal payments on October 29, 2021. Long-term debt increased by $318.5 million from December 31, 2020, primarily due to the issuance of $325.0 million floating rate senior notes on September 10, 2021 by Cleco Power. For more information on the senior notes, see Item 1, “Notes to the Unaudited Condensed Consolidated Financial Statements — Note 7 — Debt.”

Cash and cash equivalents available at September 30, 2021, were $273.2 million combined with $475.0 million available revolving credit facility capacity ($175.0 million from Cleco Holdings and $300.0 million from Cleco Power) for total liquidity of $748.2 million. For more information on the credit facility capacity, see “— Credit Facilities.”

At September 30, 2021, Cleco and Cleco Power were exposed to concentrations of credit risk through their short-term investments classified as cash equivalents. In order to mitigate potential credit risk, Cleco and Cleco Power have

established guidelines for short-term investments. For more information on the concentration of credit risk through short-term investments classified as cash equivalents, see Item 1, “Notes to the Unaudited Condensed Consolidated Financial Statements — Note 6 — Fair Value Accounting and Financial Instruments.”

At September 30, 2021, and December 31, 2020, Cleco had a working capital surplus of $413.8 million and $140.3 million, respectively. The $273.5 million increase in working capital is primarily due to:

•a $188.2 million increase in cash and cash equivalents primarily due to the issuance of $325.0 million floating rate senior notes by Cleco Power, partially offset by payments made on Cleco Power’s revolving credit facility,

•a $75.0 million decrease in short-term debt due to repayment of Cleco Power’s revolving credit facility,

•a $50.7 million increase in accumulated deferred fuel, excluding Cleco Power FTRs, primarily due to additional deferrals through a fuel surcharge at Cleco Power for incremental costs related to Winter Storms Uri and Viola,

•a $44.0 million increase in energy risk management assets, excluding Cleco Power FTRs, primarily due to market value changes on gas-related derivative contracts at Cleco Cajun,

•a $31.9 million increase in customer accounts receivable primarily due to an increase in fuel cost recovery mainly due to Winter Storms Uri and Viola, as well as an increase in usage due to the hot weather conditions, partially offset by payments made by Cleco Power’s customers on their payment plans originating in 2020 as a result of COVID-19,

•a $13.8 million increase in other accounts receivable primarily due to the settlement of gas-related derivative contracts at Cleco Cajun, and

•a $12.2 million increase in other current assets primarily due to timing of employee benefit payments.

These increases in working capital were partially offset by:

•a $64.0 million increase in accounts payable, excluding Cleco Power FTR purchases, primarily due to an increase in storm accruals and payables related to the restoration efforts for Hurricane Ida,

•a $39.6 million increase in taxes payable primarily due to accruals of property taxes,

•a $24.0 million increase in interest accrued primarily due to timing of interest payments on long-term debt, and

•a $22.5 million increase in regulatory liabilities primarily due to the reclassification of the short-term portion of the regulatory liability related to the TCJA, partially offset by credits to Cleco Power’s customers for the TCJA refunds.

Cleco Holdings

At September 30, 2021, and December 31, 2020 Cleco Holdings had no short-term debt outstanding.

At September 30, 2021, Cleco Holdings’ long-term debt outstanding was $1.61 billion, of which $66.0 million was due within one year. The long-term debt due within one year at September 30, 2021, represents principal payments on Cleco Holdings’ debt as required by the Cleco Cajun Transaction commitments to the LPSC. Cleco Holdings repaid the $66.0 million of principal payments on October 29, 2021.

At September 30, 2021, Cleco Holdings had no borrowings outstanding under its $175.0 million revolving credit facility. For more information on Cleco Holdings’

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revolving credit facility, see “— Credit Facilities.” Cleco Holdings has an uncommitted line of credit that allows up to $10.0 million in short-term borrowings, but no more than $10.0 million in the aggregate with Cleco Power’s similar line of credit, to support its working capital needs. There were no amounts outstanding under the uncommitted line of credit at September 30, 2021.

Cash and cash equivalents available at Cleco Holdings at September 30, 2021, were $25.4 million, combined with $175.0 million revolving credit facility capacity for total liquidity of $200.4 million.

Cleco Power

At September 30, 2021, Cleco Power had no short-term debt outstanding under its $300.0 million revolving credit facility. For more information on Cleco Power’s revolving credit facility, see “— Credit Facilities.” Cleco Power had $75.0 million short-term debt outstanding at December 31, 2020. Following the restoration efforts for Hurricanes Laura, Delta, Zeta, and Ida, Cleco Power believes it has sufficient liquidity to meet its current obligations using a combination of cash on hand and available capacity under its revolving credit facilities. On August 5, 2021, Cleco Power filed testimony with the LPSC relating to securitization of the final storm costs for Hurricanes Laura, Delta, and Zeta, and Winter Storms Uri and Viola, totaling $342.0 million, which included the establishment of a newly funded $100.0 million storm reserve to cover future storm costs. In addition, on September 28, 2021, Cleco Power made a supplemental filing to its application requesting an additional $100.0 million for a separate storm reserve to cover costs associated with Hurricane Ida. The approval order for the securitization is anticipated in December 2021, with the financing order to follow in January 2022, and the securitization to be complete by March 2022. For more information on Hurricanes Laura, Delta, Zeta, and Ida, see Item 1, “Notes to the Unaudited Condensed Consolidated Financial Statements — Note 17 — Storm Restoration.” Cleco Power has an uncommitted line of credit that allows up to $10.0 million in short-term borrowings, but no more than $10.0 million in the aggregate with Cleco Holdings’ similar line of credit, to support their working capital needs. There were no amounts outstanding under the uncommitted line of credit at September 30, 2021.

On September 10, 2021, Cleco Power completed the issuance and private sale of $325.0 million aggregate principal amount of its floating rate senior notes due June 15, 2023. The proceeds from the issuance were used for general limited liability company purposes, which included the repayment of $245.0 million of borrowings under its revolving credit agreement.

At September 30, 2021, Cleco Power’s long-term debt outstanding was $1.83 billion, of which $0.7 million was due within one year. Cleco Power’s long-term debt increased $323.2 million from December 31, 2020, primarily due to the issuance of $325.0 million floating rate senior notes on September 10, 2021 by Cleco Power. For more information on the senior notes, see Item 1, “Notes to the Unaudited Condensed Consolidated Financial Statements — Note 7 — Debt.”

Cash and cash equivalents available at September 30, 2021, were $156.3 million, combined with $300.0 million revolving credit facility capacity for total liquidity of $456.3 million.

At September 30, 2021, and December 31, 2020, Cleco Power had a working capital surplus of $179.4 million and a surplus of $13.4 million, respectively. The $166.0 million increase in working capital is primarily due to:

•a $131.5 million increase in cash and cash equivalents primarily due to the issuance of $325.0 million floating rate senior notes, partially offset by payments made on the revolving credit facility,

•a $75.0 million decrease in short-term debt due to repayment of the revolving credit facility,

•a $50.7 million increase in accumulated deferred fuel, excluding FTRs, primarily due to additional deferrals through a fuel surcharge for incremental costs related to Winter Storms Uri and Viola,

•a $24.7 million increase in customer accounts receivable primarily due to an increase in fuel cost recovery mainly due to Winter Storms Uri and Viola, as well as an increase in usage due to the hot weather conditions, partially offset by payments made by Cleco Power’s customers on their payment plans originating in 2020 as a result of COVID-19, and

•a $21.3 million increase in fuel inventory primarily due to decreases in usage, as well as higher per unit costs of both lignite and petroleum coke.

These increases in working capital were partially offset by:

•a $69.9 million increase in accounts payable, excluding FTR purchases, primarily due to an increase in storm accruals and payables related to the restoration efforts for Hurricane Ida,

•a $38.2 million increase in taxes payable primarily due to accruals of property taxes,

•a $22.5 million increase in regulatory liabilities primarily due to the reclassification of the short-term portion of the regulatory liability related to the TCJA, partially offset by credits to Cleco Power’s customers for the TCJA refunds, and

•a $15.9 million increase in interest accrued primarily due to timing of interest payments on long-term debt.

Credit Facilities

At September 30, 2021, Cleco had two separate revolving credit facilities, one for Cleco Holdings in the amount of $175.0 million with no outstanding borrowings and one for Cleco Power in the amount of $300.0 million with no outstanding borrowings. These revolving credit agreements were entered into on May 21, 2021, and replaced the respective existing agreements. The total of all revolving credit facilities creates a maximum aggregate capacity of $475.0 million.

Cleco Holdings’ revolving credit facility provides for working capital and other financing needs. The revolving credit facility includes restrictive financial covenants and expires in May 2026. Under covenants contained in Cleco Holdings’ revolving credit facility, Cleco is required to maintain total indebtedness less than or equal to 65% of total capitalization. At September 30, 2021, Cleco Holdings was in compliance with the covenants of its revolving credit facility. At September 30, 2021, the borrowing costs under the facility were equal to LIBOR plus 1.625% or ABR plus 0.625%, plus commitment fees of 0.275%. If Cleco Holdings’ credit ratings were to be downgraded one level by the credit rating agencies, Cleco Holdings may be required to pay incremental interest and

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commitment fees of 0.125% and 0.05%, respectively, under the pricing levels of its revolving credit facility.

Cleco Power’s revolving credit facility provides for working capital and other financing needs. The revolving credit facility includes restrictive financial covenants and expires in May 2026. Under covenants contained in Cleco Power’s revolving credit facility, Cleco Power is required to maintain total indebtedness less than or equal to 65% of total capitalization. At September 30, 2021, Cleco Power was in compliance with the covenants of its revolving credit facility. At September 30, 2021, the borrowing costs under the facility were equal to LIBOR plus 1.25% or ABR plus 0.25%, plus commitment fees of 0.15%. If Cleco Power’s credit ratings were to be downgraded one level by the credit rating agencies, Cleco Power may be required to pay incremental interest and commitment fees of 0.125% and 0.025%, respectively, under the pricing levels of its revolving credit facility.

If Cleco Holdings or Cleco Power were to default under the covenants in their respective revolving credit facilities or other debt agreements, they would be unable to borrow additional funds under the facilities, and the lenders could accelerate all principal and interest outstanding. Further, if Cleco Power were to default under its revolving credit facility or other debt agreements, Cleco Holdings would be considered in default under its revolving credit facility.

Debt and Distribution Limitations

The 2016 Merger Commitments include provisions for limiting the amount of distributions that can be made from Cleco Holdings to Cleco Group, depending on Cleco Holdings’ debt to EBITDA ratio and its corporate credit ratings. Cleco Holdings may not make any distribution unless, after giving effect to such distribution, Cleco Holdings’ debt to EBITDA ratio is equal to or less than 6.50 to 1.00 and Cleco Holdings’ corporate credit rating is investment grade with one or more of the three credit rating agencies. At September 30, 2021, Cleco Holdings was in compliance with the provisions of the 2016 Merger Commitments that would restrict the amount of distributions available. Additionally, in accordance with the 2016 Merger Commitments, Cleco Power is subject to certain provisions limiting the amount of distributions that may be paid to Cleco Holdings, depending on Cleco Power’s common equity ratio and its corporate credit ratings. Cleco Power may not make any distribution unless, after giving effect to such distribution, Cleco Power’s common equity ratio would not be less than 48% and Cleco Power’s corporate credit rating is investment grade with two of the three credit rating agencies. At September 30, 2021, Cleco Power was in compliance with the provisions of the 2016 Merger Commitments that would restrict the amount of distributions available. The 2016 Merger Commitments also prohibit Cleco from incurring additional long-term debt, excluding non-recourse debt, unless certain financial ratios are achieved. For more information on the 2016 Merger Commitments, see Part I, Item 1A, “Risk Factors — Structural Risks — Holding Company” and “— Regulatory Risks — Regulatory Compliance” in the Registrants’ Combined Annual Report on Form 10-K for the fiscal year ended December 31, 2020.

Cleco Consolidated Cash Flows

Net Operating Cash Flow

Net cash provided by operating activities was $139.8 million and $255.1 million during the nine months ended September

30, 2021, and 2020, respectively. Net cash provided by operating activities decreased $115.3 million primarily due to:

•higher fuel costs of $92.5 million at Cleco Power primarily related to accelerated mine closure costs,

•higher recoverable fuel and purchased power costs of $29.9 million primarily associated with Winter Storms Uri and Viola not yet collected from Cleco Power customers,

•lower collections from Cleco Cajun’s customers of $16.4 million due to timing of receipts,

•lower collections from Cleco Cajun’s joint owners of $16.2 million primarily due to timing of receipts for their portions of generating station expenditures,

•lower collections from Cleco Power’s joint owners of $5.1 million primarily due to timing of receipts for their portions of generating station expenditures, and

•the absence of Cleco Katrina/Rita storm restoration surcharge collections from Cleco Power customers of $2.4 million as a result of the final principal and interest payments on the Cleco Katrina/Rita storm recovery bonds in March 2020.

These decreases were partially offset by:

•lower payments for fuel inventory at Cleco Cajun of $36.5 million due to lower coal deliveries,

•lower operations and maintenance payments related to storm restoration activities of $12.5 million at Cleco Power,

•lower payments for fuel inventory at Cleco Power of $4.1 million primarily due to lower gas purchases, and

•lower payments for employee benefits of $3.2 million.

Net Investing Cash Flow

Net cash used in investing activities was $199.1 million and $210.7 million during the nine months ended September 30, 2021, and 2020, respectively. Net cash used in investing activities decreased $11.6 million primarily due to:

•lower additions to property, plant, and equipment, net of AFUDC, of $8.2 million,

•lower returns of equity investment in investees of $1.3 million, and

•higher proceeds from sale of property, plant, and equipment of $1.2 million.

Net Financing Cash Flow

Net cash provided by financing activities was $245.3 million and $347.0 million during the nine months ended September 30, 2021, and 2020, respectively. Net cash provided by financing activities decreased $101.7 million primarily due to:

•higher payments on revolving credit facilities of $260.0 million,

•the absence of borrowing a $125.0 million term loan at Cleco Power in August 2020, and

•lower draws on revolving credit facilities of $53.0 million.

These decreases were partially offset by:

•the issuance of $325.0 million floating rate senior notes at Cleco Power in September 2021 and

•the absence of the final repayment of Cleco Katrina/Rita storm recovery bonds of $11.1 million.

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Cleco Power Cash Flows

Net Operating Cash Flow

Net cash provided by operating activities was $74.7 million and $188.0 million during the nine months ended September 30, 2021, and 2020, respectively. Net cash provided by operating activities decreased $113.3 million primarily due to:

•higher fuel costs of $92.5 million primarily related to accelerated mine closure costs,

•higher recoverable fuel and purchased power costs of $29.9 million primarily associated with Winter Storms Uri and Viola not yet collected from customers,

•lower collections from joint owners of $5.1 million primarily due to timing of receipts for their portions of generating station expenditures,and

•the absence of Cleco Katrina/Rita storm restoration surcharge collections from customers of $2.4 million as a result of the final principal and interest payments on the Cleco Katrina/Rita storm recovery bonds in March 2020.

These decreases were partially offset by:

•lower operations and maintenance payments related to storm restoration activities of $12.5 million and

•lower payments for fuel inventory of $4.1 million primarily due to lower gas purchases.

Net Investing Cash Flow

Net cash used in investing activities was $192.1 million and $200.7 million during the nine months ended September 30, 2021, and 2020, respectively. Net cash used in investing activities decreased $8.6 million primarily due to:

•lower additions to property, plant, and equipment, net of AFUDC, of $5.3 million,

•lower returns of equity investment in investees of $1.3 million, and

•higher proceeds from sale of property, plant, and equipment of $1.2 million.

Net Financing Cash Flow

Net cash provided by financing activities was $246.6 million and $261.9 million during the nine months ended September 30, 2021, and 2020, respectively. Net cash provided by financing activities decreased $15.3 million primarily due to:

•higher payments on revolving credit facilities of $260.0 million,

•the absence of borrowing a $125.0 million term loan in August 2020, and

•lower draws on revolving credit facilities of $53.0 million.

These decreases were partially offset by:

•the issuance of $325.0 million floating rate senior notes in September 2021 and

•the absence of the final repayment of Cleco Katrina/Rita storm recovery bonds of $11.1 million.

Contractual Obligations

Cleco, in the normal course of business activities, enters into a variety of contractual obligations. Some of these result in direct obligations that are reflected in Cleco’s Condensed

Consolidated Balance Sheets while others are commitments, some firm and some based on uncertainties, that are not reflected in the Condensed Consolidated Financial Statements. For more information regarding Cleco’s Contractual Obligations, see Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Financial Condition — Contractual Obligations” in the Registrants’ Combined Annual Report on Form 10-K for the fiscal year ended December 31, 2020.

Off-Balance Sheet Commitments and Guarantees

Cleco Holdings and Cleco Power have entered into various off-balance sheet commitments, in the form of guarantees and standby letters of credit in order to facilitate their activities and the activities of Cleco Holdings’ subsidiaries and equity investees (affiliates). Cleco Holdings and Cleco Power have also agreed to contractual terms that require them to pay third parties if certain triggering events occur. These contractual terms generally are defined as guarantees. For more information about off-balance sheet commitments and on-balance sheet guarantees, see Item 1, “Notes to the Unaudited Condensed Consolidated Financial Statements — Note 13 — Litigation, Other Commitments and Contingencies, and Disclosures about Guarantees — Off-Balance Sheet Commitments and Guarantees.”

Cybersecurity

The operation of Cleco’s electrical systems relies on evolving operational and information technology systems and network infrastructures that are complex. The failure of Cleco or its vendors’ operational and information technology systems and networks due to a physical attack or cyber attack or other event could significantly disrupt operations; cause harm to the public or employees; result in outages or reduced generating output; result in damage to Cleco’s assets or operations, or those of third parties; result in damage to Cleco’s reputation; and subject Cleco to claims by customers or third parties, any of which could have a material adverse effect on the results of operations, financial condition, or cash flows of the Registrants. Cleco continues to assess its cybersecurity tools and processes and has taken a variety of actions to monitor and address cyber-related risks. Cleco’s Chief Information and Supply Chain Officer leads Cleco’s cybersecurity team and oversees Cleco’s cybersecurity maturity plan. Each month, management provides cybersecurity updates to Cleco’s Asset Management Committee. Cleco’s third party providers are susceptible to data breaches, which could potentially allow an attacker to compromise the third party servers on which the products run. Cleco could have potential impacts to the confidentiality, integrity, or availability of its data or systems. The third party providers and Cleco investigate data breach incidents. Past instances have resulted in no negative impacts to Cleco’s confidentiality, integrity, or availability of its data or systems. For more information on risks related to Cleco’s cybersecurity, see Part I, Item 1A, “Risk Factors — Operational Risks — Technology and Terrorism Threats” in the Registrants’ Combined Annual Report on Form 10-K for the fiscal year ended December 31, 2020.

Regulatory and Other Matters

Environmental Matters

Cleco is subject to extensive environmental regulation by federal, state, and local authorities and is required to comply

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with numerous environmental laws and regulations, and to obtain and comply with numerous governmental permits in operating its facilities. In addition, existing environmental laws, regulations, and permits could be revised or reinterpreted; new laws and regulations could be adopted or become applicable to Cleco or its facilities; and future changes in environmental laws and regulations could occur, including potential regulatory and enforcement developments related to air emissions, water and/or waste management. Cleco may incur significant additional costs to comply with these revisions, reinterpretations, and requirements. Cleco Power could then seek recovery of additional environmental compliance costs as riders through the LPSC’s EAC or FRP. If Cleco fails to comply with these revisions, reinterpretations, and requirements, it could be subject to civil or criminal liabilities and fines.

For a discussion of other Cleco environmental matters, see Item 1, “Notes to the Unaudited Condensed Consolidated Financial Statements — Note 13 — Litigation, Other Commitments and Contingencies, and Disclosures about Guarantees — Litigation — LPSC Audits — Environmental Audit” in this Quarterly Report on Form 10-Q and Part I, Item 1, “Business — Environmental Matters” in the Registrants’ Combined Annual Report on Form 10-K for the fiscal year ended December 31, 2020.

Regional Haze State Implementation Plan (SIP)

The Clean Air Act contains a regional haze program with the goal of returning Class I Federal areas of the nation to natural visibility by 2064. States are required to develop a SIP and revise it every ten years. A SIP must include requirements for the installation of Best Available Retrofit Technology (BART) for applicable electrical generating units in Louisiana. The EPA issued a final approval of the Louisiana SIP for the first planning phase in December 2017. Although the approval was appealed to the U.S. Court of Appeals for the Fifth Circuit by multiple organizations, the court denied all the challenges to the EPA’s approval of the Louisiana Regional Haze SIP. Because the Louisiana SIP mandates use of existing controls and participation in the CSAPR as BART, Cleco does not believe the Louisiana SIP will have a material impact on the results of operations, financial condition, or cash flows of the Registrants. The second planning period for the regional haze program covers the period from 2018 through 2028 and requires states to adopt SIPs that make reasonable further progress toward achieving natural visibility conditions in Class I Federal areas. The LDEQ published a proposed SIP for the second planning period in April 2021 for public comment and may be subject to revision upon further review by the LDEQ. The proposal does not call for new controls on any state sources but relies upon existing consent decrees and expected source retirements to achieve reasonable progress in reducing emissions and improving visibility in Class I Federal areas. The SIP for the second planning phase has not been submitted to the EPA. Until the LDEQ determines what the reasonable progress requirements are for Cleco units and completes its update of the SIP and the EPA approves the SIP, Cleco is unable to predict if the second phase SIP will have a material impact on the results of operations, financial condition, or cash flows of the Registrants.

CPP and ACE

On January 19, 2021, the D.C. Circuit Court of Appeals ruled that the EPA’s repeal of the CPP and its 2019 promulgation of ACE were unlawful. Therefore, the court issued an order to

vacate and remand the ACE rule to the EPA. On February 22, 2021, the court granted the EPA’s unopposed motion for a partial stay of the issuance of the mandate on vacating the CPP repeal ordering that it will withhold issuance of the mandate with respect to the vacatur of the CPP repeal until the EPA responds to the court’s remand by promulgating a new rule to regulate greenhouse gas emissions from existing electric generating units. This means that the CPP will not take effect during the EPA’s rulemaking process. In addition, on March 5, 2021, the court issued the partial mandate effectuating the court’s vacatur of the ACE rule which makes effective the court’s decision to vacate the ACE rule. At the end of April 2021, several parties filed petitions for a writ of certiorari asking the U.S. Supreme Court to review the decision by the D.C. Circuit Court of Appeals. On October 29, 2021, the U.S. Supreme Court granted four petitions for certiorari asking the Court to review the decision by the D.C. Circuit Court of Appeals to vacate and remand the ACE Rule.

CSAPR

On September 13, 2019, the D.C. Circuit Court of Appeals partially remanded the CSAPR update rule to the EPA because the rule did not set a deadline by which upwind states must eliminate their significant contribution to downwind states’ National Ambient Air Quality Standards (NAAQS) nonattainment. In response to the remand of the rule, on October 30, 2020, the EPA published a proposed rule in the Federal Register, Revised CSAPR Update for the 2008 ozone NAAQS. On April 30, 2021, the EPA issued in the Federal Register the final rule. Cleco does not foresee the final regulation having a material impact on the results of operations, financial condition, or cash flow of the Registrants.

Water Quality

The Clean Water Act requires the EPA to periodically review and, if appropriate, revise technology-based effluent limitations guidelines for categories of industrial facilities, including power generating facilities.

On October 13, 2020, the EPA published final revisions to the Effluent Limitations Guidelines and Standards for the Steam Electric Power Generating Point Source Category rule (ELG rule) that revised the technology-based effluent limitation guidelines and standards applicable to flue gas desulfurization and bottom ash transport waste waters. The rule also allows a unit to come into compliance with the ELG rule by qualifying as an electric generating unit that will achieve permanent cessation of coal combustion by December 31, 2028. Under this compliance option, Cleco submitted a Notice of Planned Participation by the October 13, 2021, submittal deadline for the Dolet Hills Power Station, Rodemacher Unit 2, and Big Cajun II Unit 1.

Solid Waste Disposal

On January 20, 2021, the President issued an executive order which directs federal agency heads to review regulations and other actions over the past four years to determine if they are inconsistent with the policies announced in the executive order. The administration also released a nonexhaustive list of agency actions to be reviewed, which includes the CCR rules promulgated in July 2018, August 2020, and November 2020. It is now indicated on the EPA coal ash rule website that the EPA completed review of the three CCR rules in response to the executive order. The EPA determined that the most environmentally protective course is to implement these rules.

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For more information on Cleco’s compliance with the coal combustion residual rules, see Note 13 — “Litigation, Other Commitments and Contingencies, and Disclosures about Guarantees — Other Commitments.”

Retail Rates of Cleco Power

Base Rates

Effective July 1, 2021, Cleco Power’s annual retail earnings are subject to an FRP that was approved by the LPSC on June 16, 2021. For more information on the new FRP, see Note 11 — “Regulation and Rates — FRP.”

Fuel Rates

Generally, Cleco Power’s cost of fuel used for electric generation and the cost of purchased power are recovered through the LPSC-established FAC that enables Cleco Power to pass on to its customers substantially all such charges. Recovery of FAC costs is subject to periodic fuel audits by the LPSC. Management is unable to determine the outcome or timing of these audits. For more information on the FAC and the most recent fuel audits, see Item 1, “Notes to the Unaudited Condensed Consolidated Financial Statements — Note 13 — Litigation, Other Commitments and Contingencies, and Disclosures about Guarantees — Litigation — LPSC Audits — Fuel Audits.”

Environmental Rates

In July 2009, the LPSC issued Docket No. U-29380 Subdocket A, which provides Cleco Power an EAC to recover from customers certain costs of environmental compliance. These expenses are eligible for recovery through Cleco Power’s EAC and are subject to periodic review by the LPSC. For more information on the EAC and the most recent environmental audit, see Item 1, “Notes to the Unaudited Condensed Consolidated Financial Statements — Note 13 — Litigation, Other Commitments and Contingencies, and Disclosures about Guarantees — Litigation — LPSC Audits — Environmental Audit.”

Energy Efficiency

In 2013, the LPSC issued a General Order adopting rules promoting energy efficiency programs. Cleco Power began participating in energy efficiency programs in November 2014. Cleco Power has recovered approximately $3.3 million annually for each of the program years through an approved rate tariff. In January 2018, Cleco began recovering an additional $3.3 million annually for estimated costs related to programs specific to political subdivisions.

On June 9, 2021, the LPSC initiated an audit on program years five and six to consider all program costs. Cleco Power has responded to several sets of data requests regarding the audit. Program years seven and thereafter are subject to audit. Management is unable to predict or give a reasonable estimate of the outcome of this or any future audits.

Generally, utility companies are allowed to recover from customers the accumulated decrease in revenues associated with the energy efficiency programs. On October 21, 2019, Cleco Power received notice of approval from the LPSC allowing recovery of the accumulated Lost Contribution to Fixed Cost revenues until base rates reset, which took effect on July 1, 2021.

Wholesale Rates

The rates Cleco, through Cleco Power and Cleco Cajun, charges its wholesale customers are subject to FERC’s triennial market power analysis. FERC requires a utility to pass a screening test as a condition for securing and/or retaining approval to sell electricity in wholesale markets at market-based rates. An updated market power analysis must be filed with FERC every three years or upon the occurrence of a change in status as defined by FERC regulation. Cleco filed its most recent triennial market power analysis on December 23, 2020.

Transmission Rates

Two complaints were filed with FERC seeking to reduce the ROE component of the transmission rates that MISO transmission owners, including Cleco, may collect under the MISO tariff. The complaints covered the period December 2013 through May 2016. For more information about the ROE complaints, see Item 1, “Notes to the Unaudited Condensed Consolidated Financial Statements — Note 13 — Litigation, Other Commitments and Contingencies, and Disclosures about Guarantees — Litigation — Transmission ROE.”

For information about the risks associated with Cleco’s participation in MISO, see Part I, Item 1A, “Risk Factors — Regulatory Risks — MISO” in the Registrants’ Combined Annual Report on Form 10-K for the fiscal year ended December 31, 2020.

For information on transmission rates of Cleco, see Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Financial Condition — Regulatory and Other Matters — Transmission Rates” in the Registrants’ Combined Annual Report on Form 10-K for the fiscal year ended December 31, 2020.

Transmission, Distribution, and Generation Projects

Cleco Power’s significant ongoing projects include the Bayou Vista to Segura Transmission project and the DSMART distribution project. For information on these projects, see “— Overview — Cleco Power.”

Market Restructuring

Wholesale Electric Markets

RTO

For information on Cleco Power’s operations within MISO and for information on regulatory aspects of wholesale electric markets affecting Cleco, see Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Financial Condition — Regulatory and Other Matters — Market Restructuring — Wholesale Electric Markets” in the Registrants’ Combined Annual Report on Form 10-K for the fiscal year ended December 31, 2020.

ERO

The Energy Policy Act of 2005 added Section 215 to the Federal Power Act, which provides for a uniform system of mandatory, enforceable reliability standards. In 2006, FERC named NERC as the ERO that will be required to develop and enforce the mandatory reliability standards.

A NERC Reliability Standards audit is conducted every three years for Cleco Power and Cleco Cajun. The next NERC Reliability Standards audits for Cleco Power and Cleco Cajun are scheduled to begin in 2022.

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A NERC CIP audit is also conducted every three years for Cleco Power and Cleco Cajun. Cleco Power’s current NERC CIP audit was completed on August 14, 2020, and the final report was issued by SERC on November 5, 2020. Cleco Cajun’s most recent CIP audit occurred during June 2019, and the final report was issued by SERC on June 27, 2019. Management is unable to determine the timing of NERC’s approval of the final reports.

Management is also unable to predict the final financial outcome of the most recent CIP audits, any future audits, or whether any findings will have a material adverse effect on the results of operations, financial condition, or cash flows of the Registrants. For a discussion of risks associated with FERC’s regulation of Cleco Power’s transmission system, see Part I, Item 1A, “Risk Factors — Regulatory Risks — Reliability and CIP Standards Compliance” in the Registrants’ Combined Annual Report on Form 10-K for the fiscal year ended December 31, 2020.

Retail Electric Markets

For information on the regulatory aspects of retail electric markets affecting Cleco Power, see Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Financial Condition — Regulatory and Other Matters — Market Restructuring — Retail Electric Markets” in the Registrants’ Combined Annual Report on Form 10-K for the fiscal year ended December 31, 2020.

Integrated Resource Plan (IRP)

On October 20, 2021, Cleco Power filed its request with the LPSC to initiate its next IRP process. Cleco Power is scheduled to file its initial data assumptions to be used in its IRP analysis in February 2022. The IRP process includes conducting stakeholder meetings and receiving feedback from stakeholders with the first stakeholders meeting proposed to take place in March 2022. The IRP report describes how Cleco Power plans to meet its forecasted load requirements on a reliable and economic basis. The IRP is used as a guide in future decision-making and does not represent firm operational commitments.

Franchises

Cleco Power operates under nonexclusive franchise rights granted by governmental units, such as municipalities and parishes (counties), and is enforced by state law. These franchises are for fixed terms, which vary from 10 years to more than 50 years. Historically, Cleco Power has been successful in the timely renewal of substantially all franchises as each neared the end of its term. Cleco Power’s next municipal franchise expires in April 2022.

For more information on franchises, see Part I, Item 1, “Business Regulatory Matters, Industry Developments, and Franchises — Franchises” in the Registrants’ Combined Annual Report on Form 10-K for the fiscal year ended December 31, 2020.

Recent Authoritative Guidance

For a discussion of recent authoritative guidance, see Item 1, “Notes to the Unaudited Condensed Consolidated Financial Statements — Note 2 — Recent Authoritative Guidance.”

CRITICAL ACCOUNTING POLICIES

Cleco’s critical accounting policies include accounting policies that are important to Cleco’s financial condition and results of operations and that require management to make difficult, subjective, or complex judgments about future events, which could result in a material impact to the financial statements of Cleco. The preparation of financial statements contained in this report requires management to make estimates and assumptions. Estimates and assumptions about future events and their effects cannot be made with certainty. These estimates involve judgments regarding many factors that in and of themselves could materially affect the financial statements and disclosures. On an ongoing basis, these estimates and assumptions are evaluated and, if necessary, adjustments are made when warranted by new or updated information or by a change in circumstances or environment. Actual results may differ significantly from these estimates under different assumptions or conditions.

For more information on Cleco’s critical accounting policies, see Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Critical Accounting Policies” in the Registrant’s Combined Annual Report on Form 10-K for the fiscal year ended December 31, 2020.

CLECO POWER — NARRATIVE ANALYSIS OF RESULTS OF OPERATIONS

Cleco Power meets the conditions specified in General Instructions H(1)(a) and (b) to Form 10-Q and is, therefore, permitted to use the reduced disclosure format for wholly owned subsidiaries of reporting companies. Accordingly, Cleco Power has omitted from this report the information called for by Item 2 (Management’s Discussion and Analysis of Financial Condition and Results of Operations) and Item 3 (Quantitative and Qualitative Disclosures about Market Risk) of Part I of Form 10-Q and the following Part II items of Form 10-Q: Item 2 (Unregistered Sales of Equity Securities and Use of Proceeds) and Item 3 (Defaults upon Senior Securities).

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ITEM 3.      QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

RISK OVERVIEW

Cleco is exposed to counterparty credit risk, liquidity risk, interest rate risk, and commodity price risk. Cleco has implemented a governance framework, inclusive of risk policies and procedures to manage these and other risks.

Counterparty Credit Risk

When Cleco enters into commodity derivative or physical commodity transactions directly with market participants, Cleco may be exposed to counterparty credit risk. Cleco is exposed to counterparty credit risk when a counterparty fails to meet their financial obligations causing Cleco to incur replacement cost losses. Cleco may be required to provide credit support or pay liquidated damages with respect to any open trading contracts that Cleco has entered into or may enter into in the future. The amount of credit support that Cleco may be required to provide at any point in the future is dependent on credit terms and thresholds in master agreements, the notional value of the initial contract, changes in the market prices, 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.

Cleco monitors and manages its credit risk exposure through credit risk management policies and procedures that include:

•routine review of counterparty credit quality and credit exposure,

•entering into industry standard master agreements with specific terms and conditions for credit exposure and non-performance,

•measuring expected and potential future exposure regularly, and

•exchanging guarantees or forms of cash equivalent collateral for financial assurance.

For more information, see Item 2, “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Financial Condition — Liquidity and Capital Resources — General Considerations and Credit-Related Risks.”

Liquidity Risk

Access to capital markets is a significant source of funding for both short- and long-term capital requirements not satisfied by operating cash flows. Future actions or inactions of the federal government, including a failure to increase the government debt limit, could increase the actual or perceived risk that the U.S. may not pay its obligations when due and may disrupt financial markets, including capital markets, potentially limiting availability and increasing costs of capital. The inability to raise capital on favorable terms could negatively affect Cleco’s ability to maintain and expand its businesses. After assessing the current operating performance, liquidity, and credit ratings of Cleco Holdings and Cleco Power, management believes that Cleco will have access to the capital markets at prevailing market rates for companies with comparable credit ratings. Cleco Holdings and Cleco Power pay fees and interest under their respective credit facilities based on the highest rating held. For more information, see Item 2, “Management’s

Discussion and Analysis of Financial Condition and Results of Operations — Financial Condition — Liquidity and Capital Resources — General Considerations and Credit-Related Risks.”

Interest Rate Risk

Cleco monitors its mix of fixed- and variable-rate debt obligations in light of changing market conditions and from time to time may alter that mix, for example, refinancing balances outstanding under its variable-rate revolving credit facility with fixed-rate debt. Calculations of the changes in fair market value and interest expense of the debt securities are made over a one-year period.

Sensitivity to changes in interest rates for variable-rate obligations is computed by assuming a 1% change in the current interest rate applicable to such debt.

At September 30, 2021, Cleco Holdings had no short-term debt outstanding under its $175.0 million revolving credit facility. At September 30, 2021, the borrowing costs under Cleco Holdings’ revolving credit facility were equal to LIBOR plus 1.625% or ABR plus 0.625%, plus commitment fees of 0.275%.

At September 30, 2021, Cleco Holdings had a $266.0 million long-term variable rate bank term loan outstanding at an interest rate of LIBOR plus 1.625%, for an all-in interest rate of 1.715%. Each 1% increase in the interest rate applicable to Cleco Holdings’ long-term variable rate debt would result in a decrease in Cleco Holdings’ pretax earnings of $2.7 million on an annualized basis. The weighted average rate for all outstanding term loan debt at Cleco Holdings for the nine months ended September 30, 2021, was 1.87%.

At September 30, 2021, Cleco Power had no short-term debt outstanding under its $300.0 million revolving credit facility. At September 30, 2021, Cleco Power’s borrowing costs under its $300.0 million revolving credit facility were equal to LIBOR plus 1.25% or ABR plus 0.25%, plus commitment fees of 0.15%.

At September 30, 2021, Cleco Power had a $125.0 million long-term variable rate bank term loan outstanding, at an interest rate of LIBOR plus 1.25%, for an all-in interest rate of 1.34%. The weighted average rate for the outstanding term loan debt at Cleco Power for the nine months ended September 30, 2021, was 1.36%.

At September 30, 2021, Cleco Power had $325.0 million long-term floating rate senior notes outstanding. These notes bear interest at a rate of three-month LIBOR plus 50 basis points per annum, for an initial all-in interest rate of 0.616%. The weighted average rate for the outstanding floating rate senior notes at Cleco Power for the nine months ended September 30, 2021, was 0.62%. Each 1% increase in the interest rate applicable to Cleco Power’s long-term variable rate debt would result in a decrease in Cleco Power’s pretax earnings of $4.5 million on an annualized basis.

Each 1% increase in the interest rate applicable to Cleco’s short- and long-term variable rate debt would result in a decrease in Cleco’s pretax earnings of $7.2 million on an annualized basis.

Cleco may enter into contracts to mitigate the volatility in interest rate risk. These contracts include, but are not limited to, interest rate swaps and treasury rate locks. For each

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reporting period presented, the Registrants did not enter into any contracts to mitigate the volatility in interest rate risk.

Commodity Price Risk

Cleco Power and Cleco Cajun’s financial performance can be impacted by changes in commodity prices that impact fuel costs, generation revenues, and customer supply costs and customer revenues. Cleco’s risk management policies and procedures authorize hedging commodity price risk with physical or financially settled derivative instruments within approved guidelines and limits of authority. Some of these transactions may qualify for the normal purchase, normal sale (NPNS) exception under derivative accounting guidance. Contracts that do not qualify for NPNS accounting treatment or are not elected for NPNS accounting treatment are marked-to-market and recorded on the balance sheet at their fair value.

Cleco Power and Cleco Cajun, each separately and individually, may be exposed to transmission congestion price

risk as a result of physical transmission constraints present between MISO LMP nodes when serving customer load. Cleco Power and Cleco Cajun are awarded and/or purchase FTRs in auctions facilitated by MISO. FTRs are accounted for as derivatives not designated as hedging instruments for accounting purposes.

During the nine months ended September 30, 2021, Cleco Cajun entered into gas-related derivative contracts including fixed price physical forwards and financially settled swap transactions. These are included in natural gas derivatives in the following tables.

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, 2021:

Cleco
	DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS
		AT SEPT. 30, 2021
				GROSS AMOUNTS OFFSET ON THE BALANCE SHEET						GROSS AMOUNTS NOT OFFSET ON THE BALANCE SHEET (1)
(THOUSANDS)	BALANCE SHEET LINE ITEM	GROSS ASSET (LIABILITY)		CONTRACT NETTING		COLLATERAL		NET ASSET (LIABILITY) ON THE BALANCE SHEET		COLLATERAL		NET AMOUNT
Commodity-related contracts
FTRs
Current	Energy risk management assets	$	9,338	$	—	$	—	$	9,338	$	—	$	9,338
Current	Energy risk management liabilities	(1,589)		—		—		(1,589)		—		(1,589)
Natural gas derivatives
Current	Energy risk management assets	59,648		(1,283)		(8,900)		49,465		(41,098)		8,367
Non-current	Energy risk management assets	83,427		—		—		83,427		(13,902)		69,525
Current	Energy risk management liabilities	(1,283)		1,283		—		—		—		—
Non-current	Other deferred credits	—		—		—		—		—		—
Commodity-related contracts, net		$	149,541	$	—	$	(8,900)	$	140,641	$	(55,000)	$	85,641

(1) Represents letters of credit by counterparties.

Cleco Power
	DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS
(THOUSANDS)	BALANCE SHEET LINE ITEM	AT SEPT. 30, 2021
Commodity-related contracts
FTRs
Current	Energy risk management assets	$	6,028
Current	Energy risk management liabilities	(1,330)
Commodity-related contracts, net		$	4,698

Cleco monitors the Value at Risk (VaR) of its other commodity derivative contracts requiring derivative accounting treatment. VaR is defined as the minimum expected loss over a given holding period at a given confidence level based on

observable market price volatilities. Cleco uses a parametric variance-covariance model methodology to estimate VaR. VaR is calculated using historical volatilities within a 5-day holding period at a 95% confidence interval. Given Cleco’s reliance on historical data, VaR is effective in estimating risk exposures in markets in which there are no sudden fundamental changes or abnormal shifts in market conditions. An inherent limitation of VaR is that past changes in market risk factors, even when weighted toward more recent observations, may not produce accurate predictions of future market risk. VaR should be evaluated in light of this and the methodology’s other limitations.

The following table presents the VaR of other commodity derivative contracts based on these assumptions:

			FOR THE THREE MONTHS ENDED SEPT. 30, 2021						FOR THE NINE MONTHS ENDED SEPT. 30, 2021
(THOUSANDS)	AT SEPT. 30, 2021		HIGH		LOW		AVERAGE		HIGH		LOW		AVERAGE
Cleco	$	16,393	$	16,393	$	7,685	$	9,846	$	16,393	$	7,199	$	9,318

For more information on the accounting treatment and fair value of FTRs and other commodity derivatives, see Item 1, “Notes to the Unaudited Condensed Consolidated Financial

Statements — Note 6 — Fair Value Accounting and Financial Instruments — Commodity Contracts.

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ITEM 4.     CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

Under the supervision and with the participation of Cleco Holdings and Cleco Power (individually, “Registrant” and collectively, the “Registrants”) management, including the CEO and CFO, the Registrants have evaluated the effectiveness of their disclosure controls and procedures as of September 30, 2021. Based on the evaluations, the CEO and CFO have concluded that the Registrants’ disclosure controls and procedures are effective to ensure that information required to be disclosed by each Registrant in reports that it files or submits under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), is recorded, processed, summarized, and reported within the time periods specified in

SEC rules and forms; and that the Registrants’ disclosure controls and procedures are also effective in ensuring that such information is accumulated and communicated to the Registrants’ management, including the CEO and CFO, as appropriate, to allow timely decisions regarding required disclosure.

Changes in Internal Control over Financial Reporting

There have been no changes in the Registrants’ internal control over financial reporting that occurred during the quarter ended September 30, 2021, that have materially affected, or are reasonably likely to materially affect, the Registrants’ internal control over financial reporting.

74

CLECO
CLECO POWER	2021 3RD QUARTER FORM 10-Q

PART II — OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

CLECO

For information on legal proceedings affecting Cleco, see Part I, Item 1, “Notes to the Unaudited Condensed Consolidated Financial Statements — Note 13 — Litigation, Other Commitments and Contingencies, and Disclosures about Guarantees — Litigation.”

CLECO POWER

For information on legal proceedings affecting Cleco Power, see Part I, Item 1, “Notes to the Unaudited Condensed Consolidated Financial Statements — Note 13 — Litigation, Other Commitments and Contingencies, and Disclosures about Guarantees — Litigation.”

ITEM 1A.      RISK FACTORS

There have been no material changes from the risk factors disclosed in Part I, Item 1A, “Risk Factors” in the Registrants’ Combined Annual Report on Form 10-K for the fiscal year ended December 31, 2020. For risks that could affect actual results and cause results to differ materially from those expressed in any forward-looking statements made by, or on behalf of, the Registrants, see the risk factors disclosed under Part I, Item 1A, “Risk Factors” of the Registrants’ Combined Annual Report on Form 10-K for the fiscal year ended December 31, 2020.

75

CLECO
CLECO POWER	2021 3RD QUARTER FORM 10-Q

ITEM 6.  EXHIBITS
CLECO
4.1	Indenture, dated as of September 10, 2021, by and between Cleco Power LLC and Regions Bank, as trustee (incorporated by reference to Exhibit 4.1 to the Current Report on Form 8-K filed September 10, 2021).
4.2	Supplemental Indenture No. 1, dated as of September 10, 2021, by and between Cleco Power LLC and Regions Bank, as trustee (incorporated by reference to Exhibit 4.2 to the Current Report on Form 8-K filed September 10, 2021).
4.3	Form of Note (included in Supplemental Indenture No. 1, dated as of September 10, 2021, by and between Cleco Power LLC and Regions Bank, as trustee) (incorporated by reference to Exhibit 4.3 to the Current Report on Form 8-K filed September 10, 2021).
31.1	CEO Certification pursuant to section 302 of the Sarbanes-Oxley Act of 2002
31.2	CFO Certification pursuant to section 302 of the Sarbanes-Oxley Act of 2002
32.1	CEO Certification pursuant to section 906 of the Sarbanes-Oxley Act of 2002
32.2	CFO Certification pursuant to section 906 of the Sarbanes-Oxley Act of 2002
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
4.1	Indenture, dated as of September 10, 2021, by and between Cleco Power LLC and Regions Bank, as trustee (incorporated by reference to Exhibit 4.1 to the Current Report on Form 8-K filed September 10, 2021).
4.2	Supplemental Indenture No. 1, dated as of September 10, 2021, by and between Cleco Power LLC and Regions Bank, as trustee (incorporated by reference to Exhibit 4.2 to the Current Report on Form 8-K filed September 10, 2021).
4.3	Form of Note (included in Supplemental Indenture No. 1, dated as of September 10, 2021, by and between Cleco Power LLC and Regions Bank, as trustee) (incorporated by reference to Exhibit 4.3 to the Current Report on Form 8-K filed September 10, 2021).
31.3	CEO Certification pursuant to section 302 of the Sarbanes-Oxley Act of 2002
31.4	CFO Certification pursuant to section 302 of the Sarbanes-Oxley Act of 2002
32.3	CEO Certification pursuant to section 906 of the Sarbanes-Oxley Act of 2002
32.4	CFO Certification pursuant to section 906 of the Sarbanes-Oxley Act of 2002
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)

76

CLECO
CLECO POWER	2021 3RD QUARTER FORM 10-Q

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

CLECO CORPORATE HOLDINGS LLC
(Registrant)
By:	/s/ F. Tonita Laprarie
	F. Tonita Laprarie
	Controller and Chief Accounting Officer

Date: November 5, 2021

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

CLECO POWER LLC
(Registrant)
By:	/s/ F. Tonita Laprarie
	F. Tonita Laprarie
	Controller and Chief Accounting Officer

Date: November 5, 2021

77

EX-31.1

CLECO CORPORATE HOLDINGS LLC EXHIBIT 31.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 302

OF THE SARBANES-OXLEY ACT OF 2002

I, William G. Fontenot, certify that:

1. I have reviewed this quarterly report on Form 10-Q for the quarter ended September 30, 2021, of Cleco Corporate Holdings LLC;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 5, 2021

/s/ William G. Fontenot

William G. Fontenot
President and Chief Executive Officer

EX-31.2

CLECO CORPORATE HOLDINGS LLC EXHIBIT 31.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 302

OF THE SARBANES-OXLEY ACT OF 2002

I, Kristin L. Guillory, certify that:

1. I have reviewed this quarterly report on Form 10-Q for the quarter ended September 30, 2021, of Cleco Corporate Holdings LLC;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 5, 2021

/s/ Kristin L. Guillory

Kristin L. Guillory
Chief Financial Officer

EX-31.3

CLECO POWER LLC          EXHIBIT 31.3

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 302

OF THE SARBANES-OXLEY ACT OF 2002

I, William G. Fontenot, certify that:

1. I have reviewed this quarterly report on Form 10-Q for the quarter ended September 30, 2021, of Cleco Power LLC;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:  November 5, 2021

/s/  William G. Fontenot

William G. Fontenot
Chief Executive Officer

EX-31.4

CLECO POWER LLC          EXHIBIT 31.4

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 302

OF THE SARBANES-OXLEY ACT OF 2002

I, Kristin L. Guillory, certify that:

1. I have reviewed this quarterly report on Form 10-Q for the quarter ended September 30, 2021, of Cleco Power LLC;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 5, 2021

/s/ Kristin L. Guillory

Kristin L. Guillory
Chief Financial Officer

EX-32.1

CLECO CORPORATE HOLDINGS LLC EXHIBIT 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Cleco Corporate Holdings LLC (the “Company”) on Form 10-Q for the quarter ended September 30, 2021, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, William G. Fontenot, President and Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:   November 5, 2021

/s/  William G. Fontenot

William G. Fontenot
President and Chief Executive Officer

EX-32.2

CLECO CORPORATE HOLDINGS LLC EXHIBIT 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Cleco Corporate Holdings LLC (the “Company”) on Form 10-Q for the quarter ended September 30, 2021, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Kristin L. Guillory, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:  November 5, 2021

/s/ Kristin L. Guillory

Kristin L. Guillory
Chief Financial Officer

EX-32.3

CLECO POWER LLC EXHIBIT 32.3

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Cleco Power LLC (the “Company”) on Form 10-Q for the quarter ended
September 30, 2021, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, William G. Fontenot, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:   November 5, 2021

/s/  William G. Fontenot

William G. Fontenot
Chief Executive Officer

EX-32.4

CLECO POWER LLC EXHIBIT 32.4

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Cleco Power LLC (the “Company”) on Form 10-Q for the quarter ended
September 30, 2021, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Kristin L. Guillory, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:  November 5, 2021

/s/ Kristin L. Guillory

Kristin L. Guillory
Chief Financial Officer

XML

Cover Page	9 Months Ended
	Sep. 30, 2021 shares
Entity Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2021
Document Transition Report	false
Entity File Number	1-15759
Entity Registrant Name	CLECO CORPORATE HOLDINGS LLC
Entity Incorporation, State or Country Code	LA
Entity Tax Identification Number	72-1445282
Entity Address, Address Line One	2030 Donahue Ferry Road
Entity Address, City or Town	Pineville
Entity Address, State or Province	LA
Entity Address, Postal Zip Code	71360-5226
City Area Code	318
Local Phone Number	484-7400
Entity Current Reporting Status	No
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding	0
Entity Central Index Key	0001089819
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q3
Amendment Flag	false
CLECO POWER
Entity Information [Line Items]
Entity File Number	1-05663
Entity Registrant Name	CLECO POWER LLC
Entity Incorporation, State or Country Code	LA
Entity Tax Identification Number	72-0244480
Entity Address, Address Line One	2030 Donahue Ferry Road
Entity Address, City or Town	Pineville
Entity Address, State or Province	LA
Entity Address, Postal Zip Code	71360-5226
City Area Code	318
Local Phone Number	484-7400
Entity Filer Category	Non-accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding	0
Entity Central Index Key	0000018672
Current Fiscal Year End Date	--12-31

XML

Condensed Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Operating revenue
Electric operations	$ 462,164	$ 386,388	$ 1,180,345	$ 1,019,501
Other operations	55,721	47,597	150,777	137,407
Affiliate revenue	0	0	0	0
Gross operating revenue	517,885	433,985	1,331,122	1,156,908
Electric customer credits	(691)	(16,534)	(40,185)	(34,126)
Operating revenue, net	517,194	417,451	1,290,937	1,122,782
Operating expenses
Fuel used for electric generation	69,318	74,142	150,620	218,643
Purchased power	101,377	82,690	336,573	208,515
Other operations and maintenance	76,506	71,131	221,486	217,693
Depreciation and amortization	60,628	52,892	169,892	162,852
Taxes other than income taxes	17,766	14,660	50,769	45,233
Merger transaction and commitment costs	34	184	(252)	3,234
Total operating expenses	325,629	295,699	929,088	856,170
Operating income	191,565	121,752	361,849	266,612
Interest income	941	910	2,416	2,964
Allowance for equity funds used during construction	711	144	2,703	197
Other expense, net	(8,109)	(3,374)	(15,112)	(15,827)
Interest charges
Interest charges, net	35,174	34,349	103,092	104,700
Allowance for borrowed funds used during construction	(545)	(289)	(1,280)	(777)
Total interest charges	34,629	34,060	101,812	103,923
Income before income taxes	150,479	85,372	250,044	150,023
Federal and state income tax expense	30,569	25,075	30,985	40,230
Net income	119,910	60,297	219,059	109,793
CLECO POWER
Operating revenue
Electric operations	357,084	288,852	887,191	752,925
Other operations	22,779	17,775	57,674	49,443
Affiliate revenue	1,380	1,506	4,259	3,852
Gross operating revenue	381,243	308,133	949,124	806,220
Electric customer credits	(691)	(16,534)	(40,429)	(33,974)
Operating revenue, net	380,552	291,599	908,695	772,246
Operating expenses
Fuel used for electric generation	149,127	80,148	262,970	205,276
Purchased power	38,211	32,096	151,499	74,737
Other operations and maintenance	56,720	52,595	162,448	164,207
Depreciation and amortization	43,526	40,268	126,534	125,541
Taxes other than income taxes	12,891	11,408	36,707	33,132
Total operating expenses	300,475	216,515	740,158	602,893
Operating income	80,077	75,084	168,537	169,353
Interest income	936	789	2,404	2,498
Allowance for equity funds used during construction	711	144	2,703	197
Other expense, net	(6,106)	(3,408)	(16,064)	(9,498)
Interest charges
Interest charges, net	19,054	18,730	56,672	56,401
Allowance for borrowed funds used during construction	(545)	(289)	(1,280)	(777)
Total interest charges	18,509	18,441	55,392	55,624
Income before income taxes	57,109	54,168	102,188	106,926
Federal and state income tax expense	548	18,076	(219)	30,770
Net income	$ 56,561	$ 36,092	$ 102,407	$ 76,156

XML

Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Net income	$ 119,910	$ 60,297	$ 219,059	$ 109,793
Other comprehensive income, net of tax
Postretirement benefits gain (loss), net of tax expense (benefit)	96	448	304	1,304
Total other comprehensive income (loss), net of tax	96	448	304	1,304
Comprehensive income, net of tax	120,006	60,745	219,363	111,097
CLECO POWER
Net income	56,561	36,092	102,407	76,156
Other comprehensive income, net of tax
Postretirement benefits gain (loss), net of tax expense (benefit)	350	373	1,095	1,218
Amortization of interest rate derivatives to earnings	63	63	191	191
Total other comprehensive income (loss), net of tax	413	436	1,286	1,409
Comprehensive income, net of tax	$ 56,974	$ 36,528	$ 103,693	$ 77,565

XML

Condensed Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Tax (expense) benefit of postretirement benefits gain (loss)	$ (34)	$ (159)	$ (107)	$ (460)
CLECO POWER
Tax (expense) benefit of postretirement benefits gain (loss)	(123)	(132)	(386)	(430)
Tax expense on amortization of interest rate derivatives to earnings	$ 22	$ 22	$ 67	$ 67

XML

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Current assets
Cash and cash equivalents	$ 273,215	$ 84,976
Restricted cash and cash equivalents	2,352	4,545
Customer accounts receivable (less allowance for credit losses)	114,412	82,511
Accounts receivable - affiliate	3,038	1,663
Other accounts receivable	45,887	32,076
Taxes receivable	5,336	0
Unbilled revenue	36,759	40,127
Fuel inventory, at average cost	112,016	109,494
Materials and supplies, at average cost	132,848	132,449
Energy risk management assets	58,803	13,081
Accumulated deferred fuel	78,847	28,194
Cash surrender value of company-/trust-owned life insurance policies	94,361	89,138
Prepayments	15,013	14,549
Regulatory assets	26,495	21,041
Other current assets	23,292	11,048
Total current assets	1,022,674	664,892
Property, plant, and equipment
Property, plant, and equipment	5,596,964	5,337,190
Accumulated depreciation	(887,107)	(672,271)
Net property, plant, and equipment	4,709,857	4,664,919
Construction work in progress	134,130	124,622
Total property, plant, and equipment, net	4,843,987	4,789,541
Equity investment in investee	3,822	9,072
Goodwill	1,490,797	1,490,797
Prepayments	19,974	23,405
Operating lease right of use assets	24,689	26,172
Restricted cash and cash equivalents	745	744
Note receivable	13,941	14,506
Regulatory assets	756,343	554,609
Intangible assets	88,635	111,731
Energy risk management assets	83,427	323
Other deferred charges	46,773	39,777
Total assets	8,395,807	7,725,569
Current liabilities
Short-term debt	0	75,000
Long-term debt and finance leases due within one year	66,736	66,682
Accounts payable	226,785	161,357
Accounts payable - affiliate	41,283	41,283
Customer deposits	60,186	58,718
Provision for rate refund	5,465	9,444
Taxes payable	47,095	7,530
Interest accrued	39,544	15,583
Energy risk management liabilities	1,589	2,453
Regulatory liabilities	46,003	23,509
Deferred compensation	13,695	13,240
Other current liabilities	60,507	49,813
Total current liabilities	608,888	524,612
Long-term liabilities and deferred credits
Accumulated deferred federal and state income taxes, net	734,717	661,376
Postretirement benefit obligations	320,504	314,653
Regulatory liabilities - deferred taxes, net	99,361	157,056
Deferred lease revenue	33,753	40,657
Intangible liabilities	20,257	24,859
Asset retirement obligations	71,390	27,986
Operating lease liabilities	21,739	23,333
Other deferred credits	25,008	28,627
Total long-term liabilities and deferred credits	1,326,729	1,278,547
Long-term debt and finance leases, net	3,483,804	3,165,387
Total liabilities	5,419,421	4,968,546
Commitments and contingencies (Note 13)
Member’s equity
Member’s equity	2,976,386	2,757,023
Total liabilities and member’s equity	8,395,807	7,725,569
CLECO POWER
Current assets
Cash and cash equivalents	156,318	24,846
Restricted cash and cash equivalents	2,352	4,545
Customer accounts receivable (less allowance for credit losses)	68,581	43,852
Accounts receivable - affiliate	13,982	14,605
Other accounts receivable	30,285	27,535
Unbilled revenue	36,759	40,127
Fuel inventory, at average cost	84,534	63,234
Materials and supplies, at average cost	105,090	105,340
Energy risk management assets	6,028	4,337
Accumulated deferred fuel	78,847	28,194
Cash surrender value of company-/trust-owned life insurance policies	16,245	16,184
Prepayments	6,815	7,163
Regulatory assets	18,760	13,305
Other current assets	6,382	830
Total current assets	630,978	394,097
Property, plant, and equipment
Property, plant, and equipment	6,047,103	5,824,378
Accumulated depreciation	(2,242,952)	(2,067,362)
Net property, plant, and equipment	3,804,151	3,757,016
Construction work in progress	128,765	110,613
Total property, plant, and equipment, net	3,932,916	3,867,629
Equity investment in investee	3,822	9,072
Prepayments	1,306	1,496
Operating lease right of use assets	24,642	26,006
Note receivable	13,941	14,506
Regulatory assets	623,820	414,535
Other deferred charges	24,616	38,806
Total assets	5,256,041	4,766,147
Current liabilities
Short-term debt	0	75,000
Long-term debt and finance leases due within one year	736	682
Accounts payable	177,356	106,089
Accounts payable - affiliate	69,356	72,068
Customer deposits	60,186	58,718
Provision for rate refund	5,465	8,630
Taxes payable	42,931	4,778
Interest accrued	21,251	5,357
Energy risk management liabilities	1,330	1,121
Regulatory liabilities	46,003	23,509
Other current liabilities	26,940	24,754
Total current liabilities	451,554	380,706
Long-term liabilities and deferred credits
Accumulated deferred federal and state income taxes, net	670,036	634,598
Postretirement benefit obligations	237,818	230,825
Regulatory liabilities - deferred taxes, net	99,361	157,056
Asset retirement obligations	21,182	11,364
Operating lease liabilities	21,709	23,295
Other deferred credits	17,385	18,167
Total long-term liabilities and deferred credits	1,067,491	1,075,305
Long-term debt and finance leases, net	1,825,424	1,502,257
Total capitalization	3,736,996	3,310,136
Commitments and contingencies (Note 13)
Member’s equity
Member’s equity	1,911,572	1,807,879
Total liabilities and member’s equity	$ 5,256,041	$ 4,766,147

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Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Customer accounts receivable, allowance for credit losses	$ 1,757	$ 2,758
CLECO POWER
Customer accounts receivable, allowance for credit losses	$ 1,757	$ 2,758

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Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2021		Sep. 30, 2020
Operating activities
Net income	$ 219,059		$ 109,793
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization	195,619		185,496
Provision for credit losses	3,106		6,134
Unearned compensation expense	7,068		5,113
Allowance for equity funds used during construction	(2,703)		(197)
Gain on risk management assets and liabilities, net	(136,024)		(23,254)
Deferred lease revenue	(6,904)		(6,904)
Deferred income taxes	36,513		39,657
Cash surrender value of company-/trust-owned life insurance	(5,223)		3,586
Changes in assets and liabilities
Accounts receivable	(56,922)		(14,683)
Accounts receivable, affiliate	(1,375)		(39)
Unbilled revenue	3,368		(1,297)
Fuel inventory and materials and supplies	(3,198)		(26,747)
Prepayments	(8,573)		(12,895)
Accounts payable	(11,680)		(30,633)
Accounts payable - affiliate	0		1,469
Customer deposits	8,295		4,688
Provision for merger commitments	(1,881)		738
Postretirement benefit obligations	6,262		4,654
Regulatory assets and liabilities, net	(95,294)		(12,264)
Deferred fuel recoveries	(50,986)		(21,076)
Other deferred accounts	(9,163)		(13,799)
Taxes accrued	26,864		30,132
Interest accrued	23,961		21,063
Energy risk management collateral received	8,900		0
Other operating	(9,295)		6,344
Net cash provided by operating activities	139,794		255,079
Investing activities
Additions to property, plant, and equipment	(209,960)		(215,692)
Allowance for equity funds used during construction	2,703		197
Proceeds from sale of property, plant, and equipment	1,445		259
Return of equity investment in investee	5,250		4,000
Other investing	1,469		562
Net cash used in investing activities	(199,093)		(210,674)
Financing activities
Draws on revolving credit facility	185,000		238,000
Payments on revolving credit facility	(260,000)		0
Issuances of long-term debt	325,000		125,000
Repayment of long-term debt	0		(11,055)
Payment of financing costs	(4,149)		(4,448)
Other financing	(505)		(456)
Net cash provided by financing activities	245,346		347,041
Net increase in cash, cash equivalents, restricted cash, and restricted cash equivalents	186,047		391,446
Cash, cash equivalents, restricted cash, and restricted cash equivalents at beginning of period	90,265	[1]	142,595
Cash, cash equivalents, restricted cash, and restricted cash equivalents at end of period	276,312	[1]	534,041
Supplementary cash flow information
Interest paid, net of amount capitalized	70,387		73,714
Income taxes paid (refunded), net	205		(2,777)
Supplementary non-cash investing and financing activities
Accrued additions to property, plant, and equipment	45,646		89,604
CLECO POWER
Operating activities
Net income	102,407		76,156
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization	132,986		129,740
Provision for credit losses	3,106		5,746
Unearned compensation expense	1,746		1,135
Allowance for equity funds used during construction	(2,703)		(197)
Deferred income taxes	(1,737)		5,358
Cash surrender value of company-/trust-owned life insurance	(61)		1,418
Changes in assets and liabilities
Accounts receivable	(38,558)		(29,942)
Accounts receivable, affiliate	4,187		3,751
Unbilled revenue	3,368		(1,297)
Fuel inventory and materials and supplies	(21,326)		(9,511)
Prepayments	210		1,107
Accounts payable	(4,067)		(22,666)
Accounts payable - affiliate	(2,389)		1,015
Customer deposits	8,295		4,688
Provision for merger commitments	(1,381)		(1,574)
Postretirement benefit obligations	4,910		2,581
Regulatory assets and liabilities, net	(96,785)		(13,755)
Deferred fuel recoveries	(50,986)		(21,076)
Other deferred accounts	(6,394)		(14,490)
Taxes accrued	30,789		50,638
Interest accrued	15,893		13,589
Other operating	(6,807)		5,573
Net cash provided by operating activities	74,703		187,987
Investing activities
Additions to property, plant, and equipment	(202,940)		(205,765)
Allowance for equity funds used during construction	2,703		197
Proceeds from sale of property, plant, and equipment	1,445		259
Return of equity investment in investee	5,250		4,000
Other investing	1,469		562
Net cash used in investing activities	(192,073)		(200,747)
Financing activities
Draws on revolving credit facility	185,000		150,000
Payments on revolving credit facility	(260,000)		0
Issuances of long-term debt	325,000		125,000
Repayment of long-term debt	0		(11,055)
Payment of financing costs	(2,846)		(1,619)
Other financing	(505)		(456)
Net cash provided by financing activities	246,649		261,870
Net increase in cash, cash equivalents, restricted cash, and restricted cash equivalents	129,279		249,110
Cash, cash equivalents, restricted cash, and restricted cash equivalents at beginning of period	29,391	[2]	80,952
Cash, cash equivalents, restricted cash, and restricted cash equivalents at end of period	158,670	[2]	330,062
Supplementary cash flow information
Interest paid, net of amount capitalized	35,065		34,454
Supplementary non-cash investing and financing activities
Accrued additions to property, plant, and equipment	$ 45,305		$ 88,939

[1] (1) Includes cash and cash equivalents of $84,976, current restricted cash and cash equivalents of $4,545, and non-current restricted cash and cash equivalents of $744. (2) Includes cash and cash equivalents of $273,215, current restricted cash and cash equivalents of $2,352, and non-current restricted cash and cash equivalents of $745.

[2] (1) Includes cash and cash equivalents of $24,846 and current restricted cash and cash equivalents of $4,545. (2) Includes cash and cash equivalents of $156,318 and current restricted cash and cash equivalents of $2,352.

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Condensed Consolidated Statements of Cash Flows (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Cash and cash equivalents	$ 273,215	$ 84,976
Restricted cash and cash equivalents, current	2,352	4,545
Restricted cash and cash equivalents, noncurrent	745	744
CLECO POWER
Cash and cash equivalents	156,318	24,846
Restricted cash and cash equivalents, current	$ 2,352	$ 4,545

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Condensed Consolidated Statements of Changes in Member’s Equity (Unaudited) - USD ($) $ in Thousands	Total	MEMBERSHIP INTEREST	RETAINED EARNINGS	AOCI	CLECO POWER	CLECO POWER MEMBERSHIP INTEREST	CLECO POWER AOCI
Balances, beginning of period at Dec. 31, 2019	$ 2,643,006	$ 2,454,276	$ 206,243	$ (17,513)	$ 1,713,392	$ 1,735,977	$ (22,585)
Increase (Decrease) in Equity [Roll Forward]
Net income	109,793		109,793		76,156	76,156
Other comprehensive income (loss), net of tax	1,304			1,304	1,409		1,409
Balances, end of period at Sep. 30, 2020	2,754,103	2,454,276	316,036	(16,209)	1,790,957	1,812,133	(21,176)
Balances, beginning of period at Jun. 30, 2020	2,693,358	2,454,276	255,739	(16,657)	1,754,429	1,776,041	(21,612)
Increase (Decrease) in Equity [Roll Forward]
Net income	60,297		60,297		36,092	36,092
Other comprehensive income (loss), net of tax	448			448	436		436
Balances, end of period at Sep. 30, 2020	2,754,103	2,454,276	316,036	(16,209)	1,790,957	1,812,133	(21,176)
Balances, beginning of period at Dec. 31, 2020	2,757,023	2,454,276	328,543	(25,796)	1,807,879	1,832,632	(24,753)
Increase (Decrease) in Equity [Roll Forward]
Net income	219,059		219,059		102,407	102,407
Other comprehensive income (loss), net of tax	304			304	1,286		1,286
Balances, end of period at Sep. 30, 2021	2,976,386	2,454,276	547,602	(25,492)	1,911,572	1,935,039	(23,467)
Balances, beginning of period at Jun. 30, 2021	2,856,380	2,454,276	427,692	(25,588)	1,854,598	1,878,478	(23,880)
Increase (Decrease) in Equity [Roll Forward]
Net income	119,910		119,910		56,561	56,561
Other comprehensive income (loss), net of tax	96			96	413		413
Balances, end of period at Sep. 30, 2021	$ 2,976,386	$ 2,454,276	$ 547,602	$ (25,492)	$ 1,911,572	$ 1,935,039	$ (23,467)

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Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2021

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Note 1 — Summary of Significant Accounting Policies

COVID-19 Impacts

In March 2020, WHO declared the outbreak of COVID-19 to be a global pandemic, and the U.S. declared a national emergency. In response to these declarations and the rapid spread of COVID-19, federal, state and local governments imposed varying degrees of restrictions on business and social activities to contain COVID-19, including quarantine and “stay-at-home” orders and directives in Cleco’s service territory. State and local authorities also subsequently implemented multistep policies to reopen various sectors of the economy such as retail establishments, health and personal care businesses, and restaurants, among others. During March and April 2021, due to the reduction in new COVID-19 cases and hospitalizations and the availability of COVID-19 vaccines, the governor of the state of Louisiana reduced restrictions that were previously in effect, eased capacity limits on businesses and social gatherings, and revoked the mandatory, state-wide mask mandate. However, effective August 4, 2021, the state-wide mask mandate was reinstated due to a surge in COVID-19 cases. Due to the decrease in the number of COVID-19 cases, effective October 27, 2021, the mandatory, state-wide mask mandate was once again revoked.

Cleco has modified some of its business operations, as these restrictions have significantly impacted many sectors of the economy. Impacts include record levels of unemployment, with businesses, nonprofit organizations, and governmental entities modifying, curtailing, or ceasing normal operations. Cleco is monitoring the ongoing COVID-19 pandemic and continues to adjust certain business practices to conform to government restrictions and best practices encouraged by the CDC, WHO, OSHA, and other governmental and regulatory authorities. The COVID-19 pandemic may worsen in the U.S. during the upcoming months, which may cause federal, state, and local governments to reconsider restrictions on business and social activities. In the event governments reinstate or

increase restrictions, the reopening of the economy may be further curtailed.

On September 9, 2021, the Presidential Administration announced mandatory COVID-19 vaccination plans impacting federal contractors and employees of companies having 100 or more employees. On November 4, 2021, OSHA announced a new emergency temporary standard requiring employers with 100 or more employees to develop, implement, and enforce a mandatory COVID-19 vaccination policy, unless they adopt a policy requiring employees to choose to either be vaccinated or undergo regular COVID-19 testing and wear a face covering at work. Cleco is closely monitoring updates concerning these vaccination mandates and any potential impacts they may have on its businesses and workforce. The impact of these vaccination standards could have an adverse impact on Cleco’s workforce, labor relations, and operations.

In March 2020, the LPSC issued an executive order prohibiting the disconnection of utilities for nonpayment. At September 30, 2021, Cleco Power had a regulatory asset of $3.0 million recorded for expenses incurred related to the executive order, as allowed by the LPSC. While Cleco continues to assess the COVID-19 situation, Cleco cannot predict the full impact that COVID-19, or the significant disruption and volatility currently being experienced in the markets, will have on its business, cash flows, liquidity, financial condition, and results of operations at this time, due to numerous uncertainties. However, the ultimate impacts will depend on future developments, including, among others, the ultimate geographic spread of COVID-19, the consequences of governmental and other measures designed to prevent the spread of COVID-19, the availability, timely distribution and acceptance of effective treatments and vaccines, the duration of the pandemic, actions taken by governmental authorities, customers, suppliers and other third parties, workforce availability, and the timing and extent to which normal economic and operating conditions resume.

Principles of Consolidation

The accompanying condensed consolidated financial statements of Cleco include the accounts of Cleco and its majority-owned subsidiaries after elimination of intercompany accounts and transactions.

Basis of Presentation

The condensed consolidated financial statements of Cleco and Cleco Power have been prepared in accordance with GAAP for interim financial information and with the instructions to Form 10-Q and Regulation S-X. Accordingly, these condensed consolidated financial statements do not include all of the information and notes required by GAAP for annual financial statements. The year-end condensed consolidated balance sheet data was derived from audited financial statements. Because the interim condensed consolidated financial statements and the accompanying notes do not include all of the information and notes required by GAAP for annual financial statements, the condensed consolidated financial statements and other information included in this Quarterly Report on Form 10-Q should be read in conjunction with the consolidated financial statements and accompanying notes in the Registrants’ Combined Annual Report on Form 10-K for the fiscal year ended December 31, 2020.

These condensed consolidated financial statements, in the opinion of management, reflect all normal recurring adjustments that are necessary for a fair statement of the financial position and results of operations of Cleco and Cleco Power. Amounts reported in Cleco and Cleco Power’s interim financial statements are not necessarily indicative of amounts expected for the annual periods due to the effects of seasonal temperature variations on energy consumption, regulatory rulings, the timing of maintenance on electric generating units, changes in mark-to-market valuations, changing commodity prices, discrete income tax items, and other factors.

In preparing financial statements that conform to GAAP, management must make estimates and assumptions that affect the reported amounts of assets and liabilities, the reported amounts of revenues and expenses, and the disclosure of contingent assets and liabilities at the date of the financial statements. Actual results could differ from those estimates. For information on recent authoritative guidance and its effect on financial results, see Note 2 — “Recent Authoritative Guidance.”

Restricted Cash and Cash Equivalents

Various agreements to which Cleco is subject contain covenants that restrict its use of cash. As certain provisions under these agreements are met, cash is transferred out of related escrow accounts and becomes available for its intended purposes and/or general corporate purposes.

Cleco and Cleco Power’s restricted cash and cash equivalents consisted of the following:

Cleco
(THOUSANDS)	AT SEPT. 30, 2021		AT DEC. 31, 2020
Current
Cleco Katrina/Rita storm recovery surcharge	$	1,674	$	2,626
Cleco Power’s charitable contributions	678		1,718
Cleco Power’s rate credit escrow	—		201
Total current	2,352		4,545
Non-current
Diversified Lands’ mitigation escrow	22		22
Cleco Cajun’s defense fund	723		722
Total non-current	745		744
Total restricted cash and cash equivalents	$	3,097	$	5,289

Cleco Power
(THOUSANDS)	AT SEPT. 30, 2021		AT DEC. 31, 2020
Current
Cleco Katrina/Rita storm recovery surcharge	$	1,674	$	2,626
Charitable contributions	678		1,718
Rate credit escrow	—		201
Total restricted cash and cash equivalents	$	2,352	$	4,545

Prior to the repayment of the storm recovery bonds at their scheduled maturity in March 2020, Cleco Katrina/Rita had the right to bill and collect storm restoration costs from Cleco Power’s customers. As cash was collected, it was restricted for payment of administrative fees, interest, and principal on the storm recovery bonds. In April 2021, after payments for all final administrative and winding up activities of Cleco Katrina/Rita were made, Cleco Katrina/Rita transferred its remaining restricted cash to Cleco Power to be used to benefit retail customers in a manner and timing as approved by the LPSC.

Reserves for Credit Losses

Customer accounts receivable are recorded at the invoiced amount and do not bear interest. Customer accounts receivable are generally considered to become past due 20 days after the billing date. Cleco recognizes write-offs within the allowance for credit losses once all recovery methods have been exhausted. It is the policy of management to review accounts receivable and unbilled revenue monthly using a reserve matrix based on historical bad debt write-offs, as well as current and forecasted economic conditions, to establish a credit loss estimate. Management’s historical credit loss analysis included periods of economic recessions, natural disasters, and temporary changes to collection policies. Due to the critical necessity of electricity, none of these past events have significantly impacted Cleco’s credit loss rates.

Although Cleco’s service territory experienced a recent economic decline during 2020 and 2021, primarily related to the COVID-19 pandemic and weather-related events, the economic outlook at September 30, 2021, was still within range of its historical credit loss analysis.

The tables below present the changes in the allowance for credit losses by receivable for Cleco and Cleco Power:

Cleco
	FOR THE THREE MONTHS ENDED SEPT. 30, 2021						FOR THE NINE MONTHS ENDED SEPT. 30, 2021
(THOUSANDS)	ACCOUNTS RECEIVABLE		OTHER*		TOTAL		ACCOUNTS RECEIVABLE		OTHER*		TOTAL
Balances, beginning of period	$	1,334	$	1,638	$	2,972	$	2,758	$	1,638	$	4,396
Current period provision	567		—		567		3,057		—		3,057
Charge-offs	(730)		—		(730)		(5,172)		—		(5,172)
Recovery	586		—		586		1,114		—		1,114
Balances, Sept. 30, 2021	$	1,757	$	1,638	$	3,395	$	1,757	$	1,638	$	3,395

* Loan held at Diversified Lands that was fully reserved for at September 30, 2021.

	FOR THE THREE MONTHS ENDED SEPT. 30, 2020						FOR THE NINE MONTHS ENDED SEPT. 30, 2020
(THOUSANDS)	ACCOUNTS RECEIVABLE		OTHER*		TOTAL		ACCOUNTS RECEIVABLE		OTHER*		TOTAL
Balances, beginning of period	$	3,486	$	1,638	$	5,124	$	3,005	$	1,250	$	4,255
CECL adoption	—		—		—		71		—		71
Current period provision	2,041		—		2,041		5,675		388		6,063
Charge-offs	—		—		—		(4,091)		—		(4,091)
Recovery	54		—		54		921		—		921
Balances, Sept. 30, 2020	$	5,581	$	1,638	$	7,219	$	5,581	$	1,638	$	7,219

* Loan held at Diversified Lands that was fully reserved for at September 30, 2020.

Cleco Power
	FOR THE THREE MONTHS ENDED SEPT. 30, 2021		FOR THE NINE MONTHS ENDED SEPT. 30, 2021
(THOUSANDS)	ACCOUNTS RECEIVABLE
Balances, beginning of period	$	1,334	$	2,758
Current period provision	567		3,057
Charge-offs	(730)		(5,172)
Recovery	586		1,114
Balances, Sept. 30, 2021	$	1,757	$	1,757

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Recent Authoritative Guidance

9 Months Ended

Sep. 30, 2021

Accounting Changes and Error Corrections [Abstract]

Recent Authoritative Guidance

Note 2 — Recent Authoritative Guidance

In March 2020, FASB issued optional guidance, for a limited period of time, that applies to entities 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 guidance includes 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 optional guidance may be applied from March 12, 2020, through December 31, 2022. Management has identified contracts with reference rates that will be discontinued, primarily related to long-term debt obligations. Certain debt contracts have been amended to include fallback provisions that provide substitute reference rates upon the discontinuance of LIBOR, among other amendments. Management will continue to modify contracts to include

similar fallback language and expects to apply this guidance on an ongoing basis. Management does not expect this guidance to have a significant impact on the Registrants’ results of operations, financial condition, or cash flows.

In December 2019, FASB amended the guidance for accounting for income taxes. The amendments simplify the accounting for income taxes by removing certain exceptions to general principles included in the accounting guidance. Effective January 1, 2021, Cleco adopted the amended accounting guidance. Adoption of this guidance did not materially impact the Registrants’ results of operations, financial condition, or cash flows.

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Leases

9 Months Ended

Sep. 30, 2021

Leases [Abstract]

Leases

Note 3 — 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 is included in Other operations within Cleco’s Condensed Consolidated Statement of Income. Cleco Cajun’s lease income under the Cottonwood Sale Leaseback for the three and nine months ended September 30, 2021, and 2020, was as follows:

	FOR THE THREE MONTHS ENDED SEPT. 30,				FOR THE NINE MONTHS ENDED SEPT. 30,
(THOUSANDS)	2021		2020		2021		2020
Fixed payments	$	10,000	$	10,000	$	30,000	$	30,000
Variable payments	4,938		5,190		15,413		15,950
Amortization of deferred lease liability*	2,301		2,301		6,904		6,904
Total lease income	$	17,239	$	17,491	$	52,317	$	52,854

* Consists of amortization 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.

Leases

Note 3 — 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 is included in Other operations within Cleco’s Condensed Consolidated Statement of Income. Cleco Cajun’s lease income under the Cottonwood Sale Leaseback for the three and nine months ended September 30, 2021, and 2020, was as follows:

	FOR THE THREE MONTHS ENDED SEPT. 30,				FOR THE NINE MONTHS ENDED SEPT. 30,
(THOUSANDS)	2021		2020		2021		2020
Fixed payments	$	10,000	$	10,000	$	30,000	$	30,000
Variable payments	4,938		5,190		15,413		15,950
Amortization of deferred lease liability*	2,301		2,301		6,904		6,904
Total lease income	$	17,239	$	17,491	$	52,317	$	52,854

* Consists of amortization 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.

Leases

Note 3 — 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 is included in Other operations within Cleco’s Condensed Consolidated Statement of Income. Cleco Cajun’s lease income under the Cottonwood Sale Leaseback for the three and nine months ended September 30, 2021, and 2020, was as follows:

	FOR THE THREE MONTHS ENDED SEPT. 30,				FOR THE NINE MONTHS ENDED SEPT. 30,
(THOUSANDS)	2021		2020		2021		2020
Fixed payments	$	10,000	$	10,000	$	30,000	$	30,000
Variable payments	4,938		5,190		15,413		15,950
Amortization of deferred lease liability*	2,301		2,301		6,904		6,904
Total lease income	$	17,239	$	17,491	$	52,317	$	52,854

* Consists of amortization 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.

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Revenue Recognition

9 Months Ended

Sep. 30, 2021

Revenue from Contract with Customer [Abstract]

Revenue Recognition

Note 4 — Revenue Recognition

Operating revenue, net for the three and nine months ended September 30, 2021, and 2020, was as follows:

	FOR THE THREE MONTHS ENDED SEPT. 30, 2021
(THOUSANDS)	CLECO POWER			CLECO CAJUN			OTHER			ELIMINATIONS		TOTAL
Revenue from contracts with customers
Retail revenue
Residential (1)	$	148,522		$	—		$	—		$	—	$	148,522
Commercial (1)	82,711			—			—			—		82,711
Industrial (1)	45,446			—			—			—		45,446
Other retail (1)	4,479			—			—			—		4,479
Electric customer credits	(764)			—			—			—		(764)
Total retail revenue	280,394			—			—			—		280,394
Wholesale, net	74,831		(1)	107,501			(2,420)		(2)	—		179,912
Transmission, net	17,235		(3)	17,903			—			(2,217)		32,921
Other	5,618			—			—			—		5,618
Affiliate (4)	1,380			—			32,116			(33,496)		—
Total revenue from contracts with customers	379,458			125,404			29,696			(35,713)		498,845
Revenue unrelated to contracts with customers
Other	1,094		(5)	17,254		(6)	1			—		18,349
Total revenue unrelated to contracts with customers	1,094			17,254			1			—		18,349
Operating revenue, net	$	380,552		$	142,658		$	29,697		$	(35,713)	$	517,194

(1) Includes fuel recovery revenue.

(2) Amortization of intangible assets related to Cleco Power’s wholesale power supply agreements.

(3) Includes $0.1 million of electric customer credits.

(4) Includes interdepartmental rents and support services. This revenue is eliminated upon consolidation.

(5) Realized gains associated with FTRs.

(6) Includes $14.9 million in lease revenue related to the Cottonwood Sale Leaseback and $2.3 million of deferred lease revenue amortization.

	FOR THE THREE MONTHS ENDED SEPT. 30, 2020
(THOUSANDS)	CLECO POWER			CLECO CAJUN			OTHER			ELIMINATIONS		TOTAL
Revenue from contracts with customers
Retail revenue
Residential (1)	$	128,981		$	—		$	—		$	—	$	128,981
Commercial (1)	68,220			—			—			—		68,220
Industrial (1)	32,809			—			—			—		32,809
Other retail (1)	3,614			—			—			—		3,614
Electric customer credits	(16,534)			—			—			—		(16,534)
Total retail revenue	217,090			—			—			—		217,090
Wholesale, net	52,216		(1)	99,956			(2,420)		(2)	—		149,752
Transmission, net	14,656			13,818			—			(1,510)		26,964
Other	3,118			—			—			—		3,118
Affiliate (3)	1,506			—			35,522			(37,028)		—
Total revenue from contracts with customers	288,586			113,774			33,102			(38,538)		396,924
Revenue unrelated to contracts with customers
Other	3,013		(4)	17,513		(5)	1			—		20,527
Total revenue unrelated to contracts with customers	3,013			17,513			1			—		20,527
Operating revenue, net	$	291,599		$	131,287		$	33,103		$	(38,538)	$	417,451

(1) Includes fuel recovery revenue.

(2) Amortization of intangible assets related to Cleco Power’s wholesale power supply agreements.

(3) Includes interdepartmental rents and support services. This revenue is eliminated upon consolidation.

(4) Realized gains associated with FTRs.

(5) Includes $15.2 million in lease revenue related to the Cottonwood Sale Leaseback and $2.3 million of deferred lease revenue amortization.

	FOR THE NINE MONTHS ENDED SEPT. 30, 2021
(THOUSANDS)	CLECO POWER			CLECO CAJUN			OTHER			ELIMINATIONS		TOTAL
Revenue from contracts with customers
Retail revenue
Residential (1)	$	348,918		$	—		$	—		$	—	$	348,918
Commercial (1)	214,129			—			—			—		214,129
Industrial (1)	119,497			—			—			—		119,497
Other retail (1)	11,925			—			—			—		11,925
Electric customer credits	(40,794)			—			—			—		(40,794)
Total retail revenue	653,675			—			—			—		653,675
Wholesale, net	182,769		(1)	300,415			(7,260)		(2)	—		475,924
Transmission, net	44,530		(3)	46,733		(4)	—			(5,752)		85,511
Other	13,509			—			—			(1)		13,508
Affiliate (5)	4,259			—			85,392			(89,651)		—
Total revenue from contracts with customers	898,742			347,148			78,132			(95,404)		1,228,618
Revenue unrelated to contracts with customers
Other	9,953		(6)	52,362		(7)	4			—		62,319
Total revenue unrelated to contracts with customers	9,953			52,362			4			—		62,319
Operating revenue, net	$	908,695		$	399,510		$	78,136		$	(95,404)	$	1,290,937

(1) Includes fuel recovery revenue.

(2) Amortization of intangible assets related to Cleco Power’s wholesale power supply agreements.

(3) Includes $0.4 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) Realized gains associated with FTRs.

(7) Includes $45.4 million in lease revenue related to the Cottonwood Sale Leaseback and $6.9 million of deferred lease revenue amortization.

	FOR THE NINE MONTHS ENDED SEPT. 30, 2020
(THOUSANDS)	CLECO POWER			CLECO CAJUN			OTHER			ELIMINATIONS		TOTAL
Revenue from contracts with customers
Retail revenue
Residential (1)	$	308,525		$	—		$	—		$	—	$	308,525
Commercial (1)	190,905			—			—			—		190,905
Industrial (1)	94,227			—			—			—		94,227
Other retail (1)	10,416			—			—			—		10,416
Surcharge	2,440			—			—			—		2,440
Electric customer credits	(33,219)			—			—			—		(33,219)
Total retail revenue	573,294			—			—			—		573,294
Wholesale, net	140,139		(1)	273,836			(7,260)		(2)	—		406,715
Transmission, net	38,273		(3)	39,880		(4)	—			(4,966)		73,187
Other	10,416			—			—			1		10,417
Affiliate (5)	3,852			204			93,938			(97,994)		—
Total revenue from contracts with customers	765,974			313,920			86,678			(102,959)		1,063,613
Revenue unrelated to contracts with customers
Other	6,272		(6)	52,895		(7)	2			—		59,169
Total revenue unrelated to contracts with customers	6,272			52,895			2			—		59,169
Operating revenue, net	$	772,246		$	366,815		$	86,680		$	(102,959)	$	1,122,782

(1) Includes fuel recovery revenue.

(2) Amortization of intangible assets related to Cleco Power’s wholesale power supply agreements.

(3) Includes $0.8 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) Realized gains associated with FTRs.

(7) Includes $46.0 million in lease revenue related to the Cottonwood Sale Leaseback and $6.9 million of deferred lease revenue amortization.

Cleco and Cleco Power have unsatisfied performance obligations under contracts with cooperatives and municipalities with durations ranging between 1 and 14 years that primarily relate to stand-ready obligations as part of fixed capacity minimums. At September 30, 2021, Cleco and Cleco Power had $65.7 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.

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Regulatory Assets and Liabilities

9 Months Ended

Sep. 30, 2021

Regulated Operations [Abstract]

Regulatory Assets and Liabilities

Note 5 — Regulatory Assets and Liabilities

Cleco Power capitalizes or defers certain costs for recovery from customers and recognizes a liability for amounts expected to be returned to customers based on regulatory approval and management’s ongoing assessment that it is probable these items will be recovered or refunded through the ratemaking process.

Under the current regulatory environment, Cleco Power believes these regulatory assets will be fully recoverable; however, if in the future, as a result of regulatory changes or

competition, Cleco Power’s ability to recover these regulatory assets would no longer be probable, then to the extent that such regulatory assets were determined not to be recoverable, Cleco Power would be required to write-down such assets. In addition, potential deregulation of the industry, or possible future changes in the method of rate regulation of Cleco Power, could require discontinuance of the application of the authoritative guidance on regulated operations.

The following table summarizes Cleco Power’s regulatory assets and liabilities:

Cleco Power
					REMAINING RECOVERY PERIOD (YRS.)
(THOUSANDS)	AT SEPT. 30, 2021		AT DEC. 31, 2020
Regulatory assets
Acadia Unit 1 acquisition costs	$	1,939	$	2,019	18.5
Accumulated deferred fuel (1)	78,847		28,194		Various	(2)
AFUDC equity gross-up	67,348		69,670		Various	(3)
Affordability study	13,438		—		10
AMI deferred revenue requirement	2,181		2,591		4
AROs (1)(7)	8,060		5,488
Bayou Vista to Segura deferred revenue requirement (7)	287		—
Coughlin transaction costs	853		876		28
COVID-19 executive order (7)	2,953		2,953
Deferred storm restoration costs - Hurricane Delta (7)	17,866		17,051
Deferred storm restoration costs - Hurricane Ida (7)	36,836		—
Deferred storm restoration costs - Hurricane Laura (7)	56,815		54,406
Deferred storm restoration costs - Hurricane Zeta (7)	3,496		3,493
Deferred storm restoration costs - Winter Storms Uri & Viola (7)	1,974		—
Dolet Hills Power Station closure costs (7)	112,158		48,982
Emergency declarations	—		270		—
Energy efficiency	1,998		2,820		1.5
Financing costs (1)	6,919		7,184		Various	(4)
Interest costs	3,521		3,708		Various	(3)
Lignite Mine closure costs (7)	93,093		—
Madison Unit 3 property taxes (7)	6,272		—
Non-service cost of postretirement benefits	11,662		9,901		Various	(3)
Other	13,247		4,229		Various	(2)
Postretirement costs	149,883		165,437		Various	(5)
Production operations and maintenance expenses	1,998		4,058		Various	(6)
Rodemacher Unit 2 deferred costs (7)	5,519		1,333
St. Mary Clean Energy Center	6,524		3,479		4
Training costs	5,968		6,085		38.5
Tree trimming costs	9,771		11,807		3.5
Total regulatory assets	721,426		456,034
Regulatory liabilities
AFUDC (7)	(6,500)		(4,218)
Corporate franchise tax, net	—		(763)		—
Deferred taxes, net	(138,864)		(175,584)		Various
Total regulatory liabilities	(145,364)		(180,565)
Total regulatory assets, net	$	576,062	$	275,469
(1) Represents regulatory assets for past expenditures that were not earning a return on investment at September 30, 2021, and December 31, 2020, respectively. All other assets are earning a return on investment. (2) For more information related to the remaining recovery period, refer to the following disclosures for each specific regulatory asset or liability. (3) Amortized over the estimated lives of the respective assets. (4) Amortized over the terms of the related debt issuances. (5) Amortized over the average service life of the remaining plan participants. (6) Deferral is recovered over the following three year regulatory period. (7) Currently not in a recovery period.

The following table summarizes Cleco’s net regulatory assets and liabilities:

Cleco
(THOUSANDS)	AT SEPT. 30, 2021		AT DEC. 31, 2020
Total Cleco Power regulatory assets, net	$	576,062	$	275,469
2016 Merger adjustments *
Fair value of long-term debt	114,001		119,553
Postretirement costs	13,921		15,411
Financing costs	7,334		7,592
Debt issuance costs	5,004		5,254
Total Cleco regulatory assets, net	$	716,322	$	423,279

* Cleco regulatory assets include acquisition accounting adjustments as a result of the 2016 Merger.

Accumulated Deferred Fuel

In February 2021, Winter Storms Uri and Viola moved through Louisiana causing substantial damage to Cleco’s distribution assets, electricity generation supply shortages, natural gas supply shortages, and increases in wholesale prices of natural gas in the U.S., primarily due to prolonged freezing temperatures. Incremental fuel and purchased power costs were incurred as a result of the winter storms. On March 29, 2021, Cleco Power received approval from the LPSC to defer $50.0 million of these costs and recover them over 12 months through Cleco Power’s FAC beginning in May 2021. For more information about the incremental fuel and purchased power costs related to Winter Storms Uri and Viola, see Note 17 — “Storm Restoration — Winter Storms Uri and Viola.”

Higher lignite and natural gas costs also contributed to the increase in Cleco Power’s accumulated deferred fuel.

Affordability Study

On June 16, 2021, the LPSC approved Cleco Power’s new retail rate plan. As a result, Cleco Power was allowed to establish a regulatory asset of $13.6 million related to outside consulting fees for the assessment of Cleco Power’s practices and assistance in the identification of potential cost savings opportunities, while maintaining superior levels of employee safety, reliability, customer service, environmental stewardship, community involvement, and regulatory transparency. The regulatory asset is being amortized over 10 years beginning July 1, 2021.

Bayou Vista To Segura Deferred Revenue Requirement

On June 16, 2021, the LPSC approved Cleco Power’s new retail rate plan. As a result, Cleco Power was allowed to establish a regulatory asset and recover the revenue requirements, including interest at Cleco Power’s weighted average cost of capital, upon the completion of each phase of the Bayou Vista to Segura Transmission project. The northern phase of the project was completed in August 2021. At September 30, 2021, Cleco Power had a regulatory asset of $0.3 million related to deferred revenue associated with the northern phase of the Bayou Vista to Segura Transmission project. The regulatory asset will be amortized over 12 months beginning July 1, 2022.

Deferred Storm Restoration Costs — Hurricane Ida

On August 29, 2021, Hurricane Ida made landfall in southeast Louisiana as a Category 4 storm, causing power outages for approximately 100,000 of Cleco Power’s electric customers located primarily in southeastern Louisiana.

On September 22, 2021, the LPSC approved Cleco Power’s establishment of a regulatory asset to track and defer non-capital expenses associated with the hurricane. For more information about Hurricane Ida, see Note 17 — “Storm Restoration — Hurricane Ida.”

Deferred Storm Restoration Costs — Winter Storms

In February 2021, Cleco Power’s service territory experienced extreme and unprecedented winter weather.

On February 14, 2021, Winter Storm Uri reached Louisiana resulting in power outages for approximately 11,000 of Cleco Power’s electric customers located primarily in south Louisiana.

On February 17, 2021, Winter Storm Viola reached Louisiana resulting in power outages for approximately 43,000 of Cleco Power’s electric customers located primarily in central and south Louisiana.

On March 17, 2021, the LPSC approved utilities establishing a regulatory asset to track and defer non-capital expenses associated with these winter storms. For more information about Winter Storms Uri and Viola, see Note 17 — “Storm Restoration — Winter Storms Uri and Viola.”

Lignite Mine Closure Cost

On October 6, 2020, Cleco Power and SWEPCO made a joint filing with the LPSC seeking authorization to close the Oxbow mine and to include and defer certain accelerated mine closing costs in fuel and related ratemaking treatment. On March 17, 2021, the LPSC approved the establishment of a regulatory asset for certain lignite costs that would otherwise be billed through Cleco Power’s FAC and any reasonable incremental third-party professional costs related to the closure of the mine. At September 30, 2021, Cleco Power had a regulatory asset of $93.1 million for these mine-related incurred costs. For more information on the Oxbow mine, see Note 13 — “Litigation, Other Commitments and Contingencies, and Disclosures about Guarantees — Risks and Uncertainties.”

Madison Unit 3 Property Taxes

On June 16, 2021, the LPSC approved Cleco Power’s new retail rate plan. As a result, beginning July 1, 2022, Cleco Power will be allowed to recover property taxes paid for Madison Unit 3, including a carrying charge at Cleco Power’s weighted average cost of capital, grossed up for income taxes. At September 30, 2021, Cleco Power had a regulatory asset of $6.3 million for the accrued 2021 Madison Unit 3 property taxes. The amount included in the cost recovery mechanism each year will amortize over 12 months.

Other

On June 16, 2021, the LPSC approved Cleco Power’s new retail rate plan resulting in Cleco Power establishing several regulatory assets. Cleco Power was allowed to establish a regulatory asset to recover the undercollection of revenues related to the Northlake Transmission Agreement capped at $5.7 million. The amount recorded in the regulatory asset at June 30, 2021, began being amortized over 12 months on July 1, 2021. Amounts recorded in the regulatory asset after June 30, 2021, are being amortized over the remaining regulatory period ending June 30, 2022. At September 30, 2021, Cleco Power had a regulatory asset of $4.2 million relating to the Northlake Transmission Agreement.

In addition, the LPSC approved recovery of other previously deferred costs associated with Cleco Power’s

recently approved retail rate plan, which began being amortized over four years on July 1, 2021. At September 30, 2021, Cleco Power had a regulatory asset of $3.9 million for deferred costs.

In June 2017, and prior to the approval of Cleco Power’s new retail rate plan, the LPSC approved the establishment of a regulatory asset upon the completion of the Coughlin Pipeline project, for the revenue requirement associated with the project, until Cleco Power’s new retail rate plan was approved. As approved by the LPSC in Cleco Power’s new retail rate plan, the regulatory asset began being amortized over four years on July 1, 2021. At September 30, 2021, Cleco Power had a regulatory asset of $5.1 million related to the deferred revenue associated with the Coughlin Pipeline project.

St. Mary Clean Energy Center

Cleco Power had a regulatory asset for revenue requirements related to the St. Mary Clean Energy Center project. As approved by the LPSC in Cleco Power’s new retail rate plan, the regulatory asset began being amortized over four years on July 1, 2021.

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Fair Value Accounting and Financial Instruments

9 Months Ended

Sep. 30, 2021

Fair Value Disclosures [Abstract]

Fair Value Accounting and Financial Instruments

Note 6 — Fair Value Accounting and Financial Instruments

The amounts reflected on Cleco and Cleco Power’s Condensed Consolidated Balance Sheets at September 30, 2021, and December 31, 2020, 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:

Cleco
	AT SEPT. 30, 2021				AT DEC. 31, 2020
(THOUSANDS)	CARRYING VALUE*		FAIR VALUE		CARRYING VALUE*		FAIR VALUE
Long-term debt	$	3,550,179	$	3,836,960	$	3,230,500	$	3,541,349

* The carrying value of long-term debt does not include deferred issuance costs of $14.1 million at
September 30, 2021, and $13.4 million at December 31, 2020.

Cleco Power
	AT SEPT. 30, 2021				AT DEC. 31, 2020
(THOUSANDS)	CARRYING VALUE*		FAIR VALUE		CARRYING VALUE*		FAIR VALUE
Long-term debt	$	1,820,177	$	2,100,029	$	1,494,947	$	1,794,799

* The carrying value of long-term debt does not include deferred issuance costs of $8.5 million at
September 30, 2021, and $7.0 million at December 31, 2020.

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. Cleco elects not to designate derivatives as cash flow or fair value hedges, as allowed by accounting guidance. Cleco utilizes a mark-to-market approach recognizing changes in the fair value of FTRs and commodity derivatives at Cleco Cajun in earnings and changes in the fair value of FTRs at Cleco Power as a component of deferred fuel assets and liabilities. Cleco utilizes different valuation techniques for fair value measurements under a fair value hierarchy. Assets and liabilities classified as Level 1 under the hierarchy utilize observable inputs that reflect quotable prices in active markets. Assets and liabilities classified as Level 2 are measured through proxy inputs of similar index or composite pricing. Assets and liabilities classified as Level 3 under the hierarchy are valued based on unobservable inputs, such as internally generated valuation models or valuations obtained in inactive markets where there is no readily available information. 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. During the nine months ended September 30, 2021, and the year ended December 31, 2020, Cleco did not experience any transfers between levels within the fair value hierarchy.

The following tables disclose for Cleco and Cleco Power the fair value of financial assets and liabilities measured on a recurring basis. These amounts are presented on a gross basis before consideration of amounts netted under master netting agreements and the application of collateral received or paid:

Cleco
	FAIR VALUE MEASUREMENTS AT REPORTING DATE
(THOUSANDS)	AT SEPT. 30, 2021		QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1)		SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2)		SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3)		AT DEC. 31, 2020		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	$	252,807	$	—	$	252,807	$	—	$	86,001	$	—	$	86,001	$	—
FTRs	9,338		—		—		9,338		4,805		—		—		4,805
Natural gas derivatives*	132,892		—		132,892		—		8,599		—		8,599		—
Total assets	$	395,037	$	—	$	385,699	$	9,338	$	99,405	$	—	$	94,600	$	4,805
Liability description
FTRs	$	1,589	$	—	$	—	$	1,589	$	1,625	$	—	$	—	$	1,625
Natural gas derivatives*	—		—		—		—		1,612		—		1,612		—
Total liabilities	$	1,589	$	—	$	—	$	1,589	$	3,237	$	—	$	1,612	$	1,625

* Natural gas derivatives include fixed price physical forwards and swap transactions.

Cleco Power
	FAIR VALUE MEASUREMENTS AT REPORTING DATE
(THOUSANDS)	AT SEPT. 30, 2021		QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1)		SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2)		SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3)		AT DEC. 31, 2020		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	$	135,763	$	—	$	135,763	$	—	$	25,357	$	—	$	25,357	$	—
FTRs	6,028		—		—		6,028		4,337		—		—		4,337
Total assets	$	141,791	$	—	$	135,763	$	6,028	$	29,694	$	—	$	25,357	$	4,337
Liability description
FTRs	$	1,330	$	—	$	—	$	1,330	$	1,121	$	—	$	—	$	1,121
Total liabilities	$	1,330	$	—	$	—	$	1,330	$	1,121	$	—	$	—	$	1,121

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:

Cleco
	FOR THE THREE MONTHS ENDED SEPT. 30,				FOR THE NINE MONTHS ENDED SEPT. 30,
(THOUSANDS)	2021		2020		2021		2020
Beginning balance	$	7,501	$	8,040	$	3,180	$	5,778
Unrealized gains (losses)*	3,955		4		18,861		(736)
Purchases	619		443		11,426		10,175
Settlements	(4,326)		(3,160)		(25,718)		(9,890)
Ending balance	$	7,749	$	5,327	$	7,749	$	5,327
* Cleco Power’s unrealized gains (losses) are reported through Accumulated deferred fuel on Cleco’s Condensed Consolidated Balance Sheet. Cleco Cajun’s unrealized gains (losses) 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)	2021		2020		2021		2020
Beginning balance	$	5,990	$	7,511	$	3,216	$	5,725
Unrealized gains*	1,196		426		545		1,355
Purchases	619		443		9,236		8,219
Settlements	(3,107)		(2,968)		(8,299)		(9,887)
Ending balance	$	4,698	$	5,412	$	4,698	$	5,412
* Unrealized gains are reported through Accumulated deferred fuel on Cleco Power’s Condensed Consolidated Balance Sheet.

Cleco Power and Cleco Cajun’s FTRs are valued 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 value available

comes from MISO auctions, which occur monthly in the Multi-Period Monthly Auction.

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, 2021, and December 31, 2020:

Cleco
	FAIR VALUE				VALUATION TECHNIQUE	SIGNIFICANT UNOBSERVABLE INPUTS	FORWARD PRICE RANGE
(THOUSANDS, EXCEPT FORWARD PRICE RANGE)	ASSETS		LIABILITIES				LOW		HIGH
FTRs at Sept. 30, 2021	$	9,338	$	1,589	RTO auction pricing	FTR price - per MWh	$	(8.18)	$	9.16
FTRs at Dec. 31, 2020	$	4,805	$	1,625	RTO auction pricing	FTR price - per MWh	$	(3.49)	$	4.36

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, 2021	$	6,028	$	1,330	RTO auction pricing	FTR price - per MWh	$	(3.26)	$	9.16
FTRs at Dec. 31, 2020	$	4,337	$	1,121	RTO auction pricing	FTR price - per MWh	$	(3.34)	$	4.36

As a result of the 2016 Merger, fair value adjustments were recorded on Cleco’s Condensed Consolidated Balance Sheet for the valuation of a finite intangible asset relating to the Cleco Power trade name. In August 2021, a wholesale customer that is currently under contract with Cleco Power through March 31, 2024, informed Cleco Power that it was not selected through its RFP process as a provider of load after the first quarter of 2024. Cleco considered this to be a triggering event and determined that the carrying value of the trade name intangible asset may not be recoverable. Therefore, a valuation of the Cleco Power trade name was conducted to test for impairment. A discounted cash flow model utilizing an estimated weighted average cost of capital of 8% was used to determine the fair value of the Cleco Power trade name. As a result, Cleco determined that the fair value of the Cleco Power trade name was less than its carrying value and an impairment of $3.8 million was recognized reducing the carrying value to zero. The fair value measurement of the intangible asset is classified as Level 3 in the fair value hierarchy. For more information on the Cleco Power trade name intangible asset, see Note 15 — “Intangible Assets and Liabilities.”

Concentrations of Credit Risk

At September 30, 2021, 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, 2021, and December 31, 2020:

Cleco
(THOUSANDS)	AT SEPT. 30, 2021		AT DEC. 31, 2020
Cash and cash equivalents	$	249,711	$	80,712
Current restricted cash and cash equivalents	$	2,352	$	4,545
Non-current restricted cash and cash equivalents	$	744	$	744

Cleco Power
(THOUSANDS)	AT SEPT. 30, 2021		AT DEC. 31, 2020
Cash and cash equivalents	$	133,411	$	20,812
Current restricted cash and cash equivalents	$	2,352	$	4,545

Institutional money market fund assets are discounted to the current period using a published U.S. Treasury interest rate as a proxy for a risk-free rate of return. 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.

Cleco may be required to provide credit support or pay liquidated damages with respect to any open trading contracts that Cleco has entered into or may enter into in the future. 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.

Commodity Contracts

On Cleco’s Condensed Consolidated Balance Sheets, the fair value of amounts associated with Cleco Cajun’s derivative instruments are offset with related cash collateral balances with the same counterparty. There were no offsetting amounts at December 31, 2020. 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, 2021, and December 31, 2020:

Cleco
	DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS
		AT SEPT. 30, 2021												AT DEC. 31, 2020
				GROSS AMOUNTS OFFSET ON THE BALANCE SHEET						GROSS AMOUNTS NOT OFFSET ON THE BALANCE SHEET (1)
(THOUSANDS)	BALANCE SHEET LINE ITEM	GROSS ASSET (LIABILITY)		CONTRACT NETTING		COLLATERAL		NET ASSET (LIABILITY) ON THE BALANCE SHEET		COLLATERAL		NET AMOUNT		NET ASSET (LIABILITY) ON THE BALANCE SHEET (2)
Commodity-related contracts
FTRs
Current	Energy risk management assets	$	9,338	$	—	$	—	$	9,338	$	—	$	9,338	$	4,805
Current	Energy risk management liabilities	(1,589)		—		—		(1,589)		—		(1,589)		(1,625)
Natural gas derivatives
Current	Energy risk management assets	59,648		(1,283)		(8,900)		49,465		(41,098)		8,367		8,276
Non-current	Energy risk management assets	83,427		—		—		83,427		(13,902)		69,525		323
Current	Energy risk management liabilities	(1,283)		1,283		—		—		—		—		(828)
Non-current	Other deferred credits	—		—		—		—		—		—		(784)
Commodity-related contracts, net		$	149,541	$	—	$	(8,900)	$	140,641	$	(55,000)	$	85,641	$	10,167

(1) Represents letters of credit by counterparties.

(2) There were no offsetting amounts on or off Cleco’s Condensed Consolidated Balance Sheet at December 31, 2020.

Cleco Power
	DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS
(THOUSANDS)	BALANCE SHEET LINE ITEM	AT SEPT. 30, 2021		AT DEC. 31, 2020
Commodity-related contracts
FTRs
Current	Energy risk management assets	$	6,028	$	4,337
Current	Energy risk management liabilities	(1,330)		(1,121)
Commodity-related contracts, net		$	4,698	$	3,216

At September 30, 2021, cash collateral received from counterparties by Cleco was $8.9 million, all of which was netted against the current portion of Energy risk management assets on Cleco’s Condensed Consolidated Balance Sheet. At December 31, 2020, there was no cash collateral paid or received by Cleco.

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, 2021, and 2020:

Cleco
	AMOUNT OF GAIN(LOSS) ON DERIVATIVES RECOGNIZED IN INCOME
		FOR THE THREE MONTHS ENDED SEPT. 30,				FOR THE NINE MONTHS ENDED SEPT. 30,
(THOUSANDS)	INCOME STATEMENT LINE ITEM	2021		2020		2021		2020
Commodity-related contracts
FTRs(1)	Electric operations	$	1,959	$	3,013	$	11,167	$	6,262
FTRs(1)	Purchased power	(874)		(763)		(8,730)		(1,053)
Natural gas derivatives	Fuel used for electric generation	107,687		20,307		165,584		22,515
Total		$	108,772	$	22,557	$	168,021	$	27,724

(1) For the three and nine months ended September 30, 2021, unrealized gains associated with FTRs for Cleco Power of $1.2 million and $0.5 million, respectively, were reported through Accumulated deferred fuel on the balance sheet. 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.

Cleco Power
	AMOUNT OF GAIN(LOSS) ON DERIVATIVES RECOGNIZED IN INCOME
		FOR THE THREE MONTHS ENDED SEPT. 30,				FOR THE NINE MONTHS ENDED SEPT. 30,
(THOUSANDS)	INCOME STATEMENT LINE ITEM	2021		2020		2021		2020
Commodity-related contracts
FTRs(1)	Electric operations	$	1,959	$	3,013	$	11,167	$	6,262
FTRs(1)	Purchased power	(822)		(2,326)		(9,236)		(4,397)
Total		$	1,137	$	687	$	1,931	$	1,865

(1) For the three and nine months ended September 30, 2021, unrealized gains associated with FTRs of $1.2 million and $0.5 million, respectively, were reported through Accumulated deferred fuel on the balance sheet. 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.

The following table presents the volume of commodity-related derivative contracts outstanding at September 30, 2021, and December 31, 2020, for Cleco and Cleco Power:

Cleco
		TOTAL VOLUME OUTSTANDING
(THOUSAND)	UNIT OF MEASURE	AT SEPT. 30, 2021	AT DEC. 31, 2020
Commodity-related contracts
FTRs	MWh	22,794	15,269
Natural gas derivatives	MMBtus	118,712	73,000

Cleco Power
		TOTAL VOLUME OUTSTANDING
(THOUSAND)	UNIT OF MEASURE	AT SEPT. 30, 2021	AT DEC. 31, 2020
Commodity-related contracts
FTRs	MWh	14,596	9,521

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Debt

9 Months Ended

Sep. 30, 2021

Debt Disclosure [Abstract]

Debt

Note 7 — Debt

On May 21, 2021, Cleco Holdings entered into a $175.0 million revolving credit agreement and a $266.0 million term loan agreement. These agreements replaced Cleco Holdings’ existing revolving credit agreement and term loan agreement. The revolving credit agreement matures on May 21, 2026. Under this agreement, Cleco Holdings is required to maintain total indebtedness less than or equal to 65% of total capitalization. The borrowing costs under this agreement are currently equal to LIBOR plus 1.625% or ABR plus 0.625%, plus commitment fees of 0.275%. If Cleco Holdings’ credit ratings were to be downgraded one level by the credit rating agencies, Cleco Holdings may be required to pay incremental interest and commitment fees of 0.125% and 0.05%, respectively. At September 30, 2021, Cleco Holdings had no borrowings outstanding under its revolving credit agreement. Cleco Holdings’ term loan agreement matures on May 21, 2024 and has an interest rate of LIBOR plus 1.625% or ABR plus 0.625%.

In addition, on May 21, 2021, Cleco Power entered into a $300.0 million revolving credit agreement and a $125.0 million term loan agreement. These agreements replaced Cleco Power’s existing revolving credit agreement and term loan agreement. The revolving credit agreement matures on May 21, 2026. Under this agreement, Cleco Power is required to maintain total indebtedness less than or equal to 65% of total capitalization. The borrowing costs under this agreement are currently equal to LIBOR plus 1.25% or ABR plus 0.25%, plus commitment fees of 0.15%. If Cleco Power’s credit ratings were to be downgraded one level by the credit rating

agencies, Cleco Power may be required to pay incremental interest and commitment fees of 0.125% and 0.025%, respectively. At September 30, 2021, Cleco Power had no borrowings outstanding under the revolving credit agreement. Cleco Power’s term loan agreement matures on May 21, 2024 and has an interest rate of LIBOR plus 1.25% or ABR plus 0.25%.On September 10, 2021, Cleco Power completed the issuance and private sale of $325.0 million aggregate principal amount of its floating rate senior notes due 2023. The senior notes include an optional redemption, in whole or in part, at any time on or after March 15, 2022, at 100% of the principal amount of the senior notes. The senior notes bear interest at a rate of three-month LIBOR plus 50 basis points per annum and reset quarterly. The net proceeds from the issuance were used for general limited liability company purposes, including the repayment of borrowings under Cleco Power’s revolving credit agreement. The senior notes are governed by an indenture entered into between Cleco Power and a trustee. The indenture contains certain customary covenants that restrict Cleco Power’s ability to merge, consolidate or transfer or lease all or substantially all of its assets or create or incur certain liens securing indebtedness.

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Pension Plan and Employee Benefits

9 Months Ended

Sep. 30, 2021

Retirement Benefits [Abstract]

Pension Plan and Employee Benefits

Note 8 — Pension Plan and Employee Benefits

Pension Plan and Other Benefits Plan

Employees hired before August 1, 2007, are covered by a non-contributory, defined benefit pension plan. Based on the funding assumptions at December 31, 2020, and the funding relief provided by the American Rescue Plan Act, which was signed by the President on March 11, 2021, management estimates that no pension contributions will be required through 2025. Cleco has not made, and does not expect to make, any contributions to the pension plan in 2021.

Cleco Power is the plan sponsor and Support Group is the plan administrator. Benefits under the plan reflect an employee’s years of service, age at retirement, and accrued benefit at retirement.

Cleco’s retirees may be eligible to receive Other Benefits. Dependents of Cleco’s retirees may also be eligible to receive Other Benefits with the exception of life insurance benefits.

The non-service components of net periodic pension and Other Benefits cost are included in Other income (expense), net within Cleco and Cleco Power’s Condensed Consolidated Statements of Income. The components of net periodic pension and Other Benefits cost for the three and nine months ended September 30, 2021, and 2020 were as follows:

	PENSION BENEFITS				OTHER BENEFITS
	FOR THE THREE MONTHS ENDED SEPT. 30,				FOR THE THREE MONTHS ENDED SEPT. 30,
(THOUSANDS)	2021		2020		2021		2020
Components of periodic benefit costs
Service cost	$	2,629	$	2,455	$	629	$	600
Interest cost	4,667		5,204		317		418
Expected return on plan assets	(5,700)		(6,244)		—		—
Amortizations
Prior period service credit	—		(15)		—		—
Net loss	5,184		4,073		373		362
Net periodic benefit cost	6,780		5,473		1,319		1,380
Special/contractual termination benefits	3,270		—		—		—
Total benefit cost	$	10,050	$	5,473	$	1,319	$	1,380

	PENSION BENEFITS				OTHER BENEFITS
	FOR THE NINE MONTHS ENDED SEPT. 30,				FOR THE NINE MONTHS ENDED SEPT. 30,
(THOUSANDS)	2021		2020		2021		2020
Components of periodic benefit costs
Service cost	$	7,887	$	7,365	$	1,819	$	1,615
Interest cost	14,001		15,612		962		1,238
Expected return on plan assets	(17,101)		(18,731)		—		—
Amortizations
Prior period service credit	—		(45)		—		—
Net loss	15,553		12,222		1,143		1,042
Net periodic benefit cost	20,340		16,423		3,924		3,895
Special/contractual termination benefits	3,270		—		—		—
Total benefit cost	$	23,610	$	16,423	$	3,924	$	3,895

Effective September 30, 2021, the pension plan was amended to offer an enhanced pension benefit to certain employees participating in the plan that elect to retire during a certain retirement window. Those certain employees who elected by September 30, 2021, to receive the enhanced pension benefits will receive a 10% increase in calculated pension benefits. This resulted in a special termination benefit cost for Cleco Power and Support Group of $2.4 million and $0.9 million, respectively, included as an expense of the pension plan.

Because Cleco Power is the pension plan sponsor and the related trust holds the assets, the net unfunded status of the pension plan is reflected at Cleco Power. The liability of Cleco’s other subsidiaries is transferred with a like amount of assets to Cleco Power monthly. The expense of the pension plan related to Cleco’s other subsidiaries for the three and nine months ended September 30, 2021, was $1.8 million and $3.6 million, respectively. The expense of the pension plan related to Cleco’s other subsidiaries for the three and nine months ended September 30, 2020, was $0.9 million and $2.6 million, respectively.

Cleco Holdings is the plan sponsor for the other benefit plans. There are no assets set aside in a trust, and the liabilities are reported on the individual subsidiaries’ financial statements. The expense related to other benefits reflected in Cleco Power’s Condensed Consolidated Statements of Income for the three and nine months ended September 30, 2021, was $1.2 million and $3.6 million, respectively. The expense related to other benefits reflected in Cleco Power’s Condensed Consolidated Statements of Income for the three and nine months ended September 30, 2020, was $1.1 million and $3.6 million, respectively. The current and non-current portions of

the Other Benefits liability for Cleco and Cleco Power at September 30, 2021, and December 31, 2020, were as follows:

Cleco
(THOUSANDS)	AT SEPT. 30, 2021		AT DEC. 31, 2020
Current	$	4,463	$	4,463
Non-current	$	51,306	$	51,868

Cleco Power
(THOUSANDS)	AT SEPT. 30, 2021		AT DEC. 31, 2020
Current	$	3,865	$	3,865
Non-current	$	40,261	$	40,734

SERP

Certain Cleco officers are covered by SERP. Cleco does not fund the SERP liability, but instead pays for current benefits out of general funds available. Cleco Power has formed a rabbi trust. The life insurance policies issued on SERP participants designate the rabbi trust as the beneficiary. Market conditions could have a significant impact on the cash surrender value of the life insurance policies. Proceeds from the life insurance policies are expected to be used to pay the SERP participants’ death benefits, as well as future SERP payments. However, because SERP is a non-qualified plan, the assets of the trust could be used to satisfy general creditors of Cleco Power in the event of insolvency. All SERP benefits are paid out of general cash available of the respective companies that employed the officer. Cleco Power is the plan sponsor and Support Group is the plan administrator.

The non-service components of net periodic benefit cost related to SERP are included in Other income (expense), net within Cleco and Cleco Power’s Condensed Consolidated

Statements of Income. The components of the net periodic benefit cost related to SERP for the three and nine months ended September 30, 2021, and 2020 were as follows:

	FOR THE THREE MONTHS ENDED SEPT. 30,				FOR THE NINE MONTHS ENDED SEPT. 30,
(THOUSANDS)	2021		2020		2021		2020
Components of periodic benefit costs
Service cost	$	59	$	100	$	174	$	300
Interest cost	634		733		1,903		2,199
Amortizations
Prior period service credit	(54)		(54)		(161)		(161)
Net loss	307		796		921		2,388
Net periodic benefit cost	$	946	$	1,575	$	2,837	$	4,726

The expense related to SERP reflected on Cleco Power’s Condensed Consolidated Statements of Income for the three and nine months ended September 30, 2021, was $0.1 million and $0.4 million, respectively. The expense related to SERP reflected on Cleco Power’s Condensed Consolidated Statements of Income for the three and nine months ended September 30, 2020, was $0.2 million and $0.7 million, respectively.

Liabilities relating to SERP are reported on the individual subsidiaries’ financial statements. The current and non-current portions of the SERP liability for Cleco and Cleco Power at September 30, 2021, and December 31, 2020, were as follows:

Cleco
(THOUSANDS)	AT SEPT. 30, 2021		AT DEC. 31, 2020
Current	$	4,703	$	4,703
Non-current	$	90,880	$	92,522

Cleco Power
(THOUSANDS)	AT SEPT. 30, 2021		AT DEC. 31, 2020
Current	$	711	$	711
Non-current	$	19,240	$	19,828

401(k) Plan

Cleco’s 401(k) Plan is intended to provide active, eligible employees with voluntary, long-term savings and investment opportunities. The 401(k) Plan is a defined contribution plan and is subject to the applicable provisions of the Employee Retirement Income Security Act of 1974. In accordance with the 401(k) Plan, employer contributions are made in the form of cash. Cash contributions are invested in proportion to the participant’s voluntary contribution investment choices. Participation in the Plan is voluntary, and active Cleco employees are eligible to participate. Cleco’s 401(k) Plan expense for the three and nine months ended September 30, 2021, and 2020 was as follows:

	FOR THE THREE MONTHS ENDED SEPT. 30,				FOR THE NINE MONTHS ENDED SEPT. 30,
(THOUSANDS)	2021		2020		2021		2020
401(k) Plan expense	$	2,512	$	2,356	$	7,391	$	7,509

Cleco Power is the plan sponsor for the 401(k) Plan. The expense of the 401(k) Plan related to Cleco’s other

subsidiaries for the three and nine months ended September 30, 2021, and 2020 was as follows:

	FOR THE THREE MONTHS ENDED SEPT. 30,				FOR THE NINE MONTHS ENDED SEPT. 30,
(THOUSANDS)	2021		2020		2021		2020
401(k) Plan expense	$	1,185	$	996	$	3,511	$	3,491

Effective September 30, 2021, the 401(k) plan was amended to offer an enhanced 401(k) benefit to certain employees participating in the plan that elect to retire during a certain retirement window. Those certain employees who elected by September 30, 2021, to receive the enhanced 401(k) benefits will receive a one-time contribution up to 30% of the employee’s 2021 base salary in accordance with IRS contribution limits. This resulted in a one-time benefit cost of $0.2 million included as an expense of the 401(k) plan.

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Income Taxes

9 Months Ended

Sep. 30, 2021

Income Tax Disclosure [Abstract]

Income Taxes

Note 9 — Income Taxes

Effective Tax Rates

The following tables summarize the effective income tax rates for Cleco and Cleco Power for the three and nine months ended September 30, 2021, and 2020:

Cleco
	FOR THE THREE MONTHS ENDED SEPT. 30,				FOR THE NINE MONTHS ENDED SEPT. 30,
	2021		2020		2021		2020
Effective tax rate	20.3	%	29.4	%	12.4	%	26.8	%

Cleco Power
	FOR THE THREE MONTHS ENDED SEPT. 30,				FOR THE NINE MONTHS ENDED SEPT. 30,
	2021		2020		2021		2020
Effective tax rate	1.0	%	33.4	%	(0.2)	%	28.8	%

For Cleco, the effective income tax rate for the three and nine months ended September 30, 2021, and 2020, were different than the federal statutory rate primarily due to the flow through of tax benefits, including AFUDC; the amortization of excess ADIT; adjustment to record tax expense at the projected annual effective tax rate; adjustments for tax returns as filed; and state tax expense.

For Cleco Power, the effective income tax rate for the three and nine months ended September 30, 2021, and 2020, were different than the federal statutory rate primarily due to the flow through of tax benefits, including AFUDC equity; amortization of excess ADIT; adjustment to record tax expense at the projected annual effective tax rate; adjustments for tax returns as filed; and state tax expense.

Uncertain Tax Positions

Cleco classifies all interest related to uncertain tax positions as a component of interest payable and interest expense. At September 30, 2021, and December 31, 2020, Cleco and Cleco Power had no liability for uncertain tax positions or interest payable related to uncertain tax positions. Cleco estimates that it is reasonably possible that the balance of unrecognized tax benefits as of September 30, 2021, for Cleco and Cleco Power would be unchanged in the next 12 months. The settlement of open tax years could involve the payment of

additional taxes, and/or the recognition of tax benefits, which may have an effect on Cleco’s effective tax rate.

Income Tax Audits

Cleco participates in the IRS’s Compliance Assurance Process in which tax positions are examined and agreed upon prior to filing the federal tax return. While the statute of limitations remains open for tax years 2018, 2019, and 2020, the IRS has completed its review of years 2018 through 2020, and these tax returns were filed consistent with the IRS’s review. The IRS has placed Cleco in the Bridge phase of the Compliance Assurance Process for the 2020 and 2021 tax years. In this phase, the IRS will not accept any disclosures, conduct any reviews, or provide any assurances. The IRS has accepted Cleco’s application for the Compliance Assurance Process for the 2022 tax year.

The state income tax years 2018, 2019, and 2020 remain open to examination by the Louisiana Department of Revenue.

Cleco classifies income tax penalties as a component of other expense. For the three and nine months ended September 30, 2021, and 2020, no penalties were recognized.

CARES Act

In March 2020, the CARES Act was signed into law. The CARES Act includes tax relief provisions such as an alternative minimum tax credit refund, a five-year net operating loss carryback from years 2018 through 2020, and deferred payments of employer payroll taxes.

Cleco deferred $6.0 million in employer payroll tax payments for the period March 27, 2020, through December 31, 2020. Cleco will pay $3.0 million of the obligation by December 31, 2021, and the remaining $3.0 million by December 31, 2022.

Cleco Power deferred $3.6 million in employer payroll tax payments for the period March 27, 2020, through December 31, 2020. Cleco Power will pay $1.8 million of the obligation by December 31, 2021, and the remaining $1.8 million by December 31, 2022.

The CARES Act also includes modifications on the limitations of business interest for the 2019 and 2020 tax years. The modifications increase the allowable business interest deduction from 30% to 50% of adjusted taxable income. Cleco does not have any disallowed interest for the 2020 tax year.

Consolidated Appropriations Act of 2021

In December 2020, the Consolidated Appropriations Act of 2021 (CAA) was signed into law. The CAA includes COVID-19 tax relief and tax extender provisions. These include extensions of time to begin construction on certain solar assets eligible for the Investment Tax Credit (ITC), 100% deductibility of business meals in 2021 and 2022, and an extension of the work opportunity tax credit. The ITC percentage has been increased for projects starting construction through 2023 and placed in service by the end of 2025. Management does not expect the CAA to have a material impact on the Registrants.

Future Tax Reform

Cleco is monitoring the President’s current tax reform proposals, as well as the current proposed infrastructure bill. The proposals have the potential to increase the federal statutory corporate income tax rate from the current rate of 21%. Currently, management is unable to predict the impact of the proposals on the Registrants.

Cleco is also monitoring possible updates related to a decreased Louisiana state corporate income tax rate proposal and a Louisiana state sales tax proposal to be voted on in November 2021.

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Disclosures about Segments

9 Months Ended

Sep. 30, 2021

Segment Reporting [Abstract]

Disclosures about Segments

Note 10 — 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, who is Cleco’s chief operating decision maker, with discrete financial information and, at least quarterly, present discrete financial information to Cleco Holdings’ and, in the case of Cleco Power, Cleco Power’s Boards of Managers. The reportable segment prepares budgets that are presented to and approved by Cleco Holdings’ and, in the case of Cleco Power, 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. There were no changes to Cleco’s existing reportable segments.

The financial results in the following tables are presented on an accrual basis. EBITDA is a key non-GAAP financial measure used by the CEO to assess the operating performance of Cleco’s segments. Management evaluates the performance of Cleco’s segments and allocates resources to them based on segment profit and the requirements to implement strategic initiatives and projects to meet current business objectives. EBITDA is defined as net income adjusted for interest, income taxes, depreciation, and amortization. Depreciation and amortization in the following tables includes amortization of intangible assets and liabilities recorded for the fair value adjustment of wholesale power supply agreements as a result of the 2016 Merger and the Cleco Cajun Transaction, as well as amortization of deferred lease revenue resulting from the Cleco Cajun Transaction. 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.

Segment Information for the Three Months Ended Sept. 30,
2021 (THOUSANDS)	CLECO POWER		CLECO CAJUN			TOTAL SEGMENTS
Revenue
Electric operations	$	357,084	$	107,500		$	464,584
Other operations	22,779		35,158			57,937
Affiliate revenue	1,380		—			1,380
Electric customer credits	(691)		—			(691)
Operating revenue, net	$	380,552	$	142,658		$	523,210
Net income	$	56,561	$	86,744		$	143,305
Add: Depreciation and amortization	43,526		12,623		(1)	56,149
Less: Interest income	936		4			940
Add: Interest charges	18,509		1,117			19,626
Add: Federal and state income tax expense	548		29,888			30,436
EBITDA	$	118,208	$	130,368		$	248,576
(1) Includes $3.6 million of amortization of intangible assets and liabilities related to wholesale power supply agreements and $(2.3) million of deferred lease revenue amortization as a result of the Cleco Cajun Transaction.

2021 (THOUSANDS)	TOTAL SEGMENTS		OTHER			ELIMINATIONS		TOTAL
Revenue
Electric operations	$	464,584	$	(2,420)		$	—	$	462,164
Other operations	57,937		1			(2,217)		55,721
Affiliate revenue	1,380		32,116			(33,496)		—
Electric customer credits	(691)		—			—		(691)
Operating revenue, net	$	523,210	$	29,697		$	(35,713)	$	517,194
Depreciation and amortization	$	56,149	$	8,189	(1)	$	—	$	64,338
Interest income	$	940	$	43		$	(42)	$	941
Interest charges	$	19,626	$	15,044		$	(41)	$	34,629
Federal and state income tax expense	$	30,436	$	133		$	—	$	30,569
Net income (loss)	$	143,305	$	(23,396)		$	1	$	119,910
(1) Includes $2.4 million of amortization of intangible assets related to Cleco Power’s wholesale power supply agreements as a result of the 2016 Merger.

2020 (THOUSANDS)	CLECO POWER		CLECO CAJUN			TOTAL SEGMENTS
Revenue
Electric operations	$	288,852	$	99,956		$	388,808
Other operations	17,775		31,331			49,106
Affiliate revenue	1,506		—			1,506
Electric customer credits	(16,534)		—			(16,534)
Operating revenue, net	$	291,599	$	131,287		$	422,886
Net income	$	36,092	$	38,357		$	74,449
Add: Depreciation and amortization	40,268		11,344		(1)	51,612
Less: Interest income	789		10			799
Add: Interest charges	18,441		(484)			17,957
Add: Federal and state income tax expense	18,076		12,258			30,334
EBITDA	$	112,088	$	61,465		$	173,553
(1) Includes $3.1 million of amortization of intangible assets and liabilities related to wholesale power supply agreements and $(2.3) million of deferred lease revenue amortization as a result of the Cleco Cajun Transaction.

2020 (THOUSANDS)	TOTAL SEGMENTS		OTHER			ELIMINATIONS		TOTAL
Revenue
Electric operations	$	388,808	$	(2,420)		$	—	$	386,388
Other operations	49,106		1			(1,510)		47,597
Affiliate revenue	1,506		35,522			(37,028)		—
Electric customer credits	(16,534)		—			—		(16,534)
Operating revenue, net	$	422,886	$	33,103		$	(38,538)	$	417,451
Depreciation and amortization	$	51,612	$	4,497	(1)	$	—	$	56,109
Interest income	$	799	$	121		$	(10)	$	910
Interest charges	$	17,957	$	16,115		$	(12)	$	34,060
Federal and state income tax expense (benefit)	$	30,334	$	(5,260)		$	1	$	25,075
Net income (loss)	$	74,449	$	(14,154)		$	2	$	60,297
(1) Includes $2.4 million of amortization of intangible assets related to Cleco Power’s wholesale power supply agreements as a result of the 2016 Merger.

Segment Information for the Nine Months Ended Sept. 30,
2021 (THOUSANDS)	CLECO POWER		CLECO CAJUN			TOTAL SEGMENTS
Revenue
Electric operations	$	887,191	$	300,415		$	1,187,606
Other operations	57,674		98,851			156,525
Affiliate revenue	4,259		—			4,259
Electric customer credits	(40,429)		244			(40,185)
Operating revenue, net	$	908,695	$	399,510		$	1,308,205
Net income	$	102,407	$	153,719		$	256,126
Add: Depreciation and amortization	126,534		36,614		(2)	163,148
Less: Interest income	2,404		10			2,414
Add: Interest charges	55,392		786			56,178
Add: Federal and state income tax (benefit) expense	(219)		52,561			52,342
EBITDA	$	281,710	$	243,670		$	525,380
Additions to property, plant, and equipment	$	202,940	$	5,904		$	208,844
Equity investment in investees (1)	$	3,822	$	—		$	3,822
Goodwill (1)	$	1,490,797	$	—		$	1,490,797
Total segment assets (1)	$	6,746,838	$	1,212,968		$	7,959,806
(1) Balances as of September 30, 2021. (2) Includes $10.0 million of amortization of intangible assets and liabilities related to wholesale power supply agreements and $(6.9) million of deferred lease revenue amortization as a result of the Cleco Cajun Transaction.

2021 (THOUSANDS)	TOTAL SEGMENTS		OTHER			ELIMINATIONS		TOTAL
Revenue
Electric operations	$	1,187,606	$	(7,260)		$	(1)	$	1,180,345
Other operations	156,525		4			(5,752)		150,777
Affiliate revenue	4,259		85,392			(89,651)		—
Electric customer credits	(40,185)		—			—		(40,185)
Operating revenue, net	$	1,308,205	$	78,136		$	(95,404)	$	1,290,937
Depreciation and amortization	$	163,148	$	17,052	(2)	$	(1)	$	180,199
Interest income	$	2,414	$	100		$	(98)	$	2,416
Interest charges	$	56,178	$	45,732		$	(98)	$	101,812
Federal and state income tax expense (benefit)	$	52,342	$	(21,357)		$	—	$	30,985
Net income (loss)	$	256,126	$	(37,068)		$	1	$	219,059
Additions to property, plant, and equipment	$	208,844	$	1,116		$	—	$	209,960
Equity investment in investees (1)	$	3,822	$	19,099		$	(19,099)	$	3,822
Goodwill (1)	$	1,490,797	$	—		$	—	$	1,490,797
Total segment assets (1)	$	7,959,806	$	685,410		$	(249,409)	$	8,395,807
(1) Balances as of September 30, 2021. (2) Includes $7.3 million of amortization of intangible assets related to Cleco Power’s wholesale power supply agreements as a result of the 2016 Merger.

2020 (THOUSANDS)	CLECO POWER		CLECO CAJUN			TOTAL SEGMENTS
Revenue
Electric operations	$	752,925	$	273,836		$	1,026,761
Other operations	49,443		92,928			142,371
Affiliate revenue	3,852		204			4,056
Electric customer credits	(33,974)		(153)			(34,127)
Operating revenue, net	$	772,246	$	366,815		$	1,139,061
Net income	$	76,156	$	84,655		$	160,811
Add: Depreciation and amortization	125,541		33,385		(2)	158,926
Less: Interest income	2,498		269			2,767
Add: Interest charges	55,624		(353)			55,271
Add: Federal and state income tax expense	30,770		27,280			58,050
EBITDA	$	285,593	$	144,698		$	430,291
Additions to property, plant, and equipment	$	205,765	$	7,908		$	213,673
Equity investment in investees (1)	$	9,072	$	—		$	9,072
Goodwill (1)	$	1,490,797	$	—		$	1,490,797
Total segment assets (1)	$	6,256,944	$	1,029,812		$	7,286,756
(1) Balances as of December 31, 2020. (2) Includes $9.3 million of amortization of intangible assets and liabilities related to wholesale power supply agreements and $(6.9) million deferred lease revenue amortization as a result of the Cleco Cajun Transaction.

2020 (THOUSANDS)	TOTAL SEGMENTS		OTHER			ELIMINATIONS		TOTAL
Revenue
Electric operations	$	1,026,761	$	(7,260)		$	—	$	1,019,501
Other operations	142,371		2			(4,966)		137,407
Affiliate revenue	4,056		93,938			(97,994)		—
Electric customer credits	(34,127)		—			1		(34,126)
Operating revenue, net	$	1,139,061	$	86,680		$	(102,959)	$	1,122,782
Depreciation and amortization	$	158,926	$	13,575	(2)	$	1	$	172,502
Interest income	$	2,767	$	276		$	(79)	$	2,964
Interest charges	$	55,271	$	48,731		$	(79)	$	103,923
Federal and state income tax expense (benefit)	$	58,050	$	(17,821)		$	1	$	40,230
Net income (loss)	$	160,811	$	(51,019)		$	1	$	109,793
Additions to property, plant, and equipment	$	213,673	$	2,019		$	—	$	215,692
Equity investment in investees (1)	$	9,072	$	—		$	—	$	9,072
Goodwill (1)	$	1,490,797	$	—		$	—	$	1,490,797
Total segment assets (1)	$	7,286,756	$	595,217		$	(156,404)	$	7,725,569
(1) Balances as of December 31, 2020. (2) Includes $7.3 million of amortization of intangible assets related to Cleco Power’s wholesale power supply agreements as a result of the 2016 Merger.

	FOR THE THREE MONTHS ENDED SEPT. 30,				FOR THE NINE MONTHS ENDED SEPT. 30,
(THOUSANDS)	2021		2020		2021		2020
Net income	$	119,910	$	60,297	$	219,059	$	109,793
Add: Depreciation and amortization	64,338		56,109		180,199		172,502
Less: Interest income	941		910		2,416		2,964
Add: Interest charges	34,629		34,060		101,812		103,923
Add: Federal and state income tax expense	30,569		25,075		30,985		40,230
Add: Other corporate costs and noncash items (1)	71		(1,078)		(4,259)		6,807
Total segment EBITDA	$	248,576	$	173,553	$	525,380	$	430,291
(1) Adjustments made for Other and Elimination totals not allocated to total segment EBITDA.

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Regulation and Rates

9 Months Ended

Sep. 30, 2021

Regulated Operations [Abstract]

Regulation and Rates

Note 11 — Regulation and Rates

Provision for rate refund on Cleco and Cleco Power’s Condensed Consolidated Balance Sheets consisted primarily of the following:

(THOUSANDS)	AT SEPT. 30, 2021		AT DEC. 31, 2020
Cleco Katrina/Rita storm recovery charges	$	1,610	$	1,617
FERC audit	$	—	$	1,912
FRP	$	1,236	$	1,786
Site-specific industrial customer	$	611	$	710
TCJA	$	2,057	$	2,057
Transmission ROE	$	—	$	595

Cleco Katrina/Rita Storm Recovery Charges

Prior to the repayment of the Cleco Katrina/Rita storm recovery bonds in March 2020, Cleco Katrina/Rita had the right to bill and collect storm restoration costs from Cleco Power’s customers to pay administrative fees, interest, and principal on the Cleco Katrina/Rita storm recovery bonds. In April 2021, after payments for all final administrative and winding up activities of Cleco Katrina/Rita were made, Cleco Katrina/Rita transferred its remaining restricted cash to Cleco Power. As a result, at September 30, 2021, Cleco Power had $1.6 million accrued for amounts to be used to benefit retail customers in a manner and timing as approved by the LPSC. For more information on Cleco Katrina/Rita’s storm recovery, see Note 1 — “Summary of Significant Accounting Policies — Restricted Cash and Cash Equivalents.”

FERC Audit

As of September 30, 2021, $4.4 million, including accrued interest, was fully refunded to Cleco Power’s wholesale transmission customers as a combination of refund payments related to the FERC audit findings and a reduction in Attachment O of the MISO tariff and grandfathered agreement rates over the preceding 12 months. For more information about the FERC audit, see Note 13 — “Litigation, Other Commitments and Contingencies, and Disclosures about Guarantees — Litigation — FERC Audit.”

FRP

Prior to July 1, 2021, Cleco Power’s annual retail earnings were subject to an FRP established by the LPSC in June 2014. The 2014 FRP allowed Cleco Power to earn a target ROE of 10.0%, while providing the opportunity to earn up to 10.9%. Additionally, 60.0% of retail earnings between 10.9% and 11.75%, and all retail earnings over 11.75%, were required to be refunded to customers. In June 2019, Cleco Power filed an application with the LPSC for a new FRP. On June 16, 2021, the LPSC approved Cleco Power’s new retail rate plan. Effective July 1, 2021, under the terms of the new FRP, Cleco Power is allowed to earn a target ROE of 9.5%, while providing the opportunity to earn up to 10.0%. Additionally, 60.0% of retail earnings between 10.0% and 10.5%, and all retail earnings over 10.5%, are required to be refunded to customers. The amount of credits due to customers, if any, is determined by Cleco Power and the LPSC annually. Cleco Power’s next base rate case is required to be filed with the LPSC on or before March 31, 2023.

Cleco Power filed its monitoring report for the 12 months ended June 30, 2019, on October 31, 2019, indicating that no refund was due. On September 22, 2021, the LPSC approved

the 2019 monitoring report indicating no refund was due. Monitoring reports for the 12 months ended June 30, 2020, and 2021, were not required due to the expiration of the 2014 FRP. The next monitoring report will be filed on or before October 31, 2022, for the 12 months ending June 30, 2022.

Cleco Power continued to accrue the annual cost of service savings resulting from the 2016 Merger Commitments through June 30, 2021. Beginning July 1, 2021, the annual cost of service savings are included in Cleco Power’s new retail rate plan. In September 2021, Cleco Power refunded $1.2 million for the period of July 1, 2019, through June 30, 2020. At September 30, 2021, Cleco Power had $1.2 million accrued for the period July 1, 2020, through June 30, 2021, which is expected to be refunded to customers in September 2022.

TCJA

The provisions of the TCJA reduced the top federal statutory corporate income tax rate from 35% to 21%. As a result of the tax rate reduction, on January 1, 2018, Cleco Power began accruing an estimated reserve for the reduction in the federal statutory corporate income tax rate. In February 2018, the LPSC directed utilities, including Cleco Power, to provide considerations of the appropriate manner to flow through to ratepayers the benefits of the reduction in corporate income taxes as a result of the TCJA. In July 2019, the LPSC approved Cleco Power’s rate refund of $79.2 million, plus interest, for the reduction in the statutory federal tax rate for the period from January 2018 to June 2020. The refund was credited to customers over 12 months beginning August 1, 2019.

In July 2019, the LPSC approved Cleco Power’s motion to address the rate redesign and the regulatory liability for excess ADIT, resulting from the enactment of the TCJA, in Cleco Power’s current base rate case.

As a result of the delay in the rate case, on July 15, 2020, the LPSC approved Cleco Power’s application to extend the TCJA bill credits at the same rate as determined in the initial TCJA refund of approximately $7.0 million per month. The extension was for the period of August 2020 through November 2020. On November 13, 2020, Cleco Power again received approval for its application to extend the TCJA bill credits from December 1, 2020, until such a time that the rate case was completed. The $7.0 million monthly refund consisted of approximately $4.4 million, which was to be funded by the unprotected excess ADIT, and approximately $2.6 million, which is the change in the federal statutory corporate income tax rate from 35% to 21%. At September 30, 2021, Cleco Power had $2.1 million accrued for the estimated federal tax-related benefits from the TCJA.

On June 16, 2021, the LPSC approved Cleco Power’s new retail rate plan which includes the settlement of the TCJA protected and unprotected excess ADIT. Effective July 1, 2021, all retail customers will continue receiving bill credits resulting from the TCJA. The target retail portion of the unprotected excess ADIT is approximately $2.5 million monthly and will be credited over a period of three years concluding on June 30, 2024. The retail portion of the protected excess ADIT will be credited until the full amount of the protected excess ADIT has been returned to Cleco Power’s customers through bill credits. At September 30, 2021, Cleco Power had $313.9 million accrued for the excess ADIT, of which $39.5 million is reflected in current regulatory liabilities.

Transmission ROE

Two complaints were filed with FERC seeking to reduce the ROE component of the transmission rates that MISO transmission owners, including Cleco Power, may collect under the MISO tariff. The complaints covered the period December 2013 through May 2016. As of September 30, 2021, the overcollection due to the change in ROE was fully refunded. For more information on the ROE complaints, see Note 13 — “Litigation, Other Commitments and Contingencies, and Disclosures about Guarantees — Litigation — Transmission ROE.”

SSR

In September 2016, Cleco Power filed an Attachment Y with MISO requesting retirement of Teche Unit 3 effective April 1, 2017. MISO conducted a study which determined the proposed retirement of Teche Unit 3 would result in violations of specific applicable reliability standards for which no mitigation is available. As a result, MISO designated Teche Unit 3 as an SSR unit until such time that an appropriate alternative solution could be implemented to mitigate reliability issues. One mitigating factor identified was Cleco Power’s Terrebonne to Bayou Vista Transmission project, which was completed in April 2019. Cleco Power received a termination notice, effective April 30, 2019, and filed paperwork to withdraw the filed Attachment Y. While operating as an SSR unit, Cleco Power received monthly payments that included recovery of expenses, including capital expenditures, related to the operations of Teche Unit 3. Additionally, MISO allocated SSR costs to the load serving entities that required the operation of the SSR unit, including Cleco Power. These payments and cost allocations were finalized as part of a MISO SSR settlement approved in December 2018. Cleco Power operated Teche Unit 3 as an SSR unit from April 2017 until April 2019.

On September 7, 2021, Cleco Power made a filing with the LPSC giving notice of its intent to consider retiring Teche Unit 3, barring any violations of specific applicable reliability standards. Assuming no violations are found, Teche Unit 3 could be retired in 2022. At September 30, 2021, Cleco Power had $4.3 million accrued for the net capital refund for capital expenditures paid for by third parties while operating under the SSR agreement. The capital refund is expected to be paid in early 2022.

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Variable Interest Entities

9 Months Ended

Sep. 30, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Variable Interest Entities

Note 12 — Variable Interest Entities

Cleco and Cleco Power apply the equity method of accounting to report the investment in Oxbow in the consolidated financial statements. Under the equity method, the assets and liabilities of this entity are reported as Equity investment in investee on Cleco and Cleco Power’s Condensed Consolidated Balance Sheets. The revenue and expenses (excluding income taxes) of this entity are netted and reported as equity income or loss from investees on Cleco and Cleco Power’s Condensed Consolidated Statements of Income.

Oxbow is owned 50% by Cleco Power and 50% by SWEPCO. Cleco Power is not the primary beneficiary because it shares the power to control Oxbow’s significant activities with SWEPCO. Cleco Power’s current assessment of its maximum exposure to loss related to Oxbow at September 30, 2021, consisted of its equity investment of $3.8 million. During the nine months ended September 30, 2021, Cleco Power had a return of equity investment from Oxbow of $5.3 million.

The following table presents the components of Cleco Power’s equity investment in Oxbow:

INCEPTION TO DATE (THOUSANDS)	AT SEPT. 30, 2021		AT DEC. 31, 2020
Purchase price	$	12,873	$	12,873
Cash contributions	6,399		6,399
Distributions	(15,450)		(10,200)
Total equity investment in investee	$	3,822	$	9,072

The following table compares the carrying amount of Oxbow’s assets and liabilities with Cleco Power’s maximum exposure to loss related to its investment in Oxbow:

(THOUSANDS)	AT SEPT. 30, 2021		AT DEC. 31, 2020
Oxbow’s net assets/liabilities	$	7,645	$	18,145
Cleco Power’s 50% equity	$	3,822	$	9,072
Cleco Power’s maximum exposure to loss	$	3,822	$	9,072

The following table contains summarized financial information for Oxbow:

	FOR THE THREE MONTHS ENDED SEPT. 30,				FOR THE NINE MONTHS ENDED SEPT. 30,
(THOUSANDS)	2021		2020		2021		2020
Operating revenue	$	1,486	$	2,275	$	5,113	$	33,266
Operating expenses	1,486		2,275		5,113		33,266
Income before taxes	$	—	$	—	$	—	$	—

Prior to June 30, 2020, DHLC mined lignite reserves at Oxbow through the Amended Lignite Mining Agreement. The lignite reserves were intended to be used to provide fuel to the Dolet Hills Power Station. Under the Amended Lignite Mining Agreement, DHLC bills Cleco Power its proportionate share of incurred lignite extraction and associated mining-related costs. Oxbow bills Cleco Power its proportionate share of incurred costs related to mineral rights and land leases. In June 2020, management decided to retire the Dolet Hills Power Station. On October 6, 2020, Cleco Power and SWEPCO made a joint filing with the LPSC seeking authorization to close the Oxbow mine. As of September 30, 2021, Cleco Power estimates $1.8 million of its proportionate share of costs will be billed by Oxbow prior to the closure of the Dolet Hills Power Station. For more information on DHLC and the Oxbow mine, see Note 13 — “Litigation, Other Commitments and Contingencies, and Disclosures about Guarantees — Risks and Uncertainties.”

Oxbow has no third-party agreements, guarantees, or other third-party commitments that contain obligations affecting Cleco Power’s investment in Oxbow.

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Litigation, Other Commitments and Contingencies, and Disclosures about Guarantees

9 Months Ended

Sep. 30, 2021

Commitments and Contingencies Disclosure [Abstract]

Litigation, Other Commitments and Contingencies, and Disclosures about Guarantees

Note 13 — Litigation, Other Commitments and Contingencies, and Disclosures about Guarantees

Litigation

2016 Merger

In connection with the 2016 Merger, four actions were filed in the Ninth Judicial District Court for Rapides Parish, Louisiana and three actions were filed in the Civil District Court for Orleans Parish, Louisiana. The petitions in each action generally alleged, among other things, that the members of Cleco Corporation’s Board of Directors breached their fiduciary duties by, among other things, conducting an

allegedly inadequate sale process, agreeing to the 2016 Merger at a price that allegedly undervalued Cleco, and failing to disclose material information about the 2016 Merger. The petitions also alleged that Como 1, Cleco Corporation, Merger Sub, and, in some cases, certain of the investors in Como 1 either aided and abetted or entered into a civil conspiracy to advance those supposed breaches of duty. The petitions sought various remedies, including monetary damages, which includes attorneys’ fees and expenses.

The four actions filed in the Ninth Judicial District Court for Rapides Parish are captioned as follows:

•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).

In November 2014, the plaintiff in the Braunstein action moved for a dismissal of the action without prejudice, and that motion was granted in November 2014. In December 2014, the Court consolidated the remaining three actions and appointed interim co-lead counsel, and dismissed the investors in Cleco Partners as defendants, per agreement of the parties. Also, in December 2014, the plaintiffs in the consolidated action filed a Consolidated Amended Verified Derivative and Class Action Petition for Damages and Preliminary and Permanent Injunction.

The three actions filed in the Civil District Court for Orleans Parish were captioned as follows:

•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). 

In December 2014, the directors and Cleco filed declinatory exceptions in each action on the basis that each action was improperly brought in Orleans Parish and should either be transferred to the Ninth Judicial District Court for Rapides Parish or dismissed. Also, in December 2014, the plaintiffs in each action jointly filed a motion to consolidate the three actions pending in Orleans Parish and to appoint interim co-lead plaintiffs and co-lead counsel. In January 2015, the Court in the Creative Life Services case sustained the defendants’ declinatory exceptions and dismissed the case so that it could be transferred to the Ninth Judicial District Court for Rapides Parish. In February 2015, the plaintiffs in Butler and Cashen also consented to the dismissal of their cases from Orleans Parish so they could be transferred to the Ninth Judicial District Court for Rapides Parish. By operation of the December 2014 order of the Ninth Judicial District Court for Rapides Parish, the Butler, Cashen, and Creative Life Services actions were consolidated into the actions pending in Rapides Parish.

In February 2015, the Ninth Judicial District Court for Rapides Parish held a hearing on a motion for preliminary injunction filed by plaintiffs in the consolidated action seeking to enjoin the shareholder vote for approval of the Merger

Agreement. The District Court heard and denied the plaintiffs’ motion. In June 2015, the plaintiffs filed their Second Consolidated Amended Verified Derivative and Class Action Petition. Cleco filed exceptions seeking dismissal of the second amended petition in July 2015. The LPSC voted to approve the 2016 Merger before the Court could consider the plaintiffs’ peremptory exceptions.

In March 2016 and May 2016, the plaintiffs filed their Third Consolidated Amended Verified Derivative Petition for Damages and Preliminary and Permanent Injunction and their Fourth Verified Consolidated Amended Class Action Petition, respectively. The fourth amended petition, which remains the operative petition and was filed after the 2016 Merger closed, eliminated the request for preliminary and permanent injunction and also named an additional executive officer as a defendant. The defendants filed exceptions seeking dismissal of the fourth amended Petition. In September 2016, the District Court granted the exceptions of no cause of action and no right of action and dismissed all claims asserted by the former shareholders. The plaintiffs appealed the District Court’s ruling to the Louisiana Third Circuit Court of Appeal. In December 2017, the Third Circuit Court of Appeal issued an order reversing and remanding the case to the District Court for further proceedings. In January 2018, Cleco filed a writ with the Louisiana Supreme Court seeking review of the Third Circuit Court of Appeal’s decision. The writ was denied in March 2018 and the parties are engaged in discovery in the District Court. In November 2018, Cleco filed renewed exceptions of no cause of action and res judicata, seeking to dismiss all claims. On December 21, 2018, the court dismissed Cleco Partners and Cleco Holdings as defendants per the agreement of the parties, leaving as the only remaining defendants certain former executive officers and independent directors. The District Court denied the defendants’ exceptions on January 14, 2019. A hearing on the plaintiffs’ motion for certification of a class was scheduled for August 26, 2019; however, prior to the hearing, the parties reached an agreement to certify a limited class. On September 7, 2019, the District Court certified a class limited to shareholders who voted against, abstained from voting, or did not vote on the 2016 Merger. On October 18, 2021, the District Court issued an order consistent with a joint motion by the parties to dismiss all claims against the former independent directors leaving two former executives as the only remaining defendants. Cleco believes that the allegations of the petitions in each action are without merit and that it has substantial meritorious defenses to the claims set forth in each of the petitions.

Gulf Coast Spinning

In September 2015, a potential customer sued Cleco for failure to fully perform an alleged verbal agreement to lend or otherwise fund its startup costs to the extent of $6.5 million. Gulf Coast Spinning Company, LLC (Gulf Coast), the primary plaintiff, alleges that Cleco promised to assist it in raising approximately $60.0 million, which Gulf Coast needed to construct a cotton spinning facility near Bunkie, Louisiana. According to the petition filed by Gulf Coast in the 12th Judicial District Court for Avoyelles Parish, Louisiana (the “District Court”), Cleco made such promises of funding assistance in order to cultivate a new industrial electric customer which would increase its revenues under a power supply agreement that it executed with Gulf Coast. Gulf Coast seeks unspecified damages arising from its inability to raise sufficient funds to complete the project, including lost profits.

Cleco filed an Exception of No Cause of Action arguing that the case should be dismissed. The District Court denied Cleco’s exception in December 2015, after considering briefs and arguments. In January 2016, Cleco appealed the District Court’s denial of its exception by filing with the Third Circuit Court of Appeal. In June 2016, the Third Circuit Court of Appeal denied the request to have the case dismissed. In July 2016, Cleco filed a writ to the Louisiana Supreme Court seeking a review of the District Court’s denial of Cleco’s exception. In November 2016, the Louisiana Supreme Court denied Cleco’s writ application.

In February 2016, the parties agreed to a stay of all proceedings pending discussions concerning settlement. In May 2016, the District Court lifted the stay at the request of Gulf Coast. The parties are currently participating in discovery. Cleco believes the allegations of the petition are contradicted by the written documents executed by Gulf Coast, are otherwise without merit, and that it has substantial meritorious defenses to the claims alleged by Gulf Coast.

Dispute with Saulsbury Industries

In October 2018, Cleco Power sued Saulsbury Industries, Inc., the former general contractor for the St. Mary Clean Energy Center project, seeking damages for Saulsbury Industries, Inc.’s failure to complete the St. Mary Clean Energy Center project on time and for costs incurred by Cleco Power in hiring a replacement general contractor. The action was filed in the Ninth Judicial District Court for Rapides Parish, No. 263339. Saulsbury Industries, Inc. removed the case to the U.S. District Court for the Western District of Louisiana, on March 1, 2019. On September 14, 2020, Cabot Industries was allowed to join the case pending in the Ninth Judicial District Court for Rapides Parish.

In January 2019, Cleco Power was served with a summons in Saulsbury Industries, Inc. v. Cabot Corporation and Cleco Power LLC, in the U.S. District Court for the Western District of Louisiana. Saulsbury Industries, Inc. alleged that Cleco Power and Cabot Corporation caused delays in the St. Mary Clean Energy Center project, resulting in alleged impacts to Saulsbury Industries, Inc.’s direct and indirect costs. On June 5, 2019, Cleco Power and Cabot Corporation each filed separate motions to dismiss. On October 24, 2019, the District Court denied Cleco’s motion as premature and ruled that Saulsbury Industries, Inc. had six weeks to conduct discovery on specified jurisdictional issues. The Magistrate Judge presiding over the Western District of Louisiana consolidated cases issued a report and recommendation to the District Judge that the case instituted by Saulsbury Industries, Inc. be dismissed without prejudice and the case initiated by Cleco Power be remanded to the Ninth Judicial District Court for Rapides Parish. Saulsbury Industries, Inc. did not oppose the Magistrate Judge’s report and recommendation, and the District Judge issued a ruling that adopted the Magistrate Judge’s report and recommendation, which included reasoning consistent with Cleco Power’s arguments. Thus, the federal consolidated cases are now closed.

On October 10, 2019, Cleco Power was served with a summons in Saulsbury Industries, Inc. v. Cabot Corporation and Cleco Power LLC in the 16th Judicial District Court for St. Mary Parish, No. 133910-A. Saulsbury Industries, Inc. asserted the same claim as the Western District Litigation and further asserts claims for payment on an open account. On December 9, 2019, Cleco moved to stay the case, arguing that the Rapides Parish suit should proceed. On February 14, 2020, the

court granted Cleco’s motion, which stay order remains in place until lifted. The 16th Judicial District Court for the St. Mary Parish case held a hearing on October 16, 2020, and the judge granted Cleco’s declinatory exceptions of lis pendens. Thus, the St. Mary’s Parish case has been dismissed. Saulsbury filed a motion for a new trial. The hearing on this motion was held on February 5, 2021, and the 16th Judicial District Court judge denied Saulsbury’s motion for a new trial. Saulsbury has appealed this decision.

LPSC Audits

Fuel Audits

Generally, Cleco Power’s cost of fuel used for electric generation and the cost of purchased power are recovered through the LPSC-established FAC that enables Cleco Power to pass on to its customers substantially all such charges. Recovery of FAC costs is subject to periodic fuel audits by the LPSC. The LPSC FAC General Order issued in November 1997, in Docket No. U-21497 provides that an audit of FAC filings will be performed at least every other year. In March 2020, Cleco Power received a notice of audit from the LPSC for the period of January 2018 to December 2019. The total amount of fuel expense included in the audit is $565.8 million. Cleco Power has responded to several sets of data requests from the LPSC. Cleco Power has FAC filings for January 2020 and thereafter that remain subject to audit. Management is unable to predict or give a reasonable estimate of the possible range of the disallowance, if any, related to these filings. Historically, the disallowances have not been material. If a disallowance of fuel cost is ordered resulting in a refund, any such refund could have a material adverse effect on the results of operations, financial condition, or cash flows of the Registrants.

On March 29, 2021, Cleco Power received approval from the LPSC to recover $50.0 million of incremental fuel and purchased power costs incurred as a result of Winter Storms Uri and Viola over a period of 12 months beginning with the May 2021 bills. On May 11, 2021, Cleco Power received notice of an audit from the LPSC for the fuel costs incurred during the time period required to restore services to Cleco Power’s customers during Winter Storms Uri and Viola. Cleco Power has responded to its first set of data requests. Management is unable to determine the outcome or timing of the audit. For more information on these winter storms, see Note 17 — “Storm Restoration — Winter Storms Uri and Viola.”

Environmental Audit

In 2009, the LPSC issued Docket No. U-29380 Subdocket A, which provides Cleco Power an EAC to recover from its customers certain costs of environmental compliance. The costs eligible for recovery are those for prudently incurred air emissions credits associated with complying with federal, state, and local air emission regulations that apply to the generation of electricity reduced by the sale of such allowances. Also eligible for recovery are variable emission mitigation costs, which are the costs of reagents such as ammonia and limestone that are a part of the fuel mix used to reduce air emissions, among other things. On October 20, 2021, the LPSC approved the EAC audit for the period January 2018 to December 2019 with no findings. The total amount of environmental expense that was included in the audit was $26.2 million. Cleco Power has EAC filings for January 2020 and thereafter that remain subject to audit. Management is

unable to predict or give a reasonable estimate of the possible range of the disallowance, if any, related to these filings. Historically, the disallowances have not been material. If a disallowance of environmental cost is ordered resulting in a refund to Cleco Power’s customers, any such refund could have a material adverse effect on the results of operations, financial condition, or cash flows of the Registrants.

Cleco Power incurs environmental compliance expenses for reagents associated with the compliance standards of Mercury and Air Toxics Standards (MATS). These expenses are also eligible for recovery through Cleco Power’s EAC and are subject to periodic review by the LPSC. In May 2020, the EPA finalized a rule that concluded that it is not appropriate and necessary to regulate hazardous air pollutants from coal- and oil-fired electric generating units. However, the EPA concluded that coal- and oil-fired electric generating units would not be removed from the list of regulated sources of hazardous air pollutants and would remain subject to MATS. The EPA also determined that the results of its risk and technology review did not require any revisions to the emissions standards. Several petitions for review of the rule’s findings were filed between May and July 2020 in the D.C. Circuit Court of Appeals. On January 20, 2021, the Presidential Administration issued an executive order directing federal agency heads to review regulations and other actions over the past four years to determine if they are inconsistent with the policies announced in the executive order. The order specifically directs the EPA to consider issuing a proposed rule to suspend, revise, or rescind the rule. The EPA has not issued a proposed rule, and management is unable to determine when a proposed rule will be issued. The EPA determined the most environmentally protective course is to implement the rules in the executive order. Management is unable to determine whether the outcome of the D.C. Circuit Court of Appeals review or the EPA’s review of the rule as a result of the executive order will result in changes to the MATS standards.

FERC Audit

Generally, Cleco Power records wholesale transmission revenue through approved formula rates, Attachment O of the MISO tariff and certain grandfathered agreements. The calculation of the rate formulas, as well as FERC accounting and reporting requirements, are subject to periodic audits by FERC. In March 2018, the Division of Audits and Accounting, within the Office of Enforcement of FERC, initiated an audit of Cleco Power for the period of January 1, 2014, through June 30, 2019. On September 27, 2019, Cleco Power received the final audit report, which indicated 12 findings of noncompliance with a combination of FERC accounting and reporting requirements and computation of revenue requirements along with 59 recommendations associated with the audit period. Cleco Power submitted a plan for implementing the audit recommendations on October 28, 2019. Cleco Power also submitted the refund analysis on November 7, 2019, which resulted in a refund related to the FERC audit findings, pending final assessment by the FERC Division of Audits and Accounting, which is expected in the fourth quarter of 2021. As of June 30, 2021, the refund of $4.4 million was fully refunded to Cleco Power’s wholesale transmission customers as a combination of refund payments and a reduction in Attachment O of the MISO tariff and grandfathered agreement rates over the preceding 12 months.

Transmission ROE

In November 2013 and February 2015, customers filed complaints with FERC seeking to reduce the ROE component of the transmission rates that MISO transmission owners, including Cleco, may collect under the MISO tariff. The complaints covered the period December 2013 through May 2016 and sought to reduce the 12.38% ROE used in MISO’s transmission rates to a proposed 6.68%. In June 2016, an administrative law judge issued an initial decision in the second rate case docket recommending a 9.70% base ROE. In September 2016, FERC issued a Final Order in response to the first complaint establishing a 10.32% ROE. However, on November 21, 2019, FERC voted to adopt a new methodology for evaluating base ROE for public utilities under the Federal Power Act. In addition, FERC set the MISO transmission owners’ region-wide base ROE at 9.88% for the refund period covered in the first complaint and going forward. The draft FERC order further found that complainants in the second complaint proceeding failed to show that the 9.88% base ROE was unjust and unreasonable and thus dismissed the second complaint. On May 21, 2020, FERC issued Opinion No. 569-A, which granted rehearing in part of Opinion No. 569, which had revised FERC’s methodology for analyzing the base ROE component of public utility rates under section 206 of the Federal Power Act. Opinion No. 569-A further refines FERC’s ROE methodology and finds that the MISO Transmission Owners’ base ROE should be set at 10.02% instead of 9.88%. Cleco Power is unable to determine when a final FERC Order will be issued. As of September 30, 2021, the overcollection due to the change in the ROE was fully refunded.

In November 2014, the MISO transmission owners committee, of which Cleco is a member, filed a request with FERC for an incentive to increase the new ROE by 50 basis points for RTO participation as allowed by the MISO tariff. In January 2015, FERC granted the request. The collection of the adder was included in MISO’s transmission rates for a total ROE of 10.38% and 10.52% beginning January 1, 2020, and June 1, 2020, respectively.

South Central Generating

In 2017, Louisiana Generating received insurance settlement proceeds for remediation costs, as defined in the policy of insurance, incurred to install selective non-catalytic reduction equipment on Big Cajun II, Unit 3. This installation served a dual purpose of being a prudent utility practice for compliance with environmental laws and aiding in the settlement of a lawsuit, which was brought by the EPA and the Louisiana Department of Environmental Quality against Louisiana Generating, related to Big Cajun II, Units 1 and 2. Entergy Gulf States, as co-owner of Big Cajun II, Unit 3, expected to be allocated a portion of the insurance settlement proceeds. Litigation between Entergy Gulf States and Louisiana Generating ensued to determine Entergy Gulf States’ allocated amount of insurance proceeds, among other claims pursuant to the Joint Ownership Participation and Operating Agreement between Louisiana Generating and Entergy Gulf States. In August 2021, Louisiana Generating and Entergy Gulf States entered an agreement to settle all claims asserted in this litigation. Upon payment of the settlement amount in January 2022, the lawsuit will be dismissed. NRG Energy will indemnify Cleco for losses associated with this litigation matter.

Prior to the Cleco Cajun Transaction, South Central Generating was involved in various litigation matters, including environmental and contract proceedings, before various courts

regarding matters arising out of the ordinary course of business. As of September 30, 2021, management estimates potential losses to be $1.5 million with respect to one of these matters. Management is unable to estimate any potential losses Cleco Cajun may be ultimately responsible for with respect to any of the remaining matters. As part of the Cleco Cajun Transaction, NRG Energy indemnified Cleco for losses as of the closing date associated with matters that existed as of the closing date, including pending litigation.

Other

Cleco is involved in various litigation matters, including regulatory, environmental, and administrative proceedings before various courts, regulatory commissions, arbitrators, and governmental agencies regarding matters arising in the ordinary course of business. The liability Cleco may ultimately incur with respect to any one of these matters may be in excess of amounts currently accrued. Management regularly analyzes current information and, as of September 30, 2021, believes the probable and reasonably estimable liabilities based on the eventual disposition of these matters are $4.1 million and has accrued this amount.

Off-Balance Sheet Commitments and Guarantees

Cleco Holdings and Cleco Power have entered into various off-balance sheet commitments, in the form of guarantees and standby letters of credit, in order to facilitate their activities and the activities of Cleco Holdings’ subsidiaries and equity investees (affiliates). Cleco Holdings and Cleco Power have also agreed to contractual terms that require the Registrants to pay third parties if certain triggering events occur. These contractual terms generally are defined as guarantees.

Cleco Holdings entered into these off-balance sheet commitments in order to entice desired counterparties to contract with its affiliates by providing some measure of credit assurance to the counterparty in the event Cleco’s affiliates do not fulfill certain contractual obligations. If Cleco Holdings had not provided the off-balance sheet commitments, the desired counterparties may not have contracted with Cleco’s affiliates, or may have contracted with them at terms less favorable to its affiliates.

The off-balance sheet commitments are not recognized on Cleco and Cleco Power’s Condensed Consolidated Balance Sheets because management has determined that Cleco and Cleco Power’s affiliates are able to perform the obligations under their contracts and that it is not probable that payments by Cleco or Cleco Power will be required.

Cleco Holdings provided guarantees and indemnities to Entergy Louisiana and Entergy Gulf States as a result of the sale of the Perryville generation facility in 2005. The remaining indemnifications relate to environmental matters that may have been present prior to closing. These remaining indemnifications have no time limitations. The maximum amount of the potential payment to Entergy Louisiana and Entergy Gulf States is $42.4 million. Management does not expect to be required to pay Entergy Louisiana and Entergy Gulf States under these guarantees.

On behalf of Acadia, Cleco Holdings provided guarantees and indemnifications as a result of the sales of Acadia Unit 1 to Cleco Power and Acadia Unit 2 to Entergy Louisiana in 2010 and 2011, respectively. The remaining indemnifications relate to the fundamental organizational structure of Acadia. These remaining indemnifications have no time limitations or maximum potential future payments. Management does not

expect to be required to pay Cleco Power or Entergy Louisiana under these guarantees.

Cleco Holdings provided indemnifications to Cleco Power as a result of the transfer of Coughlin to Cleco Power in March 2014. Cleco Power also provided indemnifications to Cleco Holdings and Evangeline as a result of the transfer of Coughlin to Cleco Power. The maximum amount of the potential payment to Cleco Power, Cleco Holdings, and Evangeline for their respective indemnifications is $40.0 million, except for indemnifications relating to the fundamental organizational structure of each respective entity, of which the maximum amount is $400.0 million. Management does not expect to be required to make any payments under these indemnifications.

As part of the Amended Lignite Mining Agreement, Cleco Power and SWEPCO, joint owners of the Dolet Hills Power Station, have agreed to pay the loan and lease principal obligations of the lignite miner, DHLC, when due if DHLC does not have sufficient funds or credit to pay. Any amounts paid on behalf of the miner would be credited by the lignite miner against future invoices for lignite delivered. As of September 30, 2021, Cleco Power does not expect any payments to be made under this guarantee. The projection is based on the forecasted loan and lease obligations to be incurred by DHLC, primarily for purchases of equipment. Cleco Power has the right to dispute the incurrence of loan and lease obligations through the review of the mining plan before the incurrence of such loan and lease obligations. In April 2020, Cleco Power and SWEPCO mutually agreed to not develop additional mining areas for future lignite extraction and subsequently provided notice to the LPSC of the intent to cease mining at the Dolet Hills and Oxbow mines by June 2020. The mine closures are subject to LPSC review and approval. As of December 31, 2020, all lignite reserves intended to be extracted from the Oxbow mine had been extracted. On October 6, 2020, Cleco Power and SWEPCO made a joint filing with the LPSC seeking authorization to close the Oxbow mine and to include and defer certain accelerated mine closing costs in fuel and related ratemaking treatment. On March 17, 2021, the LPSC approved the establishment of a regulatory asset for the deferral of certain accelerated mine costs in fuel and related ratemaking treatment. For more information on the Dolet Hills regulatory asset, see Note 5 — “Regulatory Assets and Liabilities — Lignite Mine Closure Cost.” Cleco Power is currently responding to data requests related to the joint filing. The Amended Lignite Mining Agreement does not affect the amount the Registrants can borrow under their credit facilities. Currently, management does not expect to be required to pay DHLC under this guarantee.

Cleco has letters of credit to MISO pursuant to energy market requirements. The letters of credit automatically renew each year and have no impact on Cleco Holdings’ or Cleco Power’s revolving credit facility. In February 2021, as a result of Winter Storms Uri and Viola, Cleco Power and Cleco Holdings, on behalf of Cleco Cajun, were required to post collateral with MISO. In March 2021, Cleco Power and Cleco Cajun settled with MISO the purchased power obligations associated with Winter Storms Uri and Viola. MISO returned associated collateral postings of $24.9 million and $6.5 million to Cleco Power and Cleco Holdings, respectively. For more information on these winter storms, see Note 17 — “Storm Restoration — Winter Storms Uri and Viola.”

Generally, neither Cleco Holdings nor Cleco Power has recourse that would enable them to recover amounts paid under their guarantee or indemnification obligations. There are

no assets held as collateral for third parties that either Cleco Holdings or Cleco Power could obtain and liquidate to recover amounts paid pursuant to the guarantees or indemnification obligations.

Other Commitments

Cleco has accrued for liabilities related to third parties, employee medical benefits, and AROs.

In April 2015, the EPA published a final rule in the Federal Register for regulating the disposal and management of CCRs from coal-fired power plants (CCR Rule). The rule established extensive requirements for existing and new CCR landfills and surface impoundments and all lateral expansions consisting of location restrictions, design and operating criteria, groundwater monitoring and corrective action, closure requirements and post closure care, and recordkeeping, notification, and internet posting requirements. In August 2018, the D.C. Court of Appeals vacated several requirements in the CCR regulation, which included eliminating the previous acceptability of compacted clay material as a liner for impoundments. As a result, on December 2, 2019, the EPA published a proposed rule that would set deadlines for costly modifications including retrofitting of clay-lined impoundments with compliant liners or closure of the impoundments. The rule was finalized and published in the Federal Register on August 28, 2020. In November 2020, Cleco submitted demonstrations to the EPA specifying its intended course of action for Rodemacher Unit 2, Dolet Hills Power Station, and Big Cajun II in order to comply with the final rule. During 2021, additional information was submitted to the LDEQ to revise and update Cleco Power’s compliance strategy. Cleco Power and Cleco Cajun have also engaged independent engineering specialists to conduct studies on the efforts and costs expected to be incurred in order to comply with the final CCR rule. During the third quarter of 2021, management received additional information in connection with Cleco Power’s and Cleco Cajun’s compliance strategies resulting in a revision to the estimated cash flows expected to be required to settle the respective AROs. Therefore, Cleco Power and Cleco Cajun recorded an increase of $13.1 million and $35.5 million, respectively, in their ARO balances.

The following tables summarize the net changes in the ARO for Cleco and Cleco Power:

(THOUSANDS)	CLECO CAJUN		CLECO POWER		CLECO
Balance, Dec. 31, 2020	$	16,658	$	11,364	$	28,022
Liabilities settled	(1,316)		$	—	(1,316)
Accretion	466		$	249	715
Revisions and adjustments	35,540		$	13,101	48,641
Balance, Sept. 30, 2021	$	51,348	$	24,714	$	76,062

As part of the Cleco Cajun Transaction, NRG agreed to indemnify Cleco for environmental costs up to $25.0 million associated with the CCR rule. At September 30, 2021, Cleco Cajun recognized indemnification assets totaling $22.1 million. The current portion of the indemnification asset of $1.1 million is reflected in Other current assets and the non-current portion of $21.0 million is reflected in Other deferred charges on Cleco’s Condensed Consolidated Balance Sheet. The indemnification asset is expected to be collected as closure costs are incurred.

Risks and Uncertainties

Cleco could be subject to possible adverse consequences if Cleco’s counterparties fail to perform their obligations or if Cleco or its affiliates are not in compliance with loan agreements or bond indentures.

Access to capital markets is a significant source of funding for both short- and long-term capital requirements not satisfied by operating cash flows.

Changes in the regulatory environment or market forces could cause Cleco to determine its assets have suffered an other-than-temporary decline in value, whereby an impairment would be required, and Cleco’s financial condition could be materially adversely affected.

Cleco Power and Cleco Cajun are participants in the MISO market. Power purchases in the MISO market are made at prevailing market prices, also referred to as LMP. LMP includes a component directly related to congestion on the transmission system and, as a result, can be different based on the location and time of the day the energy is dispatched causing energy costs to increase. Cleco Power and Cleco Cajun use FTRs to mitigate transmission congestion price risks.

On March 1, 2019, Cleco Power began to operate the Dolet Hills Power Station from June through September of each year; however, the Dolet Hills Power Station will continue to be available to operate in other months, if needed. In June 2020, management decided to retire the Dolet Hills Power Station.

In June 2020, Cleco Power remeasured its ARO liabilities due to the expected retirement of the Dolet Hills Power Station. Cleco Power’s ARO liability increased $3.3 million as a result of this remeasurement. At September 30, 2021, Cleco Power’s undivided interest in the Dolet Hills Power Station was $38.6 million and was included in base rates.

Cleco Power made a filing with the LPSC on September 7, 2021, giving notice that the Dolet Hills Power Station will be retired at the end of 2021. Cleco Power anticipates filing in the fourth quarter of 2021 an application with the LPSC requesting recovery of stranded and decommissioning costs associated with the retirement of the Dolet Hills Power Station.

On October 6, 2020, Cleco Power and SWEPCO made a joint filing with the LPSC seeking authorization to close the Oxbow mine, and to include and defer certain accelerated mine closing costs in fuel and related ratemaking treatment. The expected early closure of the mines has resulted in increased costs that will be billed through the fuel adjustment clause, which management currently believes are recoverable. Management does not believe the early closure of the mines will have an adverse impact on the recovery value of the Dolet Hills Power Station. Cleco Power is currently responding to data requests related to the joint filing.

Fuel costs incurred by the Dolet Hills Power Station are recoverable by Cleco Power through active fuel adjustment clauses. Under the Amended Lignite Mining Agreement, DHLC bills Cleco Power its proportionate share of incurred lignite extraction and associated mining-related costs as fuel is delivered. As of September 30, 2021, Cleco Power estimates $10.1 million of its proportionate share of costs will be billed by DHLC prior to the closure of the Dolet Hills Power Station. In 2009, Cleco Power acquired an interest in Oxbow, which owns mineral rights and land leases. Under a joint operating agreement pertaining to the Oxbow mineral rights and land leases, Oxbow bills Cleco Power its proportionate share of incurred costs. As of September 30, 2021, Cleco Power estimates $1.8 million of its proportionate share of costs will be

billed by Oxbow prior to the closure of the Dolet Hills Power Station. If any of these costs are not recoverable, it could materially impact the Registrants’ results of operations, financial condition, or cash flows.

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Affiliate Transactions

9 Months Ended

Sep. 30, 2021

Related Party Transactions [Abstract]

Affiliate Transactions

Note 14 — Affiliate Transactions

At September 30, 2021, and December 31, 2020, Cleco Holdings had an affiliate receivable of $3.0 million and $1.7 million, respectively, from Cleco Group primarily for franchise taxes. At both September 30, 2021, and December 31, 2020, Cleco Holdings had an affiliate payable of $41.3 million to Cleco Group primarily for 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:

	AT SEPT. 30, 2021				AT DEC. 31, 2020
(THOUSANDS)	ACCOUNTS RECEIVABLE		ACCOUNTS PAYABLE		ACCOUNTS RECEIVABLE		ACCOUNTS PAYABLE
Cleco Holdings	$	10,712	$	57,825	$	10,353	$	57,713
Support Group	2,388		11,514		3,248		14,355
Cleco Cajun	882		17		1,004		—
Total	$	13,982	$	69,356	$	14,605	$	72,068

Of the affiliate payable balances at September 30, 2021, and December 31, 2020, Cleco Power had $57.6 million payable to Cleco Holdings for the settlement of income taxes.

Oxbow bills Cleco Power its proportionate share of incurred costs related to mineral rights and land leases. These costs are included in fuel inventory and are recoverable from Cleco Power customers through the LPSC-established FAC or related wholesale contract provisions. During the three and nine months ended September 30, 2021, Cleco Power recorded $0.7 million and $2.7 million, respectively, of its proportionate share of incurred costs. During the three and nine months ended September 30, 2020, Cleco Power recorded $1.1 million and $16.6 million, respectively, of its proportionate share of incurred costs. At September 30, 2021, and December 31, 2020, Cleco Power had $0.2 million and $0.3 million, respectively, payable to Oxbow. For more information on Cleco Power’s variable interest in Oxbow, see Note 12 — “Variable Interest Entities.”

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Intangible Assets and Liabilities

9 Months Ended

Sep. 30, 2021

Intangible Assets And Liabilities Disclosure [Abstract]

Intangible Assets and Liabilities

Note 15 — Intangible Assets and Liabilities

During 2008, Cleco Katrina/Rita acquired a $177.5 million intangible asset which included $176.0 million for the right to bill and collect storm recovery charges from customers of Cleco Power and $1.5 million of financing costs. This intangible asset was fully amortized in March 2020 and had no residual value at the end of its life.

As a result of the 2016 Merger, fair value adjustments were recorded on Cleco’s Condensed Consolidated Balance Sheet for the valuation of finite intangible assets relating to the Cleco Power trade name and long-term wholesale power supply agreements. At the end of their lives, these power supply agreement intangible assets will have no residual value. The intangible assets related to the power supply agreements are amortized over the estimated life of each applicable contract ranging between 7 and 19 years, and the amortization is included in Electric operations on Cleco’s Condensed Consolidated Statements of Income.

During the third quarter of 2021, Cleco determined that the fair value of the Cleco Power trade name was less than its carrying value and an impairment of $3.8 million was recognized reducing the carrying value to zero. The impairment resulted in an increase in amortization expense and was reflected in Depreciation and amortization on Cleco’s Condensed Consolidated Statements of Income at September 30, 2021. For more information on the the trade name intangible asset impairment, see Note 6 — “Fair Value Accounting and Financial Instruments.”

As a result of the Cleco Cajun Transaction, fair value adjustments were recorded on Cleco’s Condensed Consolidated Balance Sheet for the difference between the contract and market price of acquired long-term wholesale power agreements. At the end of their lives, these intangible assets and liabilities will have no residual value. These intangibles are amortized over the estimated life of each applicable contract ranging between 6 and 8 years. The amortization is included in Electric operations on Cleco’s Condensed Consolidated Statements of Income.

As part of the Cleco Cajun Transaction, Cleco assumed an LTSA for maintenance services related to the Cottonwood Plant. This intangible liability is being amortized using the straight-line method over the estimated life of the LTSA of seven years. The amortization is included as a reduction to the LTSA prepayments on Cleco’s Condensed Consolidated Balance Sheet.

The following tables present Cleco and Cleco Power’s amortization of intangible assets and liabilities:

Cleco
	FOR THE THREE MONTHS ENDED SEPT. 30,				FOR THE NINE MONTHS ENDED SEPT. 30,
(THOUSANDS)	2021		2020		2021		2020
Intangible assets
Cleco Katrina/Rita right to bill and collect storm recovery charges	$	—	$	—	$	—	$	517
Trade name	$	3,770	$	64	$	3,897	$	191
Power supply agreements	$	6,400	$	6,400	$	19,200	$	19,200
Intangible liabilities
LTSA	$	871	$	871	$	2,613	$	2,613
Power supply agreements	$	389	$	882	$	1,989	$	2,646

Cleco Power
	FOR THE THREE MONTHS ENDED SEPT. 30,				FOR THE NINE MONTHS  ENDED SEPT. 30,
(THOUSANDS)	2021		2020		2021		2020
Cleco Katrina/Rita right to bill and collect storm recovery charges	$	—	$	—	$	—	$	517

The following tables summarize the balances for intangible assets and liabilities subject to amortization for Cleco:

Cleco
(THOUSANDS)	AT SEPT. 30, 2021		AT DEC. 31, 2020
Intangible assets
Trade name	$	—	$	5,100
Power supply agreements	184,004		184,004
Total intangible assets carrying amount	184,004		189,104
Intangible liabilities
LTSA	24,100		24,100
Power supply agreements	14,200		14,200
Total intangible liability carrying amount	38,300		38,300
Net intangible assets carrying amount	145,704		150,804
Accumulated amortization	(77,326)		(63,932)
Net intangible assets subject to amortization	$	68,378	$	86,872

Goodwill

On April 13, 2016, in connection with the completion of the 2016 Merger, Cleco recognized goodwill of $1.49 billion. Management assigned the recognized goodwill to the Cleco Power reporting unit. Goodwill is required to be tested for impairment at the reporting unit level on an annual basis and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. Application of the goodwill impairment test requires significant judgments, including the identification of reporting units, assignments of assets and liabilities to reporting units, assignment of goodwill to reporting units, and the determination of the fair value of the reporting units.

Cleco conducted its 2021 annual impairment test using an August 1, 2021, measurement date. The fair value of the Cleco Power reporting unit was estimated using a weighted combination of the income approach, which estimates fair value based on discounted cash flows, and the market

approach, which estimates fair value based on market comparables within the utility and energy industries. Significant assumptions used in these fair value estimates include estimation of future cash flows related to capital expenditures, long-term rate of growth, and weighted-average cost of capital or discount rate. Changes in these assumptions could materially affect the determination of fair value and goodwill impairment at Cleco Power. Based on the tests performed, management has determined that the fair value of the Cleco Power reporting unit exceeds the carrying value resulting in no impairment of Cleco Power’s goodwill as of August 1, 2021.

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Accumulated Other Comprehensive Loss

9 Months Ended

Sep. 30, 2021

Equity [Abstract]

Accumulated Other Comprehensive Loss

Note 16 — Accumulated Other Comprehensive Loss

The components of accumulated other comprehensive loss are summarized in the following tables for Cleco and Cleco Power. All amounts are reported net of income taxes. Amounts in parentheses indicate debits.

Cleco
	FOR THE THREE MONTHS ENDED SEPT. 30, 2021		FOR THE NINE MONTHS ENDED SEPT. 30, 2021
(THOUSANDS)	POSTRETIREMENT BENEFIT NET LOSS
Balances, beginning of period	$	(25,588)	$	(25,796)
Amounts reclassified from AOCI
Amortization of postretirement benefit net loss	96		304
Balances, Sept. 30, 2021	$	(25,492)	$	(25,492)

	FOR THE THREE MONTHS ENDED SEPT. 30, 2020		FOR THE NINE MONTHS ENDED SEPT. 30, 2020
(THOUSANDS)	POSTRETIREMENT BENEFIT NET LOSS
Balances, beginning of period	$	(16,657)	$	(17,513)
Amounts reclassified from AOCI
Amortization of postretirement benefit net loss	448		1,304
Balances, Sept. 30, 2020	$	(16,209)	$	(16,209)

Cleco Power
	FOR THE THREE MONTHS ENDED SEPT. 30, 2021						FOR THE NINE MONTHS ENDED SEPT. 30, 2021
(THOUSANDS)	POSTRETIREMENT BENEFIT NET LOSS		NET LOSS ON CASH FLOW HEDGES		TOTAL AOCI		POSTRETIREMENT BENEFIT NET LOSS		NET LOSS ON CASH FLOW HEDGES		TOTAL AOCI
Balances, beginning of period	$	(18,394)	$	(5,486)	$	(23,880)	$	(19,139)	$	(5,614)	$	(24,753)
Amounts reclassified from AOCI
Amortization of postretirement benefit net loss	350		—		350		1,095		—		1,095
Reclassification of net loss to interest charges	—		63		63		—		191		191
Balances, Sept. 30, 2021	$	(18,044)	$	(5,423)	$	(23,467)	$	(18,044)	$	(5,423)	$	(23,467)

	FOR THE THREE MONTHS ENDED SEPT. 30, 2020						FOR THE NINE MONTHS ENDED SEPT. 30, 2020
(THOUSANDS)	POSTRETIREMENT BENEFIT NET LOSS		NET LOSS ON CASH FLOW HEDGES		TOTAL AOCI		POSTRETIREMENT BENEFIT NET LOSS		NET LOSS ON CASH FLOW HEDGES		TOTAL AOCI
Balances, beginning of period	$	(15,872)	$	(5,740)	$	(21,612)	$	(16,717)	$	(5,868)	$	(22,585)
Amounts reclassified from AOCI
Amortization of postretirement benefit net loss	373		—		373		1,218		—		1,218
Reclassification of net loss to interest charges	—		63		63		—		191		191
Balances, Sept. 30, 2020	$	(15,499)	$	(5,677)	$	(21,176)	$	(15,499)	$	(5,677)	$	(21,176)

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Storm Restoration

9 Months Ended

Sep. 30, 2021

Unusual or Infrequent Items, or Both [Abstract]

Storm Restorations

Note 17 — Storm Restoration

Hurricanes Laura, Delta, and Zeta

In August and October 2020, Cleco Power’s distribution and transmission systems sustained substantial damage from three separate hurricanes.

Cleco Power’s total storm restoration costs related to the hurricanes is approximately $242.6 million. The damage to equipment from the hurricanes required replacement, as well as repair of existing assets. Therefore, the balance sheets of Cleco and Cleco Power reflect the capitalization of approximately 63%, or approximately $152.2 million, of the total restoration costs recorded at September 30, 2021. At September 30, 2021, Cleco Power had regulatory assets for non-capital expenses related to Hurricanes Laura, Delta, and Zeta, as allowed by the LPSC, totaling $78.2 million.

On December 4, 2020, Cleco Power filed an application with the LPSC requesting an interim rate recovery for return on certain storm restoration costs associated with the hurricanes until securitization of such costs can be completed. On May 19, 2021, the LPSC issued an order authorizing Cleco Power to recover $16.0 million annually for interim storm recovery costs. This order is effective until such time that the LPSC issues its order authorizing the recovery of the verified final storm costs and securitization of those costs, which is expected in the first quarter of 2022. Cleco Power began collecting this amount through rates on June 1, 2021.

Winter Storms Uri and Viola

In February 2021, Winter Storms Uri and Viola reached Louisiana causing Cleco’s service territories to experience extreme and unprecedented winter weather that resulted in damage to Cleco Power’s distribution assets, electricity generation supply shortages, natural gas supply shortages, and increases in wholesale prices of natural gas in the U.S., primarily due to prolonged freezing temperatures. Cleco Power’s total storm restoration costs related to Winter Storms Uri and Viola is approximately $10.5 million. The damage to equipment from the storms required replacement, as well as repair of the existing assets. Therefore, the balance sheets of Cleco and Cleco Power reflect the capitalization of approximately 80%, or approximately $8.4 million, of the estimated total restoration costs recorded at September 30, 2021. At September 30, 2021, Cleco Power had a regulatory asset for the remaining operations and maintenance costs of $2.0 million, as allowed by the LPSC. Cleco Power has requested recovery of these costs through the storm securitization filing that was made with the LPSC on August 5, 2021.

Cleco Power’s incremental fuel and purchased power costs incurred as a result of Winter Storms Uri and Viola is approximately $55.0 million. On March 29, 2021, Cleco Power received approval from the LPSC to recover $50.0 million of these costs over a period of 12 months beginning with the May 2021 bills. On May 11, 2021, Cleco Power received notice of an audit from the LPSC for the fuel costs incurred during the time period required to restore services to Cleco Power’s customers during Winter Storms Uri and Viola. Cleco Power has responded to its first set of data requests. Management is unable to determine the outcome or timing of the audit.

In February 2021, as a result of Winter Storms Uri and Viola, Cleco Power and Cleco Holdings, on behalf of Cleco Cajun, were required to post collateral with MISO. In March

2021, Cleco Power and Cleco Cajun settled with MISO the purchased power obligations associated with Winter Storms Uri and Viola. MISO returned associated collateral postings of $24.9 million and $6.5 million to Cleco Power and Cleco Holdings, respectively.

Hurricane Ida

On August 29, 2021, Hurricane Ida made landfall in southeast Louisiana as a Category 4 storm, causing power outages for approximately 100,000 of Cleco Power’s electric customers located primarily in southeastern Louisiana. By September 11, 2021, power was restored to 100% of customers who could receive power.

Cleco Power’s current estimate of total storm restoration costs related to Hurricane Ida is between $85.0 million and $95.0 million. The damage to equipment from the hurricane required replacement, as well as repair of existing assets. Therefore, the balance sheets of Cleco and Cleco Power reflect the capitalization of approximately 56%, or approximately $49.1 million, of the total restoration costs recorded at September 30, 2021. At September 30, 2021, Cleco Power had a regulatory asset for non-capital expenses related to Hurricane Ida, as allowed by the LPSC, totaling $36.8 million.

On September 28, 2021, Cleco Power made a supplemental filing to its application for storm restoration costs securitization to recover costs related to Hurricane Ida.

Storm Securitization

On August 5, 2021, Cleco Power filed testimony with the LPSC relating to securitization of the final storm costs for Hurricanes Laura, Delta, and Zeta, and Winter Storms Uri and Viola, totaling $342.0 million, including the establishment of a newly funded $100.0 million storm reserve to cover future storm costs. On September 28, 2021, Cleco Power filed supplemental testimony with the LPSC relating to storm securitization requesting an additional $100.0 million for a separate storm reserve to cover costs associated with Hurricane Ida. Cleco Power continues to respond to several sets of data requests received from the LPSC related to the securitization filing.

Cleco Power, in line with other impacted utilities, will seek available funds from the U.S. government for relief of costs incurred from Hurricanes Laura, Delta, and Zeta. Cleco Power cannot predict the likelihood that any funding from the U.S. government ultimately will be approved.

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Summary of Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2021

Accounting Policies [Abstract]

Covid-19 Impacts

In March 2020, WHO declared the outbreak of COVID-19 to be a global pandemic, and the U.S. declared a national emergency. In response to these declarations and the rapid spread of COVID-19, federal, state and local governments imposed varying degrees of restrictions on business and social activities to contain COVID-19, including quarantine and “stay-at-home” orders and directives in Cleco’s service territory. State and local authorities also subsequently implemented multistep policies to reopen various sectors of the economy such as retail establishments, health and personal care businesses, and restaurants, among others. During March and April 2021, due to the reduction in new COVID-19 cases and hospitalizations and the availability of COVID-19 vaccines, the governor of the state of Louisiana reduced restrictions that were previously in effect, eased capacity limits on businesses and social gatherings, and revoked the mandatory, state-wide mask mandate. However, effective August 4, 2021, the state-wide mask mandate was reinstated due to a surge in COVID-19 cases. Due to the decrease in the number of COVID-19 cases, effective October 27, 2021, the mandatory, state-wide mask mandate was once again revoked.

Cleco has modified some of its business operations, as these restrictions have significantly impacted many sectors of the economy. Impacts include record levels of unemployment, with businesses, nonprofit organizations, and governmental entities modifying, curtailing, or ceasing normal operations. Cleco is monitoring the ongoing COVID-19 pandemic and continues to adjust certain business practices to conform to government restrictions and best practices encouraged by the CDC, WHO, OSHA, and other governmental and regulatory authorities. The COVID-19 pandemic may worsen in the U.S. during the upcoming months, which may cause federal, state, and local governments to reconsider restrictions on business and social activities. In the event governments reinstate or

increase restrictions, the reopening of the economy may be further curtailed.

On September 9, 2021, the Presidential Administration announced mandatory COVID-19 vaccination plans impacting federal contractors and employees of companies having 100 or more employees. On November 4, 2021, OSHA announced a new emergency temporary standard requiring employers with 100 or more employees to develop, implement, and enforce a mandatory COVID-19 vaccination policy, unless they adopt a policy requiring employees to choose to either be vaccinated or undergo regular COVID-19 testing and wear a face covering at work. Cleco is closely monitoring updates concerning these vaccination mandates and any potential impacts they may have on its businesses and workforce. The impact of these vaccination standards could have an adverse impact on Cleco’s workforce, labor relations, and operations.

In March 2020, the LPSC issued an executive order prohibiting the disconnection of utilities for nonpayment. At September 30, 2021, Cleco Power had a regulatory asset of $3.0 million recorded for expenses incurred related to the executive order, as allowed by the LPSC. While Cleco continues to assess the COVID-19 situation, Cleco cannot predict the full impact that COVID-19, or the significant disruption and volatility currently being experienced in the markets, will have on its business, cash flows, liquidity, financial condition, and results of operations at this time, due to numerous uncertainties. However, the ultimate impacts will depend on future developments, including, among others, the ultimate geographic spread of COVID-19, the consequences of governmental and other measures designed to prevent the spread of COVID-19, the availability, timely distribution and acceptance of effective treatments and vaccines, the duration of the pandemic, actions taken by governmental authorities, customers, suppliers and other third parties, workforce availability, and the timing and extent to which normal economic and operating conditions resume.

Principles of Consolidation

The accompanying condensed consolidated financial statements of Cleco include the accounts of Cleco and its majority-owned subsidiaries after elimination of intercompany accounts and transactions.

Basis of Presentation

The condensed consolidated financial statements of Cleco and Cleco Power have been prepared in accordance with GAAP for interim financial information and with the instructions to Form 10-Q and Regulation S-X. Accordingly, these condensed consolidated financial statements do not include all of the information and notes required by GAAP for annual financial statements. The year-end condensed consolidated balance sheet data was derived from audited financial statements. Because the interim condensed consolidated financial statements and the accompanying notes do not include all of the information and notes required by GAAP for annual financial statements, the condensed consolidated financial statements and other information included in this Quarterly Report on Form 10-Q should be read in conjunction with the consolidated financial statements and accompanying notes in the Registrants’ Combined Annual Report on Form 10-K for the fiscal year ended December 31, 2020.

These condensed consolidated financial statements, in the opinion of management, reflect all normal recurring adjustments that are necessary for a fair statement of the financial position and results of operations of Cleco and Cleco Power. Amounts reported in Cleco and Cleco Power’s interim financial statements are not necessarily indicative of amounts expected for the annual periods due to the effects of seasonal temperature variations on energy consumption, regulatory rulings, the timing of maintenance on electric generating units, changes in mark-to-market valuations, changing commodity prices, discrete income tax items, and other factors.

In preparing financial statements that conform to GAAP, management must make estimates and assumptions that affect the reported amounts of assets and liabilities, the reported amounts of revenues and expenses, and the disclosure of contingent assets and liabilities at the date of the financial statements. Actual results could differ from those estimates.

Restricted Cash and Cash Equivalents

Various agreements to which Cleco is subject contain covenants that restrict its use of cash. As certain provisions under these agreements are met, cash is transferred out of related escrow accounts and becomes available for its intended purposes and/or general corporate purposes.Prior to the repayment of the storm recovery bonds at their scheduled maturity in March 2020, Cleco Katrina/Rita had the right to bill and collect storm restoration costs from Cleco Power’s customers. As cash was collected, it was restricted for payment of administrative fees, interest, and principal on the storm recovery bonds.

Reserves for Credit Losses

Customer accounts receivable are recorded at the invoiced amount and do not bear interest. Customer accounts receivable are generally considered to become past due 20 days after the billing date. Cleco recognizes write-offs within the allowance for credit losses once all recovery methods have been exhausted. It is the policy of management to review accounts receivable and unbilled revenue monthly using a reserve matrix based on historical bad debt write-offs, as well as current and forecasted economic conditions, to establish a credit loss estimate. Management’s historical credit loss analysis included periods of economic recessions, natural disasters, and temporary changes to collection policies. Due to the critical necessity of electricity, none of these past events have significantly impacted Cleco’s credit loss rates. Although Cleco’s service territory experienced a recent economic decline during 2020 and 2021, primarily related to the COVID-19 pandemic and weather-related events, the economic outlook at September 30, 2021, was still within range of its historical credit loss analysis.

Recent Authoritative Guidance

In March 2020, FASB issued optional guidance, for a limited period of time, that applies to entities 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 guidance includes 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 optional guidance may be applied from March 12, 2020, through December 31, 2022. Management has identified contracts with reference rates that will be discontinued, primarily related to long-term debt obligations. Certain debt contracts have been amended to include fallback provisions that provide substitute reference rates upon the discontinuance of LIBOR, among other amendments. Management will continue to modify contracts to include

similar fallback language and expects to apply this guidance on an ongoing basis. Management does not expect this guidance to have a significant impact on the Registrants’ results of operations, financial condition, or cash flows.

In December 2019, FASB amended the guidance for accounting for income taxes. The amendments simplify the accounting for income taxes by removing certain exceptions to general principles included in the accounting guidance. Effective January 1, 2021, Cleco adopted the amended accounting guidance. Adoption of this guidance did not materially impact the Registrants’ results of operations, financial condition, or cash flows.

Regulatory Assets and Liabilities

Cleco Power capitalizes or defers certain costs for recovery from customers and recognizes a liability for amounts expected to be returned to customers based on regulatory approval and management’s ongoing assessment that it is probable these items will be recovered or refunded through the ratemaking process.

Under the current regulatory environment, Cleco Power believes these regulatory assets will be fully recoverable; however, if in the future, as a result of regulatory changes or

competition, Cleco Power’s ability to recover these regulatory assets would no longer be probable, then to the extent that such regulatory assets were determined not to be recoverable, Cleco Power would be required to write-down such assets. In addition, potential deregulation of the industry, or possible future changes in the method of rate regulation of Cleco Power, could require discontinuance of the application of the authoritative guidance on regulated operations.

Pension Plan and Employee Benefits

Employees hired before August 1, 2007, are covered by a non-contributory, defined benefit pension plan. Based on the funding assumptions at December 31, 2020, and the funding relief provided by the American Rescue Plan Act, which was signed by the President on March 11, 2021, management estimates that no pension contributions will be required through 2025. Cleco has not made, and does not expect to make, any contributions to the pension plan in 2021.

Cleco Power is the plan sponsor and Support Group is the plan administrator. Benefits under the plan reflect an employee’s years of service, age at retirement, and accrued benefit at retirement.

Cleco’s retirees may be eligible to receive Other Benefits. Dependents of Cleco’s retirees may also be eligible to receive Other Benefits with the exception of life insurance benefits.

The non-service components of net periodic pension and Other Benefits cost are included in Other income (expense), net within Cleco and Cleco Power’s Condensed Consolidated Statements of Income.

Certain Cleco officers are covered by SERP. Cleco does not fund the SERP liability, but instead pays for current benefits out of general funds available. Cleco Power has formed a rabbi trust. The life insurance policies issued on SERP participants designate the rabbi trust as the beneficiary. Market conditions could have a significant impact on the cash surrender value of the life insurance policies. Proceeds from the life insurance policies are expected to be used to pay the SERP participants’ death benefits, as well as future SERP payments. However, because SERP is a non-qualified plan, the assets of the trust could be used to satisfy general creditors of Cleco Power in the event of insolvency. All SERP benefits are paid out of general cash available of the respective companies that employed the officer. Cleco Power is the plan sponsor and Support Group is the plan administrator.

The non-service components of net periodic benefit cost related to SERP are included in Other income (expense), net within Cleco and Cleco Power’s Condensed Consolidated

Statements of Income.Cleco’s 401(k) Plan is intended to provide active, eligible employees with voluntary, long-term savings and investment opportunities. The 401(k) Plan is a defined contribution plan and is subject to the applicable provisions of the Employee Retirement Income Security Act of 1974. In accordance with the 401(k) Plan, employer contributions are made in the form of cash. Cash contributions are invested in proportion to the participant’s voluntary contribution investment choices. Participation in the Plan is voluntary, and active Cleco employees are eligible to participate.

Income Taxes

Cleco classifies all interest related to uncertain tax positions as a component of interest payable and interest expense.Cleco classifies income tax penalties as a component of other expense.

Variable Interest Entities

Cleco and Cleco Power apply the equity method of accounting to report the investment in Oxbow in the consolidated financial statements. Under the equity method, the assets and liabilities of this entity are reported as Equity investment in investee on Cleco and Cleco Power’s Condensed Consolidated Balance Sheets. The revenue and expenses (excluding income taxes) of this entity are netted and reported as equity income or loss from investees on Cleco and Cleco Power’s Condensed Consolidated Statements of Income.

Equity Method Investments

Cleco and Cleco Power apply the equity method of accounting to report the investment in Oxbow in the consolidated financial statements. Under the equity method, the assets and liabilities of this entity are reported as Equity investment in investee on Cleco and Cleco Power’s Condensed Consolidated Balance Sheets. The revenue and expenses (excluding income taxes) of this entity are netted and reported as equity income or loss from investees on Cleco and Cleco Power’s Condensed Consolidated Statements of Income.

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Summary of Significant Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2021

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:

Cleco
(THOUSANDS)	AT SEPT. 30, 2021		AT DEC. 31, 2020
Current
Cleco Katrina/Rita storm recovery surcharge	$	1,674	$	2,626
Cleco Power’s charitable contributions	678		1,718
Cleco Power’s rate credit escrow	—		201
Total current	2,352		4,545
Non-current
Diversified Lands’ mitigation escrow	22		22
Cleco Cajun’s defense fund	723		722
Total non-current	745		744
Total restricted cash and cash equivalents	$	3,097	$	5,289

Changes in Allowance for Credit Losses, Other

The tables below present the changes in the allowance for credit losses by receivable for Cleco and Cleco Power:

Cleco
	FOR THE THREE MONTHS ENDED SEPT. 30, 2021						FOR THE NINE MONTHS ENDED SEPT. 30, 2021
(THOUSANDS)	ACCOUNTS RECEIVABLE		OTHER*		TOTAL		ACCOUNTS RECEIVABLE		OTHER*		TOTAL
Balances, beginning of period	$	1,334	$	1,638	$	2,972	$	2,758	$	1,638	$	4,396
Current period provision	567		—		567		3,057		—		3,057
Charge-offs	(730)		—		(730)		(5,172)		—		(5,172)
Recovery	586		—		586		1,114		—		1,114
Balances, Sept. 30, 2021	$	1,757	$	1,638	$	3,395	$	1,757	$	1,638	$	3,395

* Loan held at Diversified Lands that was fully reserved for at September 30, 2021.

	FOR THE THREE MONTHS ENDED SEPT. 30, 2020						FOR THE NINE MONTHS ENDED SEPT. 30, 2020
(THOUSANDS)	ACCOUNTS RECEIVABLE		OTHER*		TOTAL		ACCOUNTS RECEIVABLE		OTHER*		TOTAL
Balances, beginning of period	$	3,486	$	1,638	$	5,124	$	3,005	$	1,250	$	4,255
CECL adoption	—		—		—		71		—		71
Current period provision	2,041		—		2,041		5,675		388		6,063
Charge-offs	—		—		—		(4,091)		—		(4,091)
Recovery	54		—		54		921		—		921
Balances, Sept. 30, 2020	$	5,581	$	1,638	$	7,219	$	5,581	$	1,638	$	7,219

* Loan held at Diversified Lands that was fully reserved for at September 30, 2020.

Changes in Allowance for Credit Losses, Accounts Receivable

The tables below present the changes in the allowance for credit losses by receivable for Cleco and Cleco Power:

Cleco
	FOR THE THREE MONTHS ENDED SEPT. 30, 2021						FOR THE NINE MONTHS ENDED SEPT. 30, 2021
(THOUSANDS)	ACCOUNTS RECEIVABLE		OTHER*		TOTAL		ACCOUNTS RECEIVABLE		OTHER*		TOTAL
Balances, beginning of period	$	1,334	$	1,638	$	2,972	$	2,758	$	1,638	$	4,396
Current period provision	567		—		567		3,057		—		3,057
Charge-offs	(730)		—		(730)		(5,172)		—		(5,172)
Recovery	586		—		586		1,114		—		1,114
Balances, Sept. 30, 2021	$	1,757	$	1,638	$	3,395	$	1,757	$	1,638	$	3,395

* Loan held at Diversified Lands that was fully reserved for at September 30, 2021.

	FOR THE THREE MONTHS ENDED SEPT. 30, 2020						FOR THE NINE MONTHS ENDED SEPT. 30, 2020
(THOUSANDS)	ACCOUNTS RECEIVABLE		OTHER*		TOTAL		ACCOUNTS RECEIVABLE		OTHER*		TOTAL
Balances, beginning of period	$	3,486	$	1,638	$	5,124	$	3,005	$	1,250	$	4,255
CECL adoption	—		—		—		71		—		71
Current period provision	2,041		—		2,041		5,675		388		6,063
Charge-offs	—		—		—		(4,091)		—		(4,091)
Recovery	54		—		54		921		—		921
Balances, Sept. 30, 2020	$	5,581	$	1,638	$	7,219	$	5,581	$	1,638	$	7,219

* Loan held at Diversified Lands that was fully reserved for at September 30, 2020.

CLECO POWER

Restricted Cash and Cash Equivalents Items [Line Items]

Restricted Cash and Cash Equivalents

Cleco Power
(THOUSANDS)	AT SEPT. 30, 2021		AT DEC. 31, 2020
Current
Cleco Katrina/Rita storm recovery surcharge	$	1,674	$	2,626
Charitable contributions	678		1,718
Rate credit escrow	—		201
Total restricted cash and cash equivalents	$	2,352	$	4,545

Changes in Allowance for Credit Losses, Accounts Receivable

Cleco Power
	FOR THE THREE MONTHS ENDED SEPT. 30, 2021		FOR THE NINE MONTHS ENDED SEPT. 30, 2021
(THOUSANDS)	ACCOUNTS RECEIVABLE
Balances, beginning of period	$	1,334	$	2,758
Current period provision	567		3,057
Charge-offs	(730)		(5,172)
Recovery	586		1,114
Balances, Sept. 30, 2021	$	1,757	$	1,757

	FOR THE THREE MONTHS ENDED SEPT. 30, 2020		FOR THE NINE MONTHS ENDED SEPT. 30, 2020
(THOUSANDS)	ACCOUNTS RECEIVABLE
Balances, beginning of period	$	3,486	$	3,005
CECL adoption	—		71
Current period provision	2,041		5,675
Charge-offs	—		(4,091)
Recovery	54		921
Balances, Sept. 30, 2020	$	5,581	$	5,581

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Leases (Tables)

9 Months Ended

Sep. 30, 2021

Leases [Abstract]

Lease Income Under Cottonwood Sale Leaseback

Cleco Cajun’s lease income under the Cottonwood Sale Leaseback for the three and nine months ended September 30, 2021, and 2020, was as follows:

	FOR THE THREE MONTHS ENDED SEPT. 30,				FOR THE NINE MONTHS ENDED SEPT. 30,
(THOUSANDS)	2021		2020		2021		2020
Fixed payments	$	10,000	$	10,000	$	30,000	$	30,000
Variable payments	4,938		5,190		15,413		15,950
Amortization of deferred lease liability*	2,301		2,301		6,904		6,904
Total lease income	$	17,239	$	17,491	$	52,317	$	52,854

* Consists of amortization 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.

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Revenue Recognition (Tables)

9 Months Ended

Sep. 30, 2021

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue

Operating revenue, net for the three and nine months ended September 30, 2021, and 2020, was as follows:

	FOR THE THREE MONTHS ENDED SEPT. 30, 2021
(THOUSANDS)	CLECO POWER			CLECO CAJUN			OTHER			ELIMINATIONS		TOTAL
Revenue from contracts with customers
Retail revenue
Residential (1)	$	148,522		$	—		$	—		$	—	$	148,522
Commercial (1)	82,711			—			—			—		82,711
Industrial (1)	45,446			—			—			—		45,446
Other retail (1)	4,479			—			—			—		4,479
Electric customer credits	(764)			—			—			—		(764)
Total retail revenue	280,394			—			—			—		280,394
Wholesale, net	74,831		(1)	107,501			(2,420)		(2)	—		179,912
Transmission, net	17,235		(3)	17,903			—			(2,217)		32,921
Other	5,618			—			—			—		5,618
Affiliate (4)	1,380			—			32,116			(33,496)		—
Total revenue from contracts with customers	379,458			125,404			29,696			(35,713)		498,845
Revenue unrelated to contracts with customers
Other	1,094		(5)	17,254		(6)	1			—		18,349
Total revenue unrelated to contracts with customers	1,094			17,254			1			—		18,349
Operating revenue, net	$	380,552		$	142,658		$	29,697		$	(35,713)	$	517,194

(1) Includes fuel recovery revenue.

(2) Amortization of intangible assets related to Cleco Power’s wholesale power supply agreements.

(3) Includes $0.1 million of electric customer credits.

(4) Includes interdepartmental rents and support services. This revenue is eliminated upon consolidation.

(5) Realized gains associated with FTRs.

(6) Includes $14.9 million in lease revenue related to the Cottonwood Sale Leaseback and $2.3 million of deferred lease revenue amortization.

	FOR THE THREE MONTHS ENDED SEPT. 30, 2020
(THOUSANDS)	CLECO POWER			CLECO CAJUN			OTHER			ELIMINATIONS		TOTAL
Revenue from contracts with customers
Retail revenue
Residential (1)	$	128,981		$	—		$	—		$	—	$	128,981
Commercial (1)	68,220			—			—			—		68,220
Industrial (1)	32,809			—			—			—		32,809
Other retail (1)	3,614			—			—			—		3,614
Electric customer credits	(16,534)			—			—			—		(16,534)
Total retail revenue	217,090			—			—			—		217,090
Wholesale, net	52,216		(1)	99,956			(2,420)		(2)	—		149,752
Transmission, net	14,656			13,818			—			(1,510)		26,964
Other	3,118			—			—			—		3,118
Affiliate (3)	1,506			—			35,522			(37,028)		—
Total revenue from contracts with customers	288,586			113,774			33,102			(38,538)		396,924
Revenue unrelated to contracts with customers
Other	3,013		(4)	17,513		(5)	1			—		20,527
Total revenue unrelated to contracts with customers	3,013			17,513			1			—		20,527
Operating revenue, net	$	291,599		$	131,287		$	33,103		$	(38,538)	$	417,451

(1) Includes fuel recovery revenue.

(2) Amortization of intangible assets related to Cleco Power’s wholesale power supply agreements.

(3) Includes interdepartmental rents and support services. This revenue is eliminated upon consolidation.

(4) Realized gains associated with FTRs.

(5) Includes $15.2 million in lease revenue related to the Cottonwood Sale Leaseback and $2.3 million of deferred lease revenue amortization.

	FOR THE NINE MONTHS ENDED SEPT. 30, 2021
(THOUSANDS)	CLECO POWER			CLECO CAJUN			OTHER			ELIMINATIONS		TOTAL
Revenue from contracts with customers
Retail revenue
Residential (1)	$	348,918		$	—		$	—		$	—	$	348,918
Commercial (1)	214,129			—			—			—		214,129
Industrial (1)	119,497			—			—			—		119,497
Other retail (1)	11,925			—			—			—		11,925
Electric customer credits	(40,794)			—			—			—		(40,794)
Total retail revenue	653,675			—			—			—		653,675
Wholesale, net	182,769		(1)	300,415			(7,260)		(2)	—		475,924
Transmission, net	44,530		(3)	46,733		(4)	—			(5,752)		85,511
Other	13,509			—			—			(1)		13,508
Affiliate (5)	4,259			—			85,392			(89,651)		—
Total revenue from contracts with customers	898,742			347,148			78,132			(95,404)		1,228,618
Revenue unrelated to contracts with customers
Other	9,953		(6)	52,362		(7)	4			—		62,319
Total revenue unrelated to contracts with customers	9,953			52,362			4			—		62,319
Operating revenue, net	$	908,695		$	399,510		$	78,136		$	(95,404)	$	1,290,937

(1) Includes fuel recovery revenue.

(2) Amortization of intangible assets related to Cleco Power’s wholesale power supply agreements.

(3) Includes $0.4 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) Realized gains associated with FTRs.

(7) Includes $45.4 million in lease revenue related to the Cottonwood Sale Leaseback and $6.9 million of deferred lease revenue amortization.

	FOR THE NINE MONTHS ENDED SEPT. 30, 2020
(THOUSANDS)	CLECO POWER			CLECO CAJUN			OTHER			ELIMINATIONS		TOTAL
Revenue from contracts with customers
Retail revenue
Residential (1)	$	308,525		$	—		$	—		$	—	$	308,525
Commercial (1)	190,905			—			—			—		190,905
Industrial (1)	94,227			—			—			—		94,227
Other retail (1)	10,416			—			—			—		10,416
Surcharge	2,440			—			—			—		2,440
Electric customer credits	(33,219)			—			—			—		(33,219)
Total retail revenue	573,294			—			—			—		573,294
Wholesale, net	140,139		(1)	273,836			(7,260)		(2)	—		406,715
Transmission, net	38,273		(3)	39,880		(4)	—			(4,966)		73,187
Other	10,416			—			—			1		10,417
Affiliate (5)	3,852			204			93,938			(97,994)		—
Total revenue from contracts with customers	765,974			313,920			86,678			(102,959)		1,063,613
Revenue unrelated to contracts with customers
Other	6,272		(6)	52,895		(7)	2			—		59,169
Total revenue unrelated to contracts with customers	6,272			52,895			2			—		59,169
Operating revenue, net	$	772,246		$	366,815		$	86,680		$	(102,959)	$	1,122,782

(1) Includes fuel recovery revenue.

(2) Amortization of intangible assets related to Cleco Power’s wholesale power supply agreements.

(3) Includes $0.8 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) Realized gains associated with FTRs.

(7) Includes $46.0 million in lease revenue related to the Cottonwood Sale Leaseback and $6.9 million of deferred lease revenue amortization.

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Regulatory Assets and Liabilities (Tables)

9 Months Ended

Sep. 30, 2021

Regulatory Assets [Line Items]

Schedule of Regulatory Assets

The following table summarizes Cleco’s net regulatory assets and liabilities:

Cleco
(THOUSANDS)	AT SEPT. 30, 2021		AT DEC. 31, 2020
Total Cleco Power regulatory assets, net	$	576,062	$	275,469
2016 Merger adjustments *
Fair value of long-term debt	114,001		119,553
Postretirement costs	13,921		15,411
Financing costs	7,334		7,592
Debt issuance costs	5,004		5,254
Total Cleco regulatory assets, net	$	716,322	$	423,279

* Cleco regulatory assets include acquisition accounting adjustments as a result of the 2016 Merger.

CLECO POWER

Regulatory Assets [Line Items]

Schedule of Regulatory Assets

The following table summarizes Cleco Power’s regulatory assets and liabilities:

Cleco Power
					REMAINING RECOVERY PERIOD (YRS.)
(THOUSANDS)	AT SEPT. 30, 2021		AT DEC. 31, 2020
Regulatory assets
Acadia Unit 1 acquisition costs	$	1,939	$	2,019	18.5
Accumulated deferred fuel (1)	78,847		28,194		Various	(2)
AFUDC equity gross-up	67,348		69,670		Various	(3)
Affordability study	13,438		—		10
AMI deferred revenue requirement	2,181		2,591		4
AROs (1)(7)	8,060		5,488
Bayou Vista to Segura deferred revenue requirement (7)	287		—
Coughlin transaction costs	853		876		28
COVID-19 executive order (7)	2,953		2,953
Deferred storm restoration costs - Hurricane Delta (7)	17,866		17,051
Deferred storm restoration costs - Hurricane Ida (7)	36,836		—
Deferred storm restoration costs - Hurricane Laura (7)	56,815		54,406
Deferred storm restoration costs - Hurricane Zeta (7)	3,496		3,493
Deferred storm restoration costs - Winter Storms Uri & Viola (7)	1,974		—
Dolet Hills Power Station closure costs (7)	112,158		48,982
Emergency declarations	—		270		—
Energy efficiency	1,998		2,820		1.5
Financing costs (1)	6,919		7,184		Various	(4)
Interest costs	3,521		3,708		Various	(3)
Lignite Mine closure costs (7)	93,093		—
Madison Unit 3 property taxes (7)	6,272		—
Non-service cost of postretirement benefits	11,662		9,901		Various	(3)
Other	13,247		4,229		Various	(2)
Postretirement costs	149,883		165,437		Various	(5)
Production operations and maintenance expenses	1,998		4,058		Various	(6)
Rodemacher Unit 2 deferred costs (7)	5,519		1,333
St. Mary Clean Energy Center	6,524		3,479		4
Training costs	5,968		6,085		38.5
Tree trimming costs	9,771		11,807		3.5
Total regulatory assets	721,426		456,034
Regulatory liabilities
AFUDC (7)	(6,500)		(4,218)
Corporate franchise tax, net	—		(763)		—
Deferred taxes, net	(138,864)		(175,584)		Various
Total regulatory liabilities	(145,364)		(180,565)
Total regulatory assets, net	$	576,062	$	275,469
(1) Represents regulatory assets for past expenditures that were not earning a return on investment at September 30, 2021, and December 31, 2020, respectively. All other assets are earning a return on investment. (2) For more information related to the remaining recovery period, refer to the following disclosures for each specific regulatory asset or liability. (3) Amortized over the estimated lives of the respective assets. (4) Amortized over the terms of the related debt issuances. (5) Amortized over the average service life of the remaining plan participants. (6) Deferral is recovered over the following three year regulatory period. (7) Currently not in a recovery period.

Schedule of Regulatory Liabilities

The following table summarizes Cleco Power’s regulatory assets and liabilities:

Cleco Power
					REMAINING RECOVERY PERIOD (YRS.)
(THOUSANDS)	AT SEPT. 30, 2021		AT DEC. 31, 2020
Regulatory assets
Acadia Unit 1 acquisition costs	$	1,939	$	2,019	18.5
Accumulated deferred fuel (1)	78,847		28,194		Various	(2)
AFUDC equity gross-up	67,348		69,670		Various	(3)
Affordability study	13,438		—		10
AMI deferred revenue requirement	2,181		2,591		4
AROs (1)(7)	8,060		5,488
Bayou Vista to Segura deferred revenue requirement (7)	287		—
Coughlin transaction costs	853		876		28
COVID-19 executive order (7)	2,953		2,953
Deferred storm restoration costs - Hurricane Delta (7)	17,866		17,051
Deferred storm restoration costs - Hurricane Ida (7)	36,836		—
Deferred storm restoration costs - Hurricane Laura (7)	56,815		54,406
Deferred storm restoration costs - Hurricane Zeta (7)	3,496		3,493
Deferred storm restoration costs - Winter Storms Uri & Viola (7)	1,974		—
Dolet Hills Power Station closure costs (7)	112,158		48,982
Emergency declarations	—		270		—
Energy efficiency	1,998		2,820		1.5
Financing costs (1)	6,919		7,184		Various	(4)
Interest costs	3,521		3,708		Various	(3)
Lignite Mine closure costs (7)	93,093		—
Madison Unit 3 property taxes (7)	6,272		—
Non-service cost of postretirement benefits	11,662		9,901		Various	(3)
Other	13,247		4,229		Various	(2)
Postretirement costs	149,883		165,437		Various	(5)
Production operations and maintenance expenses	1,998		4,058		Various	(6)
Rodemacher Unit 2 deferred costs (7)	5,519		1,333
St. Mary Clean Energy Center	6,524		3,479		4
Training costs	5,968		6,085		38.5
Tree trimming costs	9,771		11,807		3.5
Total regulatory assets	721,426		456,034
Regulatory liabilities
AFUDC (7)	(6,500)		(4,218)
Corporate franchise tax, net	—		(763)		—
Deferred taxes, net	(138,864)		(175,584)		Various
Total regulatory liabilities	(145,364)		(180,565)
Total regulatory assets, net	$	576,062	$	275,469
(1) Represents regulatory assets for past expenditures that were not earning a return on investment at September 30, 2021, and December 31, 2020, respectively. All other assets are earning a return on investment. (2) For more information related to the remaining recovery period, refer to the following disclosures for each specific regulatory asset or liability. (3) Amortized over the estimated lives of the respective assets. (4) Amortized over the terms of the related debt issuances. (5) Amortized over the average service life of the remaining plan participants. (6) Deferral is recovered over the following three year regulatory period. (7) Currently not in a recovery period.

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Fair Value Accounting and Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2021

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Carrying Value and Estimated Fair Value

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:

Cleco
	AT SEPT. 30, 2021				AT DEC. 31, 2020
(THOUSANDS)	CARRYING VALUE*		FAIR VALUE		CARRYING VALUE*		FAIR VALUE
Long-term debt	$	3,550,179	$	3,836,960	$	3,230,500	$	3,541,349

* The carrying value of long-term debt does not include deferred issuance costs of $14.1 million at
September 30, 2021, and $13.4 million at December 31, 2020.

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

The following tables disclose for Cleco and Cleco Power the fair value of financial assets and liabilities measured on a recurring basis. These amounts are presented on a gross basis before consideration of amounts netted under master netting agreements and the application of collateral received or paid:

Cleco
	FAIR VALUE MEASUREMENTS AT REPORTING DATE
(THOUSANDS)	AT SEPT. 30, 2021		QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1)		SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2)		SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3)		AT DEC. 31, 2020		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	$	252,807	$	—	$	252,807	$	—	$	86,001	$	—	$	86,001	$	—
FTRs	9,338		—		—		9,338		4,805		—		—		4,805
Natural gas derivatives*	132,892		—		132,892		—		8,599		—		8,599		—
Total assets	$	395,037	$	—	$	385,699	$	9,338	$	99,405	$	—	$	94,600	$	4,805
Liability description
FTRs	$	1,589	$	—	$	—	$	1,589	$	1,625	$	—	$	—	$	1,625
Natural gas derivatives*	—		—		—		—		1,612		—		1,612		—
Total liabilities	$	1,589	$	—	$	—	$	1,589	$	3,237	$	—	$	1,612	$	1,625

* Natural gas derivatives include fixed price physical forwards and swap transactions.

Net Changes in Net Fair Value of FTR Assets and Liabilities Classified as Level 3

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:

Cleco
	FOR THE THREE MONTHS ENDED SEPT. 30,				FOR THE NINE MONTHS ENDED SEPT. 30,
(THOUSANDS)	2021		2020		2021		2020
Beginning balance	$	7,501	$	8,040	$	3,180	$	5,778
Unrealized gains (losses)*	3,955		4		18,861		(736)
Purchases	619		443		11,426		10,175
Settlements	(4,326)		(3,160)		(25,718)		(9,890)
Ending balance	$	7,749	$	5,327	$	7,749	$	5,327
* Cleco Power’s unrealized gains (losses) are reported through Accumulated deferred fuel on Cleco’s Condensed Consolidated Balance Sheet. Cleco Cajun’s unrealized gains (losses) are reported through Purchased power on Cleco’s Condensed Consolidated Income Statement.

Significant Unobservable Inputs Used in Developing Fair Value of Level 3 Positions

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, 2021, and December 31, 2020:

Cleco
	FAIR VALUE				VALUATION TECHNIQUE	SIGNIFICANT UNOBSERVABLE INPUTS	FORWARD PRICE RANGE
(THOUSANDS, EXCEPT FORWARD PRICE RANGE)	ASSETS		LIABILITIES				LOW		HIGH
FTRs at Sept. 30, 2021	$	9,338	$	1,589	RTO auction pricing	FTR price - per MWh	$	(8.18)	$	9.16
FTRs at Dec. 31, 2020	$	4,805	$	1,625	RTO auction pricing	FTR price - per MWh	$	(3.49)	$	4.36

Institutional Money Market Funds

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, 2021, and December 31, 2020:

Cleco
(THOUSANDS)	AT SEPT. 30, 2021		AT DEC. 31, 2020
Cash and cash equivalents	$	249,711	$	80,712
Current restricted cash and cash equivalents	$	2,352	$	4,545
Non-current restricted cash and cash equivalents	$	744	$	744

Offsetting Assets

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, 2021, and December 31, 2020:

Cleco
	DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS
		AT SEPT. 30, 2021												AT DEC. 31, 2020
				GROSS AMOUNTS OFFSET ON THE BALANCE SHEET						GROSS AMOUNTS NOT OFFSET ON THE BALANCE SHEET (1)
(THOUSANDS)	BALANCE SHEET LINE ITEM	GROSS ASSET (LIABILITY)		CONTRACT NETTING		COLLATERAL		NET ASSET (LIABILITY) ON THE BALANCE SHEET		COLLATERAL		NET AMOUNT		NET ASSET (LIABILITY) ON THE BALANCE SHEET (2)
Commodity-related contracts
FTRs
Current	Energy risk management assets	$	9,338	$	—	$	—	$	9,338	$	—	$	9,338	$	4,805
Current	Energy risk management liabilities	(1,589)		—		—		(1,589)		—		(1,589)		(1,625)
Natural gas derivatives
Current	Energy risk management assets	59,648		(1,283)		(8,900)		49,465		(41,098)		8,367		8,276
Non-current	Energy risk management assets	83,427		—		—		83,427		(13,902)		69,525		323
Current	Energy risk management liabilities	(1,283)		1,283		—		—		—		—		(828)
Non-current	Other deferred credits	—		—		—		—		—		—		(784)
Commodity-related contracts, net		$	149,541	$	—	$	(8,900)	$	140,641	$	(55,000)	$	85,641	$	10,167

(1) Represents letters of credit by counterparties.

(2) There were no offsetting amounts on or off Cleco’s Condensed Consolidated Balance Sheet at December 31, 2020.

Offsetting Liabilities

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, 2021, and December 31, 2020:

Cleco
	DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS
		AT SEPT. 30, 2021												AT DEC. 31, 2020
				GROSS AMOUNTS OFFSET ON THE BALANCE SHEET						GROSS AMOUNTS NOT OFFSET ON THE BALANCE SHEET (1)
(THOUSANDS)	BALANCE SHEET LINE ITEM	GROSS ASSET (LIABILITY)		CONTRACT NETTING		COLLATERAL		NET ASSET (LIABILITY) ON THE BALANCE SHEET		COLLATERAL		NET AMOUNT		NET ASSET (LIABILITY) ON THE BALANCE SHEET (2)
Commodity-related contracts
FTRs
Current	Energy risk management assets	$	9,338	$	—	$	—	$	9,338	$	—	$	9,338	$	4,805
Current	Energy risk management liabilities	(1,589)		—		—		(1,589)		—		(1,589)		(1,625)
Natural gas derivatives
Current	Energy risk management assets	59,648		(1,283)		(8,900)		49,465		(41,098)		8,367		8,276
Non-current	Energy risk management assets	83,427		—		—		83,427		(13,902)		69,525		323
Current	Energy risk management liabilities	(1,283)		1,283		—		—		—		—		(828)
Non-current	Other deferred credits	—		—		—		—		—		—		(784)
Commodity-related contracts, net		$	149,541	$	—	$	(8,900)	$	140,641	$	(55,000)	$	85,641	$	10,167

(1) Represents letters of credit by counterparties.

(2) There were no offsetting amounts on or off Cleco’s Condensed Consolidated Balance Sheet at December 31, 2020.

Fair Value of Derivative Instruments as Recorded in Condensed Consolidated Balance Sheets

The following table presents the volume of commodity-related derivative contracts outstanding at September 30, 2021, and December 31, 2020, for Cleco and Cleco Power:

Cleco
		TOTAL VOLUME OUTSTANDING
(THOUSAND)	UNIT OF MEASURE	AT SEPT. 30, 2021	AT DEC. 31, 2020
Commodity-related contracts
FTRs	MWh	22,794	15,269
Natural gas derivatives	MMBtus	118,712	73,000

Amount of Gain (Loss) Recognized in Income on Derivatives

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, 2021, and 2020:

Cleco
	AMOUNT OF GAIN(LOSS) ON DERIVATIVES RECOGNIZED IN INCOME
		FOR THE THREE MONTHS ENDED SEPT. 30,				FOR THE NINE MONTHS ENDED SEPT. 30,
(THOUSANDS)	INCOME STATEMENT LINE ITEM	2021		2020		2021		2020
Commodity-related contracts
FTRs(1)	Electric operations	$	1,959	$	3,013	$	11,167	$	6,262
FTRs(1)	Purchased power	(874)		(763)		(8,730)		(1,053)
Natural gas derivatives	Fuel used for electric generation	107,687		20,307		165,584		22,515
Total		$	108,772	$	22,557	$	168,021	$	27,724

(1) For the three and nine months ended September 30, 2021, unrealized gains associated with FTRs for Cleco Power of $1.2 million and $0.5 million, respectively, were reported through Accumulated deferred fuel on the balance sheet. 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.

CLECO POWER

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Carrying Value and Estimated Fair Value

Cleco Power
	AT SEPT. 30, 2021				AT DEC. 31, 2020
(THOUSANDS)	CARRYING VALUE*		FAIR VALUE		CARRYING VALUE*		FAIR VALUE
Long-term debt	$	1,820,177	$	2,100,029	$	1,494,947	$	1,794,799

* The carrying value of long-term debt does not include deferred issuance costs of $8.5 million at
September 30, 2021, and $7.0 million at December 31, 2020.

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

Cleco Power
	FAIR VALUE MEASUREMENTS AT REPORTING DATE
(THOUSANDS)	AT SEPT. 30, 2021		QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1)		SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2)		SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3)		AT DEC. 31, 2020		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	$	135,763	$	—	$	135,763	$	—	$	25,357	$	—	$	25,357	$	—
FTRs	6,028		—		—		6,028		4,337		—		—		4,337
Total assets	$	141,791	$	—	$	135,763	$	6,028	$	29,694	$	—	$	25,357	$	4,337
Liability description
FTRs	$	1,330	$	—	$	—	$	1,330	$	1,121	$	—	$	—	$	1,121
Total liabilities	$	1,330	$	—	$	—	$	1,330	$	1,121	$	—	$	—	$	1,121

Net Changes in Net Fair Value of FTR Assets and Liabilities Classified as Level 3

Cleco Power
	FOR THE THREE MONTHS ENDED SEPT. 30,				FOR THE NINE MONTHS ENDED SEPT. 30,
(THOUSANDS)	2021		2020		2021		2020
Beginning balance	$	5,990	$	7,511	$	3,216	$	5,725
Unrealized gains*	1,196		426		545		1,355
Purchases	619		443		9,236		8,219
Settlements	(3,107)		(2,968)		(8,299)		(9,887)
Ending balance	$	4,698	$	5,412	$	4,698	$	5,412
* Unrealized gains are reported through Accumulated deferred fuel on Cleco Power’s Condensed Consolidated Balance Sheet.

Significant Unobservable Inputs Used in Developing Fair Value of Level 3 Positions

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, 2021	$	6,028	$	1,330	RTO auction pricing	FTR price - per MWh	$	(3.26)	$	9.16
FTRs at Dec. 31, 2020	$	4,337	$	1,121	RTO auction pricing	FTR price - per MWh	$	(3.34)	$	4.36

Institutional Money Market Funds

Cleco Power
(THOUSANDS)	AT SEPT. 30, 2021		AT DEC. 31, 2020
Cash and cash equivalents	$	133,411	$	20,812
Current restricted cash and cash equivalents	$	2,352	$	4,545

Fair Value of Derivative Instruments as Recorded in Condensed Consolidated Balance Sheets

Cleco Power
	DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS
(THOUSANDS)	BALANCE SHEET LINE ITEM	AT SEPT. 30, 2021		AT DEC. 31, 2020
Commodity-related contracts
FTRs
Current	Energy risk management assets	$	6,028	$	4,337
Current	Energy risk management liabilities	(1,330)		(1,121)
Commodity-related contracts, net		$	4,698	$	3,216

Cleco Power
		TOTAL VOLUME OUTSTANDING
(THOUSAND)	UNIT OF MEASURE	AT SEPT. 30, 2021	AT DEC. 31, 2020
Commodity-related contracts
FTRs	MWh	14,596	9,521

Amount of Gain (Loss) Recognized in Income on Derivatives

Cleco Power
	AMOUNT OF GAIN(LOSS) ON DERIVATIVES RECOGNIZED IN INCOME
		FOR THE THREE MONTHS ENDED SEPT. 30,				FOR THE NINE MONTHS ENDED SEPT. 30,
(THOUSANDS)	INCOME STATEMENT LINE ITEM	2021		2020		2021		2020
Commodity-related contracts
FTRs(1)	Electric operations	$	1,959	$	3,013	$	11,167	$	6,262
FTRs(1)	Purchased power	(822)		(2,326)		(9,236)		(4,397)
Total		$	1,137	$	687	$	1,931	$	1,865

(1) For the three and nine months ended September 30, 2021, unrealized gains associated with FTRs of $1.2 million and $0.5 million, respectively, were reported through Accumulated deferred fuel on the balance sheet. 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.

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Pension Plan and Employee Benefits (Tables)

9 Months Ended

Sep. 30, 2021

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 and nine months ended September 30, 2021, and 2020 were as follows:

	PENSION BENEFITS				OTHER BENEFITS
	FOR THE THREE MONTHS ENDED SEPT. 30,				FOR THE THREE MONTHS ENDED SEPT. 30,
(THOUSANDS)	2021		2020		2021		2020
Components of periodic benefit costs
Service cost	$	2,629	$	2,455	$	629	$	600
Interest cost	4,667		5,204		317		418
Expected return on plan assets	(5,700)		(6,244)		—		—
Amortizations
Prior period service credit	—		(15)		—		—
Net loss	5,184		4,073		373		362
Net periodic benefit cost	6,780		5,473		1,319		1,380
Special/contractual termination benefits	3,270		—		—		—
Total benefit cost	$	10,050	$	5,473	$	1,319	$	1,380

	PENSION BENEFITS				OTHER BENEFITS
	FOR THE NINE MONTHS ENDED SEPT. 30,				FOR THE NINE MONTHS ENDED SEPT. 30,
(THOUSANDS)	2021		2020		2021		2020
Components of periodic benefit costs
Service cost	$	7,887	$	7,365	$	1,819	$	1,615
Interest cost	14,001		15,612		962		1,238
Expected return on plan assets	(17,101)		(18,731)		—		—
Amortizations
Prior period service credit	—		(45)		—		—
Net loss	15,553		12,222		1,143		1,042
Net periodic benefit cost	20,340		16,423		3,924		3,895
Special/contractual termination benefits	3,270		—		—		—
Total benefit cost	$	23,610	$	16,423	$	3,924	$	3,895

The components of the net periodic benefit cost related to SERP for the three and nine months ended September 30, 2021, and 2020 were as follows:

	FOR THE THREE MONTHS ENDED SEPT. 30,				FOR THE NINE MONTHS ENDED SEPT. 30,
(THOUSANDS)	2021		2020		2021		2020
Components of periodic benefit costs
Service cost	$	59	$	100	$	174	$	300
Interest cost	634		733		1,903		2,199
Amortizations
Prior period service credit	(54)		(54)		(161)		(161)
Net loss	307		796		921		2,388
Net periodic benefit cost	$	946	$	1,575	$	2,837	$	4,726

Current and Non-Current Portions of Other Benefits Liability

The current and non-current portions of

the Other Benefits liability for Cleco and Cleco Power at September 30, 2021, and December 31, 2020, were as follows:

Cleco
(THOUSANDS)	AT SEPT. 30, 2021		AT DEC. 31, 2020
Current	$	4,463	$	4,463
Non-current	$	51,306	$	51,868

The current and non-current portions of the SERP liability for Cleco and Cleco Power at September 30, 2021, and December 31, 2020, were as follows:

Cleco
(THOUSANDS)	AT SEPT. 30, 2021		AT DEC. 31, 2020
Current	$	4,703	$	4,703
Non-current	$	90,880	$	92,522

Expense of the 401(k) Plan

Cleco’s 401(k) Plan expense for the three and nine months ended September 30, 2021, and 2020 was as follows:

	FOR THE THREE MONTHS ENDED SEPT. 30,				FOR THE NINE MONTHS ENDED SEPT. 30,
(THOUSANDS)	2021		2020		2021		2020
401(k) Plan expense	$	2,512	$	2,356	$	7,391	$	7,509

The expense of the 401(k) Plan related to Cleco’s other

subsidiaries for the three and nine months ended September 30, 2021, and 2020 was as follows:

	FOR THE THREE MONTHS ENDED SEPT. 30,				FOR THE NINE MONTHS ENDED SEPT. 30,
(THOUSANDS)	2021		2020		2021		2020
401(k) Plan expense	$	1,185	$	996	$	3,511	$	3,491

CLECO POWER

Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]

Current and Non-Current Portions of Other Benefits Liability

Cleco Power
(THOUSANDS)	AT SEPT. 30, 2021		AT DEC. 31, 2020
Current	$	3,865	$	3,865
Non-current	$	40,261	$	40,734

Cleco Power
(THOUSANDS)	AT SEPT. 30, 2021		AT DEC. 31, 2020
Current	$	711	$	711
Non-current	$	19,240	$	19,828

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Income Taxes (Tables)

9 Months Ended

Sep. 30, 2021

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 and nine months ended September 30, 2021, and 2020:

Cleco
	FOR THE THREE MONTHS ENDED SEPT. 30,				FOR THE NINE MONTHS ENDED SEPT. 30,
	2021		2020		2021		2020
Effective tax rate	20.3	%	29.4	%	12.4	%	26.8	%

CLECO POWER

Effective Income Tax Rate [Line Items]

Effective Income Tax Rates

Cleco Power
	FOR THE THREE MONTHS ENDED SEPT. 30,				FOR THE NINE MONTHS ENDED SEPT. 30,
	2021		2020		2021		2020
Effective tax rate	1.0	%	33.4	%	(0.2)	%	28.8	%

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Disclosures about Segments (Tables)

9 Months Ended

Sep. 30, 2021

Segment Reporting [Abstract]

Segment Information

Segment Information for the Three Months Ended Sept. 30,
2021 (THOUSANDS)	CLECO POWER		CLECO CAJUN			TOTAL SEGMENTS
Revenue
Electric operations	$	357,084	$	107,500		$	464,584
Other operations	22,779		35,158			57,937
Affiliate revenue	1,380		—			1,380
Electric customer credits	(691)		—			(691)
Operating revenue, net	$	380,552	$	142,658		$	523,210
Net income	$	56,561	$	86,744		$	143,305
Add: Depreciation and amortization	43,526		12,623		(1)	56,149
Less: Interest income	936		4			940
Add: Interest charges	18,509		1,117			19,626
Add: Federal and state income tax expense	548		29,888			30,436
EBITDA	$	118,208	$	130,368		$	248,576
(1) Includes $3.6 million of amortization of intangible assets and liabilities related to wholesale power supply agreements and $(2.3) million of deferred lease revenue amortization as a result of the Cleco Cajun Transaction.

2021 (THOUSANDS)	TOTAL SEGMENTS		OTHER			ELIMINATIONS		TOTAL
Revenue
Electric operations	$	464,584	$	(2,420)		$	—	$	462,164
Other operations	57,937		1			(2,217)		55,721
Affiliate revenue	1,380		32,116			(33,496)		—
Electric customer credits	(691)		—			—		(691)
Operating revenue, net	$	523,210	$	29,697		$	(35,713)	$	517,194
Depreciation and amortization	$	56,149	$	8,189	(1)	$	—	$	64,338
Interest income	$	940	$	43		$	(42)	$	941
Interest charges	$	19,626	$	15,044		$	(41)	$	34,629
Federal and state income tax expense	$	30,436	$	133		$	—	$	30,569
Net income (loss)	$	143,305	$	(23,396)		$	1	$	119,910
(1) Includes $2.4 million of amortization of intangible assets related to Cleco Power’s wholesale power supply agreements as a result of the 2016 Merger.

2020 (THOUSANDS)	CLECO POWER		CLECO CAJUN			TOTAL SEGMENTS
Revenue
Electric operations	$	288,852	$	99,956		$	388,808
Other operations	17,775		31,331			49,106
Affiliate revenue	1,506		—			1,506
Electric customer credits	(16,534)		—			(16,534)
Operating revenue, net	$	291,599	$	131,287		$	422,886
Net income	$	36,092	$	38,357		$	74,449
Add: Depreciation and amortization	40,268		11,344		(1)	51,612
Less: Interest income	789		10			799
Add: Interest charges	18,441		(484)			17,957
Add: Federal and state income tax expense	18,076		12,258			30,334
EBITDA	$	112,088	$	61,465		$	173,553
(1) Includes $3.1 million of amortization of intangible assets and liabilities related to wholesale power supply agreements and $(2.3) million of deferred lease revenue amortization as a result of the Cleco Cajun Transaction.

2020 (THOUSANDS)	TOTAL SEGMENTS		OTHER			ELIMINATIONS		TOTAL
Revenue
Electric operations	$	388,808	$	(2,420)		$	—	$	386,388
Other operations	49,106		1			(1,510)		47,597
Affiliate revenue	1,506		35,522			(37,028)		—
Electric customer credits	(16,534)		—			—		(16,534)
Operating revenue, net	$	422,886	$	33,103		$	(38,538)	$	417,451
Depreciation and amortization	$	51,612	$	4,497	(1)	$	—	$	56,109
Interest income	$	799	$	121		$	(10)	$	910
Interest charges	$	17,957	$	16,115		$	(12)	$	34,060
Federal and state income tax expense (benefit)	$	30,334	$	(5,260)		$	1	$	25,075
Net income (loss)	$	74,449	$	(14,154)		$	2	$	60,297
(1) Includes $2.4 million of amortization of intangible assets related to Cleco Power’s wholesale power supply agreements as a result of the 2016 Merger.

Segment Information for the Nine Months Ended Sept. 30,
2021 (THOUSANDS)	CLECO POWER		CLECO CAJUN			TOTAL SEGMENTS
Revenue
Electric operations	$	887,191	$	300,415		$	1,187,606
Other operations	57,674		98,851			156,525
Affiliate revenue	4,259		—			4,259
Electric customer credits	(40,429)		244			(40,185)
Operating revenue, net	$	908,695	$	399,510		$	1,308,205
Net income	$	102,407	$	153,719		$	256,126
Add: Depreciation and amortization	126,534		36,614		(2)	163,148
Less: Interest income	2,404		10			2,414
Add: Interest charges	55,392		786			56,178
Add: Federal and state income tax (benefit) expense	(219)		52,561			52,342
EBITDA	$	281,710	$	243,670		$	525,380
Additions to property, plant, and equipment	$	202,940	$	5,904		$	208,844
Equity investment in investees (1)	$	3,822	$	—		$	3,822
Goodwill (1)	$	1,490,797	$	—		$	1,490,797
Total segment assets (1)	$	6,746,838	$	1,212,968		$	7,959,806
(1) Balances as of September 30, 2021. (2) Includes $10.0 million of amortization of intangible assets and liabilities related to wholesale power supply agreements and $(6.9) million of deferred lease revenue amortization as a result of the Cleco Cajun Transaction.

2021 (THOUSANDS)	TOTAL SEGMENTS		OTHER			ELIMINATIONS		TOTAL
Revenue
Electric operations	$	1,187,606	$	(7,260)		$	(1)	$	1,180,345
Other operations	156,525		4			(5,752)		150,777
Affiliate revenue	4,259		85,392			(89,651)		—
Electric customer credits	(40,185)		—			—		(40,185)
Operating revenue, net	$	1,308,205	$	78,136		$	(95,404)	$	1,290,937
Depreciation and amortization	$	163,148	$	17,052	(2)	$	(1)	$	180,199
Interest income	$	2,414	$	100		$	(98)	$	2,416
Interest charges	$	56,178	$	45,732		$	(98)	$	101,812
Federal and state income tax expense (benefit)	$	52,342	$	(21,357)		$	—	$	30,985
Net income (loss)	$	256,126	$	(37,068)		$	1	$	219,059
Additions to property, plant, and equipment	$	208,844	$	1,116		$	—	$	209,960
Equity investment in investees (1)	$	3,822	$	19,099		$	(19,099)	$	3,822
Goodwill (1)	$	1,490,797	$	—		$	—	$	1,490,797
Total segment assets (1)	$	7,959,806	$	685,410		$	(249,409)	$	8,395,807
(1) Balances as of September 30, 2021. (2) Includes $7.3 million of amortization of intangible assets related to Cleco Power’s wholesale power supply agreements as a result of the 2016 Merger.

2020 (THOUSANDS)	CLECO POWER		CLECO CAJUN			TOTAL SEGMENTS
Revenue
Electric operations	$	752,925	$	273,836		$	1,026,761
Other operations	49,443		92,928			142,371
Affiliate revenue	3,852		204			4,056
Electric customer credits	(33,974)		(153)			(34,127)
Operating revenue, net	$	772,246	$	366,815		$	1,139,061
Net income	$	76,156	$	84,655		$	160,811
Add: Depreciation and amortization	125,541		33,385		(2)	158,926
Less: Interest income	2,498		269			2,767
Add: Interest charges	55,624		(353)			55,271
Add: Federal and state income tax expense	30,770		27,280			58,050
EBITDA	$	285,593	$	144,698		$	430,291
Additions to property, plant, and equipment	$	205,765	$	7,908		$	213,673
Equity investment in investees (1)	$	9,072	$	—		$	9,072
Goodwill (1)	$	1,490,797	$	—		$	1,490,797
Total segment assets (1)	$	6,256,944	$	1,029,812		$	7,286,756
(1) Balances as of December 31, 2020. (2) Includes $9.3 million of amortization of intangible assets and liabilities related to wholesale power supply agreements and $(6.9) million deferred lease revenue amortization as a result of the Cleco Cajun Transaction.

2020 (THOUSANDS)	TOTAL SEGMENTS		OTHER			ELIMINATIONS		TOTAL
Revenue
Electric operations	$	1,026,761	$	(7,260)		$	—	$	1,019,501
Other operations	142,371		2			(4,966)		137,407
Affiliate revenue	4,056		93,938			(97,994)		—
Electric customer credits	(34,127)		—			1		(34,126)
Operating revenue, net	$	1,139,061	$	86,680		$	(102,959)	$	1,122,782
Depreciation and amortization	$	158,926	$	13,575	(2)	$	1	$	172,502
Interest income	$	2,767	$	276		$	(79)	$	2,964
Interest charges	$	55,271	$	48,731		$	(79)	$	103,923
Federal and state income tax expense (benefit)	$	58,050	$	(17,821)		$	1	$	40,230
Net income (loss)	$	160,811	$	(51,019)		$	1	$	109,793
Additions to property, plant, and equipment	$	213,673	$	2,019		$	—	$	215,692
Equity investment in investees (1)	$	9,072	$	—		$	—	$	9,072
Goodwill (1)	$	1,490,797	$	—		$	—	$	1,490,797
Total segment assets (1)	$	7,286,756	$	595,217		$	(156,404)	$	7,725,569
(1) Balances as of December 31, 2020. (2) Includes $7.3 million of amortization of intangible assets related to Cleco Power’s wholesale power supply agreements as a result of the 2016 Merger.

	FOR THE THREE MONTHS ENDED SEPT. 30,				FOR THE NINE MONTHS ENDED SEPT. 30,
(THOUSANDS)	2021		2020		2021		2020
Net income	$	119,910	$	60,297	$	219,059	$	109,793
Add: Depreciation and amortization	64,338		56,109		180,199		172,502
Less: Interest income	941		910		2,416		2,964
Add: Interest charges	34,629		34,060		101,812		103,923
Add: Federal and state income tax expense	30,569		25,075		30,985		40,230
Add: Other corporate costs and noncash items (1)	71		(1,078)		(4,259)		6,807
Total segment EBITDA	$	248,576	$	173,553	$	525,380	$	430,291
(1) Adjustments made for Other and Elimination totals not allocated to total segment EBITDA.

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Regulation and Rates (Tables)

9 Months Ended

Sep. 30, 2021

Regulated Operations [Abstract]

Schedule of Provision of Rate Refund

Provision for rate refund on Cleco and Cleco Power’s Condensed Consolidated Balance Sheets consisted primarily of the following:

(THOUSANDS)	AT SEPT. 30, 2021		AT DEC. 31, 2020
Cleco Katrina/Rita storm recovery charges	$	1,610	$	1,617
FERC audit	$	—	$	1,912
FRP	$	1,236	$	1,786
Site-specific industrial customer	$	611	$	710
TCJA	$	2,057	$	2,057
Transmission ROE	$	—	$	595

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Variable Interest Entities (Tables) - CLECO POWER

9 Months Ended

Sep. 30, 2021

Variable Interest Entity [Line Items]

Equity Method Investments

The following table presents the components of Cleco Power’s equity investment in Oxbow:

INCEPTION TO DATE (THOUSANDS)	AT SEPT. 30, 2021		AT DEC. 31, 2020
Purchase price	$	12,873	$	12,873
Cash contributions	6,399		6,399
Distributions	(15,450)		(10,200)
Total equity investment in investee	$	3,822	$	9,072

The following table contains summarized financial information for Oxbow:

	FOR THE THREE MONTHS ENDED SEPT. 30,				FOR THE NINE MONTHS ENDED SEPT. 30,
(THOUSANDS)	2021		2020		2021		2020
Operating revenue	$	1,486	$	2,275	$	5,113	$	33,266
Operating expenses	1,486		2,275		5,113		33,266
Income before taxes	$	—	$	—	$	—	$	—

Carrying Amount of Assets and Liabilities with Maximum Exposure to Loss

The following table compares the carrying amount of Oxbow’s assets and liabilities with Cleco Power’s maximum exposure to loss related to its investment in Oxbow:

(THOUSANDS)	AT SEPT. 30, 2021		AT DEC. 31, 2020
Oxbow’s net assets/liabilities	$	7,645	$	18,145
Cleco Power’s 50% equity	$	3,822	$	9,072
Cleco Power’s maximum exposure to loss	$	3,822	$	9,072

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Litigation, Other Commitments and Contingencies, and Disclosures about Guarantees (Tables)

9 Months Ended

Sep. 30, 2021

Commitments and Contingencies Disclosure [Abstract]

Schedule of Change in Asset Retirement Obligation

The following tables summarize the net changes in the ARO for Cleco and Cleco Power:

(THOUSANDS)	CLECO CAJUN		CLECO POWER		CLECO
Balance, Dec. 31, 2020	$	16,658	$	11,364	$	28,022
Liabilities settled	(1,316)		$	—	(1,316)
Accretion	466		$	249	715
Revisions and adjustments	35,540		$	13,101	48,641
Balance, Sept. 30, 2021	$	51,348	$	24,714	$	76,062

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Affiliate Transactions (Tables)

9 Months Ended

Sep. 30, 2021

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:

	AT SEPT. 30, 2021				AT DEC. 31, 2020
(THOUSANDS)	ACCOUNTS RECEIVABLE		ACCOUNTS PAYABLE		ACCOUNTS RECEIVABLE		ACCOUNTS PAYABLE
Cleco Holdings	$	10,712	$	57,825	$	10,353	$	57,713
Support Group	2,388		11,514		3,248		14,355
Cleco Cajun	882		17		1,004		—
Total	$	13,982	$	69,356	$	14,605	$	72,068

Of the affiliate payable balances at September 30, 2021, and December 31, 2020, Cleco Power had $57.6 million payable to Cleco Holdings for the settlement of income taxes.

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Intangible Assets and Liabilities (Tables)

9 Months Ended

Sep. 30, 2021

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:

Cleco
	FOR THE THREE MONTHS ENDED SEPT. 30,				FOR THE NINE MONTHS ENDED SEPT. 30,
(THOUSANDS)	2021		2020		2021		2020
Intangible assets
Cleco Katrina/Rita right to bill and collect storm recovery charges	$	—	$	—	$	—	$	517
Trade name	$	3,770	$	64	$	3,897	$	191
Power supply agreements	$	6,400	$	6,400	$	19,200	$	19,200
Intangible liabilities
LTSA	$	871	$	871	$	2,613	$	2,613
Power supply agreements	$	389	$	882	$	1,989	$	2,646

Schedule of Finite-Lived Intangible Assets and Liabilities

The following tables summarize the balances for intangible assets and liabilities subject to amortization for Cleco:

Cleco
(THOUSANDS)	AT SEPT. 30, 2021		AT DEC. 31, 2020
Intangible assets
Trade name	$	—	$	5,100
Power supply agreements	184,004		184,004
Total intangible assets carrying amount	184,004		189,104
Intangible liabilities
LTSA	24,100		24,100
Power supply agreements	14,200		14,200
Total intangible liability carrying amount	38,300		38,300
Net intangible assets carrying amount	145,704		150,804
Accumulated amortization	(77,326)		(63,932)
Net intangible assets subject to amortization	$	68,378	$	86,872

Goodwill

On April 13, 2016, in connection with the completion of the 2016 Merger, Cleco recognized goodwill of $1.49 billion. Management assigned the recognized goodwill to the Cleco Power reporting unit. Goodwill is required to be tested for impairment at the reporting unit level on an annual basis and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. Application of the goodwill impairment test requires significant judgments, including the identification of reporting units, assignments of assets and liabilities to reporting units, assignment of goodwill to reporting units, and the determination of the fair value of the reporting units.

Cleco conducted its 2021 annual impairment test using an August 1, 2021, measurement date. The fair value of the Cleco Power reporting unit was estimated using a weighted combination of the income approach, which estimates fair value based on discounted cash flows, and the market

approach, which estimates fair value based on market comparables within the utility and energy industries. Significant assumptions used in these fair value estimates include estimation of future cash flows related to capital expenditures, long-term rate of growth, and weighted-average cost of capital or discount rate. Changes in these assumptions could materially affect the determination of fair value and goodwill impairment at Cleco Power. Based on the tests performed, management has determined that the fair value of the Cleco Power reporting unit exceeds the carrying value resulting in no impairment of Cleco Power’s goodwill as of August 1, 2021.

CLECO POWER

Finite-Lived Intangible Assets [Line Items]

Schedule of Amortization of Intangible Assets and Liabilities

Cleco Power
	FOR THE THREE MONTHS ENDED SEPT. 30,				FOR THE NINE MONTHS  ENDED SEPT. 30,
(THOUSANDS)	2021		2020		2021		2020
Cleco Katrina/Rita right to bill and collect storm recovery charges	$	—	$	—	$	—	$	517

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Accumulated Other Comprehensive Loss (Tables)

9 Months Ended

Sep. 30, 2021

Accumulated Other Comprehensive Loss [Line Items]

Schedule of Accumulated Other Comprehensive Income Loss

The components of accumulated other comprehensive loss are summarized in the following tables for Cleco and Cleco Power. All amounts are reported net of income taxes. Amounts in parentheses indicate debits.

Cleco
	FOR THE THREE MONTHS ENDED SEPT. 30, 2021		FOR THE NINE MONTHS ENDED SEPT. 30, 2021
(THOUSANDS)	POSTRETIREMENT BENEFIT NET LOSS
Balances, beginning of period	$	(25,588)	$	(25,796)
Amounts reclassified from AOCI
Amortization of postretirement benefit net loss	96		304
Balances, Sept. 30, 2021	$	(25,492)	$	(25,492)

	FOR THE THREE MONTHS ENDED SEPT. 30, 2020		FOR THE NINE MONTHS ENDED SEPT. 30, 2020
(THOUSANDS)	POSTRETIREMENT BENEFIT NET LOSS
Balances, beginning of period	$	(16,657)	$	(17,513)
Amounts reclassified from AOCI
Amortization of postretirement benefit net loss	448		1,304
Balances, Sept. 30, 2020	$	(16,209)	$	(16,209)

CLECO POWER

Accumulated Other Comprehensive Loss [Line Items]

Schedule of Accumulated Other Comprehensive Income Loss

Cleco Power
	FOR THE THREE MONTHS ENDED SEPT. 30, 2021						FOR THE NINE MONTHS ENDED SEPT. 30, 2021
(THOUSANDS)	POSTRETIREMENT BENEFIT NET LOSS		NET LOSS ON CASH FLOW HEDGES		TOTAL AOCI		POSTRETIREMENT BENEFIT NET LOSS		NET LOSS ON CASH FLOW HEDGES		TOTAL AOCI
Balances, beginning of period	$	(18,394)	$	(5,486)	$	(23,880)	$	(19,139)	$	(5,614)	$	(24,753)
Amounts reclassified from AOCI
Amortization of postretirement benefit net loss	350		—		350		1,095		—		1,095
Reclassification of net loss to interest charges	—		63		63		—		191		191
Balances, Sept. 30, 2021	$	(18,044)	$	(5,423)	$	(23,467)	$	(18,044)	$	(5,423)	$	(23,467)

	FOR THE THREE MONTHS ENDED SEPT. 30, 2020						FOR THE NINE MONTHS ENDED SEPT. 30, 2020
(THOUSANDS)	POSTRETIREMENT BENEFIT NET LOSS		NET LOSS ON CASH FLOW HEDGES		TOTAL AOCI		POSTRETIREMENT BENEFIT NET LOSS		NET LOSS ON CASH FLOW HEDGES		TOTAL AOCI
Balances, beginning of period	$	(15,872)	$	(5,740)	$	(21,612)	$	(16,717)	$	(5,868)	$	(22,585)
Amounts reclassified from AOCI
Amortization of postretirement benefit net loss	373		—		373		1,218		—		1,218
Reclassification of net loss to interest charges	—		63		63		—		191		191
Balances, Sept. 30, 2020	$	(15,499)	$	(5,677)	$	(21,176)	$	(15,499)	$	(5,677)	$	(21,176)

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Summary of Significant Accounting Policies - Restricted Cash and Cash Equivalents (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Restricted Cash and Cash Equivalents Items [Line Items]
Current	$ 2,352	$ 4,545
Non-current	745	744
Total restricted cash and cash equivalents	3,097	5,289
CLECO POWER
Restricted Cash and Cash Equivalents Items [Line Items]
Current	2,352	4,545
Total restricted cash and cash equivalents	2,352	4,545
Cleco Katrina/Rita storm recovery surcharge
Restricted Cash and Cash Equivalents Items [Line Items]
Current	1,674	2,626
Cleco Katrina/Rita storm recovery surcharge | CLECO POWER
Restricted Cash and Cash Equivalents Items [Line Items]
Current	1,674	2,626
Charitable contributions
Restricted Cash and Cash Equivalents Items [Line Items]
Current	678	1,718
Charitable contributions | CLECO POWER
Restricted Cash and Cash Equivalents Items [Line Items]
Current	678	1,718
Rate credit escrow
Restricted Cash and Cash Equivalents Items [Line Items]
Current	0	201
Rate credit escrow | CLECO POWER
Restricted Cash and Cash Equivalents Items [Line Items]
Current	0	201
Diversified Lands’ mitigation escrow
Restricted Cash and Cash Equivalents Items [Line Items]
Non-current	22	22
Cleco Cajun’s defense fund
Restricted Cash and Cash Equivalents Items [Line Items]
Non-current	$ 723	$ 722

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Summary of Significant Accounting Policies - Additional Information (Details) - CLECO POWER - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Regulatory Assets [Line Items]
Regulatory assets	$ 721,426	$ 456,034
COVID-19 executive order
Regulatory Assets [Line Items]
Regulatory assets	$ 2,953	$ 2,953

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Summary of Significant Accounting Policies - Changes in Allowance for Credit Losses (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Financing Receivable, Allowance for Credit Loss [Line Items]
Receivable, threshold period past due	20 days		20 days
ACCOUNTS RECEIVABLE
Accounts receivable, beginning balance	$ 1,334	$ 3,486	$ 2,758	$ 3,005
Current period provision	567	2,041	3,057	5,675
Charge-offs	(730)	0	(5,172)	(4,091)
Recovery	586	54	1,114	921
Accounts receivable, ending balance	1,757	5,581	1,757	5,581
OTHER
Financing receivable, beginning balance	1,638	1,638	1,638	1,250
Current period provision	0	0	0	388
Charge-offs	0	0	0	0
Recovery	0	0	0	0
Financing receivable, ending balance	1,638	1,638	1,638	1,638
TOTAL
Total, beginning balance	2,972	5,124	4,396	4,255
Current period provision	567	2,041	3,057	6,063
Charge-offs	(730)	0	(5,172)	(4,091)
Recovery	586	54	1,114	921
Total, ending balance	3,395	7,219	3,395	7,219
CLECO POWER
ACCOUNTS RECEIVABLE
Accounts receivable, beginning balance	1,334	3,486	2,758	3,005
Current period provision	567	2,041	3,057	5,675
Charge-offs	(730)	0	(5,172)	(4,091)
Recovery	586	54	1,114	921
Accounts receivable, ending balance	$ 1,757	5,581	$ 1,757	5,581
Accounting Standards Update 2016-13 | CECL adoption
ACCOUNTS RECEIVABLE
Accounts receivable, beginning balance		0		71
TOTAL
Total, beginning balance		0		71
Accounting Standards Update 2016-13 | CLECO POWER | CECL adoption
ACCOUNTS RECEIVABLE
Accounts receivable, beginning balance		$ 0		$ 71

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Leases - Narrative (Details) $ in Millions	Sep. 30, 2021 USD ($)
Cottonwood Energy
Lessor, Lease, Description [Line Items]
Fixed lease payments per year	$ 40.0

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Leases - Lease Income Under Cottonwood Sale Leaseback (Details) - Cleco Cajun - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Lessor, Lease, Description [Line Items]
Fixed payments	$ 10,000	$ 10,000	$ 30,000	$ 30,000
Variable payments	4,938	5,190	15,413	15,950
Amortization of deferred lease liability	2,301	2,301	6,904	6,904
Total lease income	$ 17,239	$ 17,491	$ 52,317	$ 52,854

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Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	$ 498,845	$ 396,924	$ 1,228,618	$ 1,063,613
Revenue unrelated to contracts with customers
Other	18,349	20,527	62,319	59,169
Total revenue unrelated to contracts with customers	18,349	20,527	62,319	59,169
Operating revenue, net	517,194	417,451	1,290,937	1,122,782
Electric customer credits	691	16,534	40,185	34,126
Deferred lease amortization			6,904	6,904
Total retail revenue
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	280,394	217,090	653,675	573,294
Residential
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	148,522	128,981	348,918	308,525
Commercial
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	82,711	68,220	214,129	190,905
Industrial
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	45,446	32,809	119,497	94,227
Other retail
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	4,479	3,614	11,925	10,416
Surcharge
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers				2,440
Electric customer credits
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	(764)	(16,534)	(40,794)	(33,219)
Wholesale, net
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	179,912	149,752	475,924	406,715
Transmission, net
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	32,921	26,964	85,511	73,187
Other
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	5,618	3,118	13,508	10,417
Affiliate
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	0	0	0	0
CLECO CAJUN
Revenue unrelated to contracts with customers
Lease revenue		15,200	45,400	46,000
Deferred lease amortization	2,300	2,300	6,900	6,900
OPERATING SEGMENTS
Revenue unrelated to contracts with customers
Operating revenue, net	523,210	422,886	1,308,205	1,139,061
Electric customer credits	691	16,534	40,185	34,127
OPERATING SEGMENTS | CLECO POWER
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	379,458	288,586	898,742	765,974
Revenue unrelated to contracts with customers
Other	1,094	3,013	9,953	6,272
Total revenue unrelated to contracts with customers	1,094	3,013	9,953	6,272
Operating revenue, net	380,552	291,599	908,695	772,246
Electric customer credits	691	16,534	40,429	33,974
OPERATING SEGMENTS | CLECO POWER | Total retail revenue
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	280,394	217,090	653,675	573,294
OPERATING SEGMENTS | CLECO POWER | Residential
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	148,522	128,981	348,918	308,525
OPERATING SEGMENTS | CLECO POWER | Commercial
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	82,711	68,220	214,129	190,905
OPERATING SEGMENTS | CLECO POWER | Industrial
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	45,446	32,809	119,497	94,227
OPERATING SEGMENTS | CLECO POWER | Other retail
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	4,479	3,614	11,925	10,416
OPERATING SEGMENTS | CLECO POWER | Surcharge
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers				2,440
OPERATING SEGMENTS | CLECO POWER | Electric customer credits
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	(764)	(16,534)	(40,794)	(33,219)
OPERATING SEGMENTS | CLECO POWER | Wholesale, net
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	74,831	52,216	182,769	140,139
OPERATING SEGMENTS | CLECO POWER | Transmission, net
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	17,235	14,656	44,530	38,273
Revenue unrelated to contracts with customers
Electric customer credits	100		400	800
OPERATING SEGMENTS | CLECO POWER | Other
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	5,618	3,118	13,509	10,416
OPERATING SEGMENTS | CLECO POWER | Affiliate
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	1,380	1,506	4,259	3,852
OPERATING SEGMENTS | CLECO CAJUN
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	125,404	113,774	347,148	313,920
Revenue unrelated to contracts with customers
Other	17,254	17,513	52,362	52,895
Total revenue unrelated to contracts with customers	17,254	17,513	52,362	52,895
Operating revenue, net	142,658	131,287	399,510	366,815
Electric customer credits	0	0	(244)	153
Lease revenue	14,900
OPERATING SEGMENTS | CLECO CAJUN | Total retail revenue
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	0	0	0	0
OPERATING SEGMENTS | CLECO CAJUN | Residential
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	0	0	0	0
OPERATING SEGMENTS | CLECO CAJUN | Commercial
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	0	0	0	0
OPERATING SEGMENTS | CLECO CAJUN | Industrial
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	0	0	0	0
OPERATING SEGMENTS | CLECO CAJUN | Other retail
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	0	0	0	0
OPERATING SEGMENTS | CLECO CAJUN | Surcharge
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers				0
OPERATING SEGMENTS | CLECO CAJUN | Electric customer credits
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	0	0	0	0
OPERATING SEGMENTS | CLECO CAJUN | Wholesale, net
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	107,501	99,956	300,415	273,836
OPERATING SEGMENTS | CLECO CAJUN | Transmission, net
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	17,903	13,818	46,733	39,880
Revenue unrelated to contracts with customers
Electric customer credits			200	200
OPERATING SEGMENTS | CLECO CAJUN | Other
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	0	0	0	0
OPERATING SEGMENTS | CLECO CAJUN | Affiliate
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	0	0	0	204
OTHER
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	29,696	33,102	78,132	86,678
Revenue unrelated to contracts with customers
Other	1	1	4	2
Total revenue unrelated to contracts with customers	1	1	4	2
Operating revenue, net	29,697	33,103	78,136	86,680
Electric customer credits	0	0	0	0
OTHER | Total retail revenue
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	0	0	0	0
OTHER | Residential
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	0	0	0	0
OTHER | Commercial
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	0	0	0	0
OTHER | Industrial
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	0	0	0	0
OTHER | Other retail
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	0	0	0	0
OTHER | Surcharge
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers				0
OTHER | Electric customer credits
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	0	0	0	0
OTHER | Wholesale, net
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	(2,420)	(2,420)	(7,260)	(7,260)
OTHER | Transmission, net
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	0	0	0	0
OTHER | Other
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	0	0	0	0
OTHER | Affiliate
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	32,116	35,522	85,392	93,938
ELIMINATIONS
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	(35,713)	(38,538)	(95,404)	(102,959)
Revenue unrelated to contracts with customers
Other	0	0	0	0
Total revenue unrelated to contracts with customers	0	0	0	0
Operating revenue, net	(35,713)	(38,538)	(95,404)	(102,959)
Electric customer credits	0	0	0	(1)
ELIMINATIONS | Total retail revenue
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	0	0	0	0
ELIMINATIONS | Residential
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	0	0	0	0
ELIMINATIONS | Commercial
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	0	0	0	0
ELIMINATIONS | Industrial
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	0	0	0	0
ELIMINATIONS | Other retail
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	0	0	0	0
ELIMINATIONS | Surcharge
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers				0
ELIMINATIONS | Electric customer credits
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	0	0	0	0
ELIMINATIONS | Wholesale, net
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	0	0	0	0
ELIMINATIONS | Transmission, net
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	(2,217)	(1,510)	(5,752)	(4,966)
ELIMINATIONS | Other
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	0	0	(1)	1
ELIMINATIONS | Affiliate
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	$ (33,496)	$ (37,028)	$ (89,651)	$ (97,994)

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Revenue Recognition - Narrative (Details) $ in Millions	Sep. 30, 2021 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Unsatisfied performance obligations	$ 65.7
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-10-01 | 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]: 2021-10-01 | Maximum
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Unsatisfied performance obligation durations	14 years

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Regulatory Assets and Liabilities - Schedule of Regulatory Assets and Liabilities (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2021	Jun. 16, 2021	Dec. 31, 2020
Regulatory Assets [Line Items]
Total regulatory assets, net	$ 716,322		$ 423,279
Financing costs
Regulatory Assets [Line Items]
Regulatory assets	7,334		7,592
Postretirement costs
Regulatory Assets [Line Items]
Regulatory assets	13,921		15,411
Fair value of long-term debt
Regulatory Assets [Line Items]
Regulatory assets	114,001		119,553
Debt issuance costs
Regulatory Assets [Line Items]
Regulatory assets	5,004		5,254
CLECO POWER
Regulatory Assets [Line Items]
Regulatory assets	721,426		456,034
Regulatory liabilities	(145,364)		(180,565)
Total regulatory assets, net	576,062		275,469
CLECO POWER | Acquisition/ transaction costs
Regulatory Assets [Line Items]
Regulatory assets	$ 1,939		2,019
Regulatory asset, amortization period	18 years 6 months
CLECO POWER | Acquisition/ transaction costs | Coughlin transaction costs
Regulatory Assets [Line Items]
Regulatory assets	$ 853		876
Regulatory asset, amortization period	28 years
CLECO POWER | Accumulated deferred fuel
Regulatory Assets [Line Items]
Regulatory assets	$ 78,847		28,194
CLECO POWER | AFUDC equity gross-up
Regulatory Assets [Line Items]
Regulatory assets	67,348		69,670
CLECO POWER | Affordability study
Regulatory Assets [Line Items]
Regulatory assets	$ 13,438	$ 13,600	0
Regulatory asset, amortization period	10 years
CLECO POWER | AMI deferred revenue requirement
Regulatory Assets [Line Items]
Regulatory assets	$ 2,181		2,591
Regulatory asset, amortization period	4 years
CLECO POWER | AROs
Regulatory Assets [Line Items]
Regulatory assets	$ 8,060		5,488
CLECO POWER | Bayou Vista to Segura deferred revenue requirement
Regulatory Assets [Line Items]
Regulatory assets	287	$ 300	0
CLECO POWER | COVID-19 executive order
Regulatory Assets [Line Items]
Regulatory assets	2,953		2,953
CLECO POWER | Deferred storm restoration costs - Hurricane Delta
Regulatory Assets [Line Items]
Regulatory assets	17,866		17,051
CLECO POWER | Deferred storm restoration costs - Hurricane Ida
Regulatory Assets [Line Items]
Regulatory assets	36,836		0
CLECO POWER | Deferred storm restoration costs - Hurricane Laura
Regulatory Assets [Line Items]
Regulatory assets	56,815		54,406
CLECO POWER | Deferred storm restoration costs - Hurricane Zeta
Regulatory Assets [Line Items]
Regulatory assets	3,496		3,493
CLECO POWER | Deferred storm restoration costs - Winter Storms Uri & Viola
Regulatory Assets [Line Items]
Regulatory assets	1,974		0
CLECO POWER | Station closure costs | Dolet Hills
Regulatory Assets [Line Items]
Regulatory assets	112,158		48,982
CLECO POWER | Emergency declarations
Regulatory Assets [Line Items]
Regulatory assets	0		270
CLECO POWER | Energy efficiency
Regulatory Assets [Line Items]
Regulatory assets	$ 1,998		2,820
Regulatory asset, amortization period	1 year 6 months
CLECO POWER | Financing costs
Regulatory Assets [Line Items]
Regulatory assets	$ 6,919		7,184
CLECO POWER | Interest costs
Regulatory Assets [Line Items]
Regulatory assets	3,521		3,708
CLECO POWER | Mine closure costs | Lignite Mine
Regulatory Assets [Line Items]
Regulatory assets	93,093		0
CLECO POWER | Madison Unit 3 property taxes
Regulatory Assets [Line Items]
Regulatory assets	6,272		0
CLECO POWER | Non-service cost of postretirement benefits
Regulatory Assets [Line Items]
Regulatory assets	11,662		9,901
CLECO POWER | Other
Regulatory Assets [Line Items]
Regulatory assets	13,247		4,229
CLECO POWER | Postretirement costs
Regulatory Assets [Line Items]
Regulatory assets	149,883		165,437
CLECO POWER | Production operations and maintenance expenses
Regulatory Assets [Line Items]
Regulatory assets	1,998		4,058
CLECO POWER | Rodemacher Unit 2 deferred costs | Rodemacher Unit 2 deferred costs
Regulatory Assets [Line Items]
Regulatory assets	5,519		1,333
CLECO POWER | St. Mary Clean Energy Center
Regulatory Assets [Line Items]
Regulatory assets	$ 6,524		3,479
Regulatory asset, amortization period	4 years
CLECO POWER | Training costs
Regulatory Assets [Line Items]
Regulatory assets	$ 5,968		6,085
Regulatory asset, amortization period	38 years 6 months
CLECO POWER | Tree trimming costs
Regulatory Assets [Line Items]
Regulatory assets	$ 9,771		11,807
Regulatory asset, amortization period	3 years 6 months
CLECO POWER | AFUDC
Regulatory Assets [Line Items]
Regulatory liabilities	$ (6,500)		(4,218)
CLECO POWER | Corporate franchise tax, net
Regulatory Assets [Line Items]
Regulatory liabilities	0		(763)
CLECO POWER | Deferred taxes, net
Regulatory Assets [Line Items]
Regulatory liabilities	$ (138,864)		$ (175,584)

XML

Regulatory Assets and Liabilities - Narrative (Details) - CLECO POWER customer in Thousands, $ in Thousands			1 Months Ended	9 Months Ended
	Jul. 01, 2022	Jul. 01, 2021	May 31, 2021	Sep. 30, 2021 USD ($)	Aug. 29, 2021 customer	Jun. 30, 2021 USD ($)	Jun. 16, 2021 USD ($)	Mar. 29, 2021 USD ($)	Feb. 17, 2021 customer	Feb. 14, 2021 customer	Dec. 31, 2020 USD ($)
Regulatory Liabilities [Line Items]
Regulatory assets				$ 721,426							$ 456,034
Affordability study
Regulatory Liabilities [Line Items]
Regulatory assets				13,438			$ 13,600				0
Regulatory asset, amortization period		10 years
Bayou Vista to Segura deferred revenue requirement
Regulatory Liabilities [Line Items]
Regulatory assets				287			$ 300				0
Bayou Vista to Segura deferred revenue requirement | Subsequent event | Forecast
Regulatory Liabilities [Line Items]
Regulatory asset, amortization period	12 months
Mine closure costs | Lignite Mine
Regulatory Liabilities [Line Items]
Regulatory assets				93,093							0
Madison Unit 3 property taxes
Regulatory Liabilities [Line Items]
Regulatory assets				$ 6,272							0
Regulatory asset, amortization period				12 months
Northlake Transmission Agreement, under collection
Regulatory Liabilities [Line Items]
Regulatory assets				$ 4,200		$ 5,700
Regulatory asset, amortization period		12 months
Other deferred costs, primarily base rate case
Regulatory Liabilities [Line Items]
Regulatory assets				3,900
Regulatory asset, amortization period		4 years
Coughlin Pipeline Project, deferred revenue
Regulatory Liabilities [Line Items]
Regulatory assets				5,100
Regulatory asset, amortization period		4 years
St. Mary Clean Energy Center
Regulatory Liabilities [Line Items]
Regulatory assets				6,524							$ 3,479
Regulatory asset, amortization period		4 years
Deferred storm restoration costs - Hurricane Ida
Regulatory Liabilities [Line Items]
Capitalized storm restoration costs				49,100
Number of customers affected with power outage | customer					100
Deferred storm restoration costs - Winter Storms Uri & Viola
Regulatory Liabilities [Line Items]
Capitalized storm restoration costs				$ 8,400				$ 50,000
Capitalized storm restoration costs, amortization period			12 months
Winter Storm Uri
Regulatory Liabilities [Line Items]
Number of customers affected with power outage | customer										11
Winter Storm Viola
Regulatory Liabilities [Line Items]
Number of customers affected with power outage | customer									43

XML

Fair Value Accounting and Financial Instruments - Carrying Value and Estimated Fair Value (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Deferred debt issuance costs not included in the carrying value of long-term debt	$ 14,100	$ 13,400
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	8,500	7,000
CARRYING VALUE
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt	3,550,179	3,230,500
CARRYING VALUE | CLECO POWER
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt	1,820,177	1,494,947
FAIR VALUE
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt	3,836,960	3,541,349
FAIR VALUE | CLECO POWER
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt	$ 2,100,029	$ 1,794,799

XML

Fair Value Accounting and Financial Instruments - Fair Value of Financial Assets and Liabilities Measured On A Recurring Basis (Details) - Measured on a Recurring Basis - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Asset description
Institutional money market funds	$ 252,807	$ 86,001
Total assets	395,037	99,405
Liability description
Total liabilities	1,589	3,237
CLECO POWER
Asset description
Institutional money market funds	135,763	25,357
Total assets	141,791	29,694
Liability description
Total liabilities	1,330	1,121
FTRs
Asset description
Derivative assets	9,338	4,805
Liability description
Derivative liabilities	1,589	1,625
FTRs | CLECO POWER
Asset description
Derivative assets	6,028	4,337
Liability description
Derivative liabilities	1,330	1,121
Natural gas derivatives*
Asset description
Derivative assets	132,892	8,599
Liability description
Derivative liabilities	0	1,612
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) | CLECO POWER
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
Derivative assets	0	0
Liability description
Derivative liabilities	0	0
QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) | FTRs | CLECO POWER
Asset description
Derivative assets	0	0
Liability description
Derivative liabilities	0	0
QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) | Natural gas derivatives*
Asset description
Derivative assets	0	0
Liability description
Derivative liabilities	0	0
SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2)
Asset description
Institutional money market funds	252,807	86,001
Total assets	385,699	94,600
Liability description
Total liabilities	0	1,612
SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) | CLECO POWER
Asset description
Institutional money market funds	135,763	25,357
Total assets	135,763	25,357
Liability description
Total liabilities	0	0
SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) | FTRs
Asset description
Derivative assets	0	0
Liability description
Derivative liabilities	0	0
SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) | FTRs | CLECO POWER
Asset description
Derivative assets	0	0
Liability description
Derivative liabilities	0	0
SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) | Natural gas derivatives*
Asset description
Derivative assets	132,892	8,599
Liability description
Derivative liabilities	0	1,612
SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3)
Asset description
Institutional money market funds	0	0
Derivative assets	9,338	4,805
Total assets	9,338	4,805
Liability description
Derivative liabilities	1,589	1,625
Total liabilities	1,589	1,625
SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | CLECO POWER
Asset description
Institutional money market funds	0	0
Derivative assets	6,028	4,337
Total assets	6,028	4,337
Liability description
Derivative liabilities	1,330	1,121
Total liabilities	1,330	1,121
SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | FTRs
Asset description
Derivative assets	9,338	4,805
Liability description
Derivative liabilities	1,589	1,625
SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | FTRs | CLECO POWER
Asset description
Derivative assets	6,028	4,337
Liability description
Derivative liabilities	1,330	1,121
SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | Natural gas derivatives*
Asset description
Derivative assets	0	0
Liability description
Derivative liabilities	$ 0	$ 0

XML

Fair Value Accounting and Financial Instruments - Net Changes in Net Fair Value of FTR Assets and Liabilities Classified as Level 3 (Details) - Price risk derivatives - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Beginning balance	$ 7,501	$ 8,040	$ 3,180	$ 5,778
Unrealized gains (losses)	3,955	4	18,861	(736)
Purchases	619	443	11,426	10,175
Settlements	(4,326)	(3,160)	(25,718)	(9,890)
Ending balance	7,749	5,327	7,749	5,327
CLECO POWER
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Beginning balance	5,990	7,511	3,216	5,725
Unrealized gains (losses)	1,196	426	545	1,355
Purchases	619	443	9,236	8,219
Settlements	(3,107)	(2,968)	(8,299)	(9,887)
Ending balance	$ 4,698	$ 5,412	$ 4,698	$ 5,412

XML

Fair Value Accounting and Financial Instruments - Significant Unobservable Inputs Used in Developing Fair Value of Level 3 Positions (Details) - Measured on a Recurring Basis - Level 3 $ in Thousands	Sep. 30, 2021 USD ($) $ / MW	Dec. 31, 2020 USD ($) $ / MW
FAIR VALUE
ASSETS | $	$ 9,338	$ 4,805
LIABILITIES | $	1,589	1,625
CLECO POWER
FAIR VALUE
ASSETS | $	6,028	4,337
LIABILITIES | $	$ 1,330	$ 1,121
Minimum
FAIR VALUE
FORWARD PRICE RANGE (usd per mwh) | $ / MW	(8.18)	(3.49)
Minimum | CLECO POWER
FAIR VALUE
FORWARD PRICE RANGE (usd per mwh) | $ / MW	(3.26)	(3.34)
Maximum
FAIR VALUE
FORWARD PRICE RANGE (usd per mwh) | $ / MW	9.16	4.36
Maximum | CLECO POWER
FAIR VALUE
FORWARD PRICE RANGE (usd per mwh) | $ / MW	9.16	4.36

XML

Fair Value Accounting and Financial Instruments - Additional Information (Details) MWh in Thousands, MMBTU in Thousands	9 Months Ended			12 Months Ended
	Sep. 30, 2021 USD ($)	Sep. 30, 2021 USD ($) MWh	Sep. 30, 2021 USD ($) MMBTU	Dec. 31, 2020 USD ($) MWh	Dec. 31, 2020 USD ($) MMBTU
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items]
Intangible assets	$ 88,635,000	$ 88,635,000	$ 88,635,000	$ 111,731,000	$ 111,731,000
Volume outstanding		22,794	118,712	15,269	73,000
Trade name
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items]
Impairment of intangible assets	3,800,000
Intangible assets	$ 0	$ 0	$ 0
Trade name | Level 3 | Average rate | Discounted Cash Flow
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items]
Measurement input	0.08	0.08	0.08
CLECO POWER
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items]
Volume outstanding | MWh		14,596		9,521
Energy risk management assets, current | Natural gas derivatives* | DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items]
Collateral	$ 8,900,000	$ 8,900,000	$ 8,900,000	$ 0	$ 0

XML

Fair Value Accounting and Financial Instruments - Institutional Money Market Funds (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items]
Cash and cash equivalents	$ 249,711	$ 80,712
CLECO POWER
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items]
Cash and cash equivalents	133,411	20,812
Current restricted cash and cash equivalents
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items]
Restricted cash and cash equivalents	2,352	4,545
Current restricted cash and cash equivalents | CLECO POWER
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items]
Restricted cash and cash equivalents	2,352	4,545
Non-current restricted cash and cash equivalents
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items]
Restricted cash and cash equivalents	$ 744	$ 744

XML

Fair Value Accounting and Financial Instruments - Fair Value of Derivative Instruments as Recorded in Condensed Consolidated Balance Sheets (Details) - DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS - USD ($)	Sep. 30, 2021	Dec. 31, 2020
GROSS ASSET (LIABILITY)
Commodity-related contracts, net	$ 149,541,000
GROSS AMOUNTS OFFSET ON THE BALANCE SHEET
Derivative, contract netting	0
Derivative, collateral total	(8,900,000)
NET ASSET (LIABILITY) ON THE BALANCE SHEET
Net asset (liability) on the balance sheet	140,641,000	$ 10,167,000
GROSS AMOUNTS NOT OFFSET ON THE BALANCE SHEET (1)
Collateral, assets	(55,000,000)
NET AMOUNT
Net amount	85,641,000
Price risk derivatives | CLECO POWER
GROSS ASSET (LIABILITY)
Commodity-related contracts, net	4,698,000	3,216,000
Price risk derivatives | Energy risk management assets, current
GROSS ASSET (LIABILITY)
Derivative asset	9,338,000
GROSS AMOUNTS OFFSET ON THE BALANCE SHEET
Derivative asset, contract netting	0
Derivative asset, collateral	0
NET ASSET (LIABILITY) ON THE BALANCE SHEET
Derivative asset	9,338,000	4,805,000
GROSS AMOUNTS NOT OFFSET ON THE BALANCE SHEET (1)
Collateral, assets	0
NET AMOUNT
Derivative asset, net	9,338,000
Price risk derivatives | Energy risk management assets, current | CLECO POWER
GROSS ASSET (LIABILITY)
Derivative asset	6,028,000	4,337,000
Price risk derivatives | Energy risk management liabilities
GROSS ASSET (LIABILITY)
Derivative liability	(1,589,000)
GROSS AMOUNTS OFFSET ON THE BALANCE SHEET
Derivative liability, contract netting	0
Derivative liability, collateral	0
NET ASSET (LIABILITY) ON THE BALANCE SHEET
Derivative liability	(1,589,000)	(1,625,000)
GROSS AMOUNTS NOT OFFSET ON THE BALANCE SHEET (1)
Collateral, liability	0
NET AMOUNT
Derivative liability, net	(1,589,000)
Price risk derivatives | Energy risk management liabilities | CLECO POWER
GROSS ASSET (LIABILITY)
Derivative liability	(1,330,000)	(1,121,000)
Natural gas derivatives* | Energy risk management assets, current
GROSS ASSET (LIABILITY)
Derivative asset	59,648,000
GROSS AMOUNTS OFFSET ON THE BALANCE SHEET
Derivative asset, contract netting	(1,283,000)
Derivative asset, collateral	(8,900,000)	0
NET ASSET (LIABILITY) ON THE BALANCE SHEET
Derivative asset	49,465,000	8,276,000
GROSS AMOUNTS NOT OFFSET ON THE BALANCE SHEET (1)
Collateral, assets	(41,098,000)
NET AMOUNT
Derivative asset, net	8,367,000
Natural gas derivatives* | Energy risk management liabilities
GROSS ASSET (LIABILITY)
Derivative liability	(1,283,000)
GROSS AMOUNTS OFFSET ON THE BALANCE SHEET
Derivative liability, contract netting	1,283,000
Derivative liability, collateral	0
NET ASSET (LIABILITY) ON THE BALANCE SHEET
Derivative liability	0	(828,000)
GROSS AMOUNTS NOT OFFSET ON THE BALANCE SHEET (1)
Collateral, liability	0
NET AMOUNT
Derivative liability, net	0
Natural gas derivatives* | Energy risk management assets, noncurrent
GROSS ASSET (LIABILITY)
Derivative asset	83,427,000
GROSS AMOUNTS OFFSET ON THE BALANCE SHEET
Derivative asset, contract netting	0
Derivative asset, collateral	0
NET ASSET (LIABILITY) ON THE BALANCE SHEET
Derivative asset	83,427,000	323,000
GROSS AMOUNTS NOT OFFSET ON THE BALANCE SHEET (1)
Collateral, assets	(13,902,000)
NET AMOUNT
Derivative asset, net	69,525,000
Natural gas derivatives* | Other deferred credits
GROSS ASSET (LIABILITY)
Derivative liability	0
GROSS AMOUNTS OFFSET ON THE BALANCE SHEET
Derivative liability, contract netting	0
Derivative liability, collateral	0
NET ASSET (LIABILITY) ON THE BALANCE SHEET
Derivative liability	0	$ (784,000)
GROSS AMOUNTS NOT OFFSET ON THE BALANCE SHEET (1)
Collateral, liability	0
NET AMOUNT
Derivative liability, net	$ 0

XML

Fair Value Accounting and Financial Instruments - Amount of Gain (Loss) Recognized in Income on Derivatives (Details) - DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS - Price risk derivatives - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Commodity-related contracts
Net gain (loss) recognized in income on derivatives	$ 108,772	$ 22,557	$ 168,021	$ 27,724
Accumulated deferred fuel
Commodity-related contracts
Unrealized gains (losses) associated with FTRs	1,200	400	500	1,400
CLECO POWER
Commodity-related contracts
Net gain (loss) recognized in income on derivatives	1,137	687	1,931	1,865
CLECO POWER | Accumulated deferred fuel
Commodity-related contracts
Unrealized gains (losses) associated with FTRs	1,200	400	500	1,400
Electric operations
Commodity-related contracts
Net gain (loss) recognized in income on derivatives	1,959	3,013	11,167	6,262
Electric operations | CLECO POWER
Commodity-related contracts
Net gain (loss) recognized in income on derivatives	1,959	3,013	11,167	6,262
Purchased power
Commodity-related contracts
Net gain (loss) recognized in income on derivatives	(874)	(763)	(8,730)	(1,053)
Purchased power | CLECO POWER
Commodity-related contracts
Net gain (loss) recognized in income on derivatives	(822)	(2,326)	(9,236)	(4,397)
Fuel used for electric generation
Commodity-related contracts
Net gain (loss) recognized in income on derivatives	$ 107,687	$ 20,307	$ 165,584	$ 22,515

XML

Debt (Details)	Sep. 10, 2021 USD ($)	May 21, 2021 USD ($)	Sep. 30, 2021 USD ($)
Line of credit | Revolving credit agreement
Debt [Line Items]
Debt, face amount		$ 175,000,000
Ratio of indebtedness		0.65
Commitment fees		0.275%
Potential additional interest		0.125%
Potential additional commitment fee		0.05%
Borrowings outstanding			$ 0
Term loan
Debt [Line Items]
Debt, face amount		$ 266,000,000
LIBOR | Line of credit | Revolving credit agreement
Debt [Line Items]
Basis spread on variable rate		1.625%
LIBOR | Term loan
Debt [Line Items]
Basis spread on variable rate		1.625%
ABR | Line of credit | Revolving credit agreement
Debt [Line Items]
Basis spread on variable rate		0.625%
ABR | Term loan
Debt [Line Items]
Basis spread on variable rate		0.625%
CLECO POWER | Line of credit | Revolving credit agreement
Debt [Line Items]
Debt, face amount		$ 300,000,000
Ratio of indebtedness		0.65
Commitment fees		0.15%
Potential additional interest		0.125%
Potential additional commitment fee		0.025%
Borrowings outstanding			$ 0
CLECO POWER | Term loan
Debt [Line Items]
Debt, face amount		$ 125,000,000
CLECO POWER | Senior Notes
Debt [Line Items]
Debt, face amount	$ 325,000,000
Redemption price percentage	100.00%
CLECO POWER | LIBOR | Line of credit | Revolving credit agreement
Debt [Line Items]
Basis spread on variable rate		1.25%
CLECO POWER | LIBOR | Term loan
Debt [Line Items]
Basis spread on variable rate		1.25%
CLECO POWER | LIBOR | Senior Notes
Debt [Line Items]
Basis spread on variable rate	0.50%
CLECO POWER | ABR | Line of credit | Revolving credit agreement
Debt [Line Items]
Basis spread on variable rate		0.25%
CLECO POWER | ABR | Term loan
Debt [Line Items]
Basis spread on variable rate		0.25%

XML

Pension Plan and Employee Benefits - Narrative (Details) - USD ($)		3 Months Ended		9 Months Ended
	Mar. 11, 2021	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Pension Plan
Defined Benefit Plan Disclosure [Line Items]
Pension contributions required through 2025	$ 0
Special/contractual termination benefits, percent increase in benefits		10.00%		10.00%
Special/contractual termination benefits		$ 3,270,000	$ 0	$ 3,270,000	$ 0
Defined benefit plan contributions by employer		10,050,000	5,473,000	23,610,000	16,423,000
Pension Plan | CLECO POWER
Defined Benefit Plan Disclosure [Line Items]
Special/contractual termination benefits				2,400,000
Pension Plan | Support Group
Defined Benefit Plan Disclosure [Line Items]
Special/contractual termination benefits				900,000
Pension Plan | Other Subsidiaries
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan contributions by employer		1,800,000	900,000	3,600,000	2,600,000
Other Benefits Plan
Defined Benefit Plan Disclosure [Line Items]
Special/contractual termination benefits		0	0	0	0
Defined benefit plan contributions by employer		1,319,000	1,380,000	3,924,000	3,895,000
Assets held-in-trust, noncurrent		0		0
Other Benefits Plan | CLECO POWER
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan contributions by employer		1,200,000	1,100,000	3,600,000	3,600,000
SERP
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan contributions by employer		946,000	1,575,000	2,837,000	4,726,000
SERP | CLECO POWER
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan contributions by employer		$ 100,000	$ 200,000	$ 400,000	$ 700,000

XML

Pension Plan and Employee Benefits - Net Periodic Pension and Benefits Cost (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
PENSION BENEFITS
Components of periodic benefit costs
Service cost	$ 2,629	$ 2,455	$ 7,887	$ 7,365
Interest cost	4,667	5,204	14,001	15,612
Expected return on plan assets	(5,700)	(6,244)	(17,101)	(18,731)
Amortizations
Prior period service credit	0	(15)	0	(45)
Net loss	5,184	4,073	15,553	12,222
Net periodic benefit cost	6,780	5,473	20,340	16,423
Special/contractual termination benefits	3,270	0	3,270	0
Total benefit cost	10,050	5,473	23,610	16,423
OTHER BENEFITS
Components of periodic benefit costs
Service cost	629	600	1,819	1,615
Interest cost	317	418	962	1,238
Expected return on plan assets	0	0	0	0
Amortizations
Prior period service credit	0	0	0	0
Net loss	373	362	1,143	1,042
Net periodic benefit cost	1,319	1,380	3,924	3,895
Special/contractual termination benefits	0	0	0	0
Total benefit cost	1,319	1,380	3,924	3,895
SERP
Components of periodic benefit costs
Service cost	59	100	174	300
Interest cost	634	733	1,903	2,199
Amortizations
Prior period service credit	(54)	(54)	(161)	(161)
Net loss	307	796	921	2,388
Total benefit cost	$ 946	$ 1,575	$ 2,837	$ 4,726

XML

Pension Plan and Employee Benefits - Current and Non-Current Portions of the Other Benefits Liability (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Defined Benefit Plan Disclosure [Line Items]
Non-current	$ 320,504	$ 314,653
CLECO POWER
Defined Benefit Plan Disclosure [Line Items]
Non-current	237,818	230,825
Other Benefits Plan
Defined Benefit Plan Disclosure [Line Items]
Current	4,463	4,463
Non-current	51,306	51,868
Other Benefits Plan | CLECO POWER
Defined Benefit Plan Disclosure [Line Items]
Current	3,865	3,865
Non-current	$ 40,261	$ 40,734

XML

Pension Plan and Employee Benefits - Current and Non-Current Portions of SERP Liability (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Defined Benefit Plan Disclosure [Line Items]
Non-current	$ 320,504	$ 314,653
SERP Benefits
Defined Benefit Plan Disclosure [Line Items]
Current	4,703	4,703
Non-current	90,880	92,522
CLECO POWER
Defined Benefit Plan Disclosure [Line Items]
Non-current	237,818	230,825
CLECO POWER | SERP Benefits
Defined Benefit Plan Disclosure [Line Items]
Current	711	711
Non-current	$ 19,240	$ 19,828

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Pension Plan and Employee Benefits - 401 (K) Plans (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Defined Contribution Plan Disclosure [Line Items]
401(k) Plan expense		$ 2,512	$ 2,356	$ 7,391	$ 7,509
Percent of employees' gross pay, one time benefit (up to)	30.00%	30.00%		30.00%
401(k) Plan expense, additional cost	$ 200
Other Subsidiaries
Defined Contribution Plan Disclosure [Line Items]
401(k) Plan expense		$ 1,185	$ 996	$ 3,511	$ 3,491

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Income Taxes - Effective Tax Rate Reconciliation (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Effective Income Tax Rate [Line Items]
Effective tax rate	20.30%	29.40%	12.40%	26.80%
CLECO POWER
Effective Income Tax Rate [Line Items]
Effective tax rate	1.00%	33.40%	(0.20%)	28.80%

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Income Taxes - Narrative (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Uncertain Tax Positions [Line Items]
Liability for uncertain tax positions	$ 0		$ 0		$ 0
Interest payable related to uncertain tax positions	0		0		0
Penalties	0	$ 0	0	$ 0
Deferred employer payroll tax payments					6,000,000
Deferred employer payroll tax payments to be paid in 2021					3,000,000
Deferred employer payroll tax payments to be paid in 2022					3,000,000
CLECO POWER
Uncertain Tax Positions [Line Items]
Liability for uncertain tax positions	0		0		0
Interest payable related to uncertain tax positions	$ 0		$ 0		0
Deferred employer payroll tax payments					3,600,000
Deferred employer payroll tax payments to be paid in 2021					1,800,000
Deferred employer payroll tax payments to be paid in 2022					$ 1,800,000

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Disclosures about Segments (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020	Apr. 13, 2016
Revenue
Electric operations	$ 462,164	$ 386,388	$ 1,180,345	$ 1,019,501
Other operations	55,721	47,597	150,777	137,407
Affiliate revenue	0	0	0	0
Electric customer credits	(691)	(16,534)	(40,185)	(34,126)
Operating revenue, net	517,194	417,451	1,290,937	1,122,782
Net income	119,910	60,297	219,059	109,793
Depreciation and amortization	64,338	56,109	180,199	172,502
Interest income	941	910	2,416	2,964
Interest charges	34,629	34,060	101,812	103,923
Federal and state income tax expense	30,569	25,075	30,985	40,230
Other corporate costs and noncash items	71	(1,078)	(4,259)	6,807
EBITDA	248,576	173,553	525,380	430,291
Additions to property, plant, and equipment			209,960	215,692
Equity investment in investees	3,822		3,822		$ 9,072
Goodwill	1,490,797		1,490,797		1,490,797	$ 1,490,000
Total assets	8,395,807		8,395,807		7,725,569
CLECO POWER
Revenue
Electric operations	357,084	288,852	887,191	752,925
Other operations	22,779	17,775	57,674	49,443
Affiliate revenue	1,380	1,506	4,259	3,852
Electric customer credits	(691)	(16,534)	(40,429)	(33,974)
Operating revenue, net	380,552	291,599	908,695	772,246
Net income	56,561	36,092	102,407	76,156
Interest income	936	789	2,404	2,498
Interest charges	18,509	18,441	55,392	55,624
Federal and state income tax expense	548	18,076	(219)	30,770
Additions to property, plant, and equipment			202,940	205,765
Equity investment in investees	3,822		3,822		9,072
Total assets	5,256,041		5,256,041		4,766,147
Power supply agreements
Revenue
Amortization of intangible assets	6,400	6,400	19,200	19,200
OPERATING SEGMENTS
Revenue
Electric operations	464,584	388,808	1,187,606	1,026,761
Other operations	57,937	49,106	156,525	142,371
Affiliate revenue	1,380	1,506	4,259	4,056
Electric customer credits	(691)	(16,534)	(40,185)	(34,127)
Operating revenue, net	523,210	422,886	1,308,205	1,139,061
Net income	143,305	74,449	256,126	160,811
Depreciation and amortization	56,149	51,612	163,148	158,926
Interest income	940	799	2,414	2,767
Interest charges	19,626	17,957	56,178	55,271
Federal and state income tax expense	30,436	30,334	52,342	58,050
EBITDA	248,576	173,553	525,380	430,291
Additions to property, plant, and equipment			208,844	213,673
Equity investment in investees	3,822		3,822		9,072
Goodwill	1,490,797		1,490,797		1,490,797
Total assets	7,959,806		7,959,806		7,286,756
OPERATING SEGMENTS | CLECO POWER
Revenue
Electric operations	357,084	288,852	887,191	752,925
Other operations	22,779	17,775	57,674	49,443
Affiliate revenue	1,380	1,506	4,259	3,852
Electric customer credits	(691)	(16,534)	(40,429)	(33,974)
Operating revenue, net	380,552	291,599	908,695	772,246
Net income	56,561	36,092	102,407	76,156
Depreciation and amortization	43,526	40,268	126,534	125,541
Interest income	936	789	2,404	2,498
Interest charges	18,509	18,441	55,392	55,624
Federal and state income tax expense	548	18,076	(219)	30,770
EBITDA	118,208	112,088	281,710	285,593
Additions to property, plant, and equipment			202,940	205,765
Equity investment in investees	3,822		3,822		9,072
Goodwill	1,490,797		1,490,797		1,490,797
Total assets	6,746,838		6,746,838		6,256,944
OPERATING SEGMENTS | CLECO CAJUN
Revenue
Electric operations	107,500	99,956	300,415	273,836
Other operations	35,158	31,331	98,851	92,928
Affiliate revenue	0	0	0	204
Electric customer credits	0	0	244	(153)
Operating revenue, net	142,658	131,287	399,510	366,815
Net income	86,744	38,357	153,719	84,655
Depreciation and amortization	12,623	11,344	36,614	33,385
Interest income	4	10	10	269
Interest charges	1,117	(484)	786	(353)
Federal and state income tax expense	29,888	12,258	52,561	27,280
EBITDA	130,368	61,465	243,670	144,698
Additions to property, plant, and equipment			5,904	7,908
Equity investment in investees	0		0		0
Goodwill	0		0		0
Total assets	1,212,968		1,212,968		1,029,812
Amortization of deferred lease income	(2,300)	(2,300)	(6,900)	(6,900)
OPERATING SEGMENTS | CLECO CAJUN | Power supply agreements
Revenue
Amortization of intangible assets and liabilities	3,600	3,100	10,000	9,300
OTHER
Revenue
Electric operations	(2,420)	(2,420)	(7,260)	(7,260)
Other operations	1	1	4	2
Affiliate revenue	32,116	35,522	85,392	93,938
Electric customer credits	0	0	0	0
Operating revenue, net	29,697	33,103	78,136	86,680
Net income	(23,396)	(14,154)	(37,068)	(51,019)
Depreciation and amortization	8,189	4,497	17,052	13,575
Interest income	43	121	100	276
Interest charges	15,044	16,115	45,732	48,731
Federal and state income tax expense	133	(5,260)	(21,357)	(17,821)
Additions to property, plant, and equipment			1,116	2,019
Equity investment in investees	19,099		19,099		0
Goodwill	0		0		0
Total assets	685,410		685,410		595,217
OTHER | Power supply agreements | CLECO POWER
Revenue
Amortization of intangible assets	2,400	2,400	7,300	7,300
ELIMINATIONS
Revenue
Electric operations	0	0	(1)	0
Other operations	(2,217)	(1,510)	(5,752)	(4,966)
Affiliate revenue	(33,496)	(37,028)	(89,651)	(97,994)
Electric customer credits	0	0	0	1
Operating revenue, net	(35,713)	(38,538)	(95,404)	(102,959)
Net income	1	2	1	1
Depreciation and amortization	0	0	(1)	1
Interest income	(42)	(10)	(98)	(79)
Interest charges	(41)	(12)	(98)	(79)
Federal and state income tax expense	0	$ 1	0	1
Additions to property, plant, and equipment			0	$ 0
Equity investment in investees	(19,099)		(19,099)		0
Goodwill	0		0		0
Total assets	$ (249,409)		$ (249,409)		$ (156,404)

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Regulation and Rates - Provision for Rate Refund (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020	Jun. 30, 2020	Jul. 31, 2019
Regulation and Rates [Line Items]
Provision for rate refund	$ 5,465	$ 9,444
Cleco Katrina/Rita storm recovery charges
Regulation and Rates [Line Items]
Provision for rate refund	1,610	1,617
FERC audit
Regulation and Rates [Line Items]
Provision for rate refund	0	1,912
FRP
Regulation and Rates [Line Items]
Provision for rate refund	1,236	1,786
Site-specific industrial customer
Regulation and Rates [Line Items]
Provision for rate refund	611	710
TCJA
Regulation and Rates [Line Items]
Provision for rate refund	2,057	2,057
Transmission ROE
Regulation and Rates [Line Items]
Provision for rate refund	0	595
CLECO POWER
Regulation and Rates [Line Items]
Provision for rate refund	5,465	8,630		$ 79,200
CLECO POWER | Cleco Katrina/Rita storm recovery charges
Regulation and Rates [Line Items]
Provision for rate refund	1,610	1,617
CLECO POWER | FERC audit
Regulation and Rates [Line Items]
Provision for rate refund	0	1,912
CLECO POWER | FRP
Regulation and Rates [Line Items]
Provision for rate refund	1,236	1,786	$ 1,200
CLECO POWER | Site-specific industrial customer
Regulation and Rates [Line Items]
Provision for rate refund	611	710
CLECO POWER | TCJA
Regulation and Rates [Line Items]
Provision for rate refund	2,057	2,057
CLECO POWER | Transmission ROE
Regulation and Rates [Line Items]
Provision for rate refund	$ 0	$ 595

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Regulation and Rates - Narrative (Details) $ in Thousands		3 Months Ended		6 Months Ended	9 Months Ended
	Jun. 16, 2021	Sep. 30, 2021 USD ($) complaint	Sep. 30, 2020 USD ($)	Jun. 30, 2021	Sep. 30, 2021 USD ($) complaint	Sep. 30, 2020 USD ($)	Jul. 01, 2021 USD ($)	Dec. 31, 2020 USD ($)	Nov. 13, 2020 USD ($)	Jun. 30, 2020 USD ($)	Jul. 31, 2019 USD ($)
Regulation and Rates [Line Items]
Refund due to customers		$ 5,465			$ 5,465			$ 9,444
Electric customer credits		691	$ 16,534		40,185	$ 34,126
Current regulatory liabilities		46,003			46,003			23,509
FRP
Regulation and Rates [Line Items]
Refund due to customers		1,236			1,236			1,786
Cleco Katrina/Rita storm recovery charges
Regulation and Rates [Line Items]
Refund due to customers		$ 1,610			$ 1,610			1,617
FERC
Regulation and Rates [Line Items]
Number of complaints filed | complaint		2			2
CLECO POWER
Regulation and Rates [Line Items]
Refund due to customers		$ 5,465			$ 5,465			8,630			$ 79,200
Electric customer credits		691	$ 16,534		40,429	$ 33,974
Regulatory liabilities		145,364			145,364			180,565
Current regulatory liabilities		46,003			46,003			23,509
CLECO POWER | FRP
Regulation and Rates [Line Items]
Refund due to customers		1,236			1,236			1,786		$ 1,200
CLECO POWER | Cleco Katrina/Rita storm recovery charges
Regulation and Rates [Line Items]
Refund due to customers		1,610			1,610			$ 1,617
CLECO POWER | LPSC
Regulation and Rates [Line Items]
TCJA, bill credit per month									$ 7,000
Bill credit related to unprotected excess ADIT									4,400
Bill credit per month related to change in federal statutory tax rate									$ 2,600
Estimated refund for the tax-related benefits from the TCJA		2,100			2,100
CLECO POWER | LPSC | Merger Commitments, cost savings
Regulation and Rates [Line Items]
Regulatory liabilities		$ 4,300			4,300
CLECO POWER | LPSC | FRP
Regulation and Rates [Line Items]
Target ROE allowed by FRP		9.50%		10.00%
Percentage of retail earnings within range to be returned to customers		60.00%		60.00%
ROE for customer credit, low range		10.00%		10.90%
ROE for customer credit, high range		10.50%		11.75%
CLECO POWER | LPSC | FRP | Maximum
Regulation and Rates [Line Items]
Target ROE allowed by FRP		10.00%		10.90%
CLECO POWER | LPSC | Excess ADIT
Regulation and Rates [Line Items]
Bill credit related to unprotected excess ADIT							$ 2,500
Regulatory liability, amortization period	3 years
Regulatory liabilities		$ 313,900			313,900
Current regulatory liabilities		$ 39,500			39,500
CLECO POWER | FERC
Regulation and Rates [Line Items]
Electric customer credits					$ 4,400

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Variable Interest Entities - Narrative (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2021	Dec. 31, 2020
Variable Interest Entity [Line Items]
Equity investment in investee	$ 3,822	$ 9,072
CLECO POWER
Variable Interest Entity [Line Items]
Equity investment in investee	3,822	$ 9,072
Equity investment, total return of capital	5,300
CLECO POWER | Oxbow | Oxbow
Variable Interest Entity [Line Items]
Costs to be billed	$ 1,800
CLECO POWER | Oxbow
Variable Interest Entity [Line Items]
Ownership percentage by Cleco Power	50.00%
SWEPCO | Oxbow
Variable Interest Entity [Line Items]
Ownership percentage by other parties	50.00%

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Variable Interest Entities - Equity Method Investments (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Schedule of Equity Method Investments [Line Items]
Total equity investment in investee	$ 3,822		$ 3,822		$ 9,072
Operating revenue, net	517,194	$ 417,451	1,290,937	$ 1,122,782
CLECO POWER
Schedule of Equity Method Investments [Line Items]
Purchase price	12,873		12,873		12,873
Cash contributions	6,399		6,399		6,399
Distributions	(15,450)		(15,450)		(10,200)
Total equity investment in investee	3,822		3,822		$ 9,072
Operating revenue, net	380,552	291,599	908,695	772,246
CLECO POWER | Equity Method Investment, Nonconsolidated Investee or Group of Investees
Schedule of Equity Method Investments [Line Items]
Operating revenue, net	1,486	2,275	5,113	33,266
Operating expenses	1,486	2,275	5,113	33,266
Income before taxes	$ 0	$ 0	$ 0	$ 0

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Variable Interest Entities - Carrying Amount of Assets and Liabilities with Maximum Exposure to Loss (Details) - CLECO POWER - Oxbow - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2021	Dec. 31, 2020
Variable Interest Entity [Line Items]
Oxbow’s net assets/liabilities	$ 7,645	$ 18,145
Cleco Power’s 50% equity	3,822	9,072
Cleco Power’s maximum exposure to loss	$ 3,822	$ 9,072
Ownership percentage by Cleco Power	50.00%

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Litigation, Other Commitments and Contingencies, and Disclosures about Guarantees - Litigation (Details) $ in Thousands					1 Months Ended					3 Months Ended		9 Months Ended		24 Months Ended	30 Months Ended
	Oct. 20, 2021 USD ($)	Jun. 01, 2020	May 21, 2020	Jan. 01, 2020	Sep. 30, 2016	Jun. 30, 2016	Sep. 30, 2015 USD ($)	Dec. 31, 2014 claim	Nov. 30, 2014 claim	Sep. 30, 2021 USD ($)	Sep. 30, 2020 USD ($)	Sep. 30, 2021 USD ($)	Sep. 30, 2020 USD ($)	Dec. 31, 2019 USD ($)	May 31, 2016	Mar. 29, 2021 USD ($)	Sep. 27, 2019 recommendation finding
Loss Contingencies [Line Items]
Electric customer credits										$ 691	$ 16,534	$ 40,185	$ 34,126
Loss contingency, estimate of possible loss										4,100		4,100
South Central Generating
Loss Contingencies [Line Items]
Loss contingency, estimate of possible loss										1,500		1,500
FERC | MISO Transmission Rates
Loss Contingencies [Line Items]
Public utilities, requested rate increase (decrease), percentage (in hundredths)									0.50%
Gulf Coast Spinning start up costs
Loss Contingencies [Line Items]
Allegations by plaintiff, failure to perform							$ 6,500
Gulf Coast Spinning construction of cotton spinning facility
Loss Contingencies [Line Items]
Allegations by plaintiff, failure to perform							$ 60,000
Actions filed in the 9th Judicial District Court | Alleged Breach of Fiduciary Duties
Loss Contingencies [Line Items]
Number of actions filed | claim									4
Actions filed in the Civil District Court | Alleged Breach of Fiduciary Duties
Loss Contingencies [Line Items]
Number of actions filed | claim								3	3
CLECO POWER
Loss Contingencies [Line Items]
Electric customer credits										691	$ 16,534	40,429	$ 33,974
CLECO POWER | Deferred storm restoration costs - Winter Storms Uri & Viola
Loss Contingencies [Line Items]
Capitalized storm restoration costs										$ 8,400		8,400				$ 50,000
CLECO POWER | LPSC 2018-2019 Fuel Audit
Loss Contingencies [Line Items]
Fuel expense														$ 565,800
CLECO POWER | MISO Transmission Rates
Loss Contingencies [Line Items]
Public utilities, proposed return on equity, percentage (in hundredths)		10.52%		10.38%	10.32%	9.70%
CLECO POWER | LPSC | Subsequent event
Loss Contingencies [Line Items]
Environmental expense	$ 26,200
CLECO POWER | FERC
Loss Contingencies [Line Items]
Number of findings | finding																	12
Number of recommendations | recommendation																	59
Electric customer credits												$ 4,400
CLECO POWER | FERC | MISO Transmission Rates
Loss Contingencies [Line Items]
Public utilities, approved return on equity, percentage (In hundredths)															12.38%
Public utilities, proposed return on equity, percentage (in hundredths)			10.02%		9.88%										6.68%

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Litigation, Other Commitments and Contingencies, and Disclosures about Guarantees - Off-Balance Sheet Commitments and Guarantees (Details) - USD ($)	1 Months Ended	9 Months Ended
	Mar. 31, 2021	Sep. 30, 2021
Guarantor Obligations [Line Items]
Guarantor obligations, collateral held directly or by third parties, amount		$ 0
Performance Guarantee
Guarantor Obligations [Line Items]
Guarantor obligations, maximum exposure, undiscounted		42,400,000
Indemnification Agreement
Guarantor Obligations [Line Items]
Guarantor obligations, maximum exposure, undiscounted		40,000,000
Indemnification Agreement including fundamental organizational structure
Guarantor Obligations [Line Items]
Guarantor obligations, maximum exposure, undiscounted		400,000,000
CLECO POWER
Guarantor Obligations [Line Items]
Guarantor obligations, collateral held directly or by third parties, amount		0
CLECO POWER | Letters of Credit | Deferred storm restoration costs - Winter Storms Uri & Viola
Guarantor Obligations [Line Items]
Collateral returned	$ 24,900,000
CLECO POWER | Indemnification Agreement
Guarantor Obligations [Line Items]
Guarantor obligations, maximum exposure, undiscounted		40,000,000
CLECO POWER | Indemnification Agreement including fundamental organizational structure
Guarantor Obligations [Line Items]
Guarantor obligations, maximum exposure, undiscounted		$ 400,000,000
Cleco Cajun | Letters of Credit | Deferred storm restoration costs - Winter Storms Uri & Viola
Guarantor Obligations [Line Items]
Collateral returned	$ 6,500,000

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Litigation, Other Commitments and Contingencies, and Disclosures about Guarantees - Asset Retirement Obligation (Details) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2021 USD ($)	Sep. 30, 2021 USD ($)
Loss Contingencies [Line Items]
Revisions and adjustments		$ 48,641
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward]
Beginning balance		28,022
Liabilities settled		(1,316)
Accretion		715
Revisions and adjustments		48,641
Ending balance	$ 76,062	76,062
CLECO POWER
Loss Contingencies [Line Items]
Revisions and adjustments	13,100	13,101
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward]
Beginning balance		11,364
Liabilities settled		0
Accretion		249
Revisions and adjustments	13,100	13,101
Ending balance	24,714	24,714
Cleco Cajun
Loss Contingencies [Line Items]
Revisions and adjustments	35,500	35,540
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward]
Beginning balance		16,658
Liabilities settled		(1,316)
Accretion		466
Revisions and adjustments	35,500	35,540
Ending balance	51,348	51,348
Indemnification assets, maximum environmental costs	25,000	25,000
Indemnification assets	22,100	22,100
Indemnification assets, current	1,100	1,100
Indemnification assets, noncurrent	$ 21,000	$ 21,000

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Litigation, Other Commitments and Contingencies, and Disclosures about Guarantees - Risks and Uncertainties (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended	9 Months Ended
	Jun. 30, 2020	Sep. 30, 2021	Sep. 30, 2021
Loss Contingencies [Line Items]
Revisions and adjustments			$ 48,641
CLECO POWER
Loss Contingencies [Line Items]
Revisions and adjustments		$ 13,100	13,101
CLECO POWER | Dolet Hills Power Station
Loss Contingencies [Line Items]
Revisions and adjustments	$ 3,300
Investment balance		38,600	38,600
CLECO POWER | Dolet Hills Power Station | DHLC
Loss Contingencies [Line Items]
Costs to be billed		10,100	10,100
CLECO POWER | Oxbow | Oxbow
Loss Contingencies [Line Items]
Costs to be billed		$ 1,800	$ 1,800

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Affiliate Transactions - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Related Party Transaction [Line Items]
Accounts receivable - affiliate	$ 3,038		$ 3,038		$ 1,663
Accounts payable - affiliate	41,283		41,283		41,283
CLECO POWER
Related Party Transaction [Line Items]
Accounts receivable - affiliate	13,982		13,982		14,605
Accounts payable - affiliate	69,356		69,356		72,068
CLECO POWER | Cleco Holdings
Related Party Transaction [Line Items]
Accounts receivable - affiliate	10,712		10,712		10,353
Accounts payable - affiliate	57,825		57,825		57,713
CLECO POWER | Cleco Holdings | Settlement of taxes payable
Related Party Transaction [Line Items]
Accounts payable - affiliate	57,600		57,600		57,600
CLECO POWER | Affiliates
Related Party Transaction [Line Items]
Accounts receivable - affiliate	2,388		2,388		3,248
Accounts payable - affiliate	11,514		11,514		14,355
CLECO POWER | Oxbow | Affiliates
Related Party Transaction [Line Items]
Cost of mineral rights and land leases	700	$ 1,100	2,700	$ 16,600
Due to affiliates	$ 200		$ 200		$ 300

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Affiliate Transactions - Summary of Balances Payable To or Due From Affiliates (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Related Party Transaction [Line Items]
ACCOUNTS RECEIVABLE	$ 3,038	$ 1,663
ACCOUNTS PAYABLE	41,283	41,283
CLECO POWER
Related Party Transaction [Line Items]
ACCOUNTS RECEIVABLE	13,982	14,605
ACCOUNTS PAYABLE	69,356	72,068
CLECO POWER | Cleco Holdings
Related Party Transaction [Line Items]
ACCOUNTS RECEIVABLE	10,712	10,353
ACCOUNTS PAYABLE	57,825	57,713
CLECO POWER | Support Group
Related Party Transaction [Line Items]
ACCOUNTS RECEIVABLE	2,388	3,248
ACCOUNTS PAYABLE	11,514	14,355
CLECO POWER | Cleco Cajun
Related Party Transaction [Line Items]
ACCOUNTS RECEIVABLE	882	1,004
ACCOUNTS PAYABLE	$ 17	$ 0

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Intangible Assets and Liabilities - Narrative (Details) - USD ($)		9 Months Ended	12 Months Ended
	Aug. 01, 2021	Sep. 30, 2021	Dec. 31, 2008	Dec. 31, 2020	Mar. 31, 2020	Apr. 13, 2016
Finite-Lived Intangible Assets [Line Items]
Intangible assets		$ 88,635,000		$ 111,731,000
Goodwill		1,490,797,000		$ 1,490,797,000		$ 1,490,000,000
Goodwill impairment	$ 0
Trade name
Finite-Lived Intangible Assets [Line Items]
Intangible assets, residual value		0
Impairment of intangible assets		3,800,000
Intangible assets		$ 0
Power supply agreements | Minimum
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible asset, useful life		7 years
Power supply agreements | Maximum
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible asset, useful life		19 years
Cleco Katrina/Rita
Finite-Lived Intangible Assets [Line Items]
Intangible assets, residual value					$ 0
Cleco Katrina/Rita | Cleco Katrina/Rita right to bill and collect storm recovery charges
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets acquired			$ 177,500,000
Cleco Katrina/Rita | Cleco Katrina/Rita right to bill and collect storm recovery charges from customers, net of financing costs
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets acquired			176,000,000
Cleco Katrina/Rita | Financing costs
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets acquired			$ 1,500,000
Cleco Cajun | LTSA
Finite-Lived Intangible Assets [Line Items]
Intangible liabilities, remaining life		7 years
Cleco Cajun | Power supply agreements
Finite-Lived Intangible Assets [Line Items]
Intangible assets, residual value		$ 0
Cleco Cajun | Power supply agreements | Minimum
Finite-Lived Intangible Assets [Line Items]
Intangible assets, remaining life		6 years
Cleco Cajun | Power supply agreements | Maximum
Finite-Lived Intangible Assets [Line Items]
Intangible assets, remaining life		8 years

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Intangible Assets and Liabilities - Schedule of Amortization of Intangible Assets and Liabilities (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
LTSA
Finite-Lived Intangible Assets [Line Items]
Amortization of intangible liabilities	$ 871	$ 871	$ 2,613	$ 2,613
Power supply agreements
Finite-Lived Intangible Assets [Line Items]
Amortization of intangible liabilities	389	882	1,989	2,646
Cleco Katrina/Rita right to bill and collect storm recovery charges
Finite-Lived Intangible Assets [Line Items]
Amortization of intangible assets	0	0	0	517
Cleco Katrina/Rita right to bill and collect storm recovery charges | CLECO POWER
Finite-Lived Intangible Assets [Line Items]
Amortization of intangible assets	0	0	0	517
Trade name
Finite-Lived Intangible Assets [Line Items]
Amortization of intangible assets	3,770	64	3,897	191
Power supply agreements
Finite-Lived Intangible Assets [Line Items]
Amortization of intangible assets	$ 6,400	$ 6,400	$ 19,200	$ 19,200

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Intangible Assets and Liabilities - Schedule of Finite-Lived Intangible Assets and Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Finite-Lived Intangible Assets [Line Items]
Total intangible assets carrying amount	$ 184,004	$ 189,104
Total intangible liability carrying amount	38,300	38,300
Net intangible assets carrying amount	145,704	150,804
Accumulated amortization	(77,326)	(63,932)
Net intangible assets subject to amortization	68,378	86,872
LTSA
Finite-Lived Intangible Assets [Line Items]
Total intangible liability carrying amount	24,100	24,100
Power supply agreements
Finite-Lived Intangible Assets [Line Items]
Total intangible liability carrying amount	14,200	14,200
Trade name
Finite-Lived Intangible Assets [Line Items]
Total intangible assets carrying amount	0	5,100
Power supply agreements
Finite-Lived Intangible Assets [Line Items]
Total intangible assets carrying amount	$ 184,004	$ 184,004

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Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balances, beginning of period	$ 2,856,380	$ 2,693,358	$ 2,757,023	$ 2,643,006
Balances, end of period	2,976,386	2,754,103	2,976,386	2,754,103
TOTAL AOCI
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balances, beginning of period	(25,588)	(16,657)	(25,796)	(17,513)
Balances, end of period	(25,492)	(16,209)	(25,492)	(16,209)
POSTRETIREMENT BENEFIT NET LOSS
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balances, beginning of period	(25,588)	(16,657)	(25,796)	(17,513)
Amounts reclassified from AOCI	96	448	304	1,304
Balances, end of period	(25,492)	(16,209)	(25,492)	(16,209)
CLECO POWER
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balances, beginning of period	1,854,598	1,754,429	1,807,879	1,713,392
Balances, end of period	1,911,572	1,790,957	1,911,572	1,790,957
CLECO POWER | TOTAL AOCI
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balances, beginning of period	(23,880)	(21,612)	(24,753)	(22,585)
Balances, end of period	(23,467)	(21,176)	(23,467)	(21,176)
CLECO POWER | POSTRETIREMENT BENEFIT NET LOSS
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balances, beginning of period	(18,394)	(15,872)	(19,139)	(16,717)
Amounts reclassified from AOCI	350	373	1,095	1,218
Balances, end of period	(18,044)	(15,499)	(18,044)	(15,499)
CLECO POWER | NET LOSS ON CASH FLOW HEDGES
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balances, beginning of period	(5,486)	(5,740)	(5,614)	(5,868)
Amounts reclassified from AOCI	63	63	191	191
Balances, end of period	$ (5,423)	$ (5,677)	$ (5,423)	$ (5,677)

XML

Storm Restoration (Details) customer in Thousands, $ in Thousands		1 Months Ended		2 Months Ended	9 Months Ended
	May 19, 2021 USD ($)	May 31, 2021	Mar. 31, 2021 USD ($)	Oct. 28, 2020 USD ($) hurricane	Sep. 30, 2021 USD ($)	Sep. 28, 2021 USD ($)	Sep. 11, 2021	Aug. 29, 2021 customer	Aug. 05, 2021 USD ($)	Mar. 29, 2021 USD ($)	Feb. 17, 2021 customer	Feb. 14, 2021 customer	Dec. 31, 2020 USD ($)
Unusual or Infrequent Item, or Both [Line Items]
Securitized storm restoration costs									$ 342,000
Securitized storm restoration costs, reserve for future costs									$ 100,000
Hurricanes
Unusual or Infrequent Item, or Both [Line Items]
Capitalization percentage				63.00%
Capitalized storm restoration costs, interim storm recovery amount	$ 16,000
Deferred storm restoration costs - Winter Storms Uri & Viola
Unusual or Infrequent Item, or Both [Line Items]
Capitalization percentage					80.00%
Deferred storm restoration costs - Hurricane Ida
Unusual or Infrequent Item, or Both [Line Items]
Securitized storm restoration costs, reserve for future costs						$ 100,000
CLECO POWER
Unusual or Infrequent Item, or Both [Line Items]
Regulatory assets					$ 721,426								$ 456,034
CLECO POWER | Hurricane Laura, Delta and Zeta
Unusual or Infrequent Item, or Both [Line Items]
Regulatory assets					78,200
CLECO POWER | Deferred storm restoration costs - Winter Storms Uri & Viola
Unusual or Infrequent Item, or Both [Line Items]
Regulatory assets					1,974								0
CLECO POWER | Deferred storm restoration costs - Hurricane Ida
Unusual or Infrequent Item, or Both [Line Items]
Regulatory assets					36,836								$ 0
CLECO POWER | Hurricanes
Unusual or Infrequent Item, or Both [Line Items]
Number of hurricanes | hurricane				3
Estimate of storm restoration costs				$ 242,600
Capitalized storm restoration costs				$ 152,200
CLECO POWER | Deferred storm restoration costs - Winter Storms Uri & Viola
Unusual or Infrequent Item, or Both [Line Items]
Estimate of storm restoration costs					10,500
Capitalized storm restoration costs					8,400					$ 50,000
Capitalized storm restoration costs, amortization period		12 months
Fuel and purchased power costs					$ 55,000
CLECO POWER | Deferred storm restoration costs - Winter Storms Uri & Viola | Letters of Credit
Unusual or Infrequent Item, or Both [Line Items]
Collateral returned			$ 24,900
CLECO POWER | Winter Storm Uri
Unusual or Infrequent Item, or Both [Line Items]
Number of customers affected with power outage | customer												11
CLECO POWER | Winter Storm Viola
Unusual or Infrequent Item, or Both [Line Items]
Number of customers affected with power outage | customer											43
CLECO POWER | Deferred storm restoration costs - Hurricane Ida
Unusual or Infrequent Item, or Both [Line Items]
Capitalization percentage					56.00%
Capitalized storm restoration costs					$ 49,100
Number of customers affected with power outage | customer								100
Percentage of customers affected by the hurricane with power restored							100.00%
CLECO POWER | Deferred storm restoration costs - Hurricane Ida | Minimum
Unusual or Infrequent Item, or Both [Line Items]
Estimate of storm restoration costs					85,000
CLECO POWER | Deferred storm restoration costs - Hurricane Ida | Maximum
Unusual or Infrequent Item, or Both [Line Items]
Estimate of storm restoration costs					$ 95,000
Cleco Cajun | Deferred storm restoration costs - Winter Storms Uri & Viola | Letters of Credit
Unusual or Infrequent Item, or Both [Line Items]
Collateral returned			$ 6,500