On May 19, 2021, the LPSC issued an order authorizing Cleco Power to recover $16.0 million annually for interim storm recovery. Cleco Power began collecting this amount through rates on June 1, 2021. This order is effective until such time that the securitization of those costs is complete, which is expected in mid-2022.

Winter Storms Uri and Viola

In February 2021, Winter Storms Uri and Viola caused Cleco’s service territory to experience extreme and unprecedented winter weather that resulted in damage to Cleco Power’s distribution assets and caused electricity generation supply shortages, natural gas supply shortages, and increases in 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 was $10.1 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 $8.1 million, of the estimated total restoration costs recorded at December 31, 2021. At December 31, 2021, Cleco Power had a regulatory asset for non-capital expenses of $1.9 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 is responding to related data requests. Management is unable to determine the outcome or timing of the audit.

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 total storm restoration costs related to Hurricane Ida is approximately $92.0 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 $52.1 million, of the total restoration costs recorded at December 31, 2021. At December 31, 2021, Cleco Power had a regulatory asset for non-capital expenses related to Hurricane Ida, as allowed by the LPSC, totaling $37.6 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 and Cost Recovery

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 application. Cleco Power expects the LPSC to issue its order authorizing the recovery of the verified final storm costs in late March 2022 and securitization of those costs to be complete in mid-2022.

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.