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Schedule I Financial Statements of Cleco Holdings (Parent Company Only)
 12 Months Ended
Dec. 31, 2021
Condensed Financial Information Disclosure [Abstract]  
Schedule I Financial Statements of Cleco Holdings (Parent Company Only)
CLECO HOLDINGS (Parent Company Only)SCHEDULE I
Condensed Statements of Income
FOR THE YEAR ENDED DEC. 31,
(THOUSANDS)202120202019
Operating expenses
Administrative and general$1,644 $1,497 $3,263 
Merger transaction costs436 3,606 7,803 
Other operating expense247 239 130 
Total operating expenses2,327 5,342 11,196 
Operating loss(2,327)(5,342)(11,196)
Equity income from subsidiaries, net of tax234,512 173,337 205,187 
Interest, net(60,461)(64,362)(70,252)
Other income, net8,788 3,021 8,568 
Income before income taxes180,512 106,654 132,307 
Federal and state income tax benefit(14,454)(15,646)(20,358)
Net income$194,966 $122,300 $152,665 
The accompanying notes are an integral part of the condensed financial statements.
CLECO HOLDINGS (Parent Company Only) SCHEDULE I
Condensed Statements of Comprehensive Income
FOR THE YEAR ENDED DEC. 31,
(THOUSANDS)202120202019
Net income$194,966 $122,300 $152,665 
Other comprehensive income, net of tax
Postretirement benefits gain (loss) (net of tax expense of $394, tax benefit of $2,922, and tax benefit of $6,808, respectively)
2,167 (8,283)(19,299)
Total other comprehensive income (loss), net of tax2,167 (8,283)(19,299)
Comprehensive income, net of tax$197,133 $114,017 $133,366 
The accompanying notes are an integral part of the condensed financial statements.
CLECO HOLDINGS (Parent Company Only)SCHEDULE I
Condensed Balance Sheets
AT DEC. 31,
(THOUSANDS)20212020
Assets
  
Current assets
  
Cash and cash equivalents
$10,408 $21,622 
Accounts receivable - affiliate
94,704 75,948 
Other accounts receivable
419 599 
Taxes receivable, net
4,001 4,196 
Cash surrender value of trust-owned life insurance policies
82,316 72,954 
Other current assets59 — 
Total current assets
191,907 175,319 
Equity investment in subsidiaries
4,304,496 4,181,383 
Accumulated deferred federal and state income taxes, net
148,371 134,809 
Other deferred charges
1,010 812 
Total assets
$4,645,784 $4,492,323 
Liabilities and member's equity
  
Liabilities
Current liabilities
Long-term debt due within one year
$67,700 $66,000 
Accounts payable
570 735 
Accounts payable - affiliate
120,691 99,822 
Taxes payable, net
14 — 
Interest accrued
10,123 10,158 
Deferred compensation
14,420 13,240 
Other current liabilities
748 756 
Total current liabilities
214,266 190,711 
Postretirement benefit obligations
3,941 4,453 
Other deferred credits
1,313 1,813 
Long-term debt, net
1,472,108 1,538,323 
Total liabilities
1,691,628 1,735,300 
Commitments and contingencies (Note 5)
Member's equity2,954,156 2,757,023 
Total liabilities and member's equity
$4,645,784 $4,492,323 
The accompanying notes are an integral part of the condensed financial statements.  
CLECO HOLDINGS (Parent Company Only) SCHEDULE I
Condensed Statements of Cash Flows
FOR THE YEAR ENDED DEC. 31,
(THOUSANDS)202120202019
Operating activities
Net cash provided by operating activities$56,054 $73,452 $189,644 
Investing activities
Return of equity investment in tax credit fund— — 1,625 
Contribution to subsidiary— — (962,170)
Net cash used in investing activities— — (960,545)
Financing activities
Draws on credit facility— 88,000 75,000 
Payments on credit facility— (88,000)(75,000)
Issuance of long-term debt— — 700,000 
Repayment of long-term debt(66,000)(64,000)(370,000)
Payment of financing costs(1,268)(2,838)(5,929)
Contribution from member— — 384,900 
Net cash (used in) provided by financing activities(67,268)(66,838)708,971 
Net (decrease) increase in cash and cash equivalents(11,214)6,614 (61,930)
Cash and cash equivalents at beginning of period21,622 15,008 76,938 
Cash and cash equivalents at end of period$10,408 $21,622 $15,008 
Supplementary cash flow information
Interest paid, net of amount capitalized$57,688 $62,745 $56,768 
Income taxes (refunded), net$— $(2,942)$(19)
The accompanying notes are an integral part of the condensed financial statements.
Note 1 — Summary of Significant Accounting Policies
The condensed financial statements represent the financial information required by SEC Regulation S-X 5-04 for Cleco Holdings, which requires the inclusion of parent company only financial statements if the restricted net assets of consolidated subsidiaries exceed 25% of total consolidated net assets as of the last day of its most recent fiscal year. As of December 31, 2021, Cleco Holdings’ restricted net assets of consolidated subsidiaries were $1.76 billion and exceeded 25% of its total consolidated net assets.
Cleco Holdings’ major, first-tier subsidiaries are Cleco Power and Cleco Cajun. Cleco Power contains the LPSC-jurisdictional generation, transmission, and distribution electric utility operations serving its retail and wholesale customers. Upon completion of the Cleco Cajun Transaction, Cleco Cajun became a major, first tier subsidiary. Cleco Cajun is an unregulated electric utility company that owns generation and transmission assets and supplies wholesale power and capacity to its customers. For more information about the Cleco Cajun Transaction, see Part II, Item 8, “Financial Statements and Supplementary Data — Notes to the Financial Statements — Note 3 — Business Combinations.”
The accompanying financial statements have been prepared to present the results of operations, financial condition, and cash flows of Cleco Holdings on a stand-alone basis as a holding company. Investments in subsidiaries and other investees are presented using the equity method. These financial statements should be read in conjunction with Cleco’s consolidated financial statements.
Note 2 — Debt
At December 31, 2021, and 2020 Cleco Holdings had no short-term debt outstanding.
At December 31, 2021, Cleco Holding’s long-term debt outstanding was $1.54 billion, of which $67.7 million was due within one year. The amount due within one year represents principal payments on Cleco Holdings’ debt as required by the Cleco Cajun Transaction commitments to the LPSC.
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 65.0% 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 December 31, 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%.
Upon approval of the Cleco Cajun Transaction, commitments were made to the LPSC by Cleco Holdings, including repayment of $400.0 million of Cleco Holdings’ debt
by December 31, 2024. As of December 31, 2021, Cleco Holdings was in compliance with these commitments. The cumulative minimum principal amounts committed to be repaid for each year through 2024 are as follows:

(THOUSANDS)
For the year ending Dec. 31,
2019$66,700 
2020$133,300 
2021$200,000 
2022$267,700 
2023$333,300 
2024$400,000 

The principal amounts payable under long-term debt agreements for each year through 2026 and thereafter are as follows:

AMOUNTS PAYABLE UNDER LONG-TERM DEBT ARRANGEMENTS(THOUSANDS)
For the year ending Dec. 31,
2022$— 
2023$165,000 
2024$200,000 
2025$— 
2026$535,000 
Thereafter$650,000 
Note 3 — Cash Distributions and Equity Contributions
Some provisions in Cleco Power’s debt instruments restrict the amount of equity available for distribution to Cleco Holdings by Cleco Power by requiring Cleco Power’s total indebtedness to be less than or equal to 65.0% of total capitalization. In addition, the 2016 Merger Commitments provide for limitations on the amount of distributions that may be paid from Cleco Power to Cleco Holdings, depending on Cleco Power’s common equity ratio and its corporate credit ratings.
The following table summarizes the cash distributions Cleco Holdings received from affiliates during 2021, 2020, and 2019:

 FOR THE YEAR ENDED DEC. 31,
(THOUSANDS)202120202019
Cleco Power$— $— $20,000 
Cleco Cajun111,000 134,000 205,000 
Total$111,000 $134,000 $225,000 

During the years ended December 31, 2021, 2020, and 2019, Cleco Holdings made no non-cash equity contributions to affiliates.
During the year ended December 31, 2021, and 2020, Cleco Holdings made no cash contributions to affiliates. During the year ended December 31, 2019, Cleco Holdings made $962.2 million of contributions to Cleco Cajun to finance the Cleco Cajun Transaction.
During the years ended December 31, 2021, and 2020, Cleco Holdings received no equity contributions from Cleco Group. During the year ended December 31, 2019, Cleco
Holdings received $384.9 million equity contributions from Cleco Group.
During the years ended December 31, 2021, 2020, and 2019, Cleco Holdings made no distribution payments to Cleco Group.
Note 4 — Income Taxes
Cleco Holdings’ (Parent Company Only) Condensed Statements of Income reflect income tax expense (benefit) for the following line items:

 FOR THE YEAR ENDED DEC. 31,
(THOUSANDS)202120202019
Federal and state income tax benefit
$(14,454)$(15,646)$(20,358)
Equity income from subsidiaries - federal and state income tax expense
$27,565 $51,364 $63,523 
For information regarding the TCJA, see Part II, Item 8, “Financial Statements and Supplementary Data — Notes to the Financial Statements — Note 11 — Income Taxes — TCJA.”
Note 5 — Commitments and Contingencies
For information regarding commitments and contingencies related to Cleco Holdings, see Part II, Item 8, “Financial Statements and Supplementary Data — Notes to the Financial Statements — Note 15 — Litigation, Other Commitments and Contingencies, and Disclosures about Guarantees.”