Fair Value Accounting and Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2021

Fair Value [Line Items]

Schedule of 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 Consolidated Balance Sheets:

Cleco
	AT DEC. 31,
	2021				2020
(THOUSANDS)	CARRYING VALUE*		FAIR VALUE		CARRYING VALUE*		FAIR VALUE
Long-term debt	$	3,482,405	$	3,752,220	$	3,230,500	$	3,541,349

* The carrying value of long-term debt does not include deferred issuance costs of $13.2 million at December 31, 2021, and $13.4 million at December 31, 2020.

Schedule of 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 DEC. 31, 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
Money market funds	$	145,033	$	145,033	$	—	$	—	$	86,001	$	—	$	86,001	$	—
FTRs	6,977		—		—		6,977		4,805		—		—		4,805
Natural gas derivatives	87,464		—		87,464		—		8,599		—		8,599		—
Total assets	$	239,474	$	145,033	$	87,464	$	6,977	$	99,405	$	—	$	94,600	$	4,805
Liability Description
FTRs	$	834	$	—	$	—	$	834	$	1,625	$	—	$	—	$	1,625
Natural gas derivatives	—		—		—		—		1,612		—		1,612		—
Total liabilities	$	834	$	—	$	—	$	834	$	3,237	$	—	$	1,612	$	1,625

Schedule of 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 YEAR ENDED DEC. 31,
(THOUSANDS)	2021		2020
Beginning balance	$	3,180	$	5,778
Unrealized gains *	2,567		187
Purchases	12,061		11,333
Settlements	(11,665)		(14,118)
Ending balance	$	6,143	$	3,180
* Cleco Power’s unrealized gains (losses) are reported through Accumulated deferred fuel on Cleco’s Consolidated Balance Sheet. Cleco Cajun’s unrealized gains (losses) are reported through Purchased power on Cleco’s Consolidated Statement of Income.

Schedule of 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 December 31, 2021:

Cleco
	FAIR VALUE				VALUATION TECHNIQUE	SIGNIFICANT UNOBSERVABLE INPUTS	FORWARD PRICE RANGE
(THOUSANDS, EXCEPT DOLLAR PER MWh)	Assets		Liabilities				Low		High
FTRs at December 31, 2021	$	6,977	$	834	RTO auction pricing	FTR price - per MWh	$	(3.94)	$	9.25
FTRs at December 31, 2020	$	4,805	$	1,625	RTO auction pricing	FTR price - per MWh	$	(3.49)	$	4.36

Schedule of Institutional Money Market Funds

The following tables present the money market funds in cash and cash equivalents and restricted cash and cash equivalents as recorded on Cleco and Cleco Power’s Consolidated Balance Sheets at December 31, 2021, and 2020:

Cleco
	FOR THE YEAR ENDED DEC. 31,
(THOUSANDS)	2021		2020
Cash and cash equivalents	$	145,011	$	80,712
Current restricted cash and cash equivalents	$	—	$	4,545
Non-current restricted cash and cash equivalents	$	22	$	744

Offsetting Liabilities

Cleco and Cleco Power’s Consolidated Balance Sheets at December 31, 2021, and 2020:

Cleco
	DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS
		AT DEC. 31, 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		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	$	6,977	$	—	$	6,977	$	—	$	6,977	$	4,805
Current	Energy risk management liabilities	(834)		—		(834)		—		(834)		(1,625)
Natural gas derivatives
Current	Energy risk management assets	37,061		(559)		36,502		(15,000)		21,502		8,276
Non-current	Energy risk management assets	50,962		—		50,962		—		50,962		323
Current	Energy risk management liabilities	(559)		559		—		—		—		(828)
Non-current	Other deferred credits	—		—		—		—		—		(784)
Commodity-related contracts, net		$	93,607	$	—	$	93,607	$	(15,000)	$	78,607	$	10,167

(1) Represents letters of credit by counterparties.

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

Offsetting Assets

Cleco and Cleco Power’s Consolidated Balance Sheets at December 31, 2021, and 2020:

Cleco
	DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS
		AT DEC. 31, 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		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	$	6,977	$	—	$	6,977	$	—	$	6,977	$	4,805
Current	Energy risk management liabilities	(834)		—		(834)		—		(834)		(1,625)
Natural gas derivatives
Current	Energy risk management assets	37,061		(559)		36,502		(15,000)		21,502		8,276
Non-current	Energy risk management assets	50,962		—		50,962		—		50,962		323
Current	Energy risk management liabilities	(559)		559		—		—		—		(828)
Non-current	Other deferred credits	—		—		—		—		—		(784)
Commodity-related contracts, net		$	93,607	$	—	$	93,607	$	(15,000)	$	78,607	$	10,167

(1) Represents letters of credit by counterparties.

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

Schedule of Fair Value of Derivative Instruments as Recorded in Condensed Consolidated Balance Sheets

The following tables present the volume of commodity-related derivative contracts outstanding at December 31, 2021, and December 31, 2020, for Cleco and Cleco Power:

Cleco
		TOTAL VOLUME OUTSTANDING
(THOUSAND)	UNIT OF MEASURE	AT DEC. 31, 2021	AT DEC. 31, 2020
Commodity-related contracts
FTRs	MWh	14,055	15,269
Natural gas derivatives	MMBtus	109,306	73,000

Schedule of 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 Consolidated Statements of Income for the years December 31, 2021, 2020, and 2019:

Cleco
	AMOUNT OF GAIN/(LOSS) RECOGNIZED IN INCOME ON DERIVATIVES
		FOR THE YEAR ENDED DEC. 31,
(THOUSANDS)	DERIVATIVES LINE ITEM	2021		2020		2019
Commodity contracts
FTRs(1)	Electric operations	$	12,797	$	9,213	$	13,043
FTRs(1)	Purchased power	(6,237)		(3,467)		(15,685)
Natural gas derivatives	Fuel used for electric generation	134,144		(12,159)		(5,172)
Total		$	140,704	$	(6,413)	$	(7,814)

(1) For the years ended December 31, 2021, 2020, and 2019, unrealized gains (losses) associated with FTRs for Cleco Power of $2.8 million, $0.5 million and $(1.7) million, respectively, were reported through Accumulated deferred fuel on the balance sheet.

CLECO POWER

Fair Value [Line Items]

Schedule of Carrying Value and Estimated Fair Value

Cleco Power
	AT DEC. 31,
	2021				2020
(THOUSANDS)	CARRYING VALUE*		FAIR VALUE		CARRYING VALUE*		FAIR VALUE
Long-term debt	$	1,820,254	$	2,085,944	$	1,494,947	$	1,794,799

* The carrying value of long-term debt does not include deferred issuance costs of $7.9 million at December 31, 2021, and $7.0 million at December 31, 2020.

Schedule of Fair Value of Financial Assets and Liabilities Measured On A Recurring Basis

Cleco Power
	FAIR VALUE MEASUREMENTS AT REPORTING DATE
(THOUSANDS)	AT DEC. 31, 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
Money market funds	$	82,411	$	82,411	$	—	$	—	$	25,357	$	—	$	25,357	$	—
FTRs	5,515		—		—		5,515		4,337		—		—		4,337
Total assets	$	87,926	$	82,411	$	—	$	5,515	$	29,694	$	—	$	25,357	$	4,337
Liability Description
FTRs	$	597	$	—	$	—	$	597	$	1,121	$	—	$	—	$	1,121
Total liabilities	$	597	$	—	$	—	$	597	$	1,121	$	—	$	—	$	1,121

Schedule of Net Changes in Net Fair Value of FTR Assets and Liabilities Classified as Level 3

Cleco Power
	FOR THE YEAR ENDED DEC. 31,
(THOUSANDS)	2021		2020
Beginning balance	$	3,216	$	5,725
Unrealized gains *	2,828		450
Purchases	9,871		9,378
Settlements	(10,997)		(12,337)
Ending balance	$	4,918	$	3,216
* Unrealized gains (losses) are reported through Accumulated deferred fuel on Cleco Power's Consolidated Balance Sheets.

Schedule of 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 DOLLAR PER MWh)	Assets		Liabilities				Low		High
FTRs at December 31, 2021	$	5,515	$	597	RTO auction pricing	FTR price - per MWh	$	(4.91)	$	9.25
FTRs at December 31, 2020	$	4,337	$	1,121	RTO auction pricing	FTR price - per MWh	$	(3.34)	$	4.36

Schedule of Institutional Money Market Funds

Cleco Power
	FOR THE YEAR ENDED DEC. 31,
(THOUSANDS)	2021		2020
Cash and cash equivalents	$	82,411	$	20,812
Current restricted cash and cash equivalents	$	—	$	4,545

Schedule of 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 DEC. 31, 2021		AT DEC. 31, 2020
Commodity-related contracts
FTRs:
Current	Energy risk management assets	$	5,515	$	4,337
Current	Energy risk management liabilities	(597)		(1,121)
Commodity-related contracts, net		$	4,918	$	3,216

Cleco Power
		TOTAL VOLUME OUTSTANDING
(THOUSAND)	UNIT OF MEASURE	AT DEC. 31, 2021	AT DEC. 31, 2020
Commodity-related contracts
FTRs	MWh	8,899	9,521

Schedule of Amount of Gain (Loss) Recognized in Income on Derivatives

Cleco Power
		AMOUNT OF GAIN/(LOSS) RECOGNIZED IN INCOME ON DERIVATIVES
		FOR THE YEAR ENDED DEC. 31,
(THOUSANDS)	DERIVATIVES LINE ITEM	2021		2020		2019
Commodity contracts
FTRs(1)	Electric operations	$	12,797	$	9,213	$	13,047
FTRs(1)	Purchased power	(10,360)		(6,803)		(6,066)
Total		$	2,437	$	2,410	$	6,981

(1) For the years ended December 31, 2021, 2020, and 2019, unrealized gains (losses) associated with FTRs of $2.8 million, $0.5 million, and $(0.9) million, respectively, were reported through Accumulated deferred fuel on the balance sheet.