Regulatory Assets and Liabilities (Tables)

3 Months Ended

Mar. 31, 2022

Regulatory Assets [Line Items]

Schedule of Regulatory Assets

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

Cleco
(THOUSANDS)	AT MAR. 31, 2022		AT DEC. 31, 2021
Total Cleco Power regulatory assets, net	$	666,332	$	663,621
2016 Merger adjustments *
Fair value of long-term debt	110,300		112,150
Postretirement costs	12,927		13,424
Financing costs	7,161		7,248
Debt issuance costs	4,837		4,920
Total Cleco regulatory assets, net	$	801,557	$	801,363

* 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 MAR. 31, 2022		AT DEC. 31, 2021
Regulatory assets
Acadia Unit 1 acquisition costs	$	1,886	$	1,913	17.75
Accumulated deferred fuel (1)	49,597		56,826		Various
Affordability study	12,749		13,094		9.25
AFUDC equity gross-up	65,799		66,574		Various	(2)
AMI deferred revenue requirement	1,909		2,045		4
AROs (1)(6)	15,644		15,141
Bayou Vista to Segura transmission project deferred revenue requirement (7)	3,209		1,392
Coughlin transaction costs	838		845		27.25
COVID-19 executive order (7)	2,953		2,953
Deferred storm restoration costs - Hurricane Delta (6)	16,729		17,113
Deferred storm restoration costs - Hurricane Ida (7)	37,841		37,617
Deferred storm restoration costs - Hurricane Laura (6)	53,061		54,282
Deferred storm restoration costs - Hurricane Zeta (6)	3,212		3,296
Deferred storm restoration costs - Winter Storms Uri & Viola (7)	1,912		1,912
Dolet Hills Power Station closure costs (7)	145,978		145,844
Energy efficiency	1,293		1,645		1
Financing costs (1)	6,733		6,826		Various	(3)
Interest costs	3,397		3,459		Various	(2)
Lignite Mine closure costs (7)	135,877		136,980
Madison Unit 3 property taxes (7)	10,597		8,362
Non-service cost of postretirement benefits	13,542		12,950		Various	(2)
Other	9,200		11,224		Various
Postretirement costs	114,690		117,773		Various	(4)
Production operations and maintenance expenses	10,304		11,058		Various	(5)
Rodemacher Unit 2 deferred costs (7)	8,350		6,931
St. Mary Clean Energy Center	5,654		6,089		3.25
Training costs	5,891		5,929		37.75
Tree trimming costs	8,413		9,092		3
Total regulatory assets	747,258		759,165
Regulatory liabilities
Deferred taxes, net	(80,926)		(95,544)		Various
Total regulatory liabilities	(80,926)		(95,544)
Total regulatory assets, net	$	666,332	$	663,621
(1) Represents regulatory assets for past expenditures that were not earning a return on investment at March 31, 2022, and December 31, 2021, respectively. All other assets are earning a return on investment. (2) Amortized over the estimated lives of the respective assets. (3) Amortized over the terms of the related debt issuances. (4) Amortized over the average service life of the remaining plan participants. (5) Deferral is recovered over the following three-year regulatory period. (6) Currently being recovered through an interim storm rate. For more information, see Note 16 — “Storm Restoration, Securitization, and Cost Recovery — Hurricanes Laura, Delta, and Zeta.” (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 MAR. 31, 2022		AT DEC. 31, 2021
Regulatory assets
Acadia Unit 1 acquisition costs	$	1,886	$	1,913	17.75
Accumulated deferred fuel (1)	49,597		56,826		Various
Affordability study	12,749		13,094		9.25
AFUDC equity gross-up	65,799		66,574		Various	(2)
AMI deferred revenue requirement	1,909		2,045		4
AROs (1)(6)	15,644		15,141
Bayou Vista to Segura transmission project deferred revenue requirement (7)	3,209		1,392
Coughlin transaction costs	838		845		27.25
COVID-19 executive order (7)	2,953		2,953
Deferred storm restoration costs - Hurricane Delta (6)	16,729		17,113
Deferred storm restoration costs - Hurricane Ida (7)	37,841		37,617
Deferred storm restoration costs - Hurricane Laura (6)	53,061		54,282
Deferred storm restoration costs - Hurricane Zeta (6)	3,212		3,296
Deferred storm restoration costs - Winter Storms Uri & Viola (7)	1,912		1,912
Dolet Hills Power Station closure costs (7)	145,978		145,844
Energy efficiency	1,293		1,645		1
Financing costs (1)	6,733		6,826		Various	(3)
Interest costs	3,397		3,459		Various	(2)
Lignite Mine closure costs (7)	135,877		136,980
Madison Unit 3 property taxes (7)	10,597		8,362
Non-service cost of postretirement benefits	13,542		12,950		Various	(2)
Other	9,200		11,224		Various
Postretirement costs	114,690		117,773		Various	(4)
Production operations and maintenance expenses	10,304		11,058		Various	(5)
Rodemacher Unit 2 deferred costs (7)	8,350		6,931
St. Mary Clean Energy Center	5,654		6,089		3.25
Training costs	5,891		5,929		37.75
Tree trimming costs	8,413		9,092		3
Total regulatory assets	747,258		759,165
Regulatory liabilities
Deferred taxes, net	(80,926)		(95,544)		Various
Total regulatory liabilities	(80,926)		(95,544)
Total regulatory assets, net	$	666,332	$	663,621
(1) Represents regulatory assets for past expenditures that were not earning a return on investment at March 31, 2022, and December 31, 2021, respectively. All other assets are earning a return on investment. (2) Amortized over the estimated lives of the respective assets. (3) Amortized over the terms of the related debt issuances. (4) Amortized over the average service life of the remaining plan participants. (5) Deferral is recovered over the following three-year regulatory period. (6) Currently being recovered through an interim storm rate. For more information, see Note 16 — “Storm Restoration, Securitization, and Cost Recovery — Hurricanes Laura, Delta, and Zeta.” (7) Currently not in a recovery period.