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 June 30, 2022

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	2022 2ND 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		5
PART I	Financial Information
ITEM 1.	Cleco — Condensed Consolidated Financial Statements (Unaudited)	7
	Cleco Power — Condensed Consolidated Financial Statements (Unaudited)	16
	Notes to the Unaudited Condensed Consolidated Financial Statements	25
ITEM 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	50
ITEM 3.	Quantitative and Qualitative Disclosures about Market Risk	66
ITEM 4.	Controls and Procedures	68
PART II	Other Information
ITEM 1.	Legal Proceedings	69
ITEM 1A.	Risk Factors	69
ITEM 6.	Exhibits	69
	Signatures	70

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CLECO
CLECO POWER	2022 2ND 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
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
BCI	British Columbia Investment Management Corporation
Big Cajun II	Cleco Cajun’s generating facility located in New Roads, Louisiana consisting of Unit 1, Unit 2, and Unit 3. Cleco Cajun has a 58% ownership interest in the capacity of Unit 3.
CARES Act	Coronavirus Aid, Relief, and Economic Security Act of March 2020
CCR	Coal combustion by-products or residual
CEO	Chief Executive Officer
CFO	Chief Financial Officer
CIP	Critical Infrastructure Protection
Cleco	Cleco Holdings and its subsidiaries
Cleco Cajun	Cleco Cajun LLC 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 MAM, BCI, John Hancock Financial, and other infrastructure investors
Cleco Power	Cleco Power LLC and its subsidiaries, a wholly owned subsidiary of Cleco Holdings
Cleco Securitization I	Cleco Securitization I, LLC, a special-purpose, wholly owned subsidiary of Cleco Power
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, including any variants thereof, and the related global outbreak that was subsequently declared a pandemic by WHO in March 2020
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
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. The Dolet Hills Power Station was retired on December 31, 2021.
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

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CLECO
CLECO POWER	2022 2ND QUARTER FORM 10-Q

ABBREVIATION OR ACRONYM	DEFINITION
EPA	U.S. Environmental Protection Agency
ERO	Electric Reliability Organization
ESG	Environmental, Social, and Governance
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.
GHG	Greenhouse gas
IRS	Internal Revenue Service
kWh	Kilowatt-hour(s)
LIBOR	London Interbank Offered Rate
LMP	Locational Marginal Price
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
MAM	Macquarie Asset Management
MATS	Mercury and Air Toxics Standards
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)
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.
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
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
Storm Recovery Property	Storm Recovery Property as defined in the financing order issued by the LPSC in April 2022, which includes the right to impose, bill, charge, collect, and receive unamortized storm recovery costs from Cleco Power’s retail customers.
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.
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
CLECO POWER	2022 2ND 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, 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, and 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, epidemics, or other outbreaks, and other conflicts and hostilities, including the current armed conflict in Ukraine,

•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, and Cleco Power’s ability to recover stranded costs associated with these events,

•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 and stranded costs associated with these events,

•the ability of Cleco’s customers to pay their utility bills on time due to costs related to rising fuel prices, severe weather recoveries, or the costs of other events that are passed through to Cleco Power’s customers,

•economic conditions in Cleco’s service areas, including inflation and the economy’s effects on customer demand for and payment of 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,

•growth or decline of Cleco’s customer base, or decline in existing services, including 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 and/or key initiatives, 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,

•failure to meet expectations and report progress on ESG initiatives and GHG targets, as well as the increased focus on and activism related to ESG, which could limit Cleco’s access to capital and/or financing,

•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,

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CLECO
CLECO POWER	2022 2ND QUARTER FORM 10-Q

•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 costs, 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 of skill areas, and Cleco’s ability to attract, 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 II, Item 1A, “Risk Factors” in the Quarterly Report on Form 10-Q for the quarter ended March 31, 2022, and in Part I, Item 1A, “Risk Factors” in the Registrants’ Combined Annual Report on Form 10-K for the fiscal year ended December 31, 2021.

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.

6

CLECO
CLECO POWER	2022 2ND 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, 2021. 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.”

7

CLECO
CLECO POWER	2022 2ND QUARTER FORM 10-Q

CLECO
Condensed Consolidated Statements of Income (Unaudited)
	FOR THE THREE MONTHS ENDED JUNE 30,
(THOUSANDS)	2022		2021
Operating revenue
Electric operations	$	492,283	$	351,936
Other operations	53,264		45,330
Gross operating revenue	545,547		397,266
Electric customer credits	(129)		(18,517)
Operating revenue, net	545,418		378,749
Operating expenses
Fuel used for electric generation	168,611		25,482
Purchased power	144,797		90,494
Other operations and maintenance	74,685		72,583
Depreciation and amortization	68,182		54,318
Taxes other than income taxes	15,422		11,886
Total operating expenses	471,697		254,763
Operating income	73,721		123,986
Interest income	1,241		829
Allowance for equity funds used during construction	808		1,105
Other expense, net	(8,473)		(3,970)
Interest charges
Interest charges, net	36,761		33,826
Allowance for borrowed funds used during construction	(354)		(535)
Total interest charges	36,407		33,291
Income before income taxes	30,890		88,659
Federal and state income tax expense	29,527		9,837
Net income	$	1,363	$	78,822
The accompanying notes are an integral part of the condensed consolidated financial statements.

8

CLECO
CLECO POWER	2022 2ND QUARTER FORM 10-Q

CLECO
Condensed Consolidated Statements of Comprehensive Income (Unaudited)
	FOR THE THREE MONTHS ENDED JUNE 30,
(THOUSANDS)	2022		2021
Net income	$	1,363	$	78,822
Other comprehensive income (loss), net of tax
Postretirement benefits gain (loss) (net of tax expense of $2 in 2022 and tax benefit of $148 in 2021)	7		(420)
Total other comprehensive income (loss), net of tax	7		(420)
Comprehensive income, net of tax	$	1,370	$	78,402
The accompanying notes are an integral part of the condensed consolidated financial statements.

9

CLECO
CLECO POWER	2022 2ND QUARTER FORM 10-Q

CLECO
Condensed Consolidated Statements of Income (Unaudited)
	FOR THE SIX MONTHS ENDED JUNE 30,
(THOUSANDS)	2022		2021
Operating revenue
Electric operations	$	889,592	$	718,181
Other operations	105,271		95,056
Gross operating revenue	994,863		813,237
Electric customer credits	(265)		(39,494)
Operating revenue, net	994,598		773,743
Operating expenses
Fuel used for electric generation	166,106		81,302
Purchased power	260,625		235,196
Other operations and maintenance	142,827		144,693
Depreciation and amortization	137,270		109,265
Taxes other than income taxes	31,870		33,003
Total operating expenses	738,698		603,459
Operating income	255,900		170,284
Interest income	1,997		1,475
Allowance for equity funds used during construction	1,740		1,991
Other expense, net	(8,663)		(7,002)
Interest charges
Interest charges, net	70,664		67,918
Allowance for borrowed funds used during construction	(737)		(735)
Total interest charges	69,927		67,183
Income before income taxes	181,047		99,565
Federal and state income tax expense	23,940		416
Net income	$	157,107	$	99,149
The accompanying notes are an integral part of the condensed consolidated financial statements.

10

CLECO
CLECO POWER	2022 2ND QUARTER FORM 10-Q

CLECO
Condensed Consolidated Statements of Comprehensive Income (Unaudited)
	FOR THE SIX MONTHS ENDED JUNE 30,
(THOUSANDS)	2022		2021
Net income	$	157,107	$	99,149
Other comprehensive income, net of tax
Postretirement benefits gain (net of tax expense of $8 in 2022 and $74 in 2021)	21		208
Total other comprehensive income, net of tax	21		208
Comprehensive income, net of tax	$	157,128	$	99,357
The accompanying notes are an integral part of the condensed consolidated financial statements.

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CLECO
CLECO POWER	2022 2ND QUARTER FORM 10-Q

CLECO
Condensed Consolidated Balance Sheets (Unaudited)
(THOUSANDS)	AT JUNE 30, 2022		AT DEC. 31, 2021
Assets
Current assets
Cash and cash equivalents	$	130,878	$	148,563
Restricted cash and cash equivalents	10,958		1,674
Customer accounts receivable (less allowance for credit losses of $1,190 in 2022 and $1,302 in 2021)	114,743		91,869
Accounts receivable - affiliate	6,850		3,041
Other accounts receivable	49,415		27,818
Taxes receivable	—		564
Unbilled revenue	48,665		37,663
Fuel inventory, at average cost	100,856		68,838
Materials and supplies, at average cost	140,874		133,666
Energy risk management assets	71,550		43,479
Accumulated deferred fuel	93,376		56,826
Cash surrender value of company-/trust-owned life insurance policies	77,179		98,576
Prepayments	14,892		13,283
Regulatory assets	50,704		29,261
Other current assets	5,496		12,839
Total current assets	916,436		767,960
Property, plant, and equipment
Property, plant, and equipment	5,340,235		5,416,722
Accumulated depreciation	(861,368)		(700,991)
Net property, plant, and equipment	4,478,867		4,715,731
Construction work in progress	107,065		100,163
Total property, plant, and equipment, net	4,585,932		4,815,894
Equity investment in investee	2,072		2,072
Goodwill	1,490,797		1,490,797
Prepayments	28,086		21,598
Operating lease right of use assets	22,826		24,014
Restricted cash and cash equivalents	113,370		745
Note receivable	13,336		13,744
Regulatory assets	679,740		810,820
Intangible asset - securitization	415,946		—
Intangible assets - other	69,435		82,235
Energy risk management assets	80,560		50,962
Other deferred charges	43,785		44,177
Total assets	$	8,462,321	$	8,125,018
The accompanying notes are an integral part of the condensed consolidated financial statements.
(Continued on next page)

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CLECO
CLECO POWER	2022 2ND QUARTER FORM 10-Q

CLECO
Condensed Consolidated Balance Sheets (Unaudited)
(THOUSANDS)	AT JUNE 30, 2022		AT DEC. 31, 2021
Liabilities and member’s equity
Liabilities
Current liabilities
Short-term debt	$	55,000	$	—
Long-term debt and finance leases due within one year	261,506		93,455
Accounts payable	218,464		167,886
Accounts payable - affiliate	10,633		51,297
Customer deposits	62,299		60,852
Provision for rate refund	5,978		5,682
Taxes payable	38,999		6,311
Interest accrued	15,668		15,203
Energy risk management liabilities	7,181		834
Regulatory liabilities	43,222		44,072
Deferred compensation	11,640		14,420
Other current liabilities	50,536		53,150
Total current liabilities	781,126		513,162
Long-term liabilities and deferred credits
Accumulated deferred federal and state income taxes, net	802,980		755,764
Postretirement benefit obligations	290,638		291,606
Regulatory liabilities - deferred taxes, net	22,635		51,472
Storm reserves	108,377		—
Deferred lease revenue	26,849		31,451
Intangible liabilities	16,476		18,997
Asset retirement obligations	69,948		69,667
Operating lease liabilities	19,972		21,128
Other deferred credits	31,115		27,582
Total long-term liabilities and deferred credits	1,388,990		1,267,667
Long-term debt and finance leases, net	3,313,759		3,390,033
Total liabilities	5,483,875		5,170,862
Commitments and contingencies (Note 13)
Member’s equity	2,978,446		2,954,156
Total liabilities and member’s equity	$	8,462,321	$	8,125,018
The accompanying notes are an integral part of the condensed consolidated financial statements.

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CLECO
CLECO POWER	2022 2ND QUARTER FORM 10-Q

CLECO
Condensed Consolidated Statements of Cash Flows (Unaudited)
	FOR THE SIX MONTHS ENDED JUNE 30,
(THOUSANDS)	2022			2021
Operating activities
Net income	$	157,107		$	99,149
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization	154,322			124,750
Provision for credit losses	1,210			2,486
Unearned compensation expense	2,380			3,749
Allowance for equity funds used during construction	(1,740)			(1,991)
Gain on risk management assets and liabilities, net	(89,991)			(48,242)
Deferred lease revenue	(4,603)			(4,603)
Deferred income taxes	17,522			5,425
Cash surrender value of company-/trust-owned life insurance	3,092			(5,545)
Changes in assets and liabilities
Accounts receivable	(49,606)			(18,826)
Accounts receivable, affiliate	(3,808)			(1,023)
Unbilled revenue	(11,002)			(4,181)
Fuel inventory and materials and supplies	(39,802)			(57,899)
Prepayments	(8,494)			(7,555)
Accounts payable	51,850			12,768
Accounts payable - affiliate	(40,664)			—
Customer deposits	6,034			6,286
Provision for merger commitments	(500)			(1,143)
Postretirement benefit obligations	(939)			1,959
Regulatory assets and liabilities, net	1,815			(17,608)
Deferred fuel recoveries	(38,992)			(48,321)
Other deferred accounts	(3,248)			(8,163)
Taxes accrued	32,616			19,220
Energy risk management collateral received	42,500			—
Other operating	(2,552)			(5,230)
Net cash provided by operating activities	174,507			45,462
Investing activities
Additions to property, plant, and equipment	(101,673)			(138,516)
Return of equity investment in investee	—			1,750
Return of investment in company-owned life insurance	15,671			—
Other investing	891			1,091
Net cash used in investing activities	(85,111)			(135,675)
Financing activities
Draws on revolving credit facilities	55,000			100,000
Payments on revolving credit facilities	—			(15,000)
Issuances of long-term debt	424,946			—
Repayment of long-term debt	(325,000)			—
Payment of financing costs	(6,913)			(2,674)
Distributions to member	(132,838)			—
Other financing	(367)			(332)
Net cash provided by financing activities	14,828			81,994
Net increase (decrease) in cash, cash equivalents, restricted cash, and restricted cash equivalents	104,224			(8,219)
Cash, cash equivalents, restricted cash, and restricted cash equivalents at beginning of period	150,982		(1)	90,265
Cash, cash equivalents, restricted cash, and restricted cash equivalents at end of period	$	255,206	(2)	$	82,046
Supplementary cash flow information
Interest paid, net of amount capitalized	$	64,035		$	62,947
Supplementary non-cash investing and financing activities
Accrued additions to property, plant, and equipment	$	5,626		$	3,547
Reduction in property, plant, and equipment due to securitization of capitalized storm costs	$	197,689		$	—
Accrued distribution from equity investment in investee	$	—		$	1,750
(1) Includes cash and cash equivalents of $148,563, current restricted cash and cash equivalents of $1,674, and non-current restricted cash and cash equivalents of $745. (2) Includes cash and cash equivalents of $130,878, current restricted cash and cash equivalents of $10,958, and non-current restricted cash and cash equivalents of $113,370.
The accompanying notes are an integral part of the condensed consolidated financial statements.

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CLECO POWER	2022 2ND 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, Mar. 31, 2021	$	2,454,276	$	348,870	$	(25,168)	$	2,777,978
Net income	—		78,822		—		78,822
Other comprehensive loss, net of tax	—		—		(420)		(420)
Balances, June 30, 2021	$	2,454,276	$	427,692	$	(25,588)	$	2,856,380
Balances, Mar. 31, 2022	$	2,454,276	$	669,253	$	(23,615)	$	3,099,914
Distributions to member	—		(122,838)		—		(122,838)
Net income	—		1,363		—		1,363
Other comprehensive income, net of tax	—		—		7		7
Balances, June 30, 2022	$	2,454,276	$	547,778	$	(23,608)	$	2,978,446
Balances, Dec. 31, 2020	$	2,454,276	$	328,543	$	(25,796)	$	2,757,023
Net income	—		99,149		—		99,149
Other comprehensive income, net of tax	—		—		208		208
Balances, June 30, 2021	$	2,454,276	$	427,692	$	(25,588)	$	2,856,380
Balances, Dec. 31, 2021	$	2,454,276	$	523,509	$	(23,629)	$	2,954,156
Distributions to member	—		(132,838)		—		(132,838)
Net income	—		157,107		—		157,107
Other comprehensive income, net of tax	—		—		21		21
Balances, June 30, 2022	$	2,454,276	$	547,778	$	(23,608)	$	2,978,446
The accompanying notes are an integral part of the condensed consolidated financial statements.

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CLECO POWER	2022 2ND 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, 2021. 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 POWER	2022 2ND QUARTER FORM 10-Q

CLECO POWER
Condensed Consolidated Statements of Income (Unaudited)
	FOR THE THREE MONTHS ENDED JUNE 30,
(THOUSANDS)	2022		2021
Operating revenue
Electric operations	$	368,614	$	262,948
Other operations	18,686		16,269
Affiliate revenue	1,628		1,224
Gross operating revenue	388,928		280,441
Electric customer credits	(129)		(18,762)
Operating revenue, net	388,799		261,679
Operating expenses
Fuel used for electric generation	149,658		68,633
Purchased power	51,412		34,255
Other operations and maintenance	52,277		52,160
Depreciation and amortization	44,299		40,933
Taxes other than income taxes	11,547		7,314
Total operating expenses	309,193		203,295
Operating income	79,606		58,384
Interest income	1,035		825
Allowance for equity funds used during construction	808		1,105
Other expense, net	(2,225)		(5,700)
Interest charges
Interest charges, net	21,659		18,772
Allowance for borrowed funds used during construction	(354)		(535)
Total interest charges	21,305		18,237
Income before income taxes	57,919		36,377
Federal and state income tax expense	3,214		8,956
Net income	$	54,705	$	27,421
The accompanying notes are an integral part of the condensed consolidated financial statements.

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CLECO POWER	2022 2ND QUARTER FORM 10-Q

CLECO POWER
Condensed Consolidated Statements of Comprehensive Income (Unaudited)
	FOR THE THREE MONTHS ENDED JUNE 30,
(THOUSANDS)	2022		2021
Net income	$	54,705	$	27,421
Other comprehensive income, net of tax
Postretirement benefits gain (net of tax expense of $113 in 2022 and $101 in 2021)	307		287
Amortization of interest rate derivatives to earnings (net of tax expense of $23 in 2022 and $22 in 2021)	63		64
Total other comprehensive income, net of tax	370		351
Comprehensive income, net of tax	$	55,075	$	27,772
The accompanying notes are an integral part of the condensed consolidated financial statements.

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CLECO POWER	2022 2ND QUARTER FORM 10-Q

CLECO POWER
Condensed Consolidated Statements of Income (Unaudited)
	FOR THE SIX MONTHS ENDED JUNE 30,
(THOUSANDS)	2022		2021
Operating revenue
Electric operations	$	664,711	$	530,107
Other operations	37,771		34,895
Affiliate revenue	3,087		2,879
Gross operating revenue	705,569		567,881
Electric customer credits	(265)		(39,738)
Operating revenue, net	705,304		528,143
Operating expenses
Fuel used for electric generation	250,239		113,843
Purchased power	101,822		113,288
Other operations and maintenance	101,006		105,726
Depreciation and amortization	89,538		83,009
Taxes other than income taxes	24,178		23,816
Total operating expenses	566,783		439,682
Operating income	138,521		88,461
Interest income	1,775		1,468
Allowance for equity funds used during construction	1,740		1,991
Other expense, net	(4,261)		(9,958)
Interest charges
Interest charges, net	40,845		37,618
Allowance for borrowed funds used during construction	(737)		(735)
Total interest charges	40,108		36,883
Income before income taxes	97,667		45,079
Federal and state income tax expense (benefit)	3,938		(767)
Net income	$	93,729	$	45,846
The accompanying notes are an integral part of the condensed consolidated financial statements.

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CLECO POWER	2022 2ND QUARTER FORM 10-Q

CLECO POWER
Condensed Consolidated Statements of Comprehensive Income (Unaudited)
	FOR THE SIX MONTHS ENDED JUNE 30,
(THOUSANDS)	2022		2021
Net income	$	93,729	$	45,846
Other comprehensive income, net of tax
Postretirement benefits gain (net of tax expense of $226 in 2022 and $263 in 2021)	613		745
Amortization of interest rate derivatives to earnings (net of tax expense of $46 in 2022 and $45 in 2021)	126		128
Total other comprehensive income, net of tax	739		873
Comprehensive income, net of tax	$	94,468	$	46,719
The accompanying notes are an integral part of the condensed consolidated financial statements.

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CLECO POWER	2022 2ND QUARTER FORM 10-Q

CLECO POWER
Condensed Consolidated Balance Sheets (Unaudited)
(THOUSANDS)	AT JUNE 30, 2022		AT DEC. 31, 2021
Assets
Utility plant and equipment
Property, plant, and equipment	$	5,665,410	$	5,745,489
Accumulated depreciation	(2,032,562)		(1,919,766)
Net property, plant, and equipment	3,632,848		3,825,723
Construction work in progress	101,666		94,573
Total utility plant and equipment, net	3,734,514		3,920,296
Current assets
Cash and cash equivalents	52,810		85,667
Restricted cash and cash equivalents	10,958		1,674
Customer accounts receivable (less allowance for credit losses of $1,190 in 2022 and $1,302 in 2021)	58,462		48,551
Accounts receivable - affiliate	3,209		13,612
Other accounts receivable	30,015		21,931
Taxes receivable	328		—
Unbilled revenue	48,665		37,663
Fuel inventory, at average cost	78,233		46,121
Materials and supplies, at average cost	108,306		101,502
Energy risk management assets	10,857		5,515
Accumulated deferred fuel	93,376		56,826
Cash surrender value of company-owned life insurance policies	16,280		16,260
Prepayments	8,631		7,784
Regulatory assets	42,968		21,526
Other current assets	2,202		782
Total current assets	565,300		465,414
Equity investment in investee	2,072		2,072
Prepayments	1,336		1,243
Operating lease right of use assets	22,788		23,970
Restricted cash and cash equivalents	112,623		—
Note receivable	13,336		13,744
Regulatory assets	554,767		680,813
Intangible asset - securitization	415,946		—
Other deferred charges	21,430		21,949
Total assets	$	5,444,112	$	5,129,501
The accompanying notes are an integral part of the condensed consolidated financial statements.
(Continued on next page)

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CLECO POWER
Condensed Consolidated Balance Sheets (Unaudited)
(THOUSANDS)	AT JUNE 30, 2022		AT DEC. 31, 2021
Liabilities and member’s equity
Member’s equity	$	1,991,005	$	1,948,537
Long-term debt and finance leases, net	1,892,407		1,800,854
Total capitalization	3,883,412		3,749,391
Current liabilities
Short-term debt	55,000		—
Long-term debt and finance leases due within one year	28,985		25,755
Accounts payable	144,713		114,493
Accounts payable - affiliate	10,383		69,729
Customer deposits	62,299		60,852
Provision for rate refund	5,978		5,682
Taxes payable	30,126		5,494
Interest accrued	5,536		5,080
Energy risk management liabilities	719		597
Regulatory liabilities	43,222		44,072
Other current liabilities	29,389		23,467
Total current liabilities	416,350		355,221
Commitments and contingencies (Note 13)
Long-term liabilities and deferred credits
Accumulated deferred federal and state income taxes, net	741,773		707,479
Postretirement benefit obligations	206,150		205,214
Regulatory liabilities - deferred taxes, net	22,635		51,472
Storm reserves	108,377		—
Asset retirement obligations	19,519		19,456
Operating lease liabilities	19,950		21,100
Other deferred credits	25,946		20,168
Total long-term liabilities and deferred credits	1,144,350		1,024,889
Total liabilities and member’s equity	$	5,444,112	$	5,129,501
The accompanying notes are an integral part of the condensed consolidated financial statements.

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CLECO POWER	2022 2ND QUARTER FORM 10-Q

CLECO POWER
Condensed Consolidated Statements of Cash Flows (Unaudited)
	FOR THE SIX MONTHS ENDED JUNE 30,
(THOUSANDS)	2022			2021
Operating activities
Net income	$	93,729		$	45,846
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization	93,589			85,844
Provision for credit losses	1,210			2,486
Unearned compensation expense	356			1,063
Allowance for equity funds used during construction	(1,740)			(1,991)
Deferred income taxes	4,334			(8,424)
Changes in assets and liabilities
Accounts receivable	(23,192)			(11,775)
Accounts receivable - affiliate	11,978			3,368
Unbilled revenue	(11,002)			(4,181)
Fuel inventory and materials and supplies	(39,493)			(58,627)
Accounts payable	29,774			30,625
Accounts payable - affiliate	(58,837)			(1,763)
Customer deposits	6,034			6,286
Postretirement benefit obligations	202			1,661
Regulatory assets and liabilities, net	821			(18,602)
Deferred fuel recoveries	(38,992)			(48,321)
Other deferred accounts	1,340			(5,063)
Taxes accrued	23,668			30,062
Other operating	(3,109)			(7,969)
Net cash provided by operating activities	90,670			40,525
Investing activities
Additions to property, plant, and equipment	(98,162)			(132,194)
Return of equity investment in investee	—			1,750
Other investing	869			1,091
Net cash used in investing activities	(97,293)			(129,353)
Financing activities
Draws on revolving credit facility	55,000			100,000
Payments on revolving credit facility	—			(15,000)
Issuances of long-term debt	424,946			—
Repayment of long-term debt	(325,000)			—
Payment of financing costs	(6,906)			(1,515)
Distributions to member	(52,000)			—
Other financing	(367)			(332)
Net cash provided by financing activities	95,673			83,153
Net increase (decrease) in cash, cash equivalents, restricted cash, and restricted cash equivalents	89,050			(5,675)
Cash, cash equivalents, restricted cash, and restricted cash equivalents at beginning of period	87,341		(1)	29,391
Cash, cash equivalents, restricted cash, and restricted cash equivalents at end of period	$	176,391	(2)	$	23,716
Supplementary cash flow information
Interest paid, net of amount capitalized	$	35,480		$	33,973
Supplementary non-cash investing and financing activities
Accrued additions to property, plant, and equipment	$	5,345		$	2,814
Reduction in property, plant, and equipment due to securitization of capitalized storm costs	$	197,689		$	—
Accrued distribution from equity investment in investee	$	—		$	1,750
(1) Includes cash and cash equivalents of $85,667 and current restricted cash and cash equivalents of $1,674. (2) Includes cash and cash equivalents of $52,810, current restricted cash and cash equivalents of $10,958, and non-current restricted cash and cash equivalents of $112,623.
The accompanying notes are an integral part of the condensed consolidated financial statements.

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CLECO POWER
Condensed Consolidated Statements of Changes in Member’s Equity (Unaudited)
(THOUSANDS)	MEMBER’S EQUITY		AOCI		TOTAL  MEMBER’S EQUITY
Balances, March 31, 2021	$	1,851,057	$	(24,231)	$	1,826,826
Net income	27,421		—		27,421
Other comprehensive income, net of tax	—		351		351
Balances, June 30, 2021	$	1,878,478	$	(23,880)	$	1,854,598
Balances, March 31, 2022	$	2,005,744	$	(17,814)	$	1,987,930
Distributions to parent	(52,000)		—		(52,000)
Net income	54,705		—		54,705
Other comprehensive income, net of tax	—		370		370
Balances, June 30, 2022	$	2,008,449	$	(17,444)	$	1,991,005
Balances, Dec. 31, 2020	$	1,832,632	$	(24,753)	$	1,807,879
Net income	45,846		—		45,846
Other comprehensive income, net of tax	—		873		873
Balances, June 30, 2021	$	1,878,478	$	(23,880)	$	1,854,598
Balances, Dec. 31, 2021	$	1,966,720	$	(18,183)	$	1,948,537
Distributions to parent	(52,000)		—		(52,000)
Net income	93,729		—		93,729
Other comprehensive income, net of tax	—		739		739
Balances, June 30, 2022	$	2,008,449	$	(17,444)	$	1,991,005
The accompanying notes are an integral part of the condensed consolidated financial statements.

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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 Securitization and Cost Recovery	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.

In response to the COVID-19 pandemic, in March 2020 the LPSC issued an executive order prohibiting the disconnection of utilities for nonpayment. On December 4, 2020, Cleco Power made a filing with the LPSC requesting the recovery of expenses incurred as a result of this executive order, as well as the lost revenue associated with the disconnection fees and incremental costs. Cleco Power anticipates approval of the recovery of these expenses in the fourth quarter of 2022. At June 30, 2022, Cleco Power had a regulatory asset of $3.0 million recorded for expenses incurred related to the executive order, as allowed by the LPSC.

Cleco continues to assess the COVID-19 situation and cannot predict the full impact that COVID-19, or any significant related disruptions, will have on its business, cash flows, liquidity, financial condition, and results of operations.

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.

Following the formation of Cleco Securitization I and the closing of the storm securitization financing on June 22, 2022, Cleco Power became the primary beneficiary of Cleco Securitization I, and as a result, the financial statements of Cleco Securitization I are consolidated with the financial statements of Cleco Power. For additional information about

Cleco Securitization I, see Note 12 — “Variable Interest Entities.” For additional information about the storm securitization financing and its regulatory impacts, see Note 5 — “Regulatory Assets and Liabilities — Deferred Storm Restoration Costs” and Note 17 — “Storm Securitization and Cost Recovery.”

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, 2021.

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’s 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

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

Cleco
(THOUSANDS)	AT JUNE 30, 2022		AT DEC. 31, 2021
Current
Cleco Katrina/Rita storm recovery surcharge	$	1,677	$	1,674
Cleco Power’s storm restoration costs - Hurricane Ida	9,281		—
Total current	10,958		1,674
Non-current
Diversified Lands’ mitigation escrow	22		22
Cleco Cajun’s defense fund	725		723
Cleco Power’s future storm restoration costs	102,286		—
Cleco Power’s storm restoration costs - Hurricane Ida	6,091		—
Cleco Securitization I’s operating expenses and storm recovery bond issuance costs	4,246		—
Total non-current	113,370		745
Total restricted cash and cash equivalents	$	124,328	$	2,419

Cleco Power
(THOUSANDS)	AT JUNE 30, 2022		AT DEC. 31, 2021
Current
Cleco Katrina/Rita storm recovery surcharge	$	1,677	$	1,674
Storm restoration costs - Hurricane Ida	9,281		—
Total current	10,958		1,674
Non-current
Future storm restoration costs	102,286		—
Storm restoration costs - Hurricane Ida	6,091		—
Cleco Securitization I’s operating expenses and storm recovery bond issuance costs	4,246		—
Total non-current	112,623		—
Total restricted cash and cash equivalents	$	123,581	$	1,674

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 to be approved by the LPSC. On July 27, 2022, the LPSC approved this amount to be refunded to Cleco Power’s retail customers in September 2022.

On June 22, 2022, the storm securitization financing was completed. In connection with this financing, and as approved by the LPSC, newly funded storm reserves for future storm restoration costs and Hurricane Ida storm restoration costs were established at Cleco Power. The establishment of these reserves resulted in an increase in current and non-current restricted cash and cash equivalents of $9.3 million and $108.4 million, respectively. Additionally, restricted cash accounts were established for payment of Cleco Securitization I’s estimated operating expenses and storm recovery bond issuance costs resulting in an increase in non-current restricted cash and cash equivalents of $4.2 million. For more information on the storm securitization financing, see Note 17 — “Storm Securitization and Cost Recovery.”

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.

As a result of the market price volatility of natural gas experienced during the second quarter of 2022, Cleco expects significant increases to the pass-through fuel component of retail customer energy bills to be issued during subsequent quarters. Due to these increased customer fuel costs, along with the impacts of a 40-year high inflation rate, management expects to experience increases in credit loss reserves related to accounts receivable in future periods. However, these increases are not expected to be material to Cleco’s results of operations, financial condition, or cash flows.

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 JUNE 30, 2022						FOR THE SIX MONTHS ENDED JUNE 30, 2022
(THOUSANDS)	ACCOUNTS RECEIVABLE		OTHER*		TOTAL		ACCOUNTS RECEIVABLE		OTHER*		TOTAL
Beginning of period	$	1,002	$	1,638	$	2,640	$	1,302	$	1,638	$	2,940
Current period provision	819		—		819		1,210		—		1,210
Charge-offs	(916)		—		(916)		(2,005)		—		(2,005)
Recovery	285		—		285		683		—		683
Balances, June 30, 2022	$	1,190	$	1,638	$	2,828	$	1,190	$	1,638	$	2,828

* Loan held at Diversified Lands that was fully reserved for at December 31, 2020.

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CLECO POWER	2022 2ND QUARTER FORM 10-Q

	FOR THE THREE MONTHS ENDED JUNE 30, 2021						FOR THE SIX MONTHS ENDED JUNE 30, 2021
(THOUSANDS)	ACCOUNTS RECEIVABLE		OTHER*		TOTAL		ACCOUNTS RECEIVABLE		OTHER*		TOTAL
Beginning of period	$	2,040	$	1,638	$	3,678	$	2,758	$	1,638	$	4,396
Current period provision	616		—		616		2,490		—		2,490
Charge-offs	(1,583)		—		(1,583)		(4,442)		—		(4,442)
Recovery	261		—		261		528		—		528
Balances, June 30, 2021	$	1,334	$	1,638	$	2,972	$	1,334	$	1,638	$	2,972

* Loan held at Diversified Lands that was fully reserved for at December 31, 2020.

Cleco Power
	FOR THE THREE MONTHS ENDED JUNE 30, 2022		FOR THE SIX MONTHS ENDED JUNE 30, 2022
(THOUSANDS)	ACCOUNTS RECEIVABLE
Beginning of period	$	1,002	$	1,302
Current period provision	819		1,210
Charge-offs	(916)		(2,005)
Recovery	285		683
Balance, June 30, 2022	$	1,190	$	1,190

	FOR THE THREE MONTHS ENDED JUNE 30, 2021		FOR THE SIX MONTHS ENDED JUNE 30, 2021
(THOUSANDS)	ACCOUNTS RECEIVABLE
Beginning of period	$	2,040	$	2,758
Current period provision	616		2,490
Charge-offs	(1,583)		(4,442)
Recovery	261		528
Balance, June 30, 2021	$	1,334	$	1,334

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 in the event LIBOR is discontinued or deemed to no longer be representative, or prior to such events, at the option of Cleco and the administrative agent. 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 November 2021, FASB issued guidance requiring annual disclosures about government assistance with the objective of increasing transparency and reducing existing diversity in practice. This guidance requires disclosure of the types of assistance, an entity’s accounting for the assistance, and the effect of the assistance on the entity’s financial statements. This guidance is effective for annual periods beginning after December 15, 2021. Early adoption is permitted. Funding is being sought for relief of incurred storm costs. In addition, a congressional appropriation has been secured, subject to the U.S. Department of Energy’s grant process, to help offset future costs associated with Cleco Power’s Project Diamond Vault. Management will continue to monitor this activity to determine what, if any, disclosures are required. Management does not expect this guidance to have a significant impact on the results of operations, financial condition, or cash flows of the Registrants.

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 subsidiary 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 six months ended June 30, 2022, and 2021 was as follows:

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CLECO POWER	2022 2ND QUARTER FORM 10-Q

	FOR THE THREE MONTHS ENDED JUNE 30,				FOR THE SIX MONTHS ENDED JUNE. 30,
(THOUSANDS)	2022		2021		2022		2021
Fixed payments	$	10,000	$	10,000	$	20,000	$	20,000
Variable payments	5,865		5,010		11,414		10,475
Amortization of deferred lease liability*	2,301		2,301		4,603		4,603
Total lease income	$	18,166	$	17,311	$	36,017	$	35,078

* 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 six months ended June 30, 2022, and 2021 was as follows:

	FOR THE THREE MONTHS ENDED JUNE 30, 2022
(THOUSANDS)	CLECO POWER			CLECO CAJUN			OTHER			ELIMINATIONS		TOTAL
Revenue from contracts with customers
Retail revenue
Residential (1)	$	131,813		$	—		$	—		$	—	$	131,813
Commercial (1)	84,336			—			—			—		84,336
Industrial (1)	50,188			—			—			—		50,188
Other retail (1)	4,297			—			—			—		4,297
Electric customer credits	(129)			—			—			—		(129)
Total retail revenue	270,505			—			—			—		270,505
Wholesale, net	91,934		(1)	126,089		(2)	(2,420)		(3)	—		215,603
Transmission, net	13,688			18,529			—			(2,136)		30,081
Other	4,998			—			—			—		4,998
Affiliate (4)	1,628			—			25,752			(27,380)		—
Total revenue from contracts with customers	382,753			144,618			23,332			(29,516)		521,187
Revenue unrelated to contracts with customers
Other	6,046		(5)	18,183		(6)	2			—		24,231
Total revenue unrelated to contracts with customers	6,046			18,183			2			—		24,231
Operating revenue, net	$	388,799		$	162,801		$	23,334		$	(29,516)	$	545,418

(1) Includes fuel recovery revenue.

(2) Includes $(3.6) million of amortization of intangible assets and liabilities related to Cleco Cajun’s wholesale power supply agreements.

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

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

(5) Realized gains associated with FTRs.

(6) Includes $15.9 million in lease revenue related to the Cottonwood Sale Leaseback and $2.3 million of deferred lease revenue amortization.

	FOR THE THREE MONTHS ENDED JUNE 30, 2021
(THOUSANDS)	CLECO POWER			CLECO CAJUN			OTHER			ELIMINATIONS		TOTAL
Revenue from contracts with customers
Retail revenue
Residential (1)	$	105,315		$	—		$	—		$	—	$	105,315
Commercial (1)	68,392			—			—			—		68,392
Industrial (1)	37,385			—			—			—		37,385
Other retail (1)	3,876			—			—			—		3,876
Electric customer credits	(19,054)			—			—			—		(19,054)
Total retail revenue	195,914			—			—			—		195,914
Wholesale, net	46,216		(1)	91,407		(2)	(2,420)		(3)	—		135,203
Transmission, net	13,313		(4)	13,573		(5)	—			(1,595)		25,291
Other	3,249			—			—			—		3,249
Affiliate (6)	1,224			—			26,120			(27,344)		—
Total revenue from contracts with customers	259,916			104,980			23,700			(28,939)		359,657
Revenue unrelated to contracts with customers
Other	1,763		(7)	17,326		(8)	1			2		19,092
Total revenue unrelated to contracts with customers	1,763			17,326			1			2		19,092
Operating revenue, net	$	261,679		$	122,306		$	23,701		$	(28,937)	$	378,749

(1) Includes fuel recovery revenue.

(2) Includes $(3.3) million of amortization of intangible assets and liabilities related to Cleco Cajun’s wholesale power supply agreements.

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

(4) Includes $0.3 million electric customer credits.

(5) Includes $0.2 million electric customer credits.

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

(7) Realized gains associated with FTRs.

(8) Includes $15.0 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 SIX MONTHS ENDED JUNE 30, 2022
(THOUSANDS)	CLECO POWER			CLECO CAJUN			OTHER			ELIMINATIONS		TOTAL
Revenue from contracts with customers
Retail revenue
Residential (1)	$	244,236		$	—		$	—		$	—	$	244,236
Commercial (1)	160,870			—			—			—		160,870
Industrial (1)	96,462			—			—			—		96,462
Other retail (1)	8,426			—			—			—		8,426
Electric customer credits	(265)			—			—			—		(265)
Total retail revenue	509,729			—			—			—		509,729
Wholesale, net	147,298		(1)	229,722		(2)	(4,840)		(3)	—		372,180
Transmission, net	27,580			36,272			—			(4,827)		59,025
Other	10,191			—			1			—		10,192
Affiliate (4)	3,087			—			53,145			(56,232)		—
Total revenue from contracts with customers	697,885			265,994			48,306			(61,059)		951,126
Revenue unrelated to contracts with customers
Other	7,419		(5)	36,052		(6)	2			(1)		43,472
Total revenue unrelated to contracts with customers	7,419			36,052			2			(1)		43,472
Operating revenue, net	$	705,304		$	302,046		$	48,308		$	(61,060)	$	994,598

(1) Includes fuel recovery revenue.

(2) Includes $(7.2) million of amortization of intangible assets and liabilities related to Cleco Cajun’s wholesale power supply agreements.

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

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

(5) Realized gains associated with FTRs.

(6) Includes $31.4 million in lease revenue related to the Cottonwood Sale Leaseback and $4.6 million of deferred lease revenue amortization.

	FOR THE SIX MONTHS ENDED JUNE 30, 2021
(THOUSANDS)	CLECO POWER			CLECO CAJUN			OTHER			ELIMINATIONS		TOTAL
Revenue from contracts with customers
Retail revenue
Residential (1)	$	200,396		$	—		$	—		$	—	$	200,396
Commercial (1)	131,418			—			—			—		131,418
Industrial (1)	74,051			—			—			—		74,051
Other retail (1)	7,446			—			—			—		7,446
Electric customer credits	(40,030)			—			—			—		(40,030)
Total retail revenue	373,281			—			—			—		373,281
Wholesale, net	107,938		(1)	192,914		(2)	(4,840)		(3)	—		296,012
Transmission, net	27,295		(4)	28,830		(5)	—			(3,535)		52,590
Other	7,891			—			—			—		7,891
Affiliate (6)	2,879			—			53,276			(56,155)		—
Total revenue from contracts with customers	519,284			221,744			48,436			(59,690)		729,774
Revenue unrelated to contracts with customers
Other	8,859		(7)	35,108		(8)	2			—		43,969
Total revenue unrelated to contracts with customers	8,859			35,108			2			—		43,969
Operating revenue, net	$	528,143		$	256,852		$	48,438		$	(59,690)	$	773,743

(1) Includes fuel recovery revenue.

(2) Includes $(6.4) million of amortization of intangible assets and liabilities related to Cleco Cajun’s wholesale power supply agreements.

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

(4) Includes $0.3 million electric customer credits.

(5) Includes $0.2 million electric customer credits.

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

(7) Realized gains associated with FTRs.

(8) Includes $30.5 million in lease revenue related to the Cottonwood Sale Leaseback and $4.6 million of deferred lease revenue amortization.

Cleco and Cleco Power have unsatisfied performance obligations under contracts with cooperatives and municipalities with remaining durations ranging between 2 and 12 years that primarily relate to stand-ready obligations as part of fixed capacity minimums. At June 30, 2022, Cleco and Cleco Power had $58.5 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.

Note 5 — Regulatory Assets and Liabilities

Cleco Power recognizes an asset for certain costs capitalized or deferred for recovery from customers and recognizes a liability for amounts expected to be returned to customers or collected for future expected costs. Cleco Power records these assets and liabilities 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;

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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 JUNE 30, 2022		AT DEC. 31, 2021
Regulatory assets
Acadia Unit 1 acquisition costs	$	1,860	$	1,913	17.5
Accumulated deferred fuel (1)	93,376		56,826		Various
Affordability study	12,405		13,094		9
AFUDC equity gross-up	65,025		66,574		Various	(2)
AMI deferred revenue requirement	1,772		2,045		3.75
AROs (1)(8)	16,148		15,141
Bayou Vista to Segura transmission project deferred revenue requirement	5,020		1,392		1
Coughlin transaction costs	830		845		27
COVID-19 executive order (8)	2,953		2,953
Deferred storm restoration costs - Hurricane Delta (6)	768		17,113
Deferred storm restoration costs - Hurricane Ida (7)	9,281		37,617
Deferred storm restoration costs - Hurricane Laura (6)	2,437		54,282
Deferred storm restoration costs - Hurricane Zeta (6)	148		3,296
Deferred storm restoration costs - Winter Storms Uri & Viola	—		1,912
Dolet Hills Power Station closure costs (8)	145,892		145,844
Energy efficiency	940		1,645		0.75
Financing costs (1)	6,641		6,826		Various	(3)
Interest costs	3,334		3,459		Various	(2)
Lignite Mine closure costs (8)	135,176		136,980
Madison Unit 3 property taxes (8)	12,993		8,362
Non-service cost of postretirement benefits	14,033		12,950		Various	(2)
Other assets	10,129		11,224		Various
Postretirement costs	111,607		117,773		Various	(4)
Production operations and maintenance expenses	9,757		11,058		Various	(5)
Rodemacher Unit 2 deferred costs (8)	9,780		6,931
St. Mary Clean Energy Center	5,219		6,089		3
Training costs	5,852		5,929		37.5
Tree trimming costs	7,735		9,092		2.75
Total regulatory assets	691,111		759,165
Regulatory liabilities
Deferred taxes, net	(65,857)		(95,544)		Various
Storm reserves	(117,658)		—
Total regulatory liabilities	(183,515)		(95,544)
Total regulatory assets, net	$	507,596	$	663,621
(1) Represents regulatory assets for past expenditures that were not earning a return on investment at June 30, 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 17 — “Storm Restoration and Cost Recovery.” (7) Currently not in a recovery period. The balance remaining represents amounts under a prudency review by the LPSC. (8) Currently not in a recovery period.

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

Cleco
(THOUSANDS)	AT JUNE 30, 2022		AT DEC. 31, 2021
Total Cleco Power regulatory assets, net	$	507,596	$	663,621
2016 Merger adjustments *
Fair value of long-term debt	108,449		112,150
Postretirement costs	12,430		13,424
Financing costs	7,076		7,248
Debt issuance costs	4,754		4,920
Total Cleco regulatory assets, net	$	640,305	$	801,363

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

Deferred Storm Restoration Costs

In 2020 and 2021, Cleco Power’s distribution and transmission systems sustained damage from four separate hurricanes, Hurricanes Laura, Delta, Zeta, and Ida, and two severe winter storms, Winter Storms Uri and Viola. Cleco Power established a separate regulatory asset to track and defer non-capital expenses associated with each corresponding storm, as approved by the LPSC.

On June 22, 2022, through Cleco Securitization I, Cleco Power completed a securitized financing of Storm Recovery Property, which included the previously mentioned storm restoration costs that were deferred as regulatory assets. In connection with that securitization financing, Cleco Securitization I used the net proceeds from its issuance of senior secured storm recovery bonds to purchase the Storm Recovery Property from Cleco Power. The costs remaining at June 30, 2022, for Hurricanes Laura, Delta, and Zeta are being recovered through the interim storm recovery rate and are expected to be fully recovered by September 1, 2022. The costs remaining at June 30, 2022, for Hurricane Ida are currently under a prudency review by the LPSC. Cleco Power is unable to determine the outcome or timing of such review. For more information on the storm securitization financing, see Note 17 — “Storm Securitization and Cost Recovery.”

Storm Reserves

On June 22, 2022, in conjunction with the storm securitization financing and pursuant to the financing order issued by the LPSC on April 1, 2022, newly funded storm reserves for future storm restoration costs and Hurricane Ida storm restoration costs were established. At June 30, 2022, Cleco Power had a balance of $102.3 million related to the storm reserve for future storm restoration costs. Upon securitization, Cleco Power withdrew $79.6 million from the LPSC-approved Hurricane Ida storm reserve which left a balance of $15.4 million at June 30, 2022. The current portion of the Hurricane Ida reserve of $9.3 million, which is reflected in Other current liabilities on Cleco’s and Cleco Power’s Condensed Consolidated Balance Sheets, represents those deferred storm costs recorded in the related Hurricane Ida regulatory asset that are currently under a prudency review by the LPSC.

Note 6 — Fair Value Accounting and Financial Instruments

The amounts reflected on Cleco’s and Cleco Power’s Condensed Consolidated Balance Sheets at June 30, 2022, and December 31, 2021, 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’s and Cleco Power’s financial instruments not measured at fair value on Cleco’s and Cleco Power’s Condensed Consolidated Balance Sheets:

Cleco
	AT JUNE 30, 2022				AT DEC. 31, 2021
(THOUSANDS)	CARRYING VALUE*		FAIR VALUE		CARRYING VALUE*		FAIR VALUE
Long-term debt	$	3,578,803	$	3,427,506	$	3,482,405	$	3,752,220

* The carrying value of long-term debt does not include deferred issuance costs of $17.5 million at
June 30, 2022, and $13.2 million at December 31, 2021.

Cleco Power
	AT JUNE 30, 2022				AT DEC. 31, 2021
(THOUSANDS)	CARRYING VALUE*		FAIR VALUE		CARRYING VALUE*		FAIR VALUE
Long-term debt	$	1,920,354	$	1,944,134	$	1,820,254	$	2,085,944

* The carrying value of long-term debt does not include deferred issuance costs of $13.0 million at
June 30, 2022, and $7.9 million at December 31, 2021.

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 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. Therefore, Cleco elects not to apply hedge accounting, as allowed by accounting guidance, to its commodity-related derivatives. 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 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 six months ended June 30, 2022, and the year ended December 31, 2021, Cleco did not experience any transfers into or out of Level 3 of the fair value hierarchy.

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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 JUNE 30, 2022		QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1)		SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2)		SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3)		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)
Asset description
Money market funds	$	227,618	$	227,618	$	—	$	—	$	145,033	$	145,033	$	—	$	—
FTRs	11,863		—		—		11,863		6,977		—		—		6,977
Natural gas derivatives*	140,247		—		140,247		—		87,464		—		87,464		—
Total assets	$	379,728	$	227,618	$	140,247	$	11,863	$	239,474	$	145,033	$	87,464	$	6,977
Liability description
FTRs	$	7,181	$	—	$	—	$	7,181	$	834	$	—	$	—	$	834
Total liabilities	$	7,181	$	—	$	—	$	7,181	$	834	$	—	$	—	$	834

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

Cleco Power
	FAIR VALUE MEASUREMENTS AT REPORTING DATE
(THOUSANDS)	AT JUNE 30, 2022		QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1)		SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2)		SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3)		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)
Asset description
Money market funds	$	149,897	$	149,897	$	—	$	—	$	82,411	$	82,411	$	—	$	—
FTRs	10,857		—		—		10,857		5,515		—		—		5,515
Total assets	$	160,754	$	149,897	$	—	$	10,857	$	87,926	$	82,411	$	—	$	5,515
Liability description
FTRs	$	719	$	—	$	—	$	719	$	597	$	—	$	—	$	597
Total liabilities	$	719	$	—	$	—	$	719	$	597	$	—	$	—	$	597

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 JUNE 30,				FOR THE SIX MONTHS ENDED JUNE 30,
(THOUSANDS)	2022		2021		2022		2021
Beginning balance	$	515	$	1,023	$	6,143	$	3,180
Unrealized (losses) gains*	(669)		(1,005)		(1,025)		15,155
Purchases	6,774		9,958		7,066		10,806
Settlements	(1,938)		(2,475)		(7,502)		(21,640)
Ending balance	$	4,682	$	7,501	$	4,682	$	7,501
* 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 JUNE 30,				FOR THE SIX MONTHS ENDED JUNE 30,
(THOUSANDS)	2022		2021		2022		2021
Beginning balance	$	567	$	1,088	$	4,918	$	3,216
Unrealized gains (losses)*	4,267		(402)		4,267		(402)
Purchases	6,577		7,768		6,869		8,616
Settlements	(1,273)		(2,464)		(5,916)		(5,440)
Ending balance	$	10,138	$	5,990	$	10,138	$	5,990
* Unrealized gains (losses) are reported through Accumulated deferred fuel on Cleco Power’s Condensed Consolidated Balance Sheet.

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CLECO POWER	2022 2ND QUARTER FORM 10-Q

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 June 30, 2022, and December 31, 2021:

Cleco
	FAIR VALUE				VALUATION TECHNIQUE	SIGNIFICANT UNOBSERVABLE INPUTS	FORWARD PRICE RANGE
(THOUSANDS, EXCEPT FORWARD PRICE RANGE)	ASSETS		LIABILITIES				LOW		HIGH
FTRs at June 30, 2022	$	11,863	$	7,181	RTO auction pricing	FTR price - per MWh	$	(14.97)	$	19.75
FTRs at Dec. 31, 2021	$	6,977	$	834	RTO auction pricing	FTR price - per MWh	$	(3.94)	$	9.25

Cleco Power
	FAIR VALUE				VALUATION TECHNIQUE	SIGNIFICANT UNOBSERVABLE INPUTS	FORWARD PRICE RANGE
(THOUSANDS, EXCEPT FORWARD PRICE RANGE)	ASSETS		LIABILITIES				LOW		HIGH
FTRs at June 30, 2022	$	10,857	$	719	RTO auction pricing	FTR price - per MWh	$	(6.61)	$	19.75
FTRs at Dec. 31, 2021	$	5,515	$	597	RTO auction pricing	FTR price - per MWh	$	(4.91)	$	9.25

Concentrations of Credit Risk

At June 30, 2022, 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 money market funds in cash and cash equivalents and restricted cash and cash equivalents as recorded on Cleco’s and Cleco Power’s Condensed Consolidated Balance Sheets at June 30, 2022, and December 31, 2021:

Cleco
(THOUSANDS)	AT JUNE 30, 2022		AT DEC. 31, 2021
Cash and cash equivalents	$	125,311	$	145,011
Non-current restricted cash and cash equivalents	$	102,307	$	22

Cleco Power
(THOUSANDS)	AT JUNE 30, 2022		AT DEC. 31, 2021
Cash and cash equivalents	$	47,611	$	82,411
Non-current restricted cash and cash equivalents	$	102,286	$	—

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 1 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. government 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.

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 enters into master agreements with counterparties that govern the risk of credit default and allow for collateralization above prenegotiated uncollateralized thresholds to help mitigate potential losses. Alternatively, 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, changes in the amounts counterparties owe to Cleco, and any prenegotiated unsecured thresholds agreed to in the master contract. 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. 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 June 30, 2022, and December 31, 2021:

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CLECO POWER	2022 2ND QUARTER FORM 10-Q

Cleco
	DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS
		AT JUNE 30, 2022
				GROSS AMOUNTS OFFSET ON THE BALANCE SHEET		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		CASH COLLATERAL		NET ASSET (LIABILITY) ON THE BALANCE SHEET		COLLATERAL		NET AMOUNT
Commodity-related contracts
FTRs
Current	Energy risk management assets	$	11,863	$	—	$	—	$	11,863	$	—	$	11,863
Current	Energy risk management liabilities	(7,181)		—		—		(7,181)		—		(7,181)
Natural gas derivatives
Current	Energy risk management assets	85,708		(2,497)		(23,524)		59,687		(62,184)		(2,497)
Non-current	Energy risk management assets	99,536		—		(18,976)		80,560		(44,308)		36,252
Current	Energy risk management liabilities	(2,497)		2,497		—		—		—		—
Commodity-related contracts, net		$	187,429	$	—	$	(42,500)	$	144,929	$	(106,492)	$	38,437

(1) Represents letters of credit by counterparties.

Cleco
	DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS
		AT DEC. 31, 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		NET ASSET (LIABILITY) ON THE BALANCE SHEET		COLLATERAL		NET AMOUNT
Commodity-related contracts
FTRs
Current	Energy risk management assets	$	6,977	$	—	$	6,977	$	—	$	6,977
Current	Energy risk management liabilities	(834)		—		(834)		—		(834)
Natural gas derivatives
Current	Energy risk management assets	37,061		(559)		36,502		(15,000)		21,502
Non-current	Energy risk management assets	50,962		—		50,962		—		50,962
Current	Energy risk management liabilities	(559)		559		—		—		—
Commodity-related contracts, net		$	93,607	$	—	$	93,607	$	(15,000)	$	78,607

(1) Represents letters of credit by counterparties.

Cleco Power
	DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS
(THOUSANDS)	BALANCE SHEET LINE ITEM	AT JUNE 30, 2022		AT DEC. 31, 2021
Commodity-related contracts
FTRs
Current	Energy risk management assets	$	10,857	$	5,515
Current	Energy risk management liabilities	(719)		(597)
Commodity-related contracts, net		$	10,138	$	4,918

At June 30, 2022, cash collateral received from counterparties and held by Cleco was $42.5 million, of which

$23.5 million was netted against the current portion of Energy risk management assets on Cleco’s Condensed Consolidated Balance Sheet and $19.0 million was netted against the non-current portion of Energy risk management assets on Cleco’s Condensed Consolidated Balance Sheet. At December 31, 2021, there was no cash collateral posted with or received from counterparties that was netted on Cleco’s Condensed Consolidated Balance Sheet.

The following tables present the effect of derivatives not designated as hedging instruments on Cleco’s and Cleco Power’s Condensed Consolidated Statements of Income for the three and six months ended June 30, 2022, and 2021:

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CLECO POWER	2022 2ND QUARTER FORM 10-Q

Cleco
	AMOUNT OF GAIN(LOSS) ON DERIVATIVES RECOGNIZED IN INCOME
		FOR THE THREE MONTHS ENDED JUNE 30,					FOR THE SIX MONTHS ENDED JUNE 30,
(THOUSANDS)	INCOME STATEMENT LINE ITEM	2022		2021			2022		2021
Commodity-related contracts
FTRs(1)	Electric operations	$	6,080	$	1,763		$	7,663	$	9,207
FTRs(1)	Purchased power	(11,689)		(3,168)		(2)	(9,966)		(8,972)		(2)
Natural gas derivatives	Fuel used for electric generation	37,416		51,683		(2)	165,888		57,897		(2)
Total		$	31,807	$	50,278		$	163,585	$	58,132

(1) For the three and six months ended June 30, 2022, unrealized gains associated with FTRs for Cleco Power of $4.3 million were reported through Accumulated deferred fuel on the balance sheet. For the three and six months ended June 30, 2021, unrealized losses associated with FTRs for Cleco Power of $0.4 million were reported through Accumulated deferred fuel on the balance sheet.

(2) Prior year balance has been revised to correct errors that were immaterial, both quantitatively and qualitatively, including incorrectly including parenthesis for natural gas derivatives for the three and six months ended June 30, 2021.

Cleco Power
	AMOUNT OF GAIN(LOSS) ON DERIVATIVES RECOGNIZED IN INCOME
		FOR THE THREE MONTHS ENDED JUNE 30,				FOR THE SIX MONTHS ENDED JUNE 30,
(THOUSANDS)	INCOME STATEMENT LINE ITEM	2022		2021		2022		2021
Commodity-related contracts
FTRs(1)	Electric operations	$	6,080	$	1,763	$	7,663	$	9,208
FTRs(1)	Purchased power	(1,846)		(1,233)		(3,083)		(8,414)
Total		$	4,234	$	530	$	4,580	$	794

(1) For the three and six months ended June 30, 2022, unrealized gains associated with FTRs of $4.3 million were reported through Accumulated deferred fuel on the balance sheet. For the three and six months ended June 30, 2021, unrealized losses associated with FTRs of $0.4 million were reported through Accumulated deferred fuel on the balance sheet.

The following tables present the volume of commodity-related derivative contracts outstanding at June 30, 2022, and December 31, 2021, for Cleco and Cleco Power:

Cleco
		TOTAL VOLUME OUTSTANDING
(THOUSAND)	UNIT OF MEASURE	AT JUNE 30, 2022	AT DEC. 31, 2021
Commodity-related contracts
FTRs	MWh	32,409	14,055
Natural gas derivatives	MMBtus	96,010	109,306

Cleco Power
		TOTAL VOLUME OUTSTANDING
(THOUSAND)	UNIT OF MEASURE	AT JUNE 30, 2022	AT DEC. 31, 2021
Commodity-related contracts
FTRs	MWh	19,852	8,899

Note 7 — Debt

At June 30, 2022, Cleco Power had $55.0 million of outstanding borrowings under its $300.0 million revolving credit agreement at an all-in interest rate of 2.89%. The borrowing costs under the facility currently are equal to LIBOR plus 1.25% or ABR plus 0.25%, plus commitment fees of 0.15%.

On June 22, 2022, Cleco Securitization I issued $425.0 million aggregate principal amount of senior secured storm recovery bonds. The storm recovery bonds were issued in two tranches. One tranche of $125.0 million aggregate principal amount was issued with an interest rate of 4.016% and an expected weighted average life of 4.79 years. A second tranche of $300.0 million aggregate principal amount was issued with an interest rate of 4.646% and an expected weighted average life of 15 years. The bonds are governed by an indenture between Cleco Securitization I and the indenture trustee. The indenture contains certain covenants that restrict

Cleco Securitization I’s ability to sell, transfer, convey, exchange, or otherwise dispose of its assets. At June 30, 2022, $3.2 million of this newly issued debt was included in long-term debt due within one year on Cleco’s and Cleco Power’s Condensed Consolidated Balance Sheets. For more information on the storm securitization financing, see Note 17 — “Storm Securitization and Cost Recovery.”

On June 23, 2022, following the closing of the storm recovery bonds, Cleco Power redeemed its $325.0 million floating rate senior notes issued in September 2021 at par.

In May 2022, Cleco Holdings’ $165.0 million senior notes due May 2023 became due within one year. This amount is reflected in long-term debt due within one year on Cleco’s Condensed Consolidated Balance Sheet at June 30, 2022.

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, 2021, management estimates that no contributions will be required until 2026, at which time $5.4 million of required pension contributions are expected. Cleco has not made, and does not expect to make, any contributions to the pension plan in 2022.

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’s and Cleco Power’s Condensed Consolidated Statements of Income. The components of net periodic pension and Other Benefits cost for the three and six months ended June 30, 2022, and 2021 were as follows:

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CLECO POWER	2022 2ND QUARTER FORM 10-Q

	PENSION BENEFITS				OTHER BENEFITS
	FOR THE THREE MONTHS ENDED JUNE 30,				FOR THE THREE MONTHS ENDED JUNE 30,
(THOUSANDS)	2022		2021		2022		2021
Components of periodic benefit costs
Service cost	$	2,143	$	2,730	$	551	$	595
Interest cost	4,960		4,719		371		323
Expected return on plan assets	(6,177)		(5,698)		—		—
Amortizations
Net loss	3,083		5,607		303		384
Net periodic benefit cost	$	4,009	$	7,358	$	1,225	$	1,302

	PENSION BENEFITS				OTHER BENEFITS
	FOR THE SIX MONTHS ENDED JUNE 30,				FOR THE SIX MONTHS ENDED JUNE 30,
(THOUSANDS)	2022		2021		2022		2021
Components of periodic benefit costs
Service cost	$	4,293	$	5,258	$	1,102	$	1,190
Interest cost	9,920		9,334		742		645
Expected return on plan assets	(12,354)		(11,400)		—		—
Amortizations
Net loss	6,168		10,369		605		770
Net periodic benefit cost	$	8,027	$	13,561	$	2,449	$	2,605

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 six months ended June 30, 2022, was $0.8 million and $1.6 million, respectively. The expense of the pension plan related to Cleco’s other subsidiaries for the three and six months ended June 30, 2021, was $0.9 million and $1.8 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 six months ended June 30, 2022, was $1.1 million and $2.2 million, respectively. The expense related to other benefits reflected in Cleco Power’s Condensed Consolidated Statements of Income for the three and six months ended June 30, 2021, was $1.2 million and $2.4 million, respectively. The current and non-current portions of the Other Benefits liability for Cleco and Cleco Power at June 30, 2022, and December 31, 2021, were as follows:

Cleco
(THOUSANDS)	AT JUNE 30, 2022		AT DEC. 31, 2021
Current	$	5,181	$	5,181
Non-current	$	49,210	$	50,093

Cleco Power
(THOUSANDS)	AT JUNE 30, 2022		AT DEC. 31, 2021
Current	$	4,432	$	4,432
Non-current	$	38,634	$	39,315

SERP

Certain Cleco officers are covered by SERP. Cleco does not fund the SERP liability, but instead pays for current benefits out

of cash available of the respective company of the employed officer. Because the SERP is a non-qualified plan, Cleco has purchased life insurance policies on certain SERP participants as a mechanism to provide a source of funding. These policies are held in a rabbi trust formed by Cleco Power. The rabbi trust is the named beneficiary of the life insurance policies and, therefore, receives the proceeds upon the death of the insured participants. The life insurance policies may be used to reimburse Cleco for benefits paid from general funds, pay the SERP participants’ death benefits, or pay future SERP payments. Market conditions could have a significant impact on the cash surrender value of these life insurance policies. 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. 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’s and Cleco Power’s Condensed Consolidated Statements of Income. The components of the net periodic benefit cost related to SERP for the three and six months ended June 30, 2022, and 2021 were as follows:

	FOR THE THREE MONTHS ENDED JUNE 30,				FOR THE SIX MONTHS ENDED JUNE 30,
(THOUSANDS)	2022		2021		2022		2021
Components of periodic benefit costs
Service cost	$	57	$	61	$	113	$	116
Interest cost	670		644		1,340		1,269
Amortizations
Prior period service credit	(54)		(55)		(107)		(107)
Net loss (gain)	262		(401)		524		613
Net periodic benefit cost	$	935	$	249	$	1,870	$	1,891

The expense related to SERP reflected on Cleco Power’s Condensed Consolidated Statements of Income for the three and six months ended June 30, 2022, was $0.1 million and $0.3 million, respectively. The expense related to SERP

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reflected on Cleco Power’s Condensed Consolidated Statements of Income for the three and six months ended June 30, 2021, was less than $0.1 million and $0.3 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 June 30, 2022, and December 31, 2021, were as follows:

Cleco
(THOUSANDS)	AT JUNE 30, 2022		AT DEC. 31, 2021
Current	$	4,654	$	4,654
Non-current	$	86,579	$	88,523

Cleco Power
(THOUSANDS)	AT JUNE 30, 2022		AT DEC. 31, 2021
Current	$	679	$	679
Non-current	$	12,667	$	12,909

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 six months ended June 30, 2022, and 2021 was as follows:

	FOR THE THREE MONTHS ENDED JUNE 30,				FOR THE SIX MONTHS ENDED JUNE 30,
(THOUSANDS)	2022		2021		2022		2021
401(k) Plan expense	$	1,831	$	2,120	$	4,422	$	4,880

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 six months ended June 30, 2022, and 2021 was as follows:

	FOR THE THREE MONTHS ENDED JUNE 30,				FOR THE SIX MONTHS ENDED JUNE 30,
(THOUSANDS)	2022		2021		2022		2021
401(k) Plan expense	$	847	$	946	$	2,169	$	2,326

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 six months ended June 30, 2022, and 2021:

Cleco
	FOR THE THREE MONTHS ENDED JUNE 30,				FOR THE SIX MONTHS ENDED JUNE 30,
	2022		2021		2022		2021
Effective tax rate	95.6	%	11.1	%	13.2	%	0.4	%

Cleco Power
	FOR THE THREE MONTHS ENDED JUNE 30,				FOR THE SIX MONTHS ENDED JUNE 30,
	2022		2021		2022		2021
Effective tax rate	5.5	%	24.6	%	4.0	%	(1.7)	%

For Cleco, the effective income tax rates for the three and six months ended June 30, 2022, were different than the federal statutory rate primarily due to an adjustment to record tax expense at the projected annual effective tax rate largely caused by mark-to-market gains on Cleco Cajun’s gas-related derivatives, the amortization of excess ADIT, the flow through of state tax benefits, permanent deductions, and state tax expense.

For Cleco Power, the effective income tax rates for the three and six months ended June 30, 2022, were different than the federal statutory rate primarily due to the adjustment to record tax expense at the projected annual effective tax rate, the amortization of excess ADIT, the flow through of state tax benefits, and state tax expense.

For Cleco and Cleco Power, the effective income tax rates for the three and six months ended June 30, 2021, were different than the federal statutory rate primarily due to the amortization of excess ADIT, adjustment to record tax expense at the projected annual effective tax rate, 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. For the three and six months ended June 30, 2022, and 2021, Cleco and Cleco Power had no interest expense related to uncertain tax positions. At June 30, 2022, and December 31, 2021, Cleco and Cleco Power had no liability for uncertain tax positions or interest payable related to uncertain tax positions.

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 and 2019, 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 subject to examination by the Louisiana Department of Revenue.

Cleco classifies income tax penalties as a component of other expense. For the three and six months ended June 30, 2022, and 2021, 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.

At June 30, 2022, Cleco and Cleco Power had $3.0 million and $1.8 million, respectively, deferred in employer payroll tax

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payments for the period March 27, 2020, through December 31, 2020, which will be paid by December 31, 2022.

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 June 30,
2022 (THOUSANDS)	CLECO POWER		CLECO CAJUN			TOTAL SEGMENTS
Revenue
Electric operations	$	368,614	$	126,089		$	494,703
Other operations	18,686		36,712			55,398
Affiliate revenue	1,628		—			1,628
Electric customer credits	(129)		—			(129)
Operating revenue, net	$	388,799	$	162,801		$	551,600
Net income (loss)	$	54,705	$	(932)		$	53,773
Add: Depreciation and amortization	44,299		23,219		(1)	67,518
Less: Interest income	1,035		176			1,211
Add: Interest charges	21,305		43			21,348
Add: Federal and state income tax expense (benefit)	3,214		(966)			2,248
EBITDA	$	122,488	$	21,188		$	143,676
(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.

2022 (THOUSANDS)	TOTAL SEGMENTS		OTHER			ELIMINATIONS		TOTAL
Revenue
Electric operations	$	494,703	$	(2,420)		$	—	$	492,283
Other operations	55,398		2			(2,136)		53,264
Affiliate revenue	1,628		25,752			(27,380)		—
Electric customer credits	(129)		—			—		(129)
Operating revenue, net	$	551,600	$	23,334		$	(29,516)	$	545,418
Depreciation and amortization	$	67,518	$	4,373	(1)	$	1	$	71,892
Interest income	$	1,211	$	53		$	(23)	$	1,241
Interest charges	$	21,348	$	15,081		$	(22)	$	36,407
Federal and state income tax expense (benefit)	$	2,248	$	27,280		$	(1)	$	29,527
Net income (loss)	$	53,773	$	(52,409)		$	(1)	$	1,363
(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.

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2021 (THOUSANDS)	CLECO POWER		CLECO CAJUN			TOTAL SEGMENTS
Revenue
Electric operations	$	262,948	$	91,407		$	354,355
Other operations	16,269		30,655			46,924
Affiliate revenue	1,224		—			1,224
Electric customer credits	(18,762)		244			(18,518)
Operating revenue, net	$	261,679	$	122,306		$	383,985
Net income	$	27,421	$	52,494		$	79,915
Add: Depreciation and amortization	40,933		12,339		(1)	53,272
Less: Interest income	825		3			828
Add: Interest charges	18,237		(180)			18,057
Add: Federal and state income tax expense	8,956		18,063			27,019
EBITDA	$	94,722	$	82,713		$	177,435
(1) Includes $3.3 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	$	354,355	$	(2,420)		$	1	$	351,936
Other operations	46,924		1			(1,595)		45,330
Affiliate revenue	1,224		26,120			(27,344)		—
Electric customer credits	(18,518)		—			1		(18,517)
Operating revenue, net	$	383,985	$	23,701		$	(28,937)	$	378,749
Depreciation and amortization	$	53,272	$	4,427	(1)	$	—	$	57,699
Interest income	$	828	$	14		$	(13)	$	829
Interest charges	$	18,057	$	15,248		$	(14)	$	33,291
Federal and state income tax expense (benefit)	$	27,019	$	(17,182)		$	—	$	9,837
Net income (loss)	$	79,915	$	(1,093)		$	—	$	78,822
(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 Six Months Ended June 30,
2022 (THOUSANDS)	CLECO POWER		CLECO CAJUN			TOTAL SEGMENTS
Revenue
Electric operations	$	664,711	$	229,722		$	894,433
Other operations	37,771		72,324			110,095
Affiliate revenue	3,087		—			3,087
Electric customer credits	(265)		—			(265)
Operating revenue, net	$	705,304	$	302,046		$	1,007,350
Net income	$	93,729	$	92,449		$	186,178
Add: Depreciation and amortization	89,538		46,398		(2)	135,936
Less: Interest income	1,775		188			1,963
Add: Interest charges	40,108		35			40,143
Add: Federal and state income tax expense	3,938		32,674			36,612
EBITDA	$	225,538	$	171,368		$	396,906
Additions to property, plant, and equipment	$	98,162	$	2,839		$	101,001
Equity investment in investees (1)	$	2,072	$	—		$	2,072
Goodwill (1)	$	1,490,797	$	—		$	1,490,797
Total segment assets (1)	$	6,934,909	$	1,143,090		$	8,077,999
(1) Balances as of June 30, 2022. (2) Includes $7.2 million of amortization of intangible assets and liabilities related to wholesale power supply agreements and $(4.6) million of deferred lease revenue amortization as a result of the Cleco Cajun Transaction.

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2022 (THOUSANDS)	TOTAL SEGMENTS		OTHER			ELIMINATIONS		TOTAL
Revenue
Electric operations	$	894,433	$	(4,840)		$	(1)	$	889,592
Other operations	110,095		3			(4,827)		105,271
Affiliate revenue	3,087		53,145			(56,232)		—
Electric customer credits	(265)		—			—		(265)
Operating revenue, net	$	1,007,350	$	48,308		$	(61,060)	$	994,598
Depreciation and amortization	$	135,936	$	8,752	(2)	$	1	$	144,689
Interest income	$	1,963	$	83		$	(49)	$	1,997
Interest charges	$	40,143	$	29,834		$	(50)	$	69,927
Federal and state income tax expense (benefit)	$	36,612	$	(12,672)		$	—	$	23,940
Net income (loss)	$	186,178	$	(29,070)		$	(1)	$	157,107
Additions to property, plant, and equipment	$	101,001	$	672		$	—	$	101,673
Equity investment in investees (1)	$	2,072	$	(185,901)		$	185,901	$	2,072
Goodwill (1)	$	1,490,797	$	—		$	—	$	1,490,797
Total segment assets (1)	$	8,077,999	$	373,804		$	10,518	$	8,462,321
(1) Balances as of June 30, 2022. (2) Includes $4.8 million of amortization of intangible assets related to Cleco Power’s wholesale power supply agreements as a result of the 2016 Merger.

2021 (THOUSANDS)	CLECO POWER		CLECO CAJUN			TOTAL SEGMENTS
Revenue
Electric operations	$	530,107	$	192,914		$	723,021
Other operations	34,895		63,694			98,589
Affiliate revenue	2,879		—			2,879
Electric customer credits	(39,738)		244			(39,494)
Operating revenue, net	$	528,143	$	256,852		$	784,995
Net income	$	45,846	$	66,975		$	112,821
Add: Depreciation and amortization	83,009		23,991		(2)	107,000
Less: Interest income	1,468		6			1,474
Add: Interest charges	36,883		(332)			36,551
Add: Federal and state income tax (benefit) expense	(767)		22,673			21,906
EBITDA	$	163,503	$	113,301		$	276,804
Additions to property, plant, and equipment	$	132,194	$	4,882		$	137,076
Equity investment in investees (1)	$	2,072	$	—		$	2,072
Goodwill (1)	$	1,490,797	$	—		$	1,490,797
Total segment assets (1)	$	6,620,298	$	1,104,090		$	7,724,388
(1) Balances as of December 31, 2021. (2) Includes $6.4 million of amortization of intangible assets and liabilities related to wholesale power supply agreements and $(4.6) million deferred lease revenue amortization as a result of the Cleco Cajun Transaction.

2021 (THOUSANDS)	TOTAL SEGMENTS		OTHER			ELIMINATIONS		TOTAL
Revenue
Electric operations	$	723,021	$	(4,840)		$	—	$	718,181
Other operations	98,589		2			(3,535)		95,056
Affiliate revenue	2,879		53,276			(56,155)		—
Electric customer credits	(39,494)		—			—		(39,494)
Operating revenue, net	$	784,995	$	48,438		$	(59,690)	$	773,743
Depreciation and amortization	$	107,000	$	8,862	(2)	$	—	$	115,862
Interest income	$	1,474	$	57		$	(56)	$	1,475
Interest charges	$	36,551	$	30,687		$	(55)	$	67,183
Federal and state income tax expense (benefit)	$	21,906	$	(21,490)		$	—	$	416
Net income (loss)	$	112,821	$	(13,672)		$	—	$	99,149
Additions to property, plant, and equipment	$	137,076	$	1,440		$	—	$	138,516
Equity investment in investees (1)	$	2,072	$	(46,901)		$	46,901	$	2,072
Goodwill (1)	$	1,490,797	$	—		$	—	$	1,490,797
Total segment assets (1)	$	7,724,388	$	619,101		$	(218,471)	$	8,125,018
(1) Balances as of December 31, 2021. (2) Includes $4.8 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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	FOR THE THREE MONTHS ENDED JUNE 30,				FOR THE SIX MONTHS ENDED JUNE 30,
(THOUSANDS)	2022		2021		2022		2021
Net income	$	1,363	$	78,822	$	157,107	$	99,149
Add: Depreciation and amortization	71,892		57,699		144,689		115,862
Less: Interest income	1,241		829		1,997		1,475
Add: Interest charges	36,407		33,291		69,927		67,183
Add: Federal and state income tax expense	29,527		9,837		23,940		416
Add: Other corporate costs and noncash items (1)	5,728		(1,385)		3,240		(4,331)
Total segment EBITDA	$	143,676	$	177,435	$	396,906	$	276,804
(1) Adjustments made for Other and Elimination totals not allocated to total segment EBITDA.

Note 11 — Regulation and Rates

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

(THOUSANDS)	AT JUN. 30, 2022		AT DEC. 31, 2021
Cleco Katrina/Rita storm recovery charges	$	1,614	$	1,611
FRP	$	1,230	$	1,229
Site-specific industrial customer	$	1,125	$	833
TCJA	$	2,057	$	2,057

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 June 30, 2022, 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. On July 27, 2022, the LPSC approved this amount to be refunded to Cleco Power’s retail customers in September 2022.

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. On June 16, 2021, the LPSC approved Cleco Power’s new FRP. 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. A monitoring report will be filed on or before October 31, 2022, for the 12 months ending June 30, 2022. Cleco Power’s next base rate case is expected to be filed with the LPSC on or before March 31, 2023.

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 retail rate plan. At June 30, 2022, 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 base rate case.

In 2020 and as a result of the delay in the rate case, the LPSC approved Cleco Power’s extension of 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 June 30, 2021. 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 June 30, 2022, Cleco Power had $2.1 million accrued for the remaining balance of federal tax-related benefits from the TCJA.

On June 16, 2021, the LPSC approved Cleco Power’s retail rate plan which includes the settlement of the TCJA protected and unprotected excess ADIT. Effective July 1, 2021, all retail customers continued 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 June 30, 2022, Cleco Power had $237.2 million accrued for the excess ADIT, of which $43.2 million is reflected in current regulatory liabilities.

SSR

In April 2017, MISO designated Teche Unit 3 as an SSR unit until such time that an appropriate alternative solution could be implemented to mitigate reliability issues. While operating as an SSR unit, Cleco Power received monthly payments that

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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 filed an attachment Y with MISO requesting retirement of Teche Unit 3, barring any violations of specific applicable reliability standards. In December 2021, Cleco Power filed notice with the LPSC and MISO to suspend the retirement of Teche Unit 3. On March 15, 2022, Cleco Power refunded to MISO $4.3 million for capital expenditures paid for by third parties while operating under the SSR agreement.

Note 12 — Variable Interest Entities

Cleco Securitization I

Cleco Securitization I is a special-purpose, wholly owned subsidiary of Cleco Power that was formed for the purpose of issuing storm recovery bonds to finance the securitization of Storm Recovery Property at Cleco Power. On June 22, 2022, the securitized financing was complete. Cleco Securitization I’s assets cannot be used to settle Cleco Power’s obligations and the holders of the storm recovery bonds have no recourse against Cleco Power. For more information about the securitization financing, see Note 17 – “Storm Securitization and Cost Recovery.”

Because Cleco Securitization I’s equity at risk is less than 1% of its total assets, it is considered to be a variable interest entity. Through its equity ownership interest and role as servicer, Cleco Power has the power to direct the most significant financial and operating activities of Cleco Securitization I, including billing, collections, and remittance of retail customer cash receipts to enable Cleco Securitization I to service the principal and interest payments due under the storm recovery bonds. Cleco Power also has the obligation to absorb losses up to its equity investment and rights to receive returns from Cleco Securitization I. Therefore, management has determined that Cleco Power is the primary beneficiary of Cleco Securitization I, and as a result, Cleco Securitization I is included in the consolidated financial statements of Cleco Power. No gain or loss was recognized upon initial consolidation.

The following table summarizes the impact of Cleco Securitization I on Cleco’s and Cleco Power’s Condensed Consolidated Balance Sheets:

(THOUSANDS)	AT JUNE 30, 2022
Restricted cash - current	$	4,246
Intangible asset - securitization	$	415,946
Long-term debt due within one year	$	3,204
Interest accrued	$	474
Long-term debt, net	$	414,871
Member’s equity	$	1,643

Oxbow

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’s 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’s 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 June 30, 2022, consisted of its equity investment of $2.1 million.

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

INCEPTION TO DATE (THOUSANDS)	AT JUNE 30, 2022		AT DEC. 31, 2021
Purchase price	$	12,873	$	12,873
Cash contributions	6,399		6,399
Distributions	(17,200)		(17,200)
Total equity investment in investee	$	2,072	$	2,072

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 JUNE 30, 2022		AT DEC. 31, 2021
Oxbow’s net assets/liabilities	$	4,145	$	4,145
Cleco Power’s 50% equity	$	2,072	$	2,072
Cleco Power’s maximum exposure to loss	$	2,072	$	2,072

The following table contains summarized financial information for Oxbow:

	FOR THE THREE MONTHS ENDED JUNE 30,				FOR THE SIX MONTHS ENDED JUNE 30,
(THOUSANDS)	2022		2021		2022		2021
Operating revenue	$	85	$	1,627	$	151	$	3,626
Operating expenses	85		1,627		151		3,626
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 billed Cleco Power its proportionate share of incurred lignite extraction and associated mining-related costs. Oxbow billed Cleco Power its proportionate share of incurred costs related to mineral rights and land leases. On October 6, 2020, Cleco Power and SWEPCO made a joint filing with the LPSC seeking authorization to close the Oxbow mine. At December 31, 2021, the Dolet Hills Power Station was retired, and all of Cleco Power’s proportionate share of lignite-related costs had been billed by DHLC and Oxbow. 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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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 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.

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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 (the Bunkie Project). According to the petition filed by Gulf Coast in the 12th Judicial District Court for Avoyelles Parish, Louisiana, 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 12th Judicial District Court denied Cleco’s exception in December 2015, after considering briefs and arguments. In January 2016, Cleco appealed the 12th Judicial 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 12th Judicial 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 12th Judicial District Court lifted the stay at the request of Gulf Coast. The parties are currently participating in discovery.

Diversified Lands loaned $2.0 million to Gulf Coast for the Bunkie Project. The loan was secured by a mortgage on the Bunkie Project site. Diversified Lands foreclosed on the Bunkie property in February 2020 and has also asserted claims personally against the former owner of Gulf Coast. These claims are based on contracts and credit documents executed by Gulf Coast, the obligations and performance of which were personally guaranteed by the former owner of Gulf Coast. Diversified Lands is seeking recovery of the indebtedness still owed by Gulf Coast to Diversified Lands following the February 2020 foreclosure, which action has been consolidated with the litigation filed by Gulf Coast in the 12th Judicial District Court for Avoyelles Parish, Louisiana.

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 Corporation 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 appealed this decision.

On May 17, 2022, the Court of Appeal, 1st Circuit, ruled in favor of Cleco and affirmed the decision of the 16th Judicial District Court for St. Mary Parish with respect to Cleco. However, the 1st Circuit Court reversed the 16th Judicial District Court for St. Mary Parish’s decision dismissing Cabot Corporation from the St. Mary Parish case. All parties filed applications for rehearing, which were denied on June 29, 2022.

The Rapides Parish case remains stayed until the stay is lifted by further order of the Rapides Parish Court.

LPSC Audits and Reviews

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. On January 12, 2022, Cleco Power received a draft audit report from the LPSC indicating no material findings. Approval

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of the draft report is expected in September 2022. 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 several data requests. Management is unable to determine the outcome or completion of the audit.

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. 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 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, 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 order specifically directed the EPA to consider issuing a proposed rule to suspend, revise, or rescind the rule. The EPA determined the most environmentally protective course is to implement the rules in the executive

order. On February 9, 2022, the EPA published in the Federal Register a proposed rule to revoke the agency’s May 2020 finding with respect to whether it is appropriate and necessary to regulate coal and oil-fired generating units under MATS, but the EPA has not yet acted on a review of the risk and technology determination from the May 2020 rule. 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.

Prudency Reviews

Lignite Mine Closure Costs

Cleco Power is seeking recovery for deferred fuel and other mine-related closure costs. Recovery of these costs is subject to a prudency review by the LPSC, which is currently in progress. Cleco Power believes these costs are prudent and recoverable. However, initial testimony by the LPSC Staff advisors filed in August 2022 indicates disagreement with the prudency of these incurred costs. Due to the nature and timing of the regulatory process, Cleco Power is currently unable to determine if any portion of the incurred costs will be disallowed for recovery.

St. Mary Clean Energy Center

In August 2019, the St. Mary Clean Energy Center was placed in service. The St. Mary Clean Energy Center is a partnership with Cabot Corporation, whereby Cleco Power generates power through waste heat recovered from Cabot Corporation’s carbon black manufacturing process. The planning and execution costs incurred to construct this facility are currently being recovered through Cleco Power’s base rates, which are subject to a prudency review by the LPSC. Cleco Power believes these costs are prudent and recoverable. However, initial testimony by the LPSC Staff advisors filed in May 2022 indicates disagreement with the prudency of a portion of the construction costs. Cleco Power has filed responses to the initial testimony related to this review. Due to the nature and timing of the regulatory process, Cleco Power is currently unable to determine if any portion of these costs will be disallowed for recovery.

South Central Generating

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 June 30, 2022, 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

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excess of amounts currently accrued. Management regularly analyzes current information and, as of June 30, 2022, believes the probable and reasonably estimable liabilities based on the eventual disposition of these matters are $8.2 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’s and Cleco Power’s Condensed Consolidated Balance Sheets because management has determined that Cleco’s 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 as a result of the transfer of Coughlin to Cleco Power. The maximum amount of the potential payment to Cleco Power and Cleco Holdings, 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 projected to be paid would be based on the forecasted loan and lease obligations to be incurred by DHLC, primarily for the reclamation of land used in DHLC’s mining operations prior to its termination of such operations or in support of such mining operations, and the fulfillment of DHLC’s mine closing and environmental obligations under its mining plan. As of June 30, 2022, Cleco Power does not expect any payments to be made under this guarantee. Cleco Power has the right to dispute the incurrence of such loan and lease obligations before their incurrence but cannot unreasonably withhold approval thereof. The Amended Lignite Mining Agreement does not affect the amount the Registrants can borrow under their credit facilities.

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 June 30, 2020, all lignite reserves intended to be extracted from the mines 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 costs in fuel and related ratemaking treatment. For more information on the joint filing, see “— Risks and Uncertainties.”

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.

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 CCR 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, in August 2020, the EPA published a final rule in the Federal Register that would set deadlines for costly modifications including retrofitting of clay-lined impoundments with compliant liners or closure of the impoundments. In November 2020, Cleco submitted demonstrations to the EPA specifying its intended course of action for the ash disposal facilities at Rodemacher Unit 2, Dolet Hills Power Station, and Big Cajun II in order to comply with the final CCR Rule. During 2021, additional information was submitted to the Louisiana Department of Environmental Quality to revise and update Cleco Power’s compliance strategy. On January 11, 2022, Cleco Power and Cleco Cajun

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received communication from the EPA that the demonstrations have been deemed complete. However, the demonstrations are still subject to EPA approval based on pending technical reviews. At June 30, 2022, Cleco and Cleco Power had AROs of $74.6 million and $23.1 million, respectively. At December 31, 2021, Cleco and Cleco Power had AROs of $74.3 million and $23.0 million, respectively.

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 June 30, 2022, Cleco Cajun had indemnification assets totaling $22.5 million. The current portion of the indemnification asset of $1.1 million is reflected in Other current assets and the non-current portion of $21.4 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 fluctuate. Cleco Power and Cleco Cajun use FTRs to mitigate transmission congestion price risks. Recovery of these costs included in Cleco Power’s FAC is subject to, and may be disallowed as part of, a prudency review or a periodic fuel audit conducted by the LPSC.

The Dolet Hills Power Station was retired on December 31, 2021. On January 31, 2022, Cleco Power filed an application with the LPSC requesting recovery of stranded and decommissioning costs associated with the retirement of the Dolet Hills Power Station. On June 3, 2022, the Louisiana Electric Utility Energy Transition Securitization Act was passed into law. Through authorization of an LPSC financing order, this law enables Louisiana electric utilities to use securitization financing for certain energy transition costs, including mine closure costs and stranded costs. Such a securitization would create a contract right constituting incorporeal movable property of the right to bill and collect from Louisiana customers the costs of securitization.

At June 30, 2022, Cleco Power had $145.9 million deferred as a regulatory asset for stranded costs related to the Dolet Hills Power Station retirement. These costs are currently under a prudency review by the LPSC. Pending the outcome of the prudency review and under the terms of this new law, Cleco Power intends to seek a financing order in the first quarter of 2023 to securitize these stranded Dolet Hills Power Station closure costs.

On October 6, 2020, Cleco Power and SWEPCO made a joint filing with the LPSC seeking authorization to close the Oxbow mine. This filing also requested to include and defer certain accelerated mine closing costs in fuel and related rate-making treatment. Cleco Power has responded to several data requests related to the joint filing.

The expected early closure of the mines resulted in increased lignite costs. 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 June 30, 2022, Cleco Power had a regulatory asset of $135.2 million for deferred fuel and mine-related closure costs, which was included in the application filed on January 31, 2022. These costs are also under a prudency review by the LPSC. Pending the outcome of the prudency review and under the terms of the new securitization law mentioned above, Cleco Power intends to include the final costs in its filing for securitization. Cleco Power expects to make this filing in the first quarter of 2023. For more information on this prudency review, see “— Litigation — LPSC Audits and Reviews — Prudency Reviews — Lignite Mine Closure Costs.”

Note 14 — Affiliate Transactions

At June 30, 2022, Cleco Holdings had an affiliate receivable of $6.9 million, primarily for estimated income taxes and franchise taxes paid on behalf of Cleco Group. At December 31, 2021, Cleco Holdings had an affiliate receivable of $3.0 million primarily for franchise taxes paid on behalf of Cleco Group. At June 30, 2022, and December 31, 2021, Cleco Holdings had an affiliate payable of $10.6 million and $51.3 million, respectively, 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 JUNE 30, 2022				AT DEC. 31, 2021
(THOUSANDS)	ACCOUNTS RECEIVABLE		ACCOUNTS PAYABLE		ACCOUNTS RECEIVABLE		ACCOUNTS PAYABLE
Cleco Holdings	$	207	$	285	$	10,347	$	59,627
Support Group	1,702		10,006		2,473		10,038
Cleco Cajun	1,300		92		792		64
Total	$	3,209	$	10,383	$	13,612	$	69,729

Of the affiliate payable balance at December 31, 2021, Cleco Power had $59.4 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. For more information on Cleco Power’s variable interest in Oxbow, see Note 12 — “Variable Interest Entities.”

Note 15 — Intangible Assets and Liabilities

Securitized Intangible

On June 22, 2022, Cleco Securitization I acquired the Storm Recovery Property from Cleco Power in the amount of

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$415.9 million. The Storm Recovery Property is classified as a securitized intangible asset on Cleco’s and Cleco Power’s Condensed Consolidated Balance Sheets. This securitized intangible asset will be amortized over the estimated periods needed to collect the required amounts from Cleco Power’s customers to service Cleco Securitization I’s storm recovery bonds, currently estimated through September 2044. There was no amortization during the current period because collections from Cleco Power’s customers have not commenced. Collections will begin after the new storm surcharge becomes effective on September 1, 2022. At the end of its life, this securitized intangible asset will have no residual value. For additional information on Cleco Power’s storm costs and the securitization financing, see Note 5 — “Regulatory Assets and Liabilities,” Note 7 — “Debt,” and Note 17 — “Storm Securitization and Cost Recovery.”

Other Intangibles

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 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.

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 table presents Cleco’s amortization of other intangible assets and liabilities included in its Condensed Consolidated Income Statements:

Cleco
	FOR THE THREE MONTHS ENDED JUNE 30,				FOR THE SIX MONTHS ENDED JUNE 30,
(THOUSANDS)	2022		2021		2022		2021
Intangible assets
Trade name	$	—	$	64	$	—	$	128
Power supply agreements	$	6,400	$	6,400	$	12,800	$	12,800
Intangible liabilities
LTSA	$	871	$	871	$	1,742	$	1,742
Power supply agreements	$	389	$	718	$	778	$	1,600

The following table summarizes the balance of other intangible assets and liabilities subject to amortization for Cleco included in its Condensed Consolidated Balance Sheets:

Cleco
(THOUSANDS)	AT JUNE 30, 2022		AT DEC. 31, 2021
Intangible assets
Power supply agreements	$	184,004	$	184,004
Total intangible assets carrying amount	184,004		184,004
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		145,704
Accumulated amortization	(92,745)		(82,466)
Net intangible assets subject to amortization	$	52,959	$	63,238

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 JUNE 30, 2022		FOR THE SIX MONTHS ENDED JUNE 30, 2022
(THOUSANDS)	POSTRETIREMENT BENEFIT NET LOSS
Balance, beginning of period	$	(23,615)	$	(23,629)
Amounts reclassified from AOCI
Amortization of postretirement benefit net loss	7		21
Balance, June 30, 2022	$	(23,608)	$	(23,608)

	FOR THE THREE MONTHS ENDED JUNE 30, 2021		FOR THE SIX MONTHS ENDED JUNE 30, 2021
(THOUSANDS)	POSTRETIREMENT BENEFIT NET LOSS
Balance, beginning of period	$	(25,168)	$	(25,796)
Amounts reclassified from AOCI
Amortization of postretirement benefit net (gain) loss	(420)		208
Balance, June 30, 2021	$	(25,588)	$	(25,588)

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Cleco Power
	FOR THE THREE MONTHS ENDED JUNE 30, 2022						FOR THE SIX MONTHS ENDED JUNE 30, 2022
(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	$	(12,579)	$	(5,235)	$	(17,814)	$	(12,885)	$	(5,298)	$	(18,183)
Amounts reclassified from AOCI
Amortization of postretirement benefit net loss	307		—		307		613		—		613
Reclassification of net loss to interest charges	—		63		63		—		126		126
Balances, June 30, 2022	$	(12,272)	$	(5,172)	$	(17,444)	$	(12,272)	$	(5,172)	$	(17,444)

	FOR THE THREE MONTHS ENDED JUNE 30, 2021						FOR THE SIX MONTHS ENDED JUNE 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	$	(18,681)	$	(5,550)	$	(24,231)	$	(19,139)	$	(5,614)	$	(24,753)
Amounts reclassified from AOCI
Amortization of postretirement benefit net loss	287		—		287		745		—		745
Reclassification of net loss to interest charges	—		64		64		—		128		128
Balances, June 30, 2021	$	(18,394)	$	(5,486)	$	(23,880)	$	(18,394)	$	(5,486)	$	(23,880)

Note 17 — Storm Securitization and Cost Recovery

In 2020 and 2021, Cleco Power’s distribution and transmission systems sustained damage from four separate hurricanes, Hurricanes Laura, Delta, Zeta, and Ida, and two severe winter storms, Winter Storms Uri and Viola. Cleco Power’s total restoration costs related to the hurricanes and winter storms totaled approximately $342.7 million. The damage to equipment from the storms required replacement, as well as repair of existing assets. As a result, approximately $211.1 million of the total restoration costs were capitalized on Cleco Power’s balance sheet. Cleco Power also had regulatory assets totaling approximately $124.3 million for non-capital expenses related to these storms, as allowed by the LPSC. There was also $7.3 million for storm restoration costs related to wholesale operations and maintenance that was expensed on Cleco’s and Cleco Power’s Condensed Consolidated Income Statements in the period the costs were incurred.

On March 30, 2022, the LPSC Staff approved an uncontested stipulated settlement agreement filed by the LPSC Staff and Cleco Power allowing securitization of $424.1 million of Storm Recovery Property. This included:

•the balance of storm costs of $220.1 million, after adjustments and collections through rates for interim storm recovery, for Hurricanes Laura, Delta, and Zeta and Winter Storms Uri and Viola;

•$95.0 million for a reserve for Hurricane Ida storm costs;

•$100.0 million for a reserve to cover future storm costs; and

•$9.0 million for estimated upfront securitization costs and ongoing costs.

On April 1, 2022, the LPSC issued the financing order authorizing Cleco Power to issue storm recovery bonds in the aggregate principal amount of up to $425.0 million. On June 22, 2022, Cleco Power completed a securitized financing of the Storm Recovery Property through Cleco Securitization I. Cleco Securitization I used the net proceeds from its issuance of $425.0 million aggregate principal amount of senior secured storm recovery bonds to purchase the Storm Recovery Property from Cleco Power, pay for debt issuance costs, and reimburse Cleco Power for upfront securitization costs paid by Cleco Power on behalf of Cleco Securitization I. Cleco Power

utilized the proceeds received from Cleco Securitization I to fund reserves for storm restoration costs and redeem its $325.0 million floating rate notes issued in September 2021. For more information about the storm recovery bonds, see Note 7 — “Debt.” For more information about the storm reserves and regulatory assets associated with the storms, see Note 5 — “Regulatory Assets and Liabilities.” For more information about the cash restricted for the storm reserves, see Note 1 — “Summary of Significant Accounting Policies — Restricted Cash and Cash Equivalents.”

On June 1, 2021, Cleco Power began collecting through rates $16.0 million annually for interim storm recovery costs associated with Hurricanes Laura, Delta, and Zeta. The interim storm rate recovery will continue until the new storm surcharge becomes effective on September 1, 2022.

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

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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, 2021, and Cleco’s 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 six months ended June 30, 2022, and 2021.

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 nine generating units with a total rated capacity of 3,035 MW and serves approximately 291,000 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 a mixture of electric cooperatives, municipal bodies, a utility, and a non-profit corporation.

Significant Events

Securitization

Storm Securitization

During 2020 and 2021, Cleco Power’s distribution and transmission systems sustained damage from four separate hurricanes, Hurricanes Laura, Delta, Zeta, and Ida, and two severe winter storms, Winter Storms Uri and Viola. The damage to equipment from the storms required replacement, as well as repair of existing assets.

On March 30, 2022, the LPSC approved an uncontested stipulated settlement agreement filed by the LPSC Staff and Cleco Power relating to securitization of these storm costs. On April 1, 2022, the LPSC issued the financing order authorizing Cleco Power to issue storm recovery bonds in the aggregate principal amount of up to $425.0 million. On June 22, 2022, Cleco Power completed a securitized financing of the deferred storm costs through Cleco Securitization I. For more information on the storm securitization financing, see Item 1, “Notes to the Unaudited Condensed Consolidated Financial Statements — Note 17 — Storm Securitization and Cost Recovery.”

Dolet Hills Securitization

On October 6, 2020, Cleco Power and SWEPCO made a joint filing with the LPSC seeking authorization to close the Oxbow mine. At December 31, 2021, the Dolet Hills Power Station was

retired, and all of Cleco Power’s proportionate share of lignite-related costs had been billed by DHLC and Oxbow. On January 31, 2022, Cleco Power filed an application with the LPSC requesting recovery of stranded and decommissioning costs associated with the retirement of the Dolet Hills Power Station as well as deferred fuel and other costs associated with the closure of the Oxbow mine. These costs are currently under a prudency review by the LPSC. For more information on the prudency review of the deferred fuel and other mine-related closure costs, see Item 1, “Notes to the Unaudited Condensed Consolidated Financial Statements — Note 13 — Litigation, Other Commitments and Contingencies, and Disclosures about Guarantees — LPSC Audits and Reviews — Prudency Reviews — Lignite Mine Closure Costs.”

On June 3, 2022, the Louisiana Electric Utility Energy Transition Securitization Act was passed into law. Through authorization of an LPSC financing order, this law enables Louisiana electric utilities to use securitization financing for certain energy transition costs, including mine closure costs and stranded costs. Such a securitization would create a contract right constituting incorporeal movable property of the right to bill and collect from Louisiana customers the costs of securitization. Pending the outcome of the prudency review and under the terms of the new law, Cleco Power intends to seek a financing order to securitize the unrecovered Dolet Hills Power Station closure costs and Oxbow mine closure costs in the first quarter of 2023. For more information on the retirement of the Dolet Hills Power Station and the closure of the Oxbow mine, see Item 1, “Notes to the Unaudited Condensed Consolidated Financial Statements — Note 13 — Litigation, Other Commitments and Contingencies, and Disclosures about Guarantees — Risks and Uncertainties.”

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.

On December 4, 2020, Cleco Power made a filing with the LPSC requesting the recovery of expenses incurred as a result of an LPSC executive order, issued in response to the COVID-19 pandemic, prohibiting the disconnection of utilities for non-payment, as well as the lost revenue associated with the disconnection fees and incremental costs. Cleco Power anticipates approval of the recovery of these expenses in the fourth quarter of 2022. At June 30, 2022, Cleco Power had a regulatory asset of $3.0 million for expenses incurred.

Cleco has implemented certain measures that it believes will provide financial flexibility and help maintain its liquidity. Cleco is working with its suppliers to mitigate the pandemic stimulated impacts to its supply chain. Cleco will continue to monitor developments affecting its workforce, customers, and suppliers and take additional precautions as warranted. Cleco continues to assess the COVID-19 situation and cannot predict the full impact that COVID-19, or any significant related disruptions, will have on its business, cash flows, liquidity,

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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 — Pandemics, Epidemics, or Other Outbreaks” in the Registrants’ Combined Annual Report on Form 10-K for the fiscal year ended December 31, 2021.

Future Tax Reform

On August 7, 2022, the U.S. Senate passed the Inflation Reduction Act of 2022 (IRA). The IRA seeks to lower gasoline and electricity prices, increase energy security, and help consumers afford emissions-cutting technologies. In addition, the IRA would provide tax credits for clean electricity sources and energy storage, as well as create programs to enable states and electric utilities to transition to clean power. There are several tax and renewables provisions in this legislation that could have a material effect on the results of operations, financial condition, or cash flows of the Registrants. Management continues to monitor the legislative status of the IRA and any potential impact it could have on the Registrants.

ESG Goals

Cleco is accelerating its efforts to protect the environment, manage social relationships, govern responsibly, and ensure accountability. To protect the environment, Cleco aims to increase electrification initiatives and reduce GHG emissions by incorporating renewable energy resources into its generating fleet, as it replaces coal-fired generation units retired after serving their useful lives. Cleco aims to sustainably reduce its GHG emissions 60.0% by 2030 with aspirations of net zero emissions by 2050. To manage social relationships, Cleco plans to ensure that the electricity that it generates is affordable, reliable, and sustainable, as well as support community investment opportunities across its service territory and create a workforce culture that rewards inclusion, safety, and innovation. To govern responsibly, Cleco plans to continue operating according to its governance framework. To ensure accountability, Cleco has created an ESG Steering Committee and has appointed a Chief Sustainability Officer to oversee the continued implementation of the ESG goals. Currently, management is unable to predict the impact of implementing these ESG goals on the Registrants. For more information on these ESG goals, see Part I, Item 1, “Business — Human Capital — Diversity and Inclusion,” “— Communities,” and “— Oversight and Governance” in the Registrants’ Combined Annual Report on Form 10-K for the fiscal year ended December 31, 2021. For more information about Cleco’s environmental initiatives, see “— Cleco Power — Project Diamond Vault.”

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 impact 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. In addition to the ESG goals previously discussed, Cleco Power’s current key initiatives include

initiating work on the winterization of generation assets, beginning Project Diamond Vault, continuing the DSMART project, and maintaining and growing its wholesale and retail businesses. Cleco Power is also pursuing solar-related projects. On July 22, 2022, Cleco Power entered into a long-term agreement to purchase, among other things, the output, capacity, and current and future environmental resource credits of a 240-MW solar electric generation facility to be constructed in DeSoto Parish and owned by a third party. The agreement is subject to LPSC approval and other conditions precedent. If approved, Cleco Power expects to begin receiving output from this facility in 2025. These and other initiatives are discussed below.

Effective July 1, 2021, under the terms of the new retail rate plan, 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 Cleco Power’s retail rate plan, see Item 1, “Notes to the Unaudited Condensed Consolidated Financial Statements — Note 11 — Regulation and Rates — FRP.”

Project Diamond Vault

On April 11, 2022, Cleco Power announced Project Diamond Vault, a carbon capture and sequestration facility that is anticipated to be constructed at the Brame Energy Center. This facility is expected to capture and compress carbon dioxide produced by the combustion of fuel at Madison Unit 3 and store the compressed gas permanently in deep geological formations located beneath the Brame Energy Center. Cleco Power expects to reduce the carbon output of Madison Unit 3 by approximately 95% with the implementation of this technology. Through this project, Cleco Power plans to leverage technology advancements and Louisiana’s natural resources to create a clean power solution.

The Front End Engineering Design (FEED) study for Project Diamond Vault has begun and is projected to cost approximately $12.0 million. A $9.0 million congressional appropriation has been secured, subject to the U.S. Department of Energy’s grant process, to help offset future costs of this study. The FEED study is expected to be completed by the end of 2023 and permitting is expected to be completed in the second half of 2025. Construction of the project is expected to begin by the end of 2025. Management expects the total project will be completed by the end of 2028. After the cost of the FEED study, the current total estimated project cost is $900.0 million. Cleco anticipates funding this project through one or more sources including tax credits, Department of Energy grants, and private equity investment.

DSMART Project

The DSMART project includes modernization of Cleco Power’s distribution system by replacing or upgrading distribution line equipment to utilize 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

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total estimated project cost is $90.2 million. The project implementation will be completed in phases, and management expects the total project will be completed by the end of 2026. In January 2019, Cleco Power began the first phase of the project. As of June 30, 2022, Cleco Power had spent $35.4 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.

In 2021, a wholesale customer that is currently Cleco Power’s largest single customer, based on revenue, and is under contract with Cleco Power through March 31, 2024, conducted a request for proposal for capacity and energy 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 provider of capacity and energy 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 fourth quarter of 2022. Cleco Power 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.

Cleco Cajun

Cleco Cajun currently has power purchase agreements totaling approximately 1,774 MW with 12 wholesale customers, which consist of a mixture of electric cooperatives, municipal bodies, a utility, and a non-profit corporation. 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.

A number of Cleco Cajun’s current customers have yet to finalize their recontracting decisions beyond the first quarter of 2025; however, through the request for proposal process, several electric cooperatives have already notified Cleco Cajun that it was not selected as a provider. This non-selection is believed to be the result of a trend toward cooperatives favoring shorter-term, market-based solutions and intermittent renewables rather than asset-backed, long-term full-service contracts. Cleco Cajun will continue to monitor ongoing request for proposal processes and required regulatory approvals. Cleco Cajun cannot predict the outcome of those processes or approvals.

Cleco Cajun is working to secure growth opportunities that include pursuing new wholesale contracts and offtake agreements with other utilities and municipalities in MISO South. In addition, Cleco is exploring other options related to its investment in Cleco Cajun. Failure to recontract existing or other agreements, failure to enter into new contracts to replace existing agreements, or failure to take other mitigating

measures for the loss of existing contracts could have a material adverse effect on Cleco’s results of operations, financial condition, cash flows and liquidity as early as the second quarter of 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, availability of fuel for generation, and compliance with the commitments made to the LPSC as a result of the Cleco Cajun Transaction.

RESULTS OF OPERATIONS

Comparison of the Three Months Ended June 30, 2022, and 2021

Cleco
	FOR THE THREE MONTHS ENDED JUNE 30,
					FAVORABLE/(UNFAVORABLE)
(THOUSANDS)	2022		2021		VARIANCE		CHANGE
Operating revenue, net	$	545,418	$	378,749	$	166,669	44.0	%
Operating expenses	471,697		254,763		(216,934)		(85.2)	%
Operating income	73,721		123,986		(50,265)		(40.5)	%
Interest income	1,241		829		412		49.7	%
Allowance for equity funds used during construction	808		1,105		(297)		(26.9)	%
Other expense, net	(8,473)		(3,970)		(4,503)		(113.4)	%
Interest charges	36,407		33,291		(3,116)		(9.4)	%
Federal and state income tax expense	29,527		9,837		(19,690)		(200.2)	%
Net income	$	1,363	$	78,822	$	(77,459)	(98.3)	%

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 $166.7 million during the second quarter of 2022 compared to the second quarter of 2021 primarily due to $91.1 million of higher fuel cost recovery revenue, $18.6 million of lower electric customer credits, and $14.6 million of higher base revenue at Cleco Power. Also contributing to the increase was $34.7 million of higher electric operations revenue and $6.1 million of higher other operations revenue at Cleco Cajun.

Operating Expenses

Operating expenses increased $216.9 million during the second quarter of 2022 compared to the second quarter of 2021 primarily due to $91.2 million of higher recoverable fuel and purchased power expense, $7.0 million of higher non-recoverable fuel and purchased power expense, $4.2 million of higher taxes other than income taxes, and $3.4 million of higher depreciation and amortization expense at Cleco Power. Also contributing to the increase was $62.1 million of higher fuel used for electric generation, $37.7 million of higher purchased power, $10.6 million of higher depreciation and amortization expense, and $3.2 million of higher other operations and maintenance expenses at Cleco Cajun.

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Other Expense, Net

Other expense, net increased $4.5 million during the second quarter of 2022 compared to the second quarter of 2021 primarily due to $7.4 million for the decrease in the cash surrender value of certain trust-owned life insurance policies as a result of unfavorable market conditions at Cleco Holdings, partially offset by $2.7 million of lower non-service pension costs at Cleco Power.

Interest Charges

Interest charges increased $3.1 million during the second quarter of 2022 compared to the second quarter of 2021 primarily due to the floating rate senior notes issued in September 2021 at Cleco Power, which were redeemed at par on June 23, 2022.

Income Taxes

Federal and state income tax expense increased $19.7 million during the second quarter of 2022 compared to the second quarter of 2021 primarily due to $39.3 million to record tax expense at the projected annual effective tax rate and $1.7 million for the amortization of excess ADIT. These increases were partially offset by $12.1 million for the change in pretax income, excluding AFUDC equity, $4.4 million for permanent tax deductions, $2.8 million for state tax expense, and $2.2 million for flow through of state tax benefits.

The estimated annual effective income tax rates used during the second quarter of 2022 and 2021 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 JUNE 30,
					FAVORABLE/(UNFAVORABLE)
(THOUSANDS)	2022		2021			VARIANCE		CHANGE
Operating revenue
Base	$	178,714	$	164,113		$	14,601	8.9	%
Fuel cost recovery	189,900		98,835			91,065		92.1	%
Electric customer credits	(129)		(18,762)			18,633		99.3	%
Other operations	18,686		16,269			2,417		14.9	%
Affiliate revenue	1,628		1,224			404		33.0	%
Operating revenue, net	388,799		261,679			127,120		48.6	%
Operating expenses
Recoverable fuel and purchased power	189,991		98,824			(91,167)		(92.3)	%
Non-recoverable fuel and purchased power	11,079		4,064			(7,015)		(172.6)	%
Other operations and maintenance	52,277		52,160			(117)		(0.2)	%
Depreciation and amortization	44,299		40,933			(3,366)		(8.2)	%
Taxes other than income taxes	11,547		7,314			(4,233)		(57.9)	%
Total operating expenses	309,193		203,295			(105,898)		(52.1)	%
Operating income	79,606		58,384			21,222		36.3	%
Interest income	1,035		825			210		25.5	%
Allowance for equity funds used during construction	808		1,105			(297)		(26.9)	%
Other expense, net	(2,225)		(5,700)			3,475		61.0	%
Interest charges	21,305		18,237			(3,068)		(16.8)	%
Federal and state income tax expense	3,214		8,956			5,742		64.1	%
Net income	$	54,705	$	27,421		$	27,284	99.5	%

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

	FOR THE THREE MONTHS ENDED JUNE 30,
(MILLION kWh)	2022	2021	FAVORABLE/ (UNFAVORABLE)
Electric sales
Residential	973	873		11.5	%
Commercial	706	649		8.8	%
Industrial	574	508		13.0	%
Other retail	31	32		(3.1)	%
Total retail	2,284	2,062		10.8	%
Sales for resale	789	690		14.3	%
Total retail and wholesale customer sales	3,073	2,752		11.7	%

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

	FOR THE THREE MONTHS ENDED JUNE 30,
(THOUSANDS)	2022		2021		FAVORABLE/ (UNFAVORABLE)
Electric sales
Residential	$	86,831	$	78,254		11.0	%
Commercial	50,873		47,364			7.4	%
Industrial	22,181		19,754			12.3	%
Other retail	2,746		2,785			(1.4)	%
Total retail	162,631		148,157			9.8	%
Sales for resale	16,083		15,956			0.8	%
Total base revenue	$	178,714	$	164,113		8.9	%

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 high number of cooling degree-days may indicate consumers will use more air conditioning, while a high number of heating degree-days may indicate consumers will use more 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 JUNE 30,
				2022 CHANGE
	2022	2021	NORMAL	PRIOR YEAR		NORMAL
Cooling degree-days	1,061	984	942	7.8	%	12.6	%

Base

Base revenue increased $14.6 million during the second quarter of 2022 compared to the second quarter of 2021 primarily due to $10.9 million of higher usage from warmer summer weather and $2.5 million of interim rate recovery for return on certain storm costs relating to Hurricanes Laura, Delta, and Zeta.

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, 2021.

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 77% of Cleco Power’s total fuel cost during the second quarter of 2022 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. On March 29, 2021, Cleco Power received approval from the LPSC to recover a portion of the incremental fuel and purchased power costs resulting from Winter Storms Uri and Viola through Cleco Power’s FAC over a period of 12 months beginning with the May 2021 bills. Cleco Power’s incremental fuel and purchased power costs for the three months ended June 30, 2021, 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 and Reviews — 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 — Risks and Uncertainties.”

Electric Customer Credits

Electric customer credits decreased $18.6 million during the second quarter of 2022 compared to the second quarter of 2021 primarily due to lower credits to retail customers for the federal tax-related benefits of the TCJA now being a component of rates as a result of the implementation of Cleco Power’s retail rate plan. After the implementation of Cleco Power’s retail rate plan, these credits offset base revenue on Cleco Power’s Condensed Consolidated Statement of Income. 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 $2.4 million during the second quarter of 2022 compared to the second quarter of 2021 primarily due to $1.3 million of higher pole attachment income and $1.3 million of higher wholesale transmission revenue.

Non-Recoverable Fuel and Purchased Power

Non-recoverable fuel and purchased power increased $7.0 million during the second quarter of 2022 compared to the second quarter of 2021 primarily due to higher MISO transmission costs.

Depreciation and Amortization

Depreciation and amortization increased $3.4 million during the second quarter of 2022 compared to the second quarter of 2021 primarily due to $2.4 million for the amortization of regulatory assets relating to Hurricanes Laura, Delta, and Zeta and $1.7 million for the absence of a 2021 adjustment to the corporate franchise tax regulatory asset.

Taxes Other Than Income Taxes

Taxes other than income taxes increased $4.2 million during the second quarter of 2022 compared to the second quarter of 2021 primarily due to higher property taxes.

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Other Expense, Net

Other expense, net decreased $3.5 million during the second quarter of 2022 compared to the second quarter of 2021 primarily due to lower non-service pension costs.

Interest Charges

Interest charges increased $3.1 million during the second quarter of 2022 compared to the second quarter of 2021 primarily due to the floating rate senior notes issued in September 2021, which were redeemed at par on June 23, 2022.

Income Taxes

Federal and state income tax expense decreased $5.7 million during the second quarter of 2022 compared to the second quarter of 2021 primarily due to $11.7 million to record tax expense at the projected annual effective tax rate and $2.2 million for the flow through of state tax benefits. These decreases were partially offset by $4.6 million for the change in pretax income, excluding AFUDC equity, $1.7 million for the amortization of excess ADIT, and $1.6 million for state tax expense.

The estimated annual effective income tax rates used during the second quarter of 2022 and 2021 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 JUNE 30,
					FAVORABLE/(UNFAVORABLE)
(THOUSANDS)	2022		2021			VARIANCE		CHANGE
Operating revenue
Electric operations	$	126,089	$	91,407		$	34,682	37.9	%
Electric customer credits	—		244			(244)		(100.0)	%
Other operations	36,712		30,655			6,057		19.8	%
Operating revenue, net	162,801		122,306			40,495		33.1	%
Operating expenses
Fuel used for electric generation	18,954		(43,153)			(62,107)		(143.9)	%
Purchased power	95,522		57,835			(37,687)		(65.2)	%
Other operations and maintenance	25,317		22,113			(3,204)		(14.5)	%
Depreciation and amortization	21,929		11,378			(10,551)		(92.7)	%
Taxes other than income taxes	3,104		3,752			648		17.3	%
Total operating expenses	164,826		51,925			(112,901)		(217.4)	%
Operating (loss) income	(2,025)		70,381			(72,406)		(102.9)	%
Interest income	176		3			173		*
Other expense, net	(6)		(7)			1		14.3	%
Interest charges	43		(180)			(223)		(123.9)	%
Federal and state income tax (benefit) expense	(966)		18,063			19,029		105.3	%
Net (loss) income	$	(932)	$	52,494		$	(53,426)	(101.8)	%
* Not Meaningful

Electric Operations

Electric operations revenue increased $34.7 million during the second quarter of 2022 compared to the second quarter of 2021 primarily due to $23.1 million of higher fuel rates, $6.3

million of higher MISO make-whole payments, $5.1 million of higher load volumes, and $2.7 million of higher MISO pass-through recoveries. These increases were partially offset by $2.0 million for the absence of two power supply agreements.

Other Operations Revenue

Other operations revenue increased $6.1 million during the second quarter of 2022 compared to the second quarter of 2021 primarily due to higher transmission revenue.

Fuel Used for Electric Generation

Fuel used for electric generation increased $62.1 million during the second quarter of 2022 compared to the second quarter of 2021 primarily due to $54.1 million of lower mark-to-market gains on gas-related derivative contracts. Also contributing to the increase was $26.9 million of higher natural gas consumption which was largely the result of higher generating unit dispatch due to warmer summer weather and $21.0 million of higher coal consumption which was largely the result of higher natural gas prices and higher generating unit dispatch due to warmer summer weather. These increases were partially offset by $39.9 million of settlements related to gas swaps activity.

Purchased Power

Purchased power increased $37.7 million during the second quarter of 2022 compared to the second quarter of 2021 primarily due to higher cost of purchased power from MISO.

Other Operations and Maintenance Expense

Other operations and maintenance expense increased $3.2 million during the second quarter of 2022 compared to the second quarter of 2021 primarily due to $1.5 million of higher generating routine maintenance expense, $1.3 million of higher generation operations expense, and $1.2 million of higher generating outage maintenance expense.

Depreciation and Amortization

Depreciation and amortization increased $10.6 million during the second quarter of 2022 compared to the second quarter of 2021 primarily due to higher depreciation on ARO assets as a result of an increase to those assets recorded in the third quarter of 2021 to comply with the final CCR Rule, as well as a reduction to the remaining lives of those assets.

Income Taxes

Federal and state income tax benefit increased $19.0 million during the second quarter of 2022 compared to the second quarter of 2021 primarily due to $15.2 million for the change in pretax income and $3.6 million for state tax expense.

The effective income tax rates for the second quarters of 2022 and 2021 were 50.9% and 25.6%, respectively. The estimated annual effective income tax rates used during the second quarter of 2022 and 2021 for Cleco Cajun may not be indicative of the full-year income tax rates.

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Comparison of the Six Months Ended June 30, 2022, and 2021

Cleco
	FOR THE SIX MONTHS ENDED JUNE 30,
					FAVORABLE/(UNFAVORABLE)
(THOUSANDS)	2022		2021		VARIANCE		CHANGE
Operating revenue, net	$	994,598	$	773,743	$	220,855	28.5	%
Operating expenses	738,698		603,459		(135,239)		(22.4)	%
Operating income	255,900		170,284		85,616		50.3	%
Interest income	1,997		1,475		522		35.4	%
Allowance for equity funds used during construction	1,740		1,991		(251)		(12.6)	%
Other expense, net	(8,663)		(7,002)		(1,661)		(23.7)	%
Interest charges	69,927		67,183		(2,744)		(4.1)	%
Federal and state income tax expense	23,940		416		(23,524)		*
Net income	$	157,107	$	99,149	$	57,958	58.5	%
*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 $220.9 million during the six months ended June 30, 2022, compared to the six months ended June 30, 2021, primarily due to $115.6 million of higher fuel cost recovery revenue, $39.5 million of lower electric customer credits, and $19.0 million of higher base revenue at Cleco Power. Also contributing to the increase was $36.8 million of higher electric operations income and $8.6 million of higher other operations revenue at Cleco Cajun.

Operating Expenses

Operating expenses increased $135.2 million during the six months ended June 30, 2022, compared to the six months ended June 30, 2021, primarily due to $115.5 million of higher recoverable fuel and purchased power expense, $9.4 million of higher non-recoverable fuel and purchased power expense, and $6.5 million of higher depreciation and amortization expense at Cleco Power. Also contributing to the increase was $54.3 million of higher fuel expense, $38.2 million of higher purchased power expense, and $21.6 million of higher depreciation and amortization expense at Cleco Cajun. These increases were partially offset by $51.6 million of lower fuel used for electric generation at Cleco Cajun.

Other Expense, Net

Other expense, net increased $1.7 million during the six months ended June 30, 2022, compared to the six months ended June 30, 2021, primarily due to $7.9 million for the decrease in the cash surrender value of certain trust-owned life insurance policies as a result of unfavorable market conditions at Cleco Holdings. This increase was partially offset by $4.7 million of lower non-service pension costs at Cleco Power.

Interest Charges

Interest charges increased $2.7 million during the six months ended June 30, 2022, compared to the six months ended June 30, 2021 primarily due to the floating rate senior notes issued in September 2021, which were redeemed at par on June 23, 2022.

Income Taxes

Federal and state income tax expense increased $23.5 million during the six months ended June 30, 2022, compared to the six months ended June 30, 2021, primarily due to $17.2 million for the change in pretax income, excluding AFUDC equity, $7.3 million to record tax expense at the projected annual effective tax rate, $5.9 million for state tax expense, and $4.8 million for the amortization of excess ADIT. These increases were partially offset by $6.5 million for the flow through of state tax benefits and $5.3 million for permanent tax deductions.

The estimated annual effective income tax rates used during the six months ended June 30, 2022, and 2021 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 SIX MONTHS ENDED JUNE 30,
					FAVORABLE/(UNFAVORABLE)
(THOUSANDS)	2022		2021		VARIANCE		CHANGE
Operating revenue
Base	$	335,738	$	316,724	$	19,014	6.0	%
Fuel cost recovery	328,973		213,383		115,590		54.2	%
Electric customer credits	(265)		(39,738)		39,473		99.3	%
Other operations	37,771		34,895		2,876		8.2	%
Affiliate revenue	3,087		2,879		208		7.2	%
Operating revenue, net	705,304		528,143		177,161		33.5	%
Operating expenses
Recoverable fuel and purchased power	328,943		213,397		(115,546)		(54.1)	%
Non-recoverable fuel and purchased power	23,118		13,734		(9,384)		(68.3)	%
Other operations and maintenance	101,006		105,726		4,720		4.5	%
Depreciation and amortization	89,538		83,009		(6,529)		(7.9)	%
Taxes other than income taxes	24,178		23,816		(362)		(1.5)	%
Total operating expenses	566,783		439,682		(127,101)		(28.9)	%
Operating income	138,521		88,461		50,060		56.6	%
Interest income	1,775		1,468		307		20.9	%
Allowance for equity funds used during construction	1,740		1,991		(251)		(12.6)	%
Other expense, net	(4,261)		(9,958)		5,697		57.2	%
Interest charges	40,108		36,883		(3,225)		(8.7)	%
Federal and state income tax expense (benefit)	3,938		(767)		(4,705)		(613.4)	%
Net income	$	93,729	$	45,846	$	47,883	104.4	%

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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 SIX MONTHS ENDED JUNE 30,
(Million kWh)	2022	2021	FAVORABLE/ (UNFAVORABLE)
Electric sales
Residential	1,863	1,788		4.2	%
Commercial	1,305	1,230		6.1	%
Industrial	1,118	1,028		8.8	%
Other retail	61	64		(4.7)	%
Total retail	4,347	4,110		5.8	%
Sales for resale	1,472	1,386		6.2	%
Total retail and wholesale customer sales	5,819	5,496		5.9	%

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

	FOR THE SIX MONTHS ENDED JUNE 30,
(THOUSANDS)	2022		2021		FAVORABLE/ (UNFAVORABLE)
Electric sales
Residential	$	156,747	$	146,065		7.3	%
Commercial	99,137		93,829			5.7	%
Industrial	43,538		42,181			3.2	%
Other retail	5,448		5,452			(0.1)	%
Total retail	304,870		287,527			6.0	%
Sales for resale	30,868		29,197			5.7	%
Total base revenue	$	335,738	$	316,724		6.0	%

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 SIX MONTHS ENDED JUNE 30,
				2022 CHANGE
	2022	2021	NORMAL	PRIOR YEAR		NORMAL
Heating degree-days	1,098	985	941	11.5	%	16.7	%
Cooling degree-days	1,155	1,124	1,020	2.8	%	13.2	%

Base

Base revenue increased $19.0 million during the six months ended June 30, 2022, compared to the six months ended June 30, 2021, primarily due to $12.0 million of higher usage from warmer summer weather and colder winter weather, $6.5 million of interim rate recovery for return on certain storm costs relating to Hurricanes Laura, Delta, and Zeta, and $2.4 million of higher rates as a result of the implementation of Cleco Power’s new retail rate plan. These increases were partially offset by $2.7 million of lower demand charges for industrial customers.

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, 2021.

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 78% of Cleco Power’s total fuel cost during the first six months of 2022 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 the incremental fuel and purchased power costs resulting from Winter Storms Uri and Viola through Cleco Power’s FAC over a period of 12 months beginning with the May 2021 bills. Cleco Power’s incremental fuel and purchased power costs for the six months ended June 30, 2021, 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 and Reviews — 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 $39.5 million during the six months ended June 30, 2022, compared to the six months ended June 30, 2021, primarily due to lower credits to retail customers for the federal tax-related benefits of the TCJA now being a component of rates as a result of the implementation of Cleco Power’s retail rate plan. After the implementation of Cleco Power’s retail rate plan, these credits offset base revenue on Cleco Power’s Condensed Consolidated Statement of Income. 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 $2.9 million during the six months ended June 30, 2022, compared to the six months ended June 30, 2021, primarily due to $1.3 million of higher pole attachment income, $0.8 million of higher forfeited discounts, and $0.6 million of higher transmission revenue.

Non-Recoverable Fuel and Purchased Power

Non-recoverable fuel and purchased power increased $9.4 million during the six months ended June 30, 2022, compared to the six months ended June 30, 2021, primarily due to higher MISO transmission costs.

Other Operations and Maintenance Expense

Other operations and maintenance expense decreased $4.7 million during the six months ended June 30, 2022, compared to the six months ended June 30, 2021, primarily due to $4.2

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million of lower generating outage maintenance expenses, $2.4 million of lower generating routine maintenance expenses, and $1.7 million of lower generation operations expense. These decreases were partially offset by $3.2 million of higher expenses related to employee benefits.

Depreciation and Amortization

Depreciation and amortization increased $6.5 million during the six months ended June 30, 2022, compared to the six months ended June 30, 2021, primarily due to $4.7 million for the amortization of regulatory assets relating to Hurricanes Laura, Delta, and Zeta and $1.3 million for the absence of an adjustment to the corporate franchise tax regulatory asset.

Other Expense, Net

Other expense, net decreased $5.7 million during the six months ended June 30, 2022, compared to the six months ended June 30, 2021, primarily due to $4.7 million of lower non-service pension costs and $1.0 million for the absence of disallowed costs in 2021 as a result of the settlement of Cleco Power’s retail rate case.

Interest Charges

Interest charges increased $3.2 million during the six months ended June 30, 2022, compared to the six months ended June 30, 2021, primarily due to the floating rate senior notes issued in September 2021, which were redeemed at par on June 23, 2022.

Income Taxes

Federal and state income tax expense increased $4.7 million during the six months ended June 30, 2022, compared to the six months ended June 30, 2021, primarily due to $11.1 million for the change in pretax income, excluding AFUDC equity, $4.8 million for the amortization of excess ADIT, and $3.3 million for state tax expense. These increases were partially offset by $8.1 million to record tax expense at the projected annual effective tax rate and $6.5 million for the flow through of state tax benefits.

The estimated annual effective income tax rates used during the six months ended June 30, 2022, and 2021 for Cleco Power 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 SIX MONTHS ENDED JUNE 30,
					FAVORABLE/(UNFAVORABLE)
(THOUSANDS)	2022		2021		VARIANCE		CHANGE
Operating revenue
Electric operations	$	229,722	$	192,914	$	36,808	19.1	%
Electric customer credits	—		244		(244)		(100.0)	%
Other operations	72,324		63,694		8,630		13.5	%
Operating revenue, net	302,046		256,852		45,194		17.6	%
Operating expenses
Fuel used for electric generation	(84,134)		(32,542)		51,592		158.5	%
Purchased power	163,630		125,443		(38,187)		(30.4)	%
Other operations and maintenance	47,658		44,226		(3,432)		(7.8)	%
Depreciation and amortization	43,819		22,234		(21,585)		(97.1)	%
Taxes other than income taxes	6,181		7,522		1,341		17.8	%
Total operating expenses	177,154		166,883		(10,271)		(6.2)	%
Operating income	124,892		89,969		34,923		38.8	%
Interest income	188		6		182		*
Other income (expense), net	78		(659)		737		111.8	%
Interest charges	35		(332)		(367)		(110.5)	%
Federal and state income tax expense	32,674		22,673		(10,001)		(44.1)	%
Net income	$	92,449	$	66,975	$	25,474	38.0	%
* Not meaningful

Electric Operations

Electric operations revenue increased $36.8 million during the six months ended June 30, 2022, compared to the six months ended June 30, 2021, primarily due to $35.6 million of higher fuel rates, $4.1 million of higher MISO pass-through revenue, and $3.0 million of higher load volumes. These increases were partially offset by $5.8 million for the absence of two power supply agreements.

Other Operations Revenue

Other operations revenue increased $8.6 million during the six months ended June 30, 2022, compared to the six months ended June 30, 2021, primarily due to higher transmission revenue.

Fuel Used for Electric Generation

Fuel used for electric generation decreased $51.6 million during the six months ended June 30, 2022, compared to the six months ended June 30, 2021, primarily due to $61.6 million of settlements related to gas swaps activity and $46.4 million of higher mark-to-market gains on gas related derivative contracts. These decreases were partially offset by $30.9 million of higher coal consumption, which was largely the result of higher natural gas prices and higher generating unit dispatch due to warmer summer weather. Also offsetting these decreases was $23.4 million of higher natural gas consumption which was largely the result of higher generating unit dispatch due to warmer summer weather.

Purchased Power

Purchased power increased $38.2 million during the six months ended June 30, 2022, compared to the six months

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ended June 30, 2021, primarily due to higher costs of purchased power from MISO.

Other Operations and Maintenance Expense

Other operations and maintenance increased $3.4 million during the six months ended June 30, 2022, compared to the six months ended June 30, 2021, primarily due to $1.7 million of higher generating outage maintenance expense and $1.5 million of higher generating routine maintenance expense.

Depreciation and Amortization

Depreciation and amortization increased $21.6 million during the six months ended June 30, 2022, compared to the six months ended June 30, 2021, primarily due to higher depreciation on ARO assets as a result of an increase to those assets recorded in the third quarter of 2021 to comply with the final CCR Rule, as well as a reduction to the remaining lives of those assets.

Income Taxes

Federal and state income tax expense increased $10.0 million during the six months ended June 30, 2022, compared to the six months ended June 30, 2021, primarily due to $7.4 million

for the change in pretax income, $3.6 million for state tax expenses, and $1.0 million for permanent tax deductions.

The effective income tax rates for the six months ended June 30, 2022, and 2021 were 26.1% and 25.3%, respectively. The estimated annual effective income tax rates used during the six months ended June 30, 2022, and 2021 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 six months ended June 30, 2022, and 2021:

	FOR THE THREE MONTHS ENDED JUNE 30,
	2022					2021
(THOUSANDS)	CLECO POWER		CLECO CAJUN			CLECO POWER		CLECO CAJUN
Net income (loss)	$	54,705	$	(932)		$	27,421	$	52,494
Add: Depreciation and amortization	44,299		23,219		(1)	40,933		12,339		(2)
Less: Interest income	1,035		176			825		3
Add: Interest charges	21,305		43			18,237		(180)
Add: Federal and state income tax expense (benefit)	3,214		(966)			8,956		18,063
EBITDA	$	122,488	$	21,188		$	94,722	$	82,713
(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 $3.3 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 SIX MONTHS ENDED JUNE 30,
	2022					2021
(THOUSANDS)	CLECO POWER		CLECO CAJUN			CLECO POWER		CLECO CAJUN
Net income	$	93,729	$	92,449		$	45,846	$	66,975
Add: Depreciation and amortization	89,538		46,398		(1)	83,009		23,991		(2)
Less: Interest income	1,775		188			1,468		6
Add: Interest charges	40,108		35			36,883		(332)
Add: Federal and state income tax expense (benefit)	3,938		32,674			(767)		22,673
EBITDA	$	225,538	$	171,368		$	163,503	$	113,301
(1) Includes $7.2 million of amortization of intangible assets and liabilities related to wholesale power supply agreements and $(4.6) million of deferred lease revenue amortization as a result of the Cleco Cajun Transaction. (2) Includes $6.4 million of amortization of intangible assets and liabilities related to wholesale power supply agreements and $(4.6) million of deferred lease revenue amortization as a result of the Cleco Cajun Transaction.

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

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credit ratings of Cleco Holdings and Cleco Power at June 30, 2022:

	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.

On April 1, 2022, and following the LPSC’s authorization of the securitization financing of Cleco Power’s storm restoration costs, S&P revised its outlook on Cleco Holdings and Cleco Power to stable from negative. S&P revised its outlook due to its expectation that Cleco’s financial metrics and balance sheet would improve given the upcoming securitization of storm restoration costs. On June 22, 2022, the storm securitization financing was completed.

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 are in 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. 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, 2021. 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.”

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 rising interest rates the Registrants have recently been exposed to have negatively affected interest expense on variable rate debt and positively affected interest income for the Registrants’ short-term investments.

Recently, inflationary pressures have increased substantially. Under established regulatory practice, historical costs have traditionally formed the basis for recovery from customers. As a result, Cleco Power’s future cash flows designed to provide recovery of historical plant costs may not be adequate to replace property, plant, and equipment in future years. For information on the impacts of inflation and market price volatility of natural gas on credit loss reserves related to customer accounts receivable, see Item 1, “Notes to the Unaudited Condensed Consolidated Financial Statements — Note 1 — Summary of Significant Accounting Policies — Reserves for Credit Losses.”

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 current retail rate plan, which included the settlement of the TCJA protected and unprotected excess ADIT. As a result of this settlement, all retail customers will continue receiving bill credits resulting from the TCJA. For more information on the regulatory impact of the TCJA, see Item 1, “Notes to the Unaudited Condensed Consolidated Financial Statements — Note 11 — Regulation and Rates — TCJA.”

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 company purposes. For more information on Cleco’s 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.”

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Debt

Cleco

At June 30, 2022, Cleco had $55.0 million short-term debt outstanding under Cleco Power’s $300.0 million revolving credit facility. At December 31, 2021, Cleco had no short-term debt outstanding.

At June 30, 2022, Cleco’s long-term debt and finance leases outstanding totaled $3.58 billion, of which $261.7 million was due within one year. The long-term debt due within one year at June 30, 2022, primarily represents $165.0 million of Cleco Holdings’ senior notes due in May 2023, $67.7 million of principal payments on Cleco Holdings’ debt as required by the Cleco Cajun Transaction commitments to the LPSC, $25.0 million of Cleco Power’s senior notes due in December 2022, and a $3.2 million of Cleco Securitization I storm recovery bond principal payment due in March 2023. For more information about the storm recovery bonds, see Item 1, “Notes to the Unaudited Condensed Consolidated Financial Statements — Note 7 — Debt.”

Cash and cash equivalents available at June 30, 2022, were $130.9 million, combined with $420.0 million available revolving credit facility capacity ($175.0 million from Cleco Holdings and $245.0 million from Cleco Power) for total liquidity of $550.9 million. For more information on the credit facility capacity, see “— Credit Facilities.”

At June 30, 2022, 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 June 30, 2022, and December 31, 2021, Cleco had a working capital surplus of $135.3 million and $254.8 million, respectively. The $119.5 million decrease in working capital is primarily due to:

•a $168.1 million increase in long-term debt due within one year primarily due to the reclassification of Cleco Holdings’ $165.0 million senior notes due in May 2023,

•a $55.0 million increase in short-term debt due to outstanding draws on Cleco Power’s revolving credit facility,

•a $46.8 million increase in accounts payable, excluding Cleco Power FTR purchases, primarily due to higher accruals for natural gas at Cleco Power and higher purchased power at Cleco Cajun,

•a $32.7 million increase in taxes payable primarily due to accruals of property taxes and federal and state income taxes,

•a $21.4 million decrease in the cash surrender value of a life insurance policy primarily due to the recognition of a death benefit and unfavorable market conditions at Cleco Holdings, and

•a $17.7 million decrease in cash and cash equivalents.

These decreases in working capital were partially offset by:

•a $40.7 million decrease in affiliate accounts payable primarily due to settlement of intercompany taxes payable,

•a $38.0 million increase in accumulated deferred fuel, excluding Cleco Power FTRs, primarily due to rising fuel costs and the timing of collections,

•a $32.0 million increase in fuel inventory primarily due to higher petroleum coke at Cleco Power as a result of an increase in volume at a higher price per ton,

•a $22.9 million increase in customer accounts receivable primarily due to warmer weather and timing of collections from customers,

•a $22.7 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 $21.6 million increase in other accounts receivable primarily due to the settlement of gas-related derivative contracts at Cleco Cajun,

•a $21.4 million increase in regulatory assets primarily due to the reclassification of the short-term portion of the regulatory assets related to Madison Unit 3 property tax, Bayou Vista to Segura, and deferred storm restoration costs,

•an $11.0 million increase in unbilled revenue primarily due to higher usage as a result of warmer summer weather, and

•a $9.3 million increase in restricted cash and cash equivalents primarily due to amounts restricted for Hurricane Ida storm restoration costs.

Cleco Holdings

At June 30, 2022, and December 31, 2021, Cleco Holdings had no short-term debt outstanding.

At June 30, 2022, Cleco Holdings’ long-term debt outstanding was $1.54 billion, of which $232.7 million was due within one year. The long-term debt due within one year at June 30, 2022, represents $165.0 million of Cleco Holdings’ senior notes due in May 2023 and $67.7 million of principal payments on Cleco Holdings’ debt as required by the Cleco Cajun Transaction commitments to the LPSC.

At June 30, 2022, Cleco Holdings had no borrowings outstanding under its $175.0 million revolving credit facility. For more information on Cleco Holdings’ 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 June 30, 2022.

Cash and cash equivalents available at Cleco Holdings at June 30, 2022, were $6.5 million, combined with $175.0 million revolving credit facility capacity for total liquidity of $181.5 million.

Cleco Power

At June 30, 2022, Cleco Power had $55.0 million short-term debt outstanding under its $300.0 million revolving credit facility. At December 31, 2021, Cleco Power had no short-term debt outstanding.

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 its working capital needs. There were no

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amounts outstanding under the uncommitted line of credit at June 30, 2022.

On June 22, 2022, Cleco Securitization I issued $425.0 million aggregate principal amount of senior secured storm recovery bonds. For more information on the storm recovery bonds, see Item 1, “Notes to the Unaudited Condensed Consolidated Financial Statements — Note 7 — Debt.”

On June 23, 2022, following the closing of the storm recovery bonds, Cleco Power redeemed its $325.0 million floating rate senior notes issued in September 2021 at par.

At June 30, 2022, Cleco Power’s long-term debt outstanding was $1.92 billion, of which $29.0 million was due within one year. The amount due within one year primarily represents $25.0 million of senior notes due in December 2022 and a $3.2 million of Cleco Securitization I storm recovery bond principal payment due in March 2023.

Cash and cash equivalents available at June 30, 2022, were $52.8 million, combined with $245.0 million revolving credit facility capacity for total liquidity of $297.8 million.

At June 30, 2022, and December 31, 2021, Cleco Power had a working capital surplus of $149.0 million and $110.2 million, respectively. The $38.8 million increase in working capital is primarily due to:

•a $59.3 million decrease in affiliate accounts payable primarily due to the settlement of intercompany taxes payable,

•a $38.0 million increase in accumulated deferred fuel, excluding FTRs, primarily due to rising fuel costs and the timing of collections,

•a $32.1 million increase in fuel inventory primarily due to higher petroleum coke as a result of an increase in volume at a higher price per ton,

•a $21.4 million increase in regulatory assets primarily due to the reclassification of the short-term portion of the regulatory assets related to Madison Unit 3 property tax, Bayou Vista to Segura, and deferred storm restoration costs,

•an $11.0 million increase in unbilled revenue primarily due to higher usage as a result of warmer summer weather,

•a $9.9 million increase in customer accounts receivable primarily due to warmer weather and timing of collections from customers,

•a $9.3 million increase in restricted cash and cash equivalents primarily due to amounts restricted for Hurricane Ida storm restoration costs, and

•an $8.1 million increase in other accounts receivable primarily due to timing of collections from joint owners and accruals for MISO receivables and pole rentals.

These increases in working capital were partially offset by:

•a $55.0 million increase in short-term debt primarily due to outstanding draws on the revolving credit facility,

•a $32.9 million decrease in cash and cash equivalents,

•a $26.4 million increase in accounts payable, excluding FTR purchases, primarily due to higher accruals for natural gas,

•a $24.6 million increase in taxes payable primarily due to accruals of property taxes, and

•a $10.4 million decrease in affiliate accounts receivable primarily due to the settlement of intercompany receivables.

Credit Facilities

At June 30, 2022, 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 $55.0 million of outstanding borrowings. These revolving credit agreements were entered into on May 21, 2021, and replaced the respective previously existing agreements. The total of all revolving credit facilities creates a maximum aggregate capacity of $475.0 million.

Cleco Holdings’ revolving credit facility provides funding 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 June 30, 2022, Cleco Holdings was in compliance with the covenants of its revolving credit facility. At June 30, 2022, 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 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 funding for working capital and other financing needs. The outstanding borrowings on Cleco Power’s revolving credit facility at June 30, 2022, was primarily attributable to rising fuel costs and the delay in recovery from customers. 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 June 30, 2022, Cleco Power was in compliance with the covenants of its revolving credit facility. At June 30, 2022, 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 June 30, 2022, 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

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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 June 30, 2022, 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, 2021.

Cleco Cash Flows

Net Operating Cash Flow

Net cash provided by operating activities was $174.5 million and $45.5 million for the six months ended June 30, 2022, and 2021, respectively. Net cash provided by operating activities increased $129.0 million primarily due to:

•lower payments for fuel inventory of $59.8 million primarily due to the absence of lignite costs at Cleco Power,

•collateral of $42.5 million received from counterparties related to Cleco Cajun’s natural gas derivatives,

•higher recoveries of net fuel and purchased power costs at Cleco Power of $9.3 million primarily due the timing of collections,

•lower payments to vendors of $5.9 million primarily due to the timing of payments related to other operating and maintenance activities, and

•lower operations and maintenance payments related to storm restoration activities of $3.9 million at Cleco Power.

These increases were partially offset by:

•higher payments for affiliate settlements of $43.5 million and

•lower collections from Cleco Cajun’s joint owners of $11.8 million primarily due to timing of receipts for their portions of generating station expenditures.

Net Investing Cash Flow

Net cash used in investing activities was $85.1 million and $135.7 million for the six months ended June 30, 2022, and 2021, respectively. Net cash used in investing activities decreased $50.6 million primarily due to:

•lower additions to property, plant, and equipment, net of AFUDC, of $36.8 million and

•life insurance proceeds of $15.7 million.

Net Financing Cash Flow

Net cash provided by financing activities was $14.8 million and $82.0 million for the six months ended June 30, 2022, and

2021, respectively. Net cash provided by financing activities decreased $67.2 million primarily due to:

•the redemption of Cleco Power’s $325.0 million floating rate senior notes,

•higher distributions to Cleco Group of $132.8 million, and

•lower draws on revolving credit facilities of $45.0 million.

These decreases were partially offset by:

•proceeds of $424.9 million, net of discount, from the issuance of Cleco Securitization I’s senior secured storm recovery bonds and

•the absence of payments on credit facilities of $15.0 million.

Cleco Power Cash Flows

Net Operating Cash Flow

Net cash provided by operating activities was $90.7 million and $40.5 million during the six months ended June 30, 2022, and 2021, respectively. Net cash provided by operating activities increased $50.2 million primarily due to:

•lower payments for fuel inventory of $45.7 million primarily due to the absence of lignite costs,

•higher recoveries of net fuel and purchased power costs of $9.3 million primarily due to the timing of collections, and

•lower operations and maintenance payments related to storm restoration activities of $3.9 million.

These increases were partially offset by higher payments for affiliate settlements of $48.5 million.

Net Investing Cash Flow

Net cash used in investing activities was $97.3 million and $129.4 million for the six months ended June 30, 2022, and 2021, respectively. Net cash used in investing activities decreased $32.1 million primarily due to lower additions to property, plant, and equipment, net of AFUDC, of $34.0 million.

Net Financing Cash Flow

Net cash provided by financing activities was $95.7 million and $83.2 million for the six months ended June 30, 2022, and 2021, respectively. Net cash provided by financing activities increased $12.5 million primarily due:

•proceeds of $424.9 million, net of discount, from the issuance of Cleco Securitization I’s senior secured storm recovery bonds and

•the absence of payments on the credit facility of $15.0 million.

These increases were partially offset by:

•the redemption of $325.0 million floating rate senior notes,

•higher distributions to Cleco Holdings of $52.0 million, and

•lower draws on the revolving credit facility of $45.0 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

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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, 2021.

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 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, cyberattack, 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, 2021.

Regulatory and Other Matters

Environmental Matters

Cleco is subject to extensive environmental regulation by federal, state, and local authorities and is required to comply 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 and Reviews — 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, 2021.

Cross-State Air Pollution Rule

On April 6, 2022, the EPA published in the federal register a proposed federal implementation plan (FIP) that

if finalized would be applied to address the “good neighbor” requirements for the 2015 ozone National Ambient Air Quality Standards (NAAQS) for those states that do not have an approved state implementation plan (SIP). If the EPA finalizes its proposed disapproval of the Louisiana SIP, the EPA would apply a finalized FIP to address the “good neighbor” provision in Louisiana for the 2015 ozone NAAQS, which might result in the allocation of fewer emission allowances to generating units and may cause Cleco to buy additional allowances and/or take other measures to comply. Management is unable to predict or give a reasonable estimate of the outcome of the EPA’s decision regarding the “good neighbor” provision.

CPP/ACE and NSPS

On June 30, 2022, the U.S. Supreme Court released its opinion on vacating and remanding the ACE rule, which requires state agencies to set standards of performance for affected generating units and submit the implementation plan to the EPA for approval. The U.S. Supreme Court indicated in its opinion that the EPA does not have the authority to apply generation shifting in the regulation of GHG emissions as in the Clean Power Plan. The case was returned to the D.C. Circuit Court of Appeals. It is expected that the EPA will issue a new GHG rule taking the Court’s opinion into consideration sometime in the future.

Retail Rates of Cleco Power

Base Rates

On June 1, 2021, Cleco Power began collecting through rates $16.0 million annually for interim storm recovery costs associated with Hurricanes Laura, Delta, and Zeta. The interim storm rate recovery will continue until the new storm surcharge becomes effective on September 1, 2022. For information on the storm securitization financing, see Item 1, “Notes to the Unaudited Condensed Consolidated Financial Statements — Note 17 — Storm Securitization and Cost Recovery.”

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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 this 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 and Reviews — 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, 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 and Reviews — 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 2019 and 2020 to consider all program costs. On January 12, 2022, Cleco Power received a draft audit report from the LPSC indicating no material findings. Approval of the draft report is expected in September 2022. Program years 2021 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.

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, and it is currently pending FERC approval. The next triennial market power analysis is expected to be filed in December 2023.

Transmission Rates

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, 2021.

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, 2021.

Distribution Projects

Cleco Power’s significant ongoing projects includes the DSMART distribution project. For information on this project, see “— Overview — Cleco Power.”

Market Structure

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 Structure — Wholesale Electric Markets” in the Registrants’ Combined Annual Report on Form 10-K for the fiscal year ended December 31, 2021.

ERO

NERC, subject to oversight by FERC, is the ERO responsible for developing and enforcing mandatory reliability standards for users, owners, and operators of the bulk power system. NERC, as the ERO, delegates authority to SERC Reliability Corporation.

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 September 2022.

A NERC CIP audit is also conducted every three years for Cleco Power and Cleco Cajun. The next NERC CIP audits for Cleco Power and Cleco Cajun are scheduled to begin in 2023.

Management is unable to predict the final financial outcome of 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, 2021.

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 Structure — Retail Electric Markets” in the Registrants’ Combined Annual Report on Form 10-K for the fiscal year ended December 31, 2021.

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CLECO POWER	2022 2ND QUARTER FORM 10-Q

Integrated Resource Plan (IRP)

On October 20, 2021, Cleco Power filed its request with the LPSC to initiate its next IRP process. Cleco Power filed its initial data assumptions to be used in its IRP analysis on February 21, 2022. The IRP process includes conducting stakeholder meetings and receiving feedback from stakeholders. The first stakeholders meeting was conducted on March 24, 2022. The first draft of the IRP is expected to be filed in October 2022.

The IRP report describes how Cleco Power plans to meet its forecasted load requirements on a reliable and economic basis, while reducing Cleco Power’s carbon footprint. The IRP is used as a guide in future decision-making and does not represent firm operational commitments.

Service Quality Plan (SQP)

In October 2015, the LPSC proposed an SQP containing 21 requirements for Cleco Power. The SQP has provisions relating to employee headcount, customer service, reliability, vegetation management, and reporting. In April 2016, the SQP was approved by the LPSC. The SQP expired on December 31, 2020. Cleco Power is currently working to complete a new five-year program to submit to the LPSC for approval. On April 29, 2022, Cleco Power filed its annual SQP monitoring report for 2021 based on the expired reporting requirements.

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 2023.

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, 2021.

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).

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 help 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 enters into master agreements with counterparties that govern the risk of credit default and allow for collateralization above prenegotiated uncollateralized thresholds to help mitigate potential losses. Alternatively, 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, changes in the amounts counterparties owe to Cleco, and any prenegotiated unsecured thresholds agreed to in the master contract. Changes in any of these factors could cause the amount of requested credit support to increase or decrease.

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CLECO
CLECO POWER	2022 2ND QUARTER FORM 10-Q

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. Disruption in the capital and credit markets may potentially increase the costs of capital and limit the ability to access the capital markets. The inability to raise capital on favorable terms could negatively affect Cleco’s ability to maintain and expand its business. 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 bank facilities with fixed-rate debt or vice versa. 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 June 30, 2022, Cleco Holdings had no short-term debt outstanding under its $175.0 million revolving credit facility. At June 30, 2022, 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 June 30, 2022, Cleco Holdings had a $200.0 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 3.295%. 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 $2.0 million on an annualized basis. The weighted average rate for the

outstanding term loan debt at Cleco Holdings for the six months ended June 30, 2022, was 2.09%.

At June 30, 2022, Cleco Power had $55.0 million of short-term debt outstanding under its $300.0 million revolving credit facility at an all-in interest rate of 2.89%. At June 30, 2022, 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%. Each 1% increase in the interest rate applicable to Cleco Power’s short-term variable rate debt would result in a decrease in Cleco Power’s pretax earnings of $0.6 million on an annualized basis.

At June 30, 2022, 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 2.92%. 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 $1.3 million on an annualized basis. The weighted average rate for the outstanding term loan debt at Cleco Power for the six months ended June 30, 2022, was 1.72%.

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 consolidated pretax earnings of $3.8 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 reporting period presented, the Registrants did not enter into any contracts to mitigate the volatility in interest rate risk.

Commodity Price Risk

Cleco’s financial performance can be impacted by changes in commodity prices that can impact fuel costs, generation revenue, costs to serve its contracted wholesale electricity customers, and revenue from those customers. 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.

At June 30, 2022, Cleco Cajun had 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. Cleco Power does not have any gas-related contracts accounted for as derivatives.

The following tables present the fair values of derivative instruments and their respective line items as recorded on Cleco’s and Cleco Power’s Condensed Consolidated Balance Sheets at June 30, 2022:

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CLECO
CLECO POWER	2022 2ND QUARTER FORM 10-Q

Cleco
	DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS
		AT JUNE 30, 2022
				GROSS AMOUNTS OFFSET ON THE BALANCE SHEET		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		CASH COLLATERAL		NET ASSET (LIABILITY) ON THE BALANCE SHEET		COLLATERAL		NET AMOUNT
Commodity-related contracts
FTRs
Current	Energy risk management assets	$	11,863	$	—	$	—	$	11,863	$	—	$	11,863
Current	Energy risk management liabilities	(7,181)		—		—		(7,181)		—		(7,181)
Natural gas derivatives
Current	Energy risk management assets	85,708		(2,497)		(23,524)		59,687		(62,184)		(2,497)
Non-current	Energy risk management assets	99,536		—		(18,976)		80,560		(44,308)		36,252
Current	Energy risk management liabilities	(2,497)		2,497		—		—		—		—
Commodity-related contracts, net		$	187,429	$	—	$	(42,500)	$	144,929	$	(106,492)	$	38,437

(1) Represents letters of credit by counterparties.

Cleco Power
	DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS
(THOUSANDS)	BALANCE SHEET LINE ITEM	AT JUNE 30, 2022
Commodity-related contracts
FTRs
Current	Energy risk management assets	$	10,857
Current	Energy risk management liabilities	(719)
Commodity-related contracts, net		$	10,138

Cleco monitors the Value at Risk (VaR) of its natural gas 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 natural gas derivative contracts based on these assumptions:

			FOR THE THREE MONTHS ENDED JUNE 30, 2022						FOR THE SIX MONTHS ENDED JUNE 30, 2022
(THOUSANDS)	AT JUNE 30, 2022		HIGH		LOW		AVERAGE		HIGH		LOW		AVERAGE
Cleco	$	42,713	$	60,270	$	31,458	$	47,717	$	60,270	$	21,026	$	36,855

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.”

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 June 30, 2022. 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 June 30, 2022, that have materially affected, or are reasonably likely to materially affect, the Registrants’ internal control over financial reporting.

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CLECO
CLECO POWER	2022 2ND 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

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 II, Item 1A, “Risk Factors” in

the Quarterly Report on Form 10-Q for the quarter ended March 31, 2022, and Part I, Item 1A, “Risk Factors” of the Registrants’ Combined Annual Report on Form 10-K for the fiscal year ended December 31, 2021.

ITEM 6.  EXHIBITS
CLECO
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 between Cleco Securitization I LLC and The Bank of New York Mellon Trust Company, National Association, as Trustee (including the form of the Storm Recovery Bonds and the Series Supplement), dated as of June 22, 2022 (incorporated by reference to Exhibit 4.1 to Cleco Power LLC’s Current Report on Form 8-K dated June 22, 2022, File No. 001-05663).
4.2	Series Supplement between Cleco Securitization I LLC and The Bank of New York Mellon Trust Company, National Association, as Trustee, dated as of June 22, 2022 (incorporated by reference to Exhibit 4.2 to Cleco Power LLC’s Current Report on Form 8-K dated June 22, 2022, File No. 001-05663).
10.1	Storm Recovery Property Servicing Agreement between Cleco Securitization I LLC and Cleco Power LLC, as Servicer, dated as of June 22, 2022 (incorporated by reference to Exhibit 10.1 to Cleco Power LLC’s Current Report on Form 8-K dated June 22, 2022, File No. 001-05663).
10.2	Storm Recovery Property Sale Agreement between Cleco Securitization I LLC and Cleco Power LLC, as Seller, dated as of June 22, 2022 (incorporated by reference to Exhibit 10.2 to Cleco Power LLC’s Current Report on Form 8-K dated June 22, 2022, File No. 001-05663).
10.3	Administration Agreement between Cleco Securitization I LLC and Cleco Power LLC, as Administrator, dated as of June 22, 2022 (incorporated by reference to Exhibit 10.3 to Cleco Power LLC’s Current Report on Form 8-K dated June 22, 2022, File No. 001-05663).
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)

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CLECO
CLECO POWER	2022 2ND 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/ Tonita Laprarie
	Tonita Laprarie
	Controller and Chief Accounting Officer

Date: August 10, 2022

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/ Tonita Laprarie
	Tonita Laprarie
	Controller and Chief Accounting Officer

Date: August 10, 2022

70

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 June 30, 2022, 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: August 10, 2022

/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 June 30, 2022, 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: August 10, 2022

/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 June 30, 2022, 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:  August 10, 2022

/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 June 30, 2022, 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: August 10, 2022

/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 June 30, 2022, 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:   August 10, 2022

/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 June 30, 2022, 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:  August 10, 2022

/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
June 30, 2022, 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:   August 10, 2022

/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
June 30, 2022, 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:  August 10, 2022

/s/ Kristin L. Guillory

Kristin L. Guillory
Chief Financial Officer

XML

Cover Page	6 Months Ended
	Jun. 30, 2022 shares
Entity Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2022
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	2022
Document Fiscal Period Focus	Q2
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

Cleco Condensed Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Operating revenue
Electric operations	$ 492,283	$ 351,936	$ 889,592	$ 718,181
Other operations	53,264	45,330	105,271	95,056
Gross operating revenue	545,547	397,266	994,863	813,237
Electric customer credits	(129)	(18,517)	(265)	(39,494)
Operating revenue, net	545,418	378,749	994,598	773,743
Operating expenses
Fuel used for electric generation	168,611	25,482	166,106	81,302
Purchased power	144,797	90,494	260,625	235,196
Other operations and maintenance	74,685	72,583	142,827	144,693
Depreciation and amortization	68,182	54,318	137,270	109,265
Taxes other than income taxes	15,422	11,886	31,870	33,003
Total operating expenses	471,697	254,763	738,698	603,459
Operating income	73,721	123,986	255,900	170,284
Interest income	1,241	829	1,997	1,475
Allowance for equity funds used during construction	808	1,105	1,740	1,991
Other expense, net	(8,473)	(3,970)	(8,663)	(7,002)
Interest charges
Interest charges, net	36,761	33,826	70,664	67,918
Allowance for borrowed funds used during construction	(354)	(535)	(737)	(735)
Total interest charges	36,407	33,291	69,927	67,183
Income before income taxes	30,890	88,659	181,047	99,565
Federal and state income tax expense	29,527	9,837	23,940	416
Net income	$ 1,363	$ 78,822	$ 157,107	$ 99,149

XML

Cleco Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Statement of Comprehensive Income [Abstract]
Net income	$ 1,363	$ 78,822	$ 157,107	$ 99,149
Other comprehensive income, net of tax
Postretirement benefits gain (loss), net of tax expense (benefit)	7	(420)	21	208
Total other comprehensive income (loss), net of tax	7	(420)	21	208
Comprehensive income, net of tax	$ 1,370	$ 78,402	$ 157,128	$ 99,357

XML

Cleco Condensed Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Statement of Comprehensive Income [Abstract]
Tax (expense) benefit of postretirement benefits gain (loss)	$ (2)	$ 148	$ (8)	$ (74)

XML

Cleco Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Current assets
Cash and cash equivalents	$ 130,878	$ 148,563
Restricted cash and cash equivalents	10,958	1,674
Customer accounts receivable (less allowance for credit losses)	114,743	91,869
Accounts receivable - affiliate	6,850	3,041
Other accounts receivable	49,415	27,818
Taxes receivable	0	564
Unbilled revenue	48,665	37,663
Fuel inventory, at average cost	100,856	68,838
Materials and supplies, at average cost	140,874	133,666
Energy risk management assets	71,550	43,479
Accumulated deferred fuel	93,376	56,826
Cash surrender value of company-/trust-owned life insurance policies	77,179	98,576
Prepayments	14,892	13,283
Regulatory assets	50,704	29,261
Other current assets	5,496	12,839
Total current assets	916,436	767,960
Property, plant, and equipment
Property, plant, and equipment	5,340,235	5,416,722
Accumulated depreciation	(861,368)	(700,991)
Net property, plant, and equipment	4,478,867	4,715,731
Construction work in progress	107,065	100,163
Total property, plant, and equipment, net	4,585,932	4,815,894
Equity investment in investee	2,072	2,072
Goodwill	1,490,797	1,490,797
Prepayments	28,086	21,598
Operating lease right of use assets	22,826	24,014
Restricted cash and cash equivalents	113,370	745
Note receivable	13,336	13,744
Regulatory assets	679,740	810,820
Energy risk management assets	80,560	50,962
Other deferred charges	43,785	44,177
Total assets	8,462,321	8,125,018
Current liabilities
Short-term debt	55,000	0
Long-term debt and finance leases due within one year	261,506	93,455
Accounts payable	218,464	167,886
Accounts payable - affiliate	10,633	51,297
Customer deposits	62,299	60,852
Provision for rate refund	5,978	5,682
Taxes payable	38,999	6,311
Interest accrued	15,668	15,203
Energy risk management liabilities	7,181	834
Regulatory liabilities	43,222	44,072
Deferred compensation	11,640	14,420
Other current liabilities	50,536	53,150
Total current liabilities	781,126	513,162
Long-term liabilities and deferred credits
Accumulated deferred federal and state income taxes, net	802,980	755,764
Postretirement benefit obligations	290,638	291,606
Regulatory liabilities - deferred taxes, net	22,635	51,472
Storm reserves	108,377	0
Deferred lease revenue	26,849	31,451
Intangible liabilities	16,476	18,997
Asset retirement obligations	69,948	69,667
Operating lease liabilities	19,972	21,128
Other deferred credits	31,115	27,582
Total long-term liabilities and deferred credits	1,388,990	1,267,667
Long-term debt and finance leases, net	3,313,759	3,390,033
Total liabilities	5,483,875	5,170,862
Commitments and contingencies (Note 13)
Member’s equity	2,978,446	2,954,156
Total liabilities and member’s equity	8,462,321	8,125,018
Storm recover property
Property, plant, and equipment
Intangible assets	415,946	0
Other
Property, plant, and equipment
Intangible assets	$ 69,435	$ 82,235

XML

Cleco Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Customer accounts receivable, allowance for credit losses	$ 1,190	$ 1,302

XML

Cleco Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2022		Jun. 30, 2021
Operating activities
Net income	$ 157,107		$ 99,149
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization	154,322		124,750
Provision for credit losses	1,210		2,486
Unearned compensation expense	2,380		3,749
Allowance for equity funds used during construction	(1,740)		(1,991)
Gain on risk management assets and liabilities, net	(89,991)		(48,242)
Deferred lease revenue	(4,603)		(4,603)
Deferred income taxes	17,522		5,425
Cash surrender value of company-/trust-owned life insurance	3,092		(5,545)
Changes in assets and liabilities
Accounts receivable	(49,606)		(18,826)
Accounts receivable, affiliate	(3,808)		(1,023)
Unbilled revenue	(11,002)		(4,181)
Fuel inventory and materials and supplies	(39,802)		(57,899)
Prepayments	(8,494)		(7,555)
Accounts payable	51,850		12,768
Accounts payable - affiliate	(40,664)		0
Customer deposits	6,034		6,286
Provision for merger commitments	(500)		(1,143)
Postretirement benefit obligations	(939)		1,959
Regulatory assets and liabilities, net	1,815		(17,608)
Deferred fuel recoveries	(38,992)		(48,321)
Other deferred accounts	(3,248)		(8,163)
Taxes accrued	32,616		19,220
Energy risk management collateral received	42,500		0
Other operating	(2,552)		(5,230)
Net cash provided by operating activities	174,507		45,462
Investing activities
Additions to property, plant, and equipment	(101,673)		(138,516)
Return of equity investment in investee	0		1,750
Return of investment in company-owned life insurance	15,671		0
Other investing	891		1,091
Net cash used in investing activities	(85,111)		(135,675)
Financing activities
Draws on revolving credit facility	55,000		100,000
Payments on revolving credit facility	0		(15,000)
Issuances of long-term debt	424,946		0
Repayment of long-term debt	(325,000)		0
Payment of financing costs	(6,913)		(2,674)
Distributions to member	(132,838)		0
Other financing	(367)		(332)
Net cash provided by financing activities	14,828		81,994
Net increase (decrease) in cash, cash equivalents, restricted cash, and restricted cash equivalents	104,224		(8,219)
Cash, cash equivalents, restricted cash, and restricted cash equivalents at beginning of period	150,982	[1]	90,265
Cash, cash equivalents, restricted cash, and restricted cash equivalents at end of period	255,206	[1]	82,046
Supplementary cash flow information
Interest paid, net of amount capitalized	64,035		62,947
Supplementary non-cash investing and financing activities
Accrued additions to property, plant, and equipment	5,626		3,547
Reduction in property, plant, and equipment due to securitization of capitalized storm costs	197,689		0
Accrued distribution from equity investment in investee	$ 0		$ 1,750

[1] (1) Includes cash and cash equivalents of $148,563, current restricted cash and cash equivalents of $1,674, and non-current restricted cash and cash equivalents of $745. (2) Includes cash and cash equivalents of $130,878, current restricted cash and cash equivalents of $10,958, and non-current restricted cash and cash equivalents of $113,370.

XML

Cleco Condensed Consolidated Statements of Cash Flows (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Statement of Cash Flows [Abstract]
Cash and cash equivalents	$ 130,878	$ 148,563
Restricted cash and cash equivalents, current	10,958	1,674
Restricted cash and cash equivalents, noncurrent	$ 113,370	$ 745

XML

Cleco Condensed Consolidated Statements of Changes in Member’s Equity (Unaudited) - USD ($) $ in Thousands	Total	CLECO POWER	MEMBERSHIP INTEREST	MEMBERSHIP INTEREST CLECO POWER	RETAINED EARNINGS	AOCI	AOCI CLECO POWER
Balances, beginning of period at Dec. 31, 2020	$ 2,757,023	$ 1,807,879	$ 2,454,276	$ 1,832,632	$ 328,543	$ (25,796)	$ (24,753)
Increase (Decrease) in Equity [Roll Forward]
Net income	99,149	45,846
Other comprehensive income (loss), net of tax	208	873
Balances, end of period at Jun. 30, 2021	2,856,380	1,854,598	2,454,276	1,878,478	427,692	(25,588)	(23,880)
Balances, beginning of period at Mar. 31, 2021	2,777,978	1,826,826	2,454,276	1,851,057	348,870	(25,168)	(24,231)
Increase (Decrease) in Equity [Roll Forward]
Net income	78,822	27,421		27,421	78,822
Other comprehensive income (loss), net of tax	(420)	351				(420)	351
Balances, end of period at Jun. 30, 2021	2,856,380	1,854,598	2,454,276	1,878,478	427,692	(25,588)	(23,880)
Balances, beginning of period at Dec. 31, 2021	2,954,156	1,948,537	2,454,276	1,966,720	523,509	(23,629)	(18,183)
Increase (Decrease) in Equity [Roll Forward]
Distributions to member	(132,838)				(132,838)
Net income	157,107	93,729		93,729	157,107
Other comprehensive income (loss), net of tax	21	739				21	739
Balances, end of period at Jun. 30, 2022	2,978,446	1,991,005	2,454,276	2,008,449	547,778	(23,608)	(17,444)
Balances, beginning of period at Mar. 31, 2022	3,099,914	1,987,930	2,454,276	2,005,744	669,253	(23,615)	(17,814)
Increase (Decrease) in Equity [Roll Forward]
Distributions to member	(122,838)				(122,838)
Net income	1,363	54,705		54,705	1,363
Other comprehensive income (loss), net of tax	7	370				7	370
Balances, end of period at Jun. 30, 2022	$ 2,978,446	$ 1,991,005	$ 2,454,276	$ 2,008,449	$ 547,778	$ (23,608)	$ (17,444)

XML

Cleco Power Condensed Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Operating revenue
Electric operations	$ 492,283	$ 351,936	$ 889,592	$ 718,181
Other operations	53,264	45,330	105,271	95,056
Affiliate revenue	0	0	0	0
Gross operating revenue	545,547	397,266	994,863	813,237
Electric customer credits	(129)	(18,517)	(265)	(39,494)
Operating revenue, net	545,418	378,749	994,598	773,743
Operating expenses
Fuel used for electric generation	168,611	25,482	166,106	81,302
Purchased power	144,797	90,494	260,625	235,196
Other operations and maintenance	74,685	72,583	142,827	144,693
Depreciation and amortization	68,182	54,318	137,270	109,265
Taxes other than income taxes	15,422	11,886	31,870	33,003
Total operating expenses	471,697	254,763	738,698	603,459
Operating income	73,721	123,986	255,900	170,284
Interest income	1,241	829	1,997	1,475
Allowance for equity funds used during construction	808	1,105	1,740	1,991
Other expense, net	(8,473)	(3,970)	(8,663)	(7,002)
Interest charges
Interest charges, net	36,761	33,826	70,664	67,918
Allowance for borrowed funds used during construction	(354)	(535)	(737)	(735)
Total interest charges	36,407	33,291	69,927	67,183
Income before income taxes	30,890	88,659	181,047	99,565
Federal and state income tax expense	29,527	9,837	23,940	416
Net income	1,363	78,822	157,107	99,149
CLECO POWER
Operating revenue
Electric operations	368,614	262,948	664,711	530,107
Other operations	18,686	16,269	37,771	34,895
Affiliate revenue	1,628	1,224	3,087	2,879
Gross operating revenue	388,928	280,441	705,569	567,881
Electric customer credits	(129)	(18,762)	(265)	(39,738)
Operating revenue, net	388,799	261,679	705,304	528,143
Operating expenses
Fuel used for electric generation	149,658	68,633	250,239	113,843
Purchased power	51,412	34,255	101,822	113,288
Other operations and maintenance	52,277	52,160	101,006	105,726
Depreciation and amortization	44,299	40,933	89,538	83,009
Taxes other than income taxes	11,547	7,314	24,178	23,816
Total operating expenses	309,193	203,295	566,783	439,682
Operating income	79,606	58,384	138,521	88,461
Interest income	1,035	825	1,775	1,468
Allowance for equity funds used during construction	808	1,105	1,740	1,991
Other expense, net	(2,225)	(5,700)	(4,261)	(9,958)
Interest charges
Interest charges, net	21,659	18,772	40,845	37,618
Allowance for borrowed funds used during construction	(354)	(535)	(737)	(735)
Total interest charges	21,305	18,237	40,108	36,883
Income before income taxes	57,919	36,377	97,667	45,079
Federal and state income tax expense	3,214	8,956	3,938	(767)
Net income	$ 54,705	$ 27,421	$ 93,729	$ 45,846

XML

Cleco Power Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Net income	$ 1,363	$ 78,822	$ 157,107	$ 99,149
Other comprehensive income, net of tax
Postretirement benefits gain (loss), net of tax expense (benefit)	7	(420)	21	208
Total other comprehensive income (loss), net of tax	7	(420)	21	208
Comprehensive income, net of tax	1,370	78,402	157,128	99,357
CLECO POWER
Net income	54,705	27,421	93,729	45,846
Other comprehensive income, net of tax
Postretirement benefits gain (loss), net of tax expense (benefit)	307	287	613	745
Amortization of interest rate derivatives to earnings	63	64	126	128
Total other comprehensive income (loss), net of tax	370	351	739	873
Comprehensive income, net of tax	$ 55,075	$ 27,772	$ 94,468	$ 46,719

XML

Cleco Power Condensed Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Tax (expense) benefit of postretirement benefits gain (loss)	$ (2)	$ 148	$ (8)	$ (74)
CLECO POWER
Tax (expense) benefit of postretirement benefits gain (loss)	(113)	(101)	(226)	(263)
Tax expense on amortization of interest rate derivatives to earnings	$ 23	$ 22	$ 46	$ 45

XML

Cleco Power Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Utility plant and equipment
Property, plant, and equipment	$ 5,340,235	$ 5,416,722
Accumulated depreciation	(861,368)	(700,991)
Net property, plant, and equipment	4,478,867	4,715,731
Construction work in progress	107,065	100,163
Total property, plant, and equipment, net	4,585,932	4,815,894
Current assets
Cash and cash equivalents	130,878	148,563
Restricted cash and cash equivalents	10,958	1,674
Customer accounts receivable (less allowance for credit losses)	114,743	91,869
Accounts receivable - affiliate	6,850	3,041
Other accounts receivable	49,415	27,818
Taxes receivable	0	564
Unbilled revenue	48,665	37,663
Fuel inventory, at average cost	100,856	68,838
Materials and supplies, at average cost	140,874	133,666
Energy risk management assets	71,550	43,479
Accumulated deferred fuel	93,376	56,826
Cash surrender value of company-/trust-owned life insurance policies	77,179	98,576
Prepayments	14,892	13,283
Regulatory assets	50,704	29,261
Other current assets	5,496	12,839
Total current assets	916,436	767,960
Equity investment in investee	2,072	2,072
Prepayments	28,086	21,598
Operating lease right of use assets	22,826	24,014
Restricted cash and cash equivalents	113,370	745
Note receivable	13,336	13,744
Regulatory assets	679,740	810,820
Other deferred charges	43,785	44,177
Total assets	8,462,321	8,125,018
Liabilities and member’s equity
Member’s equity	2,978,446	2,954,156
Long-term debt and finance leases, net	3,313,759	3,390,033
Current liabilities
Short-term debt	55,000	0
Long-term debt and finance leases due within one year	261,506	93,455
Accounts payable	218,464	167,886
Accounts payable - affiliate	10,633	51,297
Customer deposits	62,299	60,852
Provision for rate refund	5,978	5,682
Taxes payable	38,999	6,311
Interest accrued	15,668	15,203
Energy risk management liabilities	7,181	834
Regulatory liabilities	43,222	44,072
Other current liabilities	50,536	53,150
Total current liabilities	781,126	513,162
Commitments and contingencies (Note 13)
Long-term liabilities and deferred credits
Accumulated deferred federal and state income taxes, net	802,980	755,764
Postretirement benefit obligations	290,638	291,606
Regulatory liabilities - deferred taxes, net	22,635	51,472
Storm reserves	108,377	0
Asset retirement obligations	69,948	69,667
Operating lease liabilities	19,972	21,128
Other deferred credits	31,115	27,582
Total long-term liabilities and deferred credits	1,388,990	1,267,667
Total liabilities and member’s equity	8,462,321	8,125,018
Storm recover property
Current assets
Intangible assets	415,946	0
CLECO POWER
Utility plant and equipment
Property, plant, and equipment	5,665,410	5,745,489
Accumulated depreciation	(2,032,562)	(1,919,766)
Net property, plant, and equipment	3,632,848	3,825,723
Construction work in progress	101,666	94,573
Total property, plant, and equipment, net	3,734,514	3,920,296
Current assets
Cash and cash equivalents	52,810	85,667
Restricted cash and cash equivalents	10,958	1,674
Customer accounts receivable (less allowance for credit losses)	58,462	48,551
Accounts receivable - affiliate	3,209	13,612
Other accounts receivable	30,015	21,931
Taxes receivable	328	0
Unbilled revenue	48,665	37,663
Fuel inventory, at average cost	78,233	46,121
Materials and supplies, at average cost	108,306	101,502
Energy risk management assets	10,857	5,515
Accumulated deferred fuel	93,376	56,826
Cash surrender value of company-/trust-owned life insurance policies	16,280	16,260
Prepayments	8,631	7,784
Regulatory assets	42,968	21,526
Other current assets	2,202	782
Total current assets	565,300	465,414
Equity investment in investee	2,072	2,072
Prepayments	1,336	1,243
Operating lease right of use assets	22,788	23,970
Restricted cash and cash equivalents	112,623	0
Note receivable	13,336	13,744
Regulatory assets	554,767	680,813
Other deferred charges	21,430	21,949
Total assets	5,444,112	5,129,501
Liabilities and member’s equity
Member’s equity	1,991,005	1,948,537
Long-term debt and finance leases, net	1,892,407	1,800,854
Total capitalization	3,883,412	3,749,391
Current liabilities
Short-term debt	55,000	0
Long-term debt and finance leases due within one year	28,985	25,755
Accounts payable	144,713	114,493
Accounts payable - affiliate	10,383	69,729
Customer deposits	62,299	60,852
Provision for rate refund	5,978	5,682
Taxes payable	30,126	5,494
Interest accrued	5,536	5,080
Energy risk management liabilities	719	597
Regulatory liabilities	43,222	44,072
Other current liabilities	29,389	23,467
Total current liabilities	416,350	355,221
Commitments and contingencies (Note 13)
Long-term liabilities and deferred credits
Accumulated deferred federal and state income taxes, net	741,773	707,479
Postretirement benefit obligations	206,150	205,214
Regulatory liabilities - deferred taxes, net	22,635	51,472
Storm reserves	108,377	0
Asset retirement obligations	19,519	19,456
Operating lease liabilities	19,950	21,100
Other deferred credits	25,946	20,168
Total long-term liabilities and deferred credits	1,144,350	1,024,889
Total liabilities and member’s equity	5,444,112	5,129,501
CLECO POWER | Storm recover property
Current assets
Intangible assets	$ 415,946	$ 0

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Cleco Power Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Customer accounts receivable, allowance for credit losses	$ 1,190	$ 1,302
CLECO POWER
Customer accounts receivable, allowance for credit losses	$ 1,190	$ 1,302

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Cleco Power Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2022		Jun. 30, 2021
Operating activities
Net income	$ 157,107		$ 99,149
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization	154,322		124,750
Provision for credit losses	1,210		2,486
Unearned compensation expense	2,380		3,749
Allowance for equity funds used during construction	(1,740)		(1,991)
Deferred income taxes	17,522		5,425
Changes in assets and liabilities
Accounts receivable	(49,606)		(18,826)
Accounts receivable, affiliate	(3,808)		(1,023)
Unbilled revenue	(11,002)		(4,181)
Fuel inventory and materials and supplies	(39,802)		(57,899)
Accounts payable	51,850		12,768
Accounts payable - affiliate	(40,664)		0
Customer deposits	6,034		6,286
Postretirement benefit obligations	(939)		1,959
Regulatory assets and liabilities, net	1,815		(17,608)
Deferred fuel recoveries	(38,992)		(48,321)
Other deferred accounts	(3,248)		(8,163)
Taxes accrued	32,616		19,220
Other operating	(2,552)		(5,230)
Net cash provided by operating activities	174,507		45,462
Investing activities
Additions to property, plant, and equipment	(101,673)		(138,516)
Return of equity investment in investee	0		1,750
Other investing	891		1,091
Net cash used in investing activities	(85,111)		(135,675)
Financing activities
Draws on revolving credit facility	55,000		100,000
Payments on revolving credit facility	0		(15,000)
Issuances of long-term debt	424,946		0
Repayment of long-term debt	(325,000)		0
Payment of financing costs	(6,913)		(2,674)
Distributions to member	(132,838)		0
Other financing	(367)		(332)
Net cash provided by financing activities	14,828		81,994
Net increase (decrease) in cash, cash equivalents, restricted cash, and restricted cash equivalents	104,224		(8,219)
Cash, cash equivalents, restricted cash, and restricted cash equivalents at beginning of period	150,982	[1]	90,265
Cash, cash equivalents, restricted cash, and restricted cash equivalents at end of period	255,206	[1]	82,046
Supplementary cash flow information
Interest paid, net of amount capitalized	64,035		62,947
Supplementary non-cash investing and financing activities
Accrued additions to property, plant, and equipment	5,626		3,547
Reduction in property, plant, and equipment due to securitization of capitalized storm costs	197,689		0
Accrued distribution from equity investment in investee	0		1,750
CLECO POWER
Operating activities
Net income	93,729		45,846
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization	93,589		85,844
Provision for credit losses	1,210		2,486
Unearned compensation expense	356		1,063
Allowance for equity funds used during construction	(1,740)		(1,991)
Deferred income taxes	4,334		(8,424)
Changes in assets and liabilities
Accounts receivable	(23,192)		(11,775)
Accounts receivable, affiliate	11,978		3,368
Unbilled revenue	(11,002)		(4,181)
Fuel inventory and materials and supplies	(39,493)		(58,627)
Accounts payable	29,774		30,625
Accounts payable - affiliate	(58,837)		(1,763)
Customer deposits	6,034		6,286
Postretirement benefit obligations	202		1,661
Regulatory assets and liabilities, net	821		(18,602)
Deferred fuel recoveries	(38,992)		(48,321)
Other deferred accounts	1,340		(5,063)
Taxes accrued	23,668		30,062
Other operating	(3,109)		(7,969)
Net cash provided by operating activities	90,670		40,525
Investing activities
Additions to property, plant, and equipment	(98,162)		(132,194)
Return of equity investment in investee	0		1,750
Other investing	869		1,091
Net cash used in investing activities	(97,293)		(129,353)
Financing activities
Draws on revolving credit facility	55,000		100,000
Payments on revolving credit facility	0		(15,000)
Issuances of long-term debt	424,946		0
Repayment of long-term debt	(325,000)		0
Payment of financing costs	(6,906)		(1,515)
Distributions to member	(52,000)		0
Other financing	(367)		(332)
Net cash provided by financing activities	95,673		83,153
Net increase (decrease) in cash, cash equivalents, restricted cash, and restricted cash equivalents	89,050		(5,675)
Cash, cash equivalents, restricted cash, and restricted cash equivalents at beginning of period	87,341	[2]	29,391
Cash, cash equivalents, restricted cash, and restricted cash equivalents at end of period	176,391	[2]	23,716
Supplementary cash flow information
Interest paid, net of amount capitalized	35,480		33,973
Supplementary non-cash investing and financing activities
Accrued additions to property, plant, and equipment	5,345		2,814
Reduction in property, plant, and equipment due to securitization of capitalized storm costs	197,689		0
Accrued distribution from equity investment in investee	$ 0		$ 1,750

[1] (1) Includes cash and cash equivalents of $148,563, current restricted cash and cash equivalents of $1,674, and non-current restricted cash and cash equivalents of $745. (2) Includes cash and cash equivalents of $130,878, current restricted cash and cash equivalents of $10,958, and non-current restricted cash and cash equivalents of $113,370.

[2] (1) Includes cash and cash equivalents of $85,667 and current restricted cash and cash equivalents of $1,674. (2) Includes cash and cash equivalents of $52,810, current restricted cash and cash equivalents of $10,958, and non-current restricted cash and cash equivalents of $112,623.

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Cleco Power Condensed Consolidated Statements of Cash Flows (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Cash and cash equivalents	$ 130,878	$ 148,563
Restricted cash and cash equivalents, current	10,958	1,674
Restricted cash and cash equivalents, noncurrent	113,370	745
CLECO POWER
Cash and cash equivalents	52,810	85,667
Restricted cash and cash equivalents, current	10,958	1,674
Restricted cash and cash equivalents, noncurrent	$ 112,623	$ 0

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Cleco Power Condensed Consolidated Statements of Changes in Member’s Equity (Unaudited) - USD ($) $ in Thousands	Total	MEMBERSHIP INTEREST	AOCI	CLECO POWER	CLECO POWER MEMBERSHIP INTEREST	CLECO POWER AOCI
Balances, beginning of period at Dec. 31, 2020	$ 2,757,023	$ 2,454,276	$ (25,796)	$ 1,807,879	$ 1,832,632	$ (24,753)
Increase (Decrease) in Equity [Roll Forward]
Net income	99,149			45,846
Other comprehensive income (loss), net of tax	208			873
Balances, end of period at Jun. 30, 2021	2,856,380	2,454,276	(25,588)	1,854,598	1,878,478	(23,880)
Balances, beginning of period at Mar. 31, 2021	2,777,978	2,454,276	(25,168)	1,826,826	1,851,057	(24,231)
Increase (Decrease) in Equity [Roll Forward]
Net income	78,822			27,421	27,421
Other comprehensive income (loss), net of tax	(420)		(420)	351		351
Balances, end of period at Jun. 30, 2021	2,856,380	2,454,276	(25,588)	1,854,598	1,878,478	(23,880)
Balances, beginning of period at Dec. 31, 2021	2,954,156	2,454,276	(23,629)	1,948,537	1,966,720	(18,183)
Increase (Decrease) in Equity [Roll Forward]
Distributions to parent				(52,000)	(52,000)
Net income	157,107			93,729	93,729
Other comprehensive income (loss), net of tax	21		21	739		739
Balances, end of period at Jun. 30, 2022	2,978,446	2,454,276	(23,608)	1,991,005	2,008,449	(17,444)
Balances, beginning of period at Mar. 31, 2022	3,099,914	2,454,276	(23,615)	1,987,930	2,005,744	(17,814)
Increase (Decrease) in Equity [Roll Forward]
Distributions to parent				(52,000)	(52,000)
Net income	1,363			54,705	54,705
Other comprehensive income (loss), net of tax	7		7	370		370
Balances, end of period at Jun. 30, 2022	$ 2,978,446	$ 2,454,276	$ (23,608)	$ 1,991,005	$ 2,008,449	$ (17,444)

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Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2022

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.

In response to the COVID-19 pandemic, in March 2020 the LPSC issued an executive order prohibiting the disconnection of utilities for nonpayment. On December 4, 2020, Cleco Power made a filing with the LPSC requesting the recovery of expenses incurred as a result of this executive order, as well as the lost revenue associated with the disconnection fees and incremental costs. Cleco Power anticipates approval of the recovery of these expenses in the fourth quarter of 2022. At June 30, 2022, Cleco Power had a regulatory asset of $3.0 million recorded for expenses incurred related to the executive order, as allowed by the LPSC.

Cleco continues to assess the COVID-19 situation and cannot predict the full impact that COVID-19, or any significant related disruptions, will have on its business, cash flows, liquidity, financial condition, and results of operations.

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.

Following the formation of Cleco Securitization I and the closing of the storm securitization financing on June 22, 2022, Cleco Power became the primary beneficiary of Cleco Securitization I, and as a result, the financial statements of Cleco Securitization I are consolidated with the financial statements of Cleco Power. For additional information about

Cleco Securitization I, see Note 12 — “Variable Interest Entities.” For additional information about the storm securitization financing and its regulatory impacts, see Note 5 — “Regulatory Assets and Liabilities — Deferred Storm Restoration Costs” and Note 17 — “Storm Securitization and Cost Recovery.”

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, 2021.

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

Cleco
(THOUSANDS)	AT JUNE 30, 2022		AT DEC. 31, 2021
Current
Cleco Katrina/Rita storm recovery surcharge	$	1,677	$	1,674
Cleco Power’s storm restoration costs - Hurricane Ida	9,281		—
Total current	10,958		1,674
Non-current
Diversified Lands’ mitigation escrow	22		22
Cleco Cajun’s defense fund	725		723
Cleco Power’s future storm restoration costs	102,286		—
Cleco Power’s storm restoration costs - Hurricane Ida	6,091		—
Cleco Securitization I’s operating expenses and storm recovery bond issuance costs	4,246		—
Total non-current	113,370		745
Total restricted cash and cash equivalents	$	124,328	$	2,419

Cleco Power
(THOUSANDS)	AT JUNE 30, 2022		AT DEC. 31, 2021
Current
Cleco Katrina/Rita storm recovery surcharge	$	1,677	$	1,674
Storm restoration costs - Hurricane Ida	9,281		—
Total current	10,958		1,674
Non-current
Future storm restoration costs	102,286		—
Storm restoration costs - Hurricane Ida	6,091		—
Cleco Securitization I’s operating expenses and storm recovery bond issuance costs	4,246		—
Total non-current	112,623		—
Total restricted cash and cash equivalents	$	123,581	$	1,674

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 to be approved by the LPSC. On July 27, 2022, the LPSC approved this amount to be refunded to Cleco Power’s retail customers in September 2022.

On June 22, 2022, the storm securitization financing was completed. In connection with this financing, and as approved by the LPSC, newly funded storm reserves for future storm restoration costs and Hurricane Ida storm restoration costs were established at Cleco Power. The establishment of these reserves resulted in an increase in current and non-current restricted cash and cash equivalents of $9.3 million and $108.4 million, respectively. Additionally, restricted cash accounts were established for payment of Cleco Securitization I’s estimated operating expenses and storm recovery bond issuance costs resulting in an increase in non-current restricted cash and cash equivalents of $4.2 million. For more information on the storm securitization financing, see Note 17 — “Storm Securitization and Cost Recovery.”

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.

As a result of the market price volatility of natural gas experienced during the second quarter of 2022, Cleco expects significant increases to the pass-through fuel component of retail customer energy bills to be issued during subsequent quarters. Due to these increased customer fuel costs, along with the impacts of a 40-year high inflation rate, management expects to experience increases in credit loss reserves related to accounts receivable in future periods. However, these increases are not expected to be material to Cleco’s results of operations, financial condition, or cash flows.

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 JUNE 30, 2022						FOR THE SIX MONTHS ENDED JUNE 30, 2022
(THOUSANDS)	ACCOUNTS RECEIVABLE		OTHER*		TOTAL		ACCOUNTS RECEIVABLE		OTHER*		TOTAL
Beginning of period	$	1,002	$	1,638	$	2,640	$	1,302	$	1,638	$	2,940
Current period provision	819		—		819		1,210		—		1,210
Charge-offs	(916)		—		(916)		(2,005)		—		(2,005)
Recovery	285		—		285		683		—		683
Balances, June 30, 2022	$	1,190	$	1,638	$	2,828	$	1,190	$	1,638	$	2,828

* Loan held at Diversified Lands that was fully reserved for at December 31, 2020.

	FOR THE THREE MONTHS ENDED JUNE 30, 2021						FOR THE SIX MONTHS ENDED JUNE 30, 2021
(THOUSANDS)	ACCOUNTS RECEIVABLE		OTHER*		TOTAL		ACCOUNTS RECEIVABLE		OTHER*		TOTAL
Beginning of period	$	2,040	$	1,638	$	3,678	$	2,758	$	1,638	$	4,396
Current period provision	616		—		616		2,490		—		2,490
Charge-offs	(1,583)		—		(1,583)		(4,442)		—		(4,442)
Recovery	261		—		261		528		—		528
Balances, June 30, 2021	$	1,334	$	1,638	$	2,972	$	1,334	$	1,638	$	2,972

* Loan held at Diversified Lands that was fully reserved for at December 31, 2020.

Cleco Power
	FOR THE THREE MONTHS ENDED JUNE 30, 2022		FOR THE SIX MONTHS ENDED JUNE 30, 2022
(THOUSANDS)	ACCOUNTS RECEIVABLE
Beginning of period	$	1,002	$	1,302
Current period provision	819		1,210
Charge-offs	(916)		(2,005)
Recovery	285		683
Balance, June 30, 2022	$	1,190	$	1,190

	FOR THE THREE MONTHS ENDED JUNE 30, 2021		FOR THE SIX MONTHS ENDED JUNE 30, 2021
(THOUSANDS)	ACCOUNTS RECEIVABLE
Beginning of period	$	2,040	$	2,758
Current period provision	616		2,490
Charge-offs	(1,583)		(4,442)
Recovery	261		528
Balance, June 30, 2021	$	1,334	$	1,334

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Recent Authoritative Guidance

6 Months Ended

Jun. 30, 2022

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 in the event LIBOR is discontinued or deemed to no longer be representative, or prior to such events, at the option of Cleco and the administrative agent. 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 November 2021, FASB issued guidance requiring annual disclosures about government assistance with the objective of increasing transparency and reducing existing diversity in practice. This guidance requires disclosure of the types of assistance, an entity’s accounting for the assistance, and the effect of the assistance on the entity’s financial statements. This guidance is effective for annual periods beginning after December 15, 2021. Early adoption is permitted. Funding is being sought for relief of incurred storm costs. In addition, a congressional appropriation has been secured, subject to the U.S. Department of Energy’s grant process, to help offset future costs associated with Cleco Power’s Project Diamond Vault. Management will continue to monitor this activity to determine what, if any, disclosures are required. Management does not expect this guidance to have a significant impact on the results of operations, financial condition, or cash flows of the Registrants.

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Leases

6 Months Ended

Jun. 30, 2022

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 subsidiary 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 six months ended June 30, 2022, and 2021 was as follows:

	FOR THE THREE MONTHS ENDED JUNE 30,				FOR THE SIX MONTHS ENDED JUNE. 30,
(THOUSANDS)	2022		2021		2022		2021
Fixed payments	$	10,000	$	10,000	$	20,000	$	20,000
Variable payments	5,865		5,010		11,414		10,475
Amortization of deferred lease liability*	2,301		2,301		4,603		4,603
Total lease income	$	18,166	$	17,311	$	36,017	$	35,078

* 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 subsidiary 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 six months ended June 30, 2022, and 2021 was as follows:

	FOR THE THREE MONTHS ENDED JUNE 30,				FOR THE SIX MONTHS ENDED JUNE. 30,
(THOUSANDS)	2022		2021		2022		2021
Fixed payments	$	10,000	$	10,000	$	20,000	$	20,000
Variable payments	5,865		5,010		11,414		10,475
Amortization of deferred lease liability*	2,301		2,301		4,603		4,603
Total lease income	$	18,166	$	17,311	$	36,017	$	35,078

* 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 subsidiary 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 six months ended June 30, 2022, and 2021 was as follows:

	FOR THE THREE MONTHS ENDED JUNE 30,				FOR THE SIX MONTHS ENDED JUNE. 30,
(THOUSANDS)	2022		2021		2022		2021
Fixed payments	$	10,000	$	10,000	$	20,000	$	20,000
Variable payments	5,865		5,010		11,414		10,475
Amortization of deferred lease liability*	2,301		2,301		4,603		4,603
Total lease income	$	18,166	$	17,311	$	36,017	$	35,078

* 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

6 Months Ended

Jun. 30, 2022

Revenue from Contract with Customer [Abstract]

Revenue Recognition

Note 4 — Revenue Recognition

Operating revenue, net for the three and six months ended June 30, 2022, and 2021 was as follows:

	FOR THE THREE MONTHS ENDED JUNE 30, 2022
(THOUSANDS)	CLECO POWER			CLECO CAJUN			OTHER			ELIMINATIONS		TOTAL
Revenue from contracts with customers
Retail revenue
Residential (1)	$	131,813		$	—		$	—		$	—	$	131,813
Commercial (1)	84,336			—			—			—		84,336
Industrial (1)	50,188			—			—			—		50,188
Other retail (1)	4,297			—			—			—		4,297
Electric customer credits	(129)			—			—			—		(129)
Total retail revenue	270,505			—			—			—		270,505
Wholesale, net	91,934		(1)	126,089		(2)	(2,420)		(3)	—		215,603
Transmission, net	13,688			18,529			—			(2,136)		30,081
Other	4,998			—			—			—		4,998
Affiliate (4)	1,628			—			25,752			(27,380)		—
Total revenue from contracts with customers	382,753			144,618			23,332			(29,516)		521,187
Revenue unrelated to contracts with customers
Other	6,046		(5)	18,183		(6)	2			—		24,231
Total revenue unrelated to contracts with customers	6,046			18,183			2			—		24,231
Operating revenue, net	$	388,799		$	162,801		$	23,334		$	(29,516)	$	545,418

(1) Includes fuel recovery revenue.

(2) Includes $(3.6) million of amortization of intangible assets and liabilities related to Cleco Cajun’s wholesale power supply agreements.

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

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

(5) Realized gains associated with FTRs.

(6) Includes $15.9 million in lease revenue related to the Cottonwood Sale Leaseback and $2.3 million of deferred lease revenue amortization.

	FOR THE THREE MONTHS ENDED JUNE 30, 2021
(THOUSANDS)	CLECO POWER			CLECO CAJUN			OTHER			ELIMINATIONS		TOTAL
Revenue from contracts with customers
Retail revenue
Residential (1)	$	105,315		$	—		$	—		$	—	$	105,315
Commercial (1)	68,392			—			—			—		68,392
Industrial (1)	37,385			—			—			—		37,385
Other retail (1)	3,876			—			—			—		3,876
Electric customer credits	(19,054)			—			—			—		(19,054)
Total retail revenue	195,914			—			—			—		195,914
Wholesale, net	46,216		(1)	91,407		(2)	(2,420)		(3)	—		135,203
Transmission, net	13,313		(4)	13,573		(5)	—			(1,595)		25,291
Other	3,249			—			—			—		3,249
Affiliate (6)	1,224			—			26,120			(27,344)		—
Total revenue from contracts with customers	259,916			104,980			23,700			(28,939)		359,657
Revenue unrelated to contracts with customers
Other	1,763		(7)	17,326		(8)	1			2		19,092
Total revenue unrelated to contracts with customers	1,763			17,326			1			2		19,092
Operating revenue, net	$	261,679		$	122,306		$	23,701		$	(28,937)	$	378,749

(1) Includes fuel recovery revenue.

(2) Includes $(3.3) million of amortization of intangible assets and liabilities related to Cleco Cajun’s wholesale power supply agreements.

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

(4) Includes $0.3 million electric customer credits.

(5) Includes $0.2 million electric customer credits.

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

(7) Realized gains associated with FTRs.

(8) Includes $15.0 million in lease revenue related to the Cottonwood Sale Leaseback and $2.3 million of deferred lease revenue amortization.

	FOR THE SIX MONTHS ENDED JUNE 30, 2022
(THOUSANDS)	CLECO POWER			CLECO CAJUN			OTHER			ELIMINATIONS		TOTAL
Revenue from contracts with customers
Retail revenue
Residential (1)	$	244,236		$	—		$	—		$	—	$	244,236
Commercial (1)	160,870			—			—			—		160,870
Industrial (1)	96,462			—			—			—		96,462
Other retail (1)	8,426			—			—			—		8,426
Electric customer credits	(265)			—			—			—		(265)
Total retail revenue	509,729			—			—			—		509,729
Wholesale, net	147,298		(1)	229,722		(2)	(4,840)		(3)	—		372,180
Transmission, net	27,580			36,272			—			(4,827)		59,025
Other	10,191			—			1			—		10,192
Affiliate (4)	3,087			—			53,145			(56,232)		—
Total revenue from contracts with customers	697,885			265,994			48,306			(61,059)		951,126
Revenue unrelated to contracts with customers
Other	7,419		(5)	36,052		(6)	2			(1)		43,472
Total revenue unrelated to contracts with customers	7,419			36,052			2			(1)		43,472
Operating revenue, net	$	705,304		$	302,046		$	48,308		$	(61,060)	$	994,598

(1) Includes fuel recovery revenue.

(2) Includes $(7.2) million of amortization of intangible assets and liabilities related to Cleco Cajun’s wholesale power supply agreements.

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

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

(5) Realized gains associated with FTRs.

(6) Includes $31.4 million in lease revenue related to the Cottonwood Sale Leaseback and $4.6 million of deferred lease revenue amortization.

	FOR THE SIX MONTHS ENDED JUNE 30, 2021
(THOUSANDS)	CLECO POWER			CLECO CAJUN			OTHER			ELIMINATIONS		TOTAL
Revenue from contracts with customers
Retail revenue
Residential (1)	$	200,396		$	—		$	—		$	—	$	200,396
Commercial (1)	131,418			—			—			—		131,418
Industrial (1)	74,051			—			—			—		74,051
Other retail (1)	7,446			—			—			—		7,446
Electric customer credits	(40,030)			—			—			—		(40,030)
Total retail revenue	373,281			—			—			—		373,281
Wholesale, net	107,938		(1)	192,914		(2)	(4,840)		(3)	—		296,012
Transmission, net	27,295		(4)	28,830		(5)	—			(3,535)		52,590
Other	7,891			—			—			—		7,891
Affiliate (6)	2,879			—			53,276			(56,155)		—
Total revenue from contracts with customers	519,284			221,744			48,436			(59,690)		729,774
Revenue unrelated to contracts with customers
Other	8,859		(7)	35,108		(8)	2			—		43,969
Total revenue unrelated to contracts with customers	8,859			35,108			2			—		43,969
Operating revenue, net	$	528,143		$	256,852		$	48,438		$	(59,690)	$	773,743

(1) Includes fuel recovery revenue.

(2) Includes $(6.4) million of amortization of intangible assets and liabilities related to Cleco Cajun’s wholesale power supply agreements.

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

(4) Includes $0.3 million electric customer credits.

(5) Includes $0.2 million electric customer credits.

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

(7) Realized gains associated with FTRs.

(8) Includes $30.5 million in lease revenue related to the Cottonwood Sale Leaseback and $4.6 million of deferred lease revenue amortization.

Cleco and Cleco Power have unsatisfied performance obligations under contracts with cooperatives and municipalities with remaining durations ranging between 2 and 12 years that primarily relate to stand-ready obligations as part of fixed capacity minimums. At June 30, 2022, Cleco and Cleco Power had $58.5 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

6 Months Ended

Jun. 30, 2022

Regulated Operations [Abstract]

Regulatory Assets and Liabilities

Note 5 — Regulatory Assets and Liabilities

Cleco Power recognizes an asset for certain costs capitalized or deferred for recovery from customers and recognizes a liability for amounts expected to be returned to customers or collected for future expected costs. Cleco Power records these assets and liabilities 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 JUNE 30, 2022		AT DEC. 31, 2021
Regulatory assets
Acadia Unit 1 acquisition costs	$	1,860	$	1,913	17.5
Accumulated deferred fuel (1)	93,376		56,826		Various
Affordability study	12,405		13,094		9
AFUDC equity gross-up	65,025		66,574		Various	(2)
AMI deferred revenue requirement	1,772		2,045		3.75
AROs (1)(8)	16,148		15,141
Bayou Vista to Segura transmission project deferred revenue requirement	5,020		1,392		1
Coughlin transaction costs	830		845		27
COVID-19 executive order (8)	2,953		2,953
Deferred storm restoration costs - Hurricane Delta (6)	768		17,113
Deferred storm restoration costs - Hurricane Ida (7)	9,281		37,617
Deferred storm restoration costs - Hurricane Laura (6)	2,437		54,282
Deferred storm restoration costs - Hurricane Zeta (6)	148		3,296
Deferred storm restoration costs - Winter Storms Uri & Viola	—		1,912
Dolet Hills Power Station closure costs (8)	145,892		145,844
Energy efficiency	940		1,645		0.75
Financing costs (1)	6,641		6,826		Various	(3)
Interest costs	3,334		3,459		Various	(2)
Lignite Mine closure costs (8)	135,176		136,980
Madison Unit 3 property taxes (8)	12,993		8,362
Non-service cost of postretirement benefits	14,033		12,950		Various	(2)
Other assets	10,129		11,224		Various
Postretirement costs	111,607		117,773		Various	(4)
Production operations and maintenance expenses	9,757		11,058		Various	(5)
Rodemacher Unit 2 deferred costs (8)	9,780		6,931
St. Mary Clean Energy Center	5,219		6,089		3
Training costs	5,852		5,929		37.5
Tree trimming costs	7,735		9,092		2.75
Total regulatory assets	691,111		759,165
Regulatory liabilities
Deferred taxes, net	(65,857)		(95,544)		Various
Storm reserves	(117,658)		—
Total regulatory liabilities	(183,515)		(95,544)
Total regulatory assets, net	$	507,596	$	663,621
(1) Represents regulatory assets for past expenditures that were not earning a return on investment at June 30, 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 17 — “Storm Restoration and Cost Recovery.” (7) Currently not in a recovery period. The balance remaining represents amounts under a prudency review by the LPSC. (8) Currently not in a recovery period.

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

Cleco
(THOUSANDS)	AT JUNE 30, 2022		AT DEC. 31, 2021
Total Cleco Power regulatory assets, net	$	507,596	$	663,621
2016 Merger adjustments *
Fair value of long-term debt	108,449		112,150
Postretirement costs	12,430		13,424
Financing costs	7,076		7,248
Debt issuance costs	4,754		4,920
Total Cleco regulatory assets, net	$	640,305	$	801,363

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

Deferred Storm Restoration Costs

In 2020 and 2021, Cleco Power’s distribution and transmission systems sustained damage from four separate hurricanes, Hurricanes Laura, Delta, Zeta, and Ida, and two severe winter storms, Winter Storms Uri and Viola. Cleco Power established a separate regulatory asset to track and defer non-capital expenses associated with each corresponding storm, as approved by the LPSC.

On June 22, 2022, through Cleco Securitization I, Cleco Power completed a securitized financing of Storm Recovery Property, which included the previously mentioned storm restoration costs that were deferred as regulatory assets. In connection with that securitization financing, Cleco Securitization I used the net proceeds from its issuance of senior secured storm recovery bonds to purchase the Storm Recovery Property from Cleco Power. The costs remaining at June 30, 2022, for Hurricanes Laura, Delta, and Zeta are being recovered through the interim storm recovery rate and are expected to be fully recovered by September 1, 2022. The costs remaining at June 30, 2022, for Hurricane Ida are currently under a prudency review by the LPSC. Cleco Power is unable to determine the outcome or timing of such review. For more information on the storm securitization financing, see Note 17 — “Storm Securitization and Cost Recovery.”

Storm Reserves

On June 22, 2022, in conjunction with the storm securitization financing and pursuant to the financing order issued by the LPSC on April 1, 2022, newly funded storm reserves for future storm restoration costs and Hurricane Ida storm restoration costs were established. At June 30, 2022, Cleco Power had a balance of $102.3 million related to the storm reserve for future storm restoration costs. Upon securitization, Cleco Power withdrew $79.6 million from the LPSC-approved Hurricane Ida storm reserve which left a balance of $15.4 million at June 30, 2022. The current portion of the Hurricane Ida reserve of $9.3 million, which is reflected in Other current liabilities on Cleco’s and Cleco Power’s Condensed Consolidated Balance Sheets, represents those deferred storm costs recorded in the related Hurricane Ida regulatory asset that are currently under a prudency review by the LPSC.

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Fair Value Accounting and Financial Instruments

6 Months Ended

Jun. 30, 2022

Fair Value Disclosures [Abstract]

Fair Value Accounting and Financial Instruments

Note 6 — Fair Value Accounting and Financial Instruments

The amounts reflected on Cleco’s and Cleco Power’s Condensed Consolidated Balance Sheets at June 30, 2022, and December 31, 2021, 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’s and Cleco Power’s financial instruments not measured at fair value on Cleco’s and Cleco Power’s Condensed Consolidated Balance Sheets:

Cleco
	AT JUNE 30, 2022				AT DEC. 31, 2021
(THOUSANDS)	CARRYING VALUE*		FAIR VALUE		CARRYING VALUE*		FAIR VALUE
Long-term debt	$	3,578,803	$	3,427,506	$	3,482,405	$	3,752,220

* The carrying value of long-term debt does not include deferred issuance costs of $17.5 million at
June 30, 2022, and $13.2 million at December 31, 2021.

Cleco Power
	AT JUNE 30, 2022				AT DEC. 31, 2021
(THOUSANDS)	CARRYING VALUE*		FAIR VALUE		CARRYING VALUE*		FAIR VALUE
Long-term debt	$	1,920,354	$	1,944,134	$	1,820,254	$	2,085,944

* The carrying value of long-term debt does not include deferred issuance costs of $13.0 million at
June 30, 2022, and $7.9 million at December 31, 2021.

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 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. Therefore, Cleco elects not to apply hedge accounting, as allowed by accounting guidance, to its commodity-related derivatives. 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 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 six months ended June 30, 2022, and the year ended December 31, 2021, Cleco did not experience any transfers into or out of Level 3 of 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 JUNE 30, 2022		QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1)		SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2)		SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3)		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)
Asset description
Money market funds	$	227,618	$	227,618	$	—	$	—	$	145,033	$	145,033	$	—	$	—
FTRs	11,863		—		—		11,863		6,977		—		—		6,977
Natural gas derivatives*	140,247		—		140,247		—		87,464		—		87,464		—
Total assets	$	379,728	$	227,618	$	140,247	$	11,863	$	239,474	$	145,033	$	87,464	$	6,977
Liability description
FTRs	$	7,181	$	—	$	—	$	7,181	$	834	$	—	$	—	$	834
Total liabilities	$	7,181	$	—	$	—	$	7,181	$	834	$	—	$	—	$	834

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

Cleco Power
	FAIR VALUE MEASUREMENTS AT REPORTING DATE
(THOUSANDS)	AT JUNE 30, 2022		QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1)		SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2)		SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3)		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)
Asset description
Money market funds	$	149,897	$	149,897	$	—	$	—	$	82,411	$	82,411	$	—	$	—
FTRs	10,857		—		—		10,857		5,515		—		—		5,515
Total assets	$	160,754	$	149,897	$	—	$	10,857	$	87,926	$	82,411	$	—	$	5,515
Liability description
FTRs	$	719	$	—	$	—	$	719	$	597	$	—	$	—	$	597
Total liabilities	$	719	$	—	$	—	$	719	$	597	$	—	$	—	$	597

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 JUNE 30,				FOR THE SIX MONTHS ENDED JUNE 30,
(THOUSANDS)	2022		2021		2022		2021
Beginning balance	$	515	$	1,023	$	6,143	$	3,180
Unrealized (losses) gains*	(669)		(1,005)		(1,025)		15,155
Purchases	6,774		9,958		7,066		10,806
Settlements	(1,938)		(2,475)		(7,502)		(21,640)
Ending balance	$	4,682	$	7,501	$	4,682	$	7,501
* 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 JUNE 30,				FOR THE SIX MONTHS ENDED JUNE 30,
(THOUSANDS)	2022		2021		2022		2021
Beginning balance	$	567	$	1,088	$	4,918	$	3,216
Unrealized gains (losses)*	4,267		(402)		4,267		(402)
Purchases	6,577		7,768		6,869		8,616
Settlements	(1,273)		(2,464)		(5,916)		(5,440)
Ending balance	$	10,138	$	5,990	$	10,138	$	5,990
* Unrealized gains (losses) 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 June 30, 2022, and December 31, 2021:

Cleco
	FAIR VALUE				VALUATION TECHNIQUE	SIGNIFICANT UNOBSERVABLE INPUTS	FORWARD PRICE RANGE
(THOUSANDS, EXCEPT FORWARD PRICE RANGE)	ASSETS		LIABILITIES				LOW		HIGH
FTRs at June 30, 2022	$	11,863	$	7,181	RTO auction pricing	FTR price - per MWh	$	(14.97)	$	19.75
FTRs at Dec. 31, 2021	$	6,977	$	834	RTO auction pricing	FTR price - per MWh	$	(3.94)	$	9.25

Cleco Power
	FAIR VALUE				VALUATION TECHNIQUE	SIGNIFICANT UNOBSERVABLE INPUTS	FORWARD PRICE RANGE
(THOUSANDS, EXCEPT FORWARD PRICE RANGE)	ASSETS		LIABILITIES				LOW		HIGH
FTRs at June 30, 2022	$	10,857	$	719	RTO auction pricing	FTR price - per MWh	$	(6.61)	$	19.75
FTRs at Dec. 31, 2021	$	5,515	$	597	RTO auction pricing	FTR price - per MWh	$	(4.91)	$	9.25

Concentrations of Credit Risk

At June 30, 2022, 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 money market funds in cash and cash equivalents and restricted cash and cash equivalents as recorded on Cleco’s and Cleco Power’s Condensed Consolidated Balance Sheets at June 30, 2022, and December 31, 2021:

Cleco
(THOUSANDS)	AT JUNE 30, 2022		AT DEC. 31, 2021
Cash and cash equivalents	$	125,311	$	145,011
Non-current restricted cash and cash equivalents	$	102,307	$	22

Cleco Power
(THOUSANDS)	AT JUNE 30, 2022		AT DEC. 31, 2021
Cash and cash equivalents	$	47,611	$	82,411
Non-current restricted cash and cash equivalents	$	102,286	$	—

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 1 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. government 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.

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 enters into master agreements with counterparties that govern the risk of credit default and allow for collateralization above prenegotiated uncollateralized thresholds to help mitigate potential losses. Alternatively, 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, changes in the amounts counterparties owe to Cleco, and any prenegotiated unsecured thresholds agreed to in the master contract. 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. 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 June 30, 2022, and December 31, 2021:

Cleco
	DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS
		AT JUNE 30, 2022
				GROSS AMOUNTS OFFSET ON THE BALANCE SHEET		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		CASH COLLATERAL		NET ASSET (LIABILITY) ON THE BALANCE SHEET		COLLATERAL		NET AMOUNT
Commodity-related contracts
FTRs
Current	Energy risk management assets	$	11,863	$	—	$	—	$	11,863	$	—	$	11,863
Current	Energy risk management liabilities	(7,181)		—		—		(7,181)		—		(7,181)
Natural gas derivatives
Current	Energy risk management assets	85,708		(2,497)		(23,524)		59,687		(62,184)		(2,497)
Non-current	Energy risk management assets	99,536		—		(18,976)		80,560		(44,308)		36,252
Current	Energy risk management liabilities	(2,497)		2,497		—		—		—		—
Commodity-related contracts, net		$	187,429	$	—	$	(42,500)	$	144,929	$	(106,492)	$	38,437

(1) Represents letters of credit by counterparties.

Cleco
	DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS
		AT DEC. 31, 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		NET ASSET (LIABILITY) ON THE BALANCE SHEET		COLLATERAL		NET AMOUNT
Commodity-related contracts
FTRs
Current	Energy risk management assets	$	6,977	$	—	$	6,977	$	—	$	6,977
Current	Energy risk management liabilities	(834)		—		(834)		—		(834)
Natural gas derivatives
Current	Energy risk management assets	37,061		(559)		36,502		(15,000)		21,502
Non-current	Energy risk management assets	50,962		—		50,962		—		50,962
Current	Energy risk management liabilities	(559)		559		—		—		—
Commodity-related contracts, net		$	93,607	$	—	$	93,607	$	(15,000)	$	78,607

(1) Represents letters of credit by counterparties.

Cleco Power
	DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS
(THOUSANDS)	BALANCE SHEET LINE ITEM	AT JUNE 30, 2022		AT DEC. 31, 2021
Commodity-related contracts
FTRs
Current	Energy risk management assets	$	10,857	$	5,515
Current	Energy risk management liabilities	(719)		(597)
Commodity-related contracts, net		$	10,138	$	4,918

At June 30, 2022, cash collateral received from counterparties and held by Cleco was $42.5 million, of which

$23.5 million was netted against the current portion of Energy risk management assets on Cleco’s Condensed Consolidated Balance Sheet and $19.0 million was netted against the non-current portion of Energy risk management assets on Cleco’s Condensed Consolidated Balance Sheet. At December 31, 2021, there was no cash collateral posted with or received from counterparties that was netted on Cleco’s Condensed Consolidated Balance Sheet.

The following tables present the effect of derivatives not designated as hedging instruments on Cleco’s and Cleco Power’s Condensed Consolidated Statements of Income for the three and six months ended June 30, 2022, and 2021:

Cleco
	AMOUNT OF GAIN(LOSS) ON DERIVATIVES RECOGNIZED IN INCOME
		FOR THE THREE MONTHS ENDED JUNE 30,					FOR THE SIX MONTHS ENDED JUNE 30,
(THOUSANDS)	INCOME STATEMENT LINE ITEM	2022		2021			2022		2021
Commodity-related contracts
FTRs(1)	Electric operations	$	6,080	$	1,763		$	7,663	$	9,207
FTRs(1)	Purchased power	(11,689)		(3,168)		(2)	(9,966)		(8,972)		(2)
Natural gas derivatives	Fuel used for electric generation	37,416		51,683		(2)	165,888		57,897		(2)
Total		$	31,807	$	50,278		$	163,585	$	58,132

(1) For the three and six months ended June 30, 2022, unrealized gains associated with FTRs for Cleco Power of $4.3 million were reported through Accumulated deferred fuel on the balance sheet. For the three and six months ended June 30, 2021, unrealized losses associated with FTRs for Cleco Power of $0.4 million were reported through Accumulated deferred fuel on the balance sheet.

(2) Prior year balance has been revised to correct errors that were immaterial, both quantitatively and qualitatively, including incorrectly including parenthesis for natural gas derivatives for the three and six months ended June 30, 2021.

Cleco Power
	AMOUNT OF GAIN(LOSS) ON DERIVATIVES RECOGNIZED IN INCOME
		FOR THE THREE MONTHS ENDED JUNE 30,				FOR THE SIX MONTHS ENDED JUNE 30,
(THOUSANDS)	INCOME STATEMENT LINE ITEM	2022		2021		2022		2021
Commodity-related contracts
FTRs(1)	Electric operations	$	6,080	$	1,763	$	7,663	$	9,208
FTRs(1)	Purchased power	(1,846)		(1,233)		(3,083)		(8,414)
Total		$	4,234	$	530	$	4,580	$	794

(1) For the three and six months ended June 30, 2022, unrealized gains associated with FTRs of $4.3 million were reported through Accumulated deferred fuel on the balance sheet. For the three and six months ended June 30, 2021, unrealized losses associated with FTRs of $0.4 million were reported through Accumulated deferred fuel on the balance sheet.

The following tables present the volume of commodity-related derivative contracts outstanding at June 30, 2022, and December 31, 2021, for Cleco and Cleco Power:

Cleco
		TOTAL VOLUME OUTSTANDING
(THOUSAND)	UNIT OF MEASURE	AT JUNE 30, 2022	AT DEC. 31, 2021
Commodity-related contracts
FTRs	MWh	32,409	14,055
Natural gas derivatives	MMBtus	96,010	109,306

Cleco Power
		TOTAL VOLUME OUTSTANDING
(THOUSAND)	UNIT OF MEASURE	AT JUNE 30, 2022	AT DEC. 31, 2021
Commodity-related contracts
FTRs	MWh	19,852	8,899

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Debt

6 Months Ended

Jun. 30, 2022

Debt Disclosure [Abstract]

Debt

Note 7 — Debt

At June 30, 2022, Cleco Power had $55.0 million of outstanding borrowings under its $300.0 million revolving credit agreement at an all-in interest rate of 2.89%. The borrowing costs under the facility currently are equal to LIBOR plus 1.25% or ABR plus 0.25%, plus commitment fees of 0.15%.

On June 22, 2022, Cleco Securitization I issued $425.0 million aggregate principal amount of senior secured storm recovery bonds. The storm recovery bonds were issued in two tranches. One tranche of $125.0 million aggregate principal amount was issued with an interest rate of 4.016% and an expected weighted average life of 4.79 years. A second tranche of $300.0 million aggregate principal amount was issued with an interest rate of 4.646% and an expected weighted average life of 15 years. The bonds are governed by an indenture between Cleco Securitization I and the indenture trustee. The indenture contains certain covenants that restrict

Cleco Securitization I’s ability to sell, transfer, convey, exchange, or otherwise dispose of its assets. At June 30, 2022, $3.2 million of this newly issued debt was included in long-term debt due within one year on Cleco’s and Cleco Power’s Condensed Consolidated Balance Sheets. For more information on the storm securitization financing, see Note 17 — “Storm Securitization and Cost Recovery.”

On June 23, 2022, following the closing of the storm recovery bonds, Cleco Power redeemed its $325.0 million floating rate senior notes issued in September 2021 at par.

In May 2022, Cleco Holdings’ $165.0 million senior notes due May 2023 became due within one year. This amount is reflected in long-term debt due within one year on Cleco’s Condensed Consolidated Balance Sheet at June 30, 2022.

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Pension Plan and Employee Benefits

6 Months Ended

Jun. 30, 2022

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, 2021, management estimates that no contributions will be required until 2026, at which time $5.4 million of required pension contributions are expected. Cleco has not made, and does not expect to make, any contributions to the pension plan in 2022.

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’s and Cleco Power’s Condensed Consolidated Statements of Income. The components of net periodic pension and Other Benefits cost for the three and six months ended June 30, 2022, and 2021 were as follows:

	PENSION BENEFITS				OTHER BENEFITS
	FOR THE THREE MONTHS ENDED JUNE 30,				FOR THE THREE MONTHS ENDED JUNE 30,
(THOUSANDS)	2022		2021		2022		2021
Components of periodic benefit costs
Service cost	$	2,143	$	2,730	$	551	$	595
Interest cost	4,960		4,719		371		323
Expected return on plan assets	(6,177)		(5,698)		—		—
Amortizations
Net loss	3,083		5,607		303		384
Net periodic benefit cost	$	4,009	$	7,358	$	1,225	$	1,302

	PENSION BENEFITS				OTHER BENEFITS
	FOR THE SIX MONTHS ENDED JUNE 30,				FOR THE SIX MONTHS ENDED JUNE 30,
(THOUSANDS)	2022		2021		2022		2021
Components of periodic benefit costs
Service cost	$	4,293	$	5,258	$	1,102	$	1,190
Interest cost	9,920		9,334		742		645
Expected return on plan assets	(12,354)		(11,400)		—		—
Amortizations
Net loss	6,168		10,369		605		770
Net periodic benefit cost	$	8,027	$	13,561	$	2,449	$	2,605

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 six months ended June 30, 2022, was $0.8 million and $1.6 million, respectively. The expense of the pension plan related to Cleco’s other subsidiaries for the three and six months ended June 30, 2021, was $0.9 million and $1.8 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 six months ended June 30, 2022, was $1.1 million and $2.2 million, respectively. The expense related to other benefits reflected in Cleco Power’s Condensed Consolidated Statements of Income for the three and six months ended June 30, 2021, was $1.2 million and $2.4 million, respectively. The current and non-current portions of the Other Benefits liability for Cleco and Cleco Power at June 30, 2022, and December 31, 2021, were as follows:

Cleco
(THOUSANDS)	AT JUNE 30, 2022		AT DEC. 31, 2021
Current	$	5,181	$	5,181
Non-current	$	49,210	$	50,093

Cleco Power
(THOUSANDS)	AT JUNE 30, 2022		AT DEC. 31, 2021
Current	$	4,432	$	4,432
Non-current	$	38,634	$	39,315

SERP

Certain Cleco officers are covered by SERP. Cleco does not fund the SERP liability, but instead pays for current benefits out

of cash available of the respective company of the employed officer. Because the SERP is a non-qualified plan, Cleco has purchased life insurance policies on certain SERP participants as a mechanism to provide a source of funding. These policies are held in a rabbi trust formed by Cleco Power. The rabbi trust is the named beneficiary of the life insurance policies and, therefore, receives the proceeds upon the death of the insured participants. The life insurance policies may be used to reimburse Cleco for benefits paid from general funds, pay the SERP participants’ death benefits, or pay future SERP payments. Market conditions could have a significant impact on the cash surrender value of these life insurance policies. 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. 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’s and Cleco Power’s Condensed Consolidated Statements of Income. The components of the net periodic benefit cost related to SERP for the three and six months ended June 30, 2022, and 2021 were as follows:

	FOR THE THREE MONTHS ENDED JUNE 30,				FOR THE SIX MONTHS ENDED JUNE 30,
(THOUSANDS)	2022		2021		2022		2021
Components of periodic benefit costs
Service cost	$	57	$	61	$	113	$	116
Interest cost	670		644		1,340		1,269
Amortizations
Prior period service credit	(54)		(55)		(107)		(107)
Net loss (gain)	262		(401)		524		613
Net periodic benefit cost	$	935	$	249	$	1,870	$	1,891

The expense related to SERP reflected on Cleco Power’s Condensed Consolidated Statements of Income for the three and six months ended June 30, 2022, was $0.1 million and $0.3 million, respectively. The expense related to SERP

reflected on Cleco Power’s Condensed Consolidated Statements of Income for the three and six months ended June 30, 2021, was less than $0.1 million and $0.3 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 June 30, 2022, and December 31, 2021, were as follows:

Cleco
(THOUSANDS)	AT JUNE 30, 2022		AT DEC. 31, 2021
Current	$	4,654	$	4,654
Non-current	$	86,579	$	88,523

Cleco Power
(THOUSANDS)	AT JUNE 30, 2022		AT DEC. 31, 2021
Current	$	679	$	679
Non-current	$	12,667	$	12,909

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 six months ended June 30, 2022, and 2021 was as follows:

	FOR THE THREE MONTHS ENDED JUNE 30,				FOR THE SIX MONTHS ENDED JUNE 30,
(THOUSANDS)	2022		2021		2022		2021
401(k) Plan expense	$	1,831	$	2,120	$	4,422	$	4,880

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 six months ended June 30, 2022, and 2021 was as follows:

	FOR THE THREE MONTHS ENDED JUNE 30,				FOR THE SIX MONTHS ENDED JUNE 30,
(THOUSANDS)	2022		2021		2022		2021
401(k) Plan expense	$	847	$	946	$	2,169	$	2,326

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Income Taxes

6 Months Ended

Jun. 30, 2022

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 six months ended June 30, 2022, and 2021:

Cleco
	FOR THE THREE MONTHS ENDED JUNE 30,				FOR THE SIX MONTHS ENDED JUNE 30,
	2022		2021		2022		2021
Effective tax rate	95.6	%	11.1	%	13.2	%	0.4	%

Cleco Power
	FOR THE THREE MONTHS ENDED JUNE 30,				FOR THE SIX MONTHS ENDED JUNE 30,
	2022		2021		2022		2021
Effective tax rate	5.5	%	24.6	%	4.0	%	(1.7)	%

For Cleco, the effective income tax rates for the three and six months ended June 30, 2022, were different than the federal statutory rate primarily due to an adjustment to record tax expense at the projected annual effective tax rate largely caused by mark-to-market gains on Cleco Cajun’s gas-related derivatives, the amortization of excess ADIT, the flow through of state tax benefits, permanent deductions, and state tax expense.

For Cleco Power, the effective income tax rates for the three and six months ended June 30, 2022, were different than the federal statutory rate primarily due to the adjustment to record tax expense at the projected annual effective tax rate, the amortization of excess ADIT, the flow through of state tax benefits, and state tax expense.

For Cleco and Cleco Power, the effective income tax rates for the three and six months ended June 30, 2021, were different than the federal statutory rate primarily due to the amortization of excess ADIT, adjustment to record tax expense at the projected annual effective tax rate, 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. For the three and six months ended June 30, 2022, and 2021, Cleco and Cleco Power had no interest expense related to uncertain tax positions. At June 30, 2022, and December 31, 2021, Cleco and Cleco Power had no liability for uncertain tax positions or interest payable related to uncertain tax positions.

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 and 2019, 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 subject to examination by the Louisiana Department of Revenue.

Cleco classifies income tax penalties as a component of other expense. For the three and six months ended June 30, 2022, and 2021, 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.

At June 30, 2022, Cleco and Cleco Power had $3.0 million and $1.8 million, respectively, deferred in employer payroll tax

payments for the period March 27, 2020, through December 31, 2020, which will be paid by December 31, 2022.

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Disclosures about Segments

6 Months Ended

Jun. 30, 2022

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 June 30,
2022 (THOUSANDS)	CLECO POWER		CLECO CAJUN			TOTAL SEGMENTS
Revenue
Electric operations	$	368,614	$	126,089		$	494,703
Other operations	18,686		36,712			55,398
Affiliate revenue	1,628		—			1,628
Electric customer credits	(129)		—			(129)
Operating revenue, net	$	388,799	$	162,801		$	551,600
Net income (loss)	$	54,705	$	(932)		$	53,773
Add: Depreciation and amortization	44,299		23,219		(1)	67,518
Less: Interest income	1,035		176			1,211
Add: Interest charges	21,305		43			21,348
Add: Federal and state income tax expense (benefit)	3,214		(966)			2,248
EBITDA	$	122,488	$	21,188		$	143,676
(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.

2022 (THOUSANDS)	TOTAL SEGMENTS		OTHER			ELIMINATIONS		TOTAL
Revenue
Electric operations	$	494,703	$	(2,420)		$	—	$	492,283
Other operations	55,398		2			(2,136)		53,264
Affiliate revenue	1,628		25,752			(27,380)		—
Electric customer credits	(129)		—			—		(129)
Operating revenue, net	$	551,600	$	23,334		$	(29,516)	$	545,418
Depreciation and amortization	$	67,518	$	4,373	(1)	$	1	$	71,892
Interest income	$	1,211	$	53		$	(23)	$	1,241
Interest charges	$	21,348	$	15,081		$	(22)	$	36,407
Federal and state income tax expense (benefit)	$	2,248	$	27,280		$	(1)	$	29,527
Net income (loss)	$	53,773	$	(52,409)		$	(1)	$	1,363
(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.

2021 (THOUSANDS)	CLECO POWER		CLECO CAJUN			TOTAL SEGMENTS
Revenue
Electric operations	$	262,948	$	91,407		$	354,355
Other operations	16,269		30,655			46,924
Affiliate revenue	1,224		—			1,224
Electric customer credits	(18,762)		244			(18,518)
Operating revenue, net	$	261,679	$	122,306		$	383,985
Net income	$	27,421	$	52,494		$	79,915
Add: Depreciation and amortization	40,933		12,339		(1)	53,272
Less: Interest income	825		3			828
Add: Interest charges	18,237		(180)			18,057
Add: Federal and state income tax expense	8,956		18,063			27,019
EBITDA	$	94,722	$	82,713		$	177,435
(1) Includes $3.3 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	$	354,355	$	(2,420)		$	1	$	351,936
Other operations	46,924		1			(1,595)		45,330
Affiliate revenue	1,224		26,120			(27,344)		—
Electric customer credits	(18,518)		—			1		(18,517)
Operating revenue, net	$	383,985	$	23,701		$	(28,937)	$	378,749
Depreciation and amortization	$	53,272	$	4,427	(1)	$	—	$	57,699
Interest income	$	828	$	14		$	(13)	$	829
Interest charges	$	18,057	$	15,248		$	(14)	$	33,291
Federal and state income tax expense (benefit)	$	27,019	$	(17,182)		$	—	$	9,837
Net income (loss)	$	79,915	$	(1,093)		$	—	$	78,822
(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 Six Months Ended June 30,
2022 (THOUSANDS)	CLECO POWER		CLECO CAJUN			TOTAL SEGMENTS
Revenue
Electric operations	$	664,711	$	229,722		$	894,433
Other operations	37,771		72,324			110,095
Affiliate revenue	3,087		—			3,087
Electric customer credits	(265)		—			(265)
Operating revenue, net	$	705,304	$	302,046		$	1,007,350
Net income	$	93,729	$	92,449		$	186,178
Add: Depreciation and amortization	89,538		46,398		(2)	135,936
Less: Interest income	1,775		188			1,963
Add: Interest charges	40,108		35			40,143
Add: Federal and state income tax expense	3,938		32,674			36,612
EBITDA	$	225,538	$	171,368		$	396,906
Additions to property, plant, and equipment	$	98,162	$	2,839		$	101,001
Equity investment in investees (1)	$	2,072	$	—		$	2,072
Goodwill (1)	$	1,490,797	$	—		$	1,490,797
Total segment assets (1)	$	6,934,909	$	1,143,090		$	8,077,999
(1) Balances as of June 30, 2022. (2) Includes $7.2 million of amortization of intangible assets and liabilities related to wholesale power supply agreements and $(4.6) million of deferred lease revenue amortization as a result of the Cleco Cajun Transaction.

2022 (THOUSANDS)	TOTAL SEGMENTS		OTHER			ELIMINATIONS		TOTAL
Revenue
Electric operations	$	894,433	$	(4,840)		$	(1)	$	889,592
Other operations	110,095		3			(4,827)		105,271
Affiliate revenue	3,087		53,145			(56,232)		—
Electric customer credits	(265)		—			—		(265)
Operating revenue, net	$	1,007,350	$	48,308		$	(61,060)	$	994,598
Depreciation and amortization	$	135,936	$	8,752	(2)	$	1	$	144,689
Interest income	$	1,963	$	83		$	(49)	$	1,997
Interest charges	$	40,143	$	29,834		$	(50)	$	69,927
Federal and state income tax expense (benefit)	$	36,612	$	(12,672)		$	—	$	23,940
Net income (loss)	$	186,178	$	(29,070)		$	(1)	$	157,107
Additions to property, plant, and equipment	$	101,001	$	672		$	—	$	101,673
Equity investment in investees (1)	$	2,072	$	(185,901)		$	185,901	$	2,072
Goodwill (1)	$	1,490,797	$	—		$	—	$	1,490,797
Total segment assets (1)	$	8,077,999	$	373,804		$	10,518	$	8,462,321
(1) Balances as of June 30, 2022. (2) Includes $4.8 million of amortization of intangible assets related to Cleco Power’s wholesale power supply agreements as a result of the 2016 Merger.

2021 (THOUSANDS)	CLECO POWER		CLECO CAJUN			TOTAL SEGMENTS
Revenue
Electric operations	$	530,107	$	192,914		$	723,021
Other operations	34,895		63,694			98,589
Affiliate revenue	2,879		—			2,879
Electric customer credits	(39,738)		244			(39,494)
Operating revenue, net	$	528,143	$	256,852		$	784,995
Net income	$	45,846	$	66,975		$	112,821
Add: Depreciation and amortization	83,009		23,991		(2)	107,000
Less: Interest income	1,468		6			1,474
Add: Interest charges	36,883		(332)			36,551
Add: Federal and state income tax (benefit) expense	(767)		22,673			21,906
EBITDA	$	163,503	$	113,301		$	276,804
Additions to property, plant, and equipment	$	132,194	$	4,882		$	137,076
Equity investment in investees (1)	$	2,072	$	—		$	2,072
Goodwill (1)	$	1,490,797	$	—		$	1,490,797
Total segment assets (1)	$	6,620,298	$	1,104,090		$	7,724,388
(1) Balances as of December 31, 2021. (2) Includes $6.4 million of amortization of intangible assets and liabilities related to wholesale power supply agreements and $(4.6) million deferred lease revenue amortization as a result of the Cleco Cajun Transaction.

2021 (THOUSANDS)	TOTAL SEGMENTS		OTHER			ELIMINATIONS		TOTAL
Revenue
Electric operations	$	723,021	$	(4,840)		$	—	$	718,181
Other operations	98,589		2			(3,535)		95,056
Affiliate revenue	2,879		53,276			(56,155)		—
Electric customer credits	(39,494)		—			—		(39,494)
Operating revenue, net	$	784,995	$	48,438		$	(59,690)	$	773,743
Depreciation and amortization	$	107,000	$	8,862	(2)	$	—	$	115,862
Interest income	$	1,474	$	57		$	(56)	$	1,475
Interest charges	$	36,551	$	30,687		$	(55)	$	67,183
Federal and state income tax expense (benefit)	$	21,906	$	(21,490)		$	—	$	416
Net income (loss)	$	112,821	$	(13,672)		$	—	$	99,149
Additions to property, plant, and equipment	$	137,076	$	1,440		$	—	$	138,516
Equity investment in investees (1)	$	2,072	$	(46,901)		$	46,901	$	2,072
Goodwill (1)	$	1,490,797	$	—		$	—	$	1,490,797
Total segment assets (1)	$	7,724,388	$	619,101		$	(218,471)	$	8,125,018
(1) Balances as of December 31, 2021. (2) Includes $4.8 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 JUNE 30,				FOR THE SIX MONTHS ENDED JUNE 30,
(THOUSANDS)	2022		2021		2022		2021
Net income	$	1,363	$	78,822	$	157,107	$	99,149
Add: Depreciation and amortization	71,892		57,699		144,689		115,862
Less: Interest income	1,241		829		1,997		1,475
Add: Interest charges	36,407		33,291		69,927		67,183
Add: Federal and state income tax expense	29,527		9,837		23,940		416
Add: Other corporate costs and noncash items (1)	5,728		(1,385)		3,240		(4,331)
Total segment EBITDA	$	143,676	$	177,435	$	396,906	$	276,804
(1) Adjustments made for Other and Elimination totals not allocated to total segment EBITDA.

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Regulation and Rates

6 Months Ended

Jun. 30, 2022

Regulated Operations [Abstract]

Regulation and Rates

Note 11 — Regulation and Rates

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

(THOUSANDS)	AT JUN. 30, 2022		AT DEC. 31, 2021
Cleco Katrina/Rita storm recovery charges	$	1,614	$	1,611
FRP	$	1,230	$	1,229
Site-specific industrial customer	$	1,125	$	833
TCJA	$	2,057	$	2,057

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 June 30, 2022, 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. On July 27, 2022, the LPSC approved this amount to be refunded to Cleco Power’s retail customers in September 2022.

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. On June 16, 2021, the LPSC approved Cleco Power’s new FRP. 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. A monitoring report will be filed on or before October 31, 2022, for the 12 months ending June 30, 2022. Cleco Power’s next base rate case is expected to be filed with the LPSC on or before March 31, 2023.

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 retail rate plan. At June 30, 2022, 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 base rate case.

In 2020 and as a result of the delay in the rate case, the LPSC approved Cleco Power’s extension of 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 June 30, 2021. 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 June 30, 2022, Cleco Power had $2.1 million accrued for the remaining balance of federal tax-related benefits from the TCJA.

On June 16, 2021, the LPSC approved Cleco Power’s retail rate plan which includes the settlement of the TCJA protected and unprotected excess ADIT. Effective July 1, 2021, all retail customers continued 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 June 30, 2022, Cleco Power had $237.2 million accrued for the excess ADIT, of which $43.2 million is reflected in current regulatory liabilities.

SSR

In April 2017, MISO designated Teche Unit 3 as an SSR unit until such time that an appropriate alternative solution could be implemented to mitigate reliability issues. 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 filed an attachment Y with MISO requesting retirement of Teche Unit 3, barring any violations of specific applicable reliability standards. In December 2021, Cleco Power filed notice with the LPSC and MISO to suspend the retirement of Teche Unit 3. On March 15, 2022, Cleco Power refunded to MISO $4.3 million for capital expenditures paid for by third parties while operating under the SSR agreement.

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Variable Interest Entities

6 Months Ended

Jun. 30, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Variable Interest Entities

Note 12 — Variable Interest Entities

Cleco Securitization I

Cleco Securitization I is a special-purpose, wholly owned subsidiary of Cleco Power that was formed for the purpose of issuing storm recovery bonds to finance the securitization of Storm Recovery Property at Cleco Power. On June 22, 2022, the securitized financing was complete. Cleco Securitization I’s assets cannot be used to settle Cleco Power’s obligations and the holders of the storm recovery bonds have no recourse against Cleco Power. For more information about the securitization financing, see Note 17 – “Storm Securitization and Cost Recovery.”

Because Cleco Securitization I’s equity at risk is less than 1% of its total assets, it is considered to be a variable interest entity. Through its equity ownership interest and role as servicer, Cleco Power has the power to direct the most significant financial and operating activities of Cleco Securitization I, including billing, collections, and remittance of retail customer cash receipts to enable Cleco Securitization I to service the principal and interest payments due under the storm recovery bonds. Cleco Power also has the obligation to absorb losses up to its equity investment and rights to receive returns from Cleco Securitization I. Therefore, management has determined that Cleco Power is the primary beneficiary of Cleco Securitization I, and as a result, Cleco Securitization I is included in the consolidated financial statements of Cleco Power. No gain or loss was recognized upon initial consolidation.

The following table summarizes the impact of Cleco Securitization I on Cleco’s and Cleco Power’s Condensed Consolidated Balance Sheets:

(THOUSANDS)	AT JUNE 30, 2022
Restricted cash - current	$	4,246
Intangible asset - securitization	$	415,946
Long-term debt due within one year	$	3,204
Interest accrued	$	474
Long-term debt, net	$	414,871
Member’s equity	$	1,643

Oxbow

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’s 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’s 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 June 30, 2022, consisted of its equity investment of $2.1 million.

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

INCEPTION TO DATE (THOUSANDS)	AT JUNE 30, 2022		AT DEC. 31, 2021
Purchase price	$	12,873	$	12,873
Cash contributions	6,399		6,399
Distributions	(17,200)		(17,200)
Total equity investment in investee	$	2,072	$	2,072

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 JUNE 30, 2022		AT DEC. 31, 2021
Oxbow’s net assets/liabilities	$	4,145	$	4,145
Cleco Power’s 50% equity	$	2,072	$	2,072
Cleco Power’s maximum exposure to loss	$	2,072	$	2,072

The following table contains summarized financial information for Oxbow:

	FOR THE THREE MONTHS ENDED JUNE 30,				FOR THE SIX MONTHS ENDED JUNE 30,
(THOUSANDS)	2022		2021		2022		2021
Operating revenue	$	85	$	1,627	$	151	$	3,626
Operating expenses	85		1,627		151		3,626
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 billed Cleco Power its proportionate share of incurred lignite extraction and associated mining-related costs. Oxbow billed Cleco Power its proportionate share of incurred costs related to mineral rights and land leases. On October 6, 2020, Cleco Power and SWEPCO made a joint filing with the LPSC seeking authorization to close the Oxbow mine. At December 31, 2021, the Dolet Hills Power Station was retired, and all of Cleco Power’s proportionate share of lignite-related costs had been billed by DHLC and Oxbow. 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

6 Months Ended

Jun. 30, 2022

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 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 (the Bunkie Project). According to the petition filed by Gulf Coast in the 12th Judicial District Court for Avoyelles Parish, Louisiana, 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 12th Judicial District Court denied Cleco’s exception in December 2015, after considering briefs and arguments. In January 2016, Cleco appealed the 12th Judicial 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 12th Judicial 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 12th Judicial District Court lifted the stay at the request of Gulf Coast. The parties are currently participating in discovery.

Diversified Lands loaned $2.0 million to Gulf Coast for the Bunkie Project. The loan was secured by a mortgage on the Bunkie Project site. Diversified Lands foreclosed on the Bunkie property in February 2020 and has also asserted claims personally against the former owner of Gulf Coast. These claims are based on contracts and credit documents executed by Gulf Coast, the obligations and performance of which were personally guaranteed by the former owner of Gulf Coast. Diversified Lands is seeking recovery of the indebtedness still owed by Gulf Coast to Diversified Lands following the February 2020 foreclosure, which action has been consolidated with the litigation filed by Gulf Coast in the 12th Judicial District Court for Avoyelles Parish, Louisiana.

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 Corporation 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 appealed this decision.

On May 17, 2022, the Court of Appeal, 1st Circuit, ruled in favor of Cleco and affirmed the decision of the 16th Judicial District Court for St. Mary Parish with respect to Cleco. However, the 1st Circuit Court reversed the 16th Judicial District Court for St. Mary Parish’s decision dismissing Cabot Corporation from the St. Mary Parish case. All parties filed applications for rehearing, which were denied on June 29, 2022.

The Rapides Parish case remains stayed until the stay is lifted by further order of the Rapides Parish Court.

LPSC Audits and Reviews

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. On January 12, 2022, Cleco Power received a draft audit report from the LPSC indicating no material findings. Approval

of the draft report is expected in September 2022. 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 several data requests. Management is unable to determine the outcome or completion of the audit.

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. 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 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, 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 order specifically directed the EPA to consider issuing a proposed rule to suspend, revise, or rescind the rule. The EPA determined the most environmentally protective course is to implement the rules in the executive

order. On February 9, 2022, the EPA published in the Federal Register a proposed rule to revoke the agency’s May 2020 finding with respect to whether it is appropriate and necessary to regulate coal and oil-fired generating units under MATS, but the EPA has not yet acted on a review of the risk and technology determination from the May 2020 rule. 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.

Prudency Reviews

Lignite Mine Closure Costs

Cleco Power is seeking recovery for deferred fuel and other mine-related closure costs. Recovery of these costs is subject to a prudency review by the LPSC, which is currently in progress. Cleco Power believes these costs are prudent and recoverable. However, initial testimony by the LPSC Staff advisors filed in August 2022 indicates disagreement with the prudency of these incurred costs. Due to the nature and timing of the regulatory process, Cleco Power is currently unable to determine if any portion of the incurred costs will be disallowed for recovery.

St. Mary Clean Energy Center

In August 2019, the St. Mary Clean Energy Center was placed in service. The St. Mary Clean Energy Center is a partnership with Cabot Corporation, whereby Cleco Power generates power through waste heat recovered from Cabot Corporation’s carbon black manufacturing process. The planning and execution costs incurred to construct this facility are currently being recovered through Cleco Power’s base rates, which are subject to a prudency review by the LPSC. Cleco Power believes these costs are prudent and recoverable. However, initial testimony by the LPSC Staff advisors filed in May 2022 indicates disagreement with the prudency of a portion of the construction costs. Cleco Power has filed responses to the initial testimony related to this review. Due to the nature and timing of the regulatory process, Cleco Power is currently unable to determine if any portion of these costs will be disallowed for recovery.

South Central Generating

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 June 30, 2022, 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 June 30, 2022, believes the probable and reasonably estimable liabilities based on the eventual disposition of these matters are $8.2 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’s and Cleco Power’s Condensed Consolidated Balance Sheets because management has determined that Cleco’s 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 as a result of the transfer of Coughlin to Cleco Power. The maximum amount of the potential payment to Cleco Power and Cleco Holdings, 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 projected to be paid would be based on the forecasted loan and lease obligations to be incurred by DHLC, primarily for the reclamation of land used in DHLC’s mining operations prior to its termination of such operations or in support of such mining operations, and the fulfillment of DHLC’s mine closing and environmental obligations under its mining plan. As of June 30, 2022, Cleco Power does not expect any payments to be made under this guarantee. Cleco Power has the right to dispute the incurrence of such loan and lease obligations before their incurrence but cannot unreasonably withhold approval thereof. The Amended Lignite Mining Agreement does not affect the amount the Registrants can borrow under their credit facilities.

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 June 30, 2020, all lignite reserves intended to be extracted from the mines 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 costs in fuel and related ratemaking treatment. For more information on the joint filing, see “— Risks and Uncertainties.”

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.

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 CCR 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, in August 2020, the EPA published a final rule in the Federal Register that would set deadlines for costly modifications including retrofitting of clay-lined impoundments with compliant liners or closure of the impoundments. In November 2020, Cleco submitted demonstrations to the EPA specifying its intended course of action for the ash disposal facilities at Rodemacher Unit 2, Dolet Hills Power Station, and Big Cajun II in order to comply with the final CCR Rule. During 2021, additional information was submitted to the Louisiana Department of Environmental Quality to revise and update Cleco Power’s compliance strategy. On January 11, 2022, Cleco Power and Cleco Cajun

received communication from the EPA that the demonstrations have been deemed complete. However, the demonstrations are still subject to EPA approval based on pending technical reviews. At June 30, 2022, Cleco and Cleco Power had AROs of $74.6 million and $23.1 million, respectively. At December 31, 2021, Cleco and Cleco Power had AROs of $74.3 million and $23.0 million, respectively.

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 June 30, 2022, Cleco Cajun had indemnification assets totaling $22.5 million. The current portion of the indemnification asset of $1.1 million is reflected in Other current assets and the non-current portion of $21.4 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 fluctuate. Cleco Power and Cleco Cajun use FTRs to mitigate transmission congestion price risks. Recovery of these costs included in Cleco Power’s FAC is subject to, and may be disallowed as part of, a prudency review or a periodic fuel audit conducted by the LPSC.

The Dolet Hills Power Station was retired on December 31, 2021. On January 31, 2022, Cleco Power filed an application with the LPSC requesting recovery of stranded and decommissioning costs associated with the retirement of the Dolet Hills Power Station. On June 3, 2022, the Louisiana Electric Utility Energy Transition Securitization Act was passed into law. Through authorization of an LPSC financing order, this law enables Louisiana electric utilities to use securitization financing for certain energy transition costs, including mine closure costs and stranded costs. Such a securitization would create a contract right constituting incorporeal movable property of the right to bill and collect from Louisiana customers the costs of securitization.

At June 30, 2022, Cleco Power had $145.9 million deferred as a regulatory asset for stranded costs related to the Dolet Hills Power Station retirement. These costs are currently under a prudency review by the LPSC. Pending the outcome of the prudency review and under the terms of this new law, Cleco Power intends to seek a financing order in the first quarter of 2023 to securitize these stranded Dolet Hills Power Station closure costs.

On October 6, 2020, Cleco Power and SWEPCO made a joint filing with the LPSC seeking authorization to close the Oxbow mine. This filing also requested to include and defer certain accelerated mine closing costs in fuel and related rate-making treatment. Cleco Power has responded to several data requests related to the joint filing.

The expected early closure of the mines resulted in increased lignite costs. 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 June 30, 2022, Cleco Power had a regulatory asset of $135.2 million for deferred fuel and mine-related closure costs, which was included in the application filed on January 31, 2022. These costs are also under a prudency review by the LPSC. Pending the outcome of the prudency review and under the terms of the new securitization law mentioned above, Cleco Power intends to include the final costs in its filing for securitization. Cleco Power expects to make this filing in the first quarter of 2023. For more information on this prudency review, see “— Litigation — LPSC Audits and Reviews — Prudency Reviews — Lignite Mine Closure Costs.”

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Affiliate Transactions

6 Months Ended

Jun. 30, 2022

Related Party Transactions [Abstract]

Affiliate Transactions

Note 14 — Affiliate Transactions

At June 30, 2022, Cleco Holdings had an affiliate receivable of $6.9 million, primarily for estimated income taxes and franchise taxes paid on behalf of Cleco Group. At December 31, 2021, Cleco Holdings had an affiliate receivable of $3.0 million primarily for franchise taxes paid on behalf of Cleco Group. At June 30, 2022, and December 31, 2021, Cleco Holdings had an affiliate payable of $10.6 million and $51.3 million, respectively, 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 JUNE 30, 2022				AT DEC. 31, 2021
(THOUSANDS)	ACCOUNTS RECEIVABLE		ACCOUNTS PAYABLE		ACCOUNTS RECEIVABLE		ACCOUNTS PAYABLE
Cleco Holdings	$	207	$	285	$	10,347	$	59,627
Support Group	1,702		10,006		2,473		10,038
Cleco Cajun	1,300		92		792		64
Total	$	3,209	$	10,383	$	13,612	$	69,729

Of the affiliate payable balance at December 31, 2021, Cleco Power had $59.4 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. 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

6 Months Ended

Jun. 30, 2022

Intangible Assets And Liabilities Disclosure [Abstract]

Intangible Assets and Liabilities

Note 15 — Intangible Assets and Liabilities

Securitized Intangible

On June 22, 2022, Cleco Securitization I acquired the Storm Recovery Property from Cleco Power in the amount of

$415.9 million. The Storm Recovery Property is classified as a securitized intangible asset on Cleco’s and Cleco Power’s Condensed Consolidated Balance Sheets. This securitized intangible asset will be amortized over the estimated periods needed to collect the required amounts from Cleco Power’s customers to service Cleco Securitization I’s storm recovery bonds, currently estimated through September 2044. There was no amortization during the current period because collections from Cleco Power’s customers have not commenced. Collections will begin after the new storm surcharge becomes effective on September 1, 2022. At the end of its life, this securitized intangible asset will have no residual value. For additional information on Cleco Power’s storm costs and the securitization financing, see Note 5 — “Regulatory Assets and Liabilities,” Note 7 — “Debt,” and Note 17 — “Storm Securitization and Cost Recovery.”

Other Intangibles

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 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.

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 table presents Cleco’s amortization of other intangible assets and liabilities included in its Condensed Consolidated Income Statements:

Cleco
	FOR THE THREE MONTHS ENDED JUNE 30,				FOR THE SIX MONTHS ENDED JUNE 30,
(THOUSANDS)	2022		2021		2022		2021
Intangible assets
Trade name	$	—	$	64	$	—	$	128
Power supply agreements	$	6,400	$	6,400	$	12,800	$	12,800
Intangible liabilities
LTSA	$	871	$	871	$	1,742	$	1,742
Power supply agreements	$	389	$	718	$	778	$	1,600

The following table summarizes the balance of other intangible assets and liabilities subject to amortization for Cleco included in its Condensed Consolidated Balance Sheets:

Cleco
(THOUSANDS)	AT JUNE 30, 2022		AT DEC. 31, 2021
Intangible assets
Power supply agreements	$	184,004	$	184,004
Total intangible assets carrying amount	184,004		184,004
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		145,704
Accumulated amortization	(92,745)		(82,466)
Net intangible assets subject to amortization	$	52,959	$	63,238

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Accumulated Other Comprehensive Loss

6 Months Ended

Jun. 30, 2022

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 JUNE 30, 2022		FOR THE SIX MONTHS ENDED JUNE 30, 2022
(THOUSANDS)	POSTRETIREMENT BENEFIT NET LOSS
Balance, beginning of period	$	(23,615)	$	(23,629)
Amounts reclassified from AOCI
Amortization of postretirement benefit net loss	7		21
Balance, June 30, 2022	$	(23,608)	$	(23,608)

	FOR THE THREE MONTHS ENDED JUNE 30, 2021		FOR THE SIX MONTHS ENDED JUNE 30, 2021
(THOUSANDS)	POSTRETIREMENT BENEFIT NET LOSS
Balance, beginning of period	$	(25,168)	$	(25,796)
Amounts reclassified from AOCI
Amortization of postretirement benefit net (gain) loss	(420)		208
Balance, June 30, 2021	$	(25,588)	$	(25,588)

Cleco Power
	FOR THE THREE MONTHS ENDED JUNE 30, 2022						FOR THE SIX MONTHS ENDED JUNE 30, 2022
(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	$	(12,579)	$	(5,235)	$	(17,814)	$	(12,885)	$	(5,298)	$	(18,183)
Amounts reclassified from AOCI
Amortization of postretirement benefit net loss	307		—		307		613		—		613
Reclassification of net loss to interest charges	—		63		63		—		126		126
Balances, June 30, 2022	$	(12,272)	$	(5,172)	$	(17,444)	$	(12,272)	$	(5,172)	$	(17,444)

	FOR THE THREE MONTHS ENDED JUNE 30, 2021						FOR THE SIX MONTHS ENDED JUNE 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	$	(18,681)	$	(5,550)	$	(24,231)	$	(19,139)	$	(5,614)	$	(24,753)
Amounts reclassified from AOCI
Amortization of postretirement benefit net loss	287		—		287		745		—		745
Reclassification of net loss to interest charges	—		64		64		—		128		128
Balances, June 30, 2021	$	(18,394)	$	(5,486)	$	(23,880)	$	(18,394)	$	(5,486)	$	(23,880)

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Storm Securitization and Cost Recovery

6 Months Ended

Jun. 30, 2022

Unusual or Infrequent Items, or Both [Abstract]

Storm Securitization and Cost Recovery

Note 17 — Storm Securitization and Cost Recovery

In 2020 and 2021, Cleco Power’s distribution and transmission systems sustained damage from four separate hurricanes, Hurricanes Laura, Delta, Zeta, and Ida, and two severe winter storms, Winter Storms Uri and Viola. Cleco Power’s total restoration costs related to the hurricanes and winter storms totaled approximately $342.7 million. The damage to equipment from the storms required replacement, as well as repair of existing assets. As a result, approximately $211.1 million of the total restoration costs were capitalized on Cleco Power’s balance sheet. Cleco Power also had regulatory assets totaling approximately $124.3 million for non-capital expenses related to these storms, as allowed by the LPSC. There was also $7.3 million for storm restoration costs related to wholesale operations and maintenance that was expensed on Cleco’s and Cleco Power’s Condensed Consolidated Income Statements in the period the costs were incurred.

On March 30, 2022, the LPSC Staff approved an uncontested stipulated settlement agreement filed by the LPSC Staff and Cleco Power allowing securitization of $424.1 million of Storm Recovery Property. This included:

•the balance of storm costs of $220.1 million, after adjustments and collections through rates for interim storm recovery, for Hurricanes Laura, Delta, and Zeta and Winter Storms Uri and Viola;

•$95.0 million for a reserve for Hurricane Ida storm costs;

•$100.0 million for a reserve to cover future storm costs; and

•$9.0 million for estimated upfront securitization costs and ongoing costs.

On April 1, 2022, the LPSC issued the financing order authorizing Cleco Power to issue storm recovery bonds in the aggregate principal amount of up to $425.0 million. On June 22, 2022, Cleco Power completed a securitized financing of the Storm Recovery Property through Cleco Securitization I. Cleco Securitization I used the net proceeds from its issuance of $425.0 million aggregate principal amount of senior secured storm recovery bonds to purchase the Storm Recovery Property from Cleco Power, pay for debt issuance costs, and reimburse Cleco Power for upfront securitization costs paid by Cleco Power on behalf of Cleco Securitization I. Cleco Power

utilized the proceeds received from Cleco Securitization I to fund reserves for storm restoration costs and redeem its $325.0 million floating rate notes issued in September 2021. For more information about the storm recovery bonds, see Note 7 — “Debt.” For more information about the storm reserves and regulatory assets associated with the storms, see Note 5 — “Regulatory Assets and Liabilities.” For more information about the cash restricted for the storm reserves, see Note 1 — “Summary of Significant Accounting Policies — Restricted Cash and Cash Equivalents.”

On June 1, 2021, Cleco Power began collecting through rates $16.0 million annually for interim storm recovery costs associated with Hurricanes Laura, Delta, and Zeta. The interim storm rate recovery will continue until the new storm surcharge becomes effective on September 1, 2022.

Cleco Power, in line with other impacted utilities, will seek available funds from the U.S. government for customer relief of costs incurred from the storms. 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)

6 Months Ended

Jun. 30, 2022

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.

In response to the COVID-19 pandemic, in March 2020 the LPSC issued an executive order prohibiting the disconnection of utilities for nonpayment. On December 4, 2020, Cleco Power made a filing with the LPSC requesting the recovery of expenses incurred as a result of this executive order, as well as the lost revenue associated with the disconnection fees and incremental costs. Cleco Power anticipates approval of the recovery of these expenses in the fourth quarter of 2022. At June 30, 2022, Cleco Power had a regulatory asset of $3.0 million recorded for expenses incurred related to the executive order, as allowed by the LPSC.

Cleco continues to assess the COVID-19 situation and cannot predict the full impact that COVID-19, or any significant related disruptions, will have on its business, cash flows, liquidity, financial condition, and results of operations.

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.Following the formation of Cleco Securitization I and the closing of the storm securitization financing on June 22, 2022, Cleco Power became the primary beneficiary of Cleco Securitization I, and as a result, the financial statements of Cleco Securitization I are consolidated with the financial statements of Cleco Power

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, 2021.

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’s 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.

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.

As a result of the market price volatility of natural gas experienced during the second quarter of 2022, Cleco expects significant increases to the pass-through fuel component of retail customer energy bills to be issued during subsequent quarters. Due to these increased customer fuel costs, along with the impacts of a 40-year high inflation rate, management expects to experience increases in credit loss reserves related to accounts receivable in future periods. However, these increases are not expected to be material to Cleco’s results of operations, financial condition, or cash flows.

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 in the event LIBOR is discontinued or deemed to no longer be representative, or prior to such events, at the option of Cleco and the administrative agent. 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 November 2021, FASB issued guidance requiring annual disclosures about government assistance with the objective of increasing transparency and reducing existing diversity in practice. This guidance requires disclosure of the types of assistance, an entity’s accounting for the assistance, and the effect of the assistance on the entity’s financial statements. This guidance is effective for annual periods beginning after December 15, 2021. Early adoption is permitted. Funding is being sought for relief of incurred storm costs. In addition, a congressional appropriation has been secured, subject to the U.S. Department of Energy’s grant process, to help offset future costs associated with Cleco Power’s Project Diamond Vault. Management will continue to monitor this activity to determine what, if any, disclosures are required. Management does not expect this guidance to have a significant impact on the results of operations, financial condition, or cash flows of the Registrants.

Regulatory Assets and Liabilities

Cleco Power recognizes an asset for certain costs capitalized or deferred for recovery from customers and recognizes a liability for amounts expected to be returned to customers or collected for future expected costs. Cleco Power records these assets and liabilities 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, 2021, management estimates that no contributions will be required until 2026, at which time $5.4 million of required pension contributions are expected. Cleco has not made, and does not expect to make, any contributions to the pension plan in 2022.

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’s 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 cash available of the respective company of the employed officer. Because the SERP is a non-qualified plan, Cleco has purchased life insurance policies on certain SERP participants as a mechanism to provide a source of funding. These policies are held in a rabbi trust formed by Cleco Power. The rabbi trust is the named beneficiary of the life insurance policies and, therefore, receives the proceeds upon the death of the insured participants. The life insurance policies may be used to reimburse Cleco for benefits paid from general funds, pay the SERP participants’ death benefits, or pay future SERP payments. Market conditions could have a significant impact on the cash surrender value of these life insurance policies. 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. 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’s 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’s 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’s 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’s 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’s and Cleco Power’s Condensed Consolidated Statements of Income.

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Summary of Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2022

Restricted Cash and Cash Equivalents Items [Line Items]

Restricted Cash and Cash Equivalents

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

Cleco
(THOUSANDS)	AT JUNE 30, 2022		AT DEC. 31, 2021
Current
Cleco Katrina/Rita storm recovery surcharge	$	1,677	$	1,674
Cleco Power’s storm restoration costs - Hurricane Ida	9,281		—
Total current	10,958		1,674
Non-current
Diversified Lands’ mitigation escrow	22		22
Cleco Cajun’s defense fund	725		723
Cleco Power’s future storm restoration costs	102,286		—
Cleco Power’s storm restoration costs - Hurricane Ida	6,091		—
Cleco Securitization I’s operating expenses and storm recovery bond issuance costs	4,246		—
Total non-current	113,370		745
Total restricted cash and cash equivalents	$	124,328	$	2,419

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 JUNE 30, 2022						FOR THE SIX MONTHS ENDED JUNE 30, 2022
(THOUSANDS)	ACCOUNTS RECEIVABLE		OTHER*		TOTAL		ACCOUNTS RECEIVABLE		OTHER*		TOTAL
Beginning of period	$	1,002	$	1,638	$	2,640	$	1,302	$	1,638	$	2,940
Current period provision	819		—		819		1,210		—		1,210
Charge-offs	(916)		—		(916)		(2,005)		—		(2,005)
Recovery	285		—		285		683		—		683
Balances, June 30, 2022	$	1,190	$	1,638	$	2,828	$	1,190	$	1,638	$	2,828

* Loan held at Diversified Lands that was fully reserved for at December 31, 2020.

	FOR THE THREE MONTHS ENDED JUNE 30, 2021						FOR THE SIX MONTHS ENDED JUNE 30, 2021
(THOUSANDS)	ACCOUNTS RECEIVABLE		OTHER*		TOTAL		ACCOUNTS RECEIVABLE		OTHER*		TOTAL
Beginning of period	$	2,040	$	1,638	$	3,678	$	2,758	$	1,638	$	4,396
Current period provision	616		—		616		2,490		—		2,490
Charge-offs	(1,583)		—		(1,583)		(4,442)		—		(4,442)
Recovery	261		—		261		528		—		528
Balances, June 30, 2021	$	1,334	$	1,638	$	2,972	$	1,334	$	1,638	$	2,972

* Loan held at Diversified Lands that was fully reserved for at December 31, 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 JUNE 30, 2022						FOR THE SIX MONTHS ENDED JUNE 30, 2022
(THOUSANDS)	ACCOUNTS RECEIVABLE		OTHER*		TOTAL		ACCOUNTS RECEIVABLE		OTHER*		TOTAL
Beginning of period	$	1,002	$	1,638	$	2,640	$	1,302	$	1,638	$	2,940
Current period provision	819		—		819		1,210		—		1,210
Charge-offs	(916)		—		(916)		(2,005)		—		(2,005)
Recovery	285		—		285		683		—		683
Balances, June 30, 2022	$	1,190	$	1,638	$	2,828	$	1,190	$	1,638	$	2,828

* Loan held at Diversified Lands that was fully reserved for at December 31, 2020.

	FOR THE THREE MONTHS ENDED JUNE 30, 2021						FOR THE SIX MONTHS ENDED JUNE 30, 2021
(THOUSANDS)	ACCOUNTS RECEIVABLE		OTHER*		TOTAL		ACCOUNTS RECEIVABLE		OTHER*		TOTAL
Beginning of period	$	2,040	$	1,638	$	3,678	$	2,758	$	1,638	$	4,396
Current period provision	616		—		616		2,490		—		2,490
Charge-offs	(1,583)		—		(1,583)		(4,442)		—		(4,442)
Recovery	261		—		261		528		—		528
Balances, June 30, 2021	$	1,334	$	1,638	$	2,972	$	1,334	$	1,638	$	2,972

* Loan held at Diversified Lands that was fully reserved for at December 31, 2020.

CLECO POWER

Restricted Cash and Cash Equivalents Items [Line Items]

Restricted Cash and Cash Equivalents

Cleco Power
(THOUSANDS)	AT JUNE 30, 2022		AT DEC. 31, 2021
Current
Cleco Katrina/Rita storm recovery surcharge	$	1,677	$	1,674
Storm restoration costs - Hurricane Ida	9,281		—
Total current	10,958		1,674
Non-current
Future storm restoration costs	102,286		—
Storm restoration costs - Hurricane Ida	6,091		—
Cleco Securitization I’s operating expenses and storm recovery bond issuance costs	4,246		—
Total non-current	112,623		—
Total restricted cash and cash equivalents	$	123,581	$	1,674

Changes in Allowance for Credit Losses, Accounts Receivable

Cleco Power
	FOR THE THREE MONTHS ENDED JUNE 30, 2022		FOR THE SIX MONTHS ENDED JUNE 30, 2022
(THOUSANDS)	ACCOUNTS RECEIVABLE
Beginning of period	$	1,002	$	1,302
Current period provision	819		1,210
Charge-offs	(916)		(2,005)
Recovery	285		683
Balance, June 30, 2022	$	1,190	$	1,190

	FOR THE THREE MONTHS ENDED JUNE 30, 2021		FOR THE SIX MONTHS ENDED JUNE 30, 2021
(THOUSANDS)	ACCOUNTS RECEIVABLE
Beginning of period	$	2,040	$	2,758
Current period provision	616		2,490
Charge-offs	(1,583)		(4,442)
Recovery	261		528
Balance, June 30, 2021	$	1,334	$	1,334

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Leases (Tables)

6 Months Ended

Jun. 30, 2022

Leases [Abstract]

Lease Income Under Cottonwood Sale Leaseback

Cleco Cajun’s lease income under the Cottonwood Sale Leaseback for the three and six months ended June 30, 2022, and 2021 was as follows:

	FOR THE THREE MONTHS ENDED JUNE 30,				FOR THE SIX MONTHS ENDED JUNE. 30,
(THOUSANDS)	2022		2021		2022		2021
Fixed payments	$	10,000	$	10,000	$	20,000	$	20,000
Variable payments	5,865		5,010		11,414		10,475
Amortization of deferred lease liability*	2,301		2,301		4,603		4,603
Total lease income	$	18,166	$	17,311	$	36,017	$	35,078

* 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)

6 Months Ended

Jun. 30, 2022

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue

Operating revenue, net for the three and six months ended June 30, 2022, and 2021 was as follows:

	FOR THE THREE MONTHS ENDED JUNE 30, 2022
(THOUSANDS)	CLECO POWER			CLECO CAJUN			OTHER			ELIMINATIONS		TOTAL
Revenue from contracts with customers
Retail revenue
Residential (1)	$	131,813		$	—		$	—		$	—	$	131,813
Commercial (1)	84,336			—			—			—		84,336
Industrial (1)	50,188			—			—			—		50,188
Other retail (1)	4,297			—			—			—		4,297
Electric customer credits	(129)			—			—			—		(129)
Total retail revenue	270,505			—			—			—		270,505
Wholesale, net	91,934		(1)	126,089		(2)	(2,420)		(3)	—		215,603
Transmission, net	13,688			18,529			—			(2,136)		30,081
Other	4,998			—			—			—		4,998
Affiliate (4)	1,628			—			25,752			(27,380)		—
Total revenue from contracts with customers	382,753			144,618			23,332			(29,516)		521,187
Revenue unrelated to contracts with customers
Other	6,046		(5)	18,183		(6)	2			—		24,231
Total revenue unrelated to contracts with customers	6,046			18,183			2			—		24,231
Operating revenue, net	$	388,799		$	162,801		$	23,334		$	(29,516)	$	545,418

(1) Includes fuel recovery revenue.

(2) Includes $(3.6) million of amortization of intangible assets and liabilities related to Cleco Cajun’s wholesale power supply agreements.

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

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

(5) Realized gains associated with FTRs.

(6) Includes $15.9 million in lease revenue related to the Cottonwood Sale Leaseback and $2.3 million of deferred lease revenue amortization.

	FOR THE THREE MONTHS ENDED JUNE 30, 2021
(THOUSANDS)	CLECO POWER			CLECO CAJUN			OTHER			ELIMINATIONS		TOTAL
Revenue from contracts with customers
Retail revenue
Residential (1)	$	105,315		$	—		$	—		$	—	$	105,315
Commercial (1)	68,392			—			—			—		68,392
Industrial (1)	37,385			—			—			—		37,385
Other retail (1)	3,876			—			—			—		3,876
Electric customer credits	(19,054)			—			—			—		(19,054)
Total retail revenue	195,914			—			—			—		195,914
Wholesale, net	46,216		(1)	91,407		(2)	(2,420)		(3)	—		135,203
Transmission, net	13,313		(4)	13,573		(5)	—			(1,595)		25,291
Other	3,249			—			—			—		3,249
Affiliate (6)	1,224			—			26,120			(27,344)		—
Total revenue from contracts with customers	259,916			104,980			23,700			(28,939)		359,657
Revenue unrelated to contracts with customers
Other	1,763		(7)	17,326		(8)	1			2		19,092
Total revenue unrelated to contracts with customers	1,763			17,326			1			2		19,092
Operating revenue, net	$	261,679		$	122,306		$	23,701		$	(28,937)	$	378,749

(1) Includes fuel recovery revenue.

(2) Includes $(3.3) million of amortization of intangible assets and liabilities related to Cleco Cajun’s wholesale power supply agreements.

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

(4) Includes $0.3 million electric customer credits.

(5) Includes $0.2 million electric customer credits.

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

(7) Realized gains associated with FTRs.

(8) Includes $15.0 million in lease revenue related to the Cottonwood Sale Leaseback and $2.3 million of deferred lease revenue amortization.

	FOR THE SIX MONTHS ENDED JUNE 30, 2022
(THOUSANDS)	CLECO POWER			CLECO CAJUN			OTHER			ELIMINATIONS		TOTAL
Revenue from contracts with customers
Retail revenue
Residential (1)	$	244,236		$	—		$	—		$	—	$	244,236
Commercial (1)	160,870			—			—			—		160,870
Industrial (1)	96,462			—			—			—		96,462
Other retail (1)	8,426			—			—			—		8,426
Electric customer credits	(265)			—			—			—		(265)
Total retail revenue	509,729			—			—			—		509,729
Wholesale, net	147,298		(1)	229,722		(2)	(4,840)		(3)	—		372,180
Transmission, net	27,580			36,272			—			(4,827)		59,025
Other	10,191			—			1			—		10,192
Affiliate (4)	3,087			—			53,145			(56,232)		—
Total revenue from contracts with customers	697,885			265,994			48,306			(61,059)		951,126
Revenue unrelated to contracts with customers
Other	7,419		(5)	36,052		(6)	2			(1)		43,472
Total revenue unrelated to contracts with customers	7,419			36,052			2			(1)		43,472
Operating revenue, net	$	705,304		$	302,046		$	48,308		$	(61,060)	$	994,598

(1) Includes fuel recovery revenue.

(2) Includes $(7.2) million of amortization of intangible assets and liabilities related to Cleco Cajun’s wholesale power supply agreements.

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

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

(5) Realized gains associated with FTRs.

(6) Includes $31.4 million in lease revenue related to the Cottonwood Sale Leaseback and $4.6 million of deferred lease revenue amortization.

	FOR THE SIX MONTHS ENDED JUNE 30, 2021
(THOUSANDS)	CLECO POWER			CLECO CAJUN			OTHER			ELIMINATIONS		TOTAL
Revenue from contracts with customers
Retail revenue
Residential (1)	$	200,396		$	—		$	—		$	—	$	200,396
Commercial (1)	131,418			—			—			—		131,418
Industrial (1)	74,051			—			—			—		74,051
Other retail (1)	7,446			—			—			—		7,446
Electric customer credits	(40,030)			—			—			—		(40,030)
Total retail revenue	373,281			—			—			—		373,281
Wholesale, net	107,938		(1)	192,914		(2)	(4,840)		(3)	—		296,012
Transmission, net	27,295		(4)	28,830		(5)	—			(3,535)		52,590
Other	7,891			—			—			—		7,891
Affiliate (6)	2,879			—			53,276			(56,155)		—
Total revenue from contracts with customers	519,284			221,744			48,436			(59,690)		729,774
Revenue unrelated to contracts with customers
Other	8,859		(7)	35,108		(8)	2			—		43,969
Total revenue unrelated to contracts with customers	8,859			35,108			2			—		43,969
Operating revenue, net	$	528,143		$	256,852		$	48,438		$	(59,690)	$	773,743

(1) Includes fuel recovery revenue.

(2) Includes $(6.4) million of amortization of intangible assets and liabilities related to Cleco Cajun’s wholesale power supply agreements.

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

(4) Includes $0.3 million electric customer credits.

(5) Includes $0.2 million electric customer credits.

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

(7) Realized gains associated with FTRs.

(8) Includes $30.5 million in lease revenue related to the Cottonwood Sale Leaseback and $4.6 million of deferred lease revenue amortization.

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Regulatory Assets and Liabilities (Tables)

6 Months Ended

Jun. 30, 2022

Regulatory Assets [Line Items]

Schedule of Regulatory Assets

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

Cleco
(THOUSANDS)	AT JUNE 30, 2022		AT DEC. 31, 2021
Total Cleco Power regulatory assets, net	$	507,596	$	663,621
2016 Merger adjustments *
Fair value of long-term debt	108,449		112,150
Postretirement costs	12,430		13,424
Financing costs	7,076		7,248
Debt issuance costs	4,754		4,920
Total Cleco regulatory assets, net	$	640,305	$	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 JUNE 30, 2022		AT DEC. 31, 2021
Regulatory assets
Acadia Unit 1 acquisition costs	$	1,860	$	1,913	17.5
Accumulated deferred fuel (1)	93,376		56,826		Various
Affordability study	12,405		13,094		9
AFUDC equity gross-up	65,025		66,574		Various	(2)
AMI deferred revenue requirement	1,772		2,045		3.75
AROs (1)(8)	16,148		15,141
Bayou Vista to Segura transmission project deferred revenue requirement	5,020		1,392		1
Coughlin transaction costs	830		845		27
COVID-19 executive order (8)	2,953		2,953
Deferred storm restoration costs - Hurricane Delta (6)	768		17,113
Deferred storm restoration costs - Hurricane Ida (7)	9,281		37,617
Deferred storm restoration costs - Hurricane Laura (6)	2,437		54,282
Deferred storm restoration costs - Hurricane Zeta (6)	148		3,296
Deferred storm restoration costs - Winter Storms Uri & Viola	—		1,912
Dolet Hills Power Station closure costs (8)	145,892		145,844
Energy efficiency	940		1,645		0.75
Financing costs (1)	6,641		6,826		Various	(3)
Interest costs	3,334		3,459		Various	(2)
Lignite Mine closure costs (8)	135,176		136,980
Madison Unit 3 property taxes (8)	12,993		8,362
Non-service cost of postretirement benefits	14,033		12,950		Various	(2)
Other assets	10,129		11,224		Various
Postretirement costs	111,607		117,773		Various	(4)
Production operations and maintenance expenses	9,757		11,058		Various	(5)
Rodemacher Unit 2 deferred costs (8)	9,780		6,931
St. Mary Clean Energy Center	5,219		6,089		3
Training costs	5,852		5,929		37.5
Tree trimming costs	7,735		9,092		2.75
Total regulatory assets	691,111		759,165
Regulatory liabilities
Deferred taxes, net	(65,857)		(95,544)		Various
Storm reserves	(117,658)		—
Total regulatory liabilities	(183,515)		(95,544)
Total regulatory assets, net	$	507,596	$	663,621
(1) Represents regulatory assets for past expenditures that were not earning a return on investment at June 30, 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 17 — “Storm Restoration and Cost Recovery.” (7) Currently not in a recovery period. The balance remaining represents amounts under a prudency review by the LPSC. (8) 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 JUNE 30, 2022		AT DEC. 31, 2021
Regulatory assets
Acadia Unit 1 acquisition costs	$	1,860	$	1,913	17.5
Accumulated deferred fuel (1)	93,376		56,826		Various
Affordability study	12,405		13,094		9
AFUDC equity gross-up	65,025		66,574		Various	(2)
AMI deferred revenue requirement	1,772		2,045		3.75
AROs (1)(8)	16,148		15,141
Bayou Vista to Segura transmission project deferred revenue requirement	5,020		1,392		1
Coughlin transaction costs	830		845		27
COVID-19 executive order (8)	2,953		2,953
Deferred storm restoration costs - Hurricane Delta (6)	768		17,113
Deferred storm restoration costs - Hurricane Ida (7)	9,281		37,617
Deferred storm restoration costs - Hurricane Laura (6)	2,437		54,282
Deferred storm restoration costs - Hurricane Zeta (6)	148		3,296
Deferred storm restoration costs - Winter Storms Uri & Viola	—		1,912
Dolet Hills Power Station closure costs (8)	145,892		145,844
Energy efficiency	940		1,645		0.75
Financing costs (1)	6,641		6,826		Various	(3)
Interest costs	3,334		3,459		Various	(2)
Lignite Mine closure costs (8)	135,176		136,980
Madison Unit 3 property taxes (8)	12,993		8,362
Non-service cost of postretirement benefits	14,033		12,950		Various	(2)
Other assets	10,129		11,224		Various
Postretirement costs	111,607		117,773		Various	(4)
Production operations and maintenance expenses	9,757		11,058		Various	(5)
Rodemacher Unit 2 deferred costs (8)	9,780		6,931
St. Mary Clean Energy Center	5,219		6,089		3
Training costs	5,852		5,929		37.5
Tree trimming costs	7,735		9,092		2.75
Total regulatory assets	691,111		759,165
Regulatory liabilities
Deferred taxes, net	(65,857)		(95,544)		Various
Storm reserves	(117,658)		—
Total regulatory liabilities	(183,515)		(95,544)
Total regulatory assets, net	$	507,596	$	663,621
(1) Represents regulatory assets for past expenditures that were not earning a return on investment at June 30, 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 17 — “Storm Restoration and Cost Recovery.” (7) Currently not in a recovery period. The balance remaining represents amounts under a prudency review by the LPSC. (8) Currently not in a recovery period.

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Fair Value Accounting and Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2022

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’s and Cleco Power’s financial instruments not measured at fair value on Cleco’s and Cleco Power’s Condensed Consolidated Balance Sheets:

Cleco
	AT JUNE 30, 2022				AT DEC. 31, 2021
(THOUSANDS)	CARRYING VALUE*		FAIR VALUE		CARRYING VALUE*		FAIR VALUE
Long-term debt	$	3,578,803	$	3,427,506	$	3,482,405	$	3,752,220

* The carrying value of long-term debt does not include deferred issuance costs of $17.5 million at
June 30, 2022, and $13.2 million at December 31, 2021.

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 JUNE 30, 2022		QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1)		SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2)		SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3)		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)
Asset description
Money market funds	$	227,618	$	227,618	$	—	$	—	$	145,033	$	145,033	$	—	$	—
FTRs	11,863		—		—		11,863		6,977		—		—		6,977
Natural gas derivatives*	140,247		—		140,247		—		87,464		—		87,464		—
Total assets	$	379,728	$	227,618	$	140,247	$	11,863	$	239,474	$	145,033	$	87,464	$	6,977
Liability description
FTRs	$	7,181	$	—	$	—	$	7,181	$	834	$	—	$	—	$	834
Total liabilities	$	7,181	$	—	$	—	$	7,181	$	834	$	—	$	—	$	834

* 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 JUNE 30,				FOR THE SIX MONTHS ENDED JUNE 30,
(THOUSANDS)	2022		2021		2022		2021
Beginning balance	$	515	$	1,023	$	6,143	$	3,180
Unrealized (losses) gains*	(669)		(1,005)		(1,025)		15,155
Purchases	6,774		9,958		7,066		10,806
Settlements	(1,938)		(2,475)		(7,502)		(21,640)
Ending balance	$	4,682	$	7,501	$	4,682	$	7,501
* 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 June 30, 2022, and December 31, 2021:

Cleco
	FAIR VALUE				VALUATION TECHNIQUE	SIGNIFICANT UNOBSERVABLE INPUTS	FORWARD PRICE RANGE
(THOUSANDS, EXCEPT FORWARD PRICE RANGE)	ASSETS		LIABILITIES				LOW		HIGH
FTRs at June 30, 2022	$	11,863	$	7,181	RTO auction pricing	FTR price - per MWh	$	(14.97)	$	19.75
FTRs at Dec. 31, 2021	$	6,977	$	834	RTO auction pricing	FTR price - per MWh	$	(3.94)	$	9.25

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’s and Cleco Power’s Condensed Consolidated Balance Sheets at June 30, 2022, and December 31, 2021:

Cleco
(THOUSANDS)	AT JUNE 30, 2022		AT DEC. 31, 2021
Cash and cash equivalents	$	125,311	$	145,011
Non-current restricted cash and cash equivalents	$	102,307	$	22

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 June 30, 2022, and December 31, 2021:

Cleco
	DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS
		AT JUNE 30, 2022
				GROSS AMOUNTS OFFSET ON THE BALANCE SHEET		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		CASH COLLATERAL		NET ASSET (LIABILITY) ON THE BALANCE SHEET		COLLATERAL		NET AMOUNT
Commodity-related contracts
FTRs
Current	Energy risk management assets	$	11,863	$	—	$	—	$	11,863	$	—	$	11,863
Current	Energy risk management liabilities	(7,181)		—		—		(7,181)		—		(7,181)
Natural gas derivatives
Current	Energy risk management assets	85,708		(2,497)		(23,524)		59,687		(62,184)		(2,497)
Non-current	Energy risk management assets	99,536		—		(18,976)		80,560		(44,308)		36,252
Current	Energy risk management liabilities	(2,497)		2,497		—		—		—		—
Commodity-related contracts, net		$	187,429	$	—	$	(42,500)	$	144,929	$	(106,492)	$	38,437

(1) Represents letters of credit by counterparties.

Cleco
	DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS
		AT DEC. 31, 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		NET ASSET (LIABILITY) ON THE BALANCE SHEET		COLLATERAL		NET AMOUNT
Commodity-related contracts
FTRs
Current	Energy risk management assets	$	6,977	$	—	$	6,977	$	—	$	6,977
Current	Energy risk management liabilities	(834)		—		(834)		—		(834)
Natural gas derivatives
Current	Energy risk management assets	37,061		(559)		36,502		(15,000)		21,502
Non-current	Energy risk management assets	50,962		—		50,962		—		50,962
Current	Energy risk management liabilities	(559)		559		—		—		—
Commodity-related contracts, net		$	93,607	$	—	$	93,607	$	(15,000)	$	78,607

(1) Represents letters of credit by counterparties.

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 June 30, 2022, and December 31, 2021:

Cleco
	DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS
		AT JUNE 30, 2022
				GROSS AMOUNTS OFFSET ON THE BALANCE SHEET		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		CASH COLLATERAL		NET ASSET (LIABILITY) ON THE BALANCE SHEET		COLLATERAL		NET AMOUNT
Commodity-related contracts
FTRs
Current	Energy risk management assets	$	11,863	$	—	$	—	$	11,863	$	—	$	11,863
Current	Energy risk management liabilities	(7,181)		—		—		(7,181)		—		(7,181)
Natural gas derivatives
Current	Energy risk management assets	85,708		(2,497)		(23,524)		59,687		(62,184)		(2,497)
Non-current	Energy risk management assets	99,536		—		(18,976)		80,560		(44,308)		36,252
Current	Energy risk management liabilities	(2,497)		2,497		—		—		—		—
Commodity-related contracts, net		$	187,429	$	—	$	(42,500)	$	144,929	$	(106,492)	$	38,437

(1) Represents letters of credit by counterparties.

Cleco
	DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS
		AT DEC. 31, 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		NET ASSET (LIABILITY) ON THE BALANCE SHEET		COLLATERAL		NET AMOUNT
Commodity-related contracts
FTRs
Current	Energy risk management assets	$	6,977	$	—	$	6,977	$	—	$	6,977
Current	Energy risk management liabilities	(834)		—		(834)		—		(834)
Natural gas derivatives
Current	Energy risk management assets	37,061		(559)		36,502		(15,000)		21,502
Non-current	Energy risk management assets	50,962		—		50,962		—		50,962
Current	Energy risk management liabilities	(559)		559		—		—		—
Commodity-related contracts, net		$	93,607	$	—	$	93,607	$	(15,000)	$	78,607

(1) Represents letters of credit by counterparties.

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 June 30, 2022, and December 31, 2021, for Cleco and Cleco Power:

Cleco
		TOTAL VOLUME OUTSTANDING
(THOUSAND)	UNIT OF MEASURE	AT JUNE 30, 2022	AT DEC. 31, 2021
Commodity-related contracts
FTRs	MWh	32,409	14,055
Natural gas derivatives	MMBtus	96,010	109,306

Amount of Gain (Loss) Recognized in Income on Derivatives

The following tables present the effect of derivatives not designated as hedging instruments on Cleco’s and Cleco Power’s Condensed Consolidated Statements of Income for the three and six months ended June 30, 2022, and 2021:

Cleco
	AMOUNT OF GAIN(LOSS) ON DERIVATIVES RECOGNIZED IN INCOME
		FOR THE THREE MONTHS ENDED JUNE 30,					FOR THE SIX MONTHS ENDED JUNE 30,
(THOUSANDS)	INCOME STATEMENT LINE ITEM	2022		2021			2022		2021
Commodity-related contracts
FTRs(1)	Electric operations	$	6,080	$	1,763		$	7,663	$	9,207
FTRs(1)	Purchased power	(11,689)		(3,168)		(2)	(9,966)		(8,972)		(2)
Natural gas derivatives	Fuel used for electric generation	37,416		51,683		(2)	165,888		57,897		(2)
Total		$	31,807	$	50,278		$	163,585	$	58,132

(1) For the three and six months ended June 30, 2022, unrealized gains associated with FTRs for Cleco Power of $4.3 million were reported through Accumulated deferred fuel on the balance sheet. For the three and six months ended June 30, 2021, unrealized losses associated with FTRs for Cleco Power of $0.4 million were reported through Accumulated deferred fuel on the balance sheet.

(2) Prior year balance has been revised to correct errors that were immaterial, both quantitatively and qualitatively, including incorrectly including parenthesis for natural gas derivatives for the three and six months ended June 30, 2021.

CLECO POWER

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Carrying Value and Estimated Fair Value

Cleco Power
	AT JUNE 30, 2022				AT DEC. 31, 2021
(THOUSANDS)	CARRYING VALUE*		FAIR VALUE		CARRYING VALUE*		FAIR VALUE
Long-term debt	$	1,920,354	$	1,944,134	$	1,820,254	$	2,085,944

* The carrying value of long-term debt does not include deferred issuance costs of $13.0 million at
June 30, 2022, and $7.9 million at December 31, 2021.

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

Cleco Power
	FAIR VALUE MEASUREMENTS AT REPORTING DATE
(THOUSANDS)	AT JUNE 30, 2022		QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1)		SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2)		SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3)		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)
Asset description
Money market funds	$	149,897	$	149,897	$	—	$	—	$	82,411	$	82,411	$	—	$	—
FTRs	10,857		—		—		10,857		5,515		—		—		5,515
Total assets	$	160,754	$	149,897	$	—	$	10,857	$	87,926	$	82,411	$	—	$	5,515
Liability description
FTRs	$	719	$	—	$	—	$	719	$	597	$	—	$	—	$	597
Total liabilities	$	719	$	—	$	—	$	719	$	597	$	—	$	—	$	597

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

Cleco Power
	FOR THE THREE MONTHS ENDED JUNE 30,				FOR THE SIX MONTHS ENDED JUNE 30,
(THOUSANDS)	2022		2021		2022		2021
Beginning balance	$	567	$	1,088	$	4,918	$	3,216
Unrealized gains (losses)*	4,267		(402)		4,267		(402)
Purchases	6,577		7,768		6,869		8,616
Settlements	(1,273)		(2,464)		(5,916)		(5,440)
Ending balance	$	10,138	$	5,990	$	10,138	$	5,990
* Unrealized gains (losses) 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 June 30, 2022	$	10,857	$	719	RTO auction pricing	FTR price - per MWh	$	(6.61)	$	19.75
FTRs at Dec. 31, 2021	$	5,515	$	597	RTO auction pricing	FTR price - per MWh	$	(4.91)	$	9.25

Institutional Money Market Funds

Cleco Power
(THOUSANDS)	AT JUNE 30, 2022		AT DEC. 31, 2021
Cash and cash equivalents	$	47,611	$	82,411
Non-current restricted cash and cash equivalents	$	102,286	$	—

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 JUNE 30, 2022		AT DEC. 31, 2021
Commodity-related contracts
FTRs
Current	Energy risk management assets	$	10,857	$	5,515
Current	Energy risk management liabilities	(719)		(597)
Commodity-related contracts, net		$	10,138	$	4,918

Cleco Power
		TOTAL VOLUME OUTSTANDING
(THOUSAND)	UNIT OF MEASURE	AT JUNE 30, 2022	AT DEC. 31, 2021
Commodity-related contracts
FTRs	MWh	19,852	8,899

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 JUNE 30,				FOR THE SIX MONTHS ENDED JUNE 30,
(THOUSANDS)	INCOME STATEMENT LINE ITEM	2022		2021		2022		2021
Commodity-related contracts
FTRs(1)	Electric operations	$	6,080	$	1,763	$	7,663	$	9,208
FTRs(1)	Purchased power	(1,846)		(1,233)		(3,083)		(8,414)
Total		$	4,234	$	530	$	4,580	$	794

(1) For the three and six months ended June 30, 2022, unrealized gains associated with FTRs of $4.3 million were reported through Accumulated deferred fuel on the balance sheet. For the three and six months ended June 30, 2021, unrealized losses associated with FTRs of $0.4 million were reported through Accumulated deferred fuel on the balance sheet.

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Pension Plan and Employee Benefits (Tables)

6 Months Ended

Jun. 30, 2022

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 six months ended June 30, 2022, and 2021 were as follows:

	PENSION BENEFITS				OTHER BENEFITS
	FOR THE THREE MONTHS ENDED JUNE 30,				FOR THE THREE MONTHS ENDED JUNE 30,
(THOUSANDS)	2022		2021		2022		2021
Components of periodic benefit costs
Service cost	$	2,143	$	2,730	$	551	$	595
Interest cost	4,960		4,719		371		323
Expected return on plan assets	(6,177)		(5,698)		—		—
Amortizations
Net loss	3,083		5,607		303		384
Net periodic benefit cost	$	4,009	$	7,358	$	1,225	$	1,302

	PENSION BENEFITS				OTHER BENEFITS
	FOR THE SIX MONTHS ENDED JUNE 30,				FOR THE SIX MONTHS ENDED JUNE 30,
(THOUSANDS)	2022		2021		2022		2021
Components of periodic benefit costs
Service cost	$	4,293	$	5,258	$	1,102	$	1,190
Interest cost	9,920		9,334		742		645
Expected return on plan assets	(12,354)		(11,400)		—		—
Amortizations
Net loss	6,168		10,369		605		770
Net periodic benefit cost	$	8,027	$	13,561	$	2,449	$	2,605

The components of the net periodic benefit cost related to SERP for the three and six months ended June 30, 2022, and 2021 were as follows:

	FOR THE THREE MONTHS ENDED JUNE 30,				FOR THE SIX MONTHS ENDED JUNE 30,
(THOUSANDS)	2022		2021		2022		2021
Components of periodic benefit costs
Service cost	$	57	$	61	$	113	$	116
Interest cost	670		644		1,340		1,269
Amortizations
Prior period service credit	(54)		(55)		(107)		(107)
Net loss (gain)	262		(401)		524		613
Net periodic benefit cost	$	935	$	249	$	1,870	$	1,891

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 June 30, 2022, and December 31, 2021, were as follows:

Cleco
(THOUSANDS)	AT JUNE 30, 2022		AT DEC. 31, 2021
Current	$	5,181	$	5,181
Non-current	$	49,210	$	50,093

The current and non-current portions of the SERP liability for Cleco and Cleco Power at June 30, 2022, and December 31, 2021, were as follows:

Cleco
(THOUSANDS)	AT JUNE 30, 2022		AT DEC. 31, 2021
Current	$	4,654	$	4,654
Non-current	$	86,579	$	88,523

Expense of the 401(k) Plan

Cleco’s 401(k) Plan expense for the three and six months ended June 30, 2022, and 2021 was as follows:

	FOR THE THREE MONTHS ENDED JUNE 30,				FOR THE SIX MONTHS ENDED JUNE 30,
(THOUSANDS)	2022		2021		2022		2021
401(k) Plan expense	$	1,831	$	2,120	$	4,422	$	4,880

The expense of the 401(k) Plan related to Cleco’s other subsidiaries for the three and six months ended June 30, 2022, and 2021 was as follows:

	FOR THE THREE MONTHS ENDED JUNE 30,				FOR THE SIX MONTHS ENDED JUNE 30,
(THOUSANDS)	2022		2021		2022		2021
401(k) Plan expense	$	847	$	946	$	2,169	$	2,326

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 JUNE 30, 2022		AT DEC. 31, 2021
Current	$	4,432	$	4,432
Non-current	$	38,634	$	39,315

Cleco Power
(THOUSANDS)	AT JUNE 30, 2022		AT DEC. 31, 2021
Current	$	679	$	679
Non-current	$	12,667	$	12,909

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Income Taxes (Tables)

6 Months Ended

Jun. 30, 2022

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 six months ended June 30, 2022, and 2021:

Cleco
	FOR THE THREE MONTHS ENDED JUNE 30,				FOR THE SIX MONTHS ENDED JUNE 30,
	2022		2021		2022		2021
Effective tax rate	95.6	%	11.1	%	13.2	%	0.4	%

CLECO POWER

Effective Income Tax Rate [Line Items]

Effective Income Tax Rates

Cleco Power
	FOR THE THREE MONTHS ENDED JUNE 30,				FOR THE SIX MONTHS ENDED JUNE 30,
	2022		2021		2022		2021
Effective tax rate	5.5	%	24.6	%	4.0	%	(1.7)	%

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Disclosures about Segments (Tables)

6 Months Ended

Jun. 30, 2022

Segment Reporting [Abstract]

Segment Information

Segment Information for the Three Months Ended June 30,
2022 (THOUSANDS)	CLECO POWER		CLECO CAJUN			TOTAL SEGMENTS
Revenue
Electric operations	$	368,614	$	126,089		$	494,703
Other operations	18,686		36,712			55,398
Affiliate revenue	1,628		—			1,628
Electric customer credits	(129)		—			(129)
Operating revenue, net	$	388,799	$	162,801		$	551,600
Net income (loss)	$	54,705	$	(932)		$	53,773
Add: Depreciation and amortization	44,299		23,219		(1)	67,518
Less: Interest income	1,035		176			1,211
Add: Interest charges	21,305		43			21,348
Add: Federal and state income tax expense (benefit)	3,214		(966)			2,248
EBITDA	$	122,488	$	21,188		$	143,676
(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.

2022 (THOUSANDS)	TOTAL SEGMENTS		OTHER			ELIMINATIONS		TOTAL
Revenue
Electric operations	$	494,703	$	(2,420)		$	—	$	492,283
Other operations	55,398		2			(2,136)		53,264
Affiliate revenue	1,628		25,752			(27,380)		—
Electric customer credits	(129)		—			—		(129)
Operating revenue, net	$	551,600	$	23,334		$	(29,516)	$	545,418
Depreciation and amortization	$	67,518	$	4,373	(1)	$	1	$	71,892
Interest income	$	1,211	$	53		$	(23)	$	1,241
Interest charges	$	21,348	$	15,081		$	(22)	$	36,407
Federal and state income tax expense (benefit)	$	2,248	$	27,280		$	(1)	$	29,527
Net income (loss)	$	53,773	$	(52,409)		$	(1)	$	1,363
(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.

2021 (THOUSANDS)	CLECO POWER		CLECO CAJUN			TOTAL SEGMENTS
Revenue
Electric operations	$	262,948	$	91,407		$	354,355
Other operations	16,269		30,655			46,924
Affiliate revenue	1,224		—			1,224
Electric customer credits	(18,762)		244			(18,518)
Operating revenue, net	$	261,679	$	122,306		$	383,985
Net income	$	27,421	$	52,494		$	79,915
Add: Depreciation and amortization	40,933		12,339		(1)	53,272
Less: Interest income	825		3			828
Add: Interest charges	18,237		(180)			18,057
Add: Federal and state income tax expense	8,956		18,063			27,019
EBITDA	$	94,722	$	82,713		$	177,435
(1) Includes $3.3 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	$	354,355	$	(2,420)		$	1	$	351,936
Other operations	46,924		1			(1,595)		45,330
Affiliate revenue	1,224		26,120			(27,344)		—
Electric customer credits	(18,518)		—			1		(18,517)
Operating revenue, net	$	383,985	$	23,701		$	(28,937)	$	378,749
Depreciation and amortization	$	53,272	$	4,427	(1)	$	—	$	57,699
Interest income	$	828	$	14		$	(13)	$	829
Interest charges	$	18,057	$	15,248		$	(14)	$	33,291
Federal and state income tax expense (benefit)	$	27,019	$	(17,182)		$	—	$	9,837
Net income (loss)	$	79,915	$	(1,093)		$	—	$	78,822
(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 Six Months Ended June 30,
2022 (THOUSANDS)	CLECO POWER		CLECO CAJUN			TOTAL SEGMENTS
Revenue
Electric operations	$	664,711	$	229,722		$	894,433
Other operations	37,771		72,324			110,095
Affiliate revenue	3,087		—			3,087
Electric customer credits	(265)		—			(265)
Operating revenue, net	$	705,304	$	302,046		$	1,007,350
Net income	$	93,729	$	92,449		$	186,178
Add: Depreciation and amortization	89,538		46,398		(2)	135,936
Less: Interest income	1,775		188			1,963
Add: Interest charges	40,108		35			40,143
Add: Federal and state income tax expense	3,938		32,674			36,612
EBITDA	$	225,538	$	171,368		$	396,906
Additions to property, plant, and equipment	$	98,162	$	2,839		$	101,001
Equity investment in investees (1)	$	2,072	$	—		$	2,072
Goodwill (1)	$	1,490,797	$	—		$	1,490,797
Total segment assets (1)	$	6,934,909	$	1,143,090		$	8,077,999
(1) Balances as of June 30, 2022. (2) Includes $7.2 million of amortization of intangible assets and liabilities related to wholesale power supply agreements and $(4.6) million of deferred lease revenue amortization as a result of the Cleco Cajun Transaction.

2022 (THOUSANDS)	TOTAL SEGMENTS		OTHER			ELIMINATIONS		TOTAL
Revenue
Electric operations	$	894,433	$	(4,840)		$	(1)	$	889,592
Other operations	110,095		3			(4,827)		105,271
Affiliate revenue	3,087		53,145			(56,232)		—
Electric customer credits	(265)		—			—		(265)
Operating revenue, net	$	1,007,350	$	48,308		$	(61,060)	$	994,598
Depreciation and amortization	$	135,936	$	8,752	(2)	$	1	$	144,689
Interest income	$	1,963	$	83		$	(49)	$	1,997
Interest charges	$	40,143	$	29,834		$	(50)	$	69,927
Federal and state income tax expense (benefit)	$	36,612	$	(12,672)		$	—	$	23,940
Net income (loss)	$	186,178	$	(29,070)		$	(1)	$	157,107
Additions to property, plant, and equipment	$	101,001	$	672		$	—	$	101,673
Equity investment in investees (1)	$	2,072	$	(185,901)		$	185,901	$	2,072
Goodwill (1)	$	1,490,797	$	—		$	—	$	1,490,797
Total segment assets (1)	$	8,077,999	$	373,804		$	10,518	$	8,462,321
(1) Balances as of June 30, 2022. (2) Includes $4.8 million of amortization of intangible assets related to Cleco Power’s wholesale power supply agreements as a result of the 2016 Merger.

2021 (THOUSANDS)	CLECO POWER		CLECO CAJUN			TOTAL SEGMENTS
Revenue
Electric operations	$	530,107	$	192,914		$	723,021
Other operations	34,895		63,694			98,589
Affiliate revenue	2,879		—			2,879
Electric customer credits	(39,738)		244			(39,494)
Operating revenue, net	$	528,143	$	256,852		$	784,995
Net income	$	45,846	$	66,975		$	112,821
Add: Depreciation and amortization	83,009		23,991		(2)	107,000
Less: Interest income	1,468		6			1,474
Add: Interest charges	36,883		(332)			36,551
Add: Federal and state income tax (benefit) expense	(767)		22,673			21,906
EBITDA	$	163,503	$	113,301		$	276,804
Additions to property, plant, and equipment	$	132,194	$	4,882		$	137,076
Equity investment in investees (1)	$	2,072	$	—		$	2,072
Goodwill (1)	$	1,490,797	$	—		$	1,490,797
Total segment assets (1)	$	6,620,298	$	1,104,090		$	7,724,388
(1) Balances as of December 31, 2021. (2) Includes $6.4 million of amortization of intangible assets and liabilities related to wholesale power supply agreements and $(4.6) million deferred lease revenue amortization as a result of the Cleco Cajun Transaction.

2021 (THOUSANDS)	TOTAL SEGMENTS		OTHER			ELIMINATIONS		TOTAL
Revenue
Electric operations	$	723,021	$	(4,840)		$	—	$	718,181
Other operations	98,589		2			(3,535)		95,056
Affiliate revenue	2,879		53,276			(56,155)		—
Electric customer credits	(39,494)		—			—		(39,494)
Operating revenue, net	$	784,995	$	48,438		$	(59,690)	$	773,743
Depreciation and amortization	$	107,000	$	8,862	(2)	$	—	$	115,862
Interest income	$	1,474	$	57		$	(56)	$	1,475
Interest charges	$	36,551	$	30,687		$	(55)	$	67,183
Federal and state income tax expense (benefit)	$	21,906	$	(21,490)		$	—	$	416
Net income (loss)	$	112,821	$	(13,672)		$	—	$	99,149
Additions to property, plant, and equipment	$	137,076	$	1,440		$	—	$	138,516
Equity investment in investees (1)	$	2,072	$	(46,901)		$	46,901	$	2,072
Goodwill (1)	$	1,490,797	$	—		$	—	$	1,490,797
Total segment assets (1)	$	7,724,388	$	619,101		$	(218,471)	$	8,125,018
(1) Balances as of December 31, 2021. (2) Includes $4.8 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 JUNE 30,				FOR THE SIX MONTHS ENDED JUNE 30,
(THOUSANDS)	2022		2021		2022		2021
Net income	$	1,363	$	78,822	$	157,107	$	99,149
Add: Depreciation and amortization	71,892		57,699		144,689		115,862
Less: Interest income	1,241		829		1,997		1,475
Add: Interest charges	36,407		33,291		69,927		67,183
Add: Federal and state income tax expense	29,527		9,837		23,940		416
Add: Other corporate costs and noncash items (1)	5,728		(1,385)		3,240		(4,331)
Total segment EBITDA	$	143,676	$	177,435	$	396,906	$	276,804
(1) Adjustments made for Other and Elimination totals not allocated to total segment EBITDA.

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Regulation and Rates (Tables)

6 Months Ended

Jun. 30, 2022

Regulated Operations [Abstract]

Schedule of Provision of Rate Refund

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

(THOUSANDS)	AT JUN. 30, 2022		AT DEC. 31, 2021
Cleco Katrina/Rita storm recovery charges	$	1,614	$	1,611
FRP	$	1,230	$	1,229
Site-specific industrial customer	$	1,125	$	833
TCJA	$	2,057	$	2,057

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Variable Interest Entities (Tables)

6 Months Ended

Jun. 30, 2022

Variable Interest Entity [Line Items]

Schedule of Variable Interest Entities

The following table summarizes the impact of Cleco Securitization I on Cleco’s and Cleco Power’s Condensed Consolidated Balance Sheets:

(THOUSANDS)	AT JUNE 30, 2022
Restricted cash - current	$	4,246
Intangible asset - securitization	$	415,946
Long-term debt due within one year	$	3,204
Interest accrued	$	474
Long-term debt, net	$	414,871
Member’s equity	$	1,643

CLECO POWER

Variable Interest Entity [Line Items]

Schedule of Variable Interest Entities

The following table summarizes the impact of Cleco Securitization I on Cleco’s and Cleco Power’s Condensed Consolidated Balance Sheets:

(THOUSANDS)	AT JUNE 30, 2022
Restricted cash - current	$	4,246
Intangible asset - securitization	$	415,946
Long-term debt due within one year	$	3,204
Interest accrued	$	474
Long-term debt, net	$	414,871
Member’s equity	$	1,643

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 JUNE 30, 2022		AT DEC. 31, 2021
Oxbow’s net assets/liabilities	$	4,145	$	4,145
Cleco Power’s 50% equity	$	2,072	$	2,072
Cleco Power’s maximum exposure to loss	$	2,072	$	2,072

Equity Method Investments

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

INCEPTION TO DATE (THOUSANDS)	AT JUNE 30, 2022		AT DEC. 31, 2021
Purchase price	$	12,873	$	12,873
Cash contributions	6,399		6,399
Distributions	(17,200)		(17,200)
Total equity investment in investee	$	2,072	$	2,072

The following table contains summarized financial information for Oxbow:

	FOR THE THREE MONTHS ENDED JUNE 30,				FOR THE SIX MONTHS ENDED JUNE 30,
(THOUSANDS)	2022		2021		2022		2021
Operating revenue	$	85	$	1,627	$	151	$	3,626
Operating expenses	85		1,627		151		3,626
Income before taxes	$	—	$	—	$	—	$	—

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Affiliate Transactions (Tables)

6 Months Ended

Jun. 30, 2022

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 JUNE 30, 2022				AT DEC. 31, 2021
(THOUSANDS)	ACCOUNTS RECEIVABLE		ACCOUNTS PAYABLE		ACCOUNTS RECEIVABLE		ACCOUNTS PAYABLE
Cleco Holdings	$	207	$	285	$	10,347	$	59,627
Support Group	1,702		10,006		2,473		10,038
Cleco Cajun	1,300		92		792		64
Total	$	3,209	$	10,383	$	13,612	$	69,729

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Intangible Assets and Liabilities (Tables)

6 Months Ended

Jun. 30, 2022

Finite-Lived Intangible Assets [Line Items]

Schedule of Amortization of Intangible Assets and Liabilities

The following table presents Cleco’s amortization of other intangible assets and liabilities included in its Condensed Consolidated Income Statements:

Cleco
	FOR THE THREE MONTHS ENDED JUNE 30,				FOR THE SIX MONTHS ENDED JUNE 30,
(THOUSANDS)	2022		2021		2022		2021
Intangible assets
Trade name	$	—	$	64	$	—	$	128
Power supply agreements	$	6,400	$	6,400	$	12,800	$	12,800
Intangible liabilities
LTSA	$	871	$	871	$	1,742	$	1,742
Power supply agreements	$	389	$	718	$	778	$	1,600

Schedule of Finite-Lived Intangible Assets and Liabilities

The following table summarizes the balance of other intangible assets and liabilities subject to amortization for Cleco included in its Condensed Consolidated Balance Sheets:

Cleco
(THOUSANDS)	AT JUNE 30, 2022		AT DEC. 31, 2021
Intangible assets
Power supply agreements	$	184,004	$	184,004
Total intangible assets carrying amount	184,004		184,004
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		145,704
Accumulated amortization	(92,745)		(82,466)
Net intangible assets subject to amortization	$	52,959	$	63,238

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Accumulated Other Comprehensive Loss (Tables)

6 Months Ended

Jun. 30, 2022

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 JUNE 30, 2022		FOR THE SIX MONTHS ENDED JUNE 30, 2022
(THOUSANDS)	POSTRETIREMENT BENEFIT NET LOSS
Balance, beginning of period	$	(23,615)	$	(23,629)
Amounts reclassified from AOCI
Amortization of postretirement benefit net loss	7		21
Balance, June 30, 2022	$	(23,608)	$	(23,608)

	FOR THE THREE MONTHS ENDED JUNE 30, 2021		FOR THE SIX MONTHS ENDED JUNE 30, 2021
(THOUSANDS)	POSTRETIREMENT BENEFIT NET LOSS
Balance, beginning of period	$	(25,168)	$	(25,796)
Amounts reclassified from AOCI
Amortization of postretirement benefit net (gain) loss	(420)		208
Balance, June 30, 2021	$	(25,588)	$	(25,588)

CLECO POWER

Accumulated Other Comprehensive Loss [Line Items]

Schedule of Accumulated Other Comprehensive Income Loss

Cleco Power
	FOR THE THREE MONTHS ENDED JUNE 30, 2022						FOR THE SIX MONTHS ENDED JUNE 30, 2022
(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	$	(12,579)	$	(5,235)	$	(17,814)	$	(12,885)	$	(5,298)	$	(18,183)
Amounts reclassified from AOCI
Amortization of postretirement benefit net loss	307		—		307		613		—		613
Reclassification of net loss to interest charges	—		63		63		—		126		126
Balances, June 30, 2022	$	(12,272)	$	(5,172)	$	(17,444)	$	(12,272)	$	(5,172)	$	(17,444)

	FOR THE THREE MONTHS ENDED JUNE 30, 2021						FOR THE SIX MONTHS ENDED JUNE 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	$	(18,681)	$	(5,550)	$	(24,231)	$	(19,139)	$	(5,614)	$	(24,753)
Amounts reclassified from AOCI
Amortization of postretirement benefit net loss	287		—		287		745		—		745
Reclassification of net loss to interest charges	—		64		64		—		128		128
Balances, June 30, 2021	$	(18,394)	$	(5,486)	$	(23,880)	$	(18,394)	$	(5,486)	$	(23,880)

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Summary of Significant Accounting Policies - Additional Information (Details) - CLECO POWER - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Regulatory Assets [Line Items]
Regulatory assets	$ 691,111	$ 759,165
COVID-19 executive order
Regulatory Assets [Line Items]
Regulatory assets	$ 2,953	$ 2,953

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Summary of Significant Accounting Policies - Restricted Cash and Cash Equivalents (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Restricted Cash and Cash Equivalents Items [Line Items]
Current	$ 10,958	$ 1,674
Non-current	113,370	745
Total restricted cash and cash equivalents	124,328	2,419
CLECO POWER
Restricted Cash and Cash Equivalents Items [Line Items]
Current	10,958	1,674
Non-current	112,623	0
Total restricted cash and cash equivalents	123,581	1,674
Cleco Katrina/Rita storm recovery surcharge
Restricted Cash and Cash Equivalents Items [Line Items]
Current	1,677	1,674
Cleco Katrina/Rita storm recovery surcharge | CLECO POWER
Restricted Cash and Cash Equivalents Items [Line Items]
Current	1,677	1,674
Cleco Power’s storm restoration costs - Hurricane Ida
Restricted Cash and Cash Equivalents Items [Line Items]
Current	9,281	0
Non-current	6,091	0
Cleco Power’s storm restoration costs - Hurricane Ida | CLECO POWER
Restricted Cash and Cash Equivalents Items [Line Items]
Current	9,281	0
Non-current	6,091	0
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	725	723
Future storm restoration costs
Restricted Cash and Cash Equivalents Items [Line Items]
Non-current	102,286	0
Future storm restoration costs | CLECO POWER
Restricted Cash and Cash Equivalents Items [Line Items]
Non-current	102,286	0
Cleco Securitization I’s operating expenses and storm recovery bond issuance costs
Restricted Cash and Cash Equivalents Items [Line Items]
Non-current	4,246	0
Cleco Securitization I’s operating expenses and storm recovery bond issuance costs | CLECO POWER
Restricted Cash and Cash Equivalents Items [Line Items]
Non-current	4,246	$ 0
Restoration costs, future storm and Hurricane Ida | CLECO POWER
Restricted Cash and Cash Equivalents Items [Line Items]
Current	9,300
Non-current	$ 108,400

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Summary of Significant Accounting Policies - Changes in Allowance for Credit Losses (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Financing Receivable, Allowance for Credit Loss [Line Items]
Receivable, threshold period past due	20 days		20 days
ACCOUNTS RECEIVABLE
Accounts receivable, beginning balance	$ 1,002	$ 2,040	$ 1,302	$ 2,758
Current period provision	819	616	1,210	2,490
Charge-offs	(916)	(1,583)	(2,005)	(4,442)
Recovery	285	261	683	528
Accounts receivable, ending balance	1,190	1,334	1,190	1,334
OTHER
Other, beginning balance	1,638	1,638	1,638	1,638
Current period provision	0	0	0	0
Charge-offs	0	0	0	0
Recovery	0	0	0	0
Other, ending balance	1,638	1,638	1,638	1,638
TOTAL
Total, beginning balance	2,640	3,678	2,940	4,396
Current period provision	819	616	1,210	2,490
Charge-offs	(916)	(1,583)	(2,005)	(4,442)
Recovery	285	261	683	528
Total, ending balance	2,828	2,972	2,828	2,972
CLECO POWER
ACCOUNTS RECEIVABLE
Accounts receivable, beginning balance	1,002	2,040	1,302	2,758
Current period provision	819	616	1,210	2,490
Charge-offs	(916)	(1,583)	(2,005)	(4,442)
Recovery	285	261	683	528
Accounts receivable, ending balance	$ 1,190	$ 1,334	$ 1,190	$ 1,334

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Leases - Narrative (Details) $ in Millions	Jun. 30, 2022 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		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Lessor, Lease, Description [Line Items]
Fixed payments	$ 10,000	$ 10,000	$ 20,000	$ 20,000
Variable payments	5,865	5,010	11,414	10,475
Amortization of deferred lease liability	2,301	2,301	4,603	4,603
Total lease income	$ 18,166	$ 17,311	$ 36,017	$ 35,078

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Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	$ 521,187	$ 359,657	$ 951,126	$ 729,774
Revenue unrelated to contracts with customers
Other	24,231	19,092	43,472	43,969
Total revenue unrelated to contracts with customers	24,231	19,092	43,472	43,969
Operating revenue, net	545,418	378,749	994,598	773,743
Electric customer credits	129	18,517	265	39,494
Deferred lease amortization			4,603	4,603
Total retail revenue
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	270,505	195,914	509,729	373,281
Residential
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	131,813	105,315	244,236	200,396
Commercial
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	84,336	68,392	160,870	131,418
Industrial
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	50,188	37,385	96,462	74,051
Other retail
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	4,297	3,876	8,426	7,446
Electric customer credits
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	(129)	(19,054)	(265)	(40,030)
Wholesale, net
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	215,603	135,203	372,180	296,012
Transmission, net
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	30,081	25,291	59,025	52,590
Other
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	4,998	3,249	10,192	7,891
Affiliate
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	0	0	0	0
OPERATING SEGMENTS
Revenue unrelated to contracts with customers
Operating revenue, net	551,600	383,985	1,007,350	784,995
Electric customer credits	129	18,518	265	39,494
OPERATING SEGMENTS | CLECO POWER
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	382,753	259,916	697,885	519,284
Revenue unrelated to contracts with customers
Other	6,046	1,763	7,419	8,859
Total revenue unrelated to contracts with customers	6,046	1,763	7,419	8,859
Operating revenue, net	388,799	261,679	705,304	528,143
Electric customer credits	129	18,762	265	39,738
OPERATING SEGMENTS | CLECO POWER | Total retail revenue
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	270,505	195,914	509,729	373,281
OPERATING SEGMENTS | CLECO POWER | Residential
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	131,813	105,315	244,236	200,396
OPERATING SEGMENTS | CLECO POWER | Commercial
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	84,336	68,392	160,870	131,418
OPERATING SEGMENTS | CLECO POWER | Industrial
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	50,188	37,385	96,462	74,051
OPERATING SEGMENTS | CLECO POWER | Other retail
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	4,297	3,876	8,426	7,446
OPERATING SEGMENTS | CLECO POWER | Electric customer credits
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	(129)	(19,054)	(265)	(40,030)
OPERATING SEGMENTS | CLECO POWER | Wholesale, net
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	91,934	46,216	147,298	107,938
OPERATING SEGMENTS | CLECO POWER | Transmission, net
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	13,688	13,313	27,580	27,295
Revenue unrelated to contracts with customers
Electric customer credits		300		300
OPERATING SEGMENTS | CLECO POWER | Other
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	4,998	3,249	10,191	7,891
OPERATING SEGMENTS | CLECO POWER | Affiliate
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	1,628	1,224	3,087	2,879
OPERATING SEGMENTS | CLECO CAJUN
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	144,618	104,980	265,994	221,744
Revenue unrelated to contracts with customers
Other	18,183	17,326	36,052	35,108
Total revenue unrelated to contracts with customers	18,183	17,326	36,052	35,108
Operating revenue, net	162,801	122,306	302,046	256,852
Electric customer credits	0	(244)	0	(244)
Lease revenue	15,900	15,000	31,400	30,500
Deferred lease amortization	2,300	2,300	4,600	4,600
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 | 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	126,089	91,407	229,722	192,914
Revenue unrelated to contracts with customers
Contract with customer, amortization	(3,600)	(3,300)	(7,200)	(6,400)
OPERATING SEGMENTS | CLECO CAJUN | Transmission, net
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	18,529	13,573	36,272	28,830
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	0
OTHER
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	23,332	23,700	48,306	48,436
Revenue unrelated to contracts with customers
Other	2	1	2	2
Total revenue unrelated to contracts with customers	2	1	2	2
Operating revenue, net	23,334	23,701	48,308	48,438
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 | 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)	(4,840)	(4,840)
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	1	0
OTHER | Affiliate
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	25,752	26,120	53,145	53,276
ELIMINATIONS
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	(29,516)	(28,939)	(61,059)	(59,690)
Revenue unrelated to contracts with customers
Other	0	2	(1)	0
Total revenue unrelated to contracts with customers	0	2	(1)	0
Operating revenue, net	(29,516)	(28,937)	(61,060)	(59,690)
Electric customer credits	0	(1)	0	0
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 | 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	(2,136)	(1,595)	(4,827)	(3,535)
ELIMINATIONS | Other
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	0	0	0	0
ELIMINATIONS | Affiliate
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	$ (27,380)	$ (27,344)	$ (56,232)	$ (56,155)

XML

Revenue Recognition - Narrative (Details) $ in Millions	Jun. 30, 2022 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Unsatisfied performance obligations	$ 58.5
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-01 | Minimum
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Unsatisfied performance obligation durations	2 years
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-01 | Maximum
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Unsatisfied performance obligation durations	12 years

XML

Regulatory Assets and Liabilities - Schedule of Regulatory Assets and Liabilities (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2022	Dec. 31, 2021
Regulatory Assets [Line Items]
Total regulatory assets, net	$ 640,305	$ 801,363
Financing costs
Regulatory Assets [Line Items]
Regulatory assets	7,076	7,248
Postretirement costs
Regulatory Assets [Line Items]
Regulatory assets	12,430	13,424
Fair value of long-term debt
Regulatory Assets [Line Items]
Regulatory assets	108,449	112,150
Debt issuance costs
Regulatory Assets [Line Items]
Regulatory assets	4,754	4,920
CLECO POWER
Regulatory Assets [Line Items]
Regulatory assets	691,111	759,165
Regulatory liabilities	(183,515)	(95,544)
Total regulatory assets, net	507,596	663,621
CLECO POWER | Acquisition/ transaction costs
Regulatory Assets [Line Items]
Regulatory assets	$ 1,860	1,913
Regulatory asset, amortization period	17 years 6 months
CLECO POWER | Acquisition/ transaction costs | Coughlin transaction costs
Regulatory Assets [Line Items]
Regulatory assets	$ 830	845
Regulatory asset, amortization period	27 years
CLECO POWER | Accumulated deferred fuel
Regulatory Assets [Line Items]
Regulatory assets	$ 93,376	56,826
CLECO POWER | Affordability study
Regulatory Assets [Line Items]
Regulatory assets	$ 12,405	13,094
Regulatory asset, amortization period	9 years
CLECO POWER | AFUDC equity gross-up
Regulatory Assets [Line Items]
Regulatory assets	$ 65,025	66,574
CLECO POWER | AMI deferred revenue requirement
Regulatory Assets [Line Items]
Regulatory assets	$ 1,772	2,045
Regulatory asset, amortization period	3 years 9 months
CLECO POWER | AROs
Regulatory Assets [Line Items]
Regulatory assets	$ 16,148	15,141
CLECO POWER | Bayou Vista to Segura deferred revenue requirement
Regulatory Assets [Line Items]
Regulatory assets	$ 5,020	1,392
Regulatory asset, amortization period	1 year
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	768	17,113
CLECO POWER | Deferred storm restoration costs - Hurricane Ida
Regulatory Assets [Line Items]
Regulatory assets	9,281	37,617
CLECO POWER | Deferred storm restoration costs - Hurricane Laura
Regulatory Assets [Line Items]
Regulatory assets	2,437	54,282
CLECO POWER | Deferred storm restoration costs - Hurricane Zeta
Regulatory Assets [Line Items]
Regulatory assets	148	3,296
CLECO POWER | Deferred storm restoration costs - Winter Storms Uri & Viola
Regulatory Assets [Line Items]
Regulatory assets	0	1,912
CLECO POWER | Station closure costs | Dolet Hills
Regulatory Assets [Line Items]
Regulatory assets	145,892	145,844
CLECO POWER | Energy efficiency
Regulatory Assets [Line Items]
Regulatory assets	$ 940	1,645
Regulatory asset, amortization period	9 months
CLECO POWER | Financing costs
Regulatory Assets [Line Items]
Regulatory assets	$ 6,641	6,826
CLECO POWER | Interest costs
Regulatory Assets [Line Items]
Regulatory assets	3,334	3,459
CLECO POWER | Mine closure costs | Lignite Mine
Regulatory Assets [Line Items]
Regulatory assets	135,176	136,980
CLECO POWER | Madison Unit 3 property taxes
Regulatory Assets [Line Items]
Regulatory assets	12,993	8,362
CLECO POWER | Non-service cost of postretirement benefits
Regulatory Assets [Line Items]
Regulatory assets	14,033	12,950
CLECO POWER | Other
Regulatory Assets [Line Items]
Regulatory assets	10,129	11,224
CLECO POWER | Postretirement costs
Regulatory Assets [Line Items]
Regulatory assets	111,607	117,773
CLECO POWER | Production operations and maintenance expenses
Regulatory Assets [Line Items]
Regulatory assets	$ 9,757	11,058
Regulatory asset, amortization period	3 years
CLECO POWER | Rodemacher Unit 2 deferred costs | Rodemacher Unit 2 deferred costs
Regulatory Assets [Line Items]
Regulatory assets	$ 9,780	6,931
CLECO POWER | St. Mary Clean Energy Center
Regulatory Assets [Line Items]
Regulatory assets	$ 5,219	6,089
Regulatory asset, amortization period	3 years
CLECO POWER | Training costs
Regulatory Assets [Line Items]
Regulatory assets	$ 5,852	5,929
Regulatory asset, amortization period	37 years 6 months
CLECO POWER | Tree trimming costs
Regulatory Assets [Line Items]
Regulatory assets	$ 7,735	9,092
Regulatory asset, amortization period	2 years 9 months
CLECO POWER | Deferred taxes, net
Regulatory Assets [Line Items]
Regulatory liabilities	$ (65,857)	(95,544)
CLECO POWER | Storm reserves
Regulatory Assets [Line Items]
Regulatory liabilities	$ (117,658)	$ 0

XML

Regulatory Assets and Liabilities - Narrative (Details) $ in Millions		24 Months Ended
	Jun. 22, 2022 USD ($)	Dec. 31, 2021 storm hurricane	Jun. 30, 2022 USD ($)	Mar. 30, 2022 USD ($)
Regulatory Liabilities [Line Items]
Securitized storm restoration costs				$ 424.1
Deferred storm restoration costs - Hurricane Ida
Regulatory Liabilities [Line Items]
Securitized storm restoration costs				$ 95.0
CLECO POWER
Regulatory Liabilities [Line Items]
Securitized storm restoration costs, reserve for future costs	$ 102.3
CLECO POWER | Hurricanes
Regulatory Liabilities [Line Items]
Number of hurricanes | hurricane		4
Number of severe winter storms | storm		2
CLECO POWER | Deferred storm restoration costs - Hurricane Ida
Regulatory Liabilities [Line Items]
Securitized storm restoration costs, reserve for future costs			$ 15.4
Securitized storm restoration costs, amount withdrawn	$ 79.6
Securitized storm restoration costs, current			$ 9.3

XML

Fair Value Accounting and Financial Instruments - Carrying Value and Estimated Fair Value (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Deferred debt issuance costs not included in the carrying value of long-term debt	$ 17,500	$ 13,200
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	13,000	7,900
CARRYING VALUE
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt	3,578,803	3,482,405
CARRYING VALUE | CLECO POWER
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt	1,920,354	1,820,254
FAIR VALUE
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt	3,427,506	3,752,220
FAIR VALUE | CLECO POWER
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt	$ 1,944,134	$ 2,085,944

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	Jun. 30, 2022	Dec. 31, 2021
Asset description
Money market funds	$ 227,618	$ 145,033
Total assets	379,728	239,474
Liability description
Total liabilities	7,181	834
CLECO POWER
Asset description
Money market funds	149,897	82,411
Total assets	160,754	87,926
Liability description
Total liabilities	719	597
FTRs
Asset description
Derivative assets	11,863	6,977
Liability description
Derivative liabilities	7,181	834
FTRs | CLECO POWER
Asset description
Derivative assets	10,857	5,515
Liability description
Derivative liabilities	719	597
Natural gas derivatives
Asset description
Derivative assets	140,247	87,464
QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1)
Asset description
Money market funds	227,618	145,033
Total assets	227,618	145,033
Liability description
Total liabilities	0	0
QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) | CLECO POWER
Asset description
Money market funds	149,897	82,411
Total assets	149,897	82,411
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
SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2)
Asset description
Money market funds	0	0
Total assets	140,247	87,464
Liability description
Total liabilities	0	0
SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) | CLECO POWER
Asset description
Money market funds	0	0
Total assets	0	0
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	140,247	87,464
SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3)
Asset description
Money market funds	0	0
Derivative assets	11,863	6,977
Total assets	11,863	6,977
Liability description
Derivative liabilities	7,181	834
Total liabilities	7,181	834
SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | CLECO POWER
Asset description
Money market funds	0	0
Derivative assets	10,857	5,515
Total assets	10,857	5,515
Liability description
Derivative liabilities	719	597
Total liabilities	719	597
SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | FTRs
Asset description
Derivative assets	11,863	6,977
Liability description
Derivative liabilities	7,181	834
SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | FTRs | CLECO POWER
Asset description
Derivative assets	10,857	5,515
Liability description
Derivative liabilities	719	597
SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | Natural gas derivatives
Asset description
Derivative assets	$ 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		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Beginning balance	$ 515	$ 1,023	$ 6,143	$ 3,180
Unrealized gains (losses)	(669)	(1,005)	(1,025)	15,155
Purchases	6,774	9,958	7,066	10,806
Settlements	(1,938)	(2,475)	(7,502)	(21,640)
Ending balance	4,682	7,501	4,682	7,501
CLECO POWER
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Beginning balance	567	1,088	4,918	3,216
Unrealized gains (losses)	4,267	(402)	4,267	(402)
Purchases	6,577	7,768	6,869	8,616
Settlements	(1,273)	(2,464)	(5,916)	(5,440)
Ending balance	$ 10,138	$ 5,990	$ 10,138	$ 5,990

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	Jun. 30, 2022 USD ($) $ / MW	Dec. 31, 2021 USD ($) $ / MW
FAIR VALUE
ASSETS | $	$ 11,863	$ 6,977
LIABILITIES | $	7,181	834
CLECO POWER
FAIR VALUE
ASSETS | $	10,857	5,515
LIABILITIES | $	$ 719	$ 597
Minimum
FAIR VALUE
FORWARD PRICE RANGE (usd per mwh) | $ / MW	(14.97)	(3.94)
Minimum | CLECO POWER
FAIR VALUE
FORWARD PRICE RANGE (usd per mwh) | $ / MW	(6.61)	(4.91)
Maximum
FAIR VALUE
FORWARD PRICE RANGE (usd per mwh) | $ / MW	19.75	9.25
Maximum | CLECO POWER
FAIR VALUE
FORWARD PRICE RANGE (usd per mwh) | $ / MW	19.75	9.25

XML

Fair Value Accounting and Financial Instruments - Institutional Money Market Funds (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items]
Cash and cash equivalents	$ 125,311	$ 145,011
CLECO POWER
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items]
Cash and cash equivalents	47,611	82,411
Non-current restricted cash and cash equivalents
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items]
Restricted cash and cash equivalents	102,307	22
Non-current restricted cash and cash equivalents | CLECO POWER
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items]
Restricted cash and cash equivalents	$ 102,286	$ 0

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 ($)	Jun. 30, 2022	Dec. 31, 2021
GROSS ASSET (LIABILITY)
Commodity-related contracts, net	$ 187,429,000	$ 93,607,000
GROSS AMOUNTS OFFSET ON THE BALANCE SHEET
Derivative, contract netting	0	0
Derivative, collateral	(42,500,000)	0
NET ASSET (LIABILITY) ON THE BALANCE SHEET
Net asset (liability) on the balance sheet	144,929,000	93,607,000
GROSS AMOUNTS NOT OFFSET ON THE BALANCE SHEET
Collateral, assets	(106,492,000)	(15,000,000)
NET AMOUNT
Net amount	38,437,000	78,607,000
Price risk derivatives | CLECO POWER
GROSS ASSET (LIABILITY)
Commodity-related contracts, net	10,138,000	4,918,000
Price risk derivatives | Energy risk management assets, current
GROSS ASSET (LIABILITY)
Derivative asset	11,863,000	6,977,000
GROSS AMOUNTS OFFSET ON THE BALANCE SHEET
Derivative asset, contract netting	0	0
Derivative asset, collateral	0
NET ASSET (LIABILITY) ON THE BALANCE SHEET
Derivative asset	11,863,000	6,977,000
GROSS AMOUNTS NOT OFFSET ON THE BALANCE SHEET
Collateral, assets	0	0
NET AMOUNT
Derivative asset, net	11,863,000	6,977,000
Price risk derivatives | Energy risk management assets, current | CLECO POWER
GROSS ASSET (LIABILITY)
Derivative asset	10,857,000	5,515,000
Price risk derivatives | Energy risk management liabilities
GROSS ASSET (LIABILITY)
Derivative liability	(7,181,000)	(834,000)
GROSS AMOUNTS OFFSET ON THE BALANCE SHEET
Derivative liability, contract netting	0	0
Derivative liability, collateral	0
NET ASSET (LIABILITY) ON THE BALANCE SHEET
Derivative liability	(7,181,000)	(834,000)
GROSS AMOUNTS NOT OFFSET ON THE BALANCE SHEET
Collateral, liability	0	0
NET AMOUNT
Derivative liability, net	(7,181,000)	(834,000)
Price risk derivatives | Energy risk management liabilities | CLECO POWER
GROSS ASSET (LIABILITY)
Derivative liability	(719,000)	(597,000)
Natural gas derivatives | Energy risk management assets, current
GROSS ASSET (LIABILITY)
Derivative asset	85,708,000	37,061,000
GROSS AMOUNTS OFFSET ON THE BALANCE SHEET
Derivative asset, contract netting	(2,497,000)	(559,000)
Derivative asset, collateral	(23,524,000)
NET ASSET (LIABILITY) ON THE BALANCE SHEET
Derivative asset	59,687,000	36,502,000
GROSS AMOUNTS NOT OFFSET ON THE BALANCE SHEET
Collateral, assets	(62,184,000)	(15,000,000)
NET AMOUNT
Derivative asset, net	(2,497,000)	21,502,000
Natural gas derivatives | Energy risk management assets, noncurrent
GROSS ASSET (LIABILITY)
Derivative asset	99,536,000	50,962,000
GROSS AMOUNTS OFFSET ON THE BALANCE SHEET
Derivative asset, contract netting	0	0
Derivative asset, collateral	(18,976,000)
NET ASSET (LIABILITY) ON THE BALANCE SHEET
Derivative asset	80,560,000	50,962,000
GROSS AMOUNTS NOT OFFSET ON THE BALANCE SHEET
Collateral, assets	(44,308,000)	0
NET AMOUNT
Derivative asset, net	36,252,000	50,962,000
Natural gas derivatives | Energy risk management liabilities
GROSS ASSET (LIABILITY)
Derivative liability	(2,497,000)	(559,000)
GROSS AMOUNTS OFFSET ON THE BALANCE SHEET
Derivative liability, contract netting	2,497,000	559,000
Derivative liability, collateral	0
NET ASSET (LIABILITY) ON THE BALANCE SHEET
Derivative liability	0	0
GROSS AMOUNTS NOT OFFSET ON THE BALANCE SHEET
Collateral, liability	0	0
NET AMOUNT
Derivative liability, net	$ 0	$ 0

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Fair Value Accounting and Financial Instruments - Narrative (Details) - DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS - USD ($)	Jun. 30, 2022	Dec. 31, 2021
Derivative Instruments, Gain (Loss) [Line Items]
Total derivative, collateral, offset	$ 42,500,000	$ 0
Energy risk management assets, current | Natural gas derivatives
Derivative Instruments, Gain (Loss) [Line Items]
Derivative asset, collateral, offset	23,524,000
Energy risk management assets, noncurrent | Natural gas derivatives
Derivative Instruments, Gain (Loss) [Line Items]
Derivative asset, collateral, offset	$ 18,976,000

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Fair Value Accounting and Financial Instruments - Amount of Gain (Loss) Recognized in Income on Derivatives (Details) - DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Commodity-related contracts
Net gain (loss) recognized in income on derivatives	$ 31,807	$ 50,278	$ 163,585	$ 58,132
Price risk derivatives | Accumulated deferred fuel
Commodity-related contracts
Unrealized gains (losses) associated with FTRs	4,300	(400)	4,300	(400)
Price risk derivatives | CLECO POWER
Commodity-related contracts
Net gain (loss) recognized in income on derivatives	4,234	530	4,580	794
Price risk derivatives | CLECO POWER | Accumulated deferred fuel
Commodity-related contracts
Unrealized gains (losses) associated with FTRs	4,300	(400)	4,300	(400)
Price risk derivatives | Electric operations
Commodity-related contracts
Net gain (loss) recognized in income on derivatives	6,080	1,763	7,663	9,207
Price risk derivatives | Electric operations | CLECO POWER
Commodity-related contracts
Net gain (loss) recognized in income on derivatives	6,080	1,763	7,663	9,208
Price risk derivatives | Purchased power
Commodity-related contracts
Net gain (loss) recognized in income on derivatives	(11,689)	(3,168)	(9,966)	(8,972)
Price risk derivatives | Purchased power | CLECO POWER
Commodity-related contracts
Net gain (loss) recognized in income on derivatives	(1,846)	(1,233)	(3,083)	(8,414)
Natural gas derivatives | Fuel used for electric generation
Commodity-related contracts
Net gain (loss) recognized in income on derivatives	$ 37,416	$ 51,683	$ 165,888	$ 57,897

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Fair Value Accounting and Financial Instruments - Volume of Commodity-Related Derivative Contracts (Details) MWh in Thousands, MMBTU in Thousands	6 Months Ended		12 Months Ended
	Jun. 30, 2022 MWh	Jun. 30, 2022 MMBTU	Dec. 31, 2021 MWh	Dec. 31, 2021 MMBTU
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items]
Volume outstanding	32,409	96,010	14,055	109,306
CLECO POWER
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items]
Volume outstanding	19,852		8,899

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Debt (Details) - USD ($) $ in Thousands			6 Months Ended
	Jun. 23, 2022	Jun. 22, 2022	Jun. 30, 2022	Dec. 31, 2021
Debt [Line Items]
Short-term debt			$ 55,000	$ 0
Secured debt | Cleco Securitization I, senior secured storm recovery bonds
Debt [Line Items]
Long-term debt, current			3,200
Senior notes | Senior notes due May 2023
Debt [Line Items]
Long-term debt, current			165,000
CLECO POWER
Debt [Line Items]
Short-term debt			55,000	$ 0
CLECO POWER | Cleco Power, float rate senior notes
Debt [Line Items]
Repayments of long-term debt	$ 325,000
CLECO POWER | Line of credit | Revolving credit agreement
Debt [Line Items]
Short-term debt			55,000
Outstanding borrowing capacity			$ 300,000
Interest rate			2.89%
Commitment fees			0.15%
CLECO POWER | Line of credit | LIBOR | Revolving credit agreement
Debt [Line Items]
Basis spread on variable rate			1.25%
CLECO POWER | Line of credit | ABR | Revolving credit agreement
Debt [Line Items]
Basis spread on variable rate			0.25%
CLECO POWER | Secured debt | Cleco Securitization I, senior secured storm recovery bonds
Debt [Line Items]
Debt, face amount		$ 425,000
Long-term debt, current			$ 3,200
CLECO POWER | Secured debt | Cleco Securitization I, senior secured storm recovery bonds, tranche one
Debt [Line Items]
Interest rate		4.016%
Debt, face amount		$ 125,000
Debt term		4 years 9 months 14 days
CLECO POWER | Secured debt | Cleco Securitization I, senior secured storm recovery bonds, tranche two
Debt [Line Items]
Interest rate		4.646%
Debt, face amount		$ 300,000
Debt term		15 years

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Pension Plan and Employee Benefits - Narrative (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Pension Plan
Defined Benefit Plan Disclosure [Line Items]
Pension contributions required through 2025			$ 5,400,000
Defined benefit plan contributions by employer	$ 4,009,000	$ 7,358,000	8,027,000	$ 13,561,000
Pension Plan | Other Subsidiaries
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan contributions by employer	800,000	900,000	1,600,000	1,800,000
Other Benefits Plan
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan contributions by employer	1,225,000	1,302,000	2,449,000	2,605,000
Assets held-in-trust, noncurrent	0		0
Other Benefits Plan | CLECO POWER
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan contributions by employer	1,100,000	1,200,000	2,200,000	2,400,000
SERP
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan contributions by employer	935,000	249,000	1,870,000	1,891,000
SERP | CLECO POWER
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan contributions by employer	$ 100,000	$ 100,000	$ 300,000	$ 300,000

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Pension Plan and Employee Benefits - Net Periodic Pension and Benefits Cost (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
PENSION BENEFITS
Components of periodic benefit costs
Service cost	$ 2,143	$ 2,730	$ 4,293	$ 5,258
Interest cost	4,960	4,719	9,920	9,334
Expected return on plan assets	(6,177)	(5,698)	(12,354)	(11,400)
Amortizations
Net loss	3,083	5,607	6,168	10,369
Total benefit cost	4,009	7,358	8,027	13,561
OTHER BENEFITS
Components of periodic benefit costs
Service cost	551	595	1,102	1,190
Interest cost	371	323	742	645
Expected return on plan assets	0	0	0	0
Amortizations
Net loss	303	384	605	770
Total benefit cost	1,225	1,302	2,449	2,605
SERP
Components of periodic benefit costs
Service cost	57	61	113	116
Interest cost	670	644	1,340	1,269
Prior period service credit	(54)	(55)	(107)	(107)
Amortizations
Net loss	262	(401)	524	613
Total benefit cost	$ 935	$ 249	$ 1,870	$ 1,891

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Pension Plan and Employee Benefits - Current and Non-Current Portions of the Other Benefits Liability (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Defined Benefit Plan Disclosure [Line Items]
Non-current	$ 290,638	$ 291,606
CLECO POWER
Defined Benefit Plan Disclosure [Line Items]
Non-current	206,150	205,214
Other Benefits Plan
Defined Benefit Plan Disclosure [Line Items]
Current	5,181	5,181
Non-current	49,210	50,093
Other Benefits Plan | CLECO POWER
Defined Benefit Plan Disclosure [Line Items]
Current	4,432	4,432
Non-current	$ 38,634	$ 39,315

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Pension Plan and Employee Benefits - Current and Non-Current Portions of SERP Liability (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Defined Benefit Plan Disclosure [Line Items]
Non-current	$ 290,638	$ 291,606
SERP Benefits
Defined Benefit Plan Disclosure [Line Items]
Current	4,654	4,654
Non-current	86,579	88,523
CLECO POWER
Defined Benefit Plan Disclosure [Line Items]
Non-current	206,150	205,214
CLECO POWER | SERP Benefits
Defined Benefit Plan Disclosure [Line Items]
Current	679	679
Non-current	$ 12,667	$ 12,909

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Pension Plan and Employee Benefits - 401 (K) Plans (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Defined Contribution Plan Disclosure [Line Items]
401(k) Plan expense	$ 1,831	$ 2,120	$ 4,422	$ 4,880
Other Subsidiaries
Defined Contribution Plan Disclosure [Line Items]
401(k) Plan expense	$ 847	$ 946	$ 2,169	$ 2,326

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Income Taxes - Effective Tax Rate Reconciliation (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Effective Income Tax Rate [Line Items]
Effective tax rate	95.60%	11.10%	13.20%	0.40%
CLECO POWER
Effective Income Tax Rate [Line Items]
Effective tax rate	5.50%	24.60%	4.00%	(1.70%)

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Income Taxes - Narrative (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Uncertain Tax Positions [Line Items]
Interest expense related to uncertain tax positions	$ 0	$ 0	$ 0	$ 0
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	3,000,000		3,000,000
CLECO POWER
Uncertain Tax Positions [Line Items]
Interest expense related to uncertain tax positions	0	$ 0	0	$ 0
Liability for uncertain tax positions	0		0		0
Interest payable related to uncertain tax positions	0		0		$ 0
Deferred employer payroll tax payments	$ 1,800,000		$ 1,800,000

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Disclosures about Segments (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Revenue
Electric operations	$ 492,283	$ 351,936	$ 889,592	$ 718,181
Other operations	53,264	45,330	105,271	95,056
Affiliate revenue	0	0	0	0
Electric customer credits	(129)	(18,517)	(265)	(39,494)
Operating revenue, net	545,418	378,749	994,598	773,743
Net income (loss)	1,363	78,822	157,107	99,149
Depreciation and amortization	71,892	57,699	144,689	115,862
Interest income	1,241	829	1,997	1,475
Interest charges	36,407	33,291	69,927	67,183
Federal and state income tax expense (benefit)	29,527	9,837	23,940	416
Other corporate costs and noncash items	5,728	(1,385)	3,240	(4,331)
EBITDA	143,676	177,435	396,906	276,804
Additions to property, plant, and equipment			101,673	138,516
Equity investment in investees	2,072		2,072		$ 2,072
Goodwill	1,490,797		1,490,797		1,490,797
Total assets	8,462,321		8,462,321		8,125,018
CLECO POWER
Revenue
Electric operations	368,614	262,948	664,711	530,107
Other operations	18,686	16,269	37,771	34,895
Affiliate revenue	1,628	1,224	3,087	2,879
Electric customer credits	(129)	(18,762)	(265)	(39,738)
Operating revenue, net	388,799	261,679	705,304	528,143
Net income (loss)	54,705	27,421	93,729	45,846
Interest income	1,035	825	1,775	1,468
Interest charges	21,305	18,237	40,108	36,883
Federal and state income tax expense (benefit)	3,214	8,956	3,938	(767)
Additions to property, plant, and equipment			98,162	132,194
Equity investment in investees	2,072		2,072		2,072
Total assets	5,444,112		5,444,112		5,129,501
Power supply agreements
Revenue
Amortization of intangible assets	6,400	6,400	12,800	12,800
OPERATING SEGMENTS
Revenue
Electric operations	494,703	354,355	894,433	723,021
Other operations	55,398	46,924	110,095	98,589
Affiliate revenue	1,628	1,224	3,087	2,879
Electric customer credits	(129)	(18,518)	(265)	(39,494)
Operating revenue, net	551,600	383,985	1,007,350	784,995
Net income (loss)	53,773	79,915	186,178	112,821
Depreciation and amortization	67,518	53,272	135,936	107,000
Interest income	1,211	828	1,963	1,474
Interest charges	21,348	18,057	40,143	36,551
Federal and state income tax expense (benefit)	2,248	27,019	36,612	21,906
EBITDA	143,676	177,435	396,906	276,804
Additions to property, plant, and equipment			101,001	137,076
Equity investment in investees	2,072		2,072		2,072
Goodwill	1,490,797		1,490,797		1,490,797
Total assets	8,077,999		8,077,999		7,724,388
OPERATING SEGMENTS | CLECO POWER
Revenue
Electric operations	368,614	262,948	664,711	530,107
Other operations	18,686	16,269	37,771	34,895
Affiliate revenue	1,628	1,224	3,087	2,879
Electric customer credits	(129)	(18,762)	(265)	(39,738)
Operating revenue, net	388,799	261,679	705,304	528,143
Net income (loss)	54,705	27,421	93,729	45,846
Depreciation and amortization	44,299	40,933	89,538	83,009
Interest income	1,035	825	1,775	1,468
Interest charges	21,305	18,237	40,108	36,883
Federal and state income tax expense (benefit)	3,214	8,956	3,938	(767)
EBITDA	122,488	94,722	225,538	163,503
Additions to property, plant, and equipment			98,162	132,194
Equity investment in investees	2,072		2,072		2,072
Goodwill	1,490,797		1,490,797		1,490,797
Total assets	6,934,909		6,934,909		6,620,298
OPERATING SEGMENTS | CLECO CAJUN
Revenue
Electric operations	126,089	91,407	229,722	192,914
Other operations	36,712	30,655	72,324	63,694
Affiliate revenue	0	0	0	0
Electric customer credits	0	244	0	244
Operating revenue, net	162,801	122,306	302,046	256,852
Net income (loss)	(932)	52,494	92,449	66,975
Depreciation and amortization	23,219	12,339	46,398	23,991
Interest income	176	3	188	6
Interest charges	43	(180)	35	(332)
Federal and state income tax expense (benefit)	(966)	18,063	32,674	22,673
EBITDA	21,188	82,713	171,368	113,301
Additions to property, plant, and equipment			2,839	4,882
Equity investment in investees	0		0		0
Goodwill	0		0		0
Total assets	1,143,090		1,143,090		1,104,090
Amortization of deferred lease income	(2,300)	(2,300)	(4,600)	(4,600)
OPERATING SEGMENTS | CLECO CAJUN | Power supply agreements
Revenue
Amortization of intangible assets and liabilities	3,600	3,300	7,200	6,400
OTHER
Revenue
Electric operations	(2,420)	(2,420)	(4,840)	(4,840)
Other operations	2	1	3	2
Affiliate revenue	25,752	26,120	53,145	53,276
Electric customer credits	0	0	0	0
Operating revenue, net	23,334	23,701	48,308	48,438
Net income (loss)	(52,409)	(1,093)	(29,070)	(13,672)
Depreciation and amortization	4,373	4,427	8,752	8,862
Interest income	53	14	83	57
Interest charges	15,081	15,248	29,834	30,687
Federal and state income tax expense (benefit)	27,280	(17,182)	(12,672)	(21,490)
Additions to property, plant, and equipment			672	1,440
Equity investment in investees	(185,901)		(185,901)		(46,901)
Goodwill	0		0		0
Total assets	373,804		373,804		619,101
OTHER | Power supply agreements | CLECO POWER
Revenue
Amortization of intangible assets	2,400	2,400	4,800	4,800
ELIMINATIONS
Revenue
Electric operations	0	1	(1)	0
Other operations	(2,136)	(1,595)	(4,827)	(3,535)
Affiliate revenue	(27,380)	(27,344)	(56,232)	(56,155)
Electric customer credits	0	1	0	0
Operating revenue, net	(29,516)	(28,937)	(61,060)	(59,690)
Net income (loss)	(1)	0	(1)	0
Depreciation and amortization	1	0	1	0
Interest income	(23)	(13)	(49)	(56)
Interest charges	(22)	(14)	(50)	(55)
Federal and state income tax expense (benefit)	(1)	$ 0	0	0
Additions to property, plant, and equipment			0	$ 0
Equity investment in investees	185,901		185,901		46,901
Goodwill	0		0		0
Total assets	$ 10,518		$ 10,518		$ (218,471)

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Regulation and Rates - Provision for Rate Refund (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021	Jul. 31, 2019
Regulation and Rates [Line Items]
Provision for rate refund	$ 5,978	$ 5,682
Cleco Katrina/Rita storm recovery charges
Regulation and Rates [Line Items]
Provision for rate refund	1,614	1,611
FRP
Regulation and Rates [Line Items]
Provision for rate refund	1,230	1,229
Site-specific industrial customer
Regulation and Rates [Line Items]
Provision for rate refund	1,125	833
TCJA
Regulation and Rates [Line Items]
Provision for rate refund	2,057	2,057
CLECO POWER
Regulation and Rates [Line Items]
Provision for rate refund	5,978	5,682	$ 79,200
CLECO POWER | Cleco Katrina/Rita storm recovery charges
Regulation and Rates [Line Items]
Provision for rate refund	1,614	1,611
CLECO POWER | FRP
Regulation and Rates [Line Items]
Provision for rate refund	1,230	1,229
CLECO POWER | Site-specific industrial customer
Regulation and Rates [Line Items]
Provision for rate refund	1,125	833
CLECO POWER | TCJA
Regulation and Rates [Line Items]
Provision for rate refund	$ 2,057	$ 2,057

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Regulation and Rates - Narrative (Details) - USD ($) $ in Thousands		6 Months Ended
	Jun. 16, 2021	Jun. 30, 2022	Dec. 31, 2021	Jun. 30, 2021	Mar. 15, 2022	Jul. 01, 2021	Aug. 31, 2020	Jul. 31, 2019
Regulation and Rates [Line Items]
Refund due to customers		$ 5,978	$ 5,682
Current regulatory liabilities		43,222	44,072
FRP
Regulation and Rates [Line Items]
Refund due to customers		1,230	1,229
Cleco Katrina/Rita storm recovery charges
Regulation and Rates [Line Items]
Refund due to customers		1,614	1,611
CLECO POWER
Regulation and Rates [Line Items]
Refund due to customers		5,978	5,682					$ 79,200
Regulatory liabilities		183,515	95,544
Current regulatory liabilities		43,222	44,072
CLECO POWER | FRP
Regulation and Rates [Line Items]
Refund due to customers		1,230	1,229
CLECO POWER | Cleco Katrina/Rita storm recovery charges
Regulation and Rates [Line Items]
Refund due to customers		1,614	$ 1,611
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
CLECO POWER | LPSC | Merger Commitments, cost savings
Regulation and Rates [Line Items]
Regulatory liabilities					$ 4,300
CLECO POWER | LPSC | FRP
Regulation and Rates [Line Items]
Target ROE allowed by FRP		9.50%	9.50%	10.00%
Percentage of retail earnings within range to be returned to customers		60.00%	60.00%	60.00%
ROE for customer credit, low range		10.00%	10.00%	10.90%
ROE for customer credit, high range		10.50%	10.50%	11.75%
CLECO POWER | LPSC | FRP | Maximum
Regulation and Rates [Line Items]
Target ROE allowed by FRP		10.00%	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		$ 237,200
Current regulatory liabilities		$ 43,200

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Variable Interest Entities - Summary of Cleco Securitization I Financial Statement Impact (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2020
Variable Interest Entity [Line Items]
Interest accrued	$ 15,668		$ 15,203
Current	10,958		1,674
Long-term debt and finance leases due within one year	261,506		93,455
Long-term debt and finance leases, net	3,313,759		3,390,033
Member’s equity	2,978,446	$ 3,099,914	2,954,156	$ 2,856,380	$ 2,777,978	$ 2,757,023
Storm recover property
Variable Interest Entity [Line Items]
Intangible assets	415,946		0
VIE, Primary Beneficiary - Cleco Securitization I
Variable Interest Entity [Line Items]
Interest accrued	474,000
Current	4,246,000
Long-term debt and finance leases due within one year	3,204,000
Long-term debt and finance leases, net	414,871,000
Member’s equity	1,643,000
VIE, Primary Beneficiary - Cleco Securitization I | Storm recover property
Variable Interest Entity [Line Items]
Intangible assets	415,946,000
CLECO POWER
Variable Interest Entity [Line Items]
Interest accrued	5,536		5,080
Current	10,958		1,674
Long-term debt and finance leases due within one year	28,985		25,755
Long-term debt and finance leases, net	1,892,407		1,800,854
Member’s equity	1,991,005	$ 1,987,930	1,948,537	$ 1,854,598	$ 1,826,826	$ 1,807,879
CLECO POWER | Storm recover property
Variable Interest Entity [Line Items]
Intangible assets	415,946		$ 0
CLECO POWER | VIE, Primary Beneficiary - Cleco Securitization I
Variable Interest Entity [Line Items]
Interest accrued	474,000
Current	4,246,000
Long-term debt and finance leases due within one year	3,204,000
Long-term debt and finance leases, net	414,871,000
Member’s equity	1,643,000
CLECO POWER | VIE, Primary Beneficiary - Cleco Securitization I | Storm recover property
Variable Interest Entity [Line Items]
Intangible assets	$ 415,946,000

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Variable Interest Entities - Narrative (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2022	Dec. 31, 2021
Variable Interest Entity [Line Items]
Equity investment in investee	$ 2,072	$ 2,072
CLECO POWER
Variable Interest Entity [Line Items]
Equity investment in investee	$ 2,072	$ 2,072
CLECO POWER | VIE, Not Primary Beneficiary - Oxbow
Variable Interest Entity [Line Items]
Ownership percentage by Cleco Power	50.00%
SWEPCO | VIE, Not Primary Beneficiary - 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		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Schedule of Equity Method Investments [Line Items]
Total equity investment in investee	$ 2,072		$ 2,072		$ 2,072
Operating revenue, net	545,418	$ 378,749	994,598	$ 773,743
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	(17,200)		(17,200)		(17,200)
Total equity investment in investee	2,072		2,072		$ 2,072
Operating revenue, net	388,799	261,679	705,304	528,143
CLECO POWER | Equity Method Investment, Nonconsolidated Investee or Group of Investees
Schedule of Equity Method Investments [Line Items]
Operating revenue, net	85	1,627	151	3,626
Operating expenses	85	1,627	151	3,626
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 - VIE, Not Primary Beneficiary - Oxbow - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2022	Dec. 31, 2021
Variable Interest Entity [Line Items]
Oxbow’s net assets/liabilities	$ 4,145	$ 4,145
Cleco Power’s 50% equity	2,072	2,072
Cleco Power’s maximum exposure to loss	$ 2,072	$ 2,072
Ownership percentage by Cleco Power	50.00%

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Litigation, Other Commitments and Contingencies, and Disclosures about Guarantees - Litigation (Details) $ in Millions	1 Months Ended			24 Months Ended
	Sep. 30, 2015 USD ($)	Dec. 31, 2014 claim	Nov. 30, 2014 claim	Dec. 31, 2019 USD ($)	Jun. 30, 2022 USD ($)	Mar. 29, 2021 USD ($)	Feb. 29, 2020 USD ($)
Loss Contingencies [Line Items]
Loss contingency, estimate of possible loss					$ 8.2
South Central Generating
Loss Contingencies [Line Items]
Loss contingency, estimate of possible loss					$ 1.5
Gulf Coast Spinning start up costs
Loss Contingencies [Line Items]
Allegations by plaintiff, failure to perform	$ 6.5
Gulf Coast Spinning construction of cotton spinning facility
Loss Contingencies [Line Items]
Allegations by plaintiff, failure to perform	$ 60.0
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 | Deferred storm restoration costs - Winter Storms Uri & Viola
Loss Contingencies [Line Items]
Capitalized storm restoration costs						$ 50.0
CLECO POWER | LPSC 2018-2019 Fuel Audit
Loss Contingencies [Line Items]
Fuel expense				$ 565.8
Gulf Coast Spinning Company, LLC | Gulf Coast Spinning construction of cotton spinning facility | Diversified Lands LLC
Loss Contingencies [Line Items]
Loans payable							$ 2.0

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Litigation, Other Commitments and Contingencies, and Disclosures about Guarantees - Off-Balance Sheet Commitments and Guarantees (Details) - USD ($)	6 Months Ended
	Jun. 30, 2022	Dec. 31, 2021
Guarantor Obligations [Line Items]
Guarantor obligations, collateral held directly or by third parties, amount	$ 0
Asset retirement obligations	74,600,000	$ 74,300,000
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
Asset retirement obligations	23,100,000	$ 23,000,000
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
Guarantor Obligations [Line Items]
Indemnification assets, maximum environmental costs	25,000,000
Indemnification assets	22,500,000
Indemnification assets, current	1,100,000
Indemnification assets, noncurrent	$ 21,400,000

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Litigation, Other Commitments and Contingencies, and Disclosures about Guarantees - Risks and Uncertainties (Details) - CLECO POWER - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Loss Contingencies [Line Items]
Regulatory assets	$ 691,111	$ 759,165
Dolet Hills | Station closure costs
Loss Contingencies [Line Items]
Regulatory assets	145,892	145,844
Lignite Mine | Mine closure costs
Loss Contingencies [Line Items]
Regulatory assets	$ 135,176	$ 136,980

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Affiliate Transactions - Narrative (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Related Party Transaction [Line Items]
Accounts receivable - affiliate	$ 6,850	$ 3,041
Accounts payable - affiliate	10,633	51,297
CLECO POWER
Related Party Transaction [Line Items]
Accounts receivable - affiliate	3,209	13,612
Accounts payable - affiliate	10,383	69,729
CLECO POWER | Cleco Holdings
Related Party Transaction [Line Items]
Accounts receivable - affiliate	207	10,347
Accounts payable - affiliate	$ 285	59,627
CLECO POWER | Cleco Holdings | Settlement of taxes payable
Related Party Transaction [Line Items]
Accounts payable - affiliate		$ 59,400

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Affiliate Transactions - Summary of Balances Payable To or Due From Affiliates (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Related Party Transaction [Line Items]
ACCOUNTS RECEIVABLE	$ 6,850	$ 3,041
ACCOUNTS PAYABLE	10,633	51,297
CLECO POWER
Related Party Transaction [Line Items]
ACCOUNTS RECEIVABLE	3,209	13,612
ACCOUNTS PAYABLE	10,383	69,729
CLECO POWER | Cleco Holdings
Related Party Transaction [Line Items]
ACCOUNTS RECEIVABLE	207	10,347
ACCOUNTS PAYABLE	285	59,627
CLECO POWER | Support Group
Related Party Transaction [Line Items]
ACCOUNTS RECEIVABLE	1,702	2,473
ACCOUNTS PAYABLE	10,006	10,038
CLECO POWER | Cleco Cajun
Related Party Transaction [Line Items]
ACCOUNTS RECEIVABLE	1,300	792
ACCOUNTS PAYABLE	$ 92	$ 64

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Intangible Assets and Liabilities - Narrative (Details) - USD ($)		3 Months Ended		6 Months Ended
	Jun. 22, 2022	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Storm recover property
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets acquired	$ 415,900,000
Amortization of intangible assets		$ 0		$ 0
Power supply agreements
Finite-Lived Intangible Assets [Line Items]
Amortization of intangible assets		6,400,000	$ 6,400,000	12,800,000	$ 12,800,000
Intangible assets, residual value		0		$ 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 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		$ 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		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
LTSA
Finite-Lived Intangible Assets [Line Items]
Amortization of intangible liabilities	$ 871	$ 871	$ 1,742	$ 1,742
Power supply agreements
Finite-Lived Intangible Assets [Line Items]
Amortization of intangible liabilities	389	718	778	1,600
Trade name
Finite-Lived Intangible Assets [Line Items]
Amortization of intangible assets	0	64	0	128
Power supply agreements
Finite-Lived Intangible Assets [Line Items]
Amortization of intangible assets	$ 6,400	$ 6,400	$ 12,800	$ 12,800

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Intangible Assets and Liabilities - Schedule of Finite-Lived Intangible Assets and Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Finite-Lived Intangible Assets [Line Items]
Total intangible assets carrying amount	$ 184,004	$ 184,004
Total intangible liability carrying amount	38,300	38,300
Net intangible assets carrying amount	145,704	145,704
Accumulated amortization	(92,745)	(82,466)
Net intangible assets subject to amortization	52,959	63,238
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
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		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balances, beginning of period	$ 3,099,914	$ 2,777,978	$ 2,954,156	$ 2,757,023
Balances, end of period	2,978,446	2,856,380	2,978,446	2,856,380
TOTAL AOCI
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balances, beginning of period	(23,615)	(25,168)	(23,629)	(25,796)
Balances, end of period	(23,608)	(25,588)	(23,608)	(25,588)
POSTRETIREMENT BENEFIT NET LOSS
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balances, beginning of period	(23,615)	(25,168)	(23,629)	(25,796)
Amounts reclassified from AOCI	7	(420)	21	208
Balances, end of period	(23,608)	(25,588)	(23,608)	(25,588)
CLECO POWER
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balances, beginning of period	1,987,930	1,826,826	1,948,537	1,807,879
Balances, end of period	1,991,005	1,854,598	1,991,005	1,854,598
CLECO POWER | TOTAL AOCI
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balances, beginning of period	(17,814)	(24,231)	(18,183)	(24,753)
Balances, end of period	(17,444)	(23,880)	(17,444)	(23,880)
CLECO POWER | POSTRETIREMENT BENEFIT NET LOSS
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balances, beginning of period	(12,579)	(18,681)	(12,885)	(19,139)
Amounts reclassified from AOCI	307	287	613	745
Balances, end of period	(12,272)	(18,394)	(12,272)	(18,394)
CLECO POWER | NET LOSS ON CASH FLOW HEDGES
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balances, beginning of period	(5,235)	(5,550)	(5,298)	(5,614)
Amounts reclassified from AOCI	63	64	126	128
Balances, end of period	$ (5,172)	$ (5,486)	$ (5,172)	$ (5,486)

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Storm Securitization and Cost Recovery (Details) $ in Thousands		6 Months Ended	24 Months Ended
	Jun. 01, 2021 USD ($)	Jun. 30, 2022 USD ($)	Dec. 31, 2021 USD ($) storm hurricane	Jun. 22, 2022 USD ($)	Mar. 30, 2022 USD ($)
Unusual or Infrequent Item, or Both [Line Items]
Securitized storm restoration costs					$ 424,100
Hurricanes
Unusual or Infrequent Item, or Both [Line Items]
Capitalized storm restoration costs, interim storm recovery amount	$ 16,000
Storm recovery, hurricanes Laura, Delta, and Zeta and winter storms Uri and Viola
Unusual or Infrequent Item, or Both [Line Items]
Securitized storm restoration costs					220,100
Deferred storm restoration costs - Hurricane Ida
Unusual or Infrequent Item, or Both [Line Items]
Securitized storm restoration costs					95,000
Storm recovery, reserve for future storm costs
Unusual or Infrequent Item, or Both [Line Items]
Securitized storm restoration costs					100,000
Storm recovery, upfront securitization costs and ongoing costs
Unusual or Infrequent Item, or Both [Line Items]
Securitized storm restoration costs					$ 9,000
Storm recovery, wholesale operations and maintenance
Unusual or Infrequent Item, or Both [Line Items]
Estimate of storm restoration costs		$ 7,300
CLECO POWER
Unusual or Infrequent Item, or Both [Line Items]
Regulatory assets		691,111	$ 759,165
CLECO POWER | Cleco Power, float rate senior notes
Unusual or Infrequent Item, or Both [Line Items]
Debt redeemed				$ 325,000
CLECO POWER | Cleco Securitization I, senior secured storm recovery bonds
Unusual or Infrequent Item, or Both [Line Items]
Debt, face amount				$ 425,000
CLECO POWER | Hurricanes
Unusual or Infrequent Item, or Both [Line Items]
Regulatory assets		124,300
CLECO POWER | Hurricanes
Unusual or Infrequent Item, or Both [Line Items]
Number of hurricanes | hurricane			4
Number of severe winter storms | storm			2
Estimate of storm restoration costs			$ 342,700
Capitalized storm restoration costs		211,100
CLECO POWER | Storm recovery, wholesale operations and maintenance
Unusual or Infrequent Item, or Both [Line Items]
Estimate of storm restoration costs		$ 7,300