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.