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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, 2022AT DEC. 31, 2021
(THOUSANDS)CARRYING
VALUE*
FAIR VALUECARRYING
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, 2022QUOTED PRICES
IN ACTIVE MARKETS
FOR IDENTICAL
ASSETS
(LEVEL 1)
SIGNIFICANT
OTHER
OBSERVABLE
INPUTS
(LEVEL 2)
SIGNIFICANT
UNOBSERVABLE
INPUTS
(LEVEL 3)
AT DEC. 31, 2021QUOTED 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 $— $— 
FTRs11,863   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)2022202120222021
Beginning balance
$515 $1,023 $6,143 $3,180 
Unrealized (losses) gains*(669)(1,005)(1,025)15,155 
Purchases6,774 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)ASSETSLIABILITIESLOWHIGH
FTRs at June 30, 2022$11,863 $7,181 RTO auction pricingFTR price - per MWh$(14.97)$19.75 
FTRs at Dec. 31, 2021$6,977 $834 RTO auction pricingFTR price - per MWh$(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, 2022AT 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 SHEETGROSS AMOUNTS OFFSET ON THE BALANCE SHEET
GROSS AMOUNTS NOT OFFSET ON THE BALANCE SHEET (1)
(THOUSANDS)BALANCE SHEET LINE ITEMGROSS ASSET (LIABILITY)CONTRACT NETTINGCASH
COLLATERAL
NET ASSET (LIABILITY) ON THE BALANCE SHEETCOLLATERALNET AMOUNT
Commodity-related contracts
 
FTRs 
CurrentEnergy risk management assets$11,863 $ $ $11,863 $ $11,863 
CurrentEnergy risk management liabilities(7,181)  (7,181) (7,181)
Natural gas derivatives
CurrentEnergy risk management assets85,708 (2,497)(23,524)59,687 (62,184)(2,497)
Non-currentEnergy risk management assets99,536  (18,976)80,560 (44,308)36,252 
CurrentEnergy 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 ITEMGROSS ASSET (LIABILITY)CONTRACT NETTINGNET ASSET (LIABILITY) ON THE BALANCE SHEETCOLLATERALNET AMOUNT
Commodity-related contracts
 
FTRs 
CurrentEnergy risk management assets$6,977 $— $6,977 $— $6,977 
CurrentEnergy risk management liabilities(834)— (834)— (834)
Natural gas derivatives
CurrentEnergy risk management assets37,061 (559)36,502 (15,000)21,502 
Non-currentEnergy risk management assets50,962 — 50,962 — 50,962 
CurrentEnergy 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 SHEETGROSS AMOUNTS OFFSET ON THE BALANCE SHEET
GROSS AMOUNTS NOT OFFSET ON THE BALANCE SHEET (1)
(THOUSANDS)BALANCE SHEET LINE ITEMGROSS ASSET (LIABILITY)CONTRACT NETTINGCASH
COLLATERAL
NET ASSET (LIABILITY) ON THE BALANCE SHEETCOLLATERALNET AMOUNT
Commodity-related contracts
 
FTRs 
CurrentEnergy risk management assets$11,863 $ $ $11,863 $ $11,863 
CurrentEnergy risk management liabilities(7,181)  (7,181) (7,181)
Natural gas derivatives
CurrentEnergy risk management assets85,708 (2,497)(23,524)59,687 (62,184)(2,497)
Non-currentEnergy risk management assets99,536  (18,976)80,560 (44,308)36,252 
CurrentEnergy 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 ITEMGROSS ASSET (LIABILITY)CONTRACT NETTINGNET ASSET (LIABILITY) ON THE BALANCE SHEETCOLLATERALNET AMOUNT
Commodity-related contracts
 
FTRs 
CurrentEnergy risk management assets$6,977 $— $6,977 $— $6,977 
CurrentEnergy risk management liabilities(834)— (834)— (834)
Natural gas derivatives
CurrentEnergy risk management assets37,061 (559)36,502 (15,000)21,502 
Non-currentEnergy risk management assets50,962 — 50,962 — 50,962 
CurrentEnergy 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 MEASUREAT JUNE 30, 2022AT DEC. 31, 2021
Commodity-related contracts
FTRsMWh32,409 14,055 
Natural gas derivativesMMBtus96,010 109,306 
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 ITEM2022202120222021
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 derivativesFuel used for electric generation37,416 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, 2022AT DEC. 31, 2021
(THOUSANDS)CARRYING
VALUE*
FAIR VALUECARRYING
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, 2022QUOTED PRICES IN ACTIVE MARKETS
FOR IDENTICAL
ASSETS
(LEVEL 1)
SIGNIFICANT
OTHER
OBSERVABLE
INPUTS
(LEVEL 2)
SIGNIFICANT
UNOBSERVABLE
INPUTS
(LEVEL 3)
AT DEC. 31, 2021QUOTED 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 $— $— 
FTRs10,857   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)2022202120222021
Beginning balance
$567 $1,088 $4,918 $3,216 
Unrealized gains (losses)*4,267 (402)4,267 (402)
Purchases6,577 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)ASSETSLIABILITIESLOWHIGH
FTRs at June 30, 2022$10,857 $719 RTO auction pricingFTR price - per MWh$(6.61)$19.75 
FTRs at Dec. 31, 2021$5,515 $597 RTO auction pricingFTR price - per MWh$(4.91)$9.25 
Institutional Money Market Funds
Cleco Power
(THOUSANDS)AT JUNE 30, 2022AT 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 ITEMAT JUNE 30, 2022AT DEC. 31, 2021
Commodity-related contracts
  
FTRs   
CurrentEnergy risk management assets$10,857 $5,515 
CurrentEnergy risk management liabilities(719)(597)
Commodity-related contracts, net$10,138 $4,918 
Cleco Power
TOTAL VOLUME OUTSTANDING
(THOUSAND)UNIT OF MEASUREAT JUNE 30, 2022AT DEC. 31, 2021
Commodity-related contracts
FTRsMWh19,852 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 ITEM2022202120222021
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.