
Note 4 — Revenue Recognition

Revenue from Contracts with Customers

On September 1, 2022, Cleco Power began billing and collecting a new storm recovery surcharge from its retail customers. This surcharge represents the recovery of costs incurred by Cleco Power as a result of Hurricanes Laura, Delta, Zeta, and Ida and Winter Storms Uri and Viola, as well as interest and associated expenses. Cleco Power remits the collected storm recovery surcharge to Cleco Securitization I to

service Cleco Securitization I’s storm recovery bonds. The storm recovery surcharge will continue to be billed and collected from Cleco Power’s retail customers through the life of the Cleco Securitization I storm recovery bonds. For information about the securitization of storm costs, see “Note 17 — Storm Securitization and Cost Recovery.”

Disaggregated Revenue

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


	FOR THE THREE MONTHS ENDED SEPT. 30, 2022
(THOUSANDS)	CLECO POWER			CLECO CAJUN			OTHER			ELIMINATIONS		TOTAL
Revenue from contracts with customers
Retail revenue
Residential (1)	$	190,023		$	—		$	—		$	—	$	190,023
Commercial (1)	113,176			—			—			—		113,176
Industrial (1)	64,486			—			—			—		64,486
Other retail (1)	5,213			—			—			—		5,213
Storm recovery surcharge	5,025			—			—			—		5,025
Electric customer credits	(6,728)			—			—			—		(6,728)
Total retail revenue	371,195			—			—			—		371,195
Wholesale, net	97,933		(1)	140,767		(2)	(2,420)		(3)	—		236,280
Transmission, net	18,664			21,009			—			(2,560)		37,113
Other	6,094			—			—			—		6,094
Affiliate (4)	1,657			—			29,583			(31,240)		—
Total revenue from contracts with customers	495,543			161,776			27,163			(33,800)		650,682
Revenue unrelated to contracts with customers
Other	5,296		(5)	18,564		(6)	1			—		23,861
Total revenue unrelated to contracts with customers	5,296			18,564			1			—		23,861
Operating revenue, net	$	500,839		$	180,340		$	27,164		$	(33,800)	$	674,543

(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 $16.2 million in lease revenue related to the Cottonwood Sale Leaseback and $2.3 million of deferred lease revenue amortization.


	FOR THE THREE MONTHS ENDED SEPT. 30, 2021
(THOUSANDS)	CLECO POWER			CLECO CAJUN			OTHER			ELIMINATIONS		TOTAL
Revenue from contracts with customers
Retail revenue
Residential (1)	$	148,522		$	—		$	—		$	—	$	148,522
Commercial (1)	82,711			—			—			—		82,711
Industrial (1)	45,446			—			—			—		45,446
Other retail (1)	4,479			—			—			—		4,479

Electric customer credits	(764)			—			—			—		(764)
Total retail revenue	280,394			—			—			—		280,394
Wholesale, net	74,831		(1)	107,501		(2)	(2,420)		(3)	—		179,912
Transmission, net	17,235		(4)	17,903			—			(2,217)		32,921
Other	5,618			—			—			—		5,618
Affiliate (5)	1,380			—			32,116			(33,496)		—
Total revenue from contracts with customers	379,458			125,404			29,696			(35,713)		498,845
Revenue unrelated to contracts with customers
Other	1,094		(6)	17,254		(7)	1			—		18,349
Total revenue unrelated to contracts with customers	1,094			17,254			1			—		18,349
Operating revenue, net	$	380,552		$	142,658		$	29,697		$	(35,713)	$	517,194

(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 $0.1 million of electric customer credits.

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

(6) Realized gains associated with FTRs.

(7) Includes $14.9 million in lease revenue related to the Cottonwood Sale Leaseback and $2.3 million of deferred lease revenue amortization.


	FOR THE NINE MONTHS ENDED SEPT. 30, 2022
(THOUSANDS)	CLECO POWER			CLECO CAJUN			OTHER			ELIMINATIONS		TOTAL
Revenue from contracts with customers
Retail revenue
Residential (1)	$	434,259		$	—		$	—		$	—	$	434,259
Commercial (1)	274,046			—			—			—		274,046
Industrial (1)	160,948			—			—			—		160,948
Other retail (1)	13,639			—			—			—		13,639
Storm recovery surcharge	5,025			—			—			—		5,025
Electric customer credits	(6,992)			—			—			—		(6,992)
Total retail revenue	880,925			—			—			—		880,925
Wholesale, net	245,231		(1)	370,489		(2)	(7,260)		(3)	—		608,460
Transmission, net	46,244			57,281			—			(7,388)		96,137
Other	16,285			—			1			—		16,286
Affiliate (4)	4,744			—			82,728			(87,472)		—
Total revenue from contracts with customers	1,193,429			427,770			75,469			(94,860)		1,601,808
Revenue unrelated to contracts with customers
Other	12,715		(5)	54,616		(6)	4			—		67,335
Total revenue unrelated to contracts with customers	12,715			54,616			4			—		67,335
Operating revenue, net	$	1,206,144		$	482,386		$	75,473		$	(94,860)	$	1,669,143

(1) Includes fuel recovery revenue.

(2) Includes $(10.8) 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 $47.7 million in lease revenue related to the Cottonwood Sale Leaseback and $6.9 million of deferred lease revenue amortization.


	FOR THE NINE MONTHS ENDED SEPT. 30, 2021
(THOUSANDS)	CLECO POWER			CLECO CAJUN			OTHER			ELIMINATIONS		TOTAL
Revenue from contracts with customers
Retail revenue
Residential (1)	$	348,918		$	—		$	—		$	—	$	348,918
Commercial (1)	214,129			—			—			—		214,129
Industrial (1)	119,497			—			—			—		119,497
Other retail (1)	11,925			—			—			—		11,925

Electric customer credits	(40,794)			—			—			—		(40,794)
Total retail revenue	653,675			—			—			—		653,675
Wholesale, net	182,769		(1)	300,415		(2)	(7,260)		(3)	—		475,924
Transmission, net	44,530		(4)	46,733		(5)	—			(5,752)		85,511
Other	13,509			—			—			(1)		13,508
Affiliate (6)	4,259			—			85,392			(89,651)		—
Total revenue from contracts with customers	898,742			347,148			78,132			(95,404)		1,228,618
Revenue unrelated to contracts with customers
Other	9,953		(7)	52,362		(8)	4			—		62,319
Total revenue unrelated to contracts with customers	9,953			52,362			4			—		62,319
Operating revenue, net	$	908,695		$	399,510		$	78,136		$	(95,404)	$	1,290,937

(1) Includes fuel recovery revenue.

(2) Includes $(10.0) 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 $0.4 million of electric customer credits.

(5) Includes $0.2 million of electric customer credits.

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

(7) Realized gains associated with FTRs.

(8) Includes $45.4 million in lease revenue related to the Cottonwood Sale Leaseback and $6.9 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 1 and 12 years that primarily relate to stand-ready obligations as part of fixed capacity minimums. At September 30, 2022, Cleco and Cleco Power had $232.4 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.