Regulatory Assets and Liabilities (Tables)

9 Months Ended

Sep. 30, 2022

Regulatory Assets [Line Items]

Schedule of Regulatory Assets

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

Cleco
(THOUSANDS)	AT SEPT. 30, 2022		AT DEC. 31, 2021
Total Cleco Power regulatory assets, net	$	508,285	$	663,621
2016 Merger adjustments *
Fair value of long-term debt	106,599		112,150
Postretirement costs	11,933		13,424
Financing costs	6,990		7,248
Debt issuance costs	4,671		4,920
Total Cleco regulatory assets, net	$	638,478	$	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 SEPT. 30, 2022		AT DEC. 31, 2021
Regulatory assets
Acadia Unit 1 acquisition costs	$	1,834	$	1,913	17.25
Accumulated deferred fuel (1)	81,928		56,826		Various
Affordability study	12,060		13,094		8.75
AFUDC equity gross-up	64,251		66,574		Various	(2)
AMI deferred revenue requirement	1,636		2,045		3.5
AROs (1)(8)	16,653		15,141
Bayou Vista to Segura transmission project deferred revenue requirement	3,765		1,392		0.75
Coughlin transaction costs	823		845		26.75
COVID-19 executive order (8)	2,953		2,953
Deferred storm restoration costs - Hurricane Delta (6)	21		17,113
Deferred storm restoration costs - Hurricane Ida (7)	9,350		37,617
Deferred storm restoration costs - Hurricane Laura (6)	90		54,282
Deferred storm restoration costs - Hurricane Zeta (6)	2		3,296
Deferred storm restoration costs - Winter Storms Uri & Viola	—		1,912
Dolet Hills Power Station closure costs (8)	147,021		145,844
Energy efficiency	588		1,645		0.5
Financing costs (1)	6,549		6,826		Various	(3)
Interest costs	3,272		3,459		Various	(2)
Lignite Mine closure costs (8)	136,071		136,980
Madison Unit 3 property taxes (9)	13,028		8,362
Non-service cost of postretirement benefits	14,472		12,950		Various	(2)
Other assets	8,792		11,224		Various
Postretirement costs	108,524		117,773		Various	(4)
Production operations and maintenance expenses	9,017		11,058		Various	(5)
Rodemacher Unit 2 deferred costs (8)	11,210		6,931
St. Mary Clean Energy Center	8,607		6,089		2.75
Training costs	5,813		5,929		37.25
Tree trimming costs	7,056		9,092		2.5
Total regulatory assets	675,386		759,165
Regulatory liabilities
Deferred taxes, net	(49,099)		(95,544)		Various
Storm reserves	(118,002)		—
Total regulatory liabilities	(167,101)		(95,544)
Total regulatory assets, net	$	508,285	$	663,621
(1) Represents regulatory assets for past expenditures that were not earning a return on investment at September 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) From June 1, 2021, through August 31, 2022, these were being recovered through the interim storm recovery rate. For more information, see Note 17 — “Storm Securitization 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. (9) Property taxes paid for the year ended December 31, 2021, are being recovered over 12 months beginning July 1, 2022.

Schedule of Regulatory Liabilities

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

Cleco Power
					REMAINING RECOVERY PERIOD (YRS.)
(THOUSANDS)	AT SEPT. 30, 2022		AT DEC. 31, 2021
Regulatory assets
Acadia Unit 1 acquisition costs	$	1,834	$	1,913	17.25
Accumulated deferred fuel (1)	81,928		56,826		Various
Affordability study	12,060		13,094		8.75
AFUDC equity gross-up	64,251		66,574		Various	(2)
AMI deferred revenue requirement	1,636		2,045		3.5
AROs (1)(8)	16,653		15,141
Bayou Vista to Segura transmission project deferred revenue requirement	3,765		1,392		0.75
Coughlin transaction costs	823		845		26.75
COVID-19 executive order (8)	2,953		2,953
Deferred storm restoration costs - Hurricane Delta (6)	21		17,113
Deferred storm restoration costs - Hurricane Ida (7)	9,350		37,617
Deferred storm restoration costs - Hurricane Laura (6)	90		54,282
Deferred storm restoration costs - Hurricane Zeta (6)	2		3,296
Deferred storm restoration costs - Winter Storms Uri & Viola	—		1,912
Dolet Hills Power Station closure costs (8)	147,021		145,844
Energy efficiency	588		1,645		0.5
Financing costs (1)	6,549		6,826		Various	(3)
Interest costs	3,272		3,459		Various	(2)
Lignite Mine closure costs (8)	136,071		136,980
Madison Unit 3 property taxes (9)	13,028		8,362
Non-service cost of postretirement benefits	14,472		12,950		Various	(2)
Other assets	8,792		11,224		Various
Postretirement costs	108,524		117,773		Various	(4)
Production operations and maintenance expenses	9,017		11,058		Various	(5)
Rodemacher Unit 2 deferred costs (8)	11,210		6,931
St. Mary Clean Energy Center	8,607		6,089		2.75
Training costs	5,813		5,929		37.25
Tree trimming costs	7,056		9,092		2.5
Total regulatory assets	675,386		759,165
Regulatory liabilities
Deferred taxes, net	(49,099)		(95,544)		Various
Storm reserves	(118,002)		—
Total regulatory liabilities	(167,101)		(95,544)
Total regulatory assets, net	$	508,285	$	663,621
(1) Represents regulatory assets for past expenditures that were not earning a return on investment at September 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) From June 1, 2021, through August 31, 2022, these were being recovered through the interim storm recovery rate. For more information, see Note 17 — “Storm Securitization 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. (9) Property taxes paid for the year ended December 31, 2021, are being recovered over 12 months beginning July 1, 2022.