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Variable Interest Entities (Tables)

9 Months Ended

Sep. 30, 2022

Variable Interest Entity [Line Items]

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


(THOUSANDS)	AT SEPT. 30, 2022
Restricted cash - current	$	5,552
Accounts Receivable - affiliate	$	3,724
Intangible asset - securitization	$	415,946
Long-term debt due within one year	$	9,574
Accounts Payable - affiliate	$	85
Interest accrued	$	5,213
Long-term debt, net	$	408,622
Member’s equity	$	1,728

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


	FOR THE THREE MONTHS ENDED SEPT. 30,				FOR THE NINE MONTHS ENDED SEPT. 30,
(THOUSANDS)	2022		2021		2022		2021
Operating revenue	$	5,025	$	—	$	5,025	$	—
Operating expenses	90		—		90		—
Interest income	10		—		10		—
Interest charges, net	4,861		—		5,342		—
Income before taxes	$	84	$	—	$	(397)	$	—

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 SEPT. 30, 2022
Restricted cash - current	$	5,552
Accounts Receivable - affiliate	$	3,724
Intangible asset - securitization	$	415,946
Long-term debt due within one year	$	9,574
Accounts Payable - affiliate	$	85
Interest accrued	$	5,213
Long-term debt, net	$	408,622
Member’s equity	$	1,728

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


	FOR THE THREE MONTHS ENDED SEPT. 30,				FOR THE NINE MONTHS ENDED SEPT. 30,
(THOUSANDS)	2022		2021		2022		2021
Operating revenue	$	5,025	$	—	$	5,025	$	—
Operating expenses	90		—		90		—
Interest income	10		—		10		—
Interest charges, net	4,861		—		5,342		—
Income before taxes	$	84	$	—	$	(397)	$	—

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 SEPT. 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 SEPT. 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 SEPT. 30,				FOR THE NINE MONTHS ENDED SEPT. 30,
(THOUSANDS)	2022		2021		2022		2021
Operating revenue	$	65	$	1,486	$	215	$	5,113
Operating expenses	65		1,486		215		5,113
Income before taxes	$	—	$	—	$	—	$	—

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

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