XML 38 R22.htm IDEA: XBRL DOCUMENT v3.22.4
Revenue Recognition
 12 Months Ended
Dec. 31, 2022
Revenue from Contract with Customer [Abstract]  
Revenue Recognition
Note 4 — Revenue Recognition

Revenue from Contracts with Customers

Retail Revenue
Retail revenue from contracts with customers is generated primarily from Cleco’s regulated electric sales from residential, commercial, and industrial customers. Cleco Power recognizes retail revenue from these contracts as a series, and progress towards satisfaction of the performance obligation is measured using an output method based on kWh delivered. Accordingly, revenue from electricity sales is recognized as energy is delivered to the customer. Cleco Power bills retail customers, based on rates regulated by the LPSC, on a monthly basis with payments generally due within 20 days of the invoice date.
Included in retail revenue is unbilled electric revenue, which represents the amount customers will be billed for services rendered from the meter reading from the most recent bill to the end of the respective accounting period. Actual customer energy consumption data available from AMI is used to calculate unbilled revenue. Also included in retail revenue is electric customer credits, which primarily represents the credits to retail customers for the federal tax-related benefits of the TCJA prior to the settlement of the current retail rate plan. Subsequent to the settlement of the current retail rate plan, these credits offset base revenue.
Wholesale Revenue
Cleco’s wholesale revenue is generated primarily through the sale of energy and capacity to electric cooperatives and municipalities. The electricity revenue performance obligations, representing both energy and capacity, are satisfied as a series of performance obligations, and progress towards satisfaction of the performance obligations are measured using an output method. The energy performance obligation measure of progress is based on kWh delivered. The capacity performance obligation measure of progress is based on time elapsed and is recognized each month as Cleco’s generating units stand ready to deliver electricity to the customer. Cleco recognizes wholesale revenue, inclusive of both performance obligations, under the invoice practical expedient for the amount Cleco has the right to invoice. Cleco, through Cleco Power and Cleco Cajun, charges its wholesale customers market based rates that are subject to FERC’s triennial market power analysis. Cleco also enters into transactions through MISO for spot energy sales which are transacted in the Day-Ahead Energy and Operating Reserves Market and the Real-Time Energy and Operating Reserves Market.

Transmission Revenue
Cleco Power and Cleco Cajun earn transmission revenues pursuant to MISO’s FERC filed tariff. The performance obligation of transmission service is satisfied as service is provided. Revenue from the transmission of electricity for Cleco Power and Cleco Cajun is recorded based on a separate FERC-approved annual filing rate mechanism effective June 1 of each year. These rates are based on the respective costs to provide transmission services.

Other Revenue
Other revenue from contracts with customers, which is not a significant source of Cleco’s revenue, consisted of customer-forfeited discounts and reconnect fees, electric property rental, and other miscellaneous fees. The performance obligation
under these contracts is satisfied and revenue is recognized as control of the products is delivered or services are rendered.

Revenue Unrelated to Contracts with Customers
On September 1, 2022, Cleco Power began billing and collecting, on behalf of Cleco Securitization I, a new storm recovery surcharge from all 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 more information about the securitization of storm costs, see Note 19 — “Securitization.”
Cleco’s energy-related transactions with the following characteristics qualify as derivative contracts and are recorded pursuant to derivatives and hedging accounting guidance: a) their value is based on the notional amount or payment provisions of an underlying asset; b) they require no or a diminutive initial net investment; and c) their terms require or permit net settlement.
Cleco Cajun’s other revenue primarily includes fixed lease payments and certain variable payments for costs paid by NRG Energy on behalf of Cleco. For more information on the Cottonwood lease agreement, see Note 3 — “Leases — Additional Lessee Disclosures — Cottonwood Sale Leaseback Agreement.”

Disaggregated Revenue
Operating revenue, net for the years ended December 31, 2022, 2021, and 2020 was as follows:

FOR THE YEAR ENDED DEC. 31, 2022
(THOUSANDS)CLECO POWERCLECO CAJUNOTHERELIMINATIONSTOTAL
Revenue from contracts with customers
Retail revenue
Residential (1)
$558,247 $— $— $— $558,247 
Commercial (1)
370,678 — — — 370,678 
Industrial (1)
229,634 — — — 229,634 
Other retail (1)
18,727 — — — 18,727 
Electric customer credits(7,674)— — — (7,674)
Total retail revenue1,169,612 — — — 1,169,612 
Wholesale, net331,906 
(1)
496,042 
(2)
(9,680)
(3)
— 818,268 
Transmission63,545 77,187 — (10,212)130,520 
Other21,966 — — — 21,966 
Affiliate (4)
6,377 — 109,015 (115,392)— 
Total revenue from contracts with customers1,593,406 573,229 99,335 (125,604)2,140,366 
Revenue unrelated to contracts with customers
Securitization13,247 — — — 13,247 
Other 13,875 
(5)
71,636 
(6)
9 (1)85,519 
Total revenue unrelated to contracts with customers 27,122 71,636 9 (1)98,766 
Operating revenue, net$1,620,528 $644,865 $99,344 $(125,605)$2,239,132 
(1) Includes fuel recovery revenue.
(2) Includes $(14.4) 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) Represents realized gains associated with FTRs.
(6) Includes $62.4 million in lease revenue related to the Cottonwood Sale Leaseback and $9.2 million of deferred lease revenue amortization.
FOR THE YEAR ENDED DEC. 31, 2021
(THOUSANDS)CLECO POWERCLECO CAJUNOTHERELIMINATIONSTOTAL
Revenue from contracts with customers
Retail revenue
Residential (1)
$453,873 $— $— $— $453,873 
Commercial (1)
294,553 — — — 294,553 
Industrial (1)
175,134 — — — 175,134 
Other retail (1)
16,105 — — — 16,105 
Electric customer credits(41,007)— — — (41,007)
Total retail revenue898,658 — — — 898,658 
Wholesale, net250,987 
(1)
398,226 
(2)
(9,680)
(3)
1 639,534 
Transmission, net55,963 
(4)
61,500 
(5)
— (7,615)109,848 
Other18,791 — 8 — 18,799 
Affiliate (6)
5,641 — 113,623 (119,264)— 
Total revenue from contracts with customers1,230,040 459,726 103,951 (126,878)1,666,839 
Revenue unrelated to contracts with customers
Other 11,597 
(7)
67,493 
(8)
— — 79,090 
Total revenue unrelated to contracts with customers 11,597 67,493 — — 79,090 
Operating revenue, net$1,241,637 $527,219 $103,951 $(126,878)$1,745,929 
(1) Includes fuel recovery revenue.
(2) Includes $(13.5) 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 $0.2 million of electric customer credits.
(6) Includes interdepartmental rents and support services. This revenue is eliminated upon consolidation.
(7) Represents realized gains associated with FTRs.
(8) Includes $58.2 million in lease revenue related to the Cottonwood Sale Leaseback and $9.2 million of deferred lease revenue amortization.
FOR THE YEAR ENDED DEC. 31, 2020
(THOUSANDS)CLECO POWERCLECO CAJUNOTHERELIMINATIONSTOTAL
Revenue from contracts with customers
Retail revenue
Residential (1)
$402,050 $— $— $— $402,050 
Commercial (1)
256,964 — — — 256,964 
Industrial (1)
137,920 — — — 137,920 
Other retail (1)
14,235 — — — 14,235 
Storm recovery surcharge2,440 — — — 2,440 
Electric customer credits(52,208)— — — (52,208)
Total retail revenue761,401 — — — 761,401 
Wholesale, net192,187 
(1)
365,555 
(2)
(9,680)
(3)
— 548,062 
Transmission49,164 
(4)
51,449 
(5)
— (6,463)94,150 
Other15,162 — — 1 15,163 
Affiliate (6)
5,156 204 129,126 (134,486)— 
Total revenue from contracts with customers1,023,070 417,208 119,446 (140,948)1,418,776 
Revenue unrelated to contracts with customers
Other9,222 
(7)
70,145 
(8)
3 — 79,370 
Total revenue unrelated to contracts with customers 9,222 70,145 3 — 79,370 
Operating revenue, net$1,032,292 $487,353 $119,449 $(140,948)$1,498,146 
(1) Includes fuel recovery revenue.
(2) Includes $(12.4) 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 $(0.9) 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) Represents realized gains associated with FTRs.
(8) Includes $60.9 million in lease revenue related to the Cottonwood Sale Leaseback and $9.2 million of deferred lease revenue amortization.
Cleco and Cleco Power have unsatisfied performance obligations under contracts with electric cooperatives and municipalities with durations ranging between 2 and 12 years that primarily relate to stand-ready obligations as part of fixed capacity minimums. At December 31, 2022, Cleco and Cleco Power had $231.2 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.