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Revenue Recognition
 12 Months Ended
Dec. 31, 2023
Revenue from Contract with Customer [Abstract]  
Revenue Recognition
Note 5 — 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 implementation of the current retail rate plan on July 1, 2021, 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. Wholesale customers are charged 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 earns 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 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.
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.

Disaggregated Revenue
Operating revenue, net for the years ended December 31, 2023, 2022, and 2021 was as follows:

FOR THE YEAR ENDED DEC. 31, 2023
(THOUSANDS)CLECO POWEROTHERELIMINATIONSTOTAL
Revenue from contracts with customers
Retail revenue
Residential (1)
$469,099 $— $— $469,099 
Commercial (1)
304,422 — — 304,422 
Industrial (1)
179,506 — — 179,506 
Other retail (1)
16,543 — — 16,543 
Electric customer credits(60,689)— — (60,689)
Total retail revenue908,881 — — 908,881 
Wholesale, net221,547 
(1)
(9,454)
(2)
— 212,093 
Transmission56,701 — — 56,701 
Other20,797 — — 20,797 
Affiliate (3)
8,904 120,716 (129,620)— 
Total revenue from contracts with customers1,216,830 111,262 (129,620)1,198,472 
Revenue unrelated to contracts with customers
Securitization34,063 — — 34,063 
Other 6,252 
(4)
5 (1)6,256 
Total revenue unrelated to contracts with customers 40,315 5 (1)40,319 
Operating revenue, net$1,257,145 $111,267 $(129,621)$1,238,791 
(1) Includes fuel recovery revenue.
(2) Amortization of intangible assets related to Cleco Power’s wholesale power supply agreements.
(3) Includes interdepartmental rents and support services. This revenue is eliminated upon consolidation.
(4) Represents realized gains associated with FTRs.

FOR THE YEAR ENDED DEC. 31, 2022
(THOUSANDS)CLECO POWEROTHERELIMINATIONSTOTAL
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)
(9,680)
(2)
— 322,226 
Transmission, net63,545 — — 63,545 
Other21,966 — — 21,966 
Affiliate (3)
6,377 109,015 (115,392)— 
Total revenue from contracts with customers1,593,406 99,335 (115,392)1,577,349 
Revenue unrelated to contracts with customers
Securitization
13,247 — — 13,247 
Other 13,875 
(4)
9 — 13,884 
Total revenue unrelated to contracts with customers 27,122 9 — 27,131 
Operating revenue, net$1,620,528 $99,344 $(115,392)$1,604,480 
(1) Includes fuel recovery revenue.
(2) Amortization of intangible assets related to Cleco Power’s wholesale power supply agreements..
(3) Includes interdepartmental rents and support services. This revenue is eliminated upon consolidation.
(4) Represents realized gains associated with FTRs.
FOR THE YEAR ENDED DEC. 31, 2021
(THOUSANDS)CLECO POWEROTHERELIMINATIONSTOTAL
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)
(9,680)
(2)
— 241,307 
Transmission
55,963 
(4)
— — 55,963 
Other18,791 8 — 18,799 
Affiliate (3)
5,641 113,623 (119,264)— 
Total revenue from contracts with customers1,230,040 103,951 (119,264)1,214,727 
Revenue unrelated to contracts with customers
Other11,597 
(5)
— — 11,597 
Total revenue unrelated to contracts with customers 11,597 — — 11,597 
Operating revenue, net$1,241,637 $103,951 $(119,264)$1,226,324 
(1) Includes fuel recovery revenue.
(2) Amortization of intangible assets related to Cleco Power’s wholesale power supply agreements.
(3) Includes interdepartmental rents and support services. This revenue is eliminated upon consolidation.
(4) Includes $0.1 million of electric customer credits.
(5) Realized gains associated with FTRs.
Cleco and Cleco Power have unsatisfied performance obligations under contracts with electric cooperatives and municipalities with durations ranging between 1 and 11 years that primarily relate to stand-ready obligations as part of fixed capacity minimums. At December 31, 2023, Cleco and Cleco Power had $300.0 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.