Derivative Instruments and Hedging Activities

12 Months Ended

Dec. 31, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments

Note 9 — Derivative Instruments

In the normal course of business, Cleco utilizes derivative instruments, such as natural gas derivatives and FTRs, to mitigate volatility of overall fuel and purchased power costs.

Cleco has not elected to designate any of its current instruments as an accounting hedge. At December 31, 2023, there was no cash collateral posted with or received from counterparties that was netted on Cleco’s and Cleco Power’s Consolidated Balance Sheets. The following tables present the fair values of derivative instruments and their respective line items as recorded on Cleco’s and Cleco Power’s Consolidated Balance Sheets at December 31, 2023, and 2022:

Cleco
	DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS
		AT DEC. 31, 2023		AT DEC. 31, 2022
						GROSS AMOUNTS OFFSET ON THE  BALANCE SHEET				GROSS AMOUNTS NOT OFFSET ON THE BALANCE SHEET (1)
(THOUSANDS)	BALANCE SHEET LINE ITEM	NET ASSET (LIABILITY) ON THE BALANCE SHEET		GROSS ASSET (LIABILITY)		CASH COLLATERAL		NET ASSET (LIABILITY) ON THE  BALANCE SHEET		COLLATERAL		NET AMOUNT
Commodity-related contracts
FTRs
Current	Energy risk management assets	$	3,087	$	2,570	$	—	$	2,570	$	—	$	2,570
Current	Energy risk management liabilities	(781)		(294)		—		(294)		—		(294)
Natural gas derivatives
Current	Energy risk management assets	5,042		53,251		(6,500)		46,751		(32,578)		14,173
Non-current	Energy risk management assets	—		58,895		—		58,895		(20,422)		38,473
Current	Energy risk management liabilities	(15,005)		(6,980)		—		(6,980)		—		(6,980)
Commodity-related contracts, net		$	(7,657)	$	107,442	$	(6,500)	$	100,942	$	(53,000)	$	47,942

(1) Represents letters of credit by counterparties.

Cleco Power
	DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS
		AT DEC. 31,
(THOUSANDS)	BALANCE SHEET LINE ITEM	2023		2022
Commodity-related contracts
FTRs
Current	Energy risk management assets	$	3,087	$	2,570
Current	Energy risk management liabilities	(781)		(294)
Natural gas derivatives
Current	Energy risk management liabilities	(14,331)		(4,570)
Commodity-related contracts, net		$	(12,025)	$	(2,294)

The following table presents the effect of derivatives not designated as hedging instruments on Cleco’s and Cleco Power’s Consolidated Statements of Income for the years December 31, 2023, 2022, and 2021:

Cleco
	AMOUNT OF GAIN/(LOSS) RECOGNIZED IN INCOME ON DERIVATIVES
		FOR THE YEAR ENDED DEC. 31,
(THOUSANDS)	DERIVATIVES LINE ITEM	2023		2022		2021
Commodity contracts
FTRs (1)	Electric operations	$	6,320	$	14,118	$	12,797
FTRs (1)	Purchased power	(4,465)		(7,331)		(10,360)
Natural gas derivatives (2)	Fuel used for electric generation	(139,315)		180,522		134,144
Total		$	(137,460)	$	187,309	$	136,581

(1) For the years ended December 31, 2023, 2022, and 2021, unrealized (losses) gains associated with FTRs of $(0.4) million, $(0.5) million, and $2.8 million, respectively, were reported through Accumulated deferred fuel on the balance sheet.

(2) For the year ended December 31, 2023, unrealized losses and realized losses associated with natural gas derivatives for Cleco Power of $(9.8) million and $(2.0) million, respectively, were reported through Accumulated deferred fuel on the balance sheet. For the year ended December 31, 2022, unrealized gains associated with natural gas derivatives for Cleco Power of $4.9 million were reported through Accumulated deferred fuel on the balance sheet. For the year ended December 31, 2022, Cleco Power had no realized gains (losses) associated with natural gas derivatives. Cleco Power had no natural gas derivatives during the year ended December 31, 2021.

Cleco Power
	AMOUNT OF GAIN/(LOSS) RECOGNIZED IN INCOME ON DERIVATIVES
		FOR THE YEAR ENDED DEC. 31,
(THOUSANDS)	DERIVATIVES LINE ITEM	2023		2022		2021
Commodity contracts
FTRs (1)	Electric operations	$	6,320	$	14,118	$	12,797
FTRs (1)	Purchased power	(4,465)		(7,331)		(10,360)
Natural gas derivatives (2)	Fuel used for electric generation	(22,734)		—		—
Total		$	(20,879)	$	6,787	$	2,437

(1) For the years ended December 31, 2023, 2022, and 2021, unrealized (losses) gains associated with FTRs of $(0.4) million, $(0.5) million, and $2.8 million, respectively, were reported through Accumulated deferred fuel on the balance sheet.

(2) For the year ended December 31, 2023, unrealized losses and realized losses associated with natural gas derivatives of $(9.8) million and $(2.0) million, respectively, were reported through Accumulated deferred fuel on the balance sheet. For the year ended December 31, 2022, unrealized gains associated with natural gas derivatives of $4.9 million were reported through Accumulated deferred fuel on the balance sheet. For the year ended December 31, 2022, Cleco Power had no realized gains (losses) associated with natural gas derivatives. Cleco Power had no natural gas derivatives during the year ended December 31, 2021.

The following tables present the volume of commodity-related derivative contracts outstanding at December 31, 2023, and 2022 for Cleco and Cleco Power:

Cleco
		TOTAL VOLUME OUTSTANDING
	UNIT OF MEASURE	AT DEC. 31,
(THOUSAND)		2023	2022
Commodity-related contracts
FTRs	MWh	9,611	9,085
Natural gas derivatives	MMBtus	61,119	85,350

Cleco Power
		TOTAL VOLUME OUTSTANDING
	UNIT OF MEASURE	AT DEC. 31,
(THOUSAND)		2023	2022
Commodity-related contracts
FTRs	MWh	9,611	9,085
Natural gas derivatives	MMBtus	19,915	4,840