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Fair Value Accounting Instruments (Tables)

12 Months Ended

Dec. 31, 2023

Schedule of Fair Value of Financial Assets and Liabilities Measured On A Recurring Basis

The following tables disclose the fair value of financial assets and liabilities measured on a recurring basis on Cleco’s and Cleco Power’s Consolidated Balance Sheets. These amounts are presented on a gross basis.


Cleco
	FAIR VALUE MEASUREMENTS AT REPORTING DATE
(THOUSANDS)	AT DEC. 31, 2023		QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1)		SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2)		SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3)		AT DEC. 31, 2022		QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1)		SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2)		SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3)
Asset Description
Short-term investments	$	242,596	$	242,596	$	—	$	—	$	179,241	$	179,241	$	—	$	—
FTRs	3,087		—		—		3,087		2,570		—		—		2,570
Natural gas derivatives	5,042		—		5,042		—		105,646		—		105,646		—
Total assets	$	250,725	$	242,596	$	5,042	$	3,087	$	287,457	$	179,241	$	105,646	$	2,570
Liability Description
FTRs	$	781	$	—	$	—	$	781	$	294	$	—	$	—	$	294
Natural gas derivatives	15,005		—		15,005		—		6,980		—		6,980		—
Total liabilities	$	15,786	$	—	$	15,005	$	781	$	7,274	$	—	$	6,980	$	294

Schedule of Money Market Funds

The following tables present the short-term investments as recorded on Cleco’s and Cleco Power’s Consolidated Balance Sheets at December 31, 2023, and 2022:


Cleco
	FOR THE YEAR ENDED DEC. 31,
(THOUSANDS)	2023		2022
Cash and cash equivalents	$	113,207	$	46,279
Current restricted cash and cash equivalents	$	15,818	$	23,548
Non-current restricted cash and cash equivalents	$	113,571	$	109,414

Schedule of Net Changes in Net Fair Value of FTR Assets and Liabilities Classified as Level 3

The following table summarizes the net changes in the net fair value of FTR assets and liabilities classified as Level 3 in the fair value hierarchy for Cleco and Cleco Power:


	FOR THE YEAR ENDED DEC. 31,
(THOUSANDS)	2023		2022		2021
Beginning balance	$	2,276	$	4,918	$	3,216
Unrealized (losses) gains *	(425)		(495)		2,828
Purchases	8,089		7,270		9,871
Settlements	(7,634)		(9,417)		(10,997)
Ending balance	$	2,306	$	2,276	$	4,918
* Unrealized (losses) gains are reported through Accumulated deferred fuel on Cleco Power's Consolidated Balance Sheets.

Schedule of Significant Unobservable Inputs Used in Developing Fair Value of Level 3 Positions

The following table quantifies the significant unobservable inputs used in developing the fair value of Level 3 positions for Cleco and Cleco Power as of December 31, 2023, and 2022:


	FAIR VALUE				VALUATION TECHNIQUE	SIGNIFICANT UNOBSERVABLE INPUTS	FORWARD PRICE RANGE
(THOUSANDS, EXCEPT DOLLAR PER MWh)	Assets		Liabilities				Low		High
FTRs at Dec. 31, 2023	$	3,087	$	781	RTO auction pricing	FTR price - per MWh	$	(3.51)	$	7.07
FTRs at Dec. 31, 2022	$	2,570	$	294	RTO auction pricing	FTR price - per MWh	$	(5.11)	$	13.65

Schedule of Carrying Value and Estimated Fair Value

The following tables summarize the carrying value and estimated market value of Cleco’s and Cleco Power’s financial instruments not measured at fair value on Cleco’s and Cleco Power’s Consolidated Balance Sheets:


Cleco
	AT DEC. 31,
	2023				2022
(THOUSANDS)	CARRYING VALUE*		FAIR VALUE		CARRYING VALUE*		FAIR VALUE
Long-term debt	$	3,400,293	$	3,177,654	$	3,482,556	$	3,180,208

* The carrying value of long-term debt does not include deferred issuance costs of $14.2 million at December 31, 2023, and $16.2 million at December 31, 2022.

CLECO POWER

Fair Value [Line Items]

Schedule of Fair Value of Financial Assets and Liabilities Measured On A Recurring Basis


Cleco Power
	FAIR VALUE MEASUREMENTS AT REPORTING DATE
(THOUSANDS)	AT DEC. 31, 2023		QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1)		SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2)		SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3)		AT DEC. 31, 2022		QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1)		SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2)		SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3)
Asset Description
Short-term investments	$	169,606	$	169,606	$	—	$	—	$	139,752	$	139,752	$	—	$	—
FTRs	3,087		—		—		3,087		2,570		—		—		2,570

Total assets	$	172,693	$	169,606	$	—	$	3,087	$	142,322	$	139,752	$	—	$	2,570
Liability Description
FTRs	$	781	$	—	$	—	$	781	$	294	$	—	$	—	$	294
Natural gas derivatives	14,331		—		14,331		—		4,570		—		4,570		—
Total liabilities	$	15,112	$	—	$	14,331	$	781	$	4,864	$	—	$	4,570	$	294

Schedule of Money Market Funds


Cleco Power
	FOR THE YEAR ENDED DEC. 31,
(THOUSANDS)	2023		2022
Cash and cash equivalents	$	40,240	$	6,813
Current restricted cash and cash equivalents	$	15,818	$	23,548
Non-current restricted cash and cash equivalents	$	113,548	$	109,391

Schedule of Net Changes in Net Fair Value of FTR Assets and Liabilities Classified as Level 3

The following table summarizes the net changes in the net fair value of FTR assets and liabilities classified as Level 3 in the fair value hierarchy for Cleco and Cleco Power:


	FOR THE YEAR ENDED DEC. 31,
(THOUSANDS)	2023		2022		2021
Beginning balance	$	2,276	$	4,918	$	3,216
Unrealized (losses) gains *	(425)		(495)		2,828
Purchases	8,089		7,270		9,871
Settlements	(7,634)		(9,417)		(10,997)
Ending balance	$	2,306	$	2,276	$	4,918
* Unrealized (losses) gains are reported through Accumulated deferred fuel on Cleco Power's Consolidated Balance Sheets.

Schedule of Significant Unobservable Inputs Used in Developing Fair Value of Level 3 Positions

The following table quantifies the significant unobservable inputs used in developing the fair value of Level 3 positions for Cleco and Cleco Power as of December 31, 2023, and 2022:


	FAIR VALUE				VALUATION TECHNIQUE	SIGNIFICANT UNOBSERVABLE INPUTS	FORWARD PRICE RANGE
(THOUSANDS, EXCEPT DOLLAR PER MWh)	Assets		Liabilities				Low		High
FTRs at Dec. 31, 2023	$	3,087	$	781	RTO auction pricing	FTR price - per MWh	$	(3.51)	$	7.07
FTRs at Dec. 31, 2022	$	2,570	$	294	RTO auction pricing	FTR price - per MWh	$	(5.11)	$	13.65

Schedule of Carrying Value and Estimated Fair Value


Cleco Power
	AT DEC. 31,
	2023				2022
(THOUSANDS)	CARRYING VALUE*		FAIR VALUE		CARRYING VALUE*		FAIR VALUE
Long-term debt	$	1,886,248	$	1,867,559	$	1,895,508	$	1,825,192

* The carrying value of long-term debt does not include deferred issuance costs of $11.5 million at December 31, 2023, and $12.3 million at December 31, 2022.

- Definition

Tabular disclosure of all significant concentrations of risk, including credit risk and market risk, arising from all financial instruments (as defined), whether from an individual counterparty or groups of counterparties. The disclosure concerning concentrations of risk may consist of the following information: (1) for concentrations of credit risk disclosure may include: (a) information about the (shared) activity, region, or economic characteristic that identifies the concentration, (b) the maximum amount of loss due to credit risk that, based on the gross fair value of the financial instrument, the entity would incur if parties to the financial instruments that make up the concentration failed completely to perform according to the terms of the contracts and the collateral or other security, if any, for the amount due proved to be of no value to the entity, (c) the policy of requiring collateral or other security to support financial instruments subject to credit risk, information about the entity's access to that collateral or other security, and the nature and a brief description of the collateral or other security supporting those financial instruments, and (d) the policy of entering into master netting arrangements to mitigate the credit risk of financial instruments, information about the arrangements for which the entity is a party, and a brief description of the terms of those arrangements, including the extent to which they would reduce the entity's maximum amount of loss due to credit risk and (2) for disclosure of quantitative information about the market risks of financial instruments that is consistent with the way the company manages or adjusts those risks, disclosure may include: (a) more details about current positions and perhaps activity during the period, (b) the hypothetical effects on comprehensive income (or net assets), or annual income, of several possible changes in market prices, (c) a gap analysis of interest rate re-pricing or maturity dates, (d) the duration of the financial instruments, (e) the entity's value at risk from derivatives and from other positions at the end of the reporting period and the average value at risk during the year, or (f) other ways of reporting quantitative information as internally developed.

+ References + Details