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Summary of Significant Accounting Policies
 3 Months Ended
Mar. 31, 2024
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies
Note 1 — Summary of Significant Accounting Policies
Discontinued Operations
In 2022, Cleco Holdings began a strategic review process related to its investment in Cleco Cajun. In March 2023, Cleco Holdings’ management, with the support of its Board of Managers, committed to a plan of action for the disposition of the Cleco Cajun Sale Group. Cleco Holdings’ management determined that the criteria under GAAP for the Cleco Cajun Sale Group to be classified as held for sale were met and the sale will represent a strategic shift that will have a major effect on Cleco’s future operations and financial results. Therefore, the results of operations and financial position of the Cleco Cajun Sale Group are presented as discontinued operations. On November 22, 2023, the Cleco Cajun Divestiture Purchase and Sale Agreement was entered into between the Cleco Cajun Sellers and the Cleco Cajun Purchasers whereby the Cleco Cajun Sellers have agreed to sell the Cleco Cajun Sale Group to the Cleco Cajun Purchasers. The financial information for the three months ended March 31, 2023, provided in this Quarterly Report on Form 10-Q has been recast as a result of the determination during the third quarter of 2023 that the Cleco Cajun Purchasers are not expected to acquire the natural gas derivative instruments relating to the Cleco Cajun Sale Group. For more information, see Note 3 — “Discontinued Operations.”
Principles of Consolidation
The accompanying condensed consolidated financial statements of Cleco include the accounts of Cleco Holdings and its majority-owned subsidiaries after elimination of intercompany accounts and transactions.
Basis of Presentation
The condensed consolidated financial statements of Cleco and Cleco Power have been prepared in accordance with GAAP for interim financial information and with the instructions to Form 10-Q and Regulation S-X. Accordingly, these condensed
consolidated financial statements do not include all of the information and notes required by GAAP for annual financial statements. The year-end condensed consolidated balance sheet data was derived from audited financial statements and adjusted for discontinued operations. Because the interim condensed consolidated financial statements and the accompanying notes do not include all of the information and notes required by GAAP for annual financial statements, the condensed consolidated financial statements and other information included in this Quarterly Report on Form 10-Q should be read in conjunction with the consolidated financial statements and accompanying notes in the Registrants’ Combined Annual Report on Form 10-K for the fiscal year ended December 31, 2023.
These condensed consolidated financial statements, in the opinion of management, reflect all normal recurring adjustments that are necessary for a fair statement of the financial position and results of operations of Cleco and Cleco Power. Amounts reported in Cleco’s and Cleco Power’s interim financial statements are not necessarily indicative of amounts expected for the annual periods due to the effects of seasonal temperature variations on energy consumption, regulatory rulings, the timing of maintenance on electric generating units, changes in mark-to-market valuations, changing commodity prices, discrete income tax items, and other factors.
In preparing financial statements that conform to GAAP, management must make estimates and assumptions that affect the reported amounts of assets and liabilities, the reported amounts of revenues and expenses, and the disclosure of contingent assets and liabilities at the date of the financial statements. Actual results could differ from those estimates. For information on recent authoritative guidance and its effect on financial results, see Note 2 — “Recent Authoritative Guidance.” For information on discontinued operations, see Note 3 — “Discontinued Operations.”
Various agreements to which Cleco is subject contain covenants that restrict its use of cash. As certain provisions
under these agreements are met, cash is transferred out of related escrow accounts and becomes available for its intended purposes and/or general corporate purposes.
Cleco’s and Cleco Power’s restricted cash and cash equivalents consisted of the following:
Cleco
(THOUSANDS)AT MAR. 31, 2024AT DEC. 31, 2023
Current
Cleco Securitization I’s operating expenses and storm recovery bond issuance costs and debt service$7,684 $15,818 
Total current7,684 15,818 
Non-current
Diversified Lands’ mitigation escrow24 24 
Cleco Power’s future storm restoration costs114,953 113,549 
Total non-current114,977 113,573 
Total restricted cash and cash equivalents$122,661 $129,391 

Cleco Power
(THOUSANDS)AT MAR. 31, 2024AT DEC. 31, 2023
Current
Cleco Securitization I’s operating expenses and storm recovery bond issuance costs and debt service$7,684 $15,818 
Total current7,684 15,818 
Non-current
Future storm restoration costs114,953 113,549 
Total non-current114,953 113,549 
Total restricted cash and cash equivalents$122,637 $129,367 
Reserves for Credit Losses
Customer accounts receivable are recorded at the invoiced amount and do not bear interest. Customer accounts receivable are generally considered past due 20 days after the billing date. Cleco recognizes write-offs within the allowance for credit losses once all recovery methods have been exhausted. It is the policy of management to review accounts receivable and unbilled revenue monthly using a reserve matrix based on historical bad debt write-offs, as well as current and forecasted economic conditions, to establish a credit loss estimate. Management’s historical credit loss analysis included periods of economic recessions, natural disasters, and temporary changes to collection policies. Due to the critical necessity of electricity, these past events have not significantly impacted Cleco’s credit loss rates.
Cleco’s credit losses at March 31, 2024, were within range of its historical credit loss analysis.
The tables below present the changes in the allowance for credit losses by receivable for Cleco and Cleco Power:
Cleco
(THOUSANDS)ACCOUNTS
RECEIVABLE
OTHER
TOTAL
Balances, Dec. 31, 2023
$3,012 $1,638 $4,650 
Current period provision142 — 142 
Charge-offs(1,662)— (1,662)
Recovery330 — 330 
Balances, Mar. 31, 2024$1,822 $1,638 $3,460 
(THOUSANDS)ACCOUNTS
RECEIVABLE
OTHER
TOTAL
Balances, Dec. 31, 2022
$1,147 $1,638 $2,785 
Current period provision1,240 — 1,240 
Charge-offs(1,637)— (1,637)
Recovery377 — 377 
Balances, Mar. 31, 2023$1,127 $1,638 $2,765 

Cleco Power
(THOUSANDS)ACCOUNTS RECEIVABLE
Balances, Dec. 31, 2023
$3,012 
Current period provision142 
Charge-offs(1,662)
Recovery330 
Balances, Mar. 31, 2024$1,822 

(THOUSANDS)ACCOUNTS RECEIVABLE
Balances, Dec. 31, 2022
$1,147 
Current period provision1,240 
Charge-offs(1,637)
Recovery377 
Balances, Mar. 31, 2023$1,127