Derivative Instruments

3 Months Ended

Mar. 31, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments

Note 7 —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. Generally, Cleco’s derivative positions are subject to netting agreements that provide for offsetting of asset and liability positions as well as related collateral with the same counterparty. At March 31, 2024, and December 31, 2023, there were no fair value amounts offset on the balance sheets and no collateral posted with or received from counterparties. The following tables present the fair values of derivative instruments and their respective line items as recorded on Cleco’s and Cleco Power’s Condensed Consolidated Balance Sheets at March 31, 2024, and at December 31, 2023:

Cleco
	DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS
(THOUSANDS)	BALANCE SHEET LINE ITEM	AT MAR. 31, 2024		AT DEC. 31, 2023
Commodity-related contracts
FTRs
Current	Energy risk management assets	$	881	$	3,087
Current	Energy risk management liabilities	(435)		(781)
Natural gas derivatives
Current	Energy risk management assets	4,548		5,042
Current	Energy risk management liabilities	(12,608)		(15,005)
Commodity-related contracts, net		$	(7,614)	$	(7,657)

Cleco Power
	DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS
(THOUSANDS)	BALANCE SHEET LINE ITEM	AT MAR. 31, 2024		AT DEC. 31, 2023
Commodity-related contracts
FTRs
Current	Energy risk management assets	$	881	$	3,087
Current	Energy risk management liabilities	(435)		(781)
Natural gas derivatives
Current	Energy risk management assets	4,452		—
Current	Energy risk management liabilities	(12,570)		(14,331)
Commodity-related contracts, net		$	(7,672)	$	(12,025)

The following tables present the effect of derivatives not designated as hedging instruments on Cleco’s and Cleco Power’s Condensed Consolidated Statements of Income for the three months ended March 31, 2024, and 2023:

Cleco
	AMOUNT OF GAIN(LOSS) ON DERIVATIVES RECOGNIZED IN INCOME
		FOR THE THREE MONTHS ENDED MAR. 31,
(THOUSANDS)	INCOME STATEMENT LINE ITEM	2024		2023
Commodity-related contracts
FTRs(1)	Electric operations	$	726	$	859
FTRs(1)	Purchased power	(1,371)		(596)
Natural gas derivatives(2)	Fuel used for electric generation	(18,701)		(83,906)		(3)
Total		$	(19,346)	$	(83,643)

(1) For the three months ended March 31, 2024, and 2023, unrealized losses associated with FTRs of $(0.4) million and less than $(0.1) million, respectively, were reported through Accumulated deferred fuel on the balance sheet.

(2) For the three months ended March 31, 2024, unrealized gains and realized losses associated with natural gas derivatives for Cleco Power of $1.3 million and $(3.2) million, respectively, were reported through Accumulated deferred fuel on the balance sheet. For the three months ended March 31, 2023, unrealized losses and realized losses associated with natural gas derivatives for Cleco Power of $(4.5) million and $(1.8) million, respectively, were reported through Accumulated deferred fuel on the balance sheet.

(3) 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.

Cleco Power
	AMOUNT OF GAIN(LOSS) ON DERIVATIVES RECOGNIZED IN INCOME
		FOR THE THREE MONTHS ENDED MAR. 31,
(THOUSANDS)	INCOME STATEMENT LINE ITEM	2024		2023
Commodity-related contracts
FTRs(1)	Electric operations	$	726	$	859
FTRs(1)	Purchased power	(1,371)		(596)
Natural gas derivatives(2)	Fuel used for electric generation	(7,756)		(6,540)
Total		$	(8,401)	$	(6,277)

(1) For the three months ended March 31, 2024, and 2023, unrealized losses associated with FTRs of $(0.4) million and less than $(0.1) million, respectively, were reported through Accumulated deferred fuel on the balance sheet.

(2) For the three months ended March 31, 2024, unrealized gains and realized losses associated with natural gas derivatives of $1.3 million and $(3.2) million, respectively, were reported through Accumulated deferred fuel on the balance sheet. For the three months ended March 31, 2023, unrealized losses and realized losses associated with natural gas derivatives of $(4.5) million and $(1.8) million, respectively, were reported through Accumulated deferred fuel on the balance sheet.

The following tables present the volume of commodity-related derivative contracts outstanding at March 31, 2024, and December 31, 2023, for Cleco and Cleco Power:

Cleco
	UNIT OF MEASURE	TOTAL VOLUME OUTSTANDING
(THOUSAND)		AT MAR. 31, 2024	AT DEC. 31, 2023
Commodity-related contracts
FTRs	MWh	2,686	9,611
Natural gas derivatives	MMBtus	48,490	61,119

Cleco Power
	UNIT OF MEASURE	TOTAL VOLUME OUTSTANDING
(THOUSAND)		AT MAR. 31, 2024	AT DEC. 31, 2023
Commodity-related contracts
FTRs	MWh	2,686	9,611
Natural gas derivatives	MMBtus	23,990	19,915