Intangible Assets

3 Months Ended

Mar. 31, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets

Note 15 — Intangible Assets

Securitized Intangible Asset

On June 22, 2022, Cleco Securitization I acquired the Storm Recovery Property from Cleco Power for a purchase price of $415.9 million. The Storm Recovery Property is classified as a

securitized intangible asset on Cleco’s and Cleco Power’s Condensed Consolidated Balance Sheets. This securitized intangible asset is being amortized ratably each period consistent with actual collections of the asset’s portion of the revenue requirement billed to Cleco Power’s customers. Amortization is included in Depreciation and amortization on Cleco’s and Cleco Power’s Condensed Consolidated Statements of Income. During the three months ended March 31, 2024, and 2023, amortization expense of $3.3 million and $4.2 million, respectively, was recognized. At the end of its life, this securitized intangible asset will have no residual value.

The following table summarizes the balance of the securitized intangible asset subject to amortization included on Cleco’s and Cleco Power’s Condensed Consolidated Balance Sheets:

(THOUSANDS)	AT MAR. 31, 2024		AT DEC. 31, 2023
Storm Recovery Property intangible asset	$	415,946	$	415,946
Accumulated amortization	(20,615)		(17,288)
Net intangible asset subject to amortization	$	395,331	$	398,658

Other Intangible Assets

As a result of the 2016 Merger, fair value adjustments were recorded on Cleco’s Condensed Consolidated Balance Sheet for the valuation of finite intangible assets relating to long-term wholesale power supply agreements. At the end of their lives, these power supply agreement intangible assets will have no residual value. The remaining intangible asset related to the power supply agreement is amortized over the estimated life of its contract of 19 years, and the amortization is included in Electric operations on Cleco’s Condensed Consolidated Statements of Income.

The following table presents the amortization expense recognized during the three months ended March 31, 2024, and 2023:

Cleco
	FOR THE THREE MONTHS ENDED MAR. 31,
(THOUSANDS)	2024		2023
Amortization expense
Power supply agreements	$	2,323	$	2,420

The following table summarizes the balance of other intangible assets subject to amortization included in Cleco’s Condensed Consolidated Balance Sheets:

Cleco
(THOUSANDS)	AT MAR. 31, 2024		AT DEC. 31, 2023
Power supply agreements	$	14,238	$	85,104
Accumulated amortization	(5,929)		(74,471)
Net intangible assets subject to amortization	$	8,309	$	10,633