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Fair Value Accounting Instruments (Tables)

3 Months Ended

Mar. 31, 2024

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

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 Condensed Consolidated Balance Sheets. These amounts are presented on a gross basis.


Cleco
	FAIR VALUE MEASUREMENTS AT REPORTING DATE
(THOUSANDS)	AT MAR. 31, 2024		QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1)		SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2)		SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3)		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)
Asset description
Short-term investments	$	286,707	$	286,707	$	—	$	—	$	242,596	$	242,596	$	—	$	—
FTRs	881		—		—		881		3,087		—		—		3,087
Natural gas derivatives	4,548		—		4,548		—		5,042		—		5,042		—
Total assets	$	292,136	$	286,707	$	4,548	$	881	$	250,725	$	242,596	$	5,042	$	3,087
Liability description
FTRs	$	435	$	—	$	—	$	435	$	781	$	—	$	—	$	781
Natural gas derivatives	12,608		—		12,608		—		15,005		—		15,005		—
Total liabilities	$	13,043	$	—	$	12,608	$	435	$	15,786	$	—	$	15,005	$	781

Schedule of Short-term Investments

The following tables present the short-term investments as recorded on Cleco’s and Cleco Power’s Condensed Consolidated Balance Sheets at March 31, 2024, and December 31, 2023:


Cleco
(THOUSANDS)	AT MAR. 31, 2024		AT DEC. 31, 2023
Cash and cash equivalents	$	164,047	$	113,207
Current restricted cash and cash equivalents	$	7,684	$	15,818
Non-current restricted cash and cash equivalents	$	114,976	$	113,571

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 THREE MONTHS ENDED MAR. 31,
(THOUSANDS)	2024		2023
Balances, beginning of period	$	2,306	$	2,276
Unrealized losses*	(418)		(24)
Purchases	(33)		(64)
Settlements	(1,409)		(1,555)
Balances, end of period	$	446	$	633
*Unrealized losses are reported through Accumulated deferred fuel on Cleco’s and Cleco Power’s Condensed 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 March 31, 2024, and December 31, 2023:


	FAIR VALUE				VALUATION TECHNIQUE	SIGNIFICANT UNOBSERVABLE INPUTS	FORWARD PRICE RANGE
(THOUSANDS, EXCEPT FORWARD PRICE RANGE)	ASSETS		LIABILITIES				LOW		HIGH
FTRs at Mar. 31, 2024	$	881	$	435	RTO auction pricing	FTR price - per MWh	$	(1.98)	$	7.34
FTRs at Dec. 31, 2023	$	3,087	$	781	RTO auction pricing	FTR price - per MWh	$	(3.51)	$	7.07

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 Condensed Consolidated Balance Sheets:


Cleco
	AT MAR. 31, 2024				AT DEC. 31, 2023
(THOUSANDS)	CARRYING VALUE*		FAIR VALUE		CARRYING VALUE*		FAIR VALUE
Long-term debt	$	3,390,677	$	3,147,971	$	3,400,293	$	3,177,654

* The carrying value of long-term debt does not include deferred issuance costs of $13.5 million at March 31, 2024, and $14.2 million at December 31, 2023

CLECO POWER

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [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 MAR. 31, 2024		QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1)		SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2)		SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3)		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)
Asset description
Short-term investments	$	172,080	$	172,080	$	—	$	—	$	169,606	$	169,606	$	—	$	—
FTRs	881		—		—		881		3,087		—		—		3,087
Natural gas derivatives	4,452		—		4,452		—		—		—		—		—
Total assets	$	177,413	$	172,080	$	4,452	$	881	$	172,693	$	169,606	$	—	$	3,087
Liability description
FTRs	$	435	$	—	$	—	$	435	$	781	$	—	$	—	$	781
Natural gas derivatives	12,570		—		12,570		—		14,331		—		14,331		—
Total liabilities	$	13,005	$	—	$	12,570	$	435	$	15,112	$	—	$	14,331	$	781

Schedule of Short-term Investments


Cleco Power
(THOUSANDS)	AT MAR. 31, 2024		AT DEC. 31, 2023
Cash and cash equivalents	$	49,444	$	40,240
Current restricted cash and cash equivalents	$	7,684	$	15,818
Non-current restricted cash and cash equivalents	$	114,952	$	113,548

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 THREE MONTHS ENDED MAR. 31,
(THOUSANDS)	2024		2023
Balances, beginning of period	$	2,306	$	2,276
Unrealized losses*	(418)		(24)
Purchases	(33)		(64)
Settlements	(1,409)		(1,555)
Balances, end of period	$	446	$	633
*Unrealized losses are reported through Accumulated deferred fuel on Cleco’s and Cleco Power’s Condensed 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 March 31, 2024, and December 31, 2023:


	FAIR VALUE				VALUATION TECHNIQUE	SIGNIFICANT UNOBSERVABLE INPUTS	FORWARD PRICE RANGE
(THOUSANDS, EXCEPT FORWARD PRICE RANGE)	ASSETS		LIABILITIES				LOW		HIGH
FTRs at Mar. 31, 2024	$	881	$	435	RTO auction pricing	FTR price - per MWh	$	(1.98)	$	7.34
FTRs at Dec. 31, 2023	$	3,087	$	781	RTO auction pricing	FTR price - per MWh	$	(3.51)	$	7.07

Schedule of Carrying Value and Estimated Fair Value


Cleco Power
	AT MAR. 31, 2024				AT DEC. 31, 2023
(THOUSANDS)	CARRYING VALUE*		FAIR VALUE		CARRYING VALUE*		FAIR VALUE
Long-term debt	$	1,878,482	$	1,844,789	$	1,886,248	$	1,867,559

* The carrying value of long-term debt does not include deferred issuance costs of $11.1 million at March 31, 2024, and $11.5 million at December 31, 2023.

- 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