Derivative Instruments

12 Months Ended

Dec. 31, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments

Note 9 — 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 December 31, 2024 and 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 Consolidated Balance Sheets at December 31, 2024, and 2023:

Cleco
	DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS
(THOUSANDS)	BALANCE SHEET LINE ITEM	AT DEC. 31, 2024		AT DEC. 31, 2023
Commodity-related contracts
FTRs
Current	Energy risk management assets	$	2,084	$	3,087
Current	Energy risk management liabilities	(256)		(781)
Natural gas derivatives
Current	Energy risk management assets	9,210		5,042
Current	Energy risk management liabilities	—		(15,005)
Commodity-related contracts, net		$	11,038	$	(7,657)

Cleco Power
	DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS
		AT DEC. 31,
(THOUSANDS)	BALANCE SHEET LINE ITEM	2024		2023
Commodity-related contracts
FTRs
Current	Energy risk management assets	$	2,084	$	3,087
Current	Energy risk management liabilities	(256)		(781)
Natural gas derivatives
Current	Energy risk management assets	9,210		—
Current	Energy risk management liabilities	—		(14,331)
Commodity-related contracts, net		$	11,038	$	(12,025)

The following table presents the effect of derivatives not designated as hedging instruments on Cleco’s and Cleco

Power’s Consolidated Statements of Income for the years December 31, 2024, 2023, and 2022:

Cleco
	AMOUNT OF GAIN/(LOSS) RECOGNIZED IN INCOME ON DERIVATIVES
		FOR THE YEAR ENDED DEC. 31,
(THOUSANDS)	DERIVATIVES LINE ITEM	2024		2023		2022
Commodity contracts
FTRs (1)	Electric operations	$	2,811	$	6,320	$	14,118
FTRs (1)	Purchased power	(2,988)		(4,465)		(7,331)
Natural gas derivatives (2)(3)	Fuel used for electric generation	(30,748)		(139,315)		180,522
Total		$	(30,925)	$	(137,460)	$	187,309

(1) For the years ended December 31, 2024, 2023, and 2022, unrealized gains (losses) associated with FTRs of $0.2 million, $(0.4) million, and $(0.5) million, respectively, were reported through Accumulated deferred fuel on the balance sheet.

(2) For the years ended December 31, 2024, 2023, and 2022, unrealized gains (losses) associated with natural gas derivatives for Cleco Power of $14.6 million, $(9.8) million, and $4.9 million, respectively, were reported through Accumulated deferred fuel on the balance sheet.

(3) For the year ended December 31, 2023, realized losses associated with natural gas derivatives for Cleco Power of $(2.0) million were reported through Accumulated deferred fuel on the balance sheet. For the years ended December 31, 2024, and 2022, Cleco Power had no realized gains (losses) associated with natural gas derivatives reported through Accumulated deferred fuel on the balance sheet.

Cleco Power
	AMOUNT OF GAIN/(LOSS) RECOGNIZED IN INCOME ON DERIVATIVES
		FOR THE YEAR ENDED DEC. 31,
(THOUSANDS)	DERIVATIVES LINE ITEM	2024		2023		2022
Commodity contracts
FTRs (1)	Electric operations	$	2,811	$	6,320	$	14,118
FTRs (1)	Purchased power	(2,988)		(4,465)		(7,331)
Natural gas derivatives (2)(3)	Fuel used for electric generation	(24,289)		(22,734)		—
Total		$	(24,466)	$	(20,879)	$	6,787

((1) For the years ended December 31, 2024, 2023, and 2022, unrealized gains (losses) associated with FTRs of $0.2 million, $(0.4) million, and $(0.5) million, respectively, were reported through Accumulated deferred fuel on the balance sheet.

(2) For the years ended December 31, 2024, 2023, and 2022, unrealized gains (losses) associated with natural gas derivatives for Cleco Power of $14.6 million, $(9.8) million, and $4.9 million, respectively, were reported through Accumulated deferred fuel on the balance sheet.

(3) For the year ended December 31, 2023, realized losses associated with natural gas derivatives for Cleco Power of $(2.0) million were reported through Accumulated deferred fuel on the balance sheet. For the years ended December 31, 2024, and 2022, Cleco Power had no realized gains (losses) associated with natural gas derivatives reported through Accumulated deferred fuel on the balance sheet.

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

Cleco
		TOTAL VOLUME OUTSTANDING
	UNIT OF MEASURE	AT DEC. 31,
(THOUSAND)		2024	2023
Commodity-related contracts
FTRs	MWh	6,720	9,611
Natural gas derivatives	MMBtus	18,595	61,119

Cleco Power
		TOTAL VOLUME OUTSTANDING
	UNIT OF MEASURE	AT DEC. 31,
(THOUSAND)		2024	2023
Commodity-related contracts
FTRs	MWh	6,720	9,611
Natural gas derivatives	MMBtus	18,595	19,915