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. As a result, 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 represents 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 have been presented as discontinued operations since March 31, 2023. On June 1, 2024, the Cleco Cajun Divestiture closed. For more information, see Note 3 — “Discontinued Operations.”

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.

On March 12, 2025, following the formation of Cleco Securitization II and the completion of the securitization financing of stranded and decommissioning costs associated with the retirement of the Dolet Hills Power Station as well as deferred fuel and other costs associated with the closure of the Oxbow mine, Cleco Power became the primary beneficiary of Cleco Securitization II, and as a result, the financial statements of Cleco Securitization II are consolidated with the financial statements of Cleco Power. For more information on Cleco Securitization II, see Note 13 — “Variable Interest Entities — Securitization Entities — Cleco Securitization II.”

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, 2024.

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.”


Cleco
(THOUSANDS)	AT MAR. 31, 2025		AT DEC. 31, 2024
Current

Cleco Securitization I and Cleco Securitization II operating expenses and debt service	$	9,727	$	15,918
Cleco Securitization II Dolet Hills plant and mine retirement costs	7,576		—
Total current	17,303		15,918
Non-current
Cleco Securitization II Dolet Hills plant and mine retirement costs	33,255		1
Diversified Lands’ mitigation escrow	24		24
Cleco Power’s future storm restoration costs	117,659		116,468


Total non-current	150,938		116,493
Total restricted cash and cash equivalents	$	168,241	$	132,411


Cleco Power
(THOUSANDS)	AT MAR. 31, 2025		AT DEC. 31, 2024
Current

Cleco Securitization I and Cleco Securitization II operating expenses and debt service	$	9,727	$	15,918
Cleco Securitization II Dolet Hills plant and mine retirement costs	7,576		—
Total current	17,303		15,918
Non-current
Cleco Securitization II Dolet Hills plant and mine retirement costs	33,255		1
Future storm restoration costs	117,659		116,468


Total non-current	150,914		116,469
Total restricted cash and cash equivalents	$	168,217	$	132,387

On October 8, 2024, Cleco Power made a filing with the LPSC seeking approval to withdraw storm restoration costs associated with the April 2024 storm, as well as costs associated with other storm events that occurred since December 2022, from the storm reserve. This request is currently under review by the LPSC. Management anticipates filing an additional application seeking approval for withdrawal of the accumulated restoration costs for Hurricane Francine, as well as other storms that occurred in 2024, from the restricted storm reserve in 2025. At March 31, 2025, Cleco Power had $46.0 million of accumulated storm restoration costs that are probable of recovery from the storm reserve, pending approval by the LPSC. For more information about these accumulated storm restoration costs, see Note 5 — “Regulatory Assets and Liabilities — Storm Reserve.”

On March 12, 2025, in conjunction with the securitization financing and pursuant to the financing order issued by the LPSC on November 20, 2024, newly funded energy transition reserve for reimbursement of Dolet Hills Power Station energy transition costs and for future energy transition costs were established. For more information about the energy transition reserve, see Note 5 — “Regulatory Assets and Liabilities — Energy Transition Reserve.”

Customer accounts receivable are recorded at the invoiced amount and do not bear interest. Customer accounts receivable are generally considered past due 21 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-off 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

(THOUSANDS)	ACCOUNTS RECEIVABLE		OTHER		TOTAL
Balances, beginning of period	$	1,337	$	1,638	$	2,975

Current period provision	(95)		—		(95)
Charge-offs	(662)		—		(662)
Recovery	265		—		265
Balances, Mar. 31, 2025	$	845	$	1,638	$	2,483



(THOUSANDS)	ACCOUNTS RECEIVABLE		OTHER		TOTAL
Balances, beginning of period	$	3,012	$	1,638	$	4,650

Current period provision	142		—		142
Charge-offs	(1,662)		—		(1,662)
Recovery	330		—		330
Balances, Mar. 31, 2024	$	1,822	$	1,638	$	3,460