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Summary of Significant Accounting Policies
 6 Months Ended
Jun. 30, 2025
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies
Note 1 — Summary of Significant Accounting Policies
Discontinued Operations
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.”
Principles of Consolidation
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.”
Basis of Presentation
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.”

Revision of Previously Issued Financial Information
In the second quarter of 2025, Cleco identified errors in its previously filed consolidated annual and interim financial statements. Specifically, management identified errors (collectively, the “Q2 2025 CF Errors”) in the Consolidated Statements of Cash Flows included in the previously filed consolidated financial statements of Cleco and Cleco Power for the years ended December 31, 2024, 2023, and 2022 and interim periods in 2025 and 2024.
Management assessed the materiality of the Q2 2025 CF Errors on the previously filed consolidated financial statements in accordance with the SEC’s Staff Accounting Bulletin (“SAB”) No. 99 and SAB No. 108 and determined that the Q2 2025 CF Errors were not material to the prior period financial statements, individually or in the aggregate; however, for comparability purposes, the comparative amounts presented in the second quarter 2025 Form 10-Q have been revised.
The Q2 2025 CF Errors primarily relate to an error in the classification of accrued capital expenditures in the Consolidated Statements of Cash Flows, which resulted in errors to the Net cash provided by operating activities and Net cash provided by (used in) investing activities lines. The revisions to the comparative amounts presented in the second quarter 2025 Form 10-Q also reflect correction of other immaterial errors included in the previously filed financial statements. Additionally, the revisions had no impact on the consolidated balance sheets, consolidated statements of income, consolidated statements of comprehensive income, consolidated statements of changes in member’s equity, or notes to the financial statements included in the previously filed financial statements.
A summary of the revisions to the previously filed consolidated financial statements is shown below.

CLECO
CLECO POWER
FOR THE THREE MONTHS ENDED MARCH 31, 2025
FOR THE THREE MONTHS ENDED MARCH 31, 2025
(THOUSANDS)AS REPORTED
REVISION
AS REVISED
AS REPORTED
REVISION
AS REVISED
Unearned compensation expense$435 $5,111 $5,546 $1,317 $3,356 $4,673 
Accounts receivable$(710)$1,342 $632 $(997)$1,342 $345 
Customer deposits$1,749 $(1,342)$407 $1,749 $(1,342)$407 
Other deferred accounts$(19,419)$12,875 $(6,544)$(7,542)$3,545 $(3,997)
Accounts payable$(9,105)$(3,014)$(12,119)$(1,338)$(1,870)$(3,208)
Taxes accrued$7,226 $(494)$6,732 $13,975 $(77)$13,898 
Other operating$(5,892)$(13,666)$(19,558)$(6,365)$(4,142)$(10,507)
Net cash provided by operating activities$54,442 $812 $55,254 $76,340 $812 $77,152 
Additions to property, plant, and equipment$(68,289)$(812)$(69,101)$(67,832)$(812)$(68,644)
Customer advances for construction$900 $— $900 $900 $— $900 
Net cash used in investing activities
$(70,166)$(812)$(70,978)$(69,709)$(812)$(70,521)
Accrued additions to property, plant, and equipment$3,466 $5,648 $9,114 $3,449 $5,648 $9,097 

CLECOCLECO POWER
FOR THE YEAR ENDED DECEMBER 31, 2024
FOR THE YEAR ENDED DECEMBER 31, 2024
(THOUSANDS)AS REPORTED
REVISION
AS REVISED
AS REPORTED
REVISION
AS REVISED
Unearned compensation expense$8,774 $30,170 $38,944 $1,867 $17,043 $18,910 
Accounts receivable$20,319 $6,393 $26,712 $(1,377)$6,393 $5,016 
Customer deposits$7,654 $(6,393)$1,261 $7,654 $(6,393)$1,261 
Other deferred accounts$2,943 $(10,065)$(7,122)$10,564 $(9,434)$1,130 
Accounts payable$(11,856)$(27,563)$(39,419)$(5,295)$(17,664)$(22,959)
Taxes accrued$39,010 $626 $39,636 $(11,845)$101 $(11,744)
Other operating$(1,079)$(4,254)$(5,333)$2,229 $(1,132)$1,097 
Net cash provided by operating activities$296,805 $(11,086)$285,719 $270,585 $(11,086)$259,499 
Additions to property, plant, and equipment$(259,525)$(14,722)$(274,247)$(255,336)$(14,722)$(270,058)
Customer advances for construction$— $18,058 $18,058 $— $18,058 $18,058 
Net cash provided by (used in) investing activities
$217,239 $3,336 $220,575 $(242,341)$3,336 $(239,005)
Credit deposits$— $7,750 $7,750 $— $7,750 $7,750 
Net cash used in financing activities$(607,228)$7,750 $(599,478)$(50,721)$7,750 $(42,971)
Accrued additions to property, plant, and equipment$5,010 $6,460 $11,470 $5,010 $6,460 $11,470 
CLECOCLECO POWER
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2024
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2024
(THOUSANDS)AS REPORTED
REVISION
AS REVISED
AS REPORTED
REVISION
AS REVISED
Unearned compensation expense$5,875 $23,588 $29,463 $1,236 $13,101 $14,337 
Accounts receivable$1,612 $4,896 $6,508 $(17,405)$4,896 $(12,509)
Customer deposits$5,768 $(4,896)$872 $5,768 $(4,896)$872 
Other deferred accounts$(10,824)$(9,623)$(20,447)$(5,128)$(9,082)$(14,210)
Accounts payable$(30,560)$(18,514)$(49,074)$(20,575)$(10,540)$(31,115)
Taxes accrued$60,424 $526 $60,950 $23,473 $81 $23,554 
Other operating$(12,684)$(3,398)$(16,082)$(2,030)$(981)$(3,011)
Net cash provided by operating activities$265,136 $(7,421)$257,715 $248,855 $(7,421)$241,434 
Additions to property, plant, and equipment$(172,513)$(18,163)$(190,676)$(168,528)$(18,163)$(186,691)
Customer advances for construction$— $17,834 $17,834 $— $17,834 $17,834 
Net cash provided by (used in) investing activities
$293,291 $(329)$292,962 $(166,493)$(329)$(166,822)
Credit deposits$— $7,750 $7,750 $— $7,750 $7,750 
Net cash used in financing activities$(439,911)$7,750 $(432,161)$(85,706)$7,750 $(77,956)
Accrued additions to property, plant, and equipment$4,488 $3,044 $7,532 $4,486 $3,044 $7,530 

CLECOCLECO POWER
FOR THE SIX MONTHS ENDED JUNE 30, 2024
FOR THE SIX MONTHS ENDED JUNE 30, 2024
(THOUSANDS)AS REPORTED
REVISION
AS REVISED
AS REPORTED
REVISION
AS REVISED
Unearned compensation expense$3,685 $10,009 $13,694 $— $6,519 $6,519 
Accounts receivable$21,816 $3,100 $24,916 $2,911 $3,100 $6,011 
Customer deposits$3,902 $(3,100)$802 $3,902 $(3,100)$802 
Other deferred accounts(1)
$(3,236)$(9,277)$(12,513)$(694)$(8,272)$(8,966)
Accounts payable(2)
$(20,239)$(10,451)$(30,690)$(5,019)$(5,811)$(10,830)
Taxes accrued$80,585 $477 $81,062 $34,900 $(72)$34,828 
Other operating(3)
$(10,409)$262 $(10,147)$(6,163)$(1,344)$(7,507)
Net cash provided by operating activities$185,038 $(8,980)$176,058 $160,241 $(8,980)$151,261 
Additions to property, plant, and equipment$(116,515)$(7,297)$(123,812)$(113,081)$(7,297)$(120,378)
Customer advances for construction$— $8,527 $8,527 $— $8,527 $8,527 
Net cash provided by (used in) investing activities
$348,743 $1,230 $349,973 $(111,592)$1,230 $(110,362)
Credit deposits$— $7,750 $7,750 $— $7,750 $7,750 
Net cash used in financing activities $(370,455)$7,750 $(362,705)$(48,755)$7,750 $(41,005)
Accrued additions to property, plant, and equipment$4,131 $4,712 $8,843 $4,086 $4,712 $8,798 
Amounts presented as revised differ from those in Part I, Item 1, “Condensed Consolidated Financial Statements (Unaudited) — Cleco — Condensed Consolidated Statements of Cash Flows (Unaudited)” and “— Cleco Power — Condensed Consolidated Statements of Cash Flows (Unaudited)” due to the following:
(1) For Cleco and Cleco Power, includes $10.4 million previously reported in Other deferred accounts that was reclassified to Storm reserves.
(2) For Cleco, includes $26.2 million that was reclassified to Incentive compensation payable. For Cleco Power, includes $7.9 million that was reclassified to Incentive compensation payable.
(3) For Cleco, includes $0.5 million previously reported in Provision for credit losses and $8.2 million that was reclassified to Incentive compensation payable. For Cleco Power, includes $0.5 million previously reported in Provision for credit losses, $1.5 million that was reclassified to Incentive compensation payable, $0.7 million previously reported in Postretirement benefit obligations, and $0.3 million previously reported in Regulatory assets.
CLECOCLECO POWER
FOR THE YEAR ENDED DECEMBER 31, 2023
FOR THE YEAR ENDED DECEMBER 31, 2023
(THOUSANDS)AS REPORTED
REVISION
AS REVISED
AS REPORTED
REVISION
AS REVISED
Unearned compensation expense$10,102 $26,254 $36,356 $1,661 $15,378 $17,039 
Accounts receivable$8,112 $6,680 $14,792 $18,044 $6,680 $24,724 
Customer deposits$5,311 $(6,680)$(1,369)$5,311 $(6,680)$(1,369)
Other deferred accounts$(1,632)$(9,337)$(10,969)$4,441 $(8,106)$(3,665)
Accounts payable$(37,827)$(22,513)$(60,340)$(19,185)$(12,620)$(31,805)
Taxes accrued$225 $293 $518 $6,567 $40 $6,607 
Other operating$874 $— $874 $417 $— $417 
Net cash provided by operating activities$421,192 $(5,302)$415,890 $399,943 $(5,308)$394,635 
Additions to property, plant, and equipment$(230,238)$(33,586)$(263,824)$(220,982)$(33,580)$(254,562)
Customer advances for construction$— $31,888 $31,888 $— $31,888 $31,888 
Net cash used in investing activities
$(227,816)$(1,698)$(229,514)$(218,657)$(1,692)$(220,349)
Credit deposits$— $7,000 $7,000 $— $7,000 $7,000 
Net cash used in financing activities$(128,881)$7,000 $(121,881)$(150,352)$7,000 $(143,352)
Accrued additions to property, plant, and equipment$5,052 $3,481 $8,533 $4,196 $3,481 $7,677 

CLECOCLECO POWER
FOR THE YEAR ENDED DECEMBER 31, 2022
FOR THE YEAR ENDED DECEMBER 31, 2022
(THOUSANDS)AS REPORTED
REVISION
AS REVISED
AS REPORTED
REVISION
AS REVISED
Unearned compensation expense$5,502 $12,518 $18,020 $— $5,258 $5,258 
Accounts receivable$(61,848)$8,804 $(53,044)$(48,353)$8,804 $(39,549)
Customer deposits$6,778 $(8,804)$(2,026)$6,778 $(8,804)$(2,026)
Other deferred accounts$(7,333)$3,913 $(3,420)$(2,281)$599 $(1,682)
Accounts payable$20,711 $(7,074)$13,637 $(854)$(108)$(962)
Taxes accrued$11,337 $364 $11,701 $9,704 $80 $9,784 
Other operating$(8,205)$(5,450)$(13,655)$(5,148)$(1,556)$(6,704)
Net cash provided by operating activities$344,912 $4,272 $349,184 $274,265 $4,272 $278,537 
Additions to property, plant, and equipment$(236,767)$(11,924)$(248,691)$(228,940)$(11,924)$(240,864)
Customer advances for construction$— $7,652 $7,652 $— $7,652 $7,652 
Net cash used in investing activities
$(193,257)$(4,272)$(197,529)$(220,693)$(4,272)$(224,965)
Accrued additions to property, plant, and equipment$10,247 $5,020 $15,267 $9,954 $5,020 $14,974 
Various agreements to which Cleco is subject contain covenants that restrict its use of cash. As certain provisions under these agreements are met, cash is transferred out of related escrow accounts and becomes available for its intended purposes and/or general corporate purposes.
Cleco’s and Cleco Power’s restricted cash and cash equivalents consisted of the following:
Cleco
(THOUSANDS)AT JUNE 30, 2025AT DEC. 31, 2024
Current
Cleco Securitization I and Cleco Securitization II operating expenses and debt service
$21,896 $15,918 
Cleco Securitization II Dolet Hills plant and mine retirement costs 7,691 — 
Total current29,587 15,918 
Non-current
Cleco Securitization II Dolet Hills plant and mine retirement costs 32,538 1 
Diversified Lands’ mitigation escrow25 24 
Cleco Power’s future storm restoration costs106,647 116,468 
Total non-current139,210 116,493 
Total restricted cash and cash equivalents$168,797 $132,411 

Cleco Power
(THOUSANDS)AT JUNE 30, 2025AT DEC. 31, 2024
Current
Cleco Securitization I and Cleco Securitization II operating expenses and debt service
$21,896 $15,918 
Cleco Securitization II Dolet Hills plant and mine retirement costs 7,691 — 
Total current29,587 15,918 
Non-current
Cleco Securitization II Dolet Hills plant and mine retirement costs 32,538 1 
Future storm restoration costs106,647 116,468 
Total non-current139,185 116,469 
Total restricted cash and cash equivalents$168,772 $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. In June 2025, Cleco Power received LPSC approval to withdraw $12.3 million from the storm reserve. 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 storm reserve in 2025. At June 30, 2025, Cleco Power had $37.8 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, a newly funded energy transition reserve for reimbursement of Dolet Hills Power Station energy transition costs and for future energy transition costs was established. For more information about the energy transition reserve, see Note 5 — “Regulatory Assets and Liabilities — Energy Transition Reserve.”
Related Party Transactions
Cleco Power evaluates relationships and transactions to determine whether they involve related parties in accordance
with applicable state and federal regulations, as well as GAAP. A related party relationship exists when one party significantly influences the management or operating policies of the other, or when the parties are subject to common control or ownership, among other things as described in Cleco’s policies and procedures.
MAM holds an ownership interest in Cleco Power through its investment in Cleco Holdings.
Cleco Power entered into a long-term agreement with a third party, DESRI, in July 2022 to purchase the output and associated attributes of a 240-MW solar electric generation facility to be constructed in DeSoto Parish, Louisiana, with commercial operation expected to commence in the fourth quarter of 2026. In January 2025, MAM completed a significant minority investment in DESRI, establishing DESRI as a related party to Cleco Power.
As of June 30, 2025, Cleco Power has not incurred any costs under the agreement. The project remains in development, and no payments or capital expenditures have been made to date. Cleco Power will disclose and quantify any future financial activity under the agreement as it occurs.
Reserves for Credit Losses
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’s credit losses at June 30, 2025, are within normal levels and historical trends.
The tables below present the changes in the allowance for credit losses by receivable for Cleco and Cleco Power:
Cleco
FOR THE THREE MONTHS ENDED JUNE 30, 2025FOR THE SIX MONTHS ENDED JUNE 30, 2025
(THOUSANDS)ACCOUNTS
RECEIVABLE
OTHER
TOTALACCOUNTS
RECEIVABLE
OTHER
TOTAL
Balances, beginning of period
$845 $1,638 $2,483 $1,337 $1,638 $2,975 
Current period provision476 — 476 381 — 381 
Charge-offs(688)— (688)(1,350)— (1,350)
Recovery212 — 212 477 — 477 
Balances, June 30, 2025$845 $1,638 $2,483 $845 $1,638 $2,483 
FOR THE THREE MONTHS ENDED JUNE 30, 2024FOR THE SIX MONTHS ENDED JUNE 30, 2024
(THOUSANDS)ACCOUNTS
RECEIVABLE
OTHER
TOTALACCOUNTS
RECEIVABLE
OTHER
TOTAL
Balances, beginning of period
$1,822 $1,638 $3,460 $3,012 $1,638 $4,650 
Current period provision368 — 368 510 — 510 
Charge-offs(1,098)— (1,098)(2,761)— (2,761)
Recovery276 — 276 607 — 607 
Balances, June 30, 2024$1,368 $1,638 $3,006 $1,368 $1,638 $3,006 
Cleco Power
FOR THE THREE MONTHS ENDED JUNE 30, 2025
FOR THE SIX MONTHS ENDED JUNE 30, 2025
(THOUSANDS)ACCOUNTS RECEIVABLE
Balances, beginning of period
$845 $1,337 
Current period provision476 381 
Charge-offs(688)(1,350)
Recovery212 477 
Balances, June 30, 2025$845 $845 

FOR THE THREE MONTHS ENDED JUNE 30, 2024
FOR THE SIX MONTHS ENDED JUNE 30, 2024
(THOUSANDS)ACCOUNTS RECEIVABLE
Balances, beginning of period
$1,822 $3,012 
Current period provision368 510 
Charge-offs(1,098)(2,761)
Recovery276 607 
Balances, June 30, 2024$1,368 $1,368