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Variable Interest Entities
 6 Months Ended
Jun. 30, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Variable Interest Entities
Note 13 — Variable Interest Entities

Securitization Entities
Cleco Securitization I and Cleco Securitization II are special-purpose, wholly owned subsidiaries of Cleco Power that were formed for the purpose of issuing storm recovery bonds and energy transition bonds, respectively, for the securitization financing of intangible property at Cleco Power. Cleco Securitization I’s and Cleco Securitization II’s assets cannot be used to settle Cleco Power’s obligations, and the holders of their respective bonds have no recourse against Cleco Power.
Cleco Securitization I’s and Cleco Securitization II’s equity at risk is less than 1% of their total assets; therefore, they are considered variable interest entities. Cleco Power, through its equity ownership interest and role as servicer of each securitization entity’s respective bonds, has the power to direct the most significant financial and operating activities, including billings, collections, and remittances of retail customer cash receipts to enable each securitization entity to pay the principal and interest payments on bond payments. Cleco Power also has the obligation to absorb losses up to its equity investments and rights to receive returns from each securitization entity. Therefore, management has determined that Cleco Power is the primary beneficiary of each securitization entity, and as a result, Cleco Securitization I and Cleco Securitization II are included in the consolidated financial statements of Cleco Power. No gain or loss was recognized upon initial consolidation of the securitization entities.
Cleco Securitization I
The following table summarizes the impact of Cleco Securitization I on Cleco’s and Cleco Power’s Condensed Consolidated Balance Sheets:

(THOUSANDS)AT JUNE 30, 2025AT DEC. 31, 2024
Restricted cash - current$14,220 $15,918 
Accounts receivable - affiliate3,113 2,996 
Intangible asset - securitization378,488 384,908 
Total assets$395,821 $403,822 
Long-term debt due within one year$15,390 $15,087 
Accounts payable - affiliate61 113 
Interest accrued5,888 5,997 
Long-term debt, net372,324 380,468 
Total liabilities
393,663 401,665 
Member’s equity2,158 2,157 
Total liabilities and member’s equity$395,821 $403,822 

The following table summarizes the impact of Cleco Securitization I on Cleco’s and Cleco Power’s Condensed Consolidated Statements of Income:

 
FOR THE THREE MONTHS ENDED JUNE 30,
FOR THE SIX MONTHS
 ENDED JUNE 30,
(THOUSANDS)2025202420252024
Operating revenue$7,662 $7,766 $15,599 $15,802 
Operating expenses(3,167)(3,139)(6,644)(6,606)
Interest income92 116 275 343 
Interest charges, net(4,562)(4,718)(9,181)(9,490)
Net income
$25 $25 $49 $49 

Cleco Securitization II
The following table summarizes the impact of Cleco Securitization II on Cleco’s and Cleco Power’s Condensed Consolidated Balance Sheets:

(THOUSANDS)AT JUNE 30, 2025
Restricted cash - current$7,676 
Accounts receivable - affiliate3,028 
Intangible asset - securitization296,073 
Total assets$306,777 
Long-term debt due within one year$6,733 
Interest accrued4,735 
Long-term debt, net292,985 
Total liabilities
304,453 
Member’s equity2,324 
Total liabilities and member’s equity$306,777 

The following table summarizes the impact of Cleco Securitization II on Cleco’s and Cleco Power’s Condensed Consolidated Statements of Income:

(THOUSANDS)FOR THE THREE MONTHS ENDED JUNE 30, 2025FOR THE SIX MONTHS ENDED JUNE 30, 2025
Operating revenue$8,234 $8,234 
Operating expenses(3,328)(3,346)
Interest income11 11 
Interest charges, net(4,016)(4,863)
Net income
$901 $36 

Oxbow
Cleco and Cleco Power apply the equity method of accounting to report the investment in Oxbow in the consolidated financial statements. Under the equity method, the assets and liabilities of this entity are reported as Equity investment in investee on Cleco’s and Cleco Power’s Condensed Consolidated Balance Sheets. The revenue and expenses (excluding income taxes) of this entity are netted and reported as equity income or loss from investees on Cleco’s and Cleco Power’s Condensed Consolidated Statements of Income.
Oxbow is owned 50% by Cleco Power and 50% by SWEPCO. Cleco Power is not the primary beneficiary because it shares the power to control Oxbow’s significant activities with SWEPCO. Cleco Power’s current assessment of its maximum exposure to loss related to Oxbow at June 30, 2025, consisted of its equity investment of approximately $1.9 million.
The following table presents the components of Cleco Power’s equity investment in Oxbow:

INCEPTION TO DATE (THOUSANDS)AT JUNE 30, 2025AT DEC. 31, 2024
Purchase price$12,873 $12,873 
Cash contributions6,399 6,399 
Distributions(18,033)(18,033)
Equity income from investee
677 677 
Total equity investment in investee$1,916 $1,916 

The following table compares the carrying amount of Oxbow’s assets and liabilities with Cleco Power’s maximum exposure to loss related to its investment in Oxbow:

(THOUSANDS)AT JUNE 30, 2025AT DEC. 31, 2024
Oxbow’s net assets/liabilities$3,832 $3,832 
Cleco Power’s 50% equity
$1,916 $1,916 
Cleco Power’s maximum exposure to loss$1,916 $1,916 

The following table contains summarized financial information for Oxbow:

 FOR THE THREE MONTHS ENDED JUNE 30,
FOR THE SIX MONTHS
ENDED JUNE 30, 2025
(THOUSANDS)2025202420252024
Operating revenue$70 $67 $173 $251 
Operating expenses(70)(67)(173)(154)
Gain on sale of property
— — — 1,356 
Interest income
— — — (97)
Income before taxes$— $— $— $1,356 

Oxbow has no third-party agreements, guarantees, or other third-party commitments that contain obligations affecting Cleco Power’s investment in Oxbow.