XML 45 R30.htm IDEA: XBRL DOCUMENT v3.25.3
Variable Interest Entities
 9 Months Ended
Sep. 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 SEPT. 30, 2025AT DEC. 31, 2024
Restricted cash - current$7,210 $15,918 
Accounts receivable - affiliate3,493 2,996 
Intangible asset - securitization373,822 384,908 
Total assets$384,525 $403,822 
Long-term debt due within one year$15,699 $15,087 
Accounts payable3 — 
Accounts payable - affiliate35 113 
Interest accrued1,448 5,997 
Long-term debt, net365,207 380,468 
Total liabilities
382,392 401,665 
Member’s equity2,133 2,157 
Total liabilities and member’s equity$384,525 $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 SEPT. 30,
FOR THE NINE MONTHS
 ENDED SEPT. 30,
(THOUSANDS)2025202420252024
Operating revenue$8,843 $8,776 $24,442 $24,578 
Operating expenses(4,448)(4,271)(11,092)(10,876)
Interest income167 214 442 557 
Interest charges, net(4,537)(4,694)(13,718)(14,185)
Net income
$25 $25 $74 $74 

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 SEPT. 30, 2025
Restricted cash - current$12,538 
Accounts receivable - affiliate2,939 
Restricted cash and cash equivalents
2,720 
Intangible asset - securitization292,800 
Total assets$310,997 
Long-term debt due within one year$6,733 
Accounts payable - affiliate150 
Interest accrued8,646 
Long-term debt, net293,113 
Total liabilities
308,642 
Member’s equity2,355 
Total liabilities and member’s equity$310,997 

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 SEPT. 30, 2025FOR THE NINE MONTHS ENDED SEPT. 30, 2025
Operating revenue$7,316 $15,550 
Operating expenses(3,343)(6,689)
Interest income95 106 
Interest charges, net(4,037)(8,900)
Net income
$31 $67 

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 September 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 SEPT. 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 SEPT. 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 SEPT. 30,FOR THE NINE MONTHS ENDED SEPT. 30, 2025
(THOUSANDS)2025202420252024
Operating revenue$57 $55 $230 $306 
Operating expenses(57)(55)(230)(209)
Gain on sale of property
— — — 1,356 
Interest income
— — — (97)
Income before taxes$— $— $— $1,356 

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