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Variable Interest Entities
 12 Months Ended
Dec. 31, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Variable Interest Entities
Note 15 — 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 Consolidated Balance Sheets:

AT DEC. 31,
(THOUSANDS)20252024
Restricted cash - current $15,791 $15,918 
Accounts receivable - affiliate2,996 2,996 
Intangible asset - securitization370,329 384,908 
Total assets$389,116 $403,822 
Long-term debt due within one year$15,699 $15,087 
Accounts payable - affiliate
115 113 
Interest accrued5,795 5,997 
Long-term debt, net365,349 380,468 
Total liabilities
386,958 401,665 
Member’s equity2,158 2,157 
Total liabilities and member’s equity$389,116 $403,822 
The following table summarizes the impact of Cleco Securitization I on Cleco’s and Cleco Power’s Consolidated Statements of Income:

FOR THE YEAR ENDED DEC. 31,
(THOUSANDS)20252024
2023
Operating revenue$32,438 $32,447 $33,913 
Operating expenses(14,663)(14,183)(14,884)
Interest income530 667 537 
Interest charges, net(18,206)(18,832)(19,467)
Income before taxes$99 $99 $99 

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

(THOUSANDS)
AT DEC. 31, 2025
Restricted cash$7,345 
Accounts receivable - affiliate2,131 
Intangible asset - securitization290,901 
Total assets$300,377 
Long-term debt due within one year$9,513 
Accounts payable
12 
Accounts payable - affiliate32 
Interest accrued1,291 
Long-term debt, net287,232 
Total liabilities
298,080 
Member’s equity2,297 
Total liabilities and member’s equity$300,377 

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

(THOUSANDS)
FOR THE YEAR ENDED
 DEC. 31, 2025
Operating revenue$21,414 
Operating expenses(8,674)
Interest income268 
Interest charges, net(12,911)
Income before taxes
$97 

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 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 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 December 31, 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:

AT DEC. 31,
INCEPTION TO DATE (THOUSANDS)20252024
Purchase price$12,873 $12,873 
Cash contributions6,399 6,399 
Distributions(18,098)(18,033)
Equity income from investee
742 677 
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:

AT DEC. 31,
(THOUSANDS)20252024
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 tables contain summarized financial information for Oxbow:

AT DEC. 31,
(THOUSANDS)20252024
Current assets$4,368 $5,055 
Property, plant, and equipment, net3,486 3,486 
Total assets$7,854 $8,541 
Current liabilities$385 $529 
Other liabilities3,636 4,180 
Partners’ capital3,833 3,832 
Total liabilities and partners’ capital$7,854 $8,541 

 FOR THE YEAR ENDED DEC. 31,
(THOUSANDS)202520242023
Operating revenue$315 $363 $327 
Operating expenses(315)(266)(424)
Gain on sale of property
— 1,356 — 
Interest (expense) income— (97)97 
Income before taxes$— $1,356 $— 
Oxbow has no third-party agreements, guarantees, or other third-party commitments that contain obligations affecting Cleco Power’s investment in Oxbow.