Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2025

The following table summarizes the balance of computer software costs subject to amortization included on Cleco’s and Cleco Power’s Consolidated Balance Sheets:


Cleco
			AT DEC. 31,
(THOUSANDS)	2025		2024
Internal-use software costs	$	267,495	$	250,359
Accumulated amortization	(97,193)		(78,944)
Net internal-use software costs	$	170,302	$	171,415

Schedule of Amortization of Computer Software

Amortization of internal-use software costs charged to Depreciation and amortization expense in Cleco’s and Cleco Power’s Consolidated Statements of Income for the years ending December 31, 2025, 2024, and 2023 is shown in the following tables:


Cleco
	FOR THE YEAR ENDED DEC. 31,
(THOUSANDS)	2025		2024		2023
Amortization	$	16,588	$	19,981	$	11,092

The following table presents the amortization expense recognized for other intangible assets in Cleco’s Consolidated Statements of Income:


Cleco
	FOR THE YEAR ENDED DEC. 31,
(THOUSANDS)	2025		2024		2023
Amortization expense


Power supply agreements	$	744	$	2,881	$	9,454

Schedule of Property, Plant, and Equipment

Depreciation on property, plant, and equipment is calculated primarily on a straight-line basis over the estimated useful lives of the assets. The following table presents the estimated useful lives of depreciable assets for Cleco and Cleco Power:


CATEGORY	YEARS
Utility Plants
Generation	5	–	55
Distribution	5	–	50
Transmission	5	–	55
Other utility plant	5	–	45
Other property, plant, and equipment	5	–	45

At December 31, 2025, and 2024, Cleco’s and Cleco Power’s property, plant, and equipment consisted of the following:


Cleco
	AT DEC. 31,
(THOUSANDS)	2025		2024
Utility plants
Generation	$	1,953,616	$	1,914,812
Distribution	1,873,227		1,693,668
Transmission	973,122		878,833
Other utility plant	454,858		490,975
Other property, plant, and equipment	14,727		13,286
Total property, plant, and equipment	5,269,550		4,991,574
Accumulated depreciation	(1,212,093)		(1,050,376)
Net property, plant, and equipment	$	4,057,457	$	3,941,198

The plant acquisition adjustment and accumulated amortization are reported in Property, plant, and equipment and Accumulated depreciation, respectively, on Cleco’s and Cleco Power’s Consolidated Balance Sheets at December 31, 2025, and 2024, and are shown in the following tables:


Cleco
	AT DEC. 31,
(THOUSANDS)	2025		2024
Acadia Unit 1
Plant acquisition adjustment	$	76,116	$	76,116
Accumulated amortization	(30,932)		(27,749)
Net plant acquisition adjustment	$	45,184	$	48,367

Schedule of Revisions Previously Issued Financial Statements

A summary of the revisions to the comparative periods presented in this Annual Report on Form 10-K is shown below.


	CLECO						CLECO POWER
	FOR THE YEAR ENDED DEC. 31, 2024						FOR THE YEAR ENDED DEC. 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(1)	$	(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(2)	$	(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
Amounts presented as revised differ from those in Part II, Item 8, “Consolidated Financial Statements — Cleco — Consolidated Statements of Cash Flows” and “— Cleco Power — Consolidated Statements of Cash Flows” due to the following: (1) For Cleco, includes $26.3 million that was reclassified to Incentive compensation payable. For Cleco Power, includes $7.9 million that was reclassified to Incentive compensation payable. (2) For Cleco, includes $8.2 million that was reclassified to Incentive compensation payable. For Cleco Power, includes $1.5 million that was reclassified to Incentive compensation payable.


	CLECO						CLECO POWER
	FOR THE YEAR ENDED DEC. 31, 2023						FOR THE YEAR ENDED DEC. 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(1)	$	(37,827)	$	(22,513)	$	(60,340)	$	(19,185)	$	(12,620)	$	(31,805)
Taxes accrued	$	225	$	293	$	518	$	6,567	$	40	$	6,607
Other operating(2)	$	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
Amounts presented as revised differ from those in Part II, Item 8, “Consolidated Financial Statements — Cleco — Consolidated Statements of Cash Flows” and “— Cleco Power — Consolidated Statements of Cash Flows” due to the following: (1) 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. (2) For Cleco, includes $5.1 million that was reclassified to Incentive compensation payable. For Cleco Power, includes $1.1 million that was reclassified to Incentive compensation payable.

Schedule of Changes in Allowance for Credit Losses, Accounts Receivable

The tables below present the changes in the allowance for credit losses by receivable for Cleco and Cleco Power:


Cleco
(THOUSANDS)	ACCOUNTS RECEIVABLE		OTHER		TOTAL
Balances, Dec. 31, 2023	$	3,012	$	1,638	$	4,650

Current period provision	2,048		—		2,048
Charge-offs	(4,815)		—		(4,815)
Recovery	1,092		—		1,092
Balances, Dec. 31, 2024	1,337		1,638		2,975

Current period provision	2,278		—		2,278
Charge-offs	(3,256)		—		(3,256)
Recovery	916		—		916
Balances, Dec. 31, 2025	$	1,275	$	1,638	$	2,913

Schedule of Restricted Cash and Cash Equivalents

Cleco’s and Cleco Power’s restricted cash and cash equivalents consisted of the following:


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

Cleco Securitization I and Cleco Securitization II operating expenses and debt service	$	23,135	$	15,918
Cleco Power Energy transition costs	10,730		—
Total current	33,865		15,918
Non-current
Cleco Power Energy transition costs	29,492		1
Diversified Lands’ mitigation escrow	25		24
Cleco Power’s future storm restoration costs	108,852		116,468


Total non-current	138,369		116,493
Total restricted cash and cash equivalents	$	172,234	$	132,411

Schedule of Composite AFUDC Rates and Capitalized Interest Rates

The following tables show the composite AFUDC rates, including borrowed and other funds for the years ended December 31, 2025, 2024, and 2023:


							FOR THE YEAR ENDED DEC. 31,
	2025				2024				2023
	PRETAX BASIS		NET OF TAX		PRETAX BASIS		NET OF TAX		PRETAX BASIS		NET OF TAX
AFUDC composite rate	7.33	%	6.46	%	8.65	%	7.62	%	8.11	%	6.50	%

CLECO POWER

Accounting Policies [Line Items]

Schedule of Computer Software Costs


Cleco Power
			AT DEC. 31,
(THOUSANDS)	2025		2024
Internal-use software costs	$	306,463	$	289,319
Accumulated amortization	(137,194)		(119,287)
Net internal-use software costs	$	169,269	$	170,032