Louisiana
(State or other jurisdiction of incorporation or organization)
|
72-1445282
(I.R.S. Employer Identification No.)
|
2030 Donahue Ferry Road, Pineville, Louisiana
(Address of principal executive offices)
|
71360-5226
(Zip Code)
|
Registrant’s telephone number, including area code: (318) 484-7400
|
|
Louisiana
(State or other jurisdiction of incorporation or organization)
|
72-0244480
(I.R.S. Employer Identification No.)
|
2030 Donahue Ferry Road, Pineville, Louisiana
(Address of principal executive offices)
|
71360-5226
(Zip Code)
|
Registrant’s telephone number, including area code: (318) 484-7400
|
|
Indicate by check mark whether the Registrants: (1) have filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrants were required to file such reports) and (2) have been subject to such filing requirements for the past 90 days.
Yes
x
No
¨
|
|
Indicate by check mark whether the Registrants have submitted electronically and posted on their corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (
§
232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrants were required to submit and post such files). Yes
¨
No
¨
|
|
Indicate by check mark whether Cleco Corporation is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):
Large accelerated filer
x
Accelerated filer
¨
Non-accelerated filer
¨
(Do not check if a smaller reporting company) Smaller reporting company
¨
|
|
Indicate by check mark whether Cleco Power LLC is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):
Large accelerated filer
¨
Accelerated filer
¨
Non-accelerated filer
x
(Do not check if a smaller reporting company) Smaller reporting company
¨
|
|
Indicate by check mark whether the Registrants are shell companies (as defined in Rule 12b-2 of the Exchange Act) Yes
¨
No
x
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Registrant
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Description of Class
|
Shares Outstanding at April 30, 2010
|
|||
Cleco Corporation
|
Common Stock, $1.00 Par Value
|
60,686,394 |
ABBREVIATION OR ACRONYM
|
DEFINITION
|
401(k) Plan
|
Cleco Power 401(k) Savings and Investment Plan
|
Acadia
|
Acadia Power Partners, LLC and its combined-cycle, natural gas-fired power plant near Eunice, Louisiana, which is 100% owned by Cajun and consists of one 580-MW unit. Prior to February 23, 2010, Acadia was 50% owned by APH and 50% by Cajun and consisted of two 580-MW units.
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Acadiana Load Pocket
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An area in south central Louisiana that has experienced transmission constraints caused by local load and lack of generation. Transmission within the Acadiana Load Pocket is owned by several entities, including Cleco Power.
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AFUDC
|
Allowance for Funds Used During Construction
|
Amended EPC Contract
|
Amended and Restated EPC Contract between Cleco Power and Shaw, executed on May 12, 2006, for engineering, procurement, and construction of Rodemacher Unit 3, as amended by Amendment No. 1 thereto effective March 9, 2007, Amendment No. 2 thereto dated as of July 2, 2008, Amendment No. 3 thereto dated as of July 22, 2009, and Amendment No. 4 thereto dated October 19, 2009.
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APH
|
Acadia Power Holdings LLC, a wholly owned subsidiary of Midstream
|
Attala
|
Attala Transmission LLC, a wholly owned subsidiary of Cleco Corporation.
|
Cajun
|
Cajun Gas Energy L.L.C., 50% owned by APH and 50% owned by third parties. Prior to February 23, 2010, Cajun was 100% owned by third parties.
|
CES
|
Calpine Energy Services, L.P.
|
CLE Intrastate
|
CLE Intrastate Pipeline Company LLC, a wholly owned subsidiary of Midstream
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Cleco Innovations LLC
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A wholly owned subsidiary of Cleco Corporation
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Cleco Katrina/Rita
|
Cleco Katrina/Rita Hurricane Recovery Funding LLC, a wholly owned subsidiary of Cleco Power
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DHLC
|
Dolet Hills Lignite Company, LLC, a wholly owned subsidiary of SWEPCO
|
Diversified Lands
|
Diversified Lands LLC, a wholly owned subsidiary of Cleco Innovations LLC
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DOE
|
United States Department of Energy
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Entergy
|
Entergy Corporation
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Entergy Gulf States
|
Entergy Gulf States Louisiana, L.L.C., formerly Entergy Gulf States, Inc.
|
Entergy Louisiana
|
Entergy Louisiana, LLC
|
Entergy Mississippi
|
Entergy Mississippi, Inc.
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Entergy Services
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Entergy Services, Inc., as agent for Entergy Louisiana and Entergy Gulf States
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EPA
|
United States Environmental Protection Agency
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EPC
|
Engineering, Procurement, and Construction
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ERO
|
Electric Reliability Organization
|
ESPP
|
Cleco Corporation Employee Stock Purchase Plan
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Evangeline
|
Cleco Evangeline LLC, a wholly owned subsidiary of Midstream, and its combined-cycle, natural gas-fired power plant located in Evangeline Parish, Louisiana
|
Evangeline 2010 Tolling Agreement
|
Capacity Sale and Tolling Agreement between Evangeline and JPMVEC, which was entered into in February 2010.
|
Evangeline Restructuring Agreement
|
Purchase, Sale and Restructuring Agreement entered into on February 22, 2010, by Evangeline and JPMVEC.
|
Evangeline Tolling Agreement
|
Capacity Sale and Tolling Agreement between Evangeline and BE Louisiana LLC (as successor to Williams Power Company, Inc.) which was set to expire in 2020 and was terminated in February 2010. In September 2008, BE Louisiana LLC was merged into JPMVEC.
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FASB
|
Financial Accounting Standards Board
|
FERC
|
Federal Energy Regulatory Commission
|
GAAP
|
Generally Accepted Accounting Principles in the United States
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GO Zone
|
Gulf Opportunity Zone Act of 2005 (Public Law 109-135)
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ICT
|
Independent Coordinator of Transmission
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Interconnection Agreement
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One of two Interconnection Agreement and Real Estate Agreements, one between Attala and Entergy Mississippi, and the other between Perryville and Entergy Louisiana
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IRP
|
Integrated Resource Planning
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IRS
|
Internal Revenue Service
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JPMVEC
|
J.P. Morgan Ventures Energy Corporation. In September 2008, BE Louisiana LLC was merged into JPMVEC.
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kWh
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Kilowatt-hour(s) as applicable
|
LDEQ
|
Louisiana Department of Environmental Quality
|
LIBOR
|
London Inter-Bank Offer Rate
|
LPSC
|
Louisiana Public Service Commission
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LTICP
|
Cleco Corporation Long-Term Incentive Compensation Plan
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Midstream
|
Cleco Midstream Resources LLC, a wholly owned subsidiary of Cleco Corporation
|
MMBtu
|
Million British thermal units
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Moody’s
|
Moody’s Investors Service
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MW
|
Megawatt(s) as applicable
|
NERC
|
North American Electric Reliability Corporation
|
OCI
|
Other Comprehensive Income
|
Oxbow
|
Oxbow Lignite Company, LLC, 50% owned by Cleco Power and 50% owned by SWEPCO
|
ABBREVIATION OR ACRONYM
|
DEFINITION
|
PCAOB
|
Public Company Accounting Oversight Board
|
PCB
|
Polychlorinated biphenyl
|
Perryville
|
Perryville Energy Partners, L.L.C., a wholly owned subsidiary of Cleco Corporation.
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PPACA
|
Patient Protection and Affordable Care Act (HR 3590)
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Power Purchase Agreement
|
Power Purchase Agreement, dated as of January 28, 2004, between Perryville and Entergy Services
|
PRP
|
Potentially responsible party
|
Registrant(s)
|
Cleco Corporation and Cleco Power
|
RFP
|
Request for Proposal
|
Rodemacher Unit 3
|
A 600-MW solid-fuel generating unit at Cleco Power’s Rodemacher plant site in Boyce, Louisiana that commenced commercial operations on February 12, 2010.
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Sale Agreement
|
Purchase and Sale Agreement, dated as of January 28, 2004, between Perryville and Entergy Louisiana
|
SEC
|
Securities and Exchange Commission
|
SERP
|
Cleco Corporation Supplemental Executive Retirement Plan
|
Shaw
|
Shaw Contractors, Inc., a subsidiary of The Shaw Group Inc.
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SPP
|
Southwest Power Pool
|
Support Group
|
Cleco Support Group LLC, a wholly owned subsidiary of Cleco Corporation
|
SWEPCO
|
Southwestern Electric Power Company, a wholly owned subsidiary of American Electric Power Company, Inc.
|
Teche
|
Teche Electric Cooperative, Inc.
|
VaR
|
Value-at-risk
|
VIE
|
Variable Interest Entity
|
§
|
Factors affecting utility operations, such as unusual weather conditions or other natural phenomena; catastrophic weather-related damage (such as hurricanes and other storms); unscheduled generation outages; unanticipated maintenance or repairs; unanticipated changes to fuel costs; cost of and reliance on natural gas as a component of Cleco’s generation fuel mix and their impact on competition and franchises, fuel supply costs or availability constraints due to higher demand, shortages, transportation problems or other developments; decreased customer load; environmental incidents; environmental compliance costs; or power transmission system constraints;
|
§
|
Cleco Corporation’s holding company structure and its dependence on the earnings, dividends, or distributions from its subsidiaries to meet its debt obligations and pay dividends on its common stock;
|
§
|
Cleco Power’s ability to operate and maintain, within its projected costs, any self-build projects identified in future IRP and RFP processes and its participation in any government grants;
|
§
|
Dependence of Cleco Power for energy from sources other than its facilities and the uncertainty of future sources of such additional energy;
|
§
|
Nonperformance by and creditworthiness of counterparties under tolling, power purchase, and energy service agreements, or the restructuring of those agreements, including possible termination;
|
§
|
Regulatory factors such as changes in rate-setting policies, recovery of investments made under traditional regulation, recovery of storm restoration costs, the frequency and timing of rate increases or decreases, the results of periodic NERC audits and fuel audits, the formation of ICTs, and the compliance with the ERO reliability standards for bulk power systems by Cleco Power, Acadia, and Evangeline;
|
§
|
Financial or regulatory accounting principles or policies imposed by FASB, the SEC, the PCAOB, FERC, the LPSC or similar entities with regulatory or accounting oversight;
|
§
|
Economic conditions, including the ability of customers to continue paying for utility bills, related growth and/or down-sizing of businesses in Cleco’s service area, monetary fluctuations, changes in commodity prices, and inflation rates;
|
§
|
The current global economic downturn and U.S. recession;
|
§
|
Credit ratings of Cleco Corporation and Cleco Power;
|
§
|
Ability to remain in compliance with debt covenants;
|
§
|
Changing market conditions and a variety of other factors associated with physical energy, financial transactions, and energy service activities, including, but not limited to, price, basis, credit, liquidity, volatility, capacity, transmission, interest rates, and warranty risks;
|
§
|
The availability and use of alternative sources of energy and technologies;
|
§
|
Impact of the imposition of energy efficiency requirements or of increased conservation efforts of customers;
|
§
|
Reliability of Rodemacher Unit 3 during its first year of commercial operations;
|
§
|
Acts of terrorism;
|
§
|
Availability or cost of capital resulting from changes in Cleco’s business or financial condition, interest rates or market perceptions of the electric utility industry and energy-related industries;
|
§
|
Uncertain tax positions;
|
§
|
Employee work force factors, including work stoppages and changes in key executives;
|
§
|
Legal, environmental, and regulatory delays and other obstacles associated with mergers, acquisitions, reorganizations, investments in joint ventures, or other capital projects, including Rodemacher Unit 3, the joint project to upgrade the Acadiana Load Pocket transmission system, Entergy Louisiana’s acquisition of the remaining 50%, a 580-MW unit, at the Acadia Power Station, and the Teche Blackstart Project;
|
§
|
Costs and other effects of legal and administrative proceedings, settlements, investigations, claims, and other matters;
|
§
|
Changes in federal, state, or local laws, and changes in tax laws or rates, regulating policies or environmental laws and regulations;
|
§
|
Ability of Cleco Power to recover, from its retail customers, the costs of compliance with environmental laws and regulations; and
|
§
|
Ability of the Dolet Hills lignite reserve to provide sufficient fuel to the Dolet Hills Power Station until at least 2026.
|
FOR THE THREE MONTHS ENDED MARCH 31,
|
||||||||
(THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)
|
2010
|
2009
|
||||||
Operating revenue
|
||||||||
Electric operations
|
$ | 252,798 | $ | 202,865 | ||||
Tolling operations
|
7,464 | - | ||||||
Other operations
|
10,876 | 7,109 | ||||||
Affiliate revenue
|
1,149 | 2,962 | ||||||
Total operating revenue
|
272,287 | 212,936 | ||||||
Operating expenses
|
||||||||
Fuel used for electric generation
|
94,582 | 88,303 | ||||||
Power purchased for utility customers
|
48,219 | 45,718 | ||||||
Other operations
|
26,654 | 24,951 | ||||||
Maintenance
|
13,837 | 10,559 | ||||||
Depreciation
|
24,253 | 19,134 | ||||||
Taxes other than income taxes
|
8,802 | 7,033 | ||||||
Loss on sales of assets
|
39 | - | ||||||
Total operating expenses
|
216,386 | 195,698 | ||||||
Operating income
|
55,901 | 17,238 | ||||||
Interest income
|
162 | 411 | ||||||
Allowance for other funds used during construction
|
9,805 | 16,991 | ||||||
Equity income (loss) from investees
|
37,847 | (11,751 | ) | |||||
Gain on toll settlement
|
148,402 | - | ||||||
Other income
|
1,079 | 1,285 | ||||||
Other expense
|
(925 | ) | (1,095 | ) | ||||
Interest charges
|
||||||||
Interest charges, including amortization of debt expenses, premium, and discount, net of capitalized interest
|
26,007 | 21,316 | ||||||
Allowance for borrowed funds used during construction
|
(3,572 | ) | (6,213 | ) | ||||
Total interest charges
|
22,435 | 15,103 | ||||||
Income before income taxes
|
229,836 | 7,976 | ||||||
Federal and state income tax expense
|
79,866 | 1,326 | ||||||
Net income
|
149,970 | 6,650 | ||||||
Preferred dividends requirements, net of tax
|
12 | 12 | ||||||
Net income applicable to common stock
|
$ | 149,958 | $ | 6,638 | ||||
Average shares of common stock outstanding
|
||||||||
Basic
|
60,326,020 | 60,097,929 | ||||||
Diluted
|
60,581,060 | 60,366,170 | ||||||
Basic earnings per share
|
||||||||
Net income applicable to common stock
|
$ | 2.49 | $ | 0.11 | ||||
Diluted earnings per share
|
||||||||
Net income applicable to common stock
|
$ | 2.48 | $ | 0.11 | ||||
Cash dividends declared per share of common stock
|
$ | 0.225 | $ | 0.225 | ||||
The accompanying notes are an integral part of the condensed consolidated financial statements.
|
FOR THE THREE MONTHS ENDED MARCH 31,
|
||||||||
(THOUSANDS)
|
2010
|
2009
|
||||||
Net income
|
$ | 149,970 | $ | 6,650 | ||||
Other comprehensive (loss) income, net of tax:
|
||||||||
Amortization of post-retirement benefit net (loss) income (net of tax benefit of $6 in 2010 and $14 in 2009)
|
(10 | ) | 1 | |||||
Cash flow hedges:
|
||||||||
Net derivatives loss on interest rate swap arising during the period (net of tax benefit of $108 in 2010)
|
(173 | ) | - | |||||
Reclassification of interest expense on interest rate swap (net of tax expense of $78 in 2010)
|
124 | - | ||||||
Reclassification of interest expense on treasury rate lock (net of tax benefit of $16 in 2010)
|
(25 | ) | - | |||||
Other comprehensive (loss) income
|
(84 | ) | 1 | |||||
Comprehensive income, net of tax
|
$ | 149,886 | $ | 6,651 | ||||
The accompanying notes are an integral part of the condensed consolidated financial statements.
|
(THOUSANDS)
|
AT MARCH 31, 2010
|
AT DECEMBER 31, 2009
|
||||||
Assets
|
||||||||
Current assets
|
||||||||
Cash and cash equivalents
|
$ | 92,222 | $ | 145,193 | ||||
Restricted cash
|
22,462 | 29,941 | ||||||
Customer accounts receivable (less allowance for doubtful accounts of $754 in 2010 and $1,173 in 2009)
|
42,112 | 29,550 | ||||||
Accounts receivable – affiliate
|
580 | 12,129 | ||||||
Other accounts receivable
|
37,122 | 28,878 | ||||||
Taxes receivable
|
- | 15,449 | ||||||
Unbilled revenue
|
32,942 | 21,975 | ||||||
Fuel inventory, at average cost
|
71,460 | 80,038 | ||||||
Material and supplies inventory, at average cost
|
45,181 | 41,410 | ||||||
Risk management assets, net
|
2,463 | 2,854 | ||||||
Accumulated deferred federal and state income taxes, net
|
5,746 | 6,799 | ||||||
Accumulated deferred fuel
|
27,543 | 35,059 | ||||||
Cash surrender value of company-/trust-owned life insurance policies
|
31,488 | 30,269 | ||||||
Prepayments
|
2,897 | 3,571 | ||||||
Regulatory assets - other
|
13,312 | 9,914 | ||||||
Other current assets
|
2,038 | 896 | ||||||
Total current assets
|
429,568 | 493,925 | ||||||
Property, plant and equipment
|
||||||||
Property, plant and equipment
|
3,744,514 | 2,144,491 | ||||||
Accumulated depreciation
|
(1,111,782 | ) | (999,204 | ) | ||||
Net property, plant and equipment
|
2,632,732 | 1,145,287 | ||||||
Construction work in progress
|
109,319 | 1,101,743 | ||||||
Total property, plant and equipment, net
|
2,742,051 | 2,247,030 | ||||||
Equity investment in investees
|
83,030 | 251,617 | ||||||
Prepayments
|
4,910 | 5,096 | ||||||
Restricted cash, less current portion
|
25,720 | 26,510 | ||||||
Regulatory assets and liabilities – deferred taxes, net
|
203,869 | 191,844 | ||||||
Regulatory assets – other
|
263,295 | 273,880 | ||||||
Net investment in direct financing lease
|
13,956 | - | ||||||
Intangible asset
|
154,219 | 157,098 | ||||||
Other deferred charges
|
17,611 | 47,847 | ||||||
Total assets
|
$ | 3,938,229 | $ | 3,694,847 | ||||
The accompanying notes are an integral part of the condensed consolidated financial statements.
|
|
(Continued on next page)
|
(THOUSANDS)
|
AT MARCH 31, 2010
|
AT DECEMBER 31, 2009
|
||||||
Liabilities and shareholders’ equity
|
||||||||
Liabilities
|
||||||||
Current liabilities
|
||||||||
Short-term debt
|
$ | 150,000 | $ | - | ||||
Long-term debt due within one year
|
11,869 | 11,478 | ||||||
Accounts payable
|
61,183 | 111,358 | ||||||
Retainage
|
754 | 813 | ||||||
Accounts payable – affiliate
|
- | 2,370 | ||||||
Customer deposits
|
35,446 | 34,195 | ||||||
Taxes payable
|
39,037 | - | ||||||
Interest accrued
|
20,670 | 11,880 | ||||||
Risk management liability, net
|
15,663 | 13,767 | ||||||
Regulatory liabilities - other
|
84,393 | 33,592 | ||||||
Deferred compensation
|
7,521 | 7,091 | ||||||
Other current liabilities
|
13,279 | 15,260 | ||||||
Total current liabilities
|
439,815 | 241,804 | ||||||
Deferred credits
|
||||||||
Accumulated deferred federal and state income taxes, net
|
492,337 | 460,894 | ||||||
Accumulated deferred investment tax credits
|
9,632 | 9,954 | ||||||
Postretirement benefit obligations
|
143,533 | 146,270 | ||||||
Regulatory liabilities - other
|
77,621 | 149,638 | ||||||
Restricted storm reserve
|
25,648 | 25,434 | ||||||
Uncertain tax positions
|
111,888 | 115,643 | ||||||
Other deferred credits
|
129,883 | 108,839 | ||||||
Total deferred credits
|
990,542 | 1,016,672 | ||||||
Long-term debt, net
|
1,253,695 | 1,320,299 | ||||||
Total liabilities
|
2,684,052 | 2,578,775 | ||||||
Commitments and Contingencies (Note 10)
|
||||||||
Shareholders’ equity
|
||||||||
Preferred stock
|
||||||||
Not subject to mandatory redemption, $100 par value, authorized 1,491,900 shares, issued 10,288 shares at
March 31, 2010 and December 31, 2009
|
1,029 | 1,029 | ||||||
Common shareholders’ equity
|
||||||||
Common stock, $1 par value, authorized 100,000,000 shares, issued 60,429,016 and 60,277,462 shares and outstanding 60,412,170
and 60,259,368 shares at March 31, 2010 and December 31, 2009, respectively
|
60,429 | 60,277 | ||||||
Premium on common stock
|
400,893 | 399,148 | ||||||
Retained earnings
|
803,487 | 667,220 | ||||||
Treasury stock, at cost, 16,846 and 18,094 shares at March 31, 2010 and December 31, 2009, respectively
|
(286 | ) | (311 | ) | ||||
Accumulated other comprehensive loss
|
(11,375 | ) | (11,291 | ) | ||||
Total common shareholders’ equity
|
1,253,148 | 1,115,043 | ||||||
Total shareholders’ equity
|
1,254,177 | 1,116,072 | ||||||
Total liabilities and shareholders’ equity
|
$ | 3,938,229 | $ | 3,694,847 | ||||
The accompanying notes are an integral part of the condensed consolidated financial statements.
|
FOR THE THREE MONTHS ENDED MARCH 31,
|
||||||||
(THOUSANDS)
|
2010
|
2009
|
||||||
Operating activities
|
||||||||
Net income
|
$ | 149,970 | $ | 6,650 | ||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
|
||||||||
Depreciation and amortization
|
37,622 | 31,683 | ||||||
Gain on forgiveness of debt
|
(129,870 | ) | - | |||||
Provision for doubtful accounts
|
(335 | ) | 726 | |||||
(Gain) loss from equity investments
|
(37,847 | ) | 11,751 | |||||
Unearned compensation expense
|
930 | 1,655 | ||||||
Allowance for other funds used during construction
|
(9,805 | ) | (16,991 | ) | ||||
Amortization of investment tax credits
|
(321 | ) | (333 | ) | ||||
Net deferred income taxes
|
16,361 | (10,480 | ) | |||||
Deferred fuel costs
|
19,864 | 24,151 | ||||||
Loss on economic hedges
|
360 | 1,144 | ||||||
Cash surrender value of company-/trust-owned life insurance
|
(866 | ) | 484 | |||||
Changes in assets and liabilities:
|
||||||||
Accounts receivable
|
(17,889 | ) | 14,113 | |||||
Accounts and notes receivable, affiliate
|
9,109 | 2,316 | ||||||
Unbilled revenue
|
(10,967 | ) | 4,859 | |||||
Fuel, materials and supplies inventory
|
6,895 | (3,823 | ) | |||||
Prepayments
|
1,552 | 1,687 | ||||||
Accounts payable
|
(58,264 | ) | (50,319 | ) | ||||
Accounts and notes payable, affiliate
|
(8,370 | ) | (5,965 | ) | ||||
Customer deposits
|
2,888 | 1,833 | ||||||
Long-term receivable
|
27,976 | - | ||||||
Post retirement benefit obligations
|
(2,737 | ) | (1,909 | ) | ||||
Regulatory assets and liabilities, net
|
(14,374 | ) | 14,451 | |||||
Other deferred accounts
|
12,898 | (8,313 | ) | |||||
Retainage payable
|
(59 | ) | (12,725 | ) | ||||
Taxes accrued
|
53,835 | (5,974 | ) | |||||
Interest accrued
|
9,431 | 685 | ||||||
Risk management assets and liabilities, net
|
(1,814 | ) | (20,992 | ) | ||||
Other operating
|
(2,343 | ) | (2,906 | ) | ||||
Net cash provided by (used in) operating activities
|
53,830 | (22,542 | ) | |||||
Investing activities
|
||||||||
Additions to property, plant and equipment
|
(176,599 | ) | (66,468 | ) | ||||
Allowance for other funds used during construction
|
9,805 | 16,991 | ||||||
Cash from reconsolidation of VIEs
|
812 | - | ||||||
Equity investment in investees
|
(14,775 | ) | (10,794 | ) | ||||
Premiums paid on company-/trust-owned life insurance
|
(354 | ) | (405 | ) | ||||
Transfer of cash from restricted accounts
|
38,401 | 27,989 | ||||||
Other investing
|
63 | 130 | ||||||
Net cash used in investing activities
|
(142,647 | ) | (32,557 | ) |
|
(Continued on next page)
|
FOR THE THREE MONTHS ENDED MARCH 31,
|
||||||||
(THOUSANDS)
|
2010
|
2009
|
||||||
Financing activities
|
||||||||
Change in short-term debt, net
|
$ | 150,000 | $ | - | ||||
Retirement of long-term obligations
|
(101,075 | ) | (8,226 | ) | ||||
Repayment of capital leases
|
(390 | ) | (275 | ) | ||||
Issuance of long-term debt
|
- | 65,000 | ||||||
Deferred financing costs
|
(67 | ) | - | |||||
Dividends paid on preferred stock
|
(12 | ) | (12 | ) | ||||
Dividends paid on common stock
|
(13,595 | ) | (13,538 | ) | ||||
Other financing
|
985 | 623 | ||||||
Net cash provided by financing activities
|
35,846 | 43,572 | ||||||
Net decrease in cash and cash equivalents
|
(52,971 | ) | (11,527 | ) | ||||
Cash and cash equivalents at beginning of period
|
145,193 | 97,483 | ||||||
Cash and cash equivalents at end of period
|
$ | 92,222 | $ | 85,956 | ||||
Supplementary cash flow information
|
||||||||
Interest paid (net of amount capitalized)
|
$ | 12,394 | $ | 16,295 | ||||
Income taxes paid
|
$ | 1 | $ | 7,018 | ||||
Supplementary non-cash investing and financing activities
|
||||||||
Accrued additions to property, plant and equipment
|
$ | 5,194 | $ | 12,082 | ||||
Issuance of treasury stock – LTICP
|
$ | 25 | $ | 30 | ||||
Issuance of common stock – LTICP/ESPP
|
$ | 73 | $ | 71 | ||||
Incurrence of capital lease obligation – barges
|
$ | - | $ | 22,050 | ||||
Non-cash additions to property, plant and equipment
|
$ | 152,067 | $ | - | ||||
Non-cash return of investment
|
$ | 152,067 | $ | - | ||||
The accompanying notes are an integral part of the condensed consolidated financial statements.
|
FOR THE THREE MONTHS ENDED MARCH 31,
|
||||||||
(THOUSANDS)
|
2010
|
2009
|
||||||
Operating revenue
|
||||||||
Electric operations
|
$ | 252,798 | $ | 202,865 | ||||
Other operations
|
10,386 | 7,086 | ||||||
Affiliate revenue
|
343 | 348 | ||||||
Total operating revenue
|
263,527 | 210,299 | ||||||
Operating expenses
|
||||||||
Fuel used for electric generation
|
94,582 | 88,303 | ||||||
Power purchased for utility customers
|
48,219 | 45,718 | ||||||
Other operations
|
24,408 | 23,420 | ||||||
Maintenance
|
11,722 | 9,428 | ||||||
Depreciation
|
22,647 | 18,845 | ||||||
Taxes other than income taxes
|
8,040 | 7,709 | ||||||
Loss on sales of assets
|
40 | - | ||||||
Total operating expenses
|
209,658 | 193,423 | ||||||
Operating income
|
53,869 | 16,876 | ||||||
Interest income
|
158 | 403 | ||||||
Allowance for other funds used during construction
|
9,805 | 16,991 | ||||||
Other income
|
472 | 1,287 | ||||||
Other expense
|
(906 | ) | (1,603 | ) | ||||
Interest charges
|
||||||||
Interest charges, including amortization of debt expenses, premium, and discount
|
22,315 | 21,349 | ||||||
Allowance for borrowed funds used during construction
|
(3,572 | ) | (6,213 | ) | ||||
Total interest charges
|
18,743 | 15,136 | ||||||
Income before income taxes
|
44,655 | 18,818 | ||||||
Federal and state income taxes
|
12,495 | 3,800 | ||||||
Net income
|
$ | 32,160 | $ | 15,018 | ||||
The accompanying notes are an integral part of the condensed consolidated financial statements.
|
FOR THE THREE MONTHS ENDED MARCH 31,
|
||||||||
(THOUSANDS)
|
2010
|
2009
|
||||||
Net income
|
$ | 32,160 | $ | 15,018 | ||||
Other comprehensive loss, net of tax:
|
||||||||
Amortization of post-retirement benefit net loss (net of tax benefit of $57 in 2010 and $70 in 2009)
|
(93 | ) | (91 | ) | ||||
Cash flow hedges:
|
||||||||
Net derivatives loss on interest rate swap arising during the period (net of tax benefit of $108 in 2010)
|
(173 | ) | - | |||||
Reclassification of interest expense on interest rate swap (net of tax expense of $78 in 2010)
|
124 | - | ||||||
Reclassification of interest expense on treasury rate lock (net of tax benefit of $16 in 2010)
|
(25 | ) | - | |||||
Other comprehensive loss
|
(167 | ) | (91 | ) | ||||
Comprehensive income, net of tax
|
$ | 31,993 | $ | 14,927 | ||||
The accompanying notes are an integral part of the condensed consolidated financial statements.
|
(THOUSANDS)
|
AT MARCH 31, 2010
|
AT DECEMBER 31, 2009
|
||||||
Assets
|
||||||||
Utility plant and equipment
|
||||||||
Property, plant and equipment
|
$ | 3,487,371 | $ | 2,127,536 | ||||
Accumulated depreciation
|
(1,040,153 | ) | (987,055 | ) | ||||
Net property, plant and equipment
|
2,447,218 | 1,140,481 | ||||||
Construction work in progress
|
105,741 | 1,100,295 | ||||||
Total utility plant, net
|
2,552,959 | 2,240,776 | ||||||
Current assets
|
||||||||
Cash and cash equivalents
|
82,488 | 138,113 | ||||||
Restricted cash
|
22,462 | 29,941 | ||||||
Customer accounts receivable (less allowance for doubtful accounts of $754 in 2010 and $1,173 in 2009)
|
42,112 | 29,550 | ||||||
Other accounts receivable
|
35,114 | 27,460 | ||||||
Accounts receivable – affiliate
|
7,207 | 2,836 | ||||||
Unbilled revenue
|
32,942 | 21,975 | ||||||
Fuel inventory, at average cost
|
71,460 | 80,038 | ||||||
Material and supplies inventory, at average cost
|
43,055 | 41,410 | ||||||
Accumulated deferred federal and state income taxes, net
|
4,349 | 3,634 | ||||||
Risk management assets
|
2,463 | 2,854 | ||||||
Prepayments
|
2,014 | 3,107 | ||||||
Regulatory assets – other
|
13,312 | 9,914 | ||||||
Accumulated deferred fuel
|
27,543 | 35,059 | ||||||
Cash surrender value of company-owned life insurance policies
|
5,955 | 5,845 | ||||||
Other current assets
|
1,780 | 350 | ||||||
Total current assets
|
394,256 | 432,086 | ||||||
Prepayments
|
4,910 | 5,096 | ||||||
Restricted cash, less current portion
|
25,624 | 26,413 | ||||||
Regulatory assets and liabilities – deferred taxes, net
|
203,869 | 191,844 | ||||||
Regulatory assets – other
|
263,295 | 273,880 | ||||||
Intangible asset
|
154,219 | 157,098 | ||||||
Equity investment in investee
|
12,873 | 12,873 | ||||||
Other deferred charges
|
16,851 | 23,896 | ||||||
Total assets
|
$ | 3,628,856 | $ | 3,363,962 | ||||
Liabilities and member’s equity
|
||||||||
Member’s equity
|
$ | 1,242,574 | $ | 1,009,849 | ||||
Long-term debt, net
|
1,218,695 | 1,225,299 | ||||||
Total capitalization
|
2,461,269 | 2,235,148 | ||||||
Current liabilities
|
||||||||
Long-term debt due within one year
|
11,869 | 11,478 | ||||||
Accounts payable
|
56,563 | 103,359 | ||||||
Accounts payable – affiliate
|
6,963 | 25,940 | ||||||
Retainage
|
754 | 813 | ||||||
Customer deposits
|
35,446 | 34,195 | ||||||
Taxes accrued
|
19,196 | 3,438 | ||||||
Interest accrued
|
20,921 | 11,854 | ||||||
Risk management liability, net
|
15,663 | 13,767 | ||||||
Regulatory liabilities - other
|
84,393 | 33,592 | ||||||
Other current liabilities
|
10,865 | 10,906 | ||||||
Total current liabilities
|
262,633 | 249,342 | ||||||
Commitments and Contingencies (Note 10)
|
||||||||
Deferred credits
|
||||||||
Accumulated deferred federal and state income taxes, net
|
544,952 | 451,671 | ||||||
Accumulated deferred investment tax credits
|
9,632 | 9,954 | ||||||
Postretirement benefit obligations
|
111,297 | 114,700 | ||||||
Regulatory liabilities - other
|
77,621 | 149,638 | ||||||
Restricted storm reserve
|
25,648 | 25,434 | ||||||
Uncertain tax positions
|
72,521 | 75,487 | ||||||
Other deferred credits
|
63,283 | 52,588 | ||||||
Total deferred credits
|
904,954 | 879,472 | ||||||
Total liabilities and member’s equity
|
$ | 3,628,856 | $ | 3,363,962 | ||||
The accompanying notes are an integral part of the condensed consolidated financial statements.
|
FOR THE THREE MONTHS ENDED MARCH 31,
|
||||||||
(THOUSANDS)
|
2010
|
2009
|
||||||
Operating activities
|
||||||||
Net income
|
$ | 32,160 | $ | 15,018 | ||||
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
|
||||||||
Depreciation and amortization
|
25,989 | 21,840 | ||||||
Provision for doubtful accounts
|
(335 | ) | 726 | |||||
Unearned compensation expense
|
344 | 358 | ||||||
Allowance for other funds used during construction
|
(9,805 | ) | (16,991 | ) | ||||
Amortization of investment tax credits
|
(321 | ) | (333 | ) | ||||
Net deferred income taxes
|
(1,131 | ) | (12,595 | ) | ||||
Deferred fuel costs
|
19,864 | 24,151 | ||||||
Loss on economic hedges
|
360 | 1,144 | ||||||
Cash surrender value of company-owned life insurance
|
(110 | ) | (109 | ) | ||||
Changes in assets and liabilities:
|
||||||||
Accounts receivable
|
(20,597 | ) | 15,080 | |||||
Accounts and notes receivable, affiliate
|
(4,270 | ) | 447 | |||||
Unbilled revenue
|
(10,967 | ) | 4,859 | |||||
Fuel, materials and supplies inventory
|
6,932 | (3,823 | ) | |||||
Prepayments
|
1,279 | 1,461 | ||||||
Accounts payable
|
(51,628 | ) | (44,605 | ) | ||||
Accounts and notes payable, affiliate
|
(19,147 | ) | (2,349 | ) | ||||
Customer deposits
|
2,888 | 1,833 | ||||||
Post retirement benefit obligations
|
(3,403 | ) | (2,637 | ) | ||||
Regulatory assets and liabilities, net
|
(14,374 | ) | 14,451 | |||||
Other deferred accounts
|
5,813 | (8,574 | ) | |||||
Retainage payable
|
(59 | ) | (12,725 | ) | ||||
Taxes accrued
|
15,758 | 39,189 | ||||||
Interest accrued
|
9,067 | 1,055 | ||||||
Risk management assets and liabilities, net
|
(1,814 | ) | (20,992 | ) | ||||
Other operating
|
(1,585 | ) | (633 | ) | ||||
Net cash (used in) provided by operating activities
|
(19,092 | ) | 15,246 | |||||
Investing activities
|
||||||||
Additions to property, plant and equipment
|
(23,295 | ) | (66,288 | ) | ||||
Allowance for other funds used during construction
|
9,805 | 16,991 | ||||||
Proceeds from sale of property, plant and equipment
|
57 | 130 | ||||||
Transfer of cash from restricted accounts
|
8,269 | 27,989 | ||||||
Net cash used in investing activities
|
(5,164 | ) | (21,178 | ) | ||||
Financing activities
|
||||||||
Retirement of long-term obligations
|
(5,912 | ) | (8,226 | ) | ||||
Repayment of capital leases
|
(390 | ) | (275 | ) | ||||
Deferred financing costs
|
(67 | ) | - | |||||
Distribution to parent
|
(25,000 | ) | - | |||||
Net cash used in financing activities
|
(31,369 | ) | (8,501 | ) | ||||
Net decrease in cash and cash equivalents
|
(55,625 | ) | (14,433 | ) | ||||
Cash and cash equivalents at beginning of period
|
138,113 | 91,542 | ||||||
Cash and cash equivalents at end of period
|
$ | 82,488 | $ | 77,109 | ||||
Supplementary cash flow information
|
||||||||
Interest paid (net of amount capitalized)
|
$ | 9,792 | $ | 16,055 | ||||
Income taxes paid
|
$ | - | $ | 7,000 | ||||
Supplementary non-cash investing and financing activities
|
||||||||
Accrued additions to property, plant and equipment
|
$ | 5,194 | $ | 12,082 | ||||
Incurrence of capital lease obligation – barges
|
$ | - | $ | 22,050 | ||||
Non-cash additions to property, plant and equipment
|
$ | 304,134 | $ | - | ||||
Non-cash assumption of deferred tax liability
|
$ | 78,402 | $ | - | ||||
The accompanying notes are an integral part of the condensed consolidated financial statements.
|
Note 1
|
Summary of Significant Accounting Policies
|
Cleco Corporation and Cleco Power
|
Note 2
|
Recent Authoritative Guidance
|
Cleco Corporation and Cleco Power
|
Note 3
|
Regulatory Assets and Liabilities
|
Cleco Corporation and Cleco Power
|
Note 4
|
Fair Value Accounting
|
Cleco Corporation and Cleco Power
|
Note 5
|
Debt
|
Cleco Corporation and Cleco Power
|
Note 6
|
Pension Plan and Employee Benefits
|
Cleco Corporation and Cleco Power
|
Note 7
|
Income Taxes
|
Cleco Corporation and Cleco Power
|
Note 8
|
Disclosures about Segments
|
Cleco Corporation
|
Note 9
|
Variable Interest Entities
|
Cleco Corporation and Cleco Power
|
Note 10
|
Litigation, Other Commitments and Contingencies, and Disclosures about Guarantees
|
Cleco Corporation and Cleco Power
|
Note 11
|
LPSC Fuel Audit
|
Cleco Corporation and Cleco Power
|
Note 12
|
Affiliate Transactions
|
Cleco Corporation and Cleco Power
|
Note 13
|
Intangible Asset
|
Cleco Corporation and Cleco Power
|
Note 14
|
Evangeline Transactions
|
Cleco Corporation
|
Note 15
|
Acadia Transaction
|
Cleco Corporation and Cleco Power
|
(THOUSANDS)
|
AT MARCH 31, 2010
|
AT DECEMBER 31, 2009
|
||||||
Regulated utility plants
|
$ | 3,486,481 | $ | 2,126,646 | ||||
Other
|
258,033 | 17,845 | ||||||
Total property, plant and equipment
|
3,744,514 | 2,144,491 | ||||||
Accumulated depreciation
|
(1,111,782 | ) | (999,204 | ) | ||||
Net property, plant and equipment
|
$ | 2,632,732 | $ | 1,145,287 |
(THOUSANDS)
|
AT MARCH 31, 2010
|
AT DECEMBER 31, 2009
|
||||||
Acadia
|
||||||||
Plant acquisition adjustment
|
$ | 95,578 | $ | - | ||||
Less accumulated amortization
|
266 | - | ||||||
Net plant acquisition adjustment
|
$ | 95,312 | $ | - | ||||
Teche
|
||||||||
Plant acquisition adjustment
|
$ | 5,359 | $ | 5,359 | ||||
Less accumulated amortization
|
3,279 | 3,215 | ||||||
Net plant acquisition adjustment
|
$ | 2,080 | $ | 2,144 |
FOR THE THREE MONTHS ENDED MARCH 31,
|
||||||||
(THOUSANDS)
|
2010
|
2009
|
||||||
Realized loss
|
$ | (242 | ) | $ | (347 | ) | ||
Mark-to-market loss
|
(360 | ) | (1,144 | ) | ||||
Total loss
|
$ | (602 | ) | $ | (1,491 | ) |
(THOUSANDS)
|
AS REPORTED
|
AS ADJUSTED
|
||||||
Cleco Corporation
|
||||||||
Assets – regulatory assets and liabilities - deferred taxes, net
|
$ | 264,343 | $ | $191,844 | ||||
Noncurrent assets – regulatory assets - other
|
$ | 201,381 | $ | 273,880 |
(THOUSANDS)
|
AS REPORTED
|
AS ADJUSTED
|
||||||
Cleco Power
|
||||||||
Assets – regulatory assets and liabilities - deferred taxes, net
|
$ | 264,343 | $ | 191,844 | ||||
Noncurrent assets – regulatory assets - other
|
$ | 201,381 | $ | 273,880 |
FOR THE THREE MONTHS ENDED MARCH 31,
|
||||||||||||||||||||||||
2010
|
2009
|
|||||||||||||||||||||||
(THOUSANDS, EXCEPT SHARES AND PER SHARE AMOUNTS)
|
INCOME
|
SHARES
|
PER SHARE
AMOUNT
|
INCOME
|
SHARES
|
PER SHARE
AMOUNT
|
||||||||||||||||||
Income from continuing operations
|
$ | 149,970 | $ | 6,650 | ||||||||||||||||||||
Deduct: non-participating stock dividends (4.5% preferred stock)
|
12 | 12 | ||||||||||||||||||||||
Basic net income applicable to common stock
|
$ | 149,958 | 60,326,020 | $ | 2.49 | $ | 6,638 | 60,097,929 | $ | 0.11 | ||||||||||||||
Effect of dilutive securities
|
||||||||||||||||||||||||
Add: stock option grants
|
39,156 | 31,062 | ||||||||||||||||||||||
Add: restricted stock (LTICP)
|
215,884 | 237,179 | ||||||||||||||||||||||
Diluted net income applicable to common stock
|
$ | 149,958 | 60,581,060 | $ | 2.48 | $ | 6,638 | 60,366,170 | $ | 0.11 |
FOR THE THREE MONTHS ENDED MARCH 31, 2009
|
||||||||||||
STRIKE PRICE
|
AVERAGE
MARKET PRICE
|
SHARES
|
||||||||||
Stock option grants excluded
|
$ | 22.25 - $24.25 | $ | 21.97 | 149,034 |
CLECO CORPORATION
|
CLECO POWER
|
|||||||||||||||
FOR THE THREE MONTHS ENDED MARCH 31,
|
||||||||||||||||
(THOUSANDS)
|
2010
|
2009
|
2010
|
2009
|
||||||||||||
Equity classification
|
||||||||||||||||
Non-vested stock
|
$ | 661 | $ | 575 | $ | 170 | $ | 159 | ||||||||
Stock options
|
13 | 13 | - | - | ||||||||||||
Total
|
$ | 674 | $ | 588 | $ | 170 | $ | 159 | ||||||||
Liability classification
|
||||||||||||||||
Common stock equivalent units
|
$ | 149 | $ | 963 | $ | 174 | $ | 415 | ||||||||
Total pre-tax compensation expense
|
$ | 823 | $ | 1,551 | $ | 344 | $ | 574 | ||||||||
Tax benefit (excluding income tax gross-up)
|
$ | 317 | $ | 597 | $ | 132 | $ | 221 |
§
|
Results of operations before taxes as one line item on the consolidated statements of income entitled Equity (loss) income from investees,
|
§
|
Assets and liabilities on the consolidated balance sheets as one line item entitled Equity investment in investees, and
|
§
|
Cash flows in the consolidated statement of cash flows as gain or loss from equity investments, investment in equity investments, and return on or of equity investments.
|
AT MARCH 31,
|
AT DECEMBER 31,
|
|||||||
(THOUSANDS)
|
2010
|
2009
|
||||||
Regulatory assets and liabilities – deferred taxes, net
|
$ | 203,869 | $ | 191,844 | ||||
Deferred mining costs
|
$ | 23,578 | $ | 24,215 | ||||
Deferred interest costs
|
7,308 | 7,401 | ||||||
Deferred asset removal costs
|
726 | 712 | ||||||
Deferred postretirement plan costs
|
106,271 | 106,735 | ||||||
Deferred tree trimming costs
|
13,122 | 13,485 | ||||||
Deferred training costs
|
7,759 | 7,045 | ||||||
Deferred storm surcredits, net
|
8,446 | 7,747 | ||||||
Deferred construction carrying costs
|
23,856 | 40,174 | ||||||
Lignite mining agreement contingency
|
3,781 | 3,781 | ||||||
AFUDC equity gross-up
|
75,469 | 72,499 | ||||||
Deferred rate case costs
|
1,938 | - | ||||||
Deferred Acadia acquisition costs
|
3,025 | - | ||||||
Deferred IRP/RFP costs
|
1,328 | - | ||||||
Total regulatory assets – other
|
$ | 276,607 | $ | 283,794 | ||||
Deferred construction carrying costs
|
(162,014 | ) | (183,230 | ) | ||||
Deferred fuel and purchased power
|
27,543 | 35,059 | ||||||
Total regulatory assets and liabilities, net
|
$ | 346,005 | $ | 327,467 |
AT MARCH 31, 2010
|
AT DECEMBER 31, 2009
|
|||||||||||||||
(THOUSANDS)
|
CARRYING
VALUE
|
ESTIMATED
FAIR VALUE
|
CARRYING
VALUE
|
ESTIMATED
FAIR VALUE
|
||||||||||||
Financial instruments not marked-to-market
|
||||||||||||||||
Cash and cash equivalents
|
$ | 92,222 | $ | 92,222 | $ | 145,193 | $ | 145,193 | ||||||||
Restricted cash
|
$ | 48,182 | $ | 48,182 | $ | 56,451 | $ | 56,451 | ||||||||
Long-term debt, excluding debt issuance costs
|
$ | 1,253,628 | $ | 1,293,452 | $ | 1,319,540 | $ | 1,353,479 | ||||||||
Preferred stock not subject to mandatory redemption
|
$ | 1,029 | $ | 880 | $ | 1,029 | $ | 874 |
AT MARCH 31,2010
|
AT DECEMBER 31, 2009
|
|||||||||||||||||||||||
(THOUSANDS)
|
ORIGINAL
VALUE
|
OTHER
UNREALIZED
LOSSES
DURING
THE PERIOD
|
ESTIMATED
FAIR VALUE
|
ORIGINAL
VALUE
|
OTHER
UNREALIZED
LOSSES
DURING THE
PERIOD
|
ESTIMATED
FAIR VALUE
|
||||||||||||||||||
Financial instruments marked-to-market
|
||||||||||||||||||||||||
Energy market positions
|
||||||||||||||||||||||||
Assets
|
$ | 77,651 | $ | (24,155 | ) | $ | 53,496 | $ | 87,149 | $ | (15,671 | ) | $ | 71,197 | ||||||||||
Liabilities
|
$ | 111,942 | $ | (8,972 | ) | $ | 102,970 | $ | 131,692 | $ | (9,630 | ) | $ | 122,062 | ||||||||||
Interest rate swap liability
|
$ | - | $ | (969 | ) | $ | 969 | $ | - | $ | (890 | ) | $ | 890 |
AT MARCH 31, 2010
|
AT DECEMBER 31, 2009
|
|||||||||||||||
(THOUSANDS)
|
CARRYING
VALUE
|
ESTIMATED
FAIR VALUE
|
CARRYING
VALUE
|
ESTIMATED
FAIR VALUE
|
||||||||||||
Financial instruments not marked-to-market
|
||||||||||||||||
Cash and cash equivalents
|
$ | 82,488 | $ | 82,488 | $ | 138,113 | $ | 138,113 | ||||||||
Restricted cash
|
$ | 48,086 | $ | 48,086 | $ | 56,354 | $ | 56,354 | ||||||||
Long-term debt, excluding debt issuance costs
|
$ | 1,218,628 | $ | 1,258,452 | $ | 1,224,540 | $ | 1,258,479 |
AT MARCH 31, 2010
|
AT DECEMBER 31, 2009
|
|||||||||||||||||||||||
(THOUSANDS)
|
ORIGINAL
VALUE
|
OTHER
UNREALIZED
LOSSES
DURING
THE PERIOD
|
ESTIMATED
FAIR VALUE
|
ORIGINAL
VALUE
|
OTHER
UNREALIZED
LOSSES
DURING THE
PERIOD
|
ESTIMATED
FAIR VALUE
|
||||||||||||||||||
Financial instruments marked-to-market
|
||||||||||||||||||||||||
Energy market positions
|
||||||||||||||||||||||||
Assets
|
$ | 77,651 | $ | (24,155 | ) | $ | 53,496 | $ | 87,149 | $ | (15,671 | ) | $ | 71,197 | ||||||||||
Liabilities
|
$ | 111,942 | $ | (8,972 | ) | $ | 102,970 | $ | 131,692 | $ | (9,630 | ) | $ | 122,062 | ||||||||||
Interest rate swap liability
|
$ | - | $ | (969 | ) | $ | 969 | $ | - | $ | (890 | ) | $ | 890 |
§
|
Level 1 – unadjusted quoted prices in active, liquid markets for the identical asset or liability;
|
§
|
Level 2 – quoted prices for similar assets and liabilities in active markets or other inputs that are observable for the asset or liability, including inputs that can be corroborated by observable market data, observable interest rate yield curves and volatilities;
|
§
|
Level 3 – unobservable inputs based upon the entities’ own assumptions.
|
CLECO CONSOLIDATED FAIR VALUE MEASUREMENTS AT REPORTING DATE USING:
|
||||||||||||||||||||||||||||||||
(THOUSANDS)
|
AT MARCH 31, 2010
|
QUOTED PRICES IN
ACTIVE MARKETS
FOR IDENTICAL
ASSETS
(LEVEL 1)
|
SIGNIFICANT
OTHER
OBSERVABLE
INPUTS
(LEVEL 2)
|
SIGNIFICANT
UNOBSERVABLE
INPUTS
(LEVEL 3)
|
AT DECEMBER 31, 2009
|
QUOTED PRICES IN
ACTIVE MARKETS
FOR IDENTICAL
ASSETS
(LEVEL 1)
|
SIGNIFICANT
OTHER
OBSERVABLE
INPUTS
(LEVEL 2)
|
SIGNIFICANT
UNOBSERVABLE
INPUTS
(LEVEL 3)
|
||||||||||||||||||||||||
Asset Description
|
||||||||||||||||||||||||||||||||
Energy market derivatives
|
$ | 1,891 | $ | - | $ | 1,891 | $ | - | $ | 141 | $ | - | $ | 141 | $ | - | ||||||||||||||||
Institutional money market funds
|
135,586 | - | 135,586 | - | 198,155 | - | 198,155 | - | ||||||||||||||||||||||||
Total
|
$ | 137,477 | $ | - | $ | 137,477 | $ | - | $ | 198,296 | $ | - | $ | 198,296 | $ | - |
CLECO CONSOLIDATED FAIR VALUE MEASUREMENTS AT REPORTING DATE USING:
|
||||||||||||||||||||||||||||||||
(THOUSANDS)
|
AT MARCH 31, 2010
|
QUOTED PRICES IN
ACTIVE MARKETS
FOR IDENTICAL
ASSETS
(LEVEL 1)
|
SIGNIFICANT
OTHER
OBSERVABLE
INPUTS
(LEVEL 2)
|
SIGNIFICANT
UNOBSERVABLE
INPUTS
(LEVEL 3)
|
AT DECEMBER 31, 2009
|
QUOTED PRICES IN
ACTIVE MARKETS
FOR IDENTICAL
ASSETS
(LEVEL 1)
|
SIGNIFICANT
OTHER
OBSERVABLE
INPUTS
(LEVEL 2)
|
SIGNIFICANT
UNOBSERVABLE
INPUTS
(LEVEL 3)
|
||||||||||||||||||||||||
Liability Description
|
||||||||||||||||||||||||||||||||
Energy market derivatives
|
$ | 35,018 | $ | 10,863 | $ | 24,155 | $ | - | $ | 25,441 | $ | 8,106 | $ | 17,335 | $ | - | ||||||||||||||||
Interest rate swap
|
969 | - | 969 | - | 890 | - | 890 | - | ||||||||||||||||||||||||
Total
|
$ | 35,987 | $ | 10,863 | $ | 25,124 | $ | - | $ | 26,331 | $ | 8,106 | $ | 18,225 | $ | - |
CLECO POWER FAIR VALUE MEASUREMENTS AT REPORTING DATE USING:
|
||||||||||||||||||||||||||||||||
(THOUSANDS)
|
AT MARCH 31, 2010
|
QUOTED PRICES IN
ACTIVE MARKETS
FOR IDENTICAL
ASSETS
(LEVEL 1)
|
SIGNIFICANT
OTHER
OBSERVABLE
INPUTS
(LEVEL 2)
|
SIGNIFICANT
UNOBSERVABLE
INPUTS
(LEVEL 3)
|
AT DECEMBER 31, 2009
|
QUOTED PRICES IN
ACTIVE MARKETS
FOR IDENTICAL
ASSETS
(LEVEL 1)
|
SIGNIFICANT
OTHER
OBSERVABLE
INPUTS
(LEVEL 2)
|
SIGNIFICANT
UNOBSERVABLE
INPUTS
(LEVEL 3)
|
||||||||||||||||||||||||
Asset Description
|
||||||||||||||||||||||||||||||||
Energy market derivatives
|
$ | 1,891 | $ | - | $ | 1,891 | $ | - | $ | 141 | $ | - | $ | 141 | $ | - | ||||||||||||||||
Institutional money market funds
|
127,186 | - | 127,186 | - | 191,155 | - | 191,155 | - | ||||||||||||||||||||||||
Total
|
$ | 129,077 | $ | - | $ | 129,077 | $ | - | $ | 191,296 | $ | - | $ | 191,296 | $ | - |
CLECO POWER FAIR VALUE MEASUREMENTS AT REPORTING DATE USING:
|
||||||||||||||||||||||||||||||||
(THOUSANDS)
|
AT MARCH 31, 2010
|
QUOTED PRICES IN
ACTIVE MARKETS
FOR IDENTICAL
ASSETS
(LEVEL 1)
|
SIGNIFICANT
OTHER
OBSERVABLE
INPUTS
(LEVEL 2)
|
SIGNIFICANT
UNOBSERVABLE
INPUTS
(LEVEL 3)
|
AT DECEMBER 31, 2009
|
QUOTED PRICES IN
ACTIVE MARKETS
FOR IDENTICAL
ASSETS
(LEVEL 1)
|
SIGNIFICANT
OTHER
OBSERVABLE
INPUTS
(LEVEL 2)
|
SIGNIFICANT
UNOBSERVABLE
INPUTS
(LEVEL 3)
|
||||||||||||||||||||||||
Liability Description
|
||||||||||||||||||||||||||||||||
Energy market derivatives
|
$ | 35,018 | $ | 10,863 | $ | 24,155 | $ | - | $ | 25,441 | $ | 8,106 | $ | 17,335 | $ | - | ||||||||||||||||
Interest rate swap
|
969 | - | 969 | - | 890 | - | 890 | - | ||||||||||||||||||||||||
Total
|
$ | 35,987 | $ | 10,863 | $ | 25,124 | $ | - | $ | 26,331 | $ | 8,106 | $ | 18,225 | $ | - |
DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS
|
|||||||||
LIABILITY DERIVATIVES
|
|||||||||
(THOUSANDS)
FAIR VALUE
|
BALANCE SHEET LINE ITEM
|
AT MARCH 31, 2010
|
DECEMBER 31, 2009
|
||||||
Commodity contracts
|
|||||||||
Economic hedges:
|
|||||||||
Current
|
Risk management liability, net
|
$ | (765 | ) | $ | (405 | ) | ||
Fuel cost hedges:
|
|||||||||
Current
|
Risk management liability, net
|
(25,245 | ) | (22,502 | ) | ||||
Long-term
|
Other deferred credits
|
(7,117 | ) | (2,394 | ) | ||||
Total
|
$ | (33,127 | ) | $ | (25,301 | ) |
(THOUSANDS)
|
LOSS IN INCOME OF
DERIVATIVES LINE ITEM
|
AMOUNT OF LOSS
RECOGNIZED IN
INCOME ON
DERIVATIVES
THREE MONTHS ENDED
MARCH 31, 2010
|
AMOUNT OF LOSS
RECOGNIZED IN
INCOME ON
DERIVATIVES
THREE MONTHS ENDED
MARCH 31, 2009
|
||||||
Commodity contracts
|
|||||||||
Economic hedges
|
Other operations revenue
|
$ | 602 | (1) | $ | 1,491 | (1) | ||
Fuel cost hedges
(2)
|
Fuel used for electric generation
|
7,814 | 42,213 | ||||||
Total
|
$ | 8,416 | $ | 43,704 | |||||
(1)
For the three months ended March 31, 2010 and 2009, Cleco recognized $0.4 million and $1.2 million, respectively, of mark-to-market losses related to economic hedges.
|
|||||||||
(2)
In accordance with the authoritative guidance for regulated operations, an additional $32.4 million of unrealized losses and $5.3 million of deferred losses associated with fuel cost hedges are reported in Accumulated Deferred Fuel on the balance sheet as of March 31, 2010, compared to $72.7 million of unrealized losses and $6.8 million of deferred losses associated with fuel cost hedges as of March 31, 2009. As gains and losses are realized in future periods, they will be recorded as Fuel Used for Electric Generation on the Income Statement.
|
DERIVATIVES DESIGNATED AS HEDGING INSTRUMENTS
|
|||||||||
LIABILITY DERIVATIVES
|
|||||||||
(THOUSANDS)
FAIR VALUE
|
BALANCE SHEET LINE ITEM
|
AT MARCH 31, 2010
|
AT DECEMBER 31, 2009
|
||||||
Interest rate swap
|
|||||||||
Cash flow hedges:
|
|||||||||
Current
|
Other current liabilities
|
$ | (605 | ) | $ | (638 | ) | ||
Long-term
|
Other deferred credits
|
(364 | ) | (252 | ) | ||||
Total
|
$ | (969 | ) | $ | (890 | ) |
(THOUSANDS)
|
AMOUNT OF LOSS
RECOGNIZED IN OCI
THREE MONTHS ENDED
MARCH 31, 2010
|
LOCATION OF GAIN (LOSS)
RECLASSIFIED FROM
ACCUMULATED OCI
INTO INCOME
(EFFECTIVE PORTION)
|
AMOUNT OF (LOSS) GAIN
RECLASSED FROM
ACCUMULATED OCI
INTO INCOME
(EFFECTIVE PORTION)
THREE MONTHS ENDED
MARCH 31, 2010
|
||||||
Interest rate swap
|
$ | (281 | ) |
Interest charges
|
$ | (202 | ) | ||
Treasury rate lock
|
$ | - |
Interest charges
|
$ | 41 |
PENSION BENEFITS
|
OTHER BENEFITS
|
|||||||||||||||
FOR THE THREE MONTHS ENDED MARCH 31,
|
||||||||||||||||
(THOUSANDS)
|
2010
|
2009
|
2010
|
2009
|
||||||||||||
Components of periodic benefit costs
|
||||||||||||||||
Service cost
|
$ | 1,753 | $ | 1,730 | $ | 383 | $ | 353 | ||||||||
Interest cost
|
4,113 | 4,095 | 499 | 495 | ||||||||||||
Expected return on plan assets
|
(4,866 | ) | (5,074 | ) | - | - | ||||||||||
Transition obligation
|
- | - | 5 | 5 | ||||||||||||
Prior period service (credit) cost
|
(18 | ) | 481 | (505 | ) | (516 | ) | |||||||||
Net loss
|
483 | - | 250 | 232 | ||||||||||||
Net periodic benefit cost
|
$ | 1,465 | $ | 1,232 | $ | 632 | $ | 569 |
FOR THE THREE MONTHS ENDED MARCH 31,
|
||||||||
(THOUSANDS)
|
2010
|
2009
|
||||||
401(k) Plan expense
|
$ | 1,030 | $ | 1,139 |
FOR THE THREE MONTHS ENDED MARCH 31,
|
|||
2010
|
2009
|
||
Cleco Corporation
|
34.7%
|
16.6%
|
|
Cleco Power
|
28.0%
|
20.2%
|
CLECO
|
RECONCILING
|
|||||||||||||||||||
2010
(THOUSANDS)
|
POWER
|
MIDSTREAM
|
ITEMS
|
ELIMINATIONS
|
CONSOLIDATED
|
|||||||||||||||
Revenue
|
||||||||||||||||||||
Electric operations
|
$ | 252,798 | $ | - | $ | - | $ | - | $ | 252,798 | ||||||||||
Tolling operations
|
- | 7,464 | - | - | 7,464 | |||||||||||||||
Other operations
|
10,386 | 1 | 490 | (1 | ) | 10,876 | ||||||||||||||
Affiliate revenue
|
- | 905 | 244 | - | 1,149 | |||||||||||||||
Intercompany revenue
|
343 | - | 11,239 | (11,582 | ) | - | ||||||||||||||
Operating revenue
|
$ | 263,527 | $ | 8,370 | $ | 11,973 | $ | (11,583 | ) | $ | 272,287 | |||||||||
Depreciation expense
|
$ | 22,647 | $ | 1,443 | $ | 164 | $ | (1 | ) | $ | 24,253 | |||||||||
Interest charges
|
$ | 18,743 | $ | 3,432 | $ | 846 | $ | (586 | ) | $ | 22,435 | |||||||||
Interest income
|
$ | 158 | $ | - | $ | 590 | $ | (586 | ) | $ | 162 | |||||||||
Equity income from investees
|
$ | - | $ | 37,846 | $ | 1 | $ | - | $ | 37,847 | ||||||||||
Gain on toll settlement
|
$ | - | $ | 148,402 | $ | - | $ | - | $ | 148,402 | ||||||||||
Federal and state income tax expense (benefit)
|
$ | 12,495 | $ | 71,388 | $ | (4,017 | ) | $ | - | $ | 79,866 | |||||||||
Segment profit
(1)
|
$ | 32,160 | $ | 114,010 | $ | 3,800 | $ | - | $ | 149,970 | ||||||||||
Additions to long-lived assets
|
$ | 329,555 | $ | 547 | $ | 691 | $ | - | $ | 330,793 | ||||||||||
Equity investment in investees
|
$ | 12,873 | $ | 70,146 | $ | 11 | $ | - | $ | 83,030 | ||||||||||
Total segment assets
|
$ | 3,628,856 | $ | 286,662 | $ | 435,458 | $ | (412,747 | ) | $ | 3,938,229 | |||||||||
(1)
Reconciliation of segment profit to consolidated profit:
|
Segment profit
|
$ | 149,970 | |||||||||||||||||
Unallocated items:
|
||||||||||||||||||||
Preferred dividends
requirements, net of tax
|
12 | |||||||||||||||||||
Net income applicable to common stock
|
$ | 149,958 |
CLECO
|
RECONCILING
|
|||||||||||||||||||
2009
(THOUSANDS)
|
POWER
|
MIDSTREAM
|
ITEMS
|
ELIMINATIONS
|
CONSOLIDATED
|
|||||||||||||||
Revenue
|
||||||||||||||||||||
Electric operations
|
$ | 202,865 | $ | - | $ | - | $ | - | $ | 202,865 | ||||||||||
Other operations
|
7,086 | - | 25 | (2 | ) | 7,109 | ||||||||||||||
Affiliate revenue
|
6 | 2,363 | 593 | - | 2,962 | |||||||||||||||
Intercompany revenue
|
342 | - | 10,101 | (10,443 | ) | - | ||||||||||||||
Operating revenue
|
$ | 210,299 | $ | 2,363 | $ | 10,719 | $ | (10,445 | ) | $ | 212,936 | |||||||||
Depreciation expense
|
$ | 18,845 | $ | 45 | $ | 244 | $ | - | $ | 19,134 | ||||||||||
Interest charges
|
$ | 15,136 | $ | 1,300 | $ | (36 | ) | $ | (1,297 | ) | $ | 15,103 | ||||||||
Interest income
|
$ | 403 | $ | - | $ | 1,305 | $ | (1,297 | ) | $ | 411 | |||||||||
Equity (loss) income from investees
|
$ | - | $ | (12,150 | ) | $ | 399 | $ | - | $ | (11,751 | ) | ||||||||
Federal and state income tax expense (benefit)
|
$ | 3,800 | $ | (5,418 | ) | $ | 2,944 | $ | - | $ | 1,326 | |||||||||
Segment profit (loss)
(1)
|
$ | 15,018 | $ | (8,652 | ) | $ | 284 | $ | - | $ | 6,650 | |||||||||
Additions to long-lived assets
|
$ | 61,436 | $ | 4 | $ | 176 | $ | - | $ | 61,616 | ||||||||||
Equity investment in investees
(2)
|
$ | 12,873 | $ | 223,652 | $ | 15,093 | $ | (1 | ) | $ | 251,617 | |||||||||
Total segment assets
(2)
|
$ | 3,363,962 | $ | 270,713 | $ | 383,058 | $ | (322,886 | ) | $ | 3,694,847 | |||||||||
(1)
Reconciliation of segment profit to consolidated profit:
|
Segment profit
|
$ | 6,650 | |||||||||||||||||
(2)
Balances as of December 31, 2009
|
Unallocated items:
|
|||||||||||||||||||
Preferred dividends requirements, net of tax
|
12 | |||||||||||||||||||
Net income applicable to common stock
|
$ | 6,638 |
(THOUSANDS)
|
AT MARCH 31, 2010
|
AT DECEMBER 31, 2009
|
||||||
Current assets
|
$ | 3,590 | $ | 17,221 | ||||
Accounts receivable - affiliate
|
4,060 | 3,518 | ||||||
Property, plant and equipment, net
|
182,354 | 183,208 | ||||||
Other assets
|
- | 47,915 | ||||||
Total assets
|
$ | 190,004 | $ | 251,862 | ||||
Current liabilities
|
1,820 | 16,383 | ||||||
Accounts payable - affiliate
|
57,560 | 11,396 | ||||||
Long-term debt, net
|
- | 153,564 | ||||||
Other liabilities
|
81,766 | 80,957 | ||||||
Member’s equity (deficit)
|
48,858 | (10,438 | ) | |||||
Total liabilities and member’s equity
|
$ | 190,004 | $ | 251,862 |
(THOUSANDS)
|
AT MARCH 31, 2010
|
AT DECEMBER 31, 2009
|
||||||
Current assets
|
$ | 1,582 | $ | 1,196 | ||||
Accounts receivable - affiliate
|
974 | 1,003 | ||||||
Other assets
|
13,956 | 13,999 | ||||||
Total assets
|
$ | 16,512 | $ | 16,198 | ||||
Current liabilities
|
$ | 49 | $ | 6 | ||||
Accounts payable - affiliate
|
89 | 205 | ||||||
Other liabilities
|
1,615 | 1,510 | ||||||
Member’s equity
|
14,759 | 14,477 | ||||||
Total liabilities and member’s equity
|
$ | 16,512 | $ | 16,198 |
FOR THE THREE MONTHS ENDED MARCH 31,
|
||||||||
(THOUSANDS)
|
2010
|
2009
|
||||||
Operating revenue
|
$ | 487 | $ | 491 | ||||
Operating expenses
|
53 | 92 | ||||||
Interest income
|
23 | - | ||||||
Income before taxes
|
$ | 457 | $ | 399 |
FOR THE THREE MONTHS ENDED MARCH 31,
|
||||||||
(THOUSANDS)
|
2010
|
2009
|
||||||
Cajun/Acadia
|
$ | 37,846 | $ | (5,216 | ) | |||
Evangeline
|
- | (6,934 | ) | |||||
Subsidiaries 100% owned by Cleco Corporation
|
- | 399 | ||||||
Subsidiaries less than 100% owned by Cleco Innovations
|
1 | - | ||||||
Total equity income (loss)
|
$ | 37,847 | $ | (11,751 | ) |
INCEPTION TO DATE (THOUSANDS)
|
AT MARCH 31, 2010
|
AT DECEMBER 31, 2009
|
||||||
Contributed assets (cash and land)
|
$ | 281,956 | $ | 275,956 | ||||
Net income
|
181,046 | 143,200 | ||||||
Impairment of investment
|
(45,847 | ) | (45,847 | ) | ||||
Capitalized interest and other
|
19,722 | 19,722 | ||||||
Less: non-cash distribution
|
230,267 | 78,200 | ||||||
Less: cash distributions
|
136,464 | 136,464 | ||||||
Total equity investment in investee
|
$ | 70,146 | $ | 178,367 |
(THOUSANDS)
|
AT MARCH 31, 2010
|
AT DECEMBER 31, 2009
|
||||||
Cajun/Acadia’s net assets/liabilities
|
$ | 192,543 | $ | 408,985 | ||||
Midstream’s 50% equity
|
$ | 96,271 | $ | 204,492 | ||||
Impairment of investment
|
(45,847 | ) | (45,847 | ) | ||||
Capitalized interest
|
19,722 | 19,722 | ||||||
Cleco’s maximum exposure to loss
|
$ | 70,146 | $ | 178,367 |
(THOUSANDS)
|
AT MARCH 31, 2010
|
AT DECEMBER 31, 2009
|
||||||
Current assets
|
$ | 6,348 | $ | 10,800 | ||||
Property, plant and equipment, net
|
203,298 | 403,622 | ||||||
Total assets
|
$ | 209,646 | $ | 414,422 | ||||
Current liabilities
|
$ | 3,660 | $ | 5,437 | ||||
Other liabilities
|
13,443 | - | ||||||
Partners’ capital
|
192,543 | 408,985 | ||||||
Total liabilities and partners’ capital
|
$ | 209,646 | $ | 414,422 |
INCEPTION TO DATE (THOUSANDS)
|
AT MARCH 31, 2010
|
AT DECEMBER 31, 2009
|
||||||
Purchase price
|
$ | 12,873 | $ | 12,873 | ||||
Total equity investment in investee
|
$ | 12,873 | $ | 12,873 |
(THOUSANDS)
|
AT MARCH 31, 2010
|
AT DECEMBER 31, 2009
|
||||||
Oxbow’s net assets/liabilities
|
$ | 25,746 | $ | 25,746 | ||||
Cleco Power’s 50% equity
|
$ | 12,873 | $ | 12,873 | ||||
Cleco’s maximum exposure to loss
|
$ | 12,873 | $ | 12,873 |
(THOUSANDS)
|
AT MARCH 31, 2010
|
AT DECEMBER 31, 2009
|
||||||
Current assets
|
$ | 997 | $ | 976 | ||||
Property, plant and equipment, net
|
24,822 | 24,770 | ||||||
Total assets
|
$ | 25,819 | $ | 25,746 | ||||
Current liabilities
|
$ | 73 | $ | - | ||||
Partners’ capital
|
25,746 | 25,746 | ||||||
Total liabilities and partners’ capital
|
$ | 25,819 | $ | 25,746 |
FOR THE THREE MONTHS ENDED MARCH 31,
|
||||||||
(THOUSANDS)
|
2010
|
2009
|
||||||
Operating revenue
|
$ | 94 | $ | - | ||||
Operating expenses
|
94 | - | ||||||
Income before taxes
|
$ | - | $ | - |
AT MARCH 31, 2010
|
||||||||||||
FACE
|
NET
|
|||||||||||
(THOUSANDS)
|
AMOUNT
|
REDUCTIONS
|
AMOUNT
|
|||||||||
Cleco Corporation
|
||||||||||||
Guarantee issued to Entergy companies for performance obligations of Perryville
|
$ | 177,400 | $ | 135,000 | $ | 42,400 | ||||||
Guarantee issued to Entergy Mississippi on behalf of Attala
|
500 | - | 500 | |||||||||
Guarantee to Cleco Power on behalf of Acadia
|
6,750 | - | 6,750 | |||||||||
Cleco Power
|
||||||||||||
Obligations under standby letter of credit issued to the Louisiana Department of Labor
|
3,725 | - | 3,725 | |||||||||
Total
|
$ | 188,375 | $ | 135,000 | $ | 53,375 |
§
|
Environmental costs that were caused by events occurring before the transaction;
|
§
|
Claims against Cleco Power for liabilities retained by Acadia;
|
§
|
Certain defects of the unit that are discovered prior to September 30, 2010; and
|
§
|
Breach of fundamental representations of Acadia, such as legal existence, clear ownership of the unit and valid authorization to dispose of the unit.
|
AT MARCH 31, 2010
|
||||||||||||||||||||
AMOUNT OF COMMITMENT EXPIRATION PER PERIOD
|
||||||||||||||||||||
NET
|
MORE
|
|||||||||||||||||||
AMOUNT
|
LESS THAN
|
THAN
|
||||||||||||||||||
(THOUSANDS)
|
COMMITTED
|
ONE YEAR
|
1-3 YEARS
|
3-5 YEARS
|
5 YEARS
|
|||||||||||||||
Off-balance sheet commitments
|
$ | 42,900 | $ | - | $ | - | $ | - | $ | 42,900 | ||||||||||
Guarantees
|
6,750 | 2,036 | 4,714 | - | - | |||||||||||||||
Standby letter of credit
|
3,725 | 3,725 | - | - | - | |||||||||||||||
Total commercial commitments
|
$ | 53,375 | $ | 5,761 | $ | 4,714 | $ | - | $ | 42,900 |
AT MARCH 31,
|
AT DECEMBER 31,
|
|||||||
CLASSES OF PROPERTY (THOUSANDS)
|
2010
|
2009
|
||||||
Barges
|
$ | 22,050 | $ | 22,050 | ||||
Other
|
555 | 555 | ||||||
Total capital leases
|
22,605 | 22,605 | ||||||
Less: accumulated amortization
|
3,116 | 2,537 | ||||||
Net capital leases
|
$ | 19,489 | $ | 20,068 |
(THOUSANDS)
|
||||
Nine months ending December 31, 2010
|
$ | 3,577 | ||
Years ending December 31,
|
||||
2011
|
4,622 | |||
2012
|
4,634 | |||
2013
|
4,622 | |||
2014
|
4,622 | |||
2015
|
4,621 | |||
Thereafter
|
13,877 | |||
Total minimum lease payments
|
$ | 40,575 | ||
Less: executory costs
|
10,269 | |||
Net minimum lease payments
|
$ | 30,306 | ||
Less: amount representing interest
|
9,816 | |||
Present value of net minimum lease payments
|
$ | 20,490 | ||
Current liabilities
|
$ | 1,641 | ||
Non-current liabilities
|
$ | 18,849 |
(THOUSANDS)
|
AT MARCH 31, 2010
|
|||
Gross carrying amount
|
$ | 177,537 | ||
Accumulated amortization
|
23,318 | |||
Intangible asset
|
$ | 154,219 |
(THOUSANDS)
|
||||
Expected amortization expense
|
||||
For the nine months ending December 31, 2010
|
$ | 8,692 | ||
For the twelve months ending December 31, 2011
|
$ | 12,466 | ||
For the twelve months ending December 31, 2012
|
$ | 13,309 | ||
For the twelve months ending December 31, 2013
|
$ | 14,174 | ||
For the twelve months ending December 31, 2014
|
$ | 14,837 | ||
Thereafter
|
$ | 90,741 |
§
|
The tolling agreement is a market-based tolling agreement, for Evangeline’s generating Units 6 and 7, ending December 31, 2011, with an option for JPMVEC to extend the term through December 31, 2012. The agreement also gives Evangeline the right to terminate its Unit 6 obligations prior to the expiration of the term;
|
§
|
$126.6 million of Evangeline’s 8.82% Senior Secured bonds due 2019, owned by JPMVEC, were transferred to Evangeline and subsequently retired; and $5.3 million of accrued interest associated with the bonds transferred to Evangeline was eliminated;
|
§
|
JPMVEC paid Evangeline $56.7 million;
|
§
|
JPMVEC returned Cleco Corporation’s $15.0 million letter of credit issued under the Evangeline Tolling Agreement and the letter of credit was terminated; and
|
§
|
Evangeline recorded a gain of $148.4 million.
|
§
|
Cleco Power acquired one of Acadia’s two 580-MW units, the related materials and supplies, and half of the common facilities for $304.0 million;
|
§
|
Cleco Power recognized $78.4 million of deferred taxes on the transaction. For more information on the deferred taxes, see Note 7 — “Income Taxes;”
|
§
|
Acadia recognized a gain of $82.0 million;
|
§
|
APH received $6.8 million
from third parties in return for APH’s indemnification against the third parties 50% share of Acadia’s liabilities and other obligations related to the Cleco Power transaction;
|
§
|
Cleco Power and the parties executed the definitive agreements in 2009, and received LPSC and FERC approvals for the transaction in January 2010 and February 2010, respectively; and
|
§
|
Cleco Power owns and operates the unit, and operates the other unit on behalf of Acadia or a future owner.
|
§
|
Cleco Power, an integrated electric utility services company regulated by the LPSC, FERC, and other regulators, which serves approximately 277,000 customers across Louisiana and also engages in energy management activities; and
|
§
|
Midstream, a merchant energy company regulated by FERC, which owns and operates Evangeline and also owns a 50 percent indirect interest in Acadia.
|
FOR THE THREE MONTHS ENDED MARCH 31,
|
||||||||||||||||
FAVORABLE/(UNFAVORABLE)
|
||||||||||||||||
(THOUSANDS)
|
2010
|
2009
|
VARIANCE
|
CHANGE
|
||||||||||||
Operating revenue, net
|
$ | 272,287 | $ | 212,936 | $ | 59,351 | 27.9 | % | ||||||||
Operating expenses
|
216,386 | 195,698 | (20,688 | ) | (10.6 | )% | ||||||||||
Operating income
|
$ | 55,901 | $ | 17,238 | $ | 38,663 | 224.3 | % | ||||||||
Allowance for other funds used during construction
|
$ | 9,805 | $ | 16,991 | $ | (7,186 | ) | (42.3 | )% | |||||||
Equity income (loss) from investees
|
$ | 37,847 | $ | (11,751 | ) | $ | 49,598 | 422.1 | % | |||||||
Gain on toll settlement
|
$ | 148,402 | $ | - | $ | 148,402 | - | |||||||||
Interest charges
|
$ | 22,435 | $ | 15,103 | $ | (7,332 | ) | (48.5 | )% | |||||||
Federal and state income taxes
|
$ | 79,866 | $ | 1,326 | $ | (78,540 | ) | * | ||||||||
Net income applicable to common stock
|
$ | 149,958 | $ | 6,638 | $ | 143,320 | * | |||||||||
*Not meaningful
|
FOR THE THREE MONTHS ENDED MARCH 31,
|
||||||||||||||||
FAVORABLE/(UNFAVORABLE)
|
||||||||||||||||
(THOUSANDS)
|
2010
|
2009
|
VARIANCE
|
CHANGE
|
||||||||||||
Operating revenue
|
||||||||||||||||
Base
|
$ | 114,948 | $ | 72,818 | $ | 42,130 | 57.9 | % | ||||||||
Fuel cost recovery
|
137,850 | 130,047 | 7,803 | 6.0 | % | |||||||||||
Other operations
|
10,386 | 7,086 | 3,300 | 46.6 | % | |||||||||||
Affiliate revenue
|
- | 6 | (6 | ) | (100.0 | )% | ||||||||||
Intercompany revenue
|
343 | 342 | 1 | 0.3 | % | |||||||||||
Operating revenue, net
|
263,527 | 210,299 | 53,228 | 25.3 | % | |||||||||||
Operating expenses
|
||||||||||||||||
Fuel used for electric generation – recoverable
|
92,619 | 86,409 | (6,210 | ) | (7.2 | )% | ||||||||||
Power purchased for utility customers – recoverable
|
45,263 | 43,617 | (1,646 | ) | (3.8 | )% | ||||||||||
Non-recoverable fuel and power purchased
|
4,919 | 3,995 | (924 | ) | (23.1 | )% | ||||||||||
Other operations
|
24,408 | 23,420 | (988 | ) | (4.2 | )% | ||||||||||
Maintenance
|
11,722 | 9,428 | (2,294 | ) | (24.3 | )% | ||||||||||
Depreciation
|
22,647 | 18,845 | (3,802 | ) | (20.2 | )% | ||||||||||
Taxes other than income taxes
|
8,040 | 7,709 | (331 | ) | (4.3 | )% | ||||||||||
Loss on sales of assets
|
40 | - | (40 | ) | - | |||||||||||
Total operating expenses
|
209,658 | 193,423 | (16,235 | ) | (8.4 | )% | ||||||||||
Operating income
|
$ | 53,869 | $ | 16,876 | $ | 36,993 | 219.2 | % | ||||||||
Allowance for other funds used during construction
|
$ | 9,805 | $ | 16,991 | $ | (7,186 | ) | (42.3 | )% | |||||||
Other income
|
$ | 472 | $ | 1,287 | $ | (815 | ) | (63.3 | )% | |||||||
Other expense
|
$ | 906 | $ | 1,603 | $ | 697 | 43.5 | % | ||||||||
Interest charges
|
$ | 18,743 | $ | 15,136 | $ | (3,607 | ) | (23.8 | )% | |||||||
Federal and state income taxes
|
$ | 12,495 | $ | 3,800 | $ | (8,695 | ) | (228.8 | )% | |||||||
Net income
|
$ | 32,160 | $ | 15,018 | $ | 17,142 | 114.1 | % |
§
|
higher base revenue and
|
§
|
higher other operations revenue.
|
§
|
lower allowance for other funds used during construction,
|
§
|
higher depreciation expense,
|
§
|
higher other operations and maintenance expenses,
|
§
|
higher interest charges, and
|
§
|
higher effective income tax rate.
|
FOR THE THREE MONTHS ENDED MARCH 31,
|
|||||
(MILLION kWh)
|
2010 |
2009 |
FAVORABLE/
(UNFAVORABLE)
|
||
Electric sales
|
|||||
Residential
|
1,040
|
816
|
27.5 %
|
||
Commercial
|
591
|
542
|
9.0 %
|
||
Industrial
|
544
|
587
|
(7.3)%
|
||
Other retail
|
35
|
33
|
6.1 %
|
||
Total retail
|
2,210
|
1,978
|
11.7 %
|
||
Sales for resale
|
190
|
89
|
113.5 %
|
||
Unbilled
|
(124)
|
(132)
|
6.1 %
|
||
Total retail and wholesale customer sales
|
2,276
|
1,935
|
17.6 %
|
FOR THE THREE MONTHS ENDED MARCH 31,
|
||||||||||||
(THOUSANDS)
|
2010
|
2009
|
FAVORABLE/
(UNFAVORABLE)
|
|||||||||
Electric sales
|
||||||||||||
Residential
|
$ | 46,498 | $ | 32,195 | 44.4 | % | ||||||
Commercial
|
29,563 | 22,950 | 28.8 | % | ||||||||
Industrial
|
14,160 | 12,820 | 10.5 | % | ||||||||
Other retail
|
1,757 | 1,387 | 26.7 | % | ||||||||
Surcharge
|
4,195 | 5,214 | (19.5 | )% | ||||||||
Other
|
(975 | ) | - | - | ||||||||
Total retail
|
95,198 | 74,566 | 27.7 | % | ||||||||
Sales for resale
|
8,783 | 3,111 | 182.3 | % | ||||||||
Unbilled
|
10,967 | (4,859 | ) | 325.7 | % | |||||||
Total retail and wholesale customer sales
|
$ | 114,948 | $ | 72,818 | 57.9 | % |
FOR THE THREE MONTHS ENDED MARCH 31,
|
|||||||||
2010 CHANGE
|
|||||||||
2010
|
2009
|
NORMAL
|
PRIOR YEAR
|
NORMAL
|
|||||
Heating-degree days
|
1,307
|
730
|
977
|
79.0 %
|
33.8 %
|
||||
Cooling-degree days
|
12
|
126
|
70
|
(90.5)%
|
(82.9)%
|
FOR THE THREE MONTHS ENDED MARCH 31,
|
||||||||||||||||
FAVORABLE/(UNFAVORABLE)
|
||||||||||||||||
(THOUSANDS)
|
2010
|
2009
|
VARIANCE
|
CHANGE
|
||||||||||||
Operating revenue
|
||||||||||||||||
Tolling operations
|
$ | 7,464 | $ | - | $ | 7,464 | - | |||||||||
Other operations
|
1 | - | 1 | - | ||||||||||||
Affiliate revenue
|
905 | 2,363 | (1,458 | ) | (61.7 | )% | ||||||||||
Operating revenue
|
8,370 | 2,363 | 6,007 | 254.2 | % | |||||||||||
Operating expenses
|
||||||||||||||||
Other operations
|
2,196 | 1,743 | (453 | ) | (26.0 | )% | ||||||||||
Maintenance
|
2,064 | 1,095 | (969 | ) | (88.5 | )% | ||||||||||
Depreciation
|
1,443 | 45 | (1,398 | ) | * | |||||||||||
Taxes other than income taxes
|
110 | 116 | 6 | 5.2 | % | |||||||||||
Total operating expenses
|
5,813 | 2,999 | (2,814 | ) | (93.8 | )% | ||||||||||
Operating income (loss)
|
$ | 2,557 | $ | (636 | ) | $ | 3,193 | 502.0 | % | |||||||
Equity income (loss) from investees
|
$ | 37,846 | $ | (12,150 | ) | $ | 49,996 | 411.5 | % | |||||||
Gain on toll settlement
|
$ | 148,402 | $ | - | $ | 148,402 | - | |||||||||
Interest charges
|
$ | 3,432 | $ | 1,300 | $ | (2,132 | ) | (164.0 | )% | |||||||
Federal and state income tax expense (benefit)
|
$ | 71,388 | $ | (5,418 | ) | $ | (76,806 | ) | * | |||||||
Net income (loss)
|
$ | 114,010 | $ | (8,652 | ) | $ | 122,662 | * | ||||||||
*Not meaningful
|
AT MARCH 31, 2010
|
||||||||||||
FACE
|
NET
|
|||||||||||
(THOUSANDS)
|
AMOUNT
|
REDUCTIONS
|
AMOUNT
|
|||||||||
Cleco Corporation
|
||||||||||||
Guarantee issued to Entergy companies for performance obligations of Perryville
|
$ | 177,400 | $ | 135,000 | $ | 42,400 | ||||||
Guarantee issued to Entergy Mississippi on behalf of Attala
|
500 | - | 500 | |||||||||
Guarantee to Cleco Power on behalf of Acadia
|
6,750 | - | 6,750 | |||||||||
Cleco Power
|
||||||||||||
Obligations under standby letter of credit issued to the Louisiana Department of Labor
|
3,725 | - | 3,725 | |||||||||
Total
|
$ | 188,375 | $ | 135,000 | $ | 53,375 |
§
|
Environmental costs that were caused by events occurring before the transaction;
|
§
|
Claims against Cleco Power for liabilities retained by Acadia;
|
§
|
Certain defects of the unit that are discovered prior to September 30, 2010; and
|
§
|
Breach of fundamental representations of Acadia, such as legal existence, clear ownership of the unit and valid authorization to dispose of the unit.
|
AT MARCH 31, 2010
|
||||||||||||||||||||
AMOUNT OF COMMITMENT EXPIRATION PER PERIOD
|
||||||||||||||||||||
NET
|
MORE
|
|||||||||||||||||||
AMOUNT
|
LESS THAN
|
THAN
|
||||||||||||||||||
(THOUSANDS)
|
COMMITTED
|
ONE YEAR
|
1-3 YEARS
|
3-5 YEARS
|
5 YEARS
|
|||||||||||||||
Off-balance sheet commitments
|
$ | 42,900 | $ | - | $ | - | $ | - | $ | 42,900 | ||||||||||
Guarantees
|
6,750 | 2,036 | 4,714 | - | - | |||||||||||||||
Standby letter of credit
|
3,725 | 3,725 | - | - | - | |||||||||||||||
Total commercial commitments
|
$ | 53,375 | $ | 5,761 | $ | 4,714 | $ | - | $ | 42,900 |
FOR THE THREE MONTHS
ENDED MARCH 31, 2010
|
AT MARCH 31
,
|
AT DECEMBER 31,
|
||||||||||||||||||
(THOUSANDS)
|
HIGH
|
LOW
|
AVERAGE
|
2010
|
2009
|
|||||||||||||||
Economic hedges
|
$ | 139.2 | $ | 38.6 | $ | 77.1 | $ | 38.6 | $ | 110.9 | ||||||||||
Fuel cost hedges
|
$ | 3,650.4 | $ | 1,180.8 | $ | 2,181.7 | $ | 1,354.7 | $ | 2,848.5 |
(a)
|
The Annual Meeting of Shareholders of Cleco Corporation was held April 30, 2010, in Pineville, Louisiana.
|
(b)
|
Proxies for the election of directors were solicited pursuant to Regulation 14A under the Securities Exchange Act of 1934, as amended. There was no solicitation in opposition to management’s nominees, and all nominees listed in the Proxy Statement were elected.
|
(c)
|
The following is a tabulation of the votes cast upon each proposal presented at the Annual Meeting of Shareholders of Cleco Corporation on April 30, 2010.
|
|
(1)Election of Directors to serve until the 2013 Annual Meeting of Shareholders:
|
CLASS III DIRECTORS |
FOR |
WITHHELD |
ABSTAIN |
BROKER
NON-VOTE
|
Sherian G. Cadoria
|
48,317,340
|
1,769,819
|
0
|
6,190,187
|
Richard B. Crowell
|
48,476,051
|
1,611,108
|
0
|
6,190,187
|
Michael H. Madison
|
48,637,547
|
1,449,612
|
0
|
6,190,187
|
W.L. Westbrook
|
48,701,631
|
1,385,528
|
0
|
6,190,187
|
|
(2)Ratification of the Audit Committee’s appointment of PricewaterhouseCoopers LLP as Cleco’s independent registered public accounting firm for the fiscal year ending December 31, 2010:
|
FOR |
AGAINST |
ABSTAIN |
BROKER
NON-VOTE
|
55,169,424
|
889,285
|
218,637
|
0
|
|
(3)Consideration of a shareholder proposal requesting the board of directors to take steps necessary to eliminate the classification of the board of directors so as to require that all directors be elected annually.
|
FOR |
AGAINST |
ABSTAIN |
BROKER
NON-VOTE
|
42,587,200
|
3,270,355
|
1,767,055
|
8,652,736
|
CLECO CORPORATION
|
|
(Registrant)
|
|
By:
/s/ R. Russell Davis
|
|
R. Russell Davis
|
|
Vice President - Investor Relations & Chief Accounting Officer
|
CLECO POWER LLC
|
|
(Registrant)
|
|
By:
/s/ R. Russell Davis
|
|
R. Russell Davis
|
|
Vice President - Investor Relations & Chief Accounting Officer
|
ARTICLE I
|
Registered Office; Registered Agents; Corporate Seal
|
1
|
Section 1.
|
Registered Office and Registered Agent(s)
|
1
|
Section 2.
|
Corporate Seal
|
1
|
ARTICLE II
|
Shareholders
|
1
|
Section 1.
|
Place of Holding Meetings
|
1
|
Section 2.
|
Quorum: Adjournment of Meetings
|
1
|
(a)
|
General Rule
|
1
|
(b)
|
Special Rule
|
1
|
(c)
|
Adjournments
|
2
|
Section 3.
|
Annual Meeting
|
2
|
Section 4.
|
Special Meeting
|
2
|
Section 5.
|
Conduct of Meetings
|
3
|
Section 6.
|
Voting
|
4
|
Section 7.
|
Notice
|
5
|
Section 8.
|
Amendment of Articles of Incorporation
|
6
|
(a)
|
Shareholders Proposals
|
6
|
(b)
|
Effectiveness
|
7
|
Section 9.
|
Effectiveness of Other Amendments to Articles of Incorporation
|
7
|
ARTICLE III
|
Directors
|
8
|
Section 1.
|
Certain General Provisions
|
8
|
(a)
|
Number
|
8
|
(b)
|
Classifications
|
8
|
(c)
|
Nominations
|
8
|
(d)
|
Qualifications; Declaration of Vacancy
|
9
|
(e)
|
Removal
|
11
|
(f)
|
Powers
|
12
|
(g)
|
Change in Number of Directors
|
12
|
(h)
|
Rights of Preferred Shareholders, etc.
|
12
|
Section 2.
|
Filling of Vacancies
|
12
|
Section 3.
|
Annual and Regular Meetings
|
13
|
Section 4.
|
Special Meetings
|
13
|
Section 5.
|
Place of Meetings; Telephone Meetings
|
13
|
Section 6.
|
Quorum
|
13
|
Section 7.
|
Compensation
|
14
|
Section 8.
|
Committees
|
14
|
ARTICLE IV
|
Indemnification
|
14
|
Section 1.
|
Right to Indemnification – General
|
14
|
Section 2.
|
Certain Provisions Respecting Indemnification for and Advancement of Expenses
|
14
|
Section 3.
|
Procedure for Determination of Entitlement to Indemnification
|
15
|
Section 4.
|
Presumptions and Effect of Certain Proceedings
|
16
|
Section 5.
|
Right of Claimant to Bring Suit
|
17
|
Section 6.
|
Non-Exclusivity and Survival of Rights
|
17
|
Section 7.
|
Definitions
|
18
|
ARTICLE V
|
Executive Committee
|
19
|
Section 1.
|
Election and Tenure
|
19
|
Section 2.
|
Executive Committee
|
19
|
Section 3.
|
Meetings
|
19
|
Section 4.
|
Compensation
|
20
|
ARTICLE VI
|
Audit Committee
|
20
|
Section 1.
|
Election and Tenure
|
20
|
Section 2.
|
Audit Committee
|
20
|
Section 3.
|
Meetings
|
20
|
Section 4.
|
Compensation
|
20
|
ARTICLE VII
|
Compensation Committee
|
20
|
Section 1.
|
Election and Tenure
|
20
|
Section 2.
|
Compensation Committee
|
20
|
Section 3.
|
Meetings
|
21
|
Section 4.
|
Compensation
|
21
|
ARTICLE VII.A.
|
Nominating/Governance Committee
|
21
|
Section 1.
|
Election and Tenure
|
21
|
Section 2.
|
Nominating/Governance Committee
|
21
|
Section 3.
|
Meetings
|
21
|
Section 4.
|
Compensation
|
21
|
ARTICLE VIII
|
Officers
|
22
|
Section 1.
|
Election, Tenure, and Compensation
|
22
|
Section 2.
|
Powers and Duties of Chairman of Board of Directors
|
22
|
Section 3.
|
Powers and Duties of President
|
22
|
Section 4.
|
Powers and Duties of Vice President
|
22
|
Section 5.
|
Powers and Duties of Secretary
|
22
|
Section 6.
|
Powers and Duties of Treasurer
|
23
|
Section 7.
|
Delegation of Duties
|
23
|
ARTICLE IX
|
Capital Stock
|
23
|
Section 1.
|
Stock Certificates
|
23
|
Section 2.
|
Lost or Destroyed Certificates
|
24
|
Section 3.
|
Transfer of Shares
|
24
|
Section 4.
|
Dividends
|
24
|
Section 5.
|
Closing Transfer Books; Fixing Record Date
|
24
|
ARTICLE X
|
Fair-Price Provisions
|
24
|
Section 1.
|
Definitions
|
24
|
Section 2.
|
Vote Required in Business Combinations
|
28
|
Section 3.
|
Wh
en Voting Requirements Not Applicable
|
28
|
(a)
|
Definitions
|
28
|
(b)
|
Conditions
|
29
|
(c)
|
Other Provisions
|
31
|
ARTICLE XI
|
Notices
|
32
|
Section 1.
|
Manner of Giving Notice
|
32
|
Section 2.
|
Waiver of Notice
|
32
|
ARTICLE XII
|
Miscellaneous
|
32
|
Section 1.
|
Fiscal Year
|
32
|
Section 2.
|
Checks and Drafts
|
32
|
Section 3.
|
Books and Records
|
32
|
Section 4.
|
Separability
|
32
|
ARTICLE XIII
|
Amendment of Bylaws
|
33
|
Section 1.
|
Voting
|
33
|
Section 2.
|
Shareholder Proposals
|
33
|
Section 3.
|
Effective Date
|
33
|
ARTICLE XIV
|
Other Amendments to Bylaws
|
34
|
Section 1.
|
Effective Date
|
34
|
ARTICLE XV
|
Control Share Acquisition Statute
|
34
|
Section 1.
|
34
|
|
|
Section 2.
|
Certain Provisions Respecting Indemnification for and Advancement of Expenses
.
|
|
(B)
|
For a business combination not voted upon by shareholders, the date of the consummation of the business combination.
|
|
(A)
|
The highest per share price, including any brokerage commissions, transfer taxes, and soliciting dealers' fees, paid by the interested shareholder for any shares of common stock of the same class or series that he acquired:
|
|
(C)
|
The price per share equal to the market value per share of common stock of the same class or series determined pursuant to subparagraph (B) immediately preceding, multiplied by the fraction of:
|
|
(D)
|
The price per share equal to the market value per share of such class of stock determined pursuant to subparagraph (C) immediately preceding, multiplied by the fraction of:
|
|
(iii)
|
The interested shareholder did not become the beneficial owner of additional shares of stock of the Corporation except as part of the transaction which resulted in such interested shareholder's becoming an interested shareholder or by virtue of proportionate stock splits or stock dividends.
|
|
A.
|
Articles of Organization of the Company, dated December 11, 2000, were filed with the Secretary of State on December 12, 2000.
|
|
B.
|
The Member desires to amend the Articles of Organization, as amended, in several respects, and accordingly hereby amends and restates the Articles of Organization, as amended, and adopts these First Amended and Restated Articles of Organization (the “Articles”) on the date hereof by execution by the Company’s sole member, to provide in their entirety as follows:
|
|
(a)
|
the power to acquire and manage property, real or personal, immovable or movable, corporeal or incorporeal, in the name of the Company, by purchase, lease, exchange, or otherwise, for such consideration and on such terms as the Managers, in their sole discretion, deem appropriate;
|
|
(b)
|
the power to establish title and other restrictions affecting any property owned by the Company;
|
|
(c)
|
the power to borrow money for Company purposes, in such amounts and on such terms as the Managers, in their sole discretion, deem appropriate, and the power to mortgage, pledge or otherwise encumber any Company property, real or personal, immovable or movable, corporeal or incorporeal. Such mortgages, pledges and other collateral documents may contain provisions for confession of judgment, pact de non alienando, waiver of notices and appraisement, sale by executory process and other provisions commonly found in collateral documents in the State of Louisiana;
|
|
(d)
|
the power to incur indebtedness or obligations on behalf of the Company whether or not in the ordinary course of its business;
|
|
(e)
|
the power to mortgage, pledge or encumber any, all or substantially all of the assets of the Company in connection with the incurrence of indebtedness, obligations or guaranties by or for the benefit of the Company or its affiliates. Such documents may contain provisions authorized in subparagraph 4.1(c) above;
|
|
(f)
|
the power to alienate, lease, encumber, exchange or otherwise dispose of Company property, real or personal, immovable or movable, corporeal or incorporeal (but subject to the power reserved to the Member in subparagraph 4.2(c) of these Articles);
|
|
(g)
|
the power to construct improvements on, demolish, rehabilitate, refurbish or otherwise alter any of the Company’s property;
|
|
(h)
|
the power to hire, employ or contract with any provider of services whom the Managers, in their sole discretion, choose to perform services for the Company;
|
|
(i)
|
the power to authorize and perform contracts pertaining to the Company’s affairs, business, concerns and matters of whatever nature and kind, without any exception or reservation whatsoever except only as expressly reserved to the Member in paragraph 4.2 of these Articles;
|
|
(j)
|
the power to institute, defend and/or settle any litigation involving the Company or its affairs, as the occasion shall require;
|
|
(k)
|
the power to lend money for Company purposes;
|
|
(l)
|
the power to elect or remove officers;
|
|
(m)
|
the power to make various elections for federal, state and local tax purposes;
|
|
(n)
|
the power to establish bank accounts and engage in usual and customary banking transactions; and
|
|
(o)
|
the power to exercise any and all other powers that are vested in the Managers by the other provisions of these Articles, the Company’s Operating Agreement or by operation of Louisiana law.
|
|
(b)
|
the dissolution and winding up of the Company;
|
|
(c)
|
the sale, exchange, lease or other transfer of all or substantially all of the assets of the Company (but not limiting the power granted to the Managers in subparagraph 4.1(c) and (e) of these Articles);
|
|
(d)
|
the merger or consolidation of the Company; and
|
|
Cleco Corporation
the sole member of Cleco Power LLC and a Louisiana corporation with its principal place of business in Rapides Parish, Louisiana and whose mailing address is 2030 Donahue Ferry Road, Pineville, LA 71360-5226 represented herein by Michael H. Madison, a duly authorized representative of Cleco Corporation.
|
A.
|
The original Operating Agreement for the Company was effective as of December 13, 2000.
|
B.
|
The Member desires to amend the Operating Agreement in several respects, and accordingly hereby amends and restates the Operating Agreement and adopts this First Amended and Restated Operating Agreement to provide in its entirety as follows:
|
(1)
|
The filing of an affidavit in accordance with Section 1335.1 of the LaLLCL; or
|
(2)
|
The entry of a judicial decree of dissolution under Section 1335 of the LaLLCL.
|
MEMBER
:
|
CLECO CORPORATION
|
Member
|
Membership Interest
|
Cash Contribution
|
||||||
Cleco Corporation
|
100% | $ 1,000 |
Table of Contents
|
||
ARTICLE I
|
||
DEFINITIONS AND INTERPRETATIONS
|
||
SECTION 1.1.
|
Definitions
|
-3-
|
SECTION 1.2.
|
Interpretations
|
-7-
|
ARTICLE II
|
||
ACQUISITION AND CONSTRUCTION OF THE PROJECT
|
||
SECTION 2.1.
|
Acquisition and Construction of the Project
|
-8-
|
SECTION 2.2.
|
Completion
|
-8-
|
ARTICLE III
|
||
SALE OF THE BONDS; LOAN;
|
||
DISPOSITION OF LOAN PROCEEDS
|
||
SECTION 3.1.
|
Issuance of the Bonds
|
-9-
|
SECTION 3.2.
|
Loan
|
-9-
|
SECTION 3.3.
|
Investment of Fund Moneys
|
-9-
|
SECTION 3.4.
|
Redemption of Bonds
|
-9-
|
SECTION 3.5.
|
Security Interests
|
-9-
|
SECTION 3.6.
|
Disbursements
|
-9-
|
SECTION 3.7.
|
Completion
|
-10-
|
ARTICLE IV
|
||
LOAN PAYMENTS AND OTHER MATTERS
|
||
SECTION 4.1.
|
Loan Payments; Purchase Price Payments
|
-11-
|
SECTION 4.2.
|
Bond Fund
|
-11-
|
SECTION 4.3.
|
Payments to Issuer
|
-11-
|
SECTION 4.4.
|
Payments to Trustee and Remarketing Agent
|
-12-
|
SECTION 4.5.
|
Company's Option to Designate Interest Rate Determination Methods
|
-12-
|
SECTION 4.6.
|
Purchase of Bonds
|
-12-
|
SECTION 4.7.
|
Credit Facility
|
-13-
|
SECTION 4.8.
|
Excess Funds
|
-13-
|
SECTION 4.9.
|
Nature of Obligations of the Company
|
-14-
|
SECTION 4.10.
|
Company Obligations Under the Indenture
|
-14-
|
ARTICLE V
|
||
MAINTENANCE, INSURANCE, MODIFICATIONS AND ABANDONMENT
|
||
SECTION 5.1.
|
Maintenance and Insurance
|
-15-
|
SECTION 5.2.
|
Modifications
|
-15-
|
SECTION 5.3.
|
Issuer Relieved from Responsibility to Maintain Project
|
-15-
|
ARTICLE VI
|
||
CASUALTY AND CONDEMNATION
|
||
SECTION 6.1.
|
Casualty or Condemnation of the Project
|
-16-
|
SECTION 6.2.
|
Effect of Casualty or Condemnation
|
-16-
|
SECTION 6.3.
|
Cooperation; Sale in Lieu of Condemnation
|
-16-
|
ARTICLE VII
|
||
PREPAYMENT OF LOAN PAYMENTS
|
||
SECTION 7.1.
|
Prepayment and Payment of Loan
|
-17-
|
SECTION 7.2.
|
Mandatory Acceleration of Loan Payments; Preservation of Tax Status
|
-17-
|
ARTICLE VIII
|
||
SPECIAL REPRESENTATIONS AND COVENANTS
|
||
SECTION 8.1.
|
Indemnification
|
-18-
|
SECTION 8.2.
|
Representations of the Company
|
-19-
|
SECTION 8.3.
|
Filing
|
-19-
|
SECTION 8.4.
|
Representations and Covenants of the Issuer
|
-20-
|
SECTION 8.5.
|
Removal of Liens
|
-20-
|
SECTION 8.6.
|
Special Covenants
|
-20-
|
SECTION 8.7.
|
Bonds are Limited Obligations
|
-20-
|
SECTION 8.8.
|
Net Agreement
|
-21-
|
SECTION 8.9.
|
No Warranty of the Project
|
-21-
|
SECTION 8.10.
|
State Bond Commission Reporting Requirements
|
-21-
|
SECTION 8.11.
|
Representations Regarding the Project
|
-21-
|
SECTION 8.12.
|
Tax Representations and Covenants
|
-22-
|
SECTION 8.13.
|
Financial Information
|
-25-
|
ARTICLE IX
|
||
ASSIGNMENT
|
||
SECTION 9.1.
|
Consolidation, Merger and Assignment by the Company
|
-26-
|
SECTION 9.2.
|
Issuer's Rights of Assignment
|
-26-
|
ARTICLE X
|
||
EVENTS OF DEFAULT AND REMEDIES
|
||
SECTION 10.1.
|
Enumeration of "Events of Default"
|
-27-
|
SECTION 10.2.
|
Remedies
|
-27-
|
SECTION 10.3.
|
No Remedy Exclusive
|
-28-
|
SECTION 10.4.
|
Agreement to Pay Attorneys' Fees and Expenses
|
-28-
|
ARTICLE XI
|
||
GENERAL
|
||
SECTION 11.1.
|
Force Majeure
|
-29-
|
SECTION 11.2.
|
Waiver of Rights
|
-29-
|
SECTION 11.3.
|
Notices
|
-29-
|
SECTION 11.5.
|
Term of Agreement
|
-31-
|
SECTION 11.6.
|
Company's Approval of Indenture
|
-31-
|
EXHIBIT A
|
Description of the Project
|
|
EXHIBIT B
|
Description of the Site
|
|
EXHIBIT C
|
Form of Note
|
|
EXHIBIT D
|
Form of Completion Certificate
|
Company:
|
Cleco Power LLC
|
2030 Donahue Ferry Road
|
|
Pineville, LA 71361
|
|
ATTN: Manager, Treasury Services and Corporate Financing
|
|
Fax#: (318) 484-7697
|
Issuer:
|
Rapides Finance Authority
|
c/o Scott M. Brame
|
|
711 Washington Street
|
|
Alexandria, LA 71301
|
|
Fax#: (318) 443-2625
|
RAPIDES FINANCE AUTHORITY
|
|
By:
|
/s/ David C. Butler
|
Chairman
|
CLECO POWER LLC
|
|
By:
|
/s/ Charles A. Mannix
|
Vice President - Tax and Treasurer
|
Table of Contents
|
||
ARTICLE I
|
||
DEFINITIONS AND INTERPRETATIONS
|
||
SECTION 1.1.
|
Definitions
|
-3-
|
SECTION 1.2.
|
Interpretations
|
-7-
|
ARTICLE II
|
||
ACQUISITION AND CONSTRUCTION OF THE PROJECT
|
||
SECTION 2.1.
|
Acquisition and Construction of the Project
|
-8-
|
SECTION 2.2.
|
Completion
|
-8-
|
ARTICLE III
|
||
SALE OF THE BONDS; LOAN;
|
||
DISPOSITION OF LOAN PROCEEDS
|
||
SECTION 3.1.
|
Issuance of the Bonds
|
-9-
|
SECTION 3.2.
|
Loan
|
-9-
|
SECTION 3.3.
|
Investment of Fund Moneys
|
-9-
|
SECTION 3.4.
|
Redemption of Bonds
|
-9-
|
SECTION 3.5.
|
Security Interests
|
-9-
|
SECTION 3.6.
|
Disbursements
|
-9-
|
SECTION 3.7.
|
Completion
|
-10-
|
ARTICLE IV
|
||
LOAN PAYMENTS AND OTHER MATTERS
|
||
SECTION 4.1.
|
Loan Payments; Purchase Price Payments
|
-11-
|
SECTION 4.2.
|
Bond Fund
|
-11-
|
SECTION 4.3.
|
Payments to Issuer
|
-11-
|
SECTION 4.4.
|
Payments to Trustee and Remarketing Agent
|
-12-
|
SECTION 4.5.
|
Company's Option to Designate Interest Rate Determination Methods
|
-12-
|
SECTION 4.6.
|
Purchase of Bonds
|
-12-
|
SECTION 4.7.
|
Credit Facility
|
-13-
|
SECTION 4.8.
|
Excess Funds
|
-13-
|
SECTION 4.9.
|
Nature of Obligations of the Company
|
-14-
|
SECTION 4.10.
|
Company Obligations Under the Indenture
|
-14-
|
ARTICLE V
|
||
MAINTENANCE, INSURANCE, MODIFICATIONS AND ABANDONMENT
|
||
SECTION 5.1.
|
Maintenance and Insurance
|
-15-
|
SECTION 5.2.
|
Modifications
|
-15-
|
SECTION 5.3.
|
Issuer Relieved from Responsibility to Maintain Project
|
-15-
|
ARTICLE VI
|
||
CASUALTY AND CONDEMNATION
|
||
SECTION 6.1.
|
Casualty or Condemnation of the Project
|
-16-
|
SECTION 6.2.
|
Effect of Casualty or Condemnation
|
-16-
|
SECTION 6.3.
|
Cooperation; Sale in Lieu of Condemnation
|
-16-
|
ARTICLE VII
|
||
PREPAYMENT OF LOAN PAYMENTS
|
||
SECTION 7.1.
|
Prepayment and Payment of Loan
|
-17-
|
SECTION 7.2.
|
Mandatory Acceleration of Loan Payments; Preservation of Tax Status
|
-17-
|
ARTICLE VIII
|
||
SPECIAL REPRESENTATIONS AND COVENANTS
|
||
SECTION 8.1.
|
Indemnification
|
-18-
|
SECTION 8.2.
|
Representations of the Company
|
-19-
|
SECTION 8.3.
|
Filing
|
-19-
|
SECTION 8.4.
|
Representations and Covenants of the Issuer
|
-20-
|
SECTION 8.5.
|
Removal of Liens
|
-20-
|
SECTION 8.6.
|
Special Covenants
|
-20-
|
SECTION 8.7.
|
Bonds are Limited Obligations
|
-20-
|
SECTION 8.8.
|
Net Agreement
|
-21-
|
SECTION 8.9.
|
No Warranty of the Project
|
-21-
|
SECTION 8.10.
|
State Bond Commission Reporting Requirements
|
-21-
|
SECTION 8.11.
|
Representations Regarding the Project
|
-21-
|
SECTION 8.12.
|
Tax Representations and Covenants
|
-22-
|
SECTION 8.13.
|
Financial Information
|
-25-
|
ARTICLE IX
|
||
ASSIGNMENT
|
||
SECTION 9.1.
|
Consolidation, Merger and Assignment by the Company
|
-26-
|
SECTION 9.2.
|
Issuer's Rights of Assignment
|
-26-
|
ARTICLE X
|
||
EVENTS OF DEFAULT AND REMEDIES
|
||
SECTION 10.1.
|
Enumeration of "Events of Default"
|
-27-
|
SECTION 10.2.
|
Remedies
|
-27-
|
SECTION 10.3.
|
No Remedy Exclusive
|
-28-
|
SECTION 10.4.
|
Agreement to Pay Attorneys' Fees and Expenses
|
-28-
|
ARTICLE XI
|
||
GENERAL
|
||
SECTION 11.1.
|
Force Majeure
|
-29-
|
SECTION 11.2.
|
Waiver of Rights
|
-29-
|
SECTION 11.3.
|
Notices
|
-29-
|
SECTION 11.5.
|
Term of Agreement
|
-31-
|
SECTION 11.6.
|
Company's Approval of Indenture
|
-31-
|
EXHIBIT A
|
Description of the Project
|
|
EXHIBIT B
|
Form of Note
|
|
EXHIBIT C
|
Form of Completion Certificate
|
|
Company:
|
Cleco Power LLC
|
2030 Donahue Ferry Road
|
|
Pineville, LA 71361
|
|
ATTN: Manager, Treasury Services and Corporate Financing
|
|
Fax#: (318) 484-7697
|
Issuer:
|
Louisiana Public Facilities Authority
|
2237 South Acadian Thruway, Suite 650
|
|
Baton Rouge, LA 70808
|
|
ATTN: President and CEO
|
|
Fax#: (225) 923-0021
|
|
LOUISIANA PUBLIC FACILITIES AUTHORITY
|
|
By:
|
/s/ Guy Campbell
|
Chairman
|
CLECO POWER LLC
|
|
By:
|
/s/ Charles A. Mannix
|
Vice President - Tax and Treasurer
|
CLECO CORPORATION
|
EXHIBIT 12(a)
|
FOR THE THREE
MONTHS ENDED
|
FOR THE TWELVE
MONTHS ENDED
|
|||||||
(THOUSANDS, EXCEPT RATIOS)
|
MARCH 31, 2010
|
|||||||
Earnings from continuing operations
|
$ | 149,970 | $ | 249,628 | ||||
Undistributed equity gain from investees
|
(37,847 | ) | (30,575 | ) | ||||
Income taxes
|
79,866 | 88,119 | ||||||
Earnings from continuing operations before income taxes
|
$ | 191,989 | $ | 307,172 | ||||
Fixed charges:
|
||||||||
Interest, long-term debt
|
$ | 17,737 | $ | 68,257 | ||||
Interest, other (including interest on short-term debt)
|
7,581 | 11,664 | ||||||
Amortization of debt expense, premium, net
|
688 | 1,997 | ||||||
Portion of rentals representative of an interest factor
|
112 | 510 | ||||||
Interest of capitalized lease
|
498 | 2,042 | ||||||
Total fixed charges
|
$ | 26,616 | $ | 84,470 | ||||
Earnings from continuing operations before income taxes
|
$ | 191,989 | $ | 307,172 | ||||
Plus: total fixed charges from above
|
26,616 | 84,470 | ||||||
Plus: amortization of capitalized interest
|
162 | 467 | ||||||
Earnings from continuing operations before income taxes and fixed charges
|
$ | 218,767 | $ | 392,109 | ||||
Ratio of earnings to fixed charges
|
8.22 | X | 4.64 | X | ||||
Total fixed charges from above
|
26,616 | 84,470 | ||||||
Preferred stock dividends
|
18 | 63 | ||||||
Total fixed charges and preferred stock dividends
|
26,634 | 84,533 | ||||||
Ratio of earnings to combined fixed charges and preferred stock dividends
|
8.21 | X | 4.64 | X |
CLECO POWER
|
EXHIBIT 12(b)
|
FOR THE THREE
MONTHS ENDED
|
FOR THE TWELVE
MONTHS ENDED
|
|||||||
(THOUSANDS, EXCEPT RATIOS)
|
MARCH 31, 2010
|
|||||||
Earnings from continuing operations
|
$ | 32,160 | $ | 128,307 | ||||
Income taxes
|
12,495 | 23,992 | ||||||
Earnings from continuing operations before income taxes
|
$ | 44,655 | $ | 152,299 | ||||
Fixed charges:
|
||||||||
Interest, long-term debt
|
$ | 18,198 | $ | 67,797 | ||||
Interest, other (including interest on short-term debt)
|
3,550 | 16,111 | ||||||
Amortization of debt expense, premium, net
|
568 | 1,792 | ||||||
Portion of rentals representative of an interest factor
|
112 | 510 | ||||||
Interest of capitalized lease
|
498 | 2,042 | ||||||
Total fixed charges
|
$ | 22,926 | $ | 88,252 | ||||
Earnings from continuing operations before income taxes
|
$ | 44,655 | $ | 152,299 | ||||
Plus: total fixed charges from above
|
22,926 | 88,252 | ||||||
Earnings from continuing operations before income taxes and fixed charges
|
$ | 67,581 | $ | 240,551 | ||||
Ratio of earnings to fixed charges
|
2.95 | X | 2.73 | X |
CLECO CORPORATION
|
EXHIBIT 31.1
|
Date: May 5, 2010
|
/s/ Michael H. Madison
|
Michael H. Madison
President and Chief Executive Officer
|
CLECO CORPORATION
|
EXHIBIT 31.2
|
Date: May 5, 2010
|
/s/ Darren J. Olagues
|
Darren J. Olagues
Senior Vice President & CFO
|
CLECO POWER LLC
|
EXHIBIT 31.3
|
Date: May 5, 2010
|
/s/ Michael H. Madison
|
Michael H. Madison
Chief Executive Officer
|
CLECO POWER LLC
|
EXHIBIT 31.4
|
Date: May 5, 2010
|
/s/ Darren J. Olagues
|
Darren J. Olagues
Senior Vice President & CFO
|
CLECO CORPORATION
|
EXHIBIT 32.1
|
Cleco Corporation
|
CERTIFICATION PURSUANT TO
|
18 U.S.C. SECTION 1350,
|
AS ADOPTED PURSUANT TO
|
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
|
(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934;
|
(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
Date: May 5, 2010
|
/s/ Michael H. Madison
|
Michael H. Madison
President and Chief Executive Officer
|
CLECO CORPORATION
|
EXHIBIT 32.2
|
Cleco Corporation
|
CERTIFICATION PURSUANT TO
|
18 U.S.C. SECTION 1350,
|
AS ADOPTED PURSUANT TO
|
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
|
(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934;
|
(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
Date: May 5, 2010
|
/s/ Darren J. Olagues
|
Darren J. Olagues
Senior Vice President & CFO
|
CLECO POWER LLC
|
EXHIBIT 32.3
|
Cleco Power LLC
|
CERTIFICATION PURSUANT TO
|
18 U.S.C. SECTION 1350,
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AS ADOPTED PURSUANT TO
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SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
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(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934;
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(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
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Date: May 5, 2010
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/s/ Michael H. Madison
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Michael H. Madison
Chief Executive Officer
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CLECO POWER LLC
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EXHIBIT 32.4
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Cleco Power LLC
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CERTIFICATION PURSUANT TO
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18 U.S.C. SECTION 1350,
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AS ADOPTED PURSUANT TO
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SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
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(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934;
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(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
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Date: May 5, 2010
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/s/ Darren J. Olagues
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Darren J. Olagues
Senior Vice President & CFO
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