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 Cleco Corporation is a large accelerated filer,
an
accelerated filer, or a non-accelerated filer. See definition of
“accelerated filer and large accelerated filer” in Rule 12b-2 of the
Exchange Act. (Check one):
Large
accelerated filer
x Accelerated
filer Non-accelerated
filer
|
|
Indicate
by check mark whether Cleco Power LLC is a large accelerated filer,
an
accelerated filer, or a non-accelerated filer. See definition of
“accelerated filer and large accelerated filer” in Rule 12b-2 of the
Exchange Act. (Check one):
Large
accelerated filer
Accelerated
filer Non-accelerated
filer
x
|
|
Indicate
by check mark whether the Registrants are shell companies (as defined
in
Rule 12b-2 of the Exchange Act) Yes
No x
|
Registrant
|
Description
of Class
|
Shares
Outstanding at July 31, 2006
|
Cleco
Corporation
|
Common
Stock, $1.00 Par Value
|
50,518,476
|
TABLE OF CONTENTS | |||
PAGE
|
|||
GLOSSARY OF
TERMS
|
3
|
||
DISCLOSURE
REGARDING
FORWARD-LOOKING
STATEMENTS
|
5
|
||
PART
I
|
Financial
Information
|
||
ITEM
1.
|
Cleco
Corporation — Condensed Consolidated Financial Statements
|
6
|
|
Cleco
Power — Condensed Financial Statements
|
14
|
||
Notes
to the Unaudited Condensed Financial Statements
|
19
|
||
ITEM
2.
|
Management’s
Discussion and Analysis of Financial Condition and Results of
Operations
|
40
|
|
ITEM
3.
|
Quantitative
and Qualitative Disclosures about Market Risk
|
55
|
|
ITEM
4.
|
Controls
and Procedures
|
56
|
|
PART
II
|
Other
Information
|
||
ITEM
1.
|
Legal
Proceedings
|
57
|
|
ITEM
1A.
|
Risk
Factors
|
57
|
|
ITEM
2.
|
Unregistered
Sales of Equity Securities and Use of Proceeds
|
59
|
|
ITEM
4.
|
Submission
of Matters to a Vote of Security Holders
|
59
|
|
ITEM
5.
|
Other
Information
|
59
|
|
ITEM
6.
|
Exhibits
|
60
|
|
Signatures
|
61
|
ABBREVIATION
OR ACRONYM
|
DEFINITION
|
401(k)
Plan
|
Cleco
Power 401(k) Savings and Investment Plan
|
Acadia
|
Acadia
Power Partners, LLC and its 1,160-MW combined-cycle, natural gas-fired
power plant near Eunice, Louisiana, 50% owned by APH and 50% owned
by
Calpine
|
Amended
EPC Contract
|
Amended
and Restated EPC Contract between Cleco Power and Shaw Constructors,
Inc.,
executed on May 12, 2006, to engineer, design, and construct Rodemacher
Unit 3.
|
APB
|
Accounting
Principles Board
|
APB
Opinion No. 18
|
The
Equity Method of Accounting for Investments in Common
Stock
|
APB
Opinion No. 25
|
Accounting
for Stock Issued to Employees
|
APB
Opinion No. 29
|
Accounting
for Nonmonetary Transactions
|
APH
|
Acadia
Power Holdings LLC, a wholly owned subsidiary of
Midstream
|
Attala
|
Attala
Transmission LLC, a wholly owned subsidiary of
Midstream
|
Calpine
|
Calpine
Corporation
|
Calpine
Debtors
|
Calpine,
CES, and certain other Calpine subsidiaries
|
Calpine
Debtors Bankruptcy Court
|
U.S.
Bankruptcy Court for the Southern District of New York
|
Calpine
Tolling Agreements
|
Capacity
Sale and Tolling Agreements between Acadia and CES which expires
in
2022
|
CCN
|
Certificate
of Public Convenience and Necessity
|
CES
|
Calpine
Energy Services, L.P.
|
Cleco
Energy
|
Cleco
Energy LLC, a wholly owned subsidiary of Midstream
|
Compliance
Plan
|
The
compliance plan included in the Consent Agreement in FERC Docket
IN03-1-000
|
Consent
Agreement
|
Stipulation
and Consent Agreement, dated as of July 25, 2003, between Cleco and
FERC
Staff
|
Diversified
Lands
|
Diversified
Lands LLC, a wholly owned subsidiary of Cleco Innovations LLC, a
wholly
owned subsidiary of Cleco Corporation
|
EITF
|
Emerging
Issues Task Force of the FASB
|
EITF
No. 04-13
|
Accounting
for Purchases and Sales of Inventory with the Same
Counterparty
|
EITF
No. 06-3
|
How
Sales Taxes Collected from Customers and Remitted to Governmental
Authorities Should be Presented in the Income Statement (That Is,
Gross
Versus Net Presentation)
|
Entergy
|
Entergy
Corporation
|
Entergy
Gulf States
|
Entergy
Gulf States, Inc.
|
Entergy
Louisiana
|
Entergy
Louisiana, Inc.
|
Entergy
Mississippi
|
Entergy
Mississippi, Inc.
|
Entergy
Services
|
Entergy
Services, Inc., as agent for Entergy Louisiana and Entergy Gulf
States
|
EPC
|
Engineering,
Procurement, and Construction
|
ERO
|
Electric
Reliability Organization
|
ESOP
|
Cleco
Corporation Employee Stock Ownership Plan
|
ESPP
|
Cleco
Corporation Employee Stock Purchase Plan
|
Evangeline
|
Cleco
Evangeline LLC, a wholly owned subsidiary of Midstream, and its 775-MW
combined-cycle, natural gas-fired power plant located in Evangeline
Parish, Louisiana
|
Evangeline
Tolling Agreement
|
Capacity
Sale and Tolling Agreement between Evangeline and Williams which
expires
in 2020
|
FASB
|
Financial
Accounting Standards Board
|
FERC
|
Federal
Energy Regulatory Commission
|
FIN
|
FASB
Interpretation No.
|
FIN
45
|
Guarantor’s
Accounting and Disclosure Requirements for Guarantees, Including
Indirect
Guarantees of Indebtedness to Others
|
FIN
46R
|
Consolidation
of Variable Interest Entities - an Interpretation of Accounting Research
Bulletin No. 51 (revised December 2003)
|
FIN
48
|
Accounting
for Uncertainty in Income Taxes - an Interpretation of FASB Statement
No.
109
|
FSP
SFAS FIN 46R-6
|
Determining
the Variability to Be Considered in Applying FASB Interpretation
No.
46R
|
GDP-IPD
|
Gross
Domestic Product - Implicit Price Deflator
|
ICT
|
Independent
Coordinator of Transmission
|
Interconnection
Agreement
|
Interconnection
Agreement and Real Estate Agreement between Attala and Entergy
Mississippi
|
IRP
|
Integrated
Resource Planning
|
kWh
|
Kilowatt-hour(s)
as applicable
|
LDEQ
|
Louisiana
Department of Environmental Quality
|
LIBOR
|
London
Inter-Bank Offer Rate
|
Lignite
Mining Agreement
|
Dolet
Hills Mine Lignite Mining Agreement, dated as of May 31,
2001
|
LPSC
|
Louisiana
Public Service Commission
|
LTICP
|
Cleco
Corporation Long-Term Incentive Compensation
Plan
|
ABBREVIATION
OR ACRONYM
|
DEFINITION
|
MAI
|
Mirant
Americas, Inc., a wholly owned subsidiary of Mirant
Corporation
|
Midstream
|
Cleco
Midstream Resources LLC, a wholly owned subsidiary of Cleco
Corporation
|
Moody’s
|
Moody’s
Investors Service
|
MW
|
Megawatt(s)
as applicable
|
NOPR
|
Notice
of Proposed Rulemaking
|
Not
meaningful
|
A
percentage comparison of these items is not statistically meaningful
because the percentage difference is greater than
1,000%.
|
PEH
|
Perryville
Energy Holdings LLC, a wholly owned subsidiary of
Midstream
|
Perryville
|
Perryville
Energy Partners, L.L.C., a wholly owned subsidiary of PEH, which
retained
ownership of the plant-related transmission assets following the
sale of
its 718-MW, natural gas-fired power plant (sold to Entergy Louisiana
on
June 30, 2005) near Perryville, Louisiana
|
Power
Purchase Agreement
|
Power
Purchase Agreement, dated as of January 28, 2004, between Perryville
and
Entergy Services
|
Registrant(s)
|
Cleco
Corporation and Cleco Power
|
RFP
|
Request
for Proposal
|
Rodemacher
Unit 3
|
A
600-MW solid fuel generating unit under construction by Cleco Power
at its
existing Rodemacher plant site in Boyce, Louisiana. The unit will
utilize
circulating fluidized bed combustion technology, with petroleum coke
as
the unit’s planned primary fuel source.
|
RSP
|
Rate
Stabilization Plan
|
RTO
|
Regional
Transmission Organization
|
Sale
Agreement
|
Purchase
and Sale Agreement, dated as of January 28, 2004, between Perryville
and
Entergy Louisiana
|
SEC
|
Securities
and Exchange Commission
|
Senior
Loan Agreement
|
Construction
and Term Loan Agreement, dated as of June 7, 2001, between Perryville
and
KBC Bank N.V., as Agent Bank
|
SERP
|
Cleco
Corporation Supplemental Executive Retirement Plan
|
SFAS
|
Statement
of Financial Accounting Standards
|
SFAS
No. 71
|
Accounting
for the Effects of Certain Types of Regulation
|
SFAS
No. 109
|
Accounting
for Income Taxes
|
SFAS
No. 123
|
Accounting
for Stock-Based Compensation
|
SFAS
No. 123R
|
Share-Based
Payment
|
SFAS
No. 131
|
Disclosures
about Segments of an Enterprise and Related Information
|
SFAS
No. 133
|
Accounting
for Derivative Instruments and Hedging Activities
|
SFAS
No. 140
|
Accounting
for Transfers and Servicing of Financial Assets and Extinguishments
of
Liabilities
|
SFAS
No. 149
|
Amendment
of Statement 133 on Derivative Instruments and Hedging
Activities
|
SFAS
No. 155
|
Accounting
for Certain Hybrid Financial Instruments - an amendment of FASB Statements
No. 133 and 140
|
SFAS
No. 156
|
Accounting
for Servicing of Financial Assets - an amendment of FASB Statement
No.
140
|
Shaw
|
Shaw
Constructors, Inc., a subsidiary of The Shaw Group Inc.
|
Subordinated
Loan Agreement
|
Subordinated
Loan Agreement, dated as of August 23, 2002, between Perryville and
MAI
|
Support
Group
|
Cleco
Support Group LLC, a wholly owned subsidiary of Cleco
Corporation
|
SWEPCO
|
Southwestern
Electric Power Company
|
VaR
|
Value-at-risk
|
Westar
|
Westar
Energy, Inc.
|
Williams
|
Williams
Power Company, Inc.
|
§ |
Factors
affecting utility operations, such as unusual weather conditions
or other
natural phenomena; catastrophic
weather-related damage (such as hurricanes and tropical storms);
unscheduled generation outages; unusual 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; environmental incidents; 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 construct, operate, and maintain, within its projected
costs (including financing) and timeframe, Rodemacher Unit 3, in
addition
to any other self-build projects identified in future IRP and RFP
processes;
|
§ |
Dependence
of Cleco Power for energy from sources other than its facilities
and the
uncertainty of future long-term 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;
|
§ |
Outcome
of the Calpine Debtors bankruptcy filing and its effect on agreements
with
Acadia;
|
§ |
The
final amount of storm restoration costs approved by the LPSC that
ultimately can be recovered from Cleco Power’s
customers;
|
§ |
Regulatory
factors such as changes in rate-setting policies, recovery of investments
made under traditional regulation, the frequency and timing of rate
increases or decreases, the results of periodic fuel audits, the
results
of IRP and RFP processes, the formation of RTOs and ICTs, and the
establishment by an ERO of reliability standards for bulk power systems
and compliance with these standards by Cleco
Power;
|
§ |
Financial
or regulatory accounting principles or policies imposed by the FASB,
the
SEC, the Public Company Accounting Oversight Board, the FERC, the
LPSC or
similar entities with regulatory or accounting
oversight;
|
§ |
Economic
conditions, including the ability of customers to continue paying
for high
energy costs, related growth and/or down-sizing of businesses in
Cleco’s
service area, monetary fluctuations, increase in commodity prices,
and
inflation rates;
|
§ |
Credit
ratings of Cleco Corporation, Cleco Power, and
Evangeline;
|
§ |
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;
|
§ |
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;
|
§ |
Employee
work force factors, including work stoppages and changes in key
executives;
|
§ |
Legal,
environmental, and regulatory delays and other obstacles associated
with
mergers, acquisitions, capital projects, reorganizations, or investments
in joint ventures;
|
§ |
Costs
and other effects of legal and administrative proceedings, settlements,
investigations, claims and other matters;
and
|
§ |
Changes
in federal, state, or local legislative requirements, such as the
adoption
of the Energy Policy Act of 2005, and changes in tax laws or rates,
regulating policies or environmental laws and
regulations.
|
Condensed Consolidated Statements of Income (Unaudited) | ||||||
FOR
THE THREE MONTHS ENDED JUNE 30,
|
||||||
(THOUSANDS,
EXCEPT SHARE AND PER SHARE AMOUNTS)
|
2006
|
2005
|
||||
Operating
revenue
|
||||||
Electric
operations
|
$
|
241,286
|
$
|
183,881
|
||
Other
operations
|
7,929
|
8,102
|
||||
Affiliate
revenue
|
1,737
|
2,378
|
||||
Gross
operating revenue
|
250,952
|
194,361
|
||||
Electric
customer credits
|
-
|
(253
|
)
|
|||
Operating
revenue, net
|
250,952
|
194,108
|
||||
Operating
expenses
|
||||||
Fuel
used for electric generation
|
57,990
|
13,725
|
||||
Power
purchased for utility customers
|
98,703
|
92,501
|
||||
Other
operations
|
24,399
|
21,118
|
||||
Maintenance
|
14,221
|
13,653
|
||||
Depreciation
|
15,714
|
15,105
|
||||
Taxes
other than income taxes
|
10,577
|
9,281
|
||||
Gain
on sales of assets
|
(68
|
)
|
(2,201
|
)
|
||
Total
operating expenses
|
221,536
|
163,182
|
||||
Operating
income
|
29,416
|
30,926
|
||||
Interest
income
|
1,943
|
884
|
||||
Allowance
for other funds used during construction
|
1,372
|
831
|
||||
Equity
income from investees
|
15,233
|
11,044
|
||||
Other
income
|
119
|
441
|
||||
Other
expense
|
(385
|
)
|
(228
|
)
|
||
Interest
charges
|
||||||
Interest
charges, including amortization of debt expenses, premium and discount,
net of capitalized interest
|
11,403
|
10,930
|
||||
Allowance
for borrowed funds used during construction
|
(493
|
)
|
(278
|
)
|
||
Total
interest charges
|
10,910
|
10,652
|
||||
Income
from continuing operations before income taxes
|
36,788
|
33,246
|
||||
Federal
and state income tax expense
|
13,459
|
12,547
|
||||
Income
from continuing operations
|
23,329
|
20,699
|
||||
Discontinued
operations
|
||||||
Loss
from discontinued operations, net of tax
|
(103
|
)
|
(72
|
)
|
||
Net
income
|
23,226
|
20,627
|
||||
Preferred
dividends requirements, net
|
427
|
448
|
||||
Net
income applicable to common stock
|
$
|
22,799
|
$
|
20,179
|
||
Average
shares of common stock outstanding
|
||||||
Basic
|
50,053,685
|
49,507,159
|
||||
Diluted
|
52,297,838
|
51,628,677
|
||||
Basic
earnings per share
|
||||||
From
continuing operations
|
$
|
0.45
|
$
|
0.40
|
||
Net
income applicable to common stock
|
$
|
0.45
|
$
|
0.40
|
||
Diluted
earnings per share
|
||||||
From
continuing operations
|
$
|
0.44
|
$
|
0.40
|
||
Net
income applicable to common stock
|
$
|
0.44
|
$
|
0.40
|
||
Cash
dividends paid per share of common stock
|
$
|
0.225
|
$
|
0.225
|
||
The
accompanying notes are an integral part of the condensed consolidated
financial statements.
|
Condensed Consolidated Statements of Comprehensive Income (Unaudited) | ||||||
FOR
THE THREE MONTHS ENDED JUNE 30,
|
||||||
(THOUSANDS)
|
2006
|
2005
|
||||
Net
income
|
$
|
23,226
|
$
|
20,627
|
||
Other
comprehensive income, net of tax:
|
||||||
Net
unrealized loss
from limited partnership (net of tax benefit of $7 in
2005)
|
-
|
(11
|
)
|
|||
Net
unrealized loss
from available-for-sale securities (net of tax benefit of $42 in
2006 and
$0 in 2005)
|
(67
|
)
|
-
|
|||
Other
comprehensive
income (loss)
|
(67
|
)
|
(11
|
)
|
||
Comprehensive
income, net of tax
|
$
|
23,159
|
$
|
20,616
|
||
The
accompanying notes are an integral part of the condensed consolidated
financial statements.
|
Condensed Consolidated Statements of Income (Unaudited) | ||||||
FOR
THE SIX MONTHS ENDED JUNE
30,
|
||||||
(THOUSANDS,
EXCEPT SHARE AND PER SHARE AMOUNTS)
|
2006
|
2005
|
||||
Operating
revenue
|
||||||
Electric
operations
|
$
|
452,275
|
$
|
346,712
|
||
Other
operations
|
14,525
|
15,252
|
||||
Affiliate
revenue
|
3,188
|
4,731
|
||||
Gross
operating revenue
|
469,988
|
366,695
|
||||
Electric
customer credits
|
4,382
|
(471
|
)
|
|||
Operating
revenue, net
|
474,370
|
366,224
|
||||
Operating
expenses
|
||||||
Fuel
used for electric generation
|
106,353
|
62,473
|
||||
Power
purchased for utility customers
|
199,486
|
143,015
|
||||
Other
operations
|
41,108
|
43,494
|
||||
Maintenance
|
20,153
|
23,124
|
||||
Depreciation
|
31,358
|
29,876
|
||||
Taxes
other than income taxes
|
20,589
|
19,708
|
||||
Gain
on sales of assets
|
(68
|
)
|
(2,206
|
)
|
||
Total
operating expenses
|
418,979
|
319,484
|
||||
Operating
income
|
55,391
|
46,740
|
||||
Interest
income
|
4,435
|
1,851
|
||||
Allowance
for other funds used during construction
|
2,041
|
1,779
|
||||
Equity
income from investees
|
15,606
|
20,873
|
||||
Other
income
|
227
|
819
|
||||
Other
expense
|
(713
|
)
|
(791
|
)
|
||
Interest
charges
|
||||||
Interest
charges, including amortization of debt expenses, premium and discount,
net of capitalized interest
|
22,579
|
23,049
|
||||
Allowance
for borrowed funds used during construction
|
(719
|
)
|
(594
|
)
|
||
Total
interest charges
|
21,860
|
22,455
|
||||
Income
from continuing operations before income taxes
|
55,127
|
48,816
|
||||
Federal
and state income tax expense
|
19,573
|
18,543
|
||||
Income
from continuing operations
|
35,554
|
30,273
|
||||
Discontinued
operations
|
||||||
Loss
from discontinued operations, net of tax
|
(190
|
)
|
(205
|
)
|
||
Net
income
|
35,364
|
30,068
|
||||
Preferred
dividends requirements, net
|
886
|
923
|
||||
Net
income applicable to common stock
|
$
|
34,478
|
$
|
29,145
|
||
Average
shares of common stock outstanding
|
||||||
Basic
|
49,956,429
|
49,396,105
|
||||
Diluted
|
52,095,625
|
51,558,920
|
||||
Basic
earnings per share
|
||||||
From
continuing operations
|
$
|
0.68
|
$
|
0.59
|
||
From
discontinued operations
|
$
|
-
|
$
|
(0.01
|
)
|
|
Net
income applicable to common stock
|
$
|
0.68
|
$
|
0.58
|
||
Diluted
earnings per share
|
||||||
From
continuing operations
|
$
|
0.68
|
$
|
0.59
|
||
From
discontinued operations
|
$
|
-
|
$
|
(0.01
|
)
|
|
Net
income applicable to common stock
|
$
|
0.68
|
$
|
0.58
|
||
Cash
dividends paid per share of common stock
|
$
|
0.450
|
$
|
0.450
|
||
The
accompanying notes are an integral part of the condensed consolidated
financial statements.
|
Condensed Consolidated Statements of Comprehensive Income (Unaudited) | ||||||
FOR
THE SIX MONTHS ENDED JUNE
30,
|
||||||
(THOUSANDS)
|
2006
|
2005
|
||||
Net
income
|
$
|
35,364
|
$
|
30,068
|
||
Other
comprehensive income, net of tax:
|
||||||
Net
unrealized income from limited partnership (net of tax expense of
$20
in 2005)
|
-
|
33
|
||||
Net
unrealized loss from available-for-sale securities (net of tax benefit
of
$12
in 2006 and $37 in 2005)
|
(19
|
)
|
(59
|
)
|
||
Other
comprehensive
loss
|
(19
|
)
|
(26
|
)
|
||
Comprehensive
income, net of tax
|
$
|
35,345
|
$
|
30,042
|
||
The
accompanying notes are an integral part of the condensed consolidated
financial statements.
|
Condensed Consolidated Balance Sheets (Unaudited) | ||||||
(THOUSANDS)
|
AT
JUNE 30,
2006
|
AT
DECEMBER 31, 2005
|
||||
Assets
|
||||||
Current
assets
|
||||||
Cash
and cash equivalents
|
$
|
81,962
|
$
|
219,153
|
||
Customer
accounts receivable (less allowance for doubtful accounts of $1,139
in 2006 and $1,262 in 2005)
|
46,753
|
54,768
|
||||
Accounts
receivable - affiliate
|
8,239
|
1,071
|
||||
Other
accounts receivable
|
28,552
|
33,911
|
||||
Unbilled
revenue
|
22,967
|
17,878
|
||||
Fuel
inventory, at average cost
|
44,088
|
21,313
|
||||
Material
and supplies inventory, at average cost
|
30,861
|
24,289
|
||||
Risk
management assets
|
-
|
10,110
|
||||
Accumulated
deferred fuel
|
66,431
|
23,165
|
||||
Cash
surrender value of company-/trust-owned life insurance
policies
|
24,416
|
22,888
|
||||
Margin
deposits
|
16,194
|
-
|
||||
Prepayments
|
4,262
|
3,344
|
||||
Other
current assets
|
1,220
|
2,578
|
||||
Total
current assets
|
375,945
|
434,468
|
||||
Property,
plant and equipment
|
||||||
Property,
plant and equipment
|
1,861,125
|
1,836,973
|
||||
Accumulated
depreciation
|
(852,853
|
)
|
(804,323
|
)
|
||
Net
property, plant and equipment
|
1,008,272
|
1,032,650
|
||||
Construction
work in progress
|
156,241
|
156,053
|
||||
Total
property, plant and equipment, net
|
1,164,513
|
1,188,703
|
||||
Equity
investment in investees
|
336,179
|
317,762
|
||||
Prepayments
|
6,018
|
5,961
|
||||
Restricted
cash
|
88
|
87
|
||||
Regulatory
assets and liabilities - deferred taxes, net
|
91,945
|
90,960
|
||||
Regulatory
assets - other
|
178,255
|
53,439
|
||||
Other
deferred charges
|
42,147
|
58,108
|
||||
Total
assets
|
$
|
2,195,090
|
$
|
2,149,488
|
||
The
accompanying notes are an integral part of the condensed consolidated
financial statements.
|
Condensed Consolidated Balance Sheets (Unaudited) (Continued) | ||||||
(THOUSANDS)
|
AT
JUNE 30,
2006
|
AT
DECEMBER 31, 2005
|
||||
Liabilities
and shareholders’ equity
|
||||||
Liabilities
|
||||||
Current
liabilities
|
||||||
Long-term
debt due within one year
|
$
|
55,000
|
$
|
40,000
|
||
Accounts
payable
|
110,328
|
143,692
|
||||
Retainage
|
3,025
|
768
|
||||
Accrued
payroll
|
2,966
|
2,875
|
||||
Accounts
payable - affiliate
|
8,870
|
3,439
|
||||
Customer
deposits
|
24,534
|
23,436
|
||||
Provision
for rate refund
|
3,652
|
7,927
|
||||
Taxes
accrued
|
59,730
|
35,475
|
||||
Interest
accrued
|
8,892
|
9,167
|
||||
Accumulated
current deferred taxes, net
|
23,219
|
17,402
|
||||
Margin
deposits
|
-
|
4,316
|
||||
Risk
management liability
|
36,798
|
-
|
||||
Other
current liabilities
|
9,183
|
5,607
|
||||
Total
current liabilities
|
346,197
|
294,104
|
||||
Deferred
credits
|
||||||
Accumulated
deferred federal and state income taxes, net
|
444,162
|
449,129
|
||||
Accumulated
deferred investment tax credits
|
14,866
|
15,632
|
||||
Other
deferred credits
|
78,623
|
74,717
|
||||
Total
deferred credits
|
537,651
|
539,478
|
||||
Long-term
debt, net
|
584,521
|
609,643
|
||||
Total
liabilities
|
1,468,369
|
1,443,225
|
||||
Commitments
and Contingencies (Note
8)
|
||||||
Shareholders’
equity
|
||||||
Preferred
stock
|
||||||
Not
subject to mandatory redemption, $100 par value, authorized 1,491,900
shares, issued 201,761 and 218,170 shares at
June
30, 2006, and December 31, 2005, respectively
|
20,176
|
21,817
|
||||
Deferred
compensation related to preferred stock held by ESOP
|
(37
|
)
|
(1,783
|
)
|
||
Total
preferred stock not subject to mandatory redemption
|
20,139
|
20,034
|
||||
Common
shareholders’ equity
|
||||||
Common
stock, $1
par value, authorized 100,000,000 shares, issued 50,536,779 and 50,030,035
shares at June 30, 2006, and
December
31, 2005, respectively
|
50,453
|
50,030
|
||||
Premium
on common stock
|
203,089
|
202,416
|
||||
Retained
earnings
|
457,851
|
443,912
|
||||
Unearned
compensation
|
-
|
(5,285
|
)
|
|||
Treasury
stock, at cost,
34,189 and 36,644 shares at June 30, 2006, and December 31, 2005,
respectively
|
(662
|
)
|
(714
|
)
|
||
Accumulated
other comprehensive loss
|
(4,149
|
)
|
(4,130
|
)
|
||
Total
common shareholders’ equity
|
706,582
|
686,229
|
||||
Total
shareholders’ equity
|
726,721
|
706,263
|
||||
Total
liabilities and shareholders’ equity
|
$
|
2,195,090
|
$
|
2,149,488
|
||
The
accompanying notes are an integral part of the condensed consolidated
financial statements.
|
Condensed Consolidated Statements of Cash Flows (Unaudited) | ||||||
FOR
THE SIX MONTHS ENDED JUNE
30,
|
||||||
(THOUSANDS)
|
2006
|
2005
|
||||
Operating
activities
|
||||||
Net
income
|
$
|
35,364
|
$
|
30,068
|
||
Adjustments
to reconcile net income to net cash provided by operating
activities:
|
||||||
Depreciation
and amortization
|
36,117
|
31,418
|
||||
Gain
on sale of property, plant and equipment
|
(68
|
)
|
(2,206
|
)
|
||
Provision
for doubtful accounts
|
1,546
|
780
|
||||
Return
on equity investment in investee
|
4,578
|
15,913
|
||||
Income
from equity investments
|
(15,606
|
)
|
(20,873
|
)
|
||
Unearned/deferred
compensation expense
|
1,981
|
3,333
|
||||
ESOP
expense
|
656
|
578
|
||||
Allowance
for other funds used during construction
|
(2,041
|
)
|
(1,779
|
)
|
||
Amortization
of investment tax credits
|
(766
|
)
|
(836
|
)
|
||
Net
deferred income taxes
|
(148
|
)
|
19,625
|
|||
Deferred
fuel costs
|
11,090
|
(24,583
|
)
|
|||
Loss
on economic hedges
|
2,390
|
-
|
||||
Cash
surrender value of company-/trust-owned life insurance
|
(399
|
)
|
(353
|
)
|
||
Changes
in assets and liabilities:
|
||||||
Accounts
receivable, net
|
9,463
|
(23,133
|
)
|
|||
Accounts
and notes receivable, affiliate
|
(7,179
|
)
|
(138
|
)
|
||
Unbilled
revenue
|
(5,089
|
)
|
(4,379
|
)
|
||
Fuel,
materials and supplies inventory
|
(29,347
|
)
|
883
|
|||
Accounts
payable
|
(43,147
|
)
|
(4,822
|
)
|
||
Prepayments
|
(505
|
)
|
2,133
|
|||
Accounts
and notes payable, affiliate
|
7,538
|
4,749
|
||||
Retainage
payable
|
2,257
|
(50
|
)
|
|||
Customer
deposits
|
3,464
|
2,618
|
||||
Regulatory
assets and liabilities, net
|
(46,083
|
)
|
(701
|
)
|
||
Other
deferred accounts
|
3,277
|
9,789
|
||||
Taxes
accrued
|
21,968
|
(2,473
|
)
|
|||
Interest
accrued
|
413
|
(1,548
|
)
|
|||
Margin
deposits
|
(26,180
|
)
|
6,068
|
|||
Other,
net
|
4,310
|
(771
|
)
|
|||
Net
cash (used
in) provided by operating activities
|
(30,146
|
)
|
39,310
|
|||
Investing
activities
|
||||||
Additions
to property, plant and equipment
|
(72,362
|
)
|
(44,484
|
)
|
||
Allowance
for other funds used during construction
|
2,041
|
1,779
|
||||
Proceeds
from sale of property, plant and equipment
|
429
|
2,760
|
||||
Return
of equity investment in investee
|
1,925
|
5,874
|
||||
Investment
in cost method investments
|
-
|
(1,385
|
)
|
|||
Equity
investment in investee
|
(7,026
|
)
|
(20
|
)
|
||
Premiums
paid on company-/trust-owned life insurance
|
(1,815
|
)
|
(1,545
|
)
|
||
Other
investing activities
|
(1
|
)
|
8
|
|||
Net
cash used in investing activities
|
(76,809
|
)
|
(37,013
|
)
|
||
Financing
activities
|
||||||
Exercise
of options to common stock
|
2,010
|
1,910
|
||||
Issuance
of common stock under the ESOP
|
814
|
-
|
||||
Stock
based compensation tax benefit
|
154
|
-
|
||||
Change
in short-term debt, net
|
-
|
30,000
|
||||
Retirement
of long-term obligations
|
(10,162
|
)
|
(160,020
|
)
|
||
Issuance
of long-term debt
|
-
|
40,000
|
||||
Deferred
financing costs
|
(787
|
)
|
(1,345
|
)
|
||
Change
in ESOP trust
|
1,668
|
1,636
|
||||
Dividends
paid on preferred stock
|
(1,336
|
)
|
(1,442
|
)
|
||
Dividends
paid on common stock
|
(22,597
|
)
|
(22,399
|
)
|
||
Net
cash used in financing activities
|
(30,236
|
)
|
(111,660
|
)
|
||
Net
decrease in cash and cash equivalents
|
(137,191
|
)
|
(109,363
|
)
|
||
Cash
and cash equivalents at beginning of period
|
219,153
|
123,787
|
||||
Cash
and cash equivalents at end of period
|
$
|
81,962
|
$
|
14,424
|
||
Supplementary
cash flow information
|
||||||
Interest
paid
|
$
|
21,526
|
$
|
23,003
|
||
Income
taxes paid
|
$
|
212
|
$
|
6,061
|
||
Supplementary
non-cash
investing and financing activities
|
||||||
Issuance
of treasury stock - LTICP and ESOP plans
|
$
|
52
|
$
|
65
|
||
Issuance
of common stock - LTICP/ESOP/ESPP
(1)
|
$
|
3,032
|
$
|
2,920
|
||
Accrued
additions to property, plant and equipment not reported
above
|
$
|
39,976
|
$
|
-
|
||
(1)Includes
conversion of preferred stock to common stock ($1,640/2006,
$1,513/2005)
|
||||||
The
accompanying notes are an integral part of the condensed consolidated
financial statements.
|
Condensed Statements of Income (Unaudited) | ||||||
FOR
THE THREE MONTHS ENDED JUNE
30,
|
||||||
(THOUSANDS)
|
2006
|
2005
|
||||
Operating
revenue
|
||||||
Electric
operations
|
$
|
241,286
|
$
|
183,881
|
||
Other
operations
|
7,883
|
8,034
|
||||
Affiliate
revenue
|
512
|
496
|
||||
Gross
operating revenue
|
249,681
|
192,411
|
||||
Electric
customer credits
|
-
|
(253
|
)
|
|||
Operating
revenue, net
|
249,681
|
192,158
|
||||
Operating
expenses
|
||||||
Fuel
used for electric generation
|
57,990
|
13,725
|
||||
Power
purchased for utility customers
|
98,703
|
92,501
|
||||
Other
operations
|
23,065
|
19,003
|
||||
Maintenance
|
13,591
|
12,804
|
||||
Depreciation
|
15,301
|
14,662
|
||||
Taxes
other than income taxes
|
10,315
|
8,659
|
||||
Gain
on sales of assets
|
(68
|
)
|
(2,201
|
)
|
||
Total
operating expenses
|
218,897
|
159,153
|
||||
Operating
income
|
30,784
|
33,005
|
||||
Interest
income
|
1,793
|
532
|
||||
Allowance
for other funds used during construction
|
1,372
|
831
|
||||
Other
income
|
124
|
458
|
||||
Other
expense
|
(300
|
)
|
(401
|
)
|
||
Interest
charges
|
||||||
Interest
charges, including amortization of debt expenses, premium and
discount
|
9,417
|
6,596
|
||||
Allowance
for borrowed funds used during construction
|
(493
|
)
|
(278
|
)
|
||
Total
interest charges
|
8,924
|
6,318
|
||||
Income
before income taxes
|
24,849
|
28,107
|
||||
Federal
and state income taxes
|
7,802
|
10,783
|
||||
Net
income
|
$
|
17,047
|
$
|
17,324
|
||
The
accompanying notes are an integral part of the condensed financial
statements.
|
Condensed Statements of Income (Unaudited) | ||||||
FOR
THE SIX MONTHS ENDED JUNE
30,
|
||||||
(THOUSANDS)
|
2006
|
2005
|
||||
Operating
revenue
|
||||||
Electric
operations
|
$
|
452,275
|
$
|
346,712
|
||
Other
operations
|
14,432
|
15,115
|
||||
Affiliate
revenue
|
1,024
|
991
|
||||
Gross
operating revenue
|
467,731
|
362,818
|
||||
Electric
customer credits
|
4,382
|
(471
|
)
|
|||
Operating
revenue, net
|
472,113
|
362,347
|
||||
Operating
expenses
|
||||||
Fuel
used for electric generation
|
106,353
|
62,473
|
||||
Power
purchased for utility customers
|
199,486
|
143,015
|
||||
Other
operations
|
39,306
|
39,351
|
||||
Maintenance
|
18,938
|
21,350
|
||||
Depreciation
|
30,526
|
29,059
|
||||
Taxes
other than income taxes
|
19,623
|
18,242
|
||||
Gain
on sales of assets
|
(68
|
)
|
(2,206
|
)
|
||
Total
operating expenses
|
414,164
|
311,284
|
||||
Operating
income
|
57,949
|
51,063
|
||||
Interest
income
|
4,129
|
1,144
|
||||
Allowance
for other funds used during construction
|
2,041
|
1,779
|
||||
Other
income
|
190
|
756
|
||||
Other
expense
|
(625
|
)
|
(846
|
)
|
||
Interest
charges
|
||||||
Interest
charges, including amortization of debt expenses, premium and
discount
|
18,623
|
14,100
|
||||
Allowance
for borrowed funds used during construction
|
(719
|
)
|
(594
|
)
|
||
Total
interest charges
|
17,904
|
13,506
|
||||
Income
before income taxes
|
45,780
|
40,390
|
||||
Federal
and state income taxes
|
14,859
|
15,456
|
||||
Net
income
|
$
|
30,921
|
$
|
24,934
|
||
The
accompanying notes are an integral part of the condensed financial
statements.
|
Condensed Balance Sheets (Unaudited) | ||||||
(THOUSANDS)
|
AT
JUNE 30,
2006
|
AT
DECEMBER 31, 2005
|
||||
Assets
|
||||||
Utility
plant and equipment
|
||||||
Property,
plant and equipment
|
$
|
1,846,433
|
$
|
1,822,798
|
||
Accumulated
depreciation
|
(845,398
|
)
|
(797,690
|
)
|
||
Net
property, plant and equipment
|
1,001,035
|
1,025,108
|
||||
Construction
work in progress
|
155,976
|
155,427
|
||||
Total
utility plant, net
|
1,157,011
|
1,180,535
|
||||
Current
assets
|
||||||
Cash
and cash equivalents
|
66,080
|
183,381
|
||||
Customer
accounts receivable (less allowance for doubtful accounts of $1,139
in 2006 and $1,262 in 2005)
|
46,753
|
54,768
|
||||
Other
accounts receivable
|
27,954
|
31,690
|
||||
Accounts
receivable - affiliate
|
18,017
|
4,530
|
||||
Unbilled
revenue
|
22,967
|
17,878
|
||||
Fuel
inventory, at average cost
|
44,088
|
21,313
|
||||
Material
and supplies inventory, at average cost
|
30,861
|
24,289
|
||||
Margin
deposits
|
16,194
|
-
|
||||
Risk
management assets
|
-
|
10,110
|
||||
Prepayments
|
3,849
|
2,460
|
||||
Accumulated
deferred fuel
|
66,431
|
23,165
|
||||
Cash
surrender value of life insurance policies
|
5,141
|
5,143
|
||||
Other
current assets
|
399
|
512
|
||||
Total
current assets
|
348,734
|
379,239
|
||||
Prepayments
|
6,018
|
5,961
|
||||
Regulatory
assets and liabilities - deferred taxes, net
|
91,945
|
90,960
|
||||
Regulatory
assets - other
|
178,255
|
53,439
|
||||
Other
deferred charges
|
40,044
|
55,800
|
||||
Total
assets
|
$
|
1,822,007
|
$
|
1,765,934
|
||
Liabilities
and member’s equity
|
||||||
Member’s
equity
|
$
|
565,131
|
$
|
534,210
|
||
Long-term
debt,
net
|
484,521
|
509,643
|
||||
Total
capitalization
|
1,049,652
|
1,043,853
|
||||
Current
liabilities
|
||||||
Long-term
debt due within one year
|
55,000
|
40,000
|
||||
Accounts
payable
|
106,846
|
135,342
|
||||
Accounts
payable - affiliate
|
29,488
|
8,122
|
||||
Retainage
|
3,025
|
768
|
||||
Customer
deposits
|
24,534
|
23,436
|
||||
Provision
for rate refund
|
3,652
|
7,927
|
||||
Taxes
accrued
|
23,115
|
12,149
|
||||
Interest
accrued
|
7,725
|
8,001
|
||||
Accumulated
deferred taxes, net
|
22,561
|
18,033
|
||||
Margin
deposits
|
-
|
4,316
|
||||
Risk
management liability
|
36,798
|
-
|
||||
Other
current liabilities
|
5,976
|
3,047
|
||||
Total
current liabilities
|
318,720
|
261,141
|
||||
Deferred
credits
|
||||||
Accumulated
deferred federal and state income taxes, net
|
381,525
|
390,906
|
||||
Accumulated
deferred investment tax credits
|
14,866
|
15,632
|
||||
Other
deferred credits
|
57,244
|
54,402
|
||||
Total
deferred credits
|
453,635
|
460,940
|
||||
Total
liabilities and member’s equity
|
$
|
1,822,007
|
$
|
1,765,934
|
||
The
accompanying notes are an integral part of the condensed financial
statements.
|
Statements of Cash Flows (Unaudited) | ||||||
FOR
THE SIX MONTHS ENDED JUNE
30,
|
||||||
(THOUSANDS)
|
2006
|
2005
|
||||
Operating
activities
|
||||||
Net
income
|
$
|
30,921
|
$
|
24,934
|
||
Adjustments
to reconcile net income to net cash provided by operating
activities:
|
||||||
Depreciation
and amortization
|
35,010
|
29,959
|
||||
Gain
on sale of property, plant and equipment
|
(68
|
)
|
(2,206
|
)
|
||
Provision
for doubtful accounts
|
1,546
|
750
|
||||
Unearned/deferred
compensation expense
|
978
|
996
|
||||
Allowance
for other funds used during construction
|
(2,041
|
)
|
(1,779
|
)
|
||
Amortization
of investment tax credits
|
(766
|
)
|
(836
|
)
|
||
Net
deferred income taxes
|
(4,903
|
)
|
5,161
|
|||
Deferred
fuel costs
|
11,090
|
(24,583
|
)
|
|||
Loss
on economic hedges
|
2,390
|
-
|
||||
Cash
surrender value of company-owned life insurance
|
(215
|
)
|
(151
|
)
|
||
Changes
in assets and liabilities:
|
||||||
Accounts
receivable, net
|
7,837
|
(24,338
|
)
|
|||
Accounts
and notes receivable, affiliate
|
(13,178
|
)
|
2,118
|
|||
Unbilled
revenue
|
(5,089
|
)
|
(4,379
|
)
|
||
Fuel,
materials and supplies inventory
|
(29,347
|
)
|
883
|
|||
Prepayments
|
(976
|
)
|
1,433
|
|||
Accounts
payable
|
(38,798
|
)
|
(2,684
|
)
|
||
Accounts
and notes payable, affiliate
|
19,585
|
(1,037
|
)
|
|||
Retainage
payable
|
2,257
|
(50
|
)
|
|||
Customer
deposits
|
3,464
|
2,635
|
||||
Regulatory
assets and liabilities, net
|
(46,083
|
)
|
(701
|
)
|
||
Other
deferred accounts
|
2,445
|
8,536
|
||||
Taxes
accrued
|
10,966
|
11,926
|
||||
Interest
accrued
|
413
|
(859
|
)
|
|||
Margin
deposits
|
(26,180
|
)
|
6,068
|
|||
Other,
net
|
2,392
|
(1,321
|
)
|
|||
Net
cash (used
in) provided by operating activities
|
(36,350
|
)
|
30,475
|
|||
Investing
activities
|
||||||
Additions
to property, plant and equipment
|
(72,194
|
)
|
(44,021
|
)
|
||
Allowance
for other funds used during construction
|
2,041
|
1,779
|
||||
Proceeds
from sale of property, plant and equipment
|
429
|
2,760
|
||||
Premiums
paid on company-owned life insurance
|
(470
|
)
|
(629
|
)
|
||
Net
cash used in investing activities
|
(70,194
|
)
|
(40,111
|
)
|
||
Financing
activities
|
||||||
Retirement
of long-term obligations
|
(10,162
|
)
|
(60,020
|
)
|
||
Issuance
of long-term debt
|
-
|
40,000
|
||||
Deferred
financing costs
|
(595
|
)
|
(614
|
)
|
||
Distribution
to parent
|
-
|
(19,900
|
)
|
|||
Net
cash used in financing activities
|
(10,757
|
)
|
(40,534
|
)
|
||
Net
decrease in cash and cash equivalents
|
(117,301
|
)
|
(50,170
|
)
|
||
Cash
and cash equivalents at beginning of period
|
183,381
|
54,113
|
||||
Cash
and cash equivalents at end of period
|
$
|
66,080
|
$
|
3,943
|
||
Supplementary
cash flow information
|
||||||
Interest
paid
|
$
|
17,983
|
$
|
14,300
|
||
Income
taxes paid
|
$
|
189
|
$
|
7,143
|
||
Supplementary
non-cash
investing and financing activities
|
||||||
Accrued
additions to property, plant and equipment not reported
above
|
$
|
39,976
|
$
|
-
|
||
The
accompanying notes are an integral part of the condensed financial
statements.
|
Index to Applicable Notes to the Unaudited Condensed Financial Statements of Registrants | ||
Note
1
|
Summary
of Significant Accounting Policies
|
Cleco
Corporation and Cleco Power
|
Note
2
|
Reclassifications
|
Cleco
Corporation and Cleco Power
|
Note
3
|
Regulatory
Assets and Liabilities
|
Cleco
Corporation and Cleco Power
|
Note
4
|
Disclosures
about Segments
|
Cleco
Corporation
|
Note
5
|
Equity
Investment
in Investees
|
Cleco
Corporation
|
Note
6
|
Recent
Accounting
Standards
|
Cleco
Corporation and Cleco Power
|
Note
7
|
Electric
Customer Credits
|
Cleco
Corporation and Cleco Power
|
Note
8
|
Litigation
and Other Commitments and Contingencies
|
Cleco
Corporation and Cleco Power
|
Note
9
|
Disclosures
about Guarantees
|
Cleco
Corporation and Cleco Power
|
Note
10
|
Debt
|
Cleco
Corporation and Cleco Power
|
Note
11
|
Pension
Plan and Employee Benefits
|
Cleco
Corporation and Cleco Power
|
Note
12
|
Discontinued
Operations and Dispositions
|
Cleco
Corporation
|
Note
13
|
Income
Taxes
|
Cleco
Corporation and Cleco Power
|
Note
14
|
Deferred
Fuel and Purchased Power Costs
|
Cleco
Corporation and Cleco Power
|
Note
15
|
Affiliate
Transactions
|
Cleco
Corporation
|
Note
16
|
Calpine
Bankruptcy
|
Cleco
Corporation
|
FOR
THE THREE MONTHS ENDED JUNE
30,
|
||||||||||||||||||
2006
|
2005
|
|||||||||||||||||
(THOUSANDS,
EXCEPT PER SHARE AMOUNTS)
|
INCOME
|
SHARES
|
PER
SHARE
AMOUNT
|
INCOME
|
SHARES
|
PER
SHARE
AMOUNT
|
||||||||||||
Income
from continuing operations
|
$
|
23,329
|
$
|
20,699
|
||||||||||||||
Deduct:
non-participating stock dividends (4.5% preferred stock)
|
12
|
12
|
||||||||||||||||
Deduct:
participating preferred stock dividends
|
413
|
451
|
||||||||||||||||
Deduct:
amount allocated to participating preferred
|
421
|
358
|
||||||||||||||||
Basic
earnings per share
|
||||||||||||||||||
Income
from continuing operations
|
$
|
22,483
|
50,054
|
$
|
0.45
|
$
|
19,878
|
49,507
|
$
|
0.40
|
||||||||
Loss
from discontinued operations
|
(103
|
)
|
(72
|
)
|
||||||||||||||
Total
basic net income applicable to common stock
|
$
|
22,380
|
50,054
|
$
|
0.45
|
$
|
19,806
|
49,507
|
$
|
0.40
|
||||||||
Effect
of Dilutive Securities
|
||||||||||||||||||
Add:
stock
option grants
|
-
|
107
|
86
|
|||||||||||||||
Add:
restricted
stock (LTICP)
|
8
|
258
|
13
|
|||||||||||||||
Add:
Convertible ESOP preferred stock
|
835
|
1,879
|
809
|
2,023
|
||||||||||||||
Diluted
earnings per share
|
||||||||||||||||||
Income
from continuing operations plus assumed conversions
|
$
|
23,326
|
52,298
|
$
|
0.44
|
$
|
20,687
|
51,629
|
$
|
0.40
|
||||||||
Loss
from discontinued operations
|
(103
|
)
|
(72
|
)
|
||||||||||||||
Total
diluted net income applicable to common stock
|
$
|
23,223
|
52,298
|
$
|
0.44
|
$
|
20,615
|
51,629
|
$
|
0.40
|
FOR
THE SIX MONTHS ENDED JUNE
30,
|
||||||||||||||||||
2006
|
2005
|
|||||||||||||||||
(THOUSANDS,
EXCEPT PER SHARE AMOUNTS)
|
INCOME
|
SHARES
|
PER
SHARE
AMOUNT
|
INCOME
|
SHARES
|
PER
SHARE
AMOUNT
|
||||||||||||
Income
from continuing operations
|
$
|
35,554
|
$
|
30,273
|
||||||||||||||
Deduct:
non-participating stock dividends (4.5% preferred stock)
|
23
|
23
|
||||||||||||||||
Deduct:
participating preferred stock dividends
|
863
|
935
|
||||||||||||||||
Deduct:
amount allocated to participating preferred
|
454
|
286
|
||||||||||||||||
Basic
earnings per share
|
||||||||||||||||||
Income
from continuing operations
|
$
|
34,214
|
49,956
|
$
|
0.68
|
$
|
29,029
|
49,396
|
$
|
0.59
|
||||||||
Loss
from discontinued operations
|
(190
|
)
|
(206
|
)
|
(0.01
|
)
|
||||||||||||
Total
basic net income applicable to common stock
|
$
|
34,024
|
49,956
|
$
|
0.68
|
$
|
28,823
|
49,396
|
$
|
0.58
|
||||||||
Effect
of Dilutive Securities
|
||||||||||||||||||
Add:
stock
option grants
|
96
|
73
|
||||||||||||||||
Add:
restricted
stock (LTICP)
|
17
|
114
|
13
|
|||||||||||||||
Add:
Convertible ESOP preferred stock
|
1,317
|
1,929
|
1,221
|
2,077
|
||||||||||||||
Diluted
earnings per share
|
||||||||||||||||||
Income
from continuing operations plus assumed conversions
|
$
|
35,548
|
52,095
|
$
|
0.68
|
$
|
30,250
|
51,559
|
$
|
0.59
|
||||||||
Loss
from discontinued operations
|
(190
|
)
|
(206
|
)
|
(0.01
|
)
|
||||||||||||
Total
diluted net income applicable to common stock
|
$
|
35,358
|
52,095
|
$
|
0.68
|
$
|
30,044
|
51,559
|
$
|
0.58
|
FOR
THE THREE MONTHS ENDED JUNE
30,
|
|||||||
2006
|
2005
|
||||||
STRIKE PRICE |
AVERAGE
MARKET PRICE
|
SHARES |
STRIKE PRICE |
AVERAGE
MARKET
PRICE
|
SHARES |
||
Stock
option grants excluded
|
$22.69
- $24.25
|
$22.57
|
136,934
|
$21.88
- $ 24.25
|
$21.05
|
377,968
|
FOR
THE SIX MONTHS ENDED JUNE 30,
|
|||||||
2006
|
2005
|
||||||
STRIKE PRICE |
AVERAGE
MARKET PRICE
|
SHARES |
STRIKE PRICE |
AVERAGE
MARKET
PRICE
|
SHARES |
||
Stock
option grants excluded
|
$22.25
- $24.25
|
$22.22
|
290,036
|
$21.88
- $24.25
|
$20.64
|
377,968
|
CLECO
CORPORATION
|
CLECO
POWER
|
CLECO
CORPORATION
|
CLECO
POWER
|
||||||||||||||||||||||
FOR THE THREE MONTHS ENDED JUNE 30, |
FOR
THE SIX MONTHS ENDED JUNE 30,
|
||||||||||||||||||||||||
(THOUSANDS)
|
2006
|
2005
|
2006
|
2005
|
2006
|
2005
|
2006
|
2005
|
|||||||||||||||||
Equity
classification
|
|||||||||||||||||||||||||
Non-vested
stock
|
$
|
669
|
$
|
845
|
$
|
299
|
$
|
(51
|
)
|
$
|
1,037
|
$
|
2,000
|
$
|
580
|
$
|
553
|
||||||||
Stock
options (1)
|
27
|
-
|
6
|
-
|
49
|
-
|
13
|
-
|
|||||||||||||||||
Non-forfeitable
dividends (1)
|
9
|
-
|
5
|
-
|
17
|
-
|
9
|
-
|
|||||||||||||||||
Total
|
$
|
705
|
$
|
845
|
$
|
310
|
$
|
(51
|
)
|
$
|
1,103
|
$
|
2,000
|
$
|
602
|
$
|
553
|
||||||||
Liability
classification
|
|||||||||||||||||||||||||
Common
stock equivalent units
|
$
|
91
|
$
|
-
|
$
|
37
|
$
|
-
|
$
|
204
|
$
|
-
|
$
|
82
|
$
|
-
|
|||||||||
Company
funded participants income tax obligations
|
291
|
949
|
155
|
355
|
554
|
1,266
|
291
|
442
|
|||||||||||||||||
Total
|
$
|
382
|
$
|
949
|
$
|
192
|
$
|
355
|
$
|
758
|
$
|
1,266
|
$
|
373
|
$
|
442
|
|||||||||
Total
pre-tax compensation expense
|
$
|
1,087
|
$
|
1,794
|
$
|
502
|
$
|
304
|
$
|
1,861
|
$
|
3,266
|
$
|
975
|
$
|
995
|
|||||||||
Tax
benefit (expense) (excluding income tax gross-up)
|
$
|
306
|
$
|
325
|
$
|
133
|
$
|
(19
|
)
|
$
|
503
|
$
|
769
|
$
|
263
|
$
|
213
|
||||||||
(1)For
the three and six months ended June 30, 2006, compensation expense
charged
against income for the first time for non-forfeitable dividends paid
on
non-vested stock not expected to vest and stock options
was less than $0.1 million.
|
Cleco | ||||||
(THOUSANDS,
EXCEPT PER SHARE AMOUNTS)
|
FOR
THE THREE MONTHS
ENDED JUNE 30, 2005 |
FOR
THE SIX MONTHS
ENDED
JUNE 30, 2005
|
||||
Net
income applicable to common stock, as reported
|
$
|
20,179
|
$
|
29,145
|
||
Add:
stock-based
employee compensation expense recognized and included in reported
net
income applicable to common stock, net of related tax
effects
|
520
|
1,230
|
||||
Deduct:
total
stock-based employee compensation expense determined under the fair
value
based method of all awards, net of related tax effects
|
516
|
1,073
|
||||
Pro
forma net income applicable to common stock
|
$
|
20,183
|
$
|
29,302
|
||
Earnings
per share:
|
||||||
Basic
- as reported
|
$
|
0.40
|
$
|
0.58
|
||
Basic
- pro forma
|
$
|
0.40
|
$
|
0.59
|
||
Diluted
- as reported
|
$
|
0.40
|
$
|
0.58
|
||
Diluted
- pro forma
|
$
|
0.40
|
$
|
0.58
|
Cleco Power | ||||||
(THOUSANDS,
EXCEPT PER SHARE AMOUNTS)
|
FOR
THE THREE MONTHS
ENDED
JUNE 30, 2005
|
FOR
THE SIX MONTHS
ENDED
JUNE 30, 2005
|
||||
Net
income, as reported
|
$
|
17,324
|
$
|
24,934
|
||
Add:
stock-based
employee compensation expense recognized and included in reported
net
income, net of related tax effects
|
(31
|
)
|
340
|
|||
Deduct:
total
stock-based employee compensation expense determined under the
fair value
based method of all awards, net of related tax effects
|
195
|
387
|
||||
Pro
forma net income
|
$
|
17,098
|
$
|
24,887
|
AS
OF JUNE 30,
|
|||
2006
|
2005
|
||
Expected
term (in years) (1)
|
7.0
|
1.0
|
|
Volatility
(2)
|
28.00%
to 30.39%
|
22.0%
|
|
Expected
dividend yield
|
4.2%
|
4.2%
|
|
Risk-free
interest rate
|
4.4%
|
2.8%
|
|
Weighted
average fair value (Black-Scholes
value)
|
$
4.75
|
$
4.04
|
|
(1)The
expected term was
determined using an SEC safe harbor method due to the small number
of recipients
of these options.
|
|||
(2)The
volatility rate is based on historical stock prices over an appropriate
period, generally equal to the expected
term.
|
SHARES |
WEIGHTED-AVERAGE
EXERCISE PRICE
|
WEIGHTED-AVERAGE
REMAINING
CONTRACTUAL
TERM
(YEARS)
|
AGGREGATE INTRINSIC VALUE (THOUSANDS)
|
||||
Outstanding
at January 1, 2006
|
1,023,729
|
$
20.01
|
|||||
Granted
|
60,000
|
$
22.00
|
|||||
Exercised
|
(109,467)
|
$
18.89
|
|||||
Forfeited
|
(21,099)
|
$
19.19
|
|||||
Expired
|
-
|
$
-
|
|||||
Outstanding
at June 30, 2006
|
953,163
|
$
20.29
|
5.08
|
$
2,893
|
|||
Exercisable
at June 30, 2006
|
806,579
|
$
20.02
|
5.41
|
$
2,649
|
AS
OF JUNE 30,
|
|||||
2006
|
2005
|
||||
NON-VESTED
STOCK
|
CEUs
|
NON-VESTED
STOCK
|
|||
Expected
term (in years) (1)
|
3.0
|
3.0
|
3.0
|
||
Volatility
of Cleco stock (2)
|
23.0%
|
20.5%
|
33.0%
|
||
Correlation
between Cleco stock
volatility and peer group
|
33.7%
|
33.4%
|
41.4%
|
||
Expected
dividend yield
|
4.1%
|
4.1%
|
4.2%
|
||
Weighted
average fair value (Monte
Carlo model)
|
$
24.85
|
$
24.11
|
$
24.98
|
||
(1)The
expected term was based on the service period of the
award.
|
|||||
(2)The
volatility rate is based on historical stock prices over an appropriate
period, generally equal to the expected
term.
|
SHARES |
WEIGHTED-AVERAGE GRANT-DATE
FAIR VALUE
|
UNITS |
WEIGHTED-AVERAGE GRANT-DATE
FAIR VALUE
|
||||
NON-VESTED
STOCK
|
CEUs
|
||||||
Non-vested
at January 1, 2006
|
289,267
|
$
22.08
|
-
|
$
-
|
|||
Granted
|
83,425
|
$
24.11
|
61,145
|
$
24.11
|
|||
Vested
|
(6,017)
|
$
20.40
|
-
|
$
-
|
|||
Expected
to vest (1)
|
(191,479)
|
$
22.01
|
(10,134)
|
$
24.11
|
|||
Forfeited
|
-
|
$
-
|
-
|
$
-
|
|||
Non-vested
at June 30, 2006
|
175,196
|
$
23.17
|
51,011
|
$
24.11
|
|||
(1)Expected
to vest is the pro rata amount of shares that have been earned as
of June
30, 2006.
|
SEGMENT INFORMATION FOR THE THREE
MONTHS ENDED JUNE 30,
|
|||||||||||||||
CLECO
|
|||||||||||||||
2006
(THOUSANDS)
|
POWER
|
MIDSTREAM
|
OTHER
|
ELIMINATIONS
|
CONSOLIDATED
|
||||||||||
Revenue
|
|||||||||||||||
Electric
operations
|
$
|
241,286
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
241,286
|
|||||
Other
operations
|
7,883
|
1
|
59
|
(14
|
)
|
7,929
|
|||||||||
Electric
customer credits
|
-
|
-
|
-
|
-
|
-
|
||||||||||
Affiliate
revenue
|
12
|
1,138
|
587
|
-
|
1,737
|
||||||||||
Intercompany
revenue
|
500
|
-
|
10,523
|
(11,023
|
)
|
-
|
|||||||||
Operating
revenue, net
|
$
|
249,681
|
$
|
1,139
|
$
|
11,169
|
$
|
(11,037
|
)
|
$
|
250,952
|
||||
Depreciation
expense
|
$
|
15,301
|
$
|
78
|
$
|
335
|
$
|
-
|
$
|
15,714
|
|||||
Interest
charges
|
$
|
8,924
|
$
|
4,645
|
$
|
1,968
|
$
|
(4,627
|
)
|
$
|
10,910
|
||||
Interest
income
|
$
|
1,793
|
$
|
-
|
$
|
4,777
|
$
|
(4,627
|
)
|
$
|
1,943
|
||||
Equity
income (loss)
from investees
|
$
|
-
|
$
|
15,283
|
$
|
(50
|
)
|
$
|
-
|
$
|
15,233
|
||||
Federal
and state income tax expense
|
$
|
7,802
|
$
|
4,779
|
$
|
947
|
$
|
(69
|
)
|
$
|
13,459
|
||||
Segment
profit from continuing operations, net
|
$
|
17,047
|
$
|
4,917
|
$
|
1,365
|
$
|
-
|
$
|
23,329
|
|||||
Loss
from discontinued operations
|
-
|
(103
|
)
|
-
|
-
|
(103
|
)
|
||||||||
Segment
profit (1)
|
$
|
17,047
|
$
|
4,814
|
$
|
1,365
|
$
|
-
|
$
|
23,226
|
|||||
Additions
to long-lived assets
|
$
|
71,627
|
$
|
5
|
$
|
40
|
$
|
-
|
$
|
71,672
|
|||||
Segment
assets
|
$
|
1,822,007
|
$
|
367,859
|
$
|
678,890
|
$
|
(673,666
|
)
|
$
|
2,195,090
|
||||
(1)Reconciliation
of segment profit to consolidated profit:
|
Segment
profit
|
$
|
23,226
|
||||||||||||
Unallocated
items:
|
|||||||||||||||
|
Preferred
dividends
|
(427
|
)
|
||||||||||||
Net
income applicable to common stock
|
$
|
22,799
|
CLECO
|
|||||||||||||||
2005
(THOUSANDS)
|
POWER
|
MIDSTREAM
|
OTHER
|
ELIMINATIONS
|
CONSOLIDATED
|
||||||||||
Revenue
|
|||||||||||||||
Electric
operations
|
$
|
183,881
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
183,881
|
|||||
Other
operations
|
8,034
|
28
|
42
|
(2
|
)
|
8,102
|
|||||||||
Electric
customer credits
|
(253
|
)
|
-
|
-
|
-
|
(253
|
)
|
||||||||
Affiliate
revenue
|
8
|
1,523
|
847
|
-
|
2,378
|
||||||||||
Intercompany
revenue
|
488
|
-
|
11,483
|
(11,971
|
)
|
-
|
|||||||||
Operating
revenue, net
|
$
|
192,158
|
$
|
1,551
|
$
|
12,372
|
$
|
(11,973
|
)
|
$
|
194,108
|
||||
Depreciation
expense
|
$
|
14,662
|
$
|
79
|
$
|
364
|
$
|
-
|
$
|
15,105
|
|||||
Interest
charges
|
$
|
6,318
|
$
|
3,752
|
$
|
4,359
|
$
|
(3,777
|
)
|
$
|
10,652
|
||||
Interest
income
|
$
|
532
|
$
|
-
|
$
|
4,121
|
$
|
(3,769
|
)
|
$
|
884
|
||||
Equity
income (loss)
from investees
|
$
|
-
|
$
|
11,047
|
$
|
(3
|
)
|
$
|
-
|
$
|
11,044
|
||||
Federal
and state income tax expense (benefit)
|
$
|
10,783
|
$
|
2,510
|
$
|
(755
|
)
|
$
|
9
|
$
|
12,547
|
||||
Segment
profit (loss)
from continuing operations, net
|
$
|
17,324
|
$
|
3,584
|
$
|
(209
|
)
|
$
|
-
|
$
|
20,699
|
||||
Loss
from discontinued operations, net of tax
|
-
|
(72
|
)
|
-
|
-
|
(72
|
)
|
||||||||
Segment
profit
(loss) (1)
|
$
|
17,324
|
$
|
3,512
|
$
|
(209
|
)
|
$
|
-
|
$
|
20,627
|
||||
Additions
to long-lived assets
|
$
|
25,619
|
$
|
-
|
$
|
201
|
$
|
-
|
$
|
25,820
|
|||||
Segment
assets
|
$
|
1,413,082
|
$
|
340,635
|
$
|
554,966
|
$
|
(544,150
|
)
|
$
|
1,764,533
|
||||
(1)Reconciliation
of segment profit to consolidated profit:
|
Segment
profit
|
$
|
20,627
|
||||||||||||
Unallocated
items:
|
|||||||||||||||
Preferred
dividends
|
(448
|
)
|
|||||||||||||
Net
income applicable to common stock
|
$
|
20,179
|
SEGMENT
INFORMATION FOR THE SIX
MONTHS ENDED JUNE 30,
|
|||||||||||||||
CLECO
|
|||||||||||||||
2006
(THOUSANDS)
|
POWER
|
MIDSTREAM
|
OTHER
|
ELIMINATIONS
|
CONSOLIDATED
|
||||||||||
Revenue
|
|||||||||||||||
Electric
operations
|
$
|
452,275
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
452,275
|
|||||
Other
operations
|
14,432
|
5
|
104
|
(16
|
)
|
14,525
|
|||||||||
Electric
customer credits
|
4,382
|
-
|
-
|
-
|
4,382
|
||||||||||
Affiliate
revenue
|
24
|
2,188
|
976
|
-
|
3,188
|
||||||||||
Intercompany
revenue
|
1,000
|
-
|
19,660
|
(20,660
|
)
|
-
|
|||||||||
Operating
revenue, net
|
$
|
472,113
|
$
|
2,193
|
$
|
20,740
|
$
|
(20,676
|
)
|
$
|
474,370
|
||||
Depreciation
expense
|
$
|
30,526
|
$
|
156
|
$
|
676
|
$
|
-
|
$
|
31,358
|
|||||
Interest
charges
|
$
|
17,904
|
$
|
8,876
|
$
|
3,916
|
$
|
(8,836
|
)
|
$
|
21,860
|
||||
Interest
income
|
$
|
4,129
|
$
|
-
|
$
|
9,142
|
$
|
(8,836
|
)
|
$
|
4,435
|
||||
Equity
income (loss)
from investees
|
$
|
-
|
$
|
15,681
|
$
|
(75
|
)
|
$
|
-
|
$
|
15,606
|
||||
Federal
and state income tax expense
|
$
|
14,859
|
$
|
3,237
|
$
|
1,601
|
$
|
(124
|
)
|
$
|
19,573
|
||||
Segment
profit from continuing operations, net
|
$
|
30,921
|
$
|
1,917
|
$
|
2,716
|
$
|
-
|
$
|
35,554
|
|||||
Loss
from discontinued operations
|
-
|
(190
|
)
|
-
|
-
|
(190
|
)
|
||||||||
Segment
profit (1)
|
$
|
30,921
|
$
|
1,727
|
$
|
2,716
|
$
|
-
|
$
|
35,364
|
|||||
Additions
to long-lived assets
|
$
|
122,318
|
$
|
13
|
$
|
155
|
$
|
-
|
$
|
122,486
|
|||||
Segment
assets
|
$
|
1,822,007
|
$
|
367,859
|
$
|
678,890
|
$
|
(673,666
|
)
|
$
|
2,195,090
|
||||
(1)Reconciliation
of segment profit to consolidated profit:
|
Segment
profit
|
$
|
35,364
|
||||||||||||
Unallocated
items:
|
|||||||||||||||
Preferred
dividends
|
(886
|
)
|
|||||||||||||
Net
income applicable to common stock
|
$
|
34,478
|
CLECO
|
|||||||||||||||
2005
(THOUSANDS)
|
POWER
|
MIDSTREAM
|
OTHER
|
ELIMINATIONS
|
CONSOLIDATED
|
||||||||||
Revenue
|
|||||||||||||||
Electric
operations
|
$
|
346,712
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
346,712
|
|||||
Other
operations
|
15,115
|
40
|
101
|
(4
|
)
|
15,252
|
|||||||||
Electric
customer credits
|
(471
|
)
|
-
|
-
|
-
|
(471
|
)
|
||||||||
Affiliate
revenue
|
15
|
3,016
|
1,700
|
-
|
4,731
|
||||||||||
Intercompany
revenue
|
976
|
-
|
22,254
|
(23,230
|
)
|
-
|
|||||||||
Operating
revenue, net
|
$
|
362,347
|
$
|
3,056
|
$
|
24,055
|
$
|
(23,234
|
)
|
$
|
366,224
|
||||
Depreciation
expense
|
$
|
29,059
|
$
|
159
|
$
|
658
|
$
|
-
|
$
|
29,876
|
|||||
Interest
charges
|
$
|
13,506
|
$
|
7,233
|
$
|
8,849
|
$
|
(7,133
|
)
|
$
|
22,455
|
||||
Interest
income
|
$
|
1,144
|
$
|
-
|
$
|
7,825
|
$
|
(7,118
|
)
|
$
|
1,851
|
||||
Equity
income (loss)
from investees
|
$
|
-
|
$
|
20,966
|
$
|
(93
|
)
|
$
|
-
|
$
|
20,873
|
||||
Federal
and state income tax expense (benefit)
|
$
|
15,456
|
$
|
4,500
|
$
|
(1,410
|
)
|
$
|
(3
|
)
|
$
|
18,543
|
|||
Segment
profit (loss)
from continuing operations, net
|
$
|
24,934
|
$
|
6,473
|
$
|
(1,134
|
)
|
$
|
-
|
$
|
30,273
|
||||
Loss
from discontinued operations, net of tax
|
-
|
(205
|
)
|
-
|
-
|
(205
|
)
|
||||||||
Segment
profit
(loss) (1)
|
$
|
24,934
|
$
|
6,268
|
$
|
(1,134
|
)
|
$
|
-
|
$
|
30,068
|
||||
Additions
to long-lived assets
|
$
|
44,021
|
$
|
8
|
$
|
455
|
$
|
-
|
$
|
44,484
|
|||||
Segment
assets
|
$
|
1,413,082
|
$
|
340,635
|
$
|
554,966
|
$
|
(544,150
|
)
|
$
|
1,764,533
|
||||
(1)Reconciliation
of segment profit to consolidated profit:
|
Segment
profit
|
$
|
30,068
|
||||||||||||
Unallocated
items:
|
|||||||||||||||
Preferred
dividends
|
(923
|
)
|
|||||||||||||
Net
income applicable to common stock
|
$
|
29,145
|
FOR
THE THREE MONTHS ENDED JUNE
30,
|
||||||
(THOUSANDS)
|
2006
|
2005
|
||||
Perryville
|
$
|
1,567
|
$
|
-
|
||
APH
|
11,903
|
7,641
|
||||
Evangeline
|
1,573
|
3,406
|
||||
Other
|
190
|
(3
|
)
|
|||
Total
equity income
|
$
|
15,233
|
$
|
11,044
|
FOR
THE SIX MONTHS ENDED JUNE
30,
|
||||||
(THOUSANDS)
|
2006
|
2005
|
||||
Perryville
|
$
|
1,807
|
$
|
-
|
||
APH
|
11,837
|
15,913
|
||||
Evangeline
|
1,611
|
5,053
|
||||
Other
|
351
|
(93
|
)
|
|||
Total
equity income
|
$
|
15,606
|
$
|
20,873
|
AT
JUNE
30,
|
AT
DECEMBER 31,
|
|||||
INCEPTION
TO DATE (THOUSANDS)
|
2006
|
2005
|
||||
Contributed
assets (cash and land)
|
$
|
250,612
|
$
|
250,612
|
||
Income
before taxes
|
108,551
|
96,714
|
||||
Capitalized
interest and other
|
19,469
|
19,469
|
||||
Less:
Cash distributions
|
124,235
|
121,464
|
||||
Total
equity investment in investee
|
$
|
254,397
|
$
|
245,331
|
AT
JUNE
30,
|
AT
DECEMBER 31,
|
|||||
(THOUSANDS)
|
2006
|
2005
|
||||
Current
assets
|
$
|
6,627
|
$
|
6,258
|
||
Property,
plant and equipment, net
|
443,904
|
451,759
|
||||
Other
assets
|
-
|
624
|
||||
Total
assets
|
$
|
450,531
|
$
|
458,641
|
||
Current
liabilities
|
$
|
4,585
|
$
|
6,878
|
||
Other
liabilities
|
489
|
-
|
||||
Partners’
capital
|
445,457
|
451,763
|
||||
Total
liabilities and partners’ capital
|
$
|
450,531
|
$
|
458,641
|
FOR
THE THREE MONTHS ENDED JUNE 30,
|
FOR
THE SIX MONTHS ENDED JUNE
30,
|
||||||||||||
(THOUSANDS)
|
2006
|
2005
|
2006
|
2005
|
|||||||||
Total
revenue
|
$
|
42,204
|
$
|
17,923
|
$
|
59,496
|
$
|
36,552
|
|||||
Total
operating expenses
|
41,751
|
6,149
|
64,772
|
11,745
|
|||||||||
Other
income
|
1,737
|
13
|
1,741
|
22
|
|||||||||
Income
(loss) before
taxes
|
$
|
2,190
|
$
|
11,787
|
$
|
(3,535
|
)* |
$
|
24,829
|
||||
*The
$3.5 million loss before taxes for the six months ended June 30,
2006,
includes the $2.8 million draw against the letter of credit which
was
allocated 100% to APH earnings.
|
AT
JUNE
30,
|
AT
DECEMBER 31,
|
|||||
INCEPTION
TO DATE (THOUSANDS)
|
2006
|
2005
|
||||
Contributed
assets (cash)
|
$
|
43,580
|
$
|
43,580
|
||
Income
before taxes
|
125,431
|
123,819
|
||||
Less:
distributions
|
108,293
|
107,887
|
||||
Total
equity investment in investee
|
$
|
60,718
|
$
|
59,512
|
AT
JUNE
30,
|
AT
DECEMBER 31,
|
|||||
(THOUSANDS)
|
2006
|
2005
|
||||
Current
assets
|
$
|
21,763
|
$
|
19,142
|
||
Accounts
receivable - affiliate
|
1,300
|
146
|
||||
Property,
plant and equipment, net
|
191,863
|
194,159
|
||||
Other
assets
|
47,372
|
46,728
|
||||
Total
assets
|
$
|
262,298
|
$
|
260,175
|
||
Current
liabilities
|
$
|
15,226
|
$
|
16,649
|
||
Accounts
payable - affiliate
|
3,436
|
475
|
||||
Long-term
debt
|
180,890
|
184,716
|
||||
Other
liabilities
|
64,106
|
59,568
|
||||
Member’s
deficit
|
(1,360
|
)
|
(1,233
|
)
|
||
Total
liabilities and member’s deficit
|
$
|
262,298
|
$
|
260,175
|
FOR
THE THREE MONTHS ENDED JUNE 30,
|
FOR
THE SIX MONTHS ENDED JUNE
30,
|
|||||||||||
(THOUSANDS)
|
2006
|
2005
|
2006
|
2005
|
||||||||
Operating
revenue
|
$
|
12,678
|
$
|
11,988
|
$
|
23,021
|
$
|
21,706
|
||||
Operating
expenses
|
5,901
|
3,048
|
10,795
|
5,559
|
||||||||
Depreciation
|
1,299
|
1,296
|
2,607
|
2,589
|
||||||||
Interest
charges
|
4,204
|
4,350
|
8,469
|
8,748
|
||||||||
Other
income
|
308
|
165
|
602
|
299
|
||||||||
Other
expense
|
9
|
53
|
141
|
56
|
||||||||
Income
before taxes
|
$
|
1,573
|
$
|
3,406
|
$
|
1,611
|
$
|
5,053
|
AT
JUNE
30,
|
AT
DECEMBER 31,
|
|||||
INCEPTION
TO DATE (THOUSANDS)
|
2006
|
2005
|
||||
Contributed
assets (cash)
|
$
|
102,174
|
$
|
102,174
|
||
Income
before taxes
|
49,767
|
47,960
|
||||
Less:
distributions
|
138,320
|
137,424
|
||||
Total
equity investment in investee
|
$
|
13,621
|
$
|
12,710
|
AT
JUNE
30,
|
AT
DECEMBER 31,
|
|||||
(THOUSANDS)
|
2006
|
2005
|
||||
Current
assets
|
$
|
1,501
|
$
|
9,249
|
||
Accounts
receivable - affiliate
|
7,570
|
43
|
||||
Other
assets
|
17,106
|
14,035
|
||||
Total
assets
|
$
|
26,177
|
$
|
23,327
|
||
Current
liabilities
|
$
|
10,374
|
$
|
7,365
|
||
Accounts
payable - affiliate
|
4,724
|
111
|
||||
Other
liabilities
|
328
|
329
|
||||
Member’s
equity
|
10,751
|
15,522
|
||||
Total
liabilities and member’s equity
|
$
|
26,177
|
$
|
23,327
|
FOR
THE THREE MONTHS ENDED JUNE 30,
|
FOR
THE SIX MONTHS ENDED JUNE
30,
|
|||||||||||
(THOUSANDS)
|
2006
|
2005
|
2006
|
2005
|
||||||||
Operating
revenue
|
$
|
264
|
$
|
5,008
|
$
|
528
|
$
|
9,788
|
||||
Operating
expenses
|
(1,267
|
)
|
3,961
|
(1,104
|
)
|
7,603
|
||||||
Depreciation
|
-
|
1,566
|
-
|
3,135
|
||||||||
Interest
charges
|
-
|
2,873
|
(108
|
)
|
5,459
|
|||||||
Interest
income
|
36
|
67
|
67
|
127
|
||||||||
Gain
on sales of assets
|
-
|
10,110
|
-
|
10,110
|
||||||||
Other
expense
|
-
|
3
|
-
|
6
|
||||||||
Income
before taxes
|
$
|
1,567
|
$
|
6,782
|
$
|
1,807
|
$
|
3,822
|
§ |
Cleco
chose the modified prospective method of transition,
which requires a company to prospectively recognize compensation
expense
calculated pursuant to SFAS No. 123R for all non-vested stock-based
compensation outstanding on the date of
adoption.
|
§ |
Cleco
chose the straight-line basis over the requisite service
period to recognize expense for instruments with graded
vesting.
|
§ |
Cleco
chose the short-cut method to calculate its pool of excess tax benefits
available to absorb tax deficiencies recognized subsequent to
adoption.
|
§ |
permit
fair value accounting for hybrid financial instruments
that contain an embedded derivative that otherwise would require
bifurcation,
|
§ |
clarify
the exemption from SFAS No. 133 for certain interest-only and
principal-only strips,
|
§ |
establish
a requirement to evaluate interests in securitized financial assets
that
contain an embedded derivative requiring
bifurcation,
|
§ |
clarify
that concentrations of credit risk in the form of subordination are
not
embedded derivatives, and
|
§ |
amend
SFAS No. 140 as it relates to qualifying special-purpose entities
and
derivative financial instruments.
|
AT
JUNE
30,
|
AT
DECEMBER 31,
|
|||||
(THOUSANDS)
|
2006
|
2005
|
||||
Provision
for rate refund
|
$
|
3,652
|
$
|
7,927
|
||
Other
deferred
credits
|
3,047
|
3,154
|
||||
Total
customer
credits
|
$
|
6,699
|
$
|
11,081
|
AT
JUNE 30, 2006
|
||||||||||||
REDUCTIONS
TO THE
|
||||||||||||
AMOUNT
AVAILABLE
|
||||||||||||
TO
BE DRAWN ON
|
||||||||||||
FACE
|
NET
|
CLECO
CORPORATION’S
|
||||||||||
(THOUSANDS)
|
AMOUNT
|
REDUCTIONS
|
AMOUNT
|
CREDIT
FACILITY
|
||||||||
Cleco
Corporation guarantee issued to Entergy companies for performance
obligations of Perryville
|
$
|
277,400
|
$
|
135,000
|
$
|
142,400
|
$
|
328
|
||||
Cleco
Corporation guarantees issued to purchasers of the assets of Cleco
Energy
|
1,400
|
-
|
1,400
|
1,400
|
||||||||
Cleco
Corporation obligations under standby letter of credit issued to
Evangeline Tolling Agreement counterparty
|
15,000
|
-
|
15,000
|
15,000
|
||||||||
Cleco
Corporation guarantee issued to Central Mississippi Generating Co.
on
behalf of Attala
|
727
|
-
|
727
|
727
|
||||||||
Cleco
Corporation guarantee issued to Entergy Mississippi on behalf of
Attala
|
500
|
-
|
500
|
500
|
||||||||
Cleco
Power obligations under standby letter of credit issued to Louisiana
Department of Labor
|
525
|
-
|
525
|
-
|
||||||||
Cleco
Power obligations under Lignite Mining Agreement
|
14,586
|
-
|
14,586
|
-
|
||||||||
Total
|
$
|
310,138
|
$
|
135,000
|
$
|
175,138
|
$
|
17,955
|
AT
JUNE 30, 2006
|
|||||||||||||||
AMOUNT
OF COMMITMENT EXPIRATION
PER PERIOD
|
|||||||||||||||
NET
|
MORE
|
||||||||||||||
AMOUNT
|
LESS
THAN
|
THAN
|
|||||||||||||
(THOUSANDS)
|
COMMITTED
|
ONE
YEAR
|
1-3
YEARS
|
4-5
YEARS
|
5
YEARS
|
||||||||||
Guarantees
|
$
|
159,613
|
$
|
727
|
$
|
-
|
$
|
101,400
|
$
|
57,486
|
|||||
Standby
letters of credit
|
15,525
|
525
|
-
|
-
|
15,000
|
||||||||||
Total
commercial commitments
|
$
|
175,138
|
$
|
1,252
|
$
|
-
|
$
|
101,400
|
$
|
72,486
|
§ |
If
Williams’ failure to perform constituted a default under the tolling
agreement, the holders of the Evangeline bonds would have the right
to
declare the entire outstanding principal amount ($188.3 million at
June
30, 2006) and interest to be immediately due and payable, which could
result in:
|
§ |
Cleco
may not be able to enter into agreements in replacement of the Evangeline
Tolling Agreement on terms as favorable as that agreement or at
all;
|
§ |
Cleco’s
equity investment in Evangeline may be impaired, requiring a write-down
to
its fair market value, which could be substantial;
and
|
§ |
Cleco’s
credit ratings could be downgraded, which would increase borrowing
costs
and limit sources of financing.
|
PENSION
BENEFITS
|
OTHER
BENEFITS
|
|||||||||||
FOR
THE THREE MONTHS ENDED JUNE
30,
|
||||||||||||
(THOUSANDS)
|
2006
|
2005
|
2006
|
2005
|
||||||||
Components
of periodic benefit costs
|
||||||||||||
Service
cost
|
$
|
2,069
|
$
|
1,640
|
$
|
376
|
$
|
654
|
||||
Interest
cost
|
3,507
|
3,290
|
415
|
594
|
||||||||
Expected
return on plan assets
|
(4,851
|
)
|
(4,587
|
)
|
-
|
-
|
||||||
Amortization
of transition obligation
|
-
|
-
|
5
|
-
|
||||||||
Prior
period service cost amortization
|
239
|
246
|
(527
|
)
|
(188
|
)
|
||||||
Net
loss amortization
|
1,143
|
221
|
221
|
304
|
||||||||
Net
periodic benefit cost
|
$
|
2,107
|
$
|
810
|
$
|
490
|
$
|
1,364
|
|
PENSION
BENEFITS
|
OTHER
BENEFITS
|
||||||||||
FOR
THE SIX MONTHS ENDED JUNE
30,
|
||||||||||||
(THOUSANDS)
|
2006
|
2005
|
2006
|
2005
|
||||||||
Components
of periodic benefit costs
|
||||||||||||
Service
cost
|
$
|
3,921
|
$
|
3,397
|
$
|
769
|
$
|
1,308
|
||||
Interest
cost
|
7,211
|
6,654
|
847
|
1,189
|
||||||||
Expected
return on plan assets
|
(9,143
|
)
|
(9,183
|
)
|
-
|
-
|
||||||
Amortization
of transition obligation
|
-
|
-
|
10
|
-
|
||||||||
Prior
period service cost amortization
|
486
|
493
|
(1,033
|
)
|
(378
|
)
|
||||||
Net
loss amortization
|
1,272
|
507
|
433
|
608
|
||||||||
Net
periodic benefit cost
|
$
|
3,747
|
$
|
1,868
|
$
|
1,026
|
$
|
2,727
|
FOR
THE THREE MONTHS ENDED JUNE 30,
|
FOR
THE SIX MONTHS ENDED JUNE
30,
|
|||||||||||
(THOUSANDS)
|
2006
|
2005
|
2006
|
2005
|
||||||||
Components
of periodic benefit costs
|
||||||||||||
Service
cost
|
$
|
350
|
$
|
380
|
$
|
690
|
$
|
641
|
||||
Interest
cost
|
425
|
377
|
793
|
695
|
||||||||
Prior
period service cost amortization
|
13
|
13
|
27
|
26
|
||||||||
Net
loss amortization
|
216
|
217
|
418
|
348
|
||||||||
Net
periodic benefit cost
|
$
|
1,004
|
$
|
987
|
$
|
1,928
|
$
|
1,710
|
FOR
THE THREE MONTHS ENDED JUNE
30,
|
||||||
(THOUSANDS)
|
2006
|
2005
|
||||
401(k)
Plan expense
|
$
|
576
|
$
|
553
|
||
Dividend
requirements to ESOP on convertible
preferred stock
|
$
|
414
|
$
|
451
|
||
Interest
incurred
by ESOP on its indebtedness
|
$
|
-
|
$
|
41
|
|
||||||
FOR
THE SIX MONTHS ENDED JUNE
30,
|
||||||
(THOUSANDS)
|
2006
|
2005
|
||||
401(k)
Plan expense
|
$
|
676
|
$
|
755
|
||
Dividend
requirements to ESOP on convertible
preferred stock
|
$
|
863
|
$
|
935
|
||
Interest
incurred
by ESOP on its indebtedness
|
$
|
8
|
$
|
85
|
FOR
THE THREE MONTHS ENDED JUNE 30,
|
FOR
THE SIX MONTHS ENDED JUNE
30,
|
|||||||||||
(THOUSANDS)
|
2006
|
2005
|
2006
|
2005
|
||||||||
Operating
revenue,
net
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
||||
Pre-tax
loss
|
(150
|
)
|
(108
|
)
|
(241
|
)
|
(307
|
)
|
||||
Federal
and state income tax benefit
|
(47
|
)
|
(36
|
)
|
(51
|
)
|
(102
|
)
|
||||
Operating
loss, net
of tax
|
$
|
(103
|
)
|
$
|
(72
|
)
|
$
|
(190
|
)
|
$
|
(205
|
)
|
FOR
THE THREE MONTHS ENDED JUNE
30,
|
|||
2006
|
2005
|
||
Effective
income tax rates
|
|||
Cleco
Corporation
|
36.6
%
|
37.7
%
|
|
Cleco
Power
|
31.4
%
|
38.4
%
|
|
|||
|
FOR
THE SIX MONTHS ENDED JUNE
30,
|
||
2006
|
2005
|
||
Effective
income tax rates
|
|||
Cleco
Corporation
|
35.5
%
|
38.0
%
|
|
Cleco
Power
|
32.5
%
|
38.3
%
|
§ |
tax
reserve adjustments related to favorable settlements
of federal and state income tax audits and appeals
and
|
§ |
adjustment
for Cleco Power related to state income
taxes deducted on the federal return for
2004.
|
§ |
Cleco
Power, an integrated electric utility services subsidiary
regulated by the LPSC and the FERC, among other regulators, which
also
engages in energy management activities,
and
|
§ |
Midstream,
a merchant energy subsidiary that owns and operates a merchant generation
station, invests in a joint venture that owns and operates a merchant
generation station, and owns and operates transmission interconnection
facilities.
|
Cleco
Consolidated
|
||||||||||||
FOR
THE THREE MONTHS ENDED JUNE
30,
|
||||||||||||
FAVORABLE/(UNFAVORABLE)
|
||||||||||||
(THOUSANDS)
|
2006
|
2005
|
VARIANCE
|
CHANGE
|
||||||||
Operating
revenue, net
|
$
|
250,952
|
$
|
194,108
|
$
|
56,844
|
29.28
|
%
|
||||
Operating
expenses
|
221,536
|
163,182
|
(58,354
|
)
|
(35.76
|
)%
|
||||||
Operating
income
|
$
|
29,416
|
$
|
30,926
|
$
|
(1,510
|
)
|
(4.88
|
)%
|
|||
Interest
income
|
$
|
1,943
|
$
|
884
|
$
|
1,059
|
119.80
|
%
|
||||
Equity
income from investees
|
$
|
15,233
|
$
|
11,044
|
$
|
4,189
|
37.93
|
%
|
||||
Net
income applicable to common stock
|
$
|
22,799
|
$
|
20,179
|
$
|
2,620
|
12.98
|
%
|
§ |
higher
other operations and maintenance
expenses,
|
§ |
higher
depreciation expense,
|
§ |
higher
other taxes,
|
§ |
absence
of the gain on the sale of certain distribution assets,
and
|
§ |
higher
interest charges.
|
§ |
higher
base revenue and
|
§ |
higher
interest income.
|
FOR
THE THREE MONTHS ENDED JUNE
30,
|
||||||||||||
FAVORABLE/(UNFAVORABLE)
|
||||||||||||
(THOUSANDS)
|
2006
|
2005
|
VARIANCE
|
CHANGE
|
||||||||
Operating
revenue
|
||||||||||||
Base
|
$
|
90,677
|
$
|
82,653
|
$
|
8,024
|
9.71
|
%
|
||||
Fuel
cost recovery
|
150,609
|
101,228
|
49,381
|
48.78
|
%
|
|||||||
Electric
customer credits
|
-
|
(253
|
)
|
253
|
*
|
|||||||
Other
operations
|
7,883
|
8,034
|
(151
|
)
|
(1.88
|
)%
|
||||||
Affiliate
revenue
|
12
|
8
|
4
|
50.00
|
%
|
|||||||
Intercompany
revenue
|
500
|
488
|
12
|
2.46
|
%
|
|||||||
Operating
revenue, net
|
249,681
|
192,158
|
57,523
|
29.94
|
%
|
|||||||
Operating
expenses
|
||||||||||||
Fuel
used for electric generation
- recoverable
|
55,424
|
13,249
|
(42,175
|
)
|
(318.33
|
)%
|
||||||
Power
purchased for utility customers
- recoverable
|
95,275
|
87,745
|
(7,530
|
)
|
(8.58
|
)%
|
||||||
Non-recoverable
fuel and power
purchased
|
5,994
|
5,232
|
(762
|
)
|
(14.56
|
)%
|
||||||
Other
operations
|
23,065
|
19,003
|
(4,062
|
)
|
(21.38
|
)%
|
||||||
Maintenance
|
13,591
|
12,804
|
(787
|
)
|
(6.15
|
)%
|
||||||
Depreciation
|
15,301
|
14,662
|
(639
|
)
|
(4.36
|
)%
|
||||||
Taxes
other than income taxes
|
10,315
|
8,659
|
(1,656
|
)
|
(19.12
|
)%
|
||||||
Gain
on sales of assets
|
(68
|
)
|
(2,201
|
)
|
(2,133
|
)
|
(96.91
|
)%
|
||||
Total
operating expenses
|
218,897
|
159,153
|
(59,744
|
)
|
(37.54
|
)%
|
||||||
Operating
income
|
$
|
30,784
|
$
|
33,005
|
$
|
(2,221
|
)
|
(6.73
|
)%
|
|||
Interest
income
|
$
|
1,793
|
$
|
532
|
$
|
1,261
|
237.03
|
%
|
||||
Interest
charges
|
$
|
8,924
|
$
|
6,318
|
$
|
(2,606
|
)
|
(41.25
|
)%
|
|||
Federal
and state income taxes
|
$
|
7,802
|
$
|
10,783
|
$
|
2,981
|
27.65
|
%
|
||||
Net
income
|
$
|
17,047
|
$
|
17,324
|
$
|
(277
|
)
|
(1.60
|
)%
|
|||
*Not
meaningful
|
FOR
THE THREE MONTHS ENDED JUNE
30,
|
|||||
(MILLION
kWh)
|
2006
|
2005
|
FAVORABLE/
(UNFAVORABLE)
|
||
Electric
sales
|
|||||
Residential
|
820
|
751
|
9.19
%
|
||
Commercial
|
471
|
437
|
7.78
%
|
||
Industrial
|
725
|
705
|
2.84
%
|
||
Other
retail
|
147
|
143
|
2.80
%
|
||
Unbilled
|
223
|
224
|
(0.45)%
|
||
Total
retail
|
2,386
|
2,260
|
5.58
%
|
||
Sales
for resale
|
284
|
264
|
7.58
%
|
||
Total
retail and wholesale customer sales
|
2,670
|
2,524
|
5.78
%
|
FOR
THE THREE MONTHS ENDED JUNE
30,
|
|||||
(THOUSANDS)
|
2006
|
2005
|
FAVORABLE/
(UNFAVORABLE)
|
||
Electric
sales
|
|||||
Residential
|
$
39,634
|
|
$
35,025
|
|
13.16
%
|
Commercial
|
18,834
|
|
17,021
|
|
10.65
%
|
Industrial
|
14,277
|
|
13,325
|
|
7.14
%
|
Other
retail
|
6,053
|
|
5,686
|
|
6.45
%
|
Unbilled
|
7,597
|
|
7,486
|
|
1.48
%
|
Total
retail
|
86,395
|
|
78,543
|
|
10.00
%
|
Sales
for resale
|
4,282
|
|
4,110
|
|
4.18
%
|
Total
retail and wholesale customer sales
|
$
90,677
|
|
$
82,653
|
|
9.71
%
|
FOR
THE THREE MONTHS ENDED JUNE
30,
|
|||
2006
|
2005
|
||
Cooling
degree-days
|
|||
Increase
from normal
|
19.60
%
|
7.57%
|
|
Increase
from prior year
|
11.18
%
|
5.57%
|
FOR
THE THREE MONTHS ENDED JUNE
30,
|
||||||||||||
FAVORABLE/(UNFAVORABLE)
|
||||||||||||
(THOUSANDS)
|
2006
|
2005
|
VARIANCE
|
CHANGE
|
||||||||
Operating
revenue
|
||||||||||||
Other
operations
|
$
|
1
|
$
|
28
|
$
|
(27
|
)
|
(96.43
|
)%
|
|||
Affiliate
revenue
|
1,138
|
1,523
|
(385
|
)
|
(25.28
|
)%
|
||||||
Operating
revenue
|
1,139
|
1,551
|
(412
|
)
|
(26.56
|
)%
|
||||||
Operating
expenses
|
||||||||||||
Other
operations
|
1,399
|
1,933
|
534
|
27.63
|
%
|
|||||||
Maintenance
|
537
|
666
|
129
|
19.37
|
%
|
|||||||
Depreciation
|
78
|
79
|
1
|
1.27
|
%
|
|||||||
Taxes
other than income taxes
|
65
|
69
|
4
|
5.80
|
%
|
|||||||
Total
operating expenses
|
2,079
|
2,747
|
668
|
24.32
|
%
|
|||||||
Operating
loss
|
$
|
(940
|
)
|
$
|
(1,196
|
)
|
$
|
256
|
21.40
|
%
|
||
Equity
income from investees
|
$
|
15,283
|
$
|
11,047
|
$
|
4,236
|
38.35
|
%
|
||||
Interest
charges
|
$
|
4,645
|
$
|
3,752
|
$
|
(893
|
)
|
(23.80
|
)%
|
|||
Federal
and state income tax
expense
|
$
|
4,779
|
$
|
2,510
|
$
|
(2,269
|
)
|
(90.40
|
)%
|
|||
Loss
from discontinued operations
|
$
|
(103
|
)
|
$
|
(72
|
)
|
$
|
(31
|
)
|
(43.06
|
)%
|
|
Net
income
|
$
|
4,814
|
$
|
3,512
|
$
|
1,302
|
37.07
|
%
|
Cleco Consolidated | |||||||||||||
FOR
THE SIX MONTHS ENDED JUNE
30,
|
|||||||||||||
FAVORABLE/(UNFAVORABLE)
|
|||||||||||||
(THOUSANDS)
|
2006
|
2005
|
VARIANCE
|
CHANGE
|
|||||||||
Operating
revenue, net
|
$
|
474,370
|
$
|
366,224
|
$
|
108,146
|
29.53
|
%
|
|||||
Operating
expenses
|
418,979
|
319,484
|
(99,495
|
)
|
(31.14
|
)%
|
|||||||
Operating
income
|
$
|
55,391
|
$
|
46,740
|
$
|
8,651
|
18.51
|
%
|
|||||
Interest
income
|
$
|
4,435
|
$
|
1,851
|
$
|
2,584
|
139.60
|
%
|
|||||
Equity
income from investees
|
$
|
15,606
|
$
|
20,873
|
$
|
(5,267
|
)
|
(25.23
|
)%
|
||||
Interest
charges
|
$
|
21,860
|
$
|
22,455
|
$
|
595
|
2.65
|
%
|
|||||
Net
income applicable to common stock
|
$
|
34,478
|
$
|
29,145
|
$
|
5,333
|
18.30
|
%
|
§ |
higher
base revenue,
|
§ |
favorable
customer credit adjustments,
|
§ |
lower
maintenance expense, and
|
§ |
higher
interest income.
|
§ |
higher
non-recoverable fuel and power
purchased,
|
§ |
higher
depreciation expense,
|
§ |
higher
other taxes,
|
§ |
absence
of the gain on the sale of certain distribution assets,
and
|
§ |
higher
interest charges.
|
FOR
THE SIX MONTHS ENDED JUNE
30,
|
||||||||||||
FAVORABLE/(UNFAVORABLE)
|
||||||||||||
(THOUSANDS)
|
2006
|
2005
|
VARIANCE
|
CHANGE
|
||||||||
Operating
revenue
|
||||||||||||
Base
|
$
|
158,575
|
$
|
149,444
|
$
|
9,131
|
6.11
|
%
|
||||
Fuel
cost recovery
|
293,700
|
197,268
|
96,432
|
48.88
|
%
|
|||||||
Electric
customer credits
|
4,382
|
(471
|
)
|
4,853
|
*
|
|||||||
Other
operations
|
14,432
|
15,115
|
(683
|
)
|
(4.52
|
)%
|
||||||
Affiliate
revenue
|
24
|
15
|
9
|
60.00
|
%
|
|||||||
Intercompany
revenue
|
1,000
|
976
|
24
|
2.46
|
%
|
|||||||
Operating
revenue, net
|
472,113
|
362,347
|
109,766
|
30.29
|
%
|
|||||||
Operating
expenses
|
||||||||||||
Fuel
used for electric generation
- recoverable
|
101,575
|
61,350
|
(40,225
|
)
|
(65.57
|
)%
|
||||||
Power
purchased for utility customers
- recoverable
|
192,242
|
133,859
|
(58,383
|
)
|
(43.62
|
)%
|
||||||
Non-recoverable
fuel and power
purchased
|
12,022
|
10,279
|
(1,743
|
)
|
(16.96
|
)%
|
||||||
Other
operations
|
39,306
|
39,351
|
45
|
0.11
|
%
|
|||||||
Maintenance
|
18,938
|
21,350
|
2,412
|
11.30
|
%
|
|||||||
Depreciation
|
30,526
|
29,059
|
(1,467
|
)
|
(5.05
|
)%
|
||||||
Taxes
other than income taxes
|
19,623
|
18,242
|
(1,381
|
)
|
(7.57
|
)%
|
||||||
Gain
on sales of assets
|
(68
|
)
|
(2,206
|
)
|
(2,138
|
)
|
(96.92
|
)%
|
||||
Total
operating expenses
|
414,164
|
311,284
|
(102,880
|
)
|
(33.05
|
)%
|
||||||
Operating
income
|
$
|
57,949
|
$
|
51,063
|
$
|
6,886
|
13.49
|
%
|
||||
Interest
income
|
$
|
4,129
|
$
|
1,144
|
$
|
2,985
|
260.93
|
%
|
||||
Interest
charges
|
$
|
17,904
|
$
|
13,506
|
$
|
(4,398
|
)
|
(32.56
|
)%
|
|||
Federal
and state income taxes
|
$
|
14,859
|
$
|
15,456
|
$
|
597
|
3.86
|
%
|
||||
Net
income
|
$
|
30,921
|
$
|
24,934
|
$
|
5,987
|
24.01
|
%
|
||||
*Not
meaningful
|
FOR
THE SIX MONTHS ENDED JUNE
30,
|
|||||
(MILLION
kWh)
|
2006
|
|
2005
|
|
FAVORABLE/
(UNFAVORABLE)
|
Electric
sales
|
|
|
|
|
|
Residential
|
1,570
|
|
1,541
|
|
1.88
%
|
Commercial
|
878
|
|
843
|
|
4.15
%
|
Industrial
|
1,417
|
|
1,386
|
|
2.24
%
|
Other
retail
|
279
|
|
279
|
|
-
|
Unbilled
|
141
|
|
131
|
|
7.63
%
|
Total
retail
|
4,285
|
|
4,180
|
|
2.51
%
|
Sales
for resale
|
519
|
|
385
|
|
34.81
%
|
Total
retail and wholesale customer sales
|
4,804
|
|
4,565
|
|
5.24
%
|
|
FOR
THE SIX MONTHS ENDED JUNE
30,
|
||||
(THOUSANDS)
|
2006 |
|
2005 |
|
FAVORABLE/
(UNFAVORABLE)
|
Electric
sales
|
|
|
|
|
|
Residential
|
$
69,974
|
|
$
66,578
|
|
5.10
%
|
Commercial
|
35,780
|
|
33,834
|
|
5.75
%
|
Industrial
|
27,660
|
|
26,623
|
|
3.90
%
|
Other
retail
|
11,550
|
|
11,354
|
|
1.73
%
|
Unbilled
|
5,088
|
|
4,379
|
|
16.19
%
|
Total
retail
|
150,052
|
|
142,768
|
|
5.10
%
|
Sales
for resale
|
8,523
|
|
6,676
|
|
27.67
%
|
Total
retail and wholesale customer sales
|
$
158,575
|
|
$
149,444
|
|
6.11
%
|
FOR
THE SIX MONTHS ENDED JUNE
30,
|
|||
2006
|
2005
|
||
Cooling
degree-days
|
|||
Increase
from normal
|
22.31
%
|
9.84
%
|
|
Increase
from prior year
|
11.70
%
|
5.79
%
|
|
Heating
degree-days
|
|||
Decrease
from normal
|
(32.46)%
|
(28.97)%
|
|
Decrease
from prior year
|
(3.21)%
|
(21.32)%
|
FOR
THE SIX MONTHS ENDED JUNE
30,
|
|||||||||||||
FAVORABLE/(UNFAVORABLE)
|
|||||||||||||
(THOUSANDS)
|
2006
|
2005
|
VARIANCE
|
CHANGE
|
|||||||||
Operating
revenue
|
|||||||||||||
Other
operations
|
$
|
5
|
$
|
40
|
$
|
(35
|
)
|
(87.50
|
)%
|
||||
Affiliate
revenue
|
2,188
|
3,016
|
(828
|
)
|
(27.45
|
)%
|
|||||||
Operating
revenue
|
2,193
|
3,056
|
(863
|
)
|
(28.24
|
)%
|
|||||||
Operating
expenses
|
|||||||||||||
Other
operations
|
2,523
|
4,121
|
1,598
|
38.78
|
%
|
||||||||
Maintenance
|
1,040
|
1,337
|
297
|
22.21
|
%
|
||||||||
Depreciation
|
156
|
159
|
3
|
1.89
|
%
|
||||||||
Taxes
other than income taxes
|
122
|
191
|
69
|
36.13
|
%
|
||||||||
Total
operating expenses
|
3,841
|
5,808
|
1,967
|
33.87
|
%
|
||||||||
Operating
loss
|
$
|
(1,648
|
)
|
$
|
(2,752
|
)
|
$
|
1,104
|
40.12
|
%
|
|||
Equity
income from investees
|
$
|
15,681
|
$
|
20,966
|
$
|
(5,285
|
)
|
(25.21
|
)%
|
||||
Interest
charges
|
$
|
8,876
|
$
|
7,233
|
$
|
(1,643
|
)
|
(22.72
|
)%
|
||||
Federal
and state income tax expense
|
$
|
3,237
|
$
|
4,500
|
$
|
1,263
|
28.07
|
%
|
|||||
Loss
from discontinued operations
|
$
|
(190
|
)
|
$
|
(205
|
)
|
$
|
15
|
7.32
|
%
|
|||
Net
income
|
$
|
1,727
|
$
|
6,268
|
$
|
(4,541
|
)
|
(72.45
|
)%
|
AT
JUNE 30, 2006
|
||||||||||||
REDUCTIONS
TO THE
|
||||||||||||
AMOUNT
AVAILABLE
|
||||||||||||
TO
BE DRAWN ON
|
||||||||||||
FACE
|
NET
|
CLECO
CORPORATION’S
|
||||||||||
(THOUSANDS)
|
AMOUNT
|
REDUCTIONS
|
AMOUNT
|
CREDIT
FACILITY
|
||||||||
Cleco
Corporation guarantee issued to Entergy companies for performance
obligations of Perryville
|
$
|
277,400
|
$
|
135,000
|
$
|
142,400
|
$
|
328
|
||||
Cleco
Corporation guarantees issued to purchasers of the assets of Cleco
Energy
|
1,400
|
-
|
1,400
|
1,400
|
||||||||
Cleco
Corporation obligations under standby letter of credit issued to
Evangeline Tolling Agreement counterparty
|
15,000
|
-
|
15,000
|
15,000
|
||||||||
Cleco
Corporation guarantee issued to Central Mississippi Generating Co.
on
behalf of Attala
|
727
|
-
|
727
|
727
|
||||||||
Cleco
Corporation guarantee issued to Entergy Mississippi, Inc. on behalf
of
Attala
|
500
|
-
|
500
|
500
|
||||||||
Cleco
Power obligations under standby letter of credit issued to Louisiana
Department of Labor
|
525
|
-
|
525
|
-
|
||||||||
Cleco
Power obligations under Lignite Mining Agreement
|
14,586
|
-
|
14,586
|
-
|
||||||||
Total
|
$
|
310,138
|
$
|
135,000
|
$
|
175,138
|
$
|
17,955
|
AT
JUNE 30, 2006
|
|||||||||||||||
AMOUNT
OF COMMITMENT EXPIRATION
PER PERIOD
|
|||||||||||||||
NET
|
MORE
|
||||||||||||||
AMOUNT
|
LESS
THAN
|
THAN
|
|||||||||||||
(THOUSANDS)
|
COMMITTED
|
ONE
YEAR
|
1-3
YEARS
|
4-5
YEARS
|
5
YEARS
|
||||||||||
Guarantees
|
$
|
159,613
|
$
|
727
|
$
|
-
|
$
|
101,400
|
$
|
57,486
|
|||||
Standby
letters of credit
|
15,525
|
525
|
-
|
-
|
15,000
|
||||||||||
Total
commercial commitments
|
$
|
175,138
|
$
|
1,252
|
$
|
-
|
$
|
101,400
|
$
|
72,486
|
FOR
THE THREE
MONTHS
ENDED
JUNE 30, 2006
|
|||||
(THOUSANDS)
|
HIGH
|
LOW
|
AVERAGE
|
||
Cleco
Power
|
$
608.3
|
$
477.2
|
$
525.9
|
FOR
THE SIX
MONTHS
ENDED
JUNE 30, 2006
|
AT
JUNE 30,
|
AT
DECEMBER 31,
|
|||||||
(THOUSANDS)
|
HIGH
|
LOW
|
AVERAGE
|
2006
|
2005
|
||||
Cleco
Power
|
$
608.3
|
$
442.0
|
$
528.8
|
$
529.7
|
$
442.0
|
(a)
|
The
Annual Meeting of Shareholders of Cleco Corporation
was held April 21, 2006, in Alexandria,
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
21,
2006.
|
CLASS
III
DIRECTORS
|
FOR
|
WITHHELD
|
BROKER
NON-VOTES
|
J.
Patrick Garrett
|
41,339,924
|
1,322,915
|
0
|
F.
Ben James, Jr.
|
41,331,786
|
1,331,053
|
0
|
Elton
R. King
|
41,709,080
|
953,759
|
0
|
FOR
|
AGAINST
|
ABSTAIN
|
BROKER
NON-VOTES
|
41,659,661
|
845,239
|
157,939
|
0
|
CLECO
CORPORATION
|
|
3(a)
|
Bylaws
of Cleco Corporation (Revised effective April 21, 2006)
|
10.1
|
First
Amended and Restated Credit Agreement dated as of June 2, 2006 among
Cleco
Corporation, The Bank of New York, as Administrative Agent, and the
lenders and other parties thereto
|
12(a)
|
Computation
of Ratios of Earnings to Fixed Charges and of Earnings to Combined
Fixed
Charges and Preferred Stock Dividends for the three-, six-, and
twelve-month periods ended June 30, 2006, for Cleco
Corporation
|
31(a)
|
CEO
Certification in accordance with section 302 of the Sarbanes-Oxley
Act of
2002
CFO
Certification in accordance with section 302 of the Sarbanes-Oxley
Act of
2002
|
32(a)
|
CEO
and CFO Certification pursuant to section 906 of the Sarbanes-Oxley
Act of
2002
|
CLECO
POWER
|
|
10.2
|
First
Amended and Restated Credit Agreement dated as of June 2, 2006 among
Cleco
Power LLC, The Bank of New York, as Administrative Agent, and the
lenders
and other parties thereto
|
12(b)
|
Computation
of Ratios of Earnings to Fixed Charges for the three-, six-, and
twelve-month periods ended June 30, 2006, for Cleco Power
|
31(b)
|
CEO
Certification in accordance with section 302 of the Sarbanes-Oxley
Act of
2002
CFO
Certification in accordance with section 302 of the Sarbanes-Oxley
Act of
2002
|
32(b)
|
CEO
and CFO Certification pursuant to section 906 of the Sarbanes-Oxley
Act of
2002
|
CLECO
CORPORATION
|
|
(Registrant)
|
|
By: /s/
R. Russell
Davis
|
|
R.
Russell Davis
|
|
Vice
President and Chief Accounting
Officer
|
CLECO
POWER LLC
|
|
(Registrant)
|
|
By: /s/
R. Russell
Davis
|
|
R.
Russell Davis
|
|
Vice
President and Chief Accounting
Officer
|