Company: EAI
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0000065984-25-000012
Chunk: 421

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-02-18
Form: 10-K
Item: Item 7
Chunk 421
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 Subsidiaries’ plant is subject to mortgage liens.Customers may be required to make advance payments for construction of new utility plants to reimburse the Utility operating companies for costs that are not expected to be recovered through existing retail rates.  Under the regulatory framework, these payments are required to ensure the cost to serve a particular customer does not increase the utility rates charged to other utility customers.  These advance payments do not reduce the retail rate charged to the customer making the payment and do not create any additional obligation for the respective Utility operating company to provide electrical service beyond the general obligation to serve all customers in its service area.  Because the cost is fully reimbursed by the customer through the advance payment, the Utility operating 

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Table of ContentsEntergy Corporation and SubsidiariesNotes to Financial Statements

company does not earn a return or recover through retail rates the cost of utility plants reimbursed by these payments.  These advance payments are initially recorded as a non-current liability, which is then reduced by the costs incurred to construct the associated utility plant.  This results in Entergy and the Utility operating companies recording utility plant funded by customer advances at a net cost of zero, consistent with utility ratemaking treatment.  As of December 31, 2024 and 2023, Entergy and the Utility operating companies have customer advances for construction as follows:20242023(In Millions)Entergy$635 $292 Entergy Arkansas$166 $96 Entergy Louisiana$292 $115 Entergy Mississippi$113 $33 Entergy New Orleans$1 $1 Entergy Texas$63 $47 Electric plant includes the portion of Grand Gulf that was sold and leased back in a prior period.  For financial reporting purposes, this sale and leaseback arrangement is reported as a financing transaction.Net property, plant, and equipment (including property under lease and associated accumulated amortization) for Entergy by functional category, as of December 31, 2024 and 2023, is shown below:20242023 (In Millions)Production  Nuclear$8,024 $7,944 Other7,809 7,045 Transmission10,414 9,927 Distribution14,321 12,927 Other3,286 3,173 Construction work in progress3,209 2,110 Nuclear fuel766 708 Property, plant, and equipment - net (a)$47,829 $43,