Company: EAI
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0000065984-25-000132
Chunk: 45

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-10-31
Form: 10-Q
Item: Item 3
Chunk 45
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 fund the minor storm reserve account.  In that filing, Entergy Louisiana proposed to delay repayment of certain shorter-term first mortgage bonds that were issued to finance storm restoration costs until the costs could be securitized, and to invest the funds that otherwise would be used to repay those bonds in the money pool to take advantage of the spread between prevailing interest rates on investments in the money pool and the interest rates on the bonds.  The LPSC approved Entergy Louisiana’s requested relief in June 2023.  In November 2024, Entergy Louisiana submitted a filing to the LPSC requesting that the LPSC review Entergy Louisiana’s computation of the COVID-19 regulatory asset as well as Entergy Louisiana’s proposal to offset the regulatory asset against the net interest earned on the short-term debt funds, resulting in no increased costs to customers.  In granting Entergy Louisiana’s requested relief in June 2023, the LPSC ordered that any amount of earnings exceeding the amount of the COVID-19 regulatory asset be transferred to Entergy Louisiana’s storm reserve escrow account.  In May 2025 the LPSC staff filed direct testimony finding that Entergy Louisiana had complied with the relevant orders and recommending approval of the requested treatment.  In June 2025, Entergy Louisiana and the LPSC staff filed a joint motion requesting a hearing for the admission of an uncontested stipulated settlement agreement in the matter.  A settlement hearing took place in July 2025.  The LPSC voted to approve the settlement at its September 2025 meeting and issued an order accepting the settlement in October 2025.  Pursuant to the terms of the approved settlement, in third quarter 2025 Entergy Louisiana offset the COVID-19 regulatory asset with a regulatory liability for the deferred earnings related to certain low interest debt, as described above.

Storm Cost Recovery

In March 2025, Entergy Louisiana filed an application asking that the LPSC issue an order establishing a presumption, in future proceedings involving Entergy Louisiana’s petition for a financing order allowing securitization of storm costs, that the LPSC will enter a decision on the request for a financing order within 120 days from the date of the filing of the petition, while preserving the LPSC’s jurisdiction to complete its full prudence review.  The filing was rejected on procedural grounds.  In June 2025 the LPSC approved a directive providing, among other things, that any utility seeking securitization for storm costs this year must file a proposed