Company: EAI
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0000065984-25-000132
Chunk: 54

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-10-31
Form: 10-Q
Item: Item 3
Chunk 54
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,250)— (51,250)Distributions to LURC(873)— — (873)Other— (14)— (14)Balance at September 30, 2025$42,854 $11,851,780 $48,737 $11,943,371 See Notes to Financial Statements.

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ENTERGY MISSISSIPPI, LLC AND SUBSIDIARIES

MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS

Results of Operations

Net Income

Third Quarter 2025 Compared to Third Quarter 2024

Net income increased $33.7 million primarily due to $15 million of liquidated damages recognized in third quarter 2025 resulting from a counterparty’s termination of a purchased power agreement, higher other income, higher volume/weather, and higher retail electric price, partially offset by higher interest expense and higher other operation and maintenance expenses.

Nine Months Ended September 30, 2025 Compared to Nine Months Ended September 30, 2024

Net income increased $57.8 million primarily due to higher retail electric price, higher other income,  higher volume/weather, and $15 million of liquidated damages recognized in third quarter 2025 resulting from a counterparty’s termination of a purchased power agreement.  The increase was partially offset by higher other operation and maintenance expenses, a regulatory charge, recorded in the first quarter 2025, to reflect an adjustment to the grid modernization over/under recovery deferral balance, higher interest expense, and higher taxes other than income taxes.

Operating Revenues

Third Quarter 2025 Compared to Third Quarter 2024

Following is an analysis of the change in operating revenues comparing the third quarter 2025 to the third quarter 2024:

Amount(In Millions)2024 operating revenues$508.2 Fuel, rider, and other revenues that do not significantly affect net income32.7 Purchased power agreement termination proceeds15.0 Volume/weather12.5 Retail electric price8.7 2025 operating revenues$577.1 

Entergy Mississippi’s results include revenues from rate mechanisms designed to recover fuel, purchased power, and other costs such that the revenues and expenses associated with these items generally offset and do not affect net income.  “Fuel, rider, and other revenues that do not significantly affect net income” includes the revenue variance associated with these items.

The purchased power agreement termination proceeds variance represents $15 million of liquidated damages recognized in third quarter