Company: EAI
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0000065984-25-000132
Chunk: 361

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-10-31
Form: 10-Q
Item: Item 1
Chunk 361
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 liabilities in active markets;–quoted prices for identical assets or liabilities in inactive markets;–inputs other than quoted prices that are observable for the asset or liability; or–inputs that are derived principally from or corroborated by observable market data by correlation or other means.Level 2 consists primarily of individually-owned debt instruments and gas swaps valued using observable inputs.•Level 3 - Level 3 inputs are pricing inputs that are generally less observable or unobservable from objective sources.  These inputs are used with internally developed methodologies to produce management’s best estimate of fair value for the asset or liability.  Level 3 consists primarily of financial transmission rights.The values of financial transmission rights are based on unobservable inputs, including estimates of congestion costs in MISO between applicable generation and load pricing nodes based on the 50th percentile of historical prices.  They are classified as Level 3 assets and liabilities.  The valuations of these assets and liabilities are performed by the Office of Corporate Risk Oversight.  The values are calculated internally and verified against the data published by MISO.  Entergy’s Accounting group reviews these valuations for reasonableness, with the assistance of others within the organization with knowledge of the various inputs and assumptions used in the valuation.  The Office of Corporate Risk Oversight reports to the Vice President and Treasurer.  The Accounting group reports to the Chief Accounting Officer.The following tables set forth, by level within the fair value hierarchy, Entergy’s assets and liabilities that are accounted for at fair value on a recurring basis as of September 30, 2025 and December 31, 2024.  The 

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Table of ContentsEntergy Corporation and SubsidiariesNotes to Financial Statements

assessment of the significance of a particular input to a fair value measurement requires judgment and may affect placement within the fair value hierarchy levels.2025Level 1Level 2Level 3Total(In Millions)Assets:Temporary cash investments$1,434 $— $— $1,434 Decommissioning trust funds (a):Equity securities54 — — 54 Debt securities899 1,256 — 2,155 Common trusts (b)3,984 Securitization recovery trust account9 — — 9 Storm reserve escrow accounts307 — — 307 Financial transmission rights— — 30 30 $2,703 $1,256 $30 $7,973 Liabilities