Company: EAI
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0000065984-25-000046
Chunk: 240

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-05-01
Form: 10-Q
Item: Item 1
Chunk 240
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 and nuclear decommissioning trust earnings plus asset retirement obligation-related costs collected in revenue.

Other income decreased primarily due to changes in decommissioning trust fund activity, including portfolio rebalancing of decommissioning trust funds in first quarter 2024.

Interest expense increased primarily due to the issuances of $400 million of 5.75% Series mortgage bonds and $400 million of 5.45% Series mortgage bonds, each in May 2024.  The increase was partially offset by the repayment of $375 million of 3.70% Series mortgage bonds in June 2024.

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Table of ContentsEntergy Arkansas, LLC and SubsidiariesManagement’s Financial Discussion and Analysis

Income Taxes

The effective income tax rate was 21% for the first quarter 2025.  The accrual for state income taxes was offset by certain book and tax differences related to utility plant items and the amortization of excess state accumulated deferred income taxes as a result of tax rate changes.

The effective income tax rate was 24.8% for the first quarter 2024.  The difference in the effective income tax rate for the first quarter 2024 versus the federal statutory rate of 21% was primarily due to certain book and tax differences related to utility plant items and the accrual for state income taxes, partially offset by the amortization of state accumulated deferred income taxes as a result of tax rate changes.

Income Tax Legislation and Regulation

See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS - Income Tax Legislation and Regulation” in the Form 10-K for discussion of income tax legislation and regulation.

Liquidity and Capital Resources

Cash Flow

Cash flows for the three months ended March 31, 2025 and 2024 were as follows:

 20252024 (In Thousands)Cash and cash equivalents at beginning of period$4,747 $3,632 Net cash provided by (used in):Operating activities257,177 287,251 Investing activities(161,111)(371,389)Financing activities(45,753)126,073 Net increase in cash and cash equivalents50,313 41,935 Cash and cash equivalents at end of period$55,060 $45,567 

Operating Activities

Net cash flow provided by operating activities decreased $30.1 million for the three months ended March 31, 2025 compared to the three months ended March 31, 2024 primarily due to:

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