Company: EAI
Filing Date: 2025-08-01
Form Type: 10-Q
Source: 0000065984-25-000087
Chunk: 172

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-08-01
Form: 10-Q
Item: Item 4
Chunk 172
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2024 related to operational performance, customer service, and organizational health initiatives.  The decrease was partially offset by an increase of $1.8 million in energy efficiency expenses primarily due to higher energy efficiency costs, partially offset by the timing of recovery from customers.  See Note 2 to the financial statements in the Form 10-K for discussion of the formula rate plan filing.

Depreciation and amortization expenses increased primarily due to additions to plant in service.

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

Other regulatory charges (credits) - net includes a regulatory charge of $78.5 million, recorded in first quarter 2024, primarily to reflect a settlement in principle between Entergy New Orleans and the City Council in April 2024 for additional sharing with customers of income tax benefits from the resolution of the 2016-2018 IRS audit.  See Note 3 to the financial statements in the Form 10-K for discussion of the April 2024 settlement in principle and discussion of the resolution of the 2016-2018 IRS audit.

Other income (deductions) decreased primarily due to the deferral of certain other postretirement benefit expense credits, effective September 2024, in accordance with the terms of the 2024 formula rate plan filing.  See Note 2 to the financial statements in the Form 10-K for discussion of the 2024 formula rate plan filing and Note 11 to the financial statements in the Form 10-K for discussion of the other postretirement benefits accounting treatment.

Interest expense increased primarily due to an increase of $6.6 million in carrying costs on regulatory liability balances.

Income Taxes

The effective income tax rates were 24.1% for the second quarter 2025 and 23.9% for the six months ended June 30, 2025.  The differences in the effective income tax rates for the second quarter 2025 and the six months ended June 30, 2025 versus the federal statutory rate of 21% were primarily due to the accrual for state income taxes, partially offset by certain book and tax differences related to utility plant items.

The effective income tax rates were 26.2% for the second quarter 2024 and 29.8% for the six months ended June 30, 2024.  The differences in the effective income tax rates for the second quarter 2024 and the six months ended June 30,