Company: EAI
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0000065984-25-000132
Chunk: 317

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-10-31
Form: 10-Q
Item: Item 7
Chunk 317
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 Agreement in connection with the foregoing divestiture.  In July 2025 the FERC issued an order accepting the Federal Power Act Section 205 application to remove Entergy Louisiana as a party to the Unit Power Sales Agreement.  As a result of the order, the Unit Power Sales Agreement entitlement percentages of the remaining purchasers were permanently modified to exclude Entergy Louisiana effective October 2025.  The FERC also issued an order dismissing the Federal Power Act Section 203 application based on lack of jurisdiction.  See Note 1 to the financial statements herein for additional information regarding the amended Unit Power Sales Agreement.Storm Cost Recovery Filings with Retail RegulatorsSee Note 2 to the financial statements in the Form 10-K for discussion regarding storm cost recovery filings.  The following is an update to that discussion.Entergy LouisianaHurricane FrancineIn September 2024, Hurricane Francine caused damage to the areas served by Entergy Louisiana.  The storm resulted in widespread power outages, primarily due to damage to distribution infrastructure as a result of strong winds and heavy rain, and the loss of sales during the power outages.In December 2024, and subsequently amended in an errata filed in February 2025, Entergy Louisiana submitted an application to the LPSC seeking a determination that approximately $183.6 million in storm restoration costs associated with Hurricane Francine were reasonable and necessary and, therefore, eligible for recovery from customers, as well as approval to recover approximately $3.6 million in certain carrying costs from customers.  In February 2025, Entergy Louisiana filed a second interim rate adjustment for the 2023 test year reflecting a revenue increase of $17.8 million from funds approved by the LPSC (on an interim basis) for Hurricane Francine recovery costs.  The second interim rate adjustment was implemented with the first billing cycle of March 2025.  See further discussion of the 2023 formula rate plan filing above.  Also in February 2025, Entergy Louisiana withdrew $33.5 million from its funded storm reserves.  In June 2025 the LPSC staff filed direct testimony.  The LPSC staff recommended approval of Entergy Louisiana’s as-requested storm restoration costs with the exception of approximately $10.6 million, comprised primarily of estimates of mutual assistance invoices that had not yet been received at the time of filing and that ultimately exceeded the actual amounts invoiced, as well as certain incentive compensation, and $1.8 million associated with