Company: EAI
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0000065984-25-000132
Chunk: 300

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-10-31
Form: 10-Q
Item: Item 7
Chunk 300
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ergy New Orleans - 19.4%) as approved by the FERC under an amended Unit Power Sales Agreement.  The amended Unit Power Sales Agreement removed Entergy Louisiana from the entitlement to purchase power from Grand Gulf and thus on October 1, 2025, the bridge PPA between Entergy Louisiana and Entergy Mississippi terminated.  In addition, effective October 1, 2025, System Energy, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, and Entergy New Orleans terminated the Availability Agreement, and, immediately thereafter, System Energy, Entergy Arkansas, Entergy Mississippi, and Entergy New Orleans entered into a new Availability Agreement with allocation percentages conforming to their entitlement percentages under the amended Unit Power Sales Agreement.  See Note 2 to the financial statements herein and in the Form 10-K for discussion of the System Energy settlement with the LPSC.Exclusivity Agreement with Major VendorEntergy entered into an exclusivity agreement with a major vendor to manufacture power island equipment (PIE) and combustion turbines (CT) for combustion turbine generator set frames larger than 400 MWs.  The agreement guarantees Entergy one manufacturing slot per quarter for the shorter of a five-year period or until Entergy fulfills its minimum commitment.  The agreement was amended in third quarter 2025, updating the minimum order of 15 sets of PIE and two CTs to a minimum order of 21 sets of PIE and two CTs during that time period.  The commitments are fully transferable to any of the Utility operating companies.  Cancellation or failure to purchase the minimum commitment amounts will result in a charge.If any of the Utility operating companies purchases any CTs within the scope of the agreement from another supplier (except as permitted under the agreement), then the vendor has the right to terminate all or a portion of the agreement.  In the event of such termination, the Utility operating company would then be obligated to pay 50% of the CT base price for each PIE or CT not yet ordered.  The agreement does not establish final pricing and delivery dates of purchases that will go towards meeting the commitments under the agreement.  Such terms shall be agreed to in separate agreements.

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Table of ContentsEntergy Corporation and SubsidiariesNotes to Financial Statements

NOTE 2.  RATE AND REGULATORY MATTERS (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy)

Regulatory Assets and Regulatory Liabilities