Company: EAI
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0000065984-25-000012
Chunk: 345

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-02-18
Form: 10-K
Item: Item 1A
Chunk 345
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 proposed amendments with an 

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Table of ContentsSystem Energy Resources, Inc.Management’s Financial Discussion and Analysis

effective date of December 1, 2021, subject to refund pending the outcome of the settlement and/or hearing procedures.  In August 2023 the FERC chief ALJ terminated settlement procedures and designated a presiding ALJ to oversee hearing procedures.  Testimony was filed by the parties from October 2023 through April 2024, and the hearing concluded in June 2024.

In September 2024 the presiding ALJ issued an initial decision recommending that the FERC approve inclusion of a line item in rate base for prepaid and accrued pension costs; however, the presiding ALJ did not agree with System Energy’s proposed methodology to calculate the value of the prepaid and accrued pension cost input.  Instead, the presiding ALJ recommended limiting System Energy’s recovery to the prepaid and accrued pension costs that were incurred beginning in 2015 and later.

System Energy disputes the presiding ALJ's determination concerning the methodology used to calculate the prepaid and accrued pension input, and System Energy filed exceptions to these rulings in October 2024.  In October 2024, the LPSC, the APSC, and the FERC trial staff filed separate briefs on exceptions; these parties generally argue that the presiding ALJ should have rejected System Energy’s filing entirely, rather than limit System Energy’s recovery of the prepaid and accrued pension costs.  Later in October 2024, System Energy, the LPSC, the APSC, and the FERC trial staff filed separate briefs opposing exceptions.

If the ALJ’s determination is affirmed by the FERC, System Energy estimates refunds, including interest through December 31, 2024, of approximately $16 million to $21 million would be owed.  The ALJ's initial decision is not binding on the FERC and is an interim step in the hearing process.  No refunds will be owed in connection with this proceeding and no changes to System Energy’s pension cost recovery methodology will be implemented unless and until the FERC requires them in a final order.  This proceeding is not covered by the global settlements described above.

Nuclear Matters

System Energy owns and, through an affiliate, operates the Grand Gulf nuclear generating plant and is, therefore, subject to the risks related to such ownership and operation.  These include risks related to: the use, storage, and handling and disposal of high-level and low-level radioactive materials; the substantial