Company: EAI
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0000065984-25-000012
Chunk: 176

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-02-18
Form: 10-K
Item: Item 1A
Chunk 176
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 construction due to higher construction work in progress in 2024, including the Driver Solar facility and the Walnut Bend Solar facility projects.

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, and the issuance of $300 million of 5.30% Series mortgage bonds in August 2023.  The increase was partially offset by:

•the repayment of $375 million of 3.70% Series mortgage bonds in June 2024;

•the repayment of $250 million of 3.05% Series mortgage bonds in June 2023; and

•an increase in the allowance for borrowed funds used during construction due to higher construction work in progress in 2024, including the Driver Solar facility and the Walnut Bend Solar facility projects.

The effective income tax rates were 18.9% for 2024 and (33.3%) for 2023.  See Note 3 to the financial statements for a reconciliation of the federal statutory rate of 21% to the effective income tax rates and for additional discussion regarding income taxes.

320

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

2023 Compared to 2022

See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS - Results of Operations” in Item 7 of Entergy Arkansas’s Annual Report on Form 10-K for the year ended December 31, 2023, filed with the SEC on February 23, 2024, for discussion of results of operations for 2023 compared to 2022.

Income Tax Legislation and Regulation

See the “Income Tax Legislation and Regulation” section of Entergy Corporation and Subsidiaries Management’s Financial Discussion and Analysis for discussion of income tax legislation and regulation.

Liquidity and Capital Resources

Cash Flow

Cash flows for the years ended December 31, 2024, 2023, and 2022 were as follows:

 202420232022 (In Thousands)Cash and cash equivalents at beginning of period$3,632 $5,278 $12,915 Net cash provided by (used in):Operating activities978,680 941,021 699,732 Investing activities(1,732,630)(1,032,952)(852,794)Financing activities755,065 90,285 145,