Company: EAI
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0000065984-25-000012
Chunk: 598

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-02-18
Form: 10-K
Item: Item 7
Chunk 598
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idiariesNotes to Financial Statements

includes a deductible of $10 million plus an additional 10% of the amount of the loss in excess of $10 million, up to a total maximum deductible of $50 million.In addition, Waterford 3 and Entergy’s portion of Grand Gulf are also covered under NEIL’s Accidental Outage Coverage program.  Accidental outage coverage provides indemnification for the actual cost incurred in the event of an unplanned outage resulting from property damage covered under the NEIL Primary Property Insurance policy, subject to a deductible period.  The indemnification is based on market power prices at the time of the loss, actual costs incurred during the outage, and the respective limits of each nuclear plant.  After the deductible period has passed, weekly indemnities for an unplanned nuclear or non-nuclear outage, covered under NEIL’s Accidental Outage Coverage program, would be paid according to the amounts listed below:•100% of the weekly indemnity for each week for the initial payment period of 52 weeks for nuclear and non-nuclear loss; then•80% of the weekly indemnity for each week for the final payment period of 110 weeks for nuclear loss only; or•60% of the weekly indemnity for each week for the final payment period of 52 weeks for non-nuclear loss only.Under the property damage and accidental outage insurance programs, all NEIL insured plants could be subject to assessments should losses exceed the accumulated funds available from NEIL.  The assessments are subject to change based on results of NEIL underwriting.  The current maximum amounts of such possible assessments per occurrence are as follows: Assessments (In Millions)Entergy Arkansas$20.0Entergy Louisiana$37.6Entergy Mississippi$0.1Entergy New Orleans$0.1Entergy TexasN/ASystem Energy$14.4NRC regulations provide that the proceeds of this insurance must be used, first, to render the reactor safe and stable, and second, to complete decontamination operations.  Only after proceeds are dedicated for such use and regulatory approval is secured would any remaining proceeds be made available for the benefit of plant owners or their creditors.In the event that one or more acts of terrorism causes property damage from a nuclear event under one or more or all nuclear insurance policies issued by NEIL (including, but not limited to, those described above) within 12 months from the date the first property damage occurs, the maximum recovery under all such