Company: EAI
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0000065984-25-000046
Chunk: 214

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-05-01
Form: 10-Q
Item: Item 1
Chunk 214
---
, fuel-related expenses, and gas purchased for resale(a)$11Financial transmission rightsPurchased power expense(b)$492024Natural gas swapsFuel, fuel-related expenses, and gas purchased for resale(a)($6)Financial transmission rightsPurchased power expense(b)$53(a)Due to regulatory treatment, the natural gas swaps are marked-to-market through fuel, fuel-related expenses, and gas purchased for resale and then such amounts are simultaneously reversed and recorded as an offsetting regulatory asset or liability.  The gains or losses recorded as fuel expenses when the swaps are settled are recovered or refunded through fuel cost recovery mechanisms.

44

Table of ContentsEntergy Corporation and SubsidiariesNotes to Financial Statements

(b)Due to regulatory treatment, the changes in the estimated fair value of financial transmission rights for the Utility operating companies are recorded through purchased power expense and then such amounts are simultaneously reversed and recorded as an offsetting regulatory asset or liability.  The gains or losses recorded as purchased power expense when the financial transmission rights for the Utility operating companies are settled are recovered or refunded through fuel cost recovery mechanisms.The fair values of derivative instruments not designated as hedging instruments on the Registrant Subsidiaries’ balance sheets as of March 31, 2025 and December 31, 2024 are shown in the tables below.  Certain investments, including those not designated as hedging instruments, are subject to master netting agreements and are presented in the balance sheet on a net basis in accordance with accounting guidance for derivatives and hedging.InstrumentBalance Sheet LocationGross Fair Value (a)Offsetting Position (b)Net Fair Value (c) (d)Registrant(In Millions)2025Assets:Natural gas swapsPrepayments and other$8.4$—$8.4Entergy MississippiFinancial transmission rightsPrepayments and other$3.0$—$3.0Entergy ArkansasFinancial transmission rightsPrepayments and other$3.4$—$3.4Entergy LouisianaFinancial transmission rightsPrepayments and other$0.4$—$0.4Entergy New OrleansFinancial transmission rightsPrepayments and other$0.6($0.2)$0.4Entergy TexasLiabilities:Financial transmission rightsOther current liabilities($0.2)$0.3$0.1Entergy Mississippi

45

Table of ContentsEntergy Corporation and SubsidiariesNotes to Financial Statements

InstrumentBalance Sheet LocationGross Fair Value (a)Offsetting Position (b)Net Fair Value (c