Company: EAI
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0000065984-25-000012
Chunk: 359

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-02-18
Form: 10-K
Item: Item 7
Chunk 359
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 includes the revenue variance associated with these items.

The retail one-time bill credit represents the disbursement of settlement proceeds in the form of a one-time bill credit provided to Entergy Arkansas’s retail customers during the August 2024 billing cycle through the Grand Gulf credit rider as a result of the System Energy settlement with the APSC.  There is no effect on net income because Entergy previously recorded a regulatory liability at the time of the global black box settlement reached between System Energy and the MPSC in June 2022.  See Note 2 to the financial statements for discussion of the System Energy settlements with the APSC and the MPSC and discussion of Entergy Arkansas’s Grand Gulf credit rider.

Storm restoration carrying costs, representing the equity component of storm restoration carrying costs, includes $31 million recognized by Entergy Louisiana as part of its March 2023 storm cost securitization and $5 million recognized by Entergy New Orleans as part of the City Council’s approval of the Entergy New Orleans storm cost certification report in December 2023.  See Note 2 to the financial statements for discussion of the storm cost securitizations.

The volume/weather variance is primarily due to an increase in weather-adjusted residential and commercial usage, partially offset by the effect of less favorable weather on residential and commercial sales.  The increase in weather-adjusted residential usage is the result of higher fixed charges, partially offset by lower volumetric rates, applied to lower usage.  Adding to this was an increase in industrial usage primarily due to an increase in demand from large industrial customers, primarily in the petroleum refining and chlor-alkali industries and from new customers in the technology industry.

The retail electric price variance is primarily due to:

•an increase in Entergy Arkansas’s formula rate plan rates effective January 2024;

•increases in Entergy Louisiana’s formula rate plan revenues, including increases in the distribution and transmission recovery mechanisms, effective September 2023 and September 2024;

•increases in Entergy Mississippi’s formula rate plan rates effective April 2024 and July 2024, including the implementation of the interim facilities rate adjustment effective over six months beginning in July 2024;

•increases in Entergy New Orleans’s formula rate plan rates effective September 2023 and September 2024; and

•an increase in Entergy Texas’s base rates effective June 2023 and the implementation of the distribution cost recovery factor rider effective with the first billing cycle in October 2024, partially offset by the implementation