Company: EAI
Filing Date: 2025-08-06
Form Type: S-3ASR
Source: 0001193125-25-174487
Chunk: 196

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-08-06
Form: S-3ASR
Chunk 196
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expiration date in 2044. We have approximately a 78.5% ownership interest and, from a sale and leaseback transaction, an 11.5% leasehold interest in Grand Gulf.

We sell the capacity and energy from our 90% interest in Grand Gulf exclusively to the Purchasing Operating Companies. These sales are made under a Unit Power
Sales Agreement among us and the Purchasing Operating Companies (the “UPSA”), which has been approved by the Federal Energy Regulatory Commission (the “FERC”). (See “Source of Revenue” below.) In 1990, Entergy
Operations, Inc. took over responsibility for operating Grand Gulf.

Source of Revenue

Our operating revenues are derived exclusively from the allocation of the capacity, energy and related costs associated with our 90% share of Grand Gulf
pursuant to the UPSA. Under that agreement, we agreed to sell all of our share of capacity and energy from Grand Gulf to the Purchasing Operating Companies in accordance with specified percentages as ordered by the FERC. Charges under the UPSA are
paid by the Purchasing Operating Companies in consideration for their respective entitlement to receive capacity and energy and are payable irrespective of the quantity of energy delivered so long as Grand Gulf remains in commercial operation.

For information with respect to these and other commitments and contingent obligations of the Purchasing Operating Companies, reference is made to “Grand
Gulf-Related Agreements” under Note 8, “Commitments and Contingencies” and “Filings with the MPSC (Entergy Mississippi) – – Grand Gulf Capacity Filing” under Note 2, “Rate and Regulatory
Matters,” in each case, of the Notes to Financial Statements in our Annual Report on Form 10-K for the year ended December 31, 2024 (the “2024 Form
10-K”), and “ - System Energy Settlement with the LPSC” under Note 2, “Rate and Regulatory Matters,” of the Notes to Financial Statements in our
Quarterly Report on Form 10-Q for the quarter ended June 30, 2025 (the “2025 Second Quarter Form 10-Q”).

2

The UPSA is to remain in effect until terminated by the parties (this termination being subject to the
FERC’s approval), which we expect to occur upon Grand Gulf’s retirement from service at the expiration date of its

operating license in 2044.
Approval by holders of our outstanding indebtedness for borrowed money would not be required for termination,