Company: EAI
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0000065984-25-000012
Chunk: 511

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-02-18
Form: 10-K
Item: Item 7
Chunk 511
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 accumulated deferred income taxes from rate base when calculating Unit Power Sales Agreement bills.  The initial decision also found that the Unit Power Sales Agreement should be modified such that a cash working capital allowance of negative $36.4 million is applied prospectively.  On the other non-settled issues for which the complainants sought refunds or changes to the Unit Power Sales Agreement, the initial decision ruled against the complainants.System Energy disagreed with the ALJ’s findings concerning the accumulated deferred income taxes issues and cash working capital.  In July 2023, System Energy filed a brief on exceptions to the initial decision’s accumulated deferred income taxes findings.  Also in July 2023, the APSC, the LPSC, the City Council, and the 

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Table of ContentsEntergy Corporation and SubsidiariesNotes to Financial Statements

FERC trial staff filed separate briefs on exceptions.  In August 2023 all parties filed separate briefs opposing exceptions.As discussed below in “System Energy Settlement with the MPSC,” “System Energy Settlement with the APSC,” and “System Energy Settlement with the City Council,” and “System Energy Settlement with the LPSC,” the MPSC, the APSC, and the City Council, and the LPSC have settled their claims related to this proceeding.Grand Gulf Prudence ComplaintsThe second of the additional complaints was filed at the FERC in March 2021 by the LPSC, the APSC, and the City Council against System Energy, Entergy Services, Entergy Operations, and Entergy Corporation.  The second complaint contained two primary allegations.  First, it alleged that, based on the plant’s capacity factor and alleged safety performance, System Energy and the other respondents imprudently operated Grand Gulf during the period 2016-2020, and it sought refunds of at least $360 million in alleged replacement energy costs, in addition to other costs, including those that could only be identified upon further investigation.  Second, it alleged that the performance and/or management of the 2012 extended power uprate of Grand Gulf was imprudent, and it sought refunds of all costs of the 2012 uprate that were determined to result from imprudent planning or management of the project.  In addition to the requested refunds, the complaint asked that the FERC modify the Unit Power Sales Agreement to provide for full cost recovery only if certain performance indicators were met and to require pre-authorization of capital improvement projects in excess of $125 million before related costs could be