Company: EAI
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0000065984-25-000012
Chunk: 872

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-02-18
Form: 10-K
Item: Item 7
Chunk 872
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 to higher healthcare claims activity, including lower prescription drug rebates in 2024 as compared to 2023, and higher incentive-based accruals in 2024 as compared to 2023;

•an increase of $7.9 million in transmission costs allocated by MISO.  See Note 2 to the financial statements for discussion of the recovery of these costs;

•an increase of $7 million in loss provisions;

•an increase of $4.4 million in energy efficiency expenses primarily due to higher energy efficiency costs;

•a decrease of $4.5 million in customer service center support costs primarily due to lower contract costs;

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Table of ContentsEntergy Louisiana, LLC and SubsidiariesManagement’s Financial Discussion and Analysis

•a decrease of $5.6 million in information technology costs primarily due to enhancements made in 2023 to certain information technology systems; and

•a decrease of $13.8 million in power delivery expenses primarily due to lower vegetation maintenance costs.

Depreciation and amortization expenses increased primarily due to additions to plant in service and an increase in nuclear depreciation rates effective September 2024 in accordance with the global stipulated settlement agreement approved by the LPSC in August 2024.  See Note 2 to the financial statements for discussion of the global stipulated settlement agreement.

Other regulatory charges (credits) - net includes:

•regulatory charges of $150.2 million, recorded in second quarter 2024, to reflect the effects of an agreement in principle between Entergy Louisiana and the LPSC staff and the intervenors in July 2024 to renew Entergy Louisiana’s formula rate plan and resolve a number of other retail dockets and matters, including all formula rate plan test years prior to 2023.  See Note 2 to the financial statements for discussion of the agreement in principle and the subsequently filed global stipulated settlement agreement;

•a regulatory charge of $103.4 million, recorded in first quarter 2023, to reflect Entergy Louisiana’s obligation to provide credits to its customers as described in an LPSC ancillary order issued in the Hurricane Ida securitization regulatory proceeding.  See Note 2 to the financial statements for discussion of the March 2023 storm cost securitization; and

•a regulatory charge of $38 million, recorded in fourth quarter 2023, to reflect credits expected to be provided to customers as a result of the resolution of the 2016-2018 IRS audit.  See Note