Company: EAI
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0000065984-25-000132
Chunk: 75

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-10-31
Form: 10-Q
Item: Item 3
Chunk 75
---
 postretirement benefit expense credits, effective September 2024, in accordance with the terms of the 2024 formula rate plan filing.  See Note 2 to the financial statements in the Form 10-K for discussion of the 2024 formula rate plan filing and Note 11 to the financial statements in the Form 10-K for discussion of the other postretirement benefits accounting treatment.

Interest expense increased primarily due to an increase of $8.8 million in carrying costs on regulatory liability balances.

160

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

Income Taxes

The effective income tax rate was 25.5% for the third quarter 2025.  The difference in the effective income tax rate for the third quarter 2025 versus the federal statutory rate of 21% was primarily due to the accrual for state income taxes, partially offset by the amortization of excess accumulated deferred income taxes.

The effective income tax rate was 24.6% for the nine months ended September 30, 2025.  The difference in the effective income tax rate for the nine months ended September 30, 2025 versus the federal statutory rate of 21% was primarily due to the accrual for state income taxes, partially offset by certain book and tax differences related to utility plant items.

The effective income tax rate was 27.0% for the third quarter 2024.  The difference in the effective income tax rate for the third quarter 2024 versus the federal statutory rate of 21% was primarily due to the accrual for state income taxes.

The effective income tax rate was 18.7% for the nine months ended September 30, 2024.  The difference in the effective income tax rate for the nine months ended September 30, 2024 versus the federal statutory rate of 21% was primarily due to certain book and tax differences related to utility plant items, the amortization of state accumulated deferred income taxes as a result of a tax rate change, the amortization of investment tax credits, and book and tax differences related to the allowance for equity funds used during construction, partially offset by the accrual for state income taxes.

Income Tax Legislation and Regulation

See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS - Income Tax Legislation and Regulation” herein and in the Form 10-K for discussion of income tax legislation and regulation.

Sale of Natural Gas Distribution Business

See Note 13 to the